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HomeMy WebLinkAbout09-3482COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, Plaintiff V. KA NJIT SINGH and INDERPAL KAU , Defendants : DOCKET NO. 09 - 84 ea ei'it -1s w CONFESSION OF JUDGMENT PREVIOUSLY ASSIGNED TO: N/A CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess judgm nt in favor of the Plaintiff and against the Defendants as follows: a. Principal $392,166.76 b. Interest to May 15, 2009 $ 57,433.87 C. Late Charges $ 6,383.95 d. Attorneys' Fees 44960.06 TOTAL: $500,944.64, plus interest, other expenses, fees and costs Respectfully submitted, Date: l ay??p, 2009 McNees Wallace & Nurick LLC By: EZ O 566 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, Plaintiff V. KA SINGH and INDERPAL Defendants DOCKET NO. 3 y g'? c N; f CONFESSION OF JUDGMENT PREVIOUSLY ASSIGNED TO: N/A COMPLAINT FOR CONFESSION OF JUDGMENT UNDER RULE 2951 1. The Plaintiff, PNC Bank, National Association, is a national banking association and existing under the laws of the United States of America with a principal regional office ?ocated at 4242 Carlisle Pike, Camp Hill, PA 17011 (the "Plaintiff'). 2. The Defendants, Karanjit Singh and Inderpal Kaur, are adult individuals whose last address is 1049 Fairview Place, Hillside, NJ 07205 (jointly and severally, the 3. The Defendants executed and delivered to the Plaintiff a U.S. Small Business Unconditional Guarantee dated April 26, 2005 (the "Guarantee"), a true and correct hereof reproduction of the original of which is attached hereto as Exhibit "A" and made a part Under the Guarantee, the Defendants guaranteed to the Plaintiff the payment of all amount due to the Plaintiff by KP&J Petroleum, Inc. (the "Debtor") under a U.S. Small Business Administration Note dated April 26, 2005, in the original principal amount of Five Hundred Three Dollars ($503,000) (the "Note"), a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "B" and made a part hereof. 5. The Defendants executed and delivered to the Plaintiff a Disclosure for Confession of Ju gment, a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "C" and made a part hereof. 6. The Debtor is in default of the Debtor's obligations to make payment to the Plaintiff as req fired in the Note and the Defendants are in default of the Defendants' obligations to make paym nt to the Plaintiff under the Guarantee. As a result of the Debtor's and the Defendants' defaults, the Plaintiff has demanded payment of all outstanding amounts as provided in the Note and Guarantee, which are now due and payable in full. A copy of the Plaintiffs demand dated February 13, 2008, is attached hereto as Exhibit "D" and made a part hereof. 7. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 8. There has not been any assignment of the Guarantee or the Note. 9. Judgment has not been entered on the Guarantee in any jurisdiction. 10. An itemized computation of the amount due to the Plaintiff by the Defendants as a result f the Defendants' defaults under the Guarantee is as follows: a. Principal $392,166.76 b. Interest to May 15, 2009 $ 57,433.87 C. Late Charges $ 6,383.95 d. Attorneys' Fees $ 44,960.06 TOTAL DUE: $500,944.64 11. Interest continues to accrue at a rate equal to the Prime Rate in effect on the first busines day of the month in which an interest rate change occurs, as published in the Wall Street Journ al on the next business day, plus two and one-quarter percent (2.25%), adjusted monthly. WHEREFORE, Plaintiff, PNC Bank, National Association, demands judgment against the Karanjit Singh and Inderpal Kaur, in the amount of Five Hundred Thousand Nine Forty-Four and 64/100 Dollars ($500,944.64), plus interest at a rate equal to the Prime Rate in effect on the first business day of the month in which an interest rate change occurs, as in the Wall Street Journal on the next business day, plus two and one-quarter percent ), adjusted monthly, through the date of payment, including on and after the date of entry of on this Complaint, and for other expenses, fees and costs to which the Plaintiff may be Respectfully submitted, McNees Wallace & Nurick LLC Date: 2009 By; ffr u , Esquire 4eo rem ourt ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC NATIONAL ASSOCIATION, DOCKET NO. Plaintiff V. CONFESSION OF JUDGMENT SINGH and INDERPAL Defendants PREVIOUSLY ASSIGNED TO: N/A VERIFICATION I, Kyra E. Zoranski, Assistant Vice President for PNC Bank, National Association, being authorized to do so on behalf