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HomeMy WebLinkAbout03-5679ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff MATTHEW J. NOR[ 662 WALNUT BOTTOM ROAD SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- CIVIL TERM MORTGAGE FORECLOSURE NOTICE TO: Matthew J. Nori 662 Walnut Bottom Road Shippensburg, Pennsylvania 17257 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 an 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 OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIR[NG 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. Cmnbefland County Bar Association 32 South Bedford Street Carlisle, Pe~msylvania 170 l 3 (717) 249-3166 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff MATTHEW J. NOR/ 662 WALNUT BOTTOM ROAD SHIPPENSBURG, PA 17257, Defendant 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- S ~ 7q CIVIL TERM MORTGAGE FORECLOSURE COMPLAINT 1. The Plaintiff and Mortgagee is Orrstown Bank, a Pennsylvania corporation, with a place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendant is Matthew J. Nori, an adult individual residing at 662 Walnut Bottom Road, Shippensburg, Cumberland County, Pennsylvania. 3. By Deed acknowledged on November 10, 2002, Secretary Of Housing and Urban Development, conveyed the premises described in Exhibit "A", attached hereto and made a part hereof, to Matthew J. Nori. This Deed was recorded in Cumberland County Record Book 254, Page 3020 all of which pages are incorporated herein by reference and made a part hereof. The premises are further described as being 6 Koser Road, Shippensburg, Cun~befland County, Pennsylvania. 4. On or about, November 13, 2002, Matthew J. Nori as Mortgagor made, executed and delivered a written Note secured by a Mortgage made, executed and delivered the same day to Plaintiff as Mortgagee on the premises described in Exhibit "A". This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on November 19, 2002, at Cumberland County Record Book 1783, Page 200, et. seq., all of which pages are incorporated herein by reference and made a part hereof. 5. A true and correct copy of the aforesaid Note is attached hereto and made a part hereof as Exhibit "B". A true and correct copy of the aforesaid recorded Mortgage is attached hereto and made a part hereof as Exhibit "C". 6. Defendant defaulted under the terms and conditions of the Mortgage and Note by failing to make payment of principal and interest due Jm~e 13, 2003, July 13, 2003, August 13, 2003, September 13, 2003 and October 13, 2003. 7. Defendant is the present record owner of the premises described in Exhibit "A" and the real owner of the premises. 8. Plaintiff, served Notice Of Defendants Rights Under Act 91 of 1983 (Homeowners Emergency Mortgage Assistance Law) by first class mail and via certificate of mailing on September 9, 2003. 9. Attached hereto and marked as Exhibit "D", is a tree and correct copy of the Act 91 Notice. I 0. Attached hereto as Exhibit "E", is the true and correct copy of the certificate of mailing. 11. Under the terms of the Mortgage and Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Note or Mortgage is not met, then the entire indebtedness owing on the Mortgage and Note obligation shall become due and payable immediately at the declaration of Mortgagee. 12. Plaintiff as Mortgagee has exercised its option and declared the entire unpaid balance of principal and interest as immediately due and owing. 13. The following amounts are presently due on the said Mortgage and Note calculated to October 17, 2003: Principal $ 53,874.70 Interest to October 17, 2003 $ 1,437.34 (per diem $9.02) Reasonable attorneys fees fixed $ 2,693.73 by Plaintiff for purposes of this Complaint (5% of principal debt) Late charge $. 117.90 TOTAL: $ 58,123.67 WHEREFORE, Plaintiff demands Judgment in Mortgage Foreclosure in the sum of $58,123.67 plus interest thereafter at the contract per diem from October 17, 2003, mad costs against Defendant, Mortgagor and real owner, and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibit "A" hereto. Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/or rstownbanlOnorl/for¢¢losure, pld VERIFICATION I, Betsy .L Smith, verify that the statements made in this Complaint ar~ true upon my perso~l knowledge or information and baLicf. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 ~elating to unsworn falsificatior~ to authorities. Dated: /o.~,o ~ Smith, Collector Orrstown Bank Deed for Pennsylvania ~l ~z : ~ bf Ho~in~ znd Ur~ ~ve~pm~{,:o/W~hin${on. D.C., ~naf~cr ~lerr~ ~o ~ "G~n~or"L and Mat thew J. No~i %vi~elk T~ z~e Omnmr for ~ ~n ¢ansi~r,t~n ct ~he sum of S 50,000.00 ~aw~; ~hc rc~ipt w~t~fj~ ~rcby a~nowlcdscd. ~;h g~n¢~, ba~in~. ~ld, a~. cnf~ff~, r=~ and ¢on~, and by ALL THAT CERTAIN piece or parcel cf land situate in North New=on Township, cumberland co%~ty, Pennsylvania, more particularly bounded ~ des~rib~d .as, follows, :o wit: BEGINNING aC a railroad spike in the center li~e of Township Route 330 at corner of lands now or formerly of Dana L. Peterscn et UX: thence Dy sa/d lands of 'Peterson, South 42 degrees 05 m/nuDes 30 seconds, West, 231.32 feet to ~ iron pin in the proper~y of ln-4s now or formerly of W. Harold Yohe; thence by said lands of Yohe, North 68 degrees 27 minutes 06 seconds West. 130.24 feet to an existin~ corner fence post; tRenDs by same, North 4I degrees 15 minutes 2~ seconds East, 15s, 35 feet to an iron pin; thence continuing by same, North 65 de~rees 26 mln~tes 00 