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HomeMy WebLinkAbout07-6114 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to NO. l iai Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff VS. CIVIL ACTION - LAW NATIONAL HEALTH SYSTEMS, INC., Defendant : CONFESSION OF JUDGMENT CONFESSION OF JUDGMENT I appear for the Defendant, National Health Systems, Inc., pursuant to the authority contained in a Promissory Note, dated January 29, 1999, in the original principal amount of $400,000.00 and Disclosure of Confession of Judgment thereto, executed by the Defendant, National Health Systems, Inc., in favor of the Plaintiff, a true and correct copy of which is attached as Exhibit "A" to the Complaint filed in this action, and confess judgment in favor of the Plaintiff and against the Defendant as follows: Principal Balance: $298,000.00 Interest through 10/10/2007 at the per diem rate of $68.29 $ 27,589.81 Late Charges through 10/10/07 $ 1,143.84 Legal Fees (10%) $ 29,800.00 TOTAL: $356,533.65 Together with interest at the contract rate (currently $68.29 per diem) from October 11, 2007 forward, and for all additional late charges, attorney's fees and costs of suit. BINGAMAN, HESS OBLENTZ & BELL, P.C. By: Kurt A hou e, Esquire Date: IC)\ 1j Attorneys for States Resources Corp. (v7 282424 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff vs. NATIONAL HEALTH SYSTEMS, INC., Defendant NO. CIVIL ACTION - LAW CONFESSION OF JUDGMENT COMPLAINT IN CONFESSION OF JUDGMENT 1. The Plaintiff, States Resources Corp., maintains an office at 4848 South 131st Street, Omaha, NE 68137 ("States"). 2. The Defendant, National Health Systems, Inc., is a Pennsylvania corporation, maintaining an address at 1104 Fernwood Avenue, Floor 4, Camp Hill, PA 17011. 3. On or about January 29, 1999, the Defendant executed and delivered to Harris Savings Bank, a Promissory Note in the original principal amount of $400,000.00, together with a Disclosure for Confession of Judgment thereto (the "Note"). A true and correct copy of the Note is attached hereto as Exhibit "A" and is incorporated herein by reference. 4. Sovereign Bank, successor by merger to Harris Savings Bank, assigned said Note to States by instrument dated June 29, 2007, a true and correct copy of which is included in Exhibit "A". States has not assigned the Note and is the holder thereof. 5. Judgment has not heretofore been entered on the Note in any jurisdiction. 6. The Defendant has defaulted in its ob Note, due to its failure to make payments interest when due on demand. A true and correct of Demand sent to Defendant is attached hereto incorporated herein by reference. The Note judgment by confession against the Defendant at ligations under the of principal and copy of the Notice as Exhibit "B" and permits entry of this time. 7. Judgment is not being entered by confession against a 282424 natural person in connection with a consumer transaction in that the debt evidenced by the Note is for commercial purposes. 8. The Note permits that under the terms of the Note, the Borrower is liable for reasonable attorneys fees of 10% in the event of default and entry of judgment by confession. 9. The Defendant is liable to the Plaintiff under the Note as follows: Principal Balance: Interest through 10/ the per diem rate of Late Charges through Legal Fees (10%) TOTAL: $298,000.00 10/2007 at $68.29 $ 27,589.81 10/10/07 $ 1,143.84 $ 29,800.00 $356,533.65 Together with interest at the contract rate (currently $68.29 per diem) from October 11, 2007 forward, and for all additional late charges, attorney's fees and costs of suit. WHEREFORE, the Plaintiff demands judgment against the Defendant, National Health Systems, Inc., in the total amount of $327,733.65 together with interest at the contract rate (currently $68.29 per diem) from October 11, 2007 forward, all additional late charges, attorneys' fees, and costs of this action. BINGAMAN, HESSOBLENTZ & BELL, P.C. By: Kurt A tho e, Esquire Attorneys for States Resources Corp. Date: 10\ 282424 EXHIBIT "A" 282424 i HARRIS041 ? SAVINGS BANK PROMISSORY NOTE Hererences in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Borrower: National Health Systems, Inc. (TIN: 25-1575431) Lender: Harris Savings Bank 1104 Fernwood Drive 234 N. Second Street Camp Nil, PA 17011 P O Box 1711 Harrisburg, PA 17105 Principal Amount: $400,000.00 Initial Rate: 7.750% Date of Note: January 29, 1999 PROMISE TO PAY. National Health Systems, Inc. ("Borrower") promises to pay to Harris Savings Bank ("Lender"), or order, in lawful money of the United States of America, on demand, the principal amount of Four Hundred Thousand & 00/100 Dollars (;400,000.00) or so much as may be outstanding, together with Interest on the unpaid outstanding principal balance of each advance. Interest shell be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this ban immediately upon Lender's demand. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning March 1,1999, with all subsequent Interest payments to be due on the same day of each month after that. The annual Interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate In writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is Lenders Prime Rate (the "Index"). This is the rate Lender charges, or would charge, on 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrowers request. Borrower understands that Lender may make loans based on other rates as well. The interest rate change will not occur more often than each Day. The Index currently is 7.750% per annum. The Interest rate to be applied to the unpaid principal balance of this Note will be at a rate equal to the Index, resulting In an initial rate of 7.75096 per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrowers obligation to continue to make payments of accrued unpaid interest. Rather, they will reduce the principal balance due. LATE CHARGE. If a regularly scheduled interest payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater. If Lender demands payment of this loan, and Borrower does not pay the loan within 15 days after Lencdler'' de 13 ma d,,eBorrower also will be charged either 5.000% of the sum of the unpaid principal plus accrued unpaid Interest or !10.00, LENDER'S RIGHTS. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower also will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lenders legal expenses whether or not there is a lawsuit, including attomeys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. If not prohibited by applicable law, Borrower also will pay any court costs, In addition to all other sums provided by law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania. If there Is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, the Commonwealth of Pennsylvania. Lender and Borrower hereby waive the right to any jury trial In any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. This Note shall be governed by and construed In accordance with the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in, and hereby assigns, conveys, derws, pledges, and transfers to Lender all Borrower's right, fitle and interest in and to, Borrower's accounts with Lender (whether checking, savings, or some other account), inciualng without limitation all accounts held jointly with someone else and all accounts Borrower may open in the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts, and, at Lenders option, to administratively freeze all such accounts to allow Lender to protect Lenders charge and setoff rights provided on this paragraph. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested orally by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed In writing. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following party or parties are authorized to request advances under the fine of credit until Lender receives from Borrower at Lenders address shown above written notice of revocation of their authority: Wayne M. Pecht, President; and Bruce E. Seagrist, Secretary. Borrower agrees to be liable for all sums either: (a) advanced in accordance with the Instructions of an authorized person or (b) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. Lender will have no obligation to advance funds under this Note if: (a) Borrower or any guarantor is in default under the terms of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (b) Borrower or any guarantor ceases doing business or is insolvent; (c) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's guarantee of this Note or any other loan with Lender; (d) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (e) Lender in good faith deems itself insecure under this Note or any other agreement between Lender and Borrower. ANNUAL PAYOUTIANNUAL REVIEW. The Note is subject to a 30-day payout during each fiscal year at which time the baianoe_must be paid In full for a period of thirty (30) consecutive days. The Loan commitment will expire on December 31, 1999. The Lender will review the Loan annually for renewals and extensions; such renewals and extensions to be granted predicated on the performance of the company and/or individuals and adherence to the Loan Agreement and/or loan policy. 01-29-1999 PROMISSORY NOTE Page 2 Loan No 8877000682 (Continued) SECURITY. All collateral (as herein defined) is security for this Note and any renewals, extensions and modifications thereof, and the payment, performance and discharge of all other present or future Indebtedness, obligations and undertakings (whether individual, joint, several, direct, tonfingent or otherwise) of the Borrower to or for the benefit of Lender, whether arising directly to Lender under this Note or under any other agreement, promissory note or undertakings now existing or hereinafter entered into by Borrower to Lender. The term "CollahW includes all tangible and Intangible property (i) described In any mortgage, assignment or any other security document separately executed by the Borrower in favor of Lender, and (ii) in which Borrower has granted a security Interest to Lender pursuant to this Note. GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. Ali such parties agree that Lender may renew or extend (repeatedly and for any length of tlrne) this loan, or release any party or guarantor or collateral; or impair, fall to realize upon or perfect Lender's security Interest In the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. If any portion of this Note is for any reason determined to be unenforceable, It will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($5W) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER 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 THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: National Hsalth Syatent Inc. Mai;: t By: LENDER: Harris Savin Bank By: 26??