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HomeMy WebLinkAbout10-1537ORRSTOWN BANK IN THE COURT OF COMMON PLEAS OF 77 EAST KING STREET CUMBERLAND COUNTY, PENNSYLVANIA SHIPPENSBURG, PA 17257 Plaintiff V. NO. 2010- /S3 7 CIVIL TERM o JULIE A. CHARLES 125 HILL LANE MORTGAGE FORECLOSURE, NEWVILLE, PA 17241, t D f d en e an NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 90 - ?? ' ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff V. JULIE A. CHARLES 125 HILL LANE NEWVILLE, PA 17241, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010- CIVIL TERM MORTGAGE FORECLOSURE COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown") by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff and Mortgagee is Orrstown Bank, a Pennsylvania corporation, with a place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania 17257. 2. The Defendant, Julie A. Charles, is an adult individual residing at 125 Hill Lane, Newville, Cumberland County, Pennsylvania 17241. 3. By Deed dated January 19, 2006, Zane R. Highlands and Vicki L. Highlands, conveyed the premises described in Exhibit "A", attached hereto and made a part hereof, to Julie A. Charles. This Deed was recorded in the Cumberland County Record Book 272, Page 4413, et seq., all of which pages are incorporated herein by reference and made a part hereof. The premises are further described as being 125 Hill Lane, 75 Hill Lane and 98 Hill Lane, Newville, Cumberland County, Pennsylvania 17241. 4. On or about January 19, 2006, Julie A. Charles as Mortgagor, made, executed and delivered a written Promissory Note secured by a Mortgage made, executed and delivered the same day to Plaintiff as Mortgagee on the premises described in Exhibit "A." This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds for Cumberland County on January 24, 2006, at Cumberland County Record Book 1938, Page 1247, et. seq., all of which pages are incorporated herein by reference and made a part hereof. 5. A true and correct copy of the aforesaid Promissory Note is attached hereto and made a part hereof as Exhibit "B". A true and correct copy of the aforesaid recorded Mortgage is attached hereto and made a part hereof as Exhibit "C". 6. Defendant has defaulted under the terms and conditions of the Mortgage and Promissory Note by failing to make payment for the month of June, 2009, and every month thereafter. 7. Defendant is the present record owner of the premises described in Exhibit "A" and is the real owner of the premises, excepting, however, that portion of the premises known as 75 Hill Lane, Newville, Cumberland County, Pennsylvania. Plaintiff served Notice of Plaintiff s Intention To Foreclose on the real estate of Defendant with Notice Of Defendant's rights under Act 91 of 1983 (Homeowner's Emergency Mortgage Assistance Law) via certified mail and certificate of mailing on April 2, 2008. 9. Attached hereto and marked as Exhibit "D" is a true and correct copy of the combined Act 6 and Act 91 Notice. 10. Attached hereto and marked as Exhibit "E" are true and correct copies of the certified mail receipt and the certificate of mailing for the combined Notice served upon Defendant. 11 Under the terms of the Mortgage and Promissory Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Promissory Note or Mortgage is not met, then the entire indebtedness owing on the Mortgage and Promissory Note obligations shall become due and payable immediately at the declaration of Mortgagee. 12. Plaintiff, as Mortgagee, has exercised its option and declared the entire unpaid balance of principal and interest as immediately due and owing. 13. The Promissory Note and Mortgage permit Plaintiff to recover its attorney fees and costs. 14. The following amounts are presently due on the said Mortgage and Promissory Note calculated to February 17, 2010: Principal $783,227.30 Interest to 02/17/109 $ 44,628.19 (per diem of $168.61) Late Charges $ 2,814.48 Other Charges $ 13,198.27 Attorney fees $ 39,1671.36 (to sheriff's sale set by Plaintiff as 5% of principal debt for this Complaint) TOTAL: $883,029.60 WHEREFORE, Plaintiff requests judgment in Mortgage Foreclosure in the sum of $883,029.60 plus interest thereafter at the contract per diem from February 17, 2010, and costs, attorney fees and expenses against Defendant, Mortgagor and real owner and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibit "A" hereto. Respectfully submitted, B-PXC SCHERER David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank T da b.dir/o rrstown ban k/charles/mortgage/fo reclosu recom plaint. pld '4/25I2T'.^ 14:55 7172495755 ORS PAGE 06 The statements in the foregoing Complaint are based upon information that has been assembled by my attorney in this litigation. The language of the statements is not my own. I have read the statements; and to the extent that they are based upon information that I have given to my counsel, they are true and correct to the best of my knowledge, information, and belief. I understand that false statements herein are made subject to thS pe ties of 18 Pa.C.S.A. § 4904 relating to unsworn falsifications to authorities. DATE: Z-, 2 ?q I c Linda K. Mowen Assistant Vice President Loan Workout & Collection Manager Orrstown Hank Nu r? ) A After recording return to: Midstate Abstract 2331 Market Street Camp Hill, PA 17011 (717) 763-1383 kA?-- c41v-i AN 24 P PI l`3jk Is DEED 6 MADE THIS C _ day of 00-kxkq-r-?j in the year of our Lord two thousand and six (2006). BETWEEN ZANE R. HIGHLANDS and VICKI L. HIGHLANDS, husband and wife, of Cumberland County, Pennsylvania, hereinafter referred to as Grantors AND JULIE A. CHARLES, a single woman of Cumberland County, Pennsylvania, hereinafter referred to as Grantee WITNESSETH, that for and in consideration of the sum of ONE MILLION SIX HUNDRED FIFTY THOUSAND DOLLARS ($1,650,000.00), in hand paid, the receipt whereof is hereby acknowledged, the said Grantors do hereby grant and convey, in fee simple to the said Grantee, her heirs and assigns, TRACT #1 ALL THAT CERTAIN tract of land located in Lower Mifflin Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a point in the State Road by corner of lands formerly of H.J. Fry, now or formerly of George Ginter; thence by said road, North 09 degrees East, 92.5 perches to corner of lands formerly of Jhon Barrick, now or formerly of Lucy Barrick; thence North 65% degrees East, 24 perches to a point; thence North 81% degrees East, 80 perches to a point at corner of lands formerly of Joseph Salisbury, now or formerly of Lehman J. Hurley; thence South 47'/4 degrees East, 105 perches to a point; thence South 40%2 degrees West, 12.1 perches to a stone; thence South 48'/4 degrees East, 29.2 perches to a corner of lands of W.H. McCrea Estate; thence South 443/4 degrees West, 18 perches to a point; thence South 323/4 degrees West, 38.5 perches to a point; thence North 52'/2 degrees West, 47 perches to a point; thence South 36% degrees West, 64 perches to a stone in the public road leading to Bloserville; thence by said road and line of lands now or formerly of W.H. McCrea Estate, North 521/4 degrees West, 31.8 perches to a post; thence North 77 degrees West, 24.3 perches to a post; thence North 791/2 degrees West, 32.3 perches to a stone, formerly a white oak; thence by lands formerly of H.J. Fry, now or formerly of George Ginter, North 13% degrees West, 22.4 perches to a stone, formerly a white oak; thence North 86 degrees West, 11.5 perches to a point in the State Road, the Place of BEGINNING BOOK 272 PACE4413 WEIGLE & ASSOCIATES. P.C. - ATTORNEYS AT LAW .