of PNC Bank, National Association, hereby verify that the statements made ' the foregoing pleading are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unworn falsification to authorities. PNC BANK, NATIONAL ASSOCIATION Date: By: Kyra E. oran Assistant Vice Presiden o5, ua ., U.S. Small Business Administration UNCONDITIONAL GUARANTEE Loan # I PLP 86977740wW Loan Name I K P & J PETROLEUM INC Karanlit Singh Inderpai Kaur K P & J PETROLEUM INC PNC Bank, National Association Amount 1503,000,00 iarantor unconditionally {guarantees payment to Lender ofalI amounts owing under the Note. This Guarantee remains effect until the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender makes written ,nand upon Guarantor. Lender is not required to seek payment from any other source before demanding payment from -t- 2. 3. SSA i "Note" is the promissory note dated e Hundred Three Thou; in the principal amount of - lM-ilars, Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Note, and multiple under a line of credit. awrat" means any property taken as security for payment of the Note or any guarantee of the Note. t" means the loan evidenced by the Note. I Documents" means the documents related to the Loan signed by Borrower, Guarantor or any other guarantor, or me who pledges Collateral. it means the Small Business Administration, an Agency of the United States of America 148 190/88) Prey editbns obsolete. PsgB 9/5 Rankers Systems, Inc., St. Cloud, MN LENDER'S GENERAL K)WFRS; Lender may take any of the following actions at any time, without notice, without Guarantor's consent, and without making demand upon Guarantor: A. Modify the terms of the Note or any other Loan Document except to increase the amounts due under the Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or riot Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or without advertisement; C.J. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; and H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against lender. FEDERAL LAW: n SBA is the holder, the ;Note and this Guarantee will be construed and enforced under federal law, including; SBA ations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, losing liens, and other purposes, By using such procedures, SBA does riot waive any federal immunity from state or control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local or state law st SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. 1JGH'T'S, N(YTIC;ES, AND DEFENSES THAT GtJARANTC)R WAIVES: the extent permitted by law, Guarantor waives all rights to: 1) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. Guarantor waives any notice of., ]) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Nate or Collateral, such as disbursements, payment, nonpayment, acceleration, intent to accelerate, assignment, collection activity, and incurring enforcement expenses; S) Any change in the financial condition or business operations of Borrower or :my guarantor; 6) Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Note; and 7) 11rc time or place of any sale or other disposition of Collateral. C. sea Guarantor waives defenses based upon any claim that: 1) tender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken as Collateral; 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; n 145 (W U) Prevkpus eftwz obsolete. Page v5 Bankers Systems, Inc., St. Cloud, MN 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; R) Fender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor of the Note; 10)1'he financial condition of Borrower or any guarantor was overstated or has adversely changed; 11) Lender made errors or omissions in Loan Documents or administration of the Loan, 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before demanding payment from Guarantor: 13) Lender impaired Guarantor's suretyship rights; tai) Lender modified the Note terms, other than to increase amounts due under the Note. If Lender modifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will not be liable for the increased amounts and related interest and expenses, but remains liable for all other amounts; 13) Borrower has avoided liability on the Note, or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. AS TO COLLATERAL: 18rantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve dispose of any Collateral. 9. SUCCESSORS AND ASSIGNS: nder this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and assigns. ENPRAL PROVISIONS: G. H, 1. .I. saA ro ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this Guarantee, including, but not limited to, attorney's fees and costs. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays Lender. SBA is not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral until the Note is paid in full. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly and severally liable. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without losing or impairing any of them. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain in effect. CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by bender as to the Loan. 948 (10198) P-Aoux eddww obsotate. Raga 315 Sankers Systems, Inc., St. Cloud, NIN STA'I`E-SPI CIFIC' PROVISIONS: 1, POWER TO CONFESS JUDGMENT. UNDERSIGNED HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD, AT ANY TIME AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR THE UNDERSIGNED AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST THE UNDERSIGNED IN FAVOR OF THE LENDER OR ANY HOLDER HEREOF FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST AND ALL OTHER AMOUNTS DUE HEREUNDER TOGETHER WITH COSTS OF SUIT AND AN ATTORNEY'S COMMISSION OF 10% OF SUCH PRINCIPAL AND INTEREST ADDED AS A REASONABLE ATTORNEY'S FEE, AND FOR DOING SO, THIS GUARANTY OR A COPY VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT, THE UNDERSIGNED HEREBY FOREVER WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED, JUDGMENT MAY BE CONFESSED FROM TIME TO TIME UNDER THE AFORESAID POWER TO CONFESS JUDGMENT AND NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS THE LENDER SHALL ELECT UNTIL SUCH TIME AS THE LENDER SHALL HAVE RECEIVED PAYMENT IN FULL OF THE DEBT, INTEREST, COSTS AND FEES. 2. Governing Law; Jurisdiction. This Guaranty will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the Commonwealth of Pennsylvania, excluding its conflict of laws rules. The Undersigned hereby Irrevocably consents to the exclusive jurisdiction of the Courts of Common Pleas of the Commonwealth of Pennsylvania and the United States District Court for the Eastern District of Pennsylvania; provided that nothing contained in this Guaranty will prevent the Lender or any holder hereof from bringing any action, enforcing any award or judgment or exercising any rights against the Undersigned against any security or against any property of the Undersigned within any other county, state or other foreign or domestic jurisdiction. The Undersigned agrees that he venue provided above is the most convenient forum for both the Lender and the Undersigned and the Undersigned vaives any objection to venue and any objection based on a more convenient forum in any action instituted under this 3uaranty. The Undersigned agrees that service of process in any such proceeding may be duly effected upon the 1n dersigned by mailing a copy thereof by registered mail, postage prepaid, to the Undersigned. WAIVER OF JURY TRIAL. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHTS THE 1NDERSIGNED MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE ;ELATING TO THIS GUARANTY, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS GUARANTY OR NY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE UNDERSIGNED ACKNOWLEDGES HAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY, a guaranty is afo secured with a third mortgage on land and improvements located at 1049 Fairview Place Hillside, 07208. $aA P 048 { i W98} F'revibvt "60- obs'*ft. Pegs 4/5 Bankers Systems, Inc., St. Cloud, MN 11. CUARANT©R ACKNOWLEDGMFNT O 1'1wRMS. Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and this Guarantee, including all waivers, GUARANTOR NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becorne,5 obligated as Guarantor under this Guarantee, sen Fon? 143 (1 M) PM'AX1edit, dm*W .. pttpe M Bankers Systems, inc., St. Cloud, MN U.S. Smd Business Administration NOTE SBA Loan # PLP 88977740-09 SBA Loan Name K P & J PETROLEUM INC Date Loan Amount 13081000.00 Jr4erW RSW Fb-trV at WSJ Prime Plus 2.25% rwu in an ins" rate of 7.75% Borrower K P & J PETROLEUM INC Opera" Company Lender PNC Bank, National Assodation 1. PROMISE TO PAY: In rol urn fir the Loata, Bonower l bw 10 pay to the order of Lender the wMat of Firs Hundred Tim 10D _ Daflars, iata 116 dle unpaid piticipal balance, and all otjw amounts rerluirad by this Note. 2. DEFIMTIONS: "Collateral" MOM My Pop" taken as secnrlty for PAYMO t of this Note or any pennfte of this Note. "GWaatar" mesas each person or amity dw signs a Suvamea ofpqmeatt of