- AUVWrIzed OMlcer By: Brute E. Seagrist, seemmy Variable Rate. Line of Credit. LASER PRO, Reg U.S. Pat, 6 T.M. Off., Ver. 3.26a (c)19911 CFI ProStxvices, Inc. All rights reserved. IPA-D20 F3.26 NATIONAL EN C1.OVL1 Allonae Pay to the order of States Resources Corp. without recourse, representations or warranties of any kind. Executed as of this 29`h day of June 2007. Sovereign Bank '--41atjoll 14 j(r*l By: athleen cC y Its: Vice President DROSURE FOR CONFESSION OF JUDGNOT References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item Borrower: National Health Systems, Inc. Lender: Harris Savings Bank 1104 Fernwood Dr. 234 N. Second Street Camp Hill, Pa. 17011 P.O. Box 1711 Harrisburg, PA 17105 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING, THIS TWENTY NINETH DAY OF JANUARY, 1999, A PROMISSORY NOTE FOR 5400,000.00 OBLIGATING THE BORROWER TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST THE CORPORATION IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO THE CORPORATION AND WITHOUT OFFERING THE CORPORATION AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF THE CORPORATION'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 CORPORATION UNDER THE NOTE, 1, IN BEHALF OF THE CORPORATION, AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST THE CORPORATION BY CONFESSI N AS OVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIALS: . Rs! 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 JUDGMENT PROVISION IN THE NOTE 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 SEIZING THE CORPORATION'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. HOWEVER, LENDER MUST PROVIDE NOTICE TO THE CORPORATION UNDER APPLICABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDS S CUTING ON THE JUDGMENT, IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW. INITIALS: app, C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, AND BY PLACING MY INITIALS NEXT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT: INITIALS 1. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. W 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE 0- NOTE TO MY ATTENTION. D. I CERTIFY THAT THE CORPORATION'S ANNUAL INCOME EXCEEDS $10,000.00; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. AFFIANT: Br- .. ""? t'?- -- Wayne . Pecht, President W. P.?'?' s?'? Bruce E. Seagrist, Secretary EXHIBIT "B" 282424 -WW-'10 - 7160 3901 9849 7511 5390 DAVID E. TURNER MARK G. YODER KURT ALTHOUSE LYNNE K. BEUST HARRY D. MCMUNIGAL PATRICK T BARRETT ERIC J. FABRIZIO ELIZABETH D. McmuNIGAL MAHLON J. BOYER THOMAS A. ROTHERMEL' "Also admitted in NJ BINGAMAN HESS ATTORNEYS AT LAW Treeview Corporate Center Suite 100.2 Meridian Boulevard Wyomissing, PA 19610 610.374.8377 Fax 610.376.3105 www.bhcb.com 3 G. CHRISTOPHER EVES KATHLEEN A. B. KOVACH OF COUNSEL R ? PH 1. ALTHOUSE, JR. RETIRED LLEWELLYN R. BINGAMAN 1907-1996 RAYMOND K. HESS 1919-2005 J. WENDELL COBLENTZ 1911-2003 JAMES F BELL 1921-1988 October 10, 2007 VIA FIRST CLASS MAIL and CERTIFIED MAIL; RETURN RECEIPT REQUESTED National Health System, Inc. 1104 Fernwood Drive, A. 4 Camp Hill, PA 17011 Re: Loan Obligations due States Resources Corp. Our File No.: 99095-77 Gentlemen: NOTICE This office represents States Resources Corp. with respect to the above- referenced loan relationship. This letter is a demand for payment of the commercial loan obtained from Harris Savings Bank and now due States Resources Corp., Sovereign Bank, Successor by Merger to Harris Savings Bank. For convenience of reference, hereinafter National Health System, Inc. will be referred to as the "Borrower". Your attention is drawn to the following: Loan Documents A Promissory Note dated January 29, 1999 executed and delivered by National Health System, Inc. in the original principal amount of $400,000.00, evidencing a term loan, executed and delivered by the Borrower to Harris Savings Bank. The Note was assigned to States Resources Corp. For the sake of convenience of reference the note shall be described herein as the "Note". 282326 w1 w.I<i ,ll October 10, 2007 Page 2 The Note provides that States is entitled to accelerate the balance due and demand payment in full on demand. States hereby demands payment in full of the Note and all obligations due thereunder. The obligations due States under the Note are as follows: Principal: $298,000.00 Interest to 10/10/2007: $ 27,589.81 Late Charges $ 1,143.84 Legal Fees to date $ 1.000.00 TOTAL: $327,733.65 Interest accrues at the rate of 8.25%, which is $68.29 per diem. Costs and expenses incurred by States will be added to this account. In addition, the Borrower is responsible for payment of the costs and expenses incurred by the Bank in connection with the collection of these delinquent commercial loan obligations. Costs and expenses incurred by States will be charged to this account. Demand for Payment. Please allow this letter to serve as States' formal demand for immediate payment in full of the commercial loan obligations more fully set forth above. Payment in full is due immediately. The foregoing Note, together with the supporting loan documents, provide that a default under any obligation of payment or performance constitutes a default under all such instruments of obligations of payment or performance to States. In addition, please be advised that States does not now, and in the future will not, agree to waive this notice of demand or any of its rights or remedies with respect to the collection of these delinquent commercial loan obligations except as may be set forth in a written agreement which must be satisfactory in form and content to States and to States' counsel. Please contact the undersigned immediately in order to arrange for payment of these obligations. States considers itself free to exercise any and all of its rights and 282326 October 10, 2007 Page 3 remedies, whether such rights and remedies are set forth in the loan documents or available