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HomeMy WebLinkAbout10-7030T i Defendant NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the r r [ .n {. i s L. T v. It a' Ay kk CENTRIC BANK IN THE COURT OF COMMON PLEAS f/k/a VARTAN NATIONAL BANK, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO: V. CIVIL ACTION ROGER D. MORRISON, 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. ® o? 0 ?0 YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 NOTICIA Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas diguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avidaso que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO IMMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJOPARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Cumberland County Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 submi L Date: November , 2010 By: ce J f W arshawsk3r, Esquire D.#58799 2320 North Second Street P.O. Box 60457 Harrisburg, PA 17106-0457 Telephone: (717) 238-6570 Attorneys for Plaintiff IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 ET SEQ. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH THE LAW PROVIDES THAT YOUR ANSWER TO THIS COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. CENTRIC BANK IN THE COURT OF COMMON PLEAS f/k/a VARTAN NATIONAL BANK, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff ?r NO: 10-' 030 c '6 V. CIVIL ACTION ROGER D. MORRISON, Defendant COMPLAINT AND NOW COMES, the Plaintiff, Centric Bank f/k/a Vartan National Bank ("Centric" or "Vartan"), by and through its attorneys, Cunningham & Chernicoff, to file a Complaint against Defendant, Roger D. Morrison ("Morrison"), in the above action is as follows: COUNT I - MORTGAGE FORECLOSURE 1. Plaintiff, Centric Bank formerly Vartan National Bank, is a financial institution authorized to conduct business in the Commonwealth of Pennsylvania with a principal place of business located at 4320 Linglestown Road, Harrisburg, Pennsylvania 17112. 2. Defendant, Roger D. Morrison, ("Defendant") is an adult individual whose last known address is 3242 Enola Road, Carlisle, Lower Frankford Township, Cumberland County, Pennsylvania 17013. 3. Defendant is the mortgagor and real owner of the Property (hereinafter identified). 4. As security for obligations then existing and thereafter arising, on or about February 14, 2003, Defendant executed and delivered a mortgage (the "Mortgage") and promissory note ("Note") upon the premises hereinafter described to. The Mortgage is recorded in the Office of the Recorder of Deed in and for Cumberland County, Pennsylvania, in Record 1796, at Page 1985, et. seq. A copy of the Mortgage is attached hereto as Exhibit "A" and a copy of the Note is attached hereto as Exhibit "B". 5. The Property subject to the Mortgage is described in the Mortgage attached as the last page of Exhibit "A" and is known as 3242 Enola Road, Carlisle, PA 17013 ("Property"). 6. The Mortgage is in default because monthly payments of principal and interest due and each month thereafter are due and unpaid. The terms of the Mortgage provide for the entire principal balance and all interest due thereon to be due upon failure of the mortgagor to make such payments after written notice to the mortgagor. 7. The following amounts are due on the Mortgage: (a) Unpaid principal balance $337,472.65 (b) Accrued interest $96,824.12 from 9/14/06 to 10/25/10 (Based on the current contract rate of 8.25% ) (c) Late Fees $6,438.11 (d) Attorney fees and litigation costs as of 10/25/10 $10,523.91 (e) Costs of Suit $192.00 TOTAL $451,450.79 plus attorney's fees and commission plus interest at $32.92 per diem. 8. The attorney's fees set forth above are in conformity with the Mortgage and Pennsylvania law, and will be collected in the event of a third party purchaser at Sheriff's Sale or if the Mortgage is reinstated prior to sale, reasonable attorney's fees will be charged. 9. Notice of Default as required by the Mortgage was provided to Morrison by Centric on July 21, 2008 and the temporary stay as provided by said notice has terminated because Defendant has failed to cure the default and/or failed to meet with Plaintiff or an authorized consumer credit counseling agency and/or has been denied assistance by the Pennsylvania Housing Finance Agency. True and accurate copies of the above notices, as relevant, were sent by regular mail and by certified mail, return receipt requested and are attached hereto as Exhibit "C" 10. Notice of Intention to Foreclose as set forth in Act 6 of 1974, and/or Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, was sent to the Defendant on July 21, 2008. A true and accurate copy of above notices, as relevant, were sent by regular mail and by certified mail, return receipt requested and are attached hereto as Exhibit "D". WHEREFORE, Plaintiff, Centric Bank, demands in rem judgment in its favor and against Defendant, Roger D. Morrison., in the amount of $337,472.65 principal plus interest accrued to date in the amount of $96,824.12, late charges of $6,438.11, attorney fees, litigation costs of $10,523.91 and all interest and attorney fees and costs that accrues hereafter until payment in full occurs, and other costs and charges collectible under the Mortgage and for foreclosure and sale of the mortgaged property, and such other relief as is just and proper. COUNT II - BREACH OF CONTRACT 11. The averments of Paragraph 1 through 10 are incorporated herein by reference as if fully set forth. 12. On or about February 14, 2003, Morrison executed a Promissory Note, a true and correct copy of which is attached hereto as Exhibit "B" for a principal amount of $348,000.00 at an initial interest rate of 5.250 percent (5.250 %) which adjusts in accordance with the Promissory Note in favor of the Plaintiff, Centric. 13. Centric provided Morrison with $348,000.00 in exchange for, inter alia, the promise that Morrison would repay this loan, as embodied in the Promissory Note, in Three Hundred Forty-Eight (348) consecutive monthly payments of $1,921.67 each with the first payment being due March 14, 2004, and the final payment due February 14, 2033. 14. The Promissory Note also provides, inter alia, the following: a. A late charge of 5% of the of the unpaid portion of the regularly scheduled payments shall be charged on any payment which is more than sixteen (16) days late; b. A default occurs under the Promissory Note if any payment is not made; C. After default, Centric, may, following any notices required by applicable law, declare the entire unpaid principal balance on the Promissory Note due and all accrued unpaid interest immediately due; and 15. 16. 