this Note. "Loan" meant the loss evidenced by this Nod. "Cosa Documents" means the documetW related to this loan signed by BorrowaG any Cluarantor, or anyone who plafto coIlataw. "SBA" means ilte Small Businus Administration, an Agency of the United States of America. SBA ftM 147 (O&W ) VaWan 4.1 Pogo tv Bankers Systems, Inc., St. Cloud, MN 3. PAYMENT TMtMS: 80irnwtr must make aU pgments gt the place Lender deWSnstm The paymau tsrmA for this Note ere: This Note will mature in 10 years from date of Note. The interest rate on this Note will fluctuate. The Initial Interest rate Is 7.7596 W rate 0n the date SBA received the loan application, plus 2.25%, The Initial I Year. This inflict rate is the prime the first change period begins r We must remain in Wed until Sommer must pay lntwW on this disbursed pry baienoe, lus one month fom the month this Note i0 daW; oP prncipal of $ 3,958.33 every month, beglnnfig are due, must be made on the first calendar day In the months they Lender wM apply each k*aiIment payment first to pay interest -=,ad to the da I'M to bring Ptl current, then to pay any We fees, and will snP1Y any remaining Lender bel balr rance to re the to rethe psWYment, duce the Prlrtcip3l. 77* interest rate will be adjusted mor>thly (the 'change period-). f The "Prime ROW Is the Prime rate in efTect on the first business occurs, as Published In the Wan day s of the month In which an Interest rate change Street ,burrssl on the next business day. The adjusted Interest rate will be 225% above the prime fate, Lender Will sd ust the i calendar day cf each change period. The change in interest rate l3 eftectIve on that nwh rate on the first Bon war nodCe of the change. day whether or not Lendetr gives Lender must adjust the payment atttourrt at Least annually of the note, as needed to amortize principal over the remaining term 8 SBA purc hase3 the guOrenteed Portion of the ur d principal bad, in the Interest rate O% d of the t;nre ofthe $Wiest uncured payment defaut, If there Is no uncured becomes fixed at the rote becomes fixed at the rate in efW at the time of purchase. Payment default, the Me Notwithstanding any provision In this Note to the Contrary. Borrower may "lay this Note. Borrower may prepay 20 percent or 1003 Of the unpaid without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the 80 radar et at any time ? mgt. (a.) give Lender written notice; (b,) pay all accrued Interest; and tz If the wry mania t, lase than 21 days from the date reitres the notice, (} P nth, Is" Lender pay an amount saw to 21 days' ink b Lender receivee the does not any interest accused raring the 21 days Ond p? under wbPaWnVh b., new . (" rnoOr MM within 30 days from the date Lend rawkft the notice, Sommer must give Lertdabove. if B AN remaining principal and a=rued rsat Is due and payable 10 Years from date of Nate. sLJ" Cheer If 0 PQyment on this Note, is more than 10 days Ea* Lender magi charge Borrower, a late foe of up to unpaid lords of the regularly hafute payment. Ot' Fqm 147 MUM VW4bn 4.1 pop 26 Bantcera Sys, Inc., a Clo w, MH 4. DEFAULT. BOnwm is In defauh under this NNote if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company. A. Fails to do anything required by this Note and otherLoan Documents; B. Defauhs on any other loner with Leader; C Does not preserve, or account to Lendaes sathsfar.tion for, any of the Collateral or its proceeds; D. Does rot disclose, or anyone acting on their behalf does not disclose, any material fact to Leader or SBA; B. Makes, or anyone acting on their behalf maker, a materially false or misleading representation to Lender or SBA; F. Defl uhs on any loan or agreement with another creditor, ifiAwAer believm the dc&Wt may materially afftua Borrower's ability to pay this Neat:; G. Fails to Pay any taxes when due; H. Becomes the subject of s pmc ceding under any bankruptcy or Insolvency law; L Has a receiver or liquidator app Anal for any part of their business or property; J. Mattes an assignment for the bemfrt of creditors; It. Has any adverse cbarcga in financial condition or business operation that Lender believes may materially affect Borrower's ability to pay this Note; L. hxs mi c re consdidates, or otmwise changes ownership or business stoture without it e's prior Vnift or M. Becomes the subject of a civil or criminal action that Leader believes may materially affect Borrower's ability to lay tluis Note. 5. LENDER'S RICH M IF THERE IS A DEFAULT, Without notice or demand 2nd without