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HomeMy WebLinkAbout09-6191IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CITIZENS BANK OF PENNSYLVANIA, Plaintiff, vs. CURTIS A. MILLER, Defendant. TO DEFENDANTS: You are hereby notified to plead to the enclosed COMPLAINT WITHIN TWENTY (20) DAYS OF FROM SERVICE HEREOF P TIFF 1 HEREBY CERTIFY THAT THE ADDRESS OF THE PLAINTIFF IS: 53 State Street Boston, MA 02109 AND THE DEFENDANT IS: 21 Lenox Court Mechanicsburg, PA 17050 CIVIL DIVISION NO.: 69 - &1'?/ TYPE OF PLEADING: C..' (?Te&? CIVIL ACTION-COMPLAINT IN BREACH OF CONTRACT FILED ON BEHALF OF PLAINTIFF, Citizens Bank of Pennsylvania COUNSEL OF RECORD FOR THIS PARTY: Joseph A. Fidler, Esquire Pa. I.D. #87325 GRENEN & BIRSIC, P.C. One Gateway Center Ninth Floor Pittsburgh, PA 15222 (412) 281-7650 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CITIZENS BANK OF PENNSYLVANIA, CIVIL DIVISION Plaintiff, NO.: VS. CURTIS A. MILLER, Defendant. NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth i?n 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 wit the court your defenses or objections to the claims set forth against you. You are warned that li you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other cliff' 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 YO: 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 IBLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY O?FER LEGAL SERVICES TO ELIGBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 S. Bedford Street Carlisle, PA 17013 (717) 249-3166 or Toll Free (800) 990-9108 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CITIZENS BANK OF PENNSYLVANIA, Plaintiff, CIVIL DIVISION NO.: U 9- 6 7 9 I ct,?? ?..?u vs. CURTIS A. MILLER, Defendant. COMPLAINT IN BREACH OF CONTRACT AND NOW, comes Citizens Bank of Pennsylvania, by and through it's counsel, 00nen & Birsic, P.C., and files this Complaint in Breach of Contract, and in support thereof avers as follows: 1. The Plaintiff is Citizens Bank of Pennsylvania ("Plaintiff'), a state) organized and existing under the laws of the Commonwealth of Pennsylvania, with an located at 53 State Street, Boston, MA 02109. 2. The Defendant is Curtis A. Miller ("Defendant"), an adult individual within the Commonwealth of Pennsylvania, whose last known address is 21 Lenox (ourt, Mechanicsburg, PA 17050. 3. On or about April 26, 2006, Defendant executed and delivered to Plaintiff a certain Personal Guaranty ("Guaranty"), whereby Defendant absolutely and unconditionally promised to pay all of the obligations of Seven Brothers, LLC (`Borrower") to the Plainti . A true and correct copy of said Guaranty is attached hereto, marked Exhibit "A" and made al part hereof. 4. On or about May 1, 2006, Plaintiff notified Borrower that Borrower was approved for a business line of credit with a credit limit of $100,000.00, evidenced by the terms of a certain Business Line of Credit Agreement. Copies of said Notification and Agreement are marked as Exhibits "B" and "C" respectively, attached hereto and made a part hereof 5. Borrower is in default under the terms of the Agreement, for failing to (make payments when due in accordance with the terms and conditions of the Agreement, as modi?ied. 6. Defendant is in default under the terms and conditions of the Guaranty ba$?d on the occurrence of a default under the Agreement. 7. The Guaranty and Agreement have not been released, transferred or assignej?. 8. Any and all conditions precedent to payment to Plaintiff have been satisfied) 9. The amount due and owing to Plaintiff under aforesaid Agreement, and consequently, the amount due and owing under the Guaranty is as follows: Principal $99,948.73 Interest to 7/6/09 $ 1,391.11 Late Charges to 7/6/09 $ 244.37 TOTAL $101,584.21 WHEREFORE, Plaintiff demands judgment against Defendant for the $101,584.21 with interest on the principal sum ($99,948.73) from July 6, 2009 at the i of $14.58 per diem, floating, together with late charges, costs and reasonable and incurred attorney's fees. Respectfully Submitted, GRENEN &,BIRSIC, P B ,Fa. I.D. #87325 Attorneys for Plaintiff One Gateway Center Ninth Floor Pittsburgh, PA 15222 (412) 281-7650 of rate ly EXHIBIT "A" APR 27 '06 1126 FR CITIZENS BANK 717 766 8325 TO 18773626625 P.02/03 Xx Clux nk Busing" Credit 7Fw &am Use iilO NangMrancn N.nr ara,dl . z Mx? (Max.l, S 32 nrinM ria I NIlrO T- L.iwr, IO.I.at1 P?•.?Ynp,n4M1° j °fr" D Crum Rwwa wfarwwt arrO we Logo Nra. (untlf wlsn talc LrO; l..:,w..?w. n l brr e r ,• •••,. _ • •• .c • _. • AS ,.n`,F: r Glydy Mtl:l6s ?Pl.,M.Nw,Lo1.La`w\.+rw. Aesa.o. eld?D 1 I L.w a oan> ?`h QIn ?¢?fae 24 dws R. Til.(yl.lr. ?G. Ousnw T. Io M.W. v GIMM at.»nl xd,rr!lwn,wawxloraaY.y.w r ? rr..nn.r,rrn.»:xr„»»:w nu.r..,.?uwa..n n.a,aanm ......r.r.n.wr.. w,:. 4 .w.rnp. n.. M: ?.iaa.ml.M. 