HomeMy WebLinkAbout08-2241Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
08- aaq I CivilTex-k
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
CONFESSION OF JUDGMENT
Pursuant to the authority of the Warrant of Attorney contained in the Note, a copy
of which is attached to the Complaint filed in this action, I appear for Defendants,
Sarago Enterprises, L.L.C. dba Sarago's Big Ugly Warehouse and Nikolas S. Sarago,
and confess judgment in favor of Plaintiff, Wachovia SBA Lending, Inc. and against
Defendant, as follows:
Principal Balance
Interest
Late Charges
Appraisal
Attorney's Fees Pursuant to
Note and respective
Guaranty (15%)
$1,063,973.70
52,651.51
6,135.00
5,000.00
167,493.78
Total as of March 27, 2008
$1,295,253.99
plus costs of this suit, continuing late charges, and continuing interest accruing at
the variable rate of Wall Street Journal Prime plus 2.50%, currently $400.28 per diem,
arising subsequent to March 27, 2008.
SOMACH & WESTER
BY:
Denise L. Wester, Esquire
Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
COMPLAINT
Plaintiff, Wachovia SBA Lending, Inc., through its attorneys, Somach & Wester,
files this Complaint pursuant to Pa. R.C.P. 2951(b) for judgment by confession and
avers the following:
1. Plaintiff, Wachovia SBA Lending, Inc., is a banking corporation organized and
existing under the laws of the State of New Jersey with offices located at 1620 East
Roseville Parkway, Suite 100, Roseville, CA 95661.
2. Defendant, Sarago Enterprises, LLC, is a Pennsylvania corporation that also
does business as Sarago's Big Ugly Warehouse with an address of 5267 Simpson
Ferry Road, Mechanicsburg, PA 17050 (hereinafter "Sarago")
3. Defendant, Nicholas S. Sarago, (hereinafter "N. Sarago"), is an adult
individual with a last known address of 633 S. Bedford Street, Carlisle, PA 17013.
4. On January 9, 2007, Defendant Sarago executed a US Small Business
Administration Note in favor of Plaintiff in the amount of One Million Five Hundred
Fifteen Thousand One Hundred and 00/100 ($1,515,100.00) Dollars (hereinafter
"Note"), a true and correct copy of which is attached hereto and incorporated herein by
reference as Exhibit "A."
5. On or about January 9, 2007, Defendant N. Sarago executed and delivered
to the Plaintiff a US Small Business Administration Unconditional Guarantee
(hereinafter "N. Sarago Guaranty"), a true and correct copy of which is attached hereto
and incorporated herein by reference as Exhibit "B."
6. Defendants are in default of the provisions set forth in the aforesaid Note and
the N. Sarago Guaranty for failure to pay all sums due and owing pursuant to the terms
of the Note and upon Plaintiff's demand. A true and correct copy of Plaintiff's counsel's
demand letter is attached hereto and incorporated herein by reference as Exhibit "C."
7. Neither the attached Note nor the N. Sarago Guaranty have been assigned.
8. Judgment has not been entered on the attached Note or the N. Sarago
Guaranty in any jurisdiction.
9. Judgment is not being entered by confession against a natural person in
connection with a consumer credit transaction.
10. As a consequence of the foregoing, Defendants are liable to Plaintiff under
the aforesaid Note and the N. Sarago Guaranty, respectively, as of March 27, 2008, as
follows:
Principal Balance
Interest
Late Charges
Appraisal
Attorney's Fees Pursuant to
Note and respective
Guaranty (15%)
$1,063,973.70
52,651.51
6,135.00
5,000.00
167,493.78
Total as of March 27, 2008
$1,295,253.99
WHEREFORE, Plaintiff, Wachovia SBA Lending, Inc. demands judgment in its
favor and against Defendants, Sarago Enterprises, LLC and Nikolas S. Sarago, jointly
and severally, in the sum of $1,295,253.99 as authorized by the Warrant appearing in
the attached Note and the N. Sarago Guaranty, plus costs of this suit, continuing late
charges, and continuing interest accruing at the variable rate of Wall Street Journal
Prime plus 2.50%, currently $400.28 per diem, arising subsequent to March 27, 2008.
SOMACH & WESTER
BY:
DENISE L. WE R, ESQUIRE
3
VERIFICATION
I, Chris Anderson, the undersigned, verify that I am a Special Assets Manager of
Wachovia Small Business Capital, that I make this verification on its behalf being
authorized to do so; and that the statements made in the foregoing pleading are true and correct
to the best of my knowledge, information and belief. I understand that the statements herein
made are subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to unworn falsification
to authorities.
