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09-0997
02/18/2009 14:02 FAA 717 730 7366 R?AGER & ADLER 10002/002 INTEGRITY BANK., Plaintiff V. CONSTANTINOS 3. MALLIOS, Defendant IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 0j- qq? 04 YO -Taros 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'oy the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE: THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR 110 FEE. Cumberland County Bar Association \ 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) AVISO USTED HA SIDO DFAANDADO/A EN CORTE. Si usted desea defenderse de ]as demandas que se presentan mas adeiante en las siguientes paginas, debe tomar acci6n dentro de los pr6ximos veinte (20) dias despuds de a notificaci6n de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando er la Code por escrito sus defensas de, y objections a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accidn como se describe anteriormente, el caso puede proceder sin usted y un falio par cualquier suma de dinero reciamada en la demanda o cualquier otra reclamaci6n o remedio solicitado por el demandante puede ser dictado en contra suya por la Code sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME 0 VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEOE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE DUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS CUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAIO COSTO A PERSONAS DUE CUALIFICAN. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: J12ietrzakAReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a ReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION CONSTANTINOS J. MALLIOS, :NO. 09 - gtri a-Nk-V_-rM Defendant COMPLAINT IN MORTGAGE FORECLOSURE 1. Plaintiff, Integrity Bank (hereinafter "Integrity") is a Pennsylvania Financial Institution with a mailing address of 3345 Camp Hill, Pennsylvania 17011. 2. Defendant Constantinos J. Mallios (hereinafter "Mallios"), an adult individual, with a mailing address of 715 Sandbank Road, Mount Holly Springs, Pennsylvania 17065. Background of the Agreements between the Parties 3. Incident to a construction financing loan extended by Integrity to Mallios and Frederick C. Miller (hereinafter "Miller") for construction of a commercial building, in the principal amount of $172,500.00, Mallios and Miller executed a Promissory Note (hereinafter the "Note") dated October 20, 2006. A true and correct copy of the Note is attached hereto as Exhibit "A". 4. The Note is secured by, among other items, a Purchase Money Open-End Construction Mortgage dated October 20, 2006 (hereinafter the "Mortgage"), on certain real property located at 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania (hereinafter the "Property"). The Mortgage was recorded in the Cumberland County Recorder of Deeds Office on October 23, 2006, in Mortgage Book 1970, Page 1594. A true and correct copy of the Mortgage is attached hereto as Exhibit "B". The Property is more fully described in the deed and legal description, a true and correct copy of which is attached hereto as Exhibit "C". 6. The Parties extended the Note's maturity date to October 20, 2008 pursuant to two Change in Terms Agreements dated October 20, 2007 and April 20, 2008. True and correct copies of the October 20, 2007 and April 20, 2008 Change in Terms Agreements are attached hereto as Exhibits "D" and "E" respectively. 7. The Parties further extended the Note's maturity date to October 20, 2009 pursuant to the Note Modification Agreement dated September 22, 2008, entered into between Mallios and Integrity. The Parties further agreed to release Miller from the obligations of the Note, without in any way affecting the first lien of the Mortgage. A true and correct copy of the Note Modification Agreement is attached hereto as Exhibit "I"'. Under the terms of the Note Modification Agreement, Mallios agreed to continue to make monthly installments of interest on the unpaid principal balance during the extended term of the Note, at the same rate of interest and upon the same terms as set forth in the Note. 9. Under the terms of the Note, upon Mallios' default for failure to pay any monthly payment due, the interest rate on the principal increases by 5.0%. 10. Mallios has defaulted under the terms of the Note by failing to complete construction of the commercial building for which the loan was given. 11. The principal amount due under the Note is $172,500.00. The total amount due under the Note, including principal and accrued, unpaid interest as of January 31, 2009 is 2 $173,605.65. Interest on the principal continues to accrue at an amount of $20.36 per day after January 31, 2009. 12. Integrity is not required to comply with the notice requirements of Act VI because the Mallios is not a residential mortgage debtor. 13. Integrity is not required to comply with the notice requirements of Act XCI because the Mortgage at issue was not given to secure advances on the unpaid purchase price of the real estate. Further, Mallios does not occupy the premises for which the mortgage was given, nor is the mortgaged property Mallios' principal residence. 14. Integrity has taken all actions or complied with all conditions precedent to the filing of this action. WHEREFORE, Plaintiff, Integrity Bank demands judgment against Defendant, Constantinos J. Mallios in the amount of 173,605.65, plus interest, which continues to accrue in the amount of $20.36 per day after January 31, 2009, together with interest from the date of judgment and costs and such other relief as the Court deems appropriate. Respectfully submitted, REAGER & ADLER, P.C. Date: February 17, 2009 1 J H. PiefrzMc, Esquire Attorney I.D. No. 79538 Thomas O. Williams, Esquire Attorney I.D. No. 67987 Attorneys for Plaintiff, Integrity Bank e I .4 t sf ? 1 PROMISSORY NOTE Principal Amount: $172,500.00 Initial Rate: 9.250% Date of Note: October 20, 2006 PROMISE TO PAY. CONSTANTINOS J. Mallios and FREDERICK C. MILLER ("Borrower") jointly and severally promise to pay to Integrity Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of One Hundred Seventy-two Thousand Five Hundred & 001100 Dollars ($172,500.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on October 20, 2007. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning November 20, 2006, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Interest on this Note is computed on a 3651365 simple interest basis; that is, by applying the ratio of the annual interest rate over the number of days in a year, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the New York Prime Rate of Interest. The New York Prime Rate of interest shall.mean the interest rate per annum announced from time to time in various business journals, such as The Wall Street Journal, as the "Prime Rate of Interest". The New York Prime Rate of Interest is an index, and loans of the Bank may be established at, above or below the index. The New York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shall float at New York Prime (the "Index"). The index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 8.250% per annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 9.250% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Integrity Bank, 3314 Market Street Camp Hill, PA 17011. INTEREST RESERVES. Borrower authorizes Lender to place $11,000.00 of the Principal Amount as an interest reserve, which is an estimate of the interest due on the Note ("Interest Reserve"). All interest payments shall be paid from the Interest Reserve. Lender may automatically deduct accrued unpaid interest from the Interest Reserve. Interest will accrue, as described in this Note, on amounts deducted from the Interest Reserve. In the event the interest due under this Note exceeds the interest Reserve, Borrower will pay accrued unpaid interest when due according to the terms of this Note. Upon maturity, Lender will not advance or disburse the remaining Interest Reserve, if any, to Borrower. The principal due upon maturity will not include any remaining Interest Reserve. LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Borrower: CONSTANTINOS J. Ma1Nos (SSN: 191-42-8336) Lender: Integrity Bank FREDERICK C. MILLER (SSN: 196-48-2678) Camp Hill Office 715 Sandbank Road 3345 Market Street Mount Holly Springs, PA 17065 Camp Hill, PA 17011 (717) 920-4900 PROMISSORY NOTE Loan No: 1500162950 (Continued) Page 2 Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to Its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by a valid, title-insured first mortgage lien on real estate and all improvements located at 3516 Ritner Highway, Newville, Cumberland County, PA 17241. This Note is also secured by the corporate guarantee of FCM Builders, Inc. LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances. Advances under this Note may be requested orally by Borrower or as provided in this paragraph. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following person currently is authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of his or her authority: FREDERICK C. MILLER. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (a) release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action.4-ned necessary by Lender without the consent of c- -otice to anyone. All such parties also agree that Lender may modify this loan withod (consent of or notice to anyone other than the with whom the modification is made. The oblic?tions under this Note are joint and s?._;ral. If any portion of this Note is for any reason _rmined to be unenforceable, it will not affect Loan No: 1500162950 X PROMISSORY NOTE (Continued) the enforceability of any other provisions of this Note. Page 3 CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY. HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: :.:.. ! ) CONST TINOS J. Mallios LENDER INTEGRITY BANK , X t tjj!j.f1..-N. McAdo , Loan . fficer Iseal) REDERIC . MILLER LASER PRO LWHWV, Vv. 0.33.00.004 COW. HwiWd Finn SOW M& Ina. 1897, 1006. AN RI80b RwW-L - PA R:LLEROINWCF1%LPLW30.FC TR•1689 ( , , E,l,',LJ 8 J Parcel Identification Number: P. ZIE'LE OF DEL .10 Cc U'l RECORDATION REQUESTED BY: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 WHEN RECORDED MAIL TO: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 2066 OCT 23 Phi 3 28 SEND TAX NOTICES TO: Integrity Bank Camp Hill Office , 3345 Market Street Camp Hill, PA 17011 FOR RECORDER'S USE ONLY OPEN - END CONSTRUCTION MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS IS A PURCHASE MONEY MORTGAGE Amount Secured Hereby: $172,500.00 THIS MORTGAGE dated October 20, 2006, is made and executed between CONSTANTINOS J. Mallios, whose address is 715 Sandbank Road, Mount Holly Springs, PA 17065 and FREDERICK C. MILLER, whose address is 13 MOUNT ALLEN DR, MECHANICSBURG, PA 17055 (referred to below as "Grantor"-) and Integrity Bank, whose address is 3345 Market Street, Camp Hill, PA 17011 (referred to below as "Lender"). GRANT OF MORT6)4GE. 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 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 appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Cumberland County, Commonwealth of Pennsylvania: See Exhibit "A which is attached to this Mortgage and made a part of this Mortgage as if fully set forth herein. The Real Property or its address is commonly known as 3516 Ritner Highway, Newville, PA 17241. CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others; whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND BK1979PG1594 /6 I r A J MORTGAGE Loan No: 1500162950 (Continued) Page 2 PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF 8172,500.00, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PURCHASE MONEY MORTGAGE. If any of the debt secured by this Mortgage is lent to Grantor to acquire title to the Real Property, this Mortgage shall be a purchase money mortgage under 42 P.S. Section 8141. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. CONSTRUCTION MORTGAGE. This Mortgage is a "construction mortgage" for the purposes of Sections 9-334 and 2A-309 of the Uniform Commercial Code, as those sections have been adopted by the Commonwealth of Pennsylvania. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and;Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) 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 Substance on, undeF, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Fender 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 part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent: Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with 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 SKI' !9. OPG1595 I J MORTGAGE Loan No: 1500162950 (Continued) Page 3 Property, 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 or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. CONSTRUCTION LOAN. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of any improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such earlier date as Lender may reasonably establish) and Grantor shall pay in full all costs and expenses in connection with the work. Lender will disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to insure that the interest created by this Mortgage shall have priority over all possible liens, including those of material suppliers and workmen. Lender may require, among other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens, construction progress reports, andt,such other documentation as Lender may reasonably request. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property.. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens. having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a 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 the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and 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 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 to Lender satisfactory. 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 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 asserted on account of the work, services, or materials and the cost exceeds $1,000.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and "1970PG 1596 MORTGAGE Loan No: 1500162950 (Continued) Page 4 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 thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be 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, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. 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 $1,000.00. 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 Lender's election, receive and retain the proceeds of any insurance and 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 satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 160 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security. interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (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 (1) the term of any applicable insurance policy; or (2) 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. The Mortgage also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are. a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in 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) 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.title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. 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. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: ?f 70 MORTGAGE Loan No: 1500162950 (Continued) Page 5 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 the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. 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 applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES,.FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage ar)d take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) 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 Mortgage, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available .remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) 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 part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. 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 as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the ' 1970PG1598 MORTGAGE Loan No: 1500162950 (Continued) matters referred to in this paragraph. Page 6 Additional Authorizations. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Mortgage: Payment Default. Grantor fails to make any payment when due under 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 payment necessary to prevent filing of or to effect discharge of any lien. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. - Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether.by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 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 any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) days, immediately initiates steps which Lender deems f MORTGAGE Loan No: 1500162950 (Continued) Page 7 in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and, with or without taking possession of the Property, to 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 may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender 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 right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by 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's interest in all or any part 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 court 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 Property and to appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, for the 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 Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Deficiency Judgment. Lender may obtain a judgment 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 Property after the Property 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 (1) pay a reasonable rental for the use of the Property, or . (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other 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 Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of 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. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and 1 970PG 1600 , f MORTGAGE Loan No: 1500162950 (Continued) Page 8 an election to make expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rights and remedies available to Lender following an Event of Default, or in any way to limit or restrict the rights and ability of Lender to proceed directly against Grantor and/or against any other co-maker, guarantor, surety or endorser and/or to proceed against any other collateral directly or indirectly securing the Indebtedness. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and 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. Unless otherwise provided by applicable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage and notices pursuant to 42 Pa. C.S.A. Section 8143, et. seq., shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters-set forth in 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 Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of 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. 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 this Mortgage. Governing Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. Joint and Several Liability. 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 Grantor signing below is responsible for all obligations in this Mortgage. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under 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 and in all cases such consent may be granted or withheld in the sole discretion of Lender. 19 OPG16 01'. MORTGAGE Loan No: 1500162950 (Continued) Page 9 Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any person or circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending, provision cannot be so modified, it shall be considered deleted from this. Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other provision. 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. Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. Waive Jury. All, parties to this Mortgage hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means CONSTANTINOS J. Mallios and FREDERICK C. MILLER and includes all co-signers and co-makers signing the Note and all their successors and assigns. Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9604, et.6eq. ("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, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means CONSTANTINOS J. Mallios and FREDERICK C. MILLER. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. The liens and security interests created pursuant to this Mortgage covering the Indebtedness which may be created in the future shall relate back to the date of this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Mortgage. "v1970PG1602 MORTGAGE Loan No: 1500162950 (Continued) Page 10 Lender. The word "Lender" means Integrity Bank, its successors and assigns. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated October 20, 2006, in the original principal amount of $172,500.00 from Grantor to Lender, together with all 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 VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means. collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT'OF A -SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, Integrity Bank, herein is as follows: Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011 Attorney or Agent for Mortgagee 970P" 603 Loan No: 1500162950 MORTGAGE (Continued) Page 11 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) p? ) SS COUNTY OF ? 1? b ?/ ? CmA ) n this, the day of C?e-tbben 20 ?, before me *hv L- the undersigned Notary Public, personally appeared CONSTANTINOS J. Mallios, known o me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. J1 - n e NOTARIAL SEAL Notar?lic in and for the State of Kathy L. Mumnert, Notary Public `1.0 ?:.- C?aljzl srland Co., - -'= = =`-=-111t?iVtBt7A? ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ,, ) SS COUNTY OF ?IAVYIbeAt Q Rd ) 0 this, the oYD day of nC" 0beAl , 20C)(J , before me IJ U 1t N rY1P , the undersigned Notary Public, personally appeared FREDERICK C. MILLER, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. Nevi:° iAL SEAL Kathy L. Mummert,, Notary Public B0,ough of C:;1'lis18, Cumberland Co., N fly Corrlmissiol) Expires Aug. 11, 2007 in and for the State of ei? uses 6 L d. g. V.. ]006. M NO- Mxnnd. - PA LEGAL DESCRIPTION ALL that certain tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) tit common corner of Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes 05 seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of Lot No. 20 on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. -1 Co . rity A 970PG1 0- ..-?' ^?_-?•, sue: `?. ?;.-?:`"?,.??? Recorder of Deeds J f?xG,t6;f C F SADeedsWlallios Deed.doc RECORDATION REQUESTED BY: Reager & Adler, PC 2331 Market Street Camp Hill, PA 17011 WHEN RECORDED MAIL TO: Constantinos J. Mallios 59 Strayer Drive Carlisle, PA 17013 TAX PARCEL NO. 31-10-0620-019 SEND TAX NOTICES TO: Constantinos J. Mallios 59 Strayer Drive Carlisle, PA 17013 IIIIIIdIN SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY THIS DEED, THIS INDENTURE MADE THE ZZ day of 5t-,?be,/ , 2008, BETWEEN FREDERICK C. MILLER, an adult individual with an undivided one half interest, CONSTANTINOS J. MALLIOS, with an undivided one half interest, hereinafter designated as the Grantors, AND CONSTANTINOS J. MALLIOS, an adult individual, hereinafter designated as the Grantee. WITNESSETH, that the Grantor for and in consideration of One Dollar ($1.00), lawful money of the United States of America, to the Grantors in hand well and truly paid by the Grantee, at or before the sealing and delivery of these presents, the receipt whereof is hereby acknowledged and the Grantors being therewith fully satisfied, do by these presents grant, bargain, sell and convey unto the Grantee forever. ALL THAT CERTAIN tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common corner of Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 ' I , . I SADeedsWallios Deed.doc seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes 05 seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of Lot No. 20 on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. BEING THE SAME PREMISES which David L. Wilson and Donna J. Wilson, husband and wife, by their deed dated October 20, 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book 277, Page 1216, granted and conveyed unto Frederick C. Miller, adult man with an undivided one half interest, Constantinos J. Mallios and Elaine Mallios, husband and wife, with an undivided one half interest. ALSO BEING THE SAME PREMISES which Elaine Mallios, married woman, by her deed dated October 20, 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book 277, Page 1220, granted and conveyed her interest unto Constantinos J. Mallios, married man. UNDER AND SUBJECT to all conditions, restrictions and protective covenants, easements and rights-of-way of record, including, but not limited to the Declaration of Restrictive and Protective Covenants dated December 3, 1986, and recorded in Cumberland County Miscellaneous Book 326, Page 786 and subject to a fifteen feet wide utility and drainage easement along all property line and right-of-way lines, and other matters of record or that which a physical inspection or survey of the premises would reveal. TOGETHER with all and singular the buildings, improvements, ways, woods, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances to the same belonging or in anywise appertaining; and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and of every part and parcel thereof; AND ALSO all the estate, right, title, interest, use, possession, property, claim and demand whatsoever of the . Grantors both in law and in equity, of, in and to the premises herein described and every part and parcel thereof with the appurtenances. TO HAVE AND TO HOLD all and singular the premises herein described together with the hereditaments and appurtenances unto the Grantee and to the Grantee's proper use and benefit forever. AND the Grantors covenant that, except as may be herein set forth, they do and will forever specially warrant and defend the lands and premises, hereditaments and appurtenances 's SADeedsWallios Deed.doc hereby conveyed, against the Grantors and all other persons lawfully claiming the same or to claim the same or any part thereof, by, from or under it, them or any of them. In all references herein to any parties, persons, entities or corporations, the use of any particular gender or plural or singular number is intended to include the appropriate gender or number as the text of the within instrument may require. Wherever in this instrument any party shall be designated or referred to by name or general reference, such designation is intended to and shall have the same effect as if the words "heirs, executors administrators, personal or legal representatives, successors and assigns" had been inserted after each and every such designation. IN WITNESS WHEREOF, the Grantors have hereunto set their hands and seals. Dated the day and year first above written. Signed, Sealed and Delivered in the 77L-- FREDFIRIC C. MILLER J CONSTANTINOS J. LLIOS COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND . SS. BE IT REMEMBERED, that on $ , 2008, before me the subscriber personally appeared Frederick C. Miller, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. COMMONWEALTH OF PENNSYLVANIA Notarial Seal Deborah L. Brenneman, Notary Public Camp Hill Boro, Cumberland County my Comm"lon 6xplres June 18, 2010 Notary blic amber. Pennsylvania Association -& Notaries . 11 .I. S:\Deeds\Mallios Deed.doc COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF CUMBERLAND ) BE IT REMEMBERED, that on 5-6T}4-. ??-- , 2008, before me the subscriber personally appeared Constantinos J. Mallios, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. COMMONWEALTH OF PENNSYLVANIA Notarial Seal Deborah L. Brenneman, Notary Public Camp Hill Boro, Cumberland County My Commission Expires June 18, 2010 Notary Public Member. Pennsylvania Association of Notaries The Undersigned certifies that the precise residence and complete post office address of the Grantee is: 59 Strayer Drive Carli PA 17013 Attorney for Grantee s. ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 200833896 Recorded On 10/13/2008 At 1: 06:52 PM * Instrument Type - DEED Invoice Number - 30486 User 1)- KW * Grantor - MALLIOS, CONSTANTINOS J * Grantee- MALLIOS, CONSTANTINOS J * Customer --ME[)STATE * FEES STATE TRANSFER TAX $156.49 STATE WRIT TAX $0.50 STATE JCS/ACCESS TO $10.00 JUSTICE RECORDING FEES - $12.50 RECORDER OF DEEDS PARCEL CERTIFICATION $10.00 FEES AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 BIG SPRING SCHOOL $78.25 DISTRICT PENN TOWNSHIP $78.24 TOTAL PAID $362.48 * Total Pages - 6 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA ? f ctr 0 RECORDER O D EDS A lot rnso * - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. 1111111111111111111111111111111 'i 6c 4, ? --1 4- D Borrower: CONSTANTINOS J. Malgos (SSN: 151-42-6336) Lender: Integrity Bank FREDERICK C. MILLER (SSN: 196-48-2678) Camp HIM Office 715 Sandbank Road 3345 Market Street Mount Holly Springs, PA 17065 Camp HIM, PA 17011 (797) 9204900 Principal Amount: $172,500.00 initial Rate: 8.750% Date of Agreement: DESCRIPTION OF CHANGE IN TERMS. The original maturity data of October 20, 2007 is now extended to'Apr1 20, 2008. PROMISE TD PAY. CONSTANTiiYOS J. Maeios and FREDERICK C. MILLER ("Borrower") jointly and severally promise to pay to Integrity Bank ("Lander"), or order, in lawful money of the United States of America, the principal amount of One Hundred Seventy-two Thousand Five Hundred & 00/100 Dollars ($172,500.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shag be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower wig pay th)s.loan In one payment of all outstanding principal plus ail accrued unpaid Interest on April 20, 2008. In addition, Borrower wig pay regular monthly payments. of ail accrued unpaid Interest due as of each payment date, • beginning November 20, 2006, with all subsequent interest payments to be due on'the 'same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid cogection costs; and then to any late charges. Interest on this loan is computed on a 365/365 sbnplb interest basis; that Is, by applying the ratio of the anthuai Interest rate over the number of days in a year, multiplied by the adtatand'ing principal balance, multiplied by the siobial number of day's the principal befance Is outstanding. 'Borrower wig pay Lender at Lender's address shown above or at such other place as Lender may designats In writing. VARIABLE INTEREST RATE. The interest rate on this ban is subject to change from time to time based on changes in an independent index which is the New York Prime Rate of Interest The New York Prime Rate of interest shall mean the Interest rate par annum'announced.from time to time in various business journals, such as The Wall Street Journal, as tfie "Prime Rate of Interest'. The New York Prime Rate of Interest Is an index, and loans of the Bank may be established at, above or below the Index. The New York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shall. float at New. York Prime (the "Index"l. The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change wig riot occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.750% per annum. The interest rate to be applied to the unpaid principal balance during this loan will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 8.750% per annum. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are aimed fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the-amount owed earlier than it Is due. Early payments.will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar. language. If Borrower sends such a payment, -Lender may accept it without losing any of Lender's rights under this Agreement, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, in any check or other payment instrument that indicates that the payment constitutes "payment In* full" of the.arno4nt owed or that is tendered with other conditions or limitations or as full satisfaction' of a disputed amount must be mailed or delivered to: integrity Bank, 3314 Market Street Camp Hill, PA 17011. . INTEREST RESERVES, Borrower authorizes Lender to place $11,000.00 of the Principal Amount a8 an interest reserve, which is an estimate of tlie interest due an the Note ("Interest Reserve"). All interest payments shall be paid from the Interest Reserve. Lander. may automatically deduct accrued unpaid interest from the Interest Reserve. Interest will accrue, as described in this Note, on amounts deducted from the Interest Reserve. In the event the interest due under this Note exceeds the interest Reserve, Borrower will pay accrued unpaid interest when due according to the terms of this. Note. Upon maturity, Lander will not advance or disburse the remaining Interest Reserve, if any, to Borrower. The principal due upon maturity will not include any remaining Interest Reserve. LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever Is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be Increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment Is entered in connection with this Agreement, Interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest: rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an Event of Default under this Agreement: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to perform Borrower's obligations under this Agreement or any of the Related Documents. False Statements. Any warranty, representation. or statement made or furnished to Lender by Borrower or. on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence of Borrower, the appointment of a recawnr fnr Ate., .,s.r s e....,....__,_ _______ • •. CHANGE IN TERMS AGREEMENT Loan No: 1500162950 (Confllnuad) page 2 creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.. Creditor or Forfeiture Proceedlings. Commencement of foreclosure or forfeiture proceedings, whether by _ judicial proceeding, self-help, repossession or any other method, by any. creditor of Borrower or by any governmeirtal agency against any collateral securing the Indebtedness. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall fiat apply If there is a good faith dispute by Borrower as to the varldity or reasonableness of the claim which Is the basis of the creditor or forfeiture proceeding and if Borrower gives Lander written notice of the' breditor.or forfeiture proeseding aril deposits with Lender nionkes or a surety band for the credrtar or forfeiture *oceeding, in an ahiotih ddterniinecl by Lender, In its sole discretion; as being an adequate reserve or bond for the dispute. Events AffeciMg Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent,. or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under ttis guaranty in a manner satisfactory to Lender; and, In doirig so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect. of payment or performance of the Indebtedness is impaired. Insecurity.. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Agreement within the preceding twelve (12) months, it may be cured If Borrower, after receiving written notice from Lander demanding cure of such default: (1) cures the default within ten (10) days; or (2) If the cure requires more than ten (10) days, immediately Initiates steps which Lender deems In Lender'a sole discretion to be sufficient to cure the default and thereafter continues and corripletes ail reasonable and necessary step's sufficient to produce compliance as soon as reasonably practical. LENDER'S 'RIGHTS. Upon default, 'Lender may, after giving such notices as required by applicable law, deoiare the entire unpaid principal balance under this Agreement and all accrued unpaid Interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEOS; E*E*NSES. Lender may hire or pay someone else to help coliedt this Agrggmehi if Borrower does riot pay. Sorrows[ will pay Lender tfiet dimount. This includes, subject 16 any limits under 'appiicebie levy, Lender's reasonable attorneys' ' fees and Lender's legal expenses, vvheithet or not there is a lewsuFt, including seasonable attarrrays' fee§, expdosis for bankrupts y prbcdddln'§s Gricludir' [ efforts to modify or vaoi3te. anyalrtbmetic stay or rrrjunction), and appeals. if not prohibited 6y apptice6le law, "BoKovi?e[ also will pay My coLrt costs, in addition to all other sums provided by iaw. JURY WAWER. Lander and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by irither Lender or Bcrrdswer against the Other. GOVEFtI1111NG 'LAW, This Agreement will be governed by federal law a00babl6 to Lender and, to the extern not pteernpted by federal lair, the laws of the Ooinindirwealth of Pennsylvania without regard to Its conflidt9 of law provisions. This Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. C46ICE• OF 1(ENUE. If thet'e is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the. courts of Cumberland County, ComrrSon wealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 If Borrower makes a payment on Borrower's loan and the check or preatao'. rized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF, To the exterit permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone e169 and all acebunts Borrower may open -in the future. However, this does not include any tflA or Keogh accourifs, or. shy trust accounts for which sfitoff would be prohibited b'y law. Borrower autharkzes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the irdebtedness against any and a11'such accounts. COLLATERAL. Borrower acknowledges this Agreement is secured by a valid, title-insured first mortgage lien on real estate acid all irtilsrovements located at 3516 Ftttner Highwey, Plewvtile, CueiibdkI6ftd'COeiriiy, PA 172441. This Note is slid iiecureti by the bO?porate guatarrtee of FCM Builders, IE, n LINE OF CREDIT. This Agreement evidences a straight liner of credit. Once the total amount of principal has been advanced; Borrower is not entitled to further loan advances. The following person or persons are authorized to request advances and authorize payments under the One of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority; FREDERICK C. MILLER. 'Beirrgwer agrees to be ilafile for ail e:ulns either. (A) advaiti6id in accordance wit)t'the instnitibons of an. authorized person or (B) credlterl to any q# k3brrower's accounts with Lender. The unpaid Principal bal8riee owing on this Agli6irt erit at any lime may be evidenced by eniioiseriierits an this Agreetngrrt 'or by Lender's itne nal records, including daily i i m'putar print-outs. CONTINUING VALIDITY.. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full. force and effeof. Cbnsaht by Lender to this Agreement does not waive Lender's right to strict perfgrniance of the obligation(s) as changed, nor obligate Lender to. make Any fy"6 change in terma. Nothing in this Agreement will constitute a satisfaction of the obligation(s). ft 'N the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is eidpreswy released by Lander in writing. Any maker of endorser, including accommodation makers, will not be released by virhie of this Agreement. If arty person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that. flits Agreement Is given conditionally, based on the representation to Lander that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by R. This waiver applies not only to any Initial extension, modification or release, but also to ail such subsequent actions. SUCCESSOR O1ITERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender may May or forge enforcing any of its rights or remedies under this Agreement without Iosirrg them. Each BorraVver:underst?rYds arid agrees that, wifli br without iiotioe to Bcrrowef; Lender may with respeotto any other Borrower (a} make one or more additional secured or unsecured towns or otfiervvise eittenil. acliiitional credit; (ti) altef, compromise, r6rrew, extend, accelerate, or otherwise ciieige one or more times the"kiddie for pajrriient of o"titer terms of any inde)ifedness, including increases and decreases of the rate of interest an the indebtedness; (c) (dl annly exchange, eforciv, , fail or d ec ide not.to perfect, an release n e, wa e subordinate an security with or without the substitution of new coOateral; such security and direct the order or rr, finer': of Air ;i;e.e d ;:_±'y. CHANGE IN TERMS AGREEMENT ILOaIt-, d 1500162950 (Cone Cued) Page 3 more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender me choose; and and what application of payments and credits. shall be made on any other indebtedness owing by such other Borrower. Borrowwer and any other ( person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest In the collateral; and take any other action deemed necessary by`Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Agreement are joint and several. If any portion of this Agreement is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Agreement. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ' ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS AGREEMENT AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS AGREEMENT AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF.SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS (6500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS AGREEMENT OR A COPY OF THIS AGREEMENT VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS AGREEMENT TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL. PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS AGREEMENT. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION. TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL PRIOR TO SIGNING THIS AGREEMENT, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: . _ .... X. ' Seal) FREDERICK C. MILLER Signed, ackn#fedged Mgd4verl d In the presence of. X v Witness LENDER: INTEGRITY BANK X C n N. MCAdoo, Vice sident lAMM FM L-9bg6 W6 SaLloml ow. Nip FW-d f YW„i 6- 1lR, 70 W. M ?a? -M ICWIIDNOWIUPLIGIOCFG 71F1N! - ? Ia .. ` CHANGE IN TERMS AGREEMENT Loan No: 1500162950 (Continued) Page 2 creditor workout, or the commencement of any proceeding under any bankruptcy or Insolvency laws by or against Borrower.. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession at any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the Indebtedness. This Includes a garnishment of any of Borrower's accounts, Including deposit accounts, with Lender. However, this Event of Clefault shag not apply If there Is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender iiVritten notice of the credttor_or' forfeiture proceed(hg arsi deimi is with Lender rrtoii(es or a suiety bond for the creditor or forfeiture taroodeding, in an amount defeririined 6y Lurid 'or', in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, dr liability under, any Guaranty of the Indebtedness evidenced by this Note, in the event of a death, Lender, at its option, may, but shag not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a mariner satisfactoty to Lender, aid, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition# or Lender believes the prospect of payment or performance of the indebtedness.is Impaired. Insecurity. Leadet in good faith believes itself insecure. Cure Provirzidiis. If any default, other than a default in payment Is curable and if Borrower has not been given a notice of a breach of the same provision of this Agreement within the preceding twelve (.12) months, it may be cured If Borrower; after reea(ving written notice from Lender demanding cure of swh default: (1) cures the default within tan (10) days; or (2) if the cure requires more then tan (10) days, immediately inittaites steps which -Ladder deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and riecessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S AXINTS. Upon default,' Lender may, after giving sui5h notices as required by applicable law, declare the entire unpaid principal balance under this Agreement and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' PEAS; F PpVBES, Lender may hire or pay someone else to help collect this Agreemenf Ii Roirower does riot pay. Qorrower. will pay Lender that sniount. This includes, subject'to any limits under 'ppplicabla law, Lerider'e reason ibis attorneys' fees and Lender's legal eXpenses, whether dr n6i there is a fawsuit, Including reasonable attdrheys' fees, expgoses for bankruptcy pit ceedinbs Oricludltitj. efforts to modify or'vaoatiE. any autbmetic stay or mjunctioni, end appeals. If not prohibited by apprca6l'e law, 'FIW6 ilefr. also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Bort'ower herabjr walva the right to any jury trial in any action, proceeding, or courit erclaim brought by either Lender or Rderdwer against the other. GOVERNING LAW. This Agieemout wig be governed by federal law appBCabib id Leader and, to the extant riot pteernpted by federal law, the laws of the Coirtmdnwealth'of Pennsylvania without regard to Its confReU of law provisions. This Agreement has been accepted by Lender in the Commonwealth of Pennsyfvarile. C1461CE OF V041.1k. If fhetiii is a laWsult, Borrower agrees upon Lender's request to submit to the jurlsdictdon of the.courts of Cumberland County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 if Borrower makes a payment on Borrower's loan and the check or preautliorized charge with which Borrower pays is later dishonored. FLIGHT OF SE= OW. To the extent permitted by applicable law, Lender reserVes a right of safoff in all BorroWer's accounts wilfi Lender (whether checking, Savings, or some other account). This i6clud" all accounts Borrower holds jointly with someone elsd and all acc hilts Borrower fiey open In the future. However, this does riot include any (RA or Keogh accounts, or kny oust accoutitS for which setoff would be prohibitgd by law. Borrower authorizes Lender, to the extent permitted by applicable law, .to charge or setoff afl sum8'Owing on the iiiddbtedne . as against any and all'such accounts. COLLATERAL. Borrower acknowledges this Agreernerit is secured by a valid, title-insured figs . mortgage lien on real estate and all improvements locafsd at 3516 Miner Highway, Newv(lie, Curhbd-_land'C'6' t' PA 17241. This Note is also secured by tha Corporate guarantee of FCIU Builders, litb, LINE OF CREDIT. This Agreement evidences a straight line of credit. Once -the total amount of principal has been advanced; Borrower is not entitled to further loan advances. The following person or persons are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: FREDERICK C. MILLER. borrpwer agrees to be ll'136 for all sums either; (A)' aclvariced in accoiiYdhde wlth'fhe inetrirctions of an authorized peregn or (B) credited to any of Borrower's accounts with Leridei. The unpaid principal balarioe oriving on this Ag'reeliieiit at any tirire may be'evifenoed by endoriiements on this Agieem'aitf or )iy L'ender's )i>t nal ,records,. iriol6ding daily computer prifit-outs. CONTINUING VALIDITY, Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s); reriibin unchanged and in full. force and 6066t. Cunso'hi by Lender to this Agreement does not waive Lender's right to strict performance of the obligatton(sl as changed, nor obligate Lender to, make,any•fytani change in term's. Nothing in this Agreement will con'stitutiia sa#lsfaction of the oblgation(sb K is the intention of Lender' to retain as liable parties ail makers and endorsers of the original obligation(s), including accommodation parties, unless a party is ukpressiy teladsed by Lander In writing, Any maker or endorser, including accommodation makers, wig not be released by virt6a of this Agreement. If any person who signed the original obligation does not sign this Ag(petrrient below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Aq?gpment or otherwise wig not be released by it. This waiver applies not only to any initial extension, modification or release, but also 'to ail such subsequent actions. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding u'p'on Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender M-;iV delay or forgti enforcing any of its.rights or temedies under tWs Agreement without losing therm. Each BorroWar:understari'ds and agrees that, v;iith or wltf;Uirt notice td Bdirowe4 Lender may with respect to ahy other Borrower (a) make one or more additional secured or unsecured loans oz otherwise ezterki. additional credit; (bl after, compromise, renew, .extend, accelerate, or otherwise change one or more times the't)rrre for payriient or other terms of any indebtedness,. including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fag or decide not.to perfect, and release any security, with, or without the substitution of new collateral; (d) apply soon "security and direct the order or litapriertof. sale=;tliereo'f;. include`rig=grrithdUf.(imEEatiori; shy COntrt)Igilq secUrltV a'brPPmPt,1s. ac 1 F!rirrar' in tie ' iron judicial sale permitted by the terms of the P .r' I am..T a?T rho: ? ?oou eo (CcalkLMd). s mnard of N m vw's sasthm aador a or ow Ausanrers arc.pW ease of in say mwwm r Lander awy doom and 40 dsoaraYns how, when vnd wbsL app4=Mk r/ cf ( aad awdib lilwil ba mils on kW odwr btdsbodrim 'aWo.wbyg by each odeat Sorra at. DwwwrwW arty elm parson who. signs.. guardf l of. sigldlass tffis AlesaaraRt, is the 000* 9 ablowmW by owl vmiw pwwwsrwr4 dsw?rd for pagssant? dad nod= of diNwm-. U*= any offs liNMr isiras of this Ads, sod Wien 9*MMw wwmsriy sued In wdMw no party who signs d* Agreement, whsdef ss awlss, Quwwwjr, eooarrrmodsdorb rra iw or asdasar, Ad be massed *oa.IWMW. AN such pandas agwe an Lsndor may TWOM or PO (ril?srM -74dd for any Wq& of tbwl this loan of rshass airy party or gassy I r ar coftwal; or kapsk, fd io realize won or pW$M.Lw*b r?salgr bnawst In to.Cablfaafeb and take salt a4w swim deans aaoosawy by Ceylon w0we Ufa eons am of or nolios so arwane. AK syab psralss also sryars Clot Lander may atodtfy" Inn without the consent of or wallas to a Www ether that to party wlrh vnhaat ,ft laOdNlwtbon Is wads.. The Oldlgsdont ur4w IM Aareamem as Jobt and several. 11 any portion of this Agraan w* ix for ar?y reDwn dsMW*wd to be w+wdoniwbla. It Will not 100 " tha sndorosabMW of Wry otter proviskes of this Awwawart. COMPSISM OF JLWGRV T. BONwWMpt HERM LiFAbIOCANLY ALITHHORMS AM 941100I11M ANY ATTORNEY OR THE PROTHOWTARY OR LLM OF ANY COURT IN THE COWADINMAL.TTi OF PHNiY1.VAN1A, OR 8 TO APPEAit AT ANY TIRE FDIi awpi"awmn ApTC#!', A caFAULT u ww THIs AtimnANT AND wA fH o.R 1Allnf m t unwr FuD, n n eo n ort wmit JUC(UtT AGAMT BOINIOWIMi FOR THE. Elm PRIMMAL hIA[JYIIR.E OF TiliS Atill9ltiiR AHD ALL AtX?IIfED INTiSiBT, LATE CEiA$ lMiD ANy! AHiKI. AL#. AMOtfIEiTB E?9D?fl pt AHiVANC® BY LttltltEft RL3ATIFIQ .TC ANY CM{,EA7lILIlL .8?1lRN6 TbLE tom. Ti?ifl'tRR yARi!{. C0?113 OF 9WT, AID AN ATf'?L21CS CdY?pN OE ?. P?'.pD=lfej QF TEE. tlNPAID Piyll?{. flltt.n>?;E Anti /4CGNtlBi'111Tf?T FOR'COLLE?CTION, BLfC:Iw ANY i:Mflfl` iN?T Ll':BB TMIW .FfYE HtliiRlRBD.OiQ[LAA81?501I) dM WHICti •Rff`O?R Jl10LfriiEM>IR GME OH3 MORE EiL6QfTID11& MAY i?UE.di/MEQLAT?Y: AND:FDR SO E10t<i?i. Ti#S ABAE?EAiT' OR .a COTY OF ?6::1'.11? t31f AfFDAYtT SHALL SE f3{tt?tr 1AWEAMIf. THE A1RII0}LffY flRAMTED O TFIIS A?ytJgr TQ.L?Nlit?6 AJD?IOIT I14A4BT OLN>r10NiiI itALL NOT ? 6Y ANY E?®1COE Otf.THiA1TAtTTF1O1fITY. LitJT SHAH CQMrNit1 M.ILiL TiiE_ 7Li Ttl<IE Al1R'i AT IILL'AMLi UKIA PAYMffllll... ... OF ALL /INt>LJRT6 Dt! LJMDl1{ TNLS JCT. POWER.} Y AIW RIOM DOISIM IM"MAY H&VE TO .NOTICE OR TO A MA AM IN WITH ANY SUCH COON OF JL>DiBI iW 040 STATES 71•MT EM MM A i rATIME OF LF3MM.SPS°1i7lW"Y WGM Tfb1S CONIS lRBMON OF JUDNAN ' PRQ1Af. M:-70.8 IrldYf WS AYTWf1M =t f101MbWEt WW MW NW01098aW SY MO iT LEGAL COUNSEL }IWIII To SbIt111111118 1LtL8 Air, su t BWMOttbli? MD MID tlll0ilIMID ALL TIM llWAMM OF TM A0NLi1111w, MG2LOMQ THE illklitr/iYI?IOti. fa'ACA R Ate t1D TTE 7?ti 0F. . TM AST E III VMMM L AM IT IlE4WMNDD TMT 7HfHti AST E AND WALL COMMUTE AM HAVE THE L wr iw A Aidm arc 7a LAw. srgwini, of x 1Altnnda teltt>Qt: e 1N7 BB11fiY SANK x - < r NOTE MODIFICATION AGREEMENT The Effective Date of this Note Modification Agreement (the "Agreement") is September 22, 2008, and the parties to this Agreement are as follows: A. INTEGRITY BANK (the "Lender"); and B. CONSTANTINOS J. MALLIOS and FREDERICK C. MILLER, adult individuals (individually referred to hereinafter. as "Mallios" and "Miller", respectively, and sometimes collectively referred to as the "Borrower"). The Background of this Agreement is as follows: A. WHEREAS, incident to a certain construction financing loan extended by the Lender to the Borrower in the principal amount of $172,500.00, the Borrower executed a PronrissoryNote (the "Note") dated October 20, 2006. A true and correct copy of the Note is attached hereto as Exhibit "A" and incorporated herein by referenced as if fully set forth herein; and B. WHEREAS, the Note is secured by, among other items, a Purchase Money Open-End Construction Mortgage dated October 20, 2006 (the "Mortgage"), on certain real property located at 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania (the "Property"). The Mortgage is recorded in the Cumberland County Recorder of Deeds Office in Mortgage Record Book 1970, Page 1594. A true and correct copy of the Mortgage is attached hereto as Exhibit "B" and incorporated herein by referenced as if fully set forth herein; and C. WHEREAS, the Note, as amended by separate Change in Terms Agreements between the parties dated October 20, 2007, and April 20, 2008 (a true and correct copy of each Change in Terms Agreement is attached hereto as Exhibit "C" and "D", respectively, and incorporated herein by referenced as if fully set forth herein) currently provides for a repayment maturity date of October 20, 2008 (the "Maturity Date"), at which time all principal and interest accrued thereon will become fully due and payable; and D. WHEREAS, at Borrower's request, the Lender has agreed to extend the Maturity Date of the Note in accordance with the terms of this Agreement, and to release Frederick C. Miller from the obligations of said Note, without in any way affecting the first lien of the Mortgage. NOW THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, the parties hereto, intending to be legally bound hereby, agree as follows: 1. In consideration of the mutual promises contained herein and Mallios' continued promise and obligation to make due and punctual payments under the Note, as amended, the Lender hereby agrees to extend the Maturity Date until October 20, 2009, and to release Miller, only, from his obligations under the terms of said Note. 2. Mallios hereby agrees to continue to make monthly installments of interest on the unpaid principal balance from time to time on the same day of each month during the extended term of the Note, at the same interest rate and upon the same terms as set forth in the Note. If principal and interest accrued is not paid by October 20, 2009, the Note rate will be increased, all interest accrued to that date shall be due and payable, and all outstanding principal shall be due and payable, as per the terms of the Note. ! 