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O -------------- 1vK TOTAL PAGE.03 EXHIBIT "B" XX Citizens Bank SEVEN BROTHERS, LLC 1308 SLATE HELL ROAD CAMP HILL, PA 17011 I Citizens Drive Mail (Stop: RDC160 Rive>f side, 8102915 05/01/2006 Congratulations! We have approved your recent request for a Citizens Bank Busing Line Account ("Credit Line") with a credit limit amount of $ 100 000.00 Your Annual Percentage Rate will be based upon an Index as out ine to a enc o Business Credit Line Agreement ("Agreement") plus a Margin of 1.000 %. Ple the Agreement carefully before using the Business Credit Line Account. s do - 7E- incorporated by reference into the enclosed Agreement and shall be considered as a!] thereof. Credit read nt is For your convenience, we have enclosed a book of temporary checks. You may begin to utilize these checks immediately. A Business Credit Line checkbook has been ord for you and you should receive it within 10 to 14 days. If you have any questions concerning your new Credit Line, please feel free to 1-800-4-BUSINESS. Thank you for choosing Citizens Bank as your Business Partner. CITIZENS BANK Retail Lending Services us at Rev. 07/05 SBWelcome EXHIBIT "C" Xf itizens Bank LENDER: Citizens Bank of Rhode Island 1 Citizens Plaza Providence, R102903 Citizens Bank of Connecticut 63 Eugene O'Neill Drive New London, CT 06320 2 BUSINESS CREDIT LINE AGREEMENT Citizens Bank New Hampshire 675 Elm Stmt Manchester, NH 03101 E] Citizens Bank of Massachusetts 26 Stab Street Boston, MA 02109 ? If checked here, this loan is guaranteed by the Small Business Administration /"SRA"1 Suite 200 This Business Credit Line Agreement (he "Agreement") sets forth the terms of a credit line ("Credit Line") estab ("Approval Letter") from the Lender ("lender" "w " " " " " etter , e , us or our ) identified above to an applicant (the "Borro Borrower has submitted an application ("Application") for the C redit Line which i The ncorporates thterms of this r evidence the obligation to repay sums advanced under the Credit Line. Certain person(s) ("Guarantor") have, or guaranty obligations under this Agreement The B ference to re F . orrower and any Guarantor irrevocably accept he terms of the Agreement by the Borrower taking an advance Advance") under the Credit Line. The words "you" and "yours" each of them if more than one and "we " "o " d " " , r and this hee, wer a d , , ur, an us mean the Lender. The term "Loan Documents" means t Agreement, he Approval Letter, any guaranty and any other documents executed in con ti , n this nec on with the Credit Line 1. Credit Limit We have established a Credit Line for your short-term borrowing needs with a limit (he "Credit) L Approval Letter. The Credit Limit is the maximu i i imit") set forth in the m pr nc pal amount you may have outstanding under the Credit Lire reserve the right, in our sole discretion, to reduce your Credit Limit or termi t at any time. We na e your Credit Line as provided below; 2. Purpose. This Credit Line is for business purposes only, and may not be used for consumer, household or other p ersonal purposes. 3. Loam. (s) We agree to make Advances to you until the occurrence of an Event of Default (as defined in Para notice of termination of the Credit Line; provided that he aggre ate rinci l pit 17, below) or g p pa amount outstanding does not exceed the agree to repay the Advances in accordance with this Agreement. Credit Limit. You (b) Letters of Credit: If there is no Default under his Agreement, Borrower shall be entitled to request mmercciial or standby letters of credit under this Agreement (subject to he limitations desc ib d b hat he Lender issue co r e a ove) pursuant to th ? following (I) Issuance of Letters of Credit From time to time on any business day occurring prior to Default ord nnand hereunder, the Borrower may request the issuance of commercial or standby letters of credit (each a "Letter of Credit" and collectiv 1 , "Letters of Credit") for its own account in respect of obligations of the Borrower in stated face amounts (each such stated face nt not to be less than S 1,000) requested by the Borrower on such day with an expiry date not later than he earlier of one year from ate of such issuance; or extend the expiry date of an existing Letter of Credit previously issued hereunder to a date not later than a year from the date of such extension. No issuance or extension of a Letter of Credit shall be made if, after giving effect thereto: (a) the aggregate face amoyn of all outstanding Letters of Credit, 2191 (b) he aggregate outstanding principal amount of all outstanding advances under, is A greater then (c) the principal amount of this Agreement, greement jg To request the issuance of a Letter of Credit (or the extension of an outstanding Letter of Credit) the Borrower shall h deliver to the Lender a notice requesting the issuance of & Letter of Credit, or identifying the Letter of Credit to be extended the da f issuance or extension, he date on which such Letter of Credit is to expire (which shall comply with the limitations set out above) well as submitting he appropriate letter of credit application on the Lender's standard form. By requesting the issuance of a Letter of Credit (or the extension of an outstanding Letter of Credit), and by signing erder's standard form of letter of credit application. Borrower will be deemed to have agreed to the terms of this section of this A ;t (captioned "LETTERS OF CREDIT"). Each Letter of Credit issued by he Lender shall be, in addition to the terns hereof, subject to the terms and conditionsjo any form of letter of credit application or other agreement submitted or entered into by the Borrower in connection with the i Credit. In the event of any inconsistency between he terms and conditions of this A of any Letter of ree, 1°e0t the Loan Agreement, the terms a of any forth letter of credit application or other agreement submitted entered into by the Borrower i connection with the i ance of any Letter of Credit, the terms and condition of such letter of credit t application or other agreement shall control (if) AVaBable Credit The credit available under this Agreement shall be reduced by he amount of all is and outstanding Lettersof Credit In the event hat