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HomeMy WebLinkAbout12-31-08F'~ FI LES1CIients~.Members I st 1 ! 4701FILFS\Currentb2\ l 1470.72Btnerg.Pet.Response Created: 920/04 0:06PM Revised: 17~31i03 9:24AM 3050.'_88 Christopher E. Rice, Esquire L'.D. No. 90916 Jacob M. Theis, Esquire I.D. No. 208631 ''~' NIARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER - ~ ~' MARTSON LAW OFFICES 1 ~0 East High Street ~ ... Carlisle, PA 17013 ~ ~~ (717) 243-3341 Attorneys for Plaintiffs ~~ IN THE COURT OF COMMON PLEAS Ole CUMBERLAND COUNTY, PENNSYLVANIA L~~1 RE: ESTATE OF MICHAEL T. GREEN ORPHANS COURT Petitioner Docket No: 21-08-0901 EMERGENCY ANSWER TO PETITION FOR EMERGENCY RELIEF AND PROTECTION OF ESTATE ASSETS AND NOW comes Respondent, Members 1 S` Federal Credit Union ("Respondent"), by and through its counsel, MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, ;end answers Petitioner's Emergency Petition as follows: 1. Admitted. 2. Admitted. 3. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 3. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 4. Denied. The averments of Paragraph 4 constitute conclusions of law to which no responsive pleading is required. 5. Admitted in part and denied in part. It is admitted that Michael T. Green ("Decedent") had accounts numbered 83916 and 303655. It is denied that all accounts under -, rJ 303655 were savings accounts. Rather, the accounts existing under 303655 consisted of a savings account, a money management account, and a certificate of deposit. 6. Admitted in part and denied in part. It is admitted only that an attachment labeled Exhibit "C" is attached to the Petition. The remainder of paragraph 6 is denied, including the content of Exhibit "C," as the documents speak for themselves. 7. Denied. The document speaks for itself. 8. Denied. The documents speak for themselves. 9. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 9. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 10. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 10, as no employee was named in the averment. Said averment is therefore denied and strict proof thereof is demanded at the hearing. 11. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 11. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 12. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 12, as no employee of Respondent is listed in the averment. Said averment is therefore denied and strict proof thereof is demanded at the hearing. By way of further response, Petitioner's counsel did contact Denise Wolfe, an employee of Respondent, to discuss the holds on the accounts, however, at no time did Petitioner's counsel represent that the holds were causing a financial burden on the estate.. 13. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 13. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 14. Denied. The document speaks for itself. 15. Denied. The document speaks for itself. 16. Admitted in part and denied in part. It is admitted that Respondent froze Decedent's accounts. The remainder of paragraph 16 is denied. By way of further answer, Respondent is merely exercising their legal rights as more fully set forth below. 17. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 17. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 18. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 18. Said averments therefore are denied and strict proof thereof is demanded at the hearing. By way of fiirther response, it is denied, as the document speaks for itself. 19. Denied as stated. The accounts relevant to the present emergency petition are two savings accounts, a checking account, a money management account, a certificate of deposit account, a Used Vehicle Loan, a Loan and Security Agreement for the purchase of Unimproved Land, and a Visa Credit Card account. 20. Denied. As is standard with most credit agreements, the Motor Vehicle Installment Sale Contract ,the Loan and Security Agreement for the purchase of Unimproved Land, and the Members 1 S` Visa Credit Card Application all expressly include "death" under the definition of "default." Thus, from the clear and unambiguous language contained in the aforementioned documents, as well as the petitioner's own averments, Decedent was in default of his obligations to Respondent on August 21, 2008. A true and correct copy of the Loan and Security Agreement for the purchase of unimproved land, the Motor Vehicle Installment Sale Contract, and the Credit Card Application are incorporated herein and attached hereto as Fespondent's Exhibit "A." 21. Denied. Respondent did not "unilaterally take control of the monies in the Decedent's Accounts," but rather, exercised its legal rights. On October 12, 2006, Decedent and 1`~elly D. Green ("Executrix") signed a Members 15` FCU Membership Application ("Membership Application"), thereupon becoming members of Members 1 S` Federal Credit Union. A true and correct copy of the Membership Application is incorporated herein and attached hereto as Respondent's Exhibit "B." The terms and conditions of membership were contained in the Members 1 S` Federal Credit Union Membership and Account Agreement ("Membership Agreement"). A true and correct copy of the relevant pages of the Membership Agreement is incorporated herein and attached hereto as Respondent's Exhibit "C." On page 6 of the Membership Agreement, under paragraph number 19 and titled "Pledge/Statutory Lien," the Decedent and Executrix agreed to the following provisions: Unless prohibited by law, you pledge and grant as security for all obligations you may have now or in the future, except obligations secured by your principal residence, all shares and dividends and all deposits and interest, if any, in all accounts you have with us now and in the future.... the statutory lien gives us the right to apply the balance of all your accounts to any obligation on which you are in default. After you are in default, we may exercise our statutory lien rights without further notice to you. Your pledge and our statutory lien rights will allow us to apply the funds in your account to what you owe when you are in default, except as limited by state or federal law. (Emphasis in original). On page 1 of the Membership Agreement, under paragraph number 3(a), titled "Rights of Survivorship" both the decedent and Executrix agreed to the following provisions: A surviving owner's interest is subject to the Credit Union's statutory lien for the deceased owner's obligations, and to any security interest or pledge granted by a deceased owner, even if a surviving owner did not consent to it. Federal Credit Unions possessing liens on depository accounts are said to hold a "possessory security interest." In re Muhammad, 314 B.R. 546 (Bankrpt. Crt. W.D. Pa. 2004). Under the long standing and well settled law of this Commonwealth, a secured creditor in possession is entitled to retain the collateral held and apply the value of the collateral to the debt owed by a decedent, often referred to as the principal of "setoff ' in the context of banking. See In re Pyloreland's Estate, 349 Pa. 374 (1944); Griggs Estate, 54 Pa.D.& C. 25 (Montg. Co. 1945); Newcomer's Estate, 70 York 162 (1957); Pioneer Commercial Funding Corp. v. American Financial Mortg. Corgi, 855 A.2d 818, 824, FN11 (Pa. 2004) (stating that "a bank's right of setoff arises under common law..."); Pennsylvania Nat. Bank & Trust Co. v. CCNB Bank. N.A., 667 A.2d 1151, 1153 (Pa.Super. 1995) (stating that the "right of setoff has long been recognized as part of Pennsylvania common law ..." and that such "right of setoff is intact and was not superseded by the adoption of the Uniform Commercial Code); Royal Bank of Pennsvlvania v. Selig, 644 A.2d 741, 744 (Pa.Super. 1995) (stating that "common-law right to set-off gives [banks] right to self-help that takes priority over other creditors claiming right to funds on deposit."); Pennsylvania Jurisprudence, PAJUR PROBATE 12:49 ("A secured creditor of a decedent may elect to relinquish his or her security and share as an unsecured creditor in the e;state or may choose to retain his or her security, and claim only the balance after deducting the value of the collateral.") (emphasis added). In addition to Pennsylvania law, Federal Credit ilnions have been statutorily granted the right to place liens on depository accounts, shares and dividends of members by federal statute 12 U.S.C.A. § 1757, and the case law interpreting that federal statute have held that administrative freezes of those accounts is appropriate. See In re T/Iuhammad, at 549, FN1, citing 12 U.S.C.A. § 1757(5) and (11). Thus, not only is there an absence of state or federal law limiting Respondent from applying the funds in the subject accounts to the debts owed by the Decedent, but there is actually state and federal law expressly authorizing Respondent to do the same. Consistent with this, Respondent in this case has chosen to retain the collateral held and apply the value of the collateral to the debt, and is fully within its rights to do so. 22. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 22. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 23. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 23. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 24. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 24. Said averment is therefore denied and strict proof thereof is demanded at the hearing. Byway of further response, said averment is denied as a conclusion of a law. 25. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 25. Said averments therefore are denied and strict proof thereof is demanded at the hearing. 26. Denied. The averments of Paragraph 26 constitute conclusions of law to which no responsive pleading is required. 27. Denied. The averments of Paragraph 27 constitute conclusions of law to which no responsive pleading is required. By way of further response, it is denied that Petitioner is proceeding under Pa.R.C.P. 1531. 28. Denied. Respondent is not "seizing control of assets belonging to the Estate," but rather, has elected to lawfully retain its collateral and is within its rights to do so as more fully explained above. 29. Denied. Respondent has elected to retain collateral and is within its rights to do so as more fully explained above. Petitioner's contention that the actions of Respondent are cantrary to Pennsylvania Probate and Estate statutes and relevant case law is clearly erroneous for three main reasons: (1) 20 Pa.C.S.A. § 3381 expressly states that "Nothing in this code shall be construed as impairing any lien or charge on real or personal estate of the decedent which existed at his death;" See also 19 West's Pa. Prac., Probate & Estate Admin., § 12:5 ("The order of priority, however, is subject to claims by ... secured creditors who have liens or charges on the decedent's real or personal property at the time of death")' citing Moreland's Estate; Here, Respondent's lien on the subject accounts existed on the date Decedent executed the Membership Application -October 12, 2006; (2) 20 Pa.C.S.A. § 3392 is not applicable here, because the accounts at issue are not "applicable assets" as defined by case law; See Moreland's Estate and 19 West's Pa. Prac., Probate & Estate Admin., § 12:5 (clearly implying from the holding and language therein that the collateral held by the credit union is not an asset of the estate, but rather, property of the creditor); and (3) Even if the Pennsylvania Probate and Estate statutes did prevent credit unions from retaining collateral of defaulting decedents, which is expressly denied, the federal statute authorizing Federal Credit Unions to obtain liens on accounts, 12 U.S.C.A. § 1757, preempts state law. See generally Florida Lime & Avocado Growers Inc. v. Paul, 373 U.S. 132, 142-143 (1963), citing U.S. Const. art. VI (holding that where federal and state law conflict, the Supremacy Clause of the Constitution dictates that the federal law, if rightfully enacted under Congress' legislative power, shall prevail). 30. Denied. The averments of Paragraph 30 constitute conclusions of law to which no responsive pleading is required. To the extent an answer is deemed required, Petitioner's reliance on O'Hara v. Manley is misplaced, as that case deals solely with an executor's ability to ' Ironically, 19 West's Pa. Prac., Probate & Estate Admin., § 12:5 was written by David C. Cleaver, the same author Petitioner cites out of context as authority for her position in paragraph 4 of her petition. confess judgment against the estate of his/her decedent, and says nothing of secured credit unions in possession of collateral. 