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HomeMy WebLinkAbout07-6126IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, Plaintiff, No. 07- 101,214 Civil Term VS. Jeffrey C. Taylor and Valerie C. Taylor, husband and wife, Defendants Action in Mortgage Foreclosure To: Jeffrey C. Taylor and Valerie C. Taylor, Defendants: NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone Number: 717-249-3166 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. 07- Civil Term Plaintiff, VS. Action in Mortgage Foreclosure Jeffrey C. Taylor and Valerie C. Taylor, husband and wife, Defendants. To: Jeffrey C. Taylor and Valerie C. Taylor, Defendants: AVISO USTED HA SIDO DEMANDADO/A EN LA CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los proximos veinte (20) dias despues de la notificacion de esta Dernanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falls de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO WMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CALIFICAN. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone Number: 717-249-3166 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. 07- 4,/,ZL Civil Term Plaintiff, VS. Action in Mortgage Foreclosure Jeffrey C. Taylor and Valerie C. Taylor, husband and wife, Defendants, COMPLAINT IN MORTGAGE FORECLOSURE day of , , 2007, comes Plaintiff, Adams AND NOW, this / 6yok County National Bank, by its attorneys, Puhl, Eastman & Thrasher, who brings this action in mortgage foreclosure against Jeffrey C. Taylor and Valerie C. Taylor, Defendants, whereof the following is a statement: 1. Plaintiff, Adams County National Bank, is a national banking corporation organized and existing under the laws of Congress relating to national banks, with its main office at 16 Lincoln Square, Borough of Gettysburg, Adams County, Pennsylvania 17325. 2. Defendant, Jeffrey C. Taylor, is an adult individual whose last known mailing address is P.O. Box 131, Grantham, PA 17027. 3. Defendant, Valerie C. Taylor, is an adult individual whose last known address is 334 East Meadow Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055. 4. On March 14, 2003, Defendants made, executed, and delivered a mortgage upon real estate hereinafter described to Plaintiff as Mortgagee, which mortgage is recorded in the Office of the Recorder of Deeds of Adams County, Pennsylvania in Record Book 1801 at page 3460. A copy of said mortgage is attached hereto and marked as Exhibit "A." Said mortgage is incorporated herein by reference. 5. The mortgage secures a note executed by Defendants' corporation dated March 14, 2003, in the amount of $123,750.00, payable to Plaintiff in monthly installments with interest adjusted as per terms of the note, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference. 6. There has been no assignment of said mortgage. 7. The real estate subject to the mortgage is described as follows: ALL THAT CERTAIN tract of land situate in Upper Allen Township, County of Cumberland and Commonwealth of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at an iron pin at the point of intersection of the westerly right-of-way line of Reynolds Street (50' wide) and the southerly right-of-way line of Cumberland Parkway (relocated) (60' wide); thence along said right-of-way line of Reynolds Street, South 09 degrees 29 minutes 38 seconds East, a distance of 166.65 feet to an iron pin at line of lands now or formerly of George Von Nieda; thence along said lands now or formerly of George Von Nieda, South 84 degrees 42 minutes 22 seconds West, a distance of 110.35 feet to a point; thence continuing along same, South 83 degrees 32 minutes 19 seconds West, a distance of 141.44 feet to a point; thence South 83 degrees 28 minutes 42 seconds West, a distance of 219.30 feet to a point of intersection with the southern line of a 60' wide right-of-way for Relocated Cumberland Parkway and Lot No. 3; then along same by a curve to the left having a radius of 430.00 feet, and arc length of 253.72 feet to a point; thence continuing along the southern right-of-way line of Cumberland Parkway (relocated), North 49 degrees 40 minutes 14 seconds East, a distance of 22.21 feet to a point; thence continuing along same by a curve to the right having a radius of 470.00 feet, an arc distance of 252.94 feet to an iron pin, the place of BEGINNING. BEING Lot 3 on Preliminary/Final Subdivision Plan for AMP Incorporated, dated November 16, 1993, recorded March 10, 1995 in Cumberland County Plan Book 69, Page 115. 8. The present owners of the real estate subject to the mortgage are Defendants. 9. Said mortgage is in default because the payments of principal and interest, which have become due and payable on July 14, 2007, and on the 14th day of each month thereafter, remain due and unpaid. By the terms of said mortgage and at the option of Plaintiff, the whole of the said mortgage debt and interest is immediately become due and payable. 10. By reason of the aforesaid default, the following amounts are due in accordance with the terms of the mortgage: (a) Balance of unpaid principal $55,364.32 (b) Interest from 07/14/07 to 10/12/07 $ 1,092.12 (Plus $12.13 per diem thereafter) (c) Late charges to 10/12/07 $ 569.43 (Plus $189.81 per month thereafter) (d) Other fees & fees from prior foreclosure action $ 2,246.85 (e) Attorney's commissions $4,445.46 TOTAL $639718.18 11. The attorney's commissions set forth above are in conformity with the mortgage documents and Pennsylvania law and will be collected in the event of a third party purchaser at Sheriffs Sale. 12. The aforesaid mortgage is not a residential mortgage and does not come within the provisions of Act 91 of 1983 and Act 6 of 1974, as amended. WHEREFORE, Plaintiff demands IN REM judgment in mortgage foreclosure for the sum of $63,718.18, plus interest from October 13, 2007, at a per diem of $12.13, additional late charges, costs of suit, and other charges collectible under the terms of the mortgage; for the foreclosure and sale of the mortgaged property; and for other relief as the Court deems appropriate. Respectfully submitted: PUHL, EASTMAN & THRASHER By: Edward G. Puhl, Esquire Attorney ID# 55709 Attorney for Plaintiff 220 Baltimore Street Gettysburg, PA 17325 (717) 334-2159 i IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. 