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HomeMy WebLinkAbout04-1957MANUFACTURERS AND TRADERS TRUST COMPANY, Plaintiff DONALD E. SLIKE and ROSE MARIE SLIKE, husband and wife, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOC TNO. NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or for any other claim or relief requested by the Plaintiff. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE OR KNOW A LAWYER, THEN YOU SHOULD GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 Telephone No. (717) 249~3166 MANUFACTURERS AND TRADERS TRUST COMPANY, Plaintiff DONALD E. SLIKE and ROSE MARIE SLIKE, husband and wife, Defendants 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. AVISO USTED HA SIDO DEMANDADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las pfiginas siguientes, debe tomar acci6n dentro de viente (20) dias a partir de la fecha en que recibi6 demanda y el aviso. Usted debe presentar comparecencia esrita en persona o por abogado y presentar en la Cone pot escrito sus defensas o sus objeciones a las demandas en su contra. Se le avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin mas aviso o notificaci6n por cualquier dinero reclamado en la demanda o p or cualquier otra queja o compensaci6n reclamados por el Demandante. USTED PUEDE PERDER DINERO O PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA USTED. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI USTED NO TIENE O NO CONOCE UN ABOGADO, VAYA O LLAME A LA OFICINA EN LA DIRECCION ESCRITA ABA JO PARA AVERIGUAR DONDE PUEDE OBTENER ASISTENCIA LEGAL. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 Telephone No. (717) 249-3166 MANUFACTURERS AND TRADERS TRUST COMPANY, Plaintiff DONALD E. SLIKE and ROSE MARIE SLIKE, husband and wife, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 0/4` I~::] COMPLAINT IN MORTGAGE FORECLOSURE AND NOW, this 28th day of April, 2004, Plaintiff Manufacturers & Traders Trust Company by its attorneys files the following Complaint in Mortgage Foreclosure: 1. Plaintiff is Manufacturers & Traders Trust Company, a New York banking corporation with offices at 1331 Twelfth Avenue, Altoona, Pennsylvania 16601. Plaintiff is successor by merger to Farmers Trust Company and also maintains offices at One West High Street, Carlisle, Pennsylvania 17013. 2. Defendants Donald E. Slike and Rose Marie Slike are adult individuals who are husband and wife residing at 100 East Lauer Lane, Camp Hill, Pennsylvania 17011 (Slikes). 3. By their Promissory Note dated September 1, 1993 in the original principal amount of One Million Nine Hundred Fifty Thousand Dollars ($1,950,000.00), Slikes are indebted to Plaintiff. A true and correct copy of the Promissory Note is attached hereto as Exhibit "A" and made a part hereof (the "Note"). 4. Slikes' payment and performance of their obligations under the Note are secured by, among other things, a first lien and security interest created by a Mortgage dated September 1, 1993 between Slikes as Grantor and Plaintiff as Lender and recorded on September 1, 1993 in the Cumberland County Recorder of Deeds Office in Mortgage Book 1161, Pages 426 et. seq. A true and correct copy of the Mortgage is attached hereto as Exhibit "B" and made a part hereof (the "Mortgage"). 5. The real property subject to the Mortgage is located at and known as 805 and 807 Fifth Street in the Borough of New Cumberland, Cumberland County, Pennsylvania and is more particularly described in the Mortgage (the "Real Property"). Plaintiff released from the lien of the Mortgage 809 Fifth Street, in the Borough of New Cumberland, Cumberland County, Pennsylvania. 6. Slikes are the real owners of the Real Property. 7. Slikes failed to pay when due all real estate taxes assessed against the Real Property for 2001, 2002 and 2003. 8. On May 23, 2002, Fulton Bank caused a Judgment to be entered by confession against the Slikes in the amount of Three Million Two Hundred Ninety-Six Thousand -2- Two Hundred Fifty and 03/100 Dollars ($3,296,250.03) plus interest, attorneys' fees and other costs. Such Judgment was entered in the Office of the Prothonotary of Cumberland County and docketed at No. 02-2538 Civil Tenn. The Judgment was not stricken, opened or satisfied. 9. Slikes' failure to pay when due the real estate taxes assessed against the Real Property for 2001, 2002 and 2003 and the entry of the Judgment in favor of Fulton Bank constitute defaults under the Note and the Mortgage. Plaintiff in good faith deems itself insecure. 10. The indebtedness evidenced by the Note and secured by the Mortgage is due and payable immediately in full. The amount of such indebtedness is $1,049,301.47 which is computed as follows: Principal $ 932,766.27 Interest to 4-28-04 74,213.20 Late fees to 4-28-04 25,276.59 Real estate taxes 3,878.82 Attorneys' fees and expenses to 4-28-04 13.166.59 Total $1,049,301.47 Interest continues to accrue after April 28, 2004 on such indebtedness at the rate of 1.0% ~er annum above the Index defined in the Note (the "Index"). Attorneys' fees and expenses continue to accrue after April 28, 2004. -3- 11. Plaimiff is emitled to Judgment in Mortgage Foreclosure. WHEREFORE, Plaintiff respectfully requests that your Honorable Court enter Judgment in Mortgage Foreclosure in its favor and against Slikes in the amount of $1,049,301.47 plus all costs and attorneys' fees and expenses incurred after April 28, 2004, interest after April 28, 2004 at the rate of 1.0% per annum above the Index and all other charges and expenses provided in the Note and the Mortgage and authorizing the sale of the Real Property by the Sheriff of Cumberland County on such Judgment in Mortgage Foreclosure. Respectfully submitted, LloysYR. Persun, Esquire Meffe, Evans & Woodside 3401 N. Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Telephone: (717) 232-5000 Attorneys for Plaintiff PROMISSORY NOTE References in the shaded area are for Lender's use on v and do not hmit the apphcabiht) of ]his document to any oadiouiar loan or item. Borrower: Donald E. Slike ,.. /R~se Marie Sitka ~-~.. // P.O. Box 292 Camp Hill. PA 17013 Lender: Farmers Trust Company Main Office One West High Street Carlisle, PA 17013 Principal Amount: $1,950,000.00 Date of Note: September 1, 1993 =ROMISE TO PAY. Donatd E. Slike and Rose Marie Slike (' Borrower"l promise to pa~, to Farmers Trust Company ("Lender"), or order, in lawful money of the United Slates of America. the principal amount of One Million Nine Hundred Fift~ Thousand & 00/100 Dollars ($1,950,000.00), together with interes! on the unpaid princiea oalance from September 1, 1993, until paid in tull. The interest rate will not in crease above 11.090%. =AYMENT Sub)eot lo any payment changes resulting from changes in the Index Borrower will pay this loan In accordance with the following Daymenf schedule: 12 consecutive monthy pdncioa[ and interest payments of $19.709.07 each, beginning October l, 1993. with interest caiculaled on the unpaid principal batsnces at an interest rale of 7.900% per annum; and 228 consecutive monthly principal and ~nteres~ pa) meets in the initial amount of $15,709.07 each, beginning October 1, 1994, with interest calculated on the un~aid principal balances at an Interest rate of %000 percentage points over the index described below. Borrower's final payment will ce cue on September 1 2013 and will be for ali principal eno accrued interest not ye! paid, together with any other ur 3aid amounts under this Note. interest on this Note is comouteb on a 30/380 simple interest basis: that ts with the exception of odd da./s in the firsi payment period, monthly interest is calcula so oy applying the ratio of the annum interest tale over a year of 360 da~ mulfiohed by the outstanding Dnncipal oalance, multiolied by a martin of 30 days. interest for the odd days ~s calculated on the bests of the actual days to the next fu moron and a 36B-day year. Borrower w: ;ay Lenoe~ at Lender's aooress ShOWn above or aI such o~ner p~ace es Lancer may des~g ;a~e in wdting, un,ess ~therwise agreed or required by ae m~oau~e ~aw, payments will be aDoiied first to Accrued urDald interesl teen lo ~dncioar. and any remaining emounl ~o any unoa~d collecbon costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note is subject ~o change tram time ia time based on changes in an index which is the Farmers Trusl Company Base Rote (the "index"). The mae× is not necessad ¢ the lowest rate chargeo Dy LE 3oer on its loans and is set by Lender in its sole d~screuo¢ If the Index.cocaines unava~tabie dudng tee lerm of this ~oer Lancer may designate a substitute index After notif}4ng Borrower. Lender will tell Borrower the current Inoex raze UDOn Borrower's reouest. Borrower uRberslanes l~at Lender may make toans based on other rates As well The interest ~ats cnsr~ge will not occur more often than each year. The Index currently is 6.500% per annum. ~ghe ihterest ~ate or fates to be applied to the unpaid pdncipaI balance of this Note will be the rate or rates set forth above in the "Payment" s~ction. Notwithstanding any other provision of this Noze, the Variable interest rate or rates provided for in this"Note will be subject to the togewlng maximum rate. NOT DE: unoer no circumstances will the interest rste on this Note be more than the lesser al 11.000% per annum or the maxtmum rate allowed 'b~ applicable {AW_ NoNviths~anblng tee above prowslons, the maximum increase or decrease in the interest rate At and one time on this Ioan will not exceed 2.000 percentage ooints Whenever increases occur in the interest raze, Lender. al Its option, may co one or more of tee following: (a} increase Borrower's payments to ensure Borrower's ~oan wg] pay off by its cng esl final maturity date. lb} increase Borrower's payments to cover accruing interest, (c} ncreese tee number of Borrower's payments, and (d) continua Borrower's payments At the same amount and increase Borrower's fine payment. PREPAYMENT; MINIMUM iNTEREST CHARGE. Borrower agrees mai ail loan fees and other oreoaid finance charges are earned fulb as of the date of the loan and will not ce suoject to refund upon eany payment (whether volun~ar~ or es a result of default), exceot as otnercas~ required by ~aw. m any event, even u~on fu prepafment of this Note Borrower understands that Lender is entitled to a minimum interest charge of $10.00. Other than Borrower's obligation to pay ant minimum interest charge, Borrower may pay Mthoul penalty al~ or a portion of Ina Amount owed earlier than it is due. paymem schedule. Rather, toe~ will reduce the ohnciBa~ o~ance due and may "esugt in Borrower making fewer payments DEFAULT. Borrower will be :~ default if any of the following naoDens: La Borrower fails to make any paymem ween cue. (b~ Borrower breaks Any Borrower s oropeny or Borrower's ability to repot th~s Note or oedorm Borrower's obiigAhons under th~s Note or any of the Related Documems. d) Any creditors or any prooeedin9 is commenced either by Borrower or agamsi Borrower under any BanKruptcy or in. solvency laws. (f Any creditor tries to take any of Borrower'.