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HomeMy WebLinkAbout04-1959MANUFACTURERS 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 : : DOCKETNO. Oq~' lq, ',. : 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, Plaimiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. : DOCKET NO. DONALD E. SLIKE and : ROSE MARIE SLIKE, husband and wife, : Defendants : AVISO USTED HA SIDO DEMANDADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las p~iginas siguientes, debe romar 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 Corte por eserito 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 CONOGE 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 DOCKETNO. 0~-- //q--5'''~::/ 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 447 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 300 North Earl Street in the Township of Shippensburg, Cumberland County, Pennsylvania and is more particularly described in the Mortgage (the "Real Property"). 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 anaount of Three Million Two Hundred Ninety-Six Thousand Two Hundred Fifty and 03/100 Dollars ($3,296,250.03) plus interest, attorneys' fees and other -2- costs. Such Judgment was entered in the Office of the Prothonotary of Cumberland County and docketed at No. 02-2538 Civil Term. 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 mad 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 $1,053,161.55 which is computed as follows: Principal Interest to 4-28-04 Late fees to 4-28-04 Real estate taxes Attorneys' fees and expenses to 4-28-04 $ 932,766.27 74,213.20 25,276.59 7,738.90 13,166.59 Total $1.053,161.55 Interest continues to accrue after April 28, 2004 on such indebtedness at the rate of 1.0% per annum above the Index defined in the Note (the "Index"). Attomeys' fees and expenses continue to accrue after April 28, 2004. -3- 11. Plaintiff is entitled 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 $1,053,161.55 plus all costs and attorneys' fees and expenses incurred after April 28, 2004, interest after April 28, 2004 at the rate of 1.0% t?er 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, Lloy(~/R. Persun, Esquire Mett/6, Evans & Woodside 349q 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 only and do no~ Iimit Ihe aoplicabi[dy of Ihis document ~o any oadicular loan or item. Borrower: Donald E. Slike ~ P.O. BOX 292 '~ Camp Hill, PA 17013 Lender: Farmers Trust Company Main Office One Weal High Street Principal Amount: $1,950,000.00 Date of Note: September 1, 1993 PROMISE TO PAY Donald E. Sitka and Rose Marie Slike ("Borrower"¢ promise lo pay to Farmers Trust Compapy ("Lender"J, or order, in lawful money of the United States of America. the principal amoum of One ,Million Nine Hundred Fif~ Thousand & o0/100 Dollars ($1,950,000.00}, ~ogeiher with inlerest on the unpaid principa balance from Beotember 1, 1993. until paid in full. The interest rate will not increase above 1%000% PAYMENT. Subject lo any payment changes resulting from changes in the Index, Borrower wil pay this loan in accordance with the following paymenl schedule: 12 consecutive monthly pdncipai ~nd interest payments of $19.709.07 each, beginning Oclober 1, 1993 wilh interest calculaled on the unpaid principal balances et an interest rate of 7.900% per annum; end 228 consecutive monthly arincipal and interest peymeme in the initial amount of $15,709.07 each, beginning October 1, 1994, with interest calcutatee on the urloaJd pdncipa balances 84 an interest tale of 1.000 percentage poinls over the index described below. Borrower's final payment will ge aug on SeBtember 1. 2013 and will be for ell principal and accruee interest not ye1 paid, together with any other unoaid amounts under this Nolo. interest on [his Note is computed on ~ 30/380 simple interest basis: that is. wan zee e×caetion of odd days in the flrsl paymem pedod, monthly interest is ca cu[aled by applyin9 the r~l;o of the annua4 inIerest rate over a year of 380 days, multiplied py the outsLsnding principal oa*ance multidlied Dy a monte of 30 days. imerest for the odd days is calculaled on the basis of the aClUal Days lo the next f¢ moron and a 360-day year. Borrower will pay Lender al Lenders a~oress shown eoove or aI sucr o~ne~ o~ace as Lender may OeSlgnale In wmmg. ursess otherwise agrees or recurred by aBOl~cadle law, payments wl~ De aDolied first to accrued undald -Ieresh men lo srmc~pal, ann any remamlng amount ~e any unpaid collection costs and late charges. VAR ABLE iNTEREST RATE. The interest rate on this Note is subiecl lc change #om time ~c time paseo on changes in an index which is the Farmers Trust Compen~ Base Rate (the "lndex~j. The Index is not necesaarib ~ne lowest ra~e charged ey Lender on its ~oans an~ is set b) Lender in ils sole discretion. If the Index.becomes unav~LLbLL dudng the term of this Iced, Lender may designaie a substi~ule index after r~otif~ng Borrower. Lender interest tale Change will not occur more often than each year. The Index currently is 6.500% per annum. The interest rate or rates to be apphec to the unpaid principal balance of this Note will be the rate or roles eat forth above in the "Payment" section, Nob/vithslanding any other orovzsion of this Note, the variabie interesl rate or rates provided for in this'Note will be subject to the fofl~wing maximum rate. NOTICE: oercemage points. Whenever increases occur in the interest rate, Lender, al its option, may do one or more of the ici[owing: (a) ncrease Borrower's payments to ensure Bon-owe?s loan wgl pay off by iLL deginal final matunty aa~e, [bi