DATE: q
S ANDERSON
EXHIBIT "A"
U.S. Small Business Administration
e
.Note
SBA Loan # 2602136009
SBA Loan Name o's Big U ! Warehouse
Sara
Date g
-/-t `07
Loan Amount $ 1,515,100.00
Interest Rate Prime Rate plus 2.500%
Interest Calculation: 360 day year 130 day months
Borrower Sara go Enterprises, L.L.C.
Operating Company Sara go Enterprises, L.L.C.
Lender Wachovia SBA Lending, Inc.
1. PROMISE TO PAY:
In return for the Loan, Borrower promises to pay to the order of Lender the amount of One Million,
Five Hundred Fifteen Thousand, One Hundred Dollars And No Cents ($1,515,100.00),
interest on the unpaid principal balance, and all other amounts required by this Note.
2. DEFINITIONS:
"Collateral" means any property taken as security for payment of this Note or any guarantee of
this Note.
"Guarantor" means each person or entity that signs a guarantee of payment of this Note.
"Loan" means the loan evidenced by this Note.
"Loan Documents" means the documents related to this loan signed by Borrower, any Guarantor,
or anyone who pledges collateral.
"SBA" means the Small Business Administration, an Agency of the United States of America.
3. PAYMENT TERMS:
Borrower must make all payments at the place Lender designates. The payment terms for
this Note are:The interest rate on this Note will fluctuate. The initial interest rate is 10.750%
per year. This initial rate is the prime rate on the date SBA received the Loan application,
plus 2.500%. The initial interest rate must remain in effect until the first change period
begins.
I?IQNI????ll??llll??l?ln
SBA Form 147 (0212612004) Version 4.1 Previous editions obsolete.
Page 1
Borrower must pay principal and interest payments of $20,657.00 every month beginning 2
months from the month of initial disbursement on this Note; payments must be made on the
first calendar day in the months they are due.
Lender will apply each installment payment first to pay interest accrued to the day Lender
receives the payment, then to bring principal current, then to pay any late fees, and will apply
any remaining balance to reduce principal.
The interest rate will be adjusted each calendar quarter (the "change period").
The "Prime Rate" is the prime rate in effect on the first business day of the month in which an
interest rate change occurs as published in The Wall Street Journal on the next business day.
The adjusted interest rate will be 2.500% above the Prime Rate. Lender will adjust the
interest rate on the first calendar day of each change period. The change in interest rate is
effective on that day whether or not Lender gives Borrower notice of the change.
Lender must adjust the payment amount at least annually as needed to amortize principal
over the remaining term of the Note.
If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate
becomes fixed at the rate in effect at the time of the earliest uncured payment default. If
there is no uncured payment default, the rate becomes fixed at the rate in effect.a_ t the time of
purchase.
All remaining principal and accrued interest is due and payable 10 years, 0 months from date
of initial disbursement.
LOAN PREPAYMENT:
Notwithstanding, any provision in this Note to the contrary:
Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal
balance at any time without notice. If Borrower prepays more than 20 percent and the Loan
has been sold on the secondary market, Borrower must:
a. Give Lender written notice;
b. Pay all accrued interest; and
c. If the prepayment is received less than 21 days from the date Lender receives the
notice, pay an amount equal to 21 days' interest from the date Lender receives the
notice, less any interest accrued during the 21 days and paid under subparagraph b.,
above.
If Borrower does not prepay within 30 days from the date Lender receives the notice, Borrower
must give Lender a new notice.
SSA Form 147 (0212612004) Version 4.1 Previous editions obsolete. Page 2
LATE CHARGE: If a payment on this Note is more than 10 days late, Lender may charge
Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment.