giving up any of its rights, Leader mays A. Rssluire immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. :File suit and obtain judgment; D. Trike possession of any Collateral!; or E. Sell, !rasa, or otherwise dispose of any Colla all at public or private sale, with or without Wmdsetteo . LENDER'S GENERAL POWERS. Without notice and without Iorrower's ooamum Lender may; A. Bid on or buy the Collateral at its sale or the sale of another lienhalder, at any price it chooses; B. Incur expertsu to collect amounts due under this Note, wiforce the terms ofthis Note or any other Loan Dxurnent, and preserve or dispose of the Collateral. Amory other things, the cgmwa include ?' property taxes, rice ' may payments prior liens, imturam, Vpnusala, environmental remodi4don costs, and reasonable attorney's fees and coats. If Lender incurs such expensed, it may demand immediate repayment from Borrower or add the expenses to the principal balance; C. Release anyone obligated to pay this Node; D. Compromise, release, renew, extend or substitute any of the Collateral; and E. Take any action nec:esawy to protect the Collateral or collect amewrts owing on this Mote. $&AFwm 147 twi t vat'sion 4.y pop " Bankers Sysvms, Inc., St. Ckwd, AMID 7. WHEN FMMIAL LAW APPT.,IES; Whim SBA is the holder, this Note will be int"Ieted sad enforced ender federal law, includin SBA bender or SBA may use stage or local ? ffft P g s?pecl ns. l?s, and other l'm+'P?s• By using such w Pte. recording ?eunenta, noticx, fareolosing es, SBA does not waive any L-deral irnmnnity from state or local cOnW, PNMUy, M, Or lisi ft. As to this Node, Borrower mgy tat Claim or assert allainet SSA any loci or state law tD dCM arty Obligation, defeat any claim of SBA, or MemIX federal law. I- SUCCESSORS AND ASSIGM: Under this Note, Borrower and and assigns. Opening Comp ay include the successors of each, and Lander includes its.n=essors 9. GENE AL PROVISIONS; A. Ali hWividuals aced endde$ signing this Note are jourtly and saverally liable. B. Borrower waives all stn+etyshlp defeensas. C• Borrower must sign all documents rjecessmy at any time te comply with the Loan Documents and to enable Lender to acquire, Perfect, or maintain Lender's liens on Collateral. D. Leader may exercise any of its rigl is aepa ly or together, as manY ' eun ?? or es and in any order it chooses. Lender maY y forgo enforcing any of its rights without giving uP anry of them. E' Bor rower may not use an oral stertement of Lender or SBA to contradict or alter the written terms of this Note. F. If any pad of this Note is table, all odw parts remain in eflbCt. G. To the extent allowed by law, Borrower waives all dm=ds seal Pte, demand, protest; and notice of dishonor. Borrower -110 mnoction with this Note, including tlud IXLehr did not obtain any guarantee; did not obtain, ? any defettsea based upon any claim CollUeral; or did not obtain the fair market vales of Cclktml at n a Hen upon Collateral; impaired a Bak, So' F- tar(ti tVOMW4.t POP ale Btu Systgirn inc., 8t Ckwd, MN 10, STATE SPECTFIC>?pOVISIONS. 1. POWER TO CONFESS JLID OMENT. UNDERSIGNED HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT' OF RECORD, AT ANY TIME AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR THE UNDERSIGNED AND, V1 TN OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST THE UNDERSIGNED IN FAVOR OF THE LENDER OR ANY HOLDER HEREOF FOR THE ENTUM PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST AND ALL OTHER AMOUNTS DUE HEREUNDER, TOeETHER wTH COST'S OF SUIT AND AN ATTORNEYS COMMISSION OF 10% OF SUCH PRINCIPAL AND INTEREST ADDED AS A REASONABLE ATTORNEYS FEE, AND FOR DOING $0, THIS NOTE OR A COPY VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. THE UNDERSIGNED HEREBY FOREVER WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAiSEMENT, STAY OR EXEMPTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED, JUDGMENT MAY BE CONFESSED FROM TIME TO TIME UNDER THE AFORESAID POVVER TO CONFESS JUDGMENT AND NO SINGLE EXERCISE OF THE FOREGOING POMR TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID. BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS THE LENDER SHALL ELECT UNTIL SUCH TIME AS THE LENDER SMALL HAVE RECEIVED PAYMENT IN FULL OF THE DEBT, INTEREST, COSTS AND FEES. 2. Cov ff*lg Law; Jurisdictipn. This Nave wig be interpreted and liar rights and k"16" of the part hereb dstennired In ac cordar" vt the laws of the CommonwealtA of Pennsylvania, ex* ding its caonlltct of laws noes, The Undersigned