- 126 EAST KING STREET - SHIPPENSBURG. PA 17257.1397 EXHIBIT'- "A" EXCEPTING and reserving therefrom three (3) lots or parcels of land as follows: 1. Lot sold to H.A. Hoover and Iva M. Hoover, husband and wife, by deed of Mervin D. Smith and Myrtle Caroline Smith, husband and wife, dated May 3, 1944, and recorded in Cumberland County Deed Book "V" Volume 12, Page 59. 2. Lot sold to H.A. Hoover and Iva M. Hoover. husband and wife, by deed of Mervin D. Smith and Myrtle Caroline Smith, husband and wife, dated December 1, 1945, and recorded in Cumberland County Deed Book "I", Volume 13, Page 510. 3. All that certain tract of land with an aluminum siding ranch house and adjoining garage thereon erected, situate in Lower Mifflin Township, Cumberland County, Pennsylvania, bounded and described in accordance with a subdivision survey prepared by Eugene A. Hockensmith, P.L.S., which survey is dated December 18, 1986, and recorded in Cumberland County Plan Book 52, Page 68, as follows: BEGINNING at a railroad spike in the centerline of L.R. 21082 at the southeast corner of lands now or formerly of George F. Ginter, et ux., which railroad spike is located 339.16 feet in an easterly direction along the centerline of L.R. 21082 from the intersection of the centerlines of L.R. 21082 and Pennsylvania Route No. 233; thence from the Point of Beginning and running along the lands now or formerly of George F. Ginter, et ux., the following two (2) courses and distances: (1) North 18 degrees 29 minutes 09 seconds West a distance of 27.11 feet to an iron pin on the northerly dedicated right-of-way line of L.R. 21082; and (2) North 18 degrees 29 minutes 09 seconds West a distance of 89.89 feet to an iron pin; thence along lands now or formerly of Franklin A. Oiler, et ux., North 18 degrees 29 minutes 09 seconds West a distance of 182.41 feet to an iron pin; thence along lands, of which this lot was formerly a part, about to be conveyed to Zane R. Highlands, the following five (5) courses and distances: (1) North 74 degrees 49 minutes 19 seconds East a distance of 243.50 feet to an iron pin; (2) South 53 degrees 24 minutes 51 seconds East a distance of 39.05 feet to an iron pin; (3) South 16 degrees 07 minutes 16 seconds West a distance of 288.48 feet to an iron pin; (4) South 25 degrees 52 minutes 05 seconds West a distance of 31.16 feet to an iron pin on the northerly dedicated right-of-way line of L.R. 21082; and (5) South 25 degrees 52 minutes 05 seconds West a distance of 26.89 feet to a railroad spike in the centerline of L.R. 21082; thence along the centerline of L.R. 21082 and a lot now or formerly of Walter G. Derr, et ux., North 85 degrees, 44 minutes 00 seconds West a distance of 7.00 feet to a P.K. Nail, thence continuing along the centerline of L.R. 21082 and lands now or formerly of Norman L. Reinford, Jr. et ux., North 85 degrees 44 minutes 00 seconds West a distance of 59.18 feet to a railroad spike, the Place of BEGINNING. CONTAINING a total area of 1.2860 Acres. BOOK 272 PACE4414 ?1 WEIGLE & ASSOCIATES. P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 SUBJECT to a 25 foot wide step of land at the south end of the above-described lot which has been dedicated as a right-of-way for highway and utility purposes. BEING all of Lot No. 2 on the aforesaid subdivision plan, which is dated December 18, 1986, and recorded in Cumberland County Plan Book 52, Page 68. LOT No. 2 above described as the third lot or parcel of land excepted and reserved, is retained by Margaret R. Moore and is improved with an aluminum siding ranch house and block and frame garage with mailing address of R. D. #3 Box 2184, Newville, Pennsylvania 17241. THE LAND herein conveyed exclusive of the three (3) lots or parcels of land excepted and reserved; is all of a tract of land shown as No. 1 on said Final Subdivision Plan for Margaret R. Moore recorded in Plan Book 52, Page 68, and contains an area of approximately 135 acres on which there is erected a dwelling house, bam and other improvements with mailing address of R.D. #3, Box 2192, Newville, Pennsylvania 17241. BEING the same real estate which Margaret R. Moore, widow, by Deed dated March 12, 1987, and recorded in the Office of the Recorder of Deeds in the for Cumberland County, Pennsylvania, in Deed Book N-32, Page 713, conveyed to Zane R. Highlands and Vicki L. Highlands, Grantors herein. THE WITHIN conveyance is made under and subject, nevertheless, to building and use restrictions of record and to easements visible or of record. TRACT #2 ALL THAT CERTAIN tract of land with the improvements thereon erected situate in Lower Mifflin Township, Cumberland County, Pennsylvania, bounded and described according to the Land Subdivision for Iris McCrea as prepared by Samuel David Rynyon, R.S., dated February 21, 1989 and recorded in the office of the Recorder of Deeds in and for Cumberland County in Plan Book 58, Page 67, as follows, to wit: BEGINNING at a railroad spike set in S.R. 233 at the northwest corner of land now or formerly of Spencer A. Stamy; thence in said S.R. 233 along lands now or formerly of Joseph S. Blessing and lands now or formerly of Mary A. Salisbury, North nine (09) degrees thirty-two (32) minutes forty-seven (47) seconds East, one hundred eighty-eight and thirty-seven hundredths (188.37) feet to an existing nail and washer, thence in said S.R. 233 and along lands now or formerly of Richard C. Duble, North nine (09) degrees twenty-four (24) minutes forty-one (41) seconds East, three hundred sixty-nine and sixty-seven hundredths (369.67) feet to an existing nail and washer; thence in said S.R. 233 and along lands now or formerly or Richard C. Johnson and Nancy B. Johnson, North nine (09) degrees fifty-two (52) minutes fifty-three (53) seconds East, one hundred twenty-one and BOOK 272 PACE4415 WEIGLE & ASSOCIATES. RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SNIPPENSOURG. PA 17257.1397 ninety-six hundredths (121.96) feet to a railroad spike set; thence along same, North twelve (12) degrees thirty-six (36) minutes twenty-four (24) seconds East, one hundred fifty and zero hundredths (150.00) feet to a railroad spike set; thence in said S.R. 233 and along Lot #1 on the above-referenced plan, North eighteen (18) degrees five (05) minutes twenty-six (26) seconds East, two hundred twenty- six and thirty-five hundredths (226.35) feet to a railroad spike set; thence by said Lot No. #1 