increase Borrower's paymenLs ~o cover accruing Interest (c) mcrease the number of Borrower's Da/lents. and (dj continue Borrower's pa} '~ents at lhe same smoeaI and increase Eon-dwarfs final payment. PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and other orepaid finance charges are earned fdhy as of the date of the Joan and will noI De suoieof to refund upon eady payment (whaler voluntac/er as a resull of default), except as otherwise reouired b/~aw, n any event, even upon full prepayment of this Note Borrower understands that Lender is entitled Id a minimum interest charge of $10.00. Other man Borrower's obliger on ~o pay any minimum m~eres~ cna~e. Borrower may pay withoul penalty all ar a ood~o¢ of Ihe amount owed earlier than it is 2ua. Eady payments will no~ unless agreed zo c/ Lender in writing relieve Borrower of Borrower's obligauon lo continue to make payments under payment schedule Rather, tee) will reduce the onnciaal beIance cue and may result in Borrower makin~g fewer paymems. DEFAULT. Borrower wiil be in defauil if an~ of the fofrowing hadeans: a} Borrower fails to make any payment when due. (bi Borrower breaks any ~greemant relaled to this Note or in any other agreemenz or Icad Borrower has with Lender (c; Borrower defaults under any ~ean. exlension of credit, Borrower's proper~) or Borrower's ability to repay mis Note or Deform Bo~rowefis obligations under th~s Note or any of the Related DocumenLs. (dj Any represenIatlon or statement made or fdmLLhed to Leader b~ Borrower or on Borrower's behalf is faLLe or misleadmg in any latona resoeot. (el creddors, or shy proceeding ~s commenced eiiher b/ Borrower or against Borrower under any BanKruptcy or in_solvency laws ('fi Any creditor idea to take any of Borrower's propert¢ on or in which Lender has a lien or seaudt~ interesL This includes a garn~snmem of any of Borrower's accounts with Leaner. (g) Anz of the evems described - [his default sechon occurs wdh respect ~e any guarantor of this Note. '~' Lender in gOOd faith deems fLse{f LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid pdecipai balance on this Note and all accrued unpaid interesl immediately 8ua, without holies, and then Borrower will pay that 8mounh Lender may hire or p~y someone else [o help collect this Note if Borrower does not pay. Borrowe¢ ~[so will pay Lender thai amount. This includes, subjeol 4o any limfLL under applicable law, Lender's atlorneys' fees and Lender's legs[ expenses whether or not there is a Iawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any aulometic stay or injunction), appeats, and any anticipated post-iudgmenl collection se~ces. If not prohibiled by applicab{e law, Borrower aisc will pay any coud costs, in addition to all other sums provided by law. If judgment is entered in connection with this No[e, interest will continue to accrue on this Note after judgment at the interesl rate appficable Io this Note al Ihe time judgment is enlered. This Nolo has been delivered Io Lender and accepted by Lender in the Commonwealth of Pennsylvania. If ther~ is a lawsuit, Borrower agrees upon Lender's request Io SUbmit to the jurisdiction of the courts of Cumber and Court y, the Commonwealth of Pennsylvania. This Nolo shall be governed by and construed in accordance with the laws of the Commonweallh of Pennsylvania. CONFESSION OF JUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney or the Prothonotary or Clerk of any Coud in the Commonweallh of Pennsylvania, or elsewhere, to appear at any lime for Borrower a~ter a delault under this Note, ~nd with or without complaint filed, es el any term, confess or enter judgment agains't Borrower for the entire principal balance of this Note and all accrued interest, together with costs of suit, and an a~torney's commission of ten percent (10%) of the unpaid principal balance and accrued interesl for collection, bdl in any event no[ lees than Five Hundred Oollars ($500); and for so doing, this Nolo or a copy of this Note red,ed by affidavi[ shall be sufficient warrant. The aulhority granted in this Nolo to confess judgment against Borrower shall not be.exhausted bv.a ~/exercise of thai auihority, but shall continue from time to time and al all EXMIBIT '~" PROMISSORY NOTE (Continued) Page 2 times until payment in full of atl amounls due under this Nots. RIGHT OF SETOFF. Borrower grants to Lsnder a contraclual possessory security tateresJ in, and hereby assigr~s, conveys, delivers, pledges, and transfsrs to Lender all Borrower's right, tiiJe sad interest in and to, Borrower's accounts with Lender (whether checking, s~vings, or sores other account), including without limitation all accounts hem jointly with someone else end all accounts Borrower may open in the future, excluding however atl IRA, Keogh, and trust accounts. 