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08-6578
O ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- b5 7g CIVIL TERM MORTGAGE FORECLOSURE NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without f wther 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 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- (,S7P CIVIL TERM MORTGAGE FORECLOSURE COMPLAINT NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff and Mortgagee is Orrstown Bank, a Pennsylvania corporation with a place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania 17257. 2. The Defendant, William J. August, is an adult individual whose last known residence address was 83 Ridge Avenue, Carlisle, Cumberland County, Pennsylvania 17013. 3. The Defendant, Carmen K. August, is an adult individual whose last known residence address was 83 Ridge Avenue, Carlisle, Cumberland County, Pennsylvania 17013 4. By Deed dated July 14, 2003, Kollas & Costopoulus, a Pennsylvania General Partnership and Snider-Miller Builders, a Pennsylvania Partnership conveyed the premises described in Exhibit "A" attached hereto and made a part hereof to William J. August and Carmen K. August, husband and wife. 5. By Deed dated October 26, 2005, William J. August and Carmen K. August, husband and wife conveyed the premises described in Exhibit "A" attached hereto unto William J. August, married man. 6. On or about October 31, 2007, William J. August, as Mortgagor, made, executed and delivered a written Note secured by a Mortgage, made, executed and delivered the same day to Orrstown Bank as Mortgagee on the premises described in Exhibit "A." This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on at Cumberland County Instrument No. 200742186 et seq, all of which pages are incorporated herein by reference and made a part hereof. 7. A true and correct copy of the aforesaid Note is attached hereto and mad a part hereof as Exhibit "B". A true and correct copy of the aforesaid recorded Mortgage is attached hereto and made a part hereof as Exhibit "C". 8. Defendant has defaulted under the terms and conditions of the Mortgage and Note by failing to make payments since August, 2008 and every month thereafter. 9. Defendant is the present record owner of the premises described in Exhibit "A" and the real owner of the premises. 10. Plaintiff served Notice of Plaintiff's Intention to Foreclose on the real estate of Defendant and provided Defendant with Notice of Defendant's Rights Under Act 91 of 1983 (Homeowners Emergency Mortgage Assistance Law) via certified mail and certificate of mailing on or about September 9, 2008. 11. Attached hereto and marked as Exhibit "D" is a true and correct copy of the combined Act 6 and Act 91 Notice provided to Defendant. 12. Attached hereto and marked Exhibit "E" are true and correct copies of the certified mail receipt and the certificate of mailing for the combined Notice served upon Defendant. 13. Under the terms of the Mortgage and Note, if any payment of principal and interest is not made when due or any other obligations of the Note or Mortgage are not met, then the entire indebtedness owing on the Mortgage and Note obligations shall become due and payable immediately at the declaration of Mortgagee. 14. Plaintiff, as Mortgagee, has exercised its option and declared the entire unpaid balance of principal and interest as immediately due and owing. 15. The following amounts are presently due on the said Mortgage and Note calculated to October 16, 2008: Principal $233,533.76 Interest to 10/16/08 $ 4,731.33 (per diem of $45.40) Late Charges $ 331.33 Reasonable Attorney fees $ 23,353.37 fixed by Plaintiff for purposes of this Complaint (10% of principal debt) Other charges $ 55.00 TOTAL: $261,904.79 WHEREFORE, Plaintiff requests judgment in Mortgage Foreclosure in the sum of $261,904.79 plus interest thereafter at the contract per diem from October 16, 2008, additional late fees coming due, actual attorney fees, costs and expenses against Defendant, Mortgagors and real owners and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibit "A" hereto. Respectfully submitted, OXC7 HERER J David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/august/foreclosurecomplaint. pld The statements in the foregoing Complaint ate based upon informati.on 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 based upon information which I have given to my counsel, they are true and correct to the best of my knowledge, information and belief. I understand that false statements herein. are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsifications to authorities. i D9 D A T E,@: Linda K. Mowen Assistant Vice President Loan Workout & Collection Manager to ?f lv a? ~i L. NJ?. l . ? is i : .. l' is ?.....'.'S 2u65 DEC 8 Pit 1 32 DEED Y WEMd??wi?? pm?*w4r?'?"?? wnv !nl?b'? rid ?'liwrrl(?' .?atir?ors[tlM.ne<d ?DOOLLAi?4 ?a,td i. rgy?mrla{?q?atrsdaarro? awMr(d, a Adp ArraA CMM& PA 170134127 yrpddwWommwWhKMrmdm k&prl4fhw f inten?w?Kp?y AMID tIr rrid OtaMa?) Aoy?y ?nopt and ?rr?U» ro(d linrwKl??sd r it fb ? ? d?iNlrhq rd rd? wiKirradt16s?wp?egrrrtil?'d haduiuw?redisod P?? witltKuri+eril? ?d ?+sr?a1 ?lo? M+?a wgelY? iason y?pyelris?toM Q who dudlhen? ? Mwss rr rayp???wde ? rdd ?? W iO;l'MIDS6 WE?Oi, Ar Wd (?mlOt(?j 6r?avr btruobr rrt tltaklLWln<hand rod rrrl ? ? dq aM yrr Pint ioww?ra. UUM AMID DBt1V!'M, &!b Ptnw? d: CO1MNW1b WMOP 'VM" ) QOMWOF C. UMbu 141) OIL dr/ot omorad LnMdrided?iNaa f/ on" t' rid tr asdrra0mv.m t?rNat??Gr a LiK#AK OOM zztjl;l Norm om Cr4a Ndmy Nib NAW0 WAt CWMWAMQ CO1MW cr.rrdr•r a ? a - /l? - D 9 ? ?? ?a zeoa? Cbe. p•?Av Cmftl . PA17d"-M1 e? 2 PAM13 c9 MH V"O*a zzs~t -nay Hill tO-11-LM EXHIBIT "A" BOBRUw"(s' SPMSE(S): IU = heaeby joins in this Ugly IashwoetIohe sole purpaofwwwi t*&wov"b* sd°rww"*awowed bolo-, 60 iAdwdP0d Pdmrd6" or putodW ida is the ProFfty' Or dais m the FropN" cou" ead/vc w ??ai a?va w7 e!1 not 1i? to, hex, ? °r mss). udadpcdjoidag undw the Note b hereby WonTed (lL OZ SIGN YOUR NAME MUCTLY AS TT APPSARS BELOM SIQM, MALM AND DUXVnb V4 Tin ftF=CE OF: vvrrrrtsecm: BOststowam pour :(S)s eras sG Arm ATTACH vWjVIDQALROTARY ACIMOWL OGWW" OR* 2M PACE13M -NOVA Iv i t 9a-sz-loo !N-d M/roa,d zzs-! mmisiT "A" ALL TEAT CERTA= PIECE OR PARCEL Or LAND WITH EUILDxNGS AND I" VEMIXTro THEREON Zane D, xY ANY, SITUATE IN MEATS ROM NXI ONTi, NORTH NxamAm IR To m=p, CONSUL= Comw , Cp11DANCE C0 a Ml1NSi1LTH Or PM 68YLVANIA BogfIDED AND DESCRIEED NXTS FINAL omwxVZSION PLAN FOR PHASE NO. 4 FOR "HERTZ ROM HEIGETS," RECORDED on APRIL 16, 1001, IN C0MM AM COUNTY PLAIT HOOK 85, PAGE 37, AS FOLLOWS, TO WM BEGINNING AT A POxNT ON THE EAi'=N RIOAT-Or-KAY LINE Or Rim ?? THE POINT RUM L(XA'TZD AVEEUi (A.50.00, RIDGT-Or-WAY), O! CURVE THE FOLLOWING YOUR (4) COMM