17 18 19 d. Centric's attorney fees, legal expenses and Court costs shall be borne by the defaulting party under the Promissory Note. As of October 25, 2010, the current principal balance on the Promissory Note is $337,472.65 with accrued interest of $96,824.12 and unpaid late charges of $6,438.11, attorney fees, litigation costs of $10,523.91; thus the total amount due is $451,450.79 with additional interest per diem in the amount of $32.92. The Promissory Note by and between Centric and Morrison is a contract. Morrison's failure to pay under the terms and conditions of the Promissory Note is a default under the Promissory Note and a breach of contract. Centric is entitled to accelerate the entire principal balance and accrued interest under the Promissory Note as a result of Morrison's default and breach. In accordance with the terms and provisions of the Promissory Note, Morrison is obligated and liable to Centric for the following: Unpaid principal balance $337,472.65 Accrued interest from October 25, 2010 $96,824.12 Attorney fees and litigation costs $10,523.91 Unpaid Late Fees $6,438.11 Costs of Suit $192.00 TOTAL $451,450.79 plus attorney's fees and commission plus interest at $32.92 per diem. In addition, Morrison is obligated to pay Centric continued interest at a per diem rate of $32.92 from October 25, 2010, plus any additional attorney fees and Court costs in connection with this litigation. 20. Despite repeated demands for payment, Morrison has failed and refused to pay the amounts due under the Promissory Note. 21. Morrison did not have a valid legal excuse for his failure and refusal to perform under the Promissory Note. 22. All conditions precedent to recovery by Centric under the Promissory Note have occurred. 23. Because of Morrison's failure and refusal to pay Centric under the Promissory Note, Centric has been damaged as set forth above and is entitled to continued interest, costs and attorney fees. WHEREFORE, the Plaintiff, Centric Bank, respectfully requests this Honorable Court enter Judgment in its favor in the amount of $42,025.79 plus per diem interest in the amount of $32.92 from October 25, 2010 through date of Judgment plus any post-Judgment attorney fees, Court costs and additional relief as this Court deems proper and just. The amount claimed is not subject to compulsory arbitration in this Judicial District. Respectfully submitted, CUNN HAM & CHERNICOF C. By: ru J. arshawsky squire PA Atty. No.58799 2320 North Second Street Harrisburg, PA 17110 Telephone: (717) 238-6570 Date: November , 2010 Attorneys for Plaintiff F:\Home\BJW\I)OCS\CentricBank\Roger Morrison\Complaint in Mortgage Foreclosure.wpd VARTAN NATIONAL BANK, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO. V. CIVIL ACTION ROGER D. MORRISON, Defendant VERIFICATION I, Sheri L. Brown, Senior Vice President of Centric Bank, verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unsworn falsification to authorities. CENTRIC BANK j By: C?'- k. / Name: Sheri L. Brown Title: Senior Vice President Date: -12 2-7 l Zel a EXHIBIT `A' )C) owl) RECORDATION REQUESTED BY: Varian National Bank 3601 Varian Way Harrisburg, PA 17110 WHEN RECORDED MAIL TO: Vartan National Bank 3601 Varian Way Harrisburg, PA 17110 I :. ZI EC! crR ;i E ; Or DEEDS L.fiLAIN COUNTY-r '03 FEB ly PM 4 02 SEND TAX NOTICES TO: Roger D. Morrison 3242 Enola Road Carlisle, PA 17013 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS 17 A PURCHASE MONEY MORTGAGE THIS MORTGAGE IS DATED i - Q3 , between Roger D. Morrison, whose address is 3242 Enola Road, Carlisle, PA 17013 (referred to below as "Grantor"); and Vartan National Bank, whose address is 3601 Vartan Way, Harrisburg, PA 17110 (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, located in Cumberland County, Commonwealth of Pennsylvania (the "Real Property"): see attached . The Real Property or its address is commonly known as 3242 Enola Road, Carlisle, PA 17013. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all 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. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage. Terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Grantor. The word "Grantor" means Roger D. Morrison. The Grantor is the mortgagor under this Mortgage. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation 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 and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means Varian National Bank, its successors and assigns. The Lender is the mortgagee under this Mortgage. Mortgage. The word "Mortgage" means this Purchase Money Mortgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Property and Rents. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Real Property, this Security Instrument shall be a purchase money mortgage under 42 P.S. Section 8141. Note. The word "Note" means the promissory note or credit agreement dated February 14, 2003, in the original principal amount of $348,000.00 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 this Mortgage is February 14, 2033. 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 property, interests and rights described above in the "Grant of Mortgage" section. Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, 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, revenm 1 ipc7ng iO j rr ofits, and other benefits derived from the Property. ? U J 02-14-2003 MORTGAGE Page 2 Loan No 6150916 (Continued) THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: 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 governed by the following provisions: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Property and 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. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in this Mortgage, shall have the same meanings as set forth in 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, 42 U.S.C. Section 6901, at seq., or other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The terms "hazardous waste" and "hazardous substance" shall also include, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) 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 waste or substance by any person on, under, about or from the Property; (b) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (i) any use, generation, manufacture, storage, treatment, disposal, release, or threatened release of any hazardous waste or substance on, under, about or from the Property by any prior owners or occupants of the Property or (ii) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Lender in writing, (i) 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 waste or substance on, under, about or from the Property and (it) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, Including without limitation those laws, regulations, and ordinances described above. 