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 Modgage and an Assignment of All Rents daled September 1, 1993, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvsnia, a Modgage and an Assignment of All Rents dated September 1, 1993, to Lender on real properb/located in Cumberland County, Commonwealth of Pennsylvania, a Mortgage and an Assignment of All Rents dated September 1, 1993, [o Lender on real properly located in Franklin County, Commonwealth st Pennsylvania, and a Modgage and an Assignment of All Rents dated Seplember 1, 1993, to Lender on real propedy iocaled in Cumberland County, Commonwealth of Pennsylva. nia, all the terms and conditions of which are hereby incorporated and made a pad of this Note. GENERAL PROVISIONS. Lender may delay or forgo entorcing any of ils righ*s 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 change in the terms of this Note, and unless othe~vise expressry stated in writing, no party who signs Ibis Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. Ail such parties agree that Lender may reoew or exdend (repestedly and for any length of time) this loan, or release any pady or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other aclion deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan wilhout the consent of or notice to a. nyone other than the pady with whom the modification is made. The obligations under this Note are joinl and several If any podion of this Note is for any reason determined to be unenforceable, it will not affect the enforceabiJity of any other provisions of this Nolo. PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THiS NOTE, tNCLUDING 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'~*~ 'i~'~\'" Donald E. Slike Rose Marie Slike RECORDATION REQUESTED BY: Farmers Trust Company One West High Street Carlisle, PA 17013 WHEN RECORDED MAIL TO; Farmers Trust Company One West High Street Carlisle, PA 17013 RO$ERT ?.ZIEOLER RECORDER OF DEEDS CU~,tBERLANO COUNTY-PA SEND TAX NOTICES TO: Donald E. Slike and Rose Marie Sitka P.O, Box 292 Camp Hill, PA 17011 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED SEPTEMBER 1, 1993, between Donald E. Slike and Rose Marie Slike, Husband and Wife, whose address is P,O. Box 292, Camp Hill, PA 17011 (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, se~Is, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right; title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appudenant hereafter, and the reversions and remainders with respect thereto al~ water, water rights watercourses and dilch rights (including stock in utilitiec wilh ditch or irrigation dghts); and all other rights, royalties, and profits relating lo the real properly, including without limitation all minerals, oil, gas, geothermal and similar matters, ocated in Cumberland County, Commonwealth of Pennsylvania (the "Real Property"): See ;E×hibi t "A" Deed Book 34-V Page. 596 Township o£ ShiIPDensbur§ The Real Property or its address is commonly known as 300 North Earl Street, Shippensburg, PA 17257. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all leases of the Prepedy and all Rents from the Properly. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Peraona~ Properly and Rents. DEFINITIONS. The fo]towing words shaft have the following meanings when used in this Modgage. Terms not otherwise defined in this Mortgage shall have lhe meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money ef the United States of Amedca. Grantor. The word "Grantor" means Donald E. Slike and Rose Marie Sitka. The Grantor is the modgagor under this Modgage. Guarantor. The word "Guarantor" means and includes without limitation, each and all of the guarantors, sureties, and accommodation padies in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation all existing and fulure improvements, fixtures, buildings, structures, mobite homes affixed on the Real Properly, facilities, additions, replacements and other construction on the Rest Properly. Indebtedness. The word *Indebtedness" means all principal and interest payable under the Nolo and any amounts expended or sdvanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations ot Grantor under this Modgage, together with interest on such amounts ss provided in this Modgage. Lender. The word "Lender" means Farmers Trust Company, its successors and assigns. The Lender is the modgagse under this Modgage. Mortgage. The word "Modgage" means this Modgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Properly 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 all renewals of, extensions o[, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE, Personal Properly. The words "Personal Properly" mean all equipment, fixtures, and other adicles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Prepedy; together with all accessions, pads, and additions to, all replacements of, and all substitufians for, any of such properly; and together with all proceeds (including without limitation ell insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Properly and the Personal Properly. Real Property. The words "Real Property" mean the property, interests and rights described above in the "Grant of Modgoge" section. Related Documents. The words "Related Documents" mean and include without limitation all promissory noteS, credit agreements, loan .agreements, guaranties, secudty agreements, modgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebledness. Rents. The word "Rents" means ali present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the - Propedy. 