mm- 19 10 SAID NORTEERN RZORT-OF-KAY LINE Or RIDGE AVEEQE OATH THE WESTERN RIGHT-OF-WAY LINE Or HEADS DRIVE (A 50.001 RI MT-01- WAY) 1) NORTH FIFTY-TNO DEGREES, FORTE-FIVE KUMTES, ZERO EECONDS WNST (9 53 DEGREES 45 NXNUTES 00 SECONDS W) A DISTANCE Or ONE HUNDRED THIRTY YEW (130.001), 1) SY A CURVE TO THE RIGHT, RAVING A RADIUS OF ONE HUNDRED SEVENTY-FIVE TEST (R • 173.001), AN (C DISTANCE OF THREE HUNDRED TWMM-EIZ AM NINE E1?RXVTX 9Ua 316.091), 3) BY A CURVE TO THE LEFT, HAVING A RADIUS OF TWO HUNDRED TWENTY-FIVE MEET (R • 115.001), AN ARC DISTANCE or SIXTY- PxVE An EIGHTY-THREE HUNDREDTH PEST (A/L 65.831), 4) NORTH TiQRTY-iEVE9 DZURNSO, FICTION SECONDS Z NO'rES,BT?? ? E=G? 3A9D DEGREES 15 KINUTES 00 BxXTY-TERSE HUNDREDTH FEET (SO.631)i MIMICS PR0K SAID POINT OF BZa==NG, BY SAID RZGHT-Or-WAY NORTH THIRTY-SEVEN DIGRESS, FIFTEEN KZNUTES, ZERO nCONDB EAST (N 37 DEGREES 15 XXXOTEB 00 BECONDB E) A DZBTA9CE OF ONE HMCM TWO FEET (101.001) TO A Pox=, THENCE BY LOT NO. 49 S0UT1[ FIFTY-TWO DEGREES, FORTY-FIVE mxNUTEE, zxRO EEEANDS EAST (S 51 DEGREES 45 NZNUTUS 00 SECONDS E) A DISTANCE OF OWN HUNDRED FIFTY-EIOST FEET (1584001) TO A POINTI Tum SY LOT NO. 58 AND LOT NO. 57 SOUTH THIRTY-BEVIN DEGRRES, FxPTEEK UINUTES, ZERO BECONDB KNOT (S37 FIST (101500' ) TO 51?00 SECONDS N) A DISTANCE OF ONE SMOM TWO POINT; THENCE BY LOT 90. 51 NORTH FIFTY-TWO DEGREES, rORTY-FIVE IlI9xMI, ZERO SECONDS NEST (9 51 DEGREES 45 16M TrE8 00 SECONDS W) A DISTANCE or oNE EUNDRED YxrTY-ExowY PEST (158.00') TO A POINT, THE PLACE OF BEGINNING. SAID TRACT CONTAINS 16,116.00 e0. FT. OR 0.3700 ACRES. ' ' ,.?.,. ? .M n rt I..lwMr 11 ?rl ? w EXHIBIT "A" BXXXG LOT #so or THE FnUL BIISDIVxsxon PLAN of 11ERT8 RUN EEIGETB, CARLISLE, CQNEERLAND Comm, BENNBZLVANIA. ONDER MW SUBn= TO DECLARATION OF SVILDINQ AND 99E RESTRICTIONS FOR Tux Yn" DAD 16, 19D933D, an RECORDED IN XXSC AAMIMBB 3009 463, BADE 1178. SOURCE OF TITLEi EOOE 258, PAGE 1222 (RECORDED 07/23/03) FOR INIORW?TIONAL pUXPO8E8 ONLTt AM 29-06-0429-086 1 Certify this to be recorded In Cumberland County PA Recorder of Deeds Nft 272 PAA334 RMINVIDUAL ACKN0INL?DaNEW State/Commonwealth of ss. County of On this the day of 11 ? me, i Day ay Public, personally appeared OAtt taniro itorY f'ubMc FtMVonv,dbM5kx DIWK SEAL t,UMBFRUNb COUNIY n E4,%vpa Fat% 16.200 9 Place Notary Seal and/or Any Stamp Above before Year the undersigned Notary p personally known to me - OR - Loved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/sheAhey executed the same for the purposes therein stated. WITNESS my hand and seal. It /1 signature of Notary "10 other Ftegi w I Fbj' eBorr (P" d Nana d Notes fieekierbe, ems) OMOMAL Awmo Ow lydbmw on in this sw on /s not requbed by law, if awy prove vshmW to persons reryip on the dooum" and ooW prevent IraudWent removal and rosftadrnenf of ft kvm to anottrer doCUrrrarrt DnWpdM of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: 7ropof thumb here -N-j"awl 1- © 2002 Natlo" Notary Assodabon • 9550 De Sato Ave., P.O. Boor 22 ? , A 91??ARY (1-8 AND' .68277 Item No. 5936 TOOK 272 PAA331 ??ww. w..l •.M• •. ? ? N 1 ?.?w11Nr11 Certificate of Residence i; A(&;,n /.- )?d(le4l, , do hereby certify that the coned Address of the within-named ?iAq 196/,3 41el-?- WNness my hand Us, day of S aoac .= ?i.. .. r . .Y. ... 1 ..L.YH64. rhsuws hx pwq COMMON ALTH Of ParersvD"M ol!PARROir OF REVENUE suREAu of wolamm TAxEs PO OW 210103 REALTY TRANSFER TAX STATEMENT OF VALUE See Reverse for Instructions ...1 wrM TW PMd Dri RechI a Complete each section and file indupikala wlth Rowder of Deeds when (1) the id y110-c -n- 1deroli m b not set bM bh to deed, (4) when do deed is wiwout ulceratiom or by A or (3) a tax mmpibn is claimed. A Sb t and of VAS M not rsghrired N five transfer h wb* exempt from tax based on: (1) ft* relationship or (Y) pubic uft easement. If more spew M need4 attach addtioW sheet(s). A 9naaocer1h111C - All Inmilrlan may he dirsetad to the follmMna oersofl. NWM i Oftaft PA.-..a ci FW Choice ws 1 lM Valley, Ca 93M ? Will or intestate succession artie ? Transfer to Industrial Development Agency. ? Transfer to a trust. (Attach complete copy of trust agreement identifying all benefldaries.) ? Transfer between principal and agent. (Allach complete copy of agency/straw party agreement.) ? Transfers to the Commonwealth, the United States and InstnWwatal0ea by ggt dedkmtion. condemnation or In Neu of condemnation. (If condemnation or In Neu of condemnation, attach copy of resole n.) ? Transfer from mortgagor to a holder of a mortgage In default. Mortgage Book Number , Page Number ? Corrective or confirmatory deed. (Attach complete copy of the prior deed being corrected or confirmed.) ? Statutory corporate consolidation, merger or division. (Attach copy of artless.) n / y- J6 Other (Please explain exemption claimed. It other than Nst d above. Under penalow -of law, I declare that 1 have examined it& Statement, Including accompanying information, and to the best of my knowledas and belief. It Is true. correct and complete. or 34/D s._.. FAILURE TO COMPLETE THfS FORM PROPERLY OR ATTACH APPLICABLE DOCUMENTATION MAY RESULT IN THE RECORDER'S REFUSAL TO RECORD THE DEED. Both 2WdX25 2. Check Appropriate Box Below for Exemption Claimed PROMISSORY NOTE References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or em. Anv item above containing -***'has been omitted due to text length limitations. Borrower: WBiiam J. August (SSN: 198-64-9056) Lender: ORRSTOWN BANK Carmen K. August (SSN: 18468-4609) STONEHEDGE OFFICE 83 Ridge Avenue 77 EAST KING STREET Cwllsle, PA 17013 P O BOX 250 SHIPPENSBURG, PA 17257 Principal Amount: $235,200.00 Date of Note: October 31, 2007 Maturity Date: November 5, 2037 PROMISE TO PAY. I ("Borrower") jointly and severally promise to pay to ORRSTOWN BANK ("Lender"), or order, in lawful money of the United States of America, the principal amount of Two Hundred Thirty-five Thousand Two Hundred & 00/100 Dollars ($235,200.00), together with interest on the unpaid principal balance from November 5, 2007, until paid in full. PAYMENT. Subject to any payment charges resulting from changes In the Index, 1 will pay fhb ban M accordance with the following payment schedule: 60 monthly consecutive principal and interest payments in the Initial amount of $1,604.48 each, beginnirng December 5, 2007, with Interest calculated on the unpaid principal balannces at an Initial Rarest raft of 7.250% per anrnan; and 300 nrontlly consecutive principal and interest payments M the Initial amount of $1,533.68 each, beginning December 5, 2012, with Interest calculated on the unpaid principal balances at an interest rate based on the weekly average yield on US Treasury Securities adjusted to a constant maturity of one year (currently 3.970%), plus