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HomeMy WebLinkAbout09-8417J IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, Plaintiff, VS. Eugene M. Hays, Defendant. To: Eugene M. Hays, Defendant: No. - 840 V+I?GfM+ Action in Mortgage Foreclosure NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney, and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or 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, 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 1-800-990-9108 717-249-3166 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. Plaintiff, VS. Eugene M. Hays, Defendant. To: Eugene M. Hays, Defendant: Action in Mortgage Foreclosure AVISO USTED HA SIDO DEMANDADO EN LA CORTE. Si usted desea defendersee de las quejas expuestas en las p6ginas siguientes, debe tomar acci6n dentro de veinte (20) dias a partir de la fecha en que recibi6 la demanda y el aviso. Usted debe presentar comparecencia escrita en persona o por abogado y presentar en la Corte por escrito sus defensas o sus objeciones a las demandas en su contra. Se le avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin mas aviso o notificaci6n por cualquier dinero reclamado en al demanda o por cualquier otra queja o compensaci6n reclamados por el Demandante. USTED PUEDE PERDER DINERO, O PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA LISTED. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI USTED NO TIENE O NO CONOCE UN ABOGADO, VAYA O LLAME A LA OFICINA EN LA DIRECCION ESCRITA ABAJO PARA AVERIGUAR DONDE PUEDE OBTENER ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 2 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Adams County National Bank, No. Plaintiff, vs. Action in Mortgage Foreclosure Eugene M. Hays, Defendant. COMPLAINT AND NOW, this 3 roL day of December, 2009, comes the Plaintiff, Adams County National Bank, by its attorneys, Puhl, Eastman & Thrasher, who bring this action in mortgage foreclosure against Eugene M. Hays, Defendant, whereof the following is a statement: 1. The Plaintiff is Adams County National Bank, Mortgagee, a national banking corporation organized and existing under the laws of Congress relating to national banks, with its main office at 16 Lincoln Square, Borough of Gettysburg, Adams County, Pennsylvania 17325. 2. The Defendant is Eugene M. Hays, an adult individual who resides at 861 Lexington Place, Lewisberry, York County, Pennsylvania 17339. 3. Defendant, Eugene M. Hays, is not in the military or naval service of the United States or its allies within the provisions of the Servicemembers Civil Relief Act of 2005, 50 App. U.S.C.A. § 501 et seq. 3 4. On January 3, 2007, the Defendant, made, executed and delivered a mortgage upon real estate hereinafter described to Plaintiff as Mortgagee, which mortgage is recorded in the office of the Recorder of Deeds of Cumberland County, Pennsylvania in Record Book 1979 at page 552, a copy of said mortgage being attached hereto and marked as Exhibit "A" and incorporated herein by reference. 5. The mortgage secures Defendant's note dated January 3, 2007, in the amount of $466,000.00, payable to Plaintiff in monthly installments with interest adjusted as per terms of the note, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference. 6. Said mortgage has not been assigned. 7. The real estate is described as follows: ALL that certain lot or parcel of land situate in the Borough of Lemoyne, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a point, the southwest corner of Bosler Avenue and Fifth Streets, thence in a southerly direction along the western side of Fifth Street one hundred fifty (150) feet to a point on the northerly line of Apple Alley; thence in a westerly direction along the northerly line of Apple Alley seventy-five (75) feet to a point; thence in a northerly direction along a line parallel with Fifth Street one hundred fifty (150) feet to a point on the southerly line of Bosler Avenue; thence in an easterly direction along the southerly line of Bosler Avenue seventy-five (75) feet to a point, the place of BEGINNING. BEING Lots Nos. 109 and 110, Block D, Plan No. 1 of Riverton, said Plan being recorded in the Office of the Recorder of Deeds of Cumberland County, in Deed Book J, Volume 4, Page 40. LESS, HOWEVER, a piece of ground five (5) feet by seventy (70) feet, a portion of Lot No. 109, previously conveyed to Philip H. Frank, et ux, on April 15, 1946, as is more particularly shown at large in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book F, Volume 13, Page 242. 4 HAVING THEREON ERECTED a building known as 119 South 5 h Street, Lemoyne, Cumberland County, Pennsylvania. BEING THE SAME TRACT WHICH William A. Aiello, by his Deed dated January 3, 2007, and recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania in Record Book 278 at page 1731, sold and conveyed unto Eugene M. Hays, a/k/a Eugene Hays, a married man 8. Said mortgage is in default because the payments of principal and interest, which have become due and payable on July 3, 2009, and on the 3rd day of each month thereafter, remain due and unpaid. By the terms of said mortgage and at the option of Plaintiff, the whole of the said mortgage debt and interest is immediately due and payable. 9. The present owner of the real estate is the Defendant, Eugene M. Hays. 10. By reason of the aforesaid default, the following amounts are due in accordance with the terms of the mortgage: (a) Balance of unpaid principal $436,376.72 (b) Interest from 06/04/09 to 11/30/09 $ 13,092.98 (Plus $72.73 per diem thereafter) (c) Late charges to 11/30/09 $ 202.86 (Plus $101.43 per month thereafter) (d) Other fees $ 671.50 (e) Attorney's commissions $ 22,517.21 TOTAL $472,861.27 11. The attorney's commissions set forth above are in conformity with the mortgage documents and Pennsylvania law and will be collected in the event of a third party purchaser at Sheriff's Sale. If the mortgage is reinstated prior to the Sheriff's Sale, reasonable attorney's fees will be charged based upon legal work actually performed. 12. The aforesaid mortgage is not a residential mortgage under the provisions of Act 91 of 1983 and Act 6 of 1974, as amended. WHEREFORE, Plaintiff demands IN REM judgment in mortgage foreclosure for the 5 sum of $472,861.27, plus interest from December 1, 2009, at a per diem of $72.73, additional late charges, costs of suit, and other charges collectible under the terms of the mortgage; for the foreclosure and sale of the mortgaged property; and for other relief as the Court deems appropriate. Respectfully submitted: PUHL, EASTMAN & THRASHER By: &4?t4a Edward G. Puhl, Esquire Attorney ID Number 55709 Attorney for Plaintiff 220 Baltimore Street Gettysburg, PA 17325 (717) 334-2159 6 COMMONWEALTH OF PENNSYLVANIA, : SS. COUNTY OF ADAMS. Susan M. Saylor, being duly sworn according to law, does depose and say that she is the Assistant Vice President, Collections, of Adams County National Bank, and that the facts set forth in the foregoing complaint are true and correct to the best of her knowledge, information and belief. /Susan Saylor Sworn to and subscribed before me this J144 day of J^Xe-4MbW 2009. W. G Notary Public COMMONWEALTH OF PENNSYLVANIA Normal Seal My commission expires: Leslie R Gdrm. Notary Put*c G@Kyab" ft% Adams County My Calmta m Eaq wOct.2% 2011 Member, PenraylvNle AseoMOM of Noterlss 7 Ll Prepared By: " Sphum laTI URD BANK Nam COMM P9AWPA 17315 '?..':?' ?'