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Home My WebLink About10-20871 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, : DOCKET NO. 10 - ap87 OA- Vi I Tel* successor in interest to CommunityBanks, Plaintiff : CONFESSION OF JUDGMENT V. HAMPTON CONSTRUCTION M _ ANAGEMENT, LIMITED, Defendant PREVIOUSLY ASSIGNED TO: cn CONFESSION OF JUDGMENT y =' Pursuant to the authority contained in the warrant of attorney, the original or a na copy which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against the Defendant as follows: a. Principal b. Interest to March 9, 2010 C. Late Charges d. Satisfaction Fees e. Attorneys' Fees TOTAL: Date: March ??- 2010 $492,757.64 $ 14,413.16 $ 749.40 $ 85.00 50 717.08 $558,722.28, plus interest, other expenses, fees and costs Respectfully submitted, McNees Wallace & Nurick LLC By. ?i S. Shuff, Esquire upreme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff 47.50 PB A'ny w !8( sV P.f a39 q94 k)o+iu k" COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, : DOCKET NO. 16 ? successor in interest to CommunityBanks, : Plaintiff : CONFESSION OF JUDGMENT V. HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, : Defendant PREVIOUSLY ASSIGNED TO: N/A COMPLAINT FOR CONFESSION OF JUDGMENT UNDER RULE 2951 1. The Plaintiff, Susquehanna Bank, successor in interest to CommunityBanks, is a Pennsylvania financial institution with an office located at 100 Sterling Parkway, Suite 100, Mechanicsburg, PA 17050 ("Plaintiff'). 2. The Defendant, Hampton Construction Management, Limited, is a Pennsylvania corporation with a last known address of 3607 Hartzdale Drive, Camp Hill, PA 17011 ("Defendant"). 3. The Defendant executed and delivered to the Plaintiff a Commercial Revolving Credit Line Agreement dated April 23, 2007 (the "Note") for a line of credit ("Loan") in the original principal amount of Five Hundred Thousand Dollars ($500,000), a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "A" and made a part hereof. 4. The Defendant executed and delivered to the Plaintiff a Disclosure for Confession of Judgment, a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "B" and made a part hereof. 5. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 6. There has not been any assignment of the Note. 7. Judgment has not been entered on the Note in any jurisdiction. 8. The Defendant is in default of the Defendant's obligations to make payment to the Plaintiff as required in the Note, as a result of which the Plaintiff has notified the Defendant of the termination of the Loan and that the entire outstanding balance of the Loan is due and payable in full. A copy of the Plaintiffs notice to the Defendant is attached hereto as Exhibit "C" and made a part hereof. 9. The amount due to the Plaintiff as a result of the Defendant's default is as follows, as of March 9, 2010: a. Principal $492,757.64 b. Interest $ 14,413.16 C. Late Charges $ 749.40 d. Satisfaction Fees $ 85.00 e. Attorneys' Fees $ 50,717.08 TOTAL: $558,722.28 10. Interest continues to accrue at the variable rate per day provided in the Note through the date of payment, including on and after the date of entry of judgment on this Complaint. WHEREFORE, Plaintiff, Susquehanna Bank, demands judgment against the Defendant, Hampton Construction Management, Limited, in the amount of Five Hundred Fifty-Eight Thousand Seven Hundred Twenty-Two and 28/100 Dollars ($558,722.28), plus interest at the variable rate per day provided through the date of payment, including on and after the date of entry of judgment on this Complaint, and for other expenses, fees and costs to which the Plaintiff may be entitled. Respectfully submitted, McNees Wallace & Nurick LLC Date: March, 2010 By: e /eCO6 S ff, Esquire r ID #24848 100 Pine1Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, successor in interest to CommunityBanks, Plaintiff V. HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, Defendant : DOCKET NO. CONFESSION OF JUDGMENT PREVIOUSLY ASSIGNED TO: N/A VERIFICATION I, Robert Rahal, Senior Vice President for Susquehanna Bank, being authorized to do so on behalf of Susquehanna Bank, hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. SUSQUEHANNA BANK Date: G -Dr-( a By ? Ze "i% ? f Robert Rahal Senior Vice President Hampton Construction Management, Limited (TIN 25-1800323) 3607 Hartzdale Drive Camp Hill, PA 17011 CREDIT LIMIT: $500,000.00 CommunityBanks Camp Hill 201 St. Johns Church Road Camp Hill, PA 17011 (717) 909-1590 DATE OF AGREEMENT: April 23, 2007 Introduction. This Commercial Revolving Credit Line Agreement ("Agreement") governs Borrower's line of credit (the "Credit Line" or the "Credit Line Account") issued through CommunityBanks. Borrower agrees to the following terms