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HomeMy WebLinkAbout01-1652DICKINSON COLLEGE, Plaintiff STANLEY KELL, THEDA M. KELL, and KENNETH KELL, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No. NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court ~4 dministrator Fourth Floor Cumberland County Courthouse One Courthouse Square Carlisle, P~4 17013-3387 Telephone: (717) 240-6200 AVISO USTED HA SIDO DEMANDADO/A en corte. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los proximos veinte (20) dies despues de la notificacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defenses de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el cave puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes pare usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABODAGO IMMEDIATAMENTE. SI USTED NO TIENE LIN ABOGADO O NO PUEDE PAGARLE A UNO, LLAME O VAYA A LA SIGUIENTE OFICINA PARA AVERIGUAR DONDE PUEDE ENONTRAR ASISTENCIA LEGAL. Court Administrator Fourth Floor Cumberland CounO~ Courthouse One Courthouse Square Carlisle, PA 17013-3387 Telephone: (717) 240-6200 McNEES, WALLACE & NLrR1CK Charles T. Young,/~., Esq./~ Attorney I.D. Nod'80680 t.- 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1 166 (717) 232-8000 Attorneys for Plaintiff Dickinson College DICKINSON COLLEGE, Plaintiff STANLEY KELL, THEDA M. KELL and KENNETH KELL, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW :No. ol- COMPLAINT The Plaimiff, Dickinson College, by its attorneys, McNees, Wallace & Nurick, hereby files this Complaint against the Defendants, Stanley Kell, Theda M. Kell, and Kenneth Kell. In support thereof, the Plaintiff avers the following: 1. The Plaintiff, Dickinson College ("Dickinson"), is a Pennsylvania educational institution with its principal offices located in Carlisle, Pennsylvania 17013. 2. The Defendant, Stanley Kef1, is an adult individual whose last known address is 734 Ravenswood Drive, Absecon, New Jersey 08201. 3. The Defendant, Theda M. Kell, is an adult individual whose last known address is 242 Pine Hill Road, Sterling, Connecticut 06377. Stanley Kell and Theda M. Kell will collectively be referred to as "Parents." 4. The Defendant, Kenneth Kell, is an adult individual whose last known residential address is 82 Country Club Py. #B, Mount Laurel, New Jersey 08054. Kenneth Kell is currently an attorney, licensed to practice law in New Jersey. His business address is Tomlin, Hopkin & Montemurro, 20 East Redman Avenue, P.O. Box 1000, Haddonfield, New Jersey 08033. 5. On or about January 10, 1983, Parents entered into an Educational Goods and Services Retail Installment Contract ("First Contract") for expenses incurred for goods and services to be provided and rendered to their son Kenneth Kell by Dickinson during the 1982-83 academic below. COUNT I DICKINSON COLLEGE V. STANLEY KELL AND THEDA M. KELL, PARENTS BREACH OF CONTRACT 10. Paragraphs 1 through 9 are incorporated herein by reference as if set forth in full 11. Under the terms of the First Contract, Parents, as "Buyer" agreed to pay Dickinson Two Thousand Five Hundred Dollars ($2,500.00) with interest at the initial rate of fourteen and one half percent (14.5%) per annum, in one (1) equal monthly installment of Eighteen Dollars and Six Cents ($18.06) commencing on January 31, 1983, thirty-nine (39) equal monthly installments of Twenty-Seven Dollars and Eight Cents ($27.08) commencing on February 28, 1983, and ending on April 30, 1986, and seventy-two (72) equal monthly installments of Fifty Dollars and Eighteen Cents ($50.18) commencing on May 30, 1986. 12. Under the terms of the Second Contract, Parents, as "Buyer" agreed to pay Dickinson Seven Thousand Dollars ($7,000.00) with interest at the initial rate of eleven and one half percent (11.5%) per annum, in one hundred thirty nine (139) equal monthly installments of Ninety-One Dollars and Thirty-four Cents ($91.34) commencing on October 31, 1983. 