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 waste and hazardous substances. Grantor hereby (a) 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 (b) 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 of a hazardous waste or substance on the properties. 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), soil, gravel or rock products without the prior written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. 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 its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the 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 taws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. 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 nor 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 its option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without the 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, tide or interest therein; 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 tide to the Real Property, or by any other method of conveyance of Real Property interest. If any Grantor is a corporation, partnership or limited liability company, transfer also J includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, .p as the case may be, of Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania iT law. 0 TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a 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 all liens having priority over or equal to the Interest of Cp Lender under this Mortgage, except for the lien of taxes and assessments not due, and except as otherwise provided in the following 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 Lender 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 forleclosure 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 02-14-2003 MORTGAGE Page La-an No 6150916 (Continued) 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 assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) 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. 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 thirty (30) 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 Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property at any time become 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 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 its election, 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 180 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. Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by this Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage, or at any foreclosure sale of such Property. TAX AND INSURANCE RESERVES. Upon request by Lender and subject to applicable law, Grantor shall pay to Lender each month on the day payments are due under the Note until the Note is paid in full, a sum ("Escrow Funds') equal to one twelfth of (a) all annual taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property and (b) annual premiums for policies of fire insurance with all risks standard extended coverage required under this Mortgage ("Escrow items'). Lender may estimate the amount of Escrow Funds on the basis of current data and a reasonable estimate of future Escrow Items. All Escrow Funds shall be held by Lender and applied to pay the Escrow Items when due. Lender will not charge for holding and applying the Escrow Funds, analyzing the account, or verifying the Escrow Items, unless Lender pays Grantor interest on the Escrow Funds and applicable law permits Lender to make such a charge. Grantor and Lender may agree in writing that interest shall be paid on the Escrow Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Grantor any interest or earnings on the Escrow Funds. The Escrow Funds are pledged as additional security for the amounts secured by this Mortgage. If the amount of the Escrow Funds held by Lender, together with the future monthly payments of Escrow Funds prior to the due dates of the Escrow Items, shall exceed the amount required to pay the Escrow Items when due, the excess' shall be, at Grantor's option, either promptly repaid to Grantor or credited to Grantor in scheduled payments of Escrow Funds. If the amount of the Escrow Funds held by Lender is not sufficient to pay the Escrow Items when due, Grantor shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Mortgage, or if any action or proceeding is commenced that would materially affect Lender's Interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, 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 (ti) 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. This Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be In addition to any other rights or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. 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 Lender 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. CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Mortgage. 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, nu t 7 Q ?;Qr. i q87 .02-14-2003 MORTGAGE Page 4 Loan No 6150916 (Continued) 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 as may be requested by it from time to time to permit such participation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (a) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) 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 (as defined below), and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (a) pays the tax before it becomes delinquent, or (b) 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 or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as ampnded from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other 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 assemble the Personal 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. 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 (each as required by the Uniform Commercial Code), are as stated on the first page of this Mortgage. FURTHER ASSURANCE; ADDITIONAL AUTHORIZATION. The following provisions relating to further assurances and additional authorization 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 Lender'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 (a) the obligations of Grantor under the Note, this Mortgage, and the Related Documents, and (b) 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 agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Additional Authorization. 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. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default") under this Mortgage: Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness. pp Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any 7C other payment necessary to prevent filing of or to effect discharge of any lien. `- Compliance Default. Failure of Grantor to comply with any other term, obligation, covenant or condition contained in this Mortgage, the Note or in any of the Related Documents. t.O False Statements. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Mortgage, the Cn Note or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. c0j Defective Collateralizatlon. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral "r documents to create a valid and perfected security interest or lien) at any time and for any reason. Q0 Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any Co assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency CHID laws by or against Grantor. Foreclosure, Forfeiture, etc. 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 of the Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied 02-14-2003 MORTGAGE Page 5 Loan No 6150916 (Continued) 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. 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. 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 the Event of Default. Right to Cure. If such a failure 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 (and no Event of Default will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure: (a) cures the failure within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the failure 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 any Event of Default and at any time thereafter, Lender, at its 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. Subject to applicable law, Lender shall have the right at its option without notice to Grantor 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. Lender 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 servo 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. 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 (a) pay a reasonable rental for the use of the Property, or (b) 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, m reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. .'*C •• •- Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not ?D exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Mortgage after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage. cri Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover ?0j such sum as the court may adjudge reasonable as attorneys' fees at trial and on any appeal. Whether or not any court action is involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of l? its rights shall become a part of the Indebtedness payable on demand and shall bear interest from the date of expenditure until repaid at the rate provided for in the Note. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, CIO Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings W (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 titre 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 TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Mortgage shall be in writing, may be sent by telefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, certified or registered mail, postage prepaid, directed to the addresses 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. 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. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. 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. Applicable Law. This Mortgage has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. This Mortgage shall be governed by and construed In accordance with the laws of the Commonwealth of Pennsylvania. 02-14-2003 MORTGAGE Page 6 . Loan No 6150916 (Continued) 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. 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 Lender. Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time Is of the Essence. Time is of the essence in the performance of this Mortgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is 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 any party of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. 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 any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in 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. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. GRANTOR: Roger S. Morrison CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, Varian National Bank, herein is as follows: 3601 Varten Way, Harrisburg, PA 17110 1/' for Mortgagee BKI796PGi990 02-14=2003 MORTGAGE Page Loan No 6150916 (Continued) INDIVIDUAL ACKNOWLEDGMENT STATE OF ?L°??,I?I/?'V )S8 COUNTY OF On this, the _ 1,3 day of 20123, before me ! ?.V r/C G • ?+ (A?`/`SQ?_ the undersigned Notary Public, personally appeared Rogq D. Morrison, known to me (or satisfactorily proven) to be the per whose name is subscribed to the within instrument, and acknowledged at he or she executed the same for the purposes therein contained, In witness whereof, I hereunto set my hand and official seal. LASER PRO, Reg. U.S. Pat. & T.M. Off., Ver. 3.29a(C)Concentrex2003 All rights NOTARIAL SEAL RONALD E JOHNSON, NOTARY PUBLIC CARLISLE BORO, CUWff M CO.. PP MY COMMON DPW FIRIIIIIIARY 23. 2W4 _ L yPwyP7sr`;': Public in and he State of E3.29 P3.29 RMORRIS.L 6K1796PG1991 ALL THAT CERTAIN lot or piece of land situate. in Lower Frankford Township, Cumberland County, Pennsylvania, with the improvements thereon erected, more particularly bounded and described as follows, to wit: BEGINNING at a point in the center of Legislative Route 944 at the southeastern corner of the property herein conveyed; thence North 80 degrees 50 minutes West along the center of Legislative Route 944 a distance of 635.50 feet to a point in the center of Legislative Route 944; thence North 85 degrees 14 minutes 46 seconds West along the center of Legislative Route 944 a distance of 345.68 feet to a point in the center of Legislative Route 944; thence North 17 degrees 10 minutes 51 seconds West along other lands now or formerly of Robert O. Lynch, et al., a distance of 1473.19 feet to a point; thence North 73 degrees 17 minutes 43 seconds East, a distance of 711.98 feet to a point at lands now or formerly of Joseph Brownawell; thence South 32 degrees 25 minutes 20 seconds East along lands now or formerly of Joseph Brownawell a distance of 902.51 feet to a point; thence South 13 degrees 41 minutes 24 seconds East along land now or formerly of Joseph Brownawell a distance of 1015.00 feet to a point in the center of Legislative Route 944, being the point and place of BEGINNING. CONTAINING 33.551 acres more or less and being more particularly shown on a plot plan entitled "Boundary Survey for Robert O. Lynch situated