second., West, 26.19 feet to ~ ~ron pin ~t earner of lands now or formerIy of Norman I. Wast; thence by said land~ of West, North 42 degrees 0s minutes 30 seconds East, 92.55 feet to a railroad spike in the center line of said Township Route 330; thence by Said center line of said Tow~x~hip Route, South 4S degrees 14 m~nutes 37 secon~ East, 150 feed to a railroad sl~ike, the place of BEgINNINg. BEING LO= ~o. 2 on la~d subdivision for Dana L. Pekerson, dated March 22, 1982 and recorded in the Office of Recorder of Deeds of Cumberland County, Pennsylv~ia in PlazL Book 42, Pa~e 17. Conta/ntn~ 34,075 squ~re feet, less 3,750 s~re fee= rese~ed for right-of-way use, T~ P~, 30-11-0306-0007A ~e~ng Ihs same propct:y acquired 'oy I~ Grantor pursuam to thc prOv~Jons of thc National HOUl~ng Act. as amcndcd (I 2 USC 1701 ct '-.eq.j and =he Dcpa.rtmcm of ~ousinll an~ Urban Deve..k:,pmcnt ACt H2 U.$.C. Subject to* ail covenants, restrictions, reservations, cascmcn,,,, conditions and rights apres;ins of record; and SUBJECT to an)' rent% issues and prol~Ls thercc,f: and all the cslare:, risht, dale, ~mere~t. property, claim ~d dcmanci whatsoever, of hirc~cr, t~ Grantor, EXHIBIT "A" Oct 21 03 OS:4Sa BAIRD LAW OFFICE ?17-~43-8110 p.4 F~XECUTED PURb/I~NT to authority conta.~.ned in ~ L8tt~ of Att~ey re~ ~ ~cast~ Cowry, Pa. on J~n~y ]6, 20(2 ~o ~c~t No. D0~1282 ~d ~ ~up~ Cowry, Pa. ~ ~c~d B~k 4254, ~e 478. ~ C~ Cowry, ~a. ~ I~sc. ~k 683, ~e ~579, in York Co~ty, Pa. on 3~ 15, 2002 ~ ~rd ~k 1 75 ~ ~01 ~ ~ ~b~om Co~ty, Pa. ~ Record ~ok 2002, ~e 5858. In ~n~ w~r~ ~ und~ h~ ~ hJ~ h~d and ~ ~ .a~to~y-~-fact for , HUD O~, Pcn~y{v~n~. for and on ~aIf of thc ~d ~rcia~ ~f ~o~{n~ and U~ ~:nL un~ ~l~{y a~d by v{~uc of 3~ F.~. $1~tcd. z~lcd and &liv~red {n ibc prcm:nc~ of: Scan:tory of Hou~in{ and Urbau D~vclo~rncnc IVel l~ine~ State of ~ ~]l{~ Att orne¥-in-fact BEAU ~forcm¢, tb~ subscriber i ,~,l;~,~z~.~ ~_aN0~,~Publ~}nandfor~State. .andCoumy. on Ih~ ~y m~naUy ~t~ ~.~ ~ att~y-~-fact , HUD ~, ?~lp~ , Pcn~Bvanla, and :~ fo~going {~lfu~ul by Xirtuc of ibc a~vc,ci{~ au~otiiy and a~now~ thc/o~cgoin{ ~nt to ~ h~ct fr~ act and d~ ~ att~y-~fact , f~ and on ~{f 0f ~1 ~crc~ary of Ho~in~ and U~n ~vc~cni. Given undcr my hand and ,mca] of oir~ce this The address of th~ Grantee is: 662 Walnut Bottof~ Shippensburg Pa 17257 PROMISSORY NOTE Pri~ipa! { E~D~t~ { Mdtdfity { L0a~ N6 ~ Ca /CO ] ~0unt O~iCer ] In tia s { References in the shaded area are for Lender's use only and de not limil the applicability of this document to any particular loan or ilem. A y tern above cents n ng has been om tted due o ex eng h mta OhS. Borrower: MATFHEW J. NORI (SSN: 165-68-4401) Lender: 662 WALNUT Be'ITeM ROAD SHIPPENSBURG, PA 17257 Principal Amount: $55,000.00 ORRSTOWN BANK KING STREET OFFICE P.O. BOX 250 SHIPPENSBURG, PA 17257 Date of Note: November 13, 2002 Maturity Date; November 13, 2017 PROMISE TO PAY. I ("Borrower") promise to pay to ORRSTOWN BANK ("Lender"), or order, in lawful money of the United States of America, the principal amount of Fifty-five Thousand & 00/100 Dollars ($55,000.00), together with interest on the unpaid principal balance from November 13, 2002, until paid in full The interest rate will not increase above 12~250%. PAYMENT. Subject to any payment changes resulting from changes in the Index, I will pay this loan in accordance with the following payment schedule: 12 monthly consecutive principal and interest payments in the initial amount of $471,58 each, beginning December 13, 2002, with interest calculated on the unpaid principal balances at an initial interest rate of 6.250% per annum; and 166 monthly consecutive principal and interest payments in the initial amount of $450.61 each, beginning December 13, 2003, with interest calculated on the unpaid principal balances at an interest rate based on the WEEKLY AVERAGE YIELD ON US TREASURY SECURITIES. (currently 1.510%), plus a margin of 4,000 percentage points, the sum rounded to the nearest 0.125 percent, resulting in an initial interest rate of 5.500%. My final payment will be due on NoYember 13, 2017 and will be for aH principal and accrued interest net yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to prthcipal, and any remaining amount to any unpaid collection costs and late charges. Interest on this Note is computed on a 30/360 simple interest basis; that is, with the exception of odd days th the first payment period, monthly interest is calculated by applying the ratio of the aenual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by a month of 30 days. Interest for the odd days is calculated on the basis of the actual days to the next full month and a 360-day year. I will pay Lender st Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. For the first 1~ payments, the interest rate on this Note will be 6.250%. Thereafter, the interest rate on this Note is sabiect to change from time to time based on changes in an independent index which is the WEEKLY AVERAGE YIELD ON US TREASURY SECURITIES. (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the index becomes unavailable during the term of this Joan, Lender may designate a substitute index after notice to me. Lender will tell me the current Index rate upon my request. The interest rate change will not OCCUr more often than each YEAR. J understand that Lender may make loans based on other rates as welt. The Index currently is 1.510% per annum. The interest rate or rates to be applied to the unpaid principal balance of this Note will be the rate or rates set forth herein in the "Payment" section. Notwithstanding any other provision of this Note, after the first payment stream, the interest rate for each subsequent payment stream will be effective as of the last payment date of the just-ending payment stream. Notwithstanding the foregoing, the variable interest rate or rates provided for in this Note will be subject to the fo0owing maximum rate. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 12.250% per annum or the maximum rate allowed by applicable law. Notwithstanding the above provisions, the maximum increase or decrease in the interest rate at any one time on this loan will not exceed 2.000 percentage points. Unless waived by Lender, any increase in the interest rate will increase the amounts of my payments. PREPAYMENT. I agree that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be refunded to me upon early payment (whether voluntary' or as a result of default), except as otherwise required by law. Except for the foregoing, I may pay without penalty all or a portion of the amount awed eadier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obl[gatio~ to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in my rc~king fewer payments. I agree not to send Lender payments marked "paid in full", "without recourse", or similar language. If I send such a payment, Lender may accept it without losing any of Lender's rights under this Note, and I will remain obligated to pay any further amount owed to Lender. All wri~en communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes 'payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: ORRSTOWN BANK, P,O. BOX 250 SHIPPENSBURG, PA 17257. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. iNTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will bear interest from the date of acceleration or maturity at the variable interest rate on this Note. The interest rate will not exceed the maximum rate permitted by applicable law DEFAULT. I will be in default under this Note if any of the following happen: Payment Default. I fail to make any payment when due under this Note. Break Other Promises. I break any promise made to Lender or fail to perform promptly at the time and strictly in the manner provided in this Note or in any agreement related to this Note, or in any other agreement or loan I bare with Lender, False Statements. Any representation or statement made or furnished to Lender by me or on my behalf under this Note or the related documents is fa~e or misleading in any material respect, either now or at the time made or furnished. Death or Insolvency. Any Borrower dies or becomes thsolvent; a receiver is appointed for any pad of my property; I make an assignment for the benefit of creditors; or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. Taking of the Property. Any creditor or governmental agency tries to take any of the property or any other of my property in which Lender has a lien. This includes taking of, garnishing of er levying on my' accounts with Lender. However, if I dispute in geed faith whether the claim on which the taking of the property is based is valid or reasonable, and if I give Lender written notice of the claim and furnish Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Defective CollateralJzation, This Note or any of the related documents ceases to be in full force and effect (including failure of any collateral document to create a valid and per,acted security interest or lien) at any time and for any reason. Collateral Damage or Loss. Any collateral securing this Note is lost, stolen, substantially damaged or destroyed and the loss, theft, substantial damage or destruction is not covered by insurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity EXHIBIT "B" PROMI,SS,0R¥ NOTE (C~ntinued) Page 2 of, or lability under, any guaranty of the indebtedness evidenced by this Note. th the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations adsing under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Cure Provisions. if any default, other than a default in payment is curable and if I have not been given a notice of a broach of the same provision of this Note within the preceding twelve (12} months, it may be cured (and nc event of default will have occurred) if h after receiving written notice from Lender demanding cure of such default: (1) cure the default within fifteen (15) days; or (2) if the curd requires more than fifteen (15) days, immediately inft[ate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then I will pay that amount. A'I'I'ORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if I do not pay. I will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. GOVERNING LAW. This Note will be governed by and interpreted in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all my accounts with Lender (whether checking, savings, or some other account). This includes all accounts I hold jointly w~h someone else and all accounts i may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. I authorize Lender, to the extent permitted by applicable Aw, to charge er setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all s~ch accounts to allow Lender to prelect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. I acknowledge this Note is secured by the following collateral described in the security instrument listed herein, all the terms and conditions of which are hereby incorporated and