4. DEFAULT:
Borrower is in default under this Note if Borrower does not make a payment when due under this
Note, or if Borrower or Operating Company:
A. Fails to do anything required by this Note and other Loan Documents;
B. Defaults on any other loan with Lender;
C. Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its
proceeds;
D. Does not disclose, or anyone acting on their behalf does not disclose, any material
fact to Lender or SBA;
E. Makes, or anyone acting on their behalf makes, a materially false or misleading
representation to Lender or SBA;
F. Defaults on any loan or agreement with another creditor, if Lender believes the
. default may materially affect Borrower's ability to pay this Note;
G. Fails to pay any taxes when due;
H. Becomes the subject of a proceeding under any bankruptcy or insolvency law;
1. Has a receiver or liquidator appointed for any part of their business or property;
J. Makes an assignment for the benefit of creditors;
K. Has any adverse change in financial condition or business operation that Lender
believes may materially affect Borrower's ability to pay this Note;
L. Reorganizes, merges, consolidates, or otherwise changes ownership or business
structure without Lender's prior written consent; or
M. Becomes the subject of a civil or criminal action that Lender believes may materially
affect Borrower's ability to pay this Note.
5. LENDER'S RIGHTS IF THERE IS A DEFAULT:
Without notice or demand and without giving up any of its rights, Lender may:
A.. Require immediate payment of all amounts owing under this Note;
B. Collect all amounts owing from any Borrower or Guarantor;
C. File suit and obtain judgment;
D. Take possession of any Collateral; or
E. Sell, lease, or otherwise dispose of, any Collateral at public or private sale,-with or
without advertisement.
6. LENDER'S GENERAL POWERS:
Without notice and without Borrower's consent, Lender may:
A. Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it
chooses;
B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note
or any other Loan Document, and preserve or dispose of the Collateral. Among other
things, the expenses may include payments for property taxes, prior liens, insurance,
appraisals, environmental remediation costs, and reasonable attorney's fees and
costs. If Lender incurs such expenses, it may demand immediate repayment from
Borrower or add the expenses to the principal balance;
C. Release anyone obligated to pay this Note;
D. Compromise, release, renew, extend or substitute any of the Collateral; and
E. Take any action necessary to protect the Collateral or collect amounts owing on this
Note.
SBA Form 147 (02126/2004) Version 4.1 Previous editions obsolete. Page 3
7. WHEN FEDERAL LAW APPLIES:
When SBA is the holder, this Note will be interpreted and enforced under federal law, including
SBA regulations. Lender or SBA may use state or local procedures for filing papers,
recording documents, giving notice, foreclosing liens, and other purposes. By using such
procedures, SBA does not waive any federal immunity from state or local control, penalty, tax
or liability. As to this Note, Borrower may not claim or assert against SBA any local or state
law to deny any obligation, defeat any claim of SBA, or preempt federal law.
8. SUCCESSORS AND ASSIGNS:
Under this Note, Borrower and Operating Company include the successors of each, and Lender
includes its successors and assigns. '
9. GENERAL PROVISIONS:
A. All individuals and entities signing this Note are jointly and severally liable.
B. Borrower waives all suretyship defenses.
C. Borrower must sign all documents necessary at any time to comply with the Loan
Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on
Collateral.
D. Lender may exercise any of its rights separately or together, as many times and in
any order it chooses. Lender may delay or forgo enforcing any of its rights without
giving up any of them.
E. Borrower may not use an oral statement of Lender or SBA to contradict or alter the
written terms of this Note.
F. If any part of this Note is unenforceable, all other parts remain in effect.
G. To the extent allowed by law, Borrower waives all demands and notices in connection
with this Note, including presentment, demand, protest, and notice of dishonor.
Borrower also waives any defenses based upon any claim that Lender did not obtain
any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired
Collateral; or did not obtain the fair market value of Collateral at a sale.
14. STATE-SPECIFIC PROVISIONS: .
A. CONFESSION OF JUDGMENT. If payment of the indebtedness evidenced by this
Note, or any part thereof, shall not be made when due and at maturity, by
acceleration or otherwise, the undersigned hereby authorize and empower any
attorney of any Court of Record within the United States to appear for the
undersigned in any Court, or before any Clerk thereof, and confess judgment against
the undersigned either jointly or severally in favor of the Holder of this Note for the
amount then due thereon, with the interest thereon aforementioned and the cost of
suit and attomeys' fees of fift een percent (15%), hereby waiving and releasing all
errors and rights of exemption, appeal, stay of execution, inquisition and extension
upon any levy on real estate, or personal property to which the undersigned may
otherwise be entitled under the laws of any State or possession of the United States
now in force or which may hereafter be passed. If this Note is referred to any
attorney for collection, and payment is obtained without the entry of a judgment, then
the undersigned shall pay to Holder attorneys' fees in the amount aforesaid. If there
be more than one undersigned, their liability shall be joint and several, any use of the
singular herein may also refer to the plural and vice versa, and the use of any gender
shall be applicable to all genders.