he Lender pays any draft under any Letter of Credit, he Lender may charge he t of such draft as an advance under this Agreement, and such advance shall bear interest under and be subject to all of the other termmslo this Agreement. (W) RelmbursemeaL If the Lender shall honor or otherwise make any disbursement in respect of a Letter f Credit, the d sbursementlnot later than he close of b sineon principal the day such dsbursementis made. b Notwihstandin he foo 0' t equal to such r may, subject to the terns and conditions of this Agreement, request that such reimbursement 6 edbyO1° a Borrower payment be fi hereunder. The Borrower acknowledges and agrees that the Lender is under no obligation to o honor any a li that unleessoce the Borrower shall reimburse the Lender in fire on the date such disbursement is made, the unpaid amount thereof shall b interest, for each day from and including he date such tut-reimbursed disbursement is made to but excluding the date that he Bo reimburses such disbursement, at the rate per annum then applicable to advances hereunder, (Iv) Letter of Credit Fees. The Borrower agrees to pay to the Lender a Letter of Credit fee in an amount 'I ual to the then applicable interest rate for advances hereunder multiplied by the stated face amount of all Letters of Credit outstanding, s ch fee to be paid monthly in arrears in accordance with the payment schedule set out below. The Borrower further agrees to pay to h Lender (i)on the date of (x) the issuance of each Letter of Credit (y) each increase in the stated face amount hereof and (z) each exit ion (automatic or otherwise) of the stated expiry date hereof, an issuance fee as provided for in the letter of credit application or other b ent submitted or entered into by he Borrower in connection with such issuance, increase or extension, and (ii) all reasonablk sts and expenses incurred by the Lender in connection with such Letter of Credit. (v) Cash CollsteraBzatlon. If the Lender shall make demand hereunder or upon the occurrence of any De an It, on the day that the Borrower receives notices from the Lender demanding the deposit of cash collateral, he Borrower shall deposit ' an account with he Lender, in he name of and for the benefit of the Lender, an amount in cash equal to the aggregate amount of alt Lett of Credit then outstanding. Such deposit shall be held by the Lender as collateral for the payment and performance of the obligations f he Borrower with respect to such outstanding Letters of Credit, this Agreement, he Loan Agreement, and any application or agreeme it submitted or entered into by the Borrower in connection with the issuance of any Letter of Credit The Lender shall have exclusive di on inion and control, including the exclusive right of withdrawal, over such account. Other than interest earned on the investment of h deposits, which such investments shall be at the option and sole discretion of the Lender and at the Borrower's risk and expense, h deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such count shall be applied by the Lender to reimburse the Lender for Letter of Credit disbursements for which it has not been reimbursed d to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of he Borrower for outstanding Letters o Credit, or, if rrequ ?has rro? ?eamount of cash ?plateraal satisfyother as obligations of the Borrower under this Agreement of the occurrence of a Default, and the Lender hal fran nfrom demanding payment hereunder, such amount (to the extent not applied as aforesaid) shall be retuned to the Borrower with 13 business days after all Defaults have been cured or waived. SBLOC - 06/05 Page 2 4. Fees. The following fees apply to your Credit Line: a) Packaging Fee. Upon acceptance of the Approval Letter, by requesting an Advance or otherwise, you may be required to pay us a packaging fee of $250 (less any fee paid in connection with the Application) by means of an Advance under the Credit Line, which shall not be subject to any refund upon termination. b) Annual Fee. On each yearly anniversary of the date of this Agreement, you shall pay us an annual fee of S 100 by means of an Advance under the Credit Line which shall not be subject to any refund upon termination. c) Late Fee. If any payment is not made within fifteen (15) days after it is due, you may be required to pay us a late fee of (i) $35, or (ii) five percent (5"/.) of the overdue payment, whichever is greater. d) Collection Fees. If any payment is not made when due, you will pay us any reasonable collection costs including, but not limited to, legal fees and court costs. 5. Interest Rate. The outstanding principal balance of each Advance shall bear interest until paid at the Prime Rate plus a certain number of percentage points (the "Margin"). The initial Margin is set forth in the Approval Letter and does not exceed eight (8"/.) percent. "Prime Rate" shall mean the prime rate published in The Wall Sneer loumal as the prevailing prime rate at banks in the United States, or, if no longer published, a similar nu determined from a commercially accepted service chosen by the Lender. The Prime Rate is a reference rate and does not necessarily represent the lowest or beat rate charged to any of our customers. Interest rata adjustments under this Agreement shall be effective (i) with respect to the Prime Rate, on the same due that an adjustment is determined to have occurred, and (ii) with respect to any Margin adjustment, on the date set forth in a notice sent to you. Any interest rate adjustment