hereby Irrevocably, o *wo to the exclusive jurisdiction of the Courts of Common Pleas of the COmmonvrealb Of Pennsylvania and the United States District Court for the Eastern DWriat Of Pennsylvania: Provided that n0ftV contained in this Nob will prevent the Lander or any holder hereof from bringing any action, enforcing any a ward or judWft or exercising any ABMs agatnat the Undersigned, against any socurtty or against any property of the the Undersigned within any other county, state or other foreign or dwe?c jwWic Son. The Undersigned agrees that Provided above is the moat convenient forum for both the Lender and the Undersigned and the Undersigned vmtves any objection to venue and any abjection based on a more oorrverftnt foraxrt In any acthn irrs#ifk fed under ibis Nate. The Undersigned agrees that aervlce of pvom in any such proms may be duty efhrctsd upon rie Undemigrred by mailing a copy theroof by mal, postage prepaid„ to the Undersigned. 3. WAIVER OF JURY TRIAL. THE UNDERSIGNED IRREVOCABLY WANES ANY AND ALL RIGHTS THE UNDERSIGNED MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS NOTE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS NOTE OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENT'S. THE UNDERSIGNED ACKNOWLEDGES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 88A F" 147 t ViMiM 4.1 "0"" ft*em SYwna, Hm., St Cloud, MN , i 1, BOUMER'S NAW(S) AND SIONATURE(S): Ily s11049 1e10v, each indMduat or w4ity bewmes obl*akd under this Note as Bomwer. P& "It sib,,1-mmnt - - v L -ds - ----------- SEA Form 147 M&MM V&*,r, 4;1 P*W" Bakers Syaterrls, Inn, SL 0104 MN (Page 1 of 1) re for Confession of Judgment KARANJIT SINGH INDERPAL KAUR 1049 FAIRVIEW PLACE H LLLSIDE, NJ 07205 PNC BANK, NATIONAL ASSOCIA'T'ION SS00 T29CUM BOULEVARD PHILADELPHIA, PA 19153 )?- 7foa PNCBANK The ersigned has executed, and/or as executing, on cr aboutdthe date hereof, a US Small Business Administration Guaranty and C mmercial Guaranty, in respect of the obligations owe unders geed is obligated to repay monies to Lender. to Lender by K P & J PETROLEUM INC under which the A. THE UNDERSIGNED ACKNOWLEDGES AND AGREES THAT THE ABOVE DOCUMENT CONTAINS PROVISIONS UNDER WHIG LENDSRMAYENTERJtIDGMENTBYCONFESSIONAGAINSTTEMUNDER.SIGNED. BEINGFULLYAWAREOFrrsx; H'IBTO PRIOR OTWEANDAHEARINGONTHEVALIDITYOFANYJUDGMENTOROTHERCLAIMSTHATMAYBEAS$ERTEDAGAWrrrBY LENDE THEREUNDERBEFOREJUDGMENTISENTERED,THEUNDERSIGNEDHEREBY WArvic§ 0 N THESE RIGHTS AND SLY AGREES AND CONSENTS TO LENDER'S ENTERING JUDGMENT AA GAINSST IT B CO Y C ION PURSUANT TO THE TERMS THEREOF. B. THE UNDERSIGNED ALSO ACKNOWLEDGES AND AGREES THAT THE ABOVE DOCUMENT CONTAINS PROVISIONS UNDER WHICH LENDER MAY, AFTER ENTRY OF JUDGMENT AND WITHOUT EITHER NOTICE OR A HEARING, FORECLOSE UPON, ATTA LEVY, TA KE POSSEWON OF Olt OTHERWISE SEME P20PUM OF THE UNDERSIGNED IN FULL OR PARTIAL PAYMENT OF THE J GMENT. BEING FULLY AWARE OF ITS RIGHTS AFTER JUDGMENT IS ENTERED (INCLUDING TILE RIGHT TO MOVE TO OPEN 01 STRIKE THE JUDGMENT THE UNDERSIGNED HEREBY FREELY, KNOWINGLY AND INTELLIGENTLY CE AND A HEARING AND EXPRESSLY AGREES AND CONSENTS TO LENDER'S TAKING SUCH ACTIONS AS MAY PER UNDER APPLICABLE STATE AND FEDERAL LAW WITHOUT PRIOR NOTICE TO THE UNDERSIGNED, C. The undersigned certifies that a representative of Lender specifically called the confession of ' the abov documentto the attention ofthe undersigned, and/or that the undersigned was Judgment provisions in with the above document. represented by legal counsel in connection D. The undersigned hereby certifies: that its annual income exceeds $10,000; that all refeJeiicos to the undersigned above re er to all persoi>.g and entities signing below; and that the undersigned received a copy hereof at the time of signing. Dated: if/-??45 I1FE195ii31LOCALS-IITemplC.Notes.Datalconf.guarantor.doc Form 9C . PA Rev. 3/99 0. PNC BANK February 13, 2008 ified and Regular Mail & J Petroleum Inc anjit Singh, President 3 Pottsville Minersville Highway ersville, Pennsylvania 17954 Loan #32184124/602547298 Mr. Singh: ou are in default of your obligations to PNC Bank (the "Bank") for failure to make tyments on the $503,000.00 loan (the "Loan") as required in the Promissory Note that ,idences the Loan and the Guaranty Agreement(s) that secures the Loan. As a result of e default of your obligations to the Bank, the entire outstanding amount of the Loan has .en accelerated and is now due and payable immediately in full. The amounts that are ie and payable