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HomeMy WebLinkAbout10-0700 PLED-C"' ?iLL 12, ?OTAIRY 2010 JAN 26 F11 1.4 "; C IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BAYVIEW LOAN SERVICING, LLC, a Delaware Limited Liability Company, CIVIL DIVISION NO.: 10 - 700 aivi ? lerr Plaintiff, VS. CHRISTINE B. BUBB, Defendant. I hereby certify that the address of the Plaintiff is: 4425 Ponce De Leon Boulevard 5th Floor Coral Gables, FL 33146 the last known address of all Defendant is: 3299 Ritner Highway Newville, PA 17241 TYPE OF PLEADING: CIVIL ACTION - COMPLAINT IN MORTGAGE FORECLOSURE FILED ON BEHALF OF: BAYVIEW LOAN SERVICING, LLC, Plaintiff and the location of the property is: 3299 Ritner Highway Newville, PA 17241 ?1VGrah Law Group, P.C. Attorneys for Plaintiff COUNSEL OF RECORD FOR THIS PARTY: /Nicholas A. Didomenico, Esquire PA I.D. No. 93353 McGRATH LAW GROUP, P.C. Three Gateway Center 401 Liberty Avenue, 13`h Floor Pittsburgh, Pennsylvania 15222 TELEPHONE: (412) 281-4333 FACSIMILE: (412) 281-2141 $9a . oo P Amy oe a?131 e-r* a a(oq ao NOTICE PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 ET SEQ., YOU MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF YOU DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE YOU WITH WRITTEN VERIFICATION OF THE DEBT, AS WELL AS THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CURRENT CREDITOR. OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. IF YOU DO NOT DISPUTE THE DEBT, IT IS NOT AN ADMISSION OF LIABILITY BY YOU. IF YOU NOTIFY US IN WRITING WITHIN THE THIRTY (30) DAY PERIOD, WE WILL CEASE COLLECTION OF THIS DEBT, OR ANY DISPUTED PORTION OF IT, UNTIL WE HAVE OBTAINED THE REQUIRED INFORMATION AND MAILED IT TO YOU. ONCE WE HAVE MAILED YOU THE REQUIRED INFORMATION, WE WILL CONTINUE THE COLLECTION OF THIS DEBT. THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR. THIS ACTION IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL-BE USED, FOR THAT PURPOSE. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BAYVIEW LOAN SERVICING, LLC, a CIVIL DIVISION Delaware Limited Liability Company, CASE NO.: Plaintiff, VS. CHRISTINE B. BUBB, Defendant. NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth in the following ;--.pages, yod must takeac ion vifiiiii.tw [t (2CT)d _ fterthis coingl tint and notice are se ±eci; by eh eriri a written appearance personally bt j by attorney -and filing in writing with the court your defenses ?v obj ections 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, TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. IF YOU CANNOT AFFORD TO HIRE A LAWYER THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ON AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COURT ADMINISTRATOR 4`h Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240-6200 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BAYVIEW LOAN SERVICING, LLC, a CIVIL DIVISION Delaware Limited Liability Company, NO.. Plaintiff, VS. CHRISTINE B. BUBB, Defendant. CIVIL ACTION - COMPLAINT IN MORTGAGE FORECLOSURE NOW COMES, Bayview Loan Servicing, LLC, a Delaware Limited Liaibility Company, by and through its attorneys, McGrath Law Group, P.C., and files this Complaint in Mortgage Foreclosure as follows: 1: Bayview Loan Servicing, LLC, a Delaware:LimitedLiablityCompany, is a financial institution with a branch office located at 4425 Ponce De Leon Boulevard, 5t' Floor, Coral Gables, FL 33146 (hereinafter referred to as "Plaintiff'). 2. Christine B. Bubb is an individual with a last known address of 3299 Ritner Highway, Newville, PA 17241 (hereinafter referred to as "Defendant"). 3. John R. Bubb is a deceased individual with a last known address of 3299 Ritner Highway, Newville, PA 17241. 4. On or about November 7, 2006, John R. Bubb obtained a loan from InterBay Funding, LLC in the amount of $292,000.00. The loan is evidenced by a certain Note dated November 7, 2006, executed by Defendant, John R. Bubb. A true and correct copy of said Note is marked Exhibit "A" and attached hereto and made a part hereof. 5. On or about November 7, 2006, as security for repayment of the debt evidenced by the Note, John R. Bubb and Defendant made, executed and delivered to InterBay Funding, LLC, a Mortgage ("Mortgage") in the original principal amount of $292,000.00 on the premises known as 3299 Ritner Highway, Newville, PA 17241 ("Mortgaged Premises"), said Mortgage being recorded in the Office of the Recorder of Deeds of Cumberland County at Mortgage Book Volume 1973, Page 2577. A true and correct copy of said Mortgage containing a description of the premises subject to said Mortgage is marked Exhibit "B", attached hereto and made a part hereof. 6. Title to the Mortgaged Premises is vested in John R. Bubb and Defendant as husband and wife. 7. Upon information and belief, John R. Bubb and Defendant held the Mortgaged Premises as tenants by the entireties. 8. Upon information and belief, upon the death of John R. Bubb, title to the Mortgaged Premises vested solely in -Defendant by operation of law. 9. Upon information and belief, Defendant is the real and record owner "of the Mortgaged Premises. 10. The Note and Mortgage were assigned by InterBay Funding, LLC to Plaintiff by way of an Assignment of Mortgage (the "Assignment"). The Assignment of Mortgage was recorded in the Office of the Recorder of Deeds of Cumberland County at Deed Book Volume 0734, Page 3903. A true and correct copy of the Assignment is marked Exhibit "C", attached hereto and made a part hereof. 11. Defendant is in default under the terms of the Mortgage for, inter alia, failure to pay Plaintiff the monthly installments of principal and interest when due under the Note. 12. Demand for payment has been made upon Defendant, by Plaintiff; however, said Defendant has failed or refused to pay. 13. On or about October 12, 2009, Defendant was mailed a Notice of Homeowners' Emergency Mortgage Assistance Act of 1983 in compliance with the Homeowners' Emergency Mortgage Assistance Act (Act 91 of 1983) and Act 6 of 1974,41 P.S. §101, et seq. True and correct copies of said Notice are marked Exhibit "D", attached hereto and made a part hereof. 14. As of October 9, 2009, the amount due and owing to Plaintiff, under the Note and Mortgage is as follows: Principal $ 271,576.47 Interest to 10/9/09 $ 13,677.77 Late fees to 10/9/09 $ 794.85 Escrow Balance to 10/9/09 $ 1,496.99 TOTAL $ 287,546.08 plus interest from October 9, 2009, at the contractual rate, additional late charges, any escrow deficiency or other amounts due, including attorneys' fees and costs of collection as authorized by the Note-and Mortgage. WHEREFORE, Plaintiff demands judgment'inrnortgage foreclosure for the amounf-duim6f: $287,546.08, plus interest from October 9, 2009, at the contractual rate, additional late charges, any escrow deficiency or other amounts due, including attorneys' fees and costs of collection as authorized by the Note and Mortgage and for foreclosure and sale of the Mortgaged Premises. McGRATH LAW GROUP, P.C. By: Nicholas A. Di omenico, Esquire PA I.D. No. 93353 Attorneys for Plaintiff Three Gateway Center 401 Liberty Avenue, 13'h Floor Pittsburgh, Pennsylvania 15222 Telephone: 412-281-4333 Facsimile: 412-281-2141 VERIFICATION Karen Griffith, a duly authorized representative of Bayview Loan Servicing, LLC, deposes and says subject to the, penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities that the facts set forth in the foregoing Complaint are true and correct to the best of her knowledge, information and belief. BAYVIEW LOAN SERVICING, LLC C?a X;xc?k? Karen Gri th 77L) KAREN GRIFF17 Assistant Vice P! a, • i ADJUSTABLE RATE PROMISSORY NOTE (PENNSYLVANIA) $292,000.00 DATE: November 7, 2006 MATURES: December 1, 2021 FOR VALUE RECEIVED, John R. Bubb, as maker, whose address is 3299 Ritner Hwy, Newville, PA 17241 (the "Borrower"), hereby unconditionally, jointly and severally (if more than one), promises to pay to the order of InterBay Funding, LLC, a Delaware Limited Liability Company as payee, having an address at 1301 Virginia Drive, Ste #403, Fort Washington, PA 19034 (the "Lender"), or at such other place as the holder hereof may from time to time designate in writing, the principal sum of Two Hundred Ninety-Two Thousand and No/100 Dollars ($292,000.00), in lawful money of the United States of America with interest thereon to be computed from the date of this Promissory Note ("Note") at the Applicable Interest Rate (defined below) in accordance with the terms of this Note. 1. ADJUSTABLE INTEREST. Interest on the unpaid principal balance due hereunder shall accrue at an initial interest rate equal to Nine And Ninety-Nine One-Hundredths Of One Percent (9.99%) per annum (the "Applicable Interest Rate"). Thereafter the Applicable Interest Rate will be adjusted as follows: on a date which is twelve (12) months from the first day of the first calendar month preceding the initial Payment Date (defined below), and thereafter on a date twelve (12) months from the previous change date (each, a "Change Date"), the Applicable Interest Rate will adjust to reflect the then current "Prime Rate" plus Four And Seventy-Four One-Hundredths Of One Percent (4.74%). The Applicable Interest Rate will not be increased or decreased on any single Change Date by more than two percent (2%). During the term of this Note, the Applicable Interest Rate shall not be lower than the Applicable Interest Rate on the date hereof and. shall, provided no Event of Default (defined below) has occurred (in such an event the "Default Rate", as hereinafter defined, will apply), not exceed the Applicable Interest Rate on the date hereof plus six percent (6%). For purposes hereof, the "Prime Rate" shall mean, at any time, the rate of interest quoted in the Wall Street Journal, Money Rates Section as the "Prime Rate" (currently defined as the base rate on corporate loans posted by at least 75% of the nation's thirty largest banks). In the event that the Wall Street Journal quotes more than one rate, or a range of rates as the Prime Rate, then the Prime Rate shall mean the average of the quoted rates. In the event that the Wall Street Journal ceases to publish the Prime Rate, then the Prime Rate shall be the average Prime Rate of the three largest U.S. money center commercial banks, as determined by Lender. Interest shall be computed on the actual number of days elapsed and an assumed year of 360 days. 2. PAYMENT TERMS. Borrower agrees to pay sums due under this Note in payments of principal and interest. The initial monthly payment shall be in the amount of Three Thousand One Hundred Sixty-Two and 11/100 Dollars ($3,162.11). However, monthly payment amounts may change if there is a change in the Applicable Interest Rate. At the time of a change of the Applicable Interest Rate the new monthly payment shall be calculated based upon the principal balance of this Note on the applicable Change Date through the remaining term of the original fifteen (15) year amortization schedule, and the Applicable Interest Rate then in effect. The first installment of principal and interest shall be due on January 1, 2007, and additional payments shall be due on the 1st day of each calendar month thereafter (each, a "Payment Date"). The entire principal • balance and all accrued and unpaid interest thereon shall be due and payable on December 1, 2021 (the "Maturity Date"). Each installment payment shall be applied as follows: (i) first, to the payment of late charges and interest computed at the Default Rate (defined below), if applicable; (ii) second, to the payment of interest at the Applicable Interest Rate; and (iii) third, the balance toward the reduction of the principal balance. 3. SECURITY. This Note is secured by that certain Mortgage and Security Agreement, Deed of Trust and Security Agreement, or Deed to Secure Debt and Security Agreement, Assignment of Leases and Rents, and Security Agreement and Fixture Filing (the "Security Instrument") of even date herewith given by Borrower to Lender encumbering certain premises located in Cumberland County, Parish or Judicial District of the Commonwealth or State of PENNSYLVANIA, (the "Real Property") and the Other Security Documents (as defined in the Security Instrument) encumbering other property ("Other Property"), as more particularly described therein (the Real Property and the Other Property are hereinafter collectively referred to as the "Property"). 4. DEFAULT AND ACCELERATION. If any payment required in this Note is not paid (a) prior to the fifth (5t') day after a Payment Date, (b) on the Maturity Date or (c) on the happening of any other default, after the expiration of any applicable notice and grace periods, herein or under the terms of the Security Instrument or any of the Other Security Documents (collectively, an "Event of Default"), and Lender declares an Event of Default, then, at the option of Lender (i) the whole of the principal sum of this Note; (ii) interest, default interest, late charges and other sums, as provided in this Note, the Security Instrument or the Other Security Documents; (iii) all other monies agreed or provided to be paid by Borrower in this Note, the Security Instrument or the Other Security Documents; (iv) all sums advanced pursuant to the Security Instrument to protect and preserve the Property and any lien and security interest created thereby; (v) all sums advanced and costs and expenses incurred by Lender in connection with the Debt (defined below) or any part thereof, any renewal, extension, or change of or substitution for the Debt or any part thereof, or the acquisition or perfection of the security therefor, whether made or incurred at the request of Borrower or Lender; (vi) the Prepayment Consideration (defined below), if any; and (vii) any and all additional advances made by Lender to complete Improvements (as defined in the Security Instrument) or to preserve or protect the Property, or for taxes, assessments or insurance premiums, or for the performance of any of Borrower's obligations hereunder or under the Security Instrument and the Other Security Documents (all the sums referred to in (i) through (vii) above shall collectively be referred to as the "Debt") shall without notice become immediately due and payable. 5. DEFAULT INTEREST. Borrower agrees that upon the occurrence (and Lender's declaration) of an Event of Default, Lender shall be entitled to receive and Borrower shall pay interest on the entire unpaid principal sum at a per annum rate equal to the lesser of (i) ten percent (10%) plus the Applicable Interest Rate, or (ii) the maximum interest rate which Borrower may by law pay (the "Default Rate"), and shall be due and payable ON DEMAND. The Default Rate shall be computed from the occurrence of the Event of Default. Interest calculated at the Default Rate shall be deemed secured by the Security Instrument and the Other Security Documents. Any judgment obtained by Lender against Borrower as to any amounts due under this Note shall also bear interest at the Default Rate. This clause, however, shall not be construed as an agreement or privilege to extend the date of the payment of the Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default. b. LATE CHARGE. If any monthly installment payable under this Note is not paid prior to the fifth • (5a`) day after the applicable Payment Date, Borrower shall pay to Lender upon demand an amount equal to the lesser of (a) five percent (5%) of such unpaid sum or (b) the maximum amount permitted by applicable law to defray the expenses incurred by Lender in handling and processing the delinquent payment and to compensate Lender for the loss of the use of the delinquent payment; and this amount shall be secured by the Security Instrument and the Other Security Documents. This clause, however, shall not be construed as an agreement or privilege to extend the date of the payment of the Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default. 7. PREPAYMENT. a. Lockout Period : Borrower shall not be permitted to make any full or partial prepayment of the principal balance of this Note (a "Prepayment") prior to that date that is twenty-four (24) months after the date of this Note (the "Lockout Period"). If, for any reason, a Prepayment is made during the Lockout Period (a "Lockout Prepayment"), Borrower shall, simultaneously therewith, be obligated to pay: (i) the aggregate amount of interest which would have accrued on the unpaid principal balance of this Note from the date of such Lockout Prepayment through the expiration date of the Lockout Period (the "Lockout Fee"), plus (ii) all amounts specified in Section 7(b) below). b. Prepayment Period: At any time during the Prepayment Period (as defined below), the principal balance of this Note may be prepaid in whole, but not in part, pursuant to the terms contained in this Section 7. If Borrower makes any Prepayment within the first Five years after the date of this Note (the "Prepayment Period"), the Borrower shall be obligated to pay to Lender the following amounts: (i) an amount equal to Five percent (5%) of the then outstanding unpaid principal balance of this Note (the "Prepayment Consideration"); and (ii) all accrued interest on the outstanding principal balance to and including date on which the Prepayment is made; and all other sums due under this Note, the Security Instrument and all Other Security Documents. c. Prepayments Without Consideration: No Prepayment Consideration or Lockout Fee (if any) shall be due or payable with respect to any full or partial Prepayment made by Borrower after the expiration of the Prepayment Period, d. Notice of Prepayment: Prior to making any Prepayment, Borrower must provide Lender with not less than sixty (60) days advance written notice of Borrower's intent to make such Prepayment. Such notice must specify: (i) the date on which Prepayment is to be made, and (ii) the principal amount of such Prepayment. Lender shall not be obligated to accept any Prepayment unless it is accompanied by all other amounts due in connection therewith. e. Permitted Prepayment Date : Borrower may only make a Prepayment on a regularly scheduled Payment Date (as defined in Section 2 of this Note). Lender shall not be required to accept any Prepayment made on a date other than a regularly scheduled • ?J Payment Date. If Borrower submits a Prepayment on any date other than a regularly scheduled Payment Date, then Borrower shall be required to pay all interest that would have accrued through the next scheduled Payment Date. f. Insurance/Condemnation Prepayment: Notwithstanding anything to the contrary contained herein, and provided no Event of Default exists, no Prepayment Consideration shall be due in connection with any Prepayment resulting from the application of insurance proceeds or condemnation awards pursuant to the terms of the Security Instrument or changes in tax and debt credit pursuant to the terms of the Security Instrument. For purposes of this Section 7, the terms "Lockout Prepayment" and "Prepayment" shall include, without limitation, any prepayment of principal that occurs as a result of any Event of Default in any of the Loan Documents or an acceleration of the Maturity Date under any circumstances, any prepayment of principal occurring in connection with foreclosure proceedings or exercise of any applicable power of sale, any statutory right of redemption exercised by Borrower or any other party having a statutory right to redeem or prevent foreclosure, any sale in foreclosure or under exercise of any applicable power of sale, deed in lieu of foreclosure or otherwise, and any other voluntary or involuntary prepayment of principal made by Borrower. 8. LOAN CHARGES. Borrower agrees to an effective rate of interest that is the rate stated in this Note, plus any additional rate of interest resulting from any other sums, amounts, and charges in the nature of interest paid or to be paid by or on behalf of Borrower, or any benefit or value received or to be received by the holder of this Note, in connection with this Note. Without limiting the foregoing, this Note, the Security Instrument and the Other Security Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance due hereunder at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the maximum interest rate which Borrower is permitted by applicable law to contract or agree to pay. If by the terms of this Note, the Security Instrument and the Other Security Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of such maximum rate, the Applicable Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder, and any excess remaining shall be refunded to Borrower. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the Debt, shall, to the maximum extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated period until payment in full of the principal (including the period of any renewal or extension hereof) so that the rate or amount of interest on account of the Debt does not exceed the maximum lawful rate of interest from time to time in effect and applicable to the Debt for so long as the Debt is outstanding. In determining whether or not the interest paid or payable hereunder exceeds the maximum lawful rate, the Lender may utilize any law, rule or regulation in effect from time to time and available to the Lender. 9. WAIVERS. Borrower and all others who may become liable for the payment of all or any part of the Debt do hereby severally waive, to the extent allowed by law, (a) presentment and demand for payment, notice of dishonor, protest and notice of protest and non-payment and all other notices of any kind, except for notices expressly provided for in this Note, the Security Instrument or the Other Security Documents and (b) any defense of the statute of limitations in any action hereunder or for the collection of the Debt. No release of any security for the Debt or extension of • • time for payment of this Note or any installment hereof, and no alteration, amendment or waiver of any provision of this Note, the Security Instrument or the Other Security Documents made by agreement between Lender or any other person or party shall release, modify, amend, waive, extend, change, discharge, terminate or affect the liability of Borrower, and any other person or entity who may become liable for the payment of all or any part of the Debt, under this Note, the Security Instrument or the Other Security Documents. No notice to or demand on Borrower shall be deemed to be a waiver of the obligation of Borrower or of the right of Lender to take further action without further notice or demand as provided for in this Note, the Security Instrument or the Other Security Documents. If Borrower is a partnership, corporation or limited liability company, the agreements contained herein shall remain in full force and effect, notwithstanding any changes in the individuals or entities comprising the Borrower, and the term "Borrower," as used herein, shall include any alternate or successor entity, but any predecessor entity, and its partners or members, as the case may be, shall not thereby be released from any liability. (Nothing in the foregoing sentence shall be construed as a consent to, or a waiver of, any prohibition or restriction on transfers of interests in Borrower which may be set forth in the Security Instrument or any Other Security Document). 