and conditions: Promise to Pay. Borrower promises to pay CommunityBanks, or order, t e total of all credit advances and FINANCE CHARGES, together with all costs and expenses for which Borrower is responsible under this A semen t or under "a Security Agreement" which secures Borrower's Credit Line. Borrower will pay Borrower's Credit Line according to the pa ment terms set forth below. If there is more than one Borrower, each is Jointly and severally liable on this Agreement. This means Lender car require any Borrower to pay all amounts due under this Agreement, including credit advances made to any Borrower. Each Borrower authji izes any other Borrower, on his or her signature alone, to cancel the Credit Line, to request and receive credit advances, and to do all other ngeneessary to carry out the terms of this Agreement. Lender can release any Borrower from responsibility under this Agreement, and the are will remain responsible. Term. The term of Borrower's Credit Line will begin as of the date of is Agreement ("Opening Date") and will continue until termination of Borrower's Credit Line Account. All indebtedness under this Agreementh not already paid pursuant to the payment provisions below, will be due and payable upon termination. The draw period of Borrower's CreditlUne will begin on a date, after the Opening Date, when the Agreement is accepted by Lender in the Commonwealth of Pennsylvania, following the perfection of the security agreement, and the meeting of all of Lender's other conditions and will continue as follows: The Draw Period; will terminate on the Annual Review Date, and shall be subject to the renewal provisions of this Agreement. Borrower may obtain credit advances during this; period ("Draw Period"). 0 Demand Feature. Notwithstanding the Default section herein, all outstanding indebtedness under this Agreement shall be due and payable upon demand by Lender. 0 Minimum Payment. Borrower's "Regular Payment" will equal the amount of BorroweJ's accrued FINANCE CHARGES or $1.00, whichever is greater. Borrower's payments will be due monthly. An increase in the ANNUAL PEREENTAGE RATE may increase the amount of Borrower's Regular Payment. Borrower agrees to pay not less than the Minimum Payment on or before the due date indicated on Borrower's periodic billing statement. Balloon Payment. Borrower's Credit Line Account is payable in full upon termination in :a single balloon payment. Borrower must pay the entire outstanding principal, interest and any other charges then due. Unless Itherwise required by applicable law, Lender is under no obligation to refinance the balloon payment at that time. Borrower may be required to make payments out of other assets Borrower owns or find a lender, which may be Lender, willing to lend Borrower the money. If Borrower refinances the balloon, Borrower may have to pay some or all of the closing costs normally associated with a new credit line account, even if ,orrower obtains refinancing from Lender. How Borrower's Payments Are Applied. Unless otherwise agreed or required by applicable law, payments and other credits will be applied to interest, then to unpaid principal, late charges and other charges, and than to any amounts that exceed Borrower's Credit Limit. All payments due hereunder shall be due without demand, and all payments due hereunder shall be paid at any of Lender's branch offices.. Receipt of Payments. All payments must be made by a check, automatic account debit, electronic funds transfer, money order, or other instrument in U.S. dollars and must be received by Lender at the remittance address shown on Borrower's periodic billing statement. Payments received at that address prior to close of business day on any business day will be credited to Borrower's Credit Line as of the date received. If Lender receives payments at other locations, such payments will be credited promptly to Borrower's Credit Line, but crediting may be delayed for up to five (5) days after receipt. Credit Limit. This Agreement covers a revolving line of credit for the principal amount of Five Hundred Thousand & 00/100 Dollars ($500,000.00), which will be Borrower's "Credit Limit" under this Agreement. Borrower may borrow against the Credit Line, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit Limit. Borrower's Credit Limit is the maximum amount Borrower may have outstanding at any one time. Borrower agrees not to attempt, request, or obtain a credit advance that will make Borrower's Credit Line Account balance exceed Borrower's Credit Limit. Borrower's Credit Limit will not bei increased should Borrower overdraw Borrower's Credit Line Account. If Borrower exceeds Borrower's Credit Limit, Borrower agrees to repay immediately