. ZIEsLER 46? AN 11 RIB 3 07 Retum To: Ate cow VhTxClQL Rum SAVMIWI?A 17325 p9rw Number - , 1a - a t - oa6s' - as 7 Premises: 119 Som STE STR"T I,BMDm pA 17043 .._.Com .mxi -,.r of Paraayl w" Space Above TNs LMe For ftow n Dl"-- o ND Mm"" This MortpW escums future advances The data of this MorWP (SecurltY MsWmanl 1. DATE AND P/1pTfE8. ..wa 3 ZGC7__end the parties, their addresses and tax idendit* lon ri numbers, If required, are as follows. MORTGAGOR: Ual M Iwo ttskl 17733399 Olf chocked, refer to the attached Addendum k"Mom"d h1ersM, for sd&iwW Mortgagors, their signatures and acknowledgments- ??TMa??? a? f d 14) ?, ?yo?var?araui 1M11?? ? Arr wi wwt ? Iva f ??1, 7001 NIIYM ?Y?R Ms., ft CYr?. MI ?M 11000?M 3010 113 EXHIBIT A page 1 of 16 IN1939K0552 LENDER: ADAMS Comm MTICML BANE; PO B= 3129 GETTY SM PA 17325 2. CONVEYANCE. For good and valuable consideration, the n©dpt and sufficeacy of which Is ackravrlsdlpsd, and to secure the Secured Debt ldefN»d below) and performance under this Seowity InstrumarK, MortpW Wants, ba rconveeys and mortgages to Wxler the following described property: SZ9 ATUCEMD LIM DESCRIPTION The property is located in L!>? at Ounty) 170 3 lie WHOMa , pennsyivania (Address) ( 1 Code) (Zip T yr with all rights, essements, ance appurtens, royeitm, Mineral rights, 04 and gas rights, crops, timber, al diversion payments Or third party paymarKs made to crop producers, all water and riparian fv ts, wells, ditches, ?eeervo(rs, and water stock and all existing and future ImpMCrvemerrts. structurres, ftvx s. and replacements that may raw, or at time In the future, be part of the real estate described above fall referred to ass"1. 3. MAxwm OEUQATION UNIT. The total princ ul amount secured by this Security Instrument at any one time shall not exceed 1 Age, 6-ag ses This flmitation of amount doss not Include interest and sr to" • elm validly made pursuant to this Security Instrument. Also, this imitation does not apply to advances made under the terms of this Security k1strument to protect Lender's security and to perform any of the covenants contained In this Security Instrument. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt Incurred under the terms of all promissory nooteW, contract(s), guarantylies) or other evidence of debt described below and all their extensions, renewals, moddfications or substitutions. (Won nOWwrCft the &AW 2 of 10 4kfjjP#,? • 1004 SW w+n.ONON96 NO. N. prAk MN ,w. A00" MM 10=0, son, s:s E.Xj IT A Page 2 of 16 deft balow it is suggested drat you kmk die hems such as borrowers' nerves, note amounts, rarest rates, metwity &M, etc.! BDRFAYM: scrams M RM LOU AMOUNT: $ 666,000.00 IMMO T RhTSs 7.000 % NhTMtM DWMt 01/09/2027 B. AN future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory rata, contract, guaranty, or other evidence of debt existing now or executed after this Security Instrument whnther or not this Security Instrument Is specifically r+eferI owd. If more than one person signs this Security Instrument, each MoAgegor agrees that this Security Imst<tarent will secure ell future edvalcae and future obNgstions that we given to or incurred by any one or more Mortgagor, or aarrk? one or more or and others. AN future advances and other future d1? this Security inetrxrent awn though all or K oblimgitiors are ;e= may not yet be advanced. All future ad - @ -0 1 and other futurs we secured as if made on the date of this Security Instrument. in this Security instrument shah consthub a commitment to make additions or future loans or advances in any amount. Any such commitment must be ?s? to in s aparate wridrg. C. ATI o Ngations Mwtpapor owes to Lender, which row exist or may later arise, to the extent not prohibited by law, including, but not limited to, iiabiiitku for Overdraft rok ft to any deposit account preemerrt between VWV arrd Lender. D. All WonaI sums advanced and expenses Incurred by Lender for Insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses Incurred by Lender under the tern of this Security instrument. This Security instrument will not secure any other debt If Lender fails to give any required notice of the right of rescission. 5. PAYRIOM. MortgW agrees that all psyments under the Secured Debt will be paid when due and in accordance with the terms of the Secured Debt and this security Mstrument. 8. WAfVU TY OF TRLL Mortgagor warrants that Mortgagor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain. convey, sell, and mortgage the Property. Mortgagor also warrants that the Property is unencumbered, except for encumbrances of record. 7. PRM SWJMTY OffR1 WS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security Interest or encumbrance on the Property, Mortgagor agrees: A. To make all psymems when due and to perform or comply with all covenants. 011 gb ~ 0,.K boo, &M*,n fr.w. rue.. St ave. IAA IW. Aooa+M.N VOW U3 EXHIBIT A Page 3 of 16 % T.'!:1 ?s?. OK 1-979PS0554 ?:?.VM rte` fam to to Ls sn11 r'°Ri<°os tot IiAot,o to ?? ;SAW Og Mod" C. tutlKs"R, Ow !r;7A* ;iWAOut " spar veto, u p aw'"'?rnmsv W* dA me** A sore" do. imb ?.w $• Mw,rn?r? v d%ka?ntms o? to Of to dt to ca ww or 6 to tov* rate woo ?rPdh? derwo upon to mwn?,?y vM na?y, sc SmA Ps'?? Iwnot i 19 ' Old im 00 Ws on od p,?,t?tA ,vf? tla"sw A YSeaw 8• 01 SGO Ctsat, b fitN1 eMm • pile 41, OOW (12 i C,F ??, , a'u ' k it z)' ? i erow itted! s ?s? is ssi°d_? 110 IAA,n or a s 40 - Of aw"WO 10. two ;Xiksm! said 01 vatOW 0 in D Id; ide"titY 6 Psi of'vo8riv stook d? A. ' ,We s It or vn OW *4 °M of °wr?rrtt ri sbav?' f? C. ao?sy d P"Tg?ouritYJ* on slow other "Owwsr. gmaf tlvs no. of ?TK adw Of VON Eta' s Ot ?ws ?yri ?? ? 'to iifAw * . s a+pu? ,r d? v ? M 4n0'?' POVO kw two tw• ODW Wf c+ari?Mnaw?