13. Under the terms of the Third Contract, Parents, as "Buyer" agreed to pay Dickinson Seven Thousand Dollars ($7,000.00) with interest at the initial rate of thirteen point nine nine nine percent (13.999%) per annum, in one hundred twenty seven (127) equal monthly installments of One Hundred Five Dollars and Ninety-five Cents ($105.95) commencing on November 1, 1984. 14. Under the terms of the Fourth Contract, Parents, as "Buyer" agreed to pay Dickinson Seven Thousand Dollars ($7,000.00) with interest at the initial rate often point four nine eight percent (10.498%) per annum, in one hundred sixteen (116) equal monthly installments of Ninety-Six Dollars and Thirty Cents ($96.30) commencing on October 1, 1985. 15. The Second, Third and Fourth Contracts were combined for payment purposes and Defendants were aware of the combining of these Contracts. 16. Section II of the Contract(s) provides that "If a payment is more than 15 days late, a sum equivalent to 5% of the late payment (but no more than $2.50 and not less than $1.00) may be charged." 17. Section VI, Paragraph 3(a) of the Contract(s) provides that "Buyer shall be deemed to have committed an 'Event of Default' of the Contracts upon the occurrence of any of the following: (a) failure to make any payment on or before the date it is due,..." 18. Section VI, Paragraph 4 of the Contract(s) provides that if an Event of Default of the contract occurs, and is not cured by the Buyer pursuant to the Notice of Default, Dickinson has "the right to declare all sums due on the contract to be immediately due and payable." 19. Parents have defaulted on the Contract(s) by failing to make the required monthly payments due and owing since February, 2000. 20. The Parents were given notice of their default and right to cure such default. Kenneth Kell has also been notified of his Parents' default under the Contracts. 21. Parents have failed to cure such defaults. 22. Therefore Dickinson has exercised its right to declare all sums due on the Contract(s) to be immediately due and payable. 23. The total amount which has become immediately due and payable to Dickinson by Parents pursuant to the Contract(s) is Thirty-One Thousand Two Hundred Thirty-Eight Dollars and Seventy-Nine Cents ($31,238.79), which includes principal in the amount of Fifteen Thousand Eight Hundred Fourteen Dollars and Thirteen Cents ($15,814.13), interest in the mount of Eleven Thousand Eight Hundred Sixty Dollars and Sixty-six Cents ($11,860.66), late fees in the amount of Three Thousand Five Hundred Sixty-Four Dollars ($3,564), plus reasonable attorneys' fees and collection costs. WHEREFORE, Plaintiff Dickinson College demands judgment against Parents Stanley Kell and Theda M. Kell in the sum of Thirty-One Thousand Two Hundred Thirty-Eight Dollars and Seventy-Nine Cents ($31,238.79), plus reasonable attorneys' fees and collection costs. COUNT II DICKINSON COLLEGE V. KENNETH KELL IN QUANTUM MER UIT 24. Paragraphs l through 23 are incorporated herein by reference as if set forth in full. 25. Kenneth Kell requested that Dickinson loan his Parents funds so that he could attend classes at Dickinson College. 26. Dickinson loaned funds to Parents, and this loan conferred a significant and appreciable benefit upon Kenneth Kell -- in that he was permitted, and did in fact, attend classes at Dickinson College. 27. Knowing that Dickinson loaned funds to Parents because of his request, Kenneth Kell accepted the benefits conferred upon him by his attendance at Dickinson College. 28. Kenneth Kell would be unjustly enriched if he were allowed to retain the benefits conferred upon him by his attendance at Dickinson College without payment to Dickinson. 