Loading...
HomeMy WebLinkAbout08-1486ORRSTOWN BANK, Plaintiff v GIUSEPPE P. BASILE, SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- lq & CIVIL TERM MORTGAGE FORECLOSURE 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 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 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 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 2008- /Y Q(p CIVIL TERM GIUSEPPE P. BASILE, MORTGAGE FORECLOSURE SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, Defendants COMPLAINT NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within complaint and, in support thereof, sets forth the following: 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 17257. 2. Defendants, Giuseppe P. Basile and Sebastian Anile are the general partners of and do business as Pino's Pizza. 3. Giuseppe P. Basile is an adult individual with a residence address of 113 East Main Street, Newville, Cumberland County, Pennsylvania 17241. 4. Sebastian Anile is an adult individual with a residence address of 20 Westgate Drive, Mt. Holly Springs, Cumberland County, Pennsylvania 17065. 5. Pino's Pizza is a Pennsylvania partnership with its regular place of business located at 1-3 East Main Street, Newville, Cumberland County, Pennsylvania 17241. 6. By Deed dated March 15, 1999, Giuseppe P. Basile and Sebastian Anile t/d/b/a Pino's Pizza as Mortgagors, made, executed and delivered a written Promissory 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 County Office of the Recorder of Deeds of Cumberland County on March 16, 1999, at Cumberland County Book 1526, Page 969, et seq., all of which pages are incorporated herein by reference and made a part hereof. 7. A true and correct copy of the aforesaid Promissory 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." 8. Defendants defaulted under the terms and conditions of the Mortgage and Promissory Note by failing to make payment of principal and interest due since May 15, 2007 and every month thereafter. 9. Under the terms of the Mortgage and Promissory Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Promissory Note or Mortgage are not met then the entire indebtedness owing on the Mortgage and Promissory Note obligation shall become due and payable immediately at the declaration of Mortgagee. 10. Plaintiff as Mortgagee has exercised its option and declared the entire unpaid balance of principal and interest as immediately due and owing. 11. The following amounts are presently due on the said Mortgage and Promissory Note: Principal $126,774.10 Interest to 02/27/08 $ 10,527.12 (per diem $35.77) Late charge $ 663.89 Reasonable attorneys fees $ 12,677.41 as fixed by Plaintiff for purposes of this Complaint (actual and anticipated to 10% of principal) TOTAL $150,642.52 12. Giuseppe P. Basile and Sebastian Anile, are the present record owners and real owners of the premises described in Exhibit "A." 13. No notice under Act 6 or Act 91 is required as the principal debt was in excess of $50,000.00 and the property given as security is not eligible under Act 91. WHEREFORE, Plaintiff demands judgment in Mortgage Foreclosure in the sum of $150,642.52 plus interest thereafter at the contract per diem from October 20, 2006 and the costs against Giuseppe P. Basile and Sebastian Anile, Mortgagors and real owners, and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibit "A" hereto. Respectfully submitted, 7 O'B N, BAF C & HE David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/orrstownban Wpinos/complaint2.pld 02/2812008 16:59 7172495755 CBS PAGE 06 VER)[)F'ZCAYION The statements in the foregoing Complaint are based upon information that has been assembled by my attorney in this litigation. The language of the statements is not my own. I have read the statements; and to the extent that they are based upon information that I have given to my counsel, they are true and correct to the best of my knowledge, information, and belief I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. § 4904 relating to unsworn falsi.flcations to authorities. DATE: a a Betsy J. Smith, Collector Orrstown Bank ALL THAT CERTAIN tract of land situate at the northeast corner of Main and High Streets in the Borough of Newville, Cumberland County, Pennsylvania, bounded and described as follows: ON the South by main Street; on the East by property formerly of John Reed now or formerly of Fred Burkholder; on the North by property now or formerly of Henry Jones; and on the West by High Street. CONTAINING 45 feet in front on Main Street and extending northwardly therefrom along the eastern line of High Street a distance of 103 feet 10 inches, more or less, to the said property now or formerly of Henry Jones, and having thereon erected buildings known as and numbered as 1-3 East Main Street. BEING the same premises which Lucretia Ott, et ex, by deed dated July 16, 1987, and recorded July 21, 1987, in Deed Book U, Volume 32, Page 864, granted and conveyed to Giuseppe P. Basile and Joan P. Basile, husband and wife, grantors herein. EXHIBIT "A" PINO'S PIZZA (Tim: j 1-3 LAST MAIN ST, NEWVILLE, PA 17241 Lender: ORRSTOWN BANK Stonehedge Office P.O. Box 26o Shtppenaburg, PA 17257 Principal Amount: $146,750.00 Initial Rate: 9.500°,6 Note! Date of March PROMISE TO PAY, PINO'S PIZZA (-Borrower') promises to pay to ORRSTOWN BANK ("Lender"), or order, in alt of the 15, 1999 States of America, the principal amount of One Hundred Forty SIX Thousand Seven Hundred Fifty & ogf100 Dollars (Stets,, together wNdh interest on the unpaid principal balance from March 15, 1999, until paid In full. The Interest rate Will not Inc PAYMENT. Subject to any payment changes resulting from changes In the Index, Borrower Will pay, 0 .00016. made, In 240 payments of $1,0111.67 each payment. Borrower's first a care d, lit i is demand an the same day of each month after that. Borrower's final payment will b payment Is due e due on March April 16, 15, 2019, and will be for all damehmama are due accrued Interest not yell paid. Payments Include principal and interest. The annual interest rate for this Note I. co principal and all applying the ratio of the annual Interest rate over a year of 280 days, multiplied by the outstanding principal computed on i 3d by the basis; that a by Is. days the Principal balance Is outstanding. Borrower will pay Lender at Lender's address shown above or t such other piecee as Lender may desig?Af in writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid Interest, than to principal, and any remaining amount to any unpaid collection costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note Is subject to change from time to time based on changes In an independent index which Is the WALL STREET PRIME (the "Index"). The Index Is not necessarily the lowest rate charged by lender on its loans. If the Index becomes unavailable during tha term of this loan, Lender may designate a substitute index after notice to Borrower. Lender will loll Borrower the current Index rate upon Borrower's request. Borrower understands that tender may make loans based on other rates as well. The Interest rate change will not occur more often then each day. The Index currently Is 7.760% per annum. The interest rate to be applied to the unpaid will be at a rate of 1.750 percentage points over the Index, adjusted It nec e principal balance of this Note an Initial rate of 9.500% per annum. Notwithstanding any other provision o No e? he maximum rate limitation varlable Interest ratedor rates prroovvided tomtit thiiss Note will be subject to the following maximum rate. NOTICE: Under no circumstances will the interest rate on this Note be more then the lesser of 18.000% per annum or the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: (a), increase Borrower's payments to ensure Borrower's loan will pay off by its original Anal maturity date, (b) increase Borrower's payments to cover aocruing Interest, (c) Increase the number of Borrower's payments, and (d) continue Borrower's payments at the same amount and increase Borrower's final payment. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it Is due. by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the paymenEarly will not, unless hedule.nRa her, they will reduce the principal balance due and may result in Borrower making fewer payments. LATE CHARGE. If a payment is 16 days or more late, Borrower will be charged 6.000% of the regularly scheduled payment or $60.00, whichever Is leas, DEFAULT. Borrower Will be In default If any of the following happens: (a) Borrower fails to make any payment when due. (b) Borrower breaks any promise Borrower has made to Lender, or Borrower fails to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or In any other agreement or loan Borrower has with Lender. (c) Borrower defaults under any loan, extenslon of credit, security agreement, purchase or sales agreement, or an other a may materially affect any(tif Borrower's property or Borrower's ability to repay this Note or perform Borrows s obligations unother der this Note organ of the Related Documents. (d) Any representation or statement made or furnished to Lender by Borrower or on Borrower's behalf Is false or misleading In any material respect either now or at the time made or furnished. (e) Any partner dies or any of the partners or Borrower becomes Insolvent, a receiver Is appointed for any pact of Borrower's property, Borrower makes an assignment for the benefit of creditors, or any pro either by Borrower or against Borrower under any bankruptcy or Insolvency laws. (f) Any creditor tries to take any of Borr sceedl? Is commenced h Lender has a ifen or security Interest. This includes a garnishment of any of Borrower's accounts with Lender. (g) Any of the verents described In tthls default section occurs with respect to any general partner of Dorrower or any guarantor of this Note. (h) A materiel adverse change occurs In Borrowers financial condition, or Lender believes the prospect of payment or performance of the Indebtedness Is Impaired. If any default, other than a default In payment, Is curable and If Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, It may be cured (and no event of default will have occurred) If Borrower, after receiving written notice from Lender demanding cure of such default: (a) cures the default within fifteen 15 days; or immediately Initiates steps which Lender deems in Lender's sole discretion to be sufficient to cur h eidefault and therleafter cmore than fin (16) ontinues and completes 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 Borrower will pay that amount. Lender may hire. of pay someone Pisa to help collect this Note If Borrower does not pay. Borrower also will pay Lender that amount. This Includes, subject to ay omits under applicable law, Lenders attorneys' fees and Lenders legal expenses whether or not there Is a lawsuit, Including attorneys' fees and legal proceedings {Including efforts to modify or vacate any automatic stay or Injunction), appeals, and any anticipated post-judgment meet expenses for seees. If not prohibited by applicable law, Borrower also will pay any court costs, In addition to as other sums provided by law. If judgment Is entered in connection with this Note, Interest will continue to accrue on this Note after judgment at the Interest rate applicable to this Note at the time judgment Is entered. This Note has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania, if there Is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, the Commonwealth of Pennsylvania. This Note shall be governed by and construed In accordance with the lays of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. Borrower grants to Lender a contractual