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HomeMy WebLinkAbout10-7580Cr~ 1 fi~ ~E~~ ~^I.~1 ye~~Tf ~~•,y! !, ~_., ~ ~ I Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717)975-9446 AMERICHOICE FEDERAL CREDIT UNION Plaintiffs v. SALVATORE NICASTRO AND LIVIA NICASTRO Defendant Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBE''\RLAND C~OyUNTY, PENNSYLVANIA NO. 1V-1Sbd CIVIL ACTION -LAW CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against Defendant as follows: a. Principal $5,847.37 b. Interest to December 6, 2010 $ 350.27 c. Attorneys Fees $9,231.40 d. Attorney Fee pursuant to $5,000.00 Confession of Judgment - Guarantee TOTAL $20,429.04 plus interest accruing at a rate of $1.00 per diem after December 6, 2010 plus costs Respectfully Submitted, >, Date: December ~ , 2010 t' ~., `r,.::: , Mi~ha~l 5. Pykosh, Esquire Atty I D: 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 (717) 975-9446 Attorney for Plaintiff ~a ~~~ a~~~ Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717) 975-9446 AMERICHOICE FEDERAL CREDIT UNION Plaintiffs v. SALVATORE NICASTRO AND LIVIA NICASTRO Defendant Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION -LAW COMPLAINT PURSUANT TO Pa.R.C.P. 2951(b) FOR CONFESSION OF JUDGMENT FOR MONEY DAMAGES AND NOW, this ~ day of December, 2010, comes the Plaintiff, AmeriChoice Federal Credit Union, by and through its undersigned attorney, Dethlefs-Pykosh Law Group, by Michael J. Pykosh, and files this Complaint, and in support thereof avers as follows: 1. The Plaintiff, AmeriChoice Federal Credit Union, is a corporation with a principal place of business at 2175 Bumble Bee Hollow Road, Mechanicsburg, Cumberland County, Pennsylvania, 17055. 2. The Defendants, Salvatore and Livia Nicastro are adult individuals with an address at 288 Bradley Circle, New Cumberland, PA 17070. 3. On or about October 14, 2003, Defendants' son Eric L. Nicastro executed a Note for an SBA Loan, with an SBA Loan Number of GP 665 042 40 02 HBG, in favor of Plaintiff, in the amount of $40,000.00, copy of which is attached hereto as Exhibit "A". 4. On or about October 14, 2003, Defendants executed an unconditional Personal Guarantee, a copy of which is attached hereto as Exhibit "B", guaranteeing the aforementioned SBA Loan. 5. The SBA Loan is currently in default. 6. The aforementioned Personal Guarantee requires Defendants to guarantee all amounts due under the Note and to pay all amounts due under the Note when Lender makes a written demand upon them. 7. The aforementioned Personal Guarantee requires Defendants to pay all expenses Lender incurs to enforce the Guarantee including, but not limited to, attorneys' fees and costs. 8. As a result of collection efforts to enforce the Note during a Chapter 13 Bankruptcy filed by Eric Nicastro, Plaintiff incurred Attorneys' fees in the amount of $9,231.40. 9. Plaintiffs have demanded payment from the Defendants, but Defendants have neglected and refused, and continue to neglect and refuse, to pay the same. 10. The unconditional Personal Guarantee executed by Defendants provides for Confession of Judgment and an attorneys' commission related thereto in an amount not less than Five Thousand Dollars ($5,000.00). 11. There is justly due and owing to the Plaintiff from the Defendant on account of the aforesaid breach the sum of $ 20,419.01, calculated as follows: Unpaid principal balance of SBA Loan $ 5,847.34 Interest to December 6, 2010 $ 350.27 Attorneys' Fees $ 9,231.40 Attorney Commission per Confession of Judgment-Guarantee $ 5,000.00 Total $ 20,429.04 WHEREFORE, Plaintiff demands judgment against Defendants in the amount of $20,429.04, plus interest accruing at a rate of $1.00 per diem after December 6, 2010, plus costs and such additional sums as the Court determines are due and owing, including additional attorney fees. Respectfully s b i By: Michael J. l~ikosh, Esquire Attorney I.D. No. 58851 2132 Market Street Camp Hill, PA 17011 Telephone (717) 975-9446 Attorney for Plaintiff VERIFICATl4N 1, Dallas Zulli, verify that the statements made in this Complaint are true and correct to the best of my personal knowledge, information and belief. I understand that false statements made herein are made subject to the penalties of 18 Pa. C.S.A §4904, relating to unsworn falsification to authorities. Date: By: f~,. - ~~ Fes'! - ~ ' alias Zulli, Vic Jresi~nt AmeriChoice Federal Credit Union 111.0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 07122 U.S. Small Business Atiminist~ati~n NOTE SBA Loan # GP b65 042 40 02 H13G S9l~ Loan Name I~ioest,m C}tiKpptaetie Hcalth Ccntcr pate October 14, 2003 Loan Amount 540,000.00 Interest s=tate Prune rate plus 3°/s Borrower uric L. Nicastro Clperating Company N/t~ lender AmeriChoioe Federal Credit Union 1. PRQMISE TO PAY: In rekum for the Loan, Aorrower promises to pay to the order of Lender the amount at' Fumy Thausaynd and No/10Q 0a1~~ interest on t3te unpaid principal bals~tlce, and alI Other amounts required by tt-is Nate. ~. D~FINI"I~i?NS: "irallatcral" means any praporty talrert as security far payment of this Norte or snY guszantoa of this Note. "Guarantor" rn.eana esatt person or entity that sigrl8 a guarantee of payrnelu of this Nete. ,.Loan" zr~ceuts the loan t:vidertoed by this More. "I.oatt l~caarne,tks" moans klka documeets related to this Ioan signed b3' @axrower, uny Guet'abtor, or anyone who pledges collataraL "5$A" means the Smatl $usiness Administration, an Agency of the Unitdd 5taiea of America. ~~BR SHA Form I A7 {U6N31n2j VeiEjOa 4.1 Psga 116 111'0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 08122 PAYMENT TERMS. i3orrowar must make a!1 payments at the place Lender designates. 7"Itc payment terms t~br this Nnte era: The inte~st rRtc pn this None will fluctuate. The initial ioteresi rate is 7°/.per yetis. 'Iltis tnidsl talc is the prime rate on the clefs SSA ttettived the loan app]it;ation, plus 346. The initial interest rare must rcmasn in effect until the first change period begins. t3prroWer crust pe~y principal and interest payments of Sb04.Qi) every month, beginning one morttlt froth the month this Nate is dated; payments must be made oft the 8th calendar day in the mouths they axe due. Lender will apply each ittstalltttent ptiyment first to pay interest scented to the day Lender receives the payment, then to bring principal CUtrent, titon to pay any {ate fees, and ltritl apply arty remaining, balance en reduce principal_ The interest rate will be adjusted rnonWly (the "change period"), 'I`!te "ptirx~e Rate" is the prima rate in effect on the first buxinesx day of the month in wlzicb an inmrest rate char~ga acaurs, as published in the Wall Street Intunat on the next bwsir-eea day. The adjusted interest fete will be 346 above the Prime Race. 1,eoder wit! adjust the interest rate on tare fast calendar day o1't:ach clrartge poriad_ The change frt interest taco is effective an that day whether tx not Leader gives Borrower notit:c of the change, 'lire initial interest rate mu9t t'emairt in effect until the ftt^st change period begins. [.ender trust adjust the payrtent amount at least antaually as needed to amortize principal over the remaining terrtt of the note. !f SBA, purchases the gttarantced portion ofthe utlpaid pritcipal balance, the interest rate betimes faced at the Tate in effect a# the liras of the earliest uncured paymerrt d°fhuir, ifthere is no urrcured payment default, the rate becomes faced at the rate in efl`ect at the rim[: Of purchase. AI) rernairring principal and accrued inter,~st is disc and payablo 7 years from the date of Note. Late Charge: If a paymene on this Nate is more ttran !d days late, Lender may charge Batrower a late fee of up to 5Y° of the tmpeid portion of rho regularly uhedukd payment. Lean lrrcpaytttent: Notwithstanding any provision of this Note m the contrary' Borra~var ~y Pt~Y this Note_ )3atrowar may prepay 30 percent or less of the unpaid principal balance at prly titxre without notit;e. If Aomdwer prepays more than ?A°~E and the Loan has been sold ou the secotrdrtty rnarkck, Borrower must: a. Give Lender writteo native; b. pay aft accrued interest; and t:. ff the prepayment is received Tess than 21 days from the date Lender receives the notitx, pay afl amanr+t C+qurlt to 21 days' itttereat frarn the data lender receives the notice, less any interest accrued dtuittg tb,e Z1 days and paid under subparagraph b., above. l['Borrowar does szoF prepay within 34 days from the date Lender receives the votive, Borrower must give Lender a new :fatice, seA Form ia~r f~r03n72) Versus 4.t Pegs Zl6 111'0312010 14:37 7179752309 DETHLEFS-PVK05H LAW PAGE 09/22 4. DEFAULT: BorrcwYCr is in default urrtkr tlris Notc ifBorrowcr does ztOt ritalCt: d payment wryer/ due under this 1+iotc, pr if BorrO~r or t]peradng Company: A.. Fails try tto anytlrittg .required b'Y this Nate amd other Loan 1~ocumerFts; S, Defaults on any other loan with Lender, C. Dora not pressrun, or accauttt to I,cudcr`s satisfaction for, any of the Collat~crai or i:ts proceeds; 1?, paea not disclose, ar e~,yol6a asking on their hcYralf does not dir~close, ~rry material fact to Lander or SBA; E. Makes, or anyone acting on their behalf makes, a materially false or misleading reprrsernrstioo to Lander or SB.A~ F. Defaults on any !Dart or agreement with another creditor, if Lauder belieees the default may materially affect blarcower's ability to pay this Note; G. Pails to pay any taxes wheat dur; H. Becaanes the subject of a proceeding under any bankruptcy or insolrcnty law; i. Has a t'eceiver or ligaidator appointed for any part of their busines,~ or property; ]. Makt^s an assignment for the benefit of creditors; K, Has arty adverse change in furarteiai canditiart or busimess operation that Lender belierea may materially affect Borrower's ability m fray Phis Norte; G. Rearganixes, merges, cansalidatcs, or otherwise changes ownership or bus~ess structure without Lentl~'s prior written consent; ar M. Becomes the subject of a civil ar criminal action that Lender betieveg may materially AfFeck Borrauver's ability to pay this Note. 5. LENDt3tt'S R]GHTS fF THE 1$ A t?EFAtJLT; Without notice or derrmnd and without giving up any of its rights, Lander may; A_ Require immediate payrraertt of all amounts owing under this Note; B. CoElect al[ amounts awing from any Bnxrower or Guarantor; C. File suit and t]btain judgrztent; D. Tnke possea~iaat of any Collateral; qr E. Sell, lease, or otherwise di~ose of, any Collateral at public ar private sale, with or without advertisement 6. LENDE!€'S gENERAL POWERS: Vtifithaut notice and without Borro~vcr'a cnziserzl, Lender mny: A. Biel orr or buy the Collateral at its sale or the solo of another lienholder, at arty price it ehoosts; B, /near ezper~es to collect azrtounts due ttnrler this Note, eaforae the te[ms of this Note or nay other Loan Dpcument, and preserve or diapost of the Collateral. Among other things, Lhc eRpe»ses may iucludc payments ;for property tease, prior Liens, insurance, appraisals, envirottmentai remedistigrl eosttt, artd reasonable attorney's fees and costs. If Lander incurs such expenses, it may demand immediate repayrnt:nt #JtOm 13axrnwer or ardd the expenses to the principal balance; C, lteloase anyarxe obligated to pay this Nvte; L1. Compromise, release, renew, extend ar substitute any of the Collateral; and E, Talta nay action necessary to protect fire Collateral qt collect amounts owing on this Note. 5HA Form l47 (tIWd3l021 Veraibn 4.! p~ ~ 111312010 14:3? 7179752309 DETHLEFS-PVKOSH LAW PAGE 10122 7. W1^lEE'~ FEDBt. LAW Al'PI,IES: Vl~herl, Sl3A is the holder, this Nate will ba intcrprctcd and enforced under federal law, ipe)udlrlg 51~A regulations. Lender or 313!A mey use state or local procedtues for fiEing papers, recording dreurnertts, Si~°8 [zotiac, foreclosing Bees, a[td other purpottes. By using sash pxtlCedures, SBA does not waive any t'8deral imneunity from state or local control, ptnalty, tax, or liability. As to this Nate, Borrower rit9.y not Claim or assert against Sa3A say lt>cat or state law to deny any ab{igalion, defeat any claim of 9~A, or preenrQt federal law. 8. SUCCESSORS AND ASSIGNS; lJodcr this 1Vatc., Borrower and Ogteratiog Company inoiuda the successors ofeat:h, aq~d l.cndar includes its Successors and assigns. 9. GIrNExAI. FROvlsxoNS: A. All individuals and entities Signut-g this Nose are jointly and severally liable. B. Barrmver wt-ives all suretyship defenses. C. E3orrower must sign all documents necessary at any time to comply with the loan Doetrtrsents and to enable LendaK t4 aacluirc, perfect, or rrtaintnitt f.endCt's Eiens On Collateral. D, l.cndcr may axeraise airy oPits rights separately ar together, as malty tithes and in any ardor it chooses. Lando znay delay or forgo enforcing any ot" its tights without giving up hey oTtltetn,. E. BolCrpwer rrmy ztat use ari otal statement of Lender or 58A to contradict or alter the written farms of this t~lata F. If any Qazt of tills Note is ttn¢nfoa'ceabEe, all other ~ remains effect G. To the extent allowed by law, kloo[rower waives aEl demands and notlct:s in connection with this l~lote, including preseatmenta demand, protrs#, and notice of dishortaz. Borrower also waives any def'eASes based upon any Claim that Lender dad sot obtain a~ gtrarantcc; did not obtain. pt;rlect, or maintain, a lien upon Collateral; itttpaited Collateral; trr dad oat obtain the fair market valtta t)f Collatetal at a sale. SSA Form 147 (O6/Q3/Q2) VerSigp 4.1 Page lily 111'0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 11122 10. STATE-5PECIFiC PROVlS101VS: CONFESSION OF 3UdC11+tlxNT, $ORROWI~R BERRY V4I.UNTARILY, KNOWINGLY, UNDI±RSTANDINGLY AND IRREVbCABi.Y AUTHORIZES AND EMPOWERS THE PRpTHpNQTARY OR ANY ATTORNEY OF ANY CQUAT IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWiiERB AT ANY TI M$ TO APPEAR FQR AND CONFESS ~[JDGMENT TfIEREIN AGAIN5T $bRR044~ER FOR (i} FITHESR,'I'kIE ENTIRE ORIGINAL PRINCIPAL SUM Olc TItiS NOTE, pR (~) TFIB ENTIRE UNPAID PRINCIPAL BALANCE OF'I'I~IIS NOTE AND THE ACCRUED AND UN'FAID RfiST THERfiON AND LATE GFIARGES AND ALL OTHER SUMS DUE UNDER OR IN CONNECTION WITH TfiXS N~ AND ANY OF'TI3E OTIiE,It LOAN DOCUMENTS. WHETHER OR NOT A DEFAULT IiAS OCC[IRRED, AND WITH OR WITHOUT COMPLAINT FILED, A5 ELECTED 13Y LENDER; AND IN EI'I H1MR CASH TOGETFffiIt IiVI'1'It COS"C9 OF SHIT, AND AN A'I"Y'ORNEY' S COMMISSION OF FIVI? F.EI,tCENT (S"!s,), $UT NOT LESS THAN FIVE TROUSANU DOLLARS (55,000.40), WITH REI..EASE OF ERRORS, AND 1NTTH4UT RIGB'!' OF APPEAL; AND FOR SO t70ING, THIS i~tOTE OR A CQFY HER&OF V~s1LIk'IETa BY AFFIDAVIT OR SWORhI STATFr1vI sl"N'a" SIiAI.L B£ SUFFICIENT WARRANx'. BOI~OWER WAIVES THE RICfHT TO ANY STAY OF E?CEGUTION AND TIiB BBNEFTI OF ALL EXF.I~IPTIpN LAWS NOW OR IiEREAFTER iN EFFECT. I?7CECUTION MAY IMMEDIATELY' $E 158UED ON THE NDQMENT, WTI'IiOUT PRIOR NOTICE ORFYEARtNG,'Tt) C3ARNISH, [.EVY OR ATT.A,CI•I ANY hERSONAI. PItOPlxRTI'' OF BOItRO~I'ER_ NO SINGLE EXERCISE OF THE FO1tEG0iIVG WARRANT AND POWER TO CONF8S5 .IUDGMENT SIiALL SE i?EEM$p TO EXHAUST 7EiE POWER, WHIzTIi13R OR NOT ANY SUCH !?XERCtSE Sk{ALL $E HELP BY ANY COURT TO BS INVALID, VOII)A'8L8, OR VOID, BUT TFIE FOWEIZ SHALL CA~1'I'INUB Ui3UTMIi,TISHBD AF1D MAY HE EX$RCISEU FROM TIME TO TIME AS pFTEN AS LENDER SHALL ELECT, UIVT[L ALI, 5UM3 PAYABLE OR THAT' MAY AECOME PAYABLE $Y BpRROWER HAVE BEEN PAID iN FULL. 3BA PO[YIS 147 (b6103102) VM9iOn A.1 Pago ~6 11/'03!2010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 12122 7. WHEN PIiDER.A]_. LAV4f APP't.[ZrS: W]ten SaA is the holder, this Note v~+ll be int~etpreted aad enforced under federa{ Iaw, inatading SHA regulations. L.crzder or SB,A, mny use state ox local procedures for filing papers, t~ecording rtacarnents, giving notiao, fnr~l.osing liens, and other purposes. t3y us4ng such procedures, SBA doe~q z+dt waive soy fedtsral immunity t'rom state ar local control, penalky, tax., or {lability. As to this Note, Barraw~r may not clean or art against SflA any local or state law to deny arty obligation, defeat suty claim of SBA, or preempt federal ]sw. 8. SUCCESSORS AND A3SIGN8: Under this Note, Borrower and Qperating Cotnpaay include the successors ot'6ach, apd tetrdtr includes its successors at-d assigns, 9. 4ENERAL PRUVI5ION5: A. All individuals attd enrities signing fills Note are jointly and severally liable. 8. Borrower waives all soretyskdp defenses. C. Borrower muse sign all documents necessary at any time to eotrtply with the Loan f)pcuments attd to onabl~e !.ender to acquire, pelt, or maintain Lender's Liens vn Collateral. D. Lender may exercise spy pf its rights separately UY together, a8 teary tirnes and in any order it cktoases, Lender may delay nr forgo enforcing any of its rights without giving up any of them. ~. Botxovror may not use an oral statemetrt aF'bender ar SBA to contradict ar altar tfte .written terms of tltia Note, P_ >If arty part of this Noe is unerxforeeable, a]I other parts remain ixa efl'ea. G. Te the extent allowed by law, Harrower waives all demands and notices irr ebpraeeNon with this Note, including presentment, demand, Protest, and notice of dishonor. 8otrower slag waives any dafeuses based upom any claim that Lender did not obtt3in arty guriranten; did not obcait:, perfect, nr tttaintain a Nett upon Collateral; impaired Collateral; ar did not obtain the fair market value of Collateral at a sale. SSA Fota+ 1 A3 (pslg3ltl~) Yr.~lpd 4, t tie V~ 111.0312010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 13122 10. STATESPECTFIC pROV1STbA3S: CONFES5ION OF 1WGNiEN'T. BORROWER HEREBY VOLUNTARILY, KNOWZNGi.Y, UNLIERSTANDINGLY AND IRRI3VOCABLY AUTHORIZES AND EIvIS'DWIwRS THE pItQTHONOTARY OR ANY ATTORNEY OF A.NY CQTIRT IN TFIE COMMONWBALTFT OF PFiNNSYi,VANIA OR ELSEWHERE AT AN'!f TIME TO APPEAR ,FOR AND CONFES5 NDCMENT TfiEREIN ACaA11+IST BORROWER FDR (I) EITHER THE EN'T'IRE OR}L~Ii+iAL PRIHICIPAL SUM OF TIiIS NDTE, 4R {Z}THE ENTIRTs UNPAID FRINGIP~#.L BALANCE DF T}Il5 NOTE AN37 TH8 AGGRUED AND UNPAID INTEREST TFtEREON ANT) I:ATE CHARf3F5 AND A2.L OTHHR SUMS DIVE UNDER DR IN CONx+tI;GTION WITH THIS NOTE AND ANY OF THE OTHER LOAN S~QCUMLN'TS, WkiETI~IirR OR NOT A I,7FiFAULT HAS OCCURRBD, AND WITH OR WITHOUT CQMPItAINT' FILED, A5 ELECTED BY I,BN)~ER; AND Ih1 ET'I7rT&R CASE TOfIfiTHBR WI3'Fi COSTS OF SUIT, AND AN A77UEYNEY'S C()MMTSSTQN OF FIVi? PERL'ENT (S°iC), BUT N4T LESS THAN FIVE THOUSAND DOLLARS (SS,IIOfI.Qfl), WITH RIiLEASE OF I?RRORS, AND WIIHQUT RIGHT OF APPEAL; ANT? FOR SO UOING,'I'HTS NOTE OR A CpT'X I3EREOF VERIFIED BY gFFIAA,V[T OR SWQRN ST,ATi~Ir~Nx SMALL BE SttIrFICIBNT WARRANx. BORROWER WAIVES TINE ItICtHT Tf) ANX 3TAY OF EXECUTION AND THE 13ENEFTT OF ALL FaCF.MPTION LAWS NOW OR 13EttEAFTER 1N EFFECT. E}CFCUTION MAY IMA~DIATI3I.Y 9 E TSSUEIa QN THE JUDCrMBNT, WITHOUT PRIOR NOTICE OR HEAIl.FNG, TP DARNISTi, LEVY aTt A,'ITAGH ANY PERSOl~FAL PROPERTY OF BORROWER. N4 91N(3~Lfi E7{ERCISE OF THE FOkLGOiNG WARRANT AND PDWBR ~'0 CONFESS 3[3D4MENT' SHALT. SE DEEMED TO EXHAUST TkTIr P[[3W~ WFI&THER OR NOT ANY SUCH P~F.CIST: SFIALL BE Fi'ET,D BY ANY COURT T(} HE TNVAI.[D, vamAHLL, Q[t VOID, BUT THE FClWEIt SHALL CONTINCTE UNUTMINISHED AND MAY 13T? EXERCISED FRt}M TIME TO TIME A3 (3F'TEN A,S LENDER 5FiALL ELECT, UNTIL Ai.L SUMS PAYABLE OR THAT MAY SEGOivIE PAYABLE 8'Y BOIIROWETi FTAVB BEEN PAID TN FULL. 88A Parm 147 (b6f031U2} V`afion 4.1 Fags S!6 11/03/2010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 14122 ) I , B41i.ROWEit'S NAME(S) AFVD SIGI+iATURE(S1: By signing below, each individual oz entity becomes abligatecl under this Nate as Barrawer. sy: tSIt.A~.j Eric icast~ra SHA Penn t 47 (86103102) version A.1 PaOe fits 11f0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 15122 11S $mpSt lit:xiam /ldminTplral9an U.S. Small Bt;<siun~ss Ad77rtiiaxst~ratian ~ UNC4NDITlONAL GVARANT~~ BE3A Loam ~ GP 6b5 042 4~ p2 HBG $~A Loan Name Nicastro Chiropractlo l;ealtti Center Guarantor 9alvatnrt: Nicasbro and 1,ivia Nicastro Borrower Eric L. Nict+stxo Lender A.meriChoice Federal Gtsdit Uniott Date ~ UctAlxs 14, 2003 Note Atnou~t $40,000.00 1. GUA1tA.N'['EE: Guarantor wncortd'itianally guaracmes paymenk to bender of all amounts owing under tlTe Note. ']'his Guarantee remains in effect until the Nate is paid in foil, Guarantor must pay all atn0unt5 dos wader the Nate when Lender mattes written demand upon Guarantor. Lender is trot required to seek payment from arty other sourrro before dememding payrtTeiwt fratn Gnarttt:tor. 2. NOT1a= The "Nate" is the promi~ory riots dated October 14, 2003 Thousand and No/100 L?ollars, ftorn borrower to Lender. It ireludes any assumption, renewal, substitution, or replacement of the Natc, and multiple notes under a line of credit. 3. J)EF1N1T10N8: "Collateral" means any propczty #alten as security fpr payment of the Note or any guarantee of the Note. "Loan" means the loan evidenced by the Note. "Loan Dooume»t9" means the documents related t0 the Loan signed by DaTTmver, Guarantor or any other guarantor, tx anyone who pledges Coltatcral. "SHA" moans t)~a SrnaJl Business Administration, an Agoncy of the United States of America. EXH~~fT SBA Form Iag (Id/y8? Pnviova editipp~obealcte. Rest IIS i><t the principal amount of 11f0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 16122 4. LENDER'S GENEItAI., pUVVERS: }.,ender rztey take arty of the fallow%ng actions at any time, without notice, without Guarantor's consent, and without makiatg demand upon Guarantor. A. Modify the terms of 13xe Note or arty ottler Loan Aocrunent except to increase the arnouuts due under the Note; B. R;e~rain from taking ~-,Y zctioat on the Note, the Collateral, ar any guarantee; C. Release arty Bprrpwer or any gttararrtor of the Nate; D. Cpmprorniso or settle with the 9otrower or ~,y guarantor of the Nate; E. Substitute or rolease any of the Cotlatl, wttettter or not Lender receives attythiag In retwxt; F. ):orecioso upon or oxlllerwise obtain, and dispose of, any Collateral tU public or private sale, with or withauk advertisemdtt; G. Bid pr>yuy at any sale ot'Gpllateral by Lender or any other lierdtolder, at any price Lender chooses; stud Fl. Exercise arty rights it bas, including those in tba Nato and other Laan 1ocuments. These aotians will not relt.xse pr reduce the obligations of Ciaaraatnr or create any rights or claims against Lender. 5. FEDERAL. LAW_ When SBA is the holder, the I~Eoce and this Guarantco will be construed and enforced under federal law, including SBA regulations. Lender or SBA mazy use state or local procedtues for ftling papers, recording docurneuts, giving notice, foreclosing liens, and ocher fiurposes. Hy using such pracedur*~s, 513A does ant waive any federal ltxumunity from slate or local control, peltttity, tax, or liability. As to this Csvararttee, Gttarantnr may not claim or asset any loud or state law 1<gninst 58A 6a deny arty obfi~titm, defeat any alaiz~n o~5D,At, or preempt federal law. 6. R1Crl~'I'S, tdOTJCP.S, AND D1EF1~NSE3 THAT QUARANCt)tt WAVES: To the extent permitted by Law, A. Guarantor waives al] rights to: 1 j Require presentment, protest, or demand upon Borrower, 2} l~odcetn any Collatmal before or after i4ander diepaees alit; 3} Have any dispositiptt of Collateral advertised; and 4) Require a valuation of Collateral beforo or after Lender disposes pf it. B_ Guarantor weaves any notice of: l) Atty dcfatrlt under the Note; 2) l}resentmeatt, disltortor, protest, or dergaxtd; 3) bxecutiop of t]ae )Vote; 4) Any action or iutaation an the Note or Collateral, such as disbursements, payment, nonpayment, accelctation, latent td aoceleracc, assigameat, collection activity, and incurring enfottxrnent expenses; 5} Any ohaage in the fir-altciai condition ar business operations of 13prrower or any guarantor; sj Atty changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Nate; and 7) The tune or place o£ arty sale or outer disposition of Collateral. C. Guarantor waives de#ences ha_sed upon any claim that: 1) Lcndor failed tq obtain say guarantee; 2) Lender fhiled to obtain, perfect, or maintain a security interest ire ~Y property offered or taken a5 Collateral; 3) Leader or others improperly valued or inapacted tlae Collateral; 4) The Callatet'al chartged in value, pr was neglected, lost, destroyed, or urtdetinsured; SE/1, Pam 146 flors9) -4evtoua edtttoros tio~atele. rage 775 1110312010 14:x;7 7179752309 DETHLEFS-PVKOSH LAW PAGE 17122 S) Lender impaired the Collateral; b) Lender did not dispose of any of the Collateral; 7) I.eo,der did not conduct a cortumercially reasnnahie sale; $) Lender did slot obtpin the fair market value of the Collateral; 9) lender did not make ar perfect a claim upOrt the depth or disability of Botxower or any guarasttpr of the Note; ' 10) The financial caudition of Borrower or any guarantor was overstated ar has adversely ahatt},'ect; 11) Lender made errors or ortsissions in Loan Docvroents or edmsnistration of the i,aaa: l2) Lrrsder did mat seek lsayment from the Borrower, any other guerarators, or any Collateral before demanding payment from i3taaranlor: i 3) Lender itrtpaitt:d Guarantor's suretyship rights, 14) Lender nwdifiod the Note terms, other than to intxease eidtounts due ender the [Vote, if Lender modifies the Nate to incaease the arnaunts due under the Nato without Guarantor's coassen~ Guarantor will not be liable for the inorcasCd aursattnts and related interest and expenses, but remains liable fox alt other amounts; IS) Borrower has avoided liability on the Nnte; or t 6) Lender Isar taken an action allowed under the Nate, this Guarantae, er outer Loan Documents. 7. DUTIES AS Td CaLLATI,RAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this t3uarerttee. Lender has no duty to preserve or dispose of pny Cailatesal. $. SUCtrESSQtiS ARID ASSIt:3NS: Lander this Gttatratxtee, Guarantoz includes heirs and sacgesyors, and Lender includes ils suacessora and assigns. 9. CrENERAL, PR,QVISIflI~iS: A. i~NFDRCEI4IENT E~{PENSES. Guarantor promises la gay alt expenses Lender incurs to enforce tlsas Guarantee, including, but not limited to, attoxzaey's fees and costs. t3, SBA NCXI' A CC?-GUATtAM'QR. Guauaattor's liability will continue even if SSA pays Loader. SIjA i6 ,wt a ~o.. guarantor with Guarantor. Guarantor bas no right of contribution from SBA. C. SUSROGA'I!•IDN RiGI-1TS- CFUarantor has no subrogation rights as to the Nate oY tha Collateral until the Note is paid in full. I)_ J0.1NT AND SEVERAL LIABILITY. All izsdi~iduals and entities suing as Guarantor arc jointly end sevetapy Iiable. E. DOCIJIvIIcNT SIGNli~1G. Guarantor must sign all documents necessary at any tithe to comply with the Lawn Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collated. F. FINANCIAL. SxATEMENT3. Guarantor must give Lersder financial statements as Lender requires. G. LbND1wl?C'S It1GH'I'S CIIMULATNE, RIOT WAIVER. Lender may exercise any of its rights separately or tpgether, as many times ss it cltoases. Lender may delay or forgo enforcing any of its rights without losing or impairing any oftlsem. H. DRtU.. STATl;I4I>wlVTS NOT BINDING. Guarantor may not tare as oral statement tq carnradict ar alter the written terms oFthe NoAc or this Guarstitee, ar to raise a defense to this Guarantee. 