29. The total amount by which Kenneth Kell would be unjustly enriched on account of the funds loaned is Thirty-One Thousand Two Hundred Thirty-Eight Dollars and Seventy-Nine Cents ($31,238.79). 30. Dickinson has demanded payment of the above sum from Kenneth Kell, but he has failed and refused to pay the amount owed. WHEREFORE, Plaintiff Dickinson College demands judgment against Defendant Kenneth Kell in the stun of Thirty-One Thousand Two Hundred Thirty-Eight Dollars and Seventy-Nine Cents ($31,238.79). McNEES, WALLACE & NURICK Charles T. Young, Jr~ ~'C/ '~ Attorney I.D. No. tS/fi/680 · 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 (717) 237-5397 Attorneys for Plaintiff Dickinson College Exhibit A .... t983 Dated January 10 , Seller: Dickinson College, Carllele, Pennsylvanls 17013, Kell, Stanley , 301 Beech Ave.; Linwood, NJ 08221 Name(a) Place of Residence If there is ~ore than one Buyer each of you will be obligated, jointly smd vlded in this Contract. durlag his/her enrollment at Dickinson College during the f~ll or qprtn0 II. TERMS OF PAYMENT AND PAY~NT SCHEDULE Disclosures Required by Federal Law ANNEAL FINANCE AMOUNT FINANCED: TOTAL OF TOTAL SALE PERCENTAGE OIAR~E: Amount of credit PAYMENTS: PRICE: ~ATE: Dollar amount provided by Amount paid Total cost oi Cost of credit credit will Dickinson College by Buyer as purchase on as yearly rate cost Buyer total of all credit, scheduled cludinE down Prior ~o repay- payments payment of Durlmg repay- merit: 14% % $ 8,995.00 Buyer's payment schedule will be as follows: 1 18.06 39 27,08 72 50.18 monthly commencing Jan. untll April 3q 19~ch ti~e monthly co~menclng May 30 , proved full-tlme off-campus progr~u La~e charEe: If a payment is more than 10 days late, a sum equivalent to 5% of the late payment (but no more than $5.00 and not less than $1,00) will be charged. Prepayment: Buyer may prepay the Total of Payments, in full or in part without penalty or pramlum. SEE SECTIO~ VI OF THE CONTRACT BELOW FOR ANY ADDITIONAL INFORMATION A~OUT NONPAYMENT, DEFAULT AND ~EQUIRED RgPAYHENT BEFORE THE SCHEDULED DATE FOR REPAYMENT OF THE AHO~NT F~NANCEB. III, ITE)fIZATION OF AMOUNT FIN';CED 1. Cash price of Cooda and Services: $ 8,995.00 Z. Total down payment: ($ 6.495.00) 3. Unpaid balance of cash price (1 - 2): $ 2,5Q0,00 4. Amount paid co others on Buyec's behalf: $ 0.00 5. Amount financed (3 + 4): $ 2,500.00 V. NO WARBANTIBS THERE ARE ~0 WARRANTIES EITNER EXPRESS OR IMPLIED GIVEN BY SELLER IN Dlcklason Collese c/o Industrial Valley Bank l?th & Market Streets Philadelphia, Pennsylvania 19102 2. Buyer's legal rights include she right to pay all or part of the amounts due on this Coutrac£ in advance of their due dates, to obtain a refund or credit of unearned Finance Charge ~enever the ~mount due is paid in full in advance, and (wi~h Seller's consent) to reinstate the Contract if Buye~ timely cures any default. 7. If any ~art of ~hls Contract is held to be illegal, void or unen- forceable that provision shall be deemed not ~o have been a pare of this Contract, ~llch shall otherwise remain fully effective, -2- 8. The lays of the 0ommo~wealCh of Pennsylvanla shall apply to chis Con~rac£ excep~ so the excen~ supplemented, superseded or preempted by federal law. 9. This Contract shall be bindlnI upon the parties here~o~ their -3- Exhibit B TERMS OF PAYHEN~ AND PAYMENT SCHEDULE Disclosures Required by Federal Law ANNUAL FINANCE AMOUNT FINANGED: TOTAL OF TOTA; .~Lf $ I0,215.O0 Buyer's payment schedule will be as Numbe~ of Payments Amount of ?ayments When Payments Are Due monthly co.unen~LnBOot. 31 , 198~ {~O $ 91.34 unC[l April 30 ,~_ 1995. +V{riable Rate: The A~UAL PERCENTAUE RATE dlsclosed above is a variable rate ang may change. The ANNUAL PERCENTAGE RATE may increase during race viii Become e£fecClve on July i follo~'ing ~he increase, services sold hereunder were $ 7~O00.00 ac 11½ I per annum 12~ ,m~your regular monthly pay~nenCs would increase $1.00) vlll be charged, Prepa~enc: Buyer may prepay the To,al off P~mnCs, [n iull or in parc ~iChouc penalty or premium. 