1 3. In all other respects, the terms, conditions, and obligations of the Note, the Change in Terms Agreements, the Mortgage and all loan documents: A. Remain unchanged; B. Are hereby ratified and affirmed in their entirety; C. Continue in full force and effect and constitute a valid, title-insured first mortgage lien on the Property; and D. Are legally valid, binding and enforceable in accordance with their respective terms. 4. Mallios hereby ratifies and affirms that his liability shall continue in full force and effect through and including the Note's now extended Maturity Date and that Mallios has no defenses, setoffs, or other claims against the Lender arising out of this credit facility. 5. This Agreement shall be binding upon the parties hereto as well as their heirs, successors and assigns, as the case may be. 6. If it is determined that any other person or entity other than the Lender shall have a lien, encumbrance, or claim of any type which has a legal priority over any term of this Agreement, the original terms of the Note and Mortgage shall be severable from this Agreement and separately enforceable from the terms thereof as modified.hereby in accordance with their original terms, and the Lender shall maintain all legal or equitable priorities which were in existence before the date of execution of this Agreement. It is understood by and is the intention of the parties hereto that any legal or equitable priorities of the Lender over any party which were in existence before the date of execution of this Agreement shall remain in effect after the execution of this Agreement. IN WITNESS WHEREOF, the parties have placed their hands and corporate seals hereto, intending to be legally bound, effective the date first above written. WITNESS/ATTEST: LENDER: INTEGRITY BANK BY• (SEAL) BORROWER: 9,00(SEAL) CONSTANTINOS J. LIDS (SEAL) 4FD 4ER I C XK C. MILLER . a EXHIBIT "A" Borrower CONSTANTINOS J. Mallios (SSN: 191-42-8336) FREDERICK C. MILLER (SSN: 196-48-2678) 715 Sandbank Road Mount Holly Springs, PA 17065 Lender: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 (717) 920-4900 Principal Amount: $172,500.00 Initial Rate: 9.250% Date of Note: October 20, 2006 PROMISE TO PAY. CONSTANTINOS J. Mallios and FREDERICK C. MILLER ("Borrower") jointly and severally promise to pay to Integrity Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of One Hundred Seventy-two Thousand Five Hundred & 00/100 Dollars ($172,500.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on October 20, 2007. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning November 20, 2006, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest: then to principal; then to any unpaid collection costs; and then to any late charges. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the annual interest rate over the number of days in a year, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the New York Prime Rate of Interest. The New York Prime Rate of interest shall.mean the interest rate per annum announced from time to time in various business journals, such as The Wall Street Journal, as the "Prime Rate of Interest". The New York Prime Rate of Interest is an index, and loans of the Bank may be established at, above or below the index. The New York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shall float at New York Prime (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 8.250% per annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 9.250% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as. otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a.portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Integrity Bank, 3314 Market Street Camp Hill, PA 17011. INTEREST RESERVES. Borrower authorizes Lender to place $11,000.00 of the Principal Amount as an interest reserve, which is an estimate of the interest due on the Note ("Interest Reserve"). All interest payments shall be paid from the Interest Reserve. Lender may automatically deduct accrued unpaid interest from the Interest Reserve. Interest will accrue, as described in this Note, on amounts deducted from the Interest Reserve. In the event the interest due under this Note exceeds the Interest Reserve, Borrower will pay accrued unpaid interest when due according to the terms of this Note. Upon maturity, Lender will not advance or disburse the remaining Interest Reserve, if any, to Borrower. The principal due upon maturity will not include any remaining Interest Reserve. LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. PROMISSORY NOTE q 'J s PROMISSORY NOTE Loan No: 1500162950 (Continued) Page 2 Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings; or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by a valid, title-insured first mortgage lien on real estate and all improvements located at 3516 Ritner Highway, Newville, Cumberland County, PA 17241. This Note is also secured by the corporate guarantee of FCM Builders, Inc. LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances. Advances under this Note may be requested orally by Borrower or as provided in this paragraph. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following person currently is authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of his or her authority: FREDERICK C. MILLER. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with. or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties. agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action.'+--med necessary by Lender without the consent of o- -otice to anyone. All such parties also agree that Fender may modify this loan withou ;consent of or notice to anyone other than the with whom the modification is made. The obligations under this Note are joint and >s?..:ral. If any portion of this Note is for any reason f ..rmined to be unenforceable, it will not affect Loan No: 1500162950 the enforceability of any other provisions of this Note. PROMISSORY NOTE (Continued) Page 3 CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER.THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: ::.. ?.. . . Seal) . .................................. ... ............... CONST .TINOS J. Mallios LENDER INTEGRITY BANK ? an li? X r ris.r o ,Lo an fficer X»`> Seal >'. ) FREDERICK-C. MILLER LASER PRO Landing, Var. 5.33.00.004 CW. Nrlond ReonoW SoNdom, Inc. 1557, 2005, N Rom R-od. • PA K:ILENDINMCFR1PL1020.FC 7141569 .4 EXHIBIT "B" Parcel Identification Number: r? r r 0" ,r --"t CCU., , -. RECORDATION REQUESTED BY: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 WHEN RECORDED MAIL TO: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 2066 OCT 23 PM 3 28 SEND TAX NOTICES TO: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 FOR RECORDER'S USE ONLY OPEN - END CONSTRUCTION MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS IS A PURCHASE MONEY MORTGAGE Amount Secured Hereby: $172,500.00 THIS MORTGAGE dated October 20, 2006, is made and executed between CONSTANTINOS J. Mallios, whose address is 715 Sandbank Road, Mount Holly Springs, PA 17065 and FREDERICK C. MILLER, whose address is 13 MOUNT ALLEN DR, MECHANICSBURG, PA 17055 (referred to below as "Grantor"-) and Integrity Bank, whose address is 3345 Market Street, Camp Hill, PA 17011 (referred to below as "Lender"). GRANT OF MORTG??GE. 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 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 appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Cumberland County, Commonwealth of Pennsylvania: See Exhibit "A%. which is attached to this Mortgage and made a part of this Mortgage as if fully set forth herein. The Real Property or its address is commonly known as 3516 Ritner Highway, Newville, PA 17241. CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND ON,, 1970FIG 1594 Coago, G MORTGAGE Loan No: 1500162950 (Continued) Pegg 2 PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER.THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $172,500.00, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PURCHASE MONEY MORTGAGE. If any of the debt secured by this Mortgage is lent to Grantor to acquire title to the Real Property, this Mortgage shall be a purchase money mortgage under 42 P.S. Section 8141. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. CONSTRUCTION MORTGAGE. This Mortgage is a "construction mortgage" for the purposes of Sections 9-334 and 2A-309 of the Uniform Commercial Code, as those sections have been adopted by the Commonwealth of Pennsylvania. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and;Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) 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 Substance on, undi , about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as 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 part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's 'acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property. or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with 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 19. OPG 1595 MORTGAGE Loan No: 1500162950 (Continued) Page 3 Property, 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 or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. CONSTRUCTION LOAN. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such earlier date as Lender may reasonably establish) and Grantor shall pay in full all costs and expenses in connection with the work. Lender will disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to insure that the interest created by this Mortgage shall have priority over all possible liens, including those of material suppliers and workmen. Lender may require, among other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens, construction progress reports, and, such other documentation as Lender may reasonably request. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens. having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a 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 the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and 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 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 to Lender satisfactory 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 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 Properly, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials and the cost exceeds 51,000.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and BKi9'70PG1596 MORTGAGE Loan No: 1500162950 (Continued) Page 4 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 thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default-of Grantor or any other person. Should the Real Property be 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, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. 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 $1,000.00. 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 Lender's election, receive and retain the proceeds of any insurance and 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 satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (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 (1) the term of any applicable insurance policy; or (2) 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. The Mortgage also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are. a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in 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) 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.title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. 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. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: 1 70 PI-1 lu 597 i i ,, MORTGAGE Loan No: 1500162950 (Continued) Page 5 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 the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. 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 applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES,.FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage artd take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) 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 Mortgage, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available .remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) 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 part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. 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 as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates., and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the N1970PG1598 . A • , MORTGAGE Loan No: 1500162950 (Continued) Page 6 matters referred to in this paragraph. Additional Authorizations. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Mortgage: Payment Default. Grantor fails to make any payment when due under 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 payment necessary to prevent filing of or to effect discharge of any lien. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateral"ization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether.by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 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 any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) days, immediately initiates steps which Lender deems C !Q599 MORTGAGE Loan No: 1500162950 (Continued) Page 7 in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. UCC Remedi@s. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and, with or without taking possession of the Property, to 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 may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender 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 right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by 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's interest in all or any part 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 court 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 Property and to appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, for the 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 Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Deficiency Judgment. Lender may obtain a judgment 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 Property after the Property 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 shalt, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or . (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other 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 Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of 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. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and on 1 770CG 1600 f j , MORTGAGE Loan No: 1500162950 (Continued) Page 8 an election to make expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rights and remedies available to Lender following an Event of Default, or in any way to limit or restrict the rights and ability of Lender to proceed directly against Grantor and/or against any other co-maker, guarantor, surety or endorser and/or to proceed against any other collateral directly or indirectly securing the Indebtedness. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and 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. Unless otherwise provided by applicable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage and notices pursuant to 42 Pa. C.S.A. Section 8143, at. seq., shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in 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 Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of 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. 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 this Mortgage. Governing Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. Joint and Several Liability. 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 Grantor signing below is responsible for all obligations in this Mortgage. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under 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 and in all cases such consent may be granted or withheld in the sole discretion of Lender. v9* 3PG 1 60.i<, .4 .. MORTGAGE Loan No: 1500162950 (Continued) Page 9 Severabil"rty. if a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any person or circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending, provision cannot be so modified, it shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other. provision 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. Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. Waive Jury. All parties to this Mortgage hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means CONSTANTINOS J. Mallios and FREDERICK C. MILLER and includes all co-signers and co-makers signing the Note and all their successors and assigns. Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9604, 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, 42 U.S.C. Section 6901, at seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means CONSTANTINOS J. Mallios and FREDERICK C. MILLER. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential ntared, to human health or the environment when improperly used, treated, stored, disposed of, generated, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means ail principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. The liens and security interests created pursuant to this Mortgage covering the Indebtedness which may be created in the future shall relate back to the date of this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Mortgage. 1 IE a MORTGAGE Loan No: 1500162950 (Continued) Page 10 Lender. The word "Lender" Means Integrity Bank, its successors and assigns. Mortgage. The word "Mortgage" means.this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated October 20, 2006, in the original principal amount of. $172,500.00 from Grantor to Lender, together with all 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 VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means. collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A -SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, Integrity Bank, herein is as follows: Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011 Attorney or Agent for Mortgagee i.u # 970F ,}6133 Loan No: 1500162950 MORTGAGE (Continued) INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) hprt ) SS COUNTY OF a l ) Page 11 day of 20 S`L l before me the undersgned Notary Public, persoallappeared CONSTANTINOS J. Mallios, *4n his, lo e me r satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and offi7, seal. n n //?) Ar 1 T I/ I/ 1 i, AAA W II A l NOTARIAL SEAL Kathy L. MumMert, Notary Public t 1 .^ E: +.,a Cfan??aarlan-? Co., P in and for the State of ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY OF , i ,?M Y? P /1 I (l Y\? ) SS day of" 20(:)U before me O this, the undersigned Notary Public, personally appeared FREDERICK C. MILLER, known tom (or satisfactokprovZno be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and offic I seal. n . w A AA, ^ t_ SEAL NOI"' i Kathy L. MunjMeV4y Nota?Y Public Borough of C rii,su, Cumberland Co., PI ire.. Aug. 11, 2007 My Commission Exp in and for the State of Pl? Me.1987.7809. MP.-- 4t1970PG i604 LEGAL DESCRIPTION ALL that certain tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common corner of Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes 05 seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of Lot No. 20 on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. ' ' f' _?`., . " , ,°?. _ -9? "=' Recorder of Deeds 970PG1605 EXHIBIT "C" ?. CHANGE IN TERMS AGREEMEN. - - ROOM= References in the boxes aboAv Y item for above Lender's use containing ly and figs been it the omitted due ability Ier i h rumen to any particular loan or Item. Borrower: CONSTANTINOS J. MaMos (SSN: 157-42-83361 Lender: ?pity HM Bank Office FREDERICK C. MILLER (SSN: 196-48-2678) 3345 MMrkei Street 715 Sandbank Road ?p ylg, 1 et Mount Holly Springs, PA 17065 (717) 920-4900 Principal Amount. $172,500.00 Initial Rate: 8.750% Date of Agreement: DESCRIPTION OF CHANGE IN TERMS. The original maturity date of October 20, 2007 is now extended to;Aprr1 20, 2008. omise to to Integrity pay Ban PROMISE TD PAY. CONSTANTINOS J. Ma!{os and FREDERICK C. MILLER (*Borrower fatrommuM ofd several n Hudred Seventy two Thousand Fn?k One ("Lender"), or order, in lawful money of the United States of America, the p Ilundred & 00/100 Dollars ($172,600.00) or so much as may be outstanding, together with interest on the unpaid "outstanding principal balance cif each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this .ban In one payment of all outstanding principal plus all accrued unpaid Interest on April 20, 2008. In addition, Borrower will pay regular monthly payments. of all accrued unpaid Interest due. as of each payment date, • beginning November 20. :2006, with al subsequent interest payments to be due on'the acme day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any mpal collecti en8n;land t tentto ratio teres any late cherpes. Interest on this loan is computed on a 365/365 simple balance, basis; that Is, tby aop" ng the umber of day's the principal balance over the number of days )n a year, multiplied by the ortstanding principal is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as bender May designate in writing. VARIABLE INTEREST RATE. The interest rate on this loan is subject to change from time to time based on changes in an Independent index which is the New York Prime Rate of Interest. The New Yoik Prime Rate of interest shall mean the Interest rate per annum announced.from time York ssarily the of the Bank may be established aat, Street or below the Index. The New York Prime Ra eeof Interest isenotn neceInterest Is to time I Prim an index, various loans business Bank's lowest rate of interest. The interest rate shall float at Now. York Prime (the "Index"). The Index ns nignree a arlly- heel owes after charged by Lender on its loans. if the Index becomes unavailable during the term of this loan, Lender notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.750% per annum. The interest rate to be applied to the unpaid principal balance during this loan will be at a rate of 1.000 percentage point over the Index, resulting In an initial rate of 8.750% per,armum. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be the subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except agreed foregoing, Borrower may pay without penalty all or a portion of the" amount owed" earner than It is due. Early payments.will not, to by Lender In writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unlla, interest. "without Rath r, early payments will reduce the principal balance due. Borrower agrees not to send Lenndetlo ay ants any of markerkedd "psid rights *this in full", 'without Agreement, and similar. language. If Borrower sends such a payment -Lender may accept Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning 'dieputsd amounts, including In' owed or to:oiiryt tende any check Integrity Bank, 3314 Marred fullIndicates satisfactionthat of he dipayment sputed amount b mai led or fuldelivl" of ks cor other onditions payment rlimitati ns or asthat with other lTER reet C amp Hill, PA 17011. EST RESERVES. Borrower authorizes Lender to place $11,000.00 of the Principal Amount as an interest reserve, which is an estimate of the interest due on the Note ("Interest Reserve"). All interest payments shall be paid from the Interest Reserve. Lender may automatically deduct accrued unpaid interest from the interest Reserve. Interest will accrue, as describeB i`owwthis er Note, will pay accrued u paid interest wwhenedue Reserve. In the event the interest due under this Note exceeds the Interest Reserv e, according to the terns of this Note. Upon maturity, Lender will not advance or disburse the remaining Interest Reserve, if any, to Borrower. The principal due upon maturity will not include any remaining Interest Reserve. LATE CHARGE, If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever Is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon fetal maturity, the interest rate on this loan shall be increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Agreement, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest' rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shell constitute an Event of Default under this Agreement: Payment Default. Borrower fails to make any payment when due under the indebtedness. Other Defaults. Borrower fails to comply with or to perform any otter term, obligation, covenant or condition contained In this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower defaults under any loan, extension df credit security agreement, purchase sales'agreament, ability or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or to perform Borrower's obligations under this Agreement or any of the Related Documents. False Statements. Any warranty, representation. or statement made or furnished to Lender by Borrower or. on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect either now or at the time made or furnished or becomes false or misleading at any time thereafter, Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency . - ."_.__ -, - .,..,,,,int- nt of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of •A CHANGE IN TERMS AGREEMENT Page 2 Loan TNo: 1500162950 (Continued) • creditor workout, or the commencoment of any proceeding under any bankruptcy or insolvency laws by or against Borrower.. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by.judiciai proceeding, self-help, the Howse securin repossession or any other method, by any. creditor of Borrower or by any govermneontal accounts, h Le any collat this Event Indebtedness. This includes a garnishment of any of Borrowers accounts, including dell of Default shall rat apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which )a the basis of proceedihg the creditor or o ' aiture P gthe and If Borroer gives creditoror forfeiture jSr, oodding, in an ahlouirt d farniined 6q Lene derv, in ks sole di? tion, assbe ng -oi Lender rrionies or a surelybond for sh adequate reserve or bond for the dispute. Events Affecting Guarantor, Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any ness Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guar n Guarantor 'se state to evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit assume unconditionally tN3 obligations arising under the guaranty in a mannei satisfactory to Ler?daf, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is Impaired. Insecurity. Lendet in good faith believes itself insecure. s curable the it may be cured if Borrower, _ fternreceiving owrittenn notice from cure Carte Pro vof tfhiisn Agreementtwithiinn than a default. in pr eceding twelve 0 2) monthsand if Borrower s not requires same provision demanding ae steps of which Lender deems In Lender's sole di cret on (to be suuffficient to cu the the default ands thereafter tcontinues and Immediately sufficient to produce compliance as soon as reasonably practical. cbnipletes all reasonable and necessary steps ?icable law, declare the entire unpaid principal Llance S unde er this r this Upon dAgreementefauandlt all Lender accrued may, unpaid after _interest immediately due, and then Borrower will pay that amount. Borrower will baalance ATTORNEYS' FEES; WENSES. Lender may hire or pay someone else to help coiled this Agroomeht (f Borrower does. not pay. d Lender's pay Earlier that expens amourrt. This includes, subject to any limits under 'applicable I®W, Lender's rea tahable auto on6s' i f eestiricludi effortsgto Whither or not there is a {ewsuii, including reasonable attarrteys_ fees, expenses for bariktupw' P es, a eats. If not prohibited by appGca6(e law, Bofiovi?ef, also will pay any court rests, in modify or vacate. any aptofnatic stay or ih unction), rand 'pP addition to all oilier sun's provided by JURY trial in any action, proceeding, or counterclaim brought by either Lender WAly-ER. Lender and Borrower hereby waive the right to any jury or softwer against the other. GOVtANING -LAW. This Agreement wM be governed by federal law ap iftablb to Lender and, to the extent not preertrpted by federal law, the laws of the Corivnonweaith of Pennsylvania without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the Corrtmonwealthi of Pennsytvanle. C1401CE OE )(ENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction dt the.courts of Cumberland County, Commonwealth of Pennsylvania. on Borrower's loan and the check or DISHONORER) ITEM FEE. Borrower will pay a fee to Lender of 110.00 if Borrower makes a payment preat.@iorize'd charge with which Borrower pays is later dishonored. HT OF SEtOFF, To the extent permitted by applicable law' Lender reserves a right of setoff in ail Borrower's accounts with Lender (whether R1G rniiy checking, savings, or some other account). This include§ all acoourrta Borrower holds jointly with s°>? which sgt Iff would be prohibit¢d by open in thQ future. However, this does riot include any IRA of Keogh law, to,charge or setoff at1 sums'owing on the indefrtedne against any law. bbtrower euthrotlies Lender, to the extent permitted by applicable. and all'such accounts, COLiXTEPAL. Borrower acknowledges this Agreement is secured by a valid, tide-Listfred fIrsf. mortg?ge lien on real estate acid all cated at 351 6 t3rtner Highway, Newvilie, Cunilierla6d `County, Pi4 17241. This Note is alsti_ second by ih8 corporate irtiprovements lo guarantee of FCM Builders, irtt, evidences has been principal amount of total Once One, of the One of ight str not LINE OF CREDIT.. This advances. n The fol owl g pees n or persons credit.e authorized to request advances and authorize payments undeower entitled further loan revocation credit until Lender receives from Borrower, at Lender's address shown above, bowritten notice rdanea with Attie ndtri?ctions of can authorriiz d peE 4nR°CK (B' MILLER. Borrpwer agrees to be 61316 for all cuiris eitier: (AC sciv, .. . • .: o cred(teil to any iqf $brrower's accounts with Le;r dei.. The unpaid principal balance wing on this AO:e4ihent et arty time may be e"40i:nced by endoj§errtents on this Agreement br by Uridisr's iiriernal records, )riol6iling daily computer print-outs. CONTINUING VALIDITY.. Except as expressly changed by this Agreement, the terns of the. original obligation or obligations, including all agreerrients evidenced or securing the dbligation(s), remain unchanged and In full. force end effect:, Consent by LAB. f to this gree ent does not waive L•Qnder's right to strict performance of the obligation(s) as changed, nor obligate Lender to, MakeY•. retain in this Agreement will constiarte a sa#isfaction of the obligation(s). U 16 "party is aicf Lend telatised by a; liablin wrti gall Any m kesea od endorsers of the original obligation(s), incltding accorttmodation parties, who signed the original obligation ased the endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person ,ihis conditionally given does not sign this Agreement below, then all persons e is to the c anid proviswtts of 'this Agreement or otherwise will not be rel eased representation to Lender that the non sighing party by It. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions'sonal representatives, SUCCESSOR WTERESTS. The terrds of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, per successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any, part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender rimy delay bi forgb enforcing any of rts.r.'ights or remedies under this Agreement without losing thient. Each Borrawdr:understen'ds and agrees or unsecured 'that, wi8i or Withoit hotie? td Borrowed, Ltinder may with raspaot;to tiny other Borrpwer?( -its okotlierwlsa ore ode one or rnor?ettmes the tlrne loons of otharwiee eittAra additl6nsl crsditi (b) after, gorq r riW6, i6how, eAsnd, 9+ cei • for payment or other teams of any indebtedness, including increases and decreases of the rate of interest on the Indebtedness; (c) exchange, . and release any security.., with or without the substitution of new collateral; (d) apply I enforce, we subordinate, fail or decide not.to pq..f act out- r,hiW ori•, -a riottaudicial sate permitted by the terms of e ith , r;,ainnc is of sale :tl erect;. includin g vr iiji IA CHANGE IN TERMS AGREEMENT I nntlnuedl Page 3 toati,Nb: 1500162950 more of Borrower's sureties, ers, or other guarantors on any terms or in any manner may ends 8 credits shall be made on any other indebtedness owing by Lender u h othChoose; and er Borrower. ( Borrower and any other of payments person who o signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, signs othis of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party Agreement, whether as maker, guarantor,' accommodation maker or endorser, shall be released from liability. All such parties agree that Lender release -to l; or impair party real m o renew or perfect Lender's security interest in thenco lateral sand take anyrother action de med ecessaryr by Lenderawithout the cons nt of,or this loan without the consent of or notice to anyone other than the party notice to anyone. All such parties also agree that Lender may modify with whom the modification is made. The obligations under this Agreement are joint and several. If any portion of this Agreement is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Agreement. CONFESSION OF JUDGMENT. BORROWER PROTHONOTARY OR CLERK OF ANY COURT N THHEEE COMMONWEALTH OF PENNSYLVANIA, R ELSEWH RE, O APPEAR AT ANY TIME FOR BON FOR BORROWER AFTER A DEFAULT UNDER THIS AGREEMENT AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER E OF THIS AND ALL ACCRUED JUDGMENT AGAINST SECURINGLTHE OR ADVANCED CBY LENDERA ELATI G TO ANY COLLATERALINTEREST ANY BORROWER FOR THE ENTIRE EXPENDED PRINCIPAL CHARGES ES OM MISSION N BALANCE ©E ACCRUED INTEREST FOR COLLECTION, BUT N ANYCEVENT NOT LESOF TEN S THAN FIVE HUNDRED ODOL.LARS 6500) PRINCIPAL ON SPY OF TH S AGREEMENT VERIFIED BYMAF DAACVITUSHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS THAT EXERCISE ANY OR A A AGAINST BORRO AUTHORITY BHA FULL OF AL AMO NTS DUE UNDER THIS AGR EMENT. SHALL NOT BE SHALL CONTNTINU FROM TIMEDTO TIMME AND AT ALL TIMES. UNTIL PAYMENT II NAUSTED BORROWER HEREBY WAIV ANY RIGHT Ff SON OF JUDGM NT AND STATES THARTOEITHER AYREPR REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS W CONFESSION OF CON JUDGMENT PROVISION. To BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL ALL THE PROVISIONS PRIOR TO SIGNIN i?3 ATBARATE EACH . EACH BORROWER AGREESOTO THE TERMS OF THE AGREEMENTS AGREEMENT, BORROWER READ AND INCLUDING THE THE V ARILE INTEREST THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE T EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: X. z ?