31. Denied. The averments of Paragraph 30 constitute conclusions of law to which no responsive pleading is required. To the extent an answer is deemed required, Petitioner's reliance on In re Hughes' Estate is also misplaced, as it has been abrogated to the extent :inconsistent with Moreland's Estate and the passage of 12 U.S.C.A. § 1757. WHEREFORE, Respondent Members 15` respectfully requests that this honorable Court deny the relief sought by Petitioner, dismiss this matter with prejudice in favor of Respondent, and award Respondent such costs, interest and other relief as the Court deems just and reasonable. Date: ~2-3G~ ~~ MARTSON LAW OFFICES $y ~`~ ~~ Christopher E. Rice, Esquire I.D. Number 90916 Jacob M. Theis, Esquire I.D. Number 208631 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Respondent 1SY CLOSED-END NOTE, DISCLOSURE, _ LOAN AND SE~ItRLTY~GREF~lIEflLi 5000 t-nurse Drive, P.O. Box 40 60PRn61ER~s NAME Artn Aooaess PAechanicsburg, PA 17055 MICHAEL T GREEN 4048 SENECA AVE MEMBHR51° cnr~p HILL, PA not t I r.„.u ~mrr n~i°a ACCOUNT NUMBER G0~90RROWER'S FfXED { {VARIABLE ANNUAL PERCENTAGE FINANCE CHARGE: AmountEinanced:Theamountof TotalotPayments:iheamount RATE: The cost of your credit as a The dollar amount the credit will credit provided to you or on your you will have paitl after you have yearly rate. ' cost you. behalf. made all payments as scheduled. 7.14 ~ $ 5,597.57 $ 24,300.00 $ 29,897.57 Variable Rare: If your loan has a variable rate as mdicaled above the Annual Percentage Rate may increase during the term o(Ihis transaction d the {index) changes the cretlil union well add a margin of to the index value. The rate will change monthly on the first tlay of the month. The rate will never be nigher Than the maxlmurn role alloyed by law, and rl will never be less Than Any fnf crest tale Increases will result In more payments of the same amount For Example, if your loan was (or $5,000 al 15a.5 far 48 nlunlhs and the Mnual Percentage Rale increased by 2% after one year, the term of your loan would invease by Iwo months 'Preferred Rate: IF checked, the following applies to your loan: _ ^-~~- '---- --'--- - ~~ Automatic Payment Discounted Rate: Because you have agreed to make your required monthly payments through an automatic deduction from your Checking/Savings ,ounL your ANNUAL PERCENTAGE RACE has been discounted by 20%. The ANNUAL PERCENTAGE RATE disdosed above in the ANNUAL PERCEN (AGE RATE box is the Automatic Payment Discounted Rate. This rate will increase by 20 % i/you cease the automatic payment arrangement or fail to maintain suffcienl funds in your account to raver the aulomabc payments. In such a case, the effect of the increase will be to extend the term of your loan. For example, if your Automaac Payment Discounted Rate Is 10 a $5,000.00 loan for 60 months and you cease the automatic payment anengemant, your rata will increase to 10.20%, resulting in 1 additional payment. Variable Rata Preferred Loans. If your loan is a variable rate loan and you qualify for a preferted rate, your preferred discount is taken al the lima you lake out your loan. This initial preferred ANNUAL PERCENTAGE RATE will then vary according to charges in the Index (as disdosed above). For example, i(a variable vale loan's initial ANNUAL PERCENTAGE RATE Is 12"a at me time you lake the loan, your initial preferred ANNUAL PERCENTAGE RATE will be N/A%. Your initial preferred ANNUAL PERCENTAGE RATE will then vary according to the Index, as disdosed in the "Venable Rate" provision above. Fixed Rate Preferred Loans. II your loan is a hied rate loan and you qua{i(y for a preferretl rate, your ANNUAL PERCENTAGE RATE will be the preferred ANNUAL PERCENTAGE RATE disclosed above for as long as your preferzed staWS remains in effect. Number of Payments Amount o/Payments Payment Frequency When Paymanta Are Dus Property Insurance: You mayobtain property insurance from anyone you want (hat is acceptable to rayr»rem 155 $191.66 ei-Weekly -Beginning 08/0112008 the credit union, If you gel the insurance from the srnam,la credit union you will pay wn na 1 $190.27 Final DUe-On 07/11/2014 ~ 3N)A Security: Collateral securing other loans witfi tfie credit union _ the goods or progeny _ Other wll also secure This loan. You are giving a security interest in ii being purchased. ( i (Describe): your shares andlor deposit in the credit union, and: X - _ _ -_ _ _ _ Late Charge: If a payment is late by t0 days or more you will Required Deposit Balance: The Annual Percentage Rate tloes Filing Fees: Non-Filing Insurance -1- -- be charged a late tee of 5"h of your scheduled payment. not take into account your required deposit balance, if any. ~ N'A $ N/A Che°:'°neduTeeeSi arc'oraoaamamr:m~"naa'~~n'~:a,maa °""'° ""y'" "'-°°'a ,any AMOUNT FINANCED $ 24,300.00 Amount Paid to others on your behalf (D escribe) $ To $ f o ____.-___- .4MOUNT GIVEN TO YOU DIRECTLY $ 24.300.00 $ Ta $ To $ To _. $ To $ Tn - _. $ To $ To AMOUNT PAID ON YOUR ACCOUNT $ $ To $ '(n $ To $ 7n $ To $ To $ To $ To PREPAID FINANCE CHARGE $ 0.00 $ To $eoo To rPea $ To Aured smwlona $ To Auirn sowmaa _ SECURITY 1NFORMAT{ON MAkE MODEL YEAR I.D. NUMBER NPE VALUE OTHER (Describe): ''ss YALE STREET 1"ou Pledge Shares AMOUNT ACCOUNT NUMBER AMOUNT ACCOUNT NUMRFR alidlor Deposits of $ $ You agree Ihal the terms antl conditions in the disclosure statemen t and ilia loan antl security agreements located on page 2 of leis document shalt apply to Ihrs loan rl tr,ere Is ~rnre than one bon ower, we agree that all the conditions of the loan and security agreements governing this loan shall apply to both jointly and severally. You acknowledge that you have Ived a ropy of the loan and serunry agreements and disclosur e statement. Co-signer: If you are signing as co-signer, you acknowledge receipt of the notice to co-signer nnlained on page 2. BORROW R'S SIGNATU DATE ^ CO-MAKER ^'OTHER OWNER ^ "CO-SIGNER DATE X ~ ~„~ (SEAL) X (SEAL) [] l:0-MAKER ^ •OT R ON/NER ^ "C(7-SIGNER DATE ^ CO-MAKER ^ 'OTHER OWNER ^ "COSIGNER {LATE x (SEAL) X (SEAL; ^ f.0-MAKER [] 'OTHER OWNER ^ °C.O-SIGNER DATE [-} CO-MAKER ^'UTHER OWNER ^ "CO-SIGNER DATE X (SEAL) X ISEALI vaR awow~n is armor Dn la m. .. a.eDnlrae Dann.,, wa+na,. m. am..owe.,, aalea.m.Da,a.x.r~. aaroa var.dmvr n.nent em ~•ae.,,mm:mn ' urlry Aq,eemelrt, ~ auaeamo, wal~caall noM1Ce to wgcn ne orfsne would omeewisa0e conned by law. NOTICE TO CO-SIGNER Vou are being asked to uarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to Be sure You ran afford 1n Pay if you have lo, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount The creditor can collect this debt from you without first trying to collect from the borrower. The creditor can use the same collection methods against you that ran be used against the borrower, such as swag you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record This notice is not the contract that makes you liable for the debt. Page 1 of 2 EXHIBIT "A" nllrini.~VVER'S TAME LOAN NUMBER AGCOUtJr NnMBER n,ilt~~rl~~^.i MICHAEL f GREEN 269402 8391608 07/17/2008 IN IHESE A ~REEMFNfS THE WORDS 'CR EDfr UNION" MEANS MEMBERS 1sT FEDERAL CREDIT UNION- TIIE WORDS "Yt~U," "YfIUR" AND "'Ins 1R5" f.il.„I! Ii I~.ISE NAMED AS ©ORROWER(Sy LOAN AGREEMENT PaymentslFinance Charges: For value received, you promise to pay, at the Credit Union's office, all amounts due. All payments shall be made pursuant to the disclosure statement on page 1 of this document. You understand that the finance charge and total of payments shown on page 1 of this document are based on ilia assumption that all installment pa menls wdl be made nn fhe scheduled due dates, and , if you have qualified for preferred rate that you continue to satisfy the conditions of that preferred rate. If you (aij to pay any installment by fhe lime it is due, you well pay additional interest on the overdue amount. Allocation of Payments artd Additional Payments: Payments and credits shall be applied In ilia following order: any amounts past due, any tees or charges owing, including any insurance premiums; accrued interest or finance charges; outstanding principal, Payments made in addition to regularly scheduled payments shall be applied in fhe same order. Preferred Rate: If you quality for a preferred rate as disclosed on pa e 1 of this document or in a separate preferred rate addendum, you understand that you must meet the conddions discosed to you in order to qualify for the preferred rate and must continue to meet those conditions in order o keep your preferred rate. IF you fail to meet those conditions, your rate will ulrrease, thereby extending the terms of your loan. You promise to continue making payments and to meet all obligations under this Agreement even if you no longer receive the preferred rate. Late Charges: If you make a late pa merit you agree to pay a late charge if one is disclosed on page 1 of this document. Property Insurance: IF you obtain a loan secured by a motor vehicle or other tangible property, you must obtain insurance which protects the credit union from financial loss The amount and covesge of the property insurance must be acceptable to the credit union. Such a policy must provide at least fire, theft, combined additional coverages and collision insurance. It must contain a Loss Payable clause endorsement naming the credit union as lien holder. You may obtain this insurance from any agent of your choice and direct the agent to send the credit union a copy of the policy. Debtor Responsibility: You promise to notify credit union of any Change in your name, address or employmeet You promise not to apply for a loan it you know there is a reasonable probability that you will be unable to repay yyour obligation according to the terms of the credit extension. You promise to inform credit union of any new information which relates to your ability to repay your obligation. You promise not to submit false or inaccurate information or willfully conceal information regarding your creditworthiness, credit standing, or credit capacity. Default: You shall be considered in default if any of the following occur 1) if you break any promise made under this Loan Agreement or under the Security Agreement; or (2) if you do not use the money the credit union loaned you for ilia purpose staled in your application, or (3) if the credit union should, in good arth, believe that prospect of payment, performance or real¢ation of the collateral, if any, is impaired; or (4 if ou ~ or (5) if you file a petition in bankruptcyy,, insolvency, or recei or are put involuntarily into such proceedin s; or (6) if the collateral, rf any, given as I securityy for this account Is lost. damagedd or destroyed, or if it is levied I against, attached or garnished{ or (7) d you do not pay on time any of your oilier or future debts to the credit union. IF you default, the credit union may, - at the credit union's option and without prior notice, declare this loan I immediately due and payable, and you must immediately pay to the credit union at that time the total unpaid balance, as well as ilia Finance Charge to date, any late charges and costs of collection permitted under law, i including reasonable attorney's fees, chat the credd union may incur, up to 20'.6 of the unpaid principal and interest. Costs of collection include, but are ( not limited to, repossession fees, appraisals, environmental site assessments, casualty damage insurance covenge, and attorney's fees for any action taken by an attorney in order to collect this loan or preserve or protect the credit union's rights and remedies, including, without limitation, pre-suit demands for payment, pre-suit mediation or settlement negotiations, investigation and assessment of the credit unions' rights, participation in bankruptcy cases, matters, and proceedings (including, without limitation, filing proofs of claim, pursuing reaffirmation agreements, attending meetings n creddors, and pursuing complaints, motions, and objections that relate in any way to the credit union's collateral or right to pa merit), collateral