10. AUTHORITY. Borrower (and the undersigned representative of Borrower, if any) represents that Borrower has full power, authority and legal right to execute and deliver this Note, the Security Instrument and the Other Security Documents and that this Note, the Security Instrument and the Other Security Documents constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms. 11. GOVERNING LAW. This Note shall be governed, construed, applied and enforced in accordance with the laws of the State in which the Real Property is located, without regard to principles of conflicts of law. 12. NOTICES. All notices required or permitted hereunder shall be given as provided in the Security Instrument. 13. INCORPORATION BY REFERENCE. All of the terms, covenants and conditions contained in the Security Instrument and the Other Security Documents are hereby made part of this Note to the same extent and with the same force as if they were fully set forth herein. In the event of any conflict in terms, the terms of the Note, Security Instrument and Other Security Documents (in that order) shall control. 14. MISCELLANEOUS. a. To the extent permitted by law, wherever pursuant to this Note it is provided that Borrower pay any costs and expenses, such costs and expenses shall include, but not be limited to, reasonable legal fees and disbursements of Lender, whether with respect to retained firms, the reimbursement for the expenses of in-house staff, or otherwise. To the extent permitted by law, Borrower shall pay to Lender on demand any and all expenses, including legal expenses and reasonable attorneys fees (at all levels including appeals), incurred or paid by Lender in enforcing this Note, whether or not any legal proceeding is commenced hereunder, together with interest thereon at the Default Rate from the date paid or incurred by Lender until such expenses are paid by Borrower. b. This Note may not be modified, amended, waived, extended, changed, discharged or 0 • terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought. c. If Borrower consists of more than one person or party, the obligations and liabilities of each person or party shall be joint and several. d. Whenever used, the singular number shall include the plural, the plural number shall include the singular, and the words "Lender" and "Borrower" shall include their respective successors, assigns, heirs, personal representatives, executors and administrators. e. The headings of this Note are for convenience only and are not to affect the construction of or to be taken into account in interpreting the substance of this Note. f. Time is of the essence hereunder. g. A determination that any provision of this Note is unenforceable or invalid shall not affect the enforceability or validity of any other provision and a determination that the application of any provision of this Note to any person or circumstance is illegal or unenforceable shall not affect the enforceability or validity of such provision as it may apply to other persons or circumstances. The remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby. 15. DOCUMENTARY STAMPS. All documentary stamps or taxes required to be affixed hereto have been paid in connection with this Note at the time of recordation of the Security Instrument. 16. FINAL AGREEMENT. This Note, the Security Instrument and the Other Security Documents, represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the parties. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Note, the Security Instrument and the Other Security Documents. 17. POWER OF ATTORNEY. To the extent permitted by applicable law, Borrower hereby irrevocably authorizes any attorney at law elected by Lender to appear for it in any action on this Note in any court of record in the State of PENNSYLVANIA or any other state or territory of the United States, or at any time after the indebtedness evidenced by this Note, or any part thereof becomes due (by acceleration or otherwise), to waive the issuance and service of process, and confess a judgment in favor of Lender or any subsequent holder of this Note against Borrower, for the amount that may then be due, together with the costs of suit and interest, and to waive and release all errors and all rights to second trial, appeal, and stay of execution. The foregoing warrant of attorney shall survive any judgment, and if any judgment be vacated for any reason, the holder hereof nevertheless may thereafter use the foregoing warrant of attorney to obtain an additional judgment or judgments against Borrower. 18. WAIVER OF TRIAL BY JURY. BORROWER AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR n • INDIRECTLY TO THE LOAN EVIDENCED BY THIS NOTE, THE APPLICATION FOR THE LOAN EVIDENCED BY THIS NOTE, THIS NOTE, THE SECURITY INSTRUMENT OR THE OTHER SECURITY DOCUMENTS OR ANY ACTS OR OMISSIONS OF ANY PARTY OR ANY OF THEIR RESPECTIVE OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS IN CONNECTION THEREWITH. THIS WAIVER OF THE RIGHT TO TRIAL BY JURY IS A MATERIAL INDUCEMENT TO THE LENDER FOR THE LENDER TO MAKE THE LOAN. READ ALL CREDIT AGREEMENTS BEFORE SIGNING. THE TERMS OF ALL CREDIT AGREEMENTS SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED OR SPECIFICALLY INCORPORATED BY WRITING IN THIS WRITTEN CREDIT AGREEMENT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS NOTE ONLY BY OTHER WRITTEN CREDIT AGREEMENTS. [NO FURTHER TEXT - SIGNATURES APPEAR ON NEXT PAGE] 0 • IN WITNESS WHEREOF, Borrower has duly executed this Note as of the day and date first above written. Signed, sealed and delivered in the presence of: Z- giz Print Name: Borrower: n R. Bubb Print Name: 0 ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVAN? COUNTY OF 1? r W) • The foregoing instrument was acknowledged be?rk?q? uv?mp , N??3 ``'y John R. Bubb. He/she is personally known to me or produced ((?? rr II ?Ijj II rr ?? II ?? as identification, and did/did not take an oath. [Official Notary Seal] Notary ublic, otnmonwealth of Pennsylvania Print or Type Name: My Commission Expires: NONA&I Seal Kelly A. Cubmw. NOWY MAX JeNdawwa Horn. MoNgo way Cooky My Canmiaioa Expims Fab. 11. X107 hAertmer, PomreyW"AssOCIWMCINOWMS W Act/360 Amortization Schedule Parameters Outputs Interest Rate: 9.9900% Created By: evasmith Interest Paid to Date: 12/1/2006 Monthly Pymt: $3,162.11 Amortization Term: 180 Last Pymt: $3,161.83 Date Funded: Maturity Date: 12/112021 Loan No 2116525 No Due Date Beg Sal Payment , Interest Principal End Sal 1 1 /1 /2007 $292,000.00 $3,162.11 t/ $2,511.93 $650.18 $291,349.82 2 2/1/2007 $291,349.82 $3,162.11 $2,506.34 $655.77 $290,894.05 3 3/1/2007 $290,694.05 $3,162.11 $2,258.69 $903.42 $289,790.63 4 4/1/2007 $289,790.63 $3,162.11 $2,492.92 $669.19 $289,121.44 5 511/2007 $289,121.44 $3,162.11 $2,406.94 $755.17 $288,366.27 6 6/1/2007 $288,366.27 $3,162.11 $2,480.67 $681.44 $287,684.83 7 7/112007 $287,684.83 $3,162.11 $2,394.98 $767.13 $286,917.70 8 8/1/2007 $286,917.70 $3,162.11 $2,468.21 $693.90 $286,223.80 9 9/1/2007 $286,223.80 $3,162.11 $2,462.24 $699.87 $285,523.93 10 10/112007 $285,523.93 $3,162.11 $2,376.99 $785.12 $284,738.81 11 11/1/2007 $284,738.81 $3,162.11 $2,449.47 $712.64 $284,026.17 12 12/1/2007 $284,026.17 $3,162.11 $2,364.52 $797.59 $283,228.58 13 111/2008 $283,228.58 $3,162.11 $2,436.47 $725.64 $282,502.94 14 211/2008 $282,502.94 $3,162.11 $2,430.23 $731.88 $281,771.06 15 3/1/2008 $281,771.06 $3,162.11 $2,267.55 $894.56 $280,876.50 16 4/1/2008 $280,876.50 $3,162.11 $2,416.24 $745.87 $280,130.63 17 5/1/2008 $280,130.63 $3,162.11 $2,332.09 $830.02 $279,300.61 18 6/1/2008 $279,300.61 $3,162.11 $2,402.68 $759.43 $278,541.18 19 7/1/2008 $278,541.18 $3,162.11 $2,318.86 $843.25 $277,697.93 20 8/1/2008 $277,697.93 $3,162.11 $2,388.90 $773.21 $276,924.72 21 9/1/2008 $276,924.72 $3,162.11 $2,382.24 $779.87 $276,144.85 22 10/1/2008 $276,144.85 $3,162.11 $2,298.91 $863.20 $275,281.65 23 111112008 $275,281.65 $3,162.11 $2,368.11 $794.00 $274,487.65 24 12/1/2008 $274,487.65 $3,162.11 $2,285.11 $877.00 $273,610.65 25 1/1/2009 $273,610.65 ' $3,162.11 $2,353.74 $808.37 $272,802.28 26 2/1/2009 $272,802.28 $3,162.11 $2,346.78 $815.33 $271,986.95 27 3/1/2009 $271,986.95 $3,162.11 $2,113.34 $1,048.77 $270,938.18 28 4/1/2009 $270,938.18 $3,162.11 $2,330.75 $831.36 $270,106.82 29 5/1/2009 $270,106.82 $3,162.11 $2,248.64 $913.47 $269,193.35 30 6/1/2009 $269,193.35 $3,162.11 $2,315.74 $846.37 $268,346.98 31 711/2009 $268,346.98 $3,162.11 $2,233.99 $928.12 $267,418.86 32 8/1/2009 $267,418.86 $3,162.11 $2,300.47 $861.64 $266,557.22 33 9/1/2009 $266,557.22 $3,162.11 $2,293.06 $869.05 $265,688.17 34 10/112009 $265,688.17 $3,162.11 $2,211.85 $950.26 $264,737.91 35 11/112009 $264,737.91 $3,162.11 $2,277.41 $884.70 $263,853.21 36 12/1/2009 $263,853.21 $3,162.11 $2,196.58 $965.53 $262,887.68 37 11112010 $262,887.68 $3,162.11 $2,261.49 $900.62 $261,987.06 38 2/1/2010 $261,987.06 $3,162.11 $2,253.74 $908.37 $261,078.69 39 3/1/2010 $261,078.69 $3,162.11 $2,028.58 $1,133.53 $259,945.16 40 4/112010 $259,945.16 $3,162.11 $2,236.18 $925.93 $259,019.23 This amortization schedule Is for internal use ONLY and Is not Intended for distribution to loan applicants and/or borrowers 11/8!2006 Page 1 of 4 00 0• Loan No 2116525 No Due Date Beg Sal Payment Interest Principal End Sal 41 5/1/2010 $259,019.23 $3,162.11 $2,156.34 $1,005.77 $258,013.46 42 6/1/2010 $258,013.46 $3,162.11 $2,219.56 $942.55 $257,070.91 43 71112010 $257,070.91 $3,162.11 $2,140.12 $1,021.99 $256,048.92 44 8/1/2010 $256,048.92 $3,162.11 $2,202.66 $959.45 $255,089.47 45 9/1/2010 $255,089.47 $3,162.11 $2,194.41 $967.70 $254,121.77 46 10/1/2010 $254,121.77 $3,162.11 $2,115.56 $1,D46.55 $253.075.22 47 11/1/2010 $253,075.22 $3,162.11 $2,177.08 $985.03 $252,090.19 48 12/1/2010 $252,090.19 $3,162.11 $2,098.65 $1,063.46 $251,026.73 49 111/2011 $251,026.73 $3,162.11 $2,159.46 $1,002.65 $250,024.08 50 2/1/2011 $250,024.08 $3,162.11 $2,150.83 $1,011.28 $249,012.80 51 3/1/2011 $249,012.80 $3,162.11 $1,934.83 $1,227.28 $247,785.52 52 4/1/2011 $247,785.52 $3,162.11 $2,131.57 $1,030.54 $246,754.98 53 5/1/2011 $246,754.98 $3,162.11 $2,054.24 $1,107.87 $245,647.11 54 6/1/2011 $245,647.11 $3,162.11 $2,113.18 $1,048.93 $244,598.18 55 7/1/2011 $244,598.18 $3,162.11 $2,036.28 $1,125.83 $243,472.35 56 8/1/2011 $243,472.35 $3,162.11 $2,094.47 $1,067.64 $242,404.71 57 9/112011 $242,404.71 $3,162.11 $2,085.29 $1,076.82 $241,327.89 58 10/1/2011 $241,327.89 $3,162.11 $2,009.05 $1,153.06 $240,174.83 59 11/1/2011 $240,174.83 $3,162.11 $2,066.10 $1,096.01 $239,078.82 60 12/1/2011 $239,078.82 $3,162.11 $1,990.33 $1,171.78 $237,907.04 61 1/1/2012 $237,907.04 $3,162.11 $2,046.60 $1,115.51 $236,791.53 62 2/1/2012 $236,791.53 $3,162.11 $2,037.00 $1,125.11 $235,666.42 63 3/1/2012 $235,666.42 $3,162.11 $1,896.53 $1,265.58 $234,400.84 64 4/1/2012 $234,400.84 $3,162.11 $2,016.43 $1,145.68 $233,256.16 65 5/1/2012 $233,255.16 $3,162.11 $1,941.85 $1,220.26 $232,034.90 66 6/112012 $232,034.90 $3,162.11 $1,996.08 $1,166.03 $230,868.87 67 7/1/2012 $230,868.87 $3,162.11 $1,921.98 $1,240.13 $229,628.74 68 8/1/2012 $229,628.74 $3,162.11 $1,975.38 $1,186.73 $228,442.01 69 9/112012 $228,442.01 $3,162.11 $1,965.17 $1,196.94 $227,245.07 70 10/1/2012 $227,245.07 $3,162.11 $1,891.82 $1,270.29 $225,974.78 71 11/1/2012 $225,974.78 $3,162.11 $1,943.95 $1,218.16 $224,756.62 72 12/1/2012 $224,756.62 $3,162.11 $1,871.10 $1,291.01 ' $223,465.61 73 1/1/2013 $223,465.61 $3,162.11 $1,922.36 $1,239.75 $222,225.66 74 2/1/2013 $222,225.86 $3,162.11 $1,911.70 $1,250.41 $220,975.45 75 3/112013 $220,975.45 $3,162.11 $1,716.98 $1,445.13 $219,530.32 76 411/2013 $219,530.32 $3,162.11 $1,888.51 $1,273.60 $218,256.72 77 511/2013 $218,256.72 $3,162.11 $1,816.99 $1,345.12 $216,911.60 78 611/2013 $216,911.60 $3,162.11 $1,865.98 $1,296.13 $215,615.47 79 7/1/2013 $215,615.47 $3,162.11 $1,795.00 $1,367.11 $214,248.36 80 81112013 $214,248.36 $3,162.11 $1,843.07 $1,319.04 $212,929.32 81 9/1/2013 $212,929.32 $3,162.11 $1,831.72 $1,330.39 $211,598.93 82 10/112013 $211,598.93 $3,162.11 $1,761.56 $1,400.55 $210,198.38 83 11/1/2013 $210,198.38 $3,162.11 $1,808.23 $1,353.88 $208,844.50 64 12/1/2013 $208,844.50 $3,162.11 $1,738.63 $1,423.48 $207,421.02 85 1/1/2014 $207,421.02 $3,162.11 $1,784.34 $1,377.77 $206,043.25 86 2/1/2014 $206,043.25 $3,162.11 $1,772.49 $1,389.62 $204,653.63 87 311/2014 $204,653.63 $3,162.11 $1,590.16 $1,571.95 $203,081.68 88 411/2014 $203,081.68 $3,162.11 $1,747.01 $1,415.10 $201,666.58 89 511/2014 $201,666.58 $3,162.11 $1,678.87 $1,483.24 $200,183.34 90 6/1/2014 $200,183.34 $3,162.11 $1,722.08 $1,440.03 $198,743.31 91 7/1/2014 $198,743.31 $3,162.11 $1,654.54 $1,507.57 $197,235.74 This amortization schedule is for internal use ONLY and is not intended for dletribution to loan applicants andlor borrowers 11/6/2006 Page 2 of 4 00 Loan No 2116525 No Due Date B" Sol Payment Interest Principal End Sal 92 8/1/2014 $197,235.74 $3,162.11 $1,695.72 $1,465.39 $195,770.35 93 9/1/2014 $195,770.35 $3,162.11 $1,684.11 $1,478.00 $194,292.35 94 10/1/2014 $194,292.35 $3,162.11 $1,617.48 $1,544.63 $192,747.72 95 11/1/2014 $192,747.72 $3,162.11 $1,658.11 $1,504.00 $191,243.72 96 12/112014 $191,243.72 $3,162.11 $1,592.10 $1,570.01 $189,673.71 97 1/1/2015 $189,673.71 $3,162.11 $1,631.67 $1,530.44 $188,143.27 98 211/2015 $188,143.27 $3,162.11 $1,618.50 $1,543.61 $186,599.66 99 3/1/2015 $186,599.66 $3,162.11 $1,449.88 $1,712.23 $184,887.43 100 4/1/2015 $184,887.43 $3,162.11 $1,590.49 $1,571.62 $183,315.81 101 5/1/2015 $183,315.81 $3,162.11 $1,526.10 $1,636.01 $181,679.80 102 6/1/2015 $181,679.80 $3,162.11 $1,562.90 $1,599.21 $180,080.59 103 7/1/2015 $180,080.59 $3,162.11 $1,499.17 $1,662.94 $178,417.65 104 8/1/2015 $178,417.65 $3,162.11 $1,534.84 $1,627.27 $175,790.38 105 9/1/2015 $176,790.38 $3,162.11 $1,520.84 $1,641.27 $175,149.11 106 10/1/2015 $175,149.11 $3,162.11 $1,458.12 $1,703.99 $173,445.12 107 11/1/2015 $173,445.12 $3,162.11 $1,492.06 $1,670.05 $171,775.07 108 12/1/2015 $171,775.07 $3,162.11 $1,430.03 $1,732.08 $170,042.99 109 1/1/2016 $170,042.99 $3,162.11 $1,462.79 $1,699.32 $168,343.67 110 2/112016 $168,343.67 $3,162.11 $1,448.18 $1,713.93 $166,629.74 111 3/1/2016 $166,629.74 $3,162.11 $1,340.95 $1,821.16 $164,808.58 112 4/1/2016 $164,808.58 $3,162.11 $1,417.77 $1,744.34 $163,064.24 113 511/2016 $163,064.24 $3,162.11 $1,357.51 $1,804.60 $161,259.64 114 6/1/2016 $161,259.64 $3,162.11 $1,387.24 $1,774.87 $159,484.77 115 711/2016 $159,484.77 $3,162.11 $1,327.71 $1,834.40 $157,650.37 116 8/1/2016 $157,650.37 $3,162.11 $1,356.19 $1,805.92 $155,844.45 117 911/2016 $155,844.45 $3,162.11 $1,340.65 $1,821.46 $154,022.99 118 1011/2016 $154,022.99 $3,162.11 $1,282.24 $1,879.87 $152,143.12 119 11/1/2016 $152,143.12 $3,162.11 $1,308.81 $1,853.30 $150,289.82 120 1211/2016 $150,289.82 $3,162.11 $1,251.16 $1,910.95 $148,378.87 121 1/1/2017 $148,378.87 $3,162.11 $1,276.43 $1,885.68 $146,493.19 122 2/1/2017 $146,493.19 $3,162.11 $1,260.21 $1,901.90 $144,591.29 123 3/1/2017 $144,591.29 $3,162.11 $1,123.47 $2,038.64 $142,552.65 124 4/1/2017 $142,552.65 $3,162.11 $1,226.31 $1,935.80 $140,616.85 125 5/1/2017 $140,616.85 $3,162.11 $1,170.64 $1,991.47 $138,625.38 126 6/112017 $138,625.38 $3,162.11 $1,192.52 $1,969.59 $136,655.79 127 7/1/2017 $136,655.79 $3,162.11 $1,137.66 $2,024.45 $134,631.34 128 8/1/2017 $134,631.34 $3,162.11 $1,158.17 $2,003.94 $132,627.40 129 9/1/2017 $132,627.40 $3,162.11 $1,140.93 $2,021.18 $130,606.22 130 10/1/2017 $130,606.22 $3,162.11 $1,087.30 $2,074.81 $128,531.41 131 1111/2017 $128,531.41 $3,162.11 $1,105.69 $2,056.42 $126,474.99 132 12/1/2017 $126,474.99 $3,162.11 $1,052.90 $2,109.21 $124,365.78 133 1/1/2018 $124,365.78 $3,162.11 $1,069.86 $2,092.25 $122,273.53 134 2/1/2018 $122,273.53 $3,162.11 $1,051.86 $2,110.25 $120,163.28 135 311/2018 $120,163.28 $3,162.11 $933.67 $2,228.44 $117,934.84 136 4/112018 $117,934.84 $3,162.11 $1,014.53 $2,147.58 $115,787.26 137 5/1/2018 $115,787.26 $3,162.11 $963.93 $2,198.18 $113,589.08 138 6/1/2018 $113,589.08 $3,162.11 $977.15 $2,184.96 $111,404.12 139 7/1/2018 $111,404.12 $3,162.11 $927.44 $2,234.67 $109,169.45 140 8/1/2018 $109,169.45 $3,162.11 $939.13 $2,222.98 $106,946.47 141 9/112018 $106,946.47 $3,162.11 $920.01 $2,242.10 $104,704.37 142 1011/2018 $104,704.37 $3,162.11 $871.66 $2,290.45 $102,413.92 This amortization sctoduls Is for Internal use ONLY and is not intended for distribution to loan applicants and/or borrowers 11/612006 Page 3 of 4 N N Loan No 2116525 No Due Date Beg Bal Payment Interest Principal End Sal 143 11/1/2018 $102,413.92 $3,162.11 $881.02 $2,281.09 $100,132.83 144 12/1/2018 $100,132.83 $3,162.11 $833.61 $2,328.50 $97,804.33 145 111/2019 $97,804.33 $3,162.11 $841.36 $2,320.75 $95,483.58 146 2/1/2019 $95,483.58 $3,162.11 $821,40 $2,340.71 $93,142.87 147 311/2019 $93,142.87 $3,162.11 $723.72 $2,438.39 $90,704.48 148 4/1/2019 $90,704.48 $3,162.11 $780.29 $2,381.82 $88,322.66 149 5/1/2019 $88,322.66 $3,162.11 $735.29 $2,426.82 $85,895.84 150 6/112019 $85,895.84 $3,162.11 $738.92 $2,423.19 $83,472.65 151 7/1/2019 $83,472.65 $3,162.11 $694.91 $2,467.20 $81,005.45 152 8/1/2019 $81,005.45 $3,162.11 $696.85 $2,465.26 $78,540.19 153 9/112019 $78,540.19 $3,162.11 $675.64 $2,486.47 $76,053.72 154 10/1/2019 $76,053.72 $3,162.11 $633.15 $2,528.96 $73,524.76 155 11/1/2019 $73,524.76 $3,162.11 $632.50 $2,529.61 $70,995.15 156 12/112019 $70,995.15 $3,162.11 $591.03 $2,571.08 $68,424.07 157 111/2020 $68,424.07 $3,162.11 $588.62 $2,573.49 $65,850.58 158 2/1/2020 $65,850.58 $3,162.11 $566.48 $2,595.63 $63,254.95 159 3/1/2020 $63,254.95 $3,162.11 $509.04 $2,653.07 $60,601.88 160 4/1/2020 $60,601.88 $3,162.11 $521.33 $2,640.78 $57,961.10 161 5/1/2020 $57,961.10 $3,162.11 $482.53 $2,679.58 $55,281.52 162 6/1/2020 $55,281.52 $3,162.11 $475.56 $2,686.55 $52,594.97 163 711/2020 $52,594.97 $3,162.11 $437.85 $2,724.26 $49,870.71 164 811/2020 $49,870.71 $3,162.11 $429.01 $2,733.10 $47,137.61 165 9/1/2020 $47,137.61 $3,162.11 $405.50 $2,756.61 $44,381.00 166 10/1/2020 $44,381.00 $3,162.11 $369.47 $2,792.64 $41,588.36 167 11/1/2020 $41,588.36 $3,162.11 $357.76 $2,804.35 $38,784.01 168 12/112020 $38,784.01 $3,162.11 $322.88 $2,839.23 $35,944.78 169 1/1/2021 $35,944.78 $3,162.11 $309.21 $2,852.90 $33,091.88 170 2/112021 $33,091.88 $3,162.11 $284.67 $2,877.44 $30,214.44 171 3/1/2021 $30,214.44 $3,162.11 $234.77 $2,927.34 $27,287.10 172 4/112021 $27,287.10 $3,162.11 $234.74 $2,927.37 $24,359.73 173 5/1/2021 $24,359.73 $3,162.11 $202.79 $2,959.32 $21,400.41 174 611/2021 $21,400.41 $3,162.11 $184.10 $2,978.01 $18,422.40 175 7/1/2021 $18,422.40 $3,162.11 $153.37 $3,008.74 $15,413.66 176 8/1/2021 $15,413.66 $3,162.11 $132.60 $3,029.51 $12,384.15 177 9/1/2021 $12,384.15 $3,162.11 $106.53 $3,055.58 $9,328.57 178 10/1/2021 $9,328.57 $3,162.11 $77.66 $3,084.45 $6,244.12 179 11/1/2021 $6,244.12 $3,162.11 $53.72 $3,108.39 $3,135.73 180 12/1/2021 $3,135.73 $3,161.83 $26.10 $3,135.73 $0.00 This wnortkmdon schedule Is for internal use ONLY and Is not Intended for distribution to loan applicants and/or borrowers 11/6/2008 Pegs 4 of 4 0 • ALLONGE TO NOTE FOR PURPOSES OF FURTHER ENDORSEMENT OF THE NOTE REFERRED TO BELOW: BORROWER: LENDER: DATED: John R. Bubb InterBay Funding, LLC, a Delaware Limited Liability Company November 7, 2006 ORIGINAL PRINCIPAL BALANCE: $292,000.00 PAY TO THE ORDER OF: WITHOUT RECOURSE: InterBay Funding, LLC, a Delaware Limited Liability Company By: Print Title: Sue Sailor Ice res 2116525 UPON ICKORDING RETURN TO: Bayvicw Loan Servicing. LLC do ationwide Titk Clearing, Inc., Attn: t Does Unit 2100 19 North Pai H FL 34693 (800) 346 152 AWA -a8(41 Attorney's Select Abstrict, Inc. 13050 Bustleton Ave. Suite B pit Welpbia, penneylvauia 10116 (215) US-7000 -1216) 6660776 W N0 7 t6 OPEN-END MORTGAGE & SECURITY AGREEMENT ( PENNSYLVANIA ) [This Mortgage Secures Future Advances] John R. Bubb Christine B. Bubb as mortgagor (Borrower) To InterBay Funding, LLC, a Delaware Limited Liability Company as mortgagee (Lender) BK 1973PG2517 L•, t `rM 1 O m ? 3 ? ra ?' m '_ THIS MORTGAGE AND SECURITY AGREEMENT (the "Security Instrument") is made as of November 7, 2006, by John R. Bubb and Christine B. Bubb, whose address is 3299 Ritner Hwy, Newville, PA 17241, as mortgagor ("Borrower") to InterBay Funding, LLC, a Delaware Limited Liability Company, whose address is 1301 Virginia Drive, Ste #403, Fort Washington, PA 19034, as mortgagee ("Lender"). RECITALS: Borrower by its Promissory Note of even date herewith given to Lender is indebted to Lender in the principal sum of Two Hundred Ninety-Two Thousand and No/100 Dollars ($292,000.00) in lawful money of the United States of America (the Note together with all extensions, renewals, modifications, substitutions and amendments thereof shall collectively be referred to as the "Note"), with interest from the date thereof at the rates set forth in the Note, principal and interest to be payable in accordance with the terms and conditions provided in the Note and with a maturity date of December I, 2021. By its execution hereof, Borrower desires to secure the payment of the Debt (hereinafter defined) and the performance of all of its obligations under the Note and the Other Obligations (hereinafter defined) and any and all other indebtedness now or hereafter owing by Borrower to Lender. ARTICLE 1. - GRANTS OF SECURITY Section I.I. PROPERTY MORTGAGED. Borrower does hereby irrevocably mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey to Lender with mortgage covenants upon the Statutory Condition and, as provided "or authorized by applicable law, with the STATUTORY POWER OF SALE, and grant a security interest to Lender in, the following property, rights, interests and estates now owned, or hereafter acquired by Borrower to the fullest extent permitted by applicable law (collectively, the "Property"): (a) Land. The real property described in Exhibit "A" attached hereto and made a part hereof (the ,.Land"): (b) Additional Land. All additional lands, estates and development rights hereafter acquired by Borrower for use in connection with the Land and the development of the Land and all additional lands and estaes therein which may, from time to time, by supplemental mortgage or otherwise be expressly made subject to the lien of this Security Instrument; (c) Improvements. The buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and improvements now or hereafter erected or located on the Land (the 'Improvements"); (d) Fem. All easements, servitudes rights-of-way or use, rights, strips and gores of land, streets. ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air rights and development rights, and all estates, rights, titles, interests, privileges, liberties, servitudes, tenements, bereditamcnts and appurtenances of any nature whatsoever, in any way now or hereafter belonging, relating or pertaining to the Land and the Improvements and the reversion and reversions, remainder and remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Laird, to the center line thereof and all the estates, rights, tides, interests, dower and rights of dower, courtesy and rights of courtesy, property, possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in and to the Land and the Improvements and every pan and parcel thereof, with the appurtenances thereto; (e) Fixtures and Personal Procenv. All machinery, equipment, fixtures (including, but not limited to, all heating, air conditioning, plumbing, lighting, communications and elevator fixtures) trade fixtures and other property of every kind and nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, including without limitation, letter of credit rights, deposit accounts, payment intangibles, investment property, electronic chattel paper, timber to be cut and farm animals and, now or hereafter located upon the Land and the Improvements, or appurtenant thereto, and usable in connection with the present or future operation and occupancy of the Land and the improvements and all building equipment, materials and supplies of any nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located upon the Land and the Improvements, or appurtenant thereto, or usable in connection with the present or future operation and occupancy of the laird and the Improvements (collectively, the "Personal Property"), and the right, title and interest of Borrower in and to any of the Personal Property which may be subject to any security interests, as defined in the Uniform Commercial Code, as adopted 8K 1973PG2578 and enacted by the state or sates where any of the Property is located (the "Uniform Commercial Code"). superior in lien to the lien of this Security Instrument, and all proceeds and products of all of the above: M Leases and Rents. All leases, subleases and other agreements affecting the use, enjoyment or occupancy of the Land and/or the Improvements heretofore or hereafter entered into and all extensions, amendments and modifications thereto, whether before or after the filing by or against Borrower of any petition for relief under Creditors Rights Laws (hereinafter defined) (the "Leases") and all right, title and interest of Borrower, its successors and assigns therein and thereunder, including, without limitation, any guaranties of the lessees' obligations thereunder, cash or securities deposited thereunder to secure the performance by the lessees of their obligations thereunder and all rents, additional rents, revenues, room revenues, accounts, accounts receivable, issues and profits (including all oil and gas or other mineral royalties and bonuses), from the Land and the Improvements whether paid or accruing before or after the filing by or against Borrower of any petition for relief under the Creditors Rights Laws (the "Rents") and all proceeds from the sale or other disposition of the Leases and the right to receive and apply the Rents to the payment of the Debt; (g) Insurance Proceeds. All proceeds of and any unearned premiums on any insurance policies covering the Property, including, without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof, for damage to the Property; (h) Condemnation Awards. All awards or payments, including interest thereon, which may heretofore and hereafter be made with respect to the Property, whether from the exercise of the right of eminent domain (including, but not limited to any trtutsfer made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or for any other injury to or decrease in the value of the Property; (i) Tax Certiorari. All refund &. rebates or credits in connection with a reduction in real estate taxes and assessments charged against the Property as a result of tax certiorari or any applications or proceedings for reduction; G) Conversion All proceeds of the conversion, voluntary or involuntary, of any of the foregoing including, without limitation, proceeds of insurance and condemnation awards, into cash or liquidation claims; (k) Bight. The right, in the name and on behalf of Borrower, to appear in and defend any action or proceeding brought with respect to the Property and to commence any action or proceeding to protect the interest of Lender in the Property; (t) Agreements. All agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications and other documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use, occupation, construction, management or operation of the Land and any pan thereof and any improvements or respecting any business or activity conducted on the Land and any pan thereof and all right, title and interest of Borrower therein and thereunder, including, without limitation, the right, upon the occurrence and during the continuance of an Event of Default (hereinafter defined), to receive and collect any sums payable to Borrower thereunder; (m) Intangibles. All trade names, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other intellectual property rights and general intangibles relating to or used in connection with the operation of the Property; (n) Cash and Accounts. Cash and Accounts. All cash funds, deposit accounts and other rights and evidence of rights to cash, all present and future funds, accounts, instruments, accounts receivable, documents, causes of action, or claims now or hereafter held, created or otherwise capable of credit to the Debtor/Borrower; and (o) Other Rights. Any and all other rights of Borrower in and to the items set forth in Subsections (a) through (n) above. Section 1.2. ASSIGNMENT OF LEASES AND RENTS. Borrower hereby absolutely and unconditionally assigns to Lender Borrower's right, title and interest in and to all current and future Leases and Rents: it being intended by Borrower that this assignment constitutes a present, absolute assignment and not an assignment for additional security only. Notwithstanding the foregoing. Lender grants to Borrower a revocable license to collect and receive the Rents. Borrower shall hold a portion of the Rents sufficient to discharge all current sums due on the Debt, for use in the payment of such sums. Section 1.3. SECURITY AGREEMENT. This Security Instrument is both a real property mortgage and a "security 8K i 973PG2579 agreement" within the meaning of the Uniform Commercial Code. The Property includes both real and personal property and all other rights and interests, whether tangible or intangible in nature, of Borrower in the Property. By executing and delivering this Security Instrument, Borrower hereby grants to Lender, as security for the Obligations (hereinafter defined), a security interest in the Personal Property as well as all other property and interests set forth in Section 1.1 herein to the full extent that the same may be subject to the Uniform Commercial Code. If required by Lender, Borrower shall execute UCC-1 Financing Statements covering said property for filing with the appropriate county and/or state filing offices. In any event, Lender is permitted to unilaterally file a UCC-1 Financing Statement covering all of the Property. Section 1.4. PLEDGE OF MONIES HELD. Borrower hereby pledges to and grants a continuing security interest in favor of Lender any and all monies now or hereafter held by Lender, including, without limitation, any sums deposited in the Escrow Fund (hereinafter defined), Net Proceeds (hereinafter defined) and condemnation awards or payments (hereinafter described) as additional security for the Obligations until expended or applied as provided in this Security Instrument. CONDITIONS TO GRANT TO HAVE AND TO HOLD the above granted and described Property to the use and benefit of Lender, and the successors and assigns of Lender, forever, PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well and truly pay to Lender the Debt at the time and in the manner provided in the Note and this Security Instrument, shall perform the Other Obligations as set forth in this Security Instrument and shall abide by and comply with each and every covenant and condition set forth herein and in the Note, these presents and the estate hereby granted shall cease, terminate and be void, except to the extent any provision herein provides that it shall survive the repayment of the obligations. ARTICLE 2. - DEBT AND OBLIGATIONS SECURED Section 2.1. DEBT. This Security Instrument and the grants, assignments and transfers made pursuant to the terms hereafter arc given for the purpose of securing the payment of the following, in such order of priority as Lender may determine in its sole discretion (the "Debt"): (a) the indebtedness evidenced by the Note in lawful money of the United States of America; (b) interest, default interest, late charges and other sums, as provided in the Note, this Security Instrument or the Other Security Documents (hereinafter defined); (c) the Prepayment Consideration (defined in the Note), if any; (d) all other monies agreed or provided to be paid by Borrower in the Note, this Security Instrument or the Other Security Documents (hereinafter defined); (e) all sums advanced pursuant to this Security Instrument to protect and preserve the Property and the lien and the security interest created hereby; and (f) all sums advanced and costs and expenses incurred by Lender in connection with the Debt or any part thereof, any renewal. extension, or change of or substitution for the Debt or any part thereof, or the acquisition or perfection of the security therefor, whether made or incurred at the request of Borrower or Lender, and (g) any and all additional advances made by Lender to complete Improvements or to preserve or protect the Property, or for taxes, assessments or insurance premiums, or for the performance of any of Borrower's obligations hereunder or under the Other Security Documents (hereinafter defined). Section 2.2. OTHER OBLIGATIONS. This Security Instrument and the grants, assignments and transfers made pursuant to the terms hereof are also given for the purpose of securing the performance of the following (the "Other Obligations"): (a) all other obligations of Borrower contained herein; (b) each obligation of Borrower contained in the Note and in the Other Security Documents; and BK 1973PG2580 (c) each obligation of Borrower contained in any renewal, extension, amendment, modification, consolidation, change of, or substitution or replacement for, all or any part of the Note, this Security Instrument or the Other Security Documents. (d) any and all other indebtedness now or hereafter owing by Borrower to Lender. Section 2.3. DEBT AND OTHER OBLIGATIONS. Borrower's obligations for the payment of the Debt and the performance of the Other Obligations shall be referred to collectively as the "Obligations." Section 2.4. PAYMENTS. Unless payments arc made in the required amount in immediately available funds at the place where the Note is payable, remittances in payment of all or any part of the Debt shall not, regardless of any receipt or credit issued therefor, constitute payment until the required amount is actually received by Lender in funds immediately available at the place where the Note is payable (or any other place as Lender, in Lens sole discretion, may have established by delivery of written notice thereof to Borrower) and shall be made and accepted subject to the condition that any check or draft may be handled for collection in accordance with the practice of the collecting bank or banks; provided, however, Lender shall not be required to accept payment for any Obligation in cash. Acceptance by Lender of any payment in an amount less than the amount then due shall be deemed an acceptance on account only, and the failure to pay the entire amount then due shall be and continue to be an Event of Default. ARTICLE 3. - BORROWER COVENANTS Borrower covenants and agrees that: Section 3.1. PAYMENT OF DEBT AND PERFORMANCE OF OBLIGATIONS. Borrower will pay the Debt at the time and in the manner provided in the Note and in this Security Instrument; without relief from valuation or approiscmem laws, and shall promptly and fully perform all of the Obligations in this Security Agreement and the Other Security Documents (hereinafter defined). Section 3.2. INCORPORATION BY REFERENCE. All the covenants, conditions and agreements contained in (a) the Note and (b) all and any of the documents other than the Note or this Security Instrument now or hereafter executed by Borrower and/or others and by or in favor of Lender, which wholly or partially secure or guaranty payment of the Note or are otherwise executed and delivered in connection with the Loan (the "Other Security Documents") arc hereby made a part of this Security Instrument to the same extent and with the same force as if fully set forth herein. Section 3.3. INSURANCE. Borrower shall maintain with respect to the Property at all times, insurance against loss or damage by fire and other casualties and hazards by insurance written on an "all risks" basis including specifically windstorm and/or hail damage, in an amount not less than the replacement cost thereof, naming Lender its loss payee and additional insured; (ii) if the Property is required to be insured pursuant to the National Flood Reform Act of 1994, and the regulations promulgated there under, flood insurance is required in the amount equal to the lesser of the loan amount or the maximum available under the National Flood Insurance Program, but in no event should the amount of coverage be less than the vahm of the improved structure, naming Lender as additional insured and loss payee; and (iii) liability insurance providing coverage in such amount as Lender may require but in no event less than !500,000.00 naming Lender as an additional insured; and (iv) such other insurances as Lender may reasonably require from time to time. All casualty insurance policies shall contain an endorsement or agreement by the insurer in form satisfactory to Lender that any loss shall be payable in accordance with the terms of such policy notwithstanding any act of negligence of Borrower and the further agreement of the insurer waiving rights of subrogation against Lender, and rights of set-off, counterclaim or deductions against Borrower. All insurance policies shall be in form, provide coverages, be issued by companies and be in amounts satisfactory to Lender. At least 30 days prior to the expiration of such policy. Borrower shall furnish Lender with evidence satisfactory to Lender that such policy has been renewed or replaced. All such policies shall provide that the policy will not be canceled or materially amended without at least 30 days prior written notice to Lender. In the event Borrower fails to provide, maintain, keep in force and furnish to Lender the policies of insurance in such amounts, at such premium, for such risks and by such means as Lender chooses, then Lender may procure such insurance at Borrower's sole cost and expense, provided Lender shall have no responsibility to obtain any insurance, but if Lender does obtain insurance, Lender shall have no responsibility to assure that the insurance obtained shall be adequak or provide any protection to Borrower. 8K 1973PG258 I In the event of a foreclosure of the Security instrument or other transfer of title to the Property in extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning the Property, to the extent assignable, and all proceeds payable thereunder shall thereupon vest in Lender or the purchaser at such foreclosure or other transferee in the event of such other transfer of title. Section 3.4. PAYMENT OF TAXES. ETC. (a) Borrower shall promptly pay by the date same are initially payable all taxes. assessments, impact foes, levies, inspection and license fees, water rates, sewer rents and other governmental impositions, including, without limitation, vault and meter charges and license fees for the use of vaults, chutes and similar areas adjoining the Land, now or hereafter levied or assessed or imposed against the Property or any part thereof (the "Taxes") not paid from the Escrow Fund (hereinafter defined), all ground rents, maintenance charges and similar charges, now or hereafter levied or assessed or imposed against the Property or any pan thereof (the "Other Charges"), and all charges for utility services provided to the Property as same become due and payable. Borrower will deliver to Lender, receipts or other, evidence satisfactory to Lender that the Taxes, Other Charges and utility service charges have been so paid or arc not then delinquent. Borrower shall not suffer and shall promptly cause to be paid and discharged any lien or charge whatsoever, which may be or become a lien or charge against the Property, except to the extent sums sufficient to pay all Taxes and Other Charges have been deposited with Lender in accordance with the terms of this Security Instrument. (b) After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any of the Taxes, provided that (i) no Event of Default has occurred and is continuing under the Note, this Security Instrument or any of the Other Security Documents, (ii) Borrower is permitted to do so under the provisions of any other mortgage, deed of trust or deed to secure debt affecting the Property, (iii) such proceeding shall suspend the collection of the Taxes from Borrower and from the Property or Borrower shall have paid all of the Taxes under protest. (iv) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder, (v) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated canceled or lost and (vi) Borrower shall have deposited with Lender adequate reserves (determined by Lender in its sole discretion) for the payment of the Taxes, together with all interest and penalties thereon, unless Borrower has paid all of the Taxes under protest, and Borrower shall have furnished such other security as may be required in the proceeding, or as may be reasonably requested by Lender to insure the payment of any contested Taxes, together with all interest and penalics thereon, taking into consideration the amount in the Escrow Fund available for payment of Taxes. Section 3.5. ESCROW FUND. In addition to the initial deposits with respect to Taxes and Insurance Premiums made by Borrower to Lender on the date hereof to be held by Lender in escrow. Borrower shall pay to Lender on the first day of each calendar month (a) one-twelfth of an amount which would be sufficient to cover the payment of the Taxes payable, or estimated by Lender to be payable, during the next ensuing twelve (12) months and (b) onc-twelfth of an amount which would be sufficient to pay the Insurance Premiums due for the renewal of the coverage afforded by the Policies upon the expiration thereof (the amounts in (a) and (b) above shall be called the "Escrow Fund'). Borrower agrees to notify Lender immediately of any changes to the amounts, schedules and instructions for payment of any Taxes and Insurance Premiums of which it has or obtains knowledge and authorizes Lender or its agent to obtain the bills for Taxes directly from the appropriate taxing authority. The Escrow Fund and the payments of interest or principal or both, payable pursuant to the Note shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Provided there arc sufficient amounts in the Escrow Fund and no Event of Default exists, Lender shall be obligated to pay the Taxes and Insurance Premiums as they become due on their respective due dates on behalf of Borrower by applying the Escrow Fund to the payments of such Taxes and Insurance Premiums required to be made by Borrower. If the amount of the Escrow Fund shall exceed the amounts reasonably necessary for the payment of Taxes and Insurance Premiums, Lender shall, in its discretion, return any excess to Borrower or credit such excess against future payments to be made to the Escrow Fund. In allocating such excess, Lender may deal with the person shown on the records of Lender to be the owner of the Property. If the Escrow Fund is not sufficient to pay the items set forth in (a) and (b) above as and when they are due, Borrower shall promptly pay to Lender, upon demand, an amount which Lender shall reasonably estimate as sufficient to make up the deficiency. Unless otherwise required by applicable state or federal law, the Escrow Fund shall not constitute a trust fund and may be commingled with other monies held by Lender. Unless otherwise required by applicable state or federal law, no earnings or interest on the Escrow Fund shall be payable to Borrower. Upon payment in full of the Debt, and full performance of the Obligations, the funds remaining in the Escrow Fund, if 8K 1973PG2582 s , • sable bered by the lien of this security instrument within a reaso all )wrier of the Land ends or threatened out hall be paid to *4 record and performance. give Lender notice of the acu ics of roanyeeandodtngs. time S WI the date of such full Payment Burrower shall promptly n proceeding and shall deliver to ?^? ouch sc P in conrtectio" with (including, but or eminent domai received section 3.6. of any condenmauon eVondencc served Of through eminent dismiss or 11 continue tO Pay commencement blic authority Instrument and the Debt documents. so1OYs and c uasi'Ptt fcise of and takes s)• Borrower such withstanding any taking by IMY in lieu ublic or Of of or in anticipation meat n the Now and in this received itY find °Wtad by ied after recdved be limited to the to any us,isfu mI Wed foe Pay oft actually bu Lender shall W. at the rate Merest r tltexetor hall have beC not limited and in the manse PrOV cut discharge avrard'de in any the Debt at i & U until any award . P to he reduction or feCeive out of the n, t meet to to sudority but shall be entitled we all awards and payments reduced of colt aude ing under may apph any award Payment or shall not be ded rough ficienc f uction of tipe"s assigns and shall ca e the d on the award No Bormwer hereby td directly to Leader. ld. th interest pal provided . OW eeding. to be pa and payable. if the pro n is ht so whether or not a tha thoreo or rates PtD isent domain PtOC or not then duo ve the g Of or a Po lint • as nation or ern the Debt w o ft award or payment. L citder s? the award o Withwtt any ?ltga the red discbust e Pt by under to receive action or the reduction or ght, recovered rrif i denied. cr, at lmfrs option es name. damage or to the ll have been sou orius Lend wer s or undo otherwise. Pro, Note sha trues. Botiowcr aiith rosecuu, in 8? action regarding, or any judgmont on the the Dcbu in add in and p hereunder shill mean any of coade'^^jt10"' SifficieitI to pay wtr to comc' appear for purpose art having power claim to corineettoi by der to the fact for $Ort0 '"'t1eh term arousal authority, any P tilt .of ?mpromtse any attorney',"- condemnations Pew'--ing to any h.govcrn and to seo"de^u^au1ou nditi as close to that rel ovemmen,al authority. 