shall be applicable to the entire balance outstanding under this Agreement, as well as to all Advances made thereafter under this Agreement. For SBA guaranteed loans, the interest rate will change on the first day of the calendar month following a change in the Prime Rate. This interest rate change will not occur more often than once each month. Interest shall be computed daily on the basis of a 365-day year (366 in any leap year) using the actual number of days elapsed. We may, within our sole discretion from time to time, but no earlier than one year from the date of the Approval Letter, increase or decrease the Margin. Any change in the Margin shall be effective upon not less than thirty (30) days' notice to you. You may, at your option, elect to terminate this Agreement rather than be bound by a change in the Margin. If you decide to terminate this Agreement, you must give us written notice of your decision to do so before the effective date of the change and you must pay all amounts outstanding under this Agreement prior to the effective date of the change. In PA, for business loans to ran-corporation borrowers in amounts less than or equal to S 10,000, the maximum allowable interest rate is currently 18% 6. Payments. This Agreement is payable ON DEMAND. Until demand is made, you shall pay the principal and interest according to the following schedule: You must make regular monthly payments on the date ("Payment Date") set forth in your billing statement. The first Payment Date will be one month after the date of the Approval Letter and monthly on the same day of the month thereafter. On each Payment Date, you must pay the following amounts: ? If the box at the beginning of this paragraph is checked, your regular monthly payments will be equal to the sum of (a) accrued interest and any other charges posted to the account at the close of the billing cycle, plus (b) any amount which is past due, plus (c) any amount by which the outstanding principal balance of the Loans exceeds the Credit Limit (except as a result of a reduction by us of your Credit Limit). This minimum monthly payment will not reduce the principal that is outstanding on the Credit Line, and will result in greater expenses over the life of the Credit Line Account. In addition to the minimum monthly payment set forth above, you agree that at least once during each 12 consecutive calendar month period (beginning on the due of the Approval Letter) you will reduce, for a period of 30 consecutive days, the principal balance of the Credit Line to not more than fifty percent (SOY.) of the highest outstanding principal balance on the Credit Line for the preceding 12 calendar months. Unless the box at the beginning of the preceding paragraph has been checked, your regular monthly payment will be equal to the sum of (a) accrued interest and any other charges posted to the account at the close of the billing cycle, plus (b) principal in the minimum amount of (i) $200.00, or (ii) two percent (2"/.) of the outstanding principal balance at the close of the billing cycle, whichever is greater (however, the minimum payment will never exceed the entire amount outstanding), plus (c) any amount which is past due, plus (d) any amount by which the outstanding principal balance of the Loans exceeds the Credit Limit (except as a result of a reduction by us of your Credit Limit). You may make additional repayments of principal at any time, but these additional payments will not release you from the obligation to make payments on the next Payment Date. Upon the occurrence of an Event of Default (as defined in Paragraph 17, below) or termination of the Credit Line, all amounts outstanding under the Credit Line will be due and payable in full. However, in our sole discretion, we may allow you to pay the amounts outstanding over a period of time ("Extension Agreement"). We will indicate our approval of an Extension Agreement by a natation on your billing statement or other written notice. Unless we indicate a different arrangement in written notice to you, an Extension Agreement will require monthly payments on the Payment Date equal to the sum of (a) accrued interest and other charges posted to your account at the close of your billing cycle, plus (b) one thirty-sixth (1/36th) of the principal balance outstanding when we terminated the Credit Line, plus (c) any amount which is past due. All outstanding amounts subject to an Extension Agreement will be due and payable in full if there is a subsequent Event of Default. Any payment due on a Saturday, Sunday or other banking holiday may be trade on the first day we are open after the date due, but interest and other charges shall be computed through the date on which payment is actually made. All payments will be made to Lender at the address on the billing statement in lawful currency of the United States of America. If you pay us with a check or similar instrument that has notations or instructions on or with the check, you agree that (i) we may ignore those notations and instructions except as expressly provided below; and (ii) we may credit any payment we receive to your Credit Line (including a check), and our crediting of that payment will not mean that we have agreed to any notations or instructions on or with that payment. If you want to pay the outstanding balance of the Credit Line in full with a check or similar instrument that has such special notations or instructions on it or with it, bur not close the Credit Line, you must send the payment (including special notations or instructions) to Loan Operations, Citizens Bank, 1 Citizens Drive, Riverside, RI 02915. If you want to pay the Credit line in full with a check or similar instrument that has such special notations or instructions on it or with it, and close the Credit Line, you must send the payment (including special notations or instructions) to Loan Operations, Citizens Bank, 1 Citizens Drive, Riverside, RI 02915. If payment in full is received at any other address, (i) we may ignore any special notations or instructions, and (ii) our crediting any such check or other instrument to the Credit Line does not mean that we have agreed to the special notations or instructions. 