8/83 2. Total do~m paymeat: ($ 3,215,00 ) 3. Unpaid balance of cash'price (1 - 2): $ 7,000° 00 4. Amount paid to others on Buyer's behalf: $ 0,00 5. Amount financed (3 + 6): $ 7,000.00 life insurance through Seller costing $ Signat~re of Buyer/W~ b~ ~nsured Company NOTICE OF PROPOSED CREDIT INSURANCE The Signor(s) of this Contract hereby take(s) notice that group credit life insurance coverage will be applicable to this Contract if so designated above, and the coverage will be w~itten by the insurance company named, The insurance, subject to acceptance by the insurer, amount of tbe charge is indicated for the type of insurance to be indebtedness is incurred and will expire on the original scheduled maturity date of the indebtedness. If Buyer elects to procure credit within 30 days of the dace of tills Contract, there will be delivered to the insured debtor a certificate of insurance more fully describing the insurance. In the event of prepayment of the indebtedness, a refund of insurance charges will be made if due. -2- 8/83 be made to Industrial Valley Bank at the following address: Industrial Valley Bank P. O. Box 433 Upper Derby, Pennsylvania 19082 2. Buyer's legal rights include the right to pay all or part of the (a) failure to make any payment on or before the dage it ia due; (b) failure to perform say other provisiotl of the Contract; (c) providing Seller with false information or signatures; (d) death or iacompetellce or eon¥ietion of any Buyer of crime crime involving fraud or dishoneBty; (e) insolvency of any Buyer. default and of Buyer's right to cure the default. The notice will pro,ida the payable. 5. Waiver by Seller of any Event of Default shall not be binding upon Seller if Seller should thereafter choose to exercise that or any other right or a similar Event of Default occurs later. All Seller's rights and remedies Seller to lose any other rights. 6. This contract is freely assig~able by Seller. Buyer agrees tiler upon receivlng notice of the assignment Buyer shall be obligated to the assfgnee of this Contract. which assignee shall have all of Seller's rights and remedies. 7. If any part of this Contract ia held to be illegal, void or unenforceable that provision shll be deemed not to have been a part of this Contract, which shall otherwise re, in fully effective. 8. The laws of the Commonwealth of Pennsylvania shall apply to this Contract except to the extent supplemented, superseded or preempted by federal law. 9. This Contract shal! be b~nding upon the parties hereto, their heirs, -3- 8/83 BUYERS ACRN NE RECEIVING A' MP ED COPY OF THIS BuyerBUyer'-~CONTRACT D TN'I' TO BE L D ~BY ITS TERMM. DATE: DICKINSON COLLEGE -4- 8/83 Exhibit C ~ ~ Ol~T3 1 '196~ DICKINSON COLLEGE FLEXIBLE FINANCING SYSTEM - 7000 PLAN EDUCATIONAL GOODS AND SERVICES RETAIL INSTALLMENT CONTRACT Date October 1, 1984 I. Seller: Dick/nson College, Carlisle, Pennsylvania 17013 Buyer(e): Stanley and Theda Kell .'301 Beech Avenue, Linwood, NJ 08221 If there is more than one Buyer, each of you will be obligated, Jointly · and severally, for all sums due and for the performance of all agreements as provided in this Contract. Under the terms of this Educational Goods and Services Retail Install- ment Contract, you have agreed to pay the expenses incurred for goods and services to be provided and rendered, as the case may be, to Kenneth (hereinafter "Student") during his/her enrollment at Dickinson College during the 1984-85 academic year, including tuition, room and board, books and supplies as herein stated (hereinafter the "Goods'and Services"). The Goods and Services shall include only the following: Tuition and room and board II. TERMS