the following eight courses and distances; North eighty-six (86) degrees thirty (30) minutes fifty-eight (58) seconds East, five hundred eighteen and eight hundredths (518.98) feet to an iron pin set; North seventy-seven (77) degrees thirty- one (31) minutes fifty-five (55) seconds East, eighty-six and twenty-six hundredths (86.26) feet to an iron pin set; North sixty-five (65) degrees forty-two (42) minutes twenty-six (26) seconds East, sixty-six and twenty-two hundredths (66.22) feet to an iron pin set; North sixty-two (62) degrees twenty-four (24) minutes fifty-six (56) seconds East, three hundred eighty and forty-nine hundredths (380.49) feet to an iron pin set; North fifty (50) degrees thirteen (13) minutes twenty (20) seconds East, one hundred sixty-six and thirty-one hundredths (166.31) feet to an iron pin set; North fourteen (14) degrees twenty-nine (29) minutes fifty (50) seconds West, four hundred ten and twenty hundredths (410.20) feet to an existing post; North eighty (80) degrees thirty-seven (37) minutes twenty-fiv (25) seconds East, eighty- seven and zero hundredths (87.00) feet to an iron pin set; North six (06) degrees ten (10) minutes three (03) seconds West, three hundred forty-five and ninety-nine hundredths (345.99) feet to an iron pin set at stones; thence along lands now or formerly of Franklin A. Oiler the following seventeen courses and distances: South fifty (50) degrees fifty-five (55) minutes twenty-eight (28) seconds East, one hundred thirty-seven and twenty-four hundredths (137.24) feet to an existing stone pile; South seventy-seven (77) degrees fifty-three (53) minutes fifteen (15) seconds East, three hundred sixty-three and one hundredths (363.01) feet to a point; North sixty-two (62) degrees forty-three (43) minutes thirty-five (35) seconds East, one hundred and forty-two hundredths (142.00) feet to a point; North thirty-nine (39) degrees five (05) minutes thirteen (13) seconds East, one hundred nine and ten hundredths (109.10) feet to a point, North sixty-eight (68) degrees twenty-four (24) minutes fifteen (15) seconds East, seventy-two and eighteen hundredths (72.18) feet to a point; North eighty-four (84) degrees twenty-five (25) minutes fifty (50) seconds East, fifty-four and twenty-five hundredths (54.25) feet to a point; North sixty-one (61) degrees thirty-eight (38) minutes fifty-two (52) seconds East, one hundred twenty-four and eight hundredths (124.08) feet to a point; North eighty- seven (87) degrees nineteen (19) minutes eighteen (18) seconds East, forty-one and seventy-eight hundredths (41.78) feet to a point; North seventy-two (72) degrees thirty-one (31) minutes twenty-eight seconds East, three hundred thirty-seven and twenty-two hundredths (337.22) feet to a point; North forty (40) degrees twelve (12) minutes thirty (30) seconds East, fifty and eighty-two hundredths (50.82) feet to a point; North seventy-two (72) degrees twenty (20) minutes twenty-six (26) seconds East, one hundred six and sixty hundredths (106.60) feet to an existing stone pile, North twenty-nine (29) degrees thirty-nine (39) minutes thirty-two (32) scox 272 PACE 61 WEIGLE & ASSOCIATES, RC. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 seconds East, one hundred sixty-nine and sixty-three hundredths (169.63) feet to a point; south eighty-eight (88) degrees thirty-five (35) minutes thirty-two (32) seconds East, fourteen and eighty-four hundredths (14.84) feet to an existing iron pin set at stone; North thirty-one (31) degrees one (01) minute thirty-seven (37) seconds East, one hundred sixty-five and zero hundredths (165.00) feet to an existing iron pin set at stones; North seventy-nine (79) degrees one (01) minute thirty-seven (37) seconds East, one hundred forty-eight and fifty hundredths (148.50) feet to an existing iron pin at stones; South twenty-six (26) degrees thirteen (13) minutes twenty-three (23) seconds East, one hundred ninety-eight and zero hundredths (198.00) feet to an existing post; North seventy-nine (79) degrees thirty-five (35) minutes twenty-six (26) seconds East, one thousand seventy-one and ninety-six hundredths (1,071.96) feet to an existing iron pin at stones; thence along lands now or formerly of Grove Brother Lumber Co., South twenty-eight (28) degrees forty-eight (48) minutes fifty-three (53) seconds East, one thousand twenty-seven and eight-four hundreds (1,027.84) feet to an iron pin set at stones; thence along lands now or formerly of Andrew M. McCrea, South two (02) degrees fifty-five (55) minutes forty-five (45) seconds East, one thousand seventy-two and fifty-seven hundredths (1,072.57) feet to an iron pin set at stones; thence along same, South eighty-two (82) degrees forty (40) minutes forty-one (41) seconds West, two thousand two hundred eighty-two and twenty-two hundredths (2,282.22) feet to an existing stone pile; thence along same, South eighty-one (81) degrees fifty-three (53) minutes two (02) seconds West, seven hundred forty-seven and eighty-seven hundredths (747.87) feet to an existing post; thence along lands now or formerly of Zane Highlands, South eighty-two (82) degrees fifteen (15) minutes fifty-five (55) seconds West, one thousand two hundred ninety-five and ninety- three hundredths (1,295.93) feet to an iron pin set at stones; thence along same and lands now or formerly of Spencer A. Stamy, South sixty-five (65) degrees twelve (12) minutes thirteen (13) seconds West, four hundred six and ninety-nine hundredths (406.99) feet to a railroad spike set, the place of BEGINNING. BEING Lot No. #2 on the Land Subdivision for his McCrea and containing 165.7265 acres net area. BEING the same premises conveyed by his W. McCrea, widow, by deed dated June 19, 1989 and recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Deed Book "A," Volume 23, Page 124, unto Zane R. Highlands and Vicki L. Highlands, the Grantors herein. AND BEING the same which Zane R. Highlands and Vicki L. Highlands, husband and wife, by deed dated April 1, 1996 and recorded in Cumberland County Deed Book 137 at Page 170, conveyed to Zane R. Highlands and Vicki L. Highlands, as Tenants-in-Common, each to an undivided one-half (1/2) interest, Grantors herein. sov 272 PnE4417 WEIGLE C. ASSOCIATES, P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SMIPPENSOURG. PA 17257-1397 Tract 2 herein is subject to rights of the Grantors, their heirs and assigns to use Private Right-of-Way A and Private Right-of-Way B as more fully shown and described in Cumberland County Plan Book 91, Page 94, for ingress, egress and regress to and from other real estate retained Grantors, said real estate more fully described in Cumberland County Deed Book 34-4 at Page 368. A private Right-of Way Agreement will be recorded simultaneously herewith. And the said Grantors hereby covenants and agrees that they will warrant specially the property hereby conveyed. IN WITNESS WHEREOF, Grantors have hereunto set their hands and seals the day and year first above written. Signed, Sealed and Delivered in the Presence of NE R. H G NDS kLA*-=5 CKI L. HIGH 2S, ° H Mg?RNWHM ` ' ? i? ? i ? e ao•.?o•• a 3 ao f6 ig 'ao r1a ba" n3 CO CA W m C T m % v {1= co r r p d+10®" pAIroRNEVs AT!ukw - El a 1-+ n 0 r• -t ? o r MW 272 PAGE448 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF CUMBERLAND On this, the day of V ? r y , 2006, before me, a Notary Public in _Lt and for said County and State, the undersign¢d officer, personally appeared Zane R. Highlands and Vicki L. Highlands, known to me (or satisfactorily proven) to be the persons whose names subscribed to the within instrument, and acknowledged that they executed the same for the purposes herein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. tary Public ?Nwr.1 Deborah L ?. P?I„gM,?