HomeMy WebLinkAbout07-4760IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No. b? - 4'7(0 (~ C i v ~ l ( ~
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Jud ment
CONFESSION OF JUDGMENT
Pursuant to the authority contained in the Warrants of Attorney, copies of which
are attached hereto, I appear for the above Defendants R. C. Skelly, Inc., Robert C. ,
Skelly and G. Louise Skelly and confess judgment in favor of the Plaintiff, Sovereign
Bank, and against the Defendants R. C. Skelly, Inc., Robert C. Skelly and G. Louise
Skelly in the amount of $298,669.47 plus per diem interest of $64.2186 from July 26,
2007 until paid in full, including post judgment per contract, plus costs of suit as follows,
itemized below:
Un aid Princi al Amount $249,931.83
Interest to July 26, 2007 $ 9,440.14
Late Fees $ 13,360.30
Contractual Attorney Fees (10%) $ 25,937.20
TOTAL $298,669.47
Per Diem Interest from July 27, 2007 until
paid in full including post judgment per
contract, lus costs of suit
$ 64.21860
Judgment entered as above.
Dated: July 31, 2007 By: --~-
e .Goodman, Esquire
A ttorney for Defendants
2 -536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
vs.
Plaintiff
No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
COMPLAINT FOR CONFESSION OF JUDGMENT
Plaintiff, Sovereign Bank, confesses judgment against Defendants R. C. Skelly,
Inc., Robert C. Skelly and G. Louise Skelly in the amount of $298,669.47 plus per diem
interest of $64.2186 from July 26, 2007 until paid in full, including post judgment per
contract, plus costs of suit as provided for in that certain note and guaranties, and in
support thereof avers as follows:
Parties
1. The Plaintiff is SOVEREIGN BANK, successor-in-interest to Harris Savings
Bank, a corporation organized and existing under the laws of the United States of
America, and it is registered to do business in Pennsylvania with offices for the purpose
of doing business at Two Aldwyn Center, East Lancaster Avenue and Aldwyn Lane,
Villanova PA 19085-1420.
2. The Defendant is R. C. Skelly, Inc., a Pennsylvania corporation whose address
is 18 East Lisburn Road, Mechanicsburg, PA 17055 ("R. C. Skelly, Inc.")
3. The Defendant is Robert C. Skelly, an adult individual whose address is 29
Pine Tree Drive, Mechanicsburg PA 17055 ("Robert C. Skelly").
4. The Defendant is G. Louise Skelly, an adult individual whose address is 29
Pine Tree Drive, Mechanicsburg PA 17055 ("G. Louise Skelly").
Count I
SOVEREIGN BANK v.
R. C. SKELLY, INC.
5. On or about December 19, 1997, R. C. Skelly, Inc. executed and delivered to
Harris Savings Bank a Promissory Note in the principal amount of $150,000.00 and a
corresponding Disclosure for Confession of Judgment (collectively, the "$150,000
Note"). A true and correct of copy of the $150,000 Note is attached hereto, incorporated
herein and marked as Exhibit "A".
6. On or about September 20, 1999, R. C. Skelly, Inc. executed and delivered to
Harris Savings Bank a Change in Terms Agreement and a corresponding Disclosure for
Confession of Judgment (collectively, the "Change in Terms Agreement" and together
with the $150,000 Note, the "Note"). A true and correct of copy of the Change in Terms
Agreement is attached hereto, incorporated herein and marked as Exhibit "B".
7. Sovereign Bank is the holder of the Note.
8. The Note authorizes confession of judgment.
9. The Note has not been assigned.
10. The judgment to be entered does not involve a loan defined as a "consumer
credit transaction" in accordance with Annex A. to Title 231, Chapter 2950, Rule
2951(a)(2).
11. Judgment has not been entered on the attached Note in any jurisdiction.
12. The Note is less than twenty years old and no application for a court order
granting leave to enter judgment after notice is required.
13. The Note provides for confession of judgment against Defendant R. C. Skelly,
Inc. after default under the Note.
14. Defendant R. C. Skelly, Inc. is in default under the terms of the Note.
15. Sovereign Bank has exercised its right to confess judgment pursuant to the
terms of the Note for an amount which Defendant R. C. Skelly, Inc. may become liable.
16. On or about February 22, 2007, Sovereign Bank delivered, via first class mail
and certified mail, return receipt requested, a written notice of default and demand for
payment to Defendant R. C. Skelly, Inc. demanding that all outstanding principal
amounts, plus accrued interest and late fees due under the Note be paid in full and
Defendant R. C. Skelly, Inc. failed to do so. A true and correct of copy of the Notice of
Default is attached hereto, incorporated herein and marked as Exhibit "C".
17. As a consequence of Defendant R. C. Skelly, Inc.'s failure to cure this default,
Defendant R. C. Skelly, Inc. is liable to Sovereign Bank for $298,669.47 plus per diem
interest of $64.2186 from July 26, 2007 until paid in full, including post judgment per
contract, plus costs of suit itemized as follows:
Un aid Princi al Amount $249,931.83
Interest to Jul 26, 2007 $ 9,440.14
Late Fees $ 13,360.30
Contractual Attorney Fees (10%) $ 25,937.20
TOTAL $298,669.47
Per Diem Interest from July 27, 2007 until
paid in full including post judgment per
contract, lus costs of suit
$ 64.21860
WHEREFORE, Plaintiff, Sovereign Bank, demands judgment against the
Defendant R. C. Skelly, Inc. in the total sum of $298,669.47 plus per diem interest of
$64.2186 from July 26, 2007 until paid in full, including post judgment per contract, plus
costs of suit as authorized by the Warrant appearing in the Note.
Count II
SOVEREIGN BANK
v. ROBERT C. SKELLY
1 S. Sovereign Bank incorporates the above averments as if more fully set forth
herein.
19. On or about December 19, 1997, Defendant Robert C. Skelly executed an
unlimited guaranty of the $150,000 Note and a corresponding Disclosure for Confession
of Judgment (the "$150,000 Note Guaranty"). A true and correct of copy of the
$150,000 Note Guaranty is attached hereto, incorporated herein and marked as Exhibit
«D»
20. On or about September 20, 1999, Defendant Robert C. Skelly executed an
unlimited guaranty of the $150,000 Note as modified by the Change in Terms Agreement
and a corresponding Disclosure for Confession of Judgment (the "Second Guaranty" and
together with the $150,000 Note Guaranty, the "Commercial Guaranty"). A true and
correct of copy of the Second Guaranty is attached hereto, incorporated herein and
marked as Exhibit "E".
21. Sovereign Bank is the holder of the Commercial Guaranty.
22. The Commercial Guaranty authorizes confessions of judgment.
23. The Commercial Guaranty has not been assigned.
24. The judgment to be entered does not involve a loan defined as a "consumer
credit transaction" in accordance with Annex A. to Title 231, Chapter 2950, Rule
2951(a)(2).
25. Judgment has not been entered on the attached Commercial Guaranty in any
jurisdiction.
26. The Commercial Guaranty is less than twenty years old and no application for
a court order granting leave to enter judgment after notice is required.
27. The attached Commercial Guaranty imposes the liability against Defendant
Robert C. Skelly and as such Defendant Robert C. Skelly is primarily liable with
Defendant R. C. Skelly, Inc. for the principal and all sums due and owing under the Note
upon default.
28. The Commercial Guaranty provides for confession of judgment against
Defendant Robert C. Skelly after default under the Commercial Guaranty.
29. Defendant Robert C. Skelly is in default under the terms of the Commercial
Guaranty.
30. Sovereign Bank has exercised its right to confess judgment pursuant to the
terms of the Commercial Guaranty for an amount which Defendant Robert C. Skelly may
become liable.
31. On or about February 22, 2007, Sovereign Bank delivered, via first class mail
and certified mail, return receipt requested, a written notice of default and demand for
payment to Defendant Robert C. Skelly demanding that all outstanding principal
amounts, plus accrued interest and late fees due under the Note be paid in full and
Defendant Robert C. Skelly failed to do so. A true and correct of copy of the Notice of
Default is attached hereto, incorporated herein and marked as Exhibit "B".
32. As a consequence of Defendant Robert C. Skelly's failure to cure this default,
Defendant Robert C. Skelly is liable to Sovereign Bank for $298,669.47 plus per diem
interest of $64.2186 from July 26, 2007 until paid in full, including post judgment per
contract, plus costs of suit itemized as follows:
Un aid Princi al Amount $249,931.83
Interest to July 26, 2007 $ 9,440.14
Late Fees $ 13,360.30
Contractual Attorney Fees (10%) $ 25,937.20
TOTAL $298,669.47
Per Diem Interest from July 27, 2007 until
paid in full including post judgment per
contract, lus costs of suit
$ 64.21860
WHEREFORE, Plaintiff, Sovereign Bank, demands judgment against Defendant
Robert C. Skelly in the total sum of $298,669.47 plus per diem interest of $64.2186 from
July 26, 2007 until paid in full, including post judgment per contract, plus costs of suit as
authorized by the Warrant appearing in the Commercial Guaranty.
Count III
SOVEREIGN BANK
v. G. LOUISE SKELLY
33. Sovereign Bank incorporates the above averments as if more fully set forth
herein.
34. On or about December 19, 1997, Defendant G. Louise Skelly executed an
unlimited guaranty of the $150,000 Note and a corresponding Disclosure for Confession
of Judgment (the "$150,000 Note Guaranty"). A true and correct of copy of the
$150,000 Note Guaranty is attached hereto, incorporated herein and marked as Exhibit
«D„
35. On or about September 20, 1999, Defendant G. Louise Skelly executed an
unlimited guaranty of the $150,000 Note as modified by the Change in Terms Agreement
and a corresponding Disclosure for Confession of Judgment (the "Second Guaranty" and
together with the $150,000 Note Guaranty, the "Commercial Guaranty"). A true and
correct of copy of the Second Guaranty is attached hereto, incorporated herein and
marked as Exhibit "E".
36. Sovereign Bank is the holder of the Commercial Guaranty.
37. The Commercial Guaranty authorizes confessions of judgment.
38. The Commercial Guaranty has not been assigned.
39. The judgment to be entered does not involve a loan defined as a "consumer
credit transaction" in accordance with Annex A. to Title 231, Chapter 2950, Rule
2951(a)(2).
40. Judgment has not been entered on the attached Commercial Guaranty in any
jurisdiction.
41. The Commercial Guaranty is less than twenty years old and no application for
a court order granting leave to enter judgment after notice is required.
42. The attached Commercial Guaranty imposes the liability against Defendant G.
Louise Skelly and as such Defendant G. Louise Skelly is primarily liable with Defendant
R. C. Skelly, Inc. for the principal and all sums due and owing under the Note upon
default.
43. The Commercial Guaranty provides for confession of judgment against
Defendant G. Louise Skelly after default under the Commercial Guaranty.
44. Defendant G. Louise Skelly is in default under the terms of the Commercial
Guaranty.
45. Sovereign Bank has exercised its right to confess judgment pursuant to the
terms of the Commercial Guaranty for an amount which Defendant G. Louise Skelly may
become liable.
46. On or about February 22, 2007, Sovereign Bank delivered, via first class mail
and certified mail, return receipt requested, a written notice of default and demand for
payment to Defendant G. Louise Skelly demanding that all outstanding principal
amounts, plus accrued interest and late fees due under the Note be paid in full and
Defendant G. Louise Skelly failed to do so. A true and correct of copy of the Notice of
Default is attached hereto, incorporated herein and marked as Exhibit "B".
47. As a consequence of Defendant G. Louise Skelly's failure to cure this default,
Defendant G. Louise Skelly is liable to Sovereign Bank for $298,669.47 plus per diem
interest of $64.2186 from July 26, 2007 until paid in full, including post judgment per
contract, plus costs of suit itemized as follows:
Un aid Princi al Amount $249,931.83
Interest to July 26, 2007 $ 9,440.14
Late Fees $ 13,360.30
Contractual Attorney Fees (10%) $ 25,937.20
TOTAL $298,669.47
Per Diem Interest from July 27, 2007 until
paid in full including post judgment per
contract, lus costs of suit
$ 64.21860
WHEREFORE, Plaintiff, Sovereign Bank, demands judgment against Defendant
G. Louise Skelly in the total sum of $298,669.47 plus per diem interest of $64.2186 from
July 26, 2007 until paid in full, including post judgment per contract, plus costs of suit as
authorized by the Warrant appearing in the Commercial
Dated: July 31, 2007 By: -~~
. Goodman, Esquire
Attorney for Defendants
20-536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
VERIFICATION
I verify that the statements made in the foregoing Complaint are true and correct
to the best of my knowledge, information, and belief. I further verify that I am a Vice
President of SOVEREIGN BANK, and that as such, I am authorized to make this
Verification on its behalf. I understand that false statements herein are made subject to
the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities.
DATED: __{'1 ~ I'~
T-'
HARRIS® ~-
A INGS BANK
~ S V ~i,~
PROMISSORY NOTE
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Referersoes in the shaded area are for Lender's use only and do not emit the appicabiity d this document to arty particular loan «item.
Borrower: R.C. Skelly, Inc. (TIN: 25-158e515) Lender: Halls SavingstSarYc
18 East Lisburn Rd. 234 N. Second Street
Bowmansdale, PA 17008 P O Box 1711
Harrisburg, PA 17105
Principal Amount: 5150,000.00 Initial Rate: 10.000% Date of Note: December 19, 199
PROMISE TO PAY. R.C. Skeay, inc. ("t3orrowa'7 promises b pay b Ftsrris Savings Bank ("Lertder'~, err order, th lawful money at the Unite
States ~ Americs, on demand, the prktdpal amount of One Hundred Fury Thousand ~ OOV100 Dogars ($150,000AO) or so much as may d
outstanding, togeUter with ittterext on the unpaid outstanding principal gaJartce all each advance. Interest shall be calculated from the date r
each advance tatdl repayment of each advance.
PAYMENT. Borrower wm pay this loan Immedislely upon Lender's demand. In addition, Borrower wiu pay rogttlar monthly payments of a
actxued urtpaW itterest due as of each payment dale, begtnnhtg February 1, 199s, with ail aprbsegttent Inlerost payments b be due on ih
same day of each month artier that. The annual ksterest rate f« this Note Is computed on a 365/390 basis- that is, by appykg the ratio of the annex
interest rate aver a year of 360 days, multiplied by the outstandng principal balance, multiplied by the adtrai number d days the prindpal balance
outstandrrg. Borrower wfi pay lender at Lenders address shown above «at such other place as Lander may deslgnab in writing. Unless otherwis
agreed « required by appicable law, payments wIi be applied fret to accrued unpaid interest, then to principal, and any remaining amount to err
unpaid collection costs and late ctrarges.
VARIABLE INTEREST RATE The interest rate on this Note is subject to change from time to time based on charges in an index wtrkh fs Lender
Prime Rate (the 'Index"). This is the rate lender charges, «warld charge, on 90-day unsecsred loans to the most Geditworfhy corporals customer.
This rate may « may not be title bwest rate avertable from Lender at any given time. Lender wrT tell Borrower the rxsrrent Index rate upon Borrower
request. Borrower understands that Lender may make loam based on oilier rates as wet. The interest rate change will not occur more often the
each Day. The Index wrrandy is a.500% per ararum. The Mrierest rate b be appYed b the unpaid principal balance of this Note will be at
rate Of 1.500 percentage points aver the Index, restagrtg th an kYtial rate of 10.000% per artrwm. NOTICE: Under rso dreumstanoes will th
irtbrest rate on this Note be more than the maximum rate allowed by appicable law.
PREPAYaaENT. Borrower may pay wNhout penally ai «e portion of ttte amount awed aartier than it is due. F_arly payments wit riot, unless agreed t
by Lender in writing, relieve Borrower of Borrowers oblgation b continue to make payments nt aosxued unpaid Interest. Rather. they wig reduce th
principal balatsce due.