OF PAYMENT AND PAYMENT SCHEDULE Disclosures Required by Federal Law ANNUAL PERCENTAGE RATE:~ Cost of credit as yearly rate 13.999 % FINANCE Dollar amount credit will cost Buyer t$ 6,455.65 AMOUNT FINANCED: A~ount of credit provided by Dickinson College $ 7,000.00 TOTAL OF TOTAL SALE PAYMEntS: PRICE: Amount paid Total cost of by Buyer as purchase on total of all credit, scheduled cluding down payments payment of $ 4,040,00 $13.455,65 $ 11,040.00 Buyer's payment schedule will be as follows: Number of Payments 127 Amount of Payments 105.95 When Payments Are Due Monthly commencing November 1, 1984 until May 1, 1994 *Variable Rate: Late Charge: Prepayment: The ANNUAL PERCENTAGE RATE disclosed above i~ a variable rate and may change. The ANNUAL PERCENTAGE RATE may increase during the term of this transaction if the prime rate of interest announced in the Wali Street Journal as of the close of business on June 30 of each calendar year increases, and will be increased to the prime rate plus 1%. The ANNUAL PERCENTAGE RATE will not increase more than once a year, and the new interest rate will become effective on July 1 following the increase, if any, in the prime rate of interest. Any increase will be in the form of higher payment amounts. If your cost of the Goods and Services sold hereunder were $7,000.00 at 14 % per annum for 127 months, and the prime rate plus 1% were increased to 15 %, your regular monthly payments would increase to $ 110.26 Further, the ANNUAL PER- CENTAGE RATE will not increase to more than 18% or such other rate as may be permitted under the Pennsylvania Goods and Services Insta!iment Sales Act. If a payment is more than 15 days late, a sum equivalent to 5% of the late payment (but no more than $2.50 and not less than $1.00) may be charged. Buyer may prepay the unpaid balance of the Amount Financed and any FINANCE CHARGE due through the date of early payment, in full or in part, without penalty. SEE SECTION VI OF THE CONTRACT BELOW FOR ANY ADDITIONAL INFORMATION ABOUT NON- PAYMENT, DEFAULT AND REQUIRED REPAYMENT BEFORE THE SCHEDULED DATE FOR REPAYMENT OF THE AMOUNT FINANCED. -2- III. ITEMIZATION OF AMOUNT FINANCED 1. Cash price of Goods and Services: $ 11,040.00 2. Total down payment: 4,040.00 3. Unpaid balance of cash price (1 - 2): 7,000.00 4. Amount paid to others on Buyer's behalf: .00 5. Amount Financed (3 + 4): $ 7,000.00 IV. CREDIT INSURANCE Credit life insurance for the term of =his Contract is not required. V. NO WARRANTIES THERE ARE NO WARRANTIES, EITHER F/£PRESSED OR IMPLIED, GIVEN BY SELLER IN CONNECTION WITH SALE OF THE GOODS AND SERVICES COVERED BY THIS CONTRACT UNLESS BUYER HAS BEEN GIVEN A SEPARATE WRITTEN WARRANTY. VI. ADDITIONAL PROVISIONS i. Buyer agrees to pay Seller the Total Sale Price by making the total down payment and paying Seller the Total of Payments in the number and amount of monthly payments shoWn in the Payment Schedule. Payments are due on or before the same date of each month as the first payment date. Payments must be made to Industrial Valley Bank at the following address: Industrial Valley Bank P.O. Box 433 Upper Darby, Pennsylvania 19082. 2. Buyer's legal rights include the right to pay all or part of the amounts due on this Contract in advance of their due dates, to obtain a refund or credit of unearned Finance Charge whenever the amount is paid in full in advance, and (with Seller's consent) =o reinstate the Contract if Buyer timely cures any default. 