made a part of this Note: a Mortgage dated November 13, 2002, to Lender on real property located in CUMBERLAND County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. I understand that I am required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, pemonal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer repelling agency. Your wdtfen notice describing the specific inaccuracy(les) should be sent to us at the following address: ORRSTOWN SANK P.O. BOX 250 SHIPPENSBURG, PA 17257 GENERAL PROVISIONS. Lender may de,ay or forgo enforcing any of its rights or remedies under this Note w~out losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by Jaw, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless othe~vise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or col~.terol; or impair, fail to realize upon or perfect Lender's security interest in the collateral. All such parties also agree that Lender may mod/fy this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. This means that the words '1", "me', and 'my' mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, t READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I AGREE TO THE 'TERMS OF THE NOTE. t ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: '." ' (Seat) RECORDATION REQUESTED BY: ORRSTOWN BANK KING STREET OFFICE P.O. BOX 250 SHIPPENSBURG, PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. BOX 250 SHIPPENSBURG, PA 17257 .r, JL, EF~T P. ZIEGLER Li{CORDER OF DEEDS ::,!F, ERLAND COUNTY- [" N§U 19 ?R 1 23 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE dated November 13, 2002, is made and executed between MATTHEW J. NORI, whose addres is 662 WALNUT BOTTOM ROAD, SHIPPENSBURG, PA 17257 (referred to below as "Grantor") and ORRSTOWI BANK, whose address is P.O. BOX 250, SHIPPENSBURG, PA 17257 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, re~eases, confirms and mortgages to Lender all of Grentor's right, title, and interest in and to the following described real property, together with al~ existing or subsequently erected or affixed bui~ings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, ail liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appudenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without liraitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in CUMBERLAND County, Commonwealth of Pennsylvania: SEE ATTACHED The Real Property or its address is commonly known as 6 KOSER RD., SHIPPENSBURG, PA 17257. Grantor presently assigns to Lender all of Grantors right, title, and interest in and to all present and future leases of the Property and all Rents from Property. In addition, Grantor grants to Lender a Uniforra Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS .GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $55,000.00, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Poeseseion and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perforra all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During lhe period of Granlor's ownership of the Property, there has been no use, gecerat~n, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Properly by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Properly shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Greeter's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grunter's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) re~eases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabililJes, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this sec~ion.o.f the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grentor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise, Nule-nce, Waete, Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, rainerala (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements, Grantor shall not demolish or remove any Improvemenls from the Real Properly without Lender's prior written consent. As a condition to the reraoval of any ~mprovements, Lender may require Grantor to make arrangements satisfactory to Lender ~o replace such Improvements with Improvements of at least equal value. Lender's Right to Enter, Lender and Lender's agents and representatives may enter upon the Heai P~ope,ly at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grunter's comCaoce with the terms and conditions of this Mortgage. Compliance with Governraentel Bequlremente, Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities apalicable to the use or occupancy of the Properly. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so"long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addilion to those acls set fodh above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delJnqueocy) all taxes, payroll taxes, special taxes, assessments, wamr charges and sewer service charges levied against or on account of the Properly, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property, Grantor shall maintain the Property free of any liens [~aving priority over or equal to the interest Of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and excepl for tl~e lien of laxes and assessments not due as lurther specJlied in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good leith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. It a lien arises or is flied as a result of nonpayment, Gran~or shall within l¢leen EXHIBIT "C" MORTGAGE (Continued) Page 2 (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lander cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contast, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enfomement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction, Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materiaJmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE, The following provisions relating to insuring the Pmparty are a pad of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property Jn an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and Jn such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or defaulf of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a spacial flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National F~ood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan, Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty, Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Pmberty, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from fha proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Jndebtadness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property frae of all taxes, liens, security interests, encumbrances, and other c~aims, (B) to provide any requirad insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's [ntarasts in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the paJance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. Grantor's obligation to Lender for ali such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The follow~ng provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, tide report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the fei right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forayer defend the title to the Pmparty against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shal~ defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Promises. All promises, agreements, and statements Grantor has made in this Mortgage shall survive the execution and delivery ol this Mortgage, shall be continuing in nature and shall remain in full force and effect until such time as Grantor's Indebtedness is paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proqeeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If ali or any part of the Properly is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action Js requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage, Taxes. The following shall constitute taxes to which this section appries: (1) a specific tax upon this type of Mortgage or upon all or any part ol the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this seclion applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of DetauJt, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety pond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to I 1783r) 020 I IVZORTG~,G E (Continued) Page'3 perfect and continue Lender's security interest in the Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred In perfecting or continuing this security interest. Upon pefauit, Grantor shall not remove, sever or detach the Personal Property ftom the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Additional Authorizations. ~f Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the rndebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Properly. Grantor will pay, if permitted by applicable law, any reasonable ten'nination fee as determined by Lender from time to time. EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failura of Grantor within the time required by this Morlgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Break Other Promleaa. Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided in this Mortgage or in any agreement related to this Mortgage. Falee Statementa. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. Defective Collateralizaflon. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Taking of the Property, Any creditor or governmental agency tries to take any of the Properly or any other of Grantor's property in which Lender has a lien. This includes taking of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in good faith whether the claim on which the taking of the Properly is based is valid or reasonable, and if Grantor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the indebtedness. In the event of a death, Lender, at its option, may, but sha~l not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, tn doing so, cure any Event of Default. Right to Cure. If such a failure is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure: (a) cures the failure within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and'at any time thereafter, Lender at Lender's option, may exercise any one or more of the following rights and remedies, in addition to any o her r ghts or remec~ies provided by [aw: Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Prapedy, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sara, and to collect the Rents from the Properb/and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any pad of the Properly. Nonjudicial Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor sharl become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. B 1783Pg0202 MORTGAGE (Continued) Pag~ z Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the ProperS/. Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any pubJic sale of the PersonaJ Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made, Unless otherwise requlrad by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in coniunction with any sale of the Real Property. Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose any one remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform any of Grantor's obligat~ns under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lenper's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attoroeys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including forecrosura reports), sun/eyors' reports, and appraisal fees and title insurance, 1o the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES. Unless otherwise provided by appJ~cable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder et any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Modgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persons, specifying that the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, tf there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors, It will be Grantor's responsibility to tell the others of the notice from Lender. ADJUSTABLE RATE RIDER. An exhibit, titled 'ADJUSTABLE RATE RIDER," is attached to this Mortgage and by this reference is made a part of this Mortgage just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Mortgage. ADJUSTABLE RATE RIDER. An exhibit, titled 'ADJUSTABLE RATE RIDER," is attached to this Mortgage and by this reference is made a pert of this Mortgage just as if all the provish3ns, terms and conditions of the Exhibit had been fully set forth in this Mortgage. 'MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments, What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by and Interpreted In accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise any right will not mean that Lender has given up that right. If Lender does agree in writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Modgage. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for payment, protest, and notice of dishonor. Seversblllty. If a court finds that any provision of this Mortgage is not valid or should not be enforced, that fact by itself will not mean that the rest of this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Mortgage even if a provision of this Mortgage may be found to be invalid or unenforceable. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enfomeable by Lender and its successors and assigns. Time la of the Essence. Time is of the essence in the performance of this Mortgage. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word "Borrower' means MATTHEW J. NORI, and all other peraons and entities signing the Note. Environmental Laws. The words 'Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Supertund Amendments and Reauthodzation Act of 1986, Pub. L. No. 99-499 ('SARA"), the Hazardous Materials Transportation Act, 4g U.S.C. Section 1801, et seq,, the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or feqersl laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default' mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word 'Grantor' means MATTHEW J. NORI. Guaranty. The word "Guaranty' means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words 'Hazardous Substances' mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances' are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances' also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements' means all existing and futura improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. thdebtednese. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications et, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grentor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means ORRSTOWN BANK, its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in the Note. Mortgage. The word "Mortgage' means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated November 13, 2002, il3 the orJgirlal principal amount of $55,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications et, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of this Mortgage is November 13, 2017. IBK1783PG0203 MQRT, G,AGE (Continued) · Page~ Personal Property. The words *Personal Property* mean all equipment, fixtures, and other articles of personal prope~ now or hereafter owned by Grantor, and now or hereafter aftached or affixed to the Real Prope~; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other dispesi~on of the ProperS. Property. The word "Property* means coltsctively the Real Property and the Personal ProperS. Real Property. The words *Real Property' mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words *Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other Instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word *Rents' means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. ~,~ aLkn°w,~ ~n the pre'ence °f: CERTIFICATE OF RESIDENCE COMMONWEALTH OF PENNSYLVANIA COUNTY OF CL~4BERLAAD I hereby certify, that the precise address of the mortgagee, ORRSTOWN BANK, herein is as follows: KING STREET OFFICE, P.O, BOX 250, SHIPPENSBURG, PA 17257 for Morlgagee I.D,VIDUA' A NOWLED MENT ) ) SS ) On this, the 13th day of November ,20 02 , before me Robert A. Horst , the undersigned Notary Public, personally appeared MA'FI'HEW J. NORI, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein con~ined, . ._ . - = ~) ,: ,. ROBERT A. #0R~o NOblly PO§IIcNot; ry~Public in~d for the State of ' ' ~:-, . ,; > .,~., Manheim Twp., Lancaster County, PA '-. , ,,. : r .. MyComml$$1on Expires Dec. ]], 2003 BKI783PG020 EXHIBIT "A" 6 KOSER ROAD NORq~I NEWTON TOWNSHIP CUMBEK[ AND COUNTY, PA Tax Map No. 30-I 1-0306-007A ALL