a margin of 2.750 percentage pops, the sure rounded to the newest 0.125, resulting In an initial Interest raw any 6r%. My find payment and accrued Interest not yet paid, togstler interest; unpaid will bs due om November 5. a2037 gr and will for all principal will be applied first to any accrued unpaid amounts under fhb Note. Unless otherwise agreed or requit ired by applicable law. payments then to Principal; then to any late charges; and tin to any unpaid collection costs. Interest on this Noss Is computed on a 30/360 simple Interest basis; that is, with the exception of odd days M the lkst payment period, monthly interest Is calculated by applying the ratio of the annual Interest raft over a year of 360 days, multiplied by the outstanding principal balance, multipled by a month of 30 days. Interest for the odd days Is calculated on the basis of the actual days to the next full month and a 360-day year. I will pay Lander at Lender's address shown above or at such other place as Lander may designate in writing. VARIABLE INTEREST RATE. For the first 60 payments, the interest rate on this loan will be 7.250%. Thereafter, the interest rate on this Note is subject to change from time to time based on changes in an independent index which is the weekly average yield on US Treasury Securities adjusted to a constant maturity of one year (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying me. Lander will tell me the current Index rate upon my request. The interest rate change will not occur more often than each year. I understand that Lender may make loans based on other rates as well. The Index currently Is 3.970% per annum. The interest rate or rates to be applied to the unpaid principal balance during this Note will be the rate or rates set forth herein in the "Payment" section. Notwithstanding any other provision of this Note, after the first payment stream, the interest rate for each subsequent payment stream will be effective as of the last payment date of the just-ending payment stream. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 13.250% per annum or the maximum rate allowed by applicable law. Notwithstanding the above provisions, the maximum increase or decrease in the interest rate at any one time on this loan will not exceed 2.000 percentage points. Unless waived by Lender, any increase in the interest rate will increase the amounts of my payments. PREPAYMENT. I agree that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be refunded to me upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in my making fewer payments. I agree not to send Lender payments marked "paid in full", "without recourse", or similar language. If I send such a payment, Lender may accept it without losing any of Lender's rights under this Note, and I will remain obligated to pay any further amount owed to Lender. All 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: ORRSTOWN BANK, 77 EAST KING STREET, P.O. BOX 250 SHIPPENSBURG, PA 17257. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment or $2.50, whichever Is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will continue to accrue interest at the interest rate under this Note, with the final interest rate described in this Note applying after maturity, or after maturity would have occurred had there been no default. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. I will be in default under this Note if any of the following happen: Payment Default. I fail to make any payment when due under this Note. Break Other Promises. I break any promise made to Lender or fail to perform promptly at the time and strictly in the manner provided in this Note or in any agreement related to this Note, or in any other agreement or loan 1 have with Lender. False Statements. Any representation or statement made or furnished to Lender by me or on my behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished. Death or Insolvency. Any Borrower dies or becomes insolvent; a receiver is appointed for any part of my property; I make an assignment for the benefit of creditors; or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. Taking of the Property. Any creditor or governmental agency tries to take any of the property or any other of my property in which Lender has a lien. This includes taking of, garnishing of or levying on my accounts with Lender. However, if I dispute in good faith whether the claim on which the taking of the property is based is valid or reasonable, and if I give Lender written notice of the claim and furnish Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Defective Collateralization. This Note or any of the related documents ceases to be in full force and effect (including failure of any collateral EXHIBIT "B" PROMISSORY NOTE Loan No: 1060005944 (Continued) Page 2 document to create a valid and perfected security interest or lien) at any time and for any reason. Collateral Damage or Loss. Any collateral securing this Note is lost, stolen, substantially damaged or destroyed and the loss, theft, substantial damage or destruction is not covered by insurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation parry 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. In the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if I have not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if I, after receiving written notice from Lender demanding cure of such default: (1) cure the default within fifteen 05) days; or (2) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then I will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note If I do not pay. I will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including reasonable attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and I hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or me against the other. GOVERNING LAW. This Note wM 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 Lander in the Commonwealth of Pennsylvania. DISHONORED ITEM FEE. I will pay a fee to Lender of $20.00 if I make a payment on my loan and the check or preauthorized charge with which I pay is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all my accounts with Lender (whether checking, savings, or some other account). This includes all accounts I hold jointly with someone else and all accounts I may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. 1 authorize 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. I acknowledge this Note is secured by the following collateral described in the security instrument listed herein: a Mortgage dated October 31, 2007, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. I understand that I am required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, 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: ORRSTOWN BANK 77 EAST KING STREET P.O. BOX 250 SHIPPENSBURG, PA 17257. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. I 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. 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. This means that the words "I% "me% and "my" mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, 1, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE. I ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: Seal) Wi1Nam J. August I ea S .::::::::....:...:............... . Carmen K. A LASER PRO Un&W. v«. 7.36.10=+ COW. HWMnd FW-W S.40 w Y". JN7, 2W AM 740. F-d PA ACPMKM O.FC 'M17146 PR-27 Parcel Identification Number: RECORDATION REQUESTED BY: ORRSTOWN BANK STONEHEDGE OFFICE 77 EAST KING STREET P O BOX 250 SHIPPENSSURG. PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK 77 EAST KING STREET P.O. BOX 250 SHIPPENSBURG, PA 17257 MORTGAGE Amount Secured Hereby: $235,200.00 q4q THIS MORTGAGE dated October 31, 2007, is made and executed between William J. August, whose address Is 83 Ridge Avenue, Carlisle, PA 17013 (referred to below as "Grantor") and ORRSTOWN BANK, whose address is 77 EAST KING STREET, P O BOX 250, SHIPPENSBURG, PA 17257 (referred to below as "Lender"). GRANT OF MORTGAGE. For vailuabla carklsradon. Grants grants, bargains, ads, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, heredltaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located In Cumberland County, Commonwealth of Pennsylvania: Deed dated 12/08/05; Book 272; Pegs 1328 The Real Property or its address is commonly known as 83 Ridge Avenue, Carlisle, PA 17013. Grantor presently assigns to Lender all of Grantor's right, title, and interest In and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, BICLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, E GIVEN TO SECURE IA) PAYMENT OF THE BiD1111111TEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL PFI NCMAL AMOUNT OF =236'200.00' THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of any "one action" or "anti-deficiency" law, or any other law which may prevent Lender from bringing any action against Grantor, including a claim for deficiency to the extent Lender is otherwise entitled to a claim for deficiency, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale. GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: (a) this Mortgage Is executed at Borrower's request and not at the request of Lender; (b) Grantor has the full power, right, and authority to enter into this Mortgage and to hypothecate the Property; (c) the provisions of this Mortgage do not conflict with, or result in a default urxW any agreement or other Instrument binding upon Grantor and do not result in a violation of any law, regulation, court decree or order applicable to Grantor; (d) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrower's financial condition; and (e) Lender has made no representation to Grantor about Borrower (including without limitation the creditworthiness of Borrower). PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Borrower shall pay to Lander all Indebtedness secured by this Mortgage as it becomes due, and Borrower and Grantor shall strictly perform all Borrower's and Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property In good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve Its value. Complonce With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except its`proviously disclosed to and acknowledged by Lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, to) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous EXHIBIT "C" MORTGAGE (Continued) Page 2 Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lander may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any Inspections or tests made by Lender shall be for tender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to Indemnify, defend, and hold harmless 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 Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and recomreyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any Interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of brprovernents. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Goverrruwttal Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, ordinance, or rsguletion and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lander in writing prior to doing so and so long as, in Lender's sole opinion, Lender's Interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Larder, to protect Larder's Interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding this to the Real Property, or by any other method of conveyance of an Interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania low. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's Interest in the Property is not jeopardized. If a Ron arises or is Hied as a result of nonpayment, Grantor shall within fifteen (15) days after the Ilen arises or, if a lien is filed, within fifteen 115) days attar Grantor has notice of the filing, secure the discharge of the lion, or If requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lander and shell satisfy any adverse judgment before enforcement against the Property. Grantor shall name Larder as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shell authorize the appropriate govemmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lion, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintormwe of insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgages clause in favor of Lender. Policies shall be written by such Insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each Insurer containing a stipulation that coverage will rat be cancelled or diminished without a minimum of tan (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. MORTGAGE Page 3 (Continued) Each insurance policy also shall include an endorsement Providing that coverage in favor of Lander will not be impaired in any way by any act, omission or default of Grantor or any other npa s mans A as dt sal Prop Hood special located in on area designated by the Director of the Federal Emergency ge hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days ab lance of is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal the loan and any prim liens on the property securing the ban, up to the maximum poky limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the ben. Lender may AppNcation of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security Is Impaired, Lender may, at Lender's election, receive nd retain effecting rhea Prof any Insurance operty or the ra Drat lln the proceeds to the reduction of the Indebtedness, payment of any lien restoration and regale, Grantor shall