07- Civil Term Plaintiff, VS. Action in Mortgage Foreclosure Jeffrey C. Taylor and Valerie C. Taylor, husband and wife, Defendants. VERIFICATION TO COMPLAINT IN MORTGAGE FORECLOSURE I, Susan M. Saylor, do hereby state that I am Assistant Vice President, Collections, of Adams County National Bank, that I am authorized to make this verification, and that the facts set forth in the foregoing Complaint in Mortgage Foreclosure are true and correct to the best of my knowledge, information and belief. I understand that this statement is being made subject to the penalties of 18 Pa.C.S. §4904, relating to unworn falsification to authorities. Dated: 4/. Susan M. Saylor Assistant Vice President, ollections Adams County National Bank C : , . ?IP0..ER D f; OF DEEDS 03 NAR 21 PA' 12 49 Commonwealth of Pennsylvania Space Above This Line For Recording Data OPEN-END MORTGAGE This Mortgage secures future advances 1. DATE AND PARTIES.1be date of this Mortgage (Security Instrument) is -MARCH .........14.. 2003, and the parties, their addresses and tax identification numbers, if required, are as follows: MORTGAGOR: JEFFREY C TAYLOR VALERIE C TAYLOR 334 EAST MEADOW DRIVE MECHANICSBURG PA 17055 EIf checked, refer to the attached Addendum incorporated herein, for additional Mortgagors, their signatures and acknowledgments. LENDER: ADAMS COUNTY NATIONAL BANK PO BOX 3129 GETTYSBURG PA 17325 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (defined below) and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains, conveys and mortgages to Lender the following described property: Situated in the Township/Borough of Upper Allen more particularly described in the deed(s) to the Mortgagor(s), recorded in the office of the Recorder of said County in Deed Book 119 at page 561 (insert additional deed or record book and page reference, if applicable) The descriptions contained in such deed(s) are by this reference thereto incorporated herein and made a part hereof. The property is located in ....... CUMBERLAND .. ........................ at .................................... (County) .9.0..CUMBERLAND..PARKWAY .............. . .... MECHAN.ICSBURG ....... , Pennsylvania ...1.7.055 ......... ........................................... (Address) (City) (ZIP Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers, all water and riparian rights, wells, ditches, reservoirs, and water stock and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). 3. MA7II4UM OBLIGATION LE KIT. The total principal amount secured by this Security Instrument at any one time shall not exceed $ .... 123 1.?50:.00 ,,,,,,, , This limitation of amount does not include interest and other fees and charges validly made pursuant to this Security Instrument. Also, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. PENNSYLVANIA- AGRICULTURALICOMMERCIIA?L MORTGAGE (NOT FOR FNMA. FNLMC FHA OR VA USE, T FOR SUMER PURPOSE (page 1 of 101 C 1994 Bankers Sysnma.? ., 5t. Clo d, MN Form AG/CG-MTG•PA 7/1912000 yrr OLI B? t $O f PC3460 . ,LXMU A 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of all promissory note(s), contract(s), guaranty(s) or other evidence of debt described below and all their extensions, renewals, modifications or substitutions. (When referencing the debts below it is suggested that you include items such as borrowers' names, note amounts, interest rates, maturity data, etc.) BORROWER: MERMAID CAR WASH LOAN AMOUNT: $ 123,750.00 INTEREST RATE: 7.500 1; MATURITY DATE: 03/14/2008 B. All future advances from Lender to Mortgagor or other future obli ations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt existing now or executed after this Security Instrument whether or not this Security Instrument is specifically referenced. If more than one person signs this Security Instrument, each Mortgagor agrees that this Security Instrument will secure all future advances and future obligations that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. All future advances and other future obligations are secured by this Security Instrument even though all or part may not yet be advanced. All future advances and other future obligations are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future loans or advances in any amount. Any such commitment must be agreed to in a separate writing. C. All obligations Mortgagor owes to Lender, which now exist or may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. This Security Instrument will not secure any other debt if Lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees that all payments under the Secured Debt will be paid when due and in accordance with the terms of the Secured Debt and this Security Instrument. 6. WARRANTY OF TITLE. Mortgagor warrants that Mortgagor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain, convey, sell, and mort gage the Property. Mortgagor also warrants that the Property is unencumbered, except for encumbrances of record. 7. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 8. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor s payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. g?pp (Page 2 of 101 O 1994 B.W. Syateml9V!.. a7&.d, MN Form AGXO-WrG PA 7/19/2000 i 9. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of the Property. This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Security Instrument is released. 10. TRANSFER OF AN INTEREST IN TAE MORTGAGOR. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Lender may demand immediate payment if: A. A beneficial interest in Mortgagor is sold or transferred. B. There is a change in either the identity or number of members of a partnership or similar entity. C. There is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohibited by law as of the date of this Security Instrument. 11. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Mortgagor makes to Lender the following warranties and representations which shall continue as long as the Secured Debt remains outstanding: A. Mortgagor is duly organized and validly existing in Mortgagor's state of incorporation or organization. Mortgagor is in good standing in all states in which Mortgagor transacts business. Mortgagor has the power and authority to own the Property and to carry on its business as now being conducted and, as applicable, is qualified to do so in each state in which Mortgagor operates. B. The execution, delivery and performance of this Security Instrument by Mortgagor and the obligations evidenced by the Secured Debt are within the power of Mortgagor, have been duly authorized, have received all necessary governmental approval, and will not violate any provision of law, or order of court or governmental agency. C. Other than previously disclosed in writing to Lender, Mortgagor has not changed its name within the last ten years and has not used any other trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any other name and will preserve its existing name, trade names and franchises until the Secured Debt is satisfied. 12. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor shall not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become wom or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Security Instrument. Mortgagor shall not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Lender shall give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspec - /page 3 of 101 O 1994 Bankers Systems, ., St?J&, MM Form AG/CO-MTG-PA 7/19/2000 j V BK1801P 3462 13. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 14. ASSIGNMENT OF LEASES AND RENTS. Mortgagor grants, bargains, and conveys to Lender as additional security all the right, title and interest in and to any and all: A. Existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to as "Leases"). B. Rents, issues and profits (all referred to as "Rents"), including but not limited to security deposits, minimum rent, percentage rent, additional rent, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have that in any way pertain to or are on account of the use or occupancy of the whole or any part of the Property. In the event any item listed as Leases or Rents is determined to be personal property, this Security Instrument will also be regarded as a security agreement. Mortgagor will promptly provide Lender with true and correct copies of all existing and future Leases. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in default. Except for one lease period's rent, Mortgagor will not collect in advance any future Rents without Lender's prior written consent. Upon default, Mortgagor will receive Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds. Amounts collected shall be applied at Lender's discretion to payments on the Secured Debt as therein provided, to costs of managing, protecting and preserving the Property and to any other necessary related expenses including Lender's attorneys' fees and court costs. Mortgagor agrees that this assignment is immediately effective between the parties to this Security Instrument and effective as to third parties on the recording of this Security Instrument, and this assignment will remain effective until the Obligations are satisfied. Mortgagor agrees that Lender is entitled to notify Mortgagor or Mortgagor's tenants to make payments of Rents due or to become due directly to Lender after such recording. However, Lender agrees not to notify Mortgagor's tenants until Mortgagor defaults and Lender notifies Mortgagor of the default and demands that Mortgagor and Mortgagor's tenants pay all Rents due or to become due directly to Lender. On receiving the notice of default, Mortgagor will endorse and deliver to Lender any payments of Rents. Mortgagor warrants that no default exists under the Leases or any applicable landlord law. Mortgagor also agrees to maintain, and to require the tenants to comply with, the Leases and any applicable law. Mortgagor will promptly notify Lender of any noncompliance. If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Mortgagor will obtain Lender's written authorization before Mortgagor consents to sublet, modify, cancel, or otherwise alter the Leases, to accept the surrender of the Property covered by such Leases (unless the Leases so require), or to assign, compromise or encumber the Leases or any future Rents. If Lender acts to manage, protect and preserve the Property, Lender does not assume or become liable for its maintenance, depreciation, or other losses or damages, except those due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will hold Lender harmless and indemnify Lender for any and all liability, loss or damage that Lender may incur as a consequence of the assignment under this section. 15. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold. If the Property Exr ; 01994 Bankers Systems, Inc., St. Cloud, MN Form AG/CO•MTG•PA 7/1912000 (page 4 of 10) 4?12-?Z401 - SK 301 1 PG3463 includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 16. DEFAULT. Mortgagor will be in default if any of the following occur: A. Any party obligated on the Secured Debt fails to make payment when due; B. A breach of any term or covenant in this Security Instrument or any other document executed for the purpose of creating, securing or guarantying the Secured Debt; C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that is false or incorrect to any material respect by Mortgagor or any person or entity obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor relief law to, Mortgagor or any other person or entity obligated on the Secured Debt; E. A good faith belief by Lender at any time that Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the Property is impaired; F. A material adverse charge in Mortgagor's business including ownership, management, and financial conditions, which Lender in its opinion believes impairs the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 17. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mort gagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security Instrument and any related documents. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 18. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Security Instrument. Mortgagor will also pay on demand any amount incurred by Lender for insuring, inspecting, preserving or otherwise protecting the Property and, Lender's security interest. These ex enses will bear interest from the date of the payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred by Lender in collecting, enforcing or protecting Lender's rights and remedies under this Security Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and other legal expenses., This Security Instrument shall remain in effect until released. Mortgagor agrees to pay for any recordation costs of such release. 19. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance (page 5 of 10) O 1994 Owksrs Systemjno . SNlOud, MN Form AG/CO-MTG-PA 7/19/2000 i L BK 18 0 1 PG 3 4.6 4, means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are and shall remain in full compliance with any applicable Environmental Law. F. Except as previously disclosed and acknowledged in writing to Lender, there are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or ,not Mortgagor and any tenant are in compliance with applicable Environmental Law. 1. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release this Security Instrument and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Security Instrument without prejudice to any of Lender's rights under this Security Instrument. ? lpege 6 of 10/ ,i[ 721' 01994 Bankers Systems, Inc., St. Cloud, MN Form AG/CO-MTG-PA 7/19/2000 BK 18 Oil, PG 346 5. L. Notwithstanding any of the language contained in this Security Instrument to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 20. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 21. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "loss payee clause." Mortgagor shall immediately notify Lender of cancellation or ternunation of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to restoration or repair of the Property or to the Secured Debt, whether or not then due, at Lender's option. Any application of proceeds to principal shall not extend or postpone the due date of scheduled payment nor change the amount of any payment. Any excess will be paid to the Mortgagor. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. B. Mortgagor agrees to maintain comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims arising from any accident or occurrence in or on the Property. C. Mortgagor agrees to maintain rental loss or business interruption insurance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to Lender. 22. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 23. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon 7siit an ficia l sateent or information Lender ma?+ deem 7tha nably necdeive, and file an y additional docents or cemficationLender f, continue, and preserve Mortgagor's obligations under thurity Instrument and Lender's lien status on th e Property. 24. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instrument but does not sign an evidence of debt, Mortgagor does so only to mo gage Mortgagor's g? 7 /page 7 of 101 ?Ert1, ®1994 S.M. SYStems, ., St?CloBud, MN Form AGXO-WrG PA 7/19/2000' r 0 8K1 601PG3466 interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgaggor or any party indebted under the obligation. These rights may include, but are not limited to, any anti-deficiency or one-action laws. Mortgagor agrees that Lmxler and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor's consent. Such a cage will not release Mortgagor from the terns of this Security Instrument. The duties and benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 25. APPLICABLE LAW; SEVERABII.ITY; INTERPRETATION. This Security Instrument is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required by the laws of the jurisdiction where the Property is located. An provision that appoints Lender as an agent is not subject to the provisions of 20 Pa.C.S.A. Section 5601 et seq. (Chapter 56; Decedents, Estates and Fiduciaries Code). Lender, by exercising any of its rights under this Security Instrument, does so for benefit of Lender. This Security Instrument is complete and fully integgrated?. This Security Instrument may not be amended or modified by oral agreement. Any section in this Securi Instrument, attachments, or y agreement related to the Secured Debt that coflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section of this Security Instrument cannot be enforcedaccording to its terms, that section will be severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Security Instrument are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. Time is of the essence in this Security Instrument. 26. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the apropnate .party's address on page 1 of this Security Instrument, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 27. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right to appraisement relating to the Property. 28. WAIVER OF JURY TRIAL. To the extent not prohibited by law, Mortgagor and Lender knowingly and intentionally waive the right, which the party may have, to a trial by jury with respect to any litigation arising from the Secured Debt, or any other agreement executed in conjunction with the Evidence of Debt and this Mortgage. Mortgagor and Lender each acknowledge that this section has either been brought to the attention of each party's legal counsel or that each party had the opportunity to do so. 29. U.C.C. PROVISIONS. If checked, the following are applicable to, but do not limit, this Security Instrument: ? Construction Loan. This Security Instrument secures an obligation incurred for the construction of an improvement on the Property. ? Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. ? Crops; Timber; Minerals; Rents, Issues, and Profits. Mortgagor grants to Lender a security interest in all crops, timber, and minerals located on the Property as well as all rents, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "Property"). ? Personal Property. Mortgagor grants to Lender a security interest in all personal property located on or connected with the Property, including all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other items of nal property /Page 8 of f0/ 0 1994 Bankers Systems. I?noP',%8Jb8ud, MN Form AO/CO-MTG-PA 7/1912000 Mortgagor owns now or in the future and that are used or useful in the construction, ownership, operation, management, or maintenance of the Property (all of which shall also be included in the term "Property"). The term "personal property" specifically excludes that property described as "household goods" secured in connection with a consumer" loan as those terms are defined in applicable federal regulations governing unfair and deceptive credit practices. ? Filing As Financing Statement. Mortgagor agrees and acknowledges that this Security Instrument also suffices as a financing statement and any carbon, photographic or other reproduction may be filed of record for purposes of Article 9 of the Uniform Commercial Code. 30. OTHER TERMS. If checked, the following are applicable to this Security Instrument: ? Line of Credit. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. ? Agricultural Property. Mortgagor covenants and warrants that the Property will be hsed principally for agricultural or farming purposes and that Mortgagor is an individual or entity allowed to own agricultural land as specified by law. ? Purchase Money. This Security Instrument secures advances by Lender used in whole or in part to acquire the Property. Accordingly, this Security Instrument, and the lien hereunder, is and shall be construed as a purchase money mortgage with all of the rights, priorities and benefits thereof under the laws of the Commonwealth of Pennsylvania. ? Additional Terms. SIGNATURES: By signing below, Mortgagor, intending to be legally bound hereby, agrees to the terms and covenants contained inn this Security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on the date stated on_2age 1. Entity Name: - - - .................. ..................... Ti 4/2003 .. . ... ........ ....................... (Sign rej REY C TAYL (Date) "?'?' 03/14/2003 AYLOR (Date) ............................................................. .............................................................. (Witness) (Witness) 03/14/2003 (Signature) (Date) (Signature) (Date) .................................................... ) . ... ....................... .................. (Witness) (Witness Fjj5&_r_ft; O 1994 Bankers System.!19P. St. ellud. MN Form AO/co-wr.-PA 7/19/2ooo [page 9 of 10) BK1801PG34.68. ACKNOWLEDGMENT: COMMONWEALTH OF PA .......................... COUNTY OF ....... Vor• k................ ss. (Irw;) On this, the...14th ...... day of ....March,.. 20013 ...... before me .... a• .notary ............... the undersigned officer, personally appeared Je£frey••O..•&•-Valerie-•0:••Taylor ••'••'' .............................................................. . known to me (or satisfactorily proven) to be the person(s) whose name(s) is subscribed to the within instrument, and acknowledged that he/she • ?r ecuted the same for the purposes therein contained. `'?,"•; ttness whereof, I hereunto set my hand and official seal. commission expires: c? t?e?+ P n .. ..•. . ..,, . ...u ?t ??, ?'`-:... ?. ... .......... PiL7Y Ci,f y v ,,, 4 + h weal ? ' 4 .'?i .?. ,4' } Pr f yY ?7'v olc 4 t i / `?" dT ?• bP YH P+.a Jiff l see, .Y ana ° 4, ,? .• ? 419ts f r ,`..:I9.' ,.07Y'.'i SsfaJPR v} = t Lt ! r • • • ... • , , ".J :ir31 J?:dlti !s .... Title of Officer COMMONWEALTH OF ............................... COUNTY OF ............................... ) ss. (Busimss On this, the ................. day of ............................., before me ................................., ................................ o<Fmity the undersigned officer, personally appeared .......:........ "`I°1°""'`d"`) who acknowledged himself/herself to be the ............................... of .................................................................................... .......................... and that he/she as such ................................................................ being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the ................................... by ...............................:........... as .................... ............................................................. . In witness whereof, I hereunto set my hand and official seal. My commission expires: (Seal) ............................................................ Title of Officer It is hereby certified that the address of the Lender within named is: .................................................. ADAMS. COUNTY NATIONAL.BANK__PO•BOX.3129 GETTYSBURG PA 17325 ......... .......... ............................................................. . I Certify this to be recorded Tn Cumberland County PA O 1994 Bankers Systems, Inc., St. Loud, MN Form AG/CO•MTG r!/19 '11 ;mow '?*,r' ` ge 10 Of 10/ l1 PG 3 4 6 9 Recorder of Deeds MERMAID CAR WASH tL 334 EAST MEADOW DRIVE MECHANICSBURG PA 17055 BORROWER'S NAME AND ADI "I" includes each borrower above, jointly 13,4 ADAMS COUNTY NATIONAL BANK' Loan Number 600131432 k Date MARCH 14 2003 PO BOX 3129 Maturity Date MAR, 14 2008 AV& 2WfETTYSBUR.G PA 17325 Loan Amount S 123.750.00 GV(fJ Renewal Of f LENDER'S NAME AND ADDRESS means the lender, its successors and assigns. c....i,,. --iuad- i oremisa to eav to vou. or vour order, st your address listed above the PRINCIPAL sum of oas RUNDRE11 axcrnr-TRess THOUSAND rives RDaDnsD FIFTY 11RD 00/100 Dollars $ 123.750.00 ?Sbvb Advance: 1 will receive all of this principal sum on 03/14/2001 No additional advances are contemplated under this note. ? Muttlob Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On N/A I will receive the amount of $, N/A and future principal advances are contemplated. Conditions: The conditions for future advances are ? Open End Credit: You and I agree that I may borrow up to the maximum amount of principal more than one time. This