1. S13VEILAl3ILlTY. if clay part oFthis Guarantee is found to be unessfarceable, all other parts will remain in effect. J. CONSIDI;RAT101+t. 'lfie eonsidarntion for tlsis Geiarnntee is Uae Loan or any aceontmodetion by Lender as to the loan. SBa Form taa (~Ql98) Prev:o,~ cdixians absoteec PagF3/5 11/'0312010 14:3? 7179752309 DETHLEFS-PVKOSH LAW PAGE 18122 1 a. STATE-SPECIFIC PftOVi5I(yNS: (}UARANTOR HEREBY VOLUNTARILY, KN4tiVINGLY, i3NDE,RSTANDWGLY AND IRREVOCABLY AUTHORI~E.S ANI? EMPUW1zRS THE PROTHONOTARY OR AIvTY AT70RNI Y QX; ANY CDURT IN TIE CoivINtONwfiALLTH OF Pi:NxsYLVAx[A (71t >rLSEWHER'E AT ANY TiMIr TO APPEAR FOR AND CONFESS 1U1iX'MENT THERI3IN AGAINST GUARANTOR FOR THE ENTIRE UNPAID pItINCfPAL BALANCE OF THE NOTE AND THIx ACCCtUED AND UNPAID ~T THERRON AND LATE CHARt3E5 ANA ALL OTHER SUMS DUE UNDER OR IN CO~GTION WITH'THH TiOTE,'UVIi£TH13R OR NQT A DiiFA,UI.? 11A5 OCCURRED, AND WITH OR WIxHAUT COMPLAINT FILED, AS fiLBCTED BY LfiNDBR, TOGETHER WITH C03TS OF SUIT, AND AN ATTORNBY'S COMMISSION OF FIV> PERCENT {5ptn), BUT NDT LE55 TkIAN FIVE THOUSAN1y DOLLARS {SS,ooa•oa), WrrH RELEASE of ERE~ORS, AND W17HOUT RIGFIT OF APPEAL; AND FOIE SU DOING, TI3iS QUARANTB.E OR A COPY HERfiOF VERIFIED HY AFFIDAVIT' OR SWQ1EtN STAT>;A2ENT SHALL BE SUFFICII?NT WARRANT. GUARANTOR WANES THE RIt~17IT TO ANY STAY OF 67~C'[)'I'IQN AND THE BENEFIT OF At.L. F.3~EMPTION LAWS NOW OR HFREA-FfER IN FsFFECT. F.XRCUTiON MAY 1MMSDIATBLY BE 185 [TE1) ON T'HE I[IDGM}?N'C, WITHQUT PRIOR NOTICE 4R HEARWG, TO GARNISI•I, I.EVIr OR ATTACH ANY PEItSONAJ. i?ROPERTY OF GUARANTOR NO 5iNGLE >s~RCiSE OF 1'HB FOREGOING WAl#JRANT AND PQVJEk TO CONFESS IUDQMEI4T SEIALL EE DEEMED TQ E7CfiAI3ST THH POWER, W,Hi3'fHBR OR NOT ANY SUCH EJCERCiSfi SI3ALL BEHELD BY ANY CDURT TO Br~ INVALID, VOTI7ABl~E, 4A VOID, BLTF THE POWER SI-I,ALL GONTINCJIz UNDiMiNI3#iED AND MAY BE E7CEItCISED FROM "l IMB TO TIME AS OFf6N AS LENAI3R SFIALL ELECT, UN71~. ALL SUMS PAYABI E OR THAT.' MAY BECOME YAYABLF BY GUARANTOR XIAVI~ KEEN PAID IN FULL. SSA Form Id$ (]0198j P*evio,a ediliw,s o6aoiele. Page 4!5 1110312010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 19122 ! i_ GUARAN"CGR ACIC.NQWCEDGiV1ENT 4F'~f'tMS. Guesantor aalcnw+ledgas shat Guarantor has read and undzrstands the sigtlifica.-tce of ali terms of dta Note aad this C3uanantee,tncluding all waivers. 12, GU.AILANI'4R I~fANIP.(S; AND 5lGNATURE{S): fay signing below, each individual or entity becomes obligated as~}ar~ier,F.uacie:r th~ ~1~ualy~tore Nicrestro F i gy, ~ ~ (5EAL) ivia Nicastro 58A Form !a8 (tol9sa pnovious cdiCioas ohaoleta Page S/S 111'0312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 20122 DISCLOSURE FOR CdNFESSZUN OF JUDGMENT TIIE UNDERSIGNED iS EX.ECUTI1rfG, THIS 1d~ DAY OF OCTOBER, X003, A NOTE ["NOTE'S PAYABLE" TO AMERICHOrCE FEDERAL CREDY'I' UNYON ("LENDER"} 1~I CONNECTION WITH A LOAN IN THE AMOUNT OF Sd0,O000 TO T UNDERSIGNED FUR COMMERCIAX. PURPdSES. IlVITIALS: ~ TI'IE UNDERSIGNED'S ATTORNEY UR A REFRESENTATNE OF LENDER HAS E~LFLAINED TO TSE CJN'I3ERSIGNED TII,AT TkXE NOTE CQ~ITAINS WORDING THAT WOULD FERA~IIT TIIE LTs NDEE. 'x'd ENTER JUI]GIVIENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, 'WHETHER OR NOT AN EVENT OF DEFAiJLT HAS 4CCURREA, WITHOUT NOTICE, ,AND WITHOUT OFFERING THE OPPORTUNITY TO DEFEND AGAINST '['I3EIE ENTRY 4F JLJAGMENT, ,AND TEAT THE HUDGMENT MAY SE COLI.ECTEA BY ANY LEGAL 11+IEANS WITHOUT PRIOR NOTICE OR A HEARING BY USE OF THE SXIERIFk', WIIO MAY SERE PROPERTY, REA.I. AND PERSONAL, WITHOUT PRIOR NO'I'XCE dR BEA.RING. INCTiALS:,~ IN EXECUTING TBE NOTE, THE UNDERSIGNED IS 1~N1]WllVGLY, UNDERSTANDINGLY, AND YOLUNT°uYr.Y WAIYIlYG THE RIGHT T4 RESYST TIIE Ei~TRY OF JUDGMENT AGAll~tST 'THE UNDERSIGNED) AT THE CO~CJRTHOUSE, AND IS CO1+~SENTING TQ THE CdNFESBION OF JUDGMENT. THE UNDERSIGNED I~iJRTHER IS I~~NOWTNGLX, UNDERSTANDINGLY, ANA VOLUNTARY WAN~TG THE UNDERSYGNEA'S RIGHT TO ANY PRXdR NOTICE UR BEARING PRIOR TO THE LENDER'S SEIZING OF PRt1PERTY BX WRIT OF EXECUTINN ,A,GAIN5T BAND ACCdUNTS AND FERSONAL ANDlOR RTAL FROPEIZT~.' AFI'ER'~E ATTAINMENJ' dF A .TU'DGMENI` BY CCINI~SSION. I~IITIALS:-~Y~r S THE UNDERSIGNED CERTIFIES THAT TT~E NOTE 'VAS EKECU'~'ED IN CONNCCTidN WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE 1UNDER3IGNED'S INCQME EI~CEEDS S1U,OOO.OU ANNUALLY, AND THA'I' THE UNDERSIGNED HAS RECEIVED A COPY OF THIS I]ISCLOSURE AT THE TIME OF SIGNING. WITNESS: ~ d~ ~' SEAL. I{,.R{c L. NICASTRo 11x03/2010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 21122 DISCLOSURE FOR GONFESSrON O JCrDGM~.rIT THE UNDTIGNED IS EXECUTING, THxS I~Tx DAY Off' OCTOBER, Zp03, AN UNCONDiTI4NAL GUARANTEE ("GUARANTY") P,A.XABLE TO AMERICHOICE k'EbERAL CREDIT U~1ION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $q.p,OpQ,pU TO EitXC L. NICASTRO, FUR C011AAIERCIAL PIfRFOSES. Yi~TITIALS: '~E UNDERSIGNED'S ATTORNEY OR A REPRESP'NTATIVE OF LENDER HAS EXPLAINED TO THE UNDERSIGNED THAT TAE GUARANTY CONTAI1+15 WORDING THAT WOULD PEEN THE LENDER TO ENTER JUDGMENT AGAINST TkIE UNDERSIGNED AT x~ COURTHOUSE, WHETI~ER. 0-R NOT AN EYENT OF i3EFAULT HAS OCCURRED, WITHOYJT NOTICE, AND WITHOUT QF~RING THE OPI'ORTiJNITY TO DEFEND AGAINST THE 4NTRY OF .IC!'DGMENT, AND THAT TIIE JUDGMENT MAY BE COLLECTED BY ANY LEGAL ME,A~S WITHOUT A PRIOR NOTICE QR A HEARING SY USE 4F THE SHERIk'F, WI3[O MAY SEIZE PROPERTY, REAL AND PERSONAL, WITHOi]T PRIOR NOTICE 4R HEARING. INITIALS IN EXECUTING THE GUARANTY, T~ UNDERSIGNED IS KNOWINGLY, UNDETtS'X'ANDINGLY, AND VOLUN'T'ARILY WAIVING 'T'HE RIGHT TO RESIST THE ENTRY OF JUDGMENT AGAINST THE UNDERSIGNED ,AT THE COURTHOUSE, ANA I$ CONSENTING TQ TX~ CONTi'ES,SiQN OF JUDGMENT. TINE U~VDERSIGNEII IS ~'t7RTHER KNUWIlVGLY, UNDER.STAND1NGt~', A1~D VULUIVTARILY WAIVING THE RIGHT TO ANX PRIOR NOTICE OR kIIEARING PRIOR Td THE LENDER'S SEIZTI~iG Ok' PROPERTY BY VVRi'T OIi' EXECUTXC?~1 AGAINST BANK ACCOUNTS AND PERSONAL AND/OR REAR. PROPERTY AFTER THE ATTAI~iI-I?ENT OF A ,rCTDGMENT BX CONFESSXON. LNITIALS• THE UNDERSIGNED CERTik'IE5 THAT THE GUARANTY WAS EXECUTED IN CONNECTION WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, Tli,t~'I' THE UNDERSIGNED'S INCOME EXCEEDS $I0,(!©O.QO ANNUALLY, AND THAT THE UN.~ERSIGNED RECEIVER A COPY OI` THIS DISCLOSURE AT THE TIME OP' SIGNING. WITNESS: ..,,. //... B ~ T ~' ~` y- ~ tsEA~.> f SALVATORE 1V(~ASTRO f ' 1110312010 14:37 7179752309 DETHLEFS-PVKOSH LAW PAGE 22122 DISL:LOS.~RE 'Olt CONFESSION OF JUDGMfi.~9T THE i7NDEILSIGNED IS E7~CUTING, THIS 14~ I~AY QF OCTOBER, ZOQ3, AN UNCONDITIONAL GUARANTEE ("GUARAN'T`Y") PAYABLE TO AMERICITiOIGE FEDERAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AIVIOUNT OF !640,QOU.QO TO ERIC L. NICAST O, FUR COMMERCIAL PURPOSES. INITIALS' THE i]NDERSTGNEb'S dTTORNEY OR A. REPRESENTATIVE OF LENDEkt N.AS EXPLA1N~:D TO THE UNDERSIGNED THAT TH.E GUARANTY CONTAINS WORDING THAT WOULD PERMIT THE LENDER TO ENTER JUDGMENT AGAINST THE I:TNDERSIGNED AT THE COtJIt.TROUSE, WHE'T'HER OR NOT AN EVENT OF DEFAULT HAS OCC'U~RRED, WITHOUT NOTICE, AND WTTHOT]T OFFERrNG TTTE OPPORTUNITY TO DEFEND AGAINST T'ITE ENTRY OF JUDGMENT, AND THAT THE JUDGMEN'T' MAY BE COLLECTED BY ANY I.,EGAL MLANS WITHOUT A PRIOR NOTICE OR A HEARING BY USE Off" THE SHERIFF, WHO MAY SEIZE PROPERTX, REAL AND PERSOI.YAL, '~THOUT PRIOR NOTICE OR HEARIN YNITIALS llY EXECUTING 'T`HE CrUARANTY, THE UNDERSZGN,CD XS K1~iOWINGLY, X7NDE1~5TANDINGLY, AND VOLUNTARILY WAIVING THE RTG~'f TO RESI8T TBE ENTRY OF .II7DGMENT AGAINST THE UNDEILSTGNED AT TYIE COURTHOUSE, AND LS CONSI';NTIN'G '.C'O TINE CONFESSION OF JUDGMENT. THE UNDERSIGNED IS FURTHER KNOWINGX.~C, UNDERSTANDINGLY, AND VOLUNTARILY V4rAIVING THE RIGHT TO ANY PRIOR NOTICE UR IIk:ARING PRIOR TO THE LENDER'S SEIZING OF PROPERTY 13Y iYRIT OF E~CUTTON AGAINST HANK ACCOUN`X'S ANA PERSONAL AND/OR REAL PROPERTY AVER THE NT OF A Jt1T)GMENT BY CONFESSION. TNITxALS• TAE UNDERSIGNED CERTIFIES THAT THE GUAItA.N'I'Y WAS EXECUTED IN CONNECTION WITH A CO~RCIAL TRANSACTION AND DOES NOT INVOLVE ,A CONSUMER TRANSACTION, THAT THE U~EItSIGNED'S ~TCOME E~CEEI)S Sl.p,pOQ00 ANNUALLY, AND THAT THE UNDERSIGNED RECEIVED A. COPY OF THIS DISCLOSURE AT THE TIME OF SIGNING, WITNESS: ~~ f ~--• By: (SEAL) LIMA NICASTRO ~ 310 DEC - g PP4 1: I'~3~lt3~RL~~f3 GO~,'v, r Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717)975-9446 AMERICHOICE FEDERAL CREDIT UNION IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs NO. ~ u _~~ S $~d v. SALVATORE NICASTRO AND LIVIA NICASTRO Defendants CIVIL ACTION -LAW NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON TO: Salvatore Nicastro and Livia Nicastro 288 Bradley Circle New Cumberland, PA 17070 A judgment in the amount of $20,429.04 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOUR OR YOU MAY LOSE YOUR RIGHTS. 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. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 BY: //' Michael J. Pykosh, Esquire Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717)975-9446 AMERICHOICE FEDERAL CREDIT UNION IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs Cpr NO. Ib-~JO~ v. CIVIL ACTION -LAW SALVATORE NICASTRO AND LIVIA NICASTRO Defendants TO: Salvatore Nicastro and Livia Nicastro 288 Bradley Circle New Cumberland, PA 17070 You are hereby notified that on ~' 2010, judgment by confession was entered against you in the sum of $20,429.04, in the above-captioned case. DATE: _ ~z /9 _ 7 ~ Protho tary 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. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 I hereby certify that the following is the address of the Defendants stated in the certificate of residence: Salvatore Nicastro and Livia Nicastro 288 Bradley Circle New Cumberland, PA 1707 Attorney for Plaintiff Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY AmeriChoice Federal Credit Union vs. Salvatore Nicastro (et al.) t ILED-Or EIC _i HE F'?O I H0;?'O 1p r 29160"C 29 0110: ?47 '"1JMBERLAt,@ VOLMI4 `• PENNSYLVAMA Case Number 2010-7580 SHERIFF'S RETURN OF SERVICE 12/10/2010 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Salvatore Nicastro, but was unable to locate him in his bailiwick. He therefore deputized the Sheriff of York County, Pennsylvania to serve the within Complaint and Notice according to law. 12/10/2010 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Livia Nicastro, but was unable to locate her in his bailiwick. He therefore deputized the Sheriff of York County, Pennsylvania to serve the within Complaint and Notice according to law. 12/15/2010 09:47 AM - York County Return: And now December 15, 2010 at 0947 hours I, Richard P. Keuerleber, Sheriff of York County, Pennsylvania, do herby certify and return that I served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Livia Nicastro by making known unto herself personally, at 288 Bradley Circle, New Cumberland, Pennsylvania 17070 its contents and at the same time handing to her personally the said true and correct copy of the same. 12/15/2010 09:47 AM - York County Return: And now December 15, 2010 at 0947 hours I, Richard P. Keuerleber, Sheriff of York County, Pennsylvania, do herby certify and return that I served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Salvatore Nicastro by making known untc himself personally, at 288 Bradley Circle, New Cumberland, Pennsylvania 17070 its contents and at the same time handing to him personally the said true and correct copy of the same. SHERIFF COST: $53.44 December 27, 2010 SO ANSWERS, RONh1Y R ANDERSON, SHERIFF SHERIFF'S OFFICE OF YORK COUNTY Richard P Keuedeber PETER J. MANGAN, ESQ. Sheriff Solicitor Reuben B Zeager Richard E Rice, II Chief Deputy, Operations Chief Deputy, Administration AMERICHOICE FEDERAL CREDIT UNION i Vs. SALVATORE NICASTRO (et al.) Case Number 10-7580 SHERIFF'S RETURN OF SERVICE 12/15/2010 09:47 AM -DEPUTY BRET NEWCOMER, BEING DULY SWORN ACCORDING TO LAW, SERVED THE REQUESTED NOTICE OF INTENT TO EXECUTE UNDER RULE 2958.1 BY "PERSONALLY" HANDING A TRUE COPY TO A PERSON REPRESENTING THEMSELVES TO BE THE DEFENDANT, TO WIT: SALVATORE NICASTRO AT 288 BRADLEY CIRCLE, NEW CUMBERLAND, PA 17070. :&*.4 .? _ BRET NEWCOMER, DEPUTY 12/15/2010 09:47 AM - DEPUTY BRET NEWCOMER, BEING DULY SWORN ACCORDING TO LAW, SERVED THE REQUESTED NOTICE OF INTENT TO EXECUTE UNDER RULE 2958.1 BY "PERSONALLY" HANDING A TRUE COPY TO A PERSON REPRESENTING THEMSELVES TO BE THE DEFENDANT, TO WIT: LIVIA NICASTRO AT 288 BRADLEY CIRCLE, NEW CUMBERLAND, PA 17070. -_LK BRET ? NEWCOMER, DEPUTY SHERIFF COST: $51.00 December 22, 2010 SO ANS RICHARD P K ERLEBER, SHERIFF -------------------------------------- --------------------------------- NOTARY Affirmed and subscribed to before me this 22nd DECEMBER 2010 C Nv day of N (c)CountySuwteSheriff Teleosoft, Inc. LISA L. THORPE. NOTARY PUBLIC CITY OF vp,RK YORK CCUN Y MY COMMISSION E-X-IRESAUC 12 2013 AMERICHOICE FEDERAL CREDIT UNION, Plaintiff V. SALVATORE NICASTRO and LIVIA NICASTRO, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 CIVIL ACTION ORDER r? c rnw zrn 3:;o a? Q X a x?. 2 N -fl 3 c? aD ..n z rn? -or" ::0o C:) I z C-n Z cj rn a -< kD AND NOW, this 20 day of Jam; , 2011, upon consideration of the foregoing Defendants' Petition To Strike or To Open Judgment by Confession, it is hereby ordered that (1) a rule is issued upon the Plaintiff ("Respondent" hereafter) to show cause why the Defendants ("Petitioners" hereafter) are not entitled to the relief requested; (2) the Respondent shall file an answer to the Petition within days of this date; (3) the Petition shall be decided under Pa.R.Civ.P. 206.7; (4) depositions shall be completed within days of this date; 2011 / (5) argument shall be held on in Courtroom No. of the Cumberland County Courthouse;,elt3.,3,0 P. ky) (6) execution shall be stayed on the confessed judgment pending disposition of the Petition; and (7) notice of the entry of this Order shall be provided to all parties by the Petitioners. It ? 0hn G. WICLV.ovie, E21- pw?d P-Ln It E-L 1003 BY THE COURT: AMERICHOICE FEDERAL CREDIT UNION Plaintiff V. SALVATORE NICASTRO and LIVIA NICASTRO, Defendants IN THE COURT OF COMMON PLEASE OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 CIVIL ACTION c= c n cu ? _<> -? E -ti ° -r ; C3 -71 = `- ... > ::;: w` rv rP-s PLAINTIFF'S RESPONSE TO DEFENDANTS' PETITION TO STRIKE OR TO OPEN JUDGMENT BY CONFESSION AND NOW, comes the Plaintiff/Respondent, AmeriChoice Federal Credit Union, by and through their attorney, Michael J. Pykosh, Esquire, and files this Answer to the Petition to Strike or to Open F Judgment by Confession which was entered against them on or about December 9, 2010, averring as follows: 1. Denied. The averments contained in Paragraph 1 of Defendants' Petition to Strike or to Open Judgment contains conclusions of law to which a response is not required. 1. PETITION TO STRIKE FOR NON-CONFORMANCE WITH RULE 2952 3 2. Denied. The averment contained in Paragraph 2 contains a conclusion of law to which a response is not required. A. Denied. The averment contained in Paragraph 2-A states a conclusion of law to which a response is not required. B. Denied. The averment contained in Paragraph 2-13 states a conclusion of law to which a response is not required. C. Denied. The averment contained in Paragraph 2-C states a conclusion of law to which a response is not required. D. Denied. The averment contained in Paragraph 2-D states a conclusion of law to which a response is not required. i WHEREFORE, AmeriChoice Federal Credit Union respectfully requests that this Court deny the Defendants' motion to strike for non-conformance with Rule 2952. II. PETITION TO OPEN JUDGMENT 3. Denied. The averment contained in Paragraph 3 states a conclusion of law to which a response is not required. 4. Denied. The averments contained in Paragraph 4 states conclusions of law to which a response is not required. If the Court determines that a response was required, Plaintiff, AmeriChoice, denies i that all amounts owing under the underlying Note have already been paid to the Plaintiff and that the underlying Note is and has been paid in full. Proof to the contrary is demanded. A. Admitted in part and Denied in part. AmeriChoice admits that on or about September 21, 2004 Eric L. Nicastro filed for bankruptcy protection by filing a Chapter 13 Petition witA the United States Bankruptcy Court. AmeriChoice further admits that Eric L. E Nicastro listed the amount owed to AmeriChoice in the petition as $37,553.10. AmeriChoice denies any implication of the total amount owed to it under the Note that they Nicastros' guaranteed was $37,553.10. Proof to the contrary is demanded at time of trial. B. Admitted in part and Denied in part. AmeriChoice admits that Eric L. Nicastro submitted a pan where he proposed to pay AmeriChoice $37,553.10, plus interest at the rate of 6%iper year, over a period of 60-months. AmeriChoice further admits that a copy of the proposed plan is attached is attached to Defendant's Petition as Exhibit "C". AmeriChoice further admits that Eric L. Nicastro's plan provided for a payment of t 7 ' t a $43,560.00 to AmeriChoice. Any indication that the payment of $43,560.00 was payment in full is denied. Proof to the contrary is demanded at time of trial. C. Admitted in part and Denied in part. AmeriChoice admits that on or about September 28,,!2005, the Bankruptcy Court, with the agreement and consent of AmeriChoice, entered an Order confirming the aforesaid plan. AmeriChoice further admits that a true and. correct copy of the Order is attached as Exhibit "E" to the Petition. AmeriChoice denies any implication that the payment under the proposed plan represented payment in sfull under the loan documents executed between AmeriChoice and the Guarantors/Petitioners. Proof to the contrary is demanded at time of trial. D. Admitted in part and Denied in part. AmeriChoice admits that the Bankruptcy Trustee submitted his Final Report and Account on May 18, 2010 and a copy of it is attached as Exhibit "F" to the Petition. Any implication that the payment received by the Bankruptcy Trustee represented full payment of the loan documents signed by the Guarantor is denied. Proof to the contrary is demanded at time of trial. E. Admitted. 5. Admitted iris part and Denied in part. Americhoice admits that the language cited by the Petitioners was in tine plan. However, AmeriChoice denies that the Bankruptcy Court plan represented payment in full under the loan documents signed by the Guarantors. Furthermore, the Bankruptcy's jurisdiction over the debt is limited to the debtor, Eric L. Nicastro. Guarantors never sought Bankruptcy Court protection. 6. Denied. The averments contained in Paragraph 6 state conclusions of law to which a response is not required. By way of further response, the Bankruptcy Court's jurisdiction does not extend to debts owed by the Guarantors who are not party to the bankruptcy petition before the Bankruptcy Court. it 4 7. Denied. The averments contained in Paragraph 7 state conclusions of law to which a response is not required. 8. Denied. The averments contained in Paragraph 8 state conclusions of law to which a response is not required. WHEREFORE, AmeriChoice Federal Credit Union respectfully requests that the Court deny Plaintiff's motion to open judgment. Dated: o-Z ' `-] 1 + Respectfully Submitted, Michael J. Pykos Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 Phone: (717) 975-9446 VERIFICATION I, Dallas J. Zulli, hereby verify that I am the VP of Business Lending at AmeriChoice Federal Credit Union, and, as such, I am authorized to verify that the statements in the foregoing Response are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are subject to the criminal penalties contained in 18 Pa. C. S. Section 4904, relating to unsworn falsification to authorities. Dated: Dal as ulli, VP Busi ss Lending AmeriChoice Federal Credit Union . DETHLEFS-PYKOSH LAW GROUP, LLC BY: MICHAEL J. PYKOSH, ESQUIRE Attorney I.D. No. 58851 mpykosh@dplglaw.com 2132 Market Street Camp Hill, PA 17011 Telephone: (717) 975-9446 Facsimile: (717) 975-2309 AMERICHOICE FEDERAL CREDIT UNION Plaintiff IN THE COURT OF COMMON PLEASE OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 V. SALVATORE NICASTRO and LIVIA NICASTRO, Defendants CIVIL ACTION CERTIFICATE OF SERVICE I, Michael J. Pykosh, Esquire, hereby certify that I have caused a true and correct copy of the Plaintiff's Response to Defendants' Petition to Strike or to Open Judgment by Confession to be served upon the following counsel of record via United States Postal Service, First Class Mail, postage prepaid, addressed as follows: John G. Milakovic Thomas S. Beckley Beckley & Madden 212 North Third Street P. O. Box 11998 Harrisburg, PA 17108 Dated: 7 I 1 Respectful Submitted: BY: Michael J. Pykosh, Esquire AMERICHOICE FEDERAL CREDIT UNION, Plaintiff VS. SALVATORE NICASTRO AND LIVIA NICASTRO Defendant : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 10-7580 - LAW rnw =-n zX 56 -v PRAECIPE o N z cn {J TO THE PROTHONOTARY OF CUMBERLAND COUNTY: -< Please file and docket the attached original deposition transcript of Dallas Zulli for the above captioned matter. PLAINTIEF?, Miclfael J. Pykosh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Attorney for Plaintiff AMERICHOICE FEDERAL CREDIT UNION, VS. Plaintiff SALVATORE NICASTRO AND LIVIA NICASTRO : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 10-7580 - LAW Defendant CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Plaintiffs Oral Deposition of Dallas Zulli, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: Thomas S. Beckley, Esquire Beckley & Madden 212 North Third Street Harrisburg, PA 17108 Respecjugv Submitted, Date: 3 I _ Michael J. Pykosh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Attorney for Plaintiff 1 AMERICHOICE FEDERAL CREDIT UNION, Plaintiff VS. SALVATORE NICASTRO AND LIVIA NICASTRO, Defendants 0 1 44 March 9, 2011 ?r Oral deposition of DALLAS ZULLI, held in the offices of DETHLEFS-PYKOSH LAW GROUP, LLC, 2132 Market Street, Camp Hill, Pennsylvania 17011, commencing at 10:26 a.m., on the above date, before Linda C. Larson, CSR, RPR, CLR, a Professional Court Reporter and a Notary Public of the Commonwealth of Pennsylvania. C") r.? ,... ? co? Linda C. Larson, CSR, RPR CLR I - < Z Court Reporter - Notary Public y° MC ZZ3 c DC rv ?M p PREMIER REPORTING, LLC?C CD P.O. Box 186 -e. Carlisle, Pennsylvania 17013 E-mail: linda@premierreportingllc.com Tel: (717) 243-9770 Fax: (717) 243-0413 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 CIVIL ACTION - LAW 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 2 APPEARANCES: DETHLEFS-PYKOSH LAW GROUP, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 BY: MICHAEL J. PYKOSH, ESQUIRE (717) 975-9446 Counsel for the Plaintiff BECKLEY & MADDEN 212 North Third Street Harrisburg, Pennsylvania 17108 BY: THOMAS S. BECKLEY, ESQUIRE (717) 233-7691 Counsel for the Defendants Also Present: Salvatore Nicastro Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 3 DEPOSITION SUPPORT INDEX DIRECTIONS NOT TO ANSWER: PAGES: None. REQUESTS FOR DOCUMENTS OR INFORMATION: PAGES: None. STIPULATIONS AND/OR STATEMENTS: PAGES: 5 MARKED QUESTIONS: PAGES: None. OBJECTIONS: PAGES: 20, 24, 38, 42, 44 Premier Reporting, LLC • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 4 INDEX WITNESS DIRECT CROSS REDIRECT RECROSS Dallas Zulli 6 24 -- -- EXHIBITS NO. DESCRIPTION PAGE Zulli Deposition 1 Confession of Judgment ....................... 7 2 U.S. Small business Administration Note ..... 8 3 U.S. Small Business Administration Unconditional Guarantee ...................... 10 4 Disclosure for Confession of Judgment........ 10 5 Trial Balance and Accrual Report ............. 12 6 Chapter 13 Plan Notice .............. 14 ......... 7 Invoices ............................. 17 ........ 8 Tally Sheet .................................. 19 9 Invoices ..................... 20 ................ 10 Letter ................................ 31 ....... 11 Petition ...................... 33 ............... 12 Chapter 13 Plan Notice .............. 35 ......... 13 Proof of Claim ............................... 40 14 Objections to Debtors Plan .................. 43 15 Stipulation .................................. 46 Premier Reporting, LLC • E • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 5 P R O C E E D I N G S (Proceedings commenced at 10:26 a.m.) (It is hereby stipulated and agreed by and between counsel that signing, sealing, filing and certification are waived; and that all objections, except as to the form of questions, be reserved until the time of trial.) DALLAS ZULLI, after having been duly sworn, was examined and testified as follows: MR. PYKOSH: Well, I think what we said yesterday is there is really none. If there are any objections, that the witness will answer over the objections and the Judge will rule on those. MR. BECKLEY: Is that how you did it yesterday? MR. PYKOSH: What's that? MR. BECKLEY: Is that how you did it yesterday. MR. PYKOSH: Yes. MR. BECKLEY: Yes. We don't want to waive. Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 • 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 6 The concern is we don't want to waive objections, because I think we're going to use this testimony later. MR. PYKOSH: Right. So you would make -- you know we would make objections and then they would still answer and then the Judge would rule on them later on. MR. BECKLEY: Okay. MR. PYKOSH: I think that's the best way. MR. BECKLEY: That's fine. MR. PYKOSH: Yes. DIRECT EXAMINATION BY MR. PYKOSH: Q. Okay. Mr. Zulli, could you please state your full name for the record? A. Dallas Joseph Zulli. Q. Could you spell your first and last name? A. D-a-1-1-a-s, Z-u-1-1-i. Q. Okay. And where are you employed? A. Americhoice Federal Credit Union. Q. Okay. And what is your position at Americhoice Federal Credit Union? A. I'm vice president. of business lending. Q. Okay. And how long have you been employed with Americhoice? A. Since January of 2004. Q. Okay. Now, we're here obviously regarding a Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 E 25 16 17 18 19 20 21 22 23 24 Linda C. Larson, CSR, RPR, CLR 7 loan with -- it started out to be a loan with Eric Nicastro. Are you familiar with the Eric Nicastro loan? A. Yes, I am. Q. Okay. And tell me what you're, just generally, what your knowledge of the loan is. A. The loan is a Small Business Administration loan, a business loan for a business purpose. It was originated in 2003. And basically it's a business loan that we are looking at today. MR. PYKOSH: Okay. I'm going to mark -- I guess we'll just keep what we were doing yesterday. We'll mark this as Zulli 1. (Zulli Deposition Exhibit No. 1 was marked.) BY MR. PYKOSH: Q. Okay. You have Zulli 1 in front of you. Could you identify that document for me? A. Yes. This is a Confession of Judgment. Q. Okay. Could you tell me more about it? A. It's the Confession of Judgment with the plaintiff being Americhoice and the defendant being Salvatore and Livia Nicastro guarantors. Q. So are you familiar with this document? A. Yes, I am very familiar with it. Q. All right. Now, I want to direct your attention to Exhibit A. Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 • 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 8 A. Uh-huh. Q. An attachment. Could you tell me what Exhibit A of Zulli 1 is? A. It is a true and correct copy of a small business -- U.S. Small Business Administration note with the borrower being Eric L. Nicastro and the lender being Americhoice Federal Credit Union. Principal loan balance of $40,000. Q. Could you tell me the date of that document? A. It is October 14th, 2003. Q. Okay. Now, I'm going to mark as Zulli 2 that document there. (Zulli Deposition Exhibit No. 2 was marked.) BY MR. PYKOSH: Q. Now, Mr. Zulli, could you identify what has been marked as Zulli 2? A. Yes. This is the original U.S. Small Business Administration note to Eric Nicastro. Q. Okay. Now, I want you to take a look at that note. Could you tell me what type of loan is evidenced by that note, Zulli 2, and the -- and what you had identified as a reproduction of the note as marked as Exhibit A of Zulli 1? A. They are the same note. One is a copy. One is the original. Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 9 Q. Okay. A. Both are business loans, business notes for a business purchase, USDA -- or sorry. Q. Okay. A. SBA type loans. Q. Now, you mentioned that it's an SBA loan. Could you tell me the significance of an SBA loan? A. An SBA loan is a loan that is approved by the federal government, the U.S. Small Business Administration. It's a guaranteed loan. It is a loan for a business purpose. The SBA provides guarantees to lenders to help encourage lenders to make loans to businesses. Q. Okay. You indicated that the loan is evidenced by the note that you just identified was a business loan. If it's a business loan, what type of loan is it not? A. It's not a consumer loan. It's not a residential mortgage loan. Q. Okay. And I want to have you then -- we'll look again at Exhibit 1. Just put that aside up here. Zulli Exhibit 1. And I want to take a look at the Exhibit B of Zulli Exhibit 1. Actually you were there. A. Uh-huh. Q. Okay. Could you tell me what this document is? Premier Reporting, LLC • 1 2 3 4 5 6 • 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 10 A. This is a true and correct copy of the U.S. Small Business Administration unconditional guarantee for the Eric L. Nicastro loan referenced in the note. Q. And who are the guarantors of that loan? A. Salvatore Nicastro and Livia Nicastro. Q. Could you tell me the date of that document? A. October 14th, 2003. Q. I'm going to mark Zulli 3. (Zulli Deposition Exhibit No. 3 was marked.) BY MR. PYKOSH: Q. Could you identify that document for me? A. This is the original U.S. Small Business Administration unconditional guarantee for the loan to Eric L. Nicastro. The guarantors are Salvatore Nicastro and Livia Nicastro. Q. Okay. And I want to mark Zulli Exhibit Number 4. (Zulli Deposition Exhibit No. 4 was marked.) BY MR. PYKOSH: Q. Could you identify Zulli Exhibit Number 4 for me? A. Exhibit 4 is Disclosure for Confession of Judgment Statements, which are initialed and executed for Eric Nicastro, Salvatore Nicastro, and Livia Nicastro in reference to the note and unconditional guarantees. Premier Reporting, LLC 1 2 3 4 5 6 7 8 9 10 11 12 • C-l 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 11 Q. Now, is this the original executed document? A. This is the original executed document. Q. Okay. Now, could you tell me what the history of the ownership of these loan documents are? A. Americhoice Federal Credit Union initiated a loan in 2003. It's been owner of the documents ever since. They have not been sold or participated. Q. Okay. Have they been assigned to anyone? A. No. Q. Now, you mentioned that this loan was a business loan and not a consumer loan. Is there a difference on how the bank pursues collection in a consumer loan as opposed to a business loan? A. Yes. In terms of collection efforts, consumer loans are traditionally less complicated loans and smaller loans. Business loans can be complicated. And consumer loans we typically file a proof of claim by our Collection's Department. And for business loans, we do it with an attorney, particularly in cases that are complex or involve the SBA or other type of situations, due to our requirement by the federal government to exhaust all collection efforts and document it for the federal government. Q. Now, when you have an SBA loan, is there any type of communication or reporting to the federal government with respect to the loan? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 • 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 12 A. Yes. We provide updates to the SBA as to the status of the loan. On a monthly basis we file reports with their servicing arm, and we provide the market rate of interest that was paid to them when payments are received. Q. I just want these exhibits in order here. I have a packet here that I want to mark here as Zulli 5. (Zulli Deposition Exhibit No. 5 was marked.) BY MR. PYKOSH: Q. Could you tell me -- could you identify Zulli Number 5? A. Yes. This is a Trial Balance and also payment history and related history of the loan in question. Q. Okay. Now, according to your Zulli Number 5, the Trial Balance, could you tell me what, if any, balance there is on the loan? A. Yes. The balance, the unpaid principal balance is $5,847.34. Q. And would it be correct that this is, I guess, a history of the loan, of payments on the loan? A. That is correct. Q. Okay. Well, I just want to go through and just pick a -- just explain how this works. Just go to like page 2, the entry for 7/14/08. Across from that entry there is a number 17,676. What does that number represent? Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 13 A. That's just a transaction number in the system. Q. Okay. So how way to track? A. It's a way to that was logged that day. Q. Okay. And thi date of 7/14/08. What does A. The post date is that significant? Is that a identify the actual transaction E?n the next it appears to be a that represent? of the payment made on that date. Q. And then there is a number 1 in the next column. What is that? A. That's just a loan type code. Q. And then there is a NO for number. And then after that, there is an entry 1001SBA. A. Identifying it as an SBA type loan. Q. Okay. A. SBA type loans are booked a little differently because of the -- Q. Okay. And then there is an entry after that that's I. Hannon or L. Hannon. A. L. Hannon, that's the processor that posted the payment. Q. Okay. And then under that it has the word principal. And then besides that it has the number of Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 14 51739. What does that represent? A. 51739 is the principal that was applied that day. Q. And then there isan entry for interest and then -- A. 27033 was the interest. Q. Okay. A. That was paid on that date. No late fee penalty or escrow on that, but the total payment received that day was 78772. Q. Okay. A. That's the date for the principal and interest breakdown for that payment. Q. Okay. And then this document then tracks all the payments on the loan. It also tracks the interest rate; is that correct? A. Correct. Q. Okay. Okay. Now'I want to mark Zulli 6. (Zulli DepositionlExhibit No. 6 was marked.) BY MR. PYKOSH: Q. Now, could you tell me what this document is? A. It is a Chapter 13 Plan filed by Eric L. Nicastro. Q. Okay. Now, I want to direct you to page 3 of that plan under the section that says class 2 secured Premier Repor4ing, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 15 claims. Are you familiar with that section of the plan? A. Uh-huh. Q. You've seen that before? A. I have. Q. Okay. It indicates that the amount of the secured claim is what there? A. $43,560. Q. Okay. And it indicates an interest rate; is that correct? A. Yes. Q. Okay. Now, it's Your understanding that the -- what's your understanding? ?ow, this bankruptcy is over with; is that correct? A. Yes. Q. Okay. However, you are indicating with Exhibit 5, the tally sheet that!we just took a look at that's Exhibit 5, that there is !a balance? A. Uh-huh. Q. And yet we know the position of Mr. Salvatore Nicastro that the total amount that was paid was paid through the plan, the 43,560. Ohat is the difference between your balance and the amount that is set forth in the Chapter 13 Plan? A. I believe the amount set forth in the plan identifies or was calculated based off of the balance at the i Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 16 time of $37,000 and change at a rate of 6 percent and the amount of repayment over the course of five years. Q. Okay. A. I think that represents the amount of secured Q. Okay. A. That does includeiany accrued interest that was not paid from the time of nonpayment to the time of payment received from the trustoe. It does not include any legal expenses incurred in coll$cting this note. Q. Now, the interestof the note, the Nicastro note that you identified as exhibit -- the original of which was Exhibit Zulli Number 2, wasithat a fixed or a variable rate? A. It was a variable rate at prime plus three percent. Q. Okay. Now, on your tally sheet that shows the balance due, does that make adjustments for the actual rate pursuant to the note? A. Yes. Q. And do you believe that that's basically the difference of the -- A. That is a large part of the difference. The difference in interest rate based on the note of prime plus three. With the SBA, it's done at the rate of the note. I Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 • 23 24 25 Linda C. Larson, CSR, RPR, CLR 17 guess the difference in balance is accrued interest. The difference is the interest rate and also expenses -- Q. Okay. A. -- we have not be n reimbursed. Q. Okay. I want to dhow you what I'll mark as Zulli 7. (Zulli DepositionjExhibit No. 7 was marked.) BY MR. PYKOS H: Q. Now, prior to talking about Zulli 7 there, I just wanted to talk to you about your legal representation in this Eric Nicastro case. Am?richoice had hired an attorney earlier on; is that correct? A. Correct. Q. Okay. And could you tell me who that attorney was? What f irm they were from?': A. It was Matthew E0elman with at the time Saidis, Flow er and Lyndsay. Q. Okay. A. Saidis, Shuff, Flower & Lindsay. Q. Okay. At some po?nt in time you hired our office, Deth lefs-Pykosh Law Gro4p; is that correct? A. Correct. Q. Okay. And could Y ou tell me what the purpose was in hiring our office as it #elates to this Eric Nicastro bankruptcy? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 • 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 18 A. Dethlefs-Pykosh Law Office was hired to collect the deficiency balance of all amounts related to this loan regarding the bankruptcy of Eric Nicastro and the guarantee of Salvatore and Livi? Nicastro. Q. Is it your understanding that this office attended hearings and drafted p?eadings? A. Yes. Q. And what of the b ans with Eric Nicastro was the purpose of hiring the Dethl ?fs-Pykosh Law Group? A. The business loan s Q. i When you say the ] usiness loan? A. The small busines . Q. The SBA loan? A. Yes. Q. Okay. I want youto take a look at these, Exhibit Number 7. Were all the?e invoices paid by Americhoice? A. Yes. Q. And the reason fo* the work for the Dethlefs-Pykosh Law Group, did it have anything to do with any of the other loans other th4n the SBA loan? A. Absolutely not. Q. Could you tell melthe way the bank treated the loans other than the SBA loan? A. The other loans ate two Visa cards and an auto Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 • 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 19 loan, all three consumer loans. We typically treat those and treated those like anything else where we filed the claim and then discharged the credit cards and pursued the same of the vehicle and then charge off the remaining balance of that. Both the Visa cards were discharged in October of 2004. The sale of the vehicle, the proceeds were applied in December of 2004. And the remaining balance was charged off in February of 2005. Q. Okay. We'll mark this as Zulli Exhibit Number 8. (Zulli Deposition Exhibit No. 8 was marked.) BY MR. PYKOSH: Q. Could you identify that document? A. Yes. This is the spreadsheet provided by the Accounting Department identifying the date, the invoice, and the charges relating to the Nicastro loan for Saidis, Shuff, Flower & Lindsay. It's a tally sheet. Q. Okay. So when we look at this tally sheet under date, what does that represent? A. The date represents the date of the invoice. Q. And then there is an invoice number? A. Invoice number and charge. Q. Whose invoice number would that have been? A. That would have been assigned by the law firm. Q. The law firm's invoice number? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 C] 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 20 A. Yes. Q. And then the charge? A. The charge represents the charge for the services provided net a professional courtesy discount we received from the firm. Q. The total on the bottom, is that the total that Americhoice paid as a result of these charges? A. Yes. $7,647.40. And I'll note that's the charge off of the two Visas and the auto loan before most of these charges. MR. BECKLEY: I didn't hear that last part. THE WITNESS: I said the charge off of the Visa cards and the auto loan occurred before a lot of these charges. BY MR. PYKOSH: Q. Okay. And then we'll mark Zulli 9. (Zulli Deposition Exhibit No. 9 was marked.) BY MR. PYKOSH: Q. I'll note that this was also in Mr. Sobel's deposition, Sobel 10, but could you identify these documents? A. These are the invoices or bills received. MR. BECKLEY: I'd like to lodge an objection at this point I think based on hearsay. These appear to be invoices prepared by a party not here today. That's why I Premier Reporting, LLC . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 21 think they're considered to be hearsay. BY MR. PYKOSH: Q. Mr. Zulli, these invoices, were they a part of the records of your file, the Eric Nicastro file? A. Yes. Q. Were you involved with the work with the attorney who produced these invoices? A. Yes. Q. And you at the time -- and you reviewed these invoices; is that correct? A. I reviewed the invoices, yes. MR. PYKOSH: Okay. You know our position is this is a business record and that was part of the file for these invoices. And they were previously admitted in the Sobel deposition as Sobel Number 9 or Number 10 in yesterday's deposition. BY MR. PYKOSH: Q. So I'm going to ask you some questions about those invoices. But before I do, could you tell me, at some point in time you hired Saidis, Shuff, Flower & Lindsay; is that correct? A. Yes. Q. Okay. And could you tell me the purpose for your hiring this law firm? A. The purpose of me hiring the law firm was to Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 • 23 24 25 Linda C. Larson, CSR, RPR, CLR 22 pursue the -- to deal with the bankruptcy filed by Eric Nicastro and pursue the chain of the loan to Eric Nicastro. Q. Okay. And if the SBA loan did not exist, could you tell me what the bank's normal course of business would be with regards to a bankruptcy filed by somebody without an SBA loan? A. Yes. Typically for consumer loans, which there were three -- two Visa cards and one auto loan -- we would not hire an attorney to file a group of claims. We would likely hire an attorney to do the state of relief so we could sell the vehicle. But most of the work is done by our Collection's Department and an attorney is not sought. Q. Okay. A. If it wasn't for the SBA loan being here, it's a different course of action. Q. Okay. Now, I want to draw your attention to the invoice of November 30th. A. Okay. Q. Now, you had just mentioned about a nonbusiness loan, a loan dealing with an automobile, and you had hired an attorney to do a relief from the automatic stay. There is an entry and it's for 11/19/04 and 11/23/04 regarding relief from the automatic stay. Would you agree that that entry does not specifically relate to the SBA Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 23 A. I would agree that was for us to be able to sell the vehicle that he agreed to turn in. But through the bankruptcy, we couldn't until we got the relief of stay. Q. Okay. But other than that, do you know of any other charge on these invoices that do not relate to the SBA loan? A. I do not. Most of these related directly to the SBA loan in conversations and correspondence and other actions taken just to collect the SBA loan. If it wasn't for the SBA loan, I wouldn't be involved. It's not one of my responsibilities. Q. Okay. I just want to check something here. Do you recall what the billing rate was that Saidis, Shuff, Flower & Lindsay was billing Americhoice? A. I believe it was 175 an hour. Q. Okay. And do you recall what the billing rate for our office, Dethlefs-Pykosh Law Group, was? A. I believe it was 200 an hour. Q. Okay. And when I look through the invoices for Zulli 9, there are instances there and they're sporadic where it says no charge. Do you know what that represents? A. There was work done by the Saidis, Shuff, Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 0 25 16 17 18 19 20 21 22 23 24 Linda C. Larson, CSR, RPR, CLR 24 Flower & Lindsay firm regarding this case that were not charged to us or ultimately to the borrower. MR. PYKOSH: I have no further questions. I just move for the admission of my Exhibits 1 through 9. MR. BECKLEY: Just for the record, we would object to 9. We would object to 8. We would object to 7. That's it. MR. PYKOSH: Okay. MR. BECKLEY: Just a second here. I want to put these in order. CROSS EXAMINATION BY BECKLEY: Q. Mr. Zulli, my name is Tom Beckley and I represent the defendants in this action. I have a couple questions to followup. If you could go back to what we've labeled Zulli 5, which is the Trial Balance and Accrual Report. A. Uh-huh. Q. I want to go back to the entry that we looked at, just so I'm clear, which is dated 7/14/2008. A,. Uh-huh. Q. I think it's on the third page. Do you see where I am? A. Yep. Q. Okay. As far as the transaction number, the Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 • 0 25 12 13 14 15 16 17 18 19 20 21 22 23 24 Linda C. Larson, CSR, RPR, CLR 25 17,676, could you explain what that means? A. That is simply an entry tracking mechanism. So if I wanted to pull up a certain transaction, I can go back and find it. Q. Does each entry have it's own transaction number? A. Yes, I believe it does. Q. And the code number on this entry happens to be number 1. What does the code number mean? A. It's the one type I'd have to look back to see exactly what that meant. It's a code in our system. Q. Why would the -- A. It could mean a variable rate I believe is what it means, but I don't want to testify to that. But I believe it's a variable rate code, but I'd have to look at the system to make sure that's what it is. Q. Why would the code change? A couple entries down there is a three and then a two. A. That's a rate change. That has nothing to do with the loan payment. When they process the rate change, it codes what it is. So there was a rate change on that date. Q. Does that mean the rate went up or down? A. It could be up or down depending on the history. I'd have to look back to the interest rate Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 . 13 14 15 16 17 • 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 26 section. Q. That was perhaps my next question. Looking at this page that we're looking at, does this tell us the rate for that particular month and day? A. It does not on this. You have to go back to the other page, which is in here, to see what the rate is for that day during that time period. Q. Tell us. A. That would be September -- July 14th, 2008. During that period, it would be, I believe, 11 and a quarter percent. No. That's 2006. Excuse me. Q. What -- A. It would be eight percent at that time. Q. What page are you looking at? A. This would be 11 of 13. Q. Is that in the middle where it says loan rate by effective date? A. Yes, sir. If you look down, you see the effective date at 5/1/2008 was eight percent, then changed 11/1/2008 to seven percent. What we're looking at specifically falls within that time period. So if you reference back to that time, you will see that that was the rate of interest applied at that time. Q. Okay. So that all in rate where it starts off seven percent, it looks like the first day of each month the Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 27 rate fluctuates. A. The rate can fluctuate depending on moves in the prime rate. Do I need to explain the prime rate? Q. No. A. Okay. Q. What is history ID next to it? At the top it says history ID. A. That also references -- if you go back, do you see that 16074? Q. Yes. A. It's a transaction identifier just like I explained before. Q. Okay. On the very front page, it looks like a summary I'm guessing. A. That is a Trial Balance and Accrual Report. Q. Okay. There is -- I think you testified there is a balance due of principal of $5,847.34. A. That's correct. Q. And I wasn't clear as to what the difference is. We looked at the other exhibit where it was 43,000, which I think was the plan we looked at, which were the payments made. But at the end of the day, it looks like there is another $5,800 owed. What is that? A. That's a deficiency balance. That's what was not paid through the claim. Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 • 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 28 Q. Okay. What is the deficiency balance? A. The deficiency principal balance is $5,847.34. Q. Explain what that means. A. It is the balance and principal that has not been paid to the plan. Q. How is that calculated? In other words -- A. Payments are taken in. Interest and principal are applied as the going rate on the note. And then as the payments are applied, the balance goes down and that's what we ended up with based off the information that's provided in here with the differing rate and the payments received. Q. Is that figure -- is it fair to say that that figure is either principal, what's left of the 40,000, or interest? A. It's principal. 5,847.34 is the principal. Q. That's principal. So that is not interest? A. No. There is a sheet that shows the principal reduction. Q. I see it here on page 11 of 13. A. Let me get there. Yes. Q. Okay. A. And 10 of 13, it transfers over to -- Q. Right. A. -- 10 and 11. I'm sorry. Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 29 Q. Page 11 in the middle it shows that same figure at 12/4/09, 5,800 figure? A. Uh-huh. The principal stays the same. It didn't accrue from that time through 3/31/10. The balance didn't change. So it's principal, which was the date of the Trial Balance on the first page. Q. Changing gears a little bit. You mentioned this was an SBA loan. A. Correct. Q. And an SBA loan, from my understanding form what you said, the government guarantees the loan. A. Uh-huh. Q. So that if there is a default on the loan, you could simply go after the government to get paid. A. Presumably. Q. Was any effort made by Americhoice to pursue that effort? A. Not until -- I have to exhaust my resources to collect from the guarantors. Q. Okay. Is that a condition of that loan or is that a condition of the government guarantee? A. SBA, yes. Yes. SBA loans you have to exhaust your resources. You have to show that you made collection efforts from the borrower and the guarantors before they'll honor the guarantee. Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 . 13 14 15 16 17 • 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 30 Q. Okay. In looking at Zulli -- well, we looked at the attorney's fees -- A. Okay. Q. -- and invoices. A. Right. Q. Is it your position, with the exception of the one entry that you looked at, were all the fees that Americhoice incurred in terms of attorney's fees related strictly to be SBA loan? A. I would say most of them are. You know going back to 2004, judging by a conversation of a fraction of a second, that could have been in the amount of "by the way, the car sold." But I would say, you know, 99 percent of them are, yes. Q. Okay. A. Like I said before, I wouldn't, as the vice president of business lending, be involved in collection of a car loan or Visa accounts. So my involvement in that is strictly for the SBA purposes. However, I wouldn't file -- we wouldn't file a proof of claim. If I'm filing with, you know, an attorney, a proof of claim, I'll do. It didn't make any sense. So, you know, what I'm saying. Q. Okay. You weren't at the bank when the loan was originated? A. Correct. I came in in January of 2004. The Premier Reporting, LLC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 • 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 31 loan was originated in 2003 by Gladys, Gladys Carnare, I believe. I don't know exactly how to pronounce her last name. MR. BECKLEY: I'm going to mark Zulli 10. (Zulli Deposition Exhibit No. 10 was marked.) BY MR. BECKLEY: Q. This is a letter that appears to be from you to Eric Nicastro dated August 23rd of 104. Do you recognize this letter? A. I do. Q. Is that your signature at the bottom? A. I do. It is. Q. What was the purpose of the letter? A. The purpose of the letter is to provide the amount due at that date for payment of the loan. Q. Okay. Do you know why you wrote this letter? A. I believe it had to do with the bankruptcy and showing what a principal balance and interest accrued as to a certain date. Q. Okay. Is it fair to say that as of the date of the letter, you knew that Eric Nicastro was either going to file or did file bankruptcy? A. I'd have to look at the dates. Q. But are you saying today that you wrote this letter anticipating that a bankruptcy was going to happen? Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 32 A. I'm not sure if this was written -- you're talking six years, five years ago -- if this is exactly before, if I knew this was coming or they wanted to pay off. Often times people call and ask me for a payoff of the loan, what's owed, should they -- if they are filing bankruptcy, if they're not filing bankruptcy, whatever the case may be. But it's not uncommon for me to get a request for payoff quote. Q. Okay. So you don't necessarily remember why you got it. You just know you got a payoff, request for payoff form? (Witness nods head.) BY MR. BECKLEY: Q. It says daily accrual $7.35. Wouldn't that change over time as the rate fluctuates? A. Yes. Q. And the total due as of this date is 37,553.10, correct? A. Yes. Q. And that includes the accrued interest to that date? A. From the last payment that was made on that loan to August 24th, 2004. Q. Okay. Is it fair to say at this point you knew Eric Nicastro filed bankruptcy? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 0 25 18 19 20 21 22 23 24 Linda C. Larson, CSR, RPR, CLR 33 A. At some point, yes. Do I know the exact date after five years plus? I'm sorry I don't. (Zulli Deposition Exhibit No. 11 was marked.) Q. I'll show you what's marked as Zulli 11. And this is a petition filed by Eric Nicastro from the Bankruptcy Court. A. Okay. Q. And I will represent that I only copied two pages of it. The front page is what you're looking at. It's a copy of what's called Schedule D, which is the second page. And if you look -- do you recall when you saw this or have you ever seen this? A. Yes. I'm sure I've seen this at some point. Q. Do you know when you got this report? A. I do not know the date of receipt. Q. Would you have received it right around the time the petition was filed? A. Probably shortly thereafter I would imagine. Q. If a customer at the bank or credit union -- I'm sorry. If a customer of the credit union filed bankruptcy and documents were sent to the credit union, who at the credit union would get the paper? A. Typically the Collection's Department. Q. Okay. What would they do for them? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 34 A. Forward them directly to me. Q. And that was true back in September of 104? (Witness nods head.) Q. Is that a yes? A. Yes. Sorry. I guess she can't hear a nod. Q. Now, looking at the second page of Schedule D, you see sort of halfway down there it says Americhoice FCU, statutory lien, and the amount of the claim is $37,553.10. A. Yes. Q. Do you recall seeing that figure back when you got the loan or when you got the bankruptcy papers? A. Yes. Q. Okay. Would you agree that that figure matches the figure in your letter of August 23rd? A. Yes. Q. Okay. It was your understanding -- was it your understanding that was the amount that Eric Nicastro declared as the full amount of the debt owed? A. As of August 24th, 2004 it would have been. Q. Okay. Well, was -- A. The payment schedule is August 24th, 2004. Q. This was filed, if you look at the bottom number, September 21st of 104. A. Which would have been after that date. Premier Reporting, LLC 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 • 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 35 Q. Which would have been about a month after that date. Is it fair to say that then you should add roughly a month of interest to that figure? A. Roughly. Q. And you would agree that Eric Nicastro did not appear to do that? A. It looks like nothing was added, but it does state in there as of 8/24/2004. Q. Do you know if, when you got this, did you make any effort to contact either Eric Nicastro or his attorney to indicate the amount was wrong? A. Directly I did not. My attorney. Q. Okay. Are you the guy at Americhoice that was sort of dealing with this on behalf of Americhoice? A. Yes. Q. Do you know whether or not you would have made any effort to indicate that the amount on the schedule D was incorrect? A. I made that effort to my attorney. But I made the effort to state that it did not include interest accrued from that date and so forth. I forgot. I'm sure I provided my attorney this letter which you provided. I believe that came from the bankruptcy proceedings, did it not? (Zulli Deposition Exhibit No. 12 was marked.) BY MR. BECKLEY: Premier Reporting, LLC • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 36 Q. I'm showing you what we'll call Zulli 12. And this is a document filed in Bankruptcy Court. It's entitled Chapter 13 Plan Notice. Do you ever recall seeing this notice? A. I do recall seeing this notice. Q. And it was filed, judging from the bottom, on September 21st of 104. Is it fair to say you would have seen it shortly after that? A. That's fair to say. Q. Okay. And could you look at the third page? In the bottom right-hand corner there is actually a three. In the middle of the page it says secured debts which will not extend beyond the life of the plan, and there is the Americhoice debt. And it appears that he's going to pay $726 a month for a total payment of $43,560. Do you see that? A. I see that. Q. Do you see the interest rate is six percent? A. I do. Q. Is that the interest rate on the loan? A. No. Q. That's because the loan had a variable rate, correct? A. Correct. Q. Do you recall what the rate was back in Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 • 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 37 September of 104? A. It would have been whatever prime plus three was. Q. Do you know if that was higher or lower than six percent? Let's not guess. Let's take a quick glance. I think it's Zulli 5. A. Yes. Q. I'm looking on page 12 of 13. A. 12 of 13. As of what date? Q. Well, we can just look at all of 105. Do you agree that it's seven three-quarters or eight? A. I would agree that it's higher than the six percent on the plan. Q. Okay. Is it fair to say, when you read this, you would recognize that Americhoice is getting a lower rate than what's in the note? In other words, Eric Nicastro is proposing -- A. He's agreeing to pay less than what's due on the note. I would agree to that. Q. If you flip back to page 2, and I'm looking towards the top Roman numeral two, 5a. The second sentence says: "Upon payment of the amount allowed by the Court as a secured claim in the plan, secured creditors included in the plan shall be deemed to have their full claims satisfied." Do you see that? Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR 38 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 • 18 19 20 21 22 23 24 25 A. Uh-huh. Q. So is it fair to say that as of the date this plan was filed, that once Americhoice received the payments totaling $43,560, the claim would be fully satisfied? MR. PYKOSH: I'm going to object. The document speaks for itself. It's asking for a legal conclusion the judge didn't derive. BY MR. BECKLEY: Q. Okay. Was it your understanding that those were the total payments that Americhoice is going to receive, $43,560? A. I believe that was what we expected to receive from Eric Nicastro. Q. Okay. A. Individually. Q. Was it your belief at the time that would pay the loan in full? A. No. Q. So as of the date of the plan, you knew that there was a deficiency? A. No. I knew there could be a deficiency. With the variable rate loan, I couldn't predict what the rate would be. It could be higher or it could be lower as actually seen on the spreadsheet. It's hard to predict. I knew that there could be a deficiency. Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 • • 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 39 Q. But you knew at the time the plan was filed the first payment would have been deficient because the rate was higher? A. With the payment and interest being higher, yes. With the variable rate loan, though, I don't know where the interest rates are going to go. Q. Do you know if Americhoice ever objected to the proposed payments in the plan? A. We had objected to a couple things. One was the feasibility originally of him being able to pay the plan, if I recall correctly. Q. Yes. A. Eric wasn't employed obviously and was bouncing around, was up in New York state for a while. I'm not really sure. There were some feasibility questions. Q. By feasibility you mean? A. His ability to pay what was put in the plan. Q. Okay. What I'm asking, though, is did you ever object to the total amount, to the total amount in the plan? A. I believe we had a stipulation. And the intent of the stipulation was, should there be a deficiency, we would seek either from Eric or from the guarantors for any possible deficiency. Q. I'm asking, though, was there ever an Premier Reporting, LLC 1 2 3 4 5 6 7 8 9 • • 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 40 objection, to your knowledge, filed objecting to the amount of the plan? A. I don't recall. Q. But you recall that there were some objections A. I recall there were some objections filed. One of them being feasibility. I distinctly recall discussing should there potentially be a deficiency, which again, I couldn't determine at that time, that there were other avenues of collection. Keeping in mind that Eric was the only person who filed bankruptcy in this case. (Zulli Deposition Exhibit No. 13 was marked.) BY MR. BECKLEY: Q. I'm going to show you what we've marked as Zulli 13. And do you recognize this document? A. Yes, I've seen this document before. Q. And is it fair to say this is the proof of claim filed by Americhoice? A. Is it fair to say this is a proof of claim filed by Americhoice? Q. And on the third page it says due as of 9/20/04 and the SBA loan is listed as $37,758.90. A. I see that, yes. Q. Okay. And would you agree that that was slightly higher about $200 or so? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 41 A. I agree that it's higher than the other document you provided me, likely due to accrued interest. Q. Okay. And that accrued interest, was that $7 figure per day? A. Whatever it was in that. It's an approximate number, yes. Q. This was filed -- see at the bottom it says filed February 22nd, 2005; is that correct? A. Yes. Q. Is it fair to say that prior to this date of filing, Americhoice had engaged counsel to represent them? A. Yes. Q. Is it also fair to say that prior to this date, Americhoice had either incurred or actually paid it's counsel? A. Yes. Q. And the reason that you're requesting fees from the Nicastros is that the note allows Americhoice to recover fees in the event they have to engage counsel? A. Correct. Q. But you would agree that as of the date you filed this proof of claim, that there is no provision for -- you have not requested any fees? A. As of the date, it appears we did not request Premier Reporting, LLC 0 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 Linda C. Larson, CSR, RPR, CLR 42 any fees. Q. And, again, on that third page in the little paragraph there, the second sentence says: "Note also that debtor's plan currently proposes to pay only such portions of the obligation to Americhoice as are guaranteed by Salvatore and Livia Nicastro and to pay the same as a secured tier claim"; is that correct? A. That's what it says. Q. So as of the proof of claim, the only amount that was in the guarantee by Mr. and Mrs. Nicastro, according to Americhoice's filings, is the $37,758.90? MR. PYKOSH: I'm going to object. The document speaks for itself. BY MR. BECKLEY: Q. I guess what I'm asking is: What is the intent of that sentence? A. The intent is to pay the note that his parent's guaranteed. Q. The note. The amount owed on that note or loan -- well, the SBA loan was the 37,000 figure, correct? A. At that date. Q. As of that date, correct? A. As of that date. Q. Would you also agree that this proof of claim Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR 43 • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 • 17 18 19 20 21 22 23 24 25 does not provide for any type of variable interest rate? A. Where would it provide for interest? Q. Well, I think if we're identifying the note here, you have to go back to the note to see if it's a variable rate of interest. Well, I guess what I'm asking is under the SBA loan where you have the figure identified -- A. Uh-huh. Q. -- you have a fairly specific figure. A. Yes. I was asked to provide a payoff. Q. Correct. A. As of a certain date. Q. But at no point is there an asterisk or anything like that indicating that the rate varies. A. I don't see one. Is there an asterisk next to the vehicle loan that says that it's fixed? There is not one there either. (Zulli Deposition Exhibit No. 14 was marked.) BY MR. BECKLEY: Q. I'm going to show you Zulli 14. Have you ever seen this document before? A. Yes. Q. Could you tell us what it is? A. It's an objection to the debtor's plan filed by -- Q. I'm sorry? Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 0 Linda C. Larson, CSR, RPR, CLR 44 A. Filed by Saidis's office. Matthew Eshelman, the attorney. Q. And this document was filed -- look at the bottom -- March 18th, 2005. A. Okay. Q. And do you recall the nature of your objections? If you don't, you can glance at it. You mentioned them before. MR. PYKOSH: I'm going to object. This document states what the objections are. I'm not sure what -- it speaks for itself. MR. BECKLEY: I want to verify or confirm that at no point did Americhoice object to the amount listed as the debt. And at no point did they object that the -- to the amount listed as the monthly payments. They did object to the -- 13 14 BY MR. BECKLEY: Q. You would agree that you objected -- Americhoice had concerns about Eric Nicastro's ability to make the payments under the plan, correct? A. I stated that before, yes. Q. But you would agree here that there does not appear to be an objection to the payoff figure, of the 43,000 number? 15 16 17 18 19 20 21 22 23 24 A. It doesn't appear so. 25 Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 CJ 12 13 14 15 16 17 18 19 20 21 22 23 • 24 25 Linda C. Larson, CSR, RPR, CLR 45 Q. Do you know why Americhoice wouldn't have lodged objections to the fact that the interest rate was variable, which was not reflected in the plan? A. Why we would not have objected to the interest rate? Q. Correct. A. I think the idea was that we would get funds sooner rather than later. Rather than keep objecting and drive up legal fees, which ultimately will be borne per the note to the borrower, we tried to limit those. Q. The same question with respect to legal fees. We've talked about how the note may entitle Americhoice to fees. A. Uh-huh. Q. But as of March of 105, when Americhoice has clearly engaged counsel and incurred fees, that the objections didn't list an objection to the lack of inclusion of attorney fees; is that correct? A. They were not included in it, in the statement that I looked at earlier. Q. These objections were eventually resolved, weren't they? A. What objections? The feasibility? Q. The objections we looked at as Zulli 14. The objections in your hand. Is it fair to say those were Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 • 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 46 resolved? Without -- I don't want you to guess. A. Without reading every word of it. Q. All right. Okay. (Zulli Deposition Exhibit No. 15 was marked.) BY MR. BECKLEY: Q. I'll show you what we've marked as Zulli 15. This is a document entitled stipulation. Have you ever seen this before? A. Yes. Q. If you look at paragraph 16, 16 says: "This stipulation resolves the objections by Americhoice to debtor's Chapter 13 Plan, allowing the plan to be confirmed and the trustee to begin disbursement of payments." Do you see that? A. I see that. Q. And the objections that you're resolving, is it fair to say, are the objections that we just looked at and labeled as Zulli 14? A. Yes. Q. And.to your knowledge, did the payments as set forth in the plan begin sometime after this stipulation was entered? A. I'd need to look to see when the first payment was received but presumably so. Q. Okay. All right. Before we continue, I would Premier Reporting, LLC • 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 • 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 47 move to admit my exhibits, unless there is an objection. MR. PYKOSH: I don't have any objection. MR. BECKLEY: And if we can take a two minute break. I think I may be done. (Off the record from 11:39 a.m. to 11:43 a.m.) MR. BECKLEY: We are in fact done. (Whereupon, the deposition was concluded at 11:43 a.m.) Premier Reporting, LLC • 1 2 3 4 5 6 7 8 • • 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Linda C. Larson, CSR, RPR, CLR 48 COMMONWEALTH OF PENNSYLVANIA.) ss. COUNTY OF CUMBERLAND ) I, LINDA C. LARSON, a Court Reporter-Notary Public authorized to administer oaths and take depositions in the trial of causes, and having an office in Carlisle, Pennsylvania, do hereby certify that the foregoing is the testimony of DALLAS ZULLI. I further certify that before the taking of said deposition the witness was duly sworn; that the questions and answers were taken down stenotype by the said Reporter-Notary, approved and agreed to, and afterwards reduced to computer printout under the direction of said Reporter. I further certify that the proceedings and evidence are contained fully and accurately in the notes taken by me on the within deposition, and that this copy is a correct transcript of the same. In testimony whereof, I have hereunto inscribed my hand this 14th day of March, 2011. pENNS`(LVP?N? M Of Linda C. Larson, CSR, RPR, CLR CQ*40 031S" public Court Reporter and Notary Public Linda La ?m"Oory beriandCounty In and for the Commonwealth of Mlddiesexon•E CxPifes Maw 4, 2014 MY CAm lyWania pssoclation of Notaries Pennsylvania pen ** a?id certification contains original signature of reporter. Premier Reporting, LLC ?ow\9 Ef Linda C. Larson, CSR, RPR, CLR is • • $200 [1] - 40:25 $37,000[1] -16:1 $37,553.10[1] - 34:9 $37,768.90 (2] - 40:22, 42:12 $40,000 [1l - 8:8 $43,560 [4] - 15:7, 36:15, 38:4, 38:11 $6,800 [1) - 27:23 $5,847.34[31- 12:18, 27:17, 28:2 $7,647.40 [1] - 20:8 $7.35 [11 - 32:14 $726 [1] - 36:15 '04 (5) - 31:8, 34:2, 34:24, 36:7, 37:1 '05 [2) - 37:10, 45:15 1[121- 4:9,7-12 ' 7:13,7:15,8:3,8:23, 9:20.9:21, 9:22, 13:11, 24:4,25:9 10[9]-4:11,4:12, 4:18,20:20,21:15, 28:23,28:25,31:4, 31:5 10-7580[1] - 1:3 1001 SBA [1 ] - 13:15 10:26[21- 1:14,5:2 11 [el - 4:19, 26:10, 26:15, 28:20, 28:25, 29:1, 33:3,33:5 11/1/200811] - 26:20 11/19/04 [1l - 22:23 11123/04 [11- 22:23 11:39(1]-47:5 11:43[2] - 47:5, 47:8 12[6] - 4:13, 4:20, 35:24, 36:1, 37:8, 37:9 12/4/09 [1] - 29:2 13[141- 4:14, 4:20, 4:21, 14:22,15:23, 26:15, 28:20, 28:23, 36:3, 37:8,37:9 ' 40:12, 40:15, 46:12 14 (61- 4:14, 4:22, 43:17, 43:19, 45:24, 46:18 14th [41- 8:10,10:7, 26:9, 48:20 15[31- 4:23, 46:4, 46:6 16(2) - 46:10 16074 [1 ] - 27:9 17 [1) - 4:15 17,676 [21- 12:25, 25:1 17011[2]-1:14,2:3 17013 [1 ] - 1:23 17108[1]-2:7 175 [11- 23:17 18611] - 1:22 18th [1] - 44:4 19[1] - 4:16 2 2[91-4:10, 8:11, 8:13, 8:16, 8:21, 12:24,14:25,16:13, 37:20 20 [2] - 3:23, 4:17 200 [1] - 23:20 2003151- 7:8, 8:10, 10:7,11:6, 31:1 2004 (e] - 6:24, 19:6, 19:7, 30:11, 30:25, 32,23, 34:20, 34:22 2005131-19:8, 41:8, 44:4 2006 [1] - 26:11 2008 [1] - 26:9 2011 [2) - 1:9, 48:20 212[1] - 2:6 2132121- 1:13,2:2 21st [2) - 34:24, 36:7 22nd (1) - 41:8 233-7691 [1] - 2:8 23rd [21- 31:8, 34:15 24 [2] - 3:23, 4:3 243-0413111- 1:24 243-9770 [1] - 1:24 24th [3] - 32:23, 34:20, 34:22 27033 [1] - 14:6 3 3[4]-4:11, 10:8, 10:9,14:24 3131110 [1) - 29:4 30th 11] - 22:18 31 [11- 4:18 33[1)-4:19 35[1] - 4:20 37,000 [1] - 42:21 37,553.10 [1] - 32:18 38[1) - 3:23 4 4[51- 4:12,10:17, 10:18,10:20,10:22 40[1)-4:21 40,000(1) - 28:14 42[11- 3:23 43[11- 4:22 43,000 [2] - 27:20, 44:24 43,660[1] - 15:21 44[11-3:23 46 p]-4:23 Id 5 [10) - 3:13, 4:13, 12:7,12:8,12:11, 12:14,15:16,15:17, 24:16,37:6 5,800 [1] - 29:2 5,847.34 [1] - 28:16 5/1/2008 [1] - 26:19 51739[2] -14:1, 14:2 5a (1] - 37:21 s 6[51- 4:3, 4:14, 14:18,14:19,16:1 7 7 [8] - 4:9, 4:15,17:6, 17:7,17:9,18:16, 24:6, 41:3 7114/08 [2) - 12:24, 13:8 7/14/2008 [1) - 24:20 71714] - 1:24,1:24, 2:4, 2:8 78772[1] - 14:10 8 8[51-4:10,4:16, 19:10,19:11, 24:6 8124/2004 [1] - 35:8 9 9 181 - 1:9, 4:17, 20:16, 20:17,21:15, 23:22, 24:4, 24:6 9/20/04 [1] - 40:22 975-9446 [1] - 2:4 99[11- 30:13 A a.m [5] - 1:15, 5:2, 47:5, 47:8 ability (2] - 39:17, 44:19 able (2] - 23:2, 39:10 absolutely [1] - 18:22 according [2) - 12:14, 42:11 Accounting [1) - 19:15 accounts [1] - 30:18 Accrual (3] - 4:13, 24:16,27:15 accrual [11- 32:14 accrue [1] - 29:4 accrued [7] -16:7, 17:1, 31:18,32:20, 35:20, 41:2, 41:3 accurately [11- 48:16 ACTION [1 ] - 1:4 action [21- 22:16, 24:14 actions [1) - 23:11 actual [21- 13:5, 16:18 add [1) - 35:2 added [1] - 35:7 adjustments (1) - 16:18 administer [1) - 48:5 Administration [el - 4:10, 4:11, 7:6, 8:5, 8:18, 9:9,10:2,10:13 admission 11] - 24:4 admit [1] - 47:1 admitted [1] - 21:14 afterwards 11] - 48:12 ago [1) - 32:2 agree [131- 22:24, 23:2, 34:14, 35:5, 37:11, 37:12, 37:19, 40:24, 41:1, 41:22, 42:25, 44:18, 44:22 agreed [31- 5:4, 23:3, 48:12 agreeing [1) - 37:18 allowed 11] - 37:22 allowing [1] - 46:12 allows [1] - 41:19 Americhoice [321- 6:18, 6:20, 6:23, 7:20, 8:7.11:5,17:11, 18:17, 20:7, 23:16, 29:16, 30:8, 34:8, 35:13, 35:14, 36:14, 37:15, 38:3, 38:10, 39:7, 40:18, 40:20, 41:11, 41:15,41:19, 42:5, 44:13, 44:19, 45:1, 45:12, 45:15, 46:11 aMERICHOICE [1] - 1:1 Americhoice's (1] - 42:11 amount [211- 15:5, 15:20,15:22,15:24, 16:2,16:4, 30:12, 31:15, 34:9, 34:18, 34:19, 35:11, 35:17, 37:22, 39:19, 40:1, 42:10, 42:20, 44:13, 44:15 amounts [1] - 18:2 AND (1] - 1:4 AND/OR [1] - 3:12 answer (21- 5:17, 6:5 ANSWER [1] - 3:2 answers (1] - 48:11 anticipating [1) - 31:25 appear [41- 20:24, 35:6, 44:23, 44:25 APPEARANCES[i]- 2:1 applied [s] - 14:2, 19:7, 26:23, 28:8, 28:9 approved [2] - 9:8, 48:12 approximate [11- 41:5 arm [11-12:3 aside [1] - 9:20 assigned [2] - 11:8, 19:24 asterisk [2] - 43:12, 43:14 attachment (1 8:2 attended [11- 18:6 attention [21- 7:25, 22:17 attorney [151- 11:19, 17:12,17:14, 21:7, 22:9,22:10, 22:12, 22:22, 30:21, 35:11, 35:12, 35:19,35:22, 44:2, 45:18 attorney's [2] - 30:2, 30:8 August [51- 31:8, Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR • 11 • 32:23, 34:15, 34:20, 34:22 authorized [1] - 48:5 auto (4) - 18:25, 20:9, 20:13, 22:8 automatic [2] - 22:22, 22:24 automobile [1] - 22:21 avenues [1] - 40:10 B Balance [6] - 4:13, 12:12,12:15,24:16, 27:15, 29:6 balance (2o] - 8:7, 12:15,12:17,12:18, 15:17,15:22,15:25, 16:18,17:1, 18:2, 19:5,19:7,27:17, 27:24, 28:1, 28:2, 28:4, 28:9, 29:4, 31:18 bank (4] - 11:12, 18:23, 30:23, 33:20 bank's [1] - 22:4 Bankruptcy [2] - 33:7, 36:2 bankruptcy [16) - 15:12, 17:25,18:3, 22:1, 22:5, 23:4, 31:17, 31:22, 31:25, 32:5, 32:6, 32:25, 33:22, 34:12, 35:23, 40:11 based 14] - 15:25, 16:24, 20:24, 28:10 basis [11- 12:2 BECKLEY [27] - 2:6, 2:7, 5:19, 5:22, 5:25, 6:6, 6:8, 20:11, 20:23, 24:5, 24:9, 24:12, 31:4, 31:6, 32:13, 33:4, 34:4, 35:25, 38:8, 40:13, 42:15, 43:18, 44:12, 44:17, 46:5, 47:3, 47:6 Beckley [1] - 24:13 begin (2] - 46:13, 46:21 behalf [11- 35:14 belief [1) - 38:16 best [11- 6:7 between [2] - 5:5, 15:22 beyond 111- 36:13 billing [3) - 23:15, 23:16, 23:18 bills [1] - 20:22 bit (1] - 29:7 booked [1] - 13:18 bome [1 ] - 45:9 borrower (41- 8:6, 24:2, 29:24, 45:10 bottom (7) - 20:6, 31:11, 34:23, 36:6, 36:11, 41:7, 44:4 bouncing 11] - 39:14 Box [11- 1:22 break [1] - 47:4 breakdown (1] - 14:13 business [221- 4:10, 6:21, 7:7, 7:8, 8:5, 9:2, 9:3, 9:10,9:15, 11:11, 11:13,11:16, 11:18,18:10,18:11, 18:12, 21:13, 22:4, 30:17 Business [7) - 4:11, 7:6, 8:5, 8:17, 9:9, 10:2,10:12 businesses [1] - 9:12 BY [271- 2:3, 2:7, 6:11, 7:14, 8:14, 10:10,10:19,12:9, 14:20,17:8,19:12, 20:15, 20:18, 21:2, 21:17, 24:12, 31:6, 32:13, 33:4, 34:4, 35:25, 38:8, 40:13, 42:15, 43:18, 44:17, 46:5 C calculated [2] - 15:25,28:6 Camp (21- 1:14, 2:3 car 121- 30:13, 30:18 cards [5] - 18:25, 19:3,19:5,20:13, 22:8 Carlisle [2] - 1:23, 48:6 Camare (1] - 31:1 case 141- 17:11, 24:1, 32:6, 40:11 cases [1] - 11:19 causes 11] - 48:6 certain [3) - 25:3, 31:19, 43:11 certification [21- 5:6, 48:24 certify [3] - 48:7, 48:9, 48:15 chain [1] - 22:2 change [7] - 16:1, 25:17,25:19,25:20, 25:21, 29:5, 32:15 changed [11- 26:19 changing 111- 29:7 Chapter [6] - 4:14, 4:20,14:22,15:23, 36:3, 46:12 charge (9] - 19:4, 19:22, 20:2, 20:3, 20:9, 20:12, 23:7, 23:23 charged (21- 19:8, 24:2 charges [41- 19:16, 20:7, 20:10, 20:14 check [1 ] - 23:14 CIVIL [t1- 1:4 claim [16] - 11:17, 15:6,16:5,19:3, 27:25, 30:20, 30:21, 34:9,37:23, 38:4, 40:18, 40:19, 41:23, 42:7, 42:9, 42:25 Claim ....................... ....... [1) - 4:21 claims [3] - 15:1, 22:9,37:24 class (1 ) - 14:25 clear[2] - 24:20, 27:19 clearly [1] - 45:16 CLR [3] - 1:16, 1:20, 48:21 code [61- 13:13, 25:8,25:9, 25:11, 25:15, 25:17 codes [1] - 25:21 collect [31- 18:2, 23:11, 29:19 collecting [1) - 16:10 collection [6] - 11:12,11:14,11:21, 29:23, 30:17, 40:10 Collection's [3] - 11:17, 22:12, 33:24 column [1] - 13:12 coming [11- 32:3 commenced 11] - 5:2 commencing [1] - 1:14 COMMON [1] -1:1 COMMONWEALTH [1) - 48:1 Commonwealth [2] - 1:17, 48:22 communication [1] - 11:24 complex [1] - 11:19 complicated [2] - 11:15,11:16 computerll] - 48:13 concern [11- 6:1 concerns [1) - 44:19 concluded [1] - 47:7 conclusion [1) - 38:7 condition [2] - 29:20, 29:21 Confession [5] - 4:9, 4:12, 7:17, 7:19, 10:22 confirm [11- 44:12 confirmed [1] - 46:12 considered [1] - 21:1 consumer [7] - 9:17, 11:11, 11:12, 11:14, 11:16, 19:1, 22:7 contact (1] - 35:10 contained [1] - 48:16 contains [11- 48:24 continue [1] - 46:25 conversation (1] - 30:11 conversations [1] - 23:10 copied [1] - 33:9 COPY [5] - 8:4, 8:24, 10:1, 33:11, 48:17 comer [11- 36:11 correct [3o] - 8:4, 10:1, 12:19, 12:21, 14:16,14:17, 15:9, 15:13, 17:12, 17:13, 17:21, 17:22, 21:10, 21:21, 27:18, 29:9, 30:25, 32:18, 36:23, 36:24, 41:8, 41:21, 42:7, 42:21, 42:23, 43:10, 44:20,45:6, 45:18, 48:18 correctly 11 ] - 39:11 correspondence [1) - 23:10 counsel [5] - 5:5, 41:11, 41:16, 41:20, 45:16 Counsel [2] - 2:5, 2:9 COUNTY [2] - 1:1, 48:2 couple [3] - 24:14, 25:17, 39:9 course (3] - 16:2, 22:4, 22:16 COURT 11] - 1:1 Court [7] - 1:16, 1:20, 33:7, 36:2, 37:22, 48:4, 48:22 courtesy [1] - 20:4 credit [5] - 19:3, 33:20, 33:21, 33:22, 33:23 CREDIT [1] - 1:1 Credit [4] - 6:18, 6:20,8:7,11:5 creditors (1] - 37:23 CROSS [21- 4:2, 24:11 CSR 13] - 1:15, 1:20, 48:21 CUMBERLAND [2] - 1:1, 48:2 customer (2] - 33:20, 33:21 U daily [1] - 32:14 DALLAS [4] - 1:12, 5:11, 6:16, 48:8 Dallas [21- 4:3, 6:14 date [37] -1:15, 8:9, 10:6,13:8,13:9, 13:10,14:8,14:12, 19:15,19:19,19:20, 25:22,26:17,26:19, 29:5,31:15,31:19, 31:20, 32:17, 32:21, 33:1, 33:16,34:25, 35:2, 35:21, 37:9, 38:2,38:19,41:10, 41:15, 41:22, 41:25, 42:22, 42:23, 42:24, 43:11 dated [2] - 24:20, 31:8 dates [1] - 31:23 deal [1] - 22:1 dealing [21- 22:21, 35:14 debt [3) - 34:19, 36:14, 44:14 debtor's [3] - 42:4, 43:23, 46:12 Debtor's [11- 4:22 debts (1] - 36:12 December[1] - 19:7 declared [1] - 34:19 deemed [1] - 37:24 default [1] - 29:13 defendant [11- 7:20 defendants [1] - 24:14 Defendants (2] - 1:6, 2:9 deficiency [1o] - 18:2, 27:24, 28:1, 28:2, 38:20, 38:21, Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR • • • 38:25,39:22,39:24, 40:8 deficient (11- 39:2 Department [41- 11:18,19:15,22:12, 33:24 Deposition [161- 4:8, 7:13,8:13,10:9, 10:18,12:8,14:19, 17:7,19:11, 20:17, 31:5, 33:3, 35:24, 40:12, 43:17, 46:4 deposition p1-1:12, 20:20,21:15,21:16, 47:7, 48:10, 48:17 DEPOSITION [11- 3:1 depositions [1] - 48:5 derive[ i j - 38:7 DESCRIPTION [1] - 4:7 determine [11- 40:9 Dethlefs [51- 17:21, 18:1,18:9,18:20, 23:19 DETHLEFS [2] - 1:13,2:2 Dethlefs-Pykosh [5] - 17:21, 18:1, 18:9, 18:20,23:19 DETHLEFS- PYKOSH [2] - 1:13, 2:2 difference [8] - 11:12,15:21,16:22, 16:23,16:24,17:1, 17:2,27:19 different [11- 22:16 differently [11- 13:18 differing [11- 28:11 direct [21- 7:24, 14:24 DIRECT [21- 4:2, 6:10 direction 11] - 48:13 DIRECTIONS [1] - 3:2 directly [3] - 23:9, 34:1, 35:12 disbursement [11- 46:13 discharged [21- 19:3, 19:5 Disclosure [21- 4:12, 10:22 discount 111- 20:4 discussing [1] - 40:8 distinctly (1] - 40:7 document [23] - 7:16,7:22,8:9,8:12, 9:24,10:6,10:11, 11:1, 11:2,11:22, 14:14,14:21,19:13, 36:2,38:6,40:15, 40:16,41:2,42:14, 43:20, 44:3, 44:10, 46:7 documents [41- 11:4,11:6,20:21, 33:22 DOCUMENTS [11- 3:7 done [51- 16:25, 22:11, 23:25, 47:4, 47:6 down p1- 25:18, 25:23, 25:24, 26:18, 28:9, 34:8, 48:11 drafted [11- 18:6 draw [1] - 22:17 drive [1] - 45:9 due [81- 11:20, 16:18, 27:17, 31:15, 32:17, 37:18,40:21, 41:2 duly [21- 5:11, 48:10 during [21- 26:7, 26:10 E E-mail [1] - 1:23 effective [2] - 26:17, 26:19 effort [61- 29:16, 29:17, 35:10,35:17, 35:19, 35:20 efforts [31- 11:14, 11:21, 29:24 eight [3] - 26:13, 26:19, 37:11 either [6] - 28:14, 31:21, 35:10, 39:23, 41:15, 43:16 employed 131- 6:17, 