9 of the Property aPplicatto n of t or other taking the condetn^atjO" to a coon and c"?oymoii taking by any g safe in lieu thet , . Netwithstanding any and rebuild the property affected by the c . sufficient for the use turns{er by Prtva maation or other - able and Otherwise such WrAe Wes, hot r pairdem^atron as is reasonable pradic with Debt' Burro such COB existing prior of er thereof as detu^'incd by c carrier and to fate written notice to the insuranc _ le roof o loss, to adjust 1Ve farmed to make sue arty action arising Section 3.1• wer shalt g to-{sate for Borro In the event Of loss, Borto and aPP°mts tender as attorney to appear in and P1° damage insurance- and to Of attorney is Linde (a) wer authors rty damage insurance, of property This er Lender rtby he . Kitts of PfOT and receive the Proceeds PO' uire and comprom'u any amclaims age in under us ranee p°I' ous ti1eo11ect in the eotketion of . PraeCds. sha to be used ion 3.1 L.ende{s expo u H over, nothing c(, holdtbe balance of such lpfleorsd from such property ion. (1) rial co^dof the e a oeeeds from such Pr abic• at Lender's opt ivalent of its ongi Quyi Debt. deduct fro therefore is sunder may, the Property to the u h , .ds coupled with an interest and action. and repairing balance of welt P• CC- to t payment shall do ro expo^re OF take any the eeds t° Restoration. to incur any for the cost ofR Eton ). or (2) apply 1 issuance Plot on similar ProPe"Oes. to reimburse B 111Cf Lender (the + Under determines to a restoration o casualty damage tlic Debt if all of the conditioo*PP o then by due. To the extent Under I.i'srelating to the te the payment ofor the passage of whether ce with Leridees tlien'CUrrent P° insurance proceeds iving of notice ines. in its in accordan isc its 00" to apply event which. with ft g 2) 1-ender 60C . that the udder shall not exerc cct and is co^tu dtuing; (2) s, . its discretion, (b) met. (1) no Event of Dcfault}(has occoa odor rating costs and o f ndi[ions are Even of e the Restoration; (3) u . a all opt to the Property; the co itute an tons relating cat h?rc following would constitute (4) o Restoration will be suffice^u to time. or Moth. ient funds tin 0 f the her? aad loan relded pay Of, ? earlier of (A) oft Y i It be suffic ndef's eq?. o Borrower to resets disctet jow that from there wthe Property after completion net cash row pond, deposits will be comr csu a lty, and 1 . upon required to be maintained expenses, deposits to the escrow of the loss'o caste insurance 1,ender deurmines• in its discretto^• Yea tb e after the lu date storation of the the Nose or (B) ore Y during after 'be Re all Of the terns daceo of the availability s provn 1.eiid" evtdeiiee rtormed Shall not, without Burrower Pursuant to Section 3.3. use to be tie war maintain. enforce and ca fellation or surrcixkr Borrower shall n of the Property. Bo"f0 Rent paid Porto 31. SE a which may Properry' fits (other ?uacelera tease or subleas • rtion of die i u the Section 3.8. c of all or any p° ment of Rents, issues or P the Rent of and conditions'iitt? en ter into any new Leas agree to Prepay the term, decre into account. in the Case d aff to nt of Le an rtion or the property. h Lose so as to shorie^ b action (taking Of the the cease of all or any P° ify any ided that sue Planned a1W.Mative use undshe er any Lease se °r sublease), j110d rertewil option. Pf0'1 of term. at the sigmugg 0 orechange the tt rtns of any of space or shortening Payment Of Rent. reduction . rent, sum-del a 1ermination. - -snnf,)rAl space) does not have a materially adverse effect on the value of the Property taken as a whole, and provided that such Lease, as amended, modified or waived, is otherwise in compliance with the requirements of this Security Instrument and any subordination agreement binding upon Lender with respect to such Lease. Any such purported new Lease. cancellation surrender, prepayment or modification made without the written consent of Lender shall be void as against Lender. Section 3.9. MAINTENANCE AND USE OF PROPERTY. Borrower shall cause the Property to be maintained in a good and safe condition and repair. The Improvements and the Personal Property shall not be removed demolished or materially altered (except for normal replacement of the Personal Property with replacement property of equal or greater value) without the consent of Lender. Borrower shall promptly repair, replace or rebuild any part of the Property which may be destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any condemnation or taking proceeding and shall complete and pay for any structure at any time in the process of construction or repair on the Land. Borrower shall not initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting, defining or changing the uses which may be trade of the Property or any part thereof. If under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause or permit the nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written consent of Lender, and Borrower shall take such other steps as Lender may require to establish the legality of such non-conforming use. Section 3.10. WASTE. Borrower shall not commit or suffer any waste of the Property or make any change in the use of the Property which will in any way materially increase the risk of fire or other hazard arising out of the operation of the Property, or take any action that might invalidate or give cause for cancellation of any Policy, or substantially increase the rotes thereunder, or do or permit to be done thereon anything that may in any way impair the value of the Property or the security of this Security Instrument. Borrower will not, without the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Land, regardless of the depth thereof or the method of mining or extraction thereof. Section 3.11. COMPLIANCE WITH LAWS. (a) Borrower shall promptly comply with all existing and future federal, state and local laws, orders, ordinances, governmental rules and regulations or court orders affecting the Property, and the use thereof, including any Environmental Law (hereinafter defined) ("Applicable Laws"). (b) Borrower shall from time to time, upon Lender's request„provide Lender with evidence reasonably satisfactory to Lender that the Property complies with all Applicable Laws or is exempt from compliance with Applicable Laws. (c) Notwithstanding any provisions set forth herein or in any document regarding Lender's approval of alterations of the Property. Borrower shall not alter the Property in any manner which would materially increase Borrowers responsibilities for compliance with Applicable Laws without the prior written approval of Lender. Lender's approval of the plans, specifications, or working drawings for alterations of the Property shall create no responsibility or liability on behalf of Lender for their completeness, design, sufficiency or their compliance with Applicable Laws. The foregoing shall apply to tenant improvements constructed by Borrower or by any of its tenants. Lender may condition any such approval upon receipt of a certificate of compliance with Applicable Laws from an independent architect, engineer, or other person acceptable to Lender. (d) Borrower shall give prompt notice to Lender of the receipt by Borrower of any notice related to a violation or threatened violation of any Applicable Laws and of the commencement or threatened commencement of any proceedings or investigations which relate to compliance with Applicable Laws. (e) After prior written notice to Lender. Borrower, at its own expense, may contest by appropriate legal proceedings, promptly initiated and conducted in good faith and with due diligence, the Applicable Laws affecting the Property, provided that (i) no Event of Default has occurred and is continuing under the Note, this Security Instrument or any of the Other Security Documents; (ii) Borrower is permitted to do so under the provisions of any other mortgage, deed of trust or deed to secure debt affecting the Property; (iii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower or the Properly is subject and shall not constitute a default thereunder; (iv) neither the Property, any part thereof or interest therein, any of the tenants or occupants thereof, Borrower, nor Lender shall be affected in any material adverse way as a result of such proceeding; (v) non-compliance with the Applicable Laws shall not impose civil or criminal liability on Borrower or Lender; and (vi) BK 1973PG2584 Borrower shall have furnished to Lender all other items reasonably requested by Lender. Section 3.12. BOOKS AND RECORDS (a) Borrower shall keep and maintain at all times at the Property or the management agent's offices, and upon Lenders request shall make available at the Property, complete and accurate books of account and records (including copies of supporting bills and invoices) adequate to reflect correctly the operation of the Property, and copies of all written contracts, Leases, and other instruments which affect the Property. Following a default by Borrower, the books, records, contracts. Leases and other instruments shall be subject to examination and inspection at any reasonable time by Lender. (b) Following a default by Borrower. Borrower shall furnish to Lender all of the following: (1) within ten 00) days following Lender's written request and thereafter annually within 120 days after the end of each fiscal year of Borrower, a statement of income and expenses for Borrower's operation of the Property for that fiscal year, a statement of changes in financial position of Borrower relating to the Property for that fiscal year and, when requested by Lender, a balance sheet showing all assets and liabilities of Borrower relating to the Property as of the end of that fiscal year; (2) within ten (10) days following Lender's written request and thereafter annually within 120 days after the end of each fiscal year of Borrower, and at any other time upon Lender's request, a rent schedule for the Property showing the name of each tenant, and for each tenant, the space occupied, the lease expiration date, the rent payable for the current month, the date through which rent has been paid, and any related information requested by Lender (3) within ten (10) days following Lender's written request and thereafter annually within 120 days after the end of each fiscal year of Borrower, and at any other time upon Lender's request, an accounting of all security deposits held pursuant to all Leases, including the name of the institution (if any) and the names and identification numbers of the accounts (if any) in which such security deposits are held and the name of the person to contact at such financial institution, along with any authority or release necessary for Lender to access information regarding such accounts; (4) within ten (10) days following Lenders written request and thereafter annually within 120 days after the end of each fiscal year of Borrower, and at any other time upon Lenders request, a statement that identifies all owners of any interest in Borrower and the interest held by each, if Borrower is a corporation, all officers and directors of Borrower, and if Borrower is a limited liability company, all managers who are not members; (5) within ten (10) days following Lenders written request and thereafter monthly a property management report for the Property, showing the number of inquiries mate and rental applications received from tenants or prospective tenants and deposits received from tenants and any other information requested by Leader; (6) within ten (10) days following Lender's written request and thereafter monthly a balance sheet, a statement of income and expenses for Borrower and a statement of changes in financial position of Borrower for Borrowers most recent fiscal year; and (7) within ten (10) days following Lender's written request and thereafter monthly a statement of income and expense for the Property for the prior month or quarter. (c) Each of the statements, schedules and reports required hereunder shall be certified to be complete and accurate by an individual having authority to bind Borrower, and shall be in such form and contain such detail as Lender may reasonably require; provided that Lender, in Lender's sole discretion, may require that any statements, schedules or reports be audited at Borrowers expense by independent certified public accountants acceptable to Lender. (d) If Borrower fails to provide in a timely manner the statements, schedules and reports required hereunder, Lender shall have the right to have Borrower's books and records audited, at Borrowers expense, by independent certified public accountants selected by Lender in order to obtain such statements, schedules and reports, and all related costs and expenses of Lender shall become immediately due and payable and shall become an additional pan of the Debt. (e) If an Event of Default has occurred and is continuing. Borrower shall deliver to Lender upon written demand all books and records relating to the Property or its operation. 8K 1973PG2585 M Borrower authorizes Lender to obtain a credit report on Borrower at any time. (g) Borrower, any Guarantor and any Indemnitor shall furnish Lender with such other additional financial or management information (including State and Federal tax returns) as may, from time to time, be reasonably required by Lender in form and substance satisfactory to Lender. (h) Borrower, any Guarantor and any Indemnitor shall furnish to Lender and its agents convenient facilities for the examination and audit of any such books and records. Section 3.13. PAYMENT FOR LABOR AND MATERIALS. Borrower will promptly pay when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with the Property and never permit to exist in respect of the Property or any pan thereof any lien or security interest, even though inferior to the liens and the security interests hereof, and in any event never permit to be created or exist in respect of the Property or any pan thereof any other or additional lien or security interest other than the liens or security interests hereof, except for the Permitted Exceptions (defined below). Section 3.14. PERFORMANCE OF OTHER AGREEMENTS. Borrower shall observe and perform each and every term to be observed or performed by Borrower pursuant to the terms of any agreement or recorded instrument affecting or pertaining to the Property, or given by Borrower to Lender for the purpose of further securing an Obligation and any amendments, modifications or changes thereto. Section 3.15. CHANGE OF NAME IDENTITY OR STRUCTURE. Borrower shall not change Borrower's norre, identity (including its trade name or names) or, if not an individual. Borrowers corporate, partnership or other structure or jurisdiction where the Borrower is organized without notifying the Lender of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in Borrower's structure or the jurisdiction where Borrower is organized, without first obtaining the prior written consent of the Lender. Section 3.16. EXISTENCE. Borrower will continuously maintain (a) its existence and shall not dissolve or permit its dissolution, (b) its rights to do business in the state where the Property is located and (c) its franchises and trade names. Section 3.17. MANAGEMENT. The Property shall be managed by either: (a) Borrower or an entity affiliated with Borrower and approved by Lender for so long as Borrower or said affiliated entity is managing the Property in a first class manner; or (b) a professional property management company approved by Lender. Management by an affiliated entity or a professional property management company shall be pursuant to a written agreement approved by Lender which shall be in all respects subordinate to this Security Instrument. Following a default by Borrower, no manager shall be removed or replaced or the terms of any management agreement modified or amended without the prior written consent of Lender. In the event (x) of default hereunder or under any management contract then in effect, which default is not cured within any applicable grace or cure period or (y) of the bankruptcy or insolvency of the manager. Lender shall have the right to immediately terminate. or to direct Borrower to immediately terminate, such management contract and to retain, or to direct Borrower to retain, a new management agent approved by Lender. All Rents generated by or derived from the Property shall first be utilized solely for current expenses directly attributable to the ownership and operation of the Property, including, without limitation, current expenses relating to Borrower's liabilities and obligations with respect to the Note, this Security Instrument and the Other Security Documents, and none of the Rents generated by or derived from the Property shall be diverted by Borrower and utilized for any other purpose unless all such current expenses attributable to the ownership and operation of the Property have been fully paid and satisfied. Section 3.18. PRINCIPAL PLACE OF BUSINESS. In the event that Borrower shall change the principal place of business or chief executive office, or, in the event Borrower is one or more natural persons. the location of its permanent residence, all as set forth in Subsection 4.18 below, Borrower shall immediately notify Lender in writing. Borrower shall execute and deliver such additional financing statements, security agreements and other instruments which may be necessary to effectively evidence or perfect Lenders security interest in the Property as a result of such change of principal place of business or residence. ARTICLE 4. - REPRESENTATIONS AND WARRANTIES Borrower represents and warrants to Lender that: Section 4.1. WARRANTY OF TITLE. Borrower has good and marketable title to the Property and has the right to mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey the same and that Borrower possesses an BK 1973PG2586 unencumbered fee simple absolute estate in the Land and the improvements and that it owns the all liens, encumbrances and charges whatsoever Property free and clear of the lien of this Security rity Instrument except for those exceptions shown in the title insurance policy insuring (the "Permitted Exceptions*). Borrower shall forever warrant, defend and preserve the title and the validity and priority of the lien of this Security Instrument and shall forever warrant and defend the same to Lender against the claims of all persons whomso the Property as Lender may reasonably requireever, and shall make such further assurances to perfect fee simple title to . Section 4.2. L2DA_ L STA_T_L1e e ? ?TUnotTv * Borrower (a) is duly organized, validl existing in standing under the laws of its state of organization (b) is duly qualified to transact bus nessa and ssin good standing in the state where the Property is located; and (c) has all necessary approvals, governmental and otherwise, and full power and authwity to own, operate and (case the Property. Borrower (and the undersigned representative of Borrower, if any) has full power, authority and legal right to execute this Security Instrument, and to mongagc, grant, bargain, sell, pledge, assign, warrant, transfer and convey the Property pursuant to the terms hereof and to keep and observe all of the terms of this Security Instrument on Borrower's pan to be performed. Section 4.3. VALIDITY OF M NTC, (a) The execution, delivery and performance of the Note, this Security Instrument and the Other Security Documents and the borrowing evidenced by the Note (i) am within the power and authority of Borrower, (ii) have been authorized by all requisite organizational action; (iii) have received all necessary approvals and consents, corporate, governmental or otherwise; (iv) will riot violate, conflict with, result in a breach of or constitute (with notice or lapse of time, or both) a default under any provision of taw, any order or judgment of any court or governmental authority, the articles of incorporation, by-laws, partnership or trust agreement, articles of organization, operating agreement, or other governing instrument of Borrower, or any indenture, agreement or other instrument to which Borrower is a party or by which it or any of its assets or the Property is or may be bound or affected; (v) will not result in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of its assets, except the lien and security interest created hereby; and (vi) will not require any authorization or license from, or any filing with, any governmental or other body (except for the recordation of this Security Instrument in appropriate land records in the State where the Property is located and except for Uniform Commercial Code filings relating to the security interest created hereby), and (b) the Note. this Security Instrument and the Other Security Documents constitute the Legal, valid and binding obligations of Borrower, enforceable in accordance with their terms. Section 4.4. LITIGATION. There is no action, suit or proceeding, judicial, administrative or otherwise (including any condemnation or similar proceeding), pending or, to the best of Borrower's knowledge, threatened or contemplated against Borrower, a Guarantor, if any, an Indemnitor, if any, or against or affecting the Property that has not been disclosed ?o Lender by Borrower in writing. Section 4.5. STATUS OF PROPERTY. (a) Borrower has obtained all necessary certificates, licenses and other approvals, governmental and otherwise, necessary for the operation of the Propeny and the conduct of its business and all required zoning, building code. land use, environmental and other similar permits or approvals, all of which are in full force and effect as of the date hereof and not subject to revocation, suspension, forfeiture or modification. (b) ne Property and the present with all applicable zoning ordinances, building codesnla d contemplated use and use laws, Environmental occupancy And other in full co mpliance (c) The Property is served by all utilities required for the current or contemplated use thereof. All utility service is provided by public utilities and the Property has accepted or is equipped to accept such utility service. (d) All public roads and streets necessary for service of and access to the Property for the current or contemplated use thereof have been completed, are serviceable and all-weather and arc physically and legally open for use by the public, and have been dedicated to and accepted for public maintenance by the applicable municipal or county authorities. (c) The Property is served by public water and sewer systems. (f) The Property is free from damage caused by fire or other casualty. (9) All costs and expenses of any and all labor, materials, supplies and equipment used in the construction of the Improvements have been paid in full. 8K t 973PG2587 (h) Borrower has paid in full for, and is the owner of, all furnishings, fixtures and equipment (other than tenants" property) used in connection with the operation of the Property, free and clear of any and all security interests, liens or encumbrances, except the lien and security interest created hereby. 