+.,woalal aNol.w I do hereby certify that the complete post office address of the within named Grantee is Date: Attorney for Grantee COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF CUMBERLAND RECORDED on this day of , A.D. 2006, in the Recorder's Office of said County, in Deed Book , at Page I Certify this to be recorded In CUri*tV"> County PA A e .? • soot'. 272 FACE441 ?.? ?- f s' ? L:•) ibA Q'l. Rc a: r nt r??r WEIGLE & ASSOCIATES, P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. I Anv item above containing has been omitted due to text length limitations. Borrower: Julie A. Charles (SSN: 003-56-2258) Lender: ORRSTOWN BANK 125 Hill Lane STONEHEDGE OFFICE Newville, PA 17241 77 EAST KING STREET P 0 BOX 250 SHIPPENSBURG, PA 17257 Principal Amount: $850,000.00 Date of Note: January 19, 2006 Maturity Date: January 19, 2026 PROMISE TO PAY. Julie A. Charles ("Borrower") promises to pay to ORRSTOWN BANK ("Lender"), or order, in lawful money of the United States of America, the principal amount of Eight Hundred Fifty Thousand & 00/100 Dollars ($850,000.00), together with interest on the unpaid principal balance from January 19, 2006, until paid in full. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. If no demand is made, subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in accordance with the following payment schedule: 60 monthly consecutive principal and interest payments in the initial amount of $ 7,036.17 each, beginning February 19, 2006, with interest calculated on the unpaid principal balances at an initial discounted interest rate of 7.750% per annum; and 180 monthly consecutive principal and interest payments in the initial amount of $7,254.32 each, beginning February 19, 2011, with interest calculated on the unpaid principal balances at an interest rate based on the Wall Street Prime (currently 7.250%), plus a margin of 1.000%, resulting in an initial interest rate of 8.250%. Borrower's final payment will be due on January 19, 2026 and will be _for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any Into charges. The annual interest rate foe this Note is computed on a 3651360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. For the first 60 payments, the interest rate on this Note will be 7.750%. Thereafter, the interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Wall Street Prime (the "Index"). The Index is not- necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.250% per annum. The interest rate or rates to be applied to the unpaid principal balance of this Note will be the rate or rates set forth herein in the "Payment" section. Notwithstanding any other provision of this Note, after the first payment stream, the interest rate for each subsequent payment stream will be effective as of the last payment date of the just-ending payment stream. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: (A) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date, (B) increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments, and (D) continue Borrower's payments at the same amount and increase Borrower's final payment. PREPAYMENT PENALTY. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Upon prepayment of this Note, Lender is entitled to the following prepayment penalty: Should Borrower prepay all or any amount of principal during the next five (5) years, the Borrower shall be assessed against the amount prepaid, a five percent (5.00%) prepayment penalty. The assessment percentage shall decrease one percent (1.00%) per annum to par. Lender acknowledges that excepted from this assessment will be principal payments that are generated as a result of operation of the business for which the loan was extended. Specifically not excepted will be any prepayments generated as a result of P. refinancing at any other financial institution. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower or Borrower's obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal balance due and may result in Borrower making fewer payments. . Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender sn writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: ORRSTOWN BANK, 77 EAST KING STREET, P.O. BOX 250 SHIPPENSBURG, PA 17257. LATE CHARGE. If a payment is 16 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $50.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note to 4.000 percentage points over the Index. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. EXHIBIT "B" PROMISSORY NOTE Loan No: 26470259001 (Continued) Page 2 Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein: (A) a Mortgage dated January 19, 2006, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. (B) an Assignment of All Rents to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. FINANCIAL INFORMATION. The Borrower agrees to provide the Lender with Federal Tax Returns and/or CPA prepared Financial Statements and any other financial information, required by the Lender's Original Commitment Letter to the Borrower, on an annual basis. If the Lender does not receive the required financial information within two hundred seventy (270) days of the Borrower's fiscal year end, the Lender has the right to increase the interest rate charged on this Note by 0.25%. The Borrower shall receive written notification ten (10) days prior to the Lender increasing the interest rate charged on this Note. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address: ORRSTOWN BANK, STONEHEDGE OFFICE, 77 EAST KING STREET, P 0 BOX 250, SHIPPENSBURG, PA 17257. GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND PROMISSORY NOTE Loan No: 26470259001 (Continued) Page 3 ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS (9500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: X ... ~ .......... :.(Seal) lie A. Cha ea LAGER PRO Lwdrq. Var. 6.60.00.004 Copr. NwWW Fin6ndd 66N6om. Ina 1667. 