LATE CHARGE. N a regularly scheduled irserest payment is 15 days or more late, Borrower wiN be charged 5.000% of the regularly sdtedub
payment or =10.00, trAtidtever is greats. ti Lender demands payment of this ban, and Borrower does sect pay the ban wphkt 15 days atte
Lender's demand, Borrower alto wlp be charged tither 5.000% of the sum of the unpaid prirtdpal plus accrraed unpaid interest or t10At
whichever <8 greater.
LENDERS RIGHTS. Lender may hire « pay someone else b help coied this Note if Borrower does not pay. Borrower also wit pay Lender the
amours. This Includes. subject to any limits under applicable taw, Lender's attorneys' fees aril Lenders lapel expenses whether « not there is
lawsuit, including attameys' tees and legal expenses t« bar*rup6ay proceedings (irsdudistg efforts to modify «vacde any automatic stay « injurtdbn:
appeals, and arty andcdpated past-judgment coNec6on services. If nd prohbilad by appticabie lav-. Borrower also wi pay any court costs, in adctido
to ei other sums provided by law. H judgment rs entered in connection with fists Note, interest wi continue b aaxue on tFsis Note after Judgment at ti-
interest rate appicable to tide Note of the t(me judgmers is entered. This Nob tglS bent deNvered b Lender and acoepbd by Lender kr tin
ContraortwaalYtt of PennsyhraMa. K there is a lawsuit, Borrower agrees upon Lender's roquast b sutlmit b the jurlsdtcilott of the courts o
Dauphin County, the ConutlomtreattttC of Pennsylvautlas. This Note shah be governed by end construed in acc«dance witft the laws of tM
Corttmonwealltt of Pennsyttrania.
RIIaFIT OF SETOFF. Borrower grants to Lender a contractual possessory security Interest in, and hereby assigns, conveys, delivers. pledges. erns
transfers th Lender all Borrower's right, title and. intere~ in and fo. Borrowers accounts with Lender (whether ctrecWng, savirfps, « some othe
account)„ irtdudtrg without imNalion ail accounts held jointly with someone else and ai asxrounts Borrower may open in the (ultra. exdudng howeve
all ffiA and Keogh aocourrL4, and ai trust asx;ourss f« which the grant of a security ktlerest would be prohbited bylaw. Borrower authorises Lender. L
the exters permilled by applicable law, b charge «seto(f ai sums owing on this Note sgair>st any and aN wch aocourss.
LINE OF CREDIT. Ttrls Noce evidences a revolving ins ~ credit. Advances under this Noce may be requested only by Borrower « as provided h
Usis paragraph. (.ender may, but need not, require that ai oral requests be rrorfirmed In writirsg. AA communications, ksstrtxsiorts, « rfrectiorss b'
telephone «otherwise to Lender are b be diredmd b Lenders ofioe sttsown above. The folotvirtg party «parties are auttroriaed as provided in tht
paragraph b request advarxres under the ins of credit ur~l Lender reoair~es from Borrower at Lenders address shown above written notice a
revocation of their autts«ity: Robert C. Skelly, PrealdetlL and Dew WlNiams. Borrower agrees b be fiebie f« a0 sums attires: (a) advarsced h
accordance w8lt the irtstrtrrsiort4 of an atrltrorixed person « (b) credited to any of Borrowers aocourss with Lender. The unpaid prirsclpal balance
owirsg on this Note at any time may be evidenced by endorsements on this Note « by Lenders internal records, frsdudistg daffy computer print-outs
Lender wit have no obigation b advance funds under this Nola ti: (a) Borrower « any gsmrant« is h default under the terms of itsis Note « errs
agreetnsent that Borrower « any guarantor has with Lender. including any ~reertserst made M connection with the signing of ttsis Note; (b) Borrower o
any guarantor ceases doing business « Is irssdveni; (c) any guarant« seeks. claims « otherwise attarrrpts th unit, modify « revoke such guarantors
guarerttee of this Note «arry other ban with Lender, (dJ Borrower has appied funds provided pursuant to this (Vote f« purposes outer than ttsasr
authorised by Lender, « (e) Lender In good fafth deems itself insecure under fists Note «any other agremrrent between Lender and Borrower.
ADDITIONAL Rt3.ATED DOCUMENTS. The term 'Related Documents" shat also include Lenders Commitment Lefler to Borrowar dated Deoenrber 9
1997, which steal survive dosing, are referred to herein coiedively as the 'Loan Documents`, and the provisions thereof are incorporated herein b~
reference.
ANNUM. PAYOUTlANNUAL REVIEW. The Loan is subjed th a 30-day payout during each 6sca1 year at which time the balarxss must be paid in flit
f« a period of ttrriy (30) corrserrrtive days. The Loan commitment wit expire Apri 30, 1999. The Barsk w(N review the Loan annueiy t« renewals anc
esdertsi0rss; such renewals and extensions to be grassed predicated on the pertormanoe of the company and/or individuals and adherence to the Loan
~2-19-1997 PROMISSORY NOTE Fa9~
Loan No 8881000235 (Continued)
Agreement and/or loan poFcy.
ADDITIONAL AFFIRMATIVE COVENANTS. Borrower will submit to Lender on a monthly basis the aexxwrds receiwmble agirtgs.
CROSS COLLATERALtZAT10N. AS security for this loan, as wail as any other rxedril facdily extended b R.C. Skely, inc., Harris Savings Bank
continue b maintain the togowing collateral: fret Fen on aN accounts receivable, contract rights. inHerllory, chattel paper. documents. instrurne
general intar>pibles, leasehold improvements, equipmerd, furniture, tlxtur+es and rnacttinery now owned or hereinafter aoqui'ed; and the parse
guarantees of Robert C. Skely and G. Louise Skelly. AF coMabrell which secures one rxedt tadFty exterxled b R.C. Skelly, Inc., secures all o'
faciFtles extended b the same. A default in one loan oortstitutes a default in all other bare.
TAX RETURNS AND FINANCIAL ST'ATi~IENTS. Bexrower wFl submit b Lender signed annual personal financial staternerris and annual fed
income tax returns d aA guarantors.
GENERAL PROVISIONS. Lender may delay ex fex+go enfexcing any d ils rights or remedies under this tJote without losing them. Borrower and
other person who signs, gtmrantees or endorses ibis Note. b the extent allowed by law. wdve presentment. demand fax payment, Protest and naFo
dishonor. upon any change in the terrrrs d trlis Nde, and unless anerwise expressly stated in writirp, no party who signs this Note, whether as ma
guarantor, aocorrrnodatiext maker or endorser, stwA be released from Fab>Gty. iU such parties agree that Lender may renew or extend (repeatedly
for any length d time) this ban, or release any paAy or guarantor a ooAateraf: a impetr, felt b reaGaa upon or peAed Lender's serxxity (Merest b
collateral; and take any oUrer aedion deemed necessary by Lender without the consent d a noGoe b anyone. N such parties also agree that tsr
may modify titFs ban without the consent d ar notice b anyone other than Ute periy with whom the mo~tiort is made. K any portbn of this Noi
for any reason determined b be uneMoroeable. >t wFl not affect the eMoroeabAity d arty other provisions d ifds Note.
CONFESSION OF JUDGMFJdT. BORROWER HERESY IRREVOCABLY AUTHORt~S AND EMPOWERS ANY ATTORNEI' OR TtiE PROTHONOT/
OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWFtERE, TO APPEAR AT ANYTIME FOR BORROWER AFl
A DEFAULT UNDER THiS NOTE, AND WITH OR WITF~IOUT COMPLAINT FlLED, AS OF ANY TERM. OR EMF.R JUDGMENT AGAI!
BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE. ALL ACCRUED INTEREST, LATE q~IARGES, AND ANY AND ALL AMOK
EXPENDED OR /IDVANCED BY LENDER RELATING TO ANY COI.LATER/1L SECUWNG TFdS NOTE TOGETFtE'R WRH INTEREST ON SL
AMOl1NTS, TOGETtfR WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN P(~MT (1096) OF THE UNPAIO PAINCII
BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT' NOT LESS TWW FIVE HUNDRED DOLLARS (1500) ON WH
JUDGMENT OR Jl1DGMEMS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF T
NOTE VERIFED BY AFFiDAVfT SWWLL BE S'UFFICENTf WARRANT. TF~ AUTFIORf1Y GRANTED IN THIS MOTE TO CONFESS JUDGME
AGAINST tiDFiROWER SWU.L NOT BE DQiAIJST~ BY ANY DERCISE OF THAT AUfHORRY, BUT SWILL CONT~ FROM TIME TO TiME ~
AT ALL TIMES UNTiL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER FAY WAIVES ANY RIGHT BORROVi
MAY HAVE TO NOTICE OR TO A HFJWING IN CONNECTION WiTH ANY SUCH CONFESSION OF JIAGFENT, DCCEPT ANY NOTICE ANDr
FEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO E~CUTION OF THE J(pGIdENT, AND STATES THAT EITFER
REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION
BORROWER FtAS BEEN REPRESENTED BY iNDEPENDEJJT LEGAL COUNSEL
PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD A11. Tim PROVISIONS OF THIS NOTE, INCt.lA1NG TFE YARUIE
INTEREST RATE PROVISIONS. BORROWER AGREES TO TFE TERIiRS OF Tlf NOTE AND ACKNOWLEDGES RECEIPT OF A COMPEL(
COPY OF T}E NOTE.
THIS NOTE HAS BEEN SIGNED ANO SEALED BY THE lJ1+IDERSIGNED.
BORRO _
R.C. y,lno
...::
. Sfoetly, Presktflnt - ._._._._
(.ENDER:
Harris SavlnDs .
~---- .
ey:
ortToer
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DISCL,~'URE FOR CONFESSION OF JUDGMENT
Re£er~aioes m the shaded area are for I.eader'e use only and do not limit the appGcgbility arihis document to auy paRiwlar loan or item.
Borrower. RC. Skelly, Inc. Lender. Harris Savings Bank
(TI1~125-1588515) 234 N. Second Street
18 East Lisbturn Rd. P.O. Box 1711
Bawtnttnsdale, Pa. 17008 Harrisburg, PA 17105
DISCLOSURE FOR CONFESSION OF JUDGMENT
THE UNDERSIGNED IS F,7~C[TITNiG, THIS NINETEENTH DAY OF DECEMBER, 1997, A PROMISSORY NOTE FOR S150,000.00
OBLIGATING RC. SKELLY, INC. TO REPAY THAT AMOUNT.
A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF IUDGMENT PROVLSION THAT WOULD PERMIT LENDER TO
ENTER JUDGMENT AGAINST THE CORPORATION IN OOURT, AFTER A DEFAULT ON THE NOTE, WTI'HOUT ADVANCE NOTICE
TO THE CORPORATION AND WITHOUT OFFERING THE CORPORATION AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY
OF ][JDGMENT. IN EXE(,'UI1NG THE NOTE, BEING FULLY AWARE OF THE CORPORATION'S RIGHTS TO ADVANCE NOTICE
AND TO A HEARIlVG TO CONTEST THE VALIDITY OF ANY JUDOMENf OR OTHER CLAIMS THAT LENDER MAY ASSERT
AGAINST THE CORPORATION UNDER THE NOTE, I, IN BEHALF OF THE CORPORATION. AM KNOWINGLY, LNTELLIGENTLY,
AND VOLUNTARILY WAIVING THESfi RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JIJDGMENT,
AND I EXPRESSLY AQREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST THE CORPORATION BY
O ~ ~~~f1tOVIDED FOR IN THE CONFESSION OF ]UDGMENT PROVISION.
B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST THE
CORPORATION WITHOUT ADVANCE NOTICE. OR A HEARING. THE CONFESSION OF IUDGMEN'T PROVLSION IN THE NOTE
ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF IUDGMENT, TO EXF•CITIE ON THE
JUDGMENT BY FOREC~.OSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHER WISE SEIZING THE
CORPORATION'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE J[JDGMENT. HOWEVER, LENDER MUST PROVIDE
NOTICE TO THE CORPORATK)N UNDER APPIZCABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN FJQ:CUl~iG THE
NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A IH'ARIIJG AFTER IIIDOMENT IS ENTERED AND
BEFORE EXECLTIION ON TILE JUDGMENI; I AM KNOWINOLY, IlQTELIdGENTLY AND VOLUNTARILY WAMNG THESE RIGHTS,
AND I PJ~RESSLY AGREE AND CONSENT TO LEND G ON THE JUDGMENT, IN ANY MANNER PF.RMITfED BY
APPLICABLE STATE AND FEDERAL LAW. INITIALS: ~. ~~~
C. AFTER HAVING READ AND DETERbiINID WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABL$ AND BY PL,ACIN(}
MY INTI7AIS NEXT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT:
I. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE.
~_ 2 A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF ]UDGMENT PROVISION IN THE
NOTE'PO MY ATTENTION.
D. I CERTIFY THAT THE CORPORATION'S ANNUAL INODME EXCEEDS SI0,000.00; THAT THE BLANKS IN THIS DLSCI.OSURE
WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT 1 RECEIVED A COPY AT THE TIME OF SKiNING.
THIS DISCLOSURE SIGNED AND SEALED BY THE UNDERSIGNED.
/'~ '
Robert C. Skelly, President ~
~HARRIS~ ~ ~Q
CHANGE IN TERMS AGREEMENT
Borrower: R.C. Skeily, inc. Lender. Flarris savings Bank
1s E Lisburn Road 23+ N. Second street
Bowmansdale, PA 17008 P O Box 1711
Harrisburg, PA 17105
Principal Amount: ;350,000.00
Date of Agreement: Septemt~er 20, 1999
DESCRIPTfON OF DCISTiNG INDEBTEDNESS. On December 19, 1997, Harris Savings Bank extended to the borrower a Rne of credit in the amount
of 5750,000.00 at the rate of Hants Savings Prime rate plus tS0%.
DESCRIPTION OF CHANGE Mr TERMS. Effective the date of this Agre9rrrertt, Harris Savings Bank has agreed to increase the Line of Credit amount
to 1350,000.00. and decrease the interest rate to Ffarris Savings Bank Prime plus t %.
PROMISE TO PAY. R.C. SfoeMy, Inc. ('Borrower") prorrMses b pay to tisrris lungs Bank ("Lender"I. or order, h IawIW a~aoey of Ure United
Statics of Arrlertca, on demand, the principal aawtalt of Three Hundrod FMy Thousand 1. o0/t00 Dollar (1360,000.00) or ao much as may be
oubtanding, togMlrer with ktterast on the unpaid outstartdMtg prNrclpal vaiiartce of each advance. (Merest ahdl ba eatculakd from the date of
each advance unlp repaymartt of eeryh advance.
PAYMENT. Borrower wpl pay 1fYS ban Imnledilrtely upon Lender's demand. b addiMorl, Borrower wiM pay regtrlsr monthly payments of ap
aotxued unpaid interest due ss of each payment dale, begiminq Oci06ar 1, 1991, with ap aubsequad Interest payraeMs to be due on the
same day of each month after ihtl. The artnuai interest rate for this Agreement is computed on a 365/360 basis; that is, by applying the ratio of the
annual Irlierest rata over a year of 360 days, mugipfied by the outstanding prindpal balance. multlpfied by the actual number of days the prbtapal.
balance is oulslandirtg. Borrower wiN pay Lender at Lenders address atawn above or at such other place as Lender may designate in writing. Unless
otlterwise agreed or requked by applicable law. payments wig be applied first b accrued unpaid interest. then b priraipal, and any remaining amount
to any unpaid coRecrion casts and late charges.
VARIABLE INTEREST RATE. The irNsrest rata on this Agreement is subject to charge from time to time based on changes in an index whbft is
Lender's Prime Rafe (the '7ndeof'). This is the rata Lender charges, or would ctrarge, on ii0-day urrsecOJred loans to the most cre~tworthy corporate
cus/onters. This rata may or may not be the lowest rate available tram Lender at any given time. l.ertder wIR tai Borrower the current Index rate upon
Borrower's request Borrower understands that under may make loans based on other rates as wet The itlfaroN race charge wiN rat occur more
often than each Day. Tile Index uxrerrMy is s.250% per annum. The iniemst rate to be appNed to the unpMd txkrcipel valence of iha
Agraeraent wiM bs at a rate of 1.000 percentage point over the Uldex, resuiWq h ~ IniMal rate of e.2solc per anraNn. NOTICE: Under no
crrcumstaraes wRl the Interest race on this Agreement be more than the maximum rate allowed by applicable law.