0) All liquid and solid waste disposal, septic and sewer systems located on the Property are in a good and safe condition and repair and in compliance with all Applicable Laws. 0) No portion of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto as an area having special flood hazards pursuant to the Flood Insurance Acts or, if any portion of the Improvements is located within such area, Borrower has obtained and will maintain the insurance required pursuant to the terms hereof. (k) All the Improvements lie within the boundaries of the Land. Section 4.6. NO FOREIGN PERSON. Borrower is not a "foreign person" within the meaning of Section 1445(fx3) of the internal Revenue Code of 1986, as amended and the related Treasury Department regulations. Section 4.7. SEPARATE TAX LOT. The Property is assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of such lot or lots, and no other land or improvements is assessed and taxed together with the Property or any portion thereof. Section 4.8. LEASES. Except as disclosed in the rent roll for the Property delivered to and approved by Lender, (a) Borrower is the sole owner of the entire lessor's interest in the Leases: (b) the Leases are valid and enforceable and in full force and effect; (c) all of the Leases are arms-length agreements with bona fide, independent third parties, (d) no party under any Lease is in default; (e) all Rents due have been paid in full; (f) the terms of all alterations, modifications and amendments to the Leases are reflected in the certified occupancy statement delivered to and approved by Lender; (g) none of the Rents reserved in the Leases have been assigned or otherwise pledged or hypothecated: (h) none of the Rents have been collected for more than one (1) month in advance (except a security deposit shall not be deemed rent collected in advance); (i) the premises demised under the Leases have been completed in accordance with the Leases, and the tenants under the Leases have accepted the same and have taken possession of the same on a rent-paying basis: 0) there exist no offsets or defenses to the payment of any portion of the Rents and Borrower has no monetary obligation to any tenant under any Lease: (k) Borrower her received no notice from any tenant challenging the validity or enforceability of any lease; (1) there are no agreements with the tenants under the Leases other than expressly set forth in each Lease, (m) the Leases are valid and enforceable against Borrower and the tenants set forth therein; (n) no Lease contains an option to purchase, right of first refusal to purchase, right of first refusal to relet, or any other similar provision; (o) no person or entity has any possessory interest in, or right to occupy, the Property except under and pursuant to a Lease; (p) each Lease is subordinate to this Security Instrument, either pursuant to its terms or a recordable subordination agreement. (q) no Lease has the benefit of a non-disturbance agreement that would be considered unacceptable to prudent institutional lenders; (r) all security deposits relating to the Leases reflected on the certified rent roll delivered to Lender have been collected by Borrower, and (s) no brokerage commissions or finders fees are due and payable regarding any Lease. Section 4.9. FINANCIAL CONDITION. (a) (i) Borrower is solvent and no proceeding under Creditors Rights Laws (hereinafter defined) with respect to Borrower has been initiated, and (ii) Borrower has received reasonably equivalent value for the granting of this Security Instrument. (b) No petition in bankruptcy has been filed by or against Borrower, any Guarantor, any Indemnitor or any related entity, or any principal, general partner or member thereof, in the last seven (7) years, and neither Borrower, any Guarantor, any Indemnitor nor any related entity, or any principal, general partner or member thereof, in the last seven (7) years has ever made any assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws. Section 4.10. BUSINESS PURPOSES. The loan evidenced by the Note secured by the Security Instrument and the Other Security Documents (the "Loan") is solely for the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes. Section 4.11. TAXES. Borrower, any Guarantor and any Indemnitor have filed all federal, state, county, municipal, and city income, personal property and other tax returns required to have been filed by them and have paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by them. 8KI973PG2588' Neither Borrower, any Guarantor nor any Indemnitor knows of any basis for any additional assessment in respect of any such taxes and related liabilities for prior years. Section 4.12. MAILING ADDRESS. Borrowers mailing address, as set forth in the opening paragraph hereof or as changed in accordance with the provisions hereof, is true and correct. Section 4.13. NO CHANG IN FACTS OR CIRCUMSTANCES. All information in the application for the Loan submitted to Lender and in all financial statements, rent rolls, rcporls, certificates and other documents submitted in connection with the application or in satisfaction of the terms thereof, are accurate, complete and correct in all respects. There has been no adverse change in any condition, fact, circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading. Section 4.14. DIS OSURE. Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any representation or warranty made herein to be materially misleading. Section 4.15. THIRD PARTY REPRESENTATIONS, Each of the representations and the warranties made by each Guarantor and Indemnitor in any Other Security Document(s) is true and correct in all material respects. Section 4.16. ILLEGAL ACTIVITY. No portion of the Property has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity and to the best of Borrower's knowledge, there are no illegal activities or activities relating to controlled substances at the Property. Section 4.17. PERM] TED EXCEPTIONS. None of the Permitted Exceptions, individually or in the aggregate, materially interfere with the benefits of the security intended to be provided by the Security Instrument, the Note, and the Other Security Documents, materially and adversely affect the value of the Property, impair the use or the operation of the Property or impair Borrowers ability to pay its obligations in a timely manner. Section 4.18. PR]NCIPAL PLACE OF BUSINESS. Borrowers principal place of business is as set forth in the opening paragraph to this Security Instrument. Section 4.14. PROPERTY USE. The Property shall continue to be used in accordance with its present use, and for no other use without the prior written consent of Lender. ARTICLE S. - OBLIGATIONS AND RELIANCE Section 5.1. RELATIONSHIP OF BORROWER AND LENDER. The relationship between Borrower and Lender is solely that of debtor and creditor, and Lender has no fiduciary or other special relationship with Borrower, and no term or condition of any of the Note, this Security Instrument and the Other Security Documents shall be construed so as to deem the relationship between Borrower and Lender to be other than that of debtor and creditor. Section 5.2. NO RELIANCE The members, general partners, principals and (if Borrower is a trust) beneficial owners of Borrower arc experienced in the ownership and operation of properties similar to the Property, and Borrower and Lender are relying solely upon such expertise in connection with the ownership and operation of the Property. Borrower is not relying on Lenders expertise, business acumen or advice in connection with the Property. Section 5.3. NO LENDER OBLIGATIONS. Notwithstanding anything to the contrary contained herein, Lender is not undertaking the performance of (a) any obligations under the Lenses; or (b) any obligations with respect to such agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and other documents. By accepting or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Security Instrument, the Note or the Other Security Documents, including without limitation, any officer's certificate, balance sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy. Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval thereof shall not constitute any warranty or affirmation with respect thereto by Lender. Section 5.4. RELIANCE. Borrower recognizes and acknowledges that in accepting the Note, this Security Instrument and the Other Security Documents, Lender is expressly and primarily relying on the truth and accuracy of the warranties and representations set forth herein without any obligation to investigate the Property and notwithstanding any investigation of the Property by Leader; that such reliance existed on the part of Lender prior to the date hereof; that the warranties and representations are a material inducement to Lender in accepting the Note, this Security Instrument and the BK 1973PG2589 O the ther Security Docume absence of nts and that the warranties and re rrdcr would not be will. pre?nra set loth herein make the Loan and accept this SMUrity Irlstnrmcnr in Sectio ABTtCLE n 6.f. FU ; execution d any the deliveryof this RE RTFIER ASSU1l,tNCFS an ire( rit Pr Ma be operty and each Security Doculr e^RS "ent and IIWM . f M T - 80 secu "? 9bired by Instrument fe t ofnheuassurc ! for security nteret? ?ft• will cause thiaforthwith upon the Y interest hereof re law ' registered evid ene- Securit or recording fees, and -Pon, and the - inn in order to publish recorded i" such rng the lien this hereof "strunknt Ina Securit all ekPenses i crest ol1-ender i^ the P ice of and full -Pon the 4nLr And insv-mem wi lns trurrrent the Otherelent to the prep o" ropcrty. BBand y to p? in such places as the the fo out with respect to rite prop?y ? ?Y D-cumeals, anexecutton, acknowledwill PaY all taxes, Bect nct lien or rcgoi documents, any in Y note Hmem a H. regtitration hr'C10 se of or in connect, and a!I federal sir-ment of further mortgage su 0r mc?in8 of ' any ecumy on with the execution ?- county and . assurance , and any stru municiPal nY the Note, fas Or amendment of the in i 's. t with res and delivc modification orr? any Security duties I meats, exc the NPcrtY or any -^stru?tY J string' asscasments^ad orcgoindocumc ment of Section 6.2. 11 where Prohibited sotto do?r assu, any rance. mo d any supplenic?y Lender, doo execute A.CT bylaw tree, a ntal assignments, acknowlcd . B Y modification ass. the better notices of ge and deliver cpt Borrower will. at the c m assuring, r6"ments, transfers and all and every such fu ost of Borrower, ortgaged, convcyi^g ?ign;ng, Iranaf, assurances as nhcr seta, and without cx or hereafter 30 granted, bargaeted' sold. con erring, and Lender shall, from tideeds. conveyances !sense to carrying out the or which Borrow MYed. conf C°^rrminH unto Leader me to time re 101t8aBcs the or rcco intention on or facilitating may be rmed' Pledged, ass: aso"ahlY req will a rdiRg this Security Ins the pert Or May hereafter beCpH?d' warranted and Property and ightsut? for ccate and deli trulrtent, or for Pamarrca of the topp mo bound to transferred or into hKCbY 'ded without. Borrow, or w' vet a gRUUre a hori2es Lender followall a ioeebkss A eunly lastru ED to Leader or for statements the in the pr chapel mortgaHea rng 10 da . or federal law, g oI?H. register: °PCrty Borrow or other tnsnthrow? W the extent Ys notice to B RH exercising and er Ennis to Lend 'enrs• to evidence Lender may, llawfully duo r to execute in ells ?? perfecting any and all ri er an irrevocable or Perfect mom elf s-. one or Section 8hts and remedies of art cctively the security tote re C^arrcIng 6,3. T a PoevailableK to Let d hereunder with an interest for the Odd ? (a) R deducts the Debt fro If any law is enact irccUY. on the Debt m the Lender, value of the Pro Y. adopted or amended after the ltLcrrdm 6:merest in they for the Pulse of ati date of this Sccurit Pro Lender or is unenforceable advised b Y Counsel chose PCrtY. Borrower on or w n mice of or Provide the basis " by it that the will Pay the tax. with toys eax, cilher d' which not less than ^i^et for a defense Yment Off' by a and rther directly or y (90) daYs usury °rrowcr Penalties thereo for an (6) Borrower , to declare the Debt Immediately d? shall ha+tl Ihceu nlawful n or r?ayle to Y part of the Taxes or arwer will not claim or dem and Payable, ezereisaOf by axscssed and or be emited to Y State (c) against the Prope any credit or credits on shall require reve^ueIf at any fi re Property. or any part thereof. acco DOCUinenrs ore quire or other sea the United States of urn of rite Debt thCMon. if any mP03e any other tax or Charge to the Note, his See . c thereof -r any same. Borrow tY Instrument, or of any such Section 6.4, a wilt Pay for the same, any of the Other P with inn Security (a) neat and penalties the u? with a ttatemcn After Von, 4 duly ackkrow by Lender, B orro Of the No principal amount of file N IedBed and ccrtrPedwe within ten (10) days Statement, them the dale install o1e' (iii) rate of nc? yr ? or y (i) the ori the an ginahall l principal ?? or any ev are no def fients of i^ rote an rest event of default under aultc or events which and/or Principal °M' (tv) the terms Pal amount of the NrOPoaCd the Note With were lat legal and binding der obligatio^s hO the security !age of trine orsjhPg?i?vU thatoexa as and maturity dart and men ' cept 01 modified or if mrod F the Note and Gnsr SAC ybot h would utc been nstrupass ?' Zvi^8 Particulars of such m0d?attam valid , (viii) Dy 19 73PC2590 whether any offsets or defenses exist against the obligations secured hereby and, if any arc alleged to exist, a detailed description thereof, (ix) that all Leases are in full force and effect and (provided the Property is not a residential multifamily property) have not been modified (or if modified, setting forth all modifications), (x) the date to which the Rents thereunder have been paid pursuant to the Leases, (xi) whether or not, to the best knowledge of Borrower, any of the lessees under the Leases arc in default under the Leases, and, if any of the lessees are in default, setting forth the specific nature of all such defaults, (xii) the amount of security deposits held by Borrower under each Lease and that such amounts are consistent with the amounts required under each Lease, and (xiii) as to any other matters reasonably requested by Lender and reasonably related to the Leases, the obligations secured hereby, the Property or this Security Instrument. (b) Borrower shall use its best efforts to deliver to Lender, promptly upon request, duly executed estoppel certificates from any one or more lessees as required by Lender attesting to such facts regarding the Lease as Lender may require, including, but not limited to attestations that each Lease covered thereby is in full force and effect with no defaults thereunder on the part of any party, that none of the Rents have been paid more than one month in advance, except as security, and that the lessee claims no defense or offset against the full and timely performance of its obligations under the Lease. (c) Upon any transfer or proposed transfer of the Property at Lenders request, Borrower, any Guarantors and any lndemnitor(s) shall provide an estoppel certificate in such form, substance and detail as Lender may require. Section 6S. FLOOD INSURANCE. After Lender's request, Borrower shall deliver evidence satisfactory to Lender that no portion of the Improvements is situated in a federally designated "special flood hazard area" or, if it is, that Borrower has obtained insurance meeting the requirements hereof. Section 6.6. REPLACEMENT DOCUMENTS. Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any Other Security Document which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of such Note or Other Security Document, Borrower will issue, in lieu thereof, a replacement Note or Other Security Document, dated the date of such lost, stolen, destroyed or mutilated Note or Other Security Document in the same principal amount thereof and otherwise of like tenor. ARTICLE 7. - DUE ON SALVENCUMBRANCE Section 7.1. TRANSFER DEFINITIONS. For purposes of this Article, an "Affiliated Manager" shall mean any managing agent in which Borrower, any Guarantor or Indemnitor has, directly or indirectly, any legal, beneficial or economic interest; a "Restricted Party" shall mean Borrower, any Guarantor, any Indemnitor, or any Affiliated Manager or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of Borrower, any Guarantor, any Indemnitor, any Affiliated Manager or any non-member manager; and a "Sale" shall mean a voluntary or involuntary sale, conveyance, transfer or pledge of a legal or beneficial interest. Section 7.2. (a) Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein (collectively a "Transfer"), other than pursuant to Isaacs of space in the Improvements to tenants in accordance with the provisions hereof without the prior written consent of Lender. (b) A Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell the Property or any pan thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial pan of the Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in. Bortowcr"s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporations stock or the creation or issuance of new stock in one or a series of transactions, by which such corporations stock shall be vested in a party or parties who are not now shareholders; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership interests or the creation or issuance of new limited partnership interests in one or a series of transactions, by which such limited partnership interests shall be vested in a BK 19 7*3 PG 2 5 9 1' ply or parties who are not now limited partners: (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (Of if (or if no managing member, any member) or theS ale or P edg ??8tithe membership interest of a managing ng to such membersh p interest, Of tthe Sale br Pledge no managing member. any member) or any prof proceeds membership naging _ p mf new shall be vcstod n a party orrptanics who arc not of non-managing membership insc„ noo managr issuance which consolidation or the Sale or series of transactions. by er now non-managing tnambers; (vi) if a Restricted Party is a trust or nominee trust, any merg ati new Pledge of the legal or beneficial interest in wa Restricted Party hich su h beneficial the crel in etorts shall be vested inleagaponyl or whho are one ore series of transactions. who are not now legal or beneficial owners. or (vii) the removal or the resignation of the managing agent (including, without limitation, an Affiliated Manager) other than in accordance herewith. PEP`""TF? t N.S$$. Notwithstanding anything to the contrary contained herein, the cent low upon ope or by Section 7.3. and (b) the Sale or Pledge of stock or 1 miiteed following transfers shall not be or shareholder of of Restricted transfer the death of a member, Panae partnership or non-managing membership interests in a Restricted Party i ? ?a h• ?Mnhip interests orn t?wnomwena8'ng one or a series of aggregate, not more than Pony-nine percent (49%) of the stock, P not now hav result in the change of vot ng controlin the Restricted Party, and as a ing an membership interestthe s noasu such may ) transfertshall Restricted interest; rest; provided. condition to each such transfer, Lender shall receive not less than ten (10) days prior written notice of such propose transfer. scctGNME.NT/AccMMEWN. Notwithstanding anything to the contrary contained in this Section 7.4 sole Article 7, and in addition to the transfers permitted hereunder, Lee?: may in rndei's s sixty and abs ys olute iscrei ender not ion, provided or other transfer is continung; and (iii) all ie it sate, assignment, of the Property, notice of the proposed transfer hereunder, by Lender (in its sole and absolute discrettio) are sat stied, including but underwriting requirements deemed eemed necessary by not limited to the following: (a) Borrower shall pay any and all fees and out-of-pocket costs incurred in connection with the transfer of the Property (including, without limitation. Lender's counsel fees and disbursements and all recording fees, tide insurance premiums and mortgage and intangible taxes). (b) The proposed transferee (the "Transferee") or Transferee's principals must have which demonstrated shelf the in owning and operating properties similar in location, size and operation to the Properly, determined by Lender, in Lender's sole discretion; (c) TmilsIcree and and liquidity acceptable to Lender. ianLende''s principals drethall' as of the date of such transfer, have an aggregate net worth (d) Transferee shall assume all of the obligations of Borrower n in form under the Loan D curve is i toll respects including. without limitation, by entering into an assumption agreement Lenders sole discretion) and one or more Transferee's principals shall execute in favor of Lender a Guaranty and an Affidavit and Indemnity of Borrower and Guarantor Regarding Hazardous and Toxic Materials; constitute (e) No Event of Default or event which, with the giving of notice, passage of time or both, shali • I cos shall Lender's sole Event Default, shall otherwise occur as a Cresult d by Lender. r.which hand 7rf;r? and all be satisfactory to Lender (inn principals deliver (A) ) all organization documentation req discretion). and (B) all certificates, agreements and covenants required by Lender; and (f) Borrower shall deliver, at its sole cost and expense, an endorsement to the existing title policy insuring the Security instrument. as modified by the assumption agreement, as a valid first lien on the Property and naming the insure or liens other than hose containedlin date Trot as owner the Property, ll not be su b r? o any additional c aseptions of assumption agreement, , the Property the title policy issued on the date hereof. r approves 1 11 rop?dreronsfertto he Transferee then Borrower shall be released tfrom alll liability under fi saSecurity Instrument. the p the Note and the Other Loan Documents immediately upon the transfer of the Property to the Transferee. BK i 973PG2592 ARTICLES. - DEFAULT Section 8.1. EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall constitute an "Event of Default": (a) if any portion of the Debt is not paid on or prior to the date the same is due or if the entire Debt is not paid on or before the Maturity Date; (b) if Borrower fails to repay any sum paid or advanced by Lender under the terms of this Security instrument or any Other Loan Document; (c) if Borrower fails to repay any sum owed to Lender or its successor or assignee under the terms of any other Security Instrument, promissory note or other loan document in connection with any other loan; provided that such failure to repay shall constitute an Event of Default hereunder only if the person or entity to which payment is owed under such other Security Instrument, promissory note or other loan document is the holder of the Note; (d) if any of the Taxes or Other Charges is not paid when the same is due and payable except to the extent sums sufficient to pay such Taxes and Other Charges have been deposited with Lender in accordance with the terms of this Security Instrument; (c) if the Policies arc not kept in full force and effect, or if the Policies are not delivered to Lender as provided herein; M if Borrower violates or does not comply with any of the provisions of this Security Instrument or any Other Loan Document; (g) if any representation or warranty of Borrower, any Indemnitor or any person guaranteeing payment of the Debt or any portion thereof or performance by Borrower of any of the terms of this Security Instrument (a "Guarantor"), or any member, general partner, principal or beneficial owner of any of the foregoing, made herein or in any guaranty, or in any certificate, report, financial statement or other instrument or document furnished to Lender shall have been false or misleading in any material respect when made; (h) if (i) Borrower or any managing member or general partner of Borrower, or any Guarantor or Indemnitor shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts or debtors ("Creditors Rights Laws"), seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial pan of its assets, or the Borrower or any managing member or general partner of Borrower, or any Guarantor or Indemnitor shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against Borrower or any managing member or general partner of Borrower or any Guarantor or Indcmnitor any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be commenced against the Borrower or any managing member or general partner of Borrower, or any Guarantor or Indemnitor any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial pan of its assets which results in the entry of any order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (iv) the Borrower or any managing member or general partner of Borrower or