repair or and repair of the Property. If Larder elects to apply the proceeds replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, If any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. if Grantor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, (8) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's Interests. All expenses incurred or paid by Lender for such purposes will then beer Interest at the rate charged under the Note from the date Incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (8) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or IC) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so so to bar Lander from any remedy that It otherwise would ou me?vte had. Grantor's 9 obligation to Lender for all such expenses shell survive the entry of any mortgage foreclosure judgment. WARRANTY: DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in tee simple, tree and clear of all liens and encumbrances other than those set forth In the Real Property description or in any title insurance olicy, title report, Mortgage, and b) Grantor or hafinal ti s the full) right, power, and authority to execute and deliver this rnMortgaget issued In favor of, and accepted by, with this M to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persona. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lander under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party In such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compillarrce With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of P. mMso. All promises, agreements, and statement Grantor has made in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature and shall remain in full force and effect until such time as Borrower's Indebtedness Is paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. It any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Apploadon of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at Its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, tees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies; (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Borrower which Borrower is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and 14) a specific tax on all or any portion of the Indebtedness or on payments of principal and Interest made by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before It becomes MORTGAGE (Continued) Page a delinquent, or (2) contests the tax as provided above in the Taxes and Lions section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreanrent. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security kttarest. Upon request by Lender, Grantor shall take whatever action is requested by Lander to perfect and continue Lender's security Interest in the Personal Property. In addition W recording this Mortgage In the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lander for all expenses Incurred In perfecting or continuing this security klterest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a piece reasonably convenient to Grantor and Lender and make it available to Lender within three 13) days after receipt of written demand from Lander to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor Idebtod and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained leach as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Borrower's and Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior lions on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to In this paragraph. Additional Authorizations. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Larder to take any such actions. FULL PERFORMANCE. If Borrower and Grantor pay all the Indebtedness when due, and Grantor otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Default on Odm Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Break Other PromWs. Borrower or Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided in this Mortgage or in any agreement related to this Mortgage. False Statements. Any representation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. Defective CoMateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Borrower or Grantor, the insolvency of Borrower or Grantor, the appointment of a receiver for any part of Borrower's or Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or Grantor. Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Borrower's or Grantor's property in which Lender has a lien. This includes taking of, garnishing of or levying on Borrower's or Grantor's accounts with Lender. However, If Borrower or Grantor disputes in good faith whether the claim on which the taking of the Property is based is valid or reasonable, and If Borrower or Grantor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agrownettt. Any breach by Borrower or Grantor under the terms of any other agreement between Borrower or Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Borrower or Grantor to Lender, whether existing now, or later. Events Affecting; Guafarltor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes Incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at Its option, may, but 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. Insecurity. Lender in good faith believes itself insecure. Right to Cure. It any default, other than a default in payment is curable and if Grantor has not been given a notice MORTGAGE (Continued) Page 5 of a breach of the same provision of this Mortgage within the preceding twelve (12) months' it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen 115) days; or (2) if the cure requires more than fifteen (16) days, immediately Initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following right and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at Its option, after giving such notices as required by applicable low, to declare the entire Indebtedness immediately due and payable. UCC Renedas. With respect to all or any part of the Personal Property, Lander shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rang. Lender shall have the right, without notice to Borrower or Grantor, to take possession of the Property and collect the Rents, tie Indebtedness. tl post due and unpaid, turtheranoe of this right, Lapply the eander maye proceeds, any tenant or above Lender's cost, against other user of the Property to make payments of rent or use fees directly to Lander. If the Rent are collected by Leader, then Grantor irrevocably authorizes Lander to endorse instruments received in payment thereof in the name of Grantor and to negotiate the some and collect the proceeds. Payment by tenants or other users toorander in response to Lender's demand shall satisfy the obligations for which the payments not any proper grounds for the demand existed. Lender may exercise its right under this subparagraph either in person, by agent, or through a receiver. AppoMtt Recehnr. Lender shall have the right to have a receiver appointed to take possession offlall foor any part at reclosure or the Property, with the power to protect and preserve the Property, to operate the Property p Cen9 sale, and to collect the Rent from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by low. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shah not disqualify a person from serving as e receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Norrudilal Sall. If permitted by applicable law, Lander may foreclose Grantor's Interest In all or in any part of the Personal Property or the Real Property by non-judicial sale. Def1cWncy Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amount received from the exercise of the right provided In this section. Toneney at Suf ersnce. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Borrower or Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either 111 pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other right and remedies provided in this Mortgage or the Note or available at low or in equity. Salo of the Property. To the extent permitted by applicable law, Borrower and Grantor hereby waive any and all right to have the Property marshalled. In exercising its right and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Salo. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any privet sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least tan (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Eloadon of Rannedes. All of Lender's right and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose any one remedy will not bar Lender from using any other remedy. If Lander decides to spend money or to perform any of Grantor's obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appal. Whether or not any court action is involved, and to the extant not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of it interest or the enforcement of it right shall become a part of the Indebtedness payable on demand and shall bear interest at the Not rat from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including effort to modify or vacate any automatic stay or Injunction), appeals, and any anticipated Post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraised fees and title insurance, to the extent permitted by applicable low. Grantor also will pay any court costa, in addition to all other sums provided by low. NOTICES. Unless otherwise provided by applicable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by tolefacsimile (unless otherwise required by law), when deposited with a rationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from tha holder of any lion which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persona, specifying that the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, if there is more then one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. it will be Grantor's responsibility to tell the others of the notice from Lender. ADJUSTABLE RATE RIDER. An exhibit, titled 'ADJUSTABLE RATE RIDER,' is attached to this Mortgage and by this MORTGAGE (Continued) Page 5 reference is made a part of this Mortgage just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Mortgage. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Caption Headbgs. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by federal low apple" to Lander and, to the extent not preempted by federal low, the laws of the Conanomvwalth of Pensylvania without regard to Its ca Me of low provisions. This Mortgage has been accepted by Lander In do ComnonwaaMh of Pennsylvania. Joke and Sew" Liabi ty. All obligations of Borrower and Grantor under this Mortgage shell be joint and several, and all references to Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that each Grantor signing below is responsible for all obligations in this Mortgage. No Weiwr by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise any right will not mean that Lender has given up that right. If Lender does agree in writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for payment, protest, and notice of dishonor. SeverabiNty. If a court finds that any provision of this Mortgage is not valid or should not be enforced, that fact by itself will not mean that the rest of this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Mortgage even if a provision of this Mortgage may be found to be invalid or unenforceable. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other Interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Successor interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Larder and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word 'Borrower" means William J. August and Carmen K. August and includes all co-signers and co-makers signing the Note and all their successors and assigns. Environmental Laws. The words 'Environmental Laws' mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9801, at seq. I'CERCLA"?, the Superfund Amendments and Reauthorization Act of 1988, Pub. L. No. 99-499 ("SARA'), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 8901, at seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words 'Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means William J. August. Guerenty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation parry to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances' are used In their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or fisted under the Environmental Laws. The term "Hazardous Substances' also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improwmerris. The word 'Improvements' means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness' means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with Interest on such amounts as provided in this Mortgage. Lander. The word "Lender" means ORRSTOWN BANK, its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in the Note. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word 'Note" means the promissory note dated October 31, 2007, in the original prindpel amount of $235,200.00 from Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of the Note Is November 5, 2037. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. MORTGAGE (Continued) Pe9° 7 property. The word "property, means collectively the Real Property and the Personal Property. Reel Property. The words "Real Property' mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words 'Related Documents' mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT M INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, ORRSTOWN BANK, herein is as follows: STONEHEDGE OFFICE, 77 EAST KING STREET, P O BOX 280, SHIM89 RG, PAO 17267 or INDIVIDUAL COMMONWEALTH OF PENNSYLVANIA I ? ? ,,f I SS COUNTY OF ?1 1 4.l 1lQJVJ? I On this, the S day of 2007 , before me l?l? the undersigned otsry PubNc, personally appeared WINrn J. August, known to me for satisfactorily pro ven t be the person whose name is subscribed to the within instrument, and acknowledged that he or the executed the same for the purposes therein contai In wItness whereof. I hereunto set my hard and offldel seal COM ONWEALT F PENNSYIVkM Tfi OF PE Y ARL4iA MaM S. Dawn P. elj l?Wnd r the State of Carasl ro U. [ own County CerNeN.loro„ CumbedadCouray Ex May • 2009 CplrarrNSbn Expires 17, 2006 Wet--d.. w.6.]L,60D, C. r. n.rr- awn",....,-.-. ..,- .".r. ."..:K.unwm.rc m, at. - ALL THAT CERTAIN piece or parcel of land with buildings and improvements thereon erected, if any, situate in Wertz Run Heights, North Middleton Township, Cumberland County, Commonwealth of Pennsylvania bounded and described in accordance with Final Subdivision Plan for Phase No. 4 for "Wertz Run Heights," recorded on April 16, 2002, in Cumberland County Plan Book 85, Page 37, as follows, to wit: BEGINNING at a point on the eastern right-of-way line of Ridge Avenue (a 50.00' right-of-way), said point being located the following three (4) courses from the terminus of a curve connecting said northern right-of--way line of Ridge Avenue with the wester right-of-way line of Meade Drive (a 50.00' right-of-way) 1) North fifty- two degrees, forty-five minutes, zero seconds West (N 52° 45' 00" W) a distance of one hundred thirty feet (130.009), 2) by a curve to the right, having a radius of one hundred seventy-five feet (R = 175.00'), an arc distance of three hundred twenty-six and nine hundredth feet (A/L = 326.09'), 3) by a curve to the left, having a radius of two hundred twenty-five feet (R = 225.00'), an arc distance of sixty-five and eighty-three hundredth feet (A/L 65.83'), 4) North thirty-seven degrees, fifteen minutes, zero seconds East (N 370 15' 00" E) a distance of eighty-eight and sixty-three hundredth feet (88.63'): thence from said point of Beginning, by said right-of-way North thirty-seven degrees, fifteen minutes, zero seconds East (N 37° 15' 00" E) a distance of one hundred two feet; (102.00') to a point; thence by Lot No.49 South fifty-two degrees, forty-five minutes, zero seconds East (S 52° 45' 00" E) a distance of one hundred fifty-eight feet (158.00') to a point; thence by Lot No. 58 and Lot No. 57 South thirty-seven degrees, fifteen minutes, zero seconds West (S 37° 15' 00" W) a distance of one hundred two feet (102.00') to a. point; thence by Lot No. 51 North fifty-two degrees, forty-five minutes, zero seconds West (N 52° 45' 00" W) a distance of one hundred fifty-eight feet (158.00') to a point, the place of BEGINNING. ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 200742186 Recorded On 1117/2007 At 10:25:43 AM * Instrument Type - MORTGAGE Invoice Number - 8349 User ID - RAK * Mortgagor - AUGUST, WILLIAM J * Mortgagee - ORRSTOWN BANK * Customer - MADISON * FEES STATE MUT TAX $0.50 STATE JCS/ACCESS TO $10.00 JUSTICE RECORDING FEES - $23.50 RECORDER OF DEEDS AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 TOTAL PAID $50.50 * Total Pages -11 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA /O l RECORDER O D DS • - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. 1111111111111111 From:Orrstown Bank Loan Department 717 709 30,!1 111/16/2(108 C9:17 r- 4C14 P.3^2!!'14 Avl?? 0,mDDS LxTOwiv BANK A Tradition of Excellence SPDternber 9, 2008 William J. August Carmen K. August 83 Ridge Ave. Carlisle, Pa. 17013 C(OPY Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortga-ge on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when Vou meet with the Counseling Agency. The name address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of this Notice. If you have any questions, You may call the Pennsylvania Housing Finance Agency toll free at 1.800-342-2397. (Persons with impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. P.O. Box 250 • Shippensburg, PA 17257 ^ 717.530.3530 ° 717.532.4143 fax EXHIBIT "D" From:Orrstown Bank Loan Department 717 709 3091 1011612008 09:17 #014 P.003/014 LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE. AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): William J. August Carmen K. August PROPERTY ADDRESS: 83 Ridge Ave. Carlisle, Pa. 17013 LOAN ACCT. NO.: 1060005944 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER:ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. From:Orrstown Bank Loan Department 717 709 3091 10/16/2008 09:18 #014 P.004/014 CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE'- Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 83 Ridge Ave., Carlisle, Pa. 17013 IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: July 5th--$ 1,604 48, August 5th--$ 1,604.48 and September 5th-- 1 604.48. Other charges (explain/itemize): LATE CHARGES--$ 251.11 fromA rrstown Bank Loan Department 717 709 3091 1011612008 09:18 #014 P.0051014 sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. From:Orrstown Bank Loan Department 717 709 3091 10/1612008 09:19 #014 P.006/014 HOW TO CONTACT THE LENDER: Name of Lender: Orrstown Bank Address: P.O. Box 250, 77 East King Street Ship pensburo, PA 17257 Phone Number: (717) 530-2661 Fax Number: (717) 532-4099 Contact Person: Bets y J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: • TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. • TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. • TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, g- --A, ,4z BETSY J. SMITH, COLLECTION DEPT. • From:Orrstown Bank Loan Department 717 709 3091 10116/2008 09:19 #014 P.007/014 CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Community Action Comm 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 of the Capital Region Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Financial Counseling Services of Franklin 31 West 3`d Street Waynesboro, PA 17268 (717) 762-3285 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Weatherization Office 917 Mifflin Street Huntingdon, Pa. 16652 (914) 643-2343 Fax (717) 637-3294 a N y o l0 V $ n ? V c ? y1g L E ?c d ® an ? c d a ? j S W G0 (? J g PC ?a f C d N_ u? 0 ?H LL ?y 1 9 1 a a 2 m? aN N a O 2 N LL M E 0 U. U) Q tr RK, 0004259703 SEP MAUD 'PROM, ZP CODE C) )\ m ? O O N O U n Z U) CL n O N ` Q M LL U) a ` ?. a z i Uy? o . EA ; w ? t ?V y 2 g ¢ s b6 .. ?+\ U ¢ aE ? ? m ,2 z N q k 0 ¢ ;n ? S$ , g m m0 1N ~ h69T OLho h000 0 ST2 9002 EXHIBIT "E" FromA rrstown Bank Loan Department 717 709 3091 10/16/2008 09:23 ¦ Complete Rom 1, 2, and 3. Also complete item 4 If Restricted Delivery Is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front: i(Apace permits. Wt 1. Article Addressito: C ? q A. Signature X ? Agent ? Addressee . B. Received by (Printed Name) C. Date of Delivery D. Is delivery address different from Rem 1? 