THAT CERTAIN piece or parcel of land situate in North Newton Township, Cumbel:land County, Pennsylvania, more particularly bounded and described ~s follows, to wit: BEGINNING aE a railroad spike in the center llne of To~rnship Route 330 at corner of lands now or fomaerly of Dana L. Peterscn et ux; thence by said lands of Peterson, South 42 de,tees 05 minutes 30 seconds, West, 231.32 feet to an iron pxn in the property of lands now or formerly of W. Harold ¥ohe; thence by said lands of Yohe, North 68 d~rees 27 minutes 06 seconds West, 130.24 feet to mn existin9 corner fence post; tl]ence by ~ame, North 41 degrees 15 minutes 26 seconds East, 199.35 feet to an iron pin; thence continuing by same, NorZh 65 ode~rees 26 ~uin~5~s 00 ~econds West, 26.19 feet to ~n iron pin at corner of lands now or fonaerly of Norman Z. West; thence by said lands of West, North 42 degrees 05 minutes 30 seconds East, 92.55 ~eet to a railroad spike in the center line of said Township Route 330; thence by said center line of said To~]ship Route, South 45 de~rees 14 minutes 37 seconds East, 150 feot to a railroad spike, the place of BEGINNING. BEIN~ Lot NO. 2 on l~d subdivision for Dana L. ~Peterson, da~ed Harsh 12, 1982 and recorded in the Office of Recorder of Deeds of C~:~erland County, Pe~ulsyl~ia in Plan Book 42, Pa9e 17, Containin9 34,075 square feet, less 3,750 square fes~ reserved for ri~llt-of-way use. ..:=.../" ?.ecorder of Deeds RECORDATION REQUESTED BY: ORRSTOWN BANK KING STREET OFFICE P.O. BOX 250 SHIPPENSBURG, PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. BOX 250 SHIPPENSBURG, PA 17257 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONL ADJUSTABLE RATE RIDER This ADJUSTABLE RATE RIDER is attached to and by this reference Is made a part of the Mortgage, dated November 13, 2002, and executed in connection with a loan or other financial accommodations between ORRSTOWN BANK and MATrHEW J. NORI. This adjustable rata rider will secure Borrower's Adjustable Rate Note (the 'Note") to ORRSTOWN BANK (the "Lender") of the same date and covering the property described in this Security Instrument and located at: THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMIT.~ THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY ADDITIONAL COVENANTS. In addition to the covenants and agreements made In the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an Initial rate of 6.25%. The Note provides for changes In the interest rate and the monthly payments, as follows: (A) Change Dates The Interest rate I will pay may change on the 13th day of November 2009, and on that day every twelve month(s) thereafter. Each date on which my Interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Data, my Interest rate will be based on an Index. The "Index" Is the weekly average yield on United States Treasury securities adjusted to a constant maturity of I year(s), es made available by the Federal Reserve Board. The most recent Index ,~lgure available as of the date 45 days before each Change Date Is called the "Current Index." If the Index Is no longer available, the Lender will choose e new Index which Is based upon comparable Information. The Lender will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Lender will calculate my new Interest rate by adding 4.00 percentage points to the Current Index. The Lender will then round the result of this calculation to the nearest one-eighth of one percentage point (0.125%). Subject to the Ilmtte stated in Section (D) below, this rounded amount of the monthly payment that would be aufflclent to repay the unpaid principal that I am expected to owe et the Change Date In fuji on the maturity date et my new Interest rate In substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Chsngee The interest rate that I am required to pay at the first Change Date will not be greater than two percentage polnta (2.000%) over the original interest rate. Thereafter, my Interest rate wnl never be Increased or decreased on any single Change Date by more than two percentage points (2.000%) from tho rate of Interest I have been paying the preceding twelve month(s). My Interest rate will never be greater than six percentage points ~6.000%) over the original Jntarest rate. (E) Effective Date of Changes My new Interest rate will become effective on each Change Date. I win pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Lender will deliver or mall me e notice of any changes in my Interest rate and the amount of my monthly payment before the effective date of any change. The notice will Include Information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended to read aa follows: Transfer of the property or a Beneficial Interest In Borrower. If all or any part of the Property or any interest In It la sold or transferred (or if a beneficial Interest In Borrower le sold or transferred and Borrower is not a natural person) without Lender'8 prior written consent, Lender may, at Its option, require Immediate payment In full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise le prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise thta option ~f: (a) Borrower caueea to be submitted to Lender Information required by Lender to evaluate the Intended transferee as If a new loan were being made to the transferee; and (b) Lender resonably detarmlnee that Lender's seeurlty will not be Impetred by the loan assumption and that the rtak of a breach of an covenant or agreement In this Security Instrument