°` k'do oo sates tri aot wKt FAoryOs , ,? t to 'to rod. oP?s as! ,lord p by $°`s' v... Of 10 M.. ? v r, WO A0040WA page 4 Of 16 A. Existing or future leases, sublesaea, licenase, 9uarsi des and any other written or verbal agrawnuits for the use and n e nupency of the Property, inckift but not Bmked to, any extensions. or roplaoarerrt (.oases). B. Rents, issues and groftta, inoludkp but not limited to, security deposit, minimum rents, psrcentags rents, addkWW ranks, common area maintenance charges, pwWV charges, rah estat taxes. other taxes, inarranos pWWurn contrlbutbns, ftdittsd damaoas default, cancellation pnemivnv. "lose of rN1te• inauranoe, guest receipts, r*MR e, , oveld ", pr0oeedi, bOrNINs, socow ts, oen"M fwft venal innangk**. and aN right and am rhos which Mortgagor may have that In any way pertain to or are on account of the use or occupancy of to whole or any part of the Property !Rants). In the event any Item listed as Leases or Rents is detwmined to be pawned property, this Assignment will also be regarded as a security agreement. Mortgagor will promptly provide Lender with copies of the Losses and will certify these Losses are true and correct copies. The exbft Leases will be provided on execution of the As*IWvv nt, and all future Loam and any other Information with respect to these Losses will be provided Immediately after they am executed. Mortgagor may oollsct, receive, enjoy and use the Rent so low as Mortgagor is not in default. Mo 1pW will not collect in advanos any Rents due in future lease .unties Morpagor fleet obt" lender's written convent. Upon default, will receive any Rents In trust for Lender and Mortgagor win not commklgle Rent with any other funds. When Lender so dlncts, Mortgagor will endorse and deliver any payments of Rents from the to Lender. Amount collected will be applied at L?srnder's cBsaadon to tied Debt, the costs of meneginw proteaft and preeervNV the property, and other neceeeary s es. Mortgagor agrees that this Security Ins manent is immediately A;R;; between Mortgagor and Lender and effective a to third parties on the recording of this AesipnNnent. As long as this Assignment Is In effect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Losses have not violated any applicable law on Neses, Waenees arnrdd landlords and tenants. Mortgagor, at its sole cost and expanse, will keep, observe and perform, and require all other to the Losses to comply with the Leases and any applicable law. If or any party to the Loom detaft r or fella to observe any applicabts law, will or refines to eMoroef commgor compliance with notify of Lander. Leasa,then neglects nay, at Lender's option, enforce compliance. Mortgagor will not sublet, modify, extend, cancel. or otherwise alter the Lou", or accept the surrender of the property covered by the Leases !unless the Leases so r ) without Lender's consent. Mortgegor will not aseign, oomprornhe, s or encumber the Leases and Rents without Lenders prior written OWN # Of i41 E%OWW • 10M. 3001 0d0n amour . Yom.. ft Gus/ m RMw Asw4m#A MMA?r EXHIBIT A Page 5 of 16 OK 1,979F6055-6' . C} i-Il aRT'A I - 5 . .. . _. . . the power of Mortgagor, have been duly audwrized, have received all orusgovernr ,agencymid not violate any provision of law, roassawy or order of court C. Oder than previoush? dlacloeed In writing to Lender, Mortgagor has not chuurgsd its name MOM the last tan yaan and has not used any other trade or fictitious now. Without Lard XI prior written consent, N r doss not and will not use any other nuns and wW pnaarw ib a?ip name, trade names and franchises until the secured Debt is satlsfisd. 12. PROpaTy COMMOm, ALTMATWM AND gNSl WTM. Mortgagor will keep the in good condition and make all repels that are reasonably rd"MORry. Mom apor shall not commit or slow any waste, Impairment, or deterlorstior eeds and Property. Mortgagor will keep the Property free of noxious Wasses. Mortgagor that the nature of the occupancy and use w will not press prior will not pp?ermkit substantially d-s vs wr ah?aut Lender's Now**, restrictive covenant or oomv*M without Lender's ?priorwritten any Mortawil notify aliof demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the y No portion of the Property will be removed, demoldW or materially altered without Lender's prior written consent except that Mortgasor has the dgM to remove Items of personal property comprising a part of the Property that become wom or obsolete, provided that such personal pnopsrty is replaced with other personal property at hen equal In vakus to the replaced personal property, free from manysnt *Is of personal device. security agreement auor oodw ennxwnbre noc. Such Interest created by tis h Security Instrument. Mortgagor hall not partitions or subdivide the Property without Lender's prior written consent. Lender spente nay, at Lender's option, enter the Property at any -8 sonable time for the of Inspecting purpose Property. Lender shat give Mortgagor notice at the O i or Was an limpection p a reasonable purpose for the =n. Any Inspection of do prr?perty " be entirely for Lender's bsnetit gagor wiN in no way rely on Lender's inspection. 13. AUT"0111ITY TO PE POW. If wq falls to perform any duty or any of the covenants contained in this ,Security stnurnsmc, Leader may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to Mortgagors name or pay asnruyy amount cess for'uforrrec. Lender's rO:n to perform for tpapor shall not create on eMeltion to perform, and Lender's failure to perform -not preclude Dander from exercising any of Lender's other rights under the law or fhb Security Instrument. If any -- truction on the maLsnder, maProperty q discontinued or not carried on in a reasonable interest M the steps tearryy to protect Lender's security Property, Including completion of the construction. 14. AigANMifBI1T OR LEASES AND REM. Morbaaor assigns, grant, bargains, =vey ndmortgages to Lender as addkiona iwwrky ail the right, title and rest In the no (Property). OV, Ae+N 6 Of fir e5djilf a SIK ON MMWS *MOW ba. a Cod. IM r w y0oVAI-?w '0M sl' EXHIBIT A PaW 6 of 16 RK 1 979S©5:57 uwjw ardMo "O'Oog:!??ndt loot tan+? orb as-C.. 'Yp at stw won In of e00010 t i? 6 d i0"d I two tM i°nw by is dO Ofw f y Wit • too occliot?.-- to iwt? "0tiii7mo. `wits dog to c °t , of Of sny ,'?rstwu ; A.?01M?y? sM nt1s 9?s? on dMt d+s., bf Moon ?a 6 OtQ tt?s? st° but ingrOSt• j'A *t ' oT oo" Mw 110 •1y11 n? gold in tto fees. As u"d MMOWO ntr?? °e._?.?,?y? tlrs 42 U S'C' *W Ex 00 vjs ?Itt ty pd ° Ow aost; of sum W MW u Vsnag a? i71 OVAL g;k .006 romw two 19. i!V?CtMlonpltli r? ow Of 6 b"s "a ,All OIW cow aw toodvs om' qty. OW aka Wb pdi p?? "Y oir or tud nio?? '""`t° no t ')do o Lo*- vow", env any ?• "ndsr ' w? std bpi, or ;ny ° ar?d n t? roD Y ? b$60- by Ot to idow" Lowof ti1? ` "-' With l'tor of a , ? B. `lot ? Pro ?? i ,? sbo'uR " e et ?a? not ii on un „u• i?'It..:?.. VMS i ?$??p! oOC??t? . p,?? page of 16 'r. consent. Lender does not assume or become liable for the Property's malntananca, depreciation, or other losses or damages when lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender's gross or hytendond torts. Otherwise, Mortgagor will r+? for all demege that Lender may kwur when Lender opts to exercise of its wwwwwwww? =W?W& W party obligated under the Lanse. any nY 16. LEA=lfiOLDS; CONDOt>MNIUM ; PIrA1 UNIT 0!VlLOPi1?ITa. Mortgagor agrees to compl with the provisions of any lease if this Security Instrument Is on a Nasehold. tf the Includes a unit Ina condominium ore p1mrs-d unit developie ntby?rtAortgagerM parfon ?a of a duties under the deveknprrns. regulations the or planned unit nt IS. DEFAULT. Mortgapor will be in default if any of the following occur. A. Any party obligated on the Secured Debt fads to make payment when due; B. A breach of any term or covenant in this Security instrument or any other document executed for the purpose of creating, seauring or guaren ng the Secured Debt; C. The making or fumWft of any verbal or written representation, statement or warranty to Lender is false or Incorrect in any material respect by Mortascor or any person or entity