0 Yes If YES, enter delivery address below: ? No #014 P.014/014 3. Service Type / 4/Q / Certified Mail ? Express Mall ? Registered ? Return Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Delivery! (Extra fee) t3 Yes 1 2. Article Number - MmsterfromswWceracer? 7 006 2150 0004 047 0 1900 i PS Form 3811,; February 2004 Domestic Return Receipt 102545-W-M-1640 . =y' • "t'rS'?` . 4 fit `? r'I T! !? 90?• - r ODE a 16 T?, ? ?[ I ?I O e ?I cr Ej o »A N ?e n o LO ? r , ! ? ? LL? IL? ? '1f $? '- ° S m h W a„ to ti C N a a ¢ U ¢? S m a ? M C t` Q o E ? d o a ? ° m 41 o O V W-Q IS co ¢°w r m y? E h ?„ I E 3 ' ?D hDOD OS L2 900 D ? 0061 r .. mE ? ? ) ° o ? d ?r u ?l Aj 0 n ?v ?`ID ' --as- C , SHERIFF'S RETURN - REGULAR CASE NO: 2008-06578 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS AUGUST WILLIAM J ET AL MICHELLE GUTSHALL , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT -'MORT FORE was served upon AUGUST WILLIAM J the DEFENDANT at 1501:00 HOURS, on the 18th day of November-, 2008 at 83 RIDGE AVENUE CARLISLE, PA 17013 by handing to CARMEN AUGUST, WIFE a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge 18.00' 5.00 .59 10.00 00 33.59 Sworn and Subscibed to before me this of day So Answers: R. Thomas Kline 11/19/2008 OBRIEN BARIC SCHERER By: Deputy heriff A. D. N SHERIFF'S RETURN - REGULAR CASE NO: 2008-06578 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS AUGUST WILLIAM J ET AL MICHELLE GUTSHALL Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon AUGUST CARMEN K the DEFENDANT , at 1501:00 HOURS, on the 18th day of November , 2008 at 83 RIDGE AVENUE CARLISLE, PA 17013 by handing to CARMEN AUGUST a true and attested copy ofICOMPLAINT - MORT FORE together with and at the same time direct ng Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 6.00 Service .00 001111* Affidavit 00;y Surcharge 10.00 R. Thomas Kline .00 16.00 11/19/2008 OBRIEN BARIC SCHERER Sworn and Subscibed to By: before me this day Deputy Sheriff of A.D. ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM 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 Defendants, William J. August and Carmen K. August, for failure to file an answer to the Complaint of Plaintiff. True and correct copies of the Notices of Default are appended hereto as Exhibit "A." True and correct copies of the Certificates of Mailing for the Notices of Default are appended hereto as Exhibit "B." I certify that the Notice of Default was given in accordance with Pa.R.C.P. 237.1. Plaintiff requests judgment in the amount of $261,904.79 as set forth in the Complaint together with interest of $3,087.20 to December 23, 2008 with a per diem thereafter of $45.40 for a total of $264,991.99. Respectfully submitted, ' RIEN, B & RER r David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 TO: William J. August 83 Ridge Avenue Carlisle, Pennsylvania 17013 Date of Notice: December 10, 2008 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM 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 LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 xBARI S RER David A. Baric, Esquire 19 West South Street Carlisle, PA 17013 (717) 249-6873 EXHIBIT "A" ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 TO: Carmen K. August 83 Ridge Avenue Carlisle, Pennsylvania 17013 Date of Notice: December 10, 2008 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM 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 LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 N, BARIC AN) ERER j r David A. Baric, Esquire 19 West South Street Carlisle, PA 17013 (717) 249-6873 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: -016 r ?Y1 ri ?!- G?ifX?l' vs? 1 u Sfm rl sly I?b One piece of ordinary mail addressed to: l* U -? 13 ldo v E rl?sl I?bl3 0 O 0 C2 {?} 0 od .11 as r `n? T n c n ? to -ao m w 00 a x m PS Form 3817, January 2001 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: If.VI YIfJ °?" Schw Sfmti- 0 Nrmw iece of ordinary mail addressed to: K . u s ?d v r1t51 ?R ? DI 0 0 O .-6 mo(n 49 p -I +w ? 00 31 M all N y h N PS Form 3817, January 2001 EXHIBIT "B" CERTIFICATE OF SERVICE I hereby certify that on December 23, 2008, I, David A. Baric, Esquire, of O'Brien, Baric j & 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 party listed below, as follows: William J. August Carmen K. August 83 Ridge Avenue Carlisle, Pe ania 17013 1 David A. Baric, Esquire 11Q, v c"r ti fi W r? C.; ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM NOTICE OF JUDGMENT PURSUANT TO Pa.R.C.P. 236 TO: William J. August 83 Ridge Avenue Carlisle, Pennsylvania 17013 Notice is hereby given to you of entry of a judgment against you in the above matter. Prothonotary Date: Q! ';)? .oz6m ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM NOTICE OF JUDGMENT PURSUANT TO Pa.R.C.P. 236 TO: Carmen K. August 83 Ridge Avenue Carlisle, Pennsylvania 17013 Notice is hereby given to you of entry of a judgment against you in the above matter. Prothonotary"/., / f Date: k) a ?3 - 'p-'nl>? 9 •o. ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 PRAECIPE TO STRIKE JUDGMENT TO THE PROTHONOTARY: Please mark the judgment entered in this matter on December 23, 2008 as striken without prejudice. Date: January 15, 2009 Respectfully submitted, O'B EN, BARIC & SCH R David A. Baric, Esquire I.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff A $as CERTIFICATE OF SERVICE I hereby certify that on January 20, 2009, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Strike Judgment, by first class U.S. mail, postage prepaid, to the party listed below, as follows: William J. August Carmen K. August 83 Ridge Avenue Carlisle, Pe ania 17013 i David A. Baric, Esquire ('3 r T 3 t ;'?,.7 1 , _ 70 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 V. WILLIAM J. AUGUST and CARMEN K. AUGUST, husband and wife, 83 RIDGE AVENUE CARLISLE, PA 17013 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008- 6578 CIVIL TERM PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: Kindly mark the above-captioned action as having been discontinued without prejudice. Respectfully submitted, O' N, BARIC SnCHE I 4 A A Date: January 15, 2009 David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff T'' CERTIFICATE OF SERVICE I hereby certify that on January 20, 2009, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of Praecipe To Discontinue, by first class U.S. mail, postage prepaid, to the parties listed below, as follows: William J. August Carmen K. August 83 Ridge Avenue Carlisle, Pennsylvania 17013 Y David A. Baric, Esquire h7 S ?w