feature is subject to all other conditions and expires on N/A ? Closed End Credit: You and 1 agree that I may borrow up to the maximum only one time land subject to all other conditions). INTEREST: I agree to pay interest on the outstanding principal balance from 03/14/2003 at the rate of 7.500 % per year until MARCH 14 2008 ? Varlable Rate: This rate may then change as stated below. ? Index Rate: The future rate will be N/A the following index rate: N/A ? No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control. ? Frequency and Tinning: The rate on this note may change as often as N/A A change In the interest rate will take effect N/A ? Limitations: During the term of this loan, the applicable annual interest rate will not be more than N/A % or less than N/A %. The rate may not change more than % each Effect of Variable Ran: A change in the Interest rate will have the following effect on the payments: ? The amount of each scheduled payment will change. ? The amount of the final payment will change. ACCRUAL METHOD: Interest will be calculated on a SIMPLE INTEREST PER ANNUM basis. POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid In full, as stated below: ? on the some fixed or variable rate basis In effect before maturity (as indicated above). Ei at a rate equal to 2,000 k above the highest prime rate published in the Wall Street Journal's listing of money rates Ek LATE CHARGE: If a payment Is made more than 015 days after it is due, I agree to pays late charge of 3,000 E OF THE PAYMENT AMOUNT OR S 20.00 WHIOLMR IS GREATER RETURNED CHECK CHARGE: I agree to pay a fee of $ 35.00 for each check, negotiable order of withdrawal or draft I issue in connection with this loan that is returned because it has been dishonored. ? ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which ? are Dare not included in the principal amount above: - PAYMENTS: I agree to pay this note as follows: ? Interest:I agree to pay accrued interest _ ? Principal: I agree to pay the principal ®Clnstellments: I agree to pay this note in 60 payments. The first payment will be in the amount of $ 1.898.11 and will be due APRIL 14 . 2003 A payment of $ 1,898.11 will be due MONTHLY thereafter. The final payment of the entire unpaid balance of principal and interest will be due MARCH 14 . 2008 RANT OF AUTHORITY TO CONFESS JUDGMENT. Upon default, in- addition to all other remedies and rights available to you, by signing power irrevocably authorizes the prothonotary, clerk, or any attorney to appear in any court of record having jurisdiction over this matter nfess judgment against me at any time without stay of execution. I waive notice service of process and process. I agree and understand vent may be confessed against me for any unpaid principal, accrued interest and accrued charges due on this note, plus collection costs nable attorneys' fees up to 15 percent of the judgment. The exercise of the power to confess judgment will not exhaust this warrant of to coqnfess judgggent and may be done as often as you elect. I further understand that my property may be seized without prior notice to as do t owed. I-knowlagdvnintentionally and voluntarily waive any and all constitutional rights I have to pre-deprivation notice and hearing I nd the consequences of this waiver. MREIN INCORPORATED IN THIS NOTE IS A COMMITMENT LETTER DATED FEBRUARY 14, 2003 WHICH CONTAINS ADDITIONAL TERMS AND CONDITIONS. PURPOSE: The purpose of this loan is PURCHASE TOUCHLESS CA WASHING RQUIPMEM MECHANICSBURG LOCATION SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING 10 SECURITY: This note Is separately secured by (describe separate THOSE ON PAGE 2). 1 have received a copy on today's date. document by type and date): MERMAID CAR WASH MORTGAGE & SECURITY AGREEMENT DATED 3/14/03 "a section Is for your iotwnel use. Fe91xe to list a wpwate severity doeurmmt dos not mean du T YLOR PROPRIETOR W"rmm will not sewn title noted Signature for Lender f. t. FORM * UNIVERSAL NOTE f5(J59 W 0 1984, 1991 Bankers Systems, Inc., St. Cloud. MN Form UN-PA 317/2002 ''tv??? !Page 7 of 21 DEFINITIONS: As used on page 1, '®" mean 1 terms that apply to this loan. 'I,' 'me' or "my" means each Borro r who signs this note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this note (together referred to as "us"). 'You' or "your' means the Lender and Its successors and assigns. APPLICABLE LAW: The law of the state of Pennsylvania will govem this note. Any term of this note which is contrary to applicable law will not be effective, unless the law permits you and me to agree to such a variation. If any provision of this agreement cannot be enforced according to its terms, this fact will not affect the enforceability of the remainder of this agreement. No modification of this agreement may be made without your express written consent. Time is of the essence in this agreement. Any provision that appoints you as an agent is not subject to the provisions of 20 Pa.C.S.A. Section 5601 at seq. (Chapter 56; Decedents, Estates and Fiduciaries Code). By exercising any of your rights under this note, you do so for your sole benefit. COMMISSIONS OR OTHER REMUNERATION: 1 understand and agree that any insurance premiums paid to insurance companies as part of this note will involve money retained by you or paid back to you as commissions or other remuneration. In addition, I understand and agree that some other payments to third parties as part of this note may also Involve money retained by you or paid back to you as commissions or other remuneration. PAYMENTS: Each payment I make on this rate will first reduce the amount I owe you for charges which are neither interest nor principal. The remainder of each payment will then reduce accrued unpaid interest, and then unpaid principal. If you and I agree to a different application of payments, we will describe our agreement on this note. I may prepay a part of, or the entire balance of this loan without penalty, unless we specify to the contrary 'on this note. Any partial prepayment will not excuse or reduce any later scheduled payment until this note