PREPAYMENT. Borrower may pay without penalty aR or a portion Of the amount owed earner than it is due. EsAy payments wiN not, uNess agreed b
by Lender in writing, relieve Borrower d Borrowers obligation to continue to make payments of aocxued unpaid interest. Rather, they wig reduce the
prirtrrpal batarae due.
LATE CHARGE If a regularly scheduled interest payment tr 15 hays or more fate, Borrower ww be charged 5.000% of the regwarty schedubd
payment or 110A0, rrhldrevdr Is greater. M Lender demands payment of ttrs ban. and Borrower does not pay the loan wlMrn 15 days aAer
Lender's demand, Borrower also wig be charged eiMier` 6.000% of Mte sum of Mrs unpedd prkrclpal plus accrued unpaid Mtterest or 110.00,
whichever Is greeter.
LENDER'S RIGHTS. Lender may hire a pay someone else to help coned Ors Agreement if Borrower does nd pay. Borrower also wRl pay Lender that
amount. This includes, subJed to any units under applicable Iew, Lenders attorneys' tees and tenders legal eoq~errses wtaiher a not there is a
lawsuit, itrduding attorneys' fees and legal expenses for bankruptcy prooeedirgs (indudirg efforts to moldy or vacate any automatic stay or MJundbn),
appeals, and arty arrtidpated posyudgmeni coltedion servbes. If nd protrbited by applicable law, Borrower oleo wM pay any court coals. b addifion
to afi otlter sums provided by law. p Judgment is entered in connection wNh itrs Agreement, irderest win continue to accrue on this Agreement after
judgment at the ktierest race applicable to ttrs AQreerrtent at tits lime Judgment is entered. This /lgroenlsM has been dspvered to Lender and
aooepied by L.erlder b Mrs CorrrOgnweattl7 of Peonsylvarpa. H (flare b a lawsuit, t6orrower agrees upon LeMer's request b submit b the
)trisdbMon of Mrs courts of Dauphin County, Mrs Commonwealth of ParnydaMs. Lander and Borrower hereby waive Mte right b any Jury trill
in aM- acMorl, proceeding, or tbrprtercisNrt brought by elgler Lerwbr a Borrower agakrst Mrs other. This AgreerneM chap be governed by and
construed h accordance wHh Mrs laws of the Commonwealth of Pennsylvania.
RIGHT OF SETOFF. BarroMrer grards b Leader a contractual secrufiy interest in, and hereby assigns, cmnveys, delivers, pledges. and frarrsfers b
Lender aR Borrowers right, title and irMerest in and b, Borrower's accounts with Lsr-der (whether ctreckirg, savings, or some Doter account), iraluding
without Rrrrlation aN accour~ held jointly wph someone else and atl aoc:ounts Borrower may open in the future, ezdudirg however aR IRA and iGeogh
accounts, and ant trust acxxuMs for which pre grant of a security interest would be prohibited by law. Borrower authorizes Lender. to the extent
perrrrlfed by applicable law. to charge or seloM aR sums owing on this Agreement against any and aR such acoourds, and, at Lenders option, b
admatistativ~ely freeze atl such aocourrts to aNow Lender to protect Lender's charge and setoff rights provided on this paragraph.
LINE OF CREDIT. This Agreement evidences a revdvirg fine of credit. Advarroes render firs Agreement, as weN as directions for payment from
Borrower's accounts. may be requesbd oraNy or ~ writing by Borrower or by an authorized person. Lender may. but need not. require that aR oral
requests be confirmed kr wrifing. The idlowirg party or parties are authorized b request advanrres under the line of credit untfi (.ender receives from
Borrower at Lender's address shown above wrpten notice of revocation of their au0rority: Robert C. SlaeNy, President. Borrower agrees to be Roble
for aR sums either: (a) advanced in aocordarae with the instructions of an wBarized person or (b) aadped b any of Borrowers accounts wtlh
Lender. The unpaid prirtctpal balance owing on this Agreement at arty time may bs evidenced by ~ on this Agreertrent or by Landers
infarrral records, including daffy computer print-Dols. tender wRl have no obRgatlon to advance (ands under this Agreertrertt if: (a) Borrower ar any
guarantor Is in defauq under the terms of bis Agreement or any agreement that Borrower a any quarardor has with Lender. ittduding any agreement
made in oonrteCtiort with the signing of ttrs Agreement; (b) Borrower or arty guarantor ceases doing business ar is trrsclvent; (c) arty guarantor seeks,
claims a dherwbe attempts to Rmt, modify or revoke such guarantors guarantee of this Agreement a any ottrer ban with Lender, (d) Borrower has
applied funds provided pursuant to tins Agreement for purposes other than those authorized by Lender, a (e) tender in good faith deems itself
insecure order Otis Agreartrent or any ottrer agreement between Lender and Borrower.
CONTINUING VALIDITY. 6rcept as expressly charged by this Agreement, the terms of the original obRgatkm or obRpafions, inctudirtg aN agreements
p~~~ggg CHANGE IN TERMS AGREEMENT Pall
Loan No 8881000235 (~~~)
evidenced or securing the obligation(s), remain unchanged and In futi force and effect. Consent by Lender b this Agreement does not waive Lent
right to strict perfarmarx:e of the obigation(s) as changed. rwr obipate Lender to make any hrture drange in terms. Nothing In this Agreement
constitute a satisfaction of the abl'pation(s). It is the Intention d Lender to retain as Noble parting aN makers and endorsers of the original obtigatia
inducting acx:amnwdatian parties. artless a party is expressly released by Lender in writing. Any maker a endorser, indudkrg arxornrnadation met
wNl not be released by virtue of this Agreement. If any person who signed the original obNgatian does net sign this AgroenreM below. then aN poll
signing below acknowledge that ttris Agreement is given conditiorraAy, based on the representation to Lender thst the non-sitNdnG l~Y ~ tc
changes and provisions of ttris Agreement or otherwise wNl not be released by ti. This waiver applies not only to arty initial extension, modiNratlo
release, but also to aN such subsequent ad"arw.
MISCELLANEOUS PROViS10NS. Lender may delay or largo enforcrg any of tis rights or remedies under this Agreement without losing tt
Borrower and arty other person wtw signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presenbnelrt, dement
payment. protest and notice of dishonor. Upon any ct>anpe in the terms of ttds Agreerrrent, and unless otherwise eoq~ressly staled in vrrMirg, no I
who signs this Agreement, whether as maker. guarantor, accommodation maker a endorser. shag be released from NebiNlY. Ati such parries agree
Lender may renew or extend (repeatedly and for any length of time) this loan. or release arty party or guarantor or cotiaierah, or irnperir, faN to re.
upon or perfect Lender's seckxtly interest In the coNateral; and take any other action deemed necessary by Lsnder without the consent of or notk
anyone. All such parties also agree that Lender may modify ttds loan without the consent of or notice to anyone other than the party with when
modification is made. If any portion of this Agreement is for any reason detemrkred to be unenforceable, k wNl not affect the erMork.'eabNity of any c
provisions of this Agreement.
COI~ESSION OF JUDGIYIENT. BORROWER HEREBY NaREVOCJ4BLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOT.
OR CLERK OF ANY COURT IN THE ¢OMMONWEALTH CIF PENNSYLVANIA, CR ELSEWFERE, TO APPFJ~R AT ANY TIME FOR BORRCNVt-A AF
A DEFAULT UNDER THIS AGREEMENT. AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TI~iM, CX~ESS CtR ENTER JUDGM
AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS At~UENT, ALL ACCRUED IMEREST, LATE Cg-~4RGES, AND ANY ~
ALL AMOUNTS EXPENDED OR ADVANCED BY LENDtBi RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGEfF@i WITH INTER
ON SUCH AMOUNTS, TOGETI~ WITH COSTS OF SUIT. AND AN ATTORNEYS COMMISSION OF TEN PERCENT (1tylL) OF THE UNF
PRINCIPAL BALANCE MID AOCRIED INTBiEST FC~fi COLLEC110N, 8UT IN ANY EVENT NOT LESS THAN FlVE HUNDRED D01-LAFiS (~b00)
WHICH JUDGMENT OR JUDGMENT'S CME OR MORE DECUTIONS MAY ISSUE IMMEDUITELY; AND FOR SO DOING. THIS AGREEMENT C
COPY OF THIS AGREEMENT VERIFED BY AFFIDAVIT SHALL BE SUFFiC1ENT WARRANT. THE AUTHORfTY GRANTED IN THIS AGREEMEM
CONFESS JUDGMENT AGAINST BtJRROVI(ER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTFIORITY, BUT SHALL CONTtI
MOM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FIx.L OF /ILL AMOUNTS Dl~ UNDER TMS AGREEMENT. BORROWER H[3R
WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A.t•EARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGME
EXCEPT ANY NOTICE AND/OR IfARtNIG REQUIRED UNDER APPLICABLE U1W WITH RESPECT TO DECUTION OF THE JUDGMENT,
STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFlCALLY CALLED THIS OONFESSION OF JUDGMENT PROVISION
BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL.
PRIOR TO SIGNING TtI1S AGREEMENT, 80RROWER. READ ANO.UNDERSTOOD ALL TFE PROVISIONS OF THIS AGR~IT, WCLW
THE VARfABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TF~TMS OF 'Tf~ AGR~f AND ACICNOWLEOi
RECEIPT OF A COMPLETED COPY OF TIE AGREEMENT.
THIS AGREEMENT HAS tiEF?I SIGNEO ANO SEALED BY THE UNDERSIGNt~.
BORROWER• ;
R.C. Sk jtt; l J
BY .:. .. ~
Robert C. Skefiy, President
LENDER:
Flarris Savings Barllc
K~~ •,~.
~~
DISCLOSURE FOR CONFESSION OF JUDGMENT
Borrower: RC. Skelly, Inc.
18 E. Lisburn Road
Bowmarisdale, PA 17008
Lender: Harris Savings Bank
234 N. Second Streit
Harrisburg, PA 17101
DISCLOSURE FOR CONFESSION OF JUDGMENT
THE UNDERSIGNED BORROWER IS EXECUTING, THIS TVVENTII;TH DAY OF SEPTEMBER, 1999, A CHANGE IN
TERMS AGREEMENT (the "AGREENIENNT~ FOR 5350,000.00 OBLIGATING THE BORROWER TO REPAY THAT
AMOUNT.
A. I UNDERSTAND THAT THE AGREIIuE21T CONTAINS A CONFESSION OF JUDGMENT PROVLSION THAT
WOULD PERMIT LENDER TO ENTER JIJDGNIF.NT AGAINST THE BORROWER IN COURT, AFTER A DEFAULT ON
THE AGREE1vtENT, WITHOUT ADVANCE NOTICE TO THE BORROWER AND WITHOUT OFFERING THE
BORROWER AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGINh'NT. IN EXECUTING THE
AGREIIvIENT, BEINCr FULLY AWARE OF THE BORROWER'S RIGHTS TO ADVANCE NOTICE AND TO A HEARING
TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST
THE BORROWER UNDER TIB; AGRF.EMED]T, I, ON BEHALF OF TILE BORROWER, AM KNOWINGLY,
II~]TEI.LIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCENOTICE
OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMIIJT
AGAINST THE BORROWER BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT
PROV6ION.
TN117AIS:
B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT
AGAINST THE BORROWER WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT
PROVISION IN THE AGREEMEN'T' ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY
OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON,
TAKING POSSESSION OF OR OTHER WISE SI.IZINTG THE BORROWER'S PROPERTY, IN FULL OR PARTIAL
PAYMENT OF THE JUDGMENT. HOWEVER, LENDER MUST PROVIDE NOTICE TO THE BORROWER UNDER
APPLICABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN EXECUTING THE AGREEMENT, BEING
FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER PUDGMENT bS ENTERED AND
BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND V UNTARILY WAIVING
THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S EXECUTIN_~~~~ JUDGMENT, IN
ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW. INTI7AL.S:
C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE' APPLICABLE,
AND BY PLACING MY INTT7ALS NE)CT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT:
I . I WAS REPRESENTED BY MY OWN INDI~ENDENT LEGAL COUNSEL IN CONNECTION WT1H THE
AGREEMENT.
~_ 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT
PROVISION IN THE AGREEMENT TO MY ATTENTION.
D. I CERTIFY THAT THE BORROWER'S ANNUAL INCOME EXCEEDS 510,000.00; THAT THE BLANKS IN THIS
DISCIASURE WERE 1'II1.ED IN WHEN I INTI7AI.F.D AND SIGNED TT; AND THAT I RECIIVED A COPY AT THE
TIME OF SIGNING.
THIS DISCLOS I~;TT SI AND SEALED BY THE UNDERSIGNED.
Robert C. Skelly, President
c
Sovereign Bankµ plc'!'>~
February 22, 2007
VIA REGULAR MAIL AND
CERTIFIED MAIL, RETURN RECEIPT REQUESTED
R.C. Skelly, Inc.
18 East Lisburn Road
Mechanicsburg PA 17055
ATTN: David Williams
Robert C. Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
G. Louise Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
Re: Indebtedness of R.C. Skelly, Inc. (the "Borrower") to Sovereign Bank (the
"Bank") as guarantied by Robert C. Skelly and G. Louise Skelly (the
"Guarantors")
Dear Mr. Williams and Mr. and Ms. Skelly:
Responsibility for the loan arrangements between the Bank and the Borrower has been
transferred. All communications from the Borrower and/or Guarantors to the Bank are to be
addressed to John T. Robertson, Vice President, 450 Penn Street, MC 10-421-MAl,
Reading PA 19602, until further written notice from the Bank.
Reference is made to the Promissory Note of the Borrower in the original principal
amount of $150,000.00 dated December 19, 1997 and payable to the order of Harris Savings
Bank as modified by that certain Change in Terms Agreement dated September 20, 1999
(collectively, the "Note"). The Bank is the holder of the Note. The Borrower is in default
under the Note in light of, among other things, the termination of the Borrower's business (the
"Default"). This letter constitutes formal notice to the Borrower and Guarantors of the
occurrence of the Default.
This letter will also serve as written notice that as a consequence of the occurrence of
the Default, the Bank has elected to terminate the Borrower's ability to receive advances
under the Revolving Line of Credit evidenced by the Note (the "Line of Credit"). Be advised
that the Bank shall make no loans or advances under the Line of Credit, and that the Borrower
JeRrey L. Goodman, Esquire
Senior Counsel
Sovereign Bank
MC-20-536-ARO
Two Aldwyn Center
East Lancaster Avenue and Aldwyn Lane
Villanova PA 19085-1420
Telephone: 610-526-6313
Facsimile: 610-526-6383
E-mail: JGoodman@SovereignBank.com
February 22, 2007
Page 2 of 2
shall have no right to re-borrow any amounts of the Line of Credit that may be repaid.
Similarly, the Bank hereby rescinds any other un-funded commitments to advance or lend
money.
As a result of the Borrower's default, the Bank has elected to exercise its option to
declare the entire unpaid principal balance of the Note and all accrued and unpaid interest to
be immediately due and payable. As of the date hereof, there is unpaid, due and owing to the
Bank under the Note the amount of $251,280.42. Demand is hereby made for the immediate
payment in full of all amounts which are due and which may become due under the Note.
Should the full amount demanded herein not be paid in full within fifteen (15) days, the Bank
will assess the contractual late charge of five percent (5%) of the sum of the unpaid principal
plus accrued interest. The balance due under the Note may increase or decrease as a result of
the receipt of payments and the proceeds of collateral securing the Note and the accrual of
interest, late charges, costs of collection and other fees, costs and expenses. Therefore,
immediately prior to remitting payment, please contact John T. Robertson at b10-988-1926
to obtain final payoff amounts and remittance instructions.