under applicable law, without further notice unless required by statute. Sincerely yours, BINGAMAN HESS Kurt Althouse KA:chh cc: Robin Oberg - States Resources Corp. 282326 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to NO. 07- (p)lq Ciy; 1 Term Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff vs. NATIONAL HEALTH SYSTEMS, INC., Defendant STATE OF NEBRASKA ss. COUNTY OF 04-i CIVIL ACTION - LAW CONFESSION OF JUDGMENT ROBIN OBERG, being duly sworn according to law, deposes and says that he is a duly authorized officer of States Resources Corp., Plaintiff herein, and that he is authorized to execute Affidavits on Plaintiff's behalf, and that the facts set forth on the foregoing Complaint are true and correct to the best of his knowledge, information and be _ Robin d'berg ' States Resources Sworn to and subscribed before me this Q day of (7ctCjQp >U , 2007. Oat 4tyLVJ-'-- Notary Public GENERAL NOTARY - State Of I nsin DONNA BUTLER -46My Comm. Exp. Sept. 24,20 282424 AP BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Attorneys for Plaintiff Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to NO. 0,7- tp)Iq T l?lvi? I?rM Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff VS. CIVIL ACTION - LAW NATIONAL HEALTH SYSTEMS, INC., Defendant CONFESSION OF JUDGMENT CERTIFICATION OF ADDRESSES COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF BERKS Kurt Althouse, Esquire, being duly sworn according to law, deposes and says that to the best of his knowledge, information and belief, the addresses of the judgment creditor and the judgment debtors in the above-captioned case are as follows: rare; tnr States Resources Corp. 4848 South 131St Street Omaha, NE 68137 Debtor: National Health Systems, Inc. 1104 Fernwood Avenue, Floor 4 Camp Hill, 2a 11 ?LfNU Kurt Althouse, Esquire Sworn to and subscribed before me this 1S TL day of QL.b er 2007. Notary Public 282424 .0 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Attorneys for Plaintiff Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to NO. b7.. (pllq !? Civil (erwt Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff vs. CIVIL ACTION - LAW NATIONAL HEALTH SYSTEMS, INC., Defendant CONFESSION OF JUDGMENT AFFIDAVIT OF EARNINGS ROBIN OBERG, being duly sworn according to law, deposes and says that he is a duly authorized officer of States Resources Corp., Plaintiff herein, and that he makes this Affidavit on its behalf, being authorized to do so, and as such states that to the best of his knowledge, information and belief, at the time of the signing of the instrument containin the provision for judgment by confession, the Defenda Natio al Health Systems, Inc., earned more than $10,000 per year xonin unerg '-' States Resources p. Sworn to and subscribed before me this day of Onyday` , 2 0 0 7 . GENEHAI. S0 D NNABI n M„enrim Es.W24,Z0M 00rilo, Notary Public 282424 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Identification No. 35238 Treeview Corporate Center 2 Meridian Boulevard, Ste. 100 Wyomissing, PA 19610 (610) 374-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESOURCES, CORP., assignee to NO. tolfy Civi l (ptrw, Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff vs. NATIONAL HEALTH SYSTEMS, INC., CIVIL ACTION - LAW Defendant CONFESSION OF JUDGMENT AFFIDAVIT OF COMMERCIAL TRANSACTION I hereby certify that I am counsel for States Resources Corp., the Plaintiff herein, and hereby certify that judgment is not being entered against a natural person in a consumer transaction. BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: /r?Vl Kurt Althouse, Esquire Sworn to and subscribed , 2 0 0 7 . before me this _ps- day of otary Public 282424 s n FTI Ol ; L ^; Of IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL DIVISION Date: 0&b[W1_ 1 -1 , 2007 National Health Systems, Inc. 1104 Fernwood Drive Camp Hill, PA 17011 RE: States Resources Corp., assignee of Sovereign Bank, successor by merger to Harris Savings Bank No. 07- (an q Cumberland County C.C.P. Dear Sir or Madam: States Resources Corp., assignee of Sovereign Bank, successor by merger to Harris Savings Bank, has entered judgment by confession against National Health Systems, Inc. in the Court of Common Pleas of Cumberland County, Pennsylvania, in the total amount of $356,533.65 plus interest at the contract :rate (currently $68.29 per diem) from October 11, 2007 forward and for all additional late charges, attorney's fees and costs of this proceeding. This judgment was entered to No. p'j- 1p114 ,Civil Term Cumberland County Court of Common Pleas. Enclosed please find true and correct copies of the following documents filed by States Resources Corp. in the subject action: 1. Complaint in Confession of Judgment; 2. Confession of Judgment; 3. Certification of Addresses; 4. Affidavit of Earnings; and 5. Affidavit of Commercial Transaction Cumberland County Prothonotary By: is 'P49;?i4-y- Prothonot&ry If you have any questions regarding this Notice, please contact the filing party: NAME: Kurt Althouse, Esquire ADDRESS: Bingaman, Hess, Coblentz & Bell, P.C. Treeview Corporate Center, Suite 100 2 Meridian Blvd., Wyomissing, PA 19610 TELEPHONE: 610-374-8377 282424 SHERIFF'S RETURN - REGULAR CASE NO: 2007-06114 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND STATES RESOURCES CORP ET AL VS NATIONAL HEALTH SYSTEMS INC SHARON LANTZ , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE UNDER RULE 2958.1 was served upon NATIONAL HEALTH SYSTEMS INC the DEFENDANT , at 1605:00 HOURS, on the 13th day of December , 2007 at 1104 FERNWOOD AVE CAMP HILL, PA 17011 by handing to ROSE FULTON, ADMIN ASST ADULT IN CHARGE a true and attested copy of NOTICE UNDER RULE 2958.1 JUDGMENT & EXECUTION THEREON together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 15.36 Affidavit 00 Surcharge 10.00 R. Thomas Kline -, .00 7,? ? 