disposition, non-bankruptcy Suits andlor administrative actions. antl appeals. The principal balance m default shall bear interest at the contract rate Statutory Lien: If you are in default, federal law gives the credit union the right to appplyy ilia balance of shares andlor dividends in your account(s) al the bme ofdefault to satisfy this loan. Once you are in default, the credit union may exercise this right without further notice to you. Delay in Enforcement Credit Union may delay enforcing any of the credit union rights under this agreement without losing them. Irregular Payments: The credit union may accept late pa merits or partial payments, even though marked "payment in full,' without losing any of the uedit union rights under this agreement. Co-makers: If you are signing this agreement as a co-maker, you agree to be equally responsible with the borrower, but the credit union may sue either or both of you The credit union does not have to notify you that this agreement has not been paid. The credit union may extend the terms of payment and release any security without notifying or releasing you from responsibility on this agreement. SECURITY AGREEMENT 1. To secure paym nt of this loan antl all eze enditures incurred by the credit union in connection with this loo o (n r lizing n a s ity Interest, you gr t la ilia cretlit union a security interest In Ilia pp op rrttvv described on Sagge 1 of this document. The security Interest Inclurdes alluincreases, ubstitutions and additions to the secured property, proceeds trom any insurance on the secured property and all earnings recewed from the secured property. Cross-collateralizatlan: Property given as security Tor this loan or for any other loan Borrower has with Ne credit uMon wilt secure all amounts Borrower owes fhe credit union now and In the future. However. property securing another debt will not secure Ihls loan if such property Is Borrowers principal resitlence (unless the pr p cnswn notices era given and any other Iegar requirements are sausfiad(, or are non-purchase money household goods. 2. Vou will not change the location of sell or transfer Ilia collateral unless you have Ne credit union s pdor wmten consent 3. You warrant that you have pp od title to the collateral, free of all security interests except that given to the credl union end except for any interest of anon-c:~- aker owner of the collateral who has signed the agreement in the indlcalco place. 4. You will pay all lazes, assessments, end liens against or attached to the properly descnbe0 and further agree to keep the property in pood condition, housed in a suitable shelter. You ag ee to execute Flnancing slaremenis and security agreement amendments at the credit union's request and will defend the property against adverse third parry claims 5. You will maintain insurance to cover any vehiUe er other prop rty in which the credit union has a security interest. This insurance will be in a form and an amount satisfactory to the credit union Vou will supply the credit union with proof of such insurance until ail sums owed to credit union and secured by This property are ref~old. If you fail to maintain such insurance, credit union may but s not required ta, ohtarn insurance of our own and add the cost of such to the sums owed- Thls cost will Dear interest at ilia contract rate until paid. 'IOU further assign to the credit union the right to receive the proceeds of any nsurance nn such property, antl direct any insurer to pay those proceeds diree:lly to credit union. fou authorize the uedit union to endorse any the ~ or draft provided as the proceeds o(such insurance. and apply those proceeds to the sums owed to the credit union Ypu further authorize the credit union to provide your Insurance Service Center with the necessary information roc verification or adequate r:nverage. You acknowledge that insurance or any extension thereof, p{acetl by Ina oedd ni n Is without beneft to you individually but is primarily for the protection of the cretlit union. 6. Should the credit union feel at any lima that the seointy esenfed has diminished In value, or for any reason feel that addilionaPsecudN isrequired, yyou agree to assign to credit union within ten (10) days whatever ad atonal secunry the credit union feels is necessary to protect the credit union against possible loss. 6100 2199 Contractual Pledge of Shares: You pledge all your shares and deposits in the cretlit union, including future additions, as security for this loan. In case you default, the credit union may appy these shares antl deposits tq t8e payment of all sums tlue at the time of tlefaulf, including costs o(collectlon and ~- ncS:a olio.-..-.a~ s, lh~t .he credi: _n:un nay inc:: r, up to 20°.6 et Lho unpaid principal and interest. No Ilan or right to impress a lien on snares and deposits shall apply to any of your shares which may be held in an "Individual Retirement Account" or "Keogh Plan:' Page 2 of 2 B. 'foe Credit union is hereby appointed as your AttomeVV-l -F act to partnmr an acts which the aedil union (eels are necessary to protect the collateral and t~re security interest which this agreement creates 9. If Ihere is more than one borrower, your obligations under This agreement are joint and several, each being equally responsible to fulfill ilia terms nF this agreement. 10. This security agreement not ony binds you, but your executors, administrators, heirs, bntl assigns. PENNSYLWANIA JUN 2 7 R~"p MOTOR VEHICLE INSTALLYENT SALE CONTRACT, Dated JUNE 22nd aaa~ ANNtiiAl' FINANCE Amount Financed Total of Payments ~ Total Sale Price PERCENTAGE RATE CHARGE The amount of credit provided The amount you will have paid after you The total cast of your purchase on Thecos~t of your credit as The dollar amount the to you or on your behalf. have made all scheduled payments, credit including your downpayment a yearly rate. credit will cost you. of S 12500. 00 6.94 % S 1761.59 i 15657.53 S 17439.12 s 29939.12 YourPaynientSchedulewiltbe: Security: You are giving a security interest in the motor vehicle being No. of Payments Amount of Payments When Payments Are Due purchased. 36 S 484. 42 Monthly, beginningAUGUST 6th 2007 prepayment: Ii you pay off early, you will not have to pay a penaky. S NJA Filing foes: 5 late Charge: If a payment is late, you will be charged 296 of the portion of the payment which is late for each month, or part of a month greater than 10 days, that it remains unpaid. See below and any other Contract documents for any additional information about nonpayment, default, any required repayment in full befiore the scheduled date and prepayment refunds and penalties. a means estimate In this Contract 6271 CARLISLE PIKE we are theSEltER., BRENNER NISSAN MECHANIGSBURG PA 17050 Name Address Zip Code County CUMBERLAND You are the BUYER(S). MICHAEL T GREEN 854 LINDSEY RD CARLISLE PA 17015 Name(s) Address(es) Zip Codes} County If there is moire than one Buyer, each promises, separately and together, to pay all sums due us and to perform all agreements in this Contract iRADE•IN: You have traded in 1994 DODGE TRUCK DAKOTA GREEN 2 DOOR EXTEN the following vehicle: Year and Make Description if a balance is still owing on the vehicle you have traded in, the Seller will pay off this amount on your behalf. You warrant and represent to us that any trade•in is free hom lien, claim, encumbrance ar security irderest, except as shown in the 'Itemization of Amount Fnanced' as the "Lien PayoiL" PROPERTY INSURANCE: You may choose the person through whom insurance is obtained against loss or damage to the Vehicle and against liability arising out of use or ownership of the Vehicle. In this Contract, you are promising to insure the Vehicle and keep it insured. DEBT CANCELUITION (GUARANTEED AUTO PROTECTION) AGREEMENT IS YOLUNTARY AND NOT REQUIREO AS A CONDITION OF THE CREDIT. This agreement will not be provided unless you sign below, agree to pay the additional charge, and sign the separate disclosure and agreement page, which is part of this Contract This agreement will apply during the entire term of the Contract This agreement may not cover your entire indebtedness, see the MAXIMUM PROTECTION amount stated in the separate disclosure and agreement Type of Oebt Canceilatlon Agreement Charge Signature Guaranteed auto protection (GAP) S By signing, you select guaranteed auto protection N/A Signature of Buyer , SERVICE CONTRACT OR WARRANTY AGREEMENT IS VOLUNTARY AND NOT REQUIRED AS A CONDITION OF 7HE CREDIT, The service comract or warranty aD~eement wiR not be provided unless you sign the separate agreement with the third party provider, who is not the Seller named above, and ague to pay the additional charge, This section does not apply to any warranty that you may receive for which there is not separate charge. ,~ CREDIT INSURANCE IS ROT REQUIRED: Credit Life Insurance and Credk Accident & Heath (Disability) Insurance are not required to obtain credit, and will not Ire provided unless you sign below and agree to pay the additional cost(s). Please read the NOTICE Of PROPOSED CREDIT INSURANCE on the reverse side. Your insurance certificate ar policy vnTf tell you the MAXIMUM amount of insurance available. All insurance purchased will be for the term of the credit We may receive a financial benefit from your purchase of credit insurance. By signing, you select Single Credit Life Inwrance, What is your By signing, you select Single Credit Accident b What is your which casts S _ N/A age? Years Health Insurance, which costs ~ N/A age? Years Signature o B er m he insured tar Single Credit Life Insurance S~~ of Buyer to be insured hx Single Credit Accident & Health Insurance By signing, you Goth seket Joint N/ A What are By signing you bodr select Joint Credd W~~ percentage Credit Lile Insurance, which costs S your ages? Aceiderd & Health Inwrance, which coats i your ages? to be insured 1. 1. ~ IF YOU DO NOT MEET YOUR CONTRACT OBLIGATIONS, YOU MAY LOSE THE MOTOR YEHICLE AND PROPERTY THAT YOU BOUGHT WITH THIS CONTRACT, ANDJOR MONEY ON DEPOSIT WITH THE ASSIGNEE Ths Contract is between Seller and Buyer. All disclosures have been made by Setter. Seller intends 1p assign this Contract to the Assignee. , -. ~ I Signahues of both Buyers to f>e inwred For hint Credit ~ 5ignatun;s of froth Buyers to be insured for Joint life Insurance Credit Accident & Health Insurance Insurer. S VEHICLE: You have agreed to purchase, under the terms of this•Contract, the following motor vehicle and its extra equipment, which is called For the'Vehicle" in this Contract. USED 200~AN K (JTiL'ITY ~` ~' 6 Equipped X X A.T. _ P.S. _,_.. AM-FM Stereo _ 5 Spd. Other with ._ A.C. _ P.W. ~ AM-fM Tape ~ ~nyi Top ASSIGNEE: We may assign this Conhact and Security Agreement to a sales finance company which is the 'Assignee.' If the Assignee assigns the Contract to a subsequent assignee, the term also refers to such subsequent assignee. ARer the assignment, all rights and benefits of the Seller in tfiis Contract and in the Security Agreement shall belong to and be enforceable by the Assignee. The Assignee will notify you when and if Seller imakes an assi nment Y For To To To g MEMBERS 1ST FEDERAL CREDIT UNION For P.Q. BOX 40, MECHANICSBURG, PA 17055 To. CO-SIGNER: Any person signing the Co-signers Agreement below promises separately and together with all Co-Signer(s) and Buyer(s), to pay S ' all sums due and to pertorm all agreements in this Contract Co-Signor will not bean Owner of the Yehicla. For CO-OWNER: Any person signing the Co-Owners Security Agreemenf below gives us a security interest in the Vehicle and agrees separately and Amount Financed together with al{ Co•Owner(s) and 8uyer(sl, to perform all agreements in the Security Agreement and all other parts of this Contract except the = 15657. 