obligated on the Secured Debt; 0. The deith, dissolution, or insolvency of, app0intnnernt of a receiver for, or application of any debtor relief law to, Mortgagor or any other person or entity obligated on the Secured Debt; E. A good faith belief by Lender at any time that Lender is insecure with respect to any Pawn or entity proapsct of Wry payment Impaired or thee value Secured Debt or the the F. A material adverse change in Mortgagor's business in ownership, management, and flnernoial conditions, which Lender In its pq ion believes impairs the value of the rty or repayment of the secured Debt; or G. Any loan proceeds are used for a purpose that wM contribute to excessive erosion of highly erodible land or to the conversion of wedands to produce an agricultural Subpar G, Exhibit Mm, as further explained in 7 C.F.R. Part 1940, 17. DIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. SubJect to time limitations, if any, Lender may accelerate the Secured Debt and hroclose this Security Instrument in a manner provided by Mw If Mortgagor Is In default. At the option of Lender, aN or any part of the agreed fees and charges, accrued interest and principal shell become pnrrnediately due and payable, after giving notice if rewired by low, upon the occurrence Doff a default or anytime thereafter. In addon, Lender shaN be entitled to all the remedies provided by low, the m.?. ? or ?s? EdISWW 010K goo, ..*.. WWWW M.. M. OVA W fM AOWAWWA wlll? raw ns BK 197191%05-5-9 MaTIBIT A Page 8 of 16 • .J collateral of at least equal value to the rroq secured by this Security Instrument without prejudice to any of Undeer's rights under this Security Instrument. L. Notwithstanding any of the contained in this Security, Instrument to the con ry,t farms of?section shag axvi ? ve any f6reolosm or satisfaction of ecurk Lender or any dispordtion Lender of any or of the PWW WNW of We to iropwty Any cis! i and defenses to the contrary are hereby waived. 20. COI IATION. Nk wish Lenndar prompt notice of arty or threatened aatbn, bY F? or pu?NueC sndnent to dorpurchase rorur tol or aT! of the Mortga1w y wthnori:ea Lender InO vene in Morfpa?po('L+ender the any of the -bow actions or shirr--. arty award or claim for dam ages r 106W with a Do We mnstion or o taicif p of ail or any part of the Property. Such prooeeds shah be payments and will be as provided In this Security Instrument. This aaahgnment of proceeds is iS tv the terms of any prior mortgage, dead of trust, security agreement or Non document. 21. M RMAMCE. Mortgagor agrees to maintain insurance as folows: A. Mortgagor shall keep the Property insuured spsirat loos by fire, flood, theft and other hazards and risks apodahd with the Pr+o?party due to its type and location. This Insurance ha maintained in the amounts and for the periods that Lander requires. What Lender raq *" pursuant to the preceding two sentences cot change during the term of the Secured Debt. The Insurance carrier providing the Insurance shell be chosen by ?por subject to Lander's approval, whi do ahW not be Unrsasonsbh v?d?isld. hf Mortgagor faits to mnaingAt the coverage described above, Lender may, at Lender's option, obtain cover pt to protect Landers rights In the Property according to the tenne AN Insurance policies a d renswlwi?acceptable to Lender and shell Include a standard " chute" and, when snalaAis, "loss payee clause." Mortgagor ?tnnmedhteiy notify h ender of canoeNati or termination of the Insurance. Lender shall have the rbk to hold the policies and renewals. If Under requires, Mortgagor shal L"Ove to Lsnndw all receipts of paid pnrrniwre and renewal nobas. Ion, MOAgagOr -leis give (flMnedfat! native to the Insurance rider. Lender may male proof of loss if nut made knmsd M?a Unless otierwhs agreed in writing, all insurance gago. to restoration or ir of the Property or to the w?hedw or applied not then due, at Lendsra option. Any application of proceeds to prinoipal Owl not extend or postpone the due dab of scheduled payment nor sharps the amount of any payment. Any excess will be paid to the Mortgagor. if the Pmperty is acquired by Lender, Mortgagor's right to any Irmmme policies and j= resulting from damage to the Property before the acquisition i pass Immediately before the a quisition. to the -esters of the Secured Debt saw so of is • "ft 2M &MhM how% was.. 6• Cow, MIN Pa A K wvl? EXMIT A Page 9 of 16 m es or bra to migrate from nearby property; or (2) there is a VIWMU%rgg of any Envhomm?errtN Law concerning the Property. In such an event, MortimW will take all necessary remmsdiN action in accordance with EnviraNrentN w. D. Except as provkmaly disclosed and acknowledged in writing to Lender, Morgagor has no knawledoe of or reason to 69" then M any per ing or %548 t rod kmvesWglon, , or prooeadi g of any kind ns!ad to (1) any Hazardous Substanmce located on, under or about the , or (2) any violetion by or any tsnamt of any Law. Mortgagor will Lol reason to believe there MWINIMUMMMY Is notiry We. In writing as soon as any such p Wing threatened h.V.. %h c aiMnn, or proceeds g. M such an event, Lander has the night, but not the oblgatiom, to partio?ate M any such procesdkmg btduNng um right to receive dxpiss of any to relating to such proosedirW. E. Except a previously disclosed and adcnowlsdged In writing to Lender, «ortr and every tenant have bean, are and shall remain In full with any appYcabls Emviromxnantal Law. F. Exopt as previously disclosed and aclcrmovrlsdgsd In writing to Lerxer, there W no underground storags tanks, pn(vats dumps or open welt boated on or udder tits Property and no such tannic, dung or well will be added unties Lender first aoneents in writing. G. Mortgagor will roaularly . Property, the cProl", monitor the onfirm v activitles s or operetionms on the Pro and confkrnm that all required by any applicable Envkonmental Law am obtained and %i%Rrq*W with. H. Mortgagor will permit, or caws any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the eO.W%. s, location and nature of any Hszwdous Substance on, under or about the Property; (2) the existence, iodation, nature, and magnitude of any Hazardous Substance that has been released on, udder or about the Property; or (3) whether or not Mortgagor and any tenant are In compliance with applicable E?rvirormrmammtsl Law. 1. Upon Lenders request and at any time, M?nb? agrees, por at Mortgagor's expense, al audit of the aid to submit oronsor the of sproper* uch soak to Lender. The choke of the ynvi onmentsi engineer who will perform such audit Is subject to Lender's approval. I Lender has the rk t, but not the obligation, to perform any of Mortgagor's in a r title section at Mortgagors expense. llm K. oon ce of any breach of any repreeeMation, warranty or promise ssction1 (1) Moppor will Indemnify and hold Lender and Lender's successors or assigns - harm ises from and against all losses, claims. demands, labNhles. cleanup, response and remedkation costs, penalties and expenses, g without limitation all costs of ltlgation and attomeya' few, which Lender and Under's axwessom or n? M, a d (2) m Lender's