is paid in full (unless, when I make the prepayment, you and I agree in writing to the contrary). INTEREST: Interest accrues on the principal remaining unpaid from time to time, until paid in full. If I receive the principal in more than one advance, each advance will start to earn Interest only when I receive the advance. The interest rate in effect on this note at any given time will apply to the entire principal advanced at that time. Notwithstanding anything to the contrary, I do not agree to pay and you do not intend to charge any rate of Interest that is higher than the maximum rate of Interest you could charge under applicable law for the extension of credit that is agreed to here (either before or after maturity). If any notice of interest accrual is sent and is in error, we mutually agree to correct it, and if you actually collect more interest than allowed by law and this agreement, you agree to refund it to me. INDEX RATE: The index will serve only as a device for setting the rate on this note. You do not guarantee by selecting this index, or the margin, that the rate on this note will be the same rate you charge on any other loans or class of bans to me or other borrowers. ACCRUAL METHOD: The amount of interest that I will pay on this loan will be calculated using the Interest rata and accrual method stated on page 1 of this note. For the purpose of interest calculation, the accrual method will determine the number of days in a "year." If no accrual method is stated, than you may use any reasonable accrual method for calculating interest. POST MATURITY RATE: For purposes of deciding when the 'Post Maturity Rate' (shown on page 1) applies, the term "maturity" means the earliest of the following: Is) the date of the last scheduled payment indicated on page 1 of this note; (b) the date you accelerate payment on the note; or (c) after the entry of judgment on this note by confession or otherwise and applies to amounts owed under this note on any such judgment until paid In full. SINGLE ADVANCE LOANS: if this is a single advance loan, you and I expect that you will make only one advance of principal. However, you may add other amounts to the principal If you make any payments described in the "PAYMENTS BY LENDER" paragraph below. MULTIPLE ADVANCE LOANS: If this Is a multiple advance loan, you and I expect that you will make more than one advance of principal. If this is closed and credit, repaying a part of the principal will not entitle me to additional credit. ADVANCE PROCEDURE AND MEANS: You will advance the loan proceeds by way of check, cash, wire transfer, credit to an account or any combination as You and I agree. The advance(s) will occur upon consummation of the loan and as You and I agree, except that no advance(s) will occur until after three business days from the date of consummation if the loan is rescindable pursuant to Regulation Z (12 C.F.R. 1 226). PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges 1 am obligated to pay (such as property insurance premiums), then you may treat those payments made by you as advances and add them to the unpaid principal under this note, or you may demand immediate payment of the charges. SET-OFF: I agree that you may set off any amount due and payable under this note against any right 1 have to receive money from you. "Right to receive money from you" means: (1) any deposit account balance 1 have with you; (2) any money owed to me on an Item presented to you or in your possession for collection or exchange; and (3) any repurchase agreement or other nondeposlt obligation. "Any amount due and payable under this note' means the total amount of which you are entitled to demand payment under the terms of this note at the time you set off. This total includes any balance the due date for which you properly accelerate under this note. If my right to receive iey from you is al$q owned byraomeons who has not agreed to pay >_..., note, your right of set-off will apply to niy Interest in the obligation and to any other amounts 1 could withdraw on my sole request or endorsement. Your right of set-off does not apply to an account or other obligation where my rights are only as a representative. It also does not apply to any Individual Retirement Account or other tax-deferred retirement account. You will not be liable for the dishonor of any check when the dishonor occurs because you set off this debt against any of my accounts. i agree to hold you harmless from any such claims arising as a result of your exercise of your right of set-off. REAL ESTATE OR RESIDENCE SECURITY: If this note is secured by real estate or a residence that is personal property, the existence of a default and your remedies for such a default will be determined by applicable low, by the terms of any separate instrument creating the security interest and, to the extent not prohibited by low and not contrary to the terms of the separate security instrument, by the "Default" and 'Remedies' paragraphs herein. DEFAULT: I will be in default if any one or more of the following occur: (1) I fall to make a payment on time or in the amount due; (2) 1 fail to keep the property Insured, it required; (3) 1 fail to pay, or keep any promise, on any debt or agreement I have with you, (4) any other creditor of mine attempts to collect any debt I owe him through court pro- ceedings; 15) 1 die, am declared incompetent, make an assignment for the benefit of creditors, or become insolvent (either because my liabilities ex- ceed my assets or I am unable to pay my debts as they become due); (6) 1 make any written statement or provide any financial information that is untrue or inaccurate at the time It was provided; (7) 1 do or fail to do something which causes you to believe that you will have difficulty collecting the amount I owe you; 18) any collateral securing this note is used in a manner or for a purpose which threatens confiscation by a legal authority; (9) 1 change my name or assume an additional name without first notifying you before making such a change; (10) 1 fail to plant, culti- vate and harvest