53 'Promise to Pay' section. TERMS: The terms shown in the boxes above are part of this Contract We may retain a portion of amounts marked~ PROMISE TO PAY: You agree to pay us the Tote! Sale Price for the Yehick by making the Cash Dawnpayment and assigning the Tade•In, if shown above, an or before the date of this Contract, and paying us the Amount Financed plus interest Yau promise to make payments in accordance with the Payment Schedule. You promise to make paymentr on or before the same day of each month as the first payment due date. You agree to pay all other amountr which may become due under the terms of this Contact You agree fn pay the Seller or Assignee costr of suit Yau also agree to pay seasonable attorneys' fees if Seller or Assignee hires an attorney to collect amounts due under this Contractor to protect or get possession of the Vehicle. You agree to make payments at the place ar to send payments to the address which the Assignee most recerdly specifies in the written notice tD you. The Annlla! Percentage Rate may ibe negolYable with the Seller. ADOITIONAI DISCLOSURES, TERMS AND CONDITIONS: The Se!!er may assign this contract and retain its right to Disclosures: Before signing this Contract, be sure that you receive and read the Disclosure to receive a ,part of the France Charge. Buyer. Iilt~ IoIl X12 AR~`~~53892 ~ i For Terms and Conditions: Before signing this Contract, be sure you receive and read the following, if marked X, whicfi are additional pages to and part of this Contract ® This Contract cordinues on the reverse side. ^ Debt Cancetlatan (guaranteed auto protection) separate disclosure and agreement 8y signing below, we agree to sell the Vehicle to you under the terms of this Contract NOTICE TO BUYER-DO NOT SIGN THIS CONTRACT 1N BLANK. YOU ARE ENTITLED TO AN EXACT COPY OF THE CONTRACT YOU SIGN. KEEP 1T TO PROTECT YOUR LE R H SELLER BRE:NNER NI AN BUYERiI. 06/22/07 (sEAu Oate BY: 06/22/07 BUYER (SEAIi 06/22/07 ' Date Date CO-SIGNER: YOU SHOULD READ THE NOTICE TO CO-SIGNER, WHICH HAS SEEN GIVEN TO YOU ON A SEPARATE DOCUMENT, BEFORE SIGNING THE CO-SIGNER'S AGREEMENT. CO-SIGNER'S AGREEMENT: You, the person (or persons) signing below as "Co-Signer "promise to pay to us all soma due on this Contract and to perform all agreements is this Contract. You intend to be legally bound by all the terms of this Contract, separately and together, with the Buyer. You arc making this promise to induce w to make this Contract with the Buyer, oven though we will use the proceeds only for the Buyer's benefit. You agece to pay even though we may not have made any prior demand for payment oa the Buyer or exercised our security interest. You also acknowledge receiving a completed copy of this Contract. (S EALI Co-Signer's :iignaturc Address (SEAL) Co-Signer's ;>ignature Address Date Date CO-0WNER'S SECURITY ArGREEMENT: You, the person signing below as "Co-Owner," together with the Buyer or otherwise being aU of the Ownets of the Vehicle, give w a security interdt is the Vehicle identified above. You agree to be bound by the terms of the Security Agreement and all other parts of this Contract except the "Promise To F'ay" section. You are giving w the security interest to induce w to make this Contract with the Buyer, and to secure the payment by the Buyer of all sums dtu on this Contract. You will not be responsible for any deficiency which might be due after repossession and sale of the Vehicle. ' (SEAL) 06/22/07 Co-Owner's Signature Address Date BUYER, C~0-SIGNER AND CO-OWNER, !F APPLICABLE, ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS CONTRACT' AT THE TIME OF SIGNING, INCLUDING THE ADDITIONAL DISCLOSURES AND PAGES LISTED 1N THE SECTION CAILED Ap I DISCLOSURES, TERM AND CONDITIONS. ~~ BUYER BUYER COSIGNER CO-SIGNER OR CO-OWNER NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION. BANCONSUMER FDRhI PA 123DC-sLC (?/a/( DRIGINa'1 • Whip • DEALER COPY -Gmry • BORRDWER'SICO•SICNERS COPY - fiink • CDPY - Goltlenrod ° ~ 9ANCDNSUMER SERVICE, lNG ADDITIONAL TERMS AND CONDITIONS 1. SECURITY I1G~tEEMENT: To secure the payment of all sums due and the performance of all required obligations under this Contract, you give a security interest in the Vehicle, in all parts (called "accessions"} attached to the Vehicle at any later time, and in any proceeds of the Vehicle, including insurance proceeds. The Assignee may set-off any amounts due and unpaid under this Contract against any of your money on deposit with Assignee. This includes any money which is now or may in the future be deposited with Assignee by you. Assignee may do this without any prior notice to you. 2. HOW THE TOTAL OF PAYMENTS IS COMPUTED: The Total of Payments is the sum of the Amount financed and the finance Charge. The Finance Charge consists solely of interest computed daily on the outstanding balance of the Amount financed. The Finance Charge shown on the front side has been computed on the assumption that we will receive all payments on their scheduled due dates. 3. COMPUTING INTEREST: We will charge interest on a daily basis on the outslanding balance subject 'to interest on each day of the loan term, including any period for which a late charge is also imposed. The daily interest race is equal to the Annual Percentage Rate divided by the number of days in that calendar year. Buyer agrees that because interest is calculated on a daily basis, late payments will result in additional interest (and, if applicable, a late charge}. Early payments will result in less interest being charged. Early and/or late payments will cause the amount of the final payment to change. 4. LATE CHARGE: Buyer agrees to pay a late charge for any payment not made within 10 days after its due date. The late charge will be 2% per month on the unpaid amount of the payment. We will consider any part of a month In excess of 10 days to be a full month. The late charge will be due when earned. No fate charge will be due if the reason that the payment is late i:s because, after default, the entire outstanding balance on this Contract is due. No late charge will be due if the only reason that the payment is late is because of a late charge assessed ran an earlier payment. 5. APPLICATION OF PAYMENTS: We wilt apply payments in the following order of priority: first to interest; and then to late charges, fees, principal and any other amounts you owe in the order that we choose. 6. PREPAYMENT:. You may prepay, in full or in part, the amount owed on this Contract at any time without penalty. If you prepay the Contract in part, you agree to continue to make regularly schedulr;d payments until you pay all amounts due under this Contract. This wiH ~ reduce the number of payments you will make. 7. WAIVERS. a. WAIVER BY SELLER AND ASSIGNEE: We and Assignee waive the right to treat any property as security for the repayment of this Contract, except for the Vehicle and the other security specifically mentioned in this Contract. b. WAIVERS BY' BUYER, CO-SIGNER AND CO-OWNER: You agree to make all payments on or before they are due without our having to ask. If you don't, we may enforce our rights without notifying you in advance. You give up any right you may have to require that we enforce our rights ;against same other person or property before we enforce our rights against you. You agree that we may give up our rights against some other person but not against you. You waive due diligence in collection and all defenses based on suretyship and impairment of collateral or security. 8. INTEREST AFTER MATURITY AND JUDGMENT: Interest at the rate provided in this Contract shall continue to accrue on the unpaid balance until paid in full, even after maturity and/or after we get a judgment against you for the amounts due. This will apply even if the maturity occurs because of acceleration. If at any time interest as provided for in this paragraph is not permitted by law, interest shall accrue at the highest rate allowed by applicable law beginning at that time. 9. YOUR PROMISES ABOUT OUR SECURITY INTEREST: You will not permit anyone other than us to obtain a security interest or other rights in the Vehicle. You will pay all filing fees necessary for us to obtain and maintain our security interest in the Vehicle. You will assist us in having our security interest noted an the Certificate of Ti11e to the Vehicle. You will not sell or give away the Vehicle. if someone puls a lien on the Vehicle, you will pay the obligation and clear the lien. 10. YOUR PROMISES ABOUT THE VEHICLE: You will keep the Vehicle in good condition and repair. You will pay all taxes and charges on the Vehicle. You will pay all casts of maintaining the Vehicle. You will not abuse the Vehicle or permit anything to be done to the Vehicle which will reduce its value, other than for normal wear and use. You will not use the Vehicle for illegal purposes or far hire or lease. You will not move the Vehicle from your address shown on the front of this Contract to a new permanent place of garaging without notifying us in advance. il. YOUR PROMISES ABOUT INSURANCE: You will keep the Vehicle insured against fire, theft and collision until all sums due us are paid In full. The insurance coverage must be satisfactory to us anti protect your interests and our interests at the time of any insured loss. The insurance must name us as "loss-payee" on the policy. The insurance must be written by an insurance company qualified to do business in Pennsylvania and licensed to sell insurance in the state where the Vehicle is permanently garaged. The insurance policy must provide us with at least ten (10} days prior written notice of any canceNation or reduction in coverage. On request, you shall deliver the policy or other evidence of insurance coverage to us. In the event of the loss or damage to the Vehicle, you will immediately notify us in writing and file a proof of loss with the insurer. a. OUR RIGHT TO FILE PROOF OF LOSS: In the event of any loss or damage to the Vehicle, if you fail or refuse to file a claim or proof of loss with the insurance company, you agree that the Seller, Assignee, any subsequent assignee, or any authorized employee of any of them ("we"} may file a proof of loss with the insurance company, in your name and acting as your agent, with respect to the insured claim. You agree that you do not have the right to and will not revoke the power you have given us to file a proof of lass. You agree that we may exercise this power for our benefit and not for your benefit, except as provided In this Contract and by law. b. OUR RIGHT TO ENDORSE INSURANCE CHECKS: You agree that the Seller, Assignee, any subsequent assignee, or an authorized employee of any of them ("we") may endorse your 12. OUR RIGHTS {F YOU BREAK YOUR PROMISES ABOUT THE SECURITY INTEREST, VEHICLE OR INSURANCE: If you fail to keep your promises to pay filing fees, taxes, liens or the costs necessary to keep the Vehicle in good condition and repair, we may advance any money you promised to pay. If you fail to keep your promises about required insurance, we may advance money to obtain insurance to cover lass or damage to the Vehicle. We have the choice of whether or not to advance any money for these purposes. Such insurance will be limited to an amount not greater than you owe on this Contract. THE INSURANCE WE PURCHASE MAY BE SIGNIFICANTLY MORE EXPENSIVE AND PROVIDE YOU LESS COVERAGE THAN INSURANCE YOU COULD PURCHASE YOURSELF. We will add any money we advance on your behalf to the balance on which we impose Finance Charges at the Annual Percentage Rate of this Contract. You agree to repay the money advanced as we alone may specify: (i) immediately on demand, or (ii} along with your monthly payments. If we choose to allow you to repay the money advanced along with your monthly payments, we can choose the amount of these payments and how long you have to repay. If any of our rights stated in this paragraph are not permitted by law, we still have the other rights mentioned. Our payments on your behalf will not cure your failure to perform 13. DEFAULT: In this paragraph "You" means the Buyer, Co-Signer and Co-Owner, or any one of them. You will be in "Default" of the Contract if any one or more of the following things happen: a. You da not make any payment on or before it is due; or ~- b. You do not keep any promise you made in this Contract; or c. You do not keep any promise you made in another Contract, Note, Loan or Agreement with Seller or Assignee; or d. You made any untrue statement in the credit application for this Contract; or e. You committed any forgery in connection with this Contract; or f. You die, are convicted of a crime involving fraud or dishonesty, or are found by a court with jurisdiction to do so to be incapacitated; or g. You file bankruptcy or insolvency proceedings, or anyone files bankruptcy or insolvency proceedings against you; or h. You take the Vehicle outside the United States or Canada without our written consent; or i. You use the Vehicle or allow someone else to use it in a way that causes it not to be covered by your insurance; or j. You do something that causes the Vehicle to be subject to confiscation by government authorities; or k. The Vehicle is lost, stolen, destroyed or damaged beyond economical repair, and not fixed or found within a reasonable time; or I. Another creditor tries to take the Vehiclb or your money on deposit with Assignee by legal process. 