security Interest In, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrowers right, title and Interest in and to, Borrower's accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly with someone else and all accounts Borrower may however &I I and Keogh accounts, and all trust accounts for which the grant of a security interest would be proh bitednby In the law fuBorr, weruaut orizes L nder,tto he extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts. COLLATERAL. Tt;is Nate Is secured by a Mortgage dated March 15, 1999, to Lender on real property located in CUMBERLAND County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby Incorporated and made a part of this Note. EXHIBIT "B" PROMISSORY NOTE 03 -1999 ' PROMISSORY NOTE Wan. No (Continued) Page GENERAL PROVISIONS. This Note is payable on demand. The inclusion of spelt default pfoftons or rlphti of Lwl&r right to declare payment Of this Note on Its demand. Lender may delay or forgo enforcing any of Its dp?? I`Wiedha Under Ift Nab ? dtunl without Wtand ?n0 ft them. Borrower and any other person rsoon who signs, guarantees Or endorses this Note, to the axtanl a1 ?? payment, protest and nonce of dishonor. Upon any change In the terms of this Note, and unless ottwrwlaa itr signs this Note, whether as maker, guarantor, accommodation maker or endorser, shll be released from + 0. no p?ryr who may renew Or.et:tand (repeatedly and for an to h? s1lClt parties ague V* Leader upon or parted Lender's any ? of time) this loan, or release any PedY. Pam, or or Oak** at wipa. kv to _ secu anyone. a sut:h.Pattles also Interest In the odtatarah, and take any other action deemed 11e09ssary by Lander y No consent of or reft b modification 13 made, agree that Lender may Modify this town without the consent of or nolloe to anyone other than the party with whom the PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIAmE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWUMOES RECEIPT OF A CONIRzM COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: PINO'S PIZZA By: GIUSEP P. , aneral Partner moo, ASTIAN Al , General P r -0m,vor,iiabim Room ,.r i/v ORRSTOWN BANK P.O. BOX 250 Shippensburg, PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. BOX 250 Shippensburg, PA 17257 ROBERT ('. 21LInLER RccoFZGEr; OF DEEDS CUMBERL-OiD COU14TY-PA '99 nflR 16 TM 3 33 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS IS A PURCHASE MONEY MORTGAGE THIS MORTGAGE IS DATED MARCH 15, 1999, between PINO'S PIZZA, whose address Is 1-3 EAST MAIN ST., NEWVILLE, PA 17241 (referred to below as "Grantor"); and ORRSTOWN 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, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, Improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant 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 limitation all minerals, oil, gas, geothermal and similar matters, located In CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE ATTACHED The Real Property or its address is commonly known as 1-3 EAST MAIN ST., NEWVILLE, PA 17241. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security Interest in the Personal Property and Rents. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage. Terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Grantor. The word "Grantor" means PINO'S PIZZA. The Grantor is the mortgagor under this Mortgage. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor 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 Lender Is the mortgagee under this Mortgage. Mortgage. The word "Mortgage" means this Purchase Money Mortgage between Grantor and Lender, and includes without limitation all assignments and security Interest provisions relating to the Personal Property and Rents. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Real Property, this Security Instrument shall be a purchase money mortgage under 42 P.S. Section 8141. Note. The word "Note" means the promissory note or credit agreement dated March 15, 1999, In the original principal amount of $146,750.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of this Mortgage is March 15, 2019. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Persona( Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all subslitLtions 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 disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the property, interests and rights described above in the "Grant of Mortgage" section. Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and .documents, whether now or. hereafter existing, executed in connection with the Indebtedness. Rents. The word '"Farts" rnea ire Lill pr3sent and future rents, revonucs, inccmg?. !--ups, roya'ties, profits, and other benefits derived from the Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. 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: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal" "release," and "threatened release" as used In this Mortgage, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. CCERCLAJ, the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA'), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S. s Section 6901, et seq., or other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The "hazardous waste" and "hazardous substance" shall also Include, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, under, about or from the Property; (b) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (I) any use, generation, omanufacture, sto?}rQage, treatment, disposal, release, or threatened release of any by, BOUK th tPJ?:,O Paid' n??hq wners or occupants of the Property or (U) any actual or hazardous waste or substance on, under, about or from EXHIBIT 'C11 •03-15-'1999 MORTGAGE Page Loan No (Continued) threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, about or from the Property and (11) any such act* shall be conducted In compliance with all applicable federal, state, and local laws, regulations and ordinances, including without tirnitafion those laws, regulations, and ordinances described above. Grantor authorizes Lender and Its agents to enter upon the Property to make such Inspections and tests, at Grantor'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 re?ponsibiNy or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantors due diligence In Investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases 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 (b) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender my directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the properties. The provisions of this section of the Mortgage, Including the obligation to Indemnity, 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. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the I 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, minerals (including oil and gas), soil, gravel or rock products without the prior written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Its agents and representatives may enter upon the Real Property at all reasonable rimes to attend to I Lender's interests and to Inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter In effect, of all governmental authorities applicable to the use or occupancy of the Property, Including without limitation, the Americans With Disabilities Act. 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 nor leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at its option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without the Lender's prior written consent, of all or any part of the Real Property, or any Interest In the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or Interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold Interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial Interest in or to any land trust holding fitie to the Real Property, or by any other method of conveyance of Real Property Interest. If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership Interests or limited liability company Interests, as the case may be, of Grantor. However, this option shall not be exercised by Lender If such exercise Is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Mortgage. Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due an claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the Interest of Lender under this Mortgage, except for the Ilan of taxes and assessments not due, and except as otherwise provided in the following paragraph. Right To Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's Interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shell within fifteen (15) days after the lien arises or, If a Ilan is filed, within fifteen (15) days after Grantor has notice of the Ming, secure the discharge of the lion, or If requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to tender 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 Non. In any contest, Grantor shall defend Itself and Lender and shall satisfy any adverse judgment before enforcement 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 notiy 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, materialmen'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 Property are a part 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 in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional Insureds In such Ilebltity Insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business Interruption and bollar Insurance as Lender may require. Policies shall be written by such Insurance companies and in 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 cencM or dminished without a minlmum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the Insurer's Ilabgty for !allure to give such notice. Each irsurance•poliry also shall Include an endorsement providing that coverage in favor of Lender will not be Impaired In any way by any act, omission or default of Grantor or any other parson. Should the Real Property at any tine become 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 for the full unpaid principal balance of the loan, up to the maximum policy Ilmits set under the National Flood Insurance Program, or as otherwise required by tender, and to maintain such Insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notity 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 Its election, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, 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 shalt, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the 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 alter 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 Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor. Unexpired Insurance at Sale. Any unexpired Insurance shall Inure to the benefit of, and pass to, the purchaser of the Property covered by this Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage, or at any foreclosure sale of such Property. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (a) the name of the insurer; (b) the risks Insured; (c) the amount of the policy; (d) the property Insured, the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor shall, upon request of Lender, have an Independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. EXPENDITURES BY LENDER. If Grantor falls to comply with any provision of this Mortgage, or If any action or proceeding Is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for In the Note from the date Incurred or paid by Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of MO Note and be apportioned among and be payable with any Installment payments to become due during either (t) the term of any applicable Insurance k-6- ... 1..1 ,.,,. 