3. Buyer shall be deemed to have committed an "Event of Default" of the Contract upon the occurrence of any of the following: (a) failure to make any payment on or before the date it is due, (b) failure to make a payment on any other contract outstanding with Seller, -3- (c) failure to perform any other provision of the Contract, (d) providing Seller with false information or signatures, (e) death, incompetence, or conviction of any Buyer of crime in- volving fraud or dishonesty, (f) insolvency or bankruptcy of any Buyer~ 4. Upon or after the occurrence of any Event of Default, Seller will provide Buyer with notice, by certified mail as required by law, addressed to Buyer's last known address as shown on Seller's records, advising Buyer of the default and of Buyer's right to cure the default. The notice will provide the time, amount and performance necessary to cure the default. If Buyer does mot cure the default as provided in the notice, Seller's rights shall include the right to declare all sums due on the Contract to be immediately due and payable. 5. Waiver by Seller of any event of default shall not be binding upon Seller if Seller should thereafter choose to exercise that or any other right or a similar Event of Default occurs later. All Seller's rights' and remedies shall be cumulative. Seller's exercise of one or more rights shall not cause Seller to lose any other rights. 6. This Contract is freely assignable by Seller. Buyer agrees that upom receiving notice of the assignment Buyer shall be obligated to the Assignee of this Contract, which Assignee shall have all of Seller's rights and remedies. 7. If any part of this Contract is held to be illegal, void or unenforceable, that provision shall be deemed not to have been a part of this Contract, which shall otherwise remain fully effective. 8. The laws of the Commonwealth of Pennsylvania shall apply to this Con- tract except to the extent supplemented, superseded or pre-empted by federal law. 9. This Contract shall be binding upon the parties hereto, their heirs, successors, assigns and legal representatives. 10. TIME IS OF THE ESSENCE OF THIS CONTRACT. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT ~EILETO OR WITH THE PROCEEDS HEREOF. P. ECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR H~REUNDER. NOTICE TO BUYER: (1) DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK SPACE. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED-IN COPY OF THIS AGREEMENT. (3) UlqDER THE LAW, YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE -4- THE FULL AMOUNT DUE AND UNDER CERTAIN CONDITIONS TO OBTAIN A PARTIAL I~EFUND OF THE FINANCE C~IARGE. DATE: BUYER(S) ACKI~OWLEDGE(S).~CEIVING A C0~?LETED COPY OF THIS BUYER(S).: ~~ DICKINSON COLLEGE FOR DICKINSON COLLEGE USE ONLY For value raceived, Seller hereby sells, assigns, and transfers to Industrial Valley Bank amd Trust Company all of Seller's rights, title and interest in this Educational Goods and Services Retail Installment Contract, with full recourse to Seller. This ~ / day of DICKINSON COLLEGE, BY: TITLE -5- Exhibit D DICKINSON COLLEGE FLEXIBLE FINANCING SYSTEM - 7000 PLAN EDUCATIONAL GOODS AND SERVICES RETAIL INSTALLMENT CONTRACT Date August 1, 1985 I. Seller: Dickinson College, Carlisle, Pennsylvania 17013 Buyer(s): Stanley and Theda Kell '301 Beech Avenue, Linwood, NJ 08221 If there is more than one Buyer, each of you will be obligated, jointly and severally, for all sums due and for the performance of all agreements as provided.in this Contract. Under the terms of this Educational Goods and Services Retail Install- ment Contract, you have agreed ~o pay the expenses incurred for goods and services to be provided and rendered, as the case may be, to Kenneth (hereinafter "Student") during his/her enrollment at Dickinson College during the 1985-86 academic year, including tuition, room and board, books and supplies as herein stated (hereinafter the "Goods and Services"). The Goods and Services shall include only the following: Tuition and room and board II. TERMS OF PAYMENT AND PAYMENT SCHEDULE Disclosures Required by Federal Law ANNUAL PERCENTAGE RATE:* Cost of credit as yearly rate FINANCE CHARGE: Dollar amount credit will cost Buyer 10.498 %. $ 4,170.80 AMOUNT FINANCED: Amount of credit provided by Dickinson College $ 7,00D.00 TOTAL OF TOTAL SALE PAYMENTS: PRICE: Amount paid Total cost of by Buyer as purchase on total of all credit, in- scheduled cluding down payments payment of $ 5,130.00 $ 11,170.80 $ 12,130.00 Buyer's payment schedule will be as follows: 'Number of Payments 116 Amount of Payments 96.30 When Payments Are Due Monthly commencing October 1, 1985 until May 1, 1995 *Variable Rate: Late Charge: Prepayment: The A~NNU.