to the Bank are as follows: Principal $392,166.76 Interest $ 9,852.76 (as of 2/13/08) Late Charges $ 6.057.50 Total $408,677.02 continues to accrue at the rate of $88.64 per day through the date on which is received by the Bank. In addition to the amounts set forth above, you will be responsible for payment or reimbursement to the Bank for all attorneys' fees incurred or paid by the Bank with respect to this matter. make arrangements for payment in full of your obligations to the Bank by ng the Bank, as follows: Kyra E. Zoranski Assistant Vice President 201 Penn Avenue Scranton, PA 18503 Phone: (570) 961-6266 .Fax: (570) 961-6240 Member of The PNC Financial Services Group 201 Penn Avenue Scranton Pennsylvania 18503 www.pnc.com tr Page 2 Neither this letter nor anything contained herein waives, limits or otherwise affects in any way the Bank's rights to exercise and enforce its rights and remedies for collection of your obligations to the Bank, all of which are reserved by the Bank, and remain in full force and effect, enforceable by the Bank at any time on or after he date of this letter. e look forward to receiving payment in full of your obligations to the Bank in the immediate future. Otherwise, the Bank may have no alternative but to initiate collection proceedings. I you have any questions please call me at 570-961-6266. Thank you in advance for ur cooperation in this matter. Zoranski t Vice President ccl Karanjit Singh, Guarantor Inderpal Kaur, Guarantor f A. Sign lure X? ?i v??. ? Agent ? Addre B•'Received Uy (Printed Name) Dateef Dall D. Is delivery address different from em 1? ? yes If YES, enter delivery address below: ? No i i 3. 5 ice Type ?J yJ entitled Mail ? Express Mail Receipt for Merchandise rn ''v ?eg ?ereed ?I ? C O.D. 13 4. Restricted Delivery? (Extra Fee) ? Yes 2. Article Number (Transfer from service label) _ 7003 1680 0004 4724 5661 PS Form 3811, August 2001 Domestic Return Receipt 102595.02-M-1035. ¦ Complete items 1, 2, and I Also complete item 4 if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: _.0 u7 s .sc L F F. Postage $ ED Certified Fee C3 S C3 Return Reciept Fee Postmark (Endorsement Required) Here ? Restricted Delivery Fee (Endorsement Required) Total Postage & Fees a $s m O Sent To C3 \ Apr. ? ""-"-y- - r ---_*-&I- ---- ---- ----- - - ------ - ------ or PC Box No. City, State, ZlP+4?t,? 1/ s? q ----------- - Halmr-O Fl +__J CAF THE F r! r" jiAPY *Aq.5o PA AT TI GLv ISOS44 W ao,515a COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, : DOCKET NO. lyR- 3?l8a, Civil ?er? Plaintiff V. CONFESSION OF JUDGMENT KARANJIT SINGH and INDERPAL : KAU , ; Defendants PREVIOUSLY ASSIGNED TO: N/A PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter my appearance on behalf of Plaintiff, PNC Bank, National Association. Papers may be served at the address set forth below. Geoffrey S. Shuff, Esquire McNees Wallace & Nurick LLC 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Date: I Respectfully submitted, McNees Wallace & Nurick LLC 2009 By: 5e?'m S uff, Es quire e Vtreet, ID #24848 ine PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff , t` 2t0A`r 2 ! Ph J rEt 10 t COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, : DOCKET NO. OR - 848A l.:,ivi I -rem Plaintiff V. CONFESSION OF JUDGMENT KARANJIT SINGH and INDERPAL KAU , Defendants PREVIOUSLY ASSIGNED TO: N/A NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANT'S RIGHTS TO: Karanjit Singh and Inderpal Kaur A judgment in the amount of $500,944.64, plus interest, other expenses, fees and costs has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confes ion of judgment contained in a written agreement or other paper allegedly signed by you. The s eri ff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being aken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND RESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. 