Nothing contained in this letter is intended as a waiver or release of any of the terms or
provisions of the Note or of any and all other notes, instruments or agreements between the
Bank and the Borrower and/or Guarantors (the "Loan Documents"), including, without
limitation, the requirement that the Borrower and/or Guarantors pay on demand any amount
so payable under the provisions of the instrument evidencing the same. The Bank reserves all
rights and remedies available to it under the Loan Documents, and applicable law, all of
which are expressly hereby reserved. No discussions between the Bank and the Borrower
and/or Guarantors concerning this notification, other loan relationships between the Bank and
the Borrower and/or Guarantors, or any other matter shall imply an agreement on the part of
the Bank to waive any of its rights and remedies or to forbear from taking any action
authorized by the Loan Documents or applicable law, whether or not such discussions may be
continuing. The acceptance of any partial payment of any of the obligations of the Borrower
and/or Guarantors to the Bank shall not be deemed a waiver or limitation of any of the Bank's
rights reserved herein as to the full amount of any unpaid balance. Any delay or forbearance
by the Bank in the enforcement or pursuit of any of its rights and remedies under the Loan
Documents or applicable law shall not constitute a waiver thereof, nor shall it be a bar to the
exercise of the Bank's rights or remedies at a later date.
Should you have any questions, please do not hesitate to contact my off
-N, ESQUIRE
JLG/dm
cc: John T. Robertson, Vice Preside
^ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desired.
^ Print your name and address on the reverse
so that we can return the card to you.
^ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
G. Louise Skelly
?9 Pine Tree llrive
Mechanicsburg P~1 17055
A. Signature
X ~^o~l~-+-~ ~~ z-k.~~~y
^ Agent
^ Addressee
B. Received by (l~rinted Name) C. Date of Delivery
D. Is delivery address different from item 1? ^ Yes
If-YES, enter delivery address below: ^ No
3. Service Type
Certified Mail ^ Express Mait
^ Registered ^ Retum Receipt for Merchandise
^ Insured Mail ^ C.O.D.
4. Restricted Delivery? (Extra Feel ^ Y~
2. Article Number 7QQ4 289Q QOQ4 5665 6Q22
(rransrer ~ service label
PS Form 3811, February 2004 Domestic Retum Receipt ~o25s5-o2-w-~sac
^ Complete items 1, 2, and 3. Also complete
item 4 ff Restricted Delivery is desired.
^ Print your name and address on the reverse
so that we can return the card to you.
^ Attach this card to the back of the mailpiece,
or on the front 'rf space permits.
1. Article Addressed to:
R.C. Skelly, Inc.
18 Cast Lisburn Road
Mechanicsburg PA 17055
AT'"IN: David Williams
5lgnature
X ~~~ ^ Agent
^ Addressee
B. 'vedjby (Printed ame) Ci,D ~~Af Delivery
D. Is delivery address different from item 1? ^ Yes
If YES, enter delivery address below: ^ No
3. Service Type
Certified-Mail ^ Express Mail
^ Registered ^ Retum Receipt for Merchandise
^ Insured Mail ^ C.O.D.
4. Restricted Delivery? (Extra Fee) ^ Yes
2. Article Number 7004 2890 OQQ4 5665 6039
(Transfer from service /aben
PS Form 3811, February 2004 Domestic Retum Receipt tp2rag5.02-M_15gp
^ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desired.
^ Print your name and address on the reverse
so that we can retum the card to you.
^ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
Robert C. Skelly
29 Pine -Tree Drive
Mechanicsburg PA 1705
A Signature
X ^ Agent
^ Addressee
B. Received by (Printed Name) C. Date of Delivery
__ :Z-.26-~~
D. Is delivery address different from item 1 ? ^ Yes
If YES, enter delivery address below: ^ No
3. Service Type
~ Certified Mail ^ Express Mall
^ Registered ^ Retum Receipt for Merchandise
^ Insun3d Mail ^ C.O.D.
4. Restricted Delivery? (Extra Fee) ^ Yes
2' A~cle""~'~` 7QQ4 289Q 0004 5665 6046
(Transfer from service label)
PS Form 3811, February 2004 Domestic Return Receipt 102595.02-M-1540
bMMERCIAL GUARANTY
GU8lrant,Or: Robert C. Skelly and G. Louise Skelly
29 Pine True Drive
il~ectrerricsburp, PA 17055
AMOUNT OF GUARANTY. The amount d this Guaranty is Untlmited.
CONTINUING UNLIMITED GUARANTY. For good and valuatrk conslderaUon, Robert C. Skelly and G. Louise Skelly ("Grrararrbr") absdutel
and uncondttlonady guararrbe and promfsc b pay, Jofnty and severely, b Harris Savings Bank (Lender") a Its order, on demand, In kg[
lender of the Urlikd Stases of America, the Indebtedness (as that term k rkffrted below) of R.C. Skelly, inc. ("Borrovrer'~ b Lender on th
terms and conditions set forth k this Guaranty. Under this Guaranty, the liability of Guaranbr k unilmtNd end the obdgaUons of Guarante
are continuing.
DEFINITIONS. The (dlowing wards shag have the following meanings when used in itds Guaranty:
Borrower. The word '13txrower" means R.C. Skelly, Inc..
Guaronior. The ward "Guarantor" means Robert C. Skely and G. Louise Skelly, who are signing this Guaranty jointly and severally.
Guaranty. The wtxd'1Guarenfy" means this Guarantyy made by Guarantor for the bonefit d Lender dated December /9.1997.
Indebtedness. The word '7rdebkdness" is used in its most compreheruive sense and means and krchides any and all d Borrower's liabiitie;
obligations, debts, and indebkdrress to Lend, now existing or hereinafter incurred or creased. fig, wtihout drrritafion, aA bans. advance;
interest. costs, debts, overdraR indebtedness, rxtd'it card iridebsedness, lease abdpations, ottrer obdpatlons, and labditie~s d earower, or any c
them. and any present ar future judgments agair>st Borrower. or any d them; and whether any such Irrdebssdrress is vduntariy or invduntarit
incurred. due tx not due, atuolute or contingent. dquidated or uNiquidated, dekrrrt#red or uxrdeternrirred; whether Bonower may be dab6
intfivlduady or Jdndy with others, or primariy. or secondarily, or as guarantor a suxey; whether reco~rery on the Indebtedness may be or ma
become barred or unenforceable against Borrower for any reason whatsoever, and whottrer ttre Indebtedness arises from transactions which ma'
be voidable on account d inferrwy, kuaru'ty, ultra vfres, or otherwise.
Lender. The ward 'Lender" means Flarris Savings Bank. its sraaessors and assigns.
Related Doparrents. The words "Related Documents' mean and induxfe wltlrout dn>itatlon aN prartwssory noses, credit agreements, bsr
r~raements, environmental agrearnents. guaranties, secxxilY apreemerds, mortgages, deeds d trust. and ail ottrer instruments, agreements ant
dacurnents, whetlrer now or hereafter t~stinp, exacuied in connection with the Indebtedness.
NATtffiE OF GUARANTY. Guarantors iabiity under this Guaranty shah be open and continuous for so kmp as this Guaranty rrirneirrs b force
Guarantor kttends to guarantee at aA times the performance and prompt payment when due, whether at maturity or earder by reason d acceleration o
dherwise, d aN Indebtedness. Accordingly, no payments made upon the Indebtedness will drscfrrupe or dirrdrrish the continuing Nabifity d Guaranto
in connection with any rerrrairrirrg Portions d the Indebtedness or any d the Indebtetirress which subsequently arises a is thereafter incrrred o
contracted. The obdpations d Guarantas shad be jdnt and several Larder may Proceed against any d tiro Guarantors irdivlduady, apatr>st err
group d Guararrbrs, a agairst ad the Guarantors In one action, wdhout affecting the right d lender to proceed against other Guarantors for amount;
that are covered by #ris Guaranty. Any inabiYy d Lender to proceed apairrst any Guarantor (wfretlrer caused by actions d a Guarantor or d Lender
will not affect Lender's right to Proceed against any or ad-rtxnatnirq Guarantors for aN or part d the amounts t~vered by this Guaranty.
DURATION OF GUARANTY. Thy Guaranty will take effect when received by Lander without the rreoe~ity d any aoceptanoe by Lender, or any notice
b Guarantor or to Borrower, and will wntinue b trAl taros until all Irrdebtedrress Incurred or cordreckd before receipt by Lender d any notice o
revocation shad have been tiny and finally paid and satisfied ant! all'atlrer ebfigations d Guarantor under tl>js Guaranty shed have been performed Ir
full. ti Guarantor elects to revoke this Guaranty, Guarantor may ashy do so kr wrttinp. Gtuarantor's wrdlen ndioe d revocation must be mailed k
Lender, by certlfied mad. at the address d Lender liskd above tx such otl~er place as Lender may desipnak in wrdirg. Wrtiten revocation d thk
Guaranty ~ ePPN ~ k advances or new Indebtedness created after achial receipt by Lender d Gu~aranbrs written revocation. For this purposr
and without drtp"lation, the term "new Indebtedness" does not indode k~debtedrress wtrich at the time d ndioe d revocation is cordinpent, urrilquktated
urdeterniined or not due and wFrich later becomes absduk, dqufdated, desermined or due. Notloe d revocation shag be tr(lerdive oNy as to thr
particular Guarantor providing the notice. and shad not afleii the dabiiity d other guarantors. This Guaranty wiN rxmtlnue to bind Guarantor for al
Irdebtedrress hrcrxred by Borrower or committed by Lender prior 1o receipt d Guarentors wrilkn rrotlr:e d revocation, irx~udirrg arty eoderrstars
renewals. substitudoru or moddicatiorrs d the Indebtedness. Ad renewals. tecser>sions, srorrs, and modifications d the Mdebtedness grardec
after Guarantors revocation are conkmPlakd urder ttris Guaranty and, specifically wd1 not be considered to be new Indebtedness. Ttds Guaranh
shall 6krd the estate d Gtmrarrtor as to Indebkdrress rxerded both betas and after the death or incapacdy d Guarantor, repardess d Lenders actua
notice d Guarantors death. Subject b the forepoirq, Guarantors executor or admirrLstrator a dhar legal representative may termtnak this Guaranty tr
the same manner in which Guarantor might have terminated d and with the same effect. Release d any other guarantor a iemtination d any other
puarardy d the Indebtedness shad not affect tiro dabiNy d Guarantor under this Guaranty. A tevocaticn received by Lender from any one or mon
Guarantors shad not affect the dabidly d any rrrtneininp Guarantors urder this Guaranty. K k sngcipisd that tkrctuatbns may oxur h th!
aggregate amount of Indebtedness covered by this Guaranty, and ff fs spedffcaly admowledped and agreed by Guarantor That roducUons in
the amount of Indebtedness, even b aero dollars (So.00), Prior b wAgetn rovocatlorr of this Guaranty by Guaranbr shad not constitute t
tetmlrraUon of ttds Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs. sucowors and assigns so long as any of the
gtreranfesd indrless remains unpaid and even though the indebtedness puarani+eed may from tkne b tkns be aero dollars (so.on).
GUARANTOR'S AtlTfF10RIZATION TO LENDER. Guarantor authorixas.Lsnder, etiher before tx after arty revocation hared, without notice a
rtentand and wfthorrt kssenkrg Guaranbrs tlablilly under this Grlerrarrty,'irom Was b time: (a) prbr b rovocetlon as set forth above, b make
one or moro addtiorrM securod or unsecured loons b Borrower. b tease equipment a other floods b Borrower. or otherwise b extend
addiNorral credit b Borrower; (b) b agar, compromise. renew, extend, acccterate, or otfrerrrrlee drarrge one or moro times the time tie
payment or other serrrrs of the Indebtedness or any dart of the Indebssdnsss, Inducting Increases and decreases of the rata of lntereat on the
Indebtedness; eadenslons may be ropeated and may bs for forrgsr than the txiginal loan term: (c) b take and hold security fa the payment of
ffris Guaranty or the Irdebtedrress, and exchange, enforce, waive, subordinate, fail a decide not b perfect, and roiease any such security,
with or without the substitution of new t:Wlateral; (d) b release, substialle, agree Trot b sue, ar deal wHh any one or moro d Borrower's
Borrower: R.c. Skdy, Inc. (rlN: 25-1588515) Lender: Harris Savings Bank
18 East LJSblrrn Rd. 234 N. Second Stroet
Bowrnansdak, PA 17008 P O eOx 1711
Harrisburg, PA 17105
~2_~9-~ss7 COMMERCIAL GUARANTY Page 2
Loan No 8881000235 (Continued)
sureties, endorsers, or other guarantors on any terms or In erns manner Lender may choose: (e) b detenNne how, when and what application
of payments and credits shaft be made on the Irrdebtedrreas; (~ to appy such security and d(rect firs order or manner of sate thereof,
Including without urNtation, erns rroryudidal sale permitted by the bans of the controWng security agreement or deed of trust. as Lender In its
discretion may determine: (g) b seN, transfer, assign, or grant pons b sfl or arty part of the Indebtedness; and (h) to assign or
transfer this Guaranty in whole or In pert.
GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (a) no representations or agreements
of any kind have been made b Guarantor which would Emit or quaky in any way the terms of this Guaranty; (b) this Guaranty is executed at
Borrower's request and not at the request of Lender: (c) Gueren{or has IuN power. right and authority b enter irrlo this Guarardy; (d) the provisions of
this Guaranty do not conlict with or result in a defauH under any agreement or other iratrument binding upon Guarantor and do not result in a violation
of any law, regulation, court decree or order applicable to Guarantor, (e) Guarantor tras not and wig not, without the prior written consent of !.ender,
seC, lease, assign, errarrrrber, hypothecate, transfer. or otherwise dispors of aA or substantiapy a9 of Guarantor's assets, or any interest therein: (f) upon
Lenders request, Guarantor wfN provide b lender flnarrctal and credt information in form acceptable b Lender, and eti such flnarrcial information
which pxrentiy has been. and all future flrrarrclel information whkh wfll be provided to Lender is and wYl be true and correct In aN material respects aril
fakty Present the flnancfal condition of Guarantor as of the dates the flnarrcial information is provided: (g) no material adverse change has ooaured in
Guarenbrs flrmnclal condrtion since the date of the mast recent flnarx9al statement provided b Lender and no event tms occurred.which rosy
matertaly adversely affect Guarantors tinanclal edition; (h) no Ntigation, claim, investigation. admrrristrative proceedtrrg or simper action Qrrcludirq
those for unpaid taxes} against Guarantor is penrfirrq or ttrreaterred; () Lender has made no representation b Guarantor as b the credtiworthiness of
Borrower, end (p Guarantor has established adequala means of obtainirrq from Borrower on a continuing basis information regarding Borrowers
flnerrclal condition. Guarantor agrees to keep adequately informed from such means of any tads, everrfis, or clrcurtrstanoes which might 1n arty way
affect Guarentors risks under lists Guaranty. and Guarantor further a~ees that Lender shah have no obligation to disclose b Guaranbr any inbrrtmtion
or documents acquired by Lender in the course d tis rebtiorahip with Borrower.
GUARANTOR'S WAIVERS. Except as protrWbd by applicable law. Guarantor waives arty right b require Leader (a) b continue lending money or b
extend other credit b Borrower: (b} b make any presentment, protest, demand, or notice d any kind, Including notice of any nonpayment of the
Indebtedness or of arty nonpayment related b any capabrel, or notice of any action or rronaction on the part of Borrower. Lender. any surely, endorser.
or other quarantar in rmnrrectfon with the Indebbdrress or In connection with lire creation d new or additional loans or oblpations: (c) b resort for
Pay or b Pra'~ ~tiY or at once against any person. irrckrdirg Borrower or any other quaranta; (d) b proceed direr;tiy against or exhaust any
cotiaterel held by Lender from eonower, any ottrer guarantor, or arty other person; (e) to give notice of lire lama, tirrre, and place of any Public or
private safe of Personal property securtiy held by fonder from Borrower or b oompy with any otirer applicable pr~ovisbra of the Uniform Commercial
Code; (~ b pursue arry other remedy wtihin Lenders Power; or (g) b commit arry act or omission of any Idrrd, or at any time, with respect b arty
matter whatsoever.