6:22, 39:13 encourage [11- 9:12 end [11- 27:22 ended [11- 28:10 engage [11- 41:20 engaged (21- 41:11, 45:16 entered [1] - 46:22 entitle [11- 45:12 entitled [2] - 36:2, 46:7 entries [1] - 25:17 entry [121- 12:24, 13:15,13:20,14:4, 22:23, 22:25, 24:19, 25:2, 25:5, 25:8, 30:7 Eric 126] - 7:1, 7:2, 8:6,8:18,10:3,10:13 , 10:24, 14:22, 17:11, 17:24,18:3,18:8, 21:4, 22:1, 22:2, 31:8, 31:21, 32:25, 33:6, 34:18, 35:5, 35:10, 37:16, 38:13,39:13, 39:23, 40:10, 44:19 escrow 11] - 14:9 Eshelman (2] - 17:16, 44:1 ESQUIRE [21- 2:3, 2:7 event (11- 41:20 eventually [1] - 45:21 evidence [11- 48:16 evidenced [21- 8:20, 9:14 exact (11- 33:1 exactly [31- 25:11, 31:2, 32:2 EXAMINATION [2] - 6:10,24:11 examined [11- 5:12 except 111- 5:8 exception [1] - 30:6 excuse [1] - 26:11 executed [3] - 10:23, 11:1, 11:2 exhaust (31- 11:21, 29:18,29:22 exhibit [2] - 16:12, 27:20 Exhibit [30] - 7:13, 7:25, 8:2,8:13, 8:22, 9:20, 9:21, 9:22, 10:91 10:16,10:18 , 10:20, 10:22,12:8, 14:19, 15:16,15:17,16:13, 17:7,18:16,19-9 ' 19:11, 20:17, 31:5, 33:3, 35:24, 40:12, 43:17, 46:4 EXHIBITS [1] - 4:6 Exhibits [1] - 24:4 exhibits (21- 12:6, 47:1 exist [11- 22:3 expected [11- 38:12 expenses [21- 16:10, 17:2 explain [4] - 12:23, 25:1, 27:3, 28:3 explained [11- 27:12 extend [1] - 36:13 F fact [2] - 45:2, 47:6 fair [14] - 28:13, 31:20, 32:24, 35:2, 36:7, 36:9, 37:14, 38:2, 40:17, 40:19, 41:10, 41:14, 45:25, 46:17 fairly (1] - 43:8 falls [1] - 26:21 familiar [4] - 7:2, 7:22, 7:23,15:1 far [11- 24:25 Fax [11- 1:24 FCU [1] - 34:8 feasibility [5] - 39:10, 39:15, 39:16, 40:7, 45:23 February 121- 19:8, 41:8 Federal 14] - 6:18, 6:20, 8:7, 11:5 FEDERAL 111- 1:1 federal [41- 9:9, 11:21, 11:22, 11:24 fee [11- 14:8 fees [12] - 30:2, 30:7, 30:8, 41:18, 41:20, 41:24, 42:1, 45:9, 45:11, 45:13, 45:16, 45:18 figure [131- 28:13, 28:14, 29:2, 34:11, 34:14, 34:15, 35:3, 41:4, 42:21, 43:6, 43:8, 44:23 file [101-11:17, 12:2, 21:4, 21:13,22:9, 30:19, 30:20, 31:22 filed [25] - 14:22, 19:2, 22:1, 22:5, 32:25, 33:6, 33:18, 33:21, 34:23, 36:2, 36:6, 38:3,39:1, 40:1, 40:5, 40:6, 40:11, 40:18, 40:20, 41:7, 41:8, 41:23, 43:23, 44:1, 44:3 filing [5] - 5:6, 30:20, 32:5, 32:6, 41:11 filings 11] - 42:11 fine [11-6:8 firm (6] - 17:15, 19:24, 20:5, 21:24, 21:25, 24:1 firm's 11] - 19:25 first [51- 6:15, 26:25, 29:6, 39:2, 46:23 five (31- 16:2, 32:2, 33:2 fixed [21- 16:13, 43:15 flip [1] - 37:20 Flower [6] - 17:17, 17:19,19:17,21:20, 23:16, 24:1 fluctuate [11- 27:2 fluctuates [2] - 27:1, 32:15 follows (11- 5:13 followup [11- 24:15 FOR [1] - 3:7 foregoing [11- 48:7 forgot [1] - 35:21 form [31- 5:8, 29:10, 32:11 forth (4) - 15:22, 15:24, 35:21, 46:21 forward [1] - 34:1 fraction (1) - 30:11 front [31- 7:15, 27:13, 33:10 full (4) - 6:13, 34:19, 37:24, 38:17 fully [21- 38:4, 48:16 funds [1] - 45:7 G gears [1 ] - 29:7 generally [1] - 7:5 Gladys [21- 31:1 glance (21- 37:5, 44:7 government (7] - 9:9,11:21, 11:22, 11:24, 29:11, 29:14, 29:21 GROUP [2] -1:13, 2:2 Group [41- 17:21, 18:9,18:20, 23:19 group [1] - 22:9 guarantee [61- 10:2, 10:13,18:4,29:21, 29:25, 42:10 Guarantee ............... ...... [11- 4:11 guaranteed [3] - 9:10, 42:5, 42:19 guarantees [3] - 9:11, 10:25,29:11 guarantors (61- 7:21, 10:4,10:14, 29:19, 29:24, 39:23 Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR • • • guess [8] - 7:11, 12:19, 17:1, 34:6, 37:5, 42:16, 43:5, 46:1 guessing 111- 27:14 guy Ill - 35:13 H halfway Ill - 34:8 hand [31- 36:11, 45:25, 48:20 Hannon [31- 13:21, 13:22 hard [11- 38:24 Harrisburg Ill - 2:7 head 12] - 32:12, 34:3 hear 121- 20:11, 34:6 hearings [1] -18:6 hearsay [21- 20:24, 21:1 held [1] - 1:12 help [1] - 9:11 hereby 121- 5:4, 48:7 hereunto [l] - 48:19 higher[7l- 37:4, 37:12, 38:23, 39:3, 39:4, 40:25, 41:1 Hill 121- 1:1412-3 hire[2] - 22:91 22:10 hired 151- 17:11, 17:20,18:1, 21:20, 22:22 hiring 14] - 17:24, 18:9, 21:24,21:25 history [71- 11:3, 12:13,12:20,25:25, 27:6, 27:7 honor Ill - 29:25 hour [2] - 23:17, 23:20 ID [2] - 27:6, 27:7 Idea Ill - 45:7 Identified [4] - 8:21, 9:14, 16:12, 43:6 identifier[s] - 27:11 identifies [i] - 15:25 Identify 181- 7:16, 8:15, 10:11, 10:20, 12:10, 13:5,19:13, 20:20 Identifying [3] - 13:16, 19:15, 43:3 imagine [l] - 33:19 IN [1] - 1:1 include [31- 16:7, 16:9, 35:20 Included [2] - 37:23, 45:19 Includes [l1- 32:20 inclusion [q - 45:17 incorrect[i1- 35:18 incurred [41- 16:10, 30:8, 41:15, 45:16 INDEX [21- 3:1, 4:1 Indicate 121- 35:11, 35:17 Indicated IlI - 9:13 indicates [2] - 15:5, 15:8 Indicating [21- 15:15, 43:13 Individually [l1- 38:15 Information [1] - 28:10 INFORMATION Ill - 3:7 Initialed [1] - 10:23 Initiated [l] -11:5 inscribed Ill - 48:20 Instances [1l - 23:22 Intent (31- 39:22, 42:17, 42:18 interest [311- 12:4, 14:4, 14:6.14:12, 14:15,15:8,16:7, 16:11, 16:24,17:1, 17:2, 25:25, 26:23, 28:7, 28:15,28:17, 31:18, 32:20, 35:3, 35:20, 36:18, 36:20, 39:4, 39:6, 41:2, 41:3, 43:1, 43:2, 43:5, 45:2, 45:4 invoice [7] - 19:15, 19:20, 19:21, 19:22, 19:23, 19:25, 22:18 invoices [121- 18:16, 20:22, 20:25, 21:3, 21:7, 21:10, 21:11, 21:14, 21:19, 23:7, 23:21, 30:4 Invoices .................. .................. [21- 4:15, 4:17 involve Ill - 11:19 involved [31- 21:6, 23:12, 30:17 involvement Ill - 30:18 itself 131- 38:6, 42:14, 44:11 J January [21- 6:24, 30:25 Joseph 1i1- 6:14 judge [l] - 38:7 Judge [21- 5:18, 6:5 judging 121- 30:11, 36:6 Judgment [3] - 7:17, 7:19,10:23 Judgment....... [1] - 4:12 Judgment ............... ....... [t] - 4:9 July Ill - 26:9 K keep [21- 7:11, 45:8 keeping [t1- 40:10 knowledge [3] - 7:5, 40:1, 46:20 L labeled [2] - 24:16, 46:18 lack [11- 45:17 large[r] -16:23 Larson 131 - 1:15, 1:20, 48:21 LARSON Ill - 48:4 last [4] - 6:15, 20:11, 31:2, 32:22 late [l] - 14:8 Law [51- 17:21, 18:1, 18:9,18:20, 23:19 law [41- 19:24, 19:25, 21:24, 21:25 LAW [3] - 1:4, 1:13, 2:2 left [i 1- 28:14 legal [51- 16:10, 17:10, 38:6, 45:9, 45:11 lender Ill - 8:6 lenders [21- 9:11, 9:12 lending [21- 6:21, 30:17 less [21- 11:15, 37:18 letter [s] - 31:7, 31:9, 31:13, 31:14, 31:16, 31:21, 31:25, 34:15, 35:22 Letter ...................... ................ [1] - 4:18 lien [11- 34:9 life [1] - 36:13 likely [2] - 22:10, 41:2 limit [t] - 45:10 Linda [3] - 1:15, 1:20, 48:21 LINDA Ill - 48:4 linda@ premierreportingllc. com Ill - 1:23 Lindsay [51- 17:19, 19:17,21:20,23:16, 24:1 list [l] - 45:17 listed [31- 40:22, 44:13, 44:15 LIVIA [t1- 1:5 Livia 161- 7:21, 10:5, 10:15,10:24,18:4, 42:6 LLC [31- 1:13, 1:22, 2:2 loan [891- 7:1, 7:2, 7:5, 7:6,7:7, 7:8, 8:7, 8:20, 9:6, 9:7, 9:8, 9:10, 9:13, 9:15, 9:17, 9:18,10:3,10:4, 10:13,11:4,11:6, 11:10,11:11, 11:13, 11:23,11:25,12:2, 12:13,12:16,12:20, 13:13,13:16,14:15, 18:3,18:10,18:11, 18:13,18:21, 18:24, 19:1, 19:16,20:9, 20:13, 22:2, 22:3, 22:6, 22:8, 22:15, 22:21, 23:1, 23:8, 23:10, 23:11, 23:12, 25:20, 26:16, 29:8, 29:10, 29:11, 29:13, 29:20, 30:9, 30:18, 30:23, 31:1, 31:15, 32:4, 32:23, 34:12, 36:20, 36:22, 38:17, 38:22, 39:5, 40:22, 42:21, 43:6, 43:15 loans [n] - 9:2, 9:5, 9:12,11:15,11:16, 11:17,11:18,13:18, 18:8,18:21, 18:24, 18:25,19:1, 22:7, 29:22 lodge [t1- 20:23 lodged [1] - 45:2 logged [11- 13:6 look p91- 8:19, 9:20, 9:21, 15:16,18:15, 19:18,23:21, 25:10, 25:15, 25:25, 26:18, 31:23, 33:12, 34:23, 36:10, 37:10, 44:3, 46:10, 46:23 looked 181- 24:19, 27:20, 27:21, 30:1, 30:7, 45:20, 45:24, 46:17 looking liol - 7:9, 26:2, 26:3, 26:14, 26:20, 30:1, 33:10, 34:7, 37:8, 37:20 looks [41- 26:25, 27:13, 27:22, 35:7 lower [31- 37:4, 37:15, 38:23 Lyndsay [t] - 17:17 M MADDEN [1] - 2:6 mail [l] - 1:23 March [41- 1:9, 44:4, 45:15, 48:20 mark [>>] - 7:10, 7:12,8:11, 10:8, 10:16,12:7,14:18, 17:5.19:9, 20:16, 31:4 MARKED [11- 3:17 marked [20] - 7:13, 8:13,8:16,8:22,10:9, 10:18,12:8,14:19, 17:7,19:11, 20:17, 31:5, 33:3, 33:5, 35:24, 40:12, 40:14, 43:17, 46:4, 46:6 market [l] - 12:3 Market 121- 1:13, 2:2 matches [l] - 34:15 Matthew [2] - 17:16, 44:1 mean [4] - 25:9, 25:13, 25:23, 39:16 means t3]- 25:1, 25:14,28:3 meant [l1- 25:11 mechanism Ill - 25:2 mentioned [5] - 9:6, 11:10, 22:20, 29:7, 44:8 MICHAEL [t1- 2:3 middle [31- 26:16, 29:1, 36:12 mind [l] - 40:10 minute Ill - 47:3 month [51- 26:4, Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR L--.] • 1r? u 26:25, 35:1, 35:3, 36:15 monthly 121- 12:2, 44:15 mortgage [1l - 9:18 most 14] - 20:9, 22:11, 23:9, 30:10 move [21- 24:4, 47:1 moves [11- 27:2 MR [511- 5:15, 5:19, 5:21, 5:22, 5:24, 5:25, 6:3, 6:6, 6:7, 6:8, 6:9, 6:11, 7:10, 7:14, 8:14, 10:10,10:19,12:9, 14:20,17:8,19:12, 20:11, 20:15, 20:18, 20:23, 21:2,21:12, 21:17, 24:3, 24:5, 24:8, 24:9, 31:4, 31:6, 32:13, 33:4, 34:4, 35:25, 38:5, 38:8, 40:13, 42:13, 42:15, 43:18, 44:9, 44:12, 44:17, 46:5, 47:2, 47:3, 47:6 :l name [4] - 6:13, 6:15, 24:13, 31:3 nature [11- 44:6 necessarily [11- 32:9 need [2] - 27:3, 46:23 net [1 ] - 20:4 New [11- 39:14 next [51- 13:7, 13:11, 26:2, 27:6, 43:14 NICASTRO [2] - 1:4, 1:5 Nicastro [381- 2:11, 7:1,7:2,7:21,8:6, 8:18,10:3,10:5, 10:14,10:15,10:24, 14:23,15:20,16:11, 17:11, 17:24,18:3, 18:4,18:8,19:16, 21:4, 22:2, 31:8, 31:21, 32:25, 33:6, 34:18, 35:5, 35:10, 37:16, 38:13, 42:6, 42:11 Nicastro's [11- 44:19 Nicastros [1] - 41:19 NO [31- 1:3, 4:7, 13:14 nonbusiness [11- 22:21 none [11- 5:16 None [31- 3:3, 3:8, 3:18 nonpayment [1l - 16:8 normal 11l - 22:4 North [11- 2:6 NOT [1] - 3:2 Notary [51- 1:16, 1:20, 48:4, 48:12, 48:22 Note [11-4:10 note [291- 8:5, 8:18, 8:20, 8:21, 8:22, 8:24, 9:14,10:3,10:25, 16:10,16:11, 16:12, 16:19,16:24,16:25, 20:8,20:19,28:8, 37:16, 37:19, 41:19, 42:3, 42:18, 42:20, 43:3, 43:4, 45:10, 45:12 notes [21- 9:2, 48:16 nothing [2] - 25:19, 35:7 Notice [11- 36:3 notice 121- 36:4, 36:5 Notice ..................... .[2] - 4:14, 4:20 November [11- 22:18 number[18] -12:25, 13:1, 13:11, 13:14, 13:25,19:21, 19:22, 19:23, 19:25, 24:25, 25:61 25:8, 25:9, 34:24, 41:6, 44:24 Number 191- 10:16, 10:20,12:11, 12:14, 16:13,18:16,19:9, 21:15 numeral [1] - 37:21 oaths [1] - 48:5 object [101- 24:6, 38:5, 39:19, 42:13, 44:9, 44:13, 44:14, 44:15 objected [41- 39:7, 39:9, 44:18, 45:4 objecting [21- 40:1, 45:8 objection [71- 20:23, 40:1, 43:23, 44:23, 45:17, 47:1, 47:2 objections [161- 5:7, 5:17, 6:1, 6:4,40:4, 40:6, 44:7, 44:10, 45:2, 45:17, 45:21, 45:23, 45:24, 45:25, 46:11, 46:16, 46:17 OBJECTIONS [1] - 3:22 Objections [1l - 4:22 obligation [1] - 42:5 obviously [21- 6:25, 39:13 occurred [1] - 20:13 October [31- 8:10, 10:7,19:6 OF[41- 1:1, 1:1, 48:1, 48:2 office 16] - 17:21, 17:24,18:5, 23:19, 44:1, 48:6 Office [1 ] - 18:1 offices [11- 1:13 often [11- 32:4 once [11- 38:3 one [10] - 8:24, 22:8, 23:12, 25:10, 30:7, 39:9, 40:7,43:14, 43:16 opposed [1] - 11:13 OR [1] - 3:7 Oral [1] - 1:12 order [2] - 12:6, 24:10 original [71- 8:17, 8:25,10:12,11:1, 11:2,16:12, 48:24 originally [1] - 39:10 originated (31- 7:8, 30:24, 31:1 owed [4] - 27:23, 32:5, 34:19, 42:20 own [11- 25:5 owner [11- 11:6 ownership [11- 11:4 P P.O [1] - 1:22 packet [11- 12:7 PAGE [1] - 4:7 page [191- 12:24, 14:24, 24:22, 26:3, 26:6, 26:14, 27:13, 28:20, 29:1, 29:6, 33:10, 33:12, 34:7, 36:10, 36:12, 37:8, 37:20, 40:21, 42:2 pages [1] - 33:10 PAGES [51- 3:3, 3:8, 3:13, 3:18, 3:23 paid [111- 12:4, 14:8, 15:20,16:8,18:16, 20:7, 27:25, 28:5, 29:14, 41:15 paper [11- 33:23 papers [1l - 34:12 paragraph 12] - 42:3, 46:10 parents [1] - 42:19 part [4] - 16:23, 20:11, 21:3,21:13 participated [1] - 11:7 particular] - 26:4 particularly [11- 11:19 party [11- 20:25 pay [91- 32:3, 36:14, 37:18, 38:16, 39:10, 39:17, 42:4, 42:6, 42:18 payment [151- 12:12, 13:9,13:23,14:9, 14:13,16:9, 25:20, 31:15, 32:22, 34:22, 36:15, 37:22, 39:2, 39:4, 46:23 payments [14] - 12:4, 12:20,14:15, 27:22, 28:7, 28:9, 28:12, 38:3, 38:10, 39:8, 44:15, 44:20, 46:13, 46:20 payoff [61- 32:4, 32:7, 32:10, 32:11, 43:9, 44:23 penalty [1] - 14:9 PENNSYLVANIA [2] - 1:2, 48:1 Pennsylvania [71- 1:14,1:17,1:23, 2:3, 2:7, 48:7, 48:23 people [1 ] - 32:4 per [21- 41:4, 45:9 percent [11 ] - 16:1, 16:16, 26:11, 26:13, 26:19, 26:20, 26:25, 30:13, 36:18, 37:5, 37:13 perhaps [11- 26:2 period [31- 26:7, 26:10, 26:21 person [11- 40:11 petition [2] - 33:6, 33:18 Petition ................... ................. [11- 4:19 pick [11- 12:23 Plaintiff [21- 1:2, 2:5 plaintiff 111- 7:20 Plan [61- 4:14, 4:20, 14:22,15:23, 36:3, 46:12 plan [241- 14:25, 15:1, 15:21, 15:24, 27:21, 28:5, 36:13, 37:13, 37:23, 37:24, 38:3, 38:19, 39:1, 39:8, 39:11, 39:17, 39:20, 40:2, 42:4, 43:23, 44:20, 45:3, 46:12, 46:21 Plan ................. [1] - 4:22 pleadings [11- 18:6 PLEAS [11- 1:1 plus [41- 16:15, 16:24, 33:2, 37:2 point [91- 17:20, 20:24, 21:20, 32:24, 33:1, 33:14, 43:12, 44:13, 44:14 portions [11- 42:4 position [41- 6:19, 15:19,21:12, 30:6 possible [1] - 39:24 post 111- 13:9 posted [11- 13:22 potentially [1] - 40:8 predict [21- 38:22, 38:24 PREMIER [1] - 1:22 prepared 111- 20:25 Present [1 ] - 2:10 president 121- 6:21, 30:17 presumably [2] - 29:15, 46:24 previously [11- 21:14 prime [51- 16:15, 16:24, 27:3, 37:2 principal [171- 8:7, 12:17,13:25,14:2, 14:12, 27:17, 28:2, 28:4,28:8,28:14, 28:16,28:17,28:18, 29:3, 29:5, 31:18 printout [11- 48:13 Proceedings [11- 5:2 proceedings [2] - 35:23, 48:15 proceeds 111- 19:6 process 111- 25:20 processor[1l - 13:22 produced [1] - 21:7 Professional [11- Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR • • • 1:16 professional 11] - 20:4 pronounce 111- 31:2 proof 18] - 11:17, 30:20, 30:21, 40:17, 40:19, 41:23, 42:9, 42:25 Proof Ill - 4:21 proposed 111- 39:8 proposes 11] - 42:4 proposing [1] - 37:17 provide (6] - 12:1, 12:3, 31:14, 43:1, 43:2, 43:9 provided 16] - 19:14, 20:4, 28:11, 35:21, 35:22, 41:2 provides [1] - 9:11 provision 111- 41:23 Public [41- 1:16, 1:20, 48:5, 48:22 pull [1] - 25:3 purchase (1] - 9:3 purpose 18] - 7:7, 9:11, 17:23,18:9 , 21:23, 21:25, 31:13, 31:14 purposes 111- 30:19 pursuant 11] - 16:19 pursue [3] - 22:1, 22:2, 29:16 pursued 11] - 19:3 pursues (1] - 11:12 put 13) - 9:20, 24:10, 39:17 Pykosh [5] - 17:21, 18:1, 18:9,18:20, 23:19 PYKOSH [30] - 1:13, 2:2, 2:3,5:15,5:21, 5:24, 6:3, 6:7, 6:9, 6:11, 7:10, 7:14, 8:14, 10:10,10:19,12:9 ' 14:20,17:8,19:12, 20:15,20:18,21:2, 21:12, 21:17, 24:3, 24:8, 38:5, 42:13, 44:9, 47:2 Q quarter 111- 26:10 quarters (11- 37:11 questions [61- 5:8, 21:18, 24:3,24:15, 39:15, 48:11 QUESTIONS [1] - 3:17 quick [1] - 37:5 quote 11] - 32:8 R rate [451- 12:3, 14:15,15:8,16:1, 16:14,16:15,16:18, 16:24,16:25,17:2, 23:15, 23:18,25:13 , 25:15, 25:19,25:20: 25:21, 25:23, 25:25, 26:3, 26:6, 26:16, 26:23, 26:24, 27:1, 27:2, 27:3, 28:8, 28:11, 32:15, 36:18, 36:20, 36:22, 36:25, 37:15, 38:22, 39:2, 39:5, 43:1, 43:5, 43:13, 45:2, 45:5 rates [1] - 39:6 rather [2] - 45:8 read (1] - 37:14 reading (1] - 46:2 really [2] - 5:16, 39:15 reason [21- 18:19, 41:18 receipt 11] - 33:16 receive [2] - 38:11, 38:12 received [9] - 12:5, 14:9116:9, 20:5, 20:22, 28:12, 33:17, 38:3, 46:24 recognize [3] 31:8, 37:15, 40:15 record [4] - 6:13, 21:13, 24:5, 47:5 records [1] - 21:4 recover (1] - 41:20 RECROSS 11] - 4:2 REDIRECT [1] - 4:2 reduced [11- 48:13 reduction 11] - 28:19 reference [2] - 10:25, 26:22 referenced 11] - 10:3 references [11- 27:8 reflected [11- 45:3 regarding [4] - 6:25, 18:3, 22:24, 24:1 regards [11- 22:5 reimbursed (11- 17:4 relate [2] - 22:25, 23:7 related 14] - 12:13, 18:2, 23:9, 30:8 relates 11] - 17:24 relating 111- 19:16 relief [41- 22:10, 22:22, 22:24, 23:4 remaining [21- 19:4, 19:7 remember 11] - 32:9 repayment [1 ] - 16:2 Report [21- 24:17, 27:15 report [1] - 33:15 Report ............ [11- 4:13 Reporter [61- 1:16, 1:20, 48:4, 48:12, 48:14, 48:22 reporter[1] - 48:24 Reporter-Notary [21 - 48:4, 48:12 reporting [1] - 11:24 REPORTING [1] - 1:22 reports 11] - 12:2 represent [71- 12:25,13:8,14:1, 19:19, 24:14, 33:9, 41:11 representation [11- 17:10 represents [41- 16:4,19:20,20:3, 23:24 reproduction [1] - 8:22 request [31- 32:7, 32:10, 41:25 requested [1] - 41:24 requesting (11- 41:18 REQUESTS (1] - 3:7 requirement [1] - 11:20 reserved [11- 5:9 residential (1] - 9:18 resolved [21- 45:21, 46:1 resolves [1] - 46:11 resolving [11- 46:16 resources [21 - 29:18, 29:23 respect 121 - 11:25, 45:11 responsibilities 11] - 23:13 result [11- 20:7 reviewed [21- 21:9, 21:11 right-hand (11- 36:11 Roman 11] - 37:21 roughly (21- 35:2, 35:4 RPR [3] - 1:15, 1:20, 48:21 rule [2] - 5:18, 6:5 Saidis 161-17:17, 17:19,19:16, 21:20, 23:15, 23:25 Saidis's [1 ] - 44:1 sale [1] - 19:6 Salvatore [8] - 2:11, 7:21, 10:5,10:14, 10:24,15:19,18:4, 42:6 SALVATORE [1]- 1A satisfied (2] - 37:24, 38:4 saw [1] - 33:12 SBA [311- 9:5, 9:6, 9:7, 9:8, 9:11, 11:20, 11:23, 12:1, 13:16, 13:18, 16:25,18:13, 18:21, 18:24, 22:3, 22:6, 22:15, 22:25, 23:7, 23:10, 23:11, 23:12, 29:8, 29:10, 29:22, 30:9, 30:19, 40:22, 42:21, 43:6 schedule [21- 34:22, 35:17 Schedule [21- 33:11, 34:7 sealing [1] - 5:6 second [61- 24:9, 30:12, 33:11, 34:7, 37:21, 42:3 section [3] - 14:25, 15:1, 26:1 secured [71- 14:25, 15:6,16:4,36:12, 37:23, 42:7 see (191- 24:22, 25:10, 26:6, 26:18, 26:22, 27:91 28:20, 34:8, 36:15, 36:17, 36:18, 37:25, 40:23, 41:7, 43:4, 43:14, 46:14, 46:15, 46:23 seeing 13] - 34:11, 36:3, 36:5 seek [1] - 39:23 sell [21- 22:11, 23:3 sense [11- 30:22 sent (11- 33:22 sentence (3] - 37:21, 42:3, 42:17 September [51- 26:9, 34:2, 34:24, 36:7, 37:1 services [11- 20:4 servicing [1] - 12:3 set [31- 15:22, 15:24, 46:20 seven [31- 26:20, 26:25, 37:11 shall 11] - 37:24 sheet [51- 15:16, 16:17,19:17,19:18, 28:18 Sheet ....................... .......... Ill - 4:16 shortly (2] - 33:19, 36:8 show [6] - 17:5, 29:23, 33:5, 40:14, 43:19, 46:6 showing (21- 31:18, 36:1 shows 131- 16:17, 28:18,29:1 Shuff [5] - 17:19, 19:16, 21:20, 23:15, 23:25 signature [21- 31:11, 48:24 significance 111- 9:7 significant 11] - 13:3 signing 11] - 5:5 simply [21- 25:2, 29:14 situations 11] - 11:20 s]x [41- 32:2, 36:18, 37:5, 37:12 slightly 11] - 40:25 small [21- 8:4, 18:12 Small [8] - 4:10, 4:11, 7:6, 8:5,8:17, 9:9,10:2,10:12 smaller 111- 11:15 Sobel [31- 20:20, 21:15 Sobel's [11- 20:19 sold [21- 11:7, 30:13 sometime 111- 46:21 sooner [1] - 45:8 sorry (6] - 9:3, 28:25, 33:2, 33:21, 34:6, 43:25 sort [21 - 34:8, 35:14 sought 111- 22:13 speaks [3] - 38:6, 42:14, 44:11 specific I1] - 43:8 specifically [2] - Premier Reporting, LLC Linda C. Larson, CSR, RPR, CLR • • 22:25, 26:21 spell [11- 6:15 sporadic [11- 23:23 spreadsheet [21- 19:14, 38:24 ss 111- 48:1 started [11- 7:1 starts [11- 26:24 state 151- 6:12, 22:10, 35:8, 35:20, 39:14 statement [1I - 45:19 STATEMENTS 11] - 3:12 Statements [11- 10:23 states [11- 44:10 status 111- 12:2 statutory 111- 34:9 stay [31- 22:23, 22:24, 23:5 stays 111- 29:3 stenotype [q - 48:11 still Ill - 6:4 stipulated [1] - 5:4 stipulation [5] - 39:21, 39:22, 46:7, 46:11, 46:21 Stipulation .............. .............. [11- 4:23 STIPULATIONS [11- 3:12 Street [3] - 1:14, 2:2, 2:6 strictly [21- 30:9, 30:19 summary [11- 27:14 SUPPORT [11- 3:1 sworn [21- 5:12, 48:10 system [3] - 13:2, 25:11, 25:16 36:10, 40:21, 42:2 Third 11] - 2:6 THOMAS (11- 2:7 three 18) - 16:15, 16:25, 19:1, 22:8, 25:18, 36:11, 37:2, 37:11 three-quarters [1] - 37:11 tier11] - 42:7 TO [11- 3:2 today [31- 7:9, 20:25, 31:24 Tom 11]-24:13 took [11- 15:16 top [21- 27:6, 37:21 total 191- 14:9, 15:20, 20:6, 32:17, 36:15, 38:10, 39:19 totaling [1] - 38:4 towards 111- 37:21 track [1 ] - 13:4 tracking [1] - 25:2 tracks [21- 14:14, 14:15 traditionally 111- 11:15 transaction 161- 13:1, 13:5,24:25, 25:3, 25:5, 27:11 transcript 11] - 48:18 transfers 11] - 28:23 treat [11- 19:1 treated [2] -18:23, 19:2 Trial [6] - 4:13, 12:12, 12:15, 24:16, 27:15, 29:6 trial [2] - 5:9, 48:6 tried 111- 45:10 true [3] - 8:4, 10:1, 34:2 trustee 121- 16:9, 46:13 turn 111- 23:3 two [7] - 18:25, 20:9, 22:8, 25:18, 33:9, 37:21, 47:3 type [101- 8:20, 9:5, 9:15,11:20,11:24, 13:13,13:16,13:18, 25:10, 43:1 typically [41- 11:17, 19:1, 22:7, 33:24 10:12 ultimately [21- 24:2, 45:9 uncommon [11- 32:7 Unconditional [1] - 4:11 unconditional [3] - 10:2,10:13,10:25 under [6]- 13:24, 14:25,19:19,43:6, 44:20, 48:13 UNION 11] - 1:1 union [4] - 33:20, 33:21, 33:22, 33:23 Union [41- 6:18, 6:20,8:7,11:5 unless [1] - 47:1 unpaid [11- 12:17 up [7) - 9:20, 25:3, 25:23, 25:24, 28:10, 39:14, 45:9 updates [1] - 12:1 USDA [1] - 9:3 V Valid 111- 48:24 variable [10] - 16:13, 16:15, 25:13,25:15, 36:22, 38:22, 39:5, 43:1, 43:5, 45:3 varies 11] - 43:13 vehicle 15] - 19:4, 19:6, 22:11, 23:3, 43:15 verify 111- 44:12 vice [21- 6:21, 30:16 Visa 15] - 18:25, 19:5, 20:13, 22:8, 30:18 Visas [11- 20:9 vs[1]-1:3 37:16 works [11- 12:23 written [1] - 32:1 wrote [2] - 31:16, 31:24 C, T Tally 111- 4:16 tally [41- 15:16, 16:17,19:17,19:18 Tel 111- 1:24 terms [21- 11:14, 30:8 testified [21- 5:12, 27:16 testify 11] - 25:14 testimony [3] - 6:2, 48:8, 48:19 THE [21- 1:1, 20:12 thereafter[1] - 33:19 third [41- 24:22, U U.S [71- 4:10, 4:11, 8:5, 8:17, 9:9,10:1, W waive [2] - 5:25, 6:1 waived [1] - 5:7 whereof 111- 48:19 WITNESS [2] - 4:2, 20:12 witness [2] - 5:17, 48:10 Witness [21- 32:12, 34:3 word [2] - 13:24, 46:2 words [21- 28:6, Y years [4] -16:2, 32:2, 33:2 yesterday 141- 5:16, 5:20, 5:23, 7:11 yesterday's [1] - 21:16 York [11- 39:14 Z Z-u-1-1-1 [11- 6:16 ZULLI [31- 1:12, 5:11, 48:8 ZuIIi [551- 4:3, 4:8, 6:12, 6:14,7:12, 7:13, 7:15,8:3,8:11,8:13, 8:15,8:16,8:21, 8:23, 9:21, 9:22,10:8,10:9, 10:16,10:18,10:20, 12.7,12:8,12:10, 12,14,14:18,14:19, 16'.13,17:6,17:7, 17:9,19:9,19:11, 20:16, 20:17, 21:3, 23:22, 24:13, 24:16, 30:1, 31:4,31:5, 33:3, 33:5, 35:24, 36:1, 37:6, 40:12, 40:15, 43:17, 43:19, 45:24, 46:4, 46:6, 46:18 Premier Reporting, LLC • • 1;s L_J a E Plaintiff and against Defendant as follows: Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717) 975-9446 AMERICHOICE FEDERAL CREDIT UNION Plaintiffs V. FILED jMc ~Q, F1C OF FRO j tRiCDFr _9 P, it ' 0-1 Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO.1u_?5gd SALVATORE NICASTRO AND LIVIA NICASTRO CIVIL ACTION -LAW Defendant CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of attached to the Complaint filed in this action, I appear for the Defendant and confess judgment inlf which of the a. Principal b. Interest to December 6, 2010 $517.37 c. - -Attorneys Fees $ 350. 0 -d- Attorney Fee pursuant to $9,231.40 Confession of Judgment - $5,000.00 Guarantee - TOTAL - - $20,429.04 plus interest accruing at a raft of $1.00 per diem after December 6, 2010 Plus costs - Respectfully Submitted, Date: December g 2010 K h Apykosh, Esquire Atty ID: 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 (717) 975-9446 Attorney for Plaintiff aw.11...?..__ ? aD. 5a ?a a,? affik? S • Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, Pennsylvania 17011 (717) 975-9446 AMERICHOICE FEDERAL CREDIT UNION Plaintiffs V. SALVATORE NICASTRO AND LIVIA NICASTRO Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION - LAW Defendant • COMPLAINT PURSUANT TO Pa.R.C.P. 2951(b FOR ONFESS/ON OF ZDGMFiur ?,.., _ ) AND NOW, this I day of December, 2010, comes the Plaintiff, by and through its undersigned attorney, Dethlefs-Pykosh Law AmeriChoice Federal Credit this Complaint, and in su Group by Michael J. Pykosh and files pport thereof avers as follows: 1 The Plaintiff, AmeriChoice Federal Credit Union _ >usiness at 2175 Bumble Bee Hollow Road, Mechanicsburg, Cumberland County, Pennsylvania, 17055. 2. The Defendants, Salvatore and Livia Nicastro are adult i ' radley Circle, New Cumberland, PA 17070 ndtviduals with an address at 288 E 3. On or about October 14, 2003, Defendants' son Eric L. Loan, with an SBA Loan Number of GP 685 042 40 0 Ntcastro executed a Note for an SBA $40,000.00, co 2 HBG, in favor of Plaintiff, in the amount of py of which is attached hereto as Exhibit "A". 4. On or about October 14, 2003, Defendants ex ecuted an unconditional Personal Guarantee, a of which is attached hereto as Exhibit "B", guaranteeing the aforementioned SBA Loan. • 5. The SBA Loan is currently in default. 