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HomeMy WebLinkAbout08-5098MID PENN BANK, Plaintiff V. KENNETH S. BOLINGER, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA `Tate-, :No. CIVIL ACTION-LAW CONFESSION OF JUDGMENT FOR MONEY Pursuant to the authority contained in the warrant of attorney, a true and correct copy of which is attached to the complaint filed in this action, I appear for the defendants and confess judgment in favor of the Plaintiff and against Defendant as follows: Principal Balance: $303,397.18 Interest to 6/16/08: $3,283.26 Late Fees: $2,425.10 Attorneys' Fees: $30,668.04 (10% of principal balance and interest, as authorized by the warrant of attorney) Amount Due: $339,773.58 (Interest will continue to accrue as authorized by the Note) Respectfully submitted, TELLI, SCHIPTVAN, BROWN & CALHOON, P.C. - ? Via V . __.AA1111 _A, LV Merritt C. Reitzel, Esq. SERRATELLI, SCHIFF A , BROWN & CALHOON, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 Date: 8??Oe ?-.? ^,,' Cv - ?? ,...? ,,, ? ? ?-- ? X`17 _ - - N ?`i ?i ' ' - { ° .r i ?--?? L.,J ? Sr ?;- -`? '"? ? .. i'°.J _.? , ,..... °G Steven J. Schiffman, Esq. Merritt C. Reitzel, Esq. SERRATELLI, SCHIFFMAN, BROWN & CALHOON, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 PA ID Nos. 25488 & 92069 MID PENN BANK, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. No. KENNETH S. BOLINGER, Defendant CIVIL ACTION-LAW COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY Plaintiff files this complaint pursuant to Pa.R.C.P. 2951(b) for judgment by confession and avers the following: 1. Mid Penn Bank is an independently-owned community bank, with its primary place of business at 349 Union Street in Millersburg, Dauphin County Pennsylvania, 17061. 2. Defendant Kenneth S. Bolinger is an adult individual with a last known address at 1180 South Cameron Street, Harrisburg, Pennsylvania, 17104. 3. On November 23, 2005, defendant signed a promissory note evidencing its indebtedness under a loan from plaintiff in the amount of $320,000.00 ("Note"). A true and correct copy of the Note is attached hereto as Exhibit A. 4. Attached as Exhibit B is a Change in Terms Agreement which changed the payment due date from the 23rd of the month to the first of the month, and changed the maturity date to December 1, 2025. The Confession of Judgment provision was reincorporated into the Change in Terms Agreement. 5. Contrary to the terms and provisions of the Note, Defendant has failed to make payments as required since April of 2008. 6. Defendants' failure to make payments when due constitutes a default under the terms of the Note. 7. Judgment by confession is authorized under the terms of the Note. 8. The judgment sought herein is not against a natural person in connection with a consumer credit transaction. 9. The attached instrument has not been assigned. 10. Judgment has not been entered in any jurisdiction on the attached instrument authorizing confession. 11. As a result of the default, Defendant is liable to Plaintiff as follows: Account Number: 500033089 Principal Balance: $303,397.18 Interest through 8/22/08: $3,283.26 Late Fees: $2,425.10 Attorneys' Fees: $30,668.04 (10% of principal balance and interest, as authorized by the warrant of attorney) Amount Due: $339,773.58 (Interest will continue to accrue as authorized by the Note) WHEREFORE, Plaintiff demands judgment by confession in the amount of $339,773.58, plus additional interest, attorneys' fees, and costs, as authorized by the warrant of attorney. Respectfully submitted, TELLI, SCHI"AN, BROWN & CALHOON, P.C. St6 en J. Schiffrif? Merritt C. Reitzel, PA I.D. Nos 25488 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 Date: SA) O5 ?,?I,?y,+ fr r C? O Z(n CD CL o0 o C . V+7+z 0070 nom. o m Z n PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular ban or Item. Anv Item above containing "***' has been omitted due to text length limitations. Borrower: Kenneth S. Bolinger (SSN: 20142-6762) Lender: Mid Penn Bank 133 South 48th Street Allentown Boulevard Harrisburg, PA 17111 5500 Allentown Boulevard Harrisburg, PA 17112 Principal Amount: $320,000.00 Interest Rate: 6.600% Date of Note: November 23, 2005 PROMISE TO PAY. Kenneth S. Bolinger ("Borrower") promises to pay to Mid Penn Bank ("Lender"), or order, In lawful money of the United States of America, the principal amount of Three Hundred Twenty Thousand & 001100 Dollars ($320,000.00), together with interest at the rate of 6.600% per annum on the unpaid principal balance from November 23, 2005, until paid in full. PAYMENT. Borrower will pay this loan in accordance with the following payment schedule: The loan shall be payable over a term of twenty (20) years. Commencing December 23, 2005, the loan shall be payable in sixty (60) consecutive monthly installments, Including