7006. AN Wq" Rrw6d - PA WCHILPL1070.FC 7R-11666 PR-1 Parcel Identification Number: RECORDATION REQUESTED BY: ORRSTOWN BANK STONEHEDGE OFFICE 77 EAST KING STREET P 0 BOX 250 SHIPPENSBURG, PA 17257 WHEN RECORD MAIL T0: ORRSTO BANK STON EDGE OFFICE 77 ST KING STREET P BOX 250 IPPENSBURG,PA 17257 After recording return to: Midstate Abstract 7331 Market Street Camp Hill, PA 17011 (717) 763 1383 1 FOR RECORDER'S USE ONLY MORTGAGE THIS IS A PURCHASE MONEY MORTGAGE Amount Secured Hereby: $850,000.00 THIS MORTGAGE dated January 19, 2006, is made and executed between Julie A. Charles, whose address is 125 Hill Lane, Newville, PA 17241 (referred to below as "Grantor") and ORRSTOWN BANK, whose address is 77 EAST KING STREET, P 0 BOX 250, SHIPPENSBURG, PA 17257 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Cumberland County, Commonwealth of Pennsylvania: See attached The Real Property or its address is commonly known as 125 Hill Lane and 75 & 98 Hill Lane, Newville, PA 17241. CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (e) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $850,000.00, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PURCHASE MONEY MORTGAGE. If any of the debt secured by this Mortgage is lent to Grantor to acquire title to the Real Property, this Mortgage shall be a purchase money mortgage under 42 F.S. Section 8141. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be gevcmad by the following pro•:.c:on_. Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; 2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or EXHIBIT "C" BK ! 938PG 1247 MORTGAGE (Continued) Page 2 threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lander cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessment= agRinnt the. Prn!,erty. Notice of Construction. Grantor shall notify Lender at least fifteen 05) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage; Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such BBKK 1938PG 1248 MORTGAGE (Continued) Page 3 coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lander will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within ISO days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lander such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to eovernmental taxes. fees and charoes are a Dart of this Morteaee: MORTGAGE (Continued) Page 4 Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lander or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained leach as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lander's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Additional Authorizations. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Mortgage: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect lincluding failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. BK 1938FIG 1250 MORTGAGE (Continued) Page 5 Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice - of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lander shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Possession of the Property. For the purpose of procuring possession of the Property, Grantor hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere, as attorney for Lender and all persons claiming under or through Lender, to sign an agreement for entering in any competent court an amicable action in ejectment for possession of the Property and to appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, for the recovery by Lender of possession of the Property, without any stay of execution, for which this Mortgage, or a copy of this Mortgage verified by affidavit, shall be a sufficient warrant; and thereupon a writ of possession may be issued forthwith, without any prior writ or proceeding whatsoever. Nonjudicial Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least tan (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rinhte and ram-4;- a„allahla n, MORTGAGE (Continued) Page 6 interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES. Unless otherwise provided by applicable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other provision of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lander. Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Julie A. Charles and includes all co-signers and co-makers signing the Note and all their successors and assigns. Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery Act, 424FpS.C. Section 6901, at seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean an} of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means Julie A. Charles. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and 8K 1938PG 1252 ° `' MORTGAGE (Continued) Page 7 include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Mortgage. Lender. The word "Lender" means ORRSTOWN BANK, its successors and assigns. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender Note. The word "Note" means the promissory note dated January 19, 2006, in the original principal amount of $850,000,00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of the Note is January 19, 2026. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: X (Seal) e Charles Si acknowledged and delivered in the presence of: X Witness CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, ORRSTOWN BANK, herein is as follows: STONEHEDGE OFFICE, 77 EAST KING STREET, P 0 BOX 250, SHIPPEN U . PA 17257 -Attorney or Agent for Mortgagee MORTGAGE (Continued) Page 8 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) ? ISS COUNTY OF 1 Lfilt ?k( ?t??I ) I QQn this, the day of 20 before me Ukf/!?n L. -iCYInerC-an, the undersigned Notary Public, personally appeared Julie A. Charles, known to me-(or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. ] In witness whereof,.) hereunto set my hand and official s t % Not" Seel Deborah L. BnNVW WA Not"PdWdary Public in and for the State of o + t Camp HE Boo Ganberiow cwty MY CM rftm Expim June 1%2006 Ma nIM. Pennsyhrarm Assocloft Of Nall las OXI938PG1254 - TRACT #1 ALL THAT CERTAIN tract of land located in Lower Mifflin Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a point in the State Road by comer of lands formerly of H.J. Fry, now or formerly of George Ginter; thence by said road, North 09 degrees East, 92.5 perches to corner of lands formerly of Jhon Barrick, now or formerly of Lucy Barrick; thence North 653/4 degrees East, 24 perches to a point; thence North 81% degrees East, 80 perches to a point at comer of lands formerly of Joseph Salisbury, now or formerly of Lehman J. Hurley; thence South 47'/4 degrees East, 105 perches to a point; thence South 40'/z degrees West, 12.1 perches to a stone; thence South 48'/4 degrees East, 29.2 perches to a corner of lands of W.H. McCrea Estate; thence South 443/4 degrees West, 18 perches to a point; thence South 323/4 degrees West, 38.5 perches to a point; thence North 52%2 degrees West, 47 perches to a point; thence South 363/4 degrees West, 64 perches to a stone in the public road leading to Bloserville; thence by said road and line of lands now or formerly of W.H. McCrea Estate, North 52'/4 degrees West, 31.8 perches to a post; thence North 77 degrees West, 24.3 perches to a post; thence North 791/2 degrees West, 32.3 perches to a stone, formerly a white oak; thence by lands formerly of H.J. Fry, now or formerly of George Ginter, North 133/4 degrees West, 22.4 perches to a stone, formerly a white oak; thence North 86 degrees West, 11.5 perches to a point in the State Road, the Place of BEGINNING BY 1938PG 1255 EXCEPTING and reserving therefrom three (3) lots or parcels of land as follows: 1. Lot sold to H.A. Hoover and Iva M. Hoover, husband and wife, by deed of Mervin D. Smith and Myrtle Caroline Smith, husband and wife, dated May 3, 1944, and recorded in Cumberland County Deed Book "V" Volume 12, Page 59. 