in Lower Frankford Twp. Cumberland County Pa. Scale 1 "=300' August 18, 1977" by Eugene A. Palm, Registered Surveyor. BEING the same premises which Dennis D. Diaz and Margaret A. Diaz, husband and wife, by their Deed dated December 20, 2002, and recorded in the Office of the Recorder of Deeds in and for Cumberland County immediately prior to the recording of this Mortgage, granted and conveyed unto Roger D. Morrison, Mortgagor herein. UNDER AND SUBJECT to a 50 foot wide right-of-way more particularly described in two Agreements of Sale of Property between Robert O. Lynch, et al. And Donald J. Conaway, and Robert O. Lynch, et al. And James E. Biden, Jr. and Janet P. Biden, both of which agreements are dated July 22, 1977, and recorded in Misc. Book 229 Pages 818 and 823, in the Office of the Recorder of Deeds of Cumberland County. UNDER AND SUBJECT ALSO to a right-of-way easement 14 feet in width along the line of land of Joseph A. Brownawell as particularly set forth in a Right-of-Way Agreement dated November 29, 1963, and recorded in the Cumberland County Recorder's Office in Misc. Book 164, Page 524. UNDER AND SUBJECT, nevertheless, to easements, restrictions, reservations, conditions, and rights of ways of record or visible upon inspection of premises. I Certify this to he recorded III CuIIII;erland County PA BK 1 7 9 b PG 1992 =--S, Recorder of Deeds EXHIBIT'B' PROMISSORY NOTE d Borrower: Roger D. Morrison 3242 Enola Road Carlisle, PA 17013 Lender: Varian National Bank Progress Office 3601 Varian Way Harrisburg, PA 17110 Principal Amount: $348,000.00 Date of Note: February 14, 2003 PROMISE TO PAY. I promise to pay to Varian National Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Three Hundred Forty Eight Thousand & 00/100 Dollars ($348,000.00), together with interest on the unpaid principal balance from February 14, 2003, until paid in full. The interest rate will not Increase above 11.250%. PAYMENT. Subject to any payment changes resulting from changes in the Index, l will pay this loan in accordance with the following payment schedule: 12 consecutive monthly principal and Interest payments of $1,921.67 each, beginning March 14, 2003, with interest calculated on the unpaid principal balances at an Interest rate of 5.250% per annum; and 348 consecutive monthly principal and interest payments in the Initial amount of $1,921.67 each, beginning March 14, 2004, with interest calculated on the unpaid principal balances at an interest rate of 1.000 percentage points over the index described below. My final payment will be due on February 14, 2033 and, will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Note. Interest on this Note is computed on a 30/360 simple interest basis; that is, with the exception of odd days in the first payment period, monthly interest is calculated by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by a month of 30 days. Interest for the odd days is calculated on the basis of the actual days to the next full month and a 360-day year. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the The Wall Street Journal 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 me. Lender will tell me the current Index rate upon my request. I understand that Lender may make loans based on other rates as well. The interest rate change will not occur more often than each year. The Index currently is 4250% 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 above In the "Payment" section. Notwithstanding any other provision of this Note, the variable Interest rate or rates provided for in this Note will be subject to the following minimum and maximum rates. NOTICE: Under no circumstances will the interest rate on this Note be less than -0.750% per annum or more than the lesser of 11.250% per annum or the maximum rate allowed by applicable law. Notwithstanding the above provisions, the maximum increase or decrease in the interest rate at any one time on this loan will not exceed 2.000 percentage points. Unless waived by Lender, any increase in the Interest rate will Increase the amounts of my payments. PREPAYMENT. I agree 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. Except for the foregoing, I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal balance due and may result in me making fewer payments. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the unpaid portion of the regularly scheduled payment. DEFAULT. I will be in default if any of the following happens: (a) I fail to make any payment when due. (b) I break any promise I have made to Lender, or I fail to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreement or loan I have with Lender. (c) Any representation or statement made or furnished to Lender by me or on my behalf is false or misleading in any material respect either now or at the time made or furnished. (d) I die or become insolvent, a receiver is appointed for any part of my property, I make an assignment for the benefit of creditors, or any proceeding Is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor tries to take any of my property on or in which Lender has a lien or security interest. This includes a garnishment of any of my accounts with Lender. (f) Any of the events described in this default section occurs with respect to any guarantor of this Note. If any default, other than a default in payment, is curable and if I have 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 (and no event of default will have occurred) if I, after receiving written notice from Lender demanding cure of such default: (a) cure the default within fifteen (15) days; or (b) If the cure requires more than fifteen (15) days, immediately Initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete 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 I will pay that amount. Lender may hire or pay someone else to help collect this Note if I do not pay. I also 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 and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated posHudgment collection services. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. If judgment Is entered In connection with this Note, interest will conti nue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania. If there is a lawsuit, I agree upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, the Commonwealth of Pennsylvania. This Note shall be governed by and construed In accordance with the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. I grant to Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my right, title and interest in and to, my accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly with someone else and all accounts I may open in the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts. pea-14-2003 PROMISSORY NOTE Loan No 6160916 Page 2 (Continued) GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest 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. PRIOR TO SIGNING THIS NOTE, I READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: Xz<??':°'.,<::i:::::?