43.36 12/14/2007 BINGAMAN HESS COBLENT Sworn and Subscibed to By: before me this day Deputy Sheriff Of A. D. ?? 6.4dr7-- BINGAMAN, HESS, COBLENTZ & BELL, P.C. B? Kurt ALt.house, Esquire E i t ,n No. 252-_ '1evj ??- Grate Cent e°?eI BI c) je_7,arC , Ste . 0o Wms PA 19610 ( 10 3-74-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STATES RESO'7RCES, CORP., assignee to S-,ve-,-eign Bank, successor by merger to H,rr?s Sa-ri;-,crs Bank, Plaintiff -s . NATIONA- HEALTH SYSTEMS, INC., Defendant PROOF OF SERVICE JNTY OF PERKS NWFF,L . H F PEN NA. S . NO. 07-6114 Civil Term CIVIL, ACTION - LAW CONFESSION OF JL"DGMENT L to-Maria LenF,a.rt , do depose and say that ` rue and > z?ct ?;r of Plaintif f' s First Set of Written Interi-ogatories Addr,- ?ssec. t- Defendant, National Health Systems, Inc. and P,'ai_nt-iffFirst Request for Production of Documents Addressed r Fr?ri?aa?It , National Health Systems, Inc . was served via U.S. ?rst Class; mall and Certified Mail; Return Receipt Requested on Apra 30, 2008 upon the following: NationaL Health Systems, Inc. 1104 Fernwood Drive C` a rYlp H i 11 , PA 17 011 Cruz'ita-Maria Lenhart sworn to ar.d subscribed before me t}:??iJs ist , day of May, 2008. COMMONWEALTH OF PENNSYLVANIA Notarial Seal Malissa N. Young, Notary Public Spring Twp., arks County MY Commission Firms Aug.13, 2009 Member, Pennsvlv=nia Associptic;r, o! Notaries !'•.. `: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PRAECIPE FOR WRIT OF EXECUTION STATES RESOURCES CORP., assignee to Sovereign Bank, successor by merger to Harris Savings Bank, o Plaintiff s ? Q vs. ya = NATIONAL HEALTH SYSTEMS, INC., c?. 1104 Fernwopd Dr Defendant 1 ao" Hill . PJ? 17oll ` Pge 1dl 1 M and SOVEREIGN BANK, PNC BANK and M&T BANK, '3 P 6;J10p 1'1011 Garnishees TO THE PROTHONOTARY OF THE SAID COURT: :® Confessed Judgment :0 Other :File No. 07-6114 :Amount Due: $356,533.65 :Interest from 10/11/07 forward at the contract rate ($68.29 per diem) :Atty's Comm :Costs The undersigned hereby certifies that the below does not arise out of a retail installment sale, contract, or account based on a confession of judgment, but if it does, it is based on the appropriate original proceeding filed pursuant to Act 7 of 1966 as amended; and for real property pursuant to Act 6 of 1974 as amended. Issue writ of execution in the above matter to the Sheriff of CUMBERLAND COUNTY, for debt, interest and costs, upon the following described property of the defendant: PRAECIPE FOR ATTACM1ENT EXECUTION Issue writ of attachment to the Sheriff of CUMBERLAND COUNTY, for debt, interest and costs, as above, directing attachment against the above-named garnishees for the following property (if real estate, supply six copies of the description; supply four copies of lengthy personalty list) LEVY ON ALL ACCOUNTS OF THE DEFENDANT IN THE POSSESSION OF SOVEREIGN BANK, PNC BANK AND M&T BANK and all other property of the defendant in the possession, custody or control of the said garnishee. ? (Indicate) Index this writ against the garnishee(s) as a lis pendens against real estate of the defendant described in the attached exhib' Date: June 25, 2008 Signature: Print Name: Kurt A thou e, Esquire Address: Treeview Corporate Center 2 Meridian Blvd., Suite 100 Wyomissing, PA 19610 Attorney for: Plaintiff Telephone: 610-374-8377 Supreme Court ID No. 35238 294506 v--s ? AT S .,... -203 f .o . WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-6114 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due STATES RESOURCES CORP., assignee to SOVEREIGN BANK, successor by merger to HARRIS SAVINGS BANK, Plaintiff (s) From NATIONAL HEALTH SYSTEMS, INC., 1104 Fernwood Drive, Camp Hill, PA 17011 (1) You are directed to levy upon the property of the defendant (s)and to sell (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: SOVEREIGN BANK, 3307 Trindle Road #300, Camp Hill, PA 17011 PNC BANK, 4242 Carlisle Pike #151, Camp Hill, PA 17011 M&T BANK, 3805 Trindle Road, Camp Hill, PA 17011 Levy on all accounts of the defendant in the possession of Sovereign Bank, PNC Bank and M&T Bank and all other property of the defendant in the possession, custody or control of the said garnishee(s). and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $356,533.65 L.L. $.50 Interest from 10/11/07 forward at the contract rate ($68.29 per diem) Atty's Comm % Atty Paid $97.86 Plaintiff Paid Date: 6/27/08 (Seal) Due Prothy $2.00 Other Costs 14J144, Ads C s R. Lo ot By: Deputy REQUESTING PARTY: Name KURT ALTHOUSE, ESQUIRE Address: TREEVIEW CORPORATE CENTER 2 MERIDIAN BLVD., SUITE 100 WYOMISSING, PA 19610 Attorney for: PLAINTIFF Telephone: 610-374-8377 Supreme Court ID No. 35238 BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Attorney Identification No. 35238 Attorneys for Plaintiff Treeview Corporate Center 2 Meridian Boulevard, Suite 100 Wyomissing, PA 19610 (610) 374-8377 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION - LAW STATES RESOURCES CORP., assignee NO. 07-6114 to Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff VS. NATIONAL HEALTH SYSTEMS, INC., ACTION IN CONFESSION Defendant OF JUDGMENT and SOVEREIGN BANK, PNC BANK and M&T BANK, Garnishees PRAECIPE TO DISSOLVE GARNISHMENT AS TO SOVEREIGN BANK ONLY TO THE PROTHONOTARY: Kindly dissolve the garnishment against SOVEREIGN BANK ONLY in the above-referenced docket number. BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: A Kurt Althouse, Esquire Attorneys for Plaintiff Date: July 11, 2008 CJ ? ? r ? 