2. Lot sold to H.A. Hoover and Iva M. Hoover, husband and wife, by deed of Mervin D. Smith and Myrtle Caroline Smith, husband and wife, dated December 1, 1945, and recorded in Cumberland County Deed Book "I", Volume 13, Page 510. 3. All that certain tract of land with an aluminum siding ranch house and adjoining garage thereon erected, situate in Lower Mifflin Township, Cumberland County, Pennsylvania, bounded and described in accordance with a subdivision survey prepared by Eugene A. Hockensmith, P.L.S., which survey is dated December 18, 1986, and recorded in Cumberland County Plan Book 52, Page 68, as follows: BEGINNING at a railroad spike in the centerline of L.R. 21082 at the southeast corner of lands now or formerly of George F. Ginter, et ux., which railroad spike is located 339.16 feet in an easterly direction along the centerline of L.R. 21082 from the intersection of the centerlines of L.R. 21082 and Pennsylvania Route No. 233; thence from the Point of Beginning and running along the lands now or formerly of George F. Ginter, et ux., the following two (2) courses and distances: (1) North 18 degrees 29 minutes 09 seconds West a distance of 27.11 feet to an iron pin on the northerly dedicated right-of-way line of L.R. 21082; and (2) North 18 degrees 29 minutes 09 seconds West a distance of 89.89 feet to an iron pin; thence along lands now or formerly of Franklin A. Oiler, et ux., North 18 degrees 29 minutes 09 seconds West a distance of 182.41 feet to an iron pin; thence along lands, of which this lot was formerly a part, about to be conveyed to Zane R. Highlands, the following five (5) courses and distances: (1) North 74 degrees 49 minutes 19 seconds East a distance of 243.50 feet to an iron pin; (2) South 53 degrees 24 minutes 51 seconds East a distance of 39.05 feet to an iron pin; (3) South 16 degrees 07 minutes 16 seconds West a distance of 288.48 feet to an iron pin; (4) South 25 degrees 52 minutes 05 seconds West a distance of 31.16 feet to an iron pin on the northerly dedicated right-of-way line of L.R. 21082; and (5) South 25 degrees 52 minutes 05 seconds West a distance of 26.89 feet to a railroad spike in the centerline of L.R. 21082; thence along the centerline of L.R. 21082 and a lot now or formerly of Walter G. Derr, et ux., North 85 degrees, 44 minutes 00 seconds West a distance of 7.00 feet to a P.K. Nail, thence continuing along the centerline of L.R. 21082 and lands now or formerly of Norman L. Reinford, Jr. et ux., North 85 degrees 44 minutes 00 seconds West a distance of 59.18 feet to a railroad spike, the Place of BEGINNING. CONTAINING a total area of 1.2860 Acres. OK I, 12 5S WEIGLE & ASSOCIATES. P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 SUBJECT to a 25 foot wide strip of land at the south end of the above-described lot which has been dedicated as a right-of-way for highway and utility purposes. BEING all of Lot No. 2 on the aforesaid subdivision plan, which is dated December 18, 1986, and recorded in Cumberland County Plan Book 52, Page 68. LOT No. 2 above described as the third lot or parcel of land excepted and reserved, is retained by Margaret R. Moore and is improved with an aluminum siding ranch house and block and frame garage with mailing address of R.D. #3 Box 2184, Newville, Pennsylvania 17241. THE LAND herein conveyed exclusive of the three (3) lots or parcels of land excepted and reserved; is all of a tract of land shown as No. 1 on said Final Subdivision Plan for Margaret R. Moore recorded in Plan Book 52, Page 68, and contains an area of approximately 135 acres on which there is erected a dwelling house, barn and other improvements with mailing address of R.D. #3, Box 2192, Newville, Pennsylvania 17241. BEING the same real estate which Margaret R. Moore, widow, by Deed dated March 12, 1987, and recorded in the Office of the Recorder of Deeds in the for Cumberland County, Pennsylvania, in Deed Book N-32, Page 713, conveyed to Zane R. Highlands and Vicki L. Highlands, Grantors herein. THE WITHIN conveyance is made under and subject, nevertheless, to building and use restrictions of record and to easements visible or of record. TRACT #2 ALL THAT CERTAIN tract of land with the improvements thereon erected situate in Lower Mifflin Township, Cumberland County, Pennsylvania, bounded and described according to the Land Subdivision for Iris McCrea as prepared by Samuel David Rynyon, R.S., dated February 21, 1989 and recorded in the office of the Recorder of Deeds in and for Cumberland County in Plan Book 58, Page 67, as follows, to wit: BEGINNING at a railroad spike set in S.R. 233 at the northwest corner of land now or formerly of Spencer A. Stamy; thence in said S.R. 233 along lands now or formerly of Joseph S. Blessing and lands now or formerly of Mary A. Salisbury, North nine (09) degrees thirty-two (32) minutes forty-seven (47) seconds East, one hundred eighty-eight and thirty-seven hundredths (188.37) feet to an existing nail and washer; thence in said S.R. 233 and along lands now or formerly of Richard C. Duble, North nine (09) degrees twenty-four (24) minutes forty-one (41) seconds East, three hundred sixty-nine and sixty-seven hundredths (369.67) feet to an existing nail and washer; thence in said S.R. 233 and along lands now or formerly or Richard C. Johnson and Nancy B. Johnson, North nine (09) degrees fifty-two (52) minutes fifty-three (53) seconds East, one hundred twenty-one and B1% 1938PG 1257 WEIGLE & ASSOCIATES. P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPENSSURG. PA 17257-1397 ninety-six hundredths (121.96) feet to a railroad spike set; thence along same, North twelve (12) degrees thirty-six (36) minutes twenty-four (24) seconds East, one hundred fifty and zero hundredths (150.00) feet to a railroad spike set; thence in said S.R. 233 and along Lot #1 on the above-referenced plan, North eighteen (18) degrees five (05) minutes twenty-six (26) seconds East, two hundred twenty- six and thirty-five hundredths (226.35) feet to a railroad spike set; thence by said Lot No. #1 the following eight courses and distances; North eighty-six (86) degrees thirty (30) minutes fifty-eight (58) seconds East, five hundred eighteen and eight hundredths (518.98) feet to an iron pin set; North seventy-seven (77) degrees thirty- one (31) minutes fifty-five (55) seconds East, eighty-six and twenty-six hundredths (86.26) feet to an iron pin set; North sixty-five (65) degrees forty-two (42) minutes twenty-six (26) seconds East, sixty-six and twenty-two hundredths (66.22) feet to an iron pin set, North