14.OUR RIGHTS IF YOU ARE IN DEFAULT OF THIS CONTRACT: If you are in Default of this Contract, we may enforce our rights according to law. We may also do the things specifically mentioned in this Contract. We may do one of these things and at the same time or later do another. Some of the things we may do are the following: a. ACGEIERATION: We can demand that you pay to us the entire unpaid balance owing on the Contract and all unpaid Finance Charges and other money due. You agree that you will pay this money to us in one single payment immediately upon receiving our demand. b. REPOSSESSION: We can repossess the Vehicle, unless prohibited by law. We can do this ourselves, have a qualified person do it for us, or have a government official (by replevin} do it for us. You agree that we can peaceably come on to your property to do this. We may take any other things found in the Vehicle, but wilt return these things to you if you ask. if you want these things back, you may reclaim them within thirty (30) days of our mailing you a Notice of Repossession. If you do not reclaim the things found in the Vehicle within that time, we may dispose of those things in the same manner as the motor vehicle. You agree that we may use your license plates in repossessing the Vehicle and taking it to a place for storage. c. VOLUNTARY DELIVERY: We can ask you to give us the Vehicle at a reasonably convenient place. You agree to give us the Vehicle if we ask. d. DELAY IN ENFORCEMENT: We can delay enforcing our rights under this Contract without losing any rights. 15. SOME THINGS YOU SHOULD KNOW IF WE REPOSSESS THE VEHICLE: If we repossess without using a government official {by replevin}: a. NOTICE: We will send you a rlntice of Repossession to your last address we know about. This Notice will tell you how to buy back (redeem) the Vehicle. You will NOT have the right to reinstate the Contract. This means you will have to pay the total balance on the Contract and other amounts due. You may not get the Vehicle back by paying delinquent installments. This Notice will tell you other information required by law. b. REDEMPTION: You have the right to buy back (redeem) the Vehicle within 15 days of the mailing of the Notice and at any later time before we sell the Vehicle. If you redeem the Vehicle, we wilt deliver the Vehicle to you at a place as provided by law, as soon as is reasonably possible, but in not more than ten (10) business days of our receipt of the funds required. If you do not redeem, you give up all claim io the Vehicle. c. SALE: If you don't redeem, we will sell the Vehicle. The money received at sale will be used to pay costs and expenses you owe, and thenro pay the amount you owe on the Contract. d. SURPLUS OR DEFICIENCY: If there is money left, we will pay it to the Buyer. If there is not enough money from the sale to pay what you owe, Buyer and Co-Signer agree to pay what is still owed to us. e. EXPENSES: You agree to pay the costs of repossessing, storing, repairing, preparing for sale and selling the Vehicle as may be allowed by law. These costs will only be due if: 1. Default exceeds fifteen (15} days at the time of repossession; 2. The amount of costs are actual, necessary and reasonable; and 3. We can prove the casts were paid. 16. HEIRS AND PERSONAL REPRESENTATIVES BOUND: After your death, this Contract shall be enforceable against vnur hp~r~ ~~~+ ~~~~^~°~ --~-____._. pruor ur loss wnn me insurer. a. OUR RIGHI' TO fllE PROOF OF LOSS: In the event of any loss or damage to the Vehicle, iYyou fail or'refuse to file a claim or proof of loss with the insurance company, you agree that,he Seller, Assignee, any subsequent assignee, or any authorized employee of any of them ("we") may file a proof of loss with the insurance company, in your name and acting as your agent, withi respect to the insured claim. You agree that you do not have the right to and will not revoke the power you have given us to file a proof of loss. You agree that we may exercise this power for our benefit and not for your benefit, except as provided in this Contract and by lavv. b. OUR RIGHT TO ENDORSE INSURANCE CHECKS: You agree that the Seller, Assignee, any subsequent assignee, or an authorized employee of any of them ("we") may endorse your name, acting as your agent, to any check, draft or other instrument we receive in payment of an insured loss or return of insurance premiums. You agree that you do not have the right to and will not revoke the power you have given us to make your endorsement. You agree that we may exercise this power for our benefit and not for your benefit, except as provided in this Contract and by law. c. USE OF PR(ICEEDS: We may apply any insurance proceeds we receive to repair or replace the Vehicle if, in our opinion, it is economically feasible and you are not then in default of this Contract. Otherwise, we will apply the insurance proceeds to reduce the unpaid balance due us. After the balance due us is paid, any excess will belong to you. ~onuacr. d. SURPLUS OR DEFICIENCY: If there is money left, we will pay it to the Buyer. If there is not enough money from the sale to pay what you owe, Buyer and Co-Signer agree to pay what is still owed to us. e. EXPENSES: You agree to pay the costs of repossessing, storing, repairing, preparing for sale and selling the Vehicle as may be allowed by law. These oosts will only be due if: 1. Default exceeds fifteen (15) days at the time of repossession; 2. The amount of costs are actual, necessary and reasonable; and 18. SEVERABILITY OF PROVISIONS: If for any reason any part of this Contract shall become illegal, void or unenforceable, that part shall not be a part of this Contract. 19. ASSIGNMENT BY BUYER: Buyer shall not assign this Contract. 20. THERE ARE NO WARRANTIES BY SELLER, EXPRESSED OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, UNLESS WE HAVE GIVEN YOU A SEPARATE WRITTEN WARRANTY OR UNLESS SELLER ENTERS INTO A SERVICE CONTRACT WITH BUYER WITHIN 90 DAYS FROM THE DATE OF THIS CONTRACT. Buyer's Guide Window Sticker. If the Car which is described on the face of this Contract has a Buyer's Guide Window Sticker required by the Federal Trade Commissiion Used Car Trade Regulation Rule, the following notice applies: The information you see on the window form for this Vehicle is part of this Contract. Information on the window form overrides any contrlry provisions in the contract of sale. NOTICE-ANY HOLDER Of THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES 08TAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER B'Y THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. NOTICE OF PROPOSED CREDIT INSURANCE The signer(s) of ttris Contract hereby take(s) notice that Group Credit Life Insurance coverage or Group Credit Accident and Disability {nsurance coverage will be applicable to this Contract if so marked on the front of this Contract, and each such type of coverage will be written by the insurance company named. This insurance, subject to acceptance by the insurer, covers only the person or persons signing the request for such insurance. The amount of charge is indicated for each type of Credit Insurance to be purchased. The term of insurance will commence as of the date the indebtedness is incurred and will expire on the original scheduled maturity date of the indebtedness. Subiect to acceptance by the insurer and within 30 days, there will be delivered to the insured debtor(s) a certificate of insurance more fully describing the insurance. In the event of prepayment of the indebtedness, a refund of insurance charges will be made when due. NOTICE: SEE OTHER SIDE FOR IMPORTANT INFORMATION. BANCONSUMER FORM PA 123-SLC (21041 0 ui oar x Application for: Credit Limit Requested: O Rate Shaver O Student O Classic 0 Goid O Platinum Increase Credit Limit To: Membtx's Last Name Rrst .~ n ~ ~ Mlddle~Rfal , Date of Birth / O ~P Member A~a:ou ~ u Social SQCU~rtly Nurgt~ar ~ ~ 1 ( C 2 c Mother's Maid N ` "f 1 b ~ V ~ ` p $tree! (~ ' S e r't11Q GhTr~,,, ~,,. ~ - i {-~.11 Statye, ` a Zip Code ~ 1!~ 1 1 How Lang at Present Addr~ N - ~~ Home Telephone Number Flnell Ad teas ~p /~(~ Are You:.B'U.S. gtlien O Resident Alien `^~1'1~1'Y~ 1 L • ~ O Non-Resldent Alien -" ~ ~ " Z ~ (~ 'f'p(~ , 1 i ~) ! W ~C ~ yy~ prs S~De Addre (H ~ ~n 5 years at preserd address) C C f r / ~' ~ ~~Z P~revroL~ AddrasaC 1 ' ~ • 1' S i•S ~~ t qO p~ ~p usness Te one umber B 6R. Employer Sheet Address .a ~- ~ tier- st;;S2''l0a `~'1ec~-(csbvr ~2 Zip Code I7GSS Date of ire ~ -~~j P+revbus FmPloYer a School Attended (H lass than 5 years at presets address) Ta a Number How L '. N.1 F-- , _CYIo ~ Income from Alimony, Child Support or Separate Maintenance Source of Otlrer Income 8 Amount do not cMae to have n cawMaea a s ~ ~ m 9 M W ~~ 5 + i t a t s i t or n e M Mortgage Holder or LarWbrd ` ' O Own O Board Mortgage a -t7Jr T j Nana, Telephone and Relag ip of Nearest lafive Not Living With You dhl n M O R I f ~~2 lu ~1 ~; I or y e ent Sh tr) .• , {~ ( ~ l~ ?~v-~3 ~ , . . Members Last Name Rrst Middle trddal Date Df Birth Member Account Number(s) Sodaf Security Number Moher's Maiden Name g Present Street Address 0. • • - City State Zip Code Flow Long at Present Address: `~ Hume Telepttene Number Emas7 Address Are You: O U.S. Cidzen O ResidentAden t ~ ) O O Non-Residerd Allan Q Previous Street Address (H less than 5 years at present addrtrss} City State Zip Code C How Long at W Previr>ta Address ~~, prasant ~p0yer Business Tetapiwne Numtxr E%L ` O Employer Street Address Ctty t , State ZID Code •Oate of Hire Pnevlaua Employer or School Attended Qf less than 5 years at present address} Telephoene Number How Long ~ ~ ) - J Gross Monthly Income Incase hom Alimony, Child Support or Separate Maintenance - 4Dzv~«us reed not oe revmkd a you m nor awoee» have n ar~atdered Source of Other-Income 6 Mount ~y,~ F,~ , as a OWs to reparYq Mb ouliDslion•1 Mnrtgage Hokter a Landlord O Own O Board Mortgage a Name, Telephone and Relationship of Neflrest Relative Nol Living nth You O Rent Mordhy Payment By signing t>e1ow, you ceNfy to ua that alI of the Information to the above applkxtbn Is ws and canpletfl and g' the of seasinp txedlt and that Sou have no other debts except those Identlged. You agree that rve may cordttct such investlgatfons of your credit end chareuer as we deem ry In act on your r fa cr You also agree to f>e txwnd by the Members tat VISA Card Holder Agreement PLEDGE OF Atx0U1JTS: You pledge to the aedl orbs t the edit bn ry t Members tat t1 that wand Federal Gedit Union (Members 1 sq to secure your Cr~it Card Agreement.! you 1st rq arxxwnt you agreeing t M be 1st - t lose special tau heahneni unde~a lederal law if ghzn security. You authorize us to apply any or ell funds an r dds f~rpQ~~Ill~~p"' Iz-, CO-APPLICANT'S SIGNATURE DATE VISA Credit Card Agreement and Disclosure Nouce'. See reversla side for important information regarding your rights to dispute billing errors. 1. Meaning of Worda. The lollowmg words have the following meanings in this Agreement and in the monthly billing statement sent hereunder. (a) 'Agreement" means the Visa Credit Card Agreement and Disclosure furnished by us. (b) 'we'", "us" and 'our" means Members 1st Federal Credit Union, Mecl>aNrsburg, PA. {c) `yai and 'your' means each person who signs the appliation far the Account. (d) 'Card" Weans any Visa Credit Card and any duplicates and renewals we issue to you or to an authorized user of your Account. (e) 'Account" means your Visa Credit Card Account with us. (Q "Line of Credit` means the sell-replenrshing line of credit we make available to your Account. (g) "Advartr~ means any credit extended on your Pxxoum far any purchases or Cash Advances. (h) 'Cash Advance" means (i) any cash or credit extended on your Account by us or by any other instiluhon that arxepts a Card, (ii) any withdrawal of cash made by using a Card and personal identifiation number ('PIN') at an automated teller machine 4"ATM") or other type of electronic terminal that provides access to fro Visa system, (iii) flue amouN of any Visa Comvettience Check paid by us, or (rv) the amount of any balances Transferred to your Account from another credit card ar account. (i) "Visa Convenierx;e Check" means arty check that directly accesses your Account The amount of any Visa Convenience Check paid by us is posted as a Cash Advance under your Account. 