B. None
SBA Form 147 (02/2612004) Version 4.1 Previous editions obsolete. Page 4
11. BORROWER'S NAME(S) AND SIGNATURE(S):
By signing below, each individual or entity becomes obligated under this Note as Borrower.
Sarago Entpfgrises, L.L.
By: Date:
Chri toph rago,®Manager
By. .e1 Dater
Nikolas S. Sarago, Manager
SBA Form 147 (02/26!2004) Version 4.1 Previous editions obsolete. Page 5
EXHIBIT "B"
U.S. Small Hudam AdaunhdraUm U.S. Small Business Administration
Unconditional
r Guarantee
Aai,
SBA Loan # 2602136009
SBA Loan Name Sara o's Big Ugly Warehouse
Guarantor Nikolas S. Sara go
Borrower Sara go Enterprises, L.L.C.
Lender Wachovia SBA Lending, Inc.
Date
Note Amount $1 515100.00
1. GUARANTEE:
Guarantor unconditionally guarantees payment to Lender of all amounts owing under the
Note. This Guarantee remains in effect until the Note is paid in full. Guarantor must pay all
amounts due under the Note when Lender makes written demand upon Guarantor. Lender is
not required to seek payment from any other source before demanding payment from
Guarantor.
2. NOTE:
The "Note" is the promissory note dated in the principal amount
of One Million, Five Hundred Fifteen Thousand, One Hundred Dollars And No Cents
($1,515,100.00), from Borrower to Lender. It includes any assumption, renewal, substitution,
or replacement of the Note, and multiple notes under a line of credit.
3. DEFINITIONS:
"Collateral" means any property taken as security for payment of the Note or for any
guarantee of the Note.
"Loan" means the loan evidenced by the Note.
"Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor
or any other guarantor, or anyone who pledges Collateral.
"SBA" means the Small Business Administration, an Agency of the United States of America.
4. LENDER'S GENERAL POWERS:
Lender may take any of the following actions at any time, without notice, without Guarantor's
consent, and without making demand upon Guarantor:
A. Modify the terms of the Note or any other Loan Document except to increase the
amounts due under the Note;
SBA Form 148 (10.98) Previous editions obsolete. Page 1
B. Refrain from taking any action on the Note, the Collateral, or any guarantee;
C. Release any Borrower or any guarantor of the Note;
D. Compromise or settle with the Borrower or any guarantor of the Note;
E. Substitute or release any of the Collateral, whether or not Lender receives anything in
return;
F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private
sale, with or without advertisement;
G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender
chooses; and
H. Exercise any rights it has, including those in the Note and other Loan Documents.
These actions will not release or reduce the obligations of Guarantor or create any rights or
claims against Lender.
5. FEDERAL LAW:
When SBA is the holder, the Note and this Guarantee will be construed and enforced under
federal law, including SBA regulations. Lender or SBA may use state or local procedures for
filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By
using such procedures, SBA does not waive any federal immunity from state or against SBA
to deny any obligation, defeat any claim of SBA, or preempt federal law.
6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES:
To the extent permitted by law,
A. Guarantor waives all rights to:
1) Require presentment, protest, or demand upon Borrower;
2) Redeem any Collateral before or after Lender disposes of it;
3) Have any disposition of Collateral advertised; and
4) Require a valuation of Collateral before or after Lender disposes of it.
B. Guarantor waives any notice of.
1) Any default under the Note;
2) Presentment, dishonor, protest, or demand;
3) Execution of the Note;
4) Any action or inaction on the Note or Collateral, such as disbursements, payment,
nonpayment, acceleration, intent to accelerate, assignment, collection activity, and
incurring enforcement expenses;
5) Any change in the financial condition or business operations of Borrower or any
guarantor;
6) Any changes in the terms of the Note or other Loan Documents, except increases in
the amounts due under the Note; and
7) The time or place of any sale or other' disposition of Collateral.