principal and Interest, in the amount of $2,423.00, based upon an amortization of twenty (20) years, with Interest calculated at a rate of six and six tenths (6.6076) percent per annum, with all subsequent payments due on the same day of each month after that. Five (5) years from the note date the Interest rate shall convert to a variable rate of one (1.0076) percent above the Wall Street Journal Prime Rate ("index"). The monthly installments shall be reviewed annually and read based upon the then outstanding principal balance, the remaining amortization period, and the Interest rate, in an amount sufficient to maintain the original amortization schedule. Provided, however, all outstanding principal, all accrued and unpaid int , and any other charges as may have been Incurred will be due and payable in full on or before December 23,,=W. 2-0' Lx- Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid Interest; then to principal; then to any unpaid collection costs; and then to any Into charges. The annual Interest rate for this Note is computed on a 3861360 basis; that is, by applying the ratio of the annual Interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance Is outstanding. Borrower will pay Lender at Lander's address shown above or at such other place as Lender may designate In writing. PREPAYMENT PENALTY. Upon prepayment of this Note, Lender is entitled to the following prepayment penalty: A penalty of two percent (5.0076) of the outstanding loan principal balance at the time of prepayment if the prepayment occurs during the first ban year; a penalty of four percent (4.00X) of the outstanding loan principal balance at the time of prepayment N the prepayment occurs during the second loan year; a penalty of three percent (3.00X) of the outstanding loan principal balance at the time of prepsymsnt If the prepayment occurs during the third loan year; a penalty of two percent (2.00%) of the outstanding loan principal balance at the time of prepayment it the prepayment occurs during the fourth loan year; a penalty of two percent (2.00%) of the outstanding loan principal balance at the thus of prepayment H the prepayment occurs during the fifth loan year. The prepayment penalty shall be in effect for the original five (5) year Interest rate period, and shall renew upon adjustment of the Interest rate for any ensuing five (5) year Interval, unless modified in writing. Notwithstanding anything to the contrary, Borrower may prepay this loan, without penalty, from internally generated funds. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than it Is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked 'paid in full", 'without recourse', or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated 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 slued or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Mid Penn Bank, Allentown Boulevard, 5500 Allentown Boulevard, Harrisburg, PA 17112. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $25.0, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, lender, at its option, may, N permitted under applicable law, increase the interest rate on this Note 5.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the existing interest rate provided for in this Note. DEFAULT. Each of the following shall constitute an event of default ('Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower 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 with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty, representation or statement made or fumished to Lender by Borrower 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 fumished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the Insolvency of Borrower, the appointment of a receiver for any part 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 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 securing the loan. This includes a gamishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount 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 liability under, any guaranty of the indebtedness evidenced by this Note. PROMISSORY NOTE Loan No: 500033089 (Continued) Page 2 Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount ATTORNEYS' FEES; EXPENSES. Lander may hire or pay someone else to help collect this Note H Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to Its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL Borrower acknowledges this Note is secured by the following collateral described in the security Instruments listed herein: (A) a Mortgage dated November 23, 2005, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. (B) an Assignment of All Rents to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. INCORPORATION OF COMMITMENT LETTER. The terms and conditions of a Commitment Letter dated November 8, 2005, between Lender, Borrower, together with any modifications and amendments, are hereby incorporated into this Note as 9 the Commitment Letter were restated herein in its entirety. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us If we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address: Mid Penn Bank, Allentown Boulevard, 5500 Allentown Boulevard, Harrisburg, PA 17112. GENERAL PROVISIONS.. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, 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 as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take 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 than the party with whom the modification is made. The obligations under this Note are joint and several. 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 ATTORNEY 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, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'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 THIS 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 UNTIL 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 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. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER- X (Seal) Kenn h S. Bolincjbr • • Chd,?6;} 6 L C r Cx hJZy0 o<W3 o o P Z HComo <W]pN ?o _ N Z 0 ( %NGE IN TERMS AGREEMI T 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 length limitations. BorrOWer: Kenneth S. Bolinger (SSN: 209-52-6762) Lender: Mid Penn Bank 133 South 48th Street Allentown Boulevard Harrisburg, PA 17111 5500 Allentown Boulevard Harrisburg, PA 17112 Principal Amount: $320,000.00 Interest Rate: 6.600% Date of Agreement: November 30, 2005 DESCRIPTION OF EXISTING INDEBTEDNESS. Note #500033088 in the amount of $320,000.00 dated November 23, 2005, together with any subsequent renewals and modifications. DESCRIPTION OF COLLATERAL The loan is secured by Mortgage and Assignment of Rents dated November 23, 2005. DESCRIPTION OF CHANGE IN TERMS. The payment due date will change from the 23rd of the month to the 1st of the month. The maturity date shall change to December 1, 2025. PROMISE TO PAY. Kenneth S. Bolinger ("Borrower") promises to pay to Mid Penn Bank ("Lender"), or order, In lawful money of the United States of America, the principal amount of Three Hundred Twenty Thousand & 00/100 Dollars ($320,000.00), together with interest at the rate of 6.600% per annum on the unpaid principal balance from November 30, 2005, until paid in full. PAYMENT. Borrower will pay this loan in accordance with the following payment schedule: The loan shall be payable over the remaining tern of twenty (20) years. Commencing January 1, 2005, the ban shall be payable in sixty (60) consecutive monthly Installments, including principal and interest, in the amount of $2,423.00, based upon the remaining t of twenty (20) years, with Interest calculated at a rate of six and six tenths (6.60%) percent per annum. Five (5) years from the date of this Agreement, the Interest rate shall convert to a variable rate of one (1.00%) percent above the Wall Street Journal Prime Rate ("Index"). The monthly installments shall be reviewed annually and reset based upon the then outstanding principal balance, the remaining amortization period, and the Interest rate, in an amount sufficient to maintain the original amortization schedule. Provided, however, all outstanding principal, all accrued and unpaid Interest, and any other charges as may have been incurred will be due and payable in full on or before December 1, 2025. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Interest on this Agreement is computed on a 3651360 simple Interest basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal bsloncs, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. PREPAYMENT PENALTY. Upon prepayment of this Agreement, Lender Is entitled to the following prepayment penalty: A penalty of five percent (5.00%) of the outstanding loan principal balance at the time of prepayment If the prepayment occurs during the first Agreemrertt year; a penalty of four percent (4.00%) of the outstanding town principal balance at the time of prepayment If the prepayment occurs during the second Agreement year; a penalty of three percent (3.00%) of the outstanding ban principal balance at the time of prepayment If the prepayment occurs during the third Agreement year; a penalty of two percent (2.00%) of the outstanding loon principal balance at the time of prepayment if the prepayment occurs during the fourth Agreement year; a penalty of two percent (2.0096) of the outstanding ban principal balance at the time of prepayment If the prepayment occurs during the frith Agreement year. The prepayment penalty shall be In effect for the five (5) year Interest rate period, and shall renew upon adjustment of the Interest rate for any ensuing five (5) year interval, unless modified in writing. Notwithstanding anything to the contrary, Borrower may prepay this loan, without penalty, from internally gsnereted funds. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than It is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Agreement, and Borrower will remain obligated 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 conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Mid Penn Bank, Allentown Boulevard, 5500 Allentown Boulevard, Harrisburg, PA 17112. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $25.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the interest rate on this Agreement 5.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Agreement, interest will continue to accrue on this Agreement after judgment at the existing interest rate provided for in this Agreement. DEFAULT. Each of the following shall constitute an Event of Default under this Agreement: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or In any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Agreement 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 existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part 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 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 securing the Indebtedness. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not CHANGE IN TERMS AGREEMEK Loan No: 500033089 (Continued) Page 2 apply lt there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount 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 liability under, any Guaranty of the Indebtedness evidenced by this Note. Adverse 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 believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Agreement and all accrued unpaid interest immediately due, and then Borrower will pay that amount ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Agreement If Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL Collateral securing other loans with Lender may also secure this loan. To the extent collateral previously has been given to Lender by any person which may secure this Indebtedness, whether directly or indirectly, it is specifically agreed that, to the extent prohibited by law, all such collateral consisting of household goods will not secure this Indebtedness. In addition, if any collateral requires the giving of a right of rescission under Truth in Lending for this Indebtedness, such collateral also will not secure this Indebtedness unless and until all required notices of that right have been given. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(les) should be sent t0 us at the following address: Mid Penn Bank, Allentown Boulevard, 5500 Allentown Boulevard, Harrisburg, PA 17112. MISCELLANEOUS PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Agreement without losing them. Borrower and any other person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no panty who signs this Agreement, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or Impair, fail to realize upon or perfect Lender's security interest in the collateral; and take 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 than the party with whom the modification is made. The obligations under this Agreement are joint and several. If any portion of this Agreement is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Agreement CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY 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 AGREEMENT AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS AGREEMENT AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'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 AGREEMENT OR A COPY OF THIS AGREEMENT VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS AGREEMENT 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 UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS AGREEMENT. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF 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. ;HANGE IN TERMS AGREEMEK Loan No: 500033089 (Continued) Page 3 PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: X" Cop. HmdwW SWId/ Sdaart, Nm. 17W, 7006. N F4W& P-d • PA PICFA 'M=.FC MUM PM VERIFICATION I, Greg Scheer, do hereby state, under penalty of 18 P.S. § 4904 relating to unsworn falsification to authorities, that I am an authorized representative of Mid Penn Bank, am authorized to give this verification on its behalf, and that the averments set forth in the foregoing complaint are true and correct to the best of my knowledge, information, and belief. Mid Penn Bank By. Greg Sc er Date: - _ ?? Authorized Representative AFFIDAVIT OF NON-MILITARY SERVICE I, Greg C. Scheer, being duly sworn according to law, depose and say that I am an officer of Plaintiff Mid Penn Bank, and