4 SHERIFF'S RETURN - GARNISHEE CASE NO: 2007-06114 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND STATES RESOURCES CORP ET AL VS NATIONAL HEALTH SYSTEMS INC And now MARK CONKLIN ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0013:50 Hours, on the 3rd day of July 2008, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT NATIONAL HEALTH SYSTEMS INC hands, possession, or control of the within named Garnishee SOVEREIGN BANK 17 W HIGH ST , in the CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to JENNIFER NIERATKO (CUSTOMER SVC) personally three copies of interogatories together with 3 and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . true and made Sheriff's Costs: S' Docketing .00r?' Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 . 0 0 j,/ 7/op 7'" 07/07/2008 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D 4 SHERIFF'S RETURN - GARNISHEE CASE NO: 2007-06114 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND STATES RESOURCES CORP ET AL VS NATIONAL HEALTH SYSTEMS INC And now MARK CONKLIN ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0013:50 Hours, on the 3rd day of July , 2008, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT NATIONAL HEALTH SYSTEMS INC hands, possession, or control of the within named Garnishee PNC BANK 105 NOBLE BLVD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to DIANA STOUFFER (SALES CONSULTANT personally three copies of interogatories together with 3 and attested copies of the within WRIT OF EXECUTION the contents there of known to Her , in the true and made Sheriff's Costs: So answers: -"` Docketing .00 Service .00 Affidavit .00 R. TYom s Kline Surcharge .00 Sheriff of Cumberland County .00 . 0 0 ?g.. 07/07/2008 Sworn and Subscribed to before me this day of By Deput?f Sheriff A.D • SHERIFF'S RETURN - GARNISHEE CASE NO: 2007-06114 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND STATES RESOURCES CORP ET AL VS NATIONAL HEALTH SYSTEMS INC And now MARK CONKLIN ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0013:55 Hours, on the 3rd day of July 2008, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , NATIONAL HEALTH SYSTEMS INC hands, possession, or control of the within named Garnishee M & T BANK 812 1/2 W HIGH ST CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to KATHY ZENGERLE (BRANCH MANAGER) personally three copies of interogatories together with and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . , in the true and made Sheriff's Costs: S Docketing .00 Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .0000 ? 7?/SIbP. 07/07/2008 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D i R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned STAYED, DUE TO BANKRUPTCY. Sheriff's Costs: Advance Costs: 225.00 Sheriff's Costs: 196.35 Docketing $ 18.00 28.65 Poundage 3.85 Advertising Law Libra .50 Prothonotary 2.00 Refunded to Atty on 07/15/08 Milage 15.00 Surcharge 70.00 Levy 60.00 Post Pone Sale Garnishee 27.00 Postage I I oe TOTAL 196.35 ? So Answers; By0 ?alu-, ka ai?4?7 WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-6114 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due STATES RESOURCES CORP., assignee to SOVEREIGN BANK, successor by merger to HARRIS SAVINGS BANK, Plaintiff (s) From NATIONAL HEALTH SYSTEMS, INC., 1104 Fernwood Drive, Camp Hill, PA 17011 (1) You are directed to levy upon the property of the defendant (s)and to sell (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: SOVEREIGN BANK, 3307 Trindle Road #300, Camp Hill, PA 17011 PNC BANK, 4242 Carlisle Pike #151, Camp Hill, PA 17011 M&T BANK, 3805 Trindle Road, Camp Hill, PA 17011 Levy on all accounts of the defendant in the possession of Sovereign Bank, PNC Bank and M&T Bank and all other property of the defendant in the possession, custody or control of the said garnishee(s). and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $356,533.65 L.L. $.50 Interest from 10/11/07 forward at the contract rate ($68.29 per diem) Atty's Comm % Atty Paid $97.86 Plaintiff Paid Date: 6/27/08 Due Prothy $2.00 Other Costs AIA.kn &A CAS R. Long, o (Seal) By: Deputy REQUESTING PARTY: Name KURT ALTHOUSE, ESQUIRE Address: TREEVIEW CORPORATE CENTER 2 MERIDIAN BLVD., SUITE 100 WYOMISSING, PA 19610 Attorney for: PLAINTIFF SIRLIN GALLOGLY & LESSER, P.C. By: Jon C. Sirlin, Esquire Identification No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (215) 864-9700 Attorney for Garnishee STATES RESOURCES CORP., ASSIGNEE TO : COURT OF COMMON PLEAS SOVEREIGN BANK, SUCCESSOR BY MERGER : COUNTY OF CUMBERLAND TO HARRIS SAVINGS BANK VS. NATIONAL HEALTH SYSTEMS, INC. NO. 07-6114 and PNC BANK, NATIONAL ASSOCIATION, GARNISHEE ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter my appearance on behalf of the above-captioned matter. Date: ishee, in i SIRLIN GALLOGLY & LESSER, P.C. By Jon C. Sirlin, Esquire Ide tification No.: 17498 15 9 Walnut Street, Suite 600 Ph' adelphia, PA 19102 (21 ) 864-9700 Att rney for Garnishee ST TES RESOURCES CORP., ASSIGNEE TO COURT OF COMMON PLEAS SO EREIGN BANK, SUCCESSOR BY MERGER : COUNTY OF CUMBERLAND TO HARRIS SAVINGS BANK vs. NATIONAL HEALTH SYSTEMS, INC. NO. 07-6114 1 and PNC BANK, NATIONAL ASSOCIATION, GARNISHEE ANSWERS TO INTERROGATORIES IN ATTACHMENT TO STATES RESOURCES CORP., ASSIGNEE TO SOVEREIGN BANK, SUCCESSOR BY M RGER TO HARRIS SAVINGS BANK, Plaintiff 1. No. 2. Account titled National Health Systems, Inc. has been restricted pursuant to this Writ. Pur uant to the terms and conditions of the deposit agreement between the bank and the depositor, the b claims a priority lien in, and a right of set-off against the account consisting of $100.00 Legal Pro essing Charge, and allowing for the general monetary exemption under 42 Pa.C.S. § 8123 there is a b4lance of $64,885.30. In addition, pursuant to 42 Pa.C.S.A. Section 2503, garnishee attorneys fees i are authorized in an amount to be determined and deducted from the attached funds. 