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HomeMy WebLinkAbout04-0455ORRSTOI~N BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- z/.Cfi CIVIL TERM CIVIL ACTION-LAW 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 77 EAST KiNG STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant iN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- 6,f~_6' CIVIL TERM CIVIL ACTION-LAW MORTGAGE FORECLOSURE COMPLAINT NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and flies the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiffand Mortgagee is Orrstown Bank, a Pennsylvania corporation with a place of business located at 77 East King Street, Cumberland County, Pennsylvania. 2. The Defendant is Richard M. Etter, Jr. ("Etter"), an adult individual residing at 259 Mt. Zion Road, Carlisle, Cumberland County, Pennsylvania. 3. By Deed acknowledged on March 13,2001, Richard H. Etter, Jr. and Sharon L. Etter conveyed the premises described in Exhibit "A", attached hereto and made a part hereof by reference, to Etter. This Deed was recorded in the Cumberland County Record Book 241, Page 9, et seq., all of which pages are incorporated herein by reference and made a part hereof. The premises are further described as being 101 East High Street, Carlisle, Cumberland County, Pennsylvania. 4. On or about March 15, 200 I, Etter, as Mortgagor, made, executed and delivered a written Note and Business Loan Agreement, secured by a Mortgage made, executed and delivered the same day to Plaintiff as Mortgagee on the premises described in Exhibit "A". This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on March 19, 2001 at Cumberland County Record Book 1680, Page 672, et seq., all of which pages are incorporated herein by reference and made a part hereof. This Mortgage is also referred to as the "First Mortgage" hereinafter. 5. A true and correct copy of the aforesaid Note is attached hereto and made a part hereof as Exhibit "B". A true and correct copy of the Business Loan Agreement is attached hereto and made a part hereof as Exhibit "C". A true and correct copy of the First Mortgage is attached hereto and made a part hereof as Exhibit "D". 6. Defendant has defaulted under the terms and conditions of the First Mortgage, Note and Business Loan Agreement by failing to make payments as follows: September 15, 2003; October 15, 2003; November 15, 2003; December 15, 2003. 7. Defendant is the present record owner of the premises described in Exhibit "A" and is the real owner of the premises. 8. The First Mortgage was for a business and/or commercial purpose and was secured by real property which consists of more than five (5) rental units. 9. No notice as required by Act 6 or Act 91 is required. 2 10. Under the terms of the First Mortgage, Note and Business Loan Agreement, if any monthly payment of principal and interest is not made when due or any other obligations of the Note, First Mortgage or Business Loan Agreement are not met, then the entire indebtedness owing on the First Mortgage, Note and Business Loan Agreement shall become due and payable immediately at the declaration of the Mortgagee, 11. Plaintiff, as Mortgagee, has exercised its option and declared the entire unpaid balance of principal and interest due and owing. 12. The following amounts are presently due on the said First Mortgage, Note and Business Loan Agreement calculated to December 24, 2003: Principal Interest to 12/24/03 (per diem $41.05) Reasonable attorneys fees Fixed by the Plaintiff for purposes Of this Complaint (5% of Principal debt) Late charge TOTAL: $369,486.61 $ 5,350.52 $ 18,474.33 $ 363.O3 $393,674.49 3 13. On or about April 18, 2003, Etter, as Mortgagor, made, executed and delivered a written Note and Assignment of Mortgage Interest, secured by a Mortgage made, executed and delivered the same day to Plaintiffas Mortgagee on the premises described in Exhibit "A". This Mortgage ("Second Mortgage") was recorded in the Cumberland County office of the Recorder of Deeds on April 22, 2003, at Cumberland County Record Book 1807, Page 546, etseq., all of which pages are incorporated herein by reference and made a part hereof. 14. A tree and correct copy of the aforesaid Note is attached hereto and made a part hereof as Exhibit "E". A true and correct copy of the aforesaid Assignment of Mortgage Interest is attached hereto and made a part hereof as Exhibit "F". A true and correct copy of the aforesaid Second Mortgage is attached hereto and made a part hereof as Exhibit "G". 15. Defendant has defaulted under the terms and conditions of the Second Mortgage and Note by failing to make payments as follows: payment of all principal and accrued interest as of October 18, 2003. 16. The Second Mortgage was for a business and/or commercial purpose and was secured by real property which consists of more than five (5) rental units. 17. No notice as required by Act 6 or Act 91 is required. 18. Under the terms of the Second Mortgage and Note, if any payment of principal and interest is not made when due or any other obligations of the Note or Second Mortgage are not met, then the entire indebtedness owing on the Second Mortgage and Note obligation shall become due and payable immediately. 4 19. The following mounts are presently due on the said Second Mortgage and Note calculated to December 24, 2003: Principal Interest to 12/24/03 (per diem of $7.11) Reasonable attorneys fees Fixed by Plaintiff for purposes Of this Complaint (5% of Principal debt) TOTAL: Latecharge $31,999.60 $ 910.21 $ 1,599.95 $ 50.00 $34,559.76 WHEREFORE, Plaintiff demands judgment in Mortgage Foreclosure in the start of $428,234.25, plus interest at the contract per diem from December 24, 2003, and costs against the Defendant, Mortgagor and real owner, and seeks foreclosure and Sheriff's Sale of the mortgaged property referenced in Exhibit "A" hereto. Respectfully submitted, David A. Baric, Esquire I.D. 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/orrstownbank/etter/easthighstreet, pld VER.II~ICATION The statements in the foregoing Complaint are based upon information which 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 ba~ed upon information which I have given to my cotmsel, they are true and correct to thc best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of i 8 Pa.C.S. § 4904 relaling to unswom :falsifications to auth.orities. Orrstown ]Batik Parcel No. 02-21-0320-098A THIS INDENTURE Madethe dayof March, 2001, Between Richard M. Efler, Jr. and Sharon L. Etter, Grantors, Party of the First Part. and Richard M. Etter, Jr., Grantee, Party of the Second Part. Witnesseth, That the said Grantors for and in consideration of the sum of ONE and 00/100 Dollars ($1.00) lawful money of the United States of America, unto them well and truly paid by the said Grantee at or before the signing, sealing and delivery hereof, the receipt whereof is hereby acknowledged, have granted, bargained and sold, released and confirmed, by these presents do grant, bargain and sell, release and confirm unto the said Grantee, his heirs and assigns, ALL THAT CERTAIN premises situate in the Borough of Carlisle, County of Cumberland, Commonwealth of Pennsylvania, bounded and described in accordance with a Subdivision Plan for Earl L. Schorpp and Charles C. Carothers, dated July 20, 1976, and recorded in Plan Book 28, Page 112, as follows: BEGINNING at a point at the intersection of the northern line of East High Street (80 feet wide) with the eastern line of North Bedford Street (60 feet wide); thence along the eastern line of North Bedford Street North 14 degrees 19 minutes East 122.50 feet to a one- quarter (1/4) inch drill hole; thence by lands now or formerly of Earl L. Sehorpp,et ux., and Charles C, Carother, et ux., of which this tract was formerly a part, South 75 degrees 30 minutes East 59.85 feet to a point; thence by land now or formerly of the First Evangelical Luthem Church South 14 degrees 32 minutes 30 seconds West 122.50 feet to a spike on the northern line of East High Street; thence by the northern line of East High Street North 75 30 minutes West 59.37 feet to a point, the PLACE OF BEGINNING. Containing 7,302.22 square feet as shown on the above referenced Subdivision Plan as filed in the Cumberland County Recorder of Deeds Office.. BEING THE SAME premises which Ray L. Wolfe and Dorothy R. Wolfe, his wife, by deed dated July 18, 1995 and recorded July 2 l, 1995 in the Office of Recorder of Deeds in and for Cumberland County in Deed Book 125, Page 515 granted and conveyed unto Richard M. Etter, Jr, and Sharon L. Etter, husband and wife. EXHIBIT "A" Together with all and singular the said buildings and improvements, ways, streets, alleys, driveways, passages, waters, water-courses, rights, liberties, privileges, hereditaments, and appurtenances whatsoever unto the hereby granted premises belonging, or in any wise appertaining, and the reversions and remainders, rents, issues, and profits thereof; and all the estate, fight, title, interest, property, claim and demand whatsoever of them the said Grantor, as well at law as in equity, of, in, and to the same. To have and to hold the said lot or piece of ground above described with the buildings and improvements thereon