6. The aforementioned Personal Guarantee requires Defendants to guarantee all amounts under the Note and to pay all amounts due under the Note when Lender makes a written due them. demand d upon 7. The aforementioned Personal Guarantee requires Defendants to pay all ex incurs to enforce the Guarantee including, but not limited to, attorneys' fees and costs. penses lender 8. As a result of collection efforts to enforce the Note during a Chapter 13 Ban Eric Nicastro, Plaintiff incurred Attorneys' fees in the amount of $9,231.40. Bankruptcy filed by 9. Plaintiffs have demanded payment from the Defendants, but Defendants hav refused, and continue to neglect and refuse, to pay the same. a neglected and 10. The unconditional Personal Guarantee executed by Defendants Provides Judgment and an attorneys' commission related thereto in an amount not less for Confession of • ($5,000.00). than Five Thousand Dollars 11. There is justly due and owing to the Plaintiff from the Defendant breach the sum of $ 20,419.01, calculated as follows: on account of the aforesaid Unpaid principal balance of SBA Loan Interest to December 6, 2010 Attorneys' Fees $ 5'847. $ 3507 Attorney Commission .27 Total per Confession of Judgment-Guarantee $ 9,231.40 5 000.00 $ WHEREFORE, Plaintiff demands judgment against Defendants in 20'429.04 interest accruing at a rate of $1.00 per diem after December 6, 2010, Plus the amount of $20,429 04 plus the Court determines are due and owing, including additional attorney fees. Respectfully s b i By: Mic ae osh, Esquire Attorney I. D. No. 58851 2132 Market Street Camp Hill, PA 17011 Telephone (717) 975-9446 Attorney for Plaintiff • VERIFICATION I, Dallas Zulli, verify that the statements made in this Complaint are true and correct to the best of my personal knowledge, information and belief. I understand that false statements made herein are made subject to the penalties of 18 Pa. C.S.A §4904, relating to unswom falsification to authorities. Date: alias Zulli, Vic es' e t AmeriChoice Federal Credit Union • 0 11/.03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 07/22 U.S. Small Businm Administration NOTE 0 L PROMISE TO PAY: In return for the Lunn, Hocrowu ptwnius m pay to the order of Lender the amours of FAY Thousud and No/100 Ddllar:l, - intt rESt on t}re unpaid principal bmjvwe, and all other amounts _ tacittired by this Note. z. Dl FMMONs: ' Collateral" means any prq>erty taken as security for payment of this Note or any guarantee of this Nato. "GtmratPtor" rneana each PInm Or MWY that limns a guamme ofpaytttertt of this Note. "Loan" mmtte the loan Vviskimd by this Note. " Dvaeme»te" moats the doarmeots related to this I= signed by Borrower, grey GuatantW, of anyone who pledge oogatwtnL "SBA" maul the Small Business Administration, aq AIRY of the Unieed Stales of Amarim • SBAPaM 1A7(06iWlg2) Veajae4,I Pape t!6 11/'03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 08/22 • 3. PAYMENT TERMS: Borrower must make all paymwtts at the peace Lmk r dtsigttttm The Payment ta=1br ffiis Note am • The toomaet nice on this Now will fiuehtate. The initial totrered tare is 7% Per yew, This iniCLl teas is tie prime rue on test d 383 recttived the loan Win' plus 31L The initial iaearat rm most Martin in east] anti] the fast charge Occrowee am pay principal and intanat paymm" ofSW 00 *my mondt, beening one Moro, from the Owth this Note is doled; pttynnaots moat be made on the ft oaWWw daf in the months they mm due. each IasWWmt psywtdtt f]tst to Pay ieteaa' scatted b the day Ltmdeermaives the payment, theft to cmrmmt, then to Ply arty late fetes, and will apply any temainimig hall"" to redact Prinoipal- The /mesas] rate will ba adjoeted monthly (die •ddiange Period-). The "him Rsue• is do prime rate in effect on the fast business day of the month in w hiclt an interact rate clangs occurs, as Pddisltad In the Wall Street Journal on the ft u bmiam day. The 8011011 h *=4 rate will be 3% Above the Prints Riser Leader wig adjust the i k" rats on the fist calaular day of tnich ohnoRs psaiod The chaege In iiteot+eat taro is cHkctive on that day whciber or not Leader Om Bormwar notice of the dm W- Tim initial is mvd rste UWE Torok in effect mill the fim change petipd begun. Layrder ]trust adjust Rat payment amount at law soneally as needed to amortize principal ova the -mining twm of the ttolp. If SHA pwvbmm the guars km4 pow Of the m4Wd prittci parnox ? bijanw, tbc ittbsnst rate betatttea fated u the core in I at the time ofths wrlioat wmmd d't3tu at the rote 6t effect at die time of pu dmee. h. If theft is no ]rotated psynuart deflimit, the rata becomes feted All zmuining F,, a W sail amrued interest is due mW payable 7 Ycars front the dste of Noce. Lale Cb"W" If a pt Of ft IM re en 10 days Iatc? Lender may citatRe 8otrower a late The of up to 5% of the taaFGW paid Potiion of tlq tatly schedulod PaYm LOen Pi'Cp ft1kC Notwithstaodh% airy ProvisiCC of this Note to the contrary: - Harrower VW p"y this Note. Hnrnowa "y PnPay 20 i?t Oracu of the unpaid p t balance at New- - willum notices If"bower Prepays more than 200/6 and the Loan bas beam add oo 6e m omwwe ?Y »nrrket, HotwDwer must: a. Give Lender writtee notice; b. Pq all ancmed entreat; and c. If the Piropaymtstt is tat eived tern than 21 days ftm dar, ffrom the the data Leader careless the 006M dart kpder rectivw the notice less orgy interest accrued dmiug the 21 Pay V1 Mom dar and P@d a?nder 2 ] oubPacagrapb b., above. IoBoerower does not pt>cpay within 30 days fivm the date Lander reoe'ives the notice, Botrotuer must give Lender a new BHA Foes t41 fo6+t1 W) Vecjim 4.t Pegs V6 11/'03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 09/22 • 4. DEFAULT: Boffw,m is in default under this Note ifBorrower doer not roake apaynoW when due under this Now, or if Borrower or Operating ConVany: A. Fens to do aMMirtg required by this Nola ad other Loan Doemnans; B. Dehubs on any other loan with Leader, C. Dow not arced vq or Amt to Leveler's satisfaction for, any of the CoAssaal or its pwcveds; U. Doer: not 4111010M a MOM ttoft on their behalf does Apt ttaselese, any material ha to Lander Or SBA; E. Makes, or anyone acting on their behalf mates, a materially fags or mida to Mpeseattation to Loma or SBA; F. Defaults oo any loan or agreement with another creditor, if Leader believes the default may materially aSet Borrower's ability to pay this Nub; G. Fsih to pay any taxes whas due; H. Becomes the =10dx ofa proceeding under any baBlrl9tM or i w va q law; 1. Has a receiver or liquidator appointed lbr any part of their busium or property; 1. Mates an a®pirwat tier the becefit of creditors; K. Has any adverse cbmSe is fbonmial cmilitiort or business operation that Lender believes may now ally affect Borrower's ability to pay d»s Note G. Reorganizes; merges, idatcs, or otherwise changes ownership or t nines; sMwt ue without Leader's prior • written consist; as M. Becomes the subject ofa civil or criminal action ttnt bender behewea m y ,AaowWly of od Borrower't ability to pay this Note S. LENDWS RIGHTS IF THE" 13 A DUAULT: Without notice or demand and without Oft up any-of its rights, Lander may; A- Require imrtrdWC pa =t* of all AMOM to Owing ender this Note; B. Collect all snwuatc owing from any Borrower or Guarantor, C. File suit sad obtain jtrdgmteu>: D. Tate pomssioo otany Collateral; or E. Sell, lease, or otherwise Asa of, any Collateral at public or private sale, With Or widtout advettigemwl- 6. LENDER'S GENERAL POWm,$; UVithout notice and widuma Borrower's consent, Leader may: A. Bid one or buy the Colktaral at its salt or the We of another henholder, at say price it chooses, B. 'Harr a Pm= to collect auwunlt due tmdpr this Noel, e01brOe the tam of than Noce or any otter Loan Doeuatesd, and preserve or ddpwe of the Collateral. Among other things. the expenses my include payntetcs for testy h-w, prior liens, insurance, appraisals. envirmeagawl remediatiom costs, and namable attorney's *os and costs. If birder iocurt such expatser, it rosy demand irnme&W rey y M ftm Bw"" or add the e'peaset to the principal bataaoe; C. Release anyone oblipted to pay Obis Note; D. COmprorrdse, rsler K renew, toctend or substitute any of the Coffsttral; and • E. Taker any action neeersary to preheat tht Collateral Or Collect amounts owing on this Note. SBA Poem 147 (OWWO21 version 4.1 der 3A 11/83/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 10/22 i 7. WMM PBDERAL LAW APPLIES; Whey SBA is the bolds, this Nok will be intorpnecd and enibroed under fedord law, iwitu tQ SBA regulatim. t.aeder or SHA nuy un Sam or local p wodues for Sling papas, re" ding doCa"Nots, 6aviag notice, foreclosing liana, god other pwrposes, BY among MM prooedmma, SRA does not waive any (bdenj immunity from state or local tnrntrol, peoaky, tax, or liability. As to"Noe, Batt aver tray not claim or assert agsmst SDA lay local or state law to deny any abkgaioo, defeat any daim of SBA, or Xc=Vt &detttl law. 8. SUCCEMRS AND ASSIGNS: Uador this Note, 8orrowar anti Operatlog Gomp.ay iududc the saoeeasots of each, and Lender includes Its =cCMM and 9. GENERAL PROVI5ION3: A. All individuals and .otides signing this Note are jointly and severally liable. B. Borrower wsdves all sardysIzip delbases. C. Borrower must aim all documents necausty at may time to comply with the Lou Documents and to enttblt Lerch to nowire, pofed, or malatain L.oWer's liens on Collateral. • D. L.onder may ettereiae any of its rights sgpetaedy or t0llcdror, as many l mm and many cedar it chooses. Lender wy May or forgo OnAwning any of to rights without giving up say of thtm. E-* Borrower =yjm t use an oral sta nownt amender or SIBA to contradict or after the written hums of this Note_ F. Mao part of t>tht Note is oneafiretaW all other parts mown in effect G. To the attttet a Wwv d by law, Damower waives all demamdv anti r4*u in connection with this Note including Mus°ntaau, cletnarA Qtvh* and notice of diahat m bomowm also waives RV defeaees based upon say dotal that Loader tliid opt obtain any ptmmrnco; did mot obtain, parlor, or tmiataia a lies upon Colhftmi; unpaired - Collaaral. or tiid = obtain the fair ale W value of Collateral at a sate. • SSA Form 147 (ONOVe2) vargo 4.1 Page o6 11/'03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 11/22 • 10. STATESPECEW PROVISIONS: Cf*H%SSIONOFJUpQM@TT, BORROWER HatW VOLUNPABILY, KNOWINGLY,UMMSTAMD1N(3LY AND I?MVOCABLY AUTHORIZES AND BMPOWBRS THE PROTHONOTARY OR ANY ATPOOMY OF ANY COURT IN TIM 0M&ORWEALTA OF PI?1hNSYLVANtA OR EUBW8>ItOS AT ANY T' ?a TO APPEAR FOR AND CM M JUDGiM" THEM AGAMT BORROM POR (I) BITIIlIR TM BNTIRE ORIGINAL MUNCWAL SUll OF 71'wIS N072, OR (Z) THE, ANTIRS UNPAID P11114 IPA L BALANCE OF T HIS NOTE AND THE ACMURD AND UNPAID Bry"BRSyT'f; NIBDN AND LATE CRARM AND ALL OTHER SUM DUE UNM OIL INCM4KXIION W=T= Nd MAND ANY of Ty anm umm Do=wm wwnm OR NOT A DEFAULT HAS OCCURRED AND VMH OR W> ran C%VLAINT FR W AS ELECTM BY LEImBR;AND im 8nma CASH TOGETII81t WIT'II c" OF rw, AND AN ATroamrs awsmom OF FM R Tf 0%k BM NOT LESS THAN FIVE T'HOUSAM DOL LARS as iS MA WM RUMU OF HUXORS, AND WTTNOtTT'UC W OF APPEAL; AND FOR SO DOING, TM N= OR A COPY H =W VB UFM BY AFFIDAVI'T' OR SWORN STAT'BMBNT S ULL BX SUFF aWr WARILO . 809ROWa WAIVRTI TTY 03HT TO ANY STAY OF BXEC`LITiOQ,i AM TO M RAM OF ALL WCMdPn04 LAWS NOW OR Hav AIs771it IN BPFEGT_ >31CBCtTIION MAY 3 MB'DIATELY jag MUM ON THE IUDC$4NT, WITFAOOtTI PRIOR NOTICE ORHBAR@IC3, To oAItNISH, UVY OR AT'T'ACH ANY PgRSMAL PROMTY OF BMOWM NO SIl NGLE WON= OF THE FORROOM WARRJWr AND POWER'ro COto= I SHALL BE DKsMTo WMUST nM paw>SR, R ORNOr1 ANY SUCH RCISE SMALL )1B RED BY ANY COURT TO BE INVALID, VOMAZA OR VOID, BUT THE POWR SHALL C==8 UND ED AND MAY BE WMtC = FRDIIt TDM TO TIME AS OFTEN AS LTA SHALT. ELECT, UN M ALL SUMS PAYABLE OIL THAT MAY ReCOME PAYABLE BY BORROWER HAVE BEEN PAID TH FULI- • • 3" Pmm 147 (06MM) VeraiM 4.1 PAP 516 11!03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 12/22 • 7. WHEN FEDERAL LAW APPLIES: When SEA is the holder. this Noto wilt to iatetpretad and enforced urjder f sclera! law, iaotadipg SBA roaabtionc. Lender or SBA. may we ft+eo at local procdures fm filing pepets, re mans dpgMMIth PvW4 Auda, foreclosing liens, and oia pmpGNL By using such p voodures, SBA dome not rirsiye any fitderal immunity hm state or local CO", penalty, tax, Or lialtllhty. As to thin Not% Bo TMW nhay pot claim or antes aphSt SBA any local or Bate law to dear any obhptien, defeat any daim of SBA, or peneatpt federal law. 8. SUCCESSORS AND ASSIGNS: Under this NOW Botmwar athd Ope[atinit CompanY ineptda the mcassom ofeack and Leader includes its successors and ese'em 9. GENERAL PROVISIONS: A. AM individuals and entities signing this Note am joiody and severaily liable. 8. Ba "ft waives all suetysmp daamm. C- Sormwer amor 4p all doaaeem aacnttay at say time to wmiy with the Lean Doeutrn * and to enable Leader to acquh G p or mmomin Lahder's lieu on Collaeral. D. Leader may =acfm any of fix rights oapIhrslaly or togcdmK :a many times ad in any order it cboom Loader may delay or Axgo miweing any of its rights without giving vp any of them. E. Bo"oaar any not use an oral staftwam of Lender or SBA to oomtradiat or al4er the written mees of this Note. P. If any part of this ivote is unm fuzmbtq all other parts remin in *&a. G. To the attest dbwd by law. Sorrower waives all dtmandn-and notim in eoowection with this Note, i>,clnding Pry, dexaad. protest, attd antis a ofdiaheaor. 80trtrwar also waives my definm beaW upon may claim that I,mder did not obtain sup gvarauloq slid not obtain, parfact, or aujotaip a lien upon Collateral; unpaired Collateral; or did toot obtain the fair aoadpet valve of CoD, st a sale. • SaA Reef 141(OMM) vaH10a 4. t Pap v6 • 11/'03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 13/22 10. STATESPBCOC PROVI3MONS- CONFESSION OF J M%UNT. BORROWER HEREBY VOLUNTARILY, MOWU40LY, UNDMRSTANDR4GLY AND IRREVOCABLY AtTI'HORMES AND V00WW THE MOTHONOTARY OR ANY ATTORNEY OF ANY COURT IN THE C IWRALTH OF PBNNSYLVAMA 01t 8LSBWMU AT ANY MM$ TO APPEAR FOR AND COQ 1t ' THEM AGAQrj13T BORROWER FOR(t) a I iIBR THE EM u ORAIUUL MDUFAL SUM OF 'MIS MM OR (3) THE E)MRS UNPAID PWXVAL BALANCZ 417 THIS NOTE AND THE ACC3tU9D AND VAPA]D WrOL ST TAI AND LATE CHAT M AND AM OTHER S[11?TS DM UNM OR BZ CMOC7'IQ1+T WITH TWS NOTE AND ANY OF THB OTHER LOAN DOMMEM. OR NOT A DEFAULT HAS OCCURRED6 AND W M OR WYMM COMPLAINT Fum, AS ELECTED VVETIM BY LSND04 AND IN Vn= CASE TOGETHER WITR aOM OF SUIT. AND AN ATl'01tk rS COMMSM OF FM FMtCNT (ft BUf JODT LUS THAN FIVE THOUSAND DOLLARS (sS,IfODAD), WITH REtAUE OF $RItOR% AND Wff=M GHT OF APPBAU AND FOR 90 DOM, THOS NUM OR A COPY HEREOF VB WMID BY AFEDAVR OR SWORN STATEMENT SHALL BS SiFRCENT WARRANT, ep>RR ! WAIM TIM RIGHT TO ANY STAY OF P,1G3Cl,MCK AND THE BENEFIT OF ALL MMA TIOM LAWS NOW OR HUBAFM IN EFFECT. E)CGClJ ON MAY R&AEDIATI1LY BS MUED ON TAB ]UDGMW4 T, WZTROUT PRIM NOTICE OR HSARDIG, TO oARMSII, LEVY OR A7TACH ANN pa&ONAL PROPERTY OF BORROWER, NO SOKU WORM OF THE FOREGOING WARRANT AND POM TO CONFESS AffQ HNT SHALL 1!S DIIBMBD TO WMAUSP THE PUTIM WNSI M R OR NOT ANY SUCH MUCISE SHALL BR HELD BY ANY COURT TO BE INVALID, VOIDABLE, OIL VOID, BZTT THE POWER. SHALL COMTKIR UN J18IED AND MAY BE E=MSED FRO KTOMBTO TUR AS OFTEN AS LiIN M SHALL ELECT, UNt'li. ALL SUMS PAYABLE OR THAT MAY BECK PAYABLE $Y BORROWER ,AVE BEEF( PAIR IN FULL. • • BOA Porm 147 (06R3A2) VftdW 4,1 Pap 516 • 11/03/2010 14:37 7179752309 PAGE 14/22 DETHLEFS-PYKOSH LAW 11, BORROWER'S NAME(S) AND SIGNATURE(g)- By signing below, each individual or entity becomes obligated undw this Note u Bomwer. 0 _(SEAL) Eric ix*wo SBA Form 147 (06MAKt) Vance 4.1 rw 616 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 15/22 • 0 Note Arrlourtt 540,000.00 'Sf3- U.S. Small Business Administmdon UNCONDITIONAL GUARANTEE SBA Loan # GP 665 042 40 02 HBO aM Loan Name Nicastra CUropractin Health Center Selvatrore MOW* and Livia Nieastro grower Eric L. Niot?M Lender AmeaiC6aice Federal Credit Union Date October 14, 2003 1. (}UARANTBB: Gu wax tancondidanally zuwanw= payment to Lender of all all vats owing wider the Note. This Guarantee rennios - in efts until the Note is paid in full. Guarantor awd pay d Da MM due under dw Nate when Leader mares writtm deatapd upon Guarantor. l =Ww is rwt rtxPtited to seer payment Gum Imy other m m e, before detneaft paymey fray Gmrdator. 2. N077w The "Note" is the ptroenittaory, note dated October 14, 2003 in the IrinriPal amount of Pony Thousand and No/100 Dollars, from Borrower to Lender. It includes arty assumption, renewal, t "anion, or replacm mt of the Not-, and Mw6pk notes under a lute of credit- 3. DE1FIN171ONS: "Collateral" means any Property taken as security for payment or the Note or any guarantee of the Note. "L.oae means the loan eAdcaced by the Note. "Loan Doctancou" means the donunents related to the Loan signed by Gorrawer, Guarantor or any otter guarantor, or anyone who plnd&cs C0114t-):1. "SBA" mcam the Small Business Administration, an Agency of the United States of America. SBA Form 148 (10198) Pnviova rditiope obrotete. PrBe I/$ 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 16/22 • 4. LENDER'S GENERAL POWERS' Lender may take my of the following actions A any tier, without notice, wilbout GuararAor's eonseot, and without rrtaleing demand upon Guarantor A. Modify the terms of the Now or sny olbet Loin Document exempt to increase the amounts due under [hie Note; B. Refrain front taking any action on the Note, the Collateral, or any gumantee; C. Release any Borrower or any Suarmder of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Sv%du to or release any of the Cotlsatmi, whether or not LeatdN =dva anythinj In man; F. Foteclote upon or otherwise obtaht, nod dispose of, any Collateral at public or private sale, with or without 0. Bid or bury many salt: of Collah" by !..alder or arty ember lienholdmr, at any price Lender choowmr. and IL Eurcin arty nights it ban, lnelrdlng those in the Note and now Lou Documents. These actions will not release or reduce the obligations of Gwrsabor or cteate any tights or ehints against harder. 5. FEDERAL LAW: When SBA is the bolder, [tae Note and this Gcaraatee will be eonal mad and eauforomd under federal law, wdud % SBA ragulabomt. h under or SBA xw use state or hood pmceekues for filing pkx?s, Meotft docurvests, VMS notice, forecloft liens, and otbsr pwposes. By using such pr ocoder a, SBA does cwt waive any federal inuounilty from slate or local owArol, peadly, 01, or liability. As to ibis O narantce, Guarmrix-w, ay not claim or sssat any local or state taw egsinst SBA to deny may obligation, defect any claim of SBA. or preempt Relent) law. 6. RIGIM, NOTICES, AND DF,I'ENSES TtIAT CWARAM'Olt WA[VES: To nix extent permitted by law, - A. Guawtor waives all rights to: 1) Rex)uinu preunxraxent, protest, or demand upon Burrower, 2) Redeem may Collateral before or afm )render imposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of CoUalaal before or after hander disposes of it B_ Guarantor waives any notice of I ) Any dcfaoll under the Note 2) Presaftarz , dishonor, protest, or demmd; 3) Execution of the Note; 4) Any adios or inaotion on lbs Note or CoUateual, such as disbursements, pmymeryt, nonpayment, acceleration, intent to acce eraft, assigomeot; colketion activity. and incurring =kroemerit oxpausee, 5) Any ebmga in dw finatmial condition or business ope atioos of Aorrower or any gumantor, 6) Any ebangm in the terms of the Note or other Loan Doctursatt, uucoept increases in the amounts due under the Note, and 7) The time or place of any sak or other disposition of Collateral. C. Guarantor waives deft M based upon any claim that 1) Lender failed to obtain any guar uc.. 2) Lender Haled to obtain, perfect, or maintain a security interest in any property offered or taken as Collateral; 3) Lender or others improperly valued or inspected the Collatetal; 4) Tbc Collateral changed in vahte, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (tons[) Vrevteue editions norther r5p 2/3 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 17/22 i) Lender itttpairod the C411OWMI, 6) Leader did not dispose of soy of the Collateral; 7) Laudar &d not conduct s coxmerclally reacnttable sac: 8) Lender did not olntsin the fair market vdue of the Collateal; 9) Lander did not make or perfeet a claim upon the depth or difabi6ty of Borrower or any gnorwor of the NO* 10) The financial condition of Borrower or any Suaranior teas wrout sd or has adversely charged; 11) Leader mobraram oroatieaions in Lawn Doavneots oradnwtistration of the Lwo; 12) Lander did not seep payment from the borrower, any outer Viamtto; . or any Colialeml belbre damxu ntg payer ftum OUK311401; 13) lender hooted Gtrara tes suratyslip rghtx; 14) Lender modfiiod the Note terms, other than to inemaae atNtamts doe trader the No*. If Lawler moll n the Not to biereaue the amotults doe toiler the Note wltbotu GuuanWs corms t, Cnreauor win not be liable 1br this itatteaaed mocietta and rotated inter and atpensm Lul remains liable fpr all other amoucts; 15) Borrmwer has avoidRd liability an the Alote; or 16) Lender Jim am an action allowed larder tim Note' this Gusra sloo, or new Loan Documents. 7. DUTIES AS TO C)OLLATI;Ii;AL: G?aarwnaor will presem the Collateral pledged by Cituarantor to noose this ouarmtee. Larder has no duty to preserve or disptae of my Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Gwatsmee. Govaotolr includes heirs send stlCaebaoys, and Lender includes its sttccmors and assigns. 9. 09NERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay_ all expenses Gender incur to anke" this Guaranra, including. but not limited (o, attorney's fees and tams. 9. SSA NOT A CA-GUARANTOR. Crouantar's liability will rondaue evsn if SBA pays Lcuder. SBA is not a cm. guarantor with C luamotor. Guarmtor bas no eight of contribution from SBA. C. SUBROGATION RIGHTS- Glararrt hat no subrogation rights as tube Note or tits Collateral upol the Nose is paid in full. D_ JOINT AND SEVERAL LIABILM. All itdtividtala aed ewitita sigoing as Gu ttantor arc jointly and severally liable. E. DOCUNWNT SIGNING. Guatautor must sign all documents nemsary at any time to comply with tine Loan Documents and to enable Landes to acquire, parfccl, or maintain Landes liens on Collateral. F. FINANCIAL STATEMENTS. (Guarantor must pve bender financial statements as L xkr requires. G. LENDER'S RIGHTS CUMULA IVE, NOT WANED. Lender may exercise wry of its tights saparatdy or together, as many times as it drooses. Lander ntay delay or forgo enforcing any of its rights without losing or impairing any of tbem. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral sttnetment to contradict or alter the written terms of the Note or this Guaaaater, or to raise a defecate to this Guarantee. f . SEVERABILI TY. If any part of this Guaranteo is found to be unenforceable, all other parts will remain in effeot. I. CONSIDERATION. Mn considerotion for this Guaraaiee is the Loan or any accommodation by Lender as to the Loan. &9A Fwm t48 ( 1W93) Dreviois edhbns obsolete Pngn )+5 11/'03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 18/22 • 10. STATE-SPECMC PROVISIONS: QUARANTOR 6II=REBY VOLUNTARELY. KNOWINGLY. UNDERSTANDINGLY AND IRREVOCABLY AUTF ORM AND BMJP( WM THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT IN THE CObAAONWMLIM OF M4MYLVANIA OR ELSEWHERE AT ANY TDB TO APPP.AR FOR AND COMM IUDC3NM TAT AGAINST GUARANTOR FOR THE BNTIRE UNPAID YAD93PAL BALANCE OF THE 14M AND THU ACCRUED AND UNPAID INIUM THEREON AND LATE'CHARON AND ALL OTHER SUTAS DUB UN=,0K IN COIdNOMON WI T9 THE 14M WHMTM OR NOT A OVALII.T HAS OCCUR>tRD. AND WITH OA WITHOUT COMPLAINT FaM, AS ftXM BY L6NDlKTOGETHER WITH COATS OF SUIT, AND AN ATTORNEY'S CObbdfBSION OF FIVE PaCI NT (5%i BUT NOT LESS 'ITUN FIVE THOUSAND DOLLARS (S5,0K0C% WCTH REIBASF, OF Rit MA AND TMOUT RIGHT OF AIVEAL.; AND FOR SO DOB G, THIS GUARANTOR OR A COPY 33U" VSKtO= BY AFFIDAVIT OR SWORN STATSMT SMALL W SUfflCMT WARRANT. GUARANTOR WANES THE RXINT TO ANY SPAY OF fi7CECUT1OIt A14DTEE *MGM OF ALL EMOTION LAWS NOW OR RBIiAK?= IN EFFBCT. WoK[T[tON MAY DA SEDIATBLY an ISSUED ON THE SIT, NRf HOITT MMR NOTICE OR IEARDIG, TO GAR? , LEVY OR ATTACH ANY PIDtSONAL I'ROrEtTY OF GUARANTOR. NO smLE KX lEM OF IM FORBOOING WARRANT AND POWSt TO CONIFUS JUDaMIN T SHALL BE D> TO WMV3T TBBP0*l R, WHKI'IfI?L OR NOT ANY SUCH Ii =C= SIIAIL W MIX BY ANY GIRT TO BE INVALM6 VOMANA OR VOID, BUT THE POWER SHALL CONTINM UNDVAwap= AND MAY BE CX(7SSD FROM 1'DO TO TSM AS OFTEN AS LENDER $HALL MACT, UNTIL ALL SUMS PAYABLE OR THAT MAY BECOMLS IRAYABLB BY GUARANTOR HAYS BEEN PAID IN FULL • • 98A Form 140 () 0199) Pmvigm o&L o= obw 1.14 Ps;. 4A 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 19/22 • j j_ GUARANTOR ACKNOWLEUGMENf OF TERMS. C, ,,,tor adtnowly ftGs that Gw uitor hae toad end un&rS=& the sigoiticwm of all tams of the Note and this Quwwtm including all walvas. 12, GUARANTOR NAMR(S) AND SIGNATURE(S): • • SSA fam 1.18 VQM) MYSOUS eokiam ob$Wem Pole 5/5 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 20/22 DISC:.UAE CONFF.S5IO1q OF JUDGMENT TM UNDERSIGr= IS EXXCU nNG, THIS ldm DAY OF O TODFR,?AA NO IN MOT][-) PAYABLE TO AMIiRiCHOICE FEDERAL CREDIT CONNVCM14 VffM A LOAN 94 TIM AMOUNT OF SU1,0000 TO TO UNION UNDERSIGNED FOR CobodtRCt L PURPOSE& 1141ru4s:(e_4 Tm UmmMIG ED'S ATT RNRY OR A REPRESENTNIM OF LENDER HAS MULARM To THE UNDEPSIGMW TILAT TOR NOTE CONTAINS W01tDING THAT WOULp Pmw THE LEMZR To ENTBR JUDGMKNT AGAINST THE I N NMIGM AT THE COURTHOUSE, WHE"1' §t OR NOT AN EVLNT OF DEFAULT HASTOCCURRED, w[TI ow NOTICE, ,Arm w oUT OFFRRR+' THE OPPORTUNITY AGAMST 'I`BM ICY OF JUD , AND TEAT THE JQDGbWM MAY HL WITHOUT O THE gam, WHO L OMMAY bgAM SEI,7F ?PROPERT'Y, REAL AND HEARING NY USX PRIOR NO'TICZ OR HEARING. INITIALS: • =E7- IN KMWUIING TIM NOTE, THE UNDRRM GNED IS iQ wiNGLY, UNDWATANDVIGLY, AND VOLUNTARILY WAIVING THE RIGHT TO RESIST THE ENIXY OF JUDGiM M AGAINST THE UNIMRSOMMM AT TIM COti1RMOUM AND IS C0143ENTING TO THE CONFESSION OF JUDGIVEM. THE Uri ZMGNED FURTHER IS IKNOYMGLY, UNAWSTANDINGLX, AND VOLUNTARILY WAIVING THE UNDEBSIGNOD'S RIGHT TO ANY PRIOR NOTICE -OR HEARING PRIOR TO THE LENDER'S SEIZING OF PROPERTY BY WRIT --OF EREC!MON AGAINST BANK ACCOUNTS AND PERSONAL ANDIOR REAL PROPERTY AV= TINE ATTAINMENT OF A JUDGGA+ NT SY CONFESSION. INn ALS:w THE UNDERSIGNED CERTIFIES THAT THE - NOTE WAS EXECUTED IN CONNECTION WITH A CObMRCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE UNDEASIGNZD'S INCONE BX?CEEDS 514,000.00 ANNUALLY, AND THAT THE UNDERSIGNED HAS RECEIVED A COPY OF THIS DISCLOSURE AT THE TIME OF SIGNING. WITNFSS: (SEAL) C L. NICASTRO 0 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 21/22 • ?i3CI.OS.,iZE FOIL CONF?SIUN OF JUDGM?.rIT UN])XuIGNEII IS EXECUTING, THIS IA' DAY OF OCTOBER, 203, AN UNCONDITIONAL GITAAANWE ("GUARANTY") PAYABLE TO AMIRICHOICB FRDtRAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $40 WCM TO ERIC L. NICASTRO, FOR COMMIIRCIAL PURPOSRS. IN1TIAiS: THE UNDERSIGNEWS ATTORNI Y OR A REPRIIUNTATNE OF LENDER HAS EXPLAMD TO THE UNDERSIGNED THAT THE GUARANTY CONTAIM WORMG THAT WOULD PERMT THE LZNDER TO ENTJ.R .JUX&JOt IT AGAINST T91 UMIRSIGNED AT THE COURTHOUSE, WSd"I'M OR NOT AN EVENT OF DEFAULT mm occuaRm, wffKouT NOTICE, AND WTPSOUT OFFERING THE OPPORT'UNTTY TO DXFS,ND AGAINST THL ENTRY OF JUDGMENT, AND THAT THE JUDGMENT MAY HR COLLZCTBD BY ANY LEGAL MRANB WITHOUT A PRIOR NOTICE OR A EMARING BY USII OF TSE SHERW7 WRO MAY SEIZE PROP' 717, MAL AND PERSONAL, WMIOUT PRIOR NOIRCE ORRFARING. iNTTIAIS? IN EXECUTING TIM GUARANTY, THIS UNDERSIGNBD IS KNOWINGLY, • UNU ST'ANDIPIMY, AND VOLUNTARILY WAIVING TSR RIGHT TO RRMT THE ENTRY OB YUDDGMWr AGARM TIZ UNDERSIGNED AT TSS COURTHOUSE, AND IS CONSFN LNG TO TIC-CONI?=IOPi OF JUDGMENT. THt UNDERSIGNED ITS FUKTMM KNO"GLY, UNDI MANDINGLY, AND VOLUNTARILY WAIVING THR RIGHT TO ANY PRIOR NOTKZ OR AWARLNG PRIOR TO TAE LA'S SEWNG OF TROP=TY BY WRIT OF EXECV' ioN AGAmsT- BANK ACCOUNTS AND PE mNAL. AmoR RLAL. PROPERTY AFTER THE ATTAINMENT- OF A MDGMENT BY CONFMION. wrn AL.S: THE UNDERSIGNED CERTIFIES THAT THE GUARANTY WAS EXECUTED IN CONNECTION WITH A C0106 RCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE UNDERSIfiM'S INCOME EXCUDS Slq®OS.QO ANNUALLY, AND THAT TM UNDERSIGNED RECEIvIfI) A COPY OF THIS DISCLOSVIM AT THE TIME OF SIGNING. WITNUS: r ?~ ?? $Y" ? (SEAL) SALVATORE N1tAKMO EA 11/03/2010 14:37 7179752309 DETHLEFS-PYKOSH LAW PAGE 22/22 • DXSC b., FOR JON OF RWGM&wff THE UNDERSIGNED IS EA'ECUTING, THIS lim DAY OF OCTOBER, 2003, AN UNCONDrrIONAL GU.ARANTXE ("GUARANTY") PAYABLE TO AMERICHOICE FEDERAL CRWIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF 540,004.04 TO ERIC L. MICA O, FOR COMMERCIAL PURPOBFS. INITIALS: THE UNDERSIGNEI?'S ATTORNEY OR A REPRESENTATIVE OF LENDER RAS EXPLAWD TO TIM UNDuaGNzD THAT THE GUARANTY CONTAINS WORDING TRAT WOMM Pa&= TIM LENDER To RNTER JUDGMENT AGARW THE UNI)MISIGM AT THE COURTHOUSE, WI&r= OR NOT AN LVOIT OF DEFAULT HAS OCC%Tf4kZD, WITBou T NOTICE, AND WMOUT OFl?F.WG TU OPIORTUMM TO DZVEND AGAINST TM ENTRY Ol< JUDGm.NT, AND THAT THE JUDGMVI T MAY BE COLLISCT>GD DY ANY LjjGAL MEANS WITHOUT A IrMOR NOTICE OR A IIEAAING BY USE OF TAE SHERIFF, WHO MAY 81912E PROPERTY, REAL AND PYdt"AI.., WrMOOT PRIOR NOTICE OR HEAZIN I1?ITIAL3 • IN FJOCCUIING THE GUARANTY, THE UNDERSIGNED IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVM THL RIGHT TO RESIST THE INMY OF YUDGIdZNT AGAINST TIDE Y7IHDEItl9IC? AT TIIE COURTHOUSE, AND-3S CONS G TO THE CONFESSION OF JUDGMBNT. THE UNDERSIGNED IS FURTHER KNOWINGLY* UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO ANY PRIOR NOTICE OR MARING PRIOR TO THE LENDER'S SIMNG OF MP Xff BY WRIT OF EXECUTION AGAINST BANK ACCOUNTS AND P13"AL ANDJOR REAL OF A JUDGMIENT MY CONFESSION. PROPERTY AFTER THE AtT INITIALS• THE UNDERSIGNED CERTIFIES THAT THE GUARANTY WAS EXI UTED IN CONNI9C31ION WITH A COMMERCLAL TRANSACTION AND DUES NOT INVOLVE; A CONSUMER TRANSACTION, THAT THE UNDZMGNRD'S INCOME EXC'E M SIO,4Y0.00 ANNUALLY, AND THAT THE UNDERSIGNED R> CWM A COPY OF THIS DISCLOSURE AT THS TD4E_ OF SIGNING. WITNESS: 1? k i - By: (SEAL) LIMA NICASTRO r: FILED-OFFICE THE PROTHOHOTAR',. 210 DEC -9 PH 1:39 CUMBERLAND COUNT'=' PENNSYLVANIA Michael J. Pykosh I.D. No. 58851 Dethlefs-Pykosh Law Group, LLC 2132 Market Street - Camp Hill, Pennsylvania 17011 (717) 975-9446 AMERIC+101CE FEDERAL CREDIT UNION Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. SALVATORE NICASTRO AND LIVIA NICASTRO NO. I b ,'? S g? CIVIL ACTION - LAW Defendants • NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON TO: Salvatore Nicastro and Livia Nicastro 288 Bradley Circle New Cumberland, PA 17070 -A judgment in the amount of $20,429.04 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A=PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO- A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOUR OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO-RIOT 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. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 BY: Michael J. Pykosh, Esquire • U.S. Small Business Administration NOTE SBA Loan # GP 665 042 40 02 HBG SBA Loan Name Nicastro Chiropractic Health Center Date October 14, 2003 Loan Amount $40,000.00 Interest Rate Prime rate plus 3% Borrower Eric L. Nicastro Operating Company N/A Lender AmeriChoice Federal Credit Union PROMISE TO PAY: In return for the Loan, Borrower promises to pay to the order of Lender the amount of Forty Thousand and No/100 Dollars, interest on the unpaid principal balance, and all other amounts required by this Note. DEFINITIONS: "Collateral" means any property taken as security for payment of this Note or any guarantee of this Note. "Guarantor" means each person or entity that signs a guarantee of payment of this Note. "Loan" means the loan evidenced by this Note. "Loan Documents" means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. HIBIT -71 -a Cs)) u.. SBA Form 147 (06/03/02) Version 4.1 Page 1/6 0 3. PAYMENT TERMS: • • Borrower must make all payments at the place Lender designates. The payment terms for this Note are: The interest rate on this Note will fluctuate. The initial interest rate is 7% per year. This initial rate is the prime rate on the date SBA received the loan application, plus 3%. The initial interest rate must remain in effect until the first change period begins. Borrower must pay principal and interest payments of $604.00 every month, beginning one month from the month this Note is dated; payments must be made on the 8th calendar day in the months they are due. Lender will apply each installment payment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal. The interest rate will be adjusted monthly (the "change period"). The "Prime Rate" is the prime rate in effect on the first business day of the month in which an interest rate change occurs, as published in the Wall Street Journal on the next business day. The adjusted interest rate will be 3% above the Prime Rate. Lender will adjust the interest rate on the first calendar day of each change period. The change in interest rate is effective on that day whether or not Lender gives Borrower notice of the change. The initial interest rate must remain in effect until the first change period begins. Lender must adjust the payment amount at least annually as needed to amortize principal over the remaining term of the note. If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate becomes fixed at the rate in effect at the time of the earliest uncured payment default. If there is no uncured payment default, the rate becomes fixed at the rate in effect at the time of purchase. All remaining principal and accrued interest is due and payable 7 years from the date of Note. Late Charge: If a payment on this Note is more than 10 days late, Lender may charge Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment. Loan Prepayment: Notwithstanding any provision of this Note to the contrary: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If Borrower prepays more than 20% and the Loan has been sold on the secondary market, Borrower must: a. Give Lender written notice; b. Pay all accrued interest; and c. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days' interest from the date lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b., above. If Borrower does not prepay within 30 days from the date Lender receives the notice, Borrower must give Lender a new notice. SBA Form 147 (06/03/02) Version 4.1 Page 2/6 • 4. DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company: A. Fails to do anything required by this Note and other Loan Documents; B. Defaults on any other loan with Lender; C. Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its proceeds; D. Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA; E. Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA; F. Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower's ability to pay this Note; G. Fails to pay any taxes when due; H. Becomes the subject of a proceeding under any bankruptcy or insolvency law; I. Has a receiver or liquidator appointed for any part of their business or property; J. Makes an assignment for the benefit of creditors; K. Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower's ability to pay this Note; L. Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender's prior written consent; or M. Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower's ability to • pay this Note. 5. LENDER'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, Lender may: A. Require immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. File suit and obtain judgment; D. Take possession of any Collateral; or E. Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement. 6. LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A. Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance; . C. Release anyone obligated to pay this Note; D. Compromise, release, renew, extend or substitute any of the Collateral; and E. Take any action necessary to protect the Collateral or collect amounts owing on this Note. SBA Form 147 (06/03/02) Version 4.1 Page 3/6 C , , 0 7. WHEN FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law. SUCCESSORS AND ASSIGNS: Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns. 9. GENERAL PROVISIONS: A. All individuals and entities signing this Note are jointly and severally liable. B. Borrower waives all suretyship defenses. C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. D. Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. • E. Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note. F. If any part of this Note is unenforceable, all other parts remain in effect. G. To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale. CJ SBA Form 147 (06/03/02) Version 4.1 Page 4/6 • 10. STATE-SPECIFIC PROVISIONS: CONFESSION OF JUDGMENT. BORROWER HEREBY VOLUNTARILY, KNOWINGLY, UNDERSTANDINGLY AND IRREVOCABLY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE AT ANY TIME TO APPEAR FOR AND CONFESS JUDGMENT THEREIN AGAINST BORROWER FOR (1) EITHER THE ENTIRE ORIGINAL PRINCIPAL SUM OF THIS NOTE, OR (2) THE ENTIRE UNPAID PRINCIPAL BALANCE OF THIS NOTE AND THE ACCRUED AND UNPAID INTEREST THEREON AND LATE CHARGES AND ALL OTHER SUMS DUE UNDER OR IN CONNECTION WITH THIS NOTE AND ANY OF THE OTHER LOAN DOCUMENTS, WHETHER OR NOT A DEFAULT HAS OCCURRED, AND WITH OR WITHOUT COMPLAINT FILED, AS ELECTED BY LENDER; AND IN EITHER CASE TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF FIVE PERCENT (5%), BUT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00), WITH RELEASE OF ERRORS, AND WITHOUT RIGHT OF APPEAL; AND FOR SO DOING, THIS NOTE OR A COPY HEREOF VERIFIED BY AFFIDAVIT OR SWORN STATEMENT SHALL BE SUFFICIENT WARRANT. BORROWER WAIVES THE RIGHT TO ANY STAY OF EXECUTION AND THE BENEFIT OF ALL EXEMPTION LAWS NOW OR HEREAFTER IN EFFECT. EXECUTION MAY IMMEDIATELY BE ISSUED ON THE JUDGMENT, WITHOUT PRIOR NOTICE OR HEARING, TO GARNISH, LEVY OR ATTACH ANY PERSONAL PROPERTY OF BORROWER. NO SINGLE EXERCISE OF THE FOREGOING WARRANT AND POWER TO CONFESS JUDGMENT SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER SHALL ELECT, UNTIL ALL SUMS PAYABLE OR THAT MAY BECOME PAYABLE BY BORROWER HAVE BEEN PAID IN FULL. • 0 SBA Form 147 (06/03/02) Version 4.1 Page 5/6 y,? 1 •?4 ,. ? • • 11. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligated under this Note as Borrower. By: • • Eric SBA Form 147 (06/03/02) Version 4.1 Page 6/6 US Small Bus Hess Administration . U.S. Small Business Administration UNCONDITIONAL GUARANTEE • SBA Loan # GP 665 042 40 02 HBG SBA Loan Name Nicastro Chiropractic Health Center Guarantor Salvatore Nicastro and Livia Nicastro Borrower Eric L. Nicastro Lender AmeriChoice Federal Credit Union Date October 14, 2003 Note Amount $40,000.00 GUARANTEE: Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Guarantee remains in effect until the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender makes written demand upon Guarantor. Lender is not required to seek payment from any other source before demanding payment from Guarantor. 2. NOTE: The "Note" is the promissory note dated October 14, 2003 Thousand and No/100 in the principal amount of Dollars, from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Note, and multiple notes under a line of credit. • 3. DEFINITIONS: "Collateral" means any property taken as security for payment of the Note or any guarantee of the Note. "Loan" means the loan evidenced by the Note. "Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor or any other guarantor, or anyone who pledges Collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. DEPOSITION EXHIBIT SBA Form 148 (10/98) Previous editions obsolete. Page 1/5 • 4. LENDER'S GENERAL POWERS: Lender may take any of the following actions at any time, without notice, without Guarantor's consent, and without making demand upon Guarantor: A. Modify the terms of the Note or any other Loan Document except to increase the amounts due under the Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or without advertisement; G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; and H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender. 5. FEDERAL LAW: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local or state law • against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to: 1) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. B. Guarantor waives any notice of. 1) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, acceleration, intent to accelerate, assignment, collection activity, and incurring enforcement expenses; 5) Any change in the financial condition or business operations of Borrower or any guarantor; 6) Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Note; and 7) The time or place of any sale or other disposition of Collateral. C. Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken as Collateral; • 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (10/98) Previous editions obsolete. Page 2/5 • 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor of the Note; 10) The financial condition of Borrower or any guarantor was overstated or has adversely changed; 11) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before demanding payment from Guarantor: 13) Lender impaired Guarantor's suretyship rights; 14) Lender modified the Note terms, other than to increase amounts due under the Note. If Lender modifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will not be liable for the increased amounts and related interest and expenses, but remains liable for all other amounts; 15) Borrower has avoided liability on the Note; or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: U d hi G n er t s uarantee, Guarantor includes heirs and successors, and Lender includes its successors and assigns. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this Guarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays Lender. SBA is not a co- guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral until the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly and severally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without losing or impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee. . 1. J SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain in effect. CONSIDERATION Th . . e consideration for this Guarantee is the Loan or any accommodation by Lender as to the Loan. SBA Form 148 (10/98) Previous editions obsolete. Page 3/5 • 10. STATE-SPECIFIC PROVISIONS: GUARANTOR HEREBY VOLUNTARILY, KNOWINGLY, UNDERSTANDINGLY AND IRREVOCABLY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE AT ANY TIME TO APPEAR FOR AND CONFESS JUDGMENT THEREIN AGAINST GUARANTOR FOR THE ENTIRE UNPAID PRINCIPAL BALANCE OF THE NOTE AND THE ACCRUED AND UNPAID INTEREST THEREON AND LATE CHARGES AND ALL OTHER SUMS DUE UNDER OR IN CONNECTION WITH THE NOTE, WHETHER OR NOT A DEFAULT HAS OCCURRED, AND WITH OR WITHOUT COMPLAINT FILED, AS ELECTED BY LENDER, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF FIVE PERCENT (5%), BUT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00), WITH RELEASE OF ERRORS, AND WITHOUT RIGHT OF APPEAL; AND FOR SO DOING, THIS GUARANTEE OR A COPY HEREOF VERIFIED BY AFFIDAVIT OR SWORN STATEMENT SHALL BE SUFFICIENT WARRANT. GUARANTOR WAIVES THE RIGHT TO ANY STAY OF EXECUTION AND THE BENEFIT OF ALL EXEMPTION LAWS NOW OR HEREAFTER IN EFFECT. EXECUTION MAY IMMEDIATELY BE ISSUED ON THE JUDGMENT, WITHOUT PRIOR NOTICE OR HEARING, TO GARNISH, LEVY OR ATTACH ANY PERSONAL PROPERTY OF GUARANTOR. NO SINGLE EXERCISE OF THE FOREGOING WARRANT AND POWER TO CONFESS JUDGMENT SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER SHALL ELECT, UNTIL ALL SUMS PAYABLE OR THAT MAY BECOME PAYABLE BY GUARANTOR HAVE BEEN PAID IN FULL. • • SBA Form 148 (10/98) Previous editions obsolete. Page 4/5 • 11. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and this Guarantee, including all waivers. 12. GUARANTOR NAME(S) AND SIGNATURE(S): .?y ai8U 118 uvivw, vawn muiviuuat or enury oecomes 0011gatea as fayaTWltW,=der this _---'Salvatore Nicastro By (SEAL) ivia Nicastro • SBA Form 148 (10/98) Previous editions obsolete. Page 515 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING, THIS 14TH DAY OF OCTOBER, 2003, A NOTE (`'NOTE') PAYABLE TO AMERICHOICE FEDERAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $40,0000 TO THE UNDERSIGNED FOR COMMERCIAL PURPOSES. INITIALS: - THE UNDERSIGNED'S ATTORNEY OR A REPRESENTATIVE OF LENDER HAS EXPLAINED TO THE UNDERSIGNED THAT THE NOTE CONTAINS WORDING THAT WOULD PERMIT THE LENDER TO ENTER JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, WHETHER OR NOT AN EVENT OF DEFAULT HAS OCCURRED, WITHOUT NOTICE, AND WITHOUT OFFERING THE OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, AND THAT THE JUDGMENT MAY BE COLLECTED BY ANY LEGAL MEANS WITHOUT PRIOR NOTICE OR A HEARING BY USE OF THE SHERIFF, WHO MAY SEIZE PROPERTY, REAL AND PERSONAL, WITHOUT PRIOR NOTICE OR HEARING. INITIALS: X./- IN EXECUTING THE NOTE, THE UNDERSIGNED IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO RESIST THE • ENTRY OF JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, AND IS CONSENTING TO THE CONFESSION OF JUDGMENT. THE UNDERSIGNED FURTHER IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE UNDERSIGNED'S RIGHT TO ANY PRIOR NOTICE OR HEARING PRIOR TO THE LENDER'S SEIZING OF PROPERTY BY WRIT OF EXECUTION AGAINST BANK ACCOUNTS AND PERSONAL AND/OR REAL PROPERTY AFTER THE ATTAINMENT OF A JUDGMENT BY CONFESSION. INITIALS: THE UNDERSIGNED CERTIFIES THAT THE NOTE WAS EXECUTED IN CONNECTION WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE UNDERSIGNED'S INCOME EXCEEDS $10,000.00 ANNUALLY, AND THAT THE UNDERSIGNED HAS RECEIVED A COPY OF THIS DISCLOSURE AT THE TIME OF SIGNING. WITNESS: By: (SEAL) ERIC L. NICASTRO EXHIBIT LA 3 -cl - ?_,-, I I It, DISCLO& FOR CONFESSION OF JUDGAT • THE UNDERSIGNED IS EXECUTING, THIS 14TH DAY OF OCTOBER, 2003, AN UNCONDITIONAL GUARANTEE ("GUARANTY") PAYABLE TO AMERICHOICE FEDERAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $40,000.00 TO ERIC L. NICASTRO, FOR COMMERCIAL PURPOSES. INITIALS: -VI THE UNDERSIGNED'S ATTORNEY OR A REPRESENTATIVE OF LENDER HAS EXPLAINED TO THE UNDERSIGNED THAT THE GUARANTY CONTAINS WORDING THAT WOULD PERMIT THE LENDER TO ENTER JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, WHETHER OR NOT AN EVENT OF DEFAULT HAS OCCURRED, WITHOUT NOTICE, AND WITHOUT OFFERING THE OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, AND THAT THE JUDGMENT MAY BE COLLECTED BY ANY LEGAL MEANS WITHOUT A PRIOR NOTICE OR A HEARING BY USE OF THE SHERIFF, WHO MAY SEIZE PROPERTY, REAL AND PERSONAL, WITHOUT PRIOR NOTICE OR HEARING. INITIALS: • IN EXECUTING THE GUARANTY, THE UNDERSIGNED IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO RESIST THE ENTRY OF JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, AND IS CONSENTING TO THE CONFESSION OF JUDGMENT. THE UNDERSIGNED IS FURTHER KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO ANY PRIOR NOTICE OR HEARING PRIOR TO THE LENDER'S SEIZING OF PROPERTY BY WRIT OF EXECUTION AGAINST BANK ACCOUNTS AND PERSONAL AND/OR REAL PROPERTY AFTER THE ATTAINMENT OF A JUDGMENT BY CONFESSION. INITIALS: THE UNDERSIGNED CERTIFIES THAT THE GUARANTY WAS EXECUTED IN CONNECTION WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE UNDERSIGNED'S INCOME EXCEEDS $10,000.00 ANNUALLY, AND THAT THE UNDERSIGNED RECEIVED A COPY OF THIS DISCLOSURE AT THE TIME OF SIGNING. WITNESS: -? Y ZoSSEAL) SALVATORE NI ASTRO 0 DISCLOGRE FOR CONFESSION OF JUDGT THE UNDERSIGNED IS EXECUTING, THIS 14TH DAY OF OCTOBER, 2003, AN UNCONDITIONAL GUARANTEE ("GUARANTY") PAYABLE TO AMERICHOICE FEDERAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $40,000.00 TO ERIC L. NICAST O, FOR COMMERCIAL PURPOSES. INITIALS. THE UNDERSIGNED'S ATTORNEY OR A REPRESENTATIVE OF LENDER HAS EXPLAINED TO THE UNDERSIGNED THAT THE GUARANTY CONTAINS WORDING THAT WOULD PERMIT THE LENDER TO ENTER JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, WHETHER OR NOT AN EVENT OF DEFAULT HAS OCCURRED, WITHOUT NOTICE, AND WITHOUT OFFERING THE OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, AND THAT THE JUDGMENT MAY BE COLLECTED BY ANY LEGAL MEANS WITHOUT A PRIOR NOTICE OR A HEARING BY USE OF THE SHERIFF, WHO MAY SEIZE PROPERTY, REAL AND PERSONAL, WITHOUT PRIOR NOTICE OR HEARIN . INITIALS • IN EXECUTING THE GUARANTY, THE UNDERSIGNED IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO RESIST THE ENTRY OF JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, AND IS CONSENTING TO THE CONFESSION OF JUDGMENT. THE UNDERSIGNED IS FURTHER KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO ANY PRIOR NOTICE OR HEARING PRIOR TO THE LENDER'S SEIZING OF PROPERTY BY WRIT OF EXECUTION AGAINST BANK ACCOUNTS AND PERSONAL AND/OR REAL PROPERTY AFTER THE T MENT OF A JUDGMENT BY CONFESSION. 1E ITIALS• THE UNDERSIGNED CERTIFIES THAT THE GUARANTY WAS EXECUTED IN CONNECTION WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER TRANSACTION, THAT THE UNDERSIGNED'S INCOME EXCEEDS $10,000.00 ANNUALLY, AND THAT THE UNDERSIGNED RECEIVED A COPY OF THIS DISCLOSURE AT THE TIME OF SIGNING. WITNESS: By: (SEAL) LIMA NICASTRO L? I• 1 0 I -J LJ c CL CC o 2 ? a 05 a c A c m H ??? ?iBS X88 E ? EE E < E '? o v+ $ U U D r O a co a gg 0 ? Q o c U $Za M 0 p0 0 b O N co Ni to a e? o 0 g? aa? fN0 N g q ?tl a E 2 UJ' U 0 D U U. N U rq W q o N C, a W b U 2 U U' 1 Loan History Begin Date : 10/14/2003 End Date : 2/5/2010 Friday, February 05, 2010 2:33:21 PM Customer: NICAERIC1001, Nicastro, D.C. Facility 1D: GP6650424002 Wan ID : GP6650424002 Page 1 of 13 Effective Date History ID Post Date Type Unsched GL Code User ID Reference Description 121412009 25,901 12/4/2009 1 No 1001SBA Ihannan Loan Payment Principal: $769.49 Interest: $24.93 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $794.42 1111212009 25,453 11/12/2009 1 No 1001SBA Ihannan Loan Payment Principal: $1,501.62 Interest: $86.18 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $1,587.80 911112009 24,376 9/14/2009 1 No 1001SBA Ihannan Loan Payment Principal: $704.61 Interest: $90.65 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $795.26 711312009 23,323 7/13/2009 1 No 1001SBA Ihannan Loan Payment Principal: $739.59 Interest: $55.67 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $795.26 619/2009 22,823 6/9/2009 1 No 1001SBA Ihannan Loan Payment Principal: $1,527.85 Interest: $62.67 Late Fee: $0.00 Escrow: $0.00 • 51712009 22 329 5/7/2009 Penalty: $0.00 Total: $1,590.52 , 1 No 1001SBA Ihannan Loan Payment Principal: $732.50 Interest: $62.76 Late Fee: $0 00 E . scrow: $0.00 Penalty: $0.00 Total: $795.26 4/612009 21,865 4/6/2009 1 No 1001SBA Ihannan Loan Payment Principal: $726.50 Interest $68.76 Late Fee: $0 00 E . scrow: $0.00 Penalty: $0.00 Total: $795.26 31512009 21,336 3/6/2009 1 No 1001SBA Ihannan Loan Payment Principal: $733.84 interest: $61.42 Late Fee; $0 00 E . scrow: $0.00 Penalty: $0.00 Total: $795.26 21612009 20,870 2/6/2009 1 No 1001SBA Ihannan Loan Payment Principal: $738.54 Interest: $56.72 Late Fee; $0 00 E . scrow: $0.00 Penalty: $0.00 Total: $795.26 1/12!2009 20,477 1/1212009 1 No 1001SBA Ihannan Loan Payment Principal: $607.29 Interest: $187.97 Late Fee: $0 00 E . scrow: $0.00 Penalty: $0.00 Total: $795.26 11112009 20,828 2/4/2009 3 No 1001SBA System Rate Change . Fixed Base: Spread: 3.25000 Rate Code: Day Code: 2 Accrual Basis: Principal Balance Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM Astomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 ' oan ID : GP6650424002 Page 2 of 13 111612008 Principal: 111112008 Fixed Base: Spread: 916/2008 Principal: 8/8/2008 Principal: 7M4/2008 Principal: • 5!912008 Principal: 511/2008 Fixed Base: Spread: 4/11/2008 Principal: 4/1/2008 Fixed Base: Spread: 317/2008 Principal: 21812008 Principal: 19,349 11!7/2008 1 No 1001SBA Ihannan Loan Payment $1,384.59 Interest: $215.42 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $1,600.01 19,297 11/1/2008 3 No 1001SBA System Rate Change 4.00000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 18,461 9/5/2008 1 No 1001SBA Ihannan $1,468.15 Interest: $107.29 Late Fee: $0, Penalty: $0. 16,172 8/20/2008 1 No 1001SBA Ihannan $688.16 Interest: $99.56 Late Fee: $0. Penalty: $0, 17,676 7/14/2008 1 No 1001SBA Ihannan $517.39 Interest: $270.33 Late Fee: $0. Penalty: $0. 16,826 5/9/2008 1 No 1001SBA Ihannan $666.29 Interest: $121.43 Late Fee: $p, Penalty: $0, 16,704 5/1/2008 3 No 1001SBA System 5.00000 Rate Code: 2 Accrual Basis: Principa l Balance Day Code: 16,348 4/11/2008 1 No 1001SBA Ih Loan Payment 00 Escrow: $0.00 00 Total: $1,575.44 Loan Payment 00 Escrow: $0.00 00 Total: $787.72 Loan Payment 00 Escrow: $0.00 00 Total: $787.72 Loan Payment 00 Escrow: $0.00 00 Total: $787.72 Rate Change annan Loan Payment $600.98 interest: $168.11 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $769.09 16,222 4/1/2008 3 No 1001SBA System Rate Change 5.25000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 15,908 317/2008 1 No 1001SBA Ihannan Loan Payment $660.47 Interest: $142.33 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $802.80 15,501 2/11/2008 1 No 1001SBA plen le 9 Loan Payment $670.43 Interest: $132.37 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $802.80 Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 ID : GP6650424002 Page 3 of 13 2/1/2008 Fixed Base: Spread: 1116/2008 Principal: 1/212008 Fixed Base: Spread: 111912007 Principal: 111112007 Fixed Base: Spread: • 10/5/2007 Principal: 10/112007 Fixed Base: Spread: 9/1012007 Principal: 817/2007 Principal: 7/13/2007 Principal: 51912007 Principal: • 15,348 2/1/2008 3 No 1001SBA System Rate Change 6.00000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 15,136 1/16/2008 1 No 1001SBA plengle Loan Payment $1,168.52 Interest: $437.09 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $1,605.61 14,974 1/2/2008 3 No 1001SBA System Rate Change 7.25000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 14,332 11/9/2007 1 No 1001SBA zpodolinsky Loan Payment $566.76 Interest: $236.04 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $802.80 14,190 11/1/2007 3 No 1001SBA System Rate Change 7.50000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 13,883 1015/2007 1 No 1001SBA zpodolinsky Loan Payment $620.89 Interest: $180.88 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $801.77 13,782 10/1/2007 3 No 1001SBA System Rate Change 7.75000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 13,581 9/13/2007 1 No 1001SBA zpodolinsky Loan Payment $550.12 Interest: $253.52 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $803.64 13,185 8612007 1 No 1001SBA zpodolinsky Loan Payment $572.64 Interest $231.00 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $803.64 12,915 7/16/2007 1 No 1001SBA zpodolinsky Loan Payment $1,307.66 Interest: $482.16 Late Fee: $223.12 Escrow: $0.00 Penalty: $0.00 Total: $2,012.94 12,138 5/9/2007 1 No 1001SBA zpodolinsk y Loan Payment $704.56 Interest: $511.69 Late Fee: $391.03 Escrow: $0.00 Penalty: $0.00 Total: $1,607.28 Loan History Begin Date : 10/14/2003 End Date : 2/5/2010 a tomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 Friday, February 05, 2010 2:33:22PM -roan ID : GP6650424002 31812007 11,426 3/8/2007 1 No 1001SBA zpodolinsky Principal: $567.82 Interest: $235.82 Late Fee: $0 Penalty: $0 217/2007 11,113 2/7/2007 1 No 1001SBA zpodolinsky Principal: $562.80 Interest: $240.84 Late Fee: $0 Penalty: $0 111112007 10,851 1/12/2007 1 No 1001SBA zpodolinsky Principal: $1,036.33 Interest: $570.95 Late Fee: $0 Penalty: $0 111812006 10,139 11/8/2006 1 No 1001SBA zpodolinsky Principal: $504.12 Interest $299.52 Late Fee: Penalty: $0 101612006 9,825 10/6/2006 1 No 1001SBA zpodolinsky Principal: $641.39 Interest: $537.90 Late Fee: $0 Penalty: $0 • 8/912006 9,308 8/9/2006 1 No 1001SBA zpodolinsky Principal: $599.05 Interest: $255.39 Late Fee: $0 Penalty: $0 7M312006 9,032 7/13/2006 1 No 1001SBA zpodolinsky Principal: $527.02 Interest: $274.95 Late Fee: $0. Penalty: $0. 7!312006 8,922 7/3/2006 3 No 1001SBA System Fixed Base: 8.25000 Rate Code: 2 Accrual Basis: Principal Balance Spread: Day Code: 611412006 8,756 6/15/2006 1 No 1001SBA Page 4 of 13 Loan Payment .00 Escrow: $0.00 .00 Total: $803.64 Loan Payment .00 Escrow: $0.00 .00 Total: $803.64 Loan Payment .00 Escrow: $0.00 .00 Total: $1,607.28 Loan Payment .00 Escrow: $0.00 .00 Total: $803.64 Loan Payment .00 Escrow: Woo .00 Total: $1,179.29 Loan Payment .00 Escrow: $0.00 00 Total: $854.44 Loan Payment 00 Escrow: $0.00 00 Total: $801.97 Rate Change $0 zpodohnsky Loan Payment Principal: $477.95 Interest: $320.19 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $798.14 611/2006 8,639 6/1/2006 3 No 1001SBA System Rate Change Fixed Base: 8.00000 Rate Code: 2 Accrual Basis: Principal Balance Spread: Day Code: 5111/2006 8,448 5/11/2006 1 No 1001SBA zpodohnsky Loan Payment Principal: $470.42 Interest: $331.55 Late Fee: • $0.00 Escrow: $0.00 Penalty: $0.00 Total: $801.97 Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM fistomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 Man ID : GP6650424002 Page 5 of 13 4/612006 8,132 4/6/2006 1 No 1001SBA zpodolinsky Loan Payment Principal: $537.90 Interest: $264.07 Late Fee: $0.00 Escrow; $0.00 Penalty: $0.00 Total: $801.97 4/312006 8,054 4/3/2006 3 No 1001SBA System Rate Change Fixed Base: 7.75000 Rate Code: 2 Accrual Basis: Principal Balance Spread: Day Code: 311912006 7,883 3/20/2006 2 No 1001SBA System Principal: $0.00 Late Fee: $17.29 Penalty: $0 319/2006 7,829 3/9/2006 1 No 1001SBA zpodolinsky Principal: $534.26 Interest: $267.71 Late Fee: Penalty: $0. 211912006 7,586 2/21/2006 2 No 1001SBA System Principal: $0.00 Late Fee: $23.06 Penalty: $0. 2/912006 7,523 219/2006 1 No 1001SBA zpodoinsky • Principal: $647.87 Interest; $154 10 Late Fe . e; $0. Penalty: $0. 