crops in due season; 01) any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commod- ity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. REMEDIES: If I am In default on this note you have, but are not limited to, the following remedies: (1) You may demand immediate payment of all I owe you under this rote (principal, accrued unpaid interest and other accrued charges). (2) You may set off this debt against any right I have to the payment of money from you, subject to the terms of the "Set-Off" paragraph herein. (3) You may demand security, additional security, or additional parties to be obligated to pay this note as a condition for not using any other remedy. (4) You may refuse to make advances to me or allow purchases on credit by me. (5) You may use any remedy you have under state or federal law. By selecting any one or more of these remedies you do not give up your right to later use any other remedy. By waiving your right to declare an event to be a default, you do not waive your right to later consider the event as a default if it continues or happens agsin. COLLECTION COSTS AND ATTORNEY'S FEES: I agree to pay all costs of collection, replevin or any other or similar type of cost if I am in default. In addition, if you hire an attorney to collect this note, I also agree to pay any fee you incur with such attorney plus court costs (except where prohibited by law). To the extent permitted by the United States Bankruptcy Cods, I also agree to pay the reasonable attorney's fees and costs you incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. WAIVER: I give up my rights (to the extent permitted by law) to require you to do certain things. I will not require you to: (1) demand payment of amounts due (presentment); (2) obtain official certification of nonpayment (protest); or (3) give notice that amounts due have not been paid (notice of dishonor). I waive any defenses 1 have based on suretyship or impairment of collateral. OBLIGATIONS INDEPENDENT: I understand that 1 must pay this note even if someone else has also agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement). You may sue me alone, or anyone also who is obligated on this note, or any number of us together, to collect this note. You may do so without any notice that it has not been paid (notice of dishonor). You may without notice release any party to this agreement without releasing any other party. If you give up any of your rights, with or without notice, it will not affect my duty to pay this note. Any extension of new credit to any of us, or renewal of this note by all or less than all of us will not release me from my duty to pay it. (Of course, you are entitled to only one payment in full.) I agree that you may at your option extend this note or the debt represented by this note, or any portion of the note or debt, from time to time without limit or notice and for any term without affecting my liability for payment of the note. 1 will not assign my obligation under this agreement without your prior written approval. FINANCIAL WFORMATION: 1 agree to provide you, upon request, any financial statement or Information you may deem necessary. I warrant that the financial statements and Information 1 provide to you are or will be accurate, correct and complete. NOTICE: Unless otherwise required by law, any notice to me shall be given by delivering It or by mailing It by first class mall addressed to me at my last known address. My current address is on page 1. 1 agree to inform you in writing of any change in my address. I will give any notice to you by malting it first class to your address stated on page 1 of this agreement, or to any other address that you have designated. DATE OF TRANSACTION PRINCIPAL ADVANCE BORROWER'S INITIALS (not rsqul d) PRINCIPAL PAYMENTS PRINCIPAL BALANCE INTEREST RATE INTEREST PAYMENTS INTEREST PAID THROUGH: $ s $ % $ $ $ s % $ $ o s % $ $ $ s % $ III $ $ % $ $ a $ % a $ a a % s a $ $ % 8 s a a % $ is is Is % $ Is is Is % I s ExIS 'r 01984, 1991 BrYars SyKam, Inc., St. Claud, MN Form UN-PA 3f7/2002 page 2 of 2! 4)4- n ^; 44- 0 SHERIFF'S RETURN - REGULAR t CASE NO: 2007-06126 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ADAMS COUNTY NATIONAL BANK VS TAYLOR JEFFREY C ET AL WILLIAM CLINE , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon TA-VTnD .7L'L'L'DLIV r the DEFENDANT , at 1512:00 HOURS, on the 8th day of November-, 2007 at KELLER WILLIAM REAL ESTATE 4242 CARLISLE PIKE MECHANICSBURG, PA 17055 by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge 1 Sworn and Subscibed to before me this of So Answers: 18.00 14.40 ?. .58 r 10.00 R. Thomas Kline .00 42.98 11/13/2007 ADAMS COUNTY NATIONAL BANK By. ?- ,ap; lux day Deputy Sheriff A.D. r l% SHERIFF'S RETURN - REGULAR CASE NO: 2007-06126 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ADAMS COUNTY NATIONAL BANK VS TAYLOR JEFFREY C ET AL KENNETH GOSSERT , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon r"7% 'ITT r1n TTTT LSDTU (I the DEFENDANT , at 2050:00 HOURS, on the at 334 EAST MEADOW DRIVE MECHANAICSBURG, PA 17055 VALERIE C TAYLOR 5th day of November-, 2007 by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing Her attention to the contents thereof. Additional Comments DEFENDANT REFUSED TO PHYSICALLY TAKE THE PAPER THAT WAS HANDED TO HER. SHE KICKED IT BACK OUT HER DOOR AND DECLARED THAT SHE REFUSED SERVICE OF THE PAPER. Sheriff's Costs: Docketing Service Affidavit Surcharge c7 Sworn and Subscibed to before me this of So Answers 6.00 10.56 : .00 10.00 R. Thomas Kline .00 26.56 11/13/2007 ADAMS COUNTY NATIONAL BANK By: day A. D. f IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. 2007-6126 Civil Term Plaintiff, vs. Action in Mortgage Foreclosure Jeffrey C. Taylor and Valerie C. Taylor, husband and wife, Defendants. PRAECIPE TO THE PROTHONOTARY: Please mark the above-captioned Action in Mortgage Foreclosure as discontinued. PUHL, EASTMAN & THRASHER Dated: February 25, 2008 By: Edward G. Puhl, Esquire Attorney ID Number 55709 Attorney for Plaintiff 220 Baltimore Street Gettysburg, PA 17325 (717) 334-2159 j -TI l