7. Requesting Advances, You may request an Advance by using the special loan checks we will give you. The following rules apply to your use of special loan checks. a) Lost or Stolen Special Loan Checks. You agree to tell us if special loan checks are lost or stolen, or if you believe someone is using your Credit Line without your permission. The fastest way to notify us of lost or stolen checks is by calling us at 1-800-4-BUSINESS. b) Forged Special Loan Checks. You agree that we do not have to pay any of your special loan checks if we believe the signature on the check has been forged, unless you tell us to. c) Postdated Special Loan Checks. If you date a special loan check with a date that is later than the date on which you actually wrote the special loan check, you agree that we may pay the special loan check, even if we pay it or post it to your Credit Line on a date which is earlier than the date on the special loan check. d) Stopping Payment on a Special Loan Check. You can ask us to stop payment on any special loan check you have written that has not been paid by calling us at the telephone number shown on your statement. An oral stop payment order will stay in effect for fourteen (14) days, unless you confirm it in writing or tell us to cancel it. You can confirm your sop payment order by writing to us at the address shown on your statement. A written sop payment request will stay in effect for six (6) months, unless you tell us to cancel it. e) We Are Not Liable. We will not be liable if anyone fails to honor a special loan check written by you. 0 0 e f) Paying Special Loan Checks in Excess of Your Credit Limit. We do not have to pay any special loan check that age 3 cause you to go over your Credit Limit. However, we may do so if we choose, would g) Paying Special Loan Checks After Termination. We will not pay any additional special loan checks' presented to us for payment after we send you notice of termination of the Credit Line (as provided in , below); If You terminate the Credit Line (as provided in Paragraph 14, below), paragraph 14 you will be re sponsiblefor paying any additional low special loan checks which arc presented to us for payment before we have had a reasonable amount of time hmplem make to your pterersentedmination to usnotifor pay Onment. ce. c ewe have implemented your to t be i re notice, we will not pay any tonal special loan checks S. Debit If you have so indicated on the Application and have completed an authorization on the form we provid to you, you authorize us to debit your Citizens Bank business checking account with us for all sums (including, without limitation, princi , interest and fees) payable under this Agreement and the Loan Documents; provided, however, that this provision shall not obligate us create or allow any overdraft, and further provided that such authority shall not relieve you of the obligation to assure that a menh sufficient good funds in your account. You understand that in exchange for your authorization to deduct our pay account we have reduced the interest rate payable under this Agreement P e ode if there are not revoke your authorization to debit payments from your checkincount by or one if percent automatic t a /e). if ou Y close our YY ty Is from your checking he 'ng account if yo u we have the right to increase the Margin on your Credit Line b one percent (I e to p ymentsare otherwise to 'noted for any mason, y prior notice made by automatic debit of your checking account, you must make payments to Lender tithe address on the bilou. ling lees tement in payments are currency of the United States of America. lawful 9. Bn" Sgtemenh. We will provide you each month with a billing statement showing the Payment Date, the inimum amount due on the Payment Date, the current interest rate, any changes in the interest rte, any Advances, all payments made, the p n ipal balance of all Advances, and other appropriate debits and credits. All entries in your account will be made in accordance with our stomary practices in effect from time to time. Any failure to record Advances, interest or other charges or any error in so recon ling shall not limit or otherwise reduce your obligations to us under the Loan Documents. The balance shown on our moat recent printout your ee account. nt absent manifest error or omission, will be presumptive evidence of the amounts due and owing by you to us under this A 10. Defaldt Iotereat After r the nt. judgment issued, we After the occurrence of an Event of Default (as defined in Paragraph 17, below), and Yh may pose, in our sole discretion, on all principal and otter amount outstanding and a abl nd be or after er° a Document, interest until paid in full at the rate (the "Default Rate") of four percent (4%) in excess of the rate desc ' in Paragraph S the Loan is currently 18% (above). For business