~ properw on or Iff WhlC~ Lender ~aS a lien or secunr, intaresL This incluoes a garnishment of any of Borrower's accounts with Lancer. (g) Any of the events described in this defauit section occurs with respect to any guarantor of this Note. '~' Lancer ~n Bood faith deems itself LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid pdncipa balance on this Note and ali accrued unpaid interest immediately 8ua, without notice, and then Borrower wi~[ pay thai amount. Lender may hire or pay someone else to help collect this Note if Borrower does eot pay. Borrower also will pay Lender thai student. This includes, subjecl to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not lhere is E lawsuit, including attorneys' fees and tegal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and Any anticipated posl-judgment cotleclion services. If not prohibited by applicable law, Borrower also wilt pay any coud costs, in addihon to ali other sums provided by law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment At the interest rate applicable Io this Note at ~he lime iudgmenl is entered. This Note has been delivered to Lender and accepted by Lender in Ihe Commonwealth of Pennsylvania. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of Ihs couds of Cumberlar~d Counly, the Commonwealth of Pennsylvania. This Note shall be governed by and construed in CONFESSION OF dUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney or the Prothonotary or Clerk of any Coud in the Commonwealth of Pennsylvania, or elsewhere, to appear al any time for Borrower after a dataulf under this Note, and with or without complaint filed, as of any term, confess or enter judgment against Borrower for the entire principal balance of this Note and all accrued interest, together with costs of suit, and an attorney's commission of ten percent (10%) of the unpaid principal balance and accrued interest for collection, buI in any event not less than Five Hundred Dollars ($500); and for so doing, this Note or a copy of this Note ved~ed by affidavit shall be sufficient warrant. The aulhorRy granted in this Nolo to co,tess judgment against Borrower shall not be exhausted bv.a0v exerese o that authority, but shall continue from lime to time and al all '~IBIT WA" PROMISSORY NOTE (Continued) Page 2 times until payment in full of all amounts due under this Note. RIGHT OF SETOFF. Borrower grants to Lender a contractual possessory secudty interest in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrower's right, title and interesl in and to, Borrower's accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly with someone else and all accounts Borrower may open in the future, excluding however all IRA, Keogh, and trust accounls. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts. COLLATERAL. This Note is secured by, in addition to any other collateral, a Modgsge and an Assignment of All Rents deled September 1, 1993, to Lender on real properly located in Cumberland County, Commonwealth of PennsyNa, nia, a Modgege and an Assignment of All Rents dated September 1, 1993, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania, a Mortgage and an Assignment of Ail Rents dated September 1, 1993, to Lender on real properly located in Franklin County, Commonwealth of Pennsylvania, and a Modgage and an Assignment of All Rents dated September 1, 1993, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania, all the terms and conditions of which 8re hereby incorporated and made a pad of this Note. GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any cha, nge in the terms of this Note, and unless otherwise expressly stated in wdting, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such petites agree that Lender may renew or exlend (repeatedly and for any length of time) this loan, or retease any pady or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the cellarers. I; and take any other action deemed necessary by Lender without the consent of or notice to anyone. Ali such parties atso agree that Lender may modify this loan without ~he consent of or notice to anyone other than the pady with whom the modification is made. The obligations under this Note are joint and several If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDEBSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. .-/,~ BORROWER~ , .~ ~'~\.*' Donald E. alike Rose Marie alike RECORDA'ClON REQUESTED BY: Farmers Trust Company One West High Street Carlisle, PA 17013 WHEN RECORDED MAIL TO: Farmers Trus! Company One West High Street Carlisle, PA 17013 ROBERT P. ZIEGLER RECORDER OF DEEDS CUtdBERLAND COUNTY-PA '93 SEP, 1 ?Il 12 31 SEND TAX NOTICES TO: Donald E. Sfike and ROSe Marie Sgke P.O. Box 292 Camp Hill, PA 17013 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED SEPTEMBER 1, 1993, between Donald E. Sitka and Rose Marie alike, Husband and Wife, whose address is P.O. Box 292, Camp Hill, PA 17013 (referred to below as "Grantor"); and Farmers Trust Company, whose address is One West High Street, Carlisle, PA 17013 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, Sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real properly, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights}; and all other rights, royalties, and profits relating lo the real properly, including without limitation all minerals, oil; gas, geothermal and similar matters, located in Cumberland County, Commonwealth of Pennsylvania (the "Real Property"): See Exhibit "A" Deed Book 51- [ Page 745 Township New 6umberlaztd Borough The Real Property or its address is commonly known as 805,807,809, Fifth Street, New Cumberland, PA 17070. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage. Terms not otherwise deigned in this Modgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Granlor. The word "Grantor" means Donald E. alike and Rose Marie Sitka. The Grantor is the mortgagor under this Modgage. Guarantor. The word "Guarantor" means and includes without limitation, each and all of the guarantors, sureties, and accommodation parties in connection with the indebtedness. Improvements. The word "improvements" means and includes without limitation all existing and future improvements, fixtures, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Modgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means Farmers Trust Company, its successors and assigns. The Lender is the modgagee under this Modgage. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Property and Rents. Note. The word "Note" means the promissory note or credit agreement dated September 1, 1993, in the original principal amount of $1,950,000.00 from Grantor to Lender, together with ell renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIAE~LE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and ell substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the property, interests and rights described above in the "Giant ct Mortgage" section. Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, guaranties, securily agreements, mortgages, deeds of trust, and ail other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebledness. Rents. The word "Rents" means all present and future rentsrreven e , 'p oma, issue , Ifies, profits, and other benefits derived from the Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: EXHIBIT "B" MORTGAGE Page 2 (Continued) PAYMENT AND PERFORMANCE. Except as otherwise provided in this Modgage, Grantor shall pay to Lender ail amounts secured by this Modgage as they become due, and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the followin9 provisions: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents from the Property, Duty to Maintain. Grantor shall maintain the Properly in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in this Mortgage, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 49 U.S.C. Section 6901, et seq., or other applicable state or Federal laws, rules, or regulalions adopted pursuant to any of the foregoing. The terms "hazardous waste" and "hazardous substance" shall also include, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property, there has been ne use, generation, manufacture, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, under, or about the Property; (b) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (i) any use, generation, manufacture, storage, treatment, disposal, release, or threatened release of any hazardous waste or substance by any prior owners or occupants of lhe Properly or (ii) any actual or thraalened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other authorized user et the Properly shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, or about the Property and (ii) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation those laws, regulations, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Modgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the pad of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Properly for hazardous waste. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Modgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring pdor to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Modgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Properly, whether by foreclosure er otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Propedy or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other pady the right to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without the prior written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and its agents and representatives may enter upon the Real Properly at all reasonable times to attend to Lender's interests and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Modgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Properly, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall de all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at its option, declare immediately due and payable all sums secured by this upon the sale or transfer, without the Lender's prior written consent, of all or any part of the Real Properly, or any interest in the Real Property. A "sale or transtar" means the conveyance of Real Property or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of Real Properly interest. If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, padnership interests or limited liability company interests, as the case may be, of Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited'by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Modgage. Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Properly. Grantor shall maintain the Property Irae of all liens having pdodty over or equal to the interest of Lender under this Mortgage, except for the lien of taxes and assessments not due, and except as other~vise provided in the following paragraph. Right TO Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Prooerty is riel jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure lhe discharge of lhe lien, er if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satish/any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender safisfaotory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the MORTGAGE Page 3 (Continued) Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asseded on account of the work, services, or materials and the cost exceeds $5,000.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost ol such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Properly are a pad of this Modgage. Maintenance of Insurance. Grantor shall procure and maintain policies ot fire insurance with standard extended coverage endorsements on a replacemenl basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum ot ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Should the Real Properly at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, to the extenl such insurance is required by Lender and is or becomes available, for the term of the loan and for the full unpaid principal balance of the loan, or the maximum limit of coverage that is available, whichever is less. Application of Proceeds. GrantOr shall promptly notify Lender of any loss or damage to the Progedy if the estimated cost of repair or replacement exceeds $500.00. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at its election, apply the proceeds to the reduction of the indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed improvements in a manner satisfactory to Lender. Lender shaH, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoralion if Grantor is not in default hereunder. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Properly shall be used first to pay any amount owing to Lender under this Mortgage, then to prepay accrued inlerest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. if Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor. Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Properly covered by this Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage, or at any foreclosure sale of such Properly. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a repod on each existing policy of insurance showing: (a) the name of the insurer; (b) the risks insured; (c) the amount ot the policy; (d) the property insured, the then current replacement value of such properly, and the manner of determining that value; and (e) the expiration date of the policy. Grantor shall, upon request of Lender, have an indebendent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Mortgage, or if any action or proceeding is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender expends in so doing will bear interest at /he rate charged under ihe Note from ihe date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, a[ Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (i) the term of any applicable insurance policy or (ii) the remaining term of the Note, or (c) be treated as a balloon paymenl which will be due and payable at the Note's maturity. This Modgage also wilt secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other righ[s or any remedies to which Lender may be entitled on account of the default. Any such action by L~nder shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage. Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title repod, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's rifle or the interest of Lender under this Modgage, Grantor shall delend the action at Grantor's expense. Grantor may be the nominal pady in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Modgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be apptied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. Proceedings, If any proceeding in condemnation is flied, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled lo participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part ol this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Properly. Grantor shall reimburse Lender for all taxes, as described below, together wilh all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. [~ 0[}K '~ ~-~- PAG~ 42 ~ Taxes. The following shall constitule taxes to which this section applies: (a) a specific tax upon this type of Mortgage or upon all or any pad of the Indebtedness secured by this Modgage; (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type ot Mortgage; (c) a tax on this type o[ Mortgage chargeable against the Lender or the holder of the Note; and MORTGAGE Page 4 (Continued) (d) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Modgage, this event shall have the same effect as an Event of Default (as defined below), and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfeclory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage. Security Agreement. This instrument shall constitute a security agreement to the extent any of the Properly constitutes fixtures or other personal property, and Lender shall have all of the rights of a secured pady under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. in addition to recording Ibis Modgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterpads, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall assemble the Personal Propedy in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender. Addresses. The mailing addresses of Grantor (debtor) end Lender (secured party), from which information concerning the secudty interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code), are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-in-fact are a pad of this Mortgage. Further Assurances. Al any time, and from time to time, upon request ol Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, rattled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such modgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of fudher assurance, cedificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complele, perfect, continue, or preserve (a) the obligations of Grantor under the Note, this Modgage, and the Related Documents, and (b) the liens and security interests created by this Modgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorney-in-Pact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense, For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, execuling, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Modgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Modgage and suitable slatements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default") under this Modgage: Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness, Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other paymen~ necessary to prevent tiling of or to effect discharge of any lien. Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Modgage, the Note or in any of the Related Documents. Breaches. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Mortgage, the Note or the Related Documents is, or at the time made or furnished was, false in any mateda[ respect. Insolvency. The insolvency of Grantor, appointment of a receiver for any pad of Grantor's property, any assignment for the benefit of creditors, the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor, or the dissolution or termination ct Grantor's existence as a going business (if Grantor is a business). Except to the extent prohibited by federal law or Pennsylvania law, the death of Grantor (if Grantor is an individual) also shall constitute an Event ol Default under this Mortgage. Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender, Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or such Guarantor dies or becomes incompetent. Insecurity. Lender in good faith deems itself insecure. 1. -6J- PACE RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Subject to applicable law, Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to alt or any pad of the Personal Property, Lender shall have all the rights and remedies of a secured pady under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property end collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender MORTGAGE Page 5 (Continued) may require any lenant er other user of the Property to make payments of rent er use tees directly to Lender. If the Rents are collected by Lender, then Grantor irrevecabiy designates Lender as Grantor's attorney-in-tact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the dght lo have a receiver appointed to lake possession ct all or any pad of the Property, with the power to protect and preserve [he Properly, to operate the Properly preceding foreclosure or sale, and to collect the Rents from the Propedy and apply the proceeds, over and above the cost ct the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor'a interest in all or any pad of the Property. Possession of the Property. For the purpose of procuring possession of the Property, Grantor hereby authorizes and empowers any attorney of any coud of record in the Commonwealth of Pennsylvania or elsewhere, as attorney for Lender and all persons claiming under or through Lender, to sign an agreement for entering in any competent coud an amicable action in ejectment for possession of the Property and to appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, tot the recovery by Lender of possession of the Properly, without any stay of execution, for which this Modgage, or a copy of this Modgage verified by affidavit, shall be a sufficient warrant; and thereupon a writ ct possession may be issued forthwith, without any prior writ or proceeding whatsoever. Nonjudicial Sale. If permitted by appFicabfe law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by noniudicial sale. Deficiency Judgment. Lender may obtain a iudgmenl for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Propedy after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default ct Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Properly, or (b) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Nole or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the properly marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Prepedy together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any podion of the Properly. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Properly or of the time after which any private sale or other intended disposition of the Personal Properly is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Eleclion of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to pedorm an obligation of Grantor under this Mortgage after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Modgage. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any ct the terms of this Modgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees, at trial and on any appeal. Whether or not any coud action is involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall became a part of the Indebtedness payable on demand and shall bear interest from the date of expenditure until repaid at the Note rate. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (including effods to modify or vacate any automatic stay or injunction), appeats and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' repods, and appraisal fees, and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Modgage shall be in writing and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, registered mail, postage prepaid, directed to the addresses shown near the beginning of this Mortgage. Any pady may change its address for notices under this Modgage by giving formal written notice to the other parties, specifying that the purpose of the notice is 1o change the pady's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: ~0~{ 1161 e~c[ 43 O Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the mat[ers set forth tn this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Prepedy is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement ct net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Applicable Law. This Mortgage has been delivered to Lender and accepled by Lender in the Commonwealth of Pennsylvania. This Mortgage shall be governed by and construed in accordance with the taws of the Commonwealth of Pennsylvania, Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are riel to be used to interpret or define the provisions of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Multiple