• a ,• `` Seall ER FREDERICK C. MILL LENDER: INTEGRITY BANK X C n N. McAdoo, Vice sidetrt IMF, 7A ¢-*N0R WR"L'maex 71f 7M5 A-- - )Atli "M L. dj,S. Va. 5.3LIW 7 Cap. 11M.,a Rr++rmw?. w ?... ?.... .? -... ------- X Witness EXHIBIT "D" ,A" fAWGE IN TERNIR AGREEMT any-particular; loan orCrtem. Lender: integrity Bank Borrower: CONSTANTOM J. Medles (SSN: 19142$336) CarnP Hot Office. DECK C. MILLER (SM: 19648-2678) 33" Market Street 715 S?Indbank Road Cep HIS, PA 17011 Mount Holly spr*rgs. PA 17065 (717) 920-4900 Principal Amount, $172,500.00 Initial Rate: 6.250% Date of Agreement. 008. DESCRIPTION OF CHANGE IN TERMS. The original maturity date of April 20, 2008 is now extended to October 20, 2008. and severally promise to pay to Integrity Sank PROMISE TO PAY. CONSTAIIITINOS J. Mtloos and SICK C. MIU.pJR ('Borrower") jointly t of One Hundred Seventy-two Thousand Five ("Lender"), or order, n lawful money of the United States of Amarka; the pr Feet on the unpaid Seventytw principal balance Hundred & 00/100 Dollars (4172,S00.00)-or so much as.may be outetandYrg, together with Inter eh advance. of each advance. Interest shag be calculated from the date of each advance unto repayment of all outstanding Prinoippl pkis ati.acwued unpaid interest on October 20, 2008. In PAYMENT. Borrower, wol pay uthis la loan in one payment due as of. ach payment deft, begkwdM November 20, yntents ousd urprast . addition, Borrower will pall i t paymttir Pto f aonll the aecr same day uripsW .of ieach mordh after that. Unless otherwise agreed or required by applicable l a ?yyo, paymsvbseauQlurta ent wiol ?be arr -b eaPPPwd ayme iNntst s to any accrued unpaid Interest; then to Principal; then to any unpaid collection costs; and then to y s Interest on this loan Is computed on a 366130 simple bvterest basis: that Is, by applying the ratio of the annual interest rate PP?? balance an late, charge number `• of days in year . rnuMpoed by the outstanding PfIncipal balanos; rnultlplod by the actual number of days the principal l over t is outstanding. Borrower will pall Lender at Lender's address shown above or at such other piece as Lender may designate in writing. VARIABLE INTEREST RATE. Thedaterest rate on this loan is subject to change from time to time based on changes in an independent index which is the New York Prime Rata of Interest. The New York Prime Rate of interest shall mean the interest rate per annum announced from time to time in various business journals, such as The Wall Street Journal, as the 'Prime Rate of Interest". The New York Prime Rate of Interest is index, and established at, at Nowlo York the Prindex. ime (the he "Index"). Now York Prime Rate The Index is of Interest is the necessarily Bank's. lowest rate of Interest. The interest rate shall fl lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate .a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more on o is 5 .250 often than each Day. Borrower understa to the. unpaid principal balance during this loan wil ber. est a rate of 11.000 Thepercentage point over the IInndex, annum. The interest rate to be 0% per annum. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum resulting in an initial rate of 6.260% rate allowed by applicable law. epillforttbe PREPAYMENT. Borrower agrees that-all ban foes and other prepaid finance charges are earned a sty as oethe dateed byawan and subject to refund upon early payment (whether voluntary or as a result of default), except foregoing, Borrower may pay without penalty all. or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments marked "pad unpaid , ' without eactohur , early payments will reduce the principal balance due. Borrower agrees not to send Lender payments Lender's rig this sorrow language. If Borrower sends any further payment, t owed tmay o accept ?? All without concerning disputed amounts, including Borrower will remain obligated to pay payment in full" of the amount owed or that is tendered any check or other payment instrument that Indicates that the payment constitutes "peYm. with other conditions or limitations or as full satisfaction of a disputed amount must be malted or delivered to: lntsgrity Bank, 3314 Market Street Camp Hill, PA 17011. INTEREST RESERVES. Borrower authorizes Lender to place $11,000.00 of th a Principal Amount as an interest reserve, which is an estimate of the interest due on the Note ("Interest Reserve"). All interest payments shall be paid from the Interest Reserve. Lender may automatically deduct accrued unpaid interest from the Interest Reserve. interest will accrue, as described in this Note, pay amounts deducted fromt he Interest due Reserve. In the event the interest due under this Note exceeds the Interest Reserve, rrower will accrued according to the terms of this Note. Upon maturity, Lender will not advance or disburse the remaining Interest Reserve, if any, to Borrower. The principal due upon maturity will not include any remaining Interest Reserve. scheduled payment or $10.00, LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly whichever Is greater. INTEREST AFTER DEFAULT. Upon default,. including failure to pay upon final. maturity, the Interest rate on this loan shall be increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to. each succeeding interest rate change that would -have applied had there been no default. If judgment is entered in connection with this Agreement, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an Event of Default under this Agreement: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower falls to comply with or to perform any other term, obligation,. covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any: term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Defauk in Favor of Third.Pertles. Borrower defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to perform Borrower's obligations under this Agreement or any of the Related Documents. False Stirtemerrts. Any warranty, represantation or statement made or furnished to Lander by Borrower or on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. as a any insoype of lvency Death or Insolvency. The death of Borrower or the dissolution or termination of Born we existe fnc the bengoing efit b u sine creditorsss, assignment , of Borrower, the appointment of a receiver for any part of Borrower's property, any I.% -N CHANGE IN TERMS AGREEMENT page 2 'Loan No: 1500162950 (Continued) creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency taws by or against Borrower.. Crdditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture ?proceedin s, whether by j any lcproosedinij securing the repossession or any other method, by any creditor of Borrower or by any go with Lan However Indebtedness. This Includes a garnishment of any of Borro??Os4accounts, eas h c???ng a osason ounts,s of the claim which Is the i sEvent b of of crecit shall ortapply if there a good faith wer ditpute gives by the derr monies or aeaauetyr bond n* for gthe and or f uture ?roaeedling, In aWcq of determiiinned by ender, iinn its sole die etlon,' as being Len an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any ness Guarantor dies or becomes incompetent, or revokes or disputes the validity of, o not liability under, toany permit Guaranty the G f the ndebteddte to evidenced by this Note, In the event of a death, Lender, at its option, may, but shall be assume unconditionally the obligations arising under t=ie guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition) or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity.. Lender in good faith believes itself insecure. Cure ProvItSoIns. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same r demanding cure of su=ch default th(1) Pcuresithe def$ It within ten (10)ndays; or cured it theoccu e requires more thene tennotice 0) days, Laftolo derfa immediately initiates steps which Lender deems EniiLender's rsoducdiscretion nceb as soon astrasonabty practic 1?d thereafter continues and " completes all reasonable and nedessary steps LENDEii'S -AldkTS. Upon default;16nder may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Agreement and all accrued unpaid interest immediately due, and then Borrower will pay that amount. AT'T'ORNEYS' FEES: EXPENSES. Lender may hire or pay someone else to help coUedt this Aoreemaht If $otrower does not pay. Borrower will pay Lender that amount. This inctudas, eiiblept"to arhy limits under "applicable h Lerider'a reasonable attorneys', fees and Lerder's legal barn tcy proceedings {lncludith , in g re bkoidg by e pPa6te law,.Bpdtti*6F also will pay any ¢. court costs efforts to expenses, whether or not there is a lawsuit,..Ion1,in e es for up modify or :vaaatA, anjf automatic stay oa w{rrjunction .ate apPe aii. If not pro addition to all other sum `s providd by JURY MrAI)FER. Lander and Borrower hereby waive the right to any jury trial in any action, proceeding, or cote terciairn brought by either Leader or Borrower against the other. laws of he Obr?nTwb th o Pennsylania without regard ais confGom of l law to Leettlar and, to the extent tiat "irnOted by lederi3l law, proviisions. This Agreementhas been accepted by Lenderi laws in of th fife. the Cammonweelth of Pennsyhre CHOICE OF VENUE. If {fiere is a la=wsuit, BorroWeV agrees upon Lender's request to submit to the jurisdiction of the-courts of Cumberland Counfy, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 if Borrower makes a payment on Borrower's loan and the check or preatii orized charge with which Borrower pays is later dishonored. MGT,, Of SETOW. To the extent permitted by applicable law, Lender rekerves a right of setoff in all Borrower's accounts with lender (whether someon ointly with all qccoulrd, includ and checking, ravings, e. orHoweversome doesnriot inciluda a y IRA or Keogh accounts, olds j Y a? u^ts f° ewhich setoff would be pr hibited by trust law. in Botfierrowfer future. autfsorizes Lender, to the extent . permitted by applicable law, to charge or setoff all sun=g "owing on the indebtedness e'gaihsi any and all'such accounts. COLLATERAL. Borrower acknowledges this Agreement is secured by. a vaFd, title-lnsured fhr$t . mortgage lien on real estate aM all improvements located at 3516 R''tinor Highway, Newvll(e, Cuthbertarid "County, PA 11241. This Note Ti alit" secured by the coiporate Borrower advancad gust antae of PCM Builders., Inc, This has been of pri amount it. Once the line, of straig evidences not LINE to Rfurther loan ad ances.ntThe fob owl g persontor personsdare authorized totreque t advancesi and authorize payments under the I ne of such ve, cre tId Borrower, in author credit until L?ow aerr sCeeessto be l able for al suhhns aritfye dd (Ale eshown dvaf6d oh obco dani:nwith reihsvocation of an author=ized pers 11A on or (B) 1lLR. Bros g credited to any of t#brrower's accounts with lender. The urhQaid principal balance oiw(ng on this Ag[eeliien[ at any time may be ev'id'ended by endoiserherits on this Agisbm ht cr lily Lender's k6rnal records,. )rioliidiing daily competer print-outs. CONTINt1114G VAL=IDITY. Except thas expressly changed by this Agreement, the terms of the orrnal or e oblioii( )' r8rii b uncharigetl ei in full. force and effect iBCbns A byiLander to th soAgreement does agreerneiht§ evidenced or securing ga futiue charhge in terms. Nothing not waive Lender's right to strict performance of the obligation(s). as changed, nor obligate Lander to: make_nY" .. . h the intention of Lender to retain writing. all m meeker and released by as Lender in liable parties in this Agreement will constitute a satisfaction of the obligationts) is endorsers of the original obligation(s), including abconlmodatioh parties, unldss a party Pr eased by vi not be akers eement including then lilpersons si=gning below acknowledge rth at this Agreemelrts glvwho anseonditionally, baased Iona the endorser, des not sg this Agr,e representation under that the non-sighing party consents to the changes and provisions of this Agr?gpment or otherwise will fiat be released v Init by it. This waiver apples not only to any ny initial extension, modification or release, but also •to all such subsequent actions. SUCCESSOR WTERE$TS. The terms of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. fact Agreement. &M rest not Will Lander MISCEUJkNEOUS y or tog PhOVISIONS. tot ?ghtfothis mades undter cannot be enforced, tNe this Agreement without l si g them. Ea h BorroWgr:UnderkMds and grew nhay delay or oi t hoti notic fig g any a other Borrower (a) make aria or more additional seCtired or unsecured that, ui??i or Without Without ce to gbfrawet; Lander may with respect; nS+ ' ' Wins' e* otherwise ejaiirki additional credit: (b) after, ciirrikdmiie, rahow,.e dec Aeiw, keeled ate. or otherwise o ilge one of more timea the"tire for payment or o=ther terms of any indebtedness, including increases and reaseaof othe rate of f without thersub ostitutioni ddebts of newcoQateralr (d)ha PiY the terms of the e- forbe, waive, subordinate, fall or decide not.to pertect, and ralei se any security, : wr-th udicial sale ermittad by suafi sscurlty and direct the order or ma?ia_?r'.of. sale-,ffiereof;9in atudiri??wIthoUi"limifa iaairy riot;-j__W_ _? "" . rontrblliiha security aariePm'ahr?- t,c 1 Pririwr rn ire riiei rdtinn :*+ f- J4 (rr mIft ed). P840 3 rlfo: 160171629®0 oiao? aaA tt} d"jAna how, + 46 +nY "me ar, in SKY told wr ? • 9orml Ow CAW mKbS ways awrf . + ' .or alhst? 114 inY vdW IM*I*s *W" dsw?srid IN OrN thu p.r?rlWam morn of t3o+ro apallf? iN?aN tss a%wwdbVIaw#W" ??• no ? 1?r arul what appYoa + of p'w"°r" f. WK.. °' lids Alm to ttt• one Uni otl wwiw ?* Ow" to ih vrtMs p.raon v?ho. cipna. . ?M° sr of Uis or embo a, Sw W r?? r or co/wr w or Vapair, fa 1nz Iie of pwly or of d[N+onor of tMa? t km of relow o by od • sr a i -than *0 D?`1 W101,01 r N Il?wr wamlor laoOHMr itprNr . for Im tares o aarlan d w aiao to siyww md v*w Of or =dim n,ay rsww+H.a r'r xsrrsat fa tlra•a ? ?n pprtlan of th* AoraWfwk Is 1w & apart aq P JIl[ saal+ paisa sdao aAa or aaY °f tt.. ?• a, THE nulloa w ??' to loads. Tha abMOS? „? alyatr+ tom. ?. h will aa[ ?? Y A gyp. Tp AlPiAit D?T Ai4Y TM?AE won fwd to ba ?snlorNaWa. - --° Nf9E6Y ? .,? .rae+sirL.VANA? ? ALES. ? ?R A?iD ALL l t 6 TtiE TI i . AtN`Af' Till. I)M-1A 4#wm AIO AllTMOtit 1 Y? ?.,*.r?tY_ tlttf p i iAllY I44NE TO . C A .1 CPU= IM ijibricAA r f EfA J A71Mr OF Lamm ;mQawtw vy iwWPONWIT L"' 'pilld4t3. w"GR*j"Hi> L ON Mwmmww pi Tfili i 1T, Ira OD - AU. wo Mid Tom* owe OF t1lll T• "WE THE wow, -OM 80. T1i? A110 tWAft- 00Ma?'E /M ? TiNT - T6 LAW. x wtu+.• ?edner? • =L7 x A fi VERIFICATION I, Robert K. Day, hereby verify that I am the Executive Vice President of Integrity Bank, and, as such, I am authorized to verify the averments of the foregoing document are true and correct to my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. Date: X74-,,A(A.2),,"? B Y: Rob K. Day, Executive Vic President Integrity Bank -3 co co -? 0 SHERIFF'S RETURN - REGULAR CASE NO: 2009-00997 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INTEGRITY BANK VS MALLIOS CONSTANTINOS J ROBERT BITNER Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon MALLIOS CONSTANTINOS J the DEFENDANT at 0018:20 HOURS, on the 20th day of February , 2009 at 715 SANDBANK ROAD MOUNT HOLLY SPRINGS, PA 17065 CONSTANTINOS MALLIOS by handing to DEFENDANT a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 6.30 Affidavit .00 Surcharge 10.00 nn .J Z . .J V Sworn and Subscibed to before me this day of , So Answers: ,ee /Soo-<, ?11 downpw ---- ??z R. Thomas Kline 02/23/2009 REAGER & ADLER B Deputy Sherif A.D. r? ,,--, ,sue ? ?? -°a ; ??, . ?:, --- ?.=? w,?, a INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION CONSTANTINOS J. MALLIOS, : NO. 09-997 Civil Term Defendant CERTIFICATE OF SERVICE I, John H. Pietrzak, verify that on March 17, 2009, I caused the Notice, which is attached hereto as Exhibit A, to be placed in the United States mail, first class, postage prepaid and addressed to Plaintiff, Constantinos J. Mallios, 715 Sandbank Road, Mount Holly Springs, PA 17065. A copy of the certificate of mailing is attached hereto as Exhibit B. Respectfully submitted, REAGER & ADLER, P.C. Jo . Pietrzak, E 're Attorney I.D. No. 79538 2331 Market Street Camp Hill, PA 17011-4642 Telephone: (717) 763-1383 Attorney for Plaintiff, Integrity Bank INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CONSTANTINOS J. MALLIOS, Defendant CIVIL ACTION : NO. 09-997 Civil Term IMPORTANT NOTICE TO: Constantinos J. Mallios 715 Sandbank Road Mount Holly Springs, PA 17065 DATE OF NOTICE: March 17, 2009 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) Respectfully submitted, RE GER & ADLER, P.C. i a0% 0 1 " 0, Ar Jo. Pietrzak, EsqqjK- AWrney I.D. No. 79538 2331 Market Street Camp Hill, PA 170114642 Telephone: (717) 763-1383 E*ibi f A U.S. POSTAL SERVICE CERTIFICATE OF MAILING Affix 1 hs "s1" and or meta postapa and A BE USED FOR DOMESTIC AND INTERRNATIONAL MAIL, DOES NOT post "q* of -PR ?' "a7 Posmuster tot current ... fes. Received Fmm: s wrTi pp? wle wtwEr srrwEs let- - r\CQ 02 If $01.100 2331 0 MAR 17 2009 C'am? tii11, pA 17f?? 1 MMAILMFROI r.OQ€17011 f One piece of ordinary mal addressed W. Ma[!?'os 0-onsfan4iiias 715 Scxndloank g3 n- - i ?