loans to non-corporation borrowers in amounts less than or equal to S 10,000, the total maxima allowable interest raze 11, Maximum Rate of Interest All provisions of this Agreement are expressly subject to the condition paid or agreed to be paid to us hereunder and deemed interest under applicable law exceed the maximum rata of inter; allowed byte amount applicable law (the "Maximum Allowable Rate"). In the event that fulfillment of any provision of this Agreement that the interest rate hereunder is in excess of the Maximum Allowable Rate, the obligation to be fulfilled shall be red c practicable after such determination is made, to eliminate such excess. Any amount collected in excess ofthe Maxim h Advan as Allowable ton prior Advances. the date on which the obligation is reduced shall be applied to and deemed a prepayment of the unpaid princip bxi, as alance o tittle 12. Prepayment You shall have the right at anytime and from time to time to whole or in par, without premium or penalty, but with accrued inure[ and other charges the prepaid to the day of such prepaym t on the amount 13. Redaetba of Credit Line, We may reduce your Credit Limit at any time, in our sole discretion, by written to you. Any reduction will be effective on the date specified in our notice (which may be the date of the noise). You will not b.1 led to further Advances if the aggregate principal anhount of all Advances outstanding would exceed the reduced Credit Limit. [ amount of all Advances outstanding exceeds the reduced Credit Limit on the effective date of the reduction, you mepee phi c pa to reduce the outstanding principal balance to the reduced Credit Limit within Chi Bak Principal I4. Termination The Credit Lire will fermi (30) days of the effective date of uction. Hate automatically upon the occurrence of an Event of Default (as din Paragraph 17, below). We may tetminate the Credit Line at any time, in our sole discretion, upon a date specified in written notic be at least tarty (30) days after the date of our notice. You will not be entitled to further Advances from the date of termination is effective at a future date. Upon termination, all amounts owing under the which date will You may terminate the Credit Line tantime by g Loan Documents shall be dlice, even though charges. Y written noti cc to us, provided there is no outstanding balance be payable in full. 13. Representation and Warrantla, you pip ,interest or other to us b represent and warrant that (i) all information contained in the A y You or any Guarantor is accurate and complete, (ii) if you are not an individual, you are duly organized, ed standing under the law of the state where pplication o otherwise furnished you are organized, (iii) you have all material your business, (iv) the Y rgnd r, validly fisting and in good a your business, n and any Guarantors, signing the Loan Documents is duly authorized, licensee, permits and rc alidatio gainst you y Guarantors, and (vi) you are under no le oultee Loan Documents are valid, bind to conduct gal restriction that would prevent borrowing under this Agree ? enforceable 16. Cevemash. you covenant and ant. operate in ccoMa with all agree (r) to keep the representations and warranties contained in Paragraph 15 e at all times; (ii) to us with such information present and future laws and governmental regulations; (iii) to pay all your obli allow us and our reproore tatives garding your business and financial condition, and that of any g uarantors, w 11 ue; (iv) to famish to inspect your business operations and books and record r uara to as we may rasp request; (v) to upon reasonable notice; (vi) to maintain the current name of your company s ( ake copia thereo t reports with your jurisdiction of organization; and (vii) to refrain Rom ndior business ssolution, consoliddatiobn tm t ler, sale of li I necessary mee ordinary course, or change of ownership. ? outside the 17. Evens of Def ialL The occurrence of any of the following ("Event of Default") with respect to an constitute a default under the Loan Documents: Y Borrower or an Guarantor shall (i) failure to pay when due any principal, interest or other charge relating to the Advances; (ii) failure of any representation or warranty made in connection with any of the Loan Documents to be true when made; (iii) delivery of any false or misleading certificate, financial statement or other written document in connection with the Adv?incces; (iv) failure to observe any covenant contained in the Loan Documents; (v) overdraft of any checking account with the Lender, (vi) default under any agreement with the Lender (whether in the Loan Document or otherwise); (vii) notice from any Guarantor terminating a guaranty, death of a Guarantor, or assertion that a all Advances; guaranty is not in full forck arhd effect as to (viii) suspension of business for a reason other than strike, casualty or other cause beyond your control; (ix) commencement of any voluntary or involuntary proceeding under the Bankruptcy Code, appointment ofa custodian (as efnedinthe Bankruptcy Code), commencement of any otter insolvency proceeding, or inability to pay debts generally as they become dui; (x) attachment or other judicial encumbrance of property; I (xi) occurrence of any material uninsured casualty loss; II ( t Page 4® zii) indictment for criminal activity; or (xiii) any material adverse change in financial condition or business prospects which leads the Lender to believe that performance of any agreement or undertaking with the Lender is or may be substantially impaired. 