discretion, Lender may release this Mortgagor will provide Lender with • 19, =18"M *"Us% IM86. st 0" M/ /Mw Ai0040I"M MJ w1 ' 'am 114 EXMIT A OK I 979PG05=6 i clef IN ; Page 10 of 16 permits the vsriadaa by written agreement. If any section of this section ec y Instrument cannot be erforced a to its terms, thor severed and will not affect the ord=hy of time remainder of this Security Instrument. Whenever used, the singular shsN Include the plural and the pl,riml the singular. The captions and Imaadlmgs of the sections of this Sectuhy instrument are for convenience only and are not to be used to Intarpnnt or define the tors of this Security Inat ument. Time Is of the assence In this Security Instrument. U. NOTICE. Unless otherwise by law, any notice shall be given by listed of finks Dats and par Wsby to the appropriate party's address of this Socurky lnsbunwit or to any other address designated In writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 27. WAIVES. Except to the extent pro A*W by law, Mortgagor wolves any right to appraisement relating to the Property. 28. WAWM OF .AlfRY TNAL. To the extent not polmilMd law, Msrlgsgsr and Launder laowtrmgly and Intsndorna?I waive time wlrloh early low. to a acid b1i jm+ry wph respect to anw NII?aYsn tine Sewwi ar army odor ageenent summed In oamWmut+elNrm nwrMr time Rditmoe of Deirt awd i6 okhor MWV,ML attewdorm of each ? vo*M to "Odw mn" or roar mall party v/porlunlty do no. 28. U.C.C. PINAW IONS. If checked, the following are applicable to, but do not inn, this Security Instrument: O Conalmotion Loan. This Security Instrument secure* an obligation Incurred for the construction of an Improvement on the Property. O Fbdm Filing. Mortgagor grants to Lender a security Interest In all goods that owns now or in the future and that are or will become fixtures es?to the Property. O Crops; Ti nber; Mnarals; limbs, issue and Prrotlla. Mortgagor grants to L.udsr a *swift Interest in all crops, timber and rnkmerals bcaad on the Property as wellas all rants, Issues and profits of them kncl ti ft, but not limited to, all Conservation Reserve I'rrcow. (CM and Pawns In Kind (PIK) payments and similar gotiannrrmenmtal prograrns (all of hi shall also be kx*xW In the tern "Property"). Cl POISOW P'glWty.Oud grants to Lender a security interest in all personal property on or connected with the Property, kolu ding all form products. Inventoryry?nt, accounts, documents, instruments, chattel pater, general i , and all other kems of pa coral Mortgagor owns now or in the future and that are d or usefi?l i construction, ownership, operation, management, or maintenance of the Property (all of which stall also be kolded in the term "Property"). The term "personal Property" specifically excludes that property dsscrbsd as law. 12 of to O 1»s sow sm "s ? rms. SL CW& W ftM Aooo#ww M" POW 414 EXHIBIT A Page 11 of 16 B. Mortgagor sprees to maintain comprehensive general liability Insurance nerning Lander as an additional Mhsured in an amount acceptable to Lender, kinrinp against claims orbhV from any accident or occurrence In or on the operty. C. Mortgagor to maintain rental loss or business Mtenuption insurance, as raquirsd LerMsr, in an amount equal to at Nast ooVerapa of one year's debt service, and required sec ow account deposits (if agreed to sepsrstely in writingl, under a form of poky acceptable to Lender. 22.11111COM FOR TAXIM AND MIhitJ11A1 M Unless othherwise provided In a separate agreement, Mortgagor will not be rsqulrad to pay to Lerrdw funds for taxes and Insurance In escrow. 28. FWANCIAL REPORTS AND ADDITIONAL DOCUMBITS. will provide to Lander upon raqusaL any fimi;ial stome nrerht or infonratbnlir may deem reaMUMM ? roaces . IUormgapor apses to sign. deliver, and flee any additional docurnents or ce that tender may consider necessary to perfect, continue, and preserve e s obligations under this Security Instrument and Lender's Ilan status on this m"rty. 24. JOINT AND`IIi MDUAL LU M M,P Ctl4IANBt ; 8000EIINORi AND AfS M SOt=. All duties under this Sec Wty kstrumsnt am joint and individual. If Mortppor signs this Ssexrity b»trurnsnt but does not sips an evidence of debt, Mortgagor does so only to mortgage Mort a Interest in the Property to secures payment of the Seared Debt and doss not spree to be personally liable on the Secured Debt. If this Security Instrument secures a guaranty between Lender and acts for or ?sp?airm mwww or that may prevent Lander from arry any party indebted under the obligation. Thsss rigs msy Include, but am not limited to, any anti-def hmy or one-action laws. mwgpp:=or that Lender and any party to this Security Inetr rnent may extend, make any change In the terms of this Security khstnrnent or any evidence of debt without s consent. Such a change will not release from the terms of Security Imo. The "in and bemMo of thls?scurity Insounrsnt shat bind and benefit the successor* and assigns of Mortgagor and Lender. 26. APPLWAN.E LAW: SEYIIMUNMY: 1NT- - - TATIOM. This Security Instrument Is governed by the laws of the jurisdiction In which Lender Is located, except to the extent otherwise required by the laws of the Jurisdiction where the Property is located. Any provision that appoirnta Lender as an spent is not sublect to the psi of 20 Pa.C.S.A. Section SQ01 at seq. ( Chapter his: Decedents, Estates and iiduciaries Cods). Lender, by exercbinp any of its right@ under this Security Instrument, does so for berhefk of lender. This Security instrument is modified by oral meted. This Sec:csect utrurrferht may root be arneroded or ettaahments, or an rut. Any section in this Security Instrument, conflicts with appNcsble caw will no?tffe related t tM Secured Debt the expressly or implisdly ?.o. I f a 14? F II 19K =I IMMM f,.r.^ ua,. R Cdr, MI Fier AOCO400 A PC= al. E'Xjj IT A Paige 12 of 16 K1'9-79P6©563 "household terra nnnda" M ble connecdon with a "conami\r• lose as tlwes secured we applic Wei I regulations governing unfair and deceptive credit pectices. ? Flrlrp As Finerrolp Stno Mrs. Mortgagor pees and adcnowNdges that this Security bwtniment also suffices a a financing any on or other reproductlori me be filed of y record for purposes of ArWe 9 of the uniform CommwcW Code. 30. OTHER TEIMA6. If checked, the following are applicable to this security Instrument: ? Line of Croft. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. 13 vapor covenants and warrants that the Property weused prMdpaW for agricultural or fanning and that gsgor is an individual or entity slowed to own purposes land as sppee fisd by low. R Purchase Money. This Security instrument secures advances Lander used in whole or In part to acquire the Property Accordingly, "'Security Instrument, and the Nan hereunder, ereundIs and shall be construed s s purchase money the ews l mortgage with all of the rights, priorities vW bew? f under of the Commonwealth of Pennsykwft. d 8001s10 Assignment. The Mortgagor has executed or will execute a "Wn to asslpnment of lasses and erne. N the separate sesignnant of losses and rents is properly executed and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of Loom and Rents" section. ? AddNknai Terms. &NW ISO IN e,w. no, 0-- &A-*. -" st a ftA. M, ?