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: MORTGAGE Page 2 (Continued) PAYMENT AND PERFORMANCE. Except as otherwise provided in this Modgage, Grantor shall pay to Lender all amounts secured by this Modgage as they become due, end shall striclly parterre all of Greeter's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grenter's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until in default, Grantor may remain in possession end contrel of and operate end manage the Property and collect the Rents from the Properly. Duty to Maintain. Grantor shall maintain the Property in tenantable condilion and promptly pedorm all repairs, replacements, and maintenance necessary to preserve its value. Ha;zardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in this Modgege, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 LJ.S.C. Section 9601, et seq. ("CERCLA"), the Supertund Amendments and Reauthorizafion Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transpodation 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 regulations 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 Ihe period of Grantor's ownership of lhe Properly, there has been no 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 lo 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 cf any hazardous waste or substance by any prior owners or occupants of the Property or (ii) any actual or threatened litigation or claims of any kind by Any person relating to such matters; and (c) Except as previously disclosed fo and acknowledged by Lender in wrilJng, (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of, or release any hazardous 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 Mortgage. 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 Greeter's due diligence in investigating the Property tor hazardous waste. Grenlor 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 three~ened 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 Mortgage, including the obligation to indemnify, shall survive the payment of the indebtedness and the salisfection and reconveyance of the lien of this Modgage and shatl not be affected by Lender's acquisition of any interest in the Properly, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Properly or any podion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the dght to remove, any timber, minerals (including oil and gas), soil, gravel or reck products without the pdor written consent of Lender. Removal of Improvements. Grantor sha~l not demolish or remove any Improvements from the Real Propedy without the pdor 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 Properly for purposes of Greeter's compliance with the terms and conditions of this Modgege. Compliance with Governmental Requirements. Grantor shall promptty 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 appeats, so long as Grantor has notified Lender in writing prior to doing so and se 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 shell do all other acts, in addition to those acts set fodh 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 ell sums secured by this upon the sale or transfer, without the Lender's prior written consent, of all or any pad of the Real Property, or any interest in the Real Properly. A "sale or transfer" means the conveyance of Real Properly or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by oulright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3.~ yeare, tease-option contract, or by sale, assignment, er 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 Property interest, it any Grantor is a corporalion, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, pednership 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. ~00~( ~_ ~ (~/ P,~CE 4 Payment. Grantor shell pay when due (end in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on eccouni of the Properly, 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 Properly free of all liens having priority over or equal to the interest of Lender under this Modgage, except for the lien of taxes and assessments net due, and except as otherwise 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 lo pay, so long aa Lender's interest in the Properly is not jeopardized. If a lien arises or is filed as a result of nonpaymenl, 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 the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficienl 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 thai could accrue as a result of a foreclosure or sale under the lien. In any contesl, Grantor shall defend itself and Lender and shall satisfy 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 fo Lender setisfeclory 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 fha taxes and assessments against the MORTGAGE Page 3 (Continued) Property. Nolice 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 lhe work, services, or materials and the cost exceeds $5,000.00. Gran~or wil~ upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a pad of lhis Mortgage. Maintenance of Insurance. Grantor shall procure and maintain policies et fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amounl 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 of 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 Property at any time become located in an area designated by Ihe Director of the Federa~ Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, to the extent such insurance is required by Lender and is or becomes available, for the term of the loan and for the full unpaid principal balance et 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 Property if the estimated cost of repair or replacement exceeds $500.00. Lender may make proof of loss if Grantor taits 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 shall, upon s~fistactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default 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 Property shall be used first to pay any amount owing to Lender under this Mortgage, then to prepay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebledness. If Lender holds any proceeds after payment in ful~ 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 Property covered by this Mortgage at any trustee's sale or other sale held under the provisions cf this Mortgage, or at any foreclosure sale of such Property. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; rd) the properly insured, the then current replacement value of such property, and the manner of determining that value; and re) the expiration date of the policy. Grantor shal~, upon request of Lender, have an independent 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 al the rate charged under the Note from the date incurred or paid by Lender lo the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payabie cn demand, (b) be added to the balanca et the Note and be apportioned among and be payable with any installment payments to become due during either ri) the term of Any applicable insurance policy or (ii) the remaining term of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Mortgage atso will secure payment of these amounts. The rights provided for in this paragraph ehall be in addition to any other rights or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default ed 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 report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Granlo~' 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'e fifie or the interest of Lender under this Mortgage, Grantor shaft defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Properly complies with all existing applicable laws, ordinances, and regulations of governmental authodtiec. CONDEMNATION. The following provisions relating to condemnation of the Prepedy are a pad of this Mortgage. 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 al~ or any portion of the net proceeds of the award be applied to the Indebtedness or the repair o¢ restoration of the Property. The net proceeds of the Award shall mean the award after payment of all actual ceefs, expenses, and atlorneys' fees incurred by Lender in connection with the condernnation~ Proceedings. if any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain lhe award. Grantor may be lhe nominal pady in such proceeding, but Lender shall be entitled to participate in lhe 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 permil such padicipafion. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a pad of this Modgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shaft execute such documents in addition to this Modgage and take whatever olher action is requested by Lender to perlect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for ali taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constilule taxes to which this section applies: (a) a specific tax upon this type et Mortgage or upon all or any pad of the Indebtedness secured by this Mortgage; (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on _t_his type of 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 ct 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 satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a pad of this Modgage. Security Agreement. This instrument shall constitute a secudty agreement to the extent any cf the Prepedy constitutes fixtures or other personal property, and Lender shall have all ct the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whalever olher action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Modgage in the real property records, Lender may, at any time and without fudher authorization from Grantor, file executed counterparts, copies or reproductions of this Modgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing lhis secudty interest. Upon default, Granlor shall assemble the Personal Property 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) and Lender (secured party), from which information concerning the security interest granted by this Mortgage may be obtained {each es 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. At any time, and from time to time, upon request of Lender, Grantor will make, execule and deliver, or wilt cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, raffled, 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, secudty agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable Jn order to effectuate, complete, 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 Mortgage 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-Fact. 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 Grantors expense. For such purposes, Granter hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, 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 ail 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 Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default") under this Mortgage: Default on Indebtedness. Failure of Granter to make any payment when due on the Indebtedness. Default on Other Payments. Failure of Grani0r within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. 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 Modgage, the Note or the Related Documents is, or at the time made or furnished was, false in any material respect. Insolvency. The insolvency of Grantor, appointment of a receiver for any pad of Grantor's property, any assignment for the benefit ct creditors, the commencement cf any proceeding under any bankruptcy or insolvency laws by or against Grantor, or the dissolution or termination of Grantor's existence as a going business (if Grantor ia 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 of Default under this Mortgage. Foreclosure, Forfeiture, otc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, reposseasion 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 foreleiture 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 ct 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. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender, al its option, may exemise 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 dght at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part ct the Peraonal 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 nolice to Grantor, to take possession of the Properly and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Legd~e~',~ ~lo~t~.~al~ai~j~t~e I~::~t:it~dness. In fudherance of Ibis right, Lender bUUfiJ. J-t~& r~b~ MORTGAGE Page 5 (Continued) may require any tenant or other user of the Property to make payments of rani or use fees directly to Lender, If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact 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 tot 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 right to have a receiver appointed to take possession of all or any pad of the Pregedy, with the power to protect and preserve the Properly, to operate the Properly preceding foreclosure or sale, and to collect the Rents from the Properly and apply the proceeds, over and above the cost of 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 no/ 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's interest in ali or any pad of the Prepedy. Possession of the Property. For the purpose of procuring possession of the Property, Grantor hereby authorizes and empowers any attorney of any ccud 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 court an amicable action in ejectment for possession of the Properly and [o appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, for ~he recovery by Lender of possession of the Property, without any stay of execution, for which this Mortgage, or a copy of this Mortgage verified by affidavit, shall be a sufficient warrant; and thereupon a writ of possession may be issued forthwith, without any prior writ or proceeding whatsoever. Nonjudicial Sate. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Properly or the Real Property by nonjudicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebledeess due fo Lender after application of all amounts received from the exercise of the rights provided in [his section. Tenancy at Sufferance. If Grantor remains in possession of the Pregedy after the Properly is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of 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 alt other rights and remedies provided in this Mortgage or the Note 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 pad of the Properly 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 Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Modgage shall not constitute a waiver of or prejudice the pady's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender ~o pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Modgage after failure of Grantor to perform shall not affect Lender's dght to declare a default and exercise its remedies under this Modgage. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the coud 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 thai in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its dghts shall become a pad 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 lega~ 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), appeals and any anticipaled post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, and title insurance, to the extent permitted by applicable law. Grantor also will pay any coud costs, in addition to all other sums provided by [aw. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notJee under this Mortgage shall be in wdling and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposiled in the United States mail first class, registered mail, postage prepaid, directed to the addresses shown near the beginning of this Modgege. Any pady may change its address for notices under this Mortgage by giving formal wdlten nolice to the other parties, specifying that the purpose of the notice is to change the party's address, All copies ct 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 Modgage. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. MISCELLANEOUS PROVISIONS. The tollowing miscellaneous provisions are a part of this Modgege: ~O0~-~-~J~- ~ ~'SJ~ Amendments. This Mortgage, together with any Related Documents, constitutes Ihs entire understanding and agreement of the parties as to the matters set forth in this Morlgage. No alteration of or amendment to this Mortgage shall be effective unless given in wdting and signed by the pady o~- parties sought to be charged or bound by the alteration or amendment. Annual Reports. ft the Property is used for purposes other than Srantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Properly 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 end accepted by Lender in the Commoi'lwealth of Pennsylvania. This Mortgage shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of lhis Mortgage. Merger. There shall be no merger ct the interest or estate created by lhis Modgege 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 eeveral, and all references to Grantor shall mean each and every Grantor. This means that each of the persons signing below is respoesible for all obligations in this Mortgage. Severabitity. If a court of competent jurisdiction linds any provision of 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. If feasible, any such offending provision shall be deemed fo be modified to be within the limits of enforceability or validity; however, if lhe offending provision cannot be so modified, if shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Assigns. Subiect to the limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon and inure to the benefil of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference fo this Modgage and the indebtedness by way of forbearance or extension wilhout releasing Grantor from the obligations of this Modgage or liability under the Indebtedness. Time Is of the Essence. Time is of the essence in the performance of this Modgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the pad of Lender in exercising any right shall operate as a waiver of such right or any other dght. A waiver by any pady 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 cf dealing between Lender and Grantor, shall constitute a waiver ct any of Lender's rights or any of Grantor's obligations ss to any future transactions. Whenever consent by Lender is required in this Modgage, 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 Mortgage and by this reference is made a pad of this Modgage just as if all the provisions, terms and conditions cf the Exhibit had been fully set forth in this Mortgage. ~C-~-An-exhibit7~t~i~ed-~s-e,~taehed-t~-~his-M~f`tga~-~nd-by-this~,efe~ence-i~-made`a~-pad-~f~his-M~Hgag~ .just..as-_if-alFt he~p,~ovisiensr-te{~ms~a nd conditions of thc Exhi,bit had boon fully sot fodh in lhio Modgage. C=--¢¢r'~xhibit, tiffed 'c," is-a~t,~d fo this Modgage and by this refarer~c~ is ,,,~d~ ~ pad uf this Ma, ty,cge~;~,~s-if-aflRhe-pro~'isions74erms--~md c o n ditio n~o Pt h e-Ex hfbif-had-been-f ut,~Y~seF for~h-in--[tfi s-M ertg age- D~-~`~-exhi~t~t~s1~`t~ched-t~-th~s-M~age-andd~y~s-~eferer~e-is-n-rad~-psr~-~f-~his~d~a~e~f-a~i~te~ com~ of the ~×h~b~t-t'm~d-bee. fu',=y saf4oH.l't4r~i~. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: Donald E. Sitka ISLAI.) Signed, acknQwledged and delivered in the presence of: Witness X Witness CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, Farmers Trust Company, herein is as fotlows: One West High Street, Carlisle, PA 17013 Attorney OrAgenl fOrM~tgagee 'INDIVIDUAL ACKNOWLEDGMENT COUNTY O ) On this day before me, the undersigned Nota~ Public, personally appeared Donald E, Sfike and Ro~ Marie Slike, to me known to be the individuals described in and who executed the Mortgage, and acknowledged that they sit and purposes therein mentioned. _ / / G,ven y en , ¢s,a, se:,,h / // day Notary Publicr4h and for the State of / M~ LASER PRO. Reg. U.S. P~L & T.M. Off.. Vet. 3.1 ~ (C) IE ~3 CF~ ProSe~ ~.~ ~ ~g~ ~, ....... CT~flia L. Oarr. N~t~r7 ~.fl bxp~res May ]8. 1996, free and voluntary act and deed, for the uses EXHIBIT A S L9::::.2,.'0.C0 U: ~ t References in the' shaded area are for Lender's use only and do not limit Ihe applicability of this documen~ to any particular loan or item. Borrower: Donald E. Sitka Lender: Farmers Trust Company Rose Marie alike Main Office P.O. Box 292 One West High Street Camp Hill, PA 17013 Carlisle, PA 17013 This Exhibit A Is attached to and by this 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 behveen Farmers Trust Company and Donald E. Sitka and Rose Marie SIike. Al! that certain .~Township Cumberland tract or parcel of land and premises, situate, lying and being in the of Shippensbur9 i?~ the County of and Commonwealth of Pcn~sylvanio. more particularly-described as follows: BEGINNING at a point in the right-of-way of Middle Spring Road, at line of property now or formerly Of Margaret J. Kelley; thence through Middle Spring Road, S. 65°18'12" E., a distance of 185.05 feet to a point in North Earl Street; thence ~hrough North Earl Street, S. 07°50'24." E., a ~istance of 99.00 feet to a point in Ngrth Earl Street; :thence.continuing through North Earl Street, buy .a curve to the~right,~having a radius of:954.93 feetl a' % ' ' · lineal'distance 0f~37~.29 feet to apoint in the center of the abandoned right-of-way of the Baltimore and Cumberland Valley Extension Company (also known as the Western Maryland Railroad); thence along the center line of the abandoned right-of-way aforesaid, along line of land now or formerlyof Hoffman Mills, Inc., N~'72'44'02" W~, a distance of 270.43 f'eet to a poin-~'~ ............... linc'of land now or formerly'of Margaret J~'Kelley; thence along land now or formerly of Margaret J, Kelley,.N. 26"17'04" E., a distance of 145.38 feet to a point, the place of BEGINNING. SAID-DESCRIPTI'ON is in accordance with ~ survey of Act One Consultants for Donald E. Slike and Rose Marie Slike, his wife, dated February 3, 1990. This survey is attached to a Boundary Location Agreement between the Slikes and Hoffman Mills, Inc., dated March 20, 1990, and recorded ~ Z/~ ]gqO in the Recorder of Deeds Office of Cumberland County, Pennsylvania, in Miscellaneous Book 3~ · ~a~r~~ ' This property is col±atera~ ~u ~,= entire amount of the mort§a§e alonE with other mort§a§es executed at the same time, but title insurance will be issued limited to the fair market value of the property based property of $250,0p0.00. THIS EXHIBIT A IS EXECUTED ON SEPTEMBER 1, 1.993. BORROWER: Donald E. $~ke on the appraised value of the Rose Marie alike LENDER: Farmers T~r u s t~m p ~n y//~ o'6 1161 P c[ 453 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 tree 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. ~. ~an ~'-"~ gan Dated: April 2'~, 2004 396729vl 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. 04-1959 Civil Term PRAECIPE TO THE PROTHONOTARY: On behalf of Plaintiff, we hereby discontinue this mortgage foreclosure action. L16~d 1~. Persun, Esqui I.D. ~. 10139 Metre, Evans & Woodside 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Plaintiff Date: September 7, 2004 401899vl