18. Remedies. Upon the occurrence of an Event of Default (as defined in Paragraph 17, above), (i) you shall have no further right to borrow under the Credit Line, (ii) all outstanding amounts under the Credit Line are due and payable, (iii) the outstanding amounts shall earn interest at the Default Rate, and (iv) we have the right to bring suit and exercise all rights and remedies available under applicable law. 19. Cost of Collection. You agree to pay all expenses incurred by us in connection with the enforcement of our rights under the Loan Documents to the extent allowed by law including, but not limited to, all appraisal, accounting and legal fees (including, but not limited to, allocated costs of in-house counsel) and related disbursements. 20. Notices. All notices shall be in writing, mailed to or delivered to each party to the following addresses: If to the Borrower or Guarantor, at the address set forth in the Application; If to the Lender, Citizens Bank, Business Banking Center, One Citizens Drive, Riverside, RI 02915; Or such other address as any parry may specify by prior notice to the other party. 21. Amendments nod Waivers. The Loan Documents may be amended only by (a) writing signed by the Leader and the Borrower, or (b) the Lender providing written notice to the Borrower at least thirty (30) days prior to the proposed effective date of the amendment. If the Lender proposes an amendment upon thirty (30) days' notice, the amendment will become effective without the signature of the Borrower unless the Borrower gives notice to the Lender prior to the proposed effective date that the Borrower does not accept the amendment. No delay in exercising any right shall constitute a waiver or affect our right to act at a later time. No waiver or consent shall be effective unless in writing signed by the party granting the waiver or consent. No waiver of an Event of Default (as described in Paragraph 17, above) or specific provision shall affect any other Event of Default or other provision. Any waiver shall be effective only for the specific instance indicated in the waiver. 22. Joint and Several Obligations. If the Application is signed by more than one Borrower, all obligations of the Borrowers under the Loan Documents are their joint and several obligations, and all references to the Borrower herein shall be deemed to refer to each of them, either of them, and all of them. 23. Cumulative Remedies; Setoff. The rights and remedies provided the Lender in this Agreement and in the other Loan Documents shall be cumulative and shall be in addition to and not in derogation of any rights or remedies provided the Lender in any other document, instrument or agreement or under applicable law and may be exercised concurrently or successively. The Borrower grants the Lender the right of setoff against all deposits and property of the Borrower now or hereafter in the possession of the Leader without regard to the adequacy of collateral. 24. Entire Agreement; Assignment; Successors and Assigns. The Loan Documents supersede all prior agreements between the parties with respect to the Credit Line, whether oral or written. The Loan Documents constitute the entire agreement between the parties with respect to the Credit Line. Borrower shall not be entitled to assign any of its rights or obligations under the Loan Documents without Lender's prior written consent. Lender shall be entitled to assign some or all of its tights under the Loan Documents without notice to or consent of Borrower. This Agreement and the Loan Documents shall be binding upon and inure to the benefit of Borrower, Lender and their respective successors, assigns, trustees, receivers, administrators, personal representatives, legatees and devisees. 25. Leader Liability. The Lender shall not be liable for any loss sustained by any party resulting from any action, omission or failure to act by the Lender, whether with respect to the exercise or enforcement of the Lender's rights or remedies under the Loan Documents, or otherwise, unless such loss is caused by the actual willful misconduct of the Lender conducted in bad faith. IN NO EVENT SHALL THE LENDER EVER BE LIABLE FOR CONSEQUENTIAL OR PUNITIVE DAMAGES, ANY RIGHT OR CLAIM THERETO BEING EXPRESSLY AND UNCONDITIONALLY WAIVED. 26. Indemnification. The Borrower hereby indemnifies and agrees to protect, defend and hold harmless the Lender and the Lender's directors, officers, employees, agents, attorneys and shareholders from and against any and all losses, damages, expenses or liabilities of any kind or nature and fiom any suits, claims or demands, including all reasonable counsel fees incurred in investigating, evaluating or defending such claim, suffered by any of them and caused by, relating to, arising out of, resulting from, or in any way connected with this Agreement, the Application, the other Loan Documents and any transaction contemplated herein or therein including, but not limited to, claims based upon any act or failure to act by the Lender. If the Borrower shall have knowledge or any claim or liability hereby indemnified against, it shall promptly give written notice thereof to the Lender. The Borrower acknowledges that this covenant shall survive payment of all Advances. 27. WAIVER OF TRIAL BY JURY. THE LENDER, THE BORROWER AND ANY GUARANTOR HEREBY VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST THE LENDER, THE BORROWER OR ANY GUARANTOR OF ANY KIND, IN ANY COURT, ARISING OUT OF THIS AGREEMENT, THE APPLICATION, THE OTHER LOAN DOCUMENTS OR ANY RELATED DOCUMENTS. 