> :;?-s:';.`':?,. <:>'>Y<.>:?:t'ts:'s£?>??::?'?:?i5:::s'>:>:i<`:?sss`::>`>:::sss:::•?:a:;>:::.:rx: Roger EP Morrison Variable Rate. Installment. LASER PRO, Reg. U.S. Pat. & T.M. Off., Ver. 3.29a (C)Concentrex 2003 All rights reserved. IPA-D20 E3.29 RMORRIS.LN R1.OVlj CERTIFICATION AND AGREEMENT FOR CONTINUING PERFECTION AND COMPLIANCE Borrower: Roger D. Morrison Loan Number: 615091-6 February 14, 2003 Whereas, the undersigned has applied to Vartan National Bank (the "Bank") for a certain loan and/or financial accommodations in the amount of $348,000.00 and Whereas, the Bank has agreed to make the aforesaid loan, but only upon the condition that the undersigned agrees to the terms and conditions contained in the Bank's Commitment Letter dated January 31, 2003 (hereinafter called the "Loan Agreement"), and Whereas, the undersigned deem(s) it in (their) best interest to obtain the aforesaid loan, Now, therefore, in consideration of these premises and other good and valuable consideration, it is agreed as follows: 1. The undersigned will perform any and all steps requested by the Bank to: (a) create and maintain in the Bank's favor a valid lien and security interest in the collateral to be pledged to Bank pursuant to the terms of the Loan Agreement, including, but without limitation, the execution, delivery, filing and/or recording of promissory notes, guarantees, mortgages, security agreements, financing statements, continuation statements and the like, necessary in the opinion of Bank's counsel to effectuate the terms of the Loan Agreement, (b) execute and deliver any other documents necessary, in the opinion of the Bank's counsel, to complete, perfect and continue, but not to modify or change the terms of the Loan Agreement, and (c) the undersigned Borrower agrees, in consideration of VARTAN NATIONAL BANK, the Lender disbursing funds for the closing of a loan on Roger D. Morrison if requested by the Lender or any party acting on behalf of the Lender, to fully cooperate and adjust for clerical errors, any and all closing documentation deemed necessary or desirable in the reasonable discretion of Lender to enable Lender or to ensure enforceability of the loan if dept in lender's own portfolio. The undersigned Borrower agrees to comply with all the above noted requests by Lender within 30 days from the date of mailing of said requests by the Lender. The Borrower agrees to assume all costs including, by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to comply with lender's requests in the above noted time period. The undersigned Borrower does hereby agree and covenant in order to assure that loan documentation executed this day will conform and be acceptable in the marketplace in the instance of transfer, sale or conveyance by Lender of its interest in and to said loan documentation. Page 1 of 2 2. The undersigned agrees that the terns, provisions and conditions set forth in the Loan Agreement, to the extent that same are not contained in the final documents or have not been fully complied with by the time of the disbursement of loan proceeds to the undersigned by the Bank, shall survive the closing of the loan. 3. The undersigned further agrees to provide the Bank with and/or certifies to the Bank (a) since the date of the application for the loan which is being closed concurrently with the delivery hereof ("Closing"), there has been no unremedied adverse change in the financial or any other condition of the Borrower or any of the undersigned, (b) the undersigned received a true and complete copy of each document or other instrument signed in the connection with the closing, (c) all taxes of the Borrower and undersigned are current and all- future taxes will be paid when due. 4. Each of the undersigned acknowledges and agrees that failure to comply with the terms and conditions contained herein, or to furnish the Bank with proof thereof upon Bank's request, shall constitute an act of default under the mortgage and/or security agreement executed by the undersigned in connection with this loan transaction, which default shall entitle Bank to any and all remedies, including the acceleration of the unpaid balance of the loan, set forth in the said mortgage and/or security agreement. By. RN-A Q W\ Roger 'b. Morrison Date Page 2 of 2 EXHIBIT `C' JORDAN D. CUNNINGHAM CUNNINGHAM & CHERNICOFF RC HERSHEY TELEPHONE ROBERT E. CHERNICOFF , . (717) 534-2833 MARC W. WITZIG ATTORNEYS AT LAW BRUCE J. WARSHAWSKY P.O. BOX 60457 IRS NO. 23-2274135 KELLY M. KNIGHT HARRISBURG PENNSYLVANIA 17106-0457 TRACY L. UPDIICE , Street Address: 2320 N. 2nd Street Harrisburg, PA 17110 TELEPHONE (717) 238-6570 FAX (717) 238-4809 Writer's Direct Email: biwAcclawoc.com July 21, 2008 THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED AND REGULAR MAIL Mr. Roger D. Morrison 3242 Enola Road Carlisle, PA 17013-9545 Re: NOTICE OF DEFAULT AND RIGHT TO CURE Loan Account Number: 6150916 File No: 606806 Dear Mr. Morrison: Please be advised that I represent the interests of Centric Bank f/k/a Varian National Bank in the collection of monies due and owing under the above-reference loan account under that certain note dated February 14, 2003 ("Note"). The above account is now twenty-three (23) months past due. Our records indicate that your next due payment date is August 14, 2008, and you have a past due balance as of July 21, 2008, totaling $63,327.91 (past due principal amounts plus interest and late charges) plus attorney's fees to be determined. Enclosed is your Act 91 Notice. You have thirty (30) days from the date of this letter to either (1) pay your past due balance of $63,327.91 plus any interest of $72.39 per day and attorney's fees and costs associated with this collection or (2) if you cannot pay the balance due and owing within the given time period, contact me and advise me of when you can pay the full balance due and owing. CUNNINGHAM & CHERNICOFF, P.C. • ATTORNEYS AT LAW Mr. Roger D. Morrison July 21, 2008 Page 2 If you fail to either pay the past due balance of $63,327.91 plus any interest at $72.39 per day and attorney's fees and costs incurred as a result of this collection or contact me and advise me of when you can pay this balance within thirty (30) days from the date of this letter, we may proceed with mortgage foreclosure proceedings on your property located at 3242 Enola Road, Carlisle, PA 17013 based upon the mortgage executed contemporaneously with the Note. Should you have any questions or concerns regarding your rights in this regard, please contact your attorney. Very truly yours, INGHAM &`C?HERNICOFF, P.C. Bruce J. W shawsky BJW/ja Enclosure cc: Doris K. Ney Lawrence G. Frank, Esquire F:1Home\BJW1DOCS\CentricBank\Roger Morrison0amand lettermpd ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE DATED: July 21, 2008 This is an official notice that the mortgage on your 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 MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 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 Housing Finance Agency toll free 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 to you. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICATION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES EFECTA 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 ARIBA, PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAM 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: Roeer D. Morrison PROPERTY ADDRESS: 3242 Enola Road, Carlisle, Pennsylvania 17013 LOAN ACCT. NO.: 6150916 ORIGINAL LENDER: Centric Bank CURRENT LENDER/SERVICER: Centric 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 country in which the property is located is 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 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 completed 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: 3242 Enola Road, Carlisle, Pennsylvania 17013. IS SERIOUSLY IN DEFAULT because: YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: September 14, 2006 to July 14, 2008, in the amount of $60.437.33 ($2,627.71 x 23 months Other charge (explain/itemize):Unpaid late charges of $2,890.58 TOTAL AMOUNT PAST DUE:$63,327.91 plus interest at $72.39 per day from July 21 2008 B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $63,327.91, PLUS INTEREST AT $72.39 PER DAY FROM JULY 21, 2008, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to Centric Bank 3601 Vartan Way Harrisburg, PA 17110 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 in may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sole 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 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 THIRTY (30) DAYS, 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 sheriff's 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 associated 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 beapproximately three (3) months from the date of this Notice. A notice of the actual date of the Sheriff's 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: Centric Bank f/k/a Vartan National Bank Address: 3601 Vartan Way, Harrisburg, PA 17110 Phone Number: (717)909-8308 Fax Number: (717)657-7748 Contact Person: Connie L. O'Hara, Collections Manager EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's 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 Sheriff's 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 or X 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 THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE T HAN THREE TIMES IN ANY CALENDAR YEAR.) TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. TO ASSERT ANY OTHER DEFENSE YOU BELIEVE MAY HAVE TO SUCH ACTION BY THE LENDER. TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY Adams County Interfaith Housing Authority 40 E. High Street Gettysburg, PA 17325 717.334.1518 CCCS of Western PA 2000 Linglestown Road Harrisburg, PA 17102 888.511.2227 lk Community Action Commission of Capital Region 1514 Derry Street Harrisburg, PA 17104 717.232.9757 Loveship, Inc. 2320 North 5`' Street Harrisburg, PA 17110 717.232.2207 Maranatha 43 Philadelphia Avenue Waynesboro, PA 17268 717.762.3285 PHFA 211 North Front Street Harrisburg, PA 17110 800.342.2397 F:\Home\BJW\DOCS\CentricBank\Roger Morrison\ACT 91 FORM.wpd k , r A. Signature X ? Agent, 0 Addressee B. Recei by (Printed.Name) D to of WIN ?- ? ?p is D. Is delivery address different from item 1? ? Yes If YES, enter delivery address below ? No 3. Service Type P15srtlfl Mail ? Express Mali ? Registered m Receipt for Merchandise /U ? Insured MaN ? C.O.D. . 4. Restricted Delivery? Xkba Feat ? Yes 2. Article Number , 7Q 3020i _ 00112 $377 8266 (YransWrom servke abe) 7 PS Form 3811, February 2004 Domestic Return Receipt 102595o2-M-t540. ¦ Complete items 1, 2; and 3. Also complete item 4 If Restricted Delivery Is desired. ,...11111, Print your name, and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front If space permits. 1. Article Addressed to: r? kit ' ?tr?-diU•C1 Postal (Domestic CERTIFIED Only MAIL... RECEIPT ; Provided) a rU CO • Ma!M • r- F FI 1-. fL, - ,U t` CO Postage $ 11 COMW Fes C3 C3 aturri Mrdor t?R°quired re M 0 ResMCtsd D°Ynery Fse (F.ndoreemeM Required) X'4 ___ . t ru M Total Postage & Few r' 0 N 3"i?f Tiro- --- --- or PO Box - -------- ---- - d? `a ; CENTRIC BANK f/k/a VARTAN NATIONAL BANK, V. Plaintiff ROGER D. MORRISON, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA -, NO: 10-7030 CIVIL ACTION ACCEPTANCE OF SERVICE I, Lawrence G. Frank, Esquire, accept service of the Complaint on behalf of Roger D. Morrison and certify that I am authorized to do so in accordance with Pa. R.C.P. 402. By: La ce G. Frank, squire Thomas, Long, Niesen and Kennard 212 Locust Street Suite 500 Harrisburg, PA 17101 Dated: F:\Iiome\BJW\DOCS\CentncBank\Roger Monrison\Acceptance of Servicempd CENTRIC BANK IN THE COURT OF COMMON PLEAS f/k/a VARTAN NATIONAL BANK, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO: 10-7030 V. CIVIL ACTION - 3 z? c7 - ROGER D. MORRISON, -<> o r? rn r- c? CD Defendant °? .. _ M STIPULATION FOR ENTRY OF JUDGMENT IN MORTGAGE FORECLO$1JRe The Plaintiff, Centric Bank Oda Vartan National Bank ("Centric"), by and though its undersigned attorneys and the Defendant, Roger D. Morrison ("Defendant"), by and through his undersigned attorney, hereby stipulate to entry of an in rem Judgment in mortgage foreclosure (Count 1) in the captioned actions as follows: On November 4, 2010, Centric filed the captioned action against the Defendant for two (2) Counts. Count I, an in rem action in mortgage foreclosure and Count II, an action for breach of contract. Centric and the Defendant have agreed to stipulate to entry of a Judgment in mortgage foreclosure in the captioned action. WHEREFORE, Centric and the Defendant request this Court to enter an Order granting Centric's in rem mortgage foreclosure action and entering an in rem Judgment in mortgage foreclosure (Count I) against the Defendant and in favor of Centric for the amount of FOUR HUNDRED FIFTY-ONE THOUSAND FOUR HUNDRED FIFTY DOLLARS AND SEVENTY-NINE CENTS ($451,450.79) as of