~L PERCENTAGE RATE disclosed above is a variable rate and may change. The ANNUAL PERCENTAGE RATE may increase during the term of this transaction if the prime rate of interes: arauounced in the Wall Street Journal as of the close of business on June 30 of each calendar year increases, and will be increased to the prime rate plus 1%. The ANNUAL PERCENTAGE RATE will not increase more than once a year, and the new interest rate will become effective on July 1 following the increase, if any, in the prime rate of interest. Any imcrease will be in the form of higher payment amounts. If your cost of the Goods and Services sold hereunder were $ 7000.00 at 10.5 % per annum for 1~6 months, and the prime rate plus I% were increased to 11.5 %, your regular monthly payments would increase to $ 100.23 Further, the Ah'NUAL PER- CENTAGE RATE will not increase to more than 18% or such other rate as may be permitted under the Pennsylvania Goods and Services Installment Sales Act. If a payment is more than 15 days late, a sum equivalent to 5% of the late payment (but no more than $2.50 and not less than $1.00) may be charged. Buyer may prepay the unpaid balance of the Amount Financed and any FINANCE CHARGE due through the date of early payment, in full or in part, without penalty. Payments greater than the payoff amount but less than $3.00 %rlll not be refunded. SEE SECTION VI OF THE CONTRACT BELOW FOR ANY ADDITIONAL INFORMATION ABOUT NON- PAYMENT, DEFAULT AND REQUIRED REPAYMENT BEFORE THE SCHEDULED DATE FOR REPAYMENT OF THE AMOUNT FINANCED. -2- III. ITEMIZATION OF AMOUNT FINANCED 1. Cash price of Goods and Services: 2. Total down payment: 3. Unpaid balance of cash price (1 - 2): 4. Amount paid to others on Buyer's behalf: 5. Amount Financed (3 + 4): $ 12,130.00 5,130.00 7,000.00 .00 $ 7,000.00 IV. CREDIT INSURANCE Credit life insurance for the term of this Contract is not required. V. NO WARRANTIES THERE ARE NO WARRANTIES, EITHER EXPRESSED OR IMPLIED, GIVEN BY SELLER IN CONNECTION WITH SALE OF THE GOODS AND SERVICES COVERED BY THIS CONTRACT UNLESS 'BUYER HAS BEEN GIVEN A SEPARATE WRITTEN WARRANTY. VI.. ADDITIONAL PROVISIONS 1. Buyer agrees to pay Seller the Total Sale Price by making the total down payment and paying Seller the Total of Payments in the number and amount of monthly payments shown in the Payment Schedule. Payments are due on or before the same date of each month as the first payment date. Payments must be made to Industrial Valley Bank at the following address: Industrial Valley Bank P.O. Box 433 Upper Darby, Pennsylvania 19082 2. Buyer's legal rights include the right to pay all or part of the amounts due on this Contract in advance of their due dates, to obtain a refund or credit of unearned Finance Charge whenever the amount is paid in full in advance, and (with Seller's consent) to reinstate the Contract if Buyer timely cures any default. 3. Buyer shall be deemed to have committed an "Event of Default" of the Contract upon the occurrence of any of the following: (a) failure to make any payment on or before the dace it is due, (b) failure to make a payment on any other contract outstanding with Seller, -3- (c) failure to perform any other provision of the Contract, (d) providing Seller with false information or signatures, (e) death, .incompetence, or conviction of any Buyer of ct/me in- volving fraud or dishonesty, (f) insolvency or bankruptcy of any Buyer. 