the amount by which Borrower's Credit Line Account exceeds Borrower's Credit Limit, even if Lender has not yet billed Borrower. Any amount greater than the Credit Limit will be secured by the security agreement covering Borrower's property. Charges to Borrower's Credit Line. Lender may charge Borrower's Credit Line to pay other fees and costs that Borrower is obligated to pay under this Agreement, the security agreement or any other document related to Borrower's Credit Line. In addition, Lender may charge Borrower's Credit Line for funds required for continuing insurance coverage as despribed in the paragraph titled "Insurance" below or as described in the security agreement for this transaction. Any amount so charged tottorrower's Credit Line will be a credit advance and will decrease the funds available, if any, under the Credit Line. However, Lender has no obligation to provide any of the credit advances referred to in this paragraph. Effective Disbursement Date. The words "Effective Disbursement Date" as used in this Agreement mean a date, after the Opening Date, when the Agreement is accepted by Lender in the Commonwealth of Pennsylvania following. the perfection of Lender's security agreements and the meeting of all of Lender's other conditions. Borrower agrees and understands th$t Borrower may not receive any credit advance under Borrower's Credit Line until after the Effective Disbursement Date of this Agreement. r Credit Advances. After the Effective Disbursement Date of this Agreement, Borrower may obtain credit advances under Borrower's Credit Line as follows: I Telephone Request. Requesting a credit advance from Borrower's Credit Line to be applied to Borrower's designated account by telephone. Except for transactions covered by the federal Electronic Fund Transfers Act 'and unless otherwise agreed in your deposit account agreement, Borrower acknowledges and Borrower agrees that Lender does not accept responsibility for the authenticity of telephone instructions and that Lender will not be liable for any 1033, expense, pr cost arising out of any telephone request, including any fraudulent or unauthorized telephone request, when acting upon such Instructions! believed to be genuine. Requests in Person. Requesting a credit advance in person at any of Lender's authorized locations. Other Methods. CommunityBanks Online Banking. If there is more than one person authorized to use this Credit Line Account, Borrower agrees not to give Lender conflicting instructions, such as one Borrower telling Lender not to give advances to the other. i I Transaction Requirements. The following transaction limitations will apply to the use of Borrower's Credit Line: In Person Request Limitations. The following transaction limitatio;rs will apply to Borrower's Credit Line and requesting an advance in person. Minimum Advance Amount. The minimum amount of any credit advance that can be made on Borrower's Credit Line is 5100.00. Other Transaction Requirements. Borrower may request advances in person from any Toiler at any CommunityBanks Office. Borrower will be required to provide proper identification. G Other Methods Limitations. The following transaction limitations will apply to Borrower's Credit Line and accessing by other methods. Other Transaction Requirements. Using CommunityBanks Online Banking,)you may transfer funds from your Commercial Line of Credit to your deposit account. Borrower must execute a CommunityBanks OnLine For Business Agreement to obtain access to CommunityBanks Online Banking. All transfers are subject to the provisions set forth in the CommunityBanks OnLine For Business Agreement as well as the provisions in this Credit Line Agreement. Exceptilfor transactions covered by the federal Electronic Fund Transfers Act and unless otherwise agreed in your deposit a count agreement, Borrower acknowledges and Borrower agrees that Lender does not accept responsibility for the authenticity of C mmunityBanka Online Banking instructions and that Lender will not be liable for any loss, expense, or cost arising out of any CommunityBankq OnLine Banking request, including any fraudulent or unauthorized CommunityBanks OnLine Banking request, when acting upon such Instructions believed to be genuine. E Y. 1,.. t,:? ".Q -)l i COMMEW L REVOLVING,, REDIT LINE _3EEMENT COMMf :IAL REVOLVING CREDIT LINE A. ,:EMENT Loan No: 901017564 rr• .:L .._?, stay or injunction), and appeals. If not prohibited by applicable le provided by law. Rate Increase. In addition to Lender's other rights on default, Lenc percentage points over the then applicable ANNUAL PERCENTAGE applicable law. If Lender does not increase the interest rate on d( declares a default. Delay in Enforcement. Lender