OCTOBER 25, 2010 as of October 25, 2010, plus interest at the rate of Thirty-Two Dollars and Ninety-Two Cents ($32.92) per day after October 25, 2010, plus additional attorney fees and expenses and other expenses and amounts to which Centric is entitled under the agreement and documents that evidence and secure the amount owed to Centric by the Defendant or is otherwise entitled at law, through the date of payment of the full amount owed to Centric by the Defendant, including on and after the date of entry of entry of Judgment pursuant to this Stipulation and for costs and for foreclosure and sale of the tract of land, together with any buildings and improvements, located at 3242 Enola Road, Carlisle, Lower Frankford Township, Cumberland County, Pennsylvania - Tax Parcel Number 14-04- 0383-048A, as more particularly provided in the Centric's Complaint filed in this action. CUNNINGHAM & CHERNICOFF, P.C. By: N AMK Bruc J. ars awsky, Esquire 2320 North Second Street Harrisburg, PA 17110 Date: December7l , 2010 Attorneys for Plaintiff THOMAS, LONG, NIESEN AND KENNARD By. Lawren G. Frank, squire 212 Locust Street Suite 500, Harrisburg, PA 17101 Date: December W , 2010 Attorneys for Defendant F:\Home\BJW\DOCS\Centric Bank\Roger Morrison\Stupulation for Entry of Judgment in Mortgage Foreclosure.wpd U'.44 l 3 /Oil s CENTRIC BANK IN THE COURT OF COMMON PLEAS f/k/a VARTAN NATIONAL BANK, CUMBERLAND COUNTY. PENNSYLVANIA Plaintiff NO: 10-7030 .,, V : CIVIL ACTION . :zm ? ROGER D. MORRISON, Defendant rw y ...] ORDER ?? ? AND NOW, this L day of ?G1-1UM-y , 20/,/ , upon consideration of the Stipulation for Entry of Judgment in Mortgage Foreclosure between the parties filed in this action, IT IS HEREBY ORDERED that the Stipulation is approved and Judgment is hereby entered on Count I, an In Rem Judgment in Mortgage Foreclosure against the Defendant and in favor of the Plaintiff, Centric Bank fWa Vartan National Bank ("Centric"), for the amount of FOUR HUNDRED FIFTY-ONE THOUSAND FOUR HUNDRED FIFTY DOLLARS AND SEVENTY-NINE CENTS ($451,450.79) as of October 25, 2010, plus interest at the rate of Thirty-Two Dollars and Ninety-Two Cents ($32.92) per day after October 25, 2010, plus additional attorney fees and expenses and other expenses and amounts to which Centric is entitled under the agreement and documents that evidence and secure the amount owed to Centric by the Defendant or is otherwise entitled at law, through the date of payment of the full amount owed to Centric by the Defendant, including on and after the date of entry of this Order and for costs and for foreclosure and sale of the tract of land, together with any buildings and improvements, located at 3242 Enola Road, Carlisle, Lower Frankford Township, Cumberland County, Pennsylvania - Tax Parcel Number 14-04-0383-048A, as more particularly provided in the Plaintiffs Complaint filed in this action. DISTRIBUTION LIST Bruce J. Warshawsky, Esquire - Cunningham & Chernicoff, P.C., 2320 North Second Street, Harrisburg, PA 17110 '/Lawrence G. Frank, Esquire - Thomas, Long, Niesen and Kennard, 212 Locust Street, Suite 500, Harrisburg, PA 17101 F:\Home\BJW\DOCS\CentricBank\Roger Morrison\Order.Mortgagempd L- 1 ' ?OI I DIE& 'JAN 0 3 ?f111 CENTRIC BANK IN THE COURT OF COMMON PLEAS f/k/a VARTAN NATIONAL BANK, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO: 10-7030 r-, V. CIVIL ACTION - 3 G Co -.:+._7 r?1 _n ? -am ROGER D. MORRISON, ° CD-a Defendant's ca STIPULATION FOR ENTRY OF JUDGMENT IN MORTGAGE FORECLO?CR The Plaintiff, Centric Bank f/k/a Vartan National Bank ("Centric"), by and though its undersigned attorneys and the Defendant, Roger D. Morrison ("Defendant"), by and through his undersigned attorney, hereby stipulate to entry of an in rem Judgment in mortgage foreclosure (Count I) in the captioned actions as follows: On November 4, 2010, Centric filed the captioned action against the Defendant for two (2) Counts. Count I, an in rem action in mortgage foreclosure and Count II, an action for breach of contract. 2. Centric and the Defendant have agreed to stipulate to entry of a Judgment in mortgage foreclosure in the captioned action. WHEREFORE, Centric and the Defendant request this Court to enter an Order granting Centric's in rem mortgage foreclosure action and entering an in rem Judgment in mortgage foreclosure (Count I) against the Defendant and in favor of Centric for the amount of FOUR HUNDRED FIFTY-ONE THOUSAND FOUR HUNDRED FIFTY DOLLARS AND SEVENTY-NINE CENTS ($451,450.79) as of OCTOBER 25, 2010 as of October 25, 2010, plus interest at the rate of Thirty-Two Dollars and Ninety-Two Cents ($32.92) per day after October 25, 2010, plus additional attorney fees and expenses and other expenses and amounts to which Centric is entitled under the agreement and documents that evidence and secure the amount owed to Centric by the Defendant or is otherwise entitled at law, through the date of payment of the full amount owed to Centric by the Defendant, including on and after the date of entry of entry of Judgment pursuant to this Stipulation and for costs and for foreclosure and sale of the tract of land, together with any buildings and improvements, located at 3242 Enola Road, Carlisle, Lower Frankford Township, Cumberland County, Pennsylvania -- Tax Parcel Number 14-04- 0383-048A, as more particularly provided in the Centric's Complaint filed in this action. CUNNINGHAM & CHERNICOFF, P.C. By: IhA Bruc J. ars awsky, Esquire 2320 North Second Street Harrisburg, PA 17110 Date: DecemberV , 2010 Attorneys for Plaintiff THOMAS, LONG, NIESEN AND KENNARD By. Lawren G. Frank, squire 212 Locust Street Suite 500, Harrisburg, PA 17101 Date: December 'W , 2010 Attorneys for Defendant F:VHome\BJW\DOCS\Centric Benk\Roger Morrison\Stupulation for Entry of Judgment in Mortgage Foreclosure.wpd NAUMAN, SMITH, SHISSLER & HALL, LLP By: J. Stephen Feinour, Esquire Attorney I.D. No. 24580 200 North Third Street, 18`h Floor P. O. Box 840 Harrisburg, PA 17108-0840 T: (717) 236-3010/F: (717) 234-1925 CENTRIC BANK f/k/a VARTAN NATIONAL BANK, Plaintiff V. ROGER D. MORRISON, Defendant ?t 11 ?1AY -9 Phi 3. t;1 FHB Yt A Its s Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION -LAW : No. 2010-7030 PRAECIPE TO SATISFY JUDGMENT To the Prothonotary: Mark the judgment entered January 5, 2011, in favor of Plaintiff, Centric Bank f/k/a Vartan National Bank, in the amount of $451,450.79 in the above matter satisfied. NAUMAN, SMITH, SHISSLER & HALL, LLP ByZ-.I,L- L_? ' Date: May 6, 2011 14. ephefi Feinour, Esquire preme Court I.D. No. 24580 200 North Third Street, 18th Floor P. O. Box 840 Harrisburg, PA 17108 Telephone: (717) 236-3010 Counsel for Plaintiff, Centric Bank f/k/a Vartan National Bank 0,0?,o 14(