erected, the hereditaments and premises hereby granted, or mentioned and intended so to be, with the appurtenances, unto the said Grantee, his/her/their heirs and assigns, to and for the only proper use and behoof of the said Grantee, his/her/their heirs and assigns forever. And the said Grantor for themselves, his/her/their heirs, executors and administrators do covenant, promise and agree, to and with the said Grantee, his/her/their heirs and assigns, by these presents, that they the said Grantor and their heirs, all and singular the hereditaments and premises hereby granted or mentioned and intended to be, with the appurtenances, unto the said Grantee, his/her/their heirs and assigns, against them, the said Grantor and his/her/their heirs, and against all and every person and persons whomever lawfully claiming or to claim the same or any part thereof, by, from or under, him, her, them or any of them, shall and will subject as aforesaid This is a conveyance from husband and wife into husband, and is therefore tax exempt. In Witness Whereo~ the said Grantor has hereunto set Us/her/their hands and seal. Dated the day and year fu'st above wriuen. SEALED AND DELIVERED In the Presence of us: WITNESS Sharon L. Etter ---ACKNOWLEDGEMENT--- STATE of Pennsylvania COUNTY of Dauphin On this the [~t~r'l Day of appeared March, 2001 · before me, a Notary Public, personally Richard M. Etter, Jr. known to me, or satisfactorily proven, to be the persons whose names are subscribed to the within instrument and acknowledged that the executed the same for the purposes therein /? contained. I hereunto set my hand and ofticial ~~public~ ] CHARLES I. HINSON, No,ap/' Pu~ I I Hafrbbu~g, PA Dauphl~ Ooenty ~ My ~o~ Expires Feb. 28, 2005J -°-.4 CKNOWLEDGEMENT--. STATE of Pennsylvania COUNTY of On this the appeared Day of Mamh, 2001 , before me, a Notary Public, personally Sharon L. Etter known to me, or satisfactorily pwven, to be the persons whose names are subscribed to the within instrument and acknowledged that the executed the same for the purposes therein contained. ~;~..,r~t t,l./aereunto set my hand and offimal seal. ., :," :' ,. ~..~'C- ".. ~ Ad&ess of the G~tce hcrc~ is: ~ AgenffAttorney for Grantee:~ Notary Public ~ ~.~'o, Cumberia~i Co<~my ~ omm~.~,~ Ex.es Oa L 2o0~ PROMISSORY NOTE References in the shaded area are for Lenders use only and do not limit the applicability of this document to any parfieular loan or item. Borrower: RICHARDM. ETTER, JR. (SSN: 169-44--6292 Lender: ORRSTOWNBANK 259 MT. ZION RD. P.O. Box 2S0 CARLISLE, PA 17013 .~../'7 Shippensburg, PA 17257 PROMISE TO PA~. ~ER, ~. ("~ffower") prorates lo p~ Io ORRSTOWN BANK (%ender), or order, In ~1 money of ~e Unlled States of ~, the prlncl~l ~ount of Three Hundred Eigh~ Five Thou~nd & ~1~ ~ti~s (~5,~,00), Io~lher with Interest on the unpaid principal ~ance from March 15, 2~1, until paid in ~11. PAYMENT. Subj~t lo ~y p~ment c~an~s re.fling from chants In the Index, Borrower will ~ this I~ on de.nd, or If no de~d m~e, In 2~ p~ments of ~,3~.~ e~h ~ment. ~rr~er's first payment Is due ~rll lC, ~I, and ~1 ~b~uent ~ments ~e due on the ~ ~ of ~h month ~er that. ~rmwer's final ~menl will be due on March 15, 2~1, ~d will ~ ~r ~1 pHncl~ ~d ~1 interest not yet ~ld. P~men/s Include p~ncipal and Interest. The annual inter~t rote for this Note is computed on a ~/~ b~is; t~t ~, by applying the ratio of the annual interest rote over a year of 360 da~, multiplied by the outstanding pd~ipal balance, multiplied by the actual numb~ of da~ the principal balance is ou~tanding, Borrower wilt pay Lender at Lenders address shown above ~ st such other place as Lender ~y in wdfing. Unless othe~ise agr~d or required by eppJi~ble law, payments will be applied flint to acc~ed unpaid intem~t, then to principal, and any remaining amount to any unpaid colorlon cos~ and late charges. V~I~E INTEREST RATE. The interest rote on this Note is subj~t to change kom time to time ba~d on chang~ in an independent index which is the W~L ~E~ PRIME (the ~nde~). The Index is not n~essa~ily the lowest rate charged by Lender on ~s I~ns. If the index b~om~ unavailable during the term of this I~n, Lender may designate a substitute index after notice to Boffow~. Lender witi tell Bo~ower the cu~ent Index rate upon Bo~ower's requ~t, Boffower ~ndemtands that Lender may make loans based on other rates as well. The infarct rate c~nge will not ~ur more often than ~ch day. The Index cu~ent~ Is 8.S~% ~r annum. The Inlemst rate to ~ applied to ~e unpaid principal balance of this Note will ~ at a ra~ eq~l ~ ~e Index, r~lting In an Initial tale of 8.5~% per ~num. NOTICE: Under no circumstances wifi the inler~t rate on this Note be more than the m~mum rate allowed by app~caDle law. Whenever increases ~cur in the interest ~ate, Lender, at ~ op~on, may do one or more of the following: (a) increase Bo~ower's paymen~ to ensure Boffower's ~oan will pay off by i~ original final matuH~ date, (bi incre~e go.owens paymen~ to cover a~ruing interest, (c) incr~se the number of Borrower's payments, and (d) con,hue Bo~ower's paymen~ at the same amount and incr~se Bo~ower's finaJ payment, PREPAYMENT. Borrower may pay without penal~ all or a poAion of the amount owed eaHier than it is due. Eady payments Will not, units sgr~ to by Lender in wdfing, relieve Borrower of Bo~ower's obligation to continue to make paymen~ under the payment schedule. Rather, they witi redu~ p~ipal balance due and may result in Borrower making fewer payments. LATE CHARGE. If A payment is 16 ~s or more late, Borrower will be charged 5.~0% of the regula~ ~heduled payment or $50.~, whichever Is grater. DEFA~T. Borrower will be in default if any of the following happens: (a) Borrower fails to make any payment when due. (bi Bo~ower breaks any promise Borrower his made te Le~der, or Borrower fails to comply with or to pedorm when due any other term, obligation, covenant, or condition contained in this Note or any agr~ment related to this Note, or in any other agr~ment or loan Boffower has with Lender. (c) Bo~ower defaul~ un~r any loan, e~ension of credit, s~ufi~ agr~ment, purchase or ~Je5 agr~ment, or any other agreement, in favor of any other creditor 0r pe~on that may materially aff~t any of Borrower's prope~ or Bo~ower's abi~i~ to repay this Note oc pedorm Borrower's obligations under this Note or any 0f ReAred D~ume~ts. (d} Any representation 0r statement made or furnished to Lender by Borrower or on Bo~ower's behalf is false or misleading in any mate~aJ resp~t either now or ~t the time made or furnished. {e) Borrower dies or b~omes i~soivent, a r~eiver is appointed for any pad ~ pcope~, Boffower mak~ an assignment for the benefit of creditom, or any pre.ding is commenced either by Bo~ower or against Bo~owec ~nder any bankruptcy or insolvency laws. (fi Any oreditor ~es to take any of Boffower's prope~ on or in which Lender has a lien or ~ud~ interest. ~is includes a garnishment of any of Borrower's accoun~ with Lender. (g) Any of the even~ alepH,ed in this default s~tion occum with r~pect to any guarantor of this Note. (h} A material adveme change ~cum in Boffower's flnanciaJ condition, or Lender believes the prosper of payment ped~mance of the Indebtedness is impaired. (ii Lender in good faith d~ms itself ins~ure. If a~y def~uft, other than a default in payment, is curable and if Bo~ower has not b~n given a notice of a brach of the ~me pro~sion of this Note within the pr~eding ~elve {12) months, it may ~e cured (and no event of default wilt have occu~ed) ~ Bo~ower, after r~ei~ng wfi~en notice ~m Lender demanding cum of such default: (a) cures the default within fifteen (15) da~; or (bi if the cum requires more than fifteen (15) da~, immediately initiates steps which Lender d~ms in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessa~ steps sufficient to produce compliance as soon as reasonably practical LENDER'S RIG.S. Upon default, Lender may, a~er gi~ng such notices as required by applicable Jaw, d~lare the entire unpaid pHncipeJ balance this Note and all ~ccrued unpaid interest immediately due, and then Borrower will pay that amount. Upon default, including ~ilure to pay upon ~nal manualS, Le~de~, at its eption, may also, if permiffed under applicable law, increase the variable interest rate on this Note to 4.