I am authorized to make this affidavit on its behalf. I hereby affirm that to the best of my knowledge, Kenneth S. Bolinger is not currently serving in the United States Military, nor in any State or Territory thereof or its allies, as defined in the Soldiers' and Sailors' Civil Relief Act of 1940 and the amendments thereto. Greg C. Sc eer Sworn to and subs R*bed befo me this Z(5 day of U (WA , V ` A q)?? Notary Public COMMONWEALTH OF PENNSYLVANIA Notarial Seel Lisa A Conway, Notary Pubic Susquehanna Twp•, DaupNn County My Camn"on Expires March 24, 2011 Pennsylvania Association of Notaries CERTIFICATION I hereby certify the precise last known addresses of the parties are as follows: Defendant: Kenneth S. Bolinger 1180 South Cameron Street Harrisburg, PA 17104 Plaintiff: Mid Penn Bank 349 Union Street Millersburg, PA 17061 1? CQ? By: C I Greg Sc eer 1 LAJ r G"7 I"?'{ f 4't MID PENN BANK, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. No. 6> 7 TA KENNETH S. BOLINGER, Defendant : CIVIL ACTION-LAW NOTICE PURSUANT TO 42 Pa.C.S. 62737.1 Please take notice that the Plaintiff in this matter has entered judgment by confession against you in the amount of $339,773.58. You are entitled to a petition to "strike" or "open" the judgment. In order to do so, you must promptly file a petition with the Court of Common Pleas of Cumberland County, Pennsylvania, as required by Rule 2959 of the Pennsylvania Rules of Civil Procedure. Any such petition can be filed with the clerk or Prothonotary at the courthouse in Carlisle, Cumberland County. A petition is a formal statement of your basis for challenging the judgment. You must include the names of the parties at the top of the first page and the case number, which is shown above. The petition must state your reasons for challenging the judgment in separate numbered paragraphs. You have to sign the petition and include a sworn statement at the end of the document verifying that the facts you state in the petition are true and accurate. You will waive any defense and objections not included in your petition to strike or open. You must therefore make every effort to raise all possible issues and defenses in your petition to strike or open in order to avoid waiving any claims. If you elect to file a petition, you must meet the requirements of Rule 2959 of the Rules of Civil Procedure. A full copy of Rule 2959 is attached to this Notice. You may also have to comply with local rules of procedure in effect in the county where the judgment was entered. If you do not file a petition challenging the judgment, the Plaintiff may take steps to collect on the judgment by asking the Sheriff to seize your assets. Accordingly, you should immediately seek the advice of attorney. If you wish to discuss the matter with an attorney but do not know how to find one, you may request a referral by contacting the following agency: Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 1-800-990-9108 717-249-3166 Corporations may be unable to represent themselves in court. If the defendants include a corporation, the corporation must appear through an attorney if it intends to challenge the judgment. You may receive other papers and notices regarding the judgment. Those other papers do not negate or override this Notice. Likewise, this Notice is not intended to and does not negate any of the notices or information obtained in other papers that may be served upon you. We reiterate that you are required to act promptly if you wish to seek relief from the judgment. Under certain circumstances, you have only 30 days in which to file a petition after papers are served on you. Even if the 30 day rule does not apply, you must act promptly in order to protect your interests. Failing to act in a timely manner will render you unable to challenge the judgment at a later time. If you were incorrectly identified and judgment was entered against you in error you may be entitled to collect cost and reasonable attorney's fees as determined by the Court By:: t rney for Mi a Bank Rule 2959. Striking off or Opening Judgment. Pleadings. Procedure. (axl) Relief from judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open judgment must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has not stayed execution despite the timely filing of a petition for relief from the judgment and the presentation of prima facie evidence of a defense; and (ii) as provided by Rule 2958.3 or Rule 2973.3 (3) If written notice is served upon the petitioner pursuant to Rule 2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. (c) A party waives all defense and objections which are not in the petition or answer. (d) The petition and rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending deposition of the application to strike off the judgment. If the evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment. (f) The lien of the judgment or of any levy or attachment shall be preserved while the proceedings to strike off or open the judgment are pending. (g)(1) A judgment shall not be stricken or opened because of a creditor's failure to provide a debtor with instructions imposed by an existing statute, if any, regarding procedures to follow to strike a judgment or regarding any rights available to an incorrectly identified debtor. (2) Subdivision (g)(1) shall apply to (1) judgments entered prior to the effective date of subdivision (g) which have not been stricken or opened as of the effective date and (2) judgments entered on or after the effective date. -j rTl , N 'n m L Cil C C.S Catii vo MID PENN BANK, Plaintiff V. KENNETH S. BOLINGER, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Ot ' No. CIVIL ACTION-LAW NOTICE UNDER RULE 2958.1 OF JUDGMENT BY CONFESSION AND EXECUTION THEREON To: Kenneth S. Bolinger 1180 South Cameron Street Harrisburg, PA 17104 A judgment in the amount of $339,773.58 has been entered against you and in favor of the Plaintiff without prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this Notice is served on you. You may have legal rights to defeat the judgment or prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DON'T HAVE A LAWYER OR CANNON AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FOURTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 1-800-990-9108 717-249-3166 rw Ul N. +-.f rQ ,?,y MID PENN BANK, V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff :No. DS l._CUuI? ?% KENNETH S. BOLINGER, Defendant TO: Kenneth S. Bolinger 1180 South Cameron Street Harrisburg, PA 17104 CIVIL ACTION-LAW NOTICE Pursuant to Pa.R.C.P. 236, you are hereby notified that judgment by confession has been entered against you in the above-captioned matter. Date: SHERIFF'S RETURN - OUT OF COUNTY ? a CASE NO: 2008-05098 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MID PENN BANK VS BOLINGER KENNETH S' R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: 20LINGER KENNETH S but was unable to locate Him in his bailiwick. He therefore deputized the sheriff of DAUPHIN serve the within CONFESSION OF JUDGMENT On September 8th , 2008 , t attached return from DAUPHIN Sheriff's Costs: Docketing 18.00 Out of County 9.00 So Surcharge 10.00 .( as Kline Dep Dauphin County 41.25 1 Sheriff of Cumberland County Postage 1.52 7 9. 7 7 V 9/1i F , 09/08/2008 SERRATELLI SCHIFFMAN Sworn and subscribe to before me this day of , County, Pennsylvania, to s office was in receipt of the A. D. In The Court of Common Pleas of Cumberland County, ennsyl vaiila r Mid Penn Bank vs. Kenneth S. Bolinger No. 08-5098 civil August 27, 2008 Now, , I, SHERIFF OF CUMBERLAND COUNTY, PA, do hereby deputize the Sheriff of Dauphin County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA Affidavit of Service Now, 520 at o'clock M. served the within upon at by handing to a copy of the original and made known to the contents thereof. So answers, Sworn and subscribed before me this day of , 20 Sheriff of COSTS SERVICE _ MILEAGE _ AFFIDAVIT County, PA w (Stfirt of the'*herfrf Mary Jane Snyder Real Estate Depu William T. Tully Solicitor Dauphin County Harrisburg, Pennsylvania 17101 ph: (717) 780-6590 fax: (717) 255-2889 Jack Lotwick Sheriff Commonwealth of Pennsylvania County of Dauphin Charles E. Sheaffer Chief Deputy Michael W. Rinehart Assistant Chief Deputy MID PENN BANK VS KENNETH S BOLINGER Sheriff s Return No. 2008-T-1863 OTHER COUNTY NO. 085098 And now: SEPTEMBER 3, 2008 at 9:37:00 AM served the within COMPLAINT IN CONFESSION OF JUDGEMENT upon KENNETH S BOLINGER by personally handing to KENNETH S BOLINGER 1 true attested copy of the original COMPLAINT IN CONFESSION OF JUDGEMENT and making known to him/her the contents thereof at 1180 SOUTH CAMERON ST HBG PA 17104 Sworn and subscribed to before me this 3RD day of September, 2008 NOTARIAL SEAL ARY JANE SNYDER, Notary Pabli Highspire, Dauphin County M Commission Expires Sept l 201 So Answers, ShMf Dau Co-l ..... B '?"w Y Deputy Sheriff Deputy: M EMBREY Sheriffs Costs: $41.25 8/28/2008 Steven J. Schiffman, Esq. Merritt C. Reitzel, Esq. SERRATELLI, SCHIFFMAN, BROWN & CALHOON, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 PA ID Nos. 25488 & 92069 MID PENN BANK, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. : No. 08-5098 KENNETH S. BOLINGER, Defendant : CIVIL TERM PRAECIPE TO SATISFY JUDGMENT TO THE PROTHONOTARY: Upon receipt of this Praecipe, kindly mark the judgment entered and docketed August 25, 2008 against Defendant in the above-captioned matter as satisfied. Date: May 4, 2009 2080 Linglestown Road, Sui Harrisburg, PA 17110-9670 (717) 540-9170 PA ID No. 92069 THE Fif FRL, ),-jIC7 OF 1009 MAY -8 PM 12: 31 h MLLi to, *8.oO Po A-my to 48! 8a V*AR48-73