-i' PA- I ? UCoS .? ?`PS Form 3$17, January 2001 "" rrt r - ; ,- xM rn J? ..yam f. ? t,uJ S . cn WAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: JpietrzakaReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: TwilliamsaReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY11 PENNSYLVANIA V. CIVIL ACTION CONSTANTINOS J. MALLIOS, Defendant : NO. 09-997 PRAECIPE FOR ENTRY OF DEFAULT JUDGMENT TO THE PROTHONOTARY: Please enter a default judgment in favor of Plaintiff, Integrity Bank, and against the Defendant, Constantinos J. Mallios, in the amount of $174,786.53 for failure to plead to Plaintiff s Complaint in Mortgage Foreclosure. The undersigned hereby certifies that a 10-Day Notice of Plaintiff's intent to file the instant Praecipe for default judgment for failure to respond to Plaintiffs Complaint was mailedto Defendants. A true and correct copy of the aforementioned Important Notice is attached hereto as Exhibit A. Date: March 31, 2009 Res ectfully s itted, 1?- Jo7W H. Pietrzak, Es uire Attorney I.D. No. 79538 2331 Market Street Camp Hill, PA 17011 (717) 763-1383 Attorneys for Plaintiff INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION CONSTANTINOS J. MALLIOS, : NO. 09-997 Civil Term Defendant IMPORTANT NOTICE TO: Constantinos J. Mallios 715 Sandbank Road Mount Holly Springs, PA 17065 DATE OF NOTICE: March 17, 2009 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE .OF. THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND?OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County. Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) Respectfully submitted, REA,.GER & ADLER, P.,C. J01 4H. Piet tak, EsgvRe A rney I.D. No. 79538 - 2331 Market Street Camp Hill, PA 17011-4642 Telephone: (717) 763-13183 Flxhibif A U.S. POSTAL SERVICE CERTIFICATE OF M LING MAY BE USED FOR DOMESTIC Ah10 iNTERNATJONAI MAIL, DOES NOT P(?qj PROVIDE FOR IN RAN t R RecaNed From: Rea,Qer4 A,4 le ," y ?? , • .23 3 021P n OA Me FROM One piece of ordinary malt addressed to: 66n f ' Mat 11'a n.b kR , Affix fee here In stamps or meter postage and Post mark, Inquire of Postmaster for current fee. +vawv Baum $ 01.100 IOR17 2009 WIDEe ?n11 PS Forth 3817, January 2001 (j 3wkvR 1 2: 52 %-' 4,80W 4 IMF. oo PO A TTY e.(*a&4gl eT aAo w Mat" M REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION CONSTANTINOS J. MALLIOS, NO. 09-997 Defendant NOTICE OF DEFAULT JUDGMENT TO: Constantinos J. Mallios 715 Sandbank Road Mount Holly Springs, Pennsylvania 17065 You are hereby notified that on -/ 1 D , jud ent by default was entered against you in the sum of $174,786.5 for failure to plead to PI intiff s Complaint in Mortgage Foreclosure. Date: P thonotary YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) I hereby certify that the following is the last known address of the Defendants: Constantinos J. Mallios 715 Sandbank Road Mount Holly Springs, Pe Iv i 79 Jo H. Pietrzak Attorney for Plaintiff .,._ y A Defendido/a Por este medio sea avisado que en el dia de , 2000, un fallo por admision fue registrado contra usted por la cantidad de $ del caso, antes escrito. Fecha: Protonotario LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI No TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA A LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTE? CIA LEGAL. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) J H. Pietrzak A ogado del Demandante REAGER & ADLER, P.C. BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams&ReagerAdlerPC.com BY: WAYNE S. MARTIN, ESQUIRE Attorney I.D. No. 208078 Email: WmartinAReaizerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff Integrity Bank INTEGRITY BANK, Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA V. CONSTANTINOS J. MALLIOS, Defendant : CIVIL ACTION : NO. 09-997 PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Kindly enter the appearance of Wayne S. Martin, Esquire of the law firm of Reager & Adler, P.C. as an attorney for the Plaintiff in the above-captioned action. Respectfully submitted, REAGER & AD , P. Dated: May 6, 2009 Tho as O. Williams, Esquire Attorney I.D. No. 67987 Wayne S. Martin, Esquire Attorney I.D. No. 208078 i IL'i u_ ii 2069 MAY 13 PH 2: 12 REAGER & ADLER, P.C. BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a-),ReagerAdlerPC.com BY: WAYNE S. MARTIN, ESQUIRE Attorney I.D. No. 208078 Email: WmartinaReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS, Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION CONSTANTINOS J. MALLIOS, NO. 09-997 Defendant PRAECIPE FOR WRIT OF EXECUTION MORTGAGE FORECLOSURE TO THE PROTHONOTARY: Please issue a Writ of Execution in the above matter to the Sheriff of Cumberland County, for debt, interest and costs, upon the following described property of the Defendant. Leyy Mpon and sell all that certain tract of real estate located at 35.16 Ritner Highway in Newville, Cumberland County. Pennsylvania owned by the Defendant, Constantinos J. Mallios as more fully described in Exhibit "A" attached hereto and made a part of hereof by reference. Amount due: Interest from April 1, 2009: [Costs and Attorney's fees] Total $174,786.53 $ 1,140.16 (plus 20.36 per day) To be added $175,926.69 Respectfixi'ry sktl fiil eA .-, Date: May 26, 2009 Thdmas O. Williams, Esquire Attorney I.D. No. 67987 2331 Market Street Camp Hill, PA 17011 (717) 763-1383 Attorneys for Plaintiff EXHIBIT A ALL THAT CERTAIN tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common corner Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes 05 seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of the Lot No. 20 on a Subdivision Plain for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. BEING THE SAME PREMISES which David L. Wilson and Donna J. Wilson, husband and wife, by their deed dated October 20, 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1216, granted and conveyed unto Frederick C. Miller, adult man with an undivided one half interest, Constantinos J. Mallios and Elaine Mallios, husband and wife, with an undivided one half interest. ALSO BEING THE SAME PREMISES which Elaine Mallios, married woman, by her deed dated October 20, 2006, and recorded on October 23, 2006 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1220, granted and conveyed her interest unto Contantinos J. Mallios, married man. UNDER AND SUBJECT to all conditions, restrictions, and protective covenants, easements and rights-of-way of record, including, but not limited to the Declaration of Restrictive and Protective Covenants dated December 3, 1986, and recorded in Cumberland County Miscellaneous Book 326, Page 786 and subject to a fifteen feet wide utility and drainage easement along all property lane and right-of-way lines, and other matters of record or that which a physical inspection pr survey of the premises would reveal. TOGETHER with all and singular the buildings, improvements, ways, woods, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances to the same belonging or in anywise appertaining; and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and of every part and parcel thereof, AND ALSO all the estate, right, title, interest, use, possession, property, claim and demand whatsoever of the Grantors both in law and in equity, of, in and to the premises herein described and every part and parcel thereof with the appurtenances. OF 1*6 Fif -60 OFF tae Pi? -rAP aWq M P`i Pa w, 40 e'umjo PA ctd3 08t4.oc Po ATT 4 31.30 CBF 78.5a 14-00 a.-.5 o 6.3.W - PID Al" 4,a•Ce C • 60 +-?• r?r? aa?b sa 4 ./ w INTEGRITY BANK, Plaintiff V. CONSTANTINOS J. MALLIOS, Defendant AFFIDAVIT PURSUANT TO RULE 3129 (Affidavit No. 1) INTEGRITY BANK, Plaintiff in the above action, by its attorney, THOMAS O. WILLIAMS, ESQUIRE, sets forth as of the date the Praecipe for the Writ of Execution was filed the following information concerning the real property located at 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania. 1. Name and address of Owner(s) or reputed Owner(s): Name CONSTANTINOS J. MALLIOS IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION : NO. 09-997 Last Known Address (if address cannot be reasonably ascertained, please indicate) 715 SANDBANK ROAD MOUNT HOLLY SPRINGS, PA 17065 2. Name and address of Defendant(s) in the judgment: Same as above 3. Name and last known address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) THE UNITED STATES OF AMERICA United States Attorney's Office 228 Walnut Street Harrisburg, PA 17108 PENNSY SUPPLY INC. 1001 Paxton Street Harrisburg, PA 17105 T R ROLLASON BUILDER P. O. Box 62110 Harrisburg, PA 17106-2110 JOHN MUMMA and MUMMA ELECTRIC 3820 Trindle Rd Camp Hill, PA 17011 -ft DRIVEKORE INC. INTEGRITY BANK 101 Wesley Drive PO Box 2004 Mechanicsburg, PA 17055 3345 Market Street Camp Hill, PA 17011 4. Name and address of last recorded holder of every mortgage of record: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) INTEGRITY BANK 3345 Market Street Camp Hill, PA 17011 5. Name and address of every other person who has any record lien on the property: Name None. Last Known Address (if address cannot be reasonably ascertained, please indicate) 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) FREDERICK C. MILLER JR'S DRIVEWAY SVC INC. JOE RODRIGUEZ 84 LUMBER COMPANY 1510 Thompson Lane Mechanicsburg, PA 17055-6732 516 North Reeser Drive York Haven, PA 17370 516 North Reeser Drive York Haven, PA 17370 200 Route 519 Eighty Four, PA 15330 7. Name and Address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) 4ft GE MONEY BANK PA DEPARTMENT OF REVENUE THE CARTER LUMBER COMPANY 950 Forrer Boulevard Kettering, Ohio 45420 Bureau of Compliance Lien Section PO Box 280948 Harrisburg, PA 17128-0948 601 Tallmadge Road Kent, Ohio 44240 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that f e tatements herein are made subject to the penalties of 18 Pa. C.S. Sec. 4904 related t n f 1 1 to authorities. Date: May 26, 2009 THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No.: 67987 Reager & Adler, PC 2331 Market Street Camp Hill, PA 17011 Phone: (717) 763-1383 Attorney for Plaintiff FILEO oFFiee or -Titer Peal KOL-OT-Awf 8Lcoq K A`/ 6l(o Pm l8 '1 O e,w" co PA REAGER & ADLER, P.C. BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliamsa ReagerAdlerPC.com BY: WAYNE S. MARTIN, ESQUIRE Attorney I.D. No. 208078 Email: WMartinfa,ReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Aggrne s for Plaintiff, Integrity Bank INTEGRITY BANK, Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA V. CONSTANTINOS J. MALLIOS, Defendant : CIVIL ACTION . NO. M - 997 CERTIFICATION THOMAS 0. WILLIAMS, ESQUIRE, hereby verifies that he is an attorney for the Plaintiff in the above-captioned matter, and the premises are not subject to the provisions of Act 91 because it is: () an FHA mortgage () non-owner occupied (x) vacant () Act 91 procedures have been fulfilled This certification is made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. T MAS 0. WILLIAMS, SQUIRE Attorney for Plaintiff FiLto oFPCet W l It t P"T"KC .>OrA Ay 40CA M" oIG Pu laNo aVA Ou.&,6 Co , PA t REAGER & ADLER, P.C. BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a7ReagerAdlerPC.com BY: WAYNE S. MARTIN, ESQUIRE Attorney I.D. No. 208078 Email: WMartin6-DRe erAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CONSTANTINOS J. MALLIOS, Defendant : NO. 09-997 NOTICE OF SHERRIFF'S SALE OF REAL PROPERTY PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.2 TO: Constantinos J. Mallios, 715 Sandbank Road, Mount Holly Springs, PA 17065 Your real estate situated in Newville, Cumberland County, Pennsylvania, known as 3516 Ritner Highway, Carlisle, Pennsylvania, as described in Exhibit "A" attached is scheduled to be sold at Sheriff's sale on Septemeber 2, 2009 at 10:00 a.m. in the Cumberland County Courthouse, Carlisle, Pennsylvania to enforce the Court Judgment of $174,786.53 obtained by Integrity Bank against you. THE LOCATION of your property to be sold is: 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania. THE JUDGMENT under or pursuant to which your property is being sold is docketed to: No. 09-997 in the Court of Common Pleas of Cumberland County, Pennsylvania. The name and address of the owner or reputed owner of this property is: Constantinos J. Mallios, 715 Sandbank Road, Mount Holly Springs. Cumberland County, Pennsylvania. t A SCHEDULE OF DISTRIBUTION, being a list of the person and/or governmental or corporate agencies being entitled to received part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that held mortgages and municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of the sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, Pennsylvania, Cumberland County Courthouse, Carlisle, Pennsylvania, Telephone (717) 240-6390. NOTICE OF OWNER'S RIGHTS YOU MAY BE ABLE TO PREVENT THIS SHERIFF'S SALE To prevent this Sheriff s Sale you must take immediate action: The sale will be cancelled if you pay to the Sheriff of Cumberland County the amount of the judgment plus costs. To find out how much you must pay, you may call the Sheriff of Cumberland County at (717) 240-6390. 2. You may be able to stop the sale by filing a petition asking the Court to strike or open the judgment, if the judgment was improperly entered. You may also ask the Court to postpone the sale for good cause. 3. You may also be able to stop the sale through other legal proceedings. You may need an attorney to assert your rights. The sooner you contact one, the more chance you will have of stopping the sale. YOU MAY STILL BE ABLE TO SAVE YOUR PROPERTY AND YOU HAVE OTHER RIGHTS EVEN IF THE SHERIFF'S SALE DOES TAKE PLACE 1. If the Sheriff's Sale is not stopped, your property will be sold to the highest bidder. You may find out the price bid by calling the Sheriff of Cumberland County at (717)240- 6390. 2. You may be able to petition the Court to set aside the sale if the price was grossly inadequate compared to the value of your property. 3. The sale will go through only if the buyer pays the Sheriff the full amount due in . „ the sale. To find out if this has happened you may call the Sheriff of Cumberland County at (717)240-6390. 4. If the amount due from the buyer is not paid to the Sheriff, you will remain the owner of the property as if the sale never happened. 5. You may be entitled to a share of the money which was paid for your property. A schedule of distribution of the money bid for your property will be filed by the Sheriff within thirty (30) days of the sale date. This schedule will state who will be receiving that money. The money will be paid out in accordance with this schedule unless exceptions are filed with the Sheriff within ten (10) days after the date of the filing of this schedule of distribution. 6. You may also have other rights and defenses, or ways of getting your property back, if you act immediately after the sale. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LWAYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE LISTED BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) Respectfully submitted, REWApf?ER Date: May 26, 2009 Tho s O. Williams, Esquire Attorney I.D. No. 67987 Wayne S. Martin, Esquire Attorney I.D. No. 208078 Attorneys for Plaintiff, Integrity Bank 0 . 'fir THE t i-`Uj KAY 26 F012. 4J ?d ?? ad s Asa WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 09-997 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due INTEGRITY BANK, Plaintiff (s) From CONSTANTINOS J. MALLIOS (1) You are directed to levy upon the property of the defendant (s)and to sell SEE LEGAL DESCRIPTION. (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $174,786.53 L.L. $.50 Interest from 4/01/09 - $1,410.16 (plus $2036 per day) Atty's Comm % Due Prothy $2.00 Atty Paid $153.30 Other Costs to be added Plaintiff Paid Date: 5/26/09 Curtis R. Lo g, Prothonotary (Seal) By: 'IT Deputy REQUESTING PARTY: Name: THOMAS O. WILLIAMS, ESQUIRE Address: REAGER & ADLER, PC 2331 MARKET STREET CAMP HILL, PA 17011 Attorney for: PLAINTIFF Telephone: 717-763-1383 Supreme Court ID No. 67987 Sheriffs Office of Cumberland County R Thomas Kline Sheriff Ronny R Anderson Chief Deputy Jody S Smith Civil Process Sergeant Edward L Schorpp Solicitor ~,~ti~*~tr of ~~c~li~r/,Thb QFr"3~E =F Th,~, ar,~}~I€F F'I FLT--C , ~,c ZQ~~ ~LE~ ~ ~ p~~ ~: ~ tr GLrrl4! i ~ ;` i'Y1'r Integrity Bank vs. Case Number Constantinos J Mallios 2009-997 SHERIFF'S RETURN OF SERVICE 06/20/2009 11:48 AM -William ,Deputy Sheriff, who being duly sworn according to law, states that on June 20, 2009 at 1144 hours, he posted a true copy of the within Real Estate Writ, Notice, Poster and Description, in the above entitled action, upon the property of Constantinos J. Mallios, located at, 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania according to law. 06/20/2009 10:18 AM -William Cline, Deputy Sheriff, who being duly sworn according to law, states that on June 20, 2009 at 1014 hours, he served a true copy of the within Real Estate Writ, Notice and Description, in the above entitled action, upon the within named defendant, to wit: Constantinos J. Mallios, by making known unto, Constantinos J. Mallios, personally, at, 715 Sandbank Road, Mount Holly Springs, Cumberland County, Pennsylvania its contents and at the same time handing to him personally the said true and correct copy of the same. R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned STAYED, per instructions from Thomas O. Williams. 08/31/2009 Property sale cancelled on 8///31/2009 SHERIFF COST: $4,780.52 t/ ti~/5!~ 9 September 14, 2009 SO ANSWERS, ~.i%4s''~'~'. R THOMAS KLINE, SHERIFF a7 -~ ~ _ b"o 1' 1- C:12 ~19z`~ ~ a 36 ~ ~~ r INTEGRITY $ANK, Plaintiff v. CONSTANTINOS J. MALLIOS, Defendant IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION N0. 