~ pe~en~ge poin~ over the Index. The interest rote wifi not exc~d the m~imum rate pertained by appli~ble law. Lender may hire or pay someone el~ to help this Note if Borrower d~s not pay. Bo~ow~ also wil~ pay Lender that amount. This includes, subj~t to any limi~ under appli~}e law, Lenders afforneys' f~s and Lender's I~al expenses whether or not there is a lawsuit, including aEorne~' ~s and I~al e~enses for bank~tcy pr~eedi~s (including effods to modi~ or vacate any automatic stay or ~njunc~on), appeals, and any anticipated p~t-judgment collation se~. If not prohibited by applicable law, Borrowe~ also will pay any coud ~ests, in addition to all other sums prodded by law, ft judgment is entered in conn~tion with this Note, i~terest wii[ co~tin~ to accrue on this Note a~r judgment a~ the infarct ~ate appli~bIe to this Note at the time judgment is entered. This Note has been ~etiver~ to Lender and accepted by Lender In the Commonwealth of Pennsylvania. I1 there Is a I~It, ~orr~er agr~s u~n Lender's request to ~bmit to the JuH~lction of the couds of CUmbe~and Count, the Commonwealth of Penn~lvanla. ~IS Note ~all be ~vemed by and const~ed In ~cordance wfth the I~s of the Commonwealth of Pennsylvania. RIG~ OF S~OFF. Bo~ower grants to Lender ~ contractual s~ud~ interest in, and hereby assigns, conve~, delivers, pledges, a~d transfers to Lender all Borrower's dght, title and interest in and to, Borrower's accounls with Lender (whether choking, ~ngs, or some other a~ount), including without limitation ail accoun~ held jointly with someone else and all accounts Borrower may open in the future, excluding however aft I~ and Ke~h s~eunts, end a~l trust A~oun~ for which the grant of a secud~ interest would be prohibited by law. Bo~ower authorizes Lender, to the e~ent permiffed by appli~ble law, to charge or setoff ail sums owing on this Note against any and all such account. C~TER~. This Note is s~ured by a Mortgage and an ~signment of All Rents dated March 15, ~1, to Lender on real prope~ I~ted in CUMBERiNg Cou~, C~monweA~th of Penns~vania, all the terms and conditions of which are hereby incorporated and made a pan o~ this Note. ~IT "B" 03-,15-200; PROMISSORY NOTE Page 2 Loan No (Continued) . . FINANCIAL STATEMENTS. The Borrower agrees to provide the Lender with Federal Tax Returns and/or CPA prepared Finenciai Statements and any other financial information, required by the Lender's Originlal Commitment Letter to the Borrower, on an annual basis. If the Lender does not receive the required financial information within two hundred seventy (270) days of the Borrower's fiscal year end, the Lender has the right to increase the interest rate charged on this Note by 0.25%. The Borrower shall receive wrfften notification ten {10) days prior to the Lender increasing the interest rate charged on this Note. GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or dghts of Lender shall not preclude Lender's right to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower end any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether es maker, guarantor, accommodation maker or endorser, shell be released from liability. All such parties agree that Lender may renew or extend (repeatedly end for any length of time) this Ican, or release any party or guarantor or ccilateral; or impair, fail to realize upon or pedect Lender's security interest in the ccilateral; and lake any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other then the pa~y with whom the modification is made. if any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY iRREVOCABLY AUTHORIZES AND EMPOWERS ANY A'~'ORNEY OR THE PROTHONOTARy OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TiME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN A3-1'ORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFiDAViT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED iN TH~S NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTtL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WiTH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: × V~'i&ble Rate. Irlstallment. LASER PRO, Reg. U.S. P~t. & T,M. Off., Var. 3,29¢ (C) C(3ncentre× 2001 All rights reserved. [PA- D20 F3.29;[ P3.29a 07606CL.LN C2.OVL] ,.tUSINESS LOAN AGREEME,_, Borrower: RICHARD M. ETTER, JR. (SSN: 169-44-6292) Lender: ORRSTOWN BANK 259 MT. ZION RD. P.O. Box CARLISLE, PA 17013 Shlppenshurg, PA 17257 THIS BUSINESS LOAN AGREEMENT ~_.,,q,~ee~'. ETTER, JR. ("Borrower") and ORRSTOWN BANK ("Lender") Is made and executed on the following terms and c~#~--tflpr~/-~y(~ er,,/~[,~es~'eived prior commercial loans from Lender or has applied to Lender for a commerctal loan or loans and other tin.loT a~:~:om~i~j~a~fis, Id~uding those which may be deecdbe~ on any exhibit or schedule attached to this Agreement. All such Ioans~.ll,.nd._fldLil(LC. ll~a~ommodl!R~ons, !,o, get_h,,er with all future loans.and fin. an. clot accommodations from Lender to Borrower, are referred to In tl111~::~l.~lil'ee'l~ In~lVlduatiy as the Loan and collectively as the Loans. Borrower understands and agrees that: (a) In granting, renewing, or extending any Loan, Lender is relying upon Borrower's representstloas, warranties, and agreements, as set torth In this Agreement; (b) the granting, renewing, or extending of any Loan by Lender at all times shall be subject to Lender's Sole Judgment and discretion; and (c) all such Loans shall be and shall remain subject Io the following terms and conditions of this Agreement. TERM. This Agreement shall be effective as of March 15, 2001, and shall continue thereafter until all Indebtedness ct Borrower to Lender has been performed in tull and the parties terminate this Agreement in wdting. DEFINITIONS. The following words shall have the following meanings when used in this Agreement. Terms net otherwise defined in this Agreement 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 Amedca. Agreement. The word "Agreement" means this Business Loan Agreement, as this Business Loan Agreement may be amended er modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time. Borrower. The word '~orrower~ means RICHARD M. ~ I I ~R, JR.. The word "Borrower" also includes, as applioeble, all subsidiaries and affiliates of Borrower as provided below in the paragraph lifted "Subsidiaries and Affiliates." CERCLA, The word "CERCLA" means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended. Collateral. The word "Collateral" means and includes without limitation all property and assets granted as collateral secudty for a Loan, whether real or personal property, whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a secudty interest, mortgage, deed of trust, assignment, pledge, chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease or consignment intended as a secudty device, or any other sacudty or lien interest whatsoever, whether created by law, contract, or otherwise. ERISA. The word "~RISA" means the Employee Retirement Income Secudty Act of 1974, as amended. Event of Default. The words "Event of Default" mean and include without limitation any of the Events of Default set fodh below in the section titled "EVENTS OF DEFAULT." Grantor. The word "Grantor" means and includes without limitation each and all of the persons or entities granting a Security Interest in any Collateral for the Indebtedness, including without limitation all Borrowers granting such a Security Interest. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with any Indebtedness. Indebtedness. The word "indebtedness" means and includes without limitation all Loans, together with all other obligations, debts and liabilities of Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower, or any one or more of them; whether now or hereafter existing, voluntary or involuntary, due or not due, absolute or contingent, liquidated or unliquidatad; whether Borrower may be liable individually or jointly with others; whether Borrower may be obligated as a guarantor, surety, or otherwise; whether recovery upon such Indebtedness may be or hereafter may become barred by any statute of limitations; and whether such Indebtedness may be or hereafter may become otherwise unenforceable. Lender. The word "Lender" means ORRSTOWN BANK, its successors and assigns. Loan. The word "Loan" or 'Loans" means and includes without limitation any and all commercial loans and financial accommodations from Lender to Borrower, whether now or hereafter existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule attached to this Agreement from time to time. Note. The word "Note" means and includes without limitation Borrower's promissory note or notes, if any, evidencing Borrower's Loan obligations in favor of Lender, as well as any substitute, replacement or refinancing note or notes therefor. Permitted Liens. The words "Permiffed Liens" mean: (a) liens and secudty interests securing Indebtedness owed by Borrower to Lender; (b) liens for taxes, assessments, or similar charges either not yet due or being contested in good faith; (c) liens of materialman, mechanics, warehousemen, or carders, or other like liens sdsing in the ordinary course of business and sesudng obligations which are not yet delinquent; (d) pumhasa money liens or purchase money secudty interests upon or in any proper'b/ acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permiffed to be incurred under the paragraph of this Agreement titled "[ndebtadness and Liens"; (e) liens and seCurity interests which, as of the date of this Agreement, have been disclosed to and approved the Lender in wdting; and (f) those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of Bomower's assets. Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, secudty agreements, mortgages, deeds of trust, and ail other instruments, agreements and documents, whether new or hereafter existing, executed in connection with the Indebtedness. Security Agreement. The words "Security Agreement" mean and include without limitation any agreements, promises, covenants, arrangements, understandings or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating a Security Interest. Security Interest. The words "Security Interest" mean and include without limitation any type of collateral security, whether in the form of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel modgage, chaffel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or rifle retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise. 03-,15-2oot BUSINESS L,OAN AGREEME[ Loan No (Continue~) SARA. The word "SARA" means the Superfund Amendments and Reauthorization Act of lg86 as now or hereafter amended. CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial Loan Advance and each subsequent Loan Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of the conditions set fodh in this Agreement and in the Retateq Documents. Loan Documents, Borrower shall provide to Lender in form satisfactory to Lender the following documents for the Loan: (a) the Note, (b) Secudty Agreements granting to Lender secudty interests in the Collateral, (c) Financing Statements perfecting Lender's Security Interests; (d) evidence of insurance as required below; and (e) any other documents required under this Agreement or by Lender or its counsel Payment of Fees and Expenees. Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document. Representations and Warranties. The representations and warranties set fodh in this Agreement, in the Related Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct. No Event of De~'ault. There shall not exist at the time of any advance a condition which would constitute an Event of Default under this AgreemenL REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of Loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at ail times any Indebtedness exists: Orga~lzetlon. Borrower is an individual borrowing for commercial purposes. Authorization, The execution, delivery, and performance of this Agreement and all Related Documents by Borrower, to the extent to be executed, delivered or periormed by Borrower, have been duly authorized by all necessary action by Borrower; do not require the consent or approval of any other person, regulatory authority or governmental body; and do not conflict with, result in a violation of, or constitute a default under (a) any provision of any agreement or other instrument binding upon Borrower or (b} any law, governmental regulation, court decree, or order applicable to Borrower. Financial Information. Each financial statement of Borrower supplied to Lender truly and completely disclosed Borrower's financial condition as of the date of the statement, and there has been no material adverse change in Borrower's financial condition subsequent to the date of the most recent financial statement supplied to Lender. Borrower has no matadal contingent obligations except as disclosed in such financial statements. Legal Effect. This Agreement constitutes, and any instrument or agreement required hereunder to be given by BOrrower when delivered wilt constitute, legal, valid and binding obligations of Borrower enforceabta against Borrower in accordance with their respective terms. Properties. Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in wdting to Lender and as accepted by Lender, and except for property tax liens for taxes not presenfiy due and payable, Borrower owns and has good title to ail of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or financing statements relating to such properties, All of Borrower's properties are titled in Borrower's legal name, and Borrower has not used, or filed a financing statement under, any other name for at least the last five (5) years. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in thts Agreement, shatl have the same meanings as set forth in the "CERCLA," "SARA," the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (a) Dudng the period of Borrower's ownership of the propedies, there has bean 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 any of the properties. (b) Borrower has no knowledge of, or reason to believe that there has been (i) any use, generation, manufacture, storage, freetment, disposal, release, or threatened release of any hazardous waste or substance on, under, about or from the properties by any prior owners or occupants of any of the properties, or (ii) any actual or threatened litigation or claims of any kind by any person retafing to such matters. (c) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the properties shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, about or from any of the properties; and any such activity shaft be conducted in compliance with all applicable federal, state, and Iocar laws, regulations, end ordinances, including without limitation those laws, regulations and ordinances described above. Borrower authorizes Lender and its agents to enter upon the properties to make such inspections and tests as Lender may deem spprepdate to determine compliance of the properties with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower's expense and for Lender's purposes only and shall not be construed 1o oreete any responsibility or liability on the part of Lender to Borrower or to sny other person. The representations and warranties contained herein are based on Borrower's due dtligence in investigating the properties for hazardous waste and hazardous substances. Borrower hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Borrower becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnity and hold harmiass Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the propedies. The provisions of this section of the Agreement, including the obligation to indemnify, shall survive the payment of the Indebtedness and the termination or expiration of this Agreement and shall not be affected by Lender's acquisition of any interest in any of the properties, whether by foreclosure or otherwtse. Litigation end Claims. No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower's financial condition or properties, other than litigation, claims, er other events, if any, that have been disclosed to and acknowledged by Lender in writing. Taxes. To the best of Borrower's knowledge, all tax returns and reports of Borrower that are or were required to be filed, have been filed, and ell taxes, assessments and other governmental charges have been paid in full, except those presently being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided. Lien Priority. Unless otherwise previousry disclosed to Lender in writing, Borrower has not entered into or granted any Secudty Agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of Borrower's Loan and Note, that would be pdor or that may in any way be superior to Lender's Security Interests and dghts in and to such Cotlateral. Binding Effect. This Agreement, the Note, ail Secudty Agreements directly or indirectly securing repayment of Borrower's Loan and Note and all of the Rotated Documents are binding upon Borrower as well as upon Borrower's successors, representatives and assigns, and are legally enforceable in accordance with their respective terms. Commercial Purposes. Borrower intends to use the Loan proceeds solely for business or commercial related purposes. Employee Benefit Plane. Each employee benefit plan as to which Borrower may have any liability complies in all matadal respects with all applicable requirements of law and regulations, and (i) no Reportable Event nor Prohibited Transaction (as defined in ERISA) has occurred with 03-15-2001' BUSINESS LOAN AGREEMEI~ Page 3 Loan No (Continued) · ' respect to any such plan, (ii) Borrower has not withdrawn from any such plan or initiated steps to do so, (iii) no steps have been taken to terminate any such plan, and (iv) there are no unfunded liabilities other than those previously disclosed to Lender in wHtieg. Location of Borrower's Offices and Records. Borrower's place of business, or Borrower's Chief executive office, if Borrower has more than one place of business, is located at 259 MT. ZION RD., CARLISLE, PA 17013. Unless Borrower has designated otherwise in wdting this location is also the office or offices where Borrower keeps its records concerning the Collateral. Information. All information heretofore or contemporaceously herewith furnished by Borrower to Lender for the purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all information hereafter furnished by or on behalf of Borrower to Lender will be, true and accurate in every material respect on the date as of which such information is dated or certified; end none of such information is or will be incomplete by omitting to state any matedal fact necessary to make such information not misleading. Survival of Representations and Warranties. Borrower understands and agrees that Lender, without independent investigation, is relying upon the above representations and warranties in making the above referenced Loan to Borrower. Borrower further agrees that the foregoing representations and warranties shall be continuing in nature and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in f~JII, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur. AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while this Agreement is in effect, Borrower will: Litigation. Promptly inform Lender in writing of (a) all material adverse changes in Borrower's financial condition, and (b) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor. Financial Records. Maintain its books and records in accordance with generally accepted accounting principles, applied on a consistent basis, and permit Lender to examine and audit Borrower'S books and records at all reasonable times. Additional Information. Furnish such additional information and statements, tiers of assets and liabilities, agings of receivables and payables, inventory schedules, budgets, forecasts, tax returns, and other reports with respect to Borrower's financial condition and business operations as Lender may request from time lo time. Insurance. Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower's propedies and operations, in form, amounts, coverages and with insurance companies reasonably acceptabts fe Lender. Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days' prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in fever of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person. In connection with all policies covering assets in which Lender holds or is offered a secudty interest for the Loans, Borrower will provide Lender with such ~ess payable or other endorsements as Lender may require. Insurance Repolls. Furnish to Lender, upon request of Lender, reports on each existing insurance policy showing such information es Lender may reasonably request, including without limitation the following: (a) ttie name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the properties insured; (e) the then current properly values on the basis of which insurance has been obtained, and the manner of determining lhose values; and (f) the expiration date of the policy, in addition, upon request of Lender (however not more often than annually), Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid by Borrower. Other Agreements. Comply with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party and notify Lender immediately in writing of any default in connection with any other such agreements. Loan Proceeds. Use all Loan proceeds solely for the following specific purposes: Business use only. Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies end liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the data on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower's properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (a) the legality of the same shall be contested in good faith by appropriate proceedings, and (b) Borrower shall have established on its books adequate reserves with respect to such contested assessment, tax, charge, iow, lien, or claim in accordance with generally accepted accounting practices. Borrower, upon demand of Lender, will furnish to Lender evidence of payment of the assessments, taxes, charges, levies, liens and claims and will authorize the appropriate governmental official to deliver to Lender at any time a written statement of any assessments, taxes, charges, levies, liens and claims against Borrower's properties, income, or profits. Perforn~ance. Perform and comply with all terms, conditions, and provisions set forth in this Agreement and in the Related Documents in a timely manner, and promptly notify Lender if Borrower learns of the occurrence of any event which constitutes an Event of Default under this Agreement or under any of the Related Documents. Operations. Maintain executive and management personnel with substantially the same qualifications end experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable and prudent manner and in compliance with ell applicable federal, state and municipal laws, ordinances, rules and regulations respecting its properties, charters, businesses and operations, including without limitation, compliance with the Americans With Disebilifies Act and with all minimum funding standards and other requirements of ERISA and other laws applicable to Borrower's employee benefit plans. Ins~oection. Permil employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's other properties and to examine or audit Borrower's books, accounts, and records end to make copies end memoranda of Borrower's books, ecccunts, and records. If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third pen'y, Borrower, upon request of Lender, shall notify such party to permit Lender free access to such records at att reasonable times and fe provide Lender with copies of any records it may request, ell at Borrower's expense. Compliance Cerllflcete. Unless waived in wdting by Lender, provide Lender at leest annually and at the time of each disbursement of Loan proceeds with a certificate executed by Borrower's chief financial officer, or other officer or person acceptable to Lender, certifying that the representations and warranties set forth in this Agreement ere true and correct as of the date of the certificate and further certifying that, as of the date of the certificate, no Event of Detault exists under this Agreement. Environmental Compliance end Reports. Borrower shall comply in all respects with all environmental protection federal, state and local laws, statutes, regulations and ordinances; not cause or permit to exist, as a result of an intentional or unintentional action or omission on its pert or on the part of any third party, on property owned and/or occupied by Borrower, any environmental activff,j where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or Icca[ governmental authorities; shall furnish to Lender promptly end in any event within thirty (30) days after receipt thereof a copy of any 03-15-2001' BUSINESS LOAN AGREEMEI~ Page 4 Loan No (Continue~l) · . notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission on Borrower's part in connection with any environmental activity whether or not there is damage to the environment and/or other natural resources. Additional Aeaurancee. Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security ~nfarasts. RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law, rule, regulation or guideline, or the interpretation or application of any lhereof by any court or administrative or governmental authority (including any request or policy not having the force of law) shall impose, modify or make applicabta any taxes (except U.S. federal, state or Iocat income or franohise taxes imposed on Lender), rase~e requirements, capital adequacy requirements or other obligations which would la) increase the cost to Lender for extending or maintaining the credit facilities to which this Agreement rotates, (b) reduce the amounts payable to Lender under this Agreement or the Related Documents, or (c) reduce the rote of return on Lender's capital as a consequence of Lender's obligations with respect to the credit fecilities to which this Agreement relates, then Borrower agrees to pay Lender such additional amounts as will compensate Lender therefor, within five (5) days after Lender's written demand for such paymecl, which demand shati be accompanied by an exptanation of such imposition or charge and a calcutatien in reasonable detail of the additional amounts payable by Borrower, which explanation and calculations shall be conclusive in the absence of manifest error. NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the pr~or written consent of Lender: Indebtedness and Liens. (a} Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement, create, incur or assume indebtedness for borrowed money, including capital leases, (b) except as allowed as a Permitted Lien, sell, transfer, morfgege, assign, pledge, lease, grant a secu~ty interest in, or encumber any of Borrower's assets, or (c) sell with recourse any of Borrower's accounts, except to Lender. Continuity of Operations. (a) Engage in any business activities substantially different than those in which Borrower is presently engaged, or (b) cease operations, liquidate, merge, transfer, acquire or consolidate with any other entity, change ownership, dissolve or transfer or sell Collateral out of the ordinary course of business. Loans, Acquisitions and Guaranties. (a) Loan, invest in or advance money or assets, (b) purchase, create or acquire any interest in any other enterprise or entity, or (c) incur any obligation as surety or guarantor other than in the ordinary course of business. CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (a) Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender; (b) Borrower or any Guarantor dies, becomes incompetent or insolvent, tiles a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (c} there occurs a mafedal adverse change in Borrower's financial condition, in lhe financial condition of any Guarantor, or in the value of any Coltateral securing any Loan; (d) any Guarantor seeks, claims or otherwise attempts to limit, nlodify or revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or (e) Lender in good faith deems itself insecure, even though no Event of Default shall have occurred. RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrower's 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 open in the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by [aw. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness against any and uti such accounts. EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default under this Agreement: Default on Indebtedness. Failure of Borrower to make any payment when due on the Loans. Other Defaults. Failure of Borrower or any Grantor to comply with or to perform when due any other term, obligation, covenant or condition contained in this Agreement or in any of the Rotated Documents, or failure of Borrower to comply with or to perform any other term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default In Favor of Third Parltas. Should Borrower or any Grantor default under any loan, extension of credit, security agreement, purchase or seles agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's or any Grunter's ability to repay the Loans or perform their respective obligations under this Agreement or any of the Rotated Documents. False Statements. Any warranty, representation or statement made or furnished lo Lender by or on behalf of Borrower or any Grantor under this Agreement or the Related Documents is false or misleading in any matadal respect at the time made or furnished, or becomes false or misleading at any time thereafter. Defective Coltalerallzation, This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any Security Agreement to create a valid and perfected Security Interest) at any time and for any reason. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the ioselvency of Borrower, the appointment of a receiver for any pad of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreciosure or forfeiture pruceadings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower, any creditor of any Grantor against any collafarel securing the Indebtedness, or by any governmental agency. This includes a garnishment, attachment, or levy on or of any of Borrower's deposit accounts with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower or Grantor, as the case may be, as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding, and if Borrower or Grantor gives Lender written notice of the creditor or forfeiture proceeding and furnishes reserves or a surety bond for the creditor or forfeiture proceeding satisfactory to Lender. 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. Adveree Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender, in good faith, deems itself insecure. Right to Cure. If any default, other than a Default on Indebtedness, is curable and if Borrower or Grantor, as the case may be, has not been 0~15--2ool BUSINESS LOAN AGREEMEI~ Pa.ge,5 Loan No (Continued) ' ' given a notice of a similar default within the preceding twelve (12) months, it may be cured (and no Event of Default will have occurred) if Borrower or Grantor, as the case may be, after receiving written notice from Lender demanding cure of such default: (a) cures the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes ali reasonable and necessary steps sufficient to produce complianCre as soon as reasonably practical EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and obligations of Lender under this Agreement or the Relatad Documents or any other agreement immediately will terminate and, at Lender's option, all Indebtedness immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the type described in the "lnsoivency" subsection above, such acceleration shall be automatic and not optional In addition, Lender shall have all the dghts and remedies provided in the Relatad Documents or available at law, in equity, or otherwise. Except as rcay be prohibited by applicable law, all of Lender's dghts and remedies shall be cumulative and may be exercised sioguiady or concurrentJy. Election by Lender to pumue any remedy shalr not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender's right to declare e default and to exercise its dghts and remedies. MISCELLANEOUS PROVISIONS. The folJowiog miscellaneous provisions are a part of this Agreement: Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. NO alteration of or amendment to this Agreement shall be effective uniass given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Applicable Law. This Agreement 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 Agreement shall be governed by and construed In accordance with the laws of the Commonwealth of Pennsylvania. Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement. Consent to Loan Participation. Borrower agrees and consents to Lender's seia or transfer, whether now or later, of one or more participation interests in the Loans to one or more pumhesers, whether related or unrelated to Lender. Lender may provide, without any limitation whatseaver, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy it may have with respect to such matters. Borrower additionally waives any and all notices of sale of participation interests, as well as aJJ notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation interests will be considered es the absolute owners of such interests in the Loans and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower's obligation under the Loans irrespective of the failure or insolvency of any holder of any interest in the Loans. Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against Lender. Costs and Expenses. Borrower agrees to pay upon demand all of Lender's expenses, including without limitation attorneys' fees, incurred in connection with the preparation, execution, enforcement, modification and collection of this Agreement or in connection with the Loans made pursuant to this Agreement. Lender may pay someone else to help collect the Loans and to enfome this Agreement, and Borrower will pay that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees end 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. Borrower also will pay any court costs, in addition to all other sums provided by law. Notices. All notices required to be given under this Agreement shall be given in wdfiog, may be sent by teletacsimile (unless otherwise required by law), end shall be effective when actually delivered or when deposited with a nationally recognized overnight courier or deposited in the United States mail, first class, postage prepaid, addressed to the party to whom the notice is to be given at the address shown above. Any party may change its address for notices under this Agreement by giving formal wdtten notice to the other parties, specifying that the purpose of the notice is to change the party's address. To the extent permitted by applicable law, if there is more than one Borrower, notice to any Borrower will constitute notice to all Borrowers. For notice purposes, Borrower wilt keep Lender informed at all times of Borrower's current address(es). Severabllity. If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or ucenfomeeble as lo any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable. Subsidiaries and Afftlleles of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation any representation, warranty or covenant, the word "~orrower" as used herein shall include all subsidiaries and affiliates of Borrower. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender to make any Loan or other financial accommodation to any subsidiary or affiliate of Borrower. Successors and Assigns. All covenants and agreements contained by or on behalf of Borrower shall bind its successors and assigns and shall inure to the benefit of Lender, its successors and assigns. Borrower shall not, however, have the dght to assign its rights under this Agreement or any interest therein, without the pdor Written consent of Lender. Survival. All warranties, representations, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to Lender under this Agreement shall be considered to have been relied upon by Lender and will survive the making of the Loan and delivery to Lender of the Related Documents, regardless of any investigation made by Lender or on Lender's behalf. Time Is of the Essence. Time is of the essence in the performance of this Agreement. Waiver. Lender shell not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such righl or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's dght otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, er between Lender and any Grantor, shall constitute a waiver of any of Lender's rights or of any obligations of Borrower or of any Grantor as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent in subsequent instances where such consent is required, and in a~l cases such consent may be granted or withhe[d in the sole discretion of Lender. 03.~15-200"1 BUSINESS LOAN, AGREEMEI~ Page 6 Loan No (Continued) · , BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT, AND BORROWER AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF MARCH 15, 2001. THIS AGREEMENT HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: JR. LENDER: ORRSTOWN BANK By: AuthoflzedOfficer LASER PRO, Reg. U.S. P~t, & T.M. Off., Var. 3.29c (C) Concentrex 2001 All rights reserved, [PA-C40 F3.29 P3.29a 0760SCL.L N C2.OVL] RECORDATION REQUESTED BY: WHEN RECORDED MAIL TO: ....... ::" ' "CO,.