3.- 6. No. ?1 7. (Q) If you are a bank or other financial institution, at the time you were served or at a y subsequent time did the defendant have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law? (A) No. 1 8. (Q) If you are a bank or other financial institution, at the time you were served or at y subsequent time did the defendant have funds on deposit in an account in which the funds on eposit, not including any otherwise exempt funds, did not exceed the amount of the general moi etary exemption under 42 Pa.C.S. § 8123? (A) No. Aug 2)08 4:36PM PNC BANK X12-762-6178 No, 3348 P. 1/5 an08' VERIFICATION The undersigned hereby verifies that I am an authorized representative of PNC Bank, N.A.; that the statements made in the foregoing Answers to Interrogatories are true and correct to the best of my knowledge, information and belief and that these statements are made subject to the penalties of UP& C.S. x4904, relating to unsworn falsification to authorities. Re-"-Stat*s -R'O" T -Corp,, Assignee to Sovereign Bank, Successor Harris Savings Bank vs: National Health Systems, Inc. Name C 0? Position DATE: O L/ip Lit-233946,1 t7 n _ - ? -? st tif[ 7 1 r -j .a yy r t CD W k . BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Attorney Identification No. 35238 Attorneys for Plaintiff Treeview Corporate Center 2 Meridian Boulevard, Suite 100 Wyomissing, PA 19610 (610) 374-8377 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION - LAW STATES RESOURCES CORP., assignee to Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff VS. NATIONAL HEALTH SYSTEMS, INC., Defendant and SOVEREIGN BANK, PNC BANK and M&T BANK, NO. 07-6114 ACTION IN CONFESSION OF JUDGMENT Garnishees &>SW EAS INTERROGATORIES IN ATTACHMENT TO: PNC Bank 4242 Carlisle Pike #151 Camp Hill, PA 717-730-2200 You are required to file answers `o the following Interrogatories within twenty (20) days after service upon you. Failure to do so may result in judgment against you. 1. At the time you were served or at any subsequent time did you owe the defendant any money or were you liable to them on any negotiable or other written instrument, or did they claim that you owed them any money or were liable to them for any reason? \,I es _ ? ac?*4 ?-z OTC 2. At the time you were servedl or at any subsequent time was there in your possession, custody or control or in the joint na 294506 possession, custody or control of yourself and one or more persons any property of any nature owned solely or in part by the defendants? 3. At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or in part by the defendants or in which the defendants held or claimed any interest? (10 4. At the time you were served or at any subsequent time did you hold as fiduciary, escrow holder, escrow agent or otherwise any property in which the defendants had any interest? ^ Y vV 5. At any time before or after you were served did the defendants transfer or deliver any property to you or to any person or place pursuant to your direction or consent and what was the consideration therefor? 6. At any time after you were served did you pay, transfer or deliver any money or property to the defendants or o any person or place pursuant to his direction or otherwise Fischarge any claim of the defendants against you? ?F 7 , Z .? 7. If your answers to any of the foregoing questions is ?C in+the affirmative, state account numbers and balances. ?;.A 0. If your answers to any of the foregoing questions is in the Offirmative and although you are escrow holder or escrow agent, the funds are on deposit at another institution, n/,kJ r 294506 I • financial or otherwise, state the name and address of this institution and the value, amount, and location of the deposit. BINGAMAN, HESS, COBLENTZ & BELL, P.C. By. K 4 L- Kurt Althouse, Esquire Attorneys for Plaintiff Date: June 25, 2008 (AUG 13 2008 TALIA s. PALMER M&T BANK vl $ T BANK LEGAL DOCUMENT pR P.0• BOX 844 CESSING BUFFALO 0 ' NY 14240 294506 T ?? ` x Ge? {'t 1 r? 5'` 7-c"). r BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: Kurt Althouse, Esquire Attorney Identification No. 35238 Treeview Corporate Center 2 Meridian Boulevard, Suite 100 Wyomissing, PA 19610 (610) 374-8377 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION - LAW STATES RESOURCES CORP., assignee to Sovereign Bank, successor by merger to Harris Savings Bank, Plaintiff vs. NATIONAL HEALTH SYSTEMS, INC., Defendant and SOVEREIGN BANK, PNC BANK and M&T BANK, Garnishees NO. 07-6114 ACTION IN CONFESSION OF JUDGMENT PRAECIPE FOR ENTRY OF JUDGMENT AGAINST GARNISHEE PNC BANK TO THE PROTHONOTARY: Kindly enter Judgment in favor of Plaintiff, States Resources Corp., assignee to Sovereign Bank, successor by merger to Harris Savings Bank and against the Garnishee, PNC Bank, in the amount of $64,885.30, as admitted to in Answers to Interrogatories attached hereto as Exhibit A. Service was made on the Garnishee on July 3, 2008 by the Cumberland County Sheriff's Office. Assess damages in the amount of $64,885.30, as stated in the Answers to