4. Upon or after the occurrence of any Event of Default, Seller will provide Buyer with notice, by certified ma/1 as required by law, addressed =o Buyer's iasc known address as shown on Seller's records, advising Buyer of =he default and of Buyer's'right =o cure the default. The no=ice will provide =he time, amount and performance necessary to cure the default. If Buyer does no= cure the default as provided in the notice, Sellerts rights shall include the right to declare all sums due on the Contract to be inm~diately due and payable. 5. Waiver by Seller of any event of default shall not be binding upon Seller if Seller should thereafter choose to exercise that or any other right or a similar Event of Default occurs later. All Seller's rights and remedies shall be cumulative. Seller's exercise of one or more rights shall not cause Seller to lose any other rights. 6. This Contract is freely assignable by Seller. Buyer agrees that upon receiving notice of the assignment Buyer shall be obligated to the Assignee of this Contract, which Assignee shall have all of Seller's rights and remedies. 7. If any part of this Contract is held to be illegal, void or unenforceable, that provision shall be deemed not to have been a part of this Contract, which shall otherwise remain fully effective. 8. The laws of the Co~onwealth of Pennsylvania shall apply to this Con- tract except to the extent supplemented, superseded or pre-empted by federal law. 9. This Contract shall' be binding upon the parties hereto, their heirs, successors, assigns and legal representatives. 10. TIME IS OF THE ESSENCE OF THIS CONTRACT. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH TH~ DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THEDEBTOR HEREUNDER. NOTICE TO BUYER: (1) DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK SPACE. (2) YOU ARE ENTITLED TO A COMPLETELY FILLED-IN COPY OF THIS AGREEMENT. "(3) UNDER THE LAW, YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE -4- THE FULL ~MO~T DUE AND UNDER CERTAIN CONDITIONS TO OBTAIN A PARTIAL REFUND OF THE FINANCE CHARGE. DATE: BUYER(S) A6"KNOWLEDGE(S) HECEIVlNG A COMPLETED COPY OF THIS CONTRACT AND INTEND(S) TO BE LEGALLY BOUND BY ITS TERMS. BUYER(S): -~ ~ '- ' DICKINSON COLLEGE FOR DICKINSON COLLEGE USE ONLY For value received, Seller hereby sells, assigns, and transfers to Industrial Valley Bank and Trust Company all of Seller's rights, title and interest in this Educational Goods and Services Retail Installment Contract, with full recourse to Seller. This ~ day of. DICKINSON COLLEGE, BY: -5- VERIFICATION Subject to the penalties of 18 Pa. C.S. §4904 relating to unswom falsification to authorities, I hereby certify that I am Thomas B. Meyer, Assistant Treasurer of Dickinson College, and am authorized to verify this Complaint on its behalf, and further, that the facts set forth in the foregoing Complaint are true and correct to the best of my information and belief. Dated: DICKINSON COLLEGE, Plaintiff STANLEY KELL, THEDA M. KELL, and KENNETH KELL, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA _, : CIVIL ACTION - LAW ; : NO. 2001-01652 PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: The Plaintiffrequests that the above-captioned matter be discontinued without prejudice, Respectfully submitted, McNEES, WALLACE & NURICK Charles T. Young, Jr., Attorney I.D. No. 8068, (7 100 Pine Street ~ P. O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 Attorneys for Plaintiff Dickinson College Dated: April .20, 2001 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a tree and correct copy of the foregoing document was served by U.S. first-class mail, postage prepaid, upon the following: Joseph K. Goldberg, Esquire 2080 Linglestown Road Suite 106 Harrisburg, PA 17110 Dated: April ~0,2001