~.TT"P~, '01 Iq~l~ 19 fir 9 SPACE ABOVE THIS LINE IS FOR R~COR(~R'S U~E ONLY MORTGAGE THIS MORTGAGE IS DATED MARCH 15, 2001, between RICHARD M. =l [ER, JR., whose Eddress Is 259 MT. ZION RD., CARLISLE, PA 17013 (referred to below as "Grantor"); and ORRSTOWN BANK, whose address is P.O. Box 250, ShlppenM~urg, PA 17257 (referred to below se "Lender"). In CUMBERLAND County, Commonwealth of Pennmjlvsnls (the "Real Property"): SEE ATTACHED 11~e Real Property or It~ address is commonly known ss 101 EAST HIGH ST., CARLISLE, PA 17013. EXHIBIT PROMISSORY NOTE Principal References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing ..... has been omitted due to text tangth limitations. ~orroY~r: RICHARD la. ~ ~=H ,JR. (SSN: 1~.44--.~2~2) Lender: ORRSTOWN BANK 259 MT. ZION RD. CARLISLE, PA 17013 Principal Amount: $32,000.00 STONE]~GE OFFICE 427 STONE'~E DRIVE CARLISt. E, P& 17~13 8.000% Date of Note: April 18, 2003 Maturity Date: October 18, 2003 PROlalSE TO PAY. RICHARD M. ETTER JR. ("Borrower") p~omlues to pay to 0RRSTOWN BANK ("Lender"), or o~der, In I;Rvful money of the United States of America, the principal amount of Thirty-two Thousand & 0e/10~ Dollars ($32,000,00), together with Interest at the rate of 8.000% par asnum on the unpaid principal beisnce from April 18, 2003, until paid In full. PAYMENT. Borrower will pay this loan on demand. Payment In full la due immediately upon Lender's demand. If no demand is made, Borrower will pay this loan In one principal payment of $32,000.00 ptus Interest no October 18, 2003. This payment due on October 18, 2003, will be for all prieeipal and all accrued interest not yet paid. in edctitten, Borrower will pay regular monthly payments of Mt accrued unpaid interest due as of each payment dete, beginning May 18, 2003, with all subsequent interest payments fo be due on the same ~ of each month after that. Unless ethanes agreed or required by applicable law, payments will be applied flrat fo accrued unpaio interest, then to principal, and any remaining amount to any unpaid collection co~s and late charges. The ennuel interest rate f~- this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over e year of :360 Hays, multiplied by the outstanding principsi betance, multiplier] by the acfust numpar of Hays the principal b~ is outstanding. Borrower will pay I.~r at Lender's address strewn a~ove or at such other place as Lender may designate in writing. PREPAYMENT. Borrower may pay without penalty ell or a portion of the amount owed eadier then it is due. Eady payments witl not, untess agreed to by Lender in wdting, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments madced "paid in lufF, "without recourse", or elmitar tangusge. If Borrower sands such e payment, Lender may accept it without lesing any of Lender's rights under this Note, and Borrower will remain doligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument.that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other 0ond~ons or timitetions or ss futl satisfaction of a disputed amount must be m~lled er delivered to: ORRSTOWN BANK, P.O. BOX 250 SHIPPENSBUF{G, PA 17257. LATE CHARGE, if a payment is 16 days or more late, Borrower will be charged 5.0~0% of the reguioriy scheduled payment or $50.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final m~tufity, the tof~l sum due under this Note will bear interest from the date of acceleration or matudty at the interest rate on this Note. The interest rate will not exceed the ma~dmum rate permitted by applicable law. DEFAULT. Each of the following shall constitute an event of deteuti (~vent of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. BO;TOWer fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply v/ith or to pedorm any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty, representation or statement mede or furnished to Lender by Bon'ower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or InsOlvency. The death of Borrower or the dissolution or termination of Borrower's ex~stence as a going business, the insolvency of Borrower, the appointment of a re~zver for any part of Borrower'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 Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral secudng the loan. This includes a garnishment of any of Bon'ower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Bon'ower as to the validity or reesonabteness of the claim which is the basis of the creditor or forfditure proceeding and if Borrower gives Lender wdtien notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an smount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or Ilabitity under, any guaranty of the indebtedness evidenced by this Note. In the event of a de,th, 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 any Event of Default. Adverse Change. A matedal adverse change occurs in Ecrrower's financial condition, or Lender believes the prospect of payment or performance cf this Note is impaired. insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a defautt in payment is curable and if Borrower has not been given a notice of s bre~ch 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: (1) cures the default within fifteen (15) days; or (2) if the cure requires more then fittesn (15) days, immediately iniUates steps which Lender deems in Lender's ecie discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to prepuce compliance as soon es reasonably practical LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by epplisabte law, declare the entire unpaid principal balance on this Note and a[I accrued unpaid interest immediately due, and then ach'ewer will pay that amouR. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help cdiiect this Note if Borrower does not pay. Oorrower will pay Lender that amount. This includes, subiect to any tim[ts under epplicabie law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a EXHIBIT "E" L .SINESS ENTERPRISE AFFI. .,VIT Rof~encas in the sheded are~ are fc~ Lender's ese only and do not Itmit the appl~bilit'/of this document to any part, cuter Io~n o~ item. Any item abo'~e containing ..... has been omitted due to text length limitations. Borrower; RICI. iARD M. ETTER JR. (SSN: 169-~4-6292) Lender: ORRSTOWN BANK 2~9 I~'. ZtON RD. STONEt'~DGE OEFICE CARLI~.E, PA 17013 427 STONEHEDGE DRIVE CARLISLE, PA 17~313 AFFIDAVIT COUNTY OF ) ) SS COMMONWFJU.TH OF PENNSYLVANIA) Borrower, RICHARD M. ETTER JR., has entered Into a credit agreement With ORRSTOWN BANK ~laled Nxll 18, 2{~3. &~rrower hereby certifies that the proceeds of this exter~sto~ of credit are to be utlli;~ed in the c~x~luct of a business enterprise engageit in the business of_ /'~'~'3~_ ~4~z~a,r-, /~,~4,[,4,~,~' (the "business enterprise"). The undersigned exercises actual c~ntrol over the Subscribed and s~om to by Borrower, under pensity of perjury, this / ~ ~ of ,Z~.~/Z/~ ,20 ~.~. THIS AFFIDAVIT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AFFIDAVIT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. ill R ~: H A.~'D'I~.'ETT E~ ~IR., Individually Sworn to and subscribed before me this Notary Public day of Notafia! See1 Do~fs A- wik, Notary Pubtic Hopewel Twp. Cumberland County My Comml~ton Exp res May 9, 2005 .... , P. ZIEGLER R'X, ORDER OF DEEDS ~4 9, ERLAND COUNTY-F,', ~SSIGNMENT OF MORTGAGE 1NTERF. ST THISAGRF. F. MENT, madcthis /~ dayof ~?£tc. ,2003, byand between RICHARD M. ETTER, JR_, of Carlisle, Cumberland County, Pennsylvania, hereinafter referred to as "Etter," and O. siown Bank, of Carlisle, Cumberland County, Pennsylvania, h~xeina~r referred to as "Bank.~ WITNESSETH: WHEREAS, Etter is borrowing the sum of thirty-two thousand ($32,000.00) dollars from the Bank; and WHEREAS, the Bank seeks security for said loan; and WHKREAS, the parties have agreed that as pa~ of that security, Etter will assign his interest in a mortgage as here6nafter provided. NOW, THEREFORE, in consideration of the aforementioned recitals and the hereinafter provisions, Etter and Bank hereby promise, covenant and agree: 1. Etter, and Sharon L. Etter, hold a second mortgage on property situate at 264 South Hanover Street, Carlisle, Cumbedand County, Pennsylvania, said property owned by Randall C. Brevik of Carlisle, Cumberland County, Pennsylvania. 2. Etter, and Sharon L. Etter, hold a second mortgage on said property, said terms are in the amount of seventy thousand ($70,000.00) dollars at the imerest rate of fight (8%) percent amortized over a period of twenty (20) years, with a balloon payment to be due and payable in five (5) years, said mortgage dated the 31~ day of August, 1998, payable as of August 31, 2003. 3. In consideration of the loan by Bank of thirty-two thousand ($32,000.00) dollars unto Etter, Etter does assign all his right, title and interest in said mort~ge unto Bank, and to the Note executed by Brevik in favor of Etter. 4. This assignment of all right, title and interest in said second mortgage of Etter shall be in addition to such other security as the Bank det~mines appropriate to secure the aforementioned thirty-two thousand ($32,000.00) dollar loan. EXHIBIT "F" 5. Each party agrees to execute whatever documents are necessary to effectuate the a~ment of this mortgage unto Bank, it being the express intern of the parties that all fight, title and interest in said mortgage that is owned or to which Etter is entitled, shall be assigned to Bank as security for a thirty-two thousand ($32,000.00) dollax loan in favor of Bank. 6. Each party has had the opportunity to review this Assignment, and each party, intending to be legally bound, executes the Assignment on behalf of Etter and Bank. with the Bank acknowled~ng that the signature hereinafter is an authorized si,~mmture on behalf of the Bank. 7. It is intended by the parties that this Assignment shall be recorded in the Office of the Recorder of Dccds in and for Cumberland County, and further, Etter and Bank agree that upon exeoation of this Assignment, ~aex party may contact Randall C. Brevik to advise Mr. Brevik of this assi~tmment of this second mortgage. 