Guarantor also waives any and ad rights a deteraes arising by reason of (a) arty 'one action" or "aMi-deflaency' law or any other law wh~h may
prevent Lender from bringirp any action, trrdudinq a datm for deficlency, agatrat Guarantor. before or otter Leaders corrunenoerrrent err completion of
any foreclosure action, etifrer judrdaAY or by exerclse of a power of sale; ib) any election of remedies by lsrrder wtrich destroys or otherwise adversely
affects Guaranbrs subrogation rights or GuaraMor's rigtrls b proceed against Borrower for reinrbruserrrerM, hrduding wtihout tirtrtiation, any loss of
any other quaranbrY any other person, or by of ~~cessatlon BorroMrer's 1abiAty from am whatsoever. other ntha paymen nt i full
in legal tender. of the Indebtedness: (d) arry right b claim discharge of the Indebtedness on the bssis of unjratifled irrrpatrmerd of arty collateral for the
Indebtedness; (e) any statute of timtiations, if at arty time arty action a suit brought by Lender against Guarantor is commenced there is oulstarrdrrg
Indebtedness d Borrower b Lender which Is not barred by any applicable statuN of tirrrtiations; or (f) any deferaes given b gwrantors at law or in
equity other than aaual payment and perforrnanoe of the Indebtedness. M payment is made by Borrower, wtreitrer voluntanly or otherwise. or by any
ttrtrd party. on the Indebtedness and thereafter Lender is forked b remit the amount of that payment b Borrowers trustee in banknrptcy a b any
strngar person under any federal or state bankruptcy law or law for lire relief of debtors. the Indebtedness stmt be considered unpaid (or the p urpase of
enforcement of this Guaranty.
Guarantor further waives and agrees riot b assert or claim at any time any deductions b the amount guaranteed under this Guererrty for any claim of
setoff, counterclaim. counter demand, recoupment or similar riplrt, whether such claim. demand err right may be asserted by the Borrower. the
Guarantor. or both.
GUARANTOR'S l1NDEASTANDING WiTH RESPECT TO WAIYERS. Guarantor warrants and agrees that each of the waivers set forth above is made
with Guarantors tali knowledge of its sigrripcsrrce and consequer>ces and that. under the circunatancss, the wairrers are reasonable and not contrary to
public policy or law. If any such waterer is debrrrtirred b be contrary to any applicable law or public policy, such waiver shat! be effective only to the
extent pernitbd by law or public policy.
r Funcs:s RIGHT ~ SETOFF. In addition b all Vera upon and rights of setoff against the moneys, secsxities or other properly of Guarantor given to
Lender by law, tender steep have, with respect b Guarantors obtipatiors b Lender under ttris Guarardy and b the exbnt pernritied by law, a
conh~ctual possessory secrxffY interest in and a right of setoff agairat, and Guarantor hereby assigns. conveys. depvars, pledges. and trerafers to
t_errder ap of Guar'antor's right, title and interest in and b, ai deposits, moneys. securities and other properly of Guarentor now or hereafter in the
possession of or on deposit wtih 1.ender. whether held in a general or spatial acoouM or deposit, whether held jointly with someone else. or wtrether
held far safekeepirp or otherwise, exdudirg howevr3r V IRA, Keogh. and trust accounts. Every such secrrtiy tntenest and right of setoff may be
eoarrclsed without demand upon or notice b Guarantor. No security trrterest err right of setoff shah be deemed b have been waved by any ad err
conduct on the part of Lender or by any neglect b eroerdse such right of setoff or b enforce such seclrrNy interest or by any delay b so doing. Every
right of setoff and seaxtiY Interest shad continue in tali force and effect untY such right of setoff or securfly frrterest is specirrrmpy waived or released by
an instrument in writing executed by Lender.
SI~ORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower b Lender. whether now
existing or Frereafler created. steep be prior to arty dam that Guarantor may now have err hereafter acquire agatrrst Borrower, whether or net Borrower
becomes iraohrent Guarantor lrerebY expressly suborrirrates any claim Guarantor may have agatrat Borrower. upon any axourrt whatsoever. to any
claim that Lender may new or Ftereafler have against Borrower. M the event of insolvency and corasquent Nquidtion of itre assets of Borrower,
through banknipfcy. by an assignment for the beneQt of cxeditars. by vduntary iquidation. err otherwise. #re assets of Borrower applicable to the
PBY~ ~ the claims of both !..ender and Guarantor shay be paid b tender and shag be first applied by Lender to the Indebtedness of Borrower to
Lender. Guarantor does hereby assign b i-ender a1 claims which it may have or acquire agakKt Borrowrer or agairat any assignee or trustee in
banlutrptcy of Borrower; provided however, that such assignment ahap be efledive only for the purpose d assuring b Lender ful payment in legal
lender of the Indebtednress. ff Lender so requests, arty notes or credit agreemends now or hereafter evidendrg arty debts rX obpgatbns of Borrower b
Guarantor shay be martred with a legend that the same are subjecl b this Guaranty and shah be depvered to Leader. Guarenlor gees, and Lender
hereby is authorfaed, in the rmme of Guarentoy from time to time b execub and fde flrmndnD statements and corrtinualion statements and to execute
such other documents and to take such other actions as Lender deems necessary or appropriates to perfect, preserve and enforce its rights under this
Guaranty.
MISCELLANEAl1S PROVISIONS. The fotowint -_ ~ ~Cetianeous provisions are a part of this Guaranty:
12-19-1997 ~ COMMERCIAL GUARANTY ._. Page
Loan No 8881000235 ~~- (Corrtinued)
Amendments. This Guaranty, together with arty Related Documents, constitutes the entire understanding and agreement d the parties as to live
matters set forth in this Guaranty. No alteration d a amendment to ttus Guaranty shaA be effective unless given in writing and signed by the part
or parties sought to be charged or bound by the alteration or amendment.
Appikabk Law. This Guaranty has been delivered to Lender and accepted by Lender in the Commonwealth d Pennsyhrarda. ff there is ~
lawsuit, Guaranty agrees upon Lenders request to submit to the jurisdiction d the corms d Dauphin County, Commonwealth d Pennsylvani¢
This Guaranty shah be governed by and construed in accordance with the laws d the Commonwealth d Pennsylvania.
Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand ati d Lenders costs and , inducting aitarneys' tees and Lender
legal expenses. incurred in connection with the enforcement d this Guaranty. Lender may pay someone else to trelp entorce this Guaranty. aru
Guarantor shall pay the costs and expenses d such enforcement Costs and expenses include Lenders attorneys' fees and legal expense
whether tx nd there is a lawsuit, indudirp attorneys' fees and legal expenses for bankruptcy Proceedings (and kxx;luding efforts to modify a
vacate arty automatic stay or Injunction), appeals, and any antidpated post-judgment cotiection services. Guarantor also shaA pay aq court cyst
and such addtilonal fees as may be directed by the court.
Notkxs. AN notices required to be given by either party to the other under this Guaranty shah be in writing, may be sent by telefacsimife (antes
ottrerwise required by law), and. eurcept far revocation notices by Guarantor. shah be effective when actuaYy delivered or when deposited with r
nationaly recognised ovarrrigM cotxier, ar when deposited M the United States mail. fast lass postage Prepaid. addressed to the party to whop
the notice is to be ghren at the address shown above or to such other addresses as eiffrer party may designate b the dher in wrtting. A
revocation notices by Guarantor sha0 be In wrifng and shaA be effective ordy upon delivery b Lender ss provided above in the section titles
'DURATION OF GUARANTY.' ff there is more than one Guarantor. notice to any Guarantor wtil r~r~itub ratice to a1 Guarantors. For notia
purposes, Guarantor agrees to keep Lender informed at aq times d Guarantors current address.
Interpretation. In ati cases where there is move than. one Borrower or Guarantor, then aN words used in this Guaranty in the singular shat{ br
deemed to have been used in the plural where the context and c~rrstruction so require: and where there is more than one Borrower named in thi:
Guaranty or when this Guaranty is eoa~cuted by more than one Guarantor. the words 'borrower' and "Guarantor' respectively shat mean all arc
any one or more d tlrerrr. The words '+Guarantor," Borrower," and 'Lander' include the heirs. arrooassors, assigns, and transferees d each o
them. Caption headitgs in itds Guaranty are for convenience Purposes ony and are not to lie used b interpret or define the provisions d ttdr
Guaranty. ff a court d competent jurisdiction Ands arty provision d this Guaranty to be irmretid a unerdoroeable ~ to any person or dreumstance
such finding shah nd render that provision invalid or unenforceable as to any other persons a drsxrrstanoas, and aN provisiots d this Guarani!
in atl ottrer respects strap remain vaWd and enforceable. if any one or more d Borrower trr Guarantor are corporations a partnership& it is no
necessary for Lender k inquire Into the powers d Borrower or Guarantor or of the officers. directors, partners, ar agerds acting trr purporting to ac
On their behalf, and arty Indebtedness made or created in reliance upon the professed eocerdse d such powers shall be guaranteed under #rt
Guaranty.
-_ Waiver. Lender sha4 rat be deemed to have waived any rights under this Guaranty ur~ss such waiver is given in writing and signed by Lender
- No delay sK omission on the part d lender M exercising any right shag operate as a waMer d such rigid a arty other right. A waiver by Lender o
a provision d this Guaranty shat rat prejudice or constitute a waterer d Lenders right otherwise to denwnd strict compYance with that provision o
• • any other provision d this Guaranty. No prior waiver by Lender. nor any course d deaNng betvreen Lender and Guarantor, shell oor>sii4rte r
.. waiver d any d Lenders rigtds a d any d Guarantors obligations ss to arty future trar>sectiorrs. Whenever the consent d Lender is requires
.. ~ under ti,is Guaranty. the grardirg d such corrsa<rt by Lender in any iristanoe shall rat come cordinuing corrserd to subsegr~i! irrstarrc~
.: where such consent is required and in ap cases such consent may be granted tx withheld 1n the sole d Lender.
. - •? CROSS CDLLATERAlJZA770N. As sesxuily far this loan. as veep as any other credit fadUty extended to R.C. Skelly. Ira., Harris Savings Bank wA
cxxrtinue to maintain the foYowirrg coNateral: first lien on all accounts receivable, caritr>ict riptits, inventory. chattel paper. docurrierds, instrurtremis
general Mtanpibles, leasehold trrrproverrrerds, equipment, furniture. fixtures and machinery now owned or lrereiriafler acquired; and the persona
guarantees d Robert C. SkeNy and G. Louise SkeNy. Ap tx~Nateral which secures one credit fadGly exlendsd to R.C. Skelly. Inc., secures aN ottiet
fatAities eider-ded to the same. A defauff im one loan constitutes a default in aA other loans.
CONFESSION OF JUDGMENT. G11~411AJNTOR t~REBY IRREVOCABLY AtJTFIORF~S AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN ll•IE COMMONWEALTH OF PENNSYLVANIA, OR EI..SEWHERE, TO APPEAR AT ANY TIME FOF
GUARANTOR AFTER A DEFAULT UDDER THIS GUARANTY. AND WITH OR WfTFIOUT COMPWtYT Flt.ED, AS OF ANY TERM. CflN=ESS OF
ENTER JUDGMENT AGAINST GLL4FL4NTOR FOR THE ENTIRE PFi1NCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST. LATE
CHARGES. AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE
INDEBTEDNESS TOGETHER WITH INTEREST ON SUCH AMOUNTS. TOGETHER WITH OOSTS OF SUtT, MID AN ATTORNEY'S COMMISSION OF
TEN PERCENT (109L) OF TIE UNPAID PRINgPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS lI1Af~
FIVE HUNDRED DOLLARS (s500)~ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMI=DIATIIY; AND FOR
SO DOING, THIS GUARANTY OR A DOPY OF THIS GUARANTY VERIFIED BY AFFDAVIT SHALL BE SUFFlCENT WARRANt': THE AUTHORITY
GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST' GUARANTOR SHALL NOT BE E)giAUSTED BY ANY EXERgSE OF THAT
AUT'HORfTY, BUT SHIALL CONTINUE FROM TIME TO TIME AND AT ALL TTMES UNTTL PAYMENT IN FULL OF ALL AMOUNTS O~ UNDER THIS
GUARAMY. GUARANTOR FEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTI(:E OR 7'O A HEARING IN C.~~ONtVE<fiONWfIfTHN J~NY
SUCH CONFESSION OF JUDGMf=KT, t7(CEPT ANY NOTICE AND/OR HEARING REQUIRED Ut~DEFi APPLICABLE LAIN WITIi, RESPECT TC
EXECUTION OF THE JUDGMENT, AND STATES THAT EIT}IER A REPRESENTA7TVE OF LENDER SPECIFICALLY CALLED THIS' f,]nl OF
JUDGMENT PROVISION TO GlL4R~4NTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTI~ BY INDEPEPDENT LSf~1L~~
!:.
EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING BEAD ALL THE PROVISIONS OF TFi1S GUARANTY AND~'Af;~S TO ITS
TERMS. IN ADDITION. EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTDR'S E)fl~11T10N AND
DEtJJVERY ~ THIS GUARANTY TO LENDFA AIfD THAT THE GUARANTY WILL CONTINUE UNTL TERMINATED IN THE MANNER SET 1~FIT'H
tN THE SECTION TITLED "Dl1FiAT10N OF GUARANTY." NO FORMAL. ACCEPTANCE BY LENDER IS NECESSARY TO MAKE TWS GUARANTY
EFFECTIVE. THIS GUARANTY IS DATED DECEMBER 19,1997.
THIS GUA HAS BEEN GNED ~D SFJy.ED BY THE UNDERSIGNED.
G 0
Robert C. G. Lculee SloeOy
12-19-1997 COMMERCIAL GUARANTY Page 4
Loan No 8881000235 (Contjnuecij
INDIVIDUAL ACKNOWLEDGMENT
STATE OF ~~ 1
t3S
COl1NTY OF 1
On ttds, the ~_ day of 19~ before me '' _ ~~ the
w~ n~ies a ~scribed~t ninshru~mant, and Cade owlecl~d Uiat they a ~ulad~ >f~e saw br tha purposes ~thereirra_ ~n
In wikkss whereof. ~ ~seaf. - . .
g ~. Notary PtrbUc
~ ~~jdar 2041
• , ~°o gssooiation of Notaries Notary Publics in and for the State of
~RPRQ Rao u.S Pat.iT.IIA.Orr.. Var. 9.23 ic11iY7 CFI Pra6ervbet.Inc./Ul rl4hts res~rwdtPA-E20Ea24 F3.Z4 Pa.P49(ELL71Nt -
~~_, ..
DISCLOSIi. ~ FOR CONFESSION OF JUdGMENT
Guarantor: Robert C. Skeuy and G. Louise Skelly
29 Pfne Tree Drive .
McChaniCSburp, PA 17055
DISCLOSURE FOR CONFESSION OF JUDGMENT
1 AM EXECUTING, THIS ~ q ~ DAY OF rD-~1~~ Q~~ ,19~, A GUARANTY FOR AN UrLINITED AIIAOINrT.
A. 1 UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF ,Rp('MENT PROVISION THAT WOULD PERMIT LENDER TO
ENTER .!<DGMENT AGAINST ME IN COLJFtT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT
OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUAR/WTY, BEING FULLY
AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A tiEARWG TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS
THAT LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, 1 AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAMNG
THESE RIGHT`S, INCLUDING ANY RIGHT 70 ADVANCE NOTICE OF THE ENTRY OF JIAGMENT, AND 1 EXPRESSLY AGREE AND CONSENT
TO ~ FE'S ENrrERI MENT AGAINST ME BY (X)NIFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT
PROVISION. WITIAL.S:
B. 1 FURTFER UNDERSTAND THAT IN ADDITION TO GMNG LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITFIOIl~
ADVANCE NOTICE OR A HEARING. THE OONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT
WORD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING,
LEVYING ON, TAKING POSSESSION OF OR OTFIFRWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT.