2. Haw To Uae This Account. Your Account may be used to purchase or lease goods and services ('purchases') from a merchant by presenting a Card and signing a sales transaction receipt for tfce amount of the purchase or by giving a Card Account number. Your Account may also be used to obtain Cash Advances: (a) By receiving cash or credit tram financial institutions that accept a VISA Credit Card; (b) By use al Visa Convenience Checks; (c) By making rash withdrawals with a Card at an ATM or other type of electronic terminal that provides access la the Visa system, a (d) By transferring to your Account a balance Irom another credit acct or account. 3. Reaponalhillty. You agree to pay all Advances, finance charges and other fees or charges charged to your Aceount arising from the use of a Cazd, a Visa Convenierue Ctveck or the Account M' you or amyane you authorise or permit to use your Account a Visa Convenience i;heck or a Card, even if you do not notity us that others are using your Account, a Visa Convenience Check or a Card. Your responsibility for charges made b`/ anyone you authorize or permit to use your Aceount a Visa Convenience Check or a Card wntinues until you notiry us in writing at 5000 Louise Drive, P. 0. Box 40, Mechanicsburg, PA 17055, and recover and destroy any Visa Convenience Check or Card in such person's possession. Your obligation to pay the Account balance continues regardless of the terms of uay agreement divorce decree, or other court judgment to which we are not a party. If more than one person signs the appliation for dte Account, you are each jointly and severally responsible for all charges on the Account. 4. Lfahllity for Unauthorized Use. You understand tfral your total liability to us shall riot exceed Filry Dollars (S50) resulting Irom the loss, theft or other unauthorized use of a Card that occurs prior to the time you glue nMice So us. Such Vimitation does not apply wtvtn a Visa Convenience Ctveck is used. 5. Lod Card Natillcation. It you believe a Cud or any Visa Convenience Check has been lost or stolen, you must immediately all us al (717) 795-6032 or 1(800)-283-2328 during normal business hours. After business hours (nights and weekends) or on hol- idays, last a stolen Cazds or VISA Convenience Ctvxks must be reported by ailing 1(800}325-3678. fi. Credit Line. If we approve your appliation, we will establish a Line of Credit for you and notity you of its amount when we issue a Card. This amount is your credit limit for the Account. You agree not to let Ilw Account balance exceed this approved credit limit. Fach payment you make on the Accowd will restore you credit limit by the amount of the paynamt thaf is applied to the principal balance owed on the Aaounl. You may request an increase in your credit limit which mull be approved by us We may reduce your credit limit or terminate This Agreement for azY reasons na prohibited by appliable law, with only such notice as is required by appliable law. You may also terminate this Agreement at any lime, but termination by either of us does not affect your obligahon to pay the Account balance. To terminate this Agreement, you must notiy us in writing at 5000 Louisa Drive, P. 0. Box 40, Mechanicsburg, PA 17055, and recover and surrender to us all Cards, and any issued WI unused Visa Convenience Checks. They remain our property. 7. Credit Information. You authorize us to investigate your credit standing when opening, renewing or reviewing your Account and you authorize us to disclose information regarding your Account to credit bureaus and other creditors who inquire of us about your credit standing. 8. Paymenh. VVe will mail you a billing statement every month showing your Previous Balarx:e comprised of purchases and Cash Advances, the curent transactions on your Account, your credit limit the available credit the New Balance, the Finance Charges for the billing cycle, and the Minimum Paymerd required. Fach month you must pay at least the Minimum Payment shown on your statement by the Payment Due Dale shown on the slaternent or no later than 25 days from the statement Closing Date, whichever is later. If your statement says your payment is "Now Due," your payment is due no later than 25 days ban the slalemenl Closirp Date. You may pay more frequently, pay mom than the Minimum Payment or pay the New Balance in lull. It you make extra or larger payments, you are still required to make al least Ste Minimum Payment each month your Account has a balance (other than a credit balance). The Minimum Payment will be either a) Two percent (2%) of your New Balance or $20, whichever is greater, plus arty portion of Ute Minimum Payment shown on prior statement(s) which remains unpaid, or d) your New Balance, i1 it is less than Twenty Dollars ($20). We also have tl>e right fo demand immediate payment of any amoum by which your New Balance is over your credit limit. We will apply your payments lust to any tees, ttlen to Finance Charges on both Cash Advances and purchases, ttren to previously billed Cash Advances, then to previously billed purchases, then to new Cash Advances and then to new purchases. We may accept checks marked "payment in full' or with words of similar elect without losing any of our rights to collect the full balance of your Account 9. Finance Charge. A. The current monthly Periodic Rate and corresponding Annual Percentage Rate are eel forth on the "Additional Disclosure- which is sent to you together with This Agreement B. Variable Rate: the Annual Percentage Rate will be determined by adding the margin to the index value. The Aamal Percentage Rate ran change on the first alendar day of tlv; lust billing cycle in each alendar quarter. The margin for Visa Platinum is 5.00% for both purchases and Cash Advances. The margin fa Visa bold is 5.00% for both purcfases and Cash Advarvxs. The margin for Visa Classic is 5.50% for both purchases and Cash Advances. The magin for Visa Classic Rate Shaver is 2.00% for bom purchases and Cash Advances, subject to a minimum Annual Perasrrtaga Rate of 9.9% fa the Visa Classic Rate Shaver program. The index is the highest Prime Rate published In the money rates section el the Wall Street Journal. The index will be measured as of the last business day of the immediately preceding alerldar quarter. Any increase in the Annual Percentage Rate may ause the amount of the minimum monthly payment to increase. Also, you may have fo pay more payments. The Annual PercenNage Rate will never exceed 21% or ttu maximum allowed by law, whicftever is less. The monthly Periodic Rate is equal to one-twellh (1112) of the Annual Percentage Rate. C. Method A -Average Daily Balanee (Including New Caah Advaneaa): A Finance Charge will be imposed on Cash Advances from the date made or from the first day of lw billing cycle in which the Cash Advance is pasted to your Account, whichever is later, and will continue to accrue until the date of paymem. The Finance Charge on Cash Advances for a billing cycle is computed by applying the monthly Periodic Rale to the average daily balance of Cash Advances, which is determined by dividirp the sum of the daily balances during the billing cycle by the number o' days in tfte cycle. Each dairy balance is delermirled by taking the beginning balance of Cash Advances on your Account each day, adding any raw Cash Advances, and subtracting any payments or credits That are applied to Cash Advances but excluding any unpaid Finance Charges. D. Method lu -Average Daily Balanee pncluding New Credit Purchases): A Finance Charge will be imposed on purchases only if you elect not to pay the entire New Balance shown on your monthly billing statement for the previous billing cycle on or before the Payment Due Date o1 that statement. N you elect not to pay the entire New i3alance shown on your previous monthly billing statement by the Payment Due Dale, a Finance Charge will be imposed on the unpaid average daily balance of purchases from the Previous statement Closing Date and on new purchases from the date of posting to your Account during ttw current billing cycle, and will continue to accrue until the Closing Date of the billing cycle preceding the dale on which the entire New Balance is paid in fuA or until the dale of payment i4 later than the Payment Due Date. The Finance Charge on purchases fa a billing cycle is computed try applying the monthly Periodic Rate to the average daily balance of purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. Each daily balance is determined by taking the beginning balance of purchases on your Account exh day, adding any new purchases, and subtracting any payments or credits that are applied to purchases, but excluding any unpaid Finance Charges. 10. / Default. You will be in default it you fail to make any minimum payment or other required payment by the date thu i1 is due. You will be in default it you break any promise you make under this Agreement. You will he in default if you die, file for bankruptcy, or ~-.J become insolvent that is, unable to pay your obligations when They become due. You will be in default if you make any false or misleading statements in any credit appliation or update of credit information. You will also be in default if something happens which we believe may substantially reduce your ability to repay what you owe. When you are in deault we an demand immediate payment of the entire anrount you ovve under this Agreement without giving you advance notice. II immediate payment is demanded you will continue to pay interest, at the appliable interest rates in effect under this Agreement, until what you owe has been repaid. If demand for immediate payment has been made, the shares and deposits given as security for payment under This Agreement an be applied towards what you owe. We an also lake appropriate action as authorized under the Uniform Commercial Cade to repossess any and all oollaleral pledged to secure repayment under this Agreement To the extent permitted by appliable law, you wdl also be required to p;ry our collection expenses, including court costs and reasonable attorneys' fees. We an also exercise any other rights given to us by law when you are in default. 11. Using the Card. You may use a Card, Card Account number and/or PIN to make transactions on your Account You will retain the copies of the transaction receipts furnished to you in order to verify your monthly billing statement. You agree that you will not use or permit anyone to use a Card or your Account for any transaction that is illegal under appliable federal, state or local law. You agree Thal illegal use of any financial service will be deemed an action of default and/or breach of contract and such a service and/or other related services may he terminated at our discretion. You further agree, should illegal use occur, to waive any right to sue us for such illegal use or any activity directly or indirectly related to it. Additionalry, you agree to indemnity and hold us harm- lessfrom any swts or other legal action or Iiabillry, directly or indirectly, resulting from such illegal use. We reserve the right to decline any Transactions that we consider fraudulent suspicious, or illegal and you ludher understand that we will not knowingly autho- rizecharges related to online gambling. Print Date 8/O6 36-00 CDN7INUED ON REVERSE 12. Retuma and Ad(ustments. Merchants and others who honor a Card may give cretld or returns or adjustmerds, and they will do so by sending us a credit Transaction receipt , which we will past to your Account. If your credits and payments exceed what you owe us, we will hold and apply This credit balance toward future Durchases and Cash Advances, or if it is one dollar or more, refund it on your written request or automatically after six months. 