«. mmawffilmm--1190? maw Sid MIBIT Page 13 of 16 19 "VGO-564 ORMTUM: By sionkV below, Mortgagor, U?bndinp to be legally bound hereby, agrees to the "mm _and covenants contained In this Security kwu ment and in any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on the data stated on page 1. Entity Name- Entity Name: ZM?1403/2007 [SVn&t#6j =Mk N (Date) (Sipnaturs) ( nature) (Date) (84naturs) (Date) (Witness) (Wkrwn) ACKNOWLEDGKIM: COMMONWEALTH RF QnYV day% (Individual) On We, the r ?A?l J A r`,n k%,w,4 v, , the S, COUNTY OF L ' } ss. VNAkv-j , before me rraiprled oftkW, perw- appeared known to me (or sstlsfsctorily proven) to be the persoMs) w is subscribed to the within Instrument, and acknowlsdgm executed the same for the purposes therein oontakod. In witness whereof, I hereunto set my hand and official seal. My commission expires: OOMMONWMTH OF V NoMhl9Ni O rrAm ftNrw, Nary N* MY Of HWWX ro. Dap* Cmej br??GbindlW" EOWApr. 7. =O M*r, PMrW0vft* Mwd&*m Of NoWrW use name(s) that he/she (WOUnt) Tide of Fj®W 019K =I ft*Ws Ors Ms.. sr. car. ter, w. AOC04MWA $W=* OW 14 of to 614 EXHIBIT A Page 14 of 16 COMMONWEALTH OF , COUNTY OF -1 as. tines On this, the day of , before me . the undersigned officer, psraonwMy appeared A?ckno w edgmem) who acknowledged himself/herself to be the of and that he/she ae such being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the by as In witness whereof, I hereunto set my hand and official seal. My commission expires: Title of Officer it is hereby certified that the address of the Lender within named is: PO D= 3129, fRT1 =020, PA 17325 d10 C" e "K 3M wr.. f,wrft M., R CWA M1 !«w A00 MM wwoa' _ ow Is of 1w 1CR11 71? f 9 ® EXlnrr A Page 15 of 16 ALL THAT CERTAIN lot or parcel of land situate In the Borough of Lemoyne, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a point, the southwest comer of Bosun Avenue and Fifth Streets, Unrrrot Ina southerly di ecibn Wong the western sift of Fifth Street one hundred tlfty (150) feet io a point on the ralmly line of Apple Allay; thence In a wastery direction along the northerly lint of Apple Allay atvenly Ilve (75) feet to a pok* tln , ce In a northerly direction along a line parellet with Fft Street one hundred tlRy (150) fast los point on the southerly line of Boller Avenue; thence Inan sesterly direction along the southerly line of Roder Ave" stvenly-Nve (75) feet to a point, the place of BEGINNING. BEING Lots Nos. 109 and 110, Block O, Plan No. 1 of Riverton, said flan being recorded In the Office of the Recorder of Deeds of Cumberland County, In Dead Book J, Volume 4, Page 40. LESS, HOWEVER, a piece of ground flve (5) feet by seventy (70) feet, a portion of Lot No. 109, previously conveyed to Philip H. Frank, at urc, on April 15,190, as is more particularly shown at large In the Recorder of Deeds Office in and for Cumberland County, Penns*wla, In Dead Book F, Volume 13, Pape 242. HAVWG THEREON ERECTED a building known as 119 South 5th Street, Lemoyne, Cumberland County, Pennsylvania. EXHIBIT *W--LEGAL DESCRIPTION 1 ?fY ft W be Morel d CumbaiNd CMWY PA Recorder ofDee& (Cr soos.oas.Facr 2006 aM) U197MO'S167 EXHIBIT A Page 16 of 16 EUGENE M HAYS 861 LEXINGTON PLACE EEWISBERRY PA 17339 ADAMS COUNTY NATIONAL BANK Loan Number Date JANUARY 3 2007 Maturity Date JAN. 3 , 2027 Loan Amount $ 466. 000.00 PO BOX 3129 GETTYSBURG PA 17325 BORROWER'S NAME AND ADDRESS 'I' Includes each borrower above, jointly and se Renewal Of LENDER'S NAME AND ADDRESS 'You' means the lender Its successors and assigns. For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum. of FOUR HUNDRHa SIXTr-ern THOUSAND AND 00/100 Dollars 4 466. 000.00 Ei Single Advance: I will receive all of this principal sum on 01/03/2007 No additional advances are contemplated under this note. ? Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On N/A 1 will receive the amount of 8 N/A and future principal advances are contemplated. Conditions: The conditions for future advances are ? Open End Crack: You and I agree that I may borrow up to the maximum amount of principal more than one time. This feature is subject to all other conditions and expires on N/A ? Closed End Crack: You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions). INTEREST: I agree to pay Interest on the outstanding principal balance from 01/03/2007 at the rate of 7.000 % per year until NEXT RATS CHANGE DATE Variable Rate: This rate may then change as stated below. HIGHEST BASE RATE ON CORPORATE LOANS AT Index Rate: The future rate will be 1.000 % ABOVE the following index rate: LARGE U.S. MONEr CENTER C("WRCIAL BANES THAT THE RAU STRBET JOURNAL PUBLISHES AS THB P IsrR RATE. U No Index: The future rate will not be subject to any Internal or external Index. It will be entirely in your control. Frequency and Timing: The rate on this note may change as often as - DAILY A change in the Interest rate will take effect ON THE SAME DAY ? Limitations: During the term of this loan, the applicable annual interest rate will not be more than N/A % or less than N/A %. The rate may not change more than % each Effect of Variable Rate. A change in the Interest rate will have the following effect on the payments: EiThe amount of each scheduled payment will change. ? The amount of the final payment will change. ACCRUAL METHOD: Interest will be calculated on a 365/360 basis. POST MATURITY RATE: 1 agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below: ? on the same fixed or variable rate basis in effect before maturity (as Indicated above). ®: at a rate equal to _ 3 , 000 1; above the highest Prime rate published in the Wall Street Journal's listing of mono rates LATE CHARGE: If a payment is made more than 015 days after it is due, I agree to pays late charge of 3,000 W OF THE PAYMENT AMOUNT OR S 20.00 WHICHEVER IS GREATER ®C RETURNED CHECK CHARGE: I agree to pay a fee of $ 35.00 for each check, negotiable order of withdrawal or draft I Issue in connection with this loan that Is returned because it has been dishonored. ? ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which D are Dare not included in the principal amount above: PAYMENTS: I agree to pay this note as follows: ? Interest: I agree to pay accrued interest ? Principal: I agree to pay the principal Ekinstallments: I agree to pay this note in 240 payments. The first payment will be in the amount of $ 3,642.22 and will be due FEBRUARY 3 . 2007 A payment of $ 3,642.22 will be due MONTHLY thereafter. The final payment of the entire unpaid balance of principal and interest will be due JANUARY 3 , 2027 RANT OF AUTHORITY TO CONFESS JUDGMENT. Upon default, in addition to all other remedies and rights available to you, by signing rrower irrevocably authorizes the prothonotary, clerk, or any attorney to appear in any court of record having jurisdiction over this matter nfess judgment against me at any time without stay of execution. I waive notice service of process and process. I agree and understand rent may be confessed against me for any unpaid principal, accrued Interest and accrued charges due on this note, plus collection costs mable attorneys' fees up to 15 percent of the judgment. The exercise of the power to confess judgment will not exhaust this warrant of to confess judImerit and mg be done as often as you elect. 