HOWEVER, LENDER MUST PROVIDE NOTICE TO ME UNDER APPLICABLE LAW IN EXECIJTWG ANY CONIFESSED JUDGMENT. IN
EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS
ENTETIED AND BEFORE EXECUTION ON THE JLDGMEM, 1 AM KNOWINGLY, INTELUGENTLY AND VOLIJNITARiLY WAIVWG THESE
RIGHTS, AND 1 E)fPRESSLY AGREE AND OONSENT 'S EXECUTING ON 7FE JUDGMENT, W ANY MANNER PERIYIIITED BY
APPLICABLE STATE AND FEDERAL LAW. INITIALS:
C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMQITS ARE APPLICABLE, AND BY PLACING MY
INITIALS NEXT TO EACH STATEMENT WHICH APPLIES,1 REPRESENIT THAT:
INITIALS
1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSa IN CONNECTION WITH THE GUARANTY.
~~r7~ 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION W THE
JJUU GUARANTY TO MY ATTENTION.
D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS ¢'10,000; TWIT THE BLANKS IN THIS DISCI.OSIIFiE WERE FILLm W WHt71 1
INITIALED AND SIGNED IT; AND THAT 1 RECEIVED A COPY AT THE TIME OF SIGNING.
LASER PRO, Re¢ U.S. Pat. 3 T.M. Ott., Var. &29(c) 7!!Qr CFI ProSrvfcea, Inc. Allryhts reaarVad [PA-D3Q E8.24 F~.24 t~.24 SKELLT.LNJ
:}
~,.y
Borrower: R.C. Skelly, InC. (TIN: 25-15!{5515) Lender: Harris SavinSs Batdc
18 Esst Lisburn Rd. 234 N. Second Street
BOWtaarlSdale, PA 17008 P 0 BOX 1711
Harrisburg, PA 17105
i
• COMMERCIAL GUARANTY''= ~ ~~~~-`~~
Borrower: R.c. sleepy, Inc. Lender. lirrris savings Bank
is E. Lisburn Road 234 N. Second Street
Bowmanadale, PA 17008 P O Box 1711
FlarrfStwrg, PA 17105
Guarantor: aot>at c. Sleepy and G. Course Skelly
29 Pine Tree Drive
INedranicsburg, PA 17055
AMOUNT OF GUARANTY. The amount of this Guaranty is Unlimited.
CONTINUING UNLIMITED GUARANTY. For good and valuable carstderatlon, Robert C. Sleepy and G. Louise SkeNy ("Guarantor") absolutely
and unconditionally guarantet and promise b pay. Jointly and severalty, b Flarris Savings earn ("t-ender") or ps order, on demand, in legal
tender a the llntted Stales a America, the Indebtedness (as that term is defined blow) of R.C. Sleepy, Inc. ("Borrower") b Lender on the
leans and conditions sat forth In this Guaranty. lJrrder this Guararriy, the liability a Guarantor is unlNnited end pre obligations of Guarantor
are corrpnuing.
DEFINITIONS. The foNowing words shalt have the following meanings when used in this Guaranty:
Borrower. The word'8orroweP means R.C. Skelly, incr.
Guarantor. The word "Guarantor" means Robert C. Sketiy and G. Louise Skelly, who are signing this Guaranty jointly and severally.
Guaranty. The word "Guaranty" means this Guaranty made by Guarantor for the Nenetit d Lender dated September 20, 1999.
Indebtedness. The ward "Indebtedness" is used in its most comprehensive sense and means and irxx;ludes any and ant d Borrowers tiabWties,
obligations. debts, and indebtedness to Lender, now existirp or hereinafter incurred or created, irrdradirp, without limitation, ap loans, advances,
interest. casfis, debts. overdraft indebtedness. credit card Indebtedness, lease obggatbns, other obtigations, and liabities d Borrower, or any of
them, and any present or future judgments against Borrower. or any d them; and whether arty such Indebtedness is voluntarily or involuntarily
incurred, due or not due, absolute or contingent, liquidated or ur~iquidated, delermirted or undetermined; whether Borrower may be liable
irrdrviduapy or jointly wtih others. or primarily or secondarily, or as guarantor or surety; whether reco+rery on the Indebtedness may be or may
become marred or unenforceable against Borrower far any reason whatsoever; and whether the Indebtedness arises from transactions whbh may
be voidable on account of intancy, insanity. ultra vires, or otherwise.
Lender. The word'Lender" means Harris Savings Bank, its successors and assigns.
Relabd Documents. The words "Related Documents" mean and indude without timitatiorr ati 'promissory notes, credti agreemerts, ban
agreements, emrironmerrtal agreements, guaranties, securtiy agreements. mortgages, deeds d inist; and ant other insfrumenis, agreements and
documents. whetfrer now or hereafter existing. executed in contraction with the Indebtedness.
NATI~iE OF GUARANTY. Guarantor's tiatNfity under this Guarardy shah be open and continuous far so bng as this Guarerdy remains to force.
Guarantor intends to guarantee at as times the performance and prompt payment when due, whether at maturity or eartieP by reason d acceleration or
otherwise, of ad Indebtedness. Accordirrgty, no payments made upon dre Indebtedness wiA drscherge or dim6rish the ~~ Nabiltiy of Guarantor
in contraction with any remainng portions of the Indebtedness Or any d the Indebtedness which subsequentty arises or h tirereat0er incurred or
corrtreckd. The obigations of Guarantors shall be joint and severel. Lender may proceed against any d the Guarantors indviduaWy, against any
group d Guarantors, or against ad the Guarantors in one action, wtihout affecting the right d Lender to proceed agakrst other Guarantors for amounts
that are co+rered by this Guaranty. Any itrabTity of Lender to proceed against arty Guarantor (whettrer caused by actions d a Guarantor or d Lender)
wip not affect Leaders right to proceed against any or aN remainng Guarantors for aN or part d the amounts covered by tlris Guaranty.
DURATION OF GUARANTY. This Guaranty witi take effect when received by Lender without the necx~ity d any acoeptarrce by lender, or any notice
to Guarantor or to Borrower, and wiN continue in full force until ant Indebtedness incurred or contracted before receipt by !.ender d any rrotbe d
revocation shah have been fuNy and finapy paid and satisfied and ati other obligations of Guarantor under this Guaranty shag have been performed in
full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice d revocation must be mailed to
Lender, by cerfflkd mati, at the address d Lender fisted above or such other place as Lender may designate in writing. Written revocation d this
Guaranty vVill apply only to advances or new Indebtedne~ crested after actual receipt by Lender d Guarantors written revocation. For this purpose
and without Nrtdtation, the term "new Indebtedness" does trot include Indebtedness whbh at the time d notice d revocation b corrtinperrt, untiquidated,
tutdeterMned or not due and which later becomes absdute, liquidated, deterrNned or due. Notice d revocation shah be effective only as to the
particular Guarantor providing the notice, and shall not affect the tiebMity d other guarantors. This Guaranty wtil continue to bind Guarantor for afi
Indebtedness incurred by Borrower or oommiiled by Lender prior to rer~ipt d Guarantors written trolbe d revocation. including any extensbns,
renewals. substitutions or modifications d the Indebtedness. AJf rerrervals, extensions, substitutions, and modifications d the Indebtedness granted
after Guarantors revocation. are confemplakd under this Guaranty and. spedficatiy witi nd be considered to be new Itxlebtedness. This Guaranty
shall bind the estate d Guarantor as b Indebtedness creased boUr before and after the death or ittcapadly d Guarantor, regardless d Lenders actual
notice of Guarantors death. Subject to the foregoing, Guarantor's executor or administrator ar other ~ representative may kttNnale this Guaranty (n
tare same manner b wtrbh Guarantor might have terminated ti and with the same effect. Release d any other guarantor ar termination d any other
guaranty of the Indebtedness shall nd affect the Yabiity d Guarantor under this Guaranty. A revocation received by Lender from any one or more
Guarantors strap not ailed the Aab(fily of any remaining Guarantors under this Guaranty. n is antklpelsd that flucbra~pons may occur in the
pgregrde amount a Indebtedness covered by this Guaranty, and p is spectllcapy adarowledgsd acrd proed by Guanrrtor prat reeudbns in
the amount a Irrdebledness, even to aero doNars (tom), prior b wrtlten revocailon a this Guaranty by Grrerarrlor shop not consddrte a
tenmirretlon a this Guaranty. Ttris Cartaranty k bUWing upon Guarantor and Guarantor's 11sksR successors end assigns so long as arty a the
guaranteed Indebtedness remains urrpatd and even though the Indebtedness guaranteed may hen prae to time be zero doNers (10.00).
GUARANTOR'S AUTfpRIZATiON TO LENDER. Guaranty authorises Lender. either before a after any revocation hared, without notice a
demand and without lessening Guarantor's peWpty carder ilia Guaranty, from time b time: (a) prior b ravocatlorr asset forpr above, b make
one or more addiponal secured or unsecured loans b ea~rower, b lease epulpnrent or curer goods b Borrower, ar othawise b exlend
addillonal usrpt b Borrower; (b) b oiler, comprarrlee, renew. extend, accelerate, or otherwlae drangs one or more tknss the time for
payment or other terms a the Indebtedness or arty pert a the Indebtedness, irrdudbg Increases and derxeases a the rate a Interest on the
Irrdebiedrrsss; extensions may be repeaicd and' may be for longer uarr the orlglrrel ban term; (c) b tatae end told sewrlty for the payment a
this Guaranty drr the Indebtedness, and exchange, enforce, waive. subordtnae, tap or decide not b perfect, end release arty such seauity,
with or wlttwttt the wbstftupon of new coNaterd; (d) to rebsse, , agree not b sue, or deal with any one drr more of Borrower's
actuates, endorsers, or other gdurantors on any terms or b any manner !.ender may choose: (e) b debrnrine how, when and what apppdmtfon
of payments and crtuuts strap be made on the Indebtedness; (f) b apply srutr security and dked tare order or manner of sale thereof.
09-20-1999 COMMERCIAL GUARANTY Pad
Loan No 8881000235 (Continue
.~
. ~
including wittwut Ilmitatton, any nonjudlclM sale permitted by the terms of the controlUng searrity agreement or deed of trust, as Lender 1
discretion may deleredcte; lsu to seN, transfer. assign, or grant participations (n aU or arty pert of the Indebtedness; and (h) to assi9
transfer ttris Guaranty to whole or In p'arL
GUARANTOR'S REPRESENTATK>rIS AND WARRANTIES. Guarantor represents and warrants to Lender that (a) no representations or agreen
d any kind have been made to Guarantor which would limit or qualify in any way the terms d this Guaranty; (b) ttus Guaranty is executE
Borrower's request and not at the request d Lender, (c) Guarantor has fuA power, right and authority to enter Into this Guaranty; (d) the provisio
this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not restttl in a viol
of any Iaw, regulation, court decree or order appbcable to Guarantor; (e) Guarantor has not and wig not, without the prior wririen consent of Lei
seti, lease, assign, encumber. trypdt>ecate, transfer'; or otherwise dispose d all or substantially atl d Guarantors assets, or any Interest therein: (f) i
Lender's request, Guarantor wtil provide to Lender tinarrcial and credit &rforma8on in form acceptable to Lender, and ant such finandal inform
which currently has been, and aA future tinarrdal iMormation which wtil be provided to Lender is and wS be true and coned In a1 material respects
fairy present the financial condition of Gw-rantor as d the dates the f+nandal intornration is provided; (g) no material adverse change has oocum
Guarantor's finandal condition since the date d the most recent financial statements provided to tender and no event tree occurred which
materially adversely affect Guarantor's financial condition; (h) no litigation, claim, investigation, admir>istrative prooeedrng or sirrttiar action (inch
those for unpaid taxes) against Guarantor is pending or threatened; (i) Lender ties made no representation to Guarantor as to the creditwarttune
Borrower; and (j) Guarantor has established adequate means of obtaining Nom Borrower on a continuing basis Intormation regardirq 8orro~
financial condition. Guarantor agrees to keep adequatery informed from such means d any facts, everts, or dreunrstanoes which mlgM in any
affect Guarantor's risks under ttis Guaranty, and Guarantor further agrees that Lender shag have no obligation to tiisdase to Guarantor any inform
or documents aogtsred by Lender in the course d its relationship wtih Borrow.
GUARANTOR'S WAVERS. F~ept as prohbNed by applicable law, Guarantor waives any right fo require Leader (a) to continue fending money
.extend direr credrl to Borrower; (b} to -make any presentment, protest, demand, or notice d arty kind, including notice d any nonpayment o
Indebtedness or d arty nonpayment related to any cotiateral, or notice d any action or nonacfion on the part d Borrower, Lender. any surety. endc
or other guarantor in connection with the Indebtedness or M connection with the creation d new or additional Icons or obtigeMons; (c) to rasa
payment or to proceed drredly or at once agakrst any person, including Borrower or any doer guarantor, (d) to proceed directly against or exhaus
collateral held by Lender from Borrower, any dher guarantor. or any other person, (e) to give notice d the terms, Mme. and place d any publ
private sale d-Personal Property security held by Lender from Borrower or to compy with any outer appMterble prav(sior~s d the Uniform Comm
Code; (f) to pursue any other remedy within Lender's Power: or (g} to commit arty act or omission of arty kind, or at any Mme. wiMt respect tc
mailer whatsoever.
Guarantor also waives any and ati rights ar defenses arising by reason d (a) any "one action" a 'hnM-defidency' law or ar-y other taw wtdch
prevent Lender from bringing any action. including a claim tar defidency, agafrut Guarantor, before tx after tenders commencement or compleMt
any foreclosure action. either jtrdtdaay or by exerdse d a power d sale: (b) arty elecMon d remeriies by Ltxrder wtrich destroys or otherwise adve
affects Guarantors subrogation rights or Guarantors rights in proceed against Borrower far reimbursement. indudirg wittwut limitation, any lo:
rights Guarantor may StJper by reason d any law limiting, quatifytrg, ar discharging the Indebtedness; (c}any disabfiity or other defense of Borroww
any other guarantor, or d arty dher person. a by reason d the cessation d Borrower's NabAity nom any cause whatsoever. other than payment i
in legal tender, d the Indebtedness; (d) any right to claim discharge d the Irrdebledrress on the t>as~ d unjustified impairrtrertt d any cotlaferal fo
indebtedness: (e) any statute d titrtftatiorrs, M at any Mme any anon or suit txought by Lender against Guarantor is commenced titers is outstay
Indebtedness d Borrower io Lender which is not barred by arty applicable statute d timtiaMons; or (f) any defenses ghren to guarantors at law
equity dher than actual payment and performance d the Indebtedness. H payment is made by Borrower. whether volurrtarMy or otherwise. or b}
third party. on the Indebtedness and thereafter tender is forced to remit the amount of that payment to Borrowers trustee in bankruptcy or to
similar person under any federal a state bankruptry law a Iaw for the relief d debtors, the Indebtedness shah be considered unpaid for the purge
enforcement d this Guaranty.
Guarantor further waives and agrees not to assert or Beim at arty time any deductions to fire amount guaranteed under this Guaranty for any dal
setoff, counterdeim, counter demand, recoupment or sim>lar right, whether such claim. demand or right may be asserted by the Borrower,
Guarantor. or both.
GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrarrts and agrees that each d the waivers Set forth above is n
with Guarantors tuN knowledge d fls significance and o~.squerroes and that, under the dreumstances, the waivers are reasonable and nd contra
public pdicy or taw. U any stash waiver is determined to be contrary to any applicable taw or public policy, such waiver stiaA be effective only tr
eodent permitted by law or public policy.