sixty-two (62) degrees twenty-four (24) minutes fifty-six (56) seconds East, three hundred eighty and forty-nine hundredths (380.49) feet to an iron pin set; North fifty (50) degrees thirteen (13) minutes twenty (20) seconds East, one hundred sixty-six and thirty-one hundredths (166.31) feet to an iron pin set; North fourteen (14) degrees twenty-nine (29) minutes fifty (50) seconds West, four hundred ten and twenty hundredths (410.20) feet to an existing post; North eighty (80) degrees thirty-seven (37) minutes twenty-fiv (25) seconds East, eighty- seven and zero hundredths (87.00) feet to an iron pin set; North six (06) degrees ten (10) minutes three (03) seconds West, three hundred forty-five and ninety-nine hundredths (345.99) feet to an iron pin set at stones; thence along lands now or formerly of Franklin A. Oiler the following seventeen courses and distances: South fifty (50) degrees fifty-five (55) minutes twenty-eight (28) seconds East, one hundred thirty-seven and twenty-four hundredths (137.24) feet to an existing stone pile; South seventy-seven (77) degrees fifty-three (53) minutes fifteen (15) seconds East, three hundred sixty-three and one hundredths (363.01) feet to a point; North sixty-two (62) degrees forty-three (43) minutes thirty-five (35) seconds East, one hundred and forty-two hundredths (142.00) feet to a point; North thirty-nine (39) degrees five (05) minutes thirteen (13) seconds East, one hundred nine and ten hundredths (109.10) feet to a point, North sixty-eight (68) degrees twenty-four (24) minutes fifteen (15) seconds East, seventy-two and eighteen hundredths (72.18) feet to a point, North eighty-four (84) degrees twenty-five (25) minutes fifty (50) seconds East, fifty-four and twenty-five hundredths (54.25) feet to a point; North sixty-one (61) degrees thirty-eight (38) minutes fifty-two (52) seconds East, one hundred twenty-four and eight hundredths (124.08) feet to a point; North eighty- seven (87) degrees nineteen (19) minutes eighteen (18) seconds East, forty-one and seventy-eight hundredths (41.78) feet to a point; North seventy-two (72) degrees thirty-one (31) minutes twenty-eight seconds East, three hundred thirty-seven and twenty-two hundredths (337.22) feet to a point; North forty (40) degrees twelve (12) minutes thirty (30) seconds East, fifty and eighty-two hundredths (50.82) feet to a point; North seventy-two (72) degrees twenty (20) minutes twenty-six (26) seconds East, one hundred six and sixty hundredths (106.60) feet to an existing stone pile, North twenty-nine (29) degrees thirty-nine (39) minutes thirty-two (32) (U)141938PG 1258 WEIGLE 6 ASSOCIATES. P.C. - ATTORNEYS AT LAW -- 126 EAST KING STREET - SHIPPENSBURG. PA 17257-1397 seconds East, one hundred sixty-nine and sixty-three hundredths (169.63) feet to a point; south eighty-eight (88) degrees thirty-five (35) minutes thirty-two (32) seconds East, fourteen and eighty-four hundredths (14.84) feet to an existing iron pin set at stone; North thirty-one (31) degrees one (01) minute thirty-seven (37) seconds East, one hundred sixty-five and zero hundredths (165.00) feet to an existing iron pin set at stones; North seventy-nine (79) degrees one (01) minute thirty-seven (37) seconds East, one hundred forty-eight and fifty hundredths (148.50) feet to an existing iron pin at stones; South twenty-six (26) degrees thirteen (13) minutes twenty-three (23) seconds East, one hundred ninety-eight and zero hundredths (198.00) feet to an existing post; North seventy-nine (79) degrees thirty-five (35) minutes twenty-six (26) seconds East, one thousand seventy-one and ninety-six hundredths (1,071.96) feet to an existing iron pin at stones; thence along lands now or formerly of Grove Brother Lumber Co., South twenty-eight (28) degrees forty-eight (48) minutes fifty-three (53) seconds East, one thousand twenty-seven and eight-four hundreds (1,027.84) feet to an iron pin set at stones; thence along lands now or formerly of Andrew M. McCrea, South two (02) degrees fifty-five (55) minutes forty-five (45) seconds East, one thousand seventy-two and fifty-seven hundredths (1,072.57) feet to an iron pin set at stones; thence along same, South eighty-two (82) degrees forty (40) minutes forty-one (41) seconds West, two thousand two hundred eighty-two and twenty-two hundredths (2,282.22) feet to an existing stone pile; thence along same, South eighty-one (81) degrees fifty-three (53) minutes two (02) seconds West, seven hundred forty-seven and eighty-seven hundredths (747.87) feet to an existing post; thence along lands now or formerly of Zane Highlands, South eighty-two (82) degrees fifteen (15) minutes fifty-five (55) seconds West, one thousand two hundred ninety-five and ninety- three hundredths (1,295.93) feet to an iron pin set at stones; thence along same and lands now or formerly of Spencer A. Stamy, South sixty-five (65) degrees twelve (12) minutes thirteen (13) seconds West, four hundred six and ninety-nine hundredths (406.99) feet to a railroad spike set, the place of BEGINNING. BEING Lot No. #2 on the Land Subdivision for Iris McCrea and containing 165.7265 acres net area. BEING the same premises conveyed by Iris W. McCrea, widow, by deed dated June 19, 1989 and recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Deed Book "A," Volume 23, Page 124, unto Zane R. Highlands and Vicki L. Highlands, the Grantors herein. II AND BEING the same which Zane R. Highlands and Vicki L. Highlands, husband and wife, by deed dated April 1, 1996 and recorded in Cumberland County Deed Book 137 at Page 170, conveyed to Zane R. Highlands and Vicki L. Highlands, as Tenants-in-Common, each to an undivided one-half (lit) interest, Grantors herein. B1{ 19 3 8 PG 1259 WEIGLE & ASSOCIATES. P.C. - ATTORNEYS AT LAW - 126 EAST KING STREET - SHIPPEN56URG. PA 17257-1397 Tract 2 herein is subject to rights of the Grantors, their heirs and assigns to use Private Right-of-Way A and Private Right-of-Way B as more fully shown and described in Cumberland County Plan Book 91, Page 94, for ingress, egress and regress to and from other real estate retained Grantors, said real estate more fully described in Cumberland County Deed Book 34-0 at Page 368. A private Right-of Way Agreement will be recorded simultaneously herewith. And the said Grantors hereby covenants and agrees that they will warrant specially the property hereby conveyed. '.1 014 f.?J G ,I BKI938PG1260 7c1uS ]Sad orjcj .:.G5-/ /oa9 4&01111? ??OIVN 0 XXXX BANK A Tradition of Excellence April 2, 2008 k - L/V2aaS`ya0/ COPY Julie A. Charles Return Receipt Requested Wishing Well Eques. Ctr. Inc. and Regular U. S. Mail 125 Hill Lane Newville, Pa. 17241 ACT 97 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on our home is in default and the lender intends to foreclose. Specific information about the nature of the default Is Provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM HEMAP may be able to help to save your home. This Notice explains how the ro ram works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE Take this Notice with you when you meet with the Counseling Agency. 