Parties. All obligations of Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Grantor. This means that each of the persons signing be~ow is responsible for all obligations in this Mortgage. Severability. It a coud ct competent jurisdiction finds any provision el this Mortgage to be invalid or unenforceable as to any person or MORTGAGE Page 6 (Continued) circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. I[ feasible, any such offending provision shall be deemed to be modified to be within the limits ct enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations stated in this Modgage on transfer of Grantor's interest, this Modgage shall be binding upon and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Properly becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Modgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Modgage or liability under the Indebtedness. Time ts of the Essence. Time is of the essence in the performance of this Mortgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Modgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on lhe part ol Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. NO prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any cf Lender's rights or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required. EXHIBIT A. An exhibit, titled "Exhibit A," is attached to this Modgage and by this reference is made a pad of this Mortgage just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Mortgage. O. A,,~rxhfb~7, titted~'c,"ds ullu~;h~fd-~his-f~udgag~ arid by Ihi~ ~ufe~uHcu 6 .,~d~ ,~ p~d ul Ihi~ Mu, lg¢,~ just ~ ii ,~11 th~ pro~is~on~, lerms--a~d C;~-exhibih-.title~c¢'i~t~hed~to-thi~ortgag~nd-by-th[~reference i~mad~H-of-th~Mortgage ~ust-as if-a~l-the~evisio~sTte~m~ EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS, GRAHTOR:~:~ ~ S~AE Ro~ Marie Slike Signed, ackn~,wlec[ged and delivered in the presence of: Witness X Witness CERTIFICATE OF RESIDENCE I hereby cedify, that the precise address of the mortgagee, Farmers Trust Company, herein is as follows: One West High Street, Carlisle, PA 17013 STATE OF , ./(,-~/]~(_..~ ~ ) COUNTY OF -- ) On this day before me, the undersigned Notary Public, personally appeared Donald E. Sli,ke and Rose Marie Slike, to me known to be the individuals described in and who executed the Mortgage, and acknowledged that they signed the iv~Sdgage as their free and voluntary act and deed, for the uses and purposes therein ~ /~ ~ ~ ~ Given / da, o, .1, By Resi~ling at Notary My commission expires LASER PRO, Re All rights reserved. IPA-G03 SLIKE2.L N C3.0VL] 4,31 EXHIBIT A S ...... (.,,~ i -~'~ 0'.,-01-,,.1,~ , : }-~i References in fhe shaded area are for Lender's use only and do not limit the applicability of this document to any padicular loan or ilem. Borrower: Donald E. Slike Lender: Rose Marie Slike P.O. BOX 292 Camp Hill, PA 17013 Farmers Trust Company Main Office One West High Street Carlisle, PA 17013 This Exhibit A is attached to and by lhls reference Is made a part of each Deed of Trust or Mortgage, dated September 1, 1993, and executed In connection with a loan or other financial accommodations between Farmers Trust Company and Donald E. Slike and Rose Marie Stike. ALL: THOSE CERTAIN tracts or parcels of land situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: No. 1 BEGINNING at a point at the intersection of the northerly line of Fifth Street with the westerly line of Poplar Avenue; thence along Fifth Street in a westerly direction two hundred ninety-four and seventy-five hundredths (294..75) feet to a point on the easterly line of Hillside Road; thence along HilLside Road in a northerly direction one hundred (100) feet to a point; thence in an easterly direction along a line parallel with' Fifth Street two hundred ninety-four and seventy-five hundredths (294.75) feet to a point on the westerly line of Poplar Avenue; thence.along Poplar Avenue in a southerly direction one hundred'[100)~ feet to a point; the place of BEGINNING. BEING part of Lot No. 18 on the Plan of Lots known as Plan No. 2 of Rosemont, sai~-Plan, being recorded in the Cumberland County Recorder's Office in Plan Book 1,' Page~96.. EXCEPTING from~said desc~ip'tion lots 1 and 2 of the subdivision plan of New Cumberland .Homes recorded in Plan Book 41, Page 50, being known as premises 801 and 80'3 Fifth Street, New Cumberland, Pennsylvania respectively.- ' .~ ~ -, ~ HAVING THEREON ERECTED single family residences known as and numbered 805, 807 and 809 Fifth Street~ New Cumberland, Pennsylvania. THIS EXHIBIT A IS EXECUTED ON SEPTEMBER 1, 1993. BO~...~QWER: , Donald E. Slike LENDER: Rose Marie Slike Y:AU /.. ~ I~OOK PAOE 43Z VERIFICATION I, Keith P. Mangan, as an Assistant Vice President of Manufacturers & Traders Trust Company, have read the foregoing Complaint in Mortgage Foreclosure and verify that the facts set forth therein are true and correct according to the best of my knowledge, information and belief and that as such Assistant Vice President I am authorized to execute this Verification on behalf of the bank. I understand that any false statement made herein is subject to the penalties of 18 Pa. C.S.A. §4904, relating to unswom falsification to authorities. Dated: April ~.8,2004 396727vl MANUFACTURERS AND TRADERS TRUST COMPANY, Plaintiff DONALD E. SLIKE and ROSE MARIE SLIKE, husband and wife, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO.. 04-1957 Civil Term PRAECIPE TO THE PROTHONOTARY: On behalf of Plaintiff, we hereby discontinue this mortgage foreclosure action. Date: September 7, 2004 LloygVR. Pers~m, Esq~-e I.,D_ .~o~ 10139 Mette, Evans & Woodside 3401 No~ Front Street P.O. Box 5950 H~sb~g, PA 17110-0950 (717) 232-5000 A~omeys for Plaimiff 401897vl