1 further understand that my property may be seized without prior notice to e debt owed. wingly irrtentionally and voluntarily waive any and all constitutional rights I have to pre -deprivation notice and hearing ergl and awe Igvy an fully understand the consequences of this waiver. AL TFRMS- r ne titter mterest rate win he nxea tot me nrst nve t3) years attar watch it WW become a variable rate. 1: he next rate change date will be January 3, 2012. By this reference, herein incorporated are additional loan terms, provisions, covenants and conditions that are contained in a related commitment letter dated October 13, 2006 and extended December 12, 2006. PURPOSE: The purpose of this loan is - PURCHASE RENTAL PROPERTY LOCATED AT SIGNATURES: 1 AGREE TO THE TERMS OF THIS NOTE (INCLUDING )® SECURITY: This note is separately secured by (describe separate THOSE ON PAGE 2). 1 have received a copy on today's date. document by type and date): MORTGAGE DATED JANUARY 3, 2007 I(?/?of/?' n'hW sodon Is for your knamsl use. Fdkxa to net a separate searlty doormen dos not moan the EIIGERE `7 HAYS Y agreement wa rat ssouro tKa nou.l F.R7GENS Signature for Lander FORM 4 UNIVERSAL NOTE '--?h? 0 1984, 1991 Bankas Sysums, 1M., St. Cloud, MN Form UN-0A 317/2002 EXHIBIT (pope r of 2) DEFINITIONS: As used on page 1, "®' means' " e terms that apply to " " " " " " If my right to receive tey from you is also owned by someone who this loan. i, me or my means each Borro who signs this note has not agreed to pay I note, your right of set-off will apply to my and each other person or legal entity (including-guarantors, endorsers, and sureties) who agrees to pay this note (to ether referred to " ") interest In the obligation a;*d to any other amounts I could withdraw on l g as us . "You' or "your" means the Lander and its successors and assigns. my so e request or endorsement. Your right of setoff does not apply to an account or other obligation where my rights ere only as a. APPLICABLE LAW: The law of the state of Pennsylvania will govern this representative. It also does not apply to any Individual Retirement note. Any term of this note which Is contrary to applicable law will not be Account or other tax-deferred retirement account. effective, unless the law permits you and me to agree to such a variation. You will not be liable for the dishonor of any check when the dishonor If any provision of this agreement cannot be enforced according to its terms this fact will not aff t th f bili f h occurs because you set off this debt against any of my accounts. I agree h l , ec orcea e en ty o t e remainder of this to o d you harmless from any such claims arising as a result of your agreement. No modification of this agreement may be made without-your exercise of your right of setoff. express written consent. Time is of the essence in this agreement. Any -REAL.ESTATE OR RESIDENCE SECURITY: If this note is secured by real provision that appoints you as an agent is not subject to the provisions of estate of a residence that is personal property, the existence of a default 20 Pa.C.S.A. Section 5601 at seq. (Chapter 56; Decedents, Estates and and your remedies for such a default will be determined by applicable Fiduciaries Code). By exercising any of your rights under this note, you do law, by the terms of any separate instrument creating the security so for your sole benefit. COMMISSIONS OR OTHER REMUNERATION interest and, to the extent not prohibited by low and not contrary to the r t f h i ' " : I understand and agree that ms o e t e separate secur ty Instrument, by the Default and " any insurance premiums paid to insurance companies as part of this note will involve mone r in t d b id b k i i Remedies" paragraphs herein. DEFAULT: I will in default if an n f th f ll i y e a e y you or pa ac to you as comm ss ons or other remuneration. y o e or more o e o ow ng occur: (1) 1 fail to make a payment on time or in the amount due; (2) I fail to In addition, I understand and agree that some other payments to third keep the property insured, if required; 131 1 fail to pay, or keep any parties as part of this note may also Involve money retained by you or promise, on any debt or agreement I have with you; (4) any other creditor paid back to you as commissions or other remuneration. of mine attempts to collect any debt I owe him through court pro- PAYMENTS: Each payment I make on this note will first reduce the ceedings; (5) 1 die, am declared incompetent, make an assignment for the amount I owe you for charges which are neither Interest nor principal. benefit of creditors, or become insolvent (either because my liabilities ex- The remainder of each payment will then reduce accrued unpaid Interest, ceed my assets or I am unable to pay my debts as they become due); (6) and then unpaid principal. If you and I agree to a different application of I make any written statement or provide any financial information that is payments, we will describe our agreement on this note. I may prepay a untrue or inaccurate at the time It was provided; (7) 1 do or fail to do part of, or the.entire balance of this loan without penalty, unless we something which causes you to believe that you will have difficulty specify to the contrary on this note. Any partial prepayment will not collecting the amount I owe you; 18) any collateral securing this note is excuse or reduce any later scheduled payment until this note is paid in full used in a manner or for a purpose which threatens confiscation by a legal luneess, when I make the prepayment, you and I agree in writing to the authority; (9) 1 change my name or assume an additional name without first notifying you before making such a change; (10) 1 fail to lant culti- contrary). INTEREST: Interest accrues on the principal remaining unpaid from time p , vate and harvest crops in due season; (11) any loan proceeds are used to time, until paid in full. If I receive the principal in more than one for a purpose that will contribute to excessive erosion of highly erodible advance, each advance will start to earn interest only when I receive the land or to the conversion of wetlands to produce an agricultural commod- advance. The Interest rate In effect on this note at any given time will lty, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. apply to the entire principal advanced at that time. Notwithstanding REMEDIES: If I am in default on this note you have, but are not limited to, anything to the contrary, I do not agree to pay and you do not intend to charge any rate of Interest that is higher than the maximum rate of the following remedies: (1) You may demand Immediate payment of all I owe you under this interest you could charge under applicable law for the extension of credit that is agreed to here (either before or after maturity). If any notice of note (principal, accrued unpaid interest and other accrued charges). 