4-4-4 - .. ?...n... -_,f urhlrh will ha 4,- nnif r%avahta at !ha NnialS mahlrlty Thle. ` 03-15=1999 MORTGAGE Page Loan No (Continued) Mortgage also will -.%wure payment of these amounts. The rights provided for in this paragraph shall be In addition to any other rights or any rered to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Londe from any remedy that it otherwise would have had. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortga foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following 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, flee and dear 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 fide opinion issued In favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full 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 forever defend the title to the Property 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 shall 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. CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property 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. Proceedings. If any proceeding in condemnation is tiled, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may to necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shad be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Its own choke, and Grantor wig deliver or cause to be delivered to Lender such Instruments as may be requested by it from time to time to permit such participation. 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 is 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 Imitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (a) a specific tax upon this type of Mortgage or upon ail or any part of the Indebtedness secured by this Mortgage; (b) a specific tax on Grantor which Grantor is authorized or requited to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) 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 section applies Is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default (as defined below), and Lender may exercise any or all of Its available remedies for an Event of Default as provided below unless Grantor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above In the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond 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 or other personal property, 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 perfect and continue Lender's security interest In.1he Rents and 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 default, Grantor shall assemble the Personal 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. 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; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney4n-fact 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 (a) the obligations of Grantor under the Note, this Mortgage, and the Related Documents, and (b) 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 agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses Incurred In connection with the matters referred to In this paragraph. Attorney-In-Fact. If Grantor falls 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 appoints Lender as Grantor's attorney4n-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to In the preceding paragraph. FULL PERFORMANCE. If *Grantor pays all the Indebtedness 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 Property. Grantor will pay, If permitted by applicable law, arty reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default's under this Mortgage: Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or Insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Compliance Default. Failure of Grantor to comply with any other term, obligation, covenant or condition contained in this Mortgage, the Note or In any of the Related Documents. Default In Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ablifty to repay the Note or Grantor's ability to perform Grantor's obligations under this Mortgage or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Mortgage, the Note or the Related Documents is false or misleading in any material respect, either now or at the fire made or furnished. Defective Collateralizatlon. This Mortgage or any of the Related Documents ceases to be In full force and effect (Including failure of any collateral documents to create a valid and perfected security Interest or lien) at any time and for any reason. Death or Insolvency. The dissolution or termination of Grantor's existence as a going business or the death of any partner, the Insolvency of Grantor, the appointment of a receiver for any part of Grantor's properly, 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. Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply -03-15-1999 MORTGAGE Loan No (Continued) Page 4 1 proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to I Lender. 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 of any of the Indebtedness or any Guarantor dies or becomes Incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Lender, at its option, may, but shall 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, In doing so, cure the Event of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness Is Impaired. 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 any Event of Default and at any time thereafter, Lender, at Its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Subject to applicable law, Lender shall have the right at Its option without notice to Grantor 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 designates Lender as Grantor's attorney-in-fact 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 Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property 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 part of the Property. Nonjudlclal 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 nonjudicial 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 shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) 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. 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 Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the tine after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable low, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Mortgage after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage. 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 on any appeal. Whether or not any court action Is involved, all reasonable expenses Incurred by Lender 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 from the date of expenditure until repaid at the rate provided for in the Note. Expenses covered by this paragraph Include, without limitation, however subject to any Omits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there Is a lawsuit, Including attorneys' fees 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 foreclosure reports), surveyors' reports, and appraisal fees, and title Insurance, to the extant permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Mortgage shall be in writing, may be sent by lelefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationality recognized overnight courier, or, If mailed, shall be deemed effective when deposited In the United States mall first class, certified or registered mail, postage prepaid, directed to the addresses shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. All coplss of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. For notice purposes, Grantor agrees to keep Lender Informed at all limes of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given In writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Repo?'ts. If the Property Is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shag require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made In connection with the operation of the Property. Applicable Law. This Mortgage has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania. This Mortgage shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 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. Merger. There shall be no merger of the Interest or estate created by this Mortgage with any other interest or estate In the Property of any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Multiple Parties. All obligations of Grantor under this Mortgage shall be joint and several, and all references to Grantor shag mean each and every Grantor. This means that each of the persons signing below is responsible for all obligations In this Mortgage. Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be Invalid or unenforceable as to any person or - ,-I,A - r.. ,,,.... ?. ?.. - rn -1 nlV.nr n --' 11 nirn.?m?r??^ne It foae1h1p AMV CUrh • 03-15-1999 MORTGAGE Page Loan No (Continued) offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, If the offending provision cannot so modified, it shall be stricken and all other provisions of this Mortgage In all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding uE and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Property becomes vee In a person other then Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or Ilablitty under Indebtedness. Time Is of the Essence. Time is of the essence in the performance of this Mortgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right stall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transactlora. Whenever consent by Lender is required In this Mortgage, the granting of such consent by Lender in any Instance shall not constitute continuing consent to subsequent instances where such consent is required. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SINNED AND SEA4ED BY THE UNDERSIGNED. GRANTOR: PINO'S PIZZA } By: 4 TIAN ANILE, General Partner Signed, acknowl apd Bred In thed3of: X Witness eF? X l l Witness .If .1e W Signed, acknowledged and delivered in the presence of: X Witness X Witness CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, ORRSTOWN BANK, herein is P.O. BOX 250, Shlppensburg, PA 17257 or Agent for Marlgages PARTNERSHIP ACKNOWLEDGMENT ,11 1n1 No" iai Seal STATE OF v ??, ) I.Aitzl N Morriss a. NAM Nf r 10 + I ss Carlisle Bore, Cwnbetl .rid Coin , .,`,?O It `? • ?y`;'•.,• My Commission Exoires ! %oc.15, c` ?? ,.• 4 i,1,(Q, •. vY1 /* ; O IautAds$ ` ., • M Y t' COUNTY OF s 6 ama ) ??trr(g6"?r Nurln$yl?anla Association ?t ?N. ?v 00 )INA On this, the day of? , 19_] , before me n ; undersigned Notary Public, personally appeare GIUSEPPE P. BASILE and SEBASTIAN ANILE who acknowledged the 'Iq %0C designated agents of PINO'S PIZZA, a Pennsylvania partnership, and that they as such partners or designated agents, lwr6. 10'executed the foregoing Instrument for the purposes therein contained by signing the name of the partnership by themselves as (diiilgn?jetl agents. In witness whereof, I hereunto set my hand* and official seal. Notary ubiic In and for the State of LASER PRO, Reg. U.S. Pat. 3 T.M. Off., Ver. 3.26b (c) 1999 CFI ProServIess, Inc. All rights reserved. IPA-003 0555%CL.LNI B00Ki526?AGE x973 1 ? C end Number Description schedule ALL THAT CERTAIN tract of land situate at the northeast corner of Main and High Streets in the Borough of Newville, Cumberland County, Pennsylvania, bounded and described as follows: ON the South by main Street; on the East b of John Reed and now or formerly of Fred Burkholder; onttheo orthy by property now or formerly of Henry Jones; and on the West by High Street. CONTAINING 45 feet in fronton Main Street and extending northwardly therefrom along the eastern line of High Street a distance of 103 feet 10 inches, more or less, to said property now or formerly of Henry Jones, and having thereon erected buildings known as and numbered 1-3 East Main Street. BEING the same premises which Lucretia Ott, et ux, by deed dated July 16, 1987, and recorded July 21, 1987, in Deed Book U, Volume 32, Page 864, granted and conveyed to Giuseppe P. Basile and Joan P. Basile, husband and wife, grantors herein. ,sSl .. .. t?