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 OFFIC CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YO CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Gqk Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or 1-800-990-9108 Respectfully submitted, McNees Wallace & Nurick LLC Date: ayZ 2009 By; tre ff, Esquire C urt ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff Am FiF __ ;Jfy i 2J?? V1?I 2 7 f'i`t ;; 1) COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC NATIONAL ASSOCIATION, : DOCKET NO. o9 -1aa 0,;vd-rem Plaintiff V. CONFESSION OF JUDGMENT KA JIT SINGH and INDERPAL Defendants : PREVIOUSLY ASSIGNED TO: N/A CERTIFICATE OF ADDRESSES 4242 Singh I hereby certify that the precise address of Plaintiff, PNC Bank, National Association, is Pike, Camp Hill, PA 17011; and that the last known address of Defendants, Karanjit Inderpal Kaur, is 1049 Fairview Place, Hillside, NJ 07205. Respectfully submitted, McNees Wallace & Nurick LLC Date: yl?? 2009 By; eo ff, Esquire upreme urt ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff 2G09H Y 27 Fi I; 3L" r'IL COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC NATIONAL ASSOCIATION, : DOCKET NO. CA -- 3gaa Ctv;i TerM Plaintiff V. CONFESSION OF JUDGMENT KA TO Date: A JIT SINGH and INDERPAL Defendants PREVIOUSLY ASSIGNED TO: N/A AFFIDAVIT OF NON-MILITARY SERVICE PROTHONOTARY: I do certify, to the best of my knowledge, that Defendants in the above-captioned action, it Singh and Inderpal Kaur are not presently on active or nonactive military status. 2009 Respectfully submitted, McNees Wallace & Nurick LLC By: Ge Y. Shuff, Esquire uprem Court ID #24848 100 Pi a Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff Fil L 1 2009MA'Y 27 Pr v, r4 + ? y ?tif ,a I % COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION //?? PNC ANK, NATIONAL ASSOCIATION, : DOCKET NO. 4 4 - 34 8a e iv i ( Terri Plaintiff V. : CONFESSION OF JUDGMENT KA JIT SINGH and INDERPAL Defendants : PREVIOUSLY ASSIGNED TO: N/A To: Klaranjit Singh and Inderpal Kaur, Defendants You are hereby notified that on Ma.u 017 , 2009, judgment by confession was enters against you in the sum of $500,944.64, in the above-captio case. DATE: d'- Nq 0K - - ZZW othonotaryYOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT AVE 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 or 1-800-990-9108 I hereby certify that the following is the address of the Defendants stated in the certificate of Karanjit Singh and Inderpal Kaur 1049 Fairview Place Hillside, NJ 07205 , Atto y f ff i • A, Karanjit Singh and Inderpal Kaur, Demandado(s) Por este medio sea avisado que en el dia de de 2009, un fallo por admision fue do contra usted por la contidad de $500,944.64, del caso antes escrito. el dia de de 2009 Protonotario LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI NO TIENE ABO ADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA A LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENC ENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASIS ENCIA LEGAL. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or 1-800-990-9108 Por este medio certifico que to siguiente es la direccion del demandado dicho en el ado de residencia: Karanjit Singh and Inderpal Kaur 1049 Fairview Place Hillside, NJ 07205 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. 09-3482 Plaintiff V. CONFESSION OF JUDGMENT KARANJIT SINGH and INDERPAL KAUR, Defendants PREVIOUSLY ASSIGNED TO: N/A RETURN OF SERVICE PURSUANT TO PA. R.C.P. No. 2958.1(c) Plaintiff, PNC Bank, National Association, hereby files this Return of Service and swears and affirms that the person or persons listed below was or were served pursuant to Pa. R.C.P. No. 2958.1(b) with the Notice of Judgment and Execution Required by Rule 2958.1 by certified mail, return receipt requested, as provided by Pa. R.C.P. No. 403. A copy of each receipt for certified mail is attached hereto. Karanjit Singh and Inderpal Kaur 1049 Fairview Place Hillside, NJ 07205 Respectfully submitted, McNees Wallace & Nurick LLC Date: June 12, 2009 By: GecjKy. . Shuff, Esquire SuprerrX Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff ' w 716D 39D3 9645 7155 643.6 TO: Karanjit Singh and Inderpal Kaur 1049 Fairview Place Hillside, NJ 07205 i SENDER: Geoffrey S. Shuff 4 REFERENCE: PNC Bank i RETURN Postage "YY RECEIPT Certified Fee SERVICE Return Receipt Fee p Restricted Delivery Total Postage & Fees $? US Postal Service P RK OR Df (P * Receipt for w Cn y Certified Mail `?a(18??? No Insurance Coverage Provided Do Not Use for International Mall -------------------------- ---------- .......... Article Number A. Received by (Please Print Clearly) 8. M71very C. Sig e ?A 7160 3401 9645 7155 6436 dressee D. IS deli dinerentfrom item l? Yes ? If YES, r der rvery address below: ? No 3. Service Type CERTIFIED MAIL 4. Restricted Delivery? (Extra Fee) Yes 1. Article Addressed to: Karanjit Singh and Inderpal Kaur ;. 1049 Fairview Place Hillside, NJ 07205 PNC Bank Geoffrey S. Shuff PS Form 3811, January 2005 Domestic Return Receipt C? THE F` - : ; ' : !RY ,?? ., 20 99 JU'i 15