C. Guarantor waives defenses based upon any claim that:
1) Lender failed to obtain any guarantee;
2) Lender failed to obtain, perfect, or maintain a security interest in any property offered
or taken as Collateral;
3) Lender or others improperly valued or inspected the Collateral;
4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured;
5) Lender impaired the Collateral;
6) Lender did not dispose of any of the Collateral;
7) Lender did not conduct a commercially reasonable sale;
8) Lender did not obtain the fair market value of the Collateral;
9) Lender did not make or perfect a claim upon the death or disability of Borrower or any
guarantor of the Note;
10) The financial condition of Borrower or any guarantor was overstated or has adversely
changed;
11) Lender made errors or omissions in Loan Documents or administration of the Loan;
SBA Form 148 (10.98) Previous editions obsolete. Page 2
12) Lender did not seek payment from the Borrower, and other guarantors, or any
Collateral before demanding payment from Guarantor;
13) Lender impaired Guarantor's suretyship rights;
14) Lender modified the Note terms, other than to increase amounts due under the Note.
If Lender modifies the Note to increase the amounts due under the Note without
Guarantor's consent, Guarantor will not be liable for the increased amounts and
related interest and expenses, but remains liable for all other amounts;
15) Borrower has avoided liability on the Note; or
16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan
Documents.
7. DUTIES AS TO COLLATERAL:
Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee.
Lender has no duty to preserve or dispose of any Collateral.
8. SUCCESSORS AND ASSIGNS:
Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its
successors and assigns. '
9. GENERAL PROVISIONS:
A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to
enforce this Guarantee, including, but not limited to, attorneys fees and costs.
B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays
Lender. SBA is not a co-guarantor with Guarantor. Guarantor has no right of
contribution from SBA.
C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the
Collateral until the Note is paid in full.
D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are
jointly and severally liable.
E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to
comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain
Lender's liens on Collateral.
F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender
requires.
G. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its
rights separately or together, as many times as it chooses. Lender may delay-or forgo
enforcing any of its rights without losing or impairing any of them.
H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to
contradict or alter the written terms of the Note or this Guarantee, or to raise a defense to
this Guarantee.
1. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other
parts will remain in effect.
J. CONSIDERATION. The consideration for this Guarantee is the Loan or any
accommodation by Lender as to the Loan.
10. STATE-SPECIFIC PROVISIONS:
A. CONFESSION OF JUDGMENT. If payment of the indebtedness evidenced by this
Guaranty, or any part thereof, shall not be made when due and at maturity, by
acceleration or otherwise, the undersigned hereby authorize and empower any attorney
of any Court of Record within the United States to appear for the undersigned in any
Court, or before any Clerk thereof, and confess judgment against the undersigned either
jointly or severally in favor of the Holder of this Guaranty for the amount then due
thereon, with the interest thereon aforementioned and the cost of suit and attorneys' fees
SBA Form 148 (10-98) Previous editions obsolete. Page 3
of fifteen percent (15%), hereby waiving and releasing all errors and rights of exemption,
appeal, stay of execution, inquisition and extension upon any levy on real estate, or
personal property to which the undersigned may otherwise be entitled under the laws of
any State or possession of the United States now in force or which may hereafter be
passed. If this Guaranty is referred to any attorney for collection, and payment is
obtained without the entry of a judgment, then the undersigned shall pay to Holder
attorneys' fees in the amount aforesaid. If there be more than one undersigned, their
liability shall be joint and several, any use of the singular herein may also refer to the
plural and vice versa, and the use of any gender shall be applicable to all genders.
B. None
11. GUARANTOR ACKNOWLEDGMENT OF TERMS:
Guarantor acknowledges that Guarantor has read and understands the significance of all
terms of the Note and this Guarantee, including all waivers.
12. GUARANTOR NAME(S) AND SIGNATURE(S):
By signing below, each individual or entity becomes obligated as Guarantor under this
Guarantee.
C (?
/
Date:
Ni o as S. Sarago
SBA Form 148 (10-88) Previous editions obsolete. Page 4
EXHIBIT "C"
SOMACH & WESTER
ATTORNEYS AT LAW
RICHARD BRENT SOMACH
DENISE L. WESTER`
'MEMBER PA. AND FLA. BARS
February 8, 2008
Sarago Enterprises, LLC
5267 Simpson Ferry Road
Mechanicsburg, PA 17050
Lee Termini
204 Crossgate Drive
1132 HAMILTON STREET • SUITE 201
ALLENTOWN, PENNSYLVANIA 18101
(610) 432-2244
TELEFAX (610) 432-5772
Sarago's Big Ugly Warehouse
5267 Simpson Ferry Road
Mechanicsburg, PA 17050
Christopher K. Sarago
1418 Red Hill Road
Clarks Summit, PA 18411 Dauphin, PA 17018
Nikolas S. Sarago
633 S. Bedford Street
Carlisle, PA 17013
Re: SBA Loan #: 2602136009
Lender: Wachovia SBA Lending, Inc.