+, .?•..:.. ?rS 01 - Pennc)3Vcs11Z -Cl T, `r i:.n,. 86 40 L;y •! ;` i? , ? ?? ..z I ; .F?? oiJ.ce for the reco 'n of Deeds 1 R• • 1 A •w?F1 •sKand County .. .144 of -1, G 1 r`` P ''C?a"eGriis!e an daoH 6 I A 353834 9 Recor er • gnnk t .r,?ReAnt .07A r`?y? t 4 CASE NO: 2008-01486 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS BASILE GIUSEPPE P ET AL BRIAN BARRICK Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon BASILE GIUSEPPE P the DEFENDANT at 1328:00 HOURS, on the 6th day of March , 2008 at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 by handing to GIUSEPPE BASILE 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 18.00 Service .00 Postage .58 Surcharge 10.00 31Iq f os 0)7-" 00 28.58 Sworn and Subscibed to before me this day So Answers; R. Thomas Kline 03/17/2008 OBRIEN BARIC SCHERER By: /&? ? 0 Deputy Sheriff of A. D. SHERIFF'S RETURN - REGULAR CASE NO: 2008-01486 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS BASILE GIUSEPPE P ET AL BRIAN BARRICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon PINO'S PIZZA the DEFENDANT , at 1328:00 HOURS, on the 6th day of March 2008 at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 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 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 3?19?oQ ? 16.00 Sworn and Subscibed to before me this day of , So Answers: R. Thomas Kline 03/17/2008 OBRIEN BARIC SCHERER By: Deputy Sheriff- A. D. SHERIFF'S RETURN - REGULAR CASE NO: 2008-01486 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS BASILE GIUSEPPE P ET AL ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon ANILE SEBASTIAN the DEFENDANT , at 1255:00 HOURS, on the 14th day of March at ONE COURTHOUSE SQUARE CARLISLE, PA 17013 by handing to SEBASTIAN ANILE 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 6.00 Service .00 Affidavit .00 Surcharge 10.00 n 00 3'19108' `-/?^'- 16. 00- Sworn and Subscibed to before me this day of So Answers: R. Thomas Kline 03/17/2008 OBRIEN BARIC SCHERER B A.D 2008 ORRSTOWN'BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 2008-1486 CIVIL TERM GIUSEPPE P.I' BASILE, MORTGAGE FORECLOSURE SEBASTIAN NILE t/d/b/a Pino's izza and PINO'S PIZZA, and UNITED STATES OF AMERICA, c/o UNITED STATES ATTORNEY : U.S. COURT OUSE MIDDLE DIS RICT OF PA SUITE 220, F DERAL BUILDING 228 WALNU STREET HARRISBURG, PA 17108 Defendants NOTICE You h ve 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 o, 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 HOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET ORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HI G A LAWYER. IF YOl TO PROVIDE LEGAL SER` f CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER ICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN DANK, Plaintiff V. GIUSEPPE P. BASILE, SEBASTIAN ILE t/d/b/a Pino's Pizza. and PINO' S PIZZA, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE and UNITED STATES OF AMERICA, c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants III AMENDED COMPLAINT NOW comes Plaintiff Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER and files the within complaint and, in support thereof, sets forth the following: 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 l7257. 2. and do busine 3. Main Street, I Defendants, Giuseppe P. Basile and Sebastian Anile are the general partners of as Pino's Pizza. Giuseppe P. Basile is an adult individual with a residence address of 1-3 East Cumberland County, Pennsylvania 17241. 4. Sebastian Anile is an adult individual with a residence address of 20 Westgate Drive, Mt. Hokly Springs, Cumberland County, Pennsylvania 17065. 5. Pino's Pizza is a Pennsylvania partnership with its regular place of business located at 1-3 East Main Street, Newville, Cumberland County, Pennsylvania 17241. 6. By Deed dated March 15, 1999, Giuseppe P. Basile and Sebastian Anile t/d/b/a Pino's Pizza as Mortgagors, made, executed and delivered a written Promissory 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 County Office of the Recorder of Deeds of C berland County on March 16, 1999, at Cumberland County Book 1526, Page 969, et seq., all of which pages are incorporated herein by reference and made a part hereof. 7. A true and correct copy of the aforesaid Promissory Note is attached hereto and made a part hereof as Exhibit "B." A true and correct copy of the aforesaid recorded Mortgage is attached here I, and made a part hereof as Exhibit "C." 8. Defendants defaulted under the terms and conditions of the Mortgage and I-te by failing to make payment of principal and interest due since May 15, 2007 Promissory NN and every month thereafter. 9. Under the terms of the Mortgage and Promissory Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Promissory Note or Mortgage are not met then the entire indebtedness owing on the Mortgage and Promissory Note obligation shall become due and payable immediately at the declaration of Mortgagee. 10. I Plaintiff as Mortgagee has exercised its option and declared the entire unpaid balance of pribncipal and interest as immediately due and owing. 11. Defendant, arose by rea: Cumberland Recording N 12. Note: 13. owners of the Defendant, United States of America, has filed the following tax lien against the usevve P. Basile: (a) Recording Number 20-4325 FTL in the amount of $17,055.51, which lien i of unpaid taxes; notice of this lien was filed in the Office of the Prothonotary for ounty by the Pittsburgh Office on August 6, 2002. A true and correct copy of 02-4325 FTL is attached hereto as Exhibit "D" and made a part hereof. The following amounts are presently due on the said Mortgage and Promissory Principal $126,774.10 Interest to 02/27/08 $ 10,527.12 (per diem $35.77) Late charge $ 663.89 Reasonable attorneys fees $ 12,677.41 as fixed by Plaintiff for purposes of this Complaint (actual and anticipated to 10% of principal) TOTAL $150,642.52 Giuseppe P. Basile and Sebastian Anile, are the present record owners and real described in Exhibit "A." 14. No notice under Act 6 or Act 91 is required as the principal debt was in excess of $50,000.00 and the property given as security is not eligible under Act 91. Plaintiff demands judgment in Mortgage Foreclosure in the sum of $150,642.52 plus interest thereafter at the contract per diem from February 27, 2008 and the costs against Giuseppe P. Basile and Sebastian Anile, Mortgagors and real owners, and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibit "A" hereto. Respectfully submitted, O' , BALI & C E 1 David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 I verij correct to the A. Baric, Esq as well as doi VERIFICATION that the statements made in the foregoing Amended Complaint are true and pest of my knowledge, information and belief. This verification is signed by David ire, Attorney for Plaintiff and is based upon the statements provided by Plaintiff, anents reviewed by the undersigned as attorney for Plaintiff. This verification will be substituted and ratified by a verification signed by the Plaintiff who is presently unavailable to sign said veri cation. I undersigned that false statements herein are made subject to penalties of 18 Pa.C.S. §4904, relating to unsworn falsific ' s to authorities. a David A. Baric, Esquire Dated: v ALL THAT C RTAIN tract of land situate at the northeast comer of Main and High Streets in the Borough of ewville, Cumberland County, Pennsylvania, bounded and described as follows: ON the South b main Street; on the East by property formerly of John Reed now or formerly of Fred Burkholde ; on the North by property now or formerly of Henry Jones; and on the West by High Street. CONTAINING 45 feet in front on Main Street and extending northwardly therefrom:along the eastern line of igh Street a distance of 103 feet 10 inches, more or less, to the said property now or formerly of enry Jones, and having thereon erected buildings known as and numbered as 1-3 East Main Stre . BEING the say July 21, 1987, Basile and Joe premises which Lucretia Ott, et ex, by deed dated July 16, 1987, and recorded i Deed Book U, Volume 32, Page 864, granted and conveyed to Giuseppe P. P. Basile, husband and wife, grantors herein. EXHIBIT "A" PROMISSORY NOTE ' References in the area are for Lsnde"s use only and do not Ilmit Bxs Noicam of thN dwAnar l to Borrower: MP 'a MN:) Lender: ORRSTOWN SANK AST MAIN IT. Stomehadge 011106 PA 17241 P,O. Box 260 Shtpp6neburp, PA 17187 Principal Amount: $146,750.00 Initlal Rate: 9.500% Date of Note: March 15,199! PROMISE TO PAY. PI States of Aroefka, the interest on tffa u n"M PAYMENT. Sutn(ect to tnads, In 210 psymentr genre day o? sash Merest not yN pad. to applying the ratio of the days the principal balan in writing. Union other remaining emoud b am, VARIABLE INTERESTI Is the WALL STREET f unavailable during IN t rats upon Borrower's re more often than each sir will be at a rata of 1.76 an total rate of 9300! Note will be subled to 18.000% per annum or or mss of the followin Borrowers payments to amount and increase Bc PREPAYMENT. BOnaM by Lender In writing, rot principal balance due au LATE CHARGIL It a pr Is lees. D'S PIZZA Cearowerl ptornlMS to pay to ORRSTOWN BANK (%sn0w*h or order, b Walltl 1110ney of the Untied t wqW amount of Oro Hundred Forty Sbt Thousand Bevan Hundred I=My A 0100 dopers (4144,700,00), togepnar with 1?cipM balance from March 15, 1999, until pad In full. The Interest rate wilt no?ri psymeM changes resulting it m changes In the Index, Borrower wilt pay no don" to N $1,151.47 own payment. Borrower's first payment Is due April 15,1994, AM IN *mmqM psymenits am due on onth after that. Bonowwer's ltd payment Will be due On March 15, 2019, end Will be for all p lectpal and all aotirtred rymsnts Include principal and IMerest. The annual Interest rate for this Not6 Is computed on a 315ft basis; that is, by nnual interest rate over a year of 260 days, multiplied by the outstanding principal balance, multiplied by the fteaW number of Is outstanding. Borrower will pay lender at Landers address shown above or at such other place as Lender may designate rc spread or required by appticrtble law, payments will be applied first to accrued unpad Interval, than to principal, and any unpaid collection rests and late charges. ?TL The Interest rate on this Note is subject to change Rom lime to time based on changes in an independent Index which IME (the "Inclwt". The Index is not necessarily the lowest rate charged Lander on fit loans. It the index becomes m of this loan, Lender may designate a substitute Index altar notice to Borrower. Lander will iii Borrower the current Index mL Borrower understandv that Lender may make loans tlesed on other rates as wag. The Interest rata dame will not occur . The Index cumnty Is 7.760% per annum. The into" rate to be applied to The unpold al balance of #fla Note percentage points over the index, adjusted u necessary for the maxfa+um role Ianilallon described below, reautttng If par annum. Notwithstanding any other provision of this Note, the vertable Interest rate or rates provided for In no he following nheWrtfum rate. NOTICE: Under no circumstances win the interest rata on this Note be more than the lesser of a maximum rote allowed by applicable law. Whenever increases occur in the Intetest rats, Lander, at its option, may do am (a)* Wawa Borrower's payments to ensure Borrowers loan will pay off by its original Anal mahnity date, (b) Incress over accruing Interest, (c) Increase the number of Borrowers payments, and (d) continue Sonowar's payments at the same n>fh Wo final payment r