may delay or waive the enforcement of any other right. If Lender delays or waives any of Lender's rights, Le notice. For example, not terminating Borrower's account for non-payme in the future if Borrower has not paid. Termination by Borrower. If Borrower terminates this Agreement, Bor under this Agreement will remain in full force and effect until Borrower f Prepayment. Borrower may prepay all or any amount owing under this receive all accrued FINANCE CHARGES, and other charges, if any. Borrower of Borrower's obligation to continue to make Borrower's Minir the Credit Line. Borrower agrees not to send Lender payments marked ' such a payment, Lender may accept it without losing any of Lender's any further amount owed to Lender. All written communications c instrument that indicates that the payment constitutes "payment in fi limitations or as full satisfaction of a disputed amount must be mailed or Camp Hill, PA 17011. Notices. All notices will be sent to Borrower's address as shown in Bor different address if Borrower gives Lender written notice of a different a( Borrower's mailing address. Page 3 Borrower also will pay any court costs, in addition to all other sums y increase the variable interest rate under this Agreement to 2.000 . The interest rate will not exceed the maximum rate permitted by it will continue at the variable rate in effect as of the data Lender Y of Lender's rights under this Agreement without losing that right or er may enforce that right at any time in the future without advance will not be a waiver of Lender's right to terminate Borrower's account rer must notify Lender. Despite termination, Borrower's obligations paid Lender all amounts due under this Agreement. dit Line at any time without penalty, except Lender will be entitled to rments in excess of Borrower's Minimum Payment will not relieve n Payments. Instead, they will reduce the principal balance owed on d in full", "without recourse", or similar language. If Borrower sends is under this Agreement, and Borrower will remain obligated to pay canning disputed amounts, including any check or other payment of the amount owed or that is tendered with other conditions or ivered to: CommunityBanks, Camp Hill, 201 St. Johns Church Road, Credit Line application. Notices will be mailed to Borrower at a Borrower agrees to advise Lender promptly if Borrower changes Credit Information and Related Matters. Borrower authorizes Lender to release information about Borrower to third parties as described in Lender's privacy policy and Lender's Fair Credit Reporting Act notice, provided Borrower did not opt out of the applicable policy, or as permitted by law. Borrower agrees that, upon Lender's request, Borrower will provide Lender with a current financial statement, a new credit application, or both, on forms provided by Lender. Borrower also agrees Lender may obtain credit reports on Borrower at any time, at Lender's sole option and expense, for any reason, including but not limited to determining whether there has been an adverse change in Borrower's financial condition. Based upon a material adverse change in Borrower's finan6ial condition (such as termination of employment or loss of income), Lender may suspend Borrower's Credit Line. Lender may require a new appraisal of the Property which secures Borrower's Credit Line at any time, including an internal inspection, at Lender's sole option and expense. Transfer or Assignment. Without prior notice or approval from Borrowjer, Lender reserves the right to sell or transfer Borrower's Credit Line Account and Lender's rights and obligations under this Agreement to another lender, entity, or person, and to assign Lender's rights under the security agreement. Borrower's rights under this Agreement belong to Borrower only and may not be transferred or assigned. Borrower's obligations, however, are binding on Borrower's heirs and legal represetrtatives. Upon any such sale or transfer, Lender will have no further obligation to provide Borrower with credit advances or to perform any other obligation under this Agreement. 