Dear Gentlemen:
Please be advised that our firm has been retained by Wachovia with respect to the above-
referenced. The Loan is in default for failure to make timely payments as and when due.
Specifically, you have failed to make payments due and owing for December 2007 and all
subsequent months in the amount of $56,204.50. In addition, there are late charges in the amount
of $7,152.53 and NSF charges in the amount of $155.00 due and owing as of today's date. An
additional $1,024.30 in late charges will accrue at the close of business today.
As a result of the defaults, the Bank hereby demands payment in full of the outstanding
indebtedness due on the Loan. Following is a payoff on the Loan as of January 30, 2008:
Principal
Interest
Late Charges
TOTAL
$1,477,669.06
18,132.22
7,152.53
$1,502,953.81
Interest is currently accruing at the per diem rate of $400.28.
Sarago Enterprises, LLC
Sarago's Big Ugly Warehouse
Lee Termini
Christopher K. Sarago
Nikolas S. Sarago
February 8, 2008
Page 2
Please be advised that you will be contacted by a third party appraiser to make
arrangements for the appraiser to inspect and value the Lender's collateral. Absent an amicable
resolution reduced to writing and signed by all parties, the Lender has instructed our office to
promptly proceed with collection, which may include, but not be limited to, entering judgment
against each Borrower and/or Guarantors. The Borrower and Guarantors will also be responsible
for all legal fees and costs incurred by the Lender to collect the outstanding debt.
Should you have any questions or wish to discuss this further, you may contact Chris
Anderson of Wachovia at 916-233-8162 or have your attorney contact my office.
Yours truly,
p
DENISE L. WESTER
DLW/dw
cc: Chris Anderson, Wachovia Small Business Capital (via fax 866-233-8162)
r . • 'v
Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
PLAINTIFF'S AFFIDAVIT / AVERMENT
CONFESSION OF JUDGMENT FOR MONEY -
(XX) Pursuant to Pa. R.C.P. No. 2951(a)(2)(ii), I certify that this judgment is not
being entered by confession against a natural person in connection with a
consumer credit transaction.
(a) A consumer credit transaction means a credit transaction in which
the party to whom credit is offered or extended is a natural person
and the money, property or services which are the subject of the
transaction are primarily for personal, family or household
purposes.
CONFESSION OF JUDGMENT FOR POSSESSION OF REAL PROPERTY -
J- - •
( ) Pursuant to Pa. R.C.P. No. 297(a)(1), I certify that this judgment is not
being entered against a natural person in connection with a residential lease.
SOMACH & WESTER
DATE: 4 BY .
Denise L. Wester, Esquire
***********************
The above certification is made subject to the penalties of 18 Pa. C.S. Section 4904,
relating to unsworn falsification to authorities.
DATE:
Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
CERTIFICATE OF ADDRESSES
Plaintiff, Wachovia SBA Lending, Inc., is a banking corporation organized and
existing under the laws of the State of New Jersey with offices located at 1620 East
Roseville Parkway, Suite 100, Roseville, CA 95661.
Defendant, Sarago Enterprises L.L.C., is a Pennsylvania corporation that also
does business as Sarago's Big Ugly Warehouse, with an address of 5267 Simpson
Ferry Road, Mechanicsburg, PA 17050.
Defendant, Nicholas S. Sarago, is an adult individual with a last known address
of 633 S. Bedford Street, Carlisle, PA 17013.
I certify that the above facts are true and correct and that false statements herein
are made subject to the penalties of 18 Pa. C.A. § 4094, relating to unsworn falsification
to authorities.
SOMACH & WESTER
BY: dJ?`GJ
Denise L. Wester, Esquire
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Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
NOTICE OF FILING JUDGMENT
(XX) Notice is hereby given that a Judgment by Confession in the above-captioned
matter has been entered against you in the amount of $ I, 195, a53.gg
on Abril q , 2008.
(XX) A copy of all documents filed with the Clerk of Courts - Civil Division in support of
the within judgment is/are enclosed.
P thono Jerk, ivil Div.