LENDER'S RIGHT OF SETOFF. In addUion to aN Ilene upon and rights d setoff against the moneys, securities a ottrer property d Guarantor giw
Lender by law, Lender shah have, with respect to Guarantors obNgaMons to Lender under this Guaranty and to the extent permitted by la
contractual security interest in and a right d setoff agair>st, and Guarantor hereby assigns, conveys. delivers. pledges. and transfers to Lender ~
Guarantors right, Mtle and interest in and to, ati deposits, moneys, sectxiges and other property d Guararor now or hereafter in Itre possession
on deposit with Lender, whether held in a general or special account or deposit, whether held JokrMy with someone else, or whether heir
safekeeping or otherwise, exdudirg however all IRA, Keogh, and trust aocamis. Every such security interest and rlgM d setoff may be oxen
without demand upon or notice b Guarantor. No secuuity interest or right d setoff shah be deemed to have been waived by any act or conduct a
part d Lender or by any neglect to exercise such ripM d setoff or to entarce such security Interest ar by arty delay in so ddrg. Every right d setoff
security irKerest shah conMnue in futi force and effect unlit such right d setoff or security Interest is spedficatiy waived a released by an instrume
writing executed by Lender.
$tSORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness d Borrower to Lender, whether
existing or hereafter created. shah be prior to any claim that Guarantor may now have or hereafter acgtrire apeir>st Borrower, whether or not Born
becomes insolvent. Guarantor hereby expressly subordirwtes any claim Guararibr may have against Borrower, upon any aocourd whatsoever, tc
claim that Lender may now or hereafter have against Borrower. In the event of hisolverrcy and consequmrt tigtridaMon d the assets d Born
tiuough bankruptcy, by an assignment for the bertefrt d creditors, by vduntary NquidaMon, or otherwise, the assets d Borrower applicable a
payment d the claims of both Lender and Guarantor ahoy be paid >n Lander and shall be first appMed ay Lender to the Indebtedness d Borrow
Lender. Guarantor does hereby assign to Lender V claims which ti may have ar acquire against Borrower or against any assignee or trusts
bankruptcy d Borrower, provided however, that stx~r assignment shah be efleciive only for the purpose d assuring to Lender fW payment in
fender d the Indebtedness. If Lender so requests, any Holes a aedit agreements now or hereafter evfderrcing arty debts or obtigaMorns of Borrow
Guarantor shah be marked wtih a legend that the same are subject to this Gtrararitfr and slwti be deti~wred to Lender. Guarantor agrees, and Le
Hereby is authorised, in the name d Guarantor. from Mme ~ Mme to ezeade and file tinancing staterrrents and cation statemerds and to exta
such other documents and to take stx:h other actioru as Lender'deertts necessary or aPPi'oPriate to perfect, preserve and enforce its rights under
Guaranty.
MtSf:E7.LM1E0US t~ROVISIONS. The fotiowirg miscetianeous provisions are a part of this Guaranty:
Amendments. This Guararrly, toget• y~riM~ any Related Documer>ls, cor>SMhiles tfre enMre r~ r{erstanding and agreement of Mie parMes es k
matters set forth in this Guaranty. A1c ~ ,/ration of Or amendment tO lifts Guaranty Shah bee ve urileas gFren in writlng and Signed by the 1
~ ~Y
09-20-999 - - t~NIMERCIAL .GUARANTY --.., Page
Loan No 8881000235 ~ (Continued)
ar parties sought to be charged ar bound by the alteration or amendment.
Appikxlbie Law. This Guarerdy has been delivered to Lender and accepted by Lender in the Commorne-ealth of Pennsylvania. If there B a
lawsup, Guarantor agrees upon Lender's request to submit to the Jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania.
Lender and Guarantor hereby waive ttte right to any Jury trial in any action, proceentng, or counterclaim brought by either Lender ar Guarantor
against the other. This Guaranty strati be governed by and construed in axardance with the laws of the Commonwealth of Pennsylvania.
Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand ap of Lender's costs and expenses, including attorneys' fees and Lenders
legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may pay someone else to help enforce this Guaranty, and
Guarantor shah pay the costs and expenses of such enforcement. Casts and eucperrses include Lender's attomeys' fees and legal expenses
whether ar not there is a lawsuit, Including attorneys' fees and legal expenses for bankruptcy proceedings (and indudirrp efforts to modiy ar
vacate any automatic stay ar Injunction), appeals, and any antlclpated post-Judgment coGection services. Guarantor also shag pay aA c~~t costs
and such additional fees as maybe directed by the court.
Notices. All notices required to be given by eitherparty to the other under this Guaranty shop be In writing, may be sent by telatacsimpe (unless
otherwise required by law), and, except for revocation notices by Guarantor, shah be effective when actually delivered ar when deposited with a
nationally recogrii~ed overnipM courier, ar when deposited in the United Staffs map, fast class postage prepaid, addressed ~ the party to whom
the notice ~ to be given at the address shown above ar to such other addresses as either party may designate to the other In writing. Ap
revocation notices by Guarantor shat be in writing and shag be effective only upon depvery to Lender as provided above in the section titled
DURATION OF GUARANTY." It there >s more than one Guarantor, notice to any Guarentor wig rrorrsiitute notice to ap Guarantors. For notice
Purposes, Guarantor agrees fo keep Lender informed at aq limes of Guarantor's current address.
Interpratatbn. In aU cases where there is more than one Borrower ar Guarantor, then ap words used in this Guaranty in the singular shah be
deemed to have been used in the plural where the context and constructbn so require; and where there Is more than one Borrower named in this
Guaranty ar when this Guaranty is executed by more than one Guarentar, the words "Borrower" and "Guarantor" respectively steep mean ap and
any one ar mare of them. The wards 'Guarantor," 'Torrower," and 9.ender" include the heirs. successors, assigns. and barrsferees of each d
them. Caption headirps in this Guaranty are for carvenience purposes only and are not >n be used to interpret ar define the provisions of this
Guaranty. ff a court of competent jurisdiction finds any provision of this Guaranty to be invalid ar unenfaceabla as to any person ar arcumstanCe,
such finding shall not render that provision invalid or unenforceable as b any other persons ar circumstances, and a1 prwfsions of this Guarenty
in ap other respects steep remain valid and entorceable. If any one ar mare of Borrower ar Guarantor are corporations ar partnerships, ft is not
necessary for Lander to inquire Irrb the powers of Borrower ar Guarantor ar of the officers, directors, Partners. ar agents acting ar Purporting to act
on their behalf, and any Indebtedness made or created in reliance upon the professed exercise of such powers shah be guerarrteed under this
Guaranty.
Waiver. Lender shad not be deemed to have waived arty rights under this Guaranty unless such waiver is given in wrong and signed by Lender.
• - No delay ar ort>ission on the part of Lender in exeroising any right shag operate as a waiver of such rigid ar any other right A waiver by Lender of
-. a provision o(this' Guaranty shay not prejudice ar constitute a waiver of Lenders right otherwise to demand strict comppanoe with that provision ar
any other provision of this Guaranty. No prior waiver by Lender. nor any course of dealing between Lender and Guarantor, slurp cortstid~fe ~a
. waiver of any of Lender's rights ar of any of Guarantors obiigaifons as to any suture trarisactioris. whenever the consent of Lender is required
- under this Guaranty, the granting d such consent by Lender in any instance shop not cortstitule rxxitinuMg consent to subsequent instances
- ~ - where such consent fs required and in aN cases such consent may be granted or withheld in the sale discretion of Lender.
. CROSS COLLATERALIZATION. This Note wtp be cross-copaterapzed/aoss-defaulted with ap dher loans to the Borrower from the Lender. N at any
~~ - time there is a default under this Note, ap loans wpl be considered In detauti and all outstanding amounts under the loans wiN be irtxriediately due and
payable in fuA.
CONFESSION OF JIAGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORI~S AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE. TO APPEAR AT ANY TMAE FOR
GUARANTOR AFTER A DEFAULT UNDER THIS GUARANTY, AND WITH OR WITHOUT COMPLAINT FlL.ED, AS OF ANY TERM, CONFESS OR
ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST, LATE
CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING 11iE
INDEBTEDNESS TOGEi}ER WITH INTEREST ON SUCH AMOUNTS, TOGETFIER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF
TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INVEST FOR COLLECTION, BUT tN ANY EVENT NOT LESS THAN
FNE HUNDRED DOLLARS (5500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR
SO DOING, THIS GUARANTY Oft A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVR SHALL BE SUFFICIENT WARRANT. TI-E AIJT'HORfiY
GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SWILL NOT BE EXHAUSTED BY ANY EX~iCISE OF THAT
AUTFIORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS
GW~RANTY. GUARANTOR HEREBY WANES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY
SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO
EXECUTION OF TFE JUDGMENT. AND STATES T1iAT EITFIER A REPRESENTATTVE OF LENDER SPECIFlCALLY CALLED THIS CONFESSION OF
JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL
EACH UNDE}iSIGNED GUARANTOR ACKNONIfLEDGES HAVING READ ALL THE PROVISIONS OF THl3 GUARANTY AND AGREES TO ITS
TERMS. IN ADDITION, EACH GUARANTOR Lp~ERSTANDS THAT THIS GUARANTY IS EFFECTIVE t1PON GUARANTOR'S EXECUTION AID
D9.IVERY OF THIS GUARANTY TO t.ENDFJ~ AND THAT THE GUARANTY WILL CONTpiNJE 1J11T~ TERMINATED IN THE MANNBt SET FORTH
IN THE SECTION TITLED "DURATION OF GUARMITY." NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY
EFFECTIVE. THIS GUARANTY IS DAT® 20, itl9Y.
THIS tiUAR/WT BEEN IGNED BY TF~ UNDERSIGNED.
GUA OR: n [-~
:.. _._
Robert C. Sleepy G. Coulee Sleepy--- -------
LASER PRO, Rep. U.S. Pat. i T.M. OTT., Ver. x.27 (C)19GSi CFI ProServkee, inc. All rlprlt: reserved. IPA-E20 SKELLY~.LN Ct.OVII
DISCLOS~~~E FOR CONFESSION OF JUDGMENT
Borrower: R.C. skeiry, Inc. lender: Hams Savkws Bank
1E E. LLlburn Road 234 N. Second Street
Bowmansdale, PA 1700E P O BOx 1711
Fiarrisburp, PA 17105
Guarantor: Robert C. Skelly and G. Louise Skatly
29 Pine Tree DAve
McChanksburp, PA 17055
DISCLOSURE FOR CONFESSION OF JUDGMENT
1 AM EXECUTING, THIS ~~ DAY OF ~~~~n~.~ - ,19 9~. A GUARANTY FOR AN uNUMTED AMOUNT.
A. I UNDERSTAND THAT TtE GUARANTY CONTAINS A CONFESSION OF .JUDGMENT PROVISION THAT WOULD PERMIT LENOtSi TO
t71'TEti JUDGMENT AGAINST ~ Ui COURT, AFTER A DEFAULT ON THE GUARANTY, WtTtgUT ADVANCE NOTICE TO ME AND WITHOUT
OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST TtE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY
AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTtER CLAIMS
THAT LENDER MAY ASSERT AGAINST ME UI~ER THE GUARANTY, t AM KNOWINGLY, INTBLIGENTLY, AND VOLUNTAR0.Y WANING
THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND 1 D(PRESSI.Y AGREE AND CONSENT
TO LENDER'S ENTERING T AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT
PROVISION. INITIALS•
B. I FiJFtTFER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITFt0l1T
ADVANCE NOTICE OR A HEARING, THE OONFESSION OF JUDGMENT PROVISION IN THE GUARANTtt AI-SO CONTAINS LANGUAGE THAT
WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING,
LEVYING Olt, TAKING POSSESSION OF OR OTHERWISE BERING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT.
HOWEVER, LENDER MUST PROVIDE NOTICE TO ME UNDER APPLICABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN
EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARgiG AFTER JUDGIr~NT IS
ENTEitED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTBlIGENTLY AND VOL.UIITAR0.Y WANING THESE
RIGHTS, AND 1 EXPRESSLY AGREE AND CONSENT ~EXECIJTING ON THE JUDGMENT, IN ANY MANNER PERMITTED BY
APPUCABLE STATE ANO FEDERAL LAW. INITIALS:
C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING 8TATEMENTS ARE APPLICABLE, AND BY PLACING MY
INITIALS NEXT TO EACH STATEI~NT WHICH APPLIES, I REPRESENT THAT:
INITIALS
~j~ _~ 1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSti IN OONNECTKIN WITH THE GUARANTY.
~j~~~;~ - yr' 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE WNFESSION OF JUDGMENT PROVISION IN THE
~~ GUARANTY TO MY ATTENTION.
D. 1 CERTIFY THAT MY ANNUAL INCOME EXCEEDS X10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED iN WHEN 1
INITIALF~ AND SIGNED IT; AND THAT 1 RECENED A COPY AT THE TIME OF SIGNING.
THIS DISCLOStBEF~'SiIGNED AND St~AI.ED BY TFIE UNDERSIGNED.
Robert C. SkeNy
G. Louise Skelly
(SFJ1l.)
LASER PRO, Reg U.S. PaL t T.M. Off., Vv. 9.27 (c)1 Y99 CFI ProServkes, Inc. All rlphte reterwa. [PA-D90 SKELLI'4.LN C1.OVL1
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK
Plaintiff
CIVIL ACTION
vs.
No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
Commonwealth of Pennsylvania
County of Delaware
AFFIDAVIT OF NON-MILITARY SERVICE
Before me, a Notary Public for Delaware County, Pennsylvania, personally
appeared Jeffrey L. Goodman, Esquire, Attorney for the Plaintiff in the above entitled
case, who being duly sworn or affirmed according to law deposes and says, that the
Defendant R. C. Skelly, Inc. is not in the military service of the United States of
America, that he has personal knowledge that the said Defendant's last-known address is
18 East Lisburn Road, Mechanicsburg, PA 17055.
Sworn and subscribed before
me this ~ day of ~ ,
2007
N Public
My Commission expires:
COMMONWEAL~NNSYI VANIA
,lennffer Devine, Notary Publ~
~~. Twp., Delaware County
~ ~m~n F~in3s Feb. 16.2011
Member, Pennsylvania pesociation of Notaries
>odman, Esquire,
for Plaintiff
' 2036-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
Commonwealth of Pennsylvania
County of Delaware
AFFIDAVIT OF NON-MILITARY SERVICE
Before me, a Notary Public for Delaware County, Pennsylvania, personally
appeared Jeffrey L. Goodman, Esquire, Attorney for the Plaintiff in the above entitled
case, who being duly sworn or affirmed according to law deposes and says, that the
Defendant Robert C. Skelly is not in the military service of the United States of
America, that he has personal knowledge that the said Defendant's last-known address is
29 Pine Tree Drive, Mechanicsburg PA 17055.
Sworn and subscribed before
me this ~ l day of ,~ l~ ,
2007
-~ J ~~
tart' Pub is
My Commission expires:
COMMONW~ ~NNSYLVANIA
.lennifer Devine, Notary Public
Radnor Twp•, p~vrare Co ~! 2011
My Connm~ssion F-~~ Fete.
Member, Pennsylvania Association of Notaries
SOVERE K
~/~ `~
oodman, Esquire,
s A rney for Plaintiff
20 36-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK
vs.
Plaintiff
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
Commonwealth of Pennsylvania
County of Delaware
AFFIDAVIT OF NON-MILITARY SERVICE
CIVIL ACTION
No.
Before me, a Notary Public for Delaware County, Pennsylvania, personally
appeared Jeffrey L. Goodman, Esquire, Attorney for the Plaintiff in the above entitled
case, who being duly sworn or affirmed according to law deposes and says, that the
Defendant G. Louise Skelly is not in the military service of the United States of
America, that he has personal knowledge that the said Defendant's last-known address is
29 Pine Tree Drive, Mechanicsburg PA 17055.
Sworn and subscribed before
me this ~ day of u ~~- ,
2007
~7 ~ ~ n
No~'ary Public
My Commission expires:
SOVERE
.Goodman, Esquire,
As orney for Plaintiff
-536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
I.D. No. 62689
COMMONWEALTH OF PENNSYLVANIA
Notarial Seal
Jennifer peva~>e, Notary PubNc
Radnor Ttnip., Delawat'e CouMY
My Comrrtission Fires Feb. 16, 2011
Member, Pennsylvania Association of Notaries
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs.