Interrogatories. BINGAMAN, HESS, COBLENTZ & BELL, P.C. By: I?C Kurt A thouse, Esquire Date: 4 6 S Attorneys for Plaintiff 297184 • IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: NATIONAL HEALTH SYSTEMS, INC. CASE NO. 1:08-bk-02507-MDF Debtor STATES RESOURCES CORP., Movant V. CHAPTER 11 NATIONAL HEALTH SYSTEMS, INC. Debtor ORDER FOR DISMISSAL AND NOW, upon consideration of the Motion for Dismissal of Chapter 11 Case, there being good and sufficient cause shown, and the Debtor and the secured creditors having consented to dismissal of the case, it is therefore, ORDERED AND DECREED that the Chapter 11 case is dismissed. By die Cow-t, i is (JDK) This document is electronically signed and filed on the same date. Dated: August 18, 2008 Case 1:08-bk-02507-MDF Doc 25 Filed 08/18108 Entered 08/19/08 07:06:28 Desc Main Document Page 1 of 1 i t" SIItLIN GALLOGLY & LESSER, P.C. By Jon C. Sirlin, Esquire Identification No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (21 ) 864-9700 Att rnev for Garnishee STATES RESOURCES CORP., ASSIGNEE TO COURT OF COMMON PLEAS SOVEREIGN BANK, SUCCESSOR BY MERGER : COUNTY OF CUMBERLAND TO HARRIS SAVINGS BANK vs. NATIONAL HEALTH SYSTEMS, INC. : NO. 07-6114 1 and BANK, NATIONAL ASSOCIATION, ANSWERS TO INTERROGATORIES IN ATTACHMENT STATES RESOURCES CORP., ASSIGNEE TO SOVEREIGN BANK, SUCCESSOR BY ER TO HARRIS SAVINGS BANK, Plaintiff 1. No. 2. Account titled National Health Systems, Inc. has been restricted pursuant to this Writ. Pu uant to the terms and conditions of the deposit agreement between the bank and the depositor, the bank claims a priority lien in, and a right of set-off against the account consisting of $100.00 Legal Processing Charge, and allowing for the general monetary exemption under 42 Pa.C.S. § 8123 there is a b4lance of $64,885.30. In addition, pursuant to 42 Pa.C.S.A. Section 2503, garnishee attorneys fees are authorized in an amount to be determined and deducted from the attached funds. 3. - 6. No. 7. (Q) If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which funds are de sited electronically on a recurring basis and which are identified as being funds that upon de sit are exempt from execution, levy or attachment under Pennsylvania or federal law? (A) No. 8. (Q) If you are a bank or other financial institution, at the time you were served or at y subsequent time did the defendant have funds on deposit in an account in which the funds on deposit, not including any otherwise exempt funds, did not exceed the amount of the general exemption under 42 Pa.C.S. § 8123? ?, I,t "A << '" I (A) No. JON C. S Attorney A ?. 2848 4 : 3 6 P M PNC BANK 412-762-6178 No. 3348 P. 1/5 ?yr VERIFICATION The undersigned hereby verifies that I am an authorized representative of PNC Bank, N.A.; that the statements made in the foregoing Answers to Interrogatories are true and correct to the best of my knowledge, information and belief and that these statements are made subject to the penalties of Wa. C.S. a4904, relating to unsworn falsification to authorities. -Re:' -States Resourm-Corp., Assignee to Sovereign. Bank, Successor' Harris Savings Bank vs: National Uealth Systems, Inc. n ?4'A Name /' r.4 { ey rosition DATE: p 1 /?? Lit 233946.1 rn --- ` 93 ? CD r IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION Dated: 2008 PNC Bank, National Association c/o Jon C. Sirlin, Esquire 1529 Walnut Street, Suite 6000 Philadelphia, PA 19102 RE: States Resources Corp., assignee to Sovereign Bank, successor by merger to Harris Savings Bank vs. National Health Systems, Inc. and PNC Bank, Garnishee No. 07-6114, Cumberland County Court of Common Pleas Dear Garnishee: States Resources Corp., assignee to Sovereign Bank, successor by merger to Harris Savings, this date has entered judgment against PNC Bank in the Court of Common Pleas of Cumberland County, Pennsylvania, in the amount of $64,885.30. This judgment was entered to No. p7-1,1/!J Cumberland County Court of Common Pleas. rot o ary Cumberland C unty, Pennsylvania By: -Dap;!? Prothonotary 297184 SIRLIN GALLOGLY & LESSER, P.C By: Jon C. Sirlin, Esquire, I.D. No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (215) 864-9700 Attorney for Garnishee STATES RESOURCES CORP., ASSIGNEE TO SOVEREIGN BANK, SUCCESSOR BY MERGER TO HARRIS SAVINGS BANK COURT OF COMMON PLEAS COUNTY OF CUMBERLAND vs. NATIONAL HEALTH SYSTEMS, INC. NO. 07-6114 and PNC BANK, NATIONAL ASSOCIATION, GARNISHEE ATTORNEY I.D.#17498 BILL OF COSTS OF GARNISHEE. PNC BANK NATIONAL ASSOCIATION Garnishee, PNC Bank, National Association, hereby bills the following costs to the fund attached, and will be satisfied therefrom as authorized by 42 Pa.C.S.A. Section 2503: Garnishee's fee pursuant to 42 Pa. C.S.A Section 2503: Notary Charges: Entry of Appearance: Answers to Interrogatories: Order to Discontinue or Satisf Other: \\ 300.00 0.00 0.00 0.00 0.00 0.00 AL: JON Costs are hereby taxed in the amount of $ for this - 1144, % day 9f , 2008. L BY: c ?"1 cz? r V 01/19/2010 15:28 FAX 2158649669 SGSL STATES RESOURCES CORP., ASSIGNEE COURT OF COMMON PLEAS TO SOVEREIGN BANK, SUCCESSOR BY : COUNTY OF CUMBERLAND MERGER TO HARRIS SAVINGS BANK VS. NATIONAL HEALTH SYSTEMS, INC, ; NO, 07-6114 and PNC BANK, NATIONAL ASSOCIATION, _ 3s a 3 GAN SHEE : ATTORNEY I.D.# ORDE tab SATISFY JUDGMENT AGAINST G&WSHEE TO THE PROTHONOTARY: la 003/003 Kindly mark the judgment entered against the Garnishee, PNC Bank, National Association, in the above matter, satisfied upon payment of your costs only. KUR AL USE Attorney for Plaintiff c? Dated: i /tea ?aiv m © i v r e ?+' 38vrc? ?a37a8?,