13. Using Visai Convenience Checks. You may use your Visa Convenience Checks, if available, as you would use a Card to make a Durchase or payment or to receive cash. Your Visa Convenience Checks directly access your Account. All Visa Convenience Checks paid by us are treated as Cash Advances hereunder and, except as otherwise indicated, are subject to all terms of this Agreement pertaining to Cash Advances and to the following additional terms. A. No Vita Convenience Check may be used to make a payment on your Account. B. Only Ilte person whose name appears on a Visa Convenience Check may use Them. C. Visa Convenience Clacks must be wriden in U.S. Dollas. Visa Convenience Checks may not be certified. D We may return a Visa Convenience Check unpaid if there is not enough available credd on your Account to pay il, it your Account is in default, or if a Card or any Visa Convenience Ctrecks have Deen reported lost or stolen. A $t0 tee will be charged for each returnaxi Visa Convenience Check. 14. Foreign Tnansaetiona. Purchases and Cash Advances made in foreign countries and foreign currencies will be billed in U.S. Dollars. Elfectlve April 2, 2006, the exchange rate for transactions in a foreign currency will he a rate selected by Visa from the range of rates available in wholesale currency markets 4a the applicable central processing date, which rate may vary from the rate Visa itself receives, or the government mandated rate in effect for the applicable central processing date, increased by one-percent. On foreign transactions you agree to pay all currency ezchange charges. 15. Merchant Olsputes. We are not responsible for the ~etusal of any merchant or financial institution to honor a Card or Visa Convenience Check. 16. Security Interest. To secure your Account, you grant us a purchase money security interest under the Uniform Commercial Code in any goods you purchase using the Account. If you default, we will have the right to recover any of these goods which have not been paid far through our application of your payments in the manner described in paragraph B. Pladgs al 8hars Aecouaus) • NOTE: Te wean goer Aeeonet, yon pladgo to as amd great a seenritY letersst In all )Dial acct Iadbidoal acooums Yon hm wiU MearBen tat Federal CredR Union new and b the tntaro, eseept aharoa h Iadlridnal [istirsrnsd Aceoeels sect acconeta when tfa pledge or transfer of which world CiYee tM loss Of s tasroatswpt or tors-dafpnd sfaWS. Yoo aathorks w to apply Me balanw la thas aeeoregp tr pay ag amonats dre under thh Agrasrnoet It yor shaald detaoN. 17. Fees and Other Charges. The following lees and other charges will be added to your Account as applicable: A. Annual Fee Visa Platinum ..............None Visa Gnld..... None Visa Classic.... None Visa Classic Rate Shaver...... None B. fate Payment Charges. It you hit to pay the minimum paymem on your Account within five (5) days of the Payment Due Date, a late payment charge of S30 will be added to your Account. C. Over-l.imlt Charge. II your Account balance exceeds your credit limit at any time during the statement period, an over-limit charge of $15 will be added to your Account. O. Ratumed Check Fee. IS a check or share draft used to make a payment on your Account is returned unpaid because of insuBicient funds or for any other reason, you will be charged a fee of $10 for each item returned. E. flaturried Statement Fee. You will be charged St for each monthly billing statement that is returned. f. Copies of Vlsa Transaction fleceipts and Statements. You wilt be charged $31a each copy you request of a receipt for any purchase, creditor Cash Advance or of a monthly billing statement (except in connection with the resolution of a killing error.) 18. Skip Payment Option. We may allow you, from time to lime, to aril a monthly payment. We will notify you as to arty month in which the option is available. If you omit a payment Finarxx' Charges will accrue on your balance in accordance with this Agreement. A skip payment does not extend the period within which you must pay the New Balarwe in order to completely avoid Finance Charges on purchases. A minimum payment will be due in the month follaving the month in which you skip your payment. 19. EtleuNiva Agreement, This Agreement is a contract which applies to all transactions on your Accarnt even !hough the receipts you sign or receive for purchases, credits, Cash Advances a other transactions may conlam different terms. We may amend this Agreement from time to time by sending you written notice. II required by applicable law, we will give you written notice bebre dre effective date of the amendment To the extent applicable taw permits, and as we indicate in our notice to you, amendments will apply to your existing Account balance as well as to future Transactions. This Agreement shall be construed in accordance with the applicable laws of the Commonwealth 01 Pennsylvania and applipble federal laws. YOUR BILLING RIGHTS -KEEP THIS FOR YOUR RECORDS This notice contains important information abort your rights and our responslDilities under the Fair Credit Bitting Act. NOTIFY US iN CASE OF ERRORS OR QUESTIONS ABOUT YOUR MONTHLY BILLING STATEMENT. If you think your monthly billing statement is wrong, or it you need more information about a transaction on you statement write us on a separate sleet of paper at the address fisted on your statement Write to us as soon as possible. We must hear from you no later than fill days alter vre send you the first statement on which the error or problem appeared. You can telephone us, but doing so will no! preserve your rights. In your letter, give us the following information: • Your name and Account number • The dollar amount of the suspected error. Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your monthly billing statement automatically Irom your Savings or Checking Account, you can stop the payment on any amount you think is wrong. To stop the payment your letter must reach us three (3) business days belorethe auto- matic payment is scheduled to occur. YOUR RIGHTS AND OUR RESPONSIBILITIES AFTER WE RECEIVE YOUR WRITTEN NOTICE. We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 9p days, we must either correct the error or explain why we believe the statement was correct. After we receive your letter, we cannot try to collect arry amount you question, or repot you as delinquent. We can continue to send statements Io you for the amount you question, including finance Charges, and we ran apply any unpaid amount against your credit limit. You do not have m lacy any questioned amount while we are investigating, but you are still obligated to pay the parts of your statement that are not in question II we find that we made a mistake on your statement, you will cwt have to pay any finance charges related to any questioned amount. li we didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the ques- lionetl amount. In either case we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does nor satisfy you and you mite to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a ques- tion about your statement And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been sedled between us when i! finally is. If we don't follow mere rules, we can't collect the first E50 of the questioned amount, even ii your statement was correct. SPECIAL RULE FOR CREDIT CARD PURCHASES. If you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on This right (a) Vou must have made the purchase in your home shte or, it not within ywr home stale, within 100 miles of your current mailing address, and (b) the purchase price must have been more Than $50. These limdations do not apply it we own or operate the merchant, or if we mailed you the advertisement for the property or services. EMBERS 15T CCU -Membership Application RVlembership Information Aaounl Na Lesl vsl ,Jt ~~ pea ' ~Q Address rest Prl; Ovmefs nrF,~s Ucan • S 1 fv'YL7 ae+t) ~1 s ay tste ome ne u r,a,. 'I l1 7aS Z Jdinl Owner's Last ) Frst ~ iddia inNiat 1K1 $$~tO~ ` t~ 1 'te t a Z 2 r1 Addre el~ K Jdnl o~vnef6 Dnvsrs Liu Me Isar Dal Exp tHb -1 / - ~ - -p cl ~ ~ °" '~o 1 ZZ 3 Ern ~• ee+n Q hc~-ma~ ~ - c Type of Account Regular Savings ~ Hap E Member ~ Supplemental Savings Money Management ~hecking ^ Generation Hap ^ Holiday Club ^ Vacation Club Overdraft Protection (Number in order ofpreference - 1, 2, 3 eic.j Savings Money Management _ Supplemental Savings ~ PSL ~ Key Loan Account Sfynature Select Electronic Service Check Card ATM Card ^ For Member ^For Member ^Call-24 ^ Electronic Statements PIN ^ For Joint Owner []For Joint Owner ~ Members t't Online ^ 8ili Payer Check Card and ATM Card Access Savings ~ Checking (POS) ~ Money Management ~ Supplemental Savings [~ PSL ~] Key Loan W-9 Certification of Taxpayer Identification Number (Social Security Number) ' Certification - Under penaltles of per!ury, I certify that: 1. The number shown on this form is my correct taxpayer identification number, and Taxpayer Identification Verification ey signing below, I certlty, in accordance with the IRS W-9 insVuctions and'vnder penalties of peryury, that the 5oaal Security number (SSN)IEmployee identification Number (EIN) shown is my correct identification number and that I am NOT, unless designated below, subject to backup withholding because, 1 have not been notified that I am subject to backup withholding as a result of a failure to report all dividends or interest, or because the IRS has notified me that i am no longer subject to backup withholdings. ^ I am a U.S, Citizen or Resident ^ 1 am subject to backup withholding ^ I am not a U.S. Citizen or Resident (Complete W-8 Form) ^ I am Exempt The Internal Revenue Service does not require your consent to any provisions of this document other than X the certifications required to avoid backup withholding. Pnmery Memou•spnawre tale lam a U.S. Citizen or Resident ^ tam subject to bactcup withholding ^ 1 am not a U.S. Citizen or Resident (Complete W-8 Form) ^ 1 am Exempt The Internal Revenue Service does not require your consent to any provisions of this document other than X ~ the certifications required to avoid backup withholding, JontOw+te s. Dote UWe have read and agree to the Member 1't Check Card, ATM Card, Cal!-24 and/or Members 1"Online terms and conditions, and the Electronic Funds Transfer (EFT) disclosure Statement. INVe agree that the information above is true and complete and authorize Members 1"io obtain any information necessary to this application. I hereby make application for membership in the Members 7" Fedora! Credit Union, and agree to conform to its bylaws and amendments thereof, copies of which have been made available to me, and to subscribe for at least one (t) share. Members 1" is hereby authorized to recognize any of the signatures subscribed hereto in the payment of funds or the transaction of any business for this account and all sub-accounts. I acknowledge receipt of the Membership Account Agreement which contains all relevant contractual obligations for this account and all sub- accounts. l also owte 'pt of the Regulation Disclosure Pamphlet. X ~a- ~z -dam ~ ~~~ ~ ery ;NemDSr IpnsNre Oeta AccwM Nwnper IIMiw the ornrt C ' Owns 5 nature Dote NEW-New Memb.rship _SU6-Sub account Change _AD d`d`re s hangs ~_OVR•Overdrafl ATM-ATM Cards _VD&Chedt Cards Date I ~ EXHIBIT "B" I1 OVVN-t~Chan9e _C24-Ca1124 Associate Initials 1L Manager Initials 17' FUNDS AVAILABILITY POLICY DISCLOSURE ..................11 MEMBERS 1ST FEDERAL CREDIT UNION MEMBERSHIP AND ACCOUNT AGREEMENT 1. General Policy This Agreement covers the rights and responsibilities concerning your Accounts 2. Reservation of Right to Hold and the rights and responsibilities of the Members 1st Federal Credit Union Holds on Other Funds 3 providing this agreement (Credit Union). In this Agreement, the words "you" . and "yours" mean anyone who signs an account card or account change card 4. Longer Delays May Apply (Account Card). The words "we," "us," and "our" mean the Credit Union. The Special Rules for New Accounts 5 word "account" means any one or more share or other accounts you have . with the Credit Union. 