No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
OFFICE OF THE PROTHONOTARY
OF CUMBERLAND COUNTY
CERTIFICATE OF RESIDENCE
PA. R.C.P. 236
I hereby certify that the precise mailing address of the Plaintiff is:
Two Aldwyn Center
East Lancaster Avenue and Aldwyn Lane
Villanova PA 19085-1420
I hereby certify that the precise mailing address of the Defendant R. C. Skelly, Inc. is:
18 East Lisburn Road
Mechanicsburg, PA 17055
I hereby certify that the precise mailing address of the Defendant Robert C. Skelly is:
29 Pine Tree Drive
Mechanicsburg PA 17055
I hereby certify that the precise mailing address of the Defendant G. Louise Skelly is:
29 Pine Tree Drive
Mechanicsburg PA 17055
Dated: July 31, 2007 By:
. Goodman, Esquire
s ornev for Defendants
2~=536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK
vs.
Plaintiff
CIVIL ACTION
No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
Commonwealth of Pennsylvania
County of
AFFIDAVIT OF DEFAULT AND BUSINESS TRANSACTION
John T. Robertson, being duly sworn according to law, deposes says he is Vice
President for Sovereign Bank, Plaintiff, herein; that he is authorized to make this affidavit
on plaintiffis behalf, that a true and correct copy of the note and guaranties containing the
warrant of attorney upon which judgment is confessed are attached to the Complaint filed
in this action as Exhibits "A", "B", "D" and "E"; that the note and guaranties constitute
business transactions between plaintiff and defendants; that judgment is not being
confessed against individual persons in connection with a consumer credit transaction;
and that Defendants are in default under the note and guaranties for the reasons set forth
in the Complaint.
Sworn and subscri d before
me thiss(~ day of ,
007
otary Public
My Commission Expires
COMMONWEALTH OF PENNSYLVANIA
SC~EIGN B
By: -
- o erl
Vi President
NOTARIAL SEAL
Diane A Stepson, Notary Public
Reading., Berks County
M Commission Ex iris Feb. 5, 2011
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
NOTICE UNDER RULE 2958.1 OF
JUDGMENT AND EXECUTION THEREON
NOTICE OF DEFENDANT'S RIGHTS
TO: R. C. Skelly, Inc.
18 East Lisburn Road
Mechanicsburg, PA 17055
A judgment in the amount of $298,669.47 plus per diem interest of $64.2186 from
July 26, 2007 until paid in full, including post judgment per contract, plus costs of suit bas
been entered against you and in favor of the Plaintiff without any prior notice or hearing
based on a confession of judgment contained in a written agreement or other paper
allegedly signed by you. The sheriff may take your money or other property to pay the
judgment at any time after thirty (30) days after the date on which this notice is served on
you.
You may have legal rights to defeat the judgment or to prevent your money or
property from being taken. YOU MUST FILE A PETITION TO STRIKE OR OPEN
JUDGMENT THEREBY SEEKING RELIEF FROM THE JUDGMENT STATING ALL
GROUNDS FOR RELIEF IN A SINGLE PETITION AND PRESENT IT TO A JUDGE
WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS
SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER AND CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL
HELP.
LAWYER REFERRAL SERVICE OF THE
CUMBERLAND COUNTY BAR ASSOCIATION
2 Liberty Avenue
Carlisle PA 17013
717-249-3166 or 1-800-990-9108
Dated: July 31, 2007 By:
oodman, Esquire
Att nev for Defendants
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
NOTICE UNDER RULE 2958.1 OF
JUDGMENT AND EXECUTION THEREON
NOTICE OF DEFENDANT'S RIGHTS
TO: Robert C. Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
A judgment in the amount of $298,669.47 plus per diem interest of $64.2186 from
July 26, 2007 until paid in full, including post judgment per contract, plus costs of suit has
been entered against you and in favor of the Plaintiff without any prior notice or hearing
based on a confession of judgment contained in a written agreement or other paper
allegedly signed by you. The sheriff may take your money or other property to pay the
judgment at any time after thirty (30) days after the date on which this notice is served on
you.
You may have legal rights to defeat the judgment or to prevent your money or
property from being taken. YOU MUST FILE A PETITION TO STRIKE OR OPEN
JUDGMENT THEREBY SEEKING RELIEF FROM THE JUDGMENT STATING ALL
GROUNDS FOR RELIEF IN A SINGLE PETITION AND PRESENT IT TO A JUDGE
WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS
SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER AND CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL
HELP.
LAWYER REFERRAL SERVICE OF THE
CUMBERLAND COUNTY BAR ASSOCIATION
2 Liberty Avenue
Carlisle PA 17013
717-249-3166 or 1-800-990-9108 //
Dated: July 31, 2007 By: li
J e . G dman, Esquire
or y for Defendants
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
NOTICE UNDER RULE 2958.1 OF
JUDGMENT AND EXECUTION THEREON
NOTICE OF DEFENDANT'S RIGHTS
TO: G. Louise Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
A judgment in the amount of $298,669.47 plus per diem interest of $64.2186 from
July 26, 2007 until paid in full, including post judgment per contract, plus costs of suit has
been entered against you and in favor of the Plaintiff without any prior notice or hearing
based on a confession of judgment contained in a written agreement or other paper
allegedly signed by you. The sheriff may take your money or other property to pay the
judgment at any time after thirty (30) days after the date on which this notice is served on
you.
You may have legal rights to defeat the judgment or to prevent your money or
property from being taken. YOU MUST FILE A PETITION TO STRIKE OR OPEN
JUDGMENT THEREBY SEEKING RELIEF FROM THE JUDGMENT STATING ALL
GROUNDS FOR RELIEF IN A SINGLE PETITION AND PRESENT IT TO A JUDGE
WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS
SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER AND CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL
HELP.
LAWYER REFERRAL SERVICE OF THE
CUMBERLAND COUNTY BAR ASSOCIATION
2 Liberty Avenue
Carlisle PA 17013
717-249-3166 or 1-800-990-9108 /~
Dated: July 31, 2007 By: ~-
,,T odman, Esquire
/ tt ev for Defendants
206-ARO
2 ldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
Pa. R.C.P No. 2959
PURDON'S PENNSYLVANIA STATUTES AND CONSOLIDATED
STATUTES ANNOTATED PURDON'S PENNSYLVANIA CONSOLIDATED
STATUTES ANNOTATED PENNSYLVANIA RULES OF CIVIL PROCEDURE
CONFESSION OF JUDGMENT FOR MONEY.
Current with amendments received through December 1, 2003.
Rule 2959. Striking Off or Opening Judgment; Pleadings; Procedure
(a) (1) Relief from a judgment by confession shall be sought by petition.
Except as provided by subparagraph (2), all grounds for relief whether to strike off the
judgment or to open it must be asserted in a single petition. The petition may be filed in
the county in which the judgment was originally entered, in any county to which the
judgment has been transferred or in any other county in which the sheriff has received a
writ of execution directed to the sheriff to enforce the judgment.
(2) The ground that the waiver of the due process rights of notice and
hearing was not voluntary, intelligent and knowing shall be raised only
(i) in support of a further request for a stay of execution where the
court has not stayed execution despite the timely filing of a petition
for relief from the judgment and the presentation of prima facie
evidence of a defense; and
(ii) as provided by Rule 295 8.3 or Rule 2973.3.
(3) If written notice is served upon the petitioner pursuant to Rule
2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such
service. Unless the defendant can demonstrate that there were compelling reasons for the
delay, a petition not timely filed shall be denied.
(b) If the petition states prima facie grounds for relief the court shall
issue a rule to show cause and may grant a stay of proceedings. After being served with a
copy of the petition the plaintiff shall file an answer on or before the return day of the
rule. The return day of the rule shall be fixed by the court by local rule or special order.
(c) A party waives all defenses and objections which are not included
in the petition or answer.
(d) The petition and the rule to show cause and the answer shall be
served as provided in Rule 440.
(e) The court shall dispose of the rule on petition and answer, and on
any testimony, depositions, admissions and all other evidence. The court for cause
shown may stay proceedings on the petition insofar as it seeks to open the judgment
pending disposition of the application to strike off the judgment. If evidence is produced
which in a jury trial would require the issues to be submitted to the jury the court shall
open the judgment.
(f) The lien of the judgment or of any levy or attachment shall be preserved
while the proceedings to strike off or open the judgment are pending.
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs. No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
SECTION 2737.1 NOTICE
Pursuant to 42 Pa. C.S. § 2737.1, attached hereto are written instructions
regarding the procedure to follow to strike the confessed judgment entered against you.
Please be further advised that if you have been incorrectly identified and had a
confession of judgment entered against you, under 42 Pa. C.S. § 2737.1 you are entitled
to costs and reasonable attorney's fees as determined by the Court.
Dated: July 31, 2007
By:
r
_~
Rodman, Esquire
for Defendants
?.~l 536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
Phone: 610-526-6313
I.D. No. 62689
r~ ~.~ F \
r %' 4 l
1 ~~
~„ ~' c~ 9 s ~ ---~
_ ~. ~ ' '
~ ~ d Gi _'
,.p ~ '~
~ ~ o o :4
," 88 a - N_ ~.; ~,
da ,,,~ yr ~ ~,
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
SOVEREIGN BANK CIVIL ACTION
Plaintiff
vs.
No.
R. C. SKELLY, INC., ROBERT C.
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judgment
NOTICE OF FILING JUDGMENT
( ) Notice is hereby given that a judgment in the above-captioned matter has been
entered against R. C. Skelly, Inc., Robert C. Skelly and G. Louise Skelly in the
amount of $298,669.47 plus per diem interest of $64.2186 from July 26, 2007
until paid in full, including post judgment per contract, plus costs of suit on the
IDS''` day of , 2007.
( ) A copy of all documents filed with the Prothonotary in support of the within
Judgment is/are enclosed.
s ~'[,~~.a ~ .
P otho otary Civil Div.
By:
If you have any questions concerning the above case, please contact the following party:
Jeffrey L. Goodman, Esquire (I.D. No. 62689)
Attorney for the Plaintiff
20-536-ARO
2 Aldwyn Lane
Villanova PA 19085-1420
Telephone: 610-526-6313
(This Notice is given in accordance with Pa.R.C.P. 236.)
Notice sent:
R. C. Skelly, Inc.
18 East Lisburn Road
Mechanicsburg, PA 17055
Robert C. Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
G. Louise Skelly
29 Pine Tree Drive
Mechanicsburg PA 17055
SHERIFF'S RETURN - REGULAR
CASE NO: 2007-04760 P
COI~ONWEALTH OF PENNSYLVANIA:
""COUNTY OF CUMBERLAND
SOVEREIGN BANK
VS
RC SKELLY INC ET AL
RICHARD SMITH __, Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within CONFESSION OF JUDGMENT
RC SKELLY INC
was served upon
the
DEFENDANT at 1104:00 HOURS, on the 15th day of August 2007
at 18 EAST LISBURN ROAD
MECHANICSBURG, PA 17055
ROBERT C SKELLY, FORMER OWNER
by handing to
a true and attested copy of CONFESSION OF JUDGMENT
COMPLAINT FOR CONFESSION OF JUDGMENT
together with
and at the same time directing His attention to the contents thereof.
Additional Comments
BUSINESS NO LONGER EXISTS.
Sheriff's Costs:
Docketing 18.00
Service 11.52
Affidavit .00
Surcharge 10.00
.00
Bl~b~l [~ ~ 39.52
Sworn and Subscibed to
before me this day
of
So Answers:
~~~ ',~
;~~~
.~
R. Thomas Kline
08/17/2007
SOVEREIGN BANK
By:
puty Sheriff
A.D.
SHERIFF'S RETURN - REGULAR
CASE NO: 2007-04760 P
COMMONWEALTH OF PENNSYLVANIA:
"COUNTY OF CUMBERLAND
SOVEREIGN BANK
VS
RC SKELLY INC ET AL
RICHARD SMITH
Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within CONFESSION OF JUDGMENT
SKELLY ROBERT C
DEFENDANT
was served upon
the
at 1104:00 HOURS, on the 15th day of August 2007
at 18 E LISBURN ROAD
MECHANICSBURG, PA 17055
TILT T'1Tm /'Y ["~TlTT T V
by handing to
a true and attested copy of CONFESSION OF JUDGMENT
COMPLAINT FOR CONFESSION OF JUDGMENT
together with
and at the same time directing His attention to the contents thereof.
Sheriff's Costs:
Docketing 6.00
Service .00
Affidavit .00
Surcharge 10.00
00
g~ ~ g Co 1 (~,,,, 1
Sworn and Subscibed to
before me this day
So Answers:
R. Thomas Kline
os/17/2007
SOVEREIGN BANK
By:
pu y Sheriff
of A.D.
SHERIFF'S RETURN - REGULAR
CASE NO: 2007-04760 P
COMN,~ONWEALTH OF PENNSYLVANIA:
"CO~JNTY OF CUMBERLAND
SOVEREIGN BANK
VS
RC SKELLY INC ET AL
RICHARD SMITH
Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within CONFESSION OF JUDGMENT
SKELLY G LOUISE
was served upon
the
DEFENDANT at 1104:00 HOURS, on the 15th day of August 2007
at 18 EAST LISBURN ROAD
MECHANICSBURG, PA 17055
ROBERT C SKELLY, HUSBAND
by handing to
a true and attested copy of CONFESSION OF JUDGMENT
COMPLAINT FOR CONFESSION OF JUDGMENT
together with
and at the same time directing His attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
Y~xY/a~ ~
6.00
.00
.00
10.00
~~
/ 16.00
Sworn and Subscibed to
before me this
day
of ,
So Answers:
R. Thomas Kline
08/17/2007
SOVEREIGN BANK
By:
eputy Sheriff
A.D.
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA c a ~
~
a s
SOVEREIGN BANK CIVIL ACTION n-~~:
~~
z x"'
.-~
Plaintiff .
~ e".. -- -
~~
vs. No. 07-4760 to ~'
~~; N .
~a ~
::~~.:~-~
-'c ~--
~
R. C. SKELLY, INC., ROBERT C. v ~' N ~
'
SKELLY, and G. LOUISE SKELLY
Defendants Confession of Judg ment
PRAECIPE TO SATISFY
CONFESSION OF JUDGMENT
TO THE PROTHONOTARY:
Kindly mazk the records to show the judgment in the above captioned matter
SAT'SIFIED.
Dated: May 10, 2010
;;
~~~
By:
. ' .Goodman, Esquire
`~' ~ 2 36-CM3
2 Aldwyn Lane
Villanova PA 1908`5-1420
Phone: 610-526-6313
I.D. No. 62689
Attorney for Plaintiff
~.~~ DD filly C~~ulma~
~i~ ~py7
~y aul93s
CERTIFICATE OF SERVICE
I, Douglas G. Miller, Esquire, do hereby certify that I have served a true and correct copy
of the foregoing document upon the persons indicated below either by hand delivery or by first
class United States mail, postage paid in Carlisle, Pennsylvania 17013, on the date set forth
below:
JEFFREY L. GOODMAN, ESQUIRE
2 ALDWYN LANE
VILLANOVA, PA 19085-1420
ROBERT C. SKELLY
G. LOUISE SKELLY
R. C. SKELLY, INC.
29 PINETREE DRIVE
MECHANICSBURG, PA 17055
Date: May 12, 2010
IRWIN & McKNIGHT, P.C.
D as .Miller, Esquire
Supreme ourt I.D. No. 83776
West Pomfret Professional Building
60 West Pomfret Street
Carlisle, Pennsylvania 17013-3222
(717) 249-2353