8. It is furthex agreed between the parties that at any time after this assignment, Bank shall have the sole and exclusive right to contact Brevik and direct that all payments that are due from Brevik to Etter be made payable to the Bank. said payment would then be credited against the initial thirty-two th~,~and ($32,000.00) dollar loan as set forth above, first to interest owed, and then to prindpal. 9. Etter and Bank agree that should Brevik default in the payment of the debts under said mortgage, that Bank shall have the authority and right to foreclose on said mortgage as Etter currently ha~ and Etter assign.~ all rights for collection, including that of default and foreclosure unto the Bank herein. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, do hereby set their hands and seals the day and year first above written. Richard M. Etter, Jr. ORRSTOWN BANK By 696 --ACKNOWLEDGEMENT-- before me, a Notary Public, personally appeared known to me, or satisfactorily proven, to be the persons whose names ate subscribed to the within instrument and that the executed the same for the purposes therein contained. I hereunto set my hand and officLal seal. Notary Public NOTARIAL SEAL CHARLES I. HINSON, Notary Public City of Harri~urg, Dauphin County PA My Commission F_xpire~ Feb. 28, 2005 :d --ACKNOWLF_.DGEMENT-- STATE of PENNSYLYANIA COUNTY of 0n this the ~ ~Day of ~l~',' { ~ ~'~il~, before me, a No~ Public, ~rso~ty appe~ed ~om to me, or sa~factorily proven, to be ~e pe~o~ whose nines ~e subschbed to ~e wi~h ~sment ~d ac~owledged · at ~e executed ~e s~e for ~e p~oses ~ere~ con~ed. · I here~to set my h~d ~d official seal. NOTARI~ S~L CHARLES L HIN~N, ~ p~ C~ ~ H~, D~n ~ PA No~ Public ~'~ [ My.~mm~ ~ F~. 28, ~ I Ce~i~ this to be recorded In Cumberland Coun~ PA Recurd~.of~d~ ~uu~ WHEN RECORDED MAIL TO: !::~ ;::i!T P, NiCO,qDER OF DEEDS ~ DZRLAND COUNTY~ ;'/ 03flP~22 Pfl1239 MORTGAGE THIS MORTGAGE dated April 18, 2003, le made end executed between RICHARD M. =~ ~mR JR., wl~ose address ie 259 MT, ZION RD,, CARLISLE. PA 17013 (referred to below es "Grantor") and ORRSTOWN SANK, whose address 18 42? STONEHEDGE DRIVE, CARLISLE. PA 17013 (referred to below am "Lender"). Pro~erty") located n CUMBERLAND County, ~ommonwealth of Pennmylven a: SEE ATI'ACHED The Real Property or Ite addreSs 18 commonly known ee 101 E. HIGH ST,, CARLISLE, PA 17013. BKISOTPGOSq6 EXHIBIT "G" MORTGAGE (Continued) Page 2" ~ MORTGAGE (Continued) p,~ge 4 MORTGAGE (Continued) CERTIFICATE OF RESIDENCE INDIVIDUAL ACKNOWLEDGMENT BI(1807P60550 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT ,OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-455 CIVIL TERM CIVIL ACTION-LAW MORTGAGE FOPd~CLOSURE PRAECIPE TO REINSTATI~ TO THE PROTHONOTARY: Please reinstate the Complaint filed in the above-captioned matter on February 4, 2004. Respectfully submitted, OfiJ~EN, BARIC & SCHE~ David A. Baric, Esquire I.D. 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/orrstownbank/etter/reinstate, pra SHERIFF'S RETURN - NOT FOUND CASE NO: 2004-004S5 P COMM©NTWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ORRSTOWN BANK VS ETTER RICHARD M JR R. Thomas Kline duly sworn according inquiry for the within named DEFENDANT ETTER RICHARD M JR unable to locate Him in his bailiwick. ,Sheriff or Deputy Sheriff, who being to law, says, that he made a diligent search and but was He therefore returns the COMPLAINT - MORT FORE , the within named DEFENDANT , NOT POUND , as to ETTER RICHARD M JR 259 MT ZION ROAD CARLISLE, PA 17013 PER HIS SISTER, DEFENDANT IS OUT OF STATE UNTIL MIDDLE TO LATE MARCH. Sheriff's Costs: Docketing 18.00 Service 3.45 Not Found 5,00 Surcharge 10,00 ,00 36.45 So answe~ / /~,-~ R. Thomas ~line Sheriff of Cumberland County OBRIEN BARIC SCHERER 02/18/2004 Sworn and subscribed to before me this ~ day of J~ A.D. Pro~bfonotary ~ SHERIFF'S RETURN - CASE NO: 2004-00455 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS ETTER RICHARD M JR REGULAR JODY SMITH , Cumberland County, Pennsylvania, says, the within COMPLAINT - MORT FORE was served upon ETTER RICHARD M JR DEFENDANT , at 1425:00 HOURS, on the 12th day of March at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 by handing to R/CHARD M ETTER JR a true and attested copy of COMPLAINT - MORT FORE Sheriff or Deputy Sheriff of who being duly sworn according to law, the , 2004 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Do cketi ng 18.00z~~/'~F~j~ Service .00 Affidavit .00 ~ ' Surcharge 10.00 R. Thomas Kline .00 28.00 03/12/2004 OBIREN BARIC SCHERER Dept~y Sheriff Sworn and Subscribed to before me this ~'~ day of ~ 'Prothonotary ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- 00455 CIVIL TERM CIVIL ACTION-LAW 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 Bank and against the Defendant, Richard M. Etter, Jr., for failure to file an answer to the Complaint of Plaintiff. A true and correct copy of the return of service from the Sheriff of Cumberland County is appended hereto as Exhibit "A." A true and correct copy of the Notice of Default is appended hereto as Exhibit "B." A true and correct copy of the Certificate of Mailing for the Notice of Default is appended hereto as Exhibit "C." I certify that the Notice of Default was given in accordance with Pa.R.C.P. 237.1. Plaintiff requests judgment in the mount of $434,398.73 as set forth in the Complaint. Respectfully submitted, David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 SHERIFF'S RETURN - CASE NO: 2004-00455 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS ETTER RICHARD M JR REGULAR JODY SMITH , Cumberland County, Pennsylvania, says, the within COMPLAINT - MORT FORE was served upon ETTER RICHARD M JR DEFENDANT , at 1425:00 HOURS, on the 12th day of March at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 RICHARD M ETTER JR a true and attested copy of Sheriff or Deputy Sheriff of who being duly sworn according to law, by handing to the , 2004 COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18 Service Affidavit Surcharge 10 28 00 00 00 00 00 00 Sworn and Subscribed to before me this day of A.D. Prothonotary So Answers: R. Thomas Kline 03/12/200% OBIREN BARIC SCHERER Dep~y Sheriff EXHIBIT "A" ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR, 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- 00455 CIVIL TERM CIVIL ACTION-LAW MORTGAGE FORECLOSURE TO: Richard M. Etter, Jr. 259 Mt. Zion Road Carlisle, Pennsylvania 17013 Date of Notice: April 8, 2004 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE 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 YOUR 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 TO FIND OUT WHERE YOU CAN GET LEG~AL HELP. EXHIBIT "B" Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 Telephone: (717) 249-3166 ~q~_ EN, BARI~D S~R David A. Bade, Esquire 19 West South Street Carlisle, PA 17013 (717) 249-6873 u.s. POST^L SERWCE CERTIFICATE OF MAILING MAY RE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVlOE FOR INSURANCE--POSTMASTER Received From; O~6ri~n ~ l~r~u~k,~her~r O~e piece of ordinary mail addressed PS Form 3817, Mar. 1989 EXHIBIT "C" CERTIFICATE OF SERVICE I hereby certify that on April 21, 2004, I, David A. Baric, Esquire, of O'Brien, Baric & Scherer did serve a copy of the Praecipe To Enter Default Judgment Pursuant To Pa.R.C.P. 1037, by first class U.S. mail, postage prepaid, to the parties listed below, as follows: Richard M. Etter, Jr. 259 Mt. Zion Road Carlisle, Pennsylvania 17013 David A. Baric, Esquire ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- 00455 CIVIL TERM CIVIL ACTION-LAW MORTGAGE FORECLOSURE TO: NOTICE OF JUDGMENT PURSUANT TO Pa.R.C.P. 236 Richard M. Etter, Jr. 259 Mt. Zion Road Carlisle, Pennsylvania 17013 Notice is hereby given to you of entw of a judgment against you in the above matter. Date: Prothonotaryv ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff RICHARD M. ETTER, JR. 259 MT. ZION ROAD CARLISLE, PA 17013 Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004- 00455 CIVIL TERM CIVIL ACTION-LAW MORTGAGE FOP, ECLOSURE PRAECIPE TO SATISFY JUDGMENT TO THE PROTHONOTARY: Please mark the judgment entered in the above-captioned matter on April 21, 2004 as having been satisfied. Respectfully submitted, David A. Baric, Esquire I.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 24%6873 dab.dir/orrstownbank/etter/satisfyjudgment, pra CERTIFICATE OF SERVICE I hereby certify that on May/~), 2004, I, David A. F~aric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Satisfy Judgment, by first class U.S. mail, postage prepaid, to the party listed below, as follows: P. Richard Wagner, Esquire Mancke, Wagner, Hershey & Tully 2233 North Front Street //~ Harrisburg, Penn~ sylvania 171lL0., J ] David A. Baric, Esquire