6. Deposits at Nonproprietary ATMs Your account types} and ownership features are designated on your Account Card. By signing an Account Card, each of you, jointly and severally, agree ELECTRONIC FUND TRANSFERS ~ to the terms and conditions in this Agreement and Account Card, the Funds A6REEME:NTAND DISCLOSURE .................................12 Availability Policy Disclosure, Truth-in-Savings Disclosure, Privacy Notice Disclosure, Electronic Funds Transfer Agreement, and any Account Receipt EFT Services 1 accompanying this Agreement, and the Credit Union's Bylaws and policies, . and any amendments to these documents from time to time which collectively 2. Transfer Limitations govern your Membership and Accounts. 3. Conditions of EFT Services 1. MEMBERSHIP ELIGIBILITY - To join the Credit Union you must meet the membership requirements including purchase and maintenance of the 4. Fees <ind Charges minimum required share(s) ("membership share") as set forth in the Credit 5. Member Liability Union's Bylaws. You authorize us to check your account, credit, and employment history, and obtain reportsfrom third parties, including credit reporting agencies, 6. Right to Receive Documentation to verify your eligibility for the accounts and services you request. 7. Account Information Disclosure 2. INDIVIDUAL ACCOUNTS-An individual account is an account owned by Business Days 8 one member (individual, corporation, partnership, trust or other organization) . qualified for credit union membership. If the account owner dies, the interest 9. Credit Union Liability for failure to Make Transfers passes, subject to applicable law, to the decedent's estate orbeneficiary/payee or trust beneficiary, subject to other provisions of this Agreement governing 10. Notices our protection for honoring transfer and withdrawal requests of an owner or 11. Billing Errors owner's agent prior to notice of an owner's death. Termination of EFT Services ~ 12 3. JOINT ACCOUNTS -An account owned by two or more persons is a joint . account. ~ 13. Governing Law a. Rights of Survivorship. Unless otherwise stated on the Account Card, a i 4. Enforcement joint account includes rights of survivorship. This means when one owner dies, all sums in the account will pass to the surviving owner(s). A surviving owner's interest is subject to the Credit Union's statutory lien for the deceased owner's obligations, and to any security interest or pledge granted by a deceased owner, even if a surviving owner did not consent to it. b. Control of Joint Accounts. Any owner is authorized and deemed to act for any other owner(s) and may instruct us regarding transactions and other account matters. Each owner guarantees the signature of any other owner(s}. Any owner may withdraw all funds, stop payment on items, transfer, or pledge to us all or any part of the shares without the consent of the other owner(s). We have no duty to notify any owner(s) about any transaction. We reserve the right to require written consent of all owners for any change to or termination of an account. If we receive written notice of a dispute between owners or inconsistent instructions from them, we may suspend or terminate the account and require a court order or written consent from all owners to act. c. Joint Account Owner Liability. If a deposited item in a joint account is returned unpaid, an account is overdrawn, or if we do not receive final payment on a transaction, the owners, jointly and severally, are liable to us for the amount of the returned item, overdraft, or unpaid amount and any charges, regardless of who initiated or benefited from the transaction. If any account owner is indebted to us, we may enforce our rights against any account of an owner or all funds in the joint account regardless of who contributed them. 27815 Custom F,RHIBIT "C" and its exact amount. You understand that the exact information is necessary for the Credit Union's computer to identify the draft. If you give us incorrect or incomplete information, we will not be responsible for failing to stop payment on the draft. If the stop payment order is not received within a reasonable time for us to act upon the order, we will not be liable to you or to any other party for payment of the draft. If we recredit your account after paying a draft over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the draft and to assist us in any legal action. 6. Duration at Order. You may make an oral stop payment order which will lapse within fourteen (14) calendar days unless confirmed in writing within that time. A written stop payment order is effective for six (6) months and may be renewed in writing from time to time. We do not have to notify you when a stop payment order expires. c. Liabiility. Fees for stop payment orders are set forth on the Rate and Fee Schedule. You may not stop payment on any certified check, cashier's check, teller's check, or any other check, draft, or payment guaranteed by us. Although payment of an item may be stopped, you may remain liable to any item holder, including us. You agree to indemnify and hold the Credit Union harmless from all costs, including attorney's fees, damages or claims related to our refusing payment of an item, including claims of any multiple party account owner, payee, or indorsee in failing to stop payment of an item as a result of incorrect information provided by you. 17. CHECKS PRESENTED FDR PAYMENT IN PERSON - We may refuse to accept ,any draft drawn on your account that is presented for payment in person. Such refusal shall not constitute a wrongful dishonor of the draft and we shall have no liability for refusing payment.lf we agree to pay a check that is presented for payment in person, we may require the presenter to pay a fee. Any applicable check cashing fees are stated in the fee schedule. 18. CAEDIT UNION LIABILITY- If we do not properly complete a transaction according ~to this Agreement, we will be liable for your losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if: (1) your account contains insufficient funds for the transaction; (2) circumstances beyond our control prevent the transaction; (3) your loss is caused by your or another financial institution's negligence; or (4) your account funds are subject to legal process or other claim. We will not be liable for consequential damages, except liability far wrongful dishonor. We exercise orriinary care if our actions or nonactions are consistent with applicable state law, federal reserve regulations and operating letters, clearinghouse rules, and general' banking practices followed in the area we serve. You grant us the right, in making payments of deposited funds, to rely exclusively on the form of the account and the terms of this Account Agreement. Any conflict between what you or our employees may say or write will be resolved by reference to y this Agreement. 19. PLEDGE/STATUTORY LIEN -Unless prohibited by law, you pledge and grant as security for all obligations you may have now or in the future, except obligations ;secured by your principal residence, all shares and dividends and ail deposits ;and interest, if any, in all accounts you have with us now and in the future. If you pledge a specific dollar amount in your account for a loan, we will freeze the funds in your account(s) to the extent of the outstanding balance of the loan or, if greater, the amount of the pledge if the loan is a revolving loan. Otherwise, funds in your pledged account(s) maybe withdrawn unless you are in default. Federal or state law, depending on whether we have a federal or state charter, gives us a lien on all shares and dividends and all deposits and interest, if any, in accounts you have with us now and in the future. Except as limited by state or federal law, the statutory lien gives us the right to apply the balance of all your accounts to any obligation on which you are in default. After you are in default, we may exercise our statutory lien rights without further notice to you. Your pledge and our statutory lien rights will allow us to apply the funds in your account to what you owe when you are in default, except as limited by state or iederai law. If we do not apply the funds in your account(s) to satisfy your obligation, we may place an administrative freeze on your account(s) in order to protect our statutory lien rights and may apply the funds in your account(s) to the amount you owe us at a later time. The statutory lien and your pledge does not apply to any Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security. By not enforcing our right to apply funds in your account to your obligations that are in default, we do not waive our right to enforce these rights at a later time. 20. LEGAL PROCESS - If any legal action is brought against your account, we may pay out funds according to the terms of the action or refuse any payout until the dispute is resolved. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law. Any legal process against your account is subject to our lien and security interest. 21. ACCOUNT INFORMATION -Upon request, we will give you the name and address of each agency from which we obtain a credit report regarding your account. We agree not to disclose account information to third parties except when: (1) it is necessary to complete a transaction; (2) the third party seeks to verify the existence or condition of your account in accordance with applicable law; (3) such disclosure complies with the law or a government agency or court order; or (4) you give us written permission. 22. NOTICES - a. Name or Address Changes. You are responsible for notifying us of any address or name change. The Credit Union is only required to attempt to communicate with you at the most recent address you have provided to us. We may require all name and address changes to be provided in writing. if we attempt to locate you, we may impose a service fee as set forth. in the Truth- in-Savings Disclosure. b. Notice of Amendments. Except as prohibited by applicable law, we may change the terms of this Agreement. We will notify you of any changes in terms, rates, or fees as required bylaw. We reserve the right to waive any term in this Agreement. Any such waiver shall not affect our right to future enforcement. c. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. Notice to any account owner is considered notice to all account owners. 23. TAXPAYER tDENT1FICATION NUMBERS AND BACKUP WITHHOLDING - Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet other requirements may result in backup withholding. If your account is subjectto backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest, and certain other payments. If you fail to provide your TIN, we may suspend opening your account. 24. STATEMENTS - a. Contents. If we provide a periodic statement for your account, you will receive a periodic statement of transactions and activity on your account during the statement period as required by applicable law. If a periodic statement is provided, you agree that only one statement is necessary for a joint account. For share draft or checking accounts, you understand and agree that your -J 27815 Custom Y~RIEIC TIQN I, the undersigned, acknowledge that I have the authority to execute this Verification ott behalf of Mert~bers 1 °' Federal Credit Union and certify the foregoing Bmcrgcrtcy Answer is based upon information which has been gathered by my counsel, The language contained therein is that of counsel and not my awn, 1 have read they docvmant and to the extent it is bawd upon information which I have given to rrly evunael, it is true and corroct to the best of my knowledge, information and belief' To the ext~t the content of the document is that of counsel, I have relied upon counsel in making this Verification. This st~-tement and Verification are made subject to the penaltic~ of 18 Pa. C.S. § 4904 relating to uns~NOrn falsification to authorities, which provides that if i knowingly make fa18e averments, I may be subject to criminal penalties. Members 1"Federal Credit Union Hy: ~ d~ CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent of MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, hereby certify that a copy of the foregoing Emergency Answer to Petition for Emergency Relief was served this date by depositing same in the Post Office at Carlisle, PA, First Class Mail, postage prepaid, addressed as follows: Scott B. Granger, Esquire Patricia R. Brown, Esquire SALZMANN HUGHES, P.C. 354 Alexander Spring Road Carlisle, PA 17015 MARTSON LAW OFFICES By ~ ~~ ~ ~ ~ ~c.c/ M .Price Ten ast High Street Carlisle, PA 17013 (717) 243-3341 Dated: /~Z /~3 ~ ~D~