28. WAIVER OF PREJUDGMENT HEARING. THE BORROWER AND ANY GUARANTOR (i) ACKNOWLEDGE THAT THIS AGREEMENT IS A PART OF A COMMERCIAL TRANSACTION AND (ii) TO THE EXTENT PERMITTED BY ANY STATE OR FEDERAL LAW, WAIVE THE RIGHT THE BORROWER OR ANY GUARANTOR MAY HAVE TO PRIOR NOTICE OF AND A PRIOR COURT HEARING ON THE RIGHT OF ANY HOLDER OF THIS AGREEMENT TO ANY REMEDY OR COMBINATION OF REMEDIES THAT ENABLES SAID HOLDER, BY WAY OF ATTACHMENT, FOREIGN ATTACHMENT, GARNISHMENT, REPLEVIN, OR OTHER PREJUDGMENT PROCESS TO DEPRIVE THE BORROWER OR ANY GUARANTOR OF PROPERTY, AT ANY TIME, PRIOR TO FINAL JUDGMENT IN ANY LITIGATION INSTITUTED IN CONNECTION WITH THIS AGREEMENT, AND FURTHER WAIVES ANY REQUIREMENT OF LENDER TO POST A BOND OR OTHER SECURITY IN CONNECTION WITH SUCH REMEDY. 29. Consent to Jurisdiction. The Borrower and any Guarantor consent to the personal jurisdiction in any court of the state in which the main office of the Lender is located. 30. Waiver of Personal Service. The Borrower and any Guarantor waive personal service of process in connection with any action or proceeding commenced by the Lender in connection with the Loan Documents, agreeing that such smite may be made by certified mail to the address specified in this Agreement for notices. 31. Descriptive Headings; Context. The captions in this Agreement arc for convenience of reference only and shall not define or limit any provision. Whenever the context requires, reference in this Agreement to the neuter gender shall include the masculine and/or feminine gender, and the singular number shall include the plural and in each case, vice versa. 32. Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in any certificates delivered pursuant hereto shall survive any making by the Lender of any Advances and the execution and delivery of any Loan Documents and shall continue in full force and effect until this Agreement is terminated and all obligations of the Borrower to the Lender are paid in full. 33. Choice of Law. This Agreement and all other Loan Documents arc entered into under and shall be construed, interpreted, enforced and governed by the laws of the state in which the Lender's main office is located. 34. Maine Disclosure. If the address for the Borrower is Maine, the following notice applies: Notice. Under Maine law, no promise, contract or agreement to lend money, extend credit, forbear from collection of a debt or make any other accommodation for the repayment of a debt for more than 5250,000 may be enforced in court against Lender, unless the promise, contract or agreement is in writing and signed by Lender. Accordingly, Borrower cannot enforce any oral promise to extend credit unless it is contained in a written document signed by Lender, nor can any change, forbearance, or other accommodation relating to any extension of credit by Lender to Borrower be enforced, unless it is in writing signed by Lender. 35. Seal. This Agreement is made as an instrument under seal. VERIFICATION John A. Gibbons, Assistant Vice President and duly authorized representative of C?tizens Bank of Pennsylvania, deposes and says subject to the penalties of 18 Pa. C.S.A. §4904 t lating to unworn falsification to authorities that the facts set forth in the foregoing pleading e true and correct to his information and belief. I John ssis t i e President itize of Pennsylvania 0 FILED- CiFFICE Ili: 1 1 f?.l I 2004 SEP 14 AM 11. 14 G\?A ? i! d e ?7a . sv i cL ??.1 ewl ?'-- .230Sa.C? Sheriffs Office of Cumberland County R Thomas Kline Sheriff ?QUtxt?+ at ?u+nbrrr?h? OF' :=f F--E -r, µRiF ..,. T} Ronny R Anderson Chief Deputy Jody S Smith Civil Process Sergeant Edward L Schorpp Solicitor 2CC9 SEE 21 ki i ? 5 ? Citizens Bank of Pennsylvania vs. Curtis A. Miller Case Number 2009-6191 SHERIFF'S RETURN OF SERVICE 09/15/2009 03:35 PM - William Cline, Deputy Sheriff, who being duly sworn according to law, states that on September 15, 2009 at 1535 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Curtis A. Miller, by making known unto Beth Miller, wife of defendant at 21 Lenox Court Mechanicsburg, Cumberland County, Pennsylvania 17050 its contents and at the same time handing to her personally the said true and correct copy of the same. SHERIFF COST: $37.44 September 16, 2009 SO ANSWERS, R THOMAS KLINE, SHERIFF By De ty Sheriff ~,._ ~,. 2010 J~! -6 P~9 !2~ ~2 IN THE COURT OF COMMON PLEAS Ol~~~~~1~lr. E~AND COUNTY, PENNSYLVANIA CITIZENS BANK OF PENNSYLVANIA, Plaintiff, vs. CURTIS A. MILLER, Defendant. CIVIL DIVISION NO.: 09-6191 TYPE OF PLEADING: PRAECIPE TO SETTLE AND DISCONTINUE WITH PREJUDICE FILED ON BEHALF OF: Citizens Bank of Pennsylvania, Plaintiff COUNSEL OF RECORD FOR THIS PARTY: Joseph A. Fidler, Esquire Pa. I.D. # 87325 GRENEN & BIRSIC, P.C. One Gateway Center Ninth Floor Pittsburgh, PA 15222 (412) 281-7650 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CITIZENS BANK OF PENNSYLVANIA, CIVIL DIVISION Plaintiff, vs. CURTIS A. MILLER, Defendant. NO.: 09-6191 PRAECIPE TO SETTLE AND DISCONTINUE WITH PREJUDICE TO: PROTHONOTARY SIR: Kindly settle and discontinue with prejudice the above-captioned matter and mark the docket accordingly. GRENEN & BIRSIC, P.C. BY: lei; s wire rney for Plaintiff Sworn to and subscribed before me this~day of_~~ , 2010. ~ .~f~~~~~ ~ n~~h ~~ Notary Public COMMONWEALTH OF PENNSYLVANIA Notarial Seal Patricia A. Townsend, Notary Public City of Pittsburgh, Allegheny County My Commission tacpirea June 2, 2011 Member, Pennsylvania Association of Notaries