any Guarantor or Indemnitor shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Borrower or any managing member or general partner of Borrower, or any Guarantor or Indemnitor shall generally not, or shall be unable to, or shall admit in writing its inability to, pay is debts as they become due; 0) if Borrower shall be in default beyond applicable notice and grace periods under any other mortgage, dad of trust, deed to secure debt or other security agreement covering any part of the Property whether it be superior or junior in lien to this Security Instrument: (j) if the Property becomes subject to any mechanic's, materialman's or other lien other than a lien BK 1973PG2593 for any Taxes not then due and payable and the lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days; (k) if any federal or state tax lien is filed against Borrower, any member or general partner of Borrower, any Guarantor, any Indemnitor or the Property and same is not discharged of record within thirty (30) days after same is filed; (1) if any default occurs under any guaranty or indemnity executed in connection herewith, and such default continues after the expiration of applicable grace periods, if any; or (m) if Borrower files of record, without the prior written consent of Lender which Lender may grant or withhold for any reason in its sole and absolute discretion, any notice limiting the maximum principal amount that may be secured hereunder; or (n) if Borrower sells, transfers (whether voluntary or by operation of law), pledges, hypothecates or further encumbers all or any pan of the Property or any interest therein or any interest in the Borrower (except as otherwise expressly provided herein), or additionally assigns all or any part of the rents, income or profits arising therefrom, in either case without the prior written consent of Lender, which may be withheld for any reason in Lcnders sole and absolute discretion; or (o) if Borrower or any Guarantor or Indemnitor is dissolved, merges into another entity, or otherwise terminates its existence (other than as specifically allowed pursuant to the terms hereof) or if the person(s) controlling such entity shall take any action authorizing or leading to the same; or (p) if for more than ten (10) days after notice from Lender, Borrower shall continue to be in default under any other term, covenant or condition of the Note, this Security Instrument or the Otter Security Documents in the case of any default which can be cured by the payment of a sum of money or for thirty (30) days after notice from Lender in the case of any other default, provided that if such default cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise of due diligence to cure such default, it being agreed that no such extension shall be for a period in excess of sixty (60) days. ARTICLE 9. - RIGHTS AND REMEDIES Section 9.1 REMEDIES. Upon the occurrence of any Event of Default, to the extent permitted by applicable law. Borrower agrees that Lender may take any action available at law, in equity, and as otherwise provided in this Security Instrument, without notice or demand, as it deems advisable to protect and enforce its rights against Borrower in and to the Property, including, but not limited to the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Lender may determine, in its sole discretion, without impairing or otherwise affecting the other rights and remedies of Lender: (a) declare the entire unpaid Debt to be immediately due and payable; (b) institute proceedings, judicial or otherwise, for the complete foreclosure of this Security Instrument under any applicable state or federal law in which case the Property or any interest therein may be sold for cash or upon credit in one or more parcels or in several interests or portions and in any order or manner; (c) with or without entry, to the extent permitted and pursuant to the procedures provided by applicable state or federal law, institute proceedings for the partial foreclosure of this Security Instrument for the portion of the Debt then due and payable, subject to the continuing lien and security interest of this Security Instrument for the balance of the Debt not then due, unimpaired and without loss of priority; (d) sell for cash or upon credit the Property or any part thereof and all estate, claim, demand, right, title and interest of Borrower therein and rights of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, in one or more parcels, at such time and place, upon such terms and after such notice thereof as may be required or permitted by law; (e) institute an action, suit or proceeding in equity for the specific performance of any covenant, BK 1973PG2594 condition or agreement contained herein, in the Note or in the Other Security Documents; (f) recover judgment on the Note either before, during or after any proceedings for the enforcement of this Security instrument or the Other Security Documents; apply for the appointment of a receiver. trustee, liquidator or conurvat o °'hc the solvencynof (g) for 'he adequacy of the security for the Debt and without en a Debt; without notice and without regard person, firm or other entity hable for the pay Borrower, any Guarantor. Indemmtor or of any (h) subject to any applicable state or federal law, the license granted either collect personally receive rents hereunder shall automatically be revoked and Leader may corer into or upo or by its agents, nominees of attorneys and dispossess Borrower and its agents and servants therefromform usubleasc) for trespass, damages or ochudtnSe he ?'le?) and amendments and exh bits,tsubleases (including possession of all rent rolls, leases ( 6 meats with the and licentenants,ces' money subtenants deposits pos he licensees other property and amendments and exhibits and rental and license agree Of the Properly or any part or parts thereof; tenants', subtenants' without limitation, any letter of credit) given to secure tenants', sutn`ontsu? t?rencnan fecbasee fee attn:ars; (including, ail tg; all lieu pertaining leases, subleases licenses. together (cation, licethe nses and permits, documents, books, records, accounts, surveys and any and all architects' plans and spec ownership. insumacc. maintenance, or service of property and to ender properly which relate to the management, leasing. operatic` • surrender po?ssion thereof and of the or construction upon the Property and Borrower agrees upon demand, and thereupon Lender may (i) use, operate. manage, control, insure, maintain, repair, rcsiorc an construction on the deaf with sit and every part of the Property and conduct the business thereat; (U) complete to rc wars, replacements i) make alterations property o such manner and form as emlu tie allarightsttand powers of Borrower with respect to the Property. and improvemen?F to or on the properly; () exercise and every port thereof; litation, the right to whether in the name of Borrower o And r dotherwim emand, sun for, collect and Ireceiv¢ all R is of the Property cancel, enforce or modify Leases, obtain and evict monthly in advance to Lender, or any receiver appointed to collect the Rena. the 6 occupation of such part of the Property as may be occupied by Borrower, (v) either require Borrower (A) to Pay to Lender or to such receiver and. in default thereof, Borrower fair and reasonable dental value ofor s lbe.usc as of the property to the payment of the or to vacate and surrender p» and (vi) apply the receipts from the Property may yb be evicted by summary t gs or otherwise; Debt, in such order , proportions as Lender shall deem appropriate in its sole discretion after deducting priority and propo raiions and all therefrom all expenses (including reasonable attorneys' fees) incurred in connection with the aforesaid ape in and mction with the amounts necessary to pay the Taxes, other CharBcs, Insurance Premiums and other expenses Property. as well a$ just and reasonable compensation for the services of Lender, its counsel, erg exercise any and all rights and remedies granted to a secured party upon default under the (i) lit of the foregoing: (i) the right to take possession of Uniform C Code. including. without t take the genera Y IC the personal the art thereof, and to take such other measures as !ender may teem necessary for the care, Personal a! Property ei or any P request Borrower at its expense to assemb protection and preservation of the Personal Properly, and (ii)a able to Lender. Any notice of sale, ?` h the P of sn of otrhe?rty fat and make action by Len ny Len le der to with Lender at in the convenient ?? properly sent to Borrower in accordance hereof at least cast five (5) days prior to such ch action, shall constitute commercially reasonable notice to Borrower*. he ted in the Fscrow Food and any other sums hcW in escrow or u) apply any sums then dePOS ?tyurancc Premiums; otherwise by Lender in accordance with the terms of this Security Instrument or any Other Security ranee Document to the low payment of the fat unpa items in any order in its sole discretion: (i) Taxes and Other Charges- balance (ii) le of the Note; and (iii) interest on the unpaid principal balance of the Note: (iv) amortization of the unpaid Pry Security pocumcntsInstru (v) all other sums payable pursuant to the Note thhiirs1e security the terms ofinentSuurnY instrument; , including. 10 this without limitation, advances made by Lender p premiums surrender the Policies maintained pursuant hereto, collect the unearned Insurance and apply such sums as a credit the Debt in such priority and proportion as Lender in its discretion shall deem proper, (k) and in connecdon therewith, Borrower hereby appoints Lauder as agent and attorney-in-fact (which is coupled with an interest and is therefore irrevocable) for Borrower to collect such unearned Insurance amideposit, s;together with interest (1) apply the undisbutsed balance of any net proceeds deficiency ale in its thereon, to the payment of the Debt in such order. priority and proportions as Leader shall deem to be appropriate or OK 1973PG25-95 (m) pursue such other remedies as Lender may have under applicable state or federal law. In the event of a sale, by foreclosure, to the extent permitted by applicable law, power of sale, or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien and security interest on the remaining portion of the Property unimpaired and without loss of priority. Notwithstanding the provisions of this Section to the contrary, if any Event of Default shall occur, and the Lender elects to declare the entire unpaid Debt to be automatically due and payable, such remedy may be pursued without any further notice, demand or other action by Lender. Section 9.2. APPLICATION OF PROCEEDS. The purchase money, proceeds and avails of any disposition of the Property, or any part thereof, or any other sums collected by Lender pursuant to the Note, this Security Instrument or the Other Security Documents, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender in its discretion shall deem proper and which arc in accordance with applicable law or as shall be required by a court of competent jurisdiction. Section 9.3. RIGHT TO CURE DEFAULTS. Upon the occurrence of any Event of Default or if Borrower fails to make any payment or to do any act as herein provided. Lender may. but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder, make or do the same in such manner and to such extent as Lender may deem necessary to protect the security hereof. Lender is authorized to enter upon the Property for such purposes. or appear in, defend, or bring any action or proceeding to protect its interest in the Property or to foreclose this Security Instrument or collect the Debt. The cost and expense of any cure hereunder (including reasonable attorneys' fees to the extent permitted by law), with interest at the Default Rate (defined in the Note), shall constitute a portion of the Debt and shall be due and payable to Lender upon demand. All costs and expenses incurred by Lender in remedying any Event of Default or failed payment or act or in appearing in, defending, or bringing any such action or proceeding shall bear interest at the Default Rate defined in the Note, for the period after notice from Lender that such cost or expense was incurred to the date of payment to Lender. All such costs and expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by this Security Instrument and the Other Security Documents and shall be immediately due and payable upon demand by Lender therefor. Section 9.4. ACTIONS AND PROCEEDINGS. At any time. Lender has the right to appear in and defend, compromise or settle any action or proceeding brought with respect to the Property, and after the occurrence and during the continuance of an Event of Default, to bring any action or proceeding, in the name and on behalf of Borrower, which Lender, in its discretion, decides should be brought to protect its interest in the Property. Section 9.5. REC-0YERY OF SUMS REQUIRED TO BE PAID. Lender shall have the right from time to time to take action to recover any sum or sums which constitute a part of the Debt as the same become due, without regard to whether or not the balance of the Debt shall be due, and without prejudice to the right of Lender thereafter to bring an action of foreclosure, or any other action, for a default or defaults by Borrower existing at the time such earlier action was commenced. Section 9.6. EXAMINATION OF BOOKS AND RECORDS. Lender, its agents, accountants and attorneys shall have the right upon prior written notice to Borrower (unless an Event of Default exists, in which case no notice shall be required), to examine and audit, during reasonable business hours, the records, books, management and other papers of Borrower and its affiliates or of any Guarantor or Indemnitor which pertain to their financial condition or the income, expenses and operation of the Property, at the Property or at any office regularly maintained by Borrower, its affiliates or any Guarantor or Indemnito where the books and records are located. Lender and its agents shall have the right upon notice to make copies and extracts from the foregoing records and other papers at no cost to Lender. Section 9.7. OTHER RIGHTS. ETC. (a) The failure of Lender to insist upon strict performance of any term hereof shall not be deemed to be a waiver of any term of this Security Instrument, Borrower shall not be relieved of Borrowers obligations hereunder by reason of (i) the failure of Lender to comply with any request of Borrower, any Guarantor or any Indemnitor to take any action to foreclose this Security Instrument or otherwise enforce any of the provisions hereof or of the Note or the Other Security Documents, (ii) the release, regardless of consideration, of the whole or any part of the Property, or of any person liable for the Debt or any portion thereof, or (iii) any agreement or stipulation by Lender extending the time of payment, changing the rate of interest, or otherwise modifying or supplementing the terms of the Note, this Security instrument or the Other Security Documents. BKI973PG2596 (b) It is agreed that the risk of loss or damage to the Property is on Borrower, and Lender shall have no liability whatsoever for decline in value of the Property, for failure to maintain the Policies, or for failure to determine whether insurance in force is adequate as to the amount of risks insured. Possession by Lender shall not be deemed an election of judicial relief, if any such possession is requested or obtained, with respect to any Property or collateral not in Lender's possession. (c) Lender may resort for the payment of the Debt to any other security held by or guaranties given to Lender in such order and manner as Lender, in its discretion, may elect. Lender may take action to recover the Debt, or any portion thereof, or to enforce any covenant hereof without prejudice to the right of Lender thereafter to foreclose this Security Instrument. The rights of Lender under this Security Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No as of Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision. Lender shall not be limited exclusively to the rights and remedies herein stated but shall be entitled to every right and remedy now or hereafter afforded at law or in equity. Section 9.9. RIGHT TO RELEASE ANY PORTION OF THE PROPERTY. Lender may release any portion of the Property for such consideration as Lender may require without, as to the remainder of the Property, in any way impairing or affecting the lien or priority of this Security Instrument, or improving the position of any subordinate licnholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by Lender for such release, and may accept by assignment, pledge or otherwise any other property in place thereof as Lender may require without being accountable for so doing to any other lienholder. This Security Instrument shall continue as a lien and security interest in the remaining portion of the Property. Section 9.9. VIOLATION OF LAWS. If the Property is not in compliance with Applicable Laws, Lender may impose additional requirements upon Borrower in connection herewith including, without limitation, monetary reserves or financial equivalents. Section 9.10. RIGHT OF ENTRY. Lender and its agents shall have the right to enter and inspect the Property at all reasonable times. Section 9.11. SUBROGATION. If any or all of the proceeds of the Note have been used to extinguish, extend or renew any indebtedness heretofore existing against the Property, then, to the extent of the funds so used, Lender shall be subrogated to all of the rights, claims, liens, titles, and interests existing against the Property heretofore held by, or in favor of, the holder of such indebtedness and such former rights, claims, liens, titles, and interests, if any, arc not waived but rather are continued in full force and effect in favor of Lender and are merged with the lien and security interest created herein as cumulative security for the repayment of the Debt, the performance and discharge of Borrower's obligations hereunder, under the Note and the Other Security Documents and the performance and discharge of the Other Obligations. ARTICLE 10. - ENVIRONMENTAL HAZARDS Section 10.1. ENVIRONMENTAL DEFINITIONS. For the purpose of this Section, "Environmental Law" means any present and future federal, state and local laws, statutes, orditutncts, rules, regulations, standards, policies and other government directives or requirements, as well as common law, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conv vation and Recovery Act, that apply to Borrower or the Property and relate to Hazardous Materials. "Environmental Liens" means all Liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of Borrower or any other person or entity. "Environmental Report" means the written reports resulting from the environmental site assessments of the Property delivered to Lender. "Hazardous Materials" shall mean petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil; explosives, flammable materials; radioactive materials; polychlorinated biphenyls ("PCBs") and compounds containing them; ]cad and lead-based paint. asbestos or asbestos-containing materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Property is prohibited by any federal, state or local authority; any substance that requires special handling; and any other material or substance now or in the future defined as a "hazardous substance," "hazardous material," "hazardous waste," "toxic substance' "toxic pollutant," "contaminant." or "pollutant" within the meaning of any Environmental Law. "Release" of any Hazardous Materials includes but is not limited to any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Materials. 8K 1973PG2597 Borrower rmpreserts A"d ?>J Lo" "Y, except REP sunnt thereto (If such pets 10.2. Hazardous Materials or and storage is issued u•oPurNluu.er the ?t (B) fully Section with pcnnits ?p operate the property arrants that: (a) dire are with Env''ronme"Mr Laws (b) there Aril no Past. wnould those that are both (i) in comP"thc e (A) in amounts not inoxa sEnvit and w ronmental eport; which and and ( ursuant t Environm cxc*taas described in the arc enquired). if any' a d by Lender in writing P the. Pb copertY . property except a5 to and approve ease of Hazardous Masons under laOr . on from any to the Laws, or With disclosed fined below) Rel thority in. dogs Materalmigrating ntal l.a threalcned (de rrMental au Release of Hagar liance with Environmemediation by gave,,, is no threatLot s no past a P?"t non ? described . the Envimnmer+tnl Report(e) there tt (d) from any person or require re on from the Environrrycntal Report: (e) oto, Roo ; property except . communicati described in the Envrronma nneation with the Property l notice or whet or Materials in, nf under in co not received. or ore dots ration relating to arsuant there to Haar s I permits issued P of. n figs any relating and all nform does not krww a gpvernmentsl enivtd to Lender. in writing. any nr Bortoweis a files from and Borrower but not limited to and fully Pro Borrower or contained the cotitY (including truthfully known to Bortpriests ein. r on, Propl and under or migrating to (f) Bartow or from the property sous Mat ental conditions tn. on, undo y rcPorts rotating tt ens a ices that long As cnviron,r but not limited to an condition of the property- 6 n All tl uses and records. including crtvironrnental co nts and ( CAL rtor to the Borrower cov Property; ) with all Property andl operation of the n compliance E otherwise controls the " Pof entity. shall be us Ma?ariats in, on. Seaton 10.3. Is in posse-"In of. or Releases of Hazartb that arc manages• b Borrower or any ,her Pe?O except those Borrower ovens Property. whether by to: (b) them shall be no the Property, on or o its issue Poll' Hazardous Materials in on, or u"? seam thereto. of and to the extant operations slat Laws and per here 5 hail disclosed and 110 with permits issued P (g) fully prvironme there shall be (e) the Prof Property: (e) ws and all Environmental Liens'. Of from the hence with all Envrro"r+1E"ui1 of that nccessarY to rtY oPefrec and c ear Y of pursuant to this section. under both (I) in come n to amounts not in axccss IL P m1C in all activities per available for owcr shall the props required, std () ( and expeditiously COO?aking knowledgeable persats t or other pproved by Leader to writing;aad ?pense, fully anon and rest of a all Telcvam inform environmental site assessment written request Borrower shall, at its sole cost viding rise, perform any rcttisonaDle but not limited to pTO cost and pxPe rs,ant to any real Laws, grin le with all Er'vironme ?Cu1Cd) including shall. at its so pan with the pr°puflY' m "once interviews: (f) Bofrow i tttons in co'nnee y is not in full Indemnified Parties (ltere)nattcr comply f that the o,, and under war shall , at its sole cost and cAPIfil ito invesytgalionnot?er s"ro"O sable sand belieresults thte e f: Hazardous Materi (t) of any aterials in, on. Under, re wiLender the repo is and other other results th r*O eReduate Le mediation war shat! not allow any tenant or rely on such reports and to (t) MOO" Y w: (h) sha Shall be entitled to Borrower in writing written Let 'der with any Environmwyr*i U vier shalt immediately notify with all less ty- orabie wri and requests (ii) of comply tat Law; and (r) Boren of Hazardtnts Materials in. on. tot under or from the ope Environs crease or thtea!etied Releases meatiest Laws related in any !any see rty ?o viorate any any Env. mental of environmental rose other user of the Props an omen non co with . (ID) Any or munication of which Bortoo Hazardous attar it has become awaro of (A) rty; lB) any waWILY rds the Props viconmental Lien: l) it any bad faith waste from or m( ring Y in t o any oral t? goverrnme"ntal a actual or paten written a Property: an l0 ]3 shall constitute whatsoc property; limited o lion conditions relating to d, ver (ittclu f? but noti scions pursuant to this section aware from any SO fee vier to Pe its ob g Leader, including Materials. Any failure of Bono 1'ro" or crtity, desigtratad by at ct to the Property' r and any other th peany o mental consultant, and a"Y ewer with roses . Lcnde won to enter upon the property but of a govemmentrd anti n ht, not the oblie y ayyd its use. including b" but tion' but of which shall be Section 10.4• sanative . . n shall have the n& scope not limited to any ropre nt jurisd' of the cnviromnental condition of the Pert materials. D any court of wrnpete smet?t or audit It Borrowers exile" Weer, air. of building appointed by to assess any and all asp--,' water or artier and any such Per'* all reasonable times any e?tvironmell tat asses milks of sal. ground rovtdc not limited to access to Lender co"def, s rig disl . ion) aid taking with and P der s sole Borrower shall cooPeraM by the determined in o?thcr invraive testing. mended and conducting by , if recom bl'tsh and oga& or artily designated Y Propy substance reasonably stet asscssMe. or audit of trop EoBm and shall es m shall 10.5. other cnvrronme with respect to the a?ttYble to Lender, which pr of or an, section al RepoRtions arid mat"M"a"ce program nobly aceWta future be detect"ices ed at a AS to Environmer" roar consultant reaso now or in the Vim ) comply with as pared g by an onvi? .ad based ding Poll that may may aamend periodic h Pe osokroti? PC° acceptable to Lender, Pro material sentence, Lender meat to suc sc, err asbestos rafity of the PICM Lender may specify. ( an c at 80rro mature. ( ) such mature. ( ) address W i?ho?tt limiting ithe Belie or other intervals as laws Propenyi, ender form. suDsta"cc and at to address changing circumstances, L Moisten arKC program - aK t 973KZ598 s Agents upplemental excer, amination of the Properly and maintenance nonce and Program assess y by c?mm? specified condition by of the Pro to the pro Lender, (d) access m envi o Pent by Lender, its reports provided by any such consultams a.nd the (e) variation of the Potions a d dy and Borrower's compliance with any maintenance program in response to rho Section I ARTICLE 11, . INDEMNIFICATION I.1. defend, indemnify, release and hod N T .Borrower (defined below) imposed upon ten the Indemnified shall, at its sole cost and ex out of or in any way relating to nr by or a ? a Panics (defined below) from and against an aand?' Praect, or dame any one or mote of the followin any Indemnified Ponies and direct! or indirectly Eosins Prproperty operty or adjacent in, on or about the 8 (a) any y acc acciden ent in•u directly redly arising Adjacent P to PrOPeny or adjacent parking areas, streets or Properly or any Pan thereof or n to or death of side persons or loss of or nY P thereof or on the adjoini ay$; (b)4ny use. nowt Adjoining aidewaiks, curbs. Performance of any labor or Se nB sidewalks , curbs, adjacent 3e o? condition in, on or abou he Rant thereof; d) n ices Or the furnishin 1 Pf Darn' or adjacent t ?p y who any failure of Petty to be in of y materials or o ?s or ways; (c) demands the d ther Property n?? the p tsoever which may be pan to ga Perfta'm or dischar a any asserted a Oder by reasWith Any on of Applicable Laws; (c) any and all c!? mar nd last i Lc any term, covenant condition re of terms co- venants, de a y alleged obligations or un he 5 contained in any Lease, dertalings on its or brokerage fee to anyone whine may beton or warranty agreement secured b P yabk tortrtxtron contained he fund (0 Borrower's breach of by this Security Instnrmcnt. Any amounts funding othe f theY+nt Payment of any commission, charge become i, tint. ateiy due and payable and shall Payable to Lender by reason of the Iapplication Oart cvidnced by the Note and Strict liabilities) until paid The term "Losses" shabear merest at the Default Rate from the dote bs ser dames Section Strict liabilities), actions, ll mean an shall Judgments. awa Proceedings, obligations, debtsdamages all claims, suits, liabilities (including, without , ids, amounts paid in setikment of whateve and ' Ihsaca, ex other costs of defense), costs, expenses, term "Indemnified Panics" sea) kind or nature i ' Gael, Penalties, charges. hmiaaton (c) any service, or ( acluding but no, limited fees, (defined below , Prior servitor of the Loan, (d) any investor (defined Winder. (b) n attorneys, fees and (e) any trustees, cost Y prior owner or to Tics. holder of the Note Loan for the benefit Orally custodians °r other fiduciaries who hold or who ny Prior Investor in other , Creditors Rights Lawslnvestw or odkr third party, (f) any have held a full or any im lcepatioos servants, representatives, cortp eC?ng' (8) any otrcers. ditecrs fiver or other fiduciary appointee rural jnterest in the heirs, k tractors, subcontractors. affiliales sh dens, partners, members, oreclosure or successorss b representatives successors and or subsidiari diaries of an ?• employees. agents, by merger, chon or assigns of any ad all of the Y and all of the foregoing, and (h) the the business), in at nsolidati l casts whether durin8 acquisition of all or a substantial foregoing (including, without limitation, an Portion of the Indemnified P Part of or followin erica' any Section 11.2. term of the Loan or 8 a foreclosure of the Loan. ?? ad shalt. at its sole cost and expense defe d, idemnif against any and all Lou, im n lease and hold harm Posed upon or incurred by y, re indirectly arising out of or in an the tdemnifed Panics Berm and lastrumem, the Note or any of the other See uritng touanments. or asserted against any Indemnified Parties and directly or Y Doc Y tax or fee on the making and/or recording of thin Security Section t1.3. written request by Any T , Party, in the name y Indemnified Y. Bomowcr shall defend such inde mnified pars Notwithstanding of' hcndemnifed Party) by auorneya and other pro femflif i h a y (if requested bn Indemnified ing the foregoing, any Indemnified parties may, in their by Y ndemnifed other Professionals to defend sole disci moved by the Indemnified P resolution of any claim or °r assist them, end, at the option of ! °n• engage their own attorneys hand Parties, mim P Odin&, Upon demad, B ndemnifed Parties, their attorneys shall con boron, the ,,, I Ntit] Parties for the Payment hrrowcr shale PaY or, in the sole discretion of the Indcmnified environmental consul,,,,, taaboratories, surve of reasonable fees ad disbursements of attorneys, any Indemnified Parties May -.cap yors, title searches and olhcr c i as a result of any Losses. Professionals in connection therewith, hcrc Section 1l.4. h associated with n V '"-compliance with Environmental Laws, or with the between Borro within, contiguous to or otherwise affecting the Pt w and Lender, all risk of loss bear 411 risks and costs associated with n Y, shall lie solely mN ce or anY Hazardous Material at, upon , or liability therefrom, including all costs of removal of Hazardous loss in value attribuB ab?e to HACc?ingly, Borrower shal ;hl by law. Borrower all indemnify, defend Materials or a ebous Materials), damage claims, costs and expenses (including and hold Lender harmless from and Against alluto s?jiabrrcltdtiea. damages compliance with Env' 8 reasonable costs of defense Y Lender of an reironmental Laws, or the existence of Hazardous ) arrsmg out of or associated, Y Rresentedon, warranty or covenant contained in Article j0 h aterials in, on, r" any way, with the rroof, whethe or about the Property, or a breach based in contract, tort, implied or 89 1973PG2599 express warranty, strict liability, criminal or civil statute or common law, including those arising from the joint, concurrent, or comparative negligence of Lender; however, Borrower shall not be liable under such indemnification to the extent such loss, liability, damage, claim, cost or expense results solely from Lender's gross negligence or willful misconduct. Borrowers obligations hereunder shall arise upon the discovery of the presence of any Hazardous Material, whether or not any governmental authority has taken or threatened any action in connection with the presence of any Hazardous Material, and whether or not the existence of any such Hazardous Material or potential liability on account thereof is disclosed in any site assessment and shall continue notwithstanding the repayment of the Note or any transfer or sale of any right, title and interest in the Property (by foreclosure, deed in lieu of foreclosure or otherwise). Of even date herewith, Borrower and other persons or entities (collectively, Borrower and such other panics, the "Indemnitors") may as circumstances require execute and deliver a certain environmental indemnity agreement in favor of the Lender incorporating the environmental indemnities set forth herein as well as additional provisions and requirements with respect to environmental matters (the "Environmental Indemnity"). In the event an Environmental Indemnity is executed, it shall be included in the definition of "Other Security Documents". ARTICLE IL - WAIVERS Section 12.1. WAIVER OF COUNTERCLAIM. Borrower hereby waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against it by Lender arising out of or in any way connected with this Security Instrument, the Note, any of the Other Security Documents, or the Obligations. Section 12.2. MARSHALLING AND OTHER MATTERS. Borrower hereby waives, to the extent permitted by law, the benefit of all appraisement, valuation, stay, extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale hereunder of the Property or any part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights of redemption from sale under any order or decree of foreclosure of this Security Instrument on behalf of Borrower, and on behalf of each and every person acquiring any interest in or title to the Property subsequent to the date of this Security Instrument and on behalf of all persons to the extent permitted by applicable state or federal law. Section 12.3. WAIVER OF NOTICE. Borrower shall not be entitled to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this Security Instrument specifically and expressly provides for the giving of notice by Lender to Borrower and (b) with respect to matters for which Lender is required by applicable state or federal law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Security Instrument does not specifically and expressly provide for the giving of notice by Lender to Borrower. Section 12.4. WAIVER OF STATUTE OF LIMITATIONS. Borrower hereby expressly waives and releases to the fullest extent permitted by law, the pleading of any statute of limitations as a defense to payment of the Debt or performance of its Other Obligations. Section 12.5. SOLE DISCRETION OF LENDER. Wherever pursuant to this Security Instrument (a) Lender exercises any right given to it to approve or disapprove. (b) any arrangement or term is to be satisfactory to Lender, or (c) any other decision or determination is to be made by Lender, the decision to approve or disapprove all decisions that arrangements or terms are satisfactory or not satisfactory, and all other decisions and determinations made by Lender, shall be in the sole discretion of Lender, except as may be otherwise expressly and specifically provided herein. Section 12.6. WAIVER OF FORECLOSURE DEFENSE Borrower hereby waives any defense Borrower might assert or have by reason of Lenders failure to make any tenant or lessee of the Property a party defendant in any foreclosure proceeding or action instituted by Lender. Section 12.7 WAIVER REGARDING FEES. The Borrower hereby expressly waives and releases, to the fullest extent it may lawfully do so, all benefit of any present or future moratorium law, the merger doctrine, and other present or future law, regulation or judicial decision that may be necessary for Lender to protect and enforce its claims against Borrower for or relating to the collection of the full amount of attorneys' fees, costs, insurance premiums, taxes and other similar advances and claims, whether arising or asserted prior to or subsequent to the entry of judgment by Lender against Borrower. ARTICLE 13. - NOTICES BK 1973PG2600 Section 13.1. NOTICES. All notices or other written communications hereunder shall be deemed to have been properly given (a) upon delivery, if delivered in person with receipt acknowledged by the recipient thereof, (b) one (1) Business Day (defined below) after having been deposited for overnight delivery with any reputable overnight courier service, or (c) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed to Borrower or Lender, as the case may be, at the addresses set forth on the first page of this Security Instrument or addressed as such party may from time to time designate by written notice to the other parties. Either party by notice to the other may designate additional or different addresses for subsequent notices or communications. For purposes of this Subsection, "Business Day" shall mean a day on which commercial banks are not authorized or required by law to close in New York, New York. ARTICLE 14. - CHOICE OF LAW Section 14.1. CHOICE OF LAW. This Security Instrument and any determination of deficiency judgments shall be governed, construed, applied and enforced in accordance with the laws of the state in which the Property is located and applicable federal law. Section 14.2. PROVISIONS SUBJECT TO LAW. All rights, powers and remedies provided in this Security Instrument may be exercised only to the extent that the exercise thereof does not violate any applicable state or federal law and are intended to be limited to the extent necessary so that they will not render this Security Instrument invalid, unenforceable or not entitled to be recorded. registered or filed under any applicable state or federal law. ARTICLE 15. - SECONDARY MARKET Section 15.1. TRANSFER _OF_LOAN. Lender may, at any time, sell, transfer or assign the Note, this Security Instrument and the Other Security Documents, and any or all servicing rights with respect thereto, or grant participations therein (the "Participations") or issue mortgage passthrough certificates or other securities evidencing a beneficial interest in a rated or unmted public offering or private placement (the "Securities"). Leader may forward to each purchaser, transferee, assignee, servicer, participant, or investor in such Participations or Securities (collectively, the "Investor") or any Rating Agency rating such Securities, each prospective Investor, and any organization maintaining databases on the underwriting and performance of commercial mortgage loans, all documents and information which lender now has or may hereafter acquire relating to the Debt and to Borrower, any Guarantor, any Indcmnitor(s) and the Property, whether furnished by Borrower, any Guarantor, any Indemnitor(s) or otherwise, as Lender determines necessary or desirable. Borrower irrevocably waives any and all rights it may have under applicable state or federal law to prohibit such disclosure, including but not limited to any right of privacy. Section 15.2. COOPERATION. Borrower. any Guarantor and any Indemnitor agree to cooperate with Lender in connection with any transfer made pursuant to this Section, including, without limitation, the delivery of an estoppel certificate required pursuant to the terms hereof and such other documents as may be reasonably requested by Lender. Borrower shall also furnish and Borrower, any Guarantor and any Indemnitor consent to Lender furnishing to such Investors or such prospective Investors or such Rating Agency any and all information concerning the Property, the Leases, the financial condition of Borrower, any Guarantor and any Indemnitor as may be requested by Lender, any Investor or any prospective Investor or any Rating Agency in connection with any sale, transfer or Participations or Securities. ARTICLE 16. - COSTS Section 16.1. PERFORMANCE AT BORROWER'S EXPENSE. Borrower acknowledges and confirms that Lender shall impose certain administrative processing and/or commitment fees in connection with (a) the extension, renewal, modification, amendment and termination of the Loan, (b) the release or substitution of collateral therefor, (c) obtaining certain consents, waivers and approvals with respect to the Propeny, or (d) she review of any Lease or proposed Lease or the preparation or review of any subordination, non-disturbance agreement (the occurrence of any of the above shall be called an "Event"). Borrower further acknowledges and confirms that it shall be responsible for the payment of all costs of reappraisal of the Property or any pan thereof, whether required by law, regulation, Lender or any OK 1973PG260 I governmental or quasi-governmental authority. Borrower hereby acknowledges and agrees to pay, immediately, with or without demand. all such feu (as the same may be increased or decreased from time to time), and any additional fees of a similar type or nature which may be imposed by Lender from time to time, upon the occurrence of any Event or otherwise. Wherever it is provided for herein that Borrower pay any costs and expenses, such costs and expenses shall include, but not be limited to, all reasonable counsel fees of Lender. Section 16.2. COUNSEL FEES FOR ENFORCEMENT. (a) Borrower shall pay all reasonable counsel fees incurred by Lender in connection with (i) the preparation of the Note, this Security Instrument and the Other Security Documents; and (ii) the items set forth in this Article, and (b) Borrower shall pay to Lender on demand any and all expenses, including legal feu incurred or paid by Lender in protecting its interest in the Property or in collecting any amount payable under the Note, this Security Instrument or the Other Security Documents, or in enforcing its rights hereunder with respect to the Property, whether or not any legal proceeding is commenced hereunder or thereunder, together with interest thereon at the Default Rate from the date paid or incurred by Lender until such expenses arc paid by Borrower. ARTICLE 17. - DEFINITIONS Section 17.1. GENERAL DEFINITIONS. Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, words used in this Security Instrument may be used interchangeably in singular or plural form and the word "Borrower" shall mean "each Borrower and any subsequent owner or owners of the Property or any part thereof or any interest therein," the word "Lender" shall mean "Lender and any subsequent holder of the Note," the word "Note" shall mean "the Note and any other evidence of indebtedness secured by this Security Instrument," the word "person" shall include an individual, corporation, limited liability company, partnership, trust. unincorporated association, government, governmental authority, and any other entity, the word "Property" shall include any portion of the Property and any interest therein, and the phrases "counsel fees" shall include any and all attorneys', paralegal and law clerk fees and disbursements, including, but not limited to feu and disbursements at the prc-trial, trial and appellate levels incurred or paid by Lender in protecting its interest in the Property, the Leases and the Rents and enforcing its rights hereunder, whether with respect to retained firms, the reimbursement for the expenses of in-house staff or otherwise. Section 17.2. HEADINGS. ETC. The headings and captions of various Articles and Sections of this Security Instrument are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof. ARTICLE 18. - MISCELLANEOUS PROVISIONS Section 18.1. NO ORAL CHANGE. This Security Instrument, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought. Section 18.2. LIABILITY. If Borrower consists of more than one person, the obligations and liabilities of each such person hereunder shall be joint and several. This Security Instrument shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors, assigns, heirs, personal representatives, executors and administrators forever. Section 18.3. INAPPLICABLE PROVISIONS. If any term, covenant or condition of the Note or this Security Instrument is held to be invalid, illegal or unenforceable in any respect, the Note and this Security Instrument shall be construed without such provision. Section 18.4. DUPLICATE ORIGINALS, COUNTERPARTS. This Security Instrument may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. This Security instrument may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Security Instrument. The failure of any party hereto to execute this Security Instrument, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. BK 1973PG2602 Section 18.5, NUMBER AND GENDER. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. Section 18.6. LEGAL DESCRIPTION. Borrower represents to Lender that it has reviewed and delivered to Lender a copy of the legal description set forth in Exhibit "A"; that such legal description is the accurate and proper legal description of the Land; and Borrower further acknowledges that neither Lender nor Lender's counsel prepared or reviewed such legal description. Borrower shall indemnify, defend and hold Lender harmless from and against any and all losses, liabilities, claims. damages, expenses, obligations, penalties, actions, judgments, suits, costs or disbursements of any kind or nature whatsoever, including the reasonable fees and actual expenses of Lender's counsel, in connection with any claim that title to the Property is impaired due to or based upon an inaccurate or improper legal description set forth herein. Section 18.7. INCONSISTENCIES. In the event of any inconsistencies between the terms and conditions of this Article and the other provisions of this Security Instrument, the terms and conditions of this Article shall control and be binding. Section 18.8. WAIVER OF TRIAL BY JURY. BORROWER BY ACCEPTANCE OF THIS SECURITY INSTRUMENT, HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE APPLICATION FOR THE LOAN, THE NOTE, THIS SECURITY INSTRUMENT OR THE OTHER SECURITY DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER OR BORROWER. (NO FURTHER TEXT - SIGNATURES APPEAR ON NEXT PAGE) BK 1973PG2603 W WITNESS WHEREOF, this Security Instrument has been executed by borrower the day and year first above written. Signed, sealed and in the muence of: ohn R. Bubb Print Name: Print Name:+ C?n<AK-Z Christine B. Bubb Print Name: This Instrument prepared by: Antonio Chimienti, Esq. Upon recording return to: Bayvicw Loan Scrvicing, LLC do Nationwide Title Clearing, Inc., Attn: Final Does Unit 2100 Alt 19 North Palm Harbor, FL 34683 (800) 346-9152 8KI973PG2604 ACKNOWLEDGMENT COMMONWEALTH OF ) : PENNSYLVA . "S COUNTY OF?i lei The foregoing instrument w cknowledged before me on November 7, 2006 by John R. Bubb and st B rsonally known to me or produced as identification, and did/did not take oath. [Official Notary Seal] IN A N Publi , Commonwealth of Pennsylvania Print or Type Name: My Commission Expires: t- Sod teetw A. Owe. M- T P*k Mr t7ea?oiee its . to tAemOM, Penneylwle AeeoeJlMOndtler110? BK 1973PG2605 RIDER TO MORTGAGE AND SECURITY AGREEMENT ( PENNSYLVANIA 1 THIS RIDER is made November 7, 2006, and is incorporated into and shall be deemed to amend and supplement the Mortgage and Security Agreement (the "Security Instrument") of the same date hereof, given by John R. Bubb and Christine B. Bubb (the "Borrower") to secure that certain Promissory Note in the amount of Two Hundred Ninety-Two Thousand and No/100 Dollars ($292,000.00) (the "Note") given to InterBay Funding, LLC, a Delaware Limited Liability Company, (the "Lender"), on the same date hereof and covering the Property described in the Security Instrument and located at 3299 Ritner Hwy, Newville, PA 17241 (the "Property Address"). In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 1. The Security Instrument is also known as an Open End Mortgage and Security Agreement. 