may pay without penalty all or a portion of the amount owed earlier than N It dus. Early payments will not, unless agreed to we Borrower of Borrowers obf0tlon to continue to make payments under the payment schedule. Rather, they will reduce the I may result in Borrower maldng fewer payments. mwnt is 1s days or mars late, Borrower will be charged 6.000% of the regularly scheduled payment or $50.00, whichever DEFALLT. Borrower be In dNaull a any of the lotbwieg happens: (a) Borrower la is to make any payment when due. (b) Borrower breaks any promise Borrower has de b Lender, or Borrower tats to comply with or to perform when due any otter term, obligalm, covenant, or condition contained In ihiv Note or agreement related to this Note, or In any other agreement or ban Borrower has with Lander. (o) Borrower defaults under any loan, eDft6slon of L security agreement, purchase or sales agreement. or any other agreement, In favor of any other crsdkor or person that may matey affect an • Related Documents (d) Borrower's property or Borrowers ability to repay this Note or perform obfigallons, under fhb Mote or any of the representation or statement made or furnished to Lande b B B b h f N I l l . materiel room,, sither r y orrower or on orn s a e se or mis a eading In any s or at the time shade or fumtshed. (e) Any partner dies or any of the partners or Harrower becomes Insolvent, a receiver Is appointed for any part Borrowers property, Borrower makes an assignment for the benefit of creditors, or any proceeding Is commenced enter by Borrower or against under any bankruptcy or Insolvency laws. (1) Any creditor tries to take any of Borrowers properly on or in which Lender has a Von or security I . This Includes a garnishment of any of Borrower's aooounts with Lender. (g) Any of the events described In this default section occurs with to any general partner of Borrower or any guarantor of this Nola- (h) A material adverse change occurs In Borrower's financial condition, or Le der believes the prospect of payment or performance of the Indebtedness Is Impaired. If any default. other than deiault In payment. Is curable and It Borrower has not been given a notice of a broach of the same provision of tits Note within the preceding (12) months, it may be cured (and no event of dakUt will have occurred) If Borrower, after receiving wittten notice from Lender demanding cure of such default: (a) cures the default within Afteen (15) days; or (b) if the we requires more than 1111W (16) days, Immediately Initiates i which Lender deems In Lender's solo disorotioon to be sufficient to cure the default and thereafter continues and completes all reasonable and steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Up n default, Lander may. after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all ac rpakl interest immediately due, and then Borrower will pay that amount. Lander may hire ot pay someone else to help J collect this Note I Bon , or does not pay. Borrower also will pay Lender that amount. This Includes, subject to any Amfts under applicable law, Lender's attorneys' fees Lender's legal expenses whether or not there b a lawsuit, Including attorneys' fees and legal expanses for bankruptcy proceedings Qnchudlng :00s b modify or vacate any automak stay or Injunction), appeals, and any anildpaled posHudgment collection services. if not prohuxNed byy taw, Borrower also will pay any court costs, In addition to all other sums provided by law. It judgment is entered in ti i connec on w th fhb Note interest will continue to accrue on this Note alter judgment at the interest rate applicable to this Note at the time judgment Is entered. This Note h been delivered to Lander and accepted by Lender In the Commonwealth of Pennsylvania. It there Is a lawsuit, Eorrower agrees upon rider's request to submit to the jurisdiction of the courts of Cumberland County, the Commonwealth of Pennsylvania. This Note shalt be gov ad by and construed in accordance with the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. B ower grants to Lander a contractual security interest in, and hereby assigns, convoys, delivers, pladges, and transfers to Lender all Borrowers rig t, We and Interest In and to, Borrower's accounts with Lender (whether checking, savings, or some other account), Including without limitation all is held jointly with someone else and al accounts Borrower may open In the future, excluding however all IRA and Keogh accounts, and all trust Me for which fie grant of a security Interest would be prohibited by law. Borrower authorizes Lender, to the extent permuted by applicable I , to charge or setoff an sums owing on this Nate against any and all such accounts. COLLATERAL. -nJs N to Is secured by a Mortgage dated March 18, 1989, to Lender on real property located In CUMBERLAND County, Commonwealth of Ponns nia, an the terms and conditions of which are herby incorporated and made a part of this Note. EXHIBIT "B" X13-r:-=1999 PROMISSORY NOTE Pa 4oan. No (Con9nued) liEttERAL PROM Tt# trots to payabb on demand. 'fits tndlmbr? of spedfic dotsu! praNietorle ae I?e d Long ehY not pwa?d? ripftt to dadne of its Nofo on Its dqn and. Lender may daky w forgo en t*q any of h ft* d M%ft „ada ri obi wIM bii? therm. Borrower and offer ppeeho who d^ Ousranlees or endorses ft Note. to ft 0*9 dowed by kw. rlefae Prassrt6aent, de?wd for payment. proleat and of *how. Upon my duro In the Mane of u?is No* and wom on"MAlw h ?. signs ft NoM. as mNlar. gtrsranlor, axornrrlodation nakar or endorser. sl+all be rekeeed cram tMtb4ti OMa "aa that t.eivow lldef MAY rwtvw or.tadarrd telly and for any Mnpgr of Mmsj this ban, or release AM p". potw, «t?at of oot?irek of kmPdr. fd to man smlm CdWw* anyonup" N such abo ooroo Lwddw may o? ft ban wftut t nunt of Of no%$ to OWN dhw r to p4 at whom b modUlm lon Is made. PRIOR TO SIMM S 1071, BORROWER BEAD AND UNDERWOOD ALL THE PROVISIONS OF TM N yM MCMINQ TM VARIAtI E MTEREST RAT[ BIONS. SORROWEt AGREES TO THE TERMS OF M* NOTE AND ACM0WLM ;fES RMW, OF A COMMMM COPY OF 11tE NOTE. THIS NOTE HAS SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: PINO'$ PIZZA M? GILMEPYC P. anerd Partner I fGarlwM Variable Rata. Imlalrnant- LASER M0. flea U a Pal. i T.lN. Olr Var.1leb lbf 1 YOi CFI Rolar?l.aa. ins. AU rtshb rsaarvad lPA.OIIG A65stIQl.LN ORRSTOWN BANK NO. BOX 250 Shippensburg, PA 1757 WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. Box 250 Shfppensburg, PA ROBERT p, "IECLER RECORDEV! GE DEEDS CUMBERL,A "D COUI4TY-P;1 '99 MR 16 IM 3 33 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS IS A PURCHASE MONEY MORTGAGE THIS MORTGAGE IS DATED MARCH 15, 1999, between PINO'S PIZZA, whose address Is 1-3 EAST MAIN ST., NEWVILLE, PA 1724111 (referred to below as "Grantor"); and ORRSTOWN BANK, whose address is P.O. Box 250, Shippensburg, PA 1 257 (referred to below as "Lender"). GRANT' OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, ttle, and Interest In and to the following described real property, together with all existing or subsequently erected or affixed builds , Improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, here Laments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect t etc; alt water, water rights, watercourses and ditch rights (including stock in utilities with ditch or Irrigation rights); and all other rights, royalties, and p ofits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, located in CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE ATTACHD The Real Property or Its address is commonly known as 1-3 EAST MAIN ST., NEWVILLE, PA 17241. Grantor presently assigns t Lender all of Grantor's right, title, and Interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to ender a Uniform Commercial Code security Interest in the Personal Property and Rents. DEFINITIONS. The followi words shall have the following meanings when used in this Mortgage. Terms not otherwise defined In this Mortgage shall have the meanings aftrib to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts In lawful money of the United States of Am Grantor. The word antor" means PINO'S PIZZA. The Grantor is the mortgagor under this Mortgage. Guarantor. The word "Guarantor" means and Includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the In ebledness. Improvements. The word improvements" means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge ligatfons of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with Interest on such amou is as provided in this Mortgage. Lender. The word 'L ndee means ORRSTOWN BANK, its successors and assigns. The Lender Is the mortgagee under this Mortgage. Mortgage. The wor "Mortgage" means this Purchase Money mortgage between Grantor and Lender, and includes without limitation all assignments and secu ty interest provisions relating to the Personal Property and Rents. Purchase Money m gage. If any of the debt secured by this Security Instrument Is lent to Borrower to acquire title to the Real Property, this Security Instruments II be a purchase money mortgage under 42 P.S. Section 8141. Note. The wad "No " means the promissory note or credit agreement dated March 15, 19%, In the original principal amount of $146,750.00 from rantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the p omissory note or agreement. The maturity date of this Mortgage Is March 15, 2019. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARI INTEREST RATE. Personal Property. he words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions f , any of such property; and together with all proceeds (including without limitation all Insurance proceeds and refunds of premiums) from any is or other disposition of the Property. Property. The word Property" means collectively the Real Property and the Personal Properly. Real Property. The ords "Real Property" mean the property, interests and rights described above in the "Grant of Mortgage" section. Related Document The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, environ ntal agreements, guaranties, security agreements, mortgages, deeds of trust, and all other Instruments, agreements and documents, whether ow or hereafter existing, executed In connection with the Indebtedness. Rents. The word 'F nts' rneatez? L;1 pr3sent and future reads, revenues. lnc: m,?. 'sties, royalties, profits, and other benefits derived from the Property. THIS MORTGAGE, INCL OING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND ' (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE R ATED DOCUMENTS. THIS MORTGAGE IS,GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFOR ANCE. Except as otherwlse provided. In this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage at thav hacnma due. and hall strictly perform all of Grantor's obligations under this Mortgage. :-03-115=4999 MORTGAGE Pate Loan No (Continued) threatened fluga on or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged b Lender in wr1U (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manutacturs store, treat, d ose of, or release any hazardous waste or substance on, under, about or from the Property and (ft) any such activity "b conducted in c pliance with all applicable federal, state, and local laws, regulations and ordinances, Including without Imitation those law. regulations, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such Inspections any tests, at Grant s expense, as tender may deem appropriate to determine compliance of the Property with this section of ft Mortgage. An Inspections or t is made by Lender shall be for Lender's purposes only and shall not be construed to create any reponsibilty or liability on th part of Lender I Grantor or to any other person. The representations and warranties contained herein are based on Grantors due diagence I Investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future calms agalm Lender for Inds nity or contribution In the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees t indemnity and h d harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly c Indirectly sustal or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, menutaclun storage, disp , release or threatened release of a hazardous waste or substance on the properties. The provisions of this section of th Mortgage, Indu ng the obligation to indemnity, shall survive the payment of the Indebtedness and the satisfaction and reconvsyance of the Non c this Mortgage an shall not be affected by Lender's acquisition of any Interest in the Property, whether by foreclosure or otherwise. Nuisance, West . Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to th Property or any ortion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party th right to remove, ny Umber, minerals (including oil and gas), soil, gravel or rock products without the prior written consent of Lender. Removal of im ovements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent c Lender. Asa co dition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replao such Improvente is with Improvements of at least equal value. Lender's Right, o Enter. Lender and Its agents and representatives may enter upon the Real Property at all reasonable times to attend b Lenders interes and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance wit effect, of all go Disabilities Act. Including appro' Lenders inter satisfactory to Le Duty to Protect. set forth above in DLIE ON SALE - CON sale or transfer, witho transfer' means the involuntary; whether b (3) years, lease-option by any other method includes any change in as the case may be, of law. Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter In nmenW authorities applicable to the use or occupancy of the Property, including without Irritation, Ihe Americans With ran tor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding. to appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, In Lenders sole opinion, In the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably der, to protect Lenders Interest. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts, In addition to those acts this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. ENT BY LENDER. Lender may, at its option, declare immediately due and payable all sums secured by this Mortgage upon the the Lenders prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "$ale or veyance of Real Property or any right, tide or Interest therein; whether legal, beneficial or equitable; whetter voluntary or outright sale, deed, instalment sale contract, land contract, contract for deed, leasehold Interest with a term greater than three contract, or by sale, assignment, or transfer of any beneficial Interest In or to any land trust holding tiae to the Real Property, or f conveyance of Real Property Interest. If any Grantor is a corporation, partnership or limited liability company, transfer also ownership of more than twenty-five percent (2596) of the voting stock, partnership Interests or limited liability company Interests, Grantor. However, this option shall not be exercised by Lender If such exercise Is prohibited by federal law or by Pennsylvania TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Mortgage. Payment. Grant shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer s charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or mat I furnished to the Property. Grantor shag maintain the Property free of all liens having priority over or equal to the interest of Lender under this ortgage, except for the lien of taxes and assessments not due, and except as otherwise provided In the following paragraph. Right To Comest Grantor may withhold payment of any tax, assessment, or claim In connection with a good faith dispute over the obligation to pay, so tong as Le den's Interest In the Property is not jeopardized. If a lien arises or is lied as a result of nonpayment, Grantor shag within fifteen (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 Ron, or N requested by Lend r, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender In an amount sufficient to discharge the I n plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the Ron. In any contest, Grant r shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as a additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payr authorize the apps Property. Notice of Constm materials are supp or materials. Gran cost of such impro PROPERTY DAMAGE ent. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shaft Dpriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the m. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any to the Property. If any mechanic's lion, materlalmen's lien, or other lien could be asserted on account of the work, services, will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the The following provisions relating to insuring the Property are a part of this Mortgage. Maintenance of In ranee. Grantor shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on a replacement basis or the full Insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance i such coverage amounts as Lender may request with Lender being named as additional Insureds In such Nablilly insurance policies. Addition y, Grantor shall maintain such other insurance, including but not limited to hazard, business Interruption and boller Insurance as Lender may req ire. Policies shall be written by such Insurance companies and in such form as may be reasonably acosplabls to Lender. Grantor shall dell to Lender certlficates of coverage from each Insurer containing a stipulation that coverage will not be caflo" or fitfllft oW without a minfmum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the Inslrer's RabEly for failure to give such notice. Each ins;dme ce•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 ault of Grantor or any other parson. Should the Real Property at any time become located .ln an area designated by the Director of the F Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood 1na„ranna for tha hi unnald odncloal balance of the loan, up to the maximum oollCv limits set under the National Frond rna,n•r„%a arn-am N ?? 03-16=1999 Loan No MORTGAGE Page (Continued) Mortgage also wig •ure payment of these amounts. The rights provided for in this paragraph shall be In addition to any other rights or any remedli to which Lender ma be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Len from any remedy t t it otherwise would have had. Grantor's obligation to Lender for all such expenses shall survive the entry of any morIM foreclosure judgmen WARRANTY; D SE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage. Title. Grantor arrants that. (a) Grantor holds good and marketable title of record to the Property In foe simple, free and dear of all Pens an encumbrances ther than those set forth in the Real Property description or In any title Insurance policy, title report, or final title opinion Issuer I favor of, and led by, Lender In connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and this Mortgage t Lender. Defense of Till . Subject to the exception In the paragraph above, Grantor warrants and will forever defend the title to the Property against lawful claims of tl persons. In the event any action or proceeding is commenced that questions Grantor's tttie or the Interest of Lender under Mortgage, Gran or shag defend the action at Grantor's expense. Grantor may be the nominal party In such proceeding, but Lender shag entitled to pate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, cause to be deli erect, to Lender such Instruments as Lender may request from time to time to permit such participation. Compliance W Laws. Grantor warrants that the Property and Grantor's use of the Properly compiles with all existing applicable k ordinances, and regulations of governmental authorities. CONDEMNATION. a following provisions relating to condemnation of the Property are a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or urcha4 in lieu of condo nation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indab or the repair or torallon of the Property. The net proceeds of the award shag mean the award after payment of all actual tests, expenses, an attorneys' fees i urred by lender In connection with the condemnation. Proceedings. 1 any proceeding In condemnation is teed, Grantor shall promptly notify Lender In writing, and Grantor shag promptly take suc steps as may to necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding. but Lender shag entitled to p to In the proceeding and to be represented in the proceeding by counsel of Its own choke, and Grantor wig d* wr or cause t be delivered to L nder such instruments as may be requested by it from time to time to permit such participation. IMPOSITION OFT S, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes. fees and charges are a p of this Mortgage: ees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever Don is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shag reimburse Lender for all Current jh taxes, as below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, Including without Imitation all taxes, feenary stamps, and other charges for recording or registering this Mortgage. Taxes. Ting shall constitute Was to which this section applies: (a) a specific tax upon this type of Mortgage or upon all or any part of rized or required to deduct from payments on the the Indebsecured by this Mortgage; (b) a specific tax on Grantor which Grantor is autho Indebtednred by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) a specn all or any portion of the Indebtedness or on payments of principal and Interest made by Grantor. Subsequs. If any tax to which this section applies Is enacted subsequent to the date of this Mortgage, this event shall have the same effect as of Default (as defined below), and Lender may exercise any or all of Its available remedies for an Event of Default as provided below ulfor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above In the Taxes and Llens section anIts with Lender cash or a sufficient corporate surety bond or other security satisfactory to tender. SECURITY AGREEME Mortgage. Security Agreem property , and Len Security Inter-59t. perfect and confir records. Lender r Mortgage as a fin Upon default, Gra available to tends *T; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this nt. This instrument shall constitute a security agreement to the extent any of the Property constitutes fixtures or other personal er shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Upon request by Lender, Grantor shall execute financing statements and take whatever other action Is requested by Lender to is Lender's security Interest la. jhe Rents and Personal Property. In addition to recording this Mortgage In the real property ay, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this ncing statement. Grantor shag reimburse Lender for all expenses incurred In perfecting or continuing this security Interest. for shag assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and make it within three (3) days after receipt of written demand from Lender. Addresses. The ailing 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; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-In-fact are a part of this Mortgage. Further Assuranc s. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or wig cause to be made, executed o delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, reltisd, or rerecorded, as the case may be, at such times and In such offices and places as Lender may doom appropriate, any and all such mortgages, deeds of trust, sec rity deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other down on, as may, In the sole opinion of Lender, be necessary or desirable In order to effectuate, complete, perfect, continue, or preserve (a) the bl6ations of Grantor under the Note, this Mortgage, and the Related Documents, and (b) the Liens and security Interests created by this Mo gage as first and prior Hens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed tc the ntrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses Incurred in connection with the matters referred to in this p ragraph. Attomey-In-Fact. If Grantor falls 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 Gra ton's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-Irrfact for tits purpose of making, execufi , delivering, filing, recording, and doing all other things as may be necessary or desirable, In Lender's sole opinion, to accomplish the matters referred to In the preceding paragraph. FULL PERFORMANCE.' If Grantor pays all the Indebtedness wharf 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 financiog data, f nn Rio awlAa m Lanelar's sanurity interest in the Rents and the Personal Prooarty, rranrnr uM now ?r .,....++N-.+ w..'-•-• --•• - .03-15-1999 MORTGAGE Page ? Loan No (Continued) proceeding, prodded that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory tr Lender. Breach of Othe Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not reme&x within any period provided therein, Including without limitation any agreement concerning any indebtedness or other obligation of Grantor k Lender, whether existing now or later. Events Affectln Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes I mpetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Lender, at ft option, may, bul shall not be req to, permit the Guarantors estate to assume unconditionally the obligations arising under the guaranty In a manner satisfactory to Lender, and, I doing so, cure the Event of Default. Adverse Chan A material adverse change occurs in Grantors financial condition, or Lender believes the prospect of payment or performance of the Indebted is impaired. Right to Cure. such a failure is curable and if Grantor has not been given a notice of a breach of the sane provision of this Mortgage within the preceding tw (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 s nt to cure the failure and thereafter continues and completes all reasonable and necessary steps sufAdent to produce compliance as n as reasonably practical. RIGHTS AND RE IES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender, at its option, may exercise any one or more oft following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Inds tedness. Subject to applicable taw, Lender shalt have the right at Its option without notice to Grantor to declare the entire Indebtedness im tely 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 Com cieI Code. Collect Rents. ender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts'' past due and un aid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any t nant 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 Ire ocably designates Lender as Grantors attorney4n-tact to endorse Instruments received in payment thereof In the name of Grantor and to oVele the same and collect the proceeds. Payments by tenants or otter users to Lender In response to Lenders demand shall satisfy the obOga for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise Its rights under this ubparagraph either in person, by agent, or through a receiver. Appoint Receive . Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and p the Property, to operate the Property preceding foreclosure or sate, and to collect the Rents from the Property and apply the proceeds, over a d above the cost of the receivership, against the Indebtedness. The receiver may serve without bond If permitted by law. Lenders right to he appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amou I. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foredo re. Lender may obtain a judicial decree foreclosing Grantors Interest in all or any part of the Property. Nonjudiclal Sale. If permitted by applicable law, Lender may foreclose Grantors interest in all or In any part of the Personal Property or the Real Property by nonju Mal sale. Deficiency Jud I. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received om the exercise of the rights provided in this section. Tenancy at Suit . If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled t possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and hall, at Lenders option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property imnwdiatefy upon the demand f Lender. Other Remedies. Lender shalt have all other rights-and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Pro To the extent permitted by applicable law, Grantor hereby waives any and all right to have the property marshalled. In exercising its righ 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 shat be entitled to bid at any public sale on all or any portion of the Property. Notice of Sate. L rider shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property Is to be made. Unless otherwise required by applicable law, reasonable notice hall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Election f Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights of to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of ny otter remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Mortgage after failure of Gran or to perform shall not affect Lenders right to declare a default and exercise Its remedies under this Mortgage. Attorneys' Fees; penses. 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 c urt may adjudge reasonable as attorneys'. fees at trial and on any appeal. Whether or not any court action Is involved, all reasonable expen s incurred by Lender that in Lenders opinion are necessary at any time for the protection of its Interest or the enforcement of Its rights shall bec e a part of the Indebtedness payable on demand and shall bear Interest from the date of expenditure until repaid at the rate provided for in the Note. Expenses covered by this paragraph include, without limitation, however subject to any Omits under applicable law, Lenders attorneys' fees and Lenders legal expenses whether or not there Is a lawsuit, Including attorneys' teas for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or Injunction), appeals and any anticipated posHudgment collection services. the cost of searching records, btaining title reports (Including foreclosure reports), surveyors' reports, and appraisal less, and title Insurance, to the extent permitted by apps ble taw. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTO AND OTHER PARTIES: Unless otherwise provided by applicable law, any notice under this Mortgage shall be In writing, may be sent by telefacs Ile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight co vier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, cartifled or registered mail, oostaos orwald, direr to the addresses shown now the beginning of this Mortgage. Any party may charge its address for notices under Oft 03-15-1999 MORTGAGE Page Loan No (Continued) offending pro lion shall be deemed to be modified to be within the limits of enforceability or vallft however, H the offending provision cannot t so modified, It shall be striolm and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors Assigns. Subject to the limitations stated In this Mortgage on transfer of Grantor's interest, this Mortgage shall be birt?ng tlpc and Inure to t benefit of the parties, their hairs, personal representatives, successors and assigns. If ownership of the Property becomse vsstt In a person of than Grantor, Lender, without not1ce to Grantor, may deal with Grantor's successors with reference to this Mortgage and It indebtedness y way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under th Indebtedness. ?. Time is of the seance. Time Is of the essence in the performance of this Mortgage. Waivers and onsents. Lender shall not be deemed to have waived any fights under this Mortgage (or under the Related Documents) unlae such waiver is n writing and signed by Lender. No delay or omission on the part of Lander In exercising any right shall operate as a waiver 1 such right or a y other right. A waiver by any party of a provision of this Mortgage shall not constitute a waiwr of or prejudice the party% rigl otherwise to nd strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dsafblp betwee Lender and G ntor, shell constitute a waiver of any of Lenders rights or any of Grantors obligations as to any future transactions. Whenew consent by Le is required in this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent t subsequent Ins nces where such consent is required. GRANTOR ACKNO GES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE AS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. Signed, aclmowyK(*-spQered In theme of: Signed, acknowledged and delivered in the presence of: I hereby certify, that the precise address of the mortgagee, ORRSTOWN BANK, herein is P.O. Box 250, Shippe sburg, PA 17257 arAW1 rarMarlgap s STATE COUNTY OF On this, the 1 -/ undersigned Notary Pk designated agents of I executed the foregoing agents. QOAG CERTIFICATE OF RESIDENCE PARTNERSHIP ACKNOWLEDGMENT F WA,..iat Seal 7c'?sldlalakP- W . Monis.,a, NAM, f ill Curnbell .till (R 2Wj 1 ) ss My oommiesk)n Expires lh c. i? : •' . •• c . -. vvmb6'-?r, Runnyluarlt Association %)4f 4•r. day of? , 199 i before me r;Tn blic,personally appeare GIUSEPPE P. BASILE and SEBASTIAN ANILE who acknowledged the iq ,t,. oy INO•S PIZZA, a Pennsylvania partnership, and that they as such partners or designated` _agents, belro, •1e- Instrument for the purposes therein contained by signing the name of the partnership by themselm as In witness wheleo4 t hereunto set my hand'and official seat. u„re... .i+lln In en.i ter 1?.a N.•.. ? nl? ? ?MI/y _ t she UIe ? Land Description Number ALL THAT CERTAIN tract of land situate at the northeast corner of Main and High Streets in the Borough of Newville, Cumberlan County, Pennsylvania, bounded and described as follows: ON t e South by main Street; on the East by property formerly of John R ed and now or formerly of Fred Burkholder; on the North by proper y now or formerly of Henry Jones; and on the West by High Streit. CONTAINING 45 feet in fronton Main Street and extending northward y therefrom along the eastern line of High Street a distance of 103 feet 10 inches, more or less, to said property now or former y of Henry Jones, and having thereon erected buildings known as Ind numbered 1-3 East Main Street. BEIN dated Jul Volume 32 and Joan A 353!34 the same premises which Lucretia Ott, et ux, by deed 16, 1987, and recorded July 21, 1987, in Deed Book U, Page 864, granted and conveyed to Giuseppe P. Basile Basile, husband and wife, grantors herein. tats of Penns';lYania ;?;,Y . ,• , , ?r. i ... .?,t4.?f o;'r c' 86 o' "may ?tr? : =-r 1^ hn ucf:ce for the reco C1 ti GY`?+S ';die r, :-,c f -errand County. G?1 o? . _'`'••"`='-p.j•c:~ s:, ,y han ?al of off' } ??`k?;?..