12) You may set off this debt against any right I have to the payment interest accrual is sent and is in error, we mutually agree to correct it, of money from you, subject to the terms of the 'Set-Off' and if you actually collect more interest than allowed by law and this agreement, you agree to refund it to me. paragraph herein. (3) You may demand security, additional security, or additional parties INDEX RATE: The index will serve only as a device for setting the rate on to be obligated to pay this note as a condition for not using any other remedy this note. You do not guarantee by selecting this Index, or the margin, that the rate on this note will be the same rate you charge on any other (4) You may refuse to make advances to me or allow purchases on loans or class of bans to me or other borrowers. ACCRUAL METHOD: The amount of interest that I will pay on this loan credit by me. (5) You may use any remedy you have under state or federal law. will be calculated using the Interest rate and accrual method stated on By selecting any one or more of these remedies you do not give up your right to later use any other remedy. By waiving your right to declare page 1 of this note. For the purpose of Interest calculation, the accrual method will determine the number of days in a "year." If no accrual an event to be a default, you do not waive your right to later consider the method Is stated, then you may use any reasonable accrual method for evert as a default it continues happens ag ain. COLLECTION COSTS AND ATTORNEY'S FEES: 1 agree to pay all costs of calculating Interest. POST MATURITY RATE: For purposes of deciding when the "Poet ' " ' " collection, replevin or any other or similar type of cost if I am in default. In addition, if you hire an attorney to collect this note, I also agree to pay (shown on page 11 applies, the tern maturity means the Maturity earliest of Rate following: any fee you incur with such attorney plus court costs lexcept where (a) the date of the last scheduled payment indicated on page 1 of this prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to pay the reasonable attorney's fees and note; (b) the date you accelerate payment on the note; or costs you incur to collect this debt as awarded by any court exercising iurisdiction under the Bankruptcy Code. (c) after the entry of judgment on this note by confession or otherwise WAIVER: I give up my rights (to the extent permitted by law) to require and applies to amounts owed under this note on any such you to do certain things. I will not require you to: judgment until paid in full. SINGLE ADVANCE LOANS: If this is a single advance loan, you and 1 (1) demand payment of amounts due (presentment); (2) obtain official certification of nonpayment (protest); or expect that you will make only one advance of principal. However, you (3) give notice that amounts due have not been paid (notice of may add other amounts to the principal if you make any payments dishonor). described in the "PAYMENTS BY LENDER" paragraph below. I waive any defenses I have based on suretyship or impairment of MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I collateral. expect that you will make more than one advance of principal. If this is OBLIGATIONS INDEPENDENT: I understand that I must pay this note closed end credit, repaying a part of the principal will not entitle me to even if someone else has also agreed to pay it (by, for example, signing additional credit. this form or a separate guarantee or endorsement). You may sue me ADVANCE PROCEDURE AND MEANS: You will advance the loan alone, or anyone else who is obligated on this note, or any number of us proceeds by way of check, cash, wire transfer, credit to an account or together, to collect this note. You may do so without any notice that It any combination as You and I agree. The advance(s) will occur upon has not been paid (notice of dishonor). You may without notice release consummation of the loan and as You and I agree, except that no any party to this agreement without releasing any other party. If you give advance(s) will occur until after three business days from the date of up any of your rights, with or without notice, it will not affect my duty to consummation if the loan is rescindable pursuant to Regulation Z (12 pay this note. Any extension of new credit to any of us, or renewal of C.F.R. 11 226). this note by all or less than all of us will not release me from my duty to PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, pay It. (Of course, you are entitled to only one payment in full.) i agree charges I am obligated to pay Isuch as property insurance premiums), that you may at your option extend this note or the debt represented by then you may treat those payments made by you as advances and add this note, or any portion of the rate or debt, from time to time without them to the unpaid principal under this note, or you may demand limit or notice and for any tern without affecting my liability for payment immediate payment of the charges. of the note. I will not assign my obligation under this agreement without SET-OFF: 1 agree that you may set off any amount due and payable under your prior written approval, this note against any right I have to receive money from you. FINANCIAL INFORMATION: I agree to provide you, upon request, any "Right to receive money from you" means: financial statement or information you may deem necessary. I warrant (1) any deposit account balance I have with you; that the financial statements and information I provide to you are or will (2) any money owed to me on an item presented to you or in your be accurate, correct and complete. possession for collection or exchange; and NOTICE: Unless otherwise required by law, any notice to me shall be (3) any repurchase agreement or other nondeposit obligation. given by delivering it or by mailing it by first class mail addressed to me Any amount due and payable under this note' means the total at my last known address. My current address is on page 1. 1 agree to amount of which you are entitled to demand payment under the terms of inform you in writing of any change in my address. 1 will give any notice this note at the time you set off. This total includes any balance the due to you by mailing it first class to your address stated on page 1 of this date for which you property accelerate under this note. agreement, or to any other address that you have designated. DATE OF TRANSACTION PRINCIPAL ADVANCE BORROWER'S INITIALS (not rso lred) PRINCIPAL PAYMENTS PRINCIPAL BALANCE -INTEREST RATE INTEREST PAYMENTS INTEREST PAID THROUGH: $ $ $ % $ $ S S % 8 8 S $ % 9 g 8 8 % 9 $ g $ % B 8 S $ % $ s 8 8 % 8 $ S S % 9 $ g $ % 8 S $ $ s s $ % s EXHIBIT ]a _ IPa9e 2 of 2) W 0 1984, 1991 Bsnksrs Systems, Ire., St. Clod, MN Fare UN-PA 3!712002 0 OF 4 T2 DEC -7 PH 12; 46 CLIME RLMD COLWTY PWSA AW *78.5 o P Q WaY co 4D4ICl 33 P" - 34690