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. Annual Review Date. The Annual Review Date shall begin on April 30, 2008, and shall continue on the same day of each year thereafter until the termination of this Agreement by either the Borrower or the Lender. The annual renewal may be subject to a non-refundable fee. Lender Accounts. As additional security for the performance by Borrower hereunder, Borrower hereby grants to Lender a Security Interest in any and all deposit accounts of whatever nature, which Borrower maintains, with Lender:,-Borrower acknowledges that Lender is relying upon the deposit and other relationships between Borrower and Lender in establishing the relati6nship by this Agreement, that Lender's interests can be protected only through the monitoring of deposit and loan accounts of Borrower, and khat such deposit and other relationships are part of the consideration in this matter. Accordingly, Borrower covenants and agrees that, during the term hereof, Borrower will maintain deposit accounts with Lender, except with the written approval of Lender, which approval Lender reservA the right to refuse. Time is of the Essence. Time is of the essence in the performance of this Agreement. Renewal Provision. Subject to the conditions of this Agreement, Lender shall, on the annual review date, renew the Draw Period of this Agreement for an additional period specified in the commitment letter, subject to the following conditions: Is) Prior to the Review Date, the Borrower shall request that the Credit Line be renewed. (b) All conditions for granting of the Credit Line shall comply with the then applicable loan policies of the Lender. No event which could, under the terms of this Agreement, constitute an event of default (whether or not Lender has declared such event to be an event of default) shall have occurred prior to the Review Date. (c) No substantial change in the credit status of Borrower shall have occurred, including, but not limited to, the imposition of liens upon any of the Personal Property Collateral (whether or not such lien or liens have a priority superior to that of Lender's interest) or the Real Estate Collateral, the institution of legal process against Borrower, or adverse changes in Borrower's financial condition, any of which Lender reasonably deems to negatively affect the credit worthiness of Borrower. (d) No financial analysis ratio ordinarily applied by Lender in the analysis of credit worthiness, as applied to Borrower, shall be in noncompliance with the provision of Lender's then-current loan policy applicable to such ;financial analysis ratio. (e) Borrower has not demonstrated an inability to meet obligations as the I'same become'due. If) The Interest rate applicable to the outstanding balance of the Credit L)ne shall be subject to adjustment on each Review Date, based upon a credit analysis of Borrower by Lender and upon Lender's then-current loo ,' policy. (g) Lender reserves the right to revise the Credit Amount on each Review Date, reducing or increasing the same in the event that credit conditions so warrant. IN On the Review Date, in the event of renewal of the Credit Line, Borrower shall reaffirm all provisions of this Agreement, effective as of the Review Date. i 0) In the event that Borrower has not requested renewal of this Credit Line by the Review Date, this Credit Line shall be considered, at the option of the Lender, as expired, and Lender shall have no obligation to make additional advances. Additionally, any principal sum outstanding under this Credit Line plus accrued interest thereon may, at Lender's optl?n, become im(nediately due and payable. In the event that any condition is not met, Lender may elect, at its optior , not to renev? the Credit Line and may demand immediate payment in full of all outstanding balances. Warranties of Borrower. In order to induce Lender to enter into this Agreement and to extend the proceeds of the Credit Line, Borrower hereby warrants as follows, and all such warranties shall remain true and correct during the enjire term of this Agreement: (a) Borrower acknowledges receipt of all loan proceeds made as advances under this Credit Line and deposited to Borrower's Authorized Deposit Account. For value received and intending to be legally bound, Borrower does hereby promise to repay all sums due, together with accrued interest thereon, in lawful money of the United States to the Lender upon demand. (b) All representations made in the Credit Line Application, all terms of which are incorporated herein and are made a part hereof, are true and correct, and Borrower has not omitted therefrom any material fact. (c) If Borrower is a corporation, Borrower is in good standing with the Department of State in which Borrower is incorporated and is authorized to do business in the Commonwealth of Pennsylvania. In addition, all corporate action required to authorize the execution of this Agreement has been taken by the shareholders and/or directors of the corporation, and the officers of the corporation executing this Agreement are authorized to do so on behalf of the Corporation. (d) In the event that Borrower is a partnership, the execution of this Agreement is dul ' between the partners, and all partners have unanimously agreed thereto ahd the undersigned are authoeri edetoe execute this Agreement on behalf of the partnership. (e) The execution of this Agreement does not violate any applicable federal or state statute or local ordinace, any provision of any agreement governing the operation of Borrower, any bylaws of Borrower, or any federal, state or local judicial or administrative decree affecting Borrower. COMMF 1AL REVOLVING CREDIT LINE A _-:MENT Loan No: 901017564 (Continued) Page 5 a v This Agreement is dated April 23, 2007. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: HAMPTON CONSTRUCTION MANAGEME , IMITED By: r "r 'Seal) Harry 1. Morris Jr Preside t Hampton Construction Management, Limited ATTEST: Secretary or Assistant Secretary ( Corporate Seal ) Effective Disbursement Date: { _- LwlF !NO! MMwp? M.Y Mlnu MwrN .{ UMWANU{Cr11W{DL.1C Tk]M13 MJ! DISCLC JHE FOR CONFESSION OF J ),iMENT 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. Any item above containing "'"•" has been omitted due to text length limitations. Declarant: Hampton Construction Management, Limited (TIN: Lender: CommunityBanks 25-1800323) Camp Hill 3607 Hartzdale Drive 201 St. Johns Church Road Camp Hill, PA 17011 Camp Hill, PA 17011 (717) 909-1590 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS -2 3 "1 DAY OF Aa,-l , 20A CREDIT AGREEMENT FOR $500,000.00 OBLIGATING DECLARANT TO REPAY ALL AMOUNTS DUE UN ER THE CREDIT AGREEMENT. A. THE UNDERSIGNED UNDERSTANDS THAT THE CREDIT AGREEMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST DECLARANT IN COURT, AFTER A DEFAULT UNDER THE CREDIT AGREEMENT, WITHOUT ADVANCE NOTICE TO DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE CREDIT AGREEMENT, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE CREDIT AGREEMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S ENTERING JUDGMENT AGAINST DECLARANT BY CONFESSION AS PROVIDED FOIN THECONFESSION OF JUDGMENT PROVISION. INITIALS: B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE CREDIT AGREEMENT ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING DECLARANT'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE CREDIT AGREEMENT, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE. i INITIALS: C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, THE UNDERSIGNED REPRESENTS THAT: INITIALS 1. DECLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE CREDIT AGREEMENT. 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONOESSION OF JUDGMENT PROVISION IN THE CREDIT AGREEMENT TO DECLARANT'S ATTENTION. Loan No: 901017564 DISC SURE FOR CONFESSION OF JU' vIENT (Continued) Page 2 THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: HAMPTON CONSTRUCTION MANAGEMENT, TED By: - 1)2 1 'Seal) Harry I. Morris, Jr., President Hampton Construction Management, Limited ATTEST: 1 Corporate Seal 1 Secretary or Assistant Secretary I ? IW ti !B], 3W] MMbRwrM. 111 MNMWI 3N,3 eM.M DN;Fl11l11D30.R TI1 Susquehanna Susquehanna Bancshares, Inc, 26 Nodh Cedar Street Lititz, PA 17543-7000 Tel 717.626.4721 Pax 717.626.1874 VIA. CERTIFIED AND FYRST CLASS 141AIL October 27, 2009 Hampton Construction Management, Limited 3607 Hartzdale Drive Camp Hill, PA 17011 Attention: Harry I- Morris, Jr. RE: $500,000 Revolving Line of Credit from CommuuityBanks, now by merger Susquehanna Bank Dear Mr. 'w4omr= : This letter addresses an outstanding loan to Hampton Construction Management, Limited ("Hampton") by Susquehanna Bank, successor in interest to CommunityBanks (the ".Bank"). This loan, number 901017564, a line of credit in the principal amount of $500,000.00 (the "Lille of Credit"). was extended by the Bank to Hampton pursuant to that certain Commercial Revolving Line of Credit Agreement dated April 23, 2007 (the "Line oz Credit Agreement"). As you know, Hampton is in default of its obligations under the Line of Credit Agreement for failure to make payment as and when due. This letter is written to noti:?j you that the Bank has terminated the Line of Credit and that the entire outstanding balance of the Tine of Credit is due and payable in full. As of October "l7, 2009, your outstanding obligation on the Line of Credit is as follows: Principal $492,757.64 Interest through 10/27/09 $8,951.76 Late Clarges $435.27 X2.0$1.47 Attorneys' Fees TOTAL $504,226.14 Interest at the rate of $41.06 per day, attorneys' fees and cost; and other amounts w which the Bank, is entitled continue to accrue until the date on which payment is received by the Bank. Hampton. Construction Management, Limited October 30, 2009 Page 3 Robert Rahal Senior Vice President Susquehanna Bank 100 Sterling, Parkway, Suite 100 Mechanicsburg, PA 17050 717-765-6542 Neither this letter nor anything contained herein waives, limits or otherwise affects in any way the Bank's right to exercise and enforce its rights and remedies under the agreements and