Is acceptable to Lender. TO the extent permitted by applicable law, Lender may charge a resonable fee as a condition to Lender's Consent of the loan assumption. Lender may also require the transferee to sign an aeeumptlon agreement that Is acceptable to Lender and that obligates the transferee to keep all the promtaee and agreements mede In the Note and In this Security Instrument. Borrrowar will continue to be obligated under the Note and this Security Instrument unleea Lef~der releeeel Borrower In writing. If Leader exercises the option to require Immediate payment In full, Lender shell give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notl;e Is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may Invoke any remedies permitted by this Seeurlty Instrument without further notice or demand on Borrower. Commonwealth of Pennsylvania } County of Cumberland } INDIVIDUAL ACKNOWLEDGMENT SS On this, the 13 day of ['~)v~-.t'~:~r . 20~_~ before me Rc~berl- A . undersigned No~ry Public, ~rsonetly ap~ar~ ~b~W proven) to ~ the person who~ na~ ta subecrl~d to the within Instrum~ and acknowledged that purpose therel~ containS. th wltneeewhereof, lhereunto~tmyhandandofflcletseet. THIS ADJUSTABL~A~E.RIDER IS EXECUTED ON NOVEMBER 13, ~02. BKI783P60206 known to me (or satletact~ he or she executed the same for the NOTARIAl. SEA/. ROBERT A. HORST, Notety Public Manheim Twp., Lancaster Courtly, P,~ My Commission Expires Dec. 1], 2003 ADJUST~B£,E RATE RIDER (Continued) GRANTOR: (Seal) RRSTOWN BANK September 9, 2003 MATTHEW J. NORI 662 WALNUT BOTTOM ROAD SHIPPENSBURG, PA. 17257 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortclacle on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pacles. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the proclram works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counselincl Aqencv. The name, address and phone number of Consumer Credit Counselin.cl Aqencies servincl your County are listed at the end of this Notice. If you have anv (luestions, you may call the Pennsylvania Housin.cl Finance A~encv toll free at 1-800-342-2397. (Persons with impaired hearin.q can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer, EXHIBIT "D" LA NOTIFICACION EN AD JUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): MATTHEW J. NORI PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINALLENDER: 6 KOSER ROAD SHIPPENSBURG, PA. 17257 1520004024 ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of desi.qnated consumer credit counselinq a.qencies for the county in which the propertv is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program, To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Brinq it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 6 KOSER ROAD, SHIPPENSBURG, PA. 17257 IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: JUNE 13TH-~$271.56, JULY 13TH--$471~58, AUGUST 13TH-- $ 471.58 Other charges (explain/itemize): LATE CHARGES--S94.32 TOTAL AMOUNT PAST DUE: $1,309.05 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this $1,309.06. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK A'FI'N: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its ri.clhts to accelerate the mort~la~le debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortcla.cle property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attomeys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are staked against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees wJiJ be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY {30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charqes then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performinq any other requirements under the mortgaqe. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Address: Phone Number: Fax Number: Contact Person: Orrstown Bank P.O. Box 250, 77 East Kinq Street Shil~l~ensbur.ch PA 17257 {717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3'd Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6*h Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3~ Street Waynesboro, PA 17268 (717) 762-3285 SHERIFF'S RETURN CASE NO: 2003-05679 P COMMONWEALTH OF PENNSYLVANIA: COI/NTY OF CUMBERLAND ORRSTOWN BANK VS NORI MATTHEW J - REGULAR DAVID MCKINNEY , Cumberland County,Pennsylvania, says, the within COMPLAINT NORI MATTHEW J DEFENDANT , at 1747:00 at 662 WALNUT BOTTOM ROAD SHIPPENSBURG, PA 17257 MATTHEW J. NORI a true and attested copy of Sheriff or Deputy Sheriff of who being duly sworn according to law, - MORT FORE was served upon the HOURS, on the 31st day of October , 2003 by handing to COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 11.04 Affidavit .00 Surcharge 10.00 .00 39.04 Sworn and Subscribed to before me this ~ ~ day of A.D. ~rothonotary So Answers: R. Thomas Kline 11/03/2003 OBRIEN BARIC SCHERER ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff MATTHEW J. NOR2 662 WALNUT BOTTOM ROAD SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 5679 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: Kindly mark the above-captioned action as having been settled and discontinued without prejudice. Date: Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank CERTIFICATE OF SERVICE I hereby certify that on November--~'t/'~, 2003, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Discominue, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Matthew J. Nori 662 Walnut Bottom Road /3 Shippensburg, Pennsylvania 17257 ,. / ] David A. Baric, Esquire