• •? Record Bnntc'? ??? e.? _4317A of Deeds .fig 49 Form 668 (Y)(c) (Rev. October 2000) Department of the Treasury - Internal Revenue Service Notice of Federal Tax Lien . bs . S F r4 Area: Serial Number For Optional Use by Recording Office SMALL BUSINES /SELF EMPLOYED AREA #3 A? p T Lien Unit Phone: (800) 829-3903 230293672 As provided by ecdon 6321, 6322, and 6323 of the internal Revenue 2 so Code, we are g a notice that taxes (including Interest and penalties) have been asse ed against the following-named taxpayer. We have made a demand for ent of this liability, but it remains unpaid. Therefore, there Is a Ben In favor of the United States on all property and rights to property bed to this taxpayer for the amount of these taxes, and additional pe es, Interest, and costs that may accrue. `- Name of Taxpayer GIUSEPPE P BASILE z^ti 'i chi' zy Residence E MAIN ST r' WVILLE, PA 17241-1110 NT R LEASE INFORMATION: For each assessment listed below, e of t lien is refiled by the date given in column (e), this notice shall, F follow g such date, operate as a certificate of release as defined 5(a). IRC T Period Date of Last Day for Unpaid Bahnce Kind of Tax nding Identifying Number Assessment Refl111ng of Assessment a b c d e 1040 12j 1/1995 167-66-5120 09/23/1996 10/23/2006 174.12 1040 1 12/ 1/1996 167-66-5120 05/13/2002 06/12/2012 2113.36 1040 12/ 1/1997 167-66-5120 05/27/2002 06/26/2012 7011.84 1040 12/ 1/1999 167-66-5120 04/29/2002 05/29/2012 1170.13 1040 12/ 1/2000 I 167-66-5120 08/06/2001 09/05/2011 6586.06 Place of Filing otnonotary mberland County rlisle, PA 17013 Total 1$ 17055.51 This notice was prepared and signed at PITTSBURGH, PA the 06th day o August 2002 , on this, Signaturic -- Title .?, ACS 23-00-0008 for L LEDER (800) 829-3903 (NOTE: Certificate of Qfficer authorized by law to take a ebf*nt 8t essential to the validity of Notice of Federal Tax lien Rev. Rut. 71-466,1971 - 2 C.B. 409) X 11 1 t Form dsA/vv,% ??--• Part 1 - Kept By Rwordlair CM- 1!R'f1 S31t ?1J:: iJ 1 EGG 3OV4135 3;1td . ? ? r,1,?J3l.M ! f =£ Wd £- 43S 1001 ? ? t^" , ? .?! u? ? ? ? '? ? ? , ? ? ? ORRSTOW BANK, N Plaintiff V. GIUSEPPE BASILE, SEBASTIA ANILE t/d/b/a Pino' Pizza and PINO' S PIZ A, and UNITED ST TES OF AMERICA, c/o UNITED STATES ATTORNEY : U.S. COUR HOUSE MIDDLE DI TRICT OF PA SUITE 220, EDERAL BUILDING 228 WALN T STREET HARRISBU G, PA 17108 Defendants I, hereby following DATE: April ? 0, 2008 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE PROOF OF SERVICE A. Baric, Esquire, attorney for the Plaintiff in the above-captioned action, do iN that I served certified true and correct copies of the Amended Complaint upon the via U.S. first class mail on April 10, 2008. Giuseppe P. Basile 1-3 E t Main Street Newv lle, Pennsylvania 17241 Pino's Pizza 1-3 E st Main Street Newv'lle, Pennsylvania 17241 Sebastian Anile 20 Westgate Drive Mt. Holly Springs, Pennsylvania 17065 United States of America c/o U.S. Attorney Middle District Of Pennsylvania Federal Building 228 Walnut Street, Suite 2 Harrisburg, P sylvani ,08 David A. Baric, Esquire c+? F ? ? C.5 r. tiJ C x.. `? A ? MT 1. ORRSTOWN BANK, Plaintiff V. GIUSEPPE P. BASILE, SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, and UNITED STATES OF AMERICA, : c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO ATTACH SUBSTITUTE VERIFICATION Please attach the following Substitute Verification to the Amended Complaint filed in this matter on April 10, 2008. Respectfully submitted, Date: ?¢ 10/n OBARIC JSRER David A. Baric, Esquire I.D. #44853 If West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 04/10/2008 10:55 7172495755 OBS PAGE 02 VERIFICATION I, Betsy Smith, verify that the statements made in the foregoing Amended Complaint are true and correct to the best of my knowledge, information and belief. I hereby ratify the verification previously supplied by my attorney, David A. Baric, Esquire and execute this verification as a substituted verification. I understand that false statements herein are made subject to the penalties of 18 Pa.C,S. §4444 relating to unsworn falsifications to authorities. Date: ?/- iC) o P etsy Smith Orrstown Bank pjno'S ?"? f- '?' °'? _,, 't'. ?? i(T'? .'.'? Ls ? :..G A .-006 ORRSTOWN BANK, Plaintiff V. GIUSEPPE P. BASILE, SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, ; and IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE UNITED STATES OF AMERICA, c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants STIPULATION It is hereby stipulated and agreed by and between Orrstown Bank, plaintiff and the defendant, United States of America, as follows: I . That the premises referred to in the Complaint is owned by the defendants, Giuseppe P. Basile and Sebastian Anile. 2. The plaintiff filed an action in mortgage foreclosure to the above number and term, and named as defendants, Giuseppe P. Basile and Sebastian Anile. 3. The parties hereby agree that the United States of America shall, and hereby is, named as a party in the above action, in accordance with 28 U.S.C. § 2410 et seq. 4. The United States of America hereby accepts service of the Complaint and waives its right to file an answer or other responsive pleading thereto, and waives any objection it may have to the judgment entered against the defendant. LS 114 I I rv A --V 5. The United States of America has a tax lien against the property 6. That the Federal tax lien referred to in paragraph "eleven" in the amount of $17,055.51 is junior in time to the plaintiff's mortgage set forth in paragraph "six" of plaintiff's Complaint. 7. That the defendant, United States of America, agrees to the entry in this action of a judgment in favor of the plaintiff and against the United States of America for foreclosure and sale of the mortgaged property. 8. That the defendant, United States of America, is not indebted to the plaintiff. 9. That the aforesaid premises shall be sold at a judicial sale, notice of which shall be served on the defendant, United States of America. 10. That the judicial sale of said property shall discharge the Federal Tax Lien referred to in paragraph "eleven." 11. That the proceeds of sale shall be divided and distributed as the parties may be entitled and any funds due the United States shall be sent to the Internal Revenue Service, P.O. Box 1267, Harrisburg, PA 17108-1267. The check shall be made payable to "United States Treasury" and shall include the name and social security number of the taxpayer. 12. That the defendant, United States of America, preserves its right of redemption as provided in Title 28, United States Code, Section 2410(c). 4 -%. 13. The parties to this Stipulation shall bear their respective costs in this proceeding. Dated: By; dk4e??,Oer David A. Baric, Esquire O'Brien, Baric & Scherer I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 MARTIN C. CARLSON Acting United States Attorney Dated: u ?g By: W4 y&? Melissa A. Swauger Assistant U.S. Attorney Attorney for United States of America zi h-? ZL (rT r?€ G ORRSTOWN BANK, Plaintiff V. GIUSEPPE P. BASILE. SEBASTIAN ANILE t/d/b/a Pino's Pizza and PING' S PIZ,._7.A, and UNITED STATES OF AMERICA, : c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants IN THE COURT OF COMMON PLIAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO ENTER DEFAULT JUDGMENT PURSUANT TO Pa.R.C.P. 1037 TO THE PROTHONOTARY: Please enter judgment in favor of the Plaintiff, Orrstown Batik and against the Defendant, Giuseppe P. Basile, for failure to file an answer to the Complaint of Plaintiff. A true and correct copy of the -Notice of Default is appended hereto as Exhibit "A.' A true and correct copy of the Certificate of Mailing; for the Notice of Default is appended hereto as Exhibit "B." I certify that the Notice of Default was given in accordance Zvi th Pa.R.C.P. 23 7.1. Plaintiff'requests judgment in the amount of $150,642.52 as set forth in the Complaint together with interest in the amount of $2,933.14 for a total of $153,575.64. Respectfully submitted, O' RIENB,A-?I fC & S, , RER. David A. Basic, Esquire I.D. # 44853 19 West South Street Carlisle. Pennsylvania 17013 (717) 249-68"73 CERTIFICATE OF SERVICE I hereby certify that on May i_9, 2008, I, David A. Baric, Esquire, of O'Brien, Baric &. Scherer did serve a copy of the Praecipe To Enter Default Judgment Pursuant Tr) Pa.R.C.P. 1037, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Giuseppe P. Basilc 1-3 East Main Street Newville, Pennsylvania 17241 Pino's Pizza 1-3 East Main Street Newville, Pennsylvania ] 7241 Sebastian Anile 20 Westgate Drive Mt. Holly Springs, Pennsylvania 17065 Melissa Swauger, Esquire Assistant U.S. Attorney Attorney for United States of America U.S. Courthouse Middle District of Pennsylvania Federal Building 228 Walnut Street, Suite 220 Harrisburg, Pennsylvania 17108 G David A. Baric, Esquire ORRSTO«TN BANK, ; IN THE COURT OF COMMON PLEAS 01 Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 2008- 1486 CIVIL TERM GIUSEPPE P. BASILE, MORTGAGE FORECLOSURE SEBASTIAN ANIL:E t/d/b/a Pino's Pizza and PINO'S PIZZA, Defendants TO: Giuseppe P. Basile 1-3 East Main Street Newville, Pennsylvania 17241 Date of Notice: May 7, 2008 IMPORTANT NOTICE YOU ARE IN DEFAULTBECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE, COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE 5'OUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE; "CO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 'Telephone: (717) 249-3166 O' EN, BARIC AND SC ER 1--)avid A. Baric, Esquire t 9 West South Street ( 'arlisle, PA 17013 (717) 249-6873 Exhibit "A" U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From 6 Iry 1 i? j -1 I c ? One piece of ordinary mail addressed to: i(11r1"rX"" _ PS Form 3817, January 2001 Exhibit- "B" U 3 ' o v C71~? :Do??'---L ' ILTI ;?', ORRSTOWN BANK, Plaintiff V. GIUSEPPE P. BASILE, SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, and UNITED STATES OF AMERICA, : c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO SATISFY TO THE PROTHONOTARY: Please mark the judgment entered in this matter against Giuseppe P. Baisle t/d/b/a Pino's Pizza and Pino's Pizza on May 19, 2008 as having been satisfied. Date: June 30, 2009 Respectfully submitted, O' N, B,ARI S R David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/orrstownbanWpino's/satisfyj udgment.pra CERTIFICATE OF SERVICE I hereby certify that on June 30, 2009, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Satisfy, by first class U.S. mail, postage prepaid, to the parties listed below, as follows: Guiseppe P. Basile 1-3 East Main Street Newville, Pennsylvania 17241 Sebastian Anile 20 Westgate Drive Mt. Holly Springs, Pennsylvania 17065 Pino's Pizza 1-3 East Main Street Newville, Pennsylvania 17241 Melissa Swaunger, Esquire Assistant U.S. Attorney U.S. Courthouse Middle District Of Pennsylvania 228 Walnut Street, Suite 220 Harrisburg, Pennsylvania 17108 David A. Baric, Esquire ALM-O.-F 'OE OF THEE FEE" !f`?r Y 2009 J0H 30 AM 11: 35 ORRSTOWN BANK, Plaintiff V. GIUSEPPE P. BASILE, SEBASTIAN ANILE t/d/b/a Pino's Pizza and PINO' S PIZZA, and UNITED STATES OF AMERICA, c/o UNITED STATES ATTORNEY : U.S. COURTHOUSE MIDDLE DISTRICT OF PA SUITE 220, FEDERAL BUILDING 228 WALNUT STREET HARRISBURG, PA 17108 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008-1486 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: June 30, 2009 Respectfully submitted, O' , BARIC & SCHERER l r David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff dab.dir/orrstownban Wpino's/discontinuelpra 71 CERTIFICATE OF SERVICE I hereby certify that on June 30, 2009, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Satisfy, by first class U.S. mail, postage prepaid, to the parties listed below, as follows: Guiseppe P. Basile Pino's Pizza 1-3 East Main Street 1-3 East Main Street Newville, Pennsylvania 17241 Newville, Pennsylvania 17241 Sebastian Anile Melissa Swaunger, Esquire 20 Westgate Drive Assistant U.S. Attorney Mt. Holly Springs, Pennsylvania 17065 U.S. Courthouse Middle District Of Pennsylvania 228 Walnut Street, Suite 220 Harrisburg, Pennsylvania 17108 f? /AA/ David A. Baric, Esquire OF THE FR;?4.ONOTARY 2003 JUN 30 A1?911: ? 5