09-997 AFFIDAVIT PURSUANT TO RULE 3129 (Affidavit No. 1) INTEGRITY BANK, Plaintiff in the above action, by its attorney, THOMAS O. WILLIAMS, ESQUIRE, sets forth as of the date the Praecipe for the Writ of Execution was filed the following information concerning the real property located at 3516 Ritner Highway, Newville, Cumberland County, Pennsylvania. 1. Name and address of Owner(s) or reputed Owner(s): Name Last Known Address (if address cannot be reasonably ascertained, please indicate) CONSTANTINOS J. MALLIOS 715 SANDBANK ROAD MOUNT HOLLY SPRINGS, PA 17065 2. Name and address of Defendant(s) in the judgment: Same as above 3. Name and last known address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) THE UNITED STATES OF AMERICA United States Attorney's Office 228 Walnut Street Harrisburg, PA 17108 PENNSY SUPPLY INC. 1001 Paxton Street Harrisburg, PA 17105 T R ROLLASON BUILDER P. O. Box 62110 Harrisburg, PA 17106-2110 JOHN MUMMA and MUMMA ELECTRIC 3820 Trindle Rd Camp Hill, PA 17011 r DRIVEKORE INC. INTEGRITY BANK 4. 101 Wesley Drive PO Box 2004 Mechanicsburg, PA 17055 3345 Market Street Camp Hill, PA 17011 Name and address of last recorded holder of every mortgage of record: Name -Last Known Address (if address cannot be reasonably ascertained, please indicate) INTEGRITY BANK 3345 Market Street Camp Hill, PA 17011 5. Name and address of every other person who has any record lien on the property: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) None. 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) FREDERICK C. MILLER JR'S DRIVEWAY SVC INC. JOE RODRIGUEZ 84 LUMBER COMPANY 1510 Thompson Lane Mechanicsburg, PA 17055-6732 516 North Reeser Drive York Haven, PA 17370 516 North Reeser Drive York Haven, PA 17370 200 Route 519 Eighty Four, PA 15330 7. Name and Address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Last Known Address (if address cannot be reasonably ascertained, please indicate) GE MONEY BANK PA DEPARTMENT OF REVENUE THE CARTER LUMBER COMPANY 950 Forrer Boulevard Kettering, Ohio 45420 Bureau of Compliance Lien Section PO Box 280948 Harrisburg, PA 17128-0948 601 Tallmadge Road Kent, Ohio 44240 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that f e atements herein are made subject to the penalties of 18 Pa. C.S. Sec. 4904 related t f i i to authorities. Date: May 26, 2009 _~,C TI~OMAS O. WILLIAMS, ESQUIRE Attorney I.D. No.: 67987 Reager & Adler, PC 2331 Market Street Camp Hill, PA 17011 Phone: (717) 763-1383 Attorney for Plaintiff REAGER & ADLER, P.C. BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a,ReagerAdlerPC.com BY: WAYNE S. MARTIN, ESQUIRE Attorney I.D. No. 208078 Email: WMartin(a~Rea eg rAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Plaintiff, Inte~rit~Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. CONSTANTINOS J. MALLIOS, Defendant NO. 09-997 NOTICE OF SHERRIFF'S SALE OF REAL PROPERTY PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.2 TO: Constantinos J. Mallios, 715 Sandbank Road, Mount Holly Springs, PA 17065 Your real estate situated in Newville, Cumberland County, Pennsylvania, known as 3516 Ritner Highway, Carlisle, Pennsylvania, as described in Exhibit "A" attached is scheduled to be sold at Sheriff s sale on Septemeber 2, 2009 at 10:00 a.m. in the Cumberland County Courthouse, Carlisle, Pennsylvania to enforce the Court Judgment of $174,786.53 obtained by Integrity Bank against you. THE LOCATION of your property to be sold is: 3516 Ritner Highway, Newville, Cumberland County, Penns l~vania. THE JUDGMENT under or pursuant to which your property is being sold is docketed to: No. 09-997 in the Court of Common Pleas of Cumberland County, Pennsylvania. The name and address of the owner or reputed owner of this property is: Constantinos J. Mallios, 715 Sandbank Road, Mount Holly SQrings, Cumberland Count Penns l~vania. A SCHEDULE OF DISTRIBUTION, being a list of the person and/or governmental or corporate agencies being entitled to received part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that held mortgages and municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of the sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, Pennsylvania, Cumberland County Courthouse, Carlisle, Pennsylvania, Telephone (717} 240-6390. NOTICE OF OWNER'S RIGHTS YOU MAY BE ABLE TO PREVENT THIS SHERIFF'S SALE To prevent this Sheriff s Sale you must take immediate action: 1. The sale will be cancelled if you pay to the Sheriff of Cumberland County the amount of the judgment plus costs. To find out how much you must pay, you may call the Sheriff of Cumberland County at (717) 240-6390. 2. You may be able to stop the sale by filing a petition asking the Court to strike or open the judgment, if the judgment was improperly entered. You may also ask the Court to postpone the sale for good cause. 3. You may also be able to stop the sale through other legal proceedings. You may need an attorney to assert your rights. The sooner you contact one, the more chance you will have of stopping the sale. YOU MAY STILL BE ABLE TO SAVE YOUR PROPERTY AND YOU HAVE OTHER RIGHTS EVEN IF THE SHERIFF'S SALE DOES TAKE PLACE 1. If the Sheriff s Sale is not stopped, your property will be sold to the highest bidder. You may find out the price bid by calling the Sheriff of Cumberland County at (717)240- 6390. 2. You may be able to petition the Court to set aside the sale if the price was grossly inadequate compared to the value of your property. 3. The sale will go through only if the buyer pays the Sheriff the full amount due in the sale. To find out if this has happened you may call the Sheriff of Cumberland County at (717)240-6390. 4. If the amount due from the buyer is not paid to the Sheriff, you will remain the owner of the property as if the sale never happened. 5. You may be entitled to a share of the money which was paid for your property. A schedule of distribution of the money bid for your property will be filed by the Sheriff within thirty (30) days of the sale date. This schedule will state who will be receiving that money. The money will be paid out in accordance with this schedule unless exceptions are filed with the Sheriff within ten (10) days after the date of the filing of this schedule of distribution. 6. You may also have other rights and defenses, or ways of getting your property back, if you act immediately after the sale. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LWAYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE LISTED BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717-249-3166) Respectfully submitted, REAGER & A R . . Date: May 26, 2009 Tho s O. Williams, Esquire Attorney I.D. No. 67987 Wayne S. Martin, Esquire Attorney I.D. No. 208078 Attorneys for Plaintiff, Integrity Bank EXHIBIT A ALL THAT CERTAIN tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common corner Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes OS seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of the Lot No. 20 on a Subdivision Plain for Stanley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. BEING THE SAME PREMISES which David L. Wilson and Donna J. Wilson, husband and wife, by their deed dated October 20, 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1216, granted and conveyed unto Frederick C. Miller, adult man with an undivided one half interest, Constantinos J. Mallios and Elaine Mallios, husband and wife, with an undivided one half interest. ALSO BEING THE SAME PREMISES which Elaine Mallios, married woman, by her deed dated October 20, 2006, and recorded on October 23, 2006 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1220, granted and conveyed her interest unto Contantinos J. Mallios, married man. UNDER AND SUBJECT to all conditions, restrictions, and protective covenants, easements and rights-of--way of record, including, but not limited to the Declaration of Restrictive and Protective Covenants dated December 3, 1986, and recorded in Cumberland County Miscellaneous Book 326, Page 786 and subject to a fifteen feet wide utility and drainage easement along all property lane and right-of--way lines, and other matters of record or that which a physical inspection pr survey of the premises would reveal. TOGETHER with all and singular the buildings, improvements, ways, woods, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances to the same belonging or in anywise appertaining; and the reversion and reversions, remainder and remainders, rents, issues arxd profits thereof, and of every part and parcel thereof; AND ALSO all the estate, right, title, interest, use, possession, property, claim and demand whatsoever of the Grantors both in law and in equity, of, in and to the premises herein described and every part and parcel thereof with the appurtenances. WRIT OF EXECUTION and/or ATTACHMENT .~ COMMONWEALTH OF PENNSYLVANIA) NO 09-997 Civil COUNTY OF CUMBERLAND) CIVIL ACTION -LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due INTEGRITY BANK, Plaintiff (s) From CONSTANTINOS J. MALLIOS (1) You are directed to levy upon the property of the defendant (s)and to sell SEE LEGAL DESCRIPTION . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $174,786.53 L.L. $.50 Interest from 4/01/09 -- $1,410.16 (plus $20.36 per day) Atty's Comm % Due Prothy $2.00 Atty Paid $153.30 Other Costs to be added Plaintiff Paid Date: 5/26/09 ~. Curtis R. ong, Prothonota y (Seal) By; Deputy REQUESTING PARTY: Name: THOMAS O. WILLIAMS, ESQUIRE Address: REAGER & ADLER, PC 2331 MARKET STREET CAMP HILL, PA 17011 Attorney for: PLAINTIFF Telephone: 717-763-1383 Supreme Court ID No. 67987 Real Estate Sale # On May 28, 2009 the Sheriff levied upon the defendant's interest in the real property situated in Penn Township, Cumberland County, PA Known and numbered as, 3516 Ritner Highway, Newville, more fully described on Exhibit "A" filed with this writ and by this reference incorporated herein. Date: May 28, 2009 By: ~.~ ~ ~~ Real Estate Coordin or :~ C ~, ~ n,,,,z ;Jnr,C l../ PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF CUMBERLAND Lisa Marie Coyne, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, viz: July 24, July 31 and August 7, 2009 Affiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. ~~ L a arie Coyne, ditor SWORN TO AND SUBSCRIBED before me this da of Au ust 2/009 liC ` Notary `_ NOTARIAL SEAL DEBORAH A COLLINS Notary PubilC CARLISLE BORO, CUMBERLAND COUNTY My Commission Expires Apr 2B, 2010 REAL ESTATE SALE NO. 60 Writ No. 2009-997 Civil Integrity Bank vs. Constantinos J. Mallios Atty.: Thomas Williams ALL THAT CERTAIN tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stan- ley L. Spencer, Jr., recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland Coun- ty, Pennsylvania, more particulazly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common cor- ner Lot No. 19; thence over the road- way of the Ritner Highway, North 59 degrees 29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet pass- ing through an iron pin set 27.21 feet from the aforesaid railroad spike to an iron pin; thence along lands now or formerly of George Stanbaugh, South 58 degrees 37 minutes O5 seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGIN- NING. CONTAINING a total lot azea of 1.1307 acres, more or less. BEING all of the Lot No. 20 on a Subdivision Plain for Stanley L. Spen- cer, Jr recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. BEING THE SAME PREMISES which David L. Wilson and Donna J. Wilson, husband and wife, by their deed dated October 20, 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1216, granted and conveyed unto Frederick C. Miller, adult man with an undivided one half interest, Constantinos J. Mallios and Elaine Mallios, husband and wife, with an undivided one half interest. ALSO BEING THE SAME PREM- ISES which Elaine Mallios, married woman, by her deed dated October 20, 2006, and recorded on October 23, 2006 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1220, granted and con- veyed her interest unto Contantinos J. Mallios, married man. UNDER AND SUBJECT to all con- ditions, restrictions, and protective covenants, easements and rights- of-way of record, including, but not limited to the Declaration of Restric- tive and Protective Covenants dated December 3, 1986, and recorded in Cumberland County Miscellaneous Book 326, Page 786 and subject to a fifteen feet wide utility and drainage easement along all property lane and right-of--way lines, and other matters of record or that which a physical inspection pr survey of the premises would reveal. TOGETHER with all and singular the buildings, improvements, ways, woods, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances to the same be- longing or in anywise appertaining; and the reversion and reversions, remainder and remainders, rents, is- sues and profits thereof, and of every part and parcel thereof AND ALSO all the estate, right, title, interest, use, possession, property, claim and demand whatsoever of the Grantors both in law and in equity, of, in and to the premises herein described and every part and parcel thereof with the appurtenances. PROPERTY ADDRESS: 3516 Rit- ner Highway , Newville, PA 17241. "'the Patriot-News Co. 812 Market St. Harrisburg, PA 17101 Inquiries - 717-255-8213 CUMBERLAND CO. SHERIFFS OFFICE CUMBERLAND COUNTY COURT HOUSE CARLISLE PA 17013 c~he ~latriot-News NOw you know THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Act No. 587, Approved May 16, 1929 Commonwealth of Pennsylvania, County of Dauphin} ss Marianne Miller, being duly sworn according to law, deposes and says: That she is a Staff Accountant of The Patriot News Co., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 812 to 818 Market Street, in the City of Harrisburg, County of Dauphin, State of Pennsylvania, owner and publisher of The Patriot-News and The Sunday Patriot-News newspapers of general circulation, printed and published at 812 to 818 Market Street, in the City, County and State aforesaid; that The Patriot-News and The Sunday Patriot-News were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday/ Metro editions which appeared on the date(s) indicated below. That neither she nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That she has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot-News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of Dauphin in Miscellaneous Book "M", Volume 14, Page 317. PUBLICATION COPY This ad ran on the date(s) shown below: 07/24/09 07/31 /09 ` 08/07/09 -` .~ .. ~~ sworn to ar~~`~subscribed before men this 14 day of August, 2009 A. D. ~ ,~, ~, ., ~'~ % ~/i ~~ ,, Y '~ L l f Notary Pubfic COMMONWEALTH OF PENNSYLVANIA ~tintarial Seal $henie L. iGisner, Notary Public City Ot Namsburg, 4~auphin County My Commission Expiras Nov. 26, 2011 SNember, Pennsylvania Association of Notaries Sala No. 60 Wrlt No. 2009-997 Clvll Term Intagrlty Bank vs. Constantlnos J Malllos Arty: Thomas Wllllems ALL THAT CERTAIN tract of land known and numbered as Lot No. 20, on a Subdivision Plan for Stanley L. Spencer, Jr, recorded in the Recorder of Deeds Office in and for Cumberland County, .Pennsylvania, in Plan Book 51, Page 115, situate in Penn Township, Cumberland County, Pennsylvania, more particulazly bounded and described as follows: BEGINNING at a railroad spike in the centerline of Legislative Route 890 (Ritner Highway) at common corner Lot No. 19; thence over the roadway of the Ritner Highway, North 59 degrees ~29 minutes 25 seconds East, a distance of 150.02 feet to a railroad spike; thence along Lot No. 21 of the aforesaid Subdivision Plan, South 31 degrees 22 minutes 55 seconds East, a distance of 327.21 feet passing through an iron pin set 27.21 feel from the aforesaid railroad spike to an iron pin; thence along lands now or Formerly of George Stanbaugh, South 58 degrees 37 minutes OS seconds West, a distance of 150.00 feet to an iron pin; thence along Lot No. 19 of the aforesaid plan, North 31 degrees 22 minutes 55 seconds West, a distance of 329.50 feet to a railroad spike, the point and place of BEGINNING. CONTAINING a total lot area of 1.1307 acres, more or less. BEING all of the Lot No. 20 on a Subdivision Plain for Stanley L. Spencer, Jr recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Plan Book 51, Page 115. BEING THE SAME PREMISES which David L. Viglson and Donna J. Wilson, husband and wife, by their~deed dated October 2Q 2006, and recorded on October 23, 2006, in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 12i6, granted and conveyed unto Frederick C. Miller, adult man with an undivided one half interest, Constantlnos J. Malllos and Elaine Malllos, husband and wife, with an undivided one half interest. ALS'0 BEING THE SAME -PREMISES which Elaine Malllos, married woman, by her deed dated October 20, 2006, and recorded on October 23, 2006 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 277, Page 1220, granted and conveyed her interest unto Constantlnos J. Malllos, married man. UNDER AND SUBJECT to all conditions, restrictions, and protective covenants, easements and rights- of-way of record, including, but not limited to the Declazation of Restrictive and Protective Covenants dated December 3, 1986, and recorded in Cumberlaad County Miscellaneous Book 326, Page 786 and subject to a fifteen feet wide utility and drainage easement along all property lane and right-of--way lines, and other matters of record or that which a physical inspection pr survey of the premises would reveal. TOGETHER with all and singulaz the buildings, improvements, ways, woods, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances to the same belonging or in anywise appertaining; and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and of every' part and pazcel thereof AND ALSO all the estate, tight, title, interest, use, possession, property, claim and demand whatsoever of the Grantors both in law and inequity, of, in and to the premises herein described and every part and parcel thereof with the appurtenances. PROPERTY ADDRESS: 3516 Rimer Highway , Newville, PA 17241