documents that evidence and/or secure the Loans, or at law or in equity, all of which are reserved by the Bank and refrain in full force and effect, enforceable by the Bank at any time on and after the date of this letter. Sincerely, -j Robert E. Rabat Senior Vice President COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, :DOCKET NO. ID abB I Civ I -Terw successor in interest to CommunityBanks, Plaintiff CONFESSION OF JUDGMENT V. HAMPTON CONSTRUCTION : MANAGEMENT, LIMITED, Defendant PREVIOUSLY ASSIGNED TO: N/A PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter my appearance on behalf of Plaintiff, Susquehanna Bank. Papers may be served at the address set forth below. Geoffrey S. Shuff, Esquire McNees Wallace & Nurick LLC 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 a* c ca rv Cn N m Respectfully submitted, McNees Wallace & Nurick LLC Date: March L 7 , 2010 -c:ieo ey S'Shufl;, Esquire Su e Court ID #24848 0 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, : DOCKET NO. ?D - A097 CNi 1 leXM successor in interest to CommunityBanks, Plaintiff CONFESSION OF JUDGMENT V. mPREVIOUSLY ASSIGNED TO: 0,10 a a HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, Defendant AFFIDAVIT OF NON-MILITARY SERVICE TO THE PROTHONOTARY: ro Cn CD I do certify, to the best of my knowledge, that the Defendant in the above-captioned action, Hampton Construction Management, Limited, is not presently on active or nonactive military status. Date: March2Y, 2010 Respectfully submitted, McNees Wallace & Nurick LLC /J y S.. uff, Esquire Supreme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, : DOCKET NO. 10 `.208`1 CtV i l Term successor in interest to CommunityBanks, Plaintiff V. HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, Defendant : CONFESSION OF JUDGMENT • ? a Vi?zz?? : : ? a"• ? PREVIOUSLY ASSIGNED T RA " r ch =IC i CERTIFICATE OF ADDRESSES' iv I hereby certify that the precise address of the Plaintiff, Susquehanna Bank, is 100 Sterling Parkway, Suite 100, Mechanicsburg, PA 17050; and that the last known address of the Defendant, Hampton Construction Management, Limited, is 3607 Hartzdale Drive, Camp Hill, PA 17011. Date: March27, 2010 Respectfully submitted, McNees Wallace & Nurick LLC By: 5weme Court ID #24848 00 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, : DOCKET NO. 10 apg'I O'.1vit Tprk successor in interest to CommunityBanks, Plaintiff : CONFESSION OF JUDGMENT V. HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, Defendant PREVIOUSLY ASSIGNED TO: I a a .? r? NJ NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANT'S RIGHTS N Cn TO: Hampton Construction Management, Limited A judgment in the amount of $558,722.28, plus interest, other expenses, fees and costs has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS 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. . .-qI. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 Respectfully submitted, McNees Wallace & Nurick LLC Date: March2 I, 2010 (i ?l'iuff, Esquire e Court ID #24848 10 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION SUSQUEHANNA BANK, Banks, successor in interest to Community Plaintiff DOCKET NO. (0 " 4081 Cwi (Te-?` CONFESSION OF JUDGMENT V. HAMPTON CONSTRUCTION MANAGEMENT, LIMITED, Defendant : PREVIOUSLY ASSIGNED TO: N/A To: Hampton Construction Management, Limited, Defendant You are hereby notified that on r 2010, judgment by confession was entered against you in the sum of $558,722.28, in the above-captioned case. DATE: onot YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER GO OR TELEPHONE THE NOT HAVE A LAWYER OR CANNOT TO FIND OU?WH? ONE, YOU CAN GET LEGAL HELP. OFFICE SET FORTH BELOW Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 I hereby certify that the following is the address of the Defendant stated in the certificate of residence: Hampton Construction Management, Limited 3607 Hartzdale Drive Camp Hill, PA 17011 for Plaintiff A, Hampton Construction Management, Limited, Demandado: Por este medio usted sea avisado que en el dia _ de de 2010, un juicio por admision fue registrado contra usted por la cantidad de $558,722.28, referente al caso mencionado arriba. Fecha: Protonotario LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO O SI NO TIENE EL DINERO PARA PAGAR TAL SERVICIO, VAYA PERSONALMENTE O LLAME POR TELEFONO A LA OFICINA CUYO TELEFONO Y DIRECCION SE ENCUENTRAN ESCRITOS ABAJO PARA AVERIGUAR DONDE USTED PODRA CONSEGUIR ASISTENCIA LEGAL. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 Por este medio certifico que la siguientes son las direcciones de los demandado, dicho en el certificado de residencia: Hampton Construction Management, Limited 3607 Hartzdale Drive Camp Hill, PA 17011 ;ado del Demandante