2. The following sentence is added at the end of Section 4.5 (g): All contractors have filed a "no lien stipulation" in the Prothonotary's office in the county where the Property is located. Section 9.12 CONFESSION OF JUDGMENT IN EJECTMENT is added to the Security Instrument and reads as follows: BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS THE PROTHONOTARY, CLERK OR ANY ATTORNEY OF ANY COURT OF RECORD OF THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, TO APPEAR FOR AND CONFESS JUDGMENT AGAINST BORROWER, AS WELL AS AGAINST ALL PERSONS CLAIMING UNDER, BY OR THROUGH BORROWER, AND IN FAVOR OF LENDER, ITS SUCCESSORS OR ASSIGNS, AS OF ANY TERM, PAST, PRESENT OR FUTURE, WITH OR WITHOUT DECLARATION, FOR POSSESSION, CONTROL OR BOTH OF THE PREMISES, IMPROVEMENTS AND BUILDING EQUIPMENT, WITHOUT THE NECESSITY OF FILING ANY BOND AND WITHOUT ANY STAY OF EXECUTION OR APPEAL. THIS INSTRUMENT, OR A COPY HEREOF VERIFIED BY AFFIDAVIT, SHALL BE SUFFICIENT WARRANT THEREFOR; WHEREUPON, APPROPRIATE PROCESS TO OBTAIN POSSESSION, CONTROL OR BOTH OF THE PREMISES, IMPROVEMENTS AND BUILDING EQUIPMENT, INCLUDING LEVY AND EXECUTION, MAY BE ISSUED FORTHWITH, WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER. BORROWER HEREBY RELEASES AND AGREES TO RELEASE LENDER AND SAID ATTORNEYS FROM ALL PROCEDURAL ERRORS AND DEFECTS WHATSOEVER IN ENTERING SUCH JUDGMENT OR JUDGMENTS OR IN CAUSING SUCH WRITS OR PROCESS TO BE ISSUED OR IN ANY PROCEEDING THEREON OR CONCERNING THE SAME, PROVIDED THAT LENDER SHALL HAVE'FILED IN SUCH ACTION OR ACTIONS AN AFFIDAVIT OR AFFIDAVITS MADE BY SOMEONE ON LENDER'S BEHALF SETTING FORTH THE FACTS NECESSARY TO AUTHORIZE THE ENTRY OF SUCH JUDGMENT OR JUDGMENTS ACCORDING TO THE TERMS OF THIS INSTRUMENT, OF WHICH FACTS SUCH AFFIDAVIT OR AFFIDAVITS SHALL BE PRIMA FACIE EVIDENCE. IT IS HEREBY EXPRESSLY AGREED THAT IF FOR ANY REASON AFTER ANY SUCH ACTION OR ACTIONS HAVE BEEN COMMENCED THE SAME SHALL BE DISCONTINUED, MARKED SATISFIED OF RECORD OR BE TERMINATED, OR POSSESSION OF THE PREMISES, IMPROVEMENTS OR BUILDING EQUIPMENT REMAINS IN OR IS RESTORED TO BORROWER OR ANYONE CLAIMING BK 1973PG2606 UNDER, BY OR THROUGH BORROWER, LENDER MAY, WHENEVER AND AS OFTEN AS LENDER SHALL HAVE THE RIGHT TO AGAIN TAKE POSSESSION OF THE PREMISES, IMPROVEMENTS AND BUILDING EQUIPMENT, BRING ONE OR MORE FURTHER CONFESSIONS IN THE MANNER SET FORTH HEREIN TO RECOVER POSSESSION OF THE PREMISES, IMPROVEMENTS AND BUILDING EQUIPMENT. THE AUTHORITY AND POWER ABOVE GIVEN SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL FINAL PAYMENT IN FULL OF ALL SECURED INDEBTEDNESS. 4. Article 19 Special Pennsylvania Provisions is added to the Security Instrument and reads as follows: FUTURE ADVANCES: The Security Instrument secures such future or additional advances (in addition to the principal amount of the Note) as may be made by Lender or the holder hereof, at its exclusive option, to Borrower or its successors or assigns in title, for any purpose, provided that all such advances are made within 20 years from the date of the Security Instrument or within such lesser period of time as may be provided by law as a prerequisite for the sufficiency of actual notice or record notice of such optional future or additional advances as against the rights of creditors or subsequent purchasers for valuable consideration to the same extent as if such future or additional advances were made on the date of the execution of the Security Instrument. The total amount of indebtedness secured by the Security Instrument may be increased or decreased from time to time, but the total unpaid balance so secured at any one time shall not exceed a maximum principal amount equal to two times the amount first set forth in the Security Instrument, plus interest thereon and any disbursements made under the Security Instrument for the payment of impositions, taxes, assessments, levies, insurance, or otherwise with interest on such disbursements. It is the intent of the parties that the Security Instrument shall secure the payment of the Note and any additional advances made from time to time pursuant to any additional promissory notes or otherwise contemplated under the Loan Documents, all of said indebtedness being equally secured hereby and having the same priority as any amounts advanced as of the date of the Security Instrument. It is agreed that any additional sum or sums advanced by Lender shall be equally secured with, and have the same priority as, the original indebtedness evidenced by the Note and shall be subject to all of the terms, provisions and conditions of the Security Instrument, whether or not such additional loans or advances are evidenced by other promissory notes of Borrower and whether or not identified by a recital that it or they are secured by the Security Instrument. It is further agreed that any additional promissory note or promissory notes executed and delivered pursuant to this paragraph shall automatically be deemed to be included in the term "Note" wherever it appears in the context of the Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Rider to Pennsylvania Mortgage and Security Agreement and agrees that the terms hereof are hereby incorporated into and with the terms of the Security Instrument as if both the Security Instrument and this instrument are one and the same document. Nothing contained herein shall invalidate or change any terms of the Security Instrument except to the extent as maybe explicitly set forth herein. Signed, sealed and delivered in the presenc f: A&4 i BK ! 973PG2607 ,?hn ??), Print Dame. Print Name: Print Name: Unc4.n . A. AJ6 Print Name: ohn R. Bubb -4Z Christine B. Bubb OK 1973,PGZ608: ACKNOWLEDGMENT COMMONWEALTH OF ) PENNSYLVANLA CO ph ) COUNTY OF OF^ v The foregoing ins ment was acknowledged before me on November 7, 2006 by John R. Bubb and bb. CMI i ally known to me or produced as identification, and did/did not take an [Official Notary Seal] - P11 A No blic, ommonwealth of Pennsylvania Print or Type Name: My Commission Expires: KaW A. NWOW Smd _ t ?a"MY r Mr commirim &vim M i i. nAemwr.Ftimy?w?Aaod?tlonotNaWe BXI973PG2609 All that certain tract with the improvements thereon erected situate in the Township of West Pennsboro, Cumberland County, Pennsylvania,, bounded and described as follows: Beginning at a point, the intersection of the center lines of State Highway Route #11, Chambersburg-Harrisburg Pike, now the Ritner Highway and State Highway Route #233, Newville-Centerville Road; thence by the center line of the Ritner Highway, North -59 degrees 45 minutes East, a distance of 336 feet to a point; thence by lands now or formerly of Robert M. Mains, North 30 degrees IS minutes West, a distance of 250 feet to a stake, thence by the same, South 59 degrees 45 minutes West 336 feet to a point in the center of Highway Route #233; thence by the center line of said Road, South 30 degrees 15 minutes Last 250 feet to the Place of Beginning. Being improved with a concrete block building, including a garage on the first floor and an apartment on the second floor. And being the same property which Richard L. Bricker and Cheryl A. Bricker, his wife, by Deed dated July 1, 1983 and recorded in the Office of the recorder of Deeds in and for Cumberland County in Deed Book "G", Vol. 39, Page 659, granted and conveyed unto Robert G. Koser and Patsy L. Koser, his wife, Grantors herein. I Certify this to be recorded In Cumberland County PA 1..N Recorder of Deeds 6KI973PG2610 0 Prepared by J. ?esin, IINTC,2100 Alt. ?1) North, Palm Harbor, FL 34683 (800)3+16.9152 ,.. ,L RsCORD= RZTUM TO] ,WT(, -- kTTN: JZSSICA LLSINSRI 1100 ALT. 19. NORTH PALM HARROR, FLORIDA 34683 I.o •o 200049607 UPM: ROBERT P. ZIEGLER r:ECORDEP OF DEEDS t%1F t19ERLAND COUNTY.. r 1. W NOR 5 RM 9 49 ASSIGNMENT OF MORTGAGE FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency of which is hereby acknowledged, the undersigned, INTERBAY FUNDING, LLC, A DELAWARE LIMITED LIABILITY COMPANY, WHOSE ADDRESS IS 4425 PONCE DE LEON BLVD., 4TH FL, CORAL GABLES, FL 33146, (ASSIGNOR), by these presents does convey, grant, sell, assign, transfer and set over the described mortgage together with the certain note(s) described therein together with all interest secured thereby, all liens, and any rights due or to become due thereon to BAYVIEW LOAN SERVICING, LLC, A DELAWARE LIMITED LIABILITY COMPANY, WHOSE ADDRESS IS 4425 PONCE DE LEON BLVD., 5TH FL, CORAL GABLES, FL 33146, ITS SUCCESSORS OR ASSIGNS, (ASSIGNEE). said mortgage dated 11/07/2006. in the amount of $292,000.00 made by JOHN R. BUBB AND CHRISTINE B. BUBB to INTERBAY FUNDING, L.L.C. recorded on 11/20/2006, in the Office of the Recorder of Deeds of CUMBERLAND County, Pennsylvania, in Book 1973, Page 2577 (or Document No. ) Mortgage Premise: 3299 RTTNER HWY.jTWP. OF WEST PENNSBORO NEWVMLE.PA 17241 In Witness whereof, t t orporation has caused this instrument to be executed in its corporate name by ROBERT G. H its V E PRESIDENT and authorized signer, THIS 03RD DAY OF JANUARY IN THE YEAR 2007 ERB FUNDING, LLC . BY: BE G. HALL VICE PRESIDENT .WtASN 7386883 PWO1229132 N4 00355186428 8K0734PG3903 Loan Number 200049407 STATE OF FLORIDA COUNTY OF Dade On 01/03/2007. before me, Jason James (MDD428371) the Undersigned, Notary Public, personally appeared ROBERT G. HALL who acknowledged to be the VICE PRESIDENT of INTERBAY FUNDING. LLC a corporation, and that s/he as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained. by signing the name of the corporation by themselves as such corporate officers. IN WITNESS WHEREOF, I h eunto set my hand and official seal. Mortgagor: JOHN R. BUBB AND CHRISTINE B. BUBB Jason (DD428 71) NotaryPublic JASON JAMES My n expires. 5/i 1/2009 ' ? #t?DD42288?71? '' 110V Expires: MAY 11. 2009 Assignment of Mortgage from: INTERBAY FUNDING, LLC, A DELAWARE LIMITED LIABILITY COMPANY, WHOSE ADDRESS IS 4425 PONCE DE LEON BLVD., 4TH FL, CORAL GABLES, FL 33146, (ASSIGNOR), IMITED LIABILITY COMPANY, BAYVIEW LOAN SERVICING, LLC, A DELAWARE L, WHOSE ADDRESS IS 4425 PONCE DE LEON BLVD.. STH FL, CORAL GABLES, FL 33146, ITS SUCCESSORS OR ASSIGNS, (ASSIGNEE). When Recorded Return To: Bayview Loan Servicing, LLC 4425 Ponce De Leon Blvd, 5th FL Coral Gables, FL 33146 All that certain lot or piece of ground situated in Mortgage Premise: 3299 RITNER HWY.rrWP. OF WEST PENNSBORO NEWVILLE, PA 17241 CUMBERLAND (Borough or Tow h' , if stated), Commonwealth of Pennsylvania. Being more part' ul ly described in said mortgage. I . do certify that the address of the above assignee is: BAYVIEW LOAN SERVICING, L C, A DELAWARE LIMITED LIABILITY COMPANY, WHOSE ADDRESS IS 4425 PONCE DE LEON BLVD., 5TH FL. CORAL GABLES, FL 33146, ITS SUCCESSORS OR ASSIGNS, (ASSIGNEE). *7386883* BVASN 7386883 PWO1229132 N4 [ Certify this to be recorded In Cumberland County PA 0 BK O 7 34P63904 "N Recorder of Deeds forudAMMPAI ( Date: October 12, 2009 COMBINED NOTICE UNDEV.R ACT 6 AND ACT 91 TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE* This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. SDecific information about the nature of the default is Provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM HEMAP may be able to help to save your home This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 33 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with You when you meet with the Counseling Aaencv The name, address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of this Notice. If you have any Questions, you may call the Pennsylvania Housing Finance Aaencv toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869) This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACIO'N EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACIO'N OBTENGA UNA TRADUCCIO'N INMEDIATAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDE SER ELEGIBLE PARA UN PRE'STAMO POR EL PROGRAMA LLA LADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. * (Must be at least 30 point type) Page I of 6 (` EMMR D E HOMEOWNER'S NAME(S): PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINAL LENDER: 0 .John R. Bubb and Christine B. Bubb 3299 Ritner Highway. Newville, PA 17241 0200049407 InterBav Funding, LLC CURRENT LENDER/SERVICER: Bayview Loan Servicing. LLC HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: • IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice (plus three (3) days for mailing). During that time you must arrange and attend a "face- to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THIRTY-THREE (33) DAYS OF THE DATE OF THIS NOTICE IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE. YOU MUST BRING YOUR MORTGAGE UP TO DATE THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE -- Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default). You have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. To temporarily stop the lender from filing a foreclosure action, your application MUST be forwarded to PHFA and received within thirty (30) days of your face-to-face meeting with the counseling agency. YOU SHOULD FILE A HEMAP APPLICATION AS SOON AS POSSIBLE. IF YOU HAVE A MEETING WITH A COUNSELING AGENCY WITHIN 33 DAYS OF THE POSTMARK DATE OF THIS NOTICE AND FILE AN APPLICATION WITH PHFA WITHIN 30 DAYS OF THAT MEETING, THEN THE LENDER WILL BE TEMPORARILY PREVENTED FROM STARTING A FORECLOSURE AGAINST YOUR PROPERTY, AS EXPLAINED ABOVE, IN THE SECTION CALLED "TEMPORARY STAY OF FORECLOSURE." Page 2 of 6 ( YOU HAVE THE RIGHT TO FILE A HEMAP APPLICATION EVEN BEYOND THESE TIME PERIODS. A LATE APPLICATION WILL NOT PREVENT THE LENDER FROM STARTING A FORECLOSURE ACTION, BUT IF YOUR APPLICATION IS EVENTUALLY APPROVED AT ANY TIME BEFORE A SHERIFF'S SALE, THE FORECLOSURE WILL BE STOPPED. AGENCY ACTION -- Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mnrtveop Accict,nn- I HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT--The MORTGAGE debt held by the above lender on your property located at: 3299 Ritner Highway, Newville PA 17241 IS SERIOUSLY IN DEFAULT because: A. YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: Principal and interest payments for May 2009 through October 1 2009, totaling-$20,756.46 as of October 12, 2009 Other charges (explain/itemize): Late Charges $794.85• Escrow Balance $1 496 99 TOTAL AMOUNT PAST DUE: $23,048.30 B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable): HOW TO CURE THE DEFAULT -- You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $23,048.30 , PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's che& certified check or money order made payable and sent to: Bayview Loan Servicing. LLC 4425 Ponce De Leon Blvd. Coral Gables, FL 33146 Page 3 of 6 l (a You can cure any other default by taking the following action within THIRTY (30) DAYS of the date of this letter: (Do not use if not applicable.) IF YOU DO NOT CURE THE DEFAULT -- If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon Your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON -- The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorneys' fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period. you will not be required to pay attorney's fees. OTHER LENDER REMEDIES -- The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE -- If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time Q to one hour before the Sheriffs Sale You may do so bVpaying the total amount then past due, plus any late or other charges then due reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriffs Sale as specified in writing by the lender and by performing` any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE -- It is estimated that the earliest date that such a Sheriffs Sale of the mortgaged property could be held would be approximately 4 months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDE Name of Lender: Bavview Loan Servicing. LLC Address: 4425 Ponce De Leon Boulevard, Coral Gables FL 33146 Phone Number: 1-800-457-5105 Fax Number: Contact Person: Customer Service E-Mail Address: EFFECT OF SHERIFF'S SALE -- You should realize that a Sheriffs Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriffs Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. Page 4 of 6 ( 0 ASSUMPTION OF MORTGAGE -- You may or X may not (CHECK ONE) sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied. YOU MAY ALSO HAVE THE RIGHT: • TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. • TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. • TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY (Please see attached) THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR. THIS COMMUNICATION IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. PLEASE FIND ATTACHED A NOTICE PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT. Nicholas A. Didomenico, Esquire McGrath Law Group, P.C. Three Gateway Center, Suite 1375 401 Liberty Avenue Pittsburgh, PA 15222 Telephone (412) 281-4333 Facsimile (412) 281-2141 cc: Mr. Jesiel Figueroa Ms. Gaby Perez PHFA Page 5 of 6 NOTICE PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. §1692 ET SEQ., YOU MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF YOU DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS COMMUNICATION, COUNSEL FOR CREDITOR WILL OBTAIN AND PROVIDE YOU WITH WRITTEN VERIFICATION OF THE DEBT, AS WELL AS THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CURRENT CREDITOR. OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. IF YOU DO NOT DISPUTE THE DEBT, IT IS NOT AN ADMISSION OF LIABILITY BY YOU. IF YOU NOTIFY US IN WRITING WITHIN THE THIRTY (30) DAY PERIOD, WE WILL CEASE COLLECTION OF THIS DEBT, OR ANY DISPUTED PORTION OF IT, UNTIL WE HAVE OBTAINED THE REQUIRED INFORMATION AND MAILED IT TO YOU. ONCE WE HAVE MAILED YOU THE REQUIRED INFORMATION, WE WILL CONTINUE THE COLLECTION OF THIS DEBT. THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR. THIS COMMUNICATION IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. Page 6 of 6 (0 (a HEMAP Consumer Credit Counseling Agencies CUMBERLAND County Report last updated: 10115/2007 10:03:08 AM Adams County Interfaith Housing Authority 40 E High Street Gettysburg, PA 17325 717.334.1518 CCCS of Western PA 2000 Linglestown Road Harrisburg, PA 17102 888.511.2227 Community Action Commission of Captial Region 1514 Derry Street Harrisburg. PA 17104 717.232.9757 Loveship. Inc. 2320 North 5th Street Harrisburg, PA 17110 717.232.2207 Maranatha 43 Philadelphia Avenue Waynesboro, PA 17268 717.762.3285 PHFA 211 North Front Street Harrisburg, PA 17110 717.780.3940 800.342.2397 L I= r, i-= C ' orr7eslic Mail Only, No rnsurance C'ovelage Provided) 0 For delivery information visit our website at www usps.com CO t 17 Postage S Certified Fee Retum Recept Fee (Endorsement Required) :3 ResWed Delivery Fee (Endorsement Required) r a r Total Postage & Fees $ I?k ( f SS 7,., CorrOft ibenre 1.2. and & Also aompiste Rem 4 N Restricted Ddywy is deWred. Print your nwrte and address on the reveres w #W we cren return the card to you. Attach this card to the back of the maiipiecsr or on the front M space pwmft& Aftb Addressed to: T?M-P- B. &bb ,a99 A soft" i P 8. ReaMd by 0. Is dslvay OWN= !N No 1? M YES. ata+r dtrlivay Md O e pm Md G Repiepred O Rskn R-10 for filtMCherdM E3 Irmured tdell O mam 4.R 11,', d Ddreryl tie FsO iris Ar" Number (lfaruittrbomnrwmhiw 7009 1410 0002 1578 3293 Form 3811. Fewuary 2004 DorrtI Or Ream R9Ce4t ,oxaebaa Asa 77 le? oheree . himp • Ca cabs o ?e °` This Cedfioete of Meiling provides evidencethat.moil ha been presented to USPSe t This fpm may be used for dor9wAc and.insemotlorml mas. ' " ' t Frw To: rk Here PS Fpm 3817, Ap`1 2007 PSN 7530-02-000-9065 CE RTIF IED MAIL RE CE IPT (Do For d mestic elivery-i Mall Only nformation ; No ins visit ou urance r webait Cove e ht w rage Provided) ww usps Coln • P++ntrge I;orttlhW far I lelum HaCefpl fM ICrldora?ment flequtrad) I taah)cted DMIvery fee (t_ ndorsement flequked) WGRATH LAw GROUP, P.C. . ATTORNEYS THREE GATEWAY CENTER, SUITE 1375 401 LIBERTY AvENuE PITTSBURGH, PENNSYLVANIA 15222-2102 7009 1410 oooz 1=78 330 .V John R. Bubb 3299 Ritner Highway Nemille, PA 17241 . 7241 *&d!'hg4 -etlk stamps or hoo. t s To: PS Form 3817. Aori 2007 PSN 7530-02-000-9065 FO+rrk Here W LL .t it DE NIXIE 176 DE NOT DELIVERABL UNABLE T BC: 13222100425 ".L?q Ulm ' caroe,=bof The C*ddCdG or Mesmq pro. owd@nC* that mall has bsen presented to U The tom mey be usW tar domeebe and Neenratlonr rut From: SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy Edward L Schorpp Solicitor Bayview Loan Servicing, LLC vs. Christine B. Bubb OF TFr FILED-C, r CE N OT,ARY 1010 FEB -8 AM 11.59 CUM,- Case Number 2010-700 SHERIFF'S RETURN OF SERVICE 02/01/2010 06:58 PM - Robert Bitner, Deputy Sheriff, who being duly sworn according to law, states that on February 1, 2010 at 1858 hours, he served a true copy of the within Complaint in Mortgage Foreclosure, upon the within named defendant, to wit: Christine B. Bubb, by making known unto herself personally, at 3299 Ritner Highway, Newville, Cumberland County, Pennsylvania 17241 its contents and at the same time handing to her personally the said true and correct copy of the same. SHERIFF COST: $33.40 February 03, 2010 SO A ER , NY R ANDERSON, SHERIFF " - ; 2 JA D f (oi CowltySuitp ShenfP. TeiooSmt. InC- rim _ •I\ 1 2010 X i v 4``1 10: 3l IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BAYVIEW LOAN SERVICING, LLC, a CIVIL DIVISION Delaware Limited Liability Company, NO.: 10-700 Civil Term Plaintiff, vs. CHRISTINE B. BUBB, TYPE OF PLEADING: Defendant. PRAECIPE TO SETTLE AND DISCONTINUE ACTION FILED ON BEHALF OF: BAYVIEW LOAN SERVICING, LLC, Plaintiff COUNSEL OF RECORD FOR THIS PARTY: Nicholas A. Didomenico, Esquire PA I.D. No. 93353 McGRATH LAW GROUP, P.C. Three Gateway Center 401 Liberty Avenue, 13'' Floor Pittsburgh, Pennsylvania 15222 TELEPHONE: (412) 281-4333 FACSIMILE: (412) 281-2141 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BAYVIEW LOAN SERVICING, LLC, a CIVIL DIVISION Delaware Limited Liability Company, CASE NO.: 10-700 Civil Term Plaintiff, VS. CHRISTINE B. BUBB, Defendant. PRAECIPE TO SETTLE AND DISCONTINUE ACTION TO: PROTHONOTARY Kindly settle and discontinue action in the above-referenced matter and mark the Docket accordingly. McGRATH LAW GROUP, P.C. By: // ` V 'I-, J Nicholas A. Didomenico, Esquire PA I.D. No. 93353 Attorneys for Plaintiff Three Gateway Center 401 Liberty Avenue, 13`h Floor Pittsburgh, Pennsylvania 15222 Telephone: 412-281-4333 Facsimile: 412-281-2141