BY:
If you have any questions regarding this Notice, please contact the filing party:
Denise L. Wester, Esquire
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
(610) 432-2244
(This Notice is given in accordance with Pa. R.C.P. 236.)
t
Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
Plaintiff
VS.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
No.: 08-2241 Civil Term
CONFESSION OF JUDGMENT
FOR MONEY
AFFIDAVIT OF SERVICE
I, Denise L. Wester, Esquire, attorney for Plaintiff, state that I sent by certified mail,
return receipt requested, the Notice under Rule 2958.1 of Judgment and Execution Thereon and
Notice Pursuant to 42 Pa. C.S.A.§ 2737.1 and Pa. R.C.P. 2959 Regarding Procedure to Strike or
Open Judgment and Entitlement to Costs and Reasonable Attorney Fees in the above-captioned
action to Defendant, Nicholas S. Sarago, on May 2, 2008, and that said Defendant did receive
same on May 5, 2008, as evidenced by the return receipts attached as Exhibit "A."
I verify that the statements made in this Affidavit of Service are true and correct and I
understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. Section
4904, relating to unworn falsification to authorities.
SOMACH & WESTER
BY: 0 , dpi' 1/-h-, A
DENISE L. WESTER, ESQUIRE
. : :.. . ...... ...,._.._..
P .n L7I' --40 . . _ - , _
¦ Ocmo(ete Items 1, 2, and 3. Also complete
Mm 4 N RWWcted Delivery is desired.
¦ Print your name-ld address on the reverse
so that we can return the cans to you.
¦ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
Nicholas S. Sarago
633 S. Bedford Street
Carlisle, PA 17013
A Slga ure
X(?40t"T
, ? Agent
? AdclNUM
B ed? (,J?`f? b C ?ate
D. Is delivery address difWent) turn item 1? ? Yes
If YES, enter delivery address below: ? No
3. Service Type
OerMW Mail ? Express Mail
? Registered ? Return Receipt for mwei uses
? Insured Mall ? C.O.D.
4. Restricted Delivery? (Extra Fee) ? Yes
2. Article Number 7005 1820 0004 4532 4263
(iiansfer fr M servke labs!)
PS Form 3811, February 2004 Domestic Return Receipt 102595-02-
EXHIBIT "A„
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v
Denise L. Wester, Esquire
Attorney ID No. 58921
Attorney for Plaintiff
Somach & Wester
1132 Hamilton Street, Suite 201
Allentown, PA 18101
610-432-2244
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA
CIVIL DIVISION - LAW
WACHOVIA SBA LENDING, INC.,
No.: 08-2241 Civil Term
Plaintiff
vs.
SARAGO ENTERPRISES, LLC, dba
SARAGO'S BIG UGLY WAREHOUSE, and
NIKOLAS S. SARAGO,
Defendants.
CONFESSION OF JUDGMENT
FOR MONEY
AFFIDAVIT OF SERVICE
I, Denise L. Wester, Esquire, attorney for Plaintiff, state that I sent by certified mail,
return receipt requested, the Notice under Rule 2958.1 of Judgment and Execution Thereon and
Notice Pursuant to 42 Pa. C.S.A.§ 2737.1 and Pa. R.C.P. 2959 Regarding Procedure to Strike or
Open Judgment and Entitlement to Costs and Reasonable Attorney Fees in the above-captioned
action to Defendant, Sarago Enterprises, LLC d/b/a Sarago's Big Ugly Warehouse, 5267
Simpson Ferry Road, Mechanicsburg, PA 17050, on May 2, 2008, and that said Defendant did
receive same on May 14, 2008, as evidenced by the return receipt attached as Exhibit "A."
I verify that the statements made in this Affidavit of Service are true and correct and I
understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. Section
4904, relating to unsworn falsification to authorities.
SOMACH & WESTER
BY: P??x C??Y ?U?Cki?
DENISE L. WESTER, ESQUIRE
4 . •
¦ Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desirbd.
¦ Print your name and address on the reverse
so that-We can return the cans to you.
M Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
Sarago Enterprises, LLC
d/b/a Sarago's Big Ugly
5267 Simpson Ferry Road
Mechanicsburg, PA 17050
A-
? Agent
13
Addrs
by ( Name) C. Dq) of
:Sow
S
D. is delivery address diifenazit from item 17
If YES, enter delivery address below: 131610
3. Service Type
WOirtifled Mail 13 E> Mall
? Registered 0 Return Receipt for Merchardbs
? Insured Mail ? C.O.D.
4. Restricted Delivery? (Extra Fee) C] Yes
2, Article Number 7005 1820 0004 4532 4270
MW MW from service label)
PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1
EXHIBIT "A"
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