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 Housina Finance Agency 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. P.O. Box 250 - Shippensburg, PA 17257 • 717.530.3530 - 717.532.4143 fax EXHIBIT "D" LA NOTIFICACION EN ADJUNTO ES DE SOMA IMPORTANCIA, PLIES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): Julie A. Charles PROPERTY ADDRESS: 125 Hill Lane, 75 Hill Lane & 98 Hill Lane Newville. Pa. 17241 LOAN ACCT. NO.: 26470259001 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER:ORRSTOWN BANK 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. 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 THE NEXT (30) DAYS. 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.) If you have tried and are unable to resolve this problem with the lender, 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. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. 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 Mortgage Assistance.) 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: 125 Hill Lane, 75 Hill Lane & 98 Hill Lane, Newville, Pa. 17241 IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: January 19th--$ 4,636.37, February 19th--$ 7,036.17 and March 19th--$ 7,036.17. Other charges (explain/itemize): LATE CHARGES--$ 2,088.46 TOTAL AMOUNT PAST DUE: $ 20,797.17 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this $ 20,797.17. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash cashier's check certified check or money order made Payable and sent to: ORRSTOWN BANK ATTN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 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 mortgage 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 1301 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 up to one hour before the Sheriffs Sale. You may do so by paying 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 Sheriff's 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 Sheriff's Sale of the mortgaged property could be held would be approximately 5 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 LENDER: Name of Lender: Orrstown Bank Address: P.O. Box 250, 77 East Kin Street Shit mensbura, PA 17257 Phone Number: 717 _ 530-2661 Fax Number: (717) 532-4099 Contact Person: Bets y J. Smith 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. ASSUMPTION OF MORTGAGE - You MAY NOT 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 THOE 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 DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, 10 -L- 9. BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3`d Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6m Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region Weatherization Office 1514 Derry Street 917 Mifflin Street Harrisburg, PA 17104 Huntingdon, Pa. 16652 (717) 232-9757 (914) 643-2343 Fax (717) 234-2227 Fax (717) 637-3294 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Financial Services Unlimited 31 West 3`d Street Waynesboro, PA 17268 (717) 762-3285 v 0 g 7005 1820 0005 T? c ? z ? t p to cm in y O $ T fA y \ O 3 33 .n c o m ?. ° O ' ^ N m O ! 0? N O o x yy N Z v N ?o z m O YI of m i S O m N k, % q z o r \ V \ z L S Z 1, t woo diz W8*4lvvv BOOZ CO MdV 92ViC 05030 $ SAMM •IN"A rasa. A.' c GI J i? f O C3 Ln E-' 03 ru C3 O O Q Ln C' 0" Ln L-j L-j O Q .A EXHIBIT "E" n a i 6651 1009 ORRSTOWN BANK IN THE COURT OF COMMON PLEAS OF 77 EAST KING STREET CUMBERLAND COUNTY, PENNSYLVANIA SHIPPENSBURG, PA 17257 : Plaintiff v NO. 2010-1537 CIVIL TERM /~ . ;~~ : ~ JULIE A. CHARLES . / r- ~ ~ ~'j~ .. J ~ .,J j.., ~~` 125 HILL LANE MORTGAGE FORECLOSURE f= ~ : ~` ~.-`~ r = NEWVILLE, PA 17241, : ,, : r~~ a-~ Defendant : r..: -~ z PRAECIPE TO ENTER DEFAULT JUDGMENT ~ ..`. PURSUANT TO Pa.R.C.P. 1037 ®"' TO THE PROTHONOTARY: Please enter judgment in favor of the Plaintiff, Orrstown Bank and against the Defendant, Julie A. Charles, for failure to file an answer to the Complaint of Plaintiff. A true and correct copy of the Notice of Default is appended hereto as Exhibit "A." A true and correct copy of the Certificate of Mailing for the Notice of Default is appended hereto as Exhibit "B." I certify that the Notice of Default was given in accordance with Pa.R.C.P. 237.1. Plaintiff requests judgment in the amount of $883,029.60 set forth in the Complaint together with interest of $15,343.15 to May 19, 2010 with a per diem of $168.61 for a total of $898,372.75. Respectfully submitted, ~~~ ~l~I U~' ~ ~~r~ ARIC S RER J ~` David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA N0.2010-1537 CIVIL TERM JULIE A. CHARLES 125 HILL LANE MORTGAGE FORECLOSURE NEWVILLE, PA 17241, Defendant TO: Julie A. Charles 125 Hill Lane Newville, Pennsylvania 17241 Date of Notice: April 13, 2010 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 B iCHERER r David A. Baric, Esquire 19 West South Street Carlisle, PA 17013 (717) 249-6873 EXHIBIT "A" U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: ~avrc. One piece of ordinary mail addressed to ~u1iti Il. Chorl~s d n c, iL o ~~ I•- cn wch• !, ~ ~~o oo_I- cL..v,om:~ •rn _~ u a: o W U ~ ~5 1~~11 anti W PA 1'ta41 ` ~ W { ltrl~n~itly,_ - - - - - o - ; <, t. o, PS Form 3817, January 2001 EXHIBIT "B" CERTIFICATE OF SERVICE I hereby certify that on May 26, 2010, I, David A. Baric, Esquire, of Baric Scherer did serve a copy of the Praecipe To Enter Default Judgment Pursuant To Pa.R.C.P. 1037, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Julie A. Charles 125 Hill Lane Newville, Pennsylvania 17241 ~~ David A. Baric, Esquire ORRSTOWN BANK IN THE COURT OF COMMON PLEAS OF 77 EAST KING STREET CUMBERLAND COUNTY, PENNSYLVANIA SHIPPENSBURG, PA 17257 Plaintiff v• NO. 2010-1537 CIVIL TERM JULIE A. CHARLES : 125 HILL LANE MORTGAGE FORECLOSURE NEWVILLE, PA 17241, Defendant NOTICE OF JUDGMENT PURSUANT TO Pa.R.C P 236 TO: Julie A. Charles 125 Hill Lane Nevwille, Pennsylvania 17241 Notice is hereby given to you of entry of a judgment against you in the above matter. ~. Prothonotary ~~ ---_. Date: ~~(~~O ORRSTOWN BANK 77 EAST KNG STREET SHIPPENSBURG, PA 17257 Plaintiff v. JULIE A. CHARLES 125 HILL LANE NEWVILLE.. PA 17241, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010-1537 CIVIL TERM MORTGAGE FORECLOSURE • fr' i,_j ;'? cn 7 -0 PRAECIPE TO VACATE a TO THE PROTHONOTARY: Kindly mark the judgment entered in the above matter on May 26, 2010 as vacated without prejudice. Respectfully submitted, B C SCHERER David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff r 6y E' a P'?` ?-?? ch rl? i 7601 AAay71-31 /2 dab.dir/orrstownbank/charles/mortgage/vacatejudgment.pra CERTIFICATE OF SERVICE I hereby certify that on August 25, 2010, I, David A. Baric, Esquire of Baric Scherer, did i serve a copy of the Praecipe To Vacate, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Julie A. Charles 125 Hill Lane Newville, Pennsylvania 17241 1V ?i I -Am? David A. Baric, Esquire