21112006 7,424 2/1/2006 3 No 1001SBA System Fixed Base: 7.50000 Rate Code: 2 Accrual Basis: Principal Balance Spread: Day Code: 112412006 7,352 1/27/2006 1 No 1001SBA Late Payment Charge 00 Escrow: $0.00 Loan Payment 00 Escrow: $0.00 00 Total: $801.97 Late Payment Charge 00 Escrow: $0.00 Loan Payment 0 Escrow: $0.00 0 Total: $801.97 0 0 Rate Change zr-msky Loan Payment Principal: $3,119.83 Interest; $5,116.12 Late Fee: $0.00 Penalty: $0.00 Escrow: Total: $0.00 $8,235.95 112012006 7,260 1/20/2006 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 113/2006 7,119 1/3/2006 3 No 1001SBA System Rate Change Fixed Base: Spread: 7.25000 Rate Code: Day Code: 2 Accrual Basis: Principal Balance 1211912005 6,825 12/19/2005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 1211/2005 is Fixed Base: Spread: 6,665 7.00000 12/1/2005 Rate Code: Day Code: 3 2 No 1001SBA System Accrual Basis: Principal Balance Rate Change Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM ?istomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 Zoan ID : GP6650424002 Page 6 of 13 1111912005 6,484 11/2112005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow; $0.00 1012212005 6,219 . 10/2412005 2 No 1001 SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 1011/2005 5,911 10/1/2005 3 No 1001SBA System Rate Change Fixed Base: 6.75000 Rate Code; 2 Accrual Basis: Principal Balance Spread: Day Code: SM912005 5,742 9/1912005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 penalty: $0.00 Escrow: $0.00 91112005 5,612 9/1/2005 3 No 1001SBA System Rate Change Fixed Base: 6.50000 Rate Code: 2 Accrual Basis: Principal Balance Spread: Day Code: 811912005 5,445 8/19/2005 2 No 1001SBA System Late Payment Charge Principal: 0 $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 711912005 5,152 7/19/2005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow; $0.00 71112005 4,988 7/1/2005 3 No 1001SBA System Rate Change Fixed Base: 6.25000 Rate Code: 2 Spread: Accrual Basis: Principal Balance Day Code: 611912005 4,841 6/19/2005 2 No 1001SBA System Lab Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty; $0.00 Escrow: $0.00 5!1912005 4,354 5/19/2005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 51112005 4,244 5/5/2005 3 No 1001SBA System Rate Change Fixed Base: 6.00000 Rate Code: 2 Spread: Accrual Basis: Principal Balance Day Code: 411912005 4,097 4/19/2005 2 No 1001SBA System Late Payment Charge Principal: $0.00 Late Fee; $30.20 Penalty: $0.00 Escrow: $0.00 .411/2005 3,956 4/4/2005 3 No 1001SBA System Rat Ch e ange Fixed Base: 5.75000 Rate Code: 2 Spread: Accrual Basis: Principal Balance Day Code: Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 ID : GP6650424002 Page 7 of 13 3119/2005 Principal: 3/1/2005 Fixed Base: Spread: 2/19/2005 Principal: 1119/2005 Principal: 1M/2005 Fixed Base: Spread: 12119/2004 Principal: • 12/1/2004 Fixed Base: Spread: 11/19/2004 Principal: 1011912004 Principal: 10/112004 Fixed Base: Spread: 9/19/2004 Principal: 9/1/2004 Fixed Base: Spread: .8119/2004 Principal: 3,862 3/21/2005 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 3,744 3/2/2005 3 No 1001 SBA System Rate Change 5.50000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 3,645 2/19/2005 2 No 1001 SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 3,461 1/19/2005 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 3,365 1/4/2005 3 No 1001SBA' System Rate Change 5.25000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 3,236 12/19/2004 2 No 1001 SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 3,125 12/212004 3 No 1001SBA System Rate Change 5.00000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 3,020 11/19/2004 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 2,856 10/19/2004 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 2,761 10/4/2004 3 No 1001SBA System Rate Change 4.75000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 2,648 9119/2004 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 2,535 9/2/2004 3 No 1001SBA System Rate Change 4.50000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 2,462 8/19/2004 2 No 1001SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 Loan History Begin Date : 10114/2003 End Date : 2/5/2010 ?istomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 ID : GP6650424002 Page 8 of 13 711912004 Principal: 7/1512004 Principal: 711512004 Principal: 711/2004 Fixed Base: Spread: 6/18/2004 Principal: 5/19/2004 • Principal: 611912004 Principal: 4/7/2004 Principal: 318/2004 Principal: 2119/2004 Principal: 211912004 Principal: 2 I9/2004 • Principal: 2,331 7/27/2004 2 No 1001 SBA System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 2,329 7/27/2004 1 No 1001SBA RMiller Loan Payment Reversal ($408.84) Interest: ($195.16) Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: ($604.00) 2,276 7/15/2004 1 No 1001SBA Willer Loan Payment $408.84 Interest $195.16 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 2,211 7/6/2004 3 No 1001 SBA System Rate Change 4.25000 Rate Code: 2 Accrual Basis: Principal Balance Day Code: 2,104 6/18/2004 1 No 1001 Witter Loan Payment $388.87 Interest $215.13 Late Fee: $30.20 Escrow: $0.00 Penalty: $0.00 Total: $634.20 1,959 5/19/2004 1 No 1001 RMiller Loan Payment $300.39 interest: $303.61 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 1,956 5/19/2004 2 No 1001 System Late Payment Charge $0.00 Late Fee: $30.20 Penalty: $0.00 Escrow: $0.00 1,780 4/712004 1 No 1001 Willer Loan Payment $384.92 Interest $219.08 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 1,653 318/2004 1 No 1001 Willer Loan Payment $470.93 Interest: $133.07 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 1,556 2120/2004 2 No 1001 Willer Loan Draw Reversal $0.00 Late Fee: ($30.20) Penalty: $0.00 Escrow; $0.00 1,554 2120/2004 1 No 1001 Miller Loan Payment $298.55 Interest: $305.45 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 1,549 2119/2004 2 No 1001 System Late Payment Charge $0.00 Late Fee: $30.20 Penalty; $0.00 Escrow: $0.00 Friday, February 05, 2010 2:33:22PM Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM iistomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 in ID : GP6650424002 Page 9 of 13 11912004 1,356 1/9/2004 1 No 1001 Willer Loan Payment Principal: $326.03 Interest: $277.97 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 121312003 1,185 12/3/2003 1 No 1001 Miller Loan Payment Principal: $391.54 Interest $212.46 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 111512003 1,061 11/5/2003 1 No 1001 RMiller Loan Payment Principal: $435.23 Interest $168.77 Late Fee: $0.00 Escrow: $0.00 Penalty: $0.00 Total: $604.00 1011412003 1,001 10/23/2003 3 No 1001 RMiller New Loan RC Fixed Base: 4.00000 Rate Code: 2 Accrual Basis: Principal Balance Spread: 3.00000 Day Code: Actual/365 1011412003 1,000 10/23/2003 2 No 1001 Willer New Loan Draw Principal: $40,000.00 Late Fee: $0.00 Penalty: $0.00 Escrow: $0.00 1 0 I is Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM ,dm'ustomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 " oan ID : GP6650424002 Page 10 of 13 Loan Balance by Effective Date and History ID Effective Date History ID Principal Balance Accruing Balance 10/14/2003 1,000 $40,000.00 $40,000.00 11 /5/2003 1,061 $39,564.77 $39,564.77 12/3/2003 1,185 $39,173.23 $39,173.23 1/9/2004 1,356 $38,847.20 $38,847.20 2/1912004 1,549 $38,847.20 $38,847.20 2119/2004 1,554 $38,548.65 $38,548.65 2/19/2004 1,556 $38,548.65 $38,548.65 3/8/2004 1,653 $38,077.72 $38,077.72 4/7/2004 1,780 $37,692.80 $37,692.80 5/19/2004 1,956 $37,692.80 $37,692.80 5119/2004 1,959 $37,392.41 $37,392.41 6/18/2004 2,104 $37,003.54 $37,003.54 7/15/2004 2,276 $36,594.70 $36,594.70 7/15/2004 2,329 $37,003.54 $37,003.54 7/19/2004 2,331 $37,003.54 $37,003.54 8/19/2004 2,462 $37,003.54 $37,003.54 9/19/2004 2,648 $37,003.54 $37,003.54 10/19/2004 2,856 $37,003.54 $37,003.54 11/1912004 3,020 $37,003.54 $37,003.54 12/1912004 3,236 $37,003.54 $37,003.54 • 1/19/2005 3,461 $37,003.54 $37,003.54 2/19/2005 3,645 $37,003.54 $37,003.54 3/19/2005 3,862 $37,003.54 $37,003.54 4/1912005 4,097 $37,003.54 $37,003.54 5/19/2005 4,354 $37,003.54 $37,003.54 6/19/2005 4,841 $37,003.54 $37,003.54 7/19/2005 5,152 $37,003.54 $37,003.54 8/19/2005 5,445 $37,003.54 $37,003.54 9/19/2005 5,742 $37,003.54 $37,003.54 10/22/2005 6,219 $37,003.54 $37,003.54 11/19/2005 6,484 $37,003.54 $37,003.54 12/19/2005 6,825 $37,003.54 $37,003.54 1/20/2006 7,260 $37,003.54 $37,003.54 1/24/2006 7,352 $33,883.71 $33,883.71 21912006 7,523 $33,235.84 $33,235.84 2/19/2006 7,586 $33,235.84 $33,235.84 3/9/2006 7,829 $32,701.58 $32,701.58 3/19/2006 7,883 $32,701.58 $32,701.58 4/6/2006 8,132 $32,163.68 $32,163.68 5/11/2006 8,448 $31,693.26 $31,693.26 6/14/2006 8,756 $31,215.31 $31,215.31 7/13/2006 9,032 $30,688.29 $30,688.29 8/9/2006 9,308 $30,089.24 $30,089.24 10/6/2006 9,825 $29,447.85 $29,447.85 11/8/2006 10,139 $28,943.73 $28,943.73 1/11/2007 10,851 $27,907.40 $27,907.40 217/2007 11,113 $27,344.60 $27 344 60 • 3/8/2007 11,426 $26,776.78 , . $26,776.78 5/9/2007 12,138 $26,072.22 $26,072.22 7/13/2007 12,915 $24,764.56 $24,764.56 817/2007 13,185 $24,191.92 $24,191.92 9/10/2007 13,581 $23,641.80 $23,641.80 Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 Zan ID: GP6650424002 Page I I of 13 10/5/2007 13,883 $23,020.91 $23,020.91 1119/2007 14,332 $22,454.15 $22,454.15 1/16/2008 15,136 $21,285.63 $21,285.63 2/8/2008 15,501 $20,615.20 $20,615.20 3/7/2008 15,908 $19,954.73 $19,954.73 4/1112008 16,348 $19,353.75 $19,353.75 5/9/2008 16,826 $18,687.46 $18,687.46 7114/2008 17,676 $18,170.07 $18,170.07 8/8/2008 18,172 $17,481.91 $17,481.91 9/5/2008 18,461 $16,013.76 $16,013.76 11/6/2008 19,349 $14,629.17 $14,629.17 1/1212009 20,477 $14,021.88 $14,021.88 2/612009 20,870 $13,283.34 $13,283.34 3/512009 21,336 $12,549.50 $12,549.50 4/6/2009 21,865 $11,823.00 $11,823.00 517/2009 22,329 $11,090.50 $11,090.50 6/9/2009 22,823 $9,562.65 $9,562.65 7/13/2009 23,323 $8,823.06 $8,823.06 9/11/2009 24,376 $8,118.45 $8,118.45 11112/2009 25,453 $6,616.83 $6,616.83 12/4/2009 25,901 $5,847.34 $5,847.34 Loan Rate by Effective Date and History ID Ank FffecWe Date 10/14/2003 7/1/2004 9/1/2004 10/1/2004 1211/2004 1/1/2005 3/1/2005 4/1/2005 5/1/2005 7/1/2005 9/1/2005 10/1/2005 12/1/2005 1/3/2006 2/1/2006 4/3/2006 6/1/2006 7/3/2006 10/1/2007 11/1/2007 1/2/2008 2/1/2008 4/1/2008 5/1/2008 11/1/2008 0 1/1/2009 History ID All In Rate Day Code Accrual Basis 1,001 7.00000 Actual/365 Principal Balance 2,211 7.25000 Actual/365 Principal Balance 2,535 7.50000 Actual/365 Principal Balance 2,761 7.75000 Actual/365 Principal Balance 3,125 8.00000 Actual/365 Principal Balance 3,365 8.25000 Actual/365 Principal Balance 3,744 8.50000 Actual/365 Principal Balance 3,956 8.75000 Actual/365 Principal Balance 4,244 9.00000 Actual/365 Principal Balance 4,988 9.25000 Actual/365 Principal Balance 5,612 9.50000 Actual/365 Principal Balance 5,911 9.75000 Actual/365 Principal Balance 6,665 10.00000 Actual/365 Principal Balance 7,119 10.25000 Actual/365 Principal Balance 7,424 10.50000 Actual/365 Principal Balance 8,054 10.75000 Actual/365 Principal Balance 8,639 11.00000 Actual/365 Principal Balance 8,922 11.25000 Actual/365 Principal Balance 13,782 10.75000 Actual/365 Principal Balance 14,190 10.50000 Actual/365 Principal Balance 14,974 10.25000 Actual/365 Principal Balance 15,348 9.00000 Actual/365 Principal Balance 16,222 8.25000 Actual/365 Principal Balance 16,704 8.00000 Actual/365 Principal Balance 19,297 7.00000 Actual/365 Principal Balance 20,828 6.25000 Actual/365 Principal Balance Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 ID : GP6650424002 Page 12 of 13 Loan Accruals by Effective Date From Date To Date Days Accruing Balance All In Rate Day Code Accrual 10/1412003 11/5/2003 22 $40,000.00 7.00000 Actual/365 $168,77 11/5/2003 12/3/2003 28 $39,564.77 7.00000 Actual/365 $212.46 1213/2003 1/9/2004 37 $39,173.23 7.00000 Actual/365 $277.97 1/9/2004 2/19/2004 41 $38,847.20 7.00000 Actual/365 $305.46 2/19/2004 3/8/2004 18 $38,548.65 7.00000 Actual/365 $133.07 3/812004 4!7/2004 30 $38,077.72 7.00000 Actual/365 $219.08 4/7/2004 5/19/2004 42 $37,692.80 7.00000 Actual/365 $303.61 5/1912004 6/18/2004 30 $37,392.41 7.00000 Actual/365 $215.13 6/18/2004 7/1/2004 13 $37,003.54 7.00000 Actual/365 $92.26 7/112004 7/15/2004 14 $37,003.54 7.25000 Actual/365 $102.90 7/1512004 9/112004 48 $37,003.54 7.25000 Actual/365 $352.80 911/2004 10/112004 30 $37,003.54 7.50000 Actual/365 $228.10 10/1/2004 12/1/2004 61 $37,003.54 7.75000 Actual/365 $479.26 12/1/2004 1/1/2005 31 $37,003.54 8.00000 Actual/365 $251.42 1/1/2005 3/1/2005 59 $37,003.54 8.25000 Actual/365 $493.47 3/1/2005 4/1/2005 31 $37,003.54 8.50000 ActuaV365 $267.13 4/1/2005 5/1/2005 30 $37,003.54 8.75000 Actual/365 $466,12 5/1/2005 • 7/1/2005 61 $37,003.54 9.00000 Actual/365 $656.57 7/1/2005 9/1/2005 62 $37,003.54 9.25000 Actual/365 $581.42 9/1/2005 10/1/2005 30 $37,003.54 9.50000 Actual/365 $288.93 10/1/2005 12/1/2005 61 $37,003.54 9.75000 Actual/365 $602.95 12/1/2005 1/3/2006 33 $37,003.54 10.00000 Actual/365 $334.55 113/2006 1/24/2006 21 $37,003.54 10.25000 Actual/365 $218.44 1/24/2006 2/1/2006 8 $33,883.71 10.25000 Actual/365 $76.12 2/1/2006 2/9/2006 8 $33,883.71 10.50000 Actual/365 $77.98 2/912006 3/9/2006 28 $33,235.84 10.50000 Actual/365 $267.71 3/9/2006 4/3/2006 25 $32,701.58 10.50000 Actual/365 $235.19 4/3/2006 4/6/2006 3 $32,701.58 10.75000 Actual/365 $28.89 4/6/2006 5/11/2006 35 $32,163.68 10.75000 Actual/365 $331.55 5/11/2006 6/1/2006 21 $31,693.26 10.75000 Actual/365 $196.02 6/1/2006 6/14/2006 13 $31,693.26 11.00000 Actual/365 $124.17 6/14/2006 7/3/2006 19 $31,215.31 11.00000 Actual/365 $178.74 7/3/2006 7/1312006 10 $31,215.31 11.25000 Actual/365 $96.21 7113/2006 8/9/2006 27 $30,688.29 11.25000 Actual/365 $255.39 8/9/2006 10/6/2006 58 $30,089.24 11.25000 Actual/365 $537.90 10/6/2006 11/8/2006 33 $29,447.85 11.25000 Actual/365 $299.52 11/8/2006 1/11/2007 64 $28,943.73 11.25000 Actual/365 $570.94 1/11/2007 2f7/2007 27 $27,907.40 11.25000 Actual/365 $232.24 2(7/2007 3/8/2007 29 $27,344.60 11.25000 Actual/365 $244.42 3/8/2007 5/912007 62 $26,776.78 11.25000 Actual/365 $511.69 0 5/9/2007 7/13/2007 65 $26,072.22 11.25000 Actual/365 7/13/2007 817/2007 25 $24,764.56 11.25000 Actual/365 $522.34 $190.82 8/7/2007 9/10/2007 34 $24,191.92 11.25000 Actual/365 $253.52 9/1012007 1011/2007 21 $23,641.80 11.25000 Actual/365 $153.02 Loan History Begin Date : 10/14/2003 Friday, February 05, 2010 End Date : 2/5/2010 2:33:22PM A&Lstomer : NICAERIC1001, Nicastro, D.C. Facility ID: GP6650424002 Loan ID : GP6650424002 Page 13 of 13 1011/2007 10/5/2007 4 $23,641.80 10.75000 Actual/365 $27.85 10/5/2007 11/1/2007 27 $23,020.91 10.75000 Actual/365 $183.06 11/1/2007 11/9/2007 8 $23,020.91 10.50000 Actual/365 $52.98 11/9/2007 1/2/2008 54 $22,454.15 10.50000 Actual/365 $348.81 1/2/2008 1116/2008 14 $22,454.15 10.25000 Actual/365 $88.26 1/16/2008 2/1/2008 16 $21,285.63 10.25000 Actual/365 $95.64 2/1/2008 2/8/2008 7 $21,285.63 9.00000 Actual/365 $36.74 2/812008 317/2008 28 $20,615.20 9.00000 Actual/365 $142.33 3/7/2008 4/1/2008 25 $19,954.73 9.00000 Actual/365 $123.01 4/1/2008 4/11/2008 10 $19,954.73 8.25000 Actual/365 $45.10 4/11/2008 5/1/2008 20 $19,353.75 6.25000 Actual/365 $87.49 5/1/2008 5/9/2008 8 $19,353.75 8.00000 Actual/365 $33.94 5/9/2008 7/14/2008 66 $18,687.46 8.00000 Actual/365 $270.33 7/14/2008 8/8/2008 25 $18,170.07 8.00000 Actual/365 $99.56 8/612008 9/5/2008 28 $17,481.91 8.00000 Actual/365 $107.29 915/2008 11/1/2008 57 $16,013.76 8.00000 Actual/365 $200.06 11/1/2008 11/6/2008 5 $16,013.76 7.00000 Actual/365 $15.36 1116/2008 1/112009 56 $14,629.17 7.00000 Actual/365 $157.11 1/1/2009 1/12/2009 11 $14,629.17 6.25000 Actual/365 $27.55 1112/2009 2/6/2009 25 $14,021.88 6.25000 Actual/365 $60.03 2/6/2009 3/5/2009 27 $13,283.34 6.25000 Actual/365 $61.41 • 3/5/2009 4/6/2009 32 $12,549.50 6.25000 Actual/365 $68.76 4/6/2009 5!7/2009 31 $11,823.00 6.25000 Actual/365 $62.76 5/7/2009 6/9/2009 33 $11,090.50 6.25000 Actual/365 $62.67 6/9/2009 7113/2009 34 $9,562.65 6.25000 Actual/365 $55.67 7/1312009 9/11/2009 60 $8,823.06 6.25000 Actual/365 $90.65 9/11/2009 11/12/2009 62 $8,118.45 6.25000 Actual/365 $86.19 11/12/2009 12/4/2009 22 $6,616.83 6.25000 Actual/365 $24.93 1214/2009 2/5/2010 63 $5,847.34 6.25000 Actual/365 $63.08 Totals 2,306 $15,114.67 0 . d • IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA HARRISBURG DIVISION IN RE: ERIC L. NICASTRO CHAPTER 13 1 ` 0 4 r O b T1 r DB/A NICASTRO CHIROPRACTIC V 7 Date Filed: . Case No. 1-04- Judge: Mary D. France Bankruptcy Judge CHAPTER 13 PLAN NOTICE The following Chapter 13 flan has been filed in the above captioned case. Any objection to the confirmation of the plan must be made in writing, served upon the undersigned-counsel for the Debtor, the Chapter 13 Trustee, Charles J. DeHart, III, PO Box 410 Hummelstown, PA 17036 and filed with the clerk of the Court, United States Bankruptcy Court within 120 days of the 341 Meeting of Creditors. We direct Creditors who may be affected by this plan to review carefully all provisions of this plan with special attention to paragraph 12 of this plan. LJ I• PROPERTIES AND FUTURE EARNINGS OR INCOME, SUBJECT TO THE SUPERVISION AND CONTROL OF THE TRUSTEE: 1. Payments to the Trustee: Debtor or the Debtor's Employer shall pay $-838.00 (dollars) per month for a period 60 months in accordance with the-creditor classifications set forth herein. Debtor further agrees to submit to the control, direction and supervision of the Trustee all future income during the pendancy of this case and agrees to pay sufficient funds to the trustee to fully complete, adequately fund and thereby make feasible this plan. 2. - Total of Payments (Base Plan): $50,280.00 3. Plan Length: This plan is estimated to be for 60 months - c.? 4. Tiered Payments: There will be no tiered payments unless listed hereunder as 7 follows: Year 1: ; Year 2: Year 3: ; Year 4: Year 5: T' 5. Commencement of Payments and Due Date: DEBTOR SHALL COMMENCE MAKING PtSc'YME TS UNDER THIS PLAN ON OCTOBER 20, 2004 AND HEREINAFTER ON THE 20TH DAY Ot+ EVVRY y MONTH UNTIL ALL PAYMENTS ARE COMPLETED UNDER THE PLAN. DEPOSITION EXHIBIT 1 Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc .7 11. TREATMENT AND CLASSIFICATION OF CLAIMS 5. Allowed claims against the debtor shall be paid in accordance with the Bankruptcy Code and this Plan. a. Secured creditors shall retain their mortgage, lien or security interest in collateral until the amount of their allowed secured claims have been fully paid or until the Debtor has been discharged. Upon payment of the amount allowed by the Court as a secured claim in the Plan, the secured creditors included in the Plan shall be deemed to have their full claims satisfied and shall terminate any mortgage, lien or security interest on the Debtor's property which was in existence at the time of filing of the Plan, or the Court may order termination of such mortgage, lien or security interest. • b. Creditors who have co-signers, co-makers, or guarantors ("Co-Obligors") from whom they are enjoined from collection under 11 U.S.C. § 1301, and which are separately classified and shall file their claims, including-all of the contractual interest which is due or will become due during the consummation of the Plan, and payment of the amount specified in the proof of claim to the creditor shall constitute full payment of the debt as to the Debtor and any Co-Obligor. c. All priority creditors under I 1 U.S.C. § 507 shall be paid in full in deferred cash payments. 6. From payments received under the plan,-the trustee shall make disbursements as follows in accordance with the following classifications: (a) Class I Administrative Ex enses Under 11 U.S.C. 507 a 1 to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: (i) Trustee's Compensation -Debtor(s) shall compensate trustee at a rate of 10% of disbursement amounts payable to: Charles J. DeHart, III, Esquire P.O. Box 410 Hummelstown, PA. 17036 (ii) Attorneys Fees - Pre-petition attorneys fees in the amount of $2,000.00 payable to: Lee E. Oesterling, Esquire 42 East Main Street Mechanicsburg, PA 17055 (iii) Filing Fees Unsaid at Date of Filing - None • Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc • (b) Class I Priority Claims Under 11 iI S C & 507 (i) Allowable Claims to Former S ouse Under I1 U.S.C. 507 a 7 to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or.Govemment Lienholder: Unsecured Priority Portion: S Basis of Claim: Interest Rate (if specified): (ii) Allowable Tax Claims Under i l U S C &507(a)(8)fA) (G) to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (c) Class II Secured Claims (i) Secured Debts which will not extend b and the 1en h of the Plan: • Creditor or Lienholder: SBA / AMERICHOICE FCU Amount of Allowed Secured Claim: $43,560.00 Monthly Payment : $726.00 Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: 6% Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any t(y be Paid through Plan: Interest Rate if Specified: (ii) Secured Debts which will extend be and the length of the Plan: Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: All Claims not otherwise specified shall be paid outside the plan as per prior business dealings. 0 3 Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc • (iii) Debts secured by liens subject to Cramdown or Lien Avoidance and treatment as Class III Unsecured Claims: Creditor or Lienholder: Nature of Lien: Amount of Claim: Secured Portion of Claim Secured Against: Unsecured Portion: (d) Class III Unsecured Claims 0) Special Nonpriority Unsecured: Debts which are co-signed or non dischargeable shall be paid in full (100%) either through the plan but not expensed or outside the plan as per prior business dealings: Name of Creditor: Nature of Claim: Amount of Claim: Monthly Payment: Interest Rate (If Specified): Payable through Plan or Outside Plan: is • (ii) General Nonpriority Unsecured - All other unsecured creditors shall receive payment on a pro rata level of distribution. (e) Class IV Post Petition Claims -The trustee shall have sole discretion to pay in full-according to the terms, and conditions that he deems to be advisable any post petition claims. Amounts necessary for the payment of post-petition claims shall be - allowed under Bankruptcy Code 1305. 7. The employer on whom the Court will be requested to order payment withheld from earnings is: -- 8. The following executory contracts are to be rejected: Other Party: DIVERSIFIED WESLEY DRIVE PARTNERSHIP Description of Contract or Lease: COMMERCIAL. LEASE Other Party: MARLIN LEASING Description of Contract or Lease: EQUIPMENT LEASF. 111. DISPOSITION AND TREATMENT OF PROPERTY OF THE ESTATE AND LIENS AGAINST ESTATE ASSETS 9. Property to be Surrendered to Secured Creditor: Name: Amount of Claim: 4 Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc 6 Description of Property: 10. The debtor does not own any non-exempt real or personal property. 11. The debtor intends to pay the non-exempt portion of the following property through the Chapter 13 Plan: NONE Description of Property: Non-Exempt Portion Less 10% Administrative Cost: 12. The following liens shall be avoided pursuant to l 1 U.S.C. §522(f), or other applicable sections of the Bankruptcy Code: (1) Liens subject to "Cramdown" in accordance with I 1 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are to be paid 100% through the Plan. Name of Creditor: Account# Amount of Claim: $ Description of Property: This plan upon confirmation, reduces the secured claim of the Creditor herein denoted under paragraph 12(i) as 1 from $ to $ . This includes principal and interest at 0%. All balances above $ will be treated as general unsecured claims. Where debtor has "crammed down" secured creditor's claim and has paid off the secured portion of the claim in this plan the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" returtrto debtors, the vehicle title marked "satisfied" upon receipt of $ IF YOU DISAGREE YOU MUST FILE AN OBJECTION TO THE PLAN WITHIN 120 DAYS OF THE 341 MEETING OF CREDITORS IN ACCORDANCE WITH BANKRUPTCY RULES. (ii) Liens subject to Cramdown in accordance with I 1 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are wholly unsecured and are to be avoided - and treated as Class lll General Unsecured Claims: Name of Creditor: Account# Amount of Claim: S Description of Property: This plan upon confirmation, reduces the secured claim of the Creditor herein denoted under paragraph 12(ii), to $0.00. This includes principal and interest at 0%. Said interest being against debtors real property and being 100% unsecured after accounting for the estates interest in such real property as offset by senior lienholders. Upon completion of this plan said lien shall terminate and the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" return to ^_ ^NL 4-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc bethlefs - Pykosh Law Group LLC PO BOX 368 ef amp Hill, PA 17001 BILL TO AMERICHOICE FEDERAL CREDIT UNION 2175 BUMBLE BEE HOLLOW ROAD MECHANICSBURG PA 17055 ATTN: Dallas Zulli DESCRIPTION 10/20/09 Two telephone conversations with Bankruptcy Court regarding Nicastro Bankruptcy; Telephone conversation with D Zulli; Draft correspondence to Bankruptcy Court; Draft correspondence to D Zulli TERMS 15 Days HOURS Invoice DATE INVOICE # 10/21/2009 5367 Total PFo assure proper credit please return this invoice with your payment. For your convenience we accept all major credit cards. For more information call us at 717-975-9446. AV MATTER Nicastro Bankruptcy AMOUNT 200.00 $200.00 DEP ON EXHIBIT nethlefs - Pykosh Law Group LLC PO BOX 368 4i amp Hill, PA 17001 BILL TO AMERICHOICE FEDERAL CREDIT UNION 3P' 2175 BUMBLE BEE HOLLOW ROAD MECHANICSBURG PA 17055 ATTN: Dallas Zulli Invoice DATE INVOICE # 11/9/2009 5426 TERMS I MATTER 15 Days I Nicastro Bankruptcy DESCRIPTION HOURS AMOUNT 11/9/09 Review e-mail correspondence from Dallas Zulli; 0.5 100.00 Telephone conversation with Cecilia of US Bankruptcy Court; Draft e-mail correspondence to D Zulli 11/9/09 Filed Entry of Appearance (SDisbrow) 0.6 24.00 Total $124.00 PFo assure proper credit please return this invoice with your payment. For your convenience we accept all major credit cards. For more information call us at 717-975-9446. Dethlefs - Pykosh Law Group LLC PO BOX 368 .Camp Hill, PA 17001 BILL TO AMERICHOICE FEDERAL CREDIT UNION 1P' 2175 BUMBLE BEE HOLLOW ROAD MECHANICSBURG PA 17055 ATTN: Dallas Zulli Invoice DATE INVOICE # 11/30/2009 5470 I TERMS I MATTER 15 Days Nicastro DESCRIPTION HOURS AMOUNT 11/19/09 Reviewed Order from Bankruptcy Court 0.1 20.00 11/20/09 Reviewed Order from Bankruptcy Court; E-mail to D 0.2 40.00 Zulli 11 /30/09 Reviewed Order from Bankruptcy Court 0.1 20.00 Total $80.00 PlAo assure proper credit please return this invoice with your payment. For your convenience we accept all major credit cards. For more information call us at 717-975-9446. Dethlefs - Pykosh Law Group LLC PO BOX 368 amp Hill, PA 17001 BILL TO ,, AMERICHOICE FEDERAL CREDIT UNION 2175 BUMBLE BEE HOLLOW ROAD MECHANICSBURG PA 17055 ATTN: Dallas Zulli A-0 Invoice DATE INVOICE # 12/14/2009 5533 TERMS MATTER 15 Days Nicastro DESCRIPTION HOURS AMOUNT 12/8/09 Draft correspondence to Nicastro and Atty Lee 0.3 60.00 Osterland 12/9/09 Telephone call to Eric Nicastro; E-mail to Dallas Zulli 1 0.3 60.00 12/10/09 Telephone conversation with Atty Osterland I 1 I 0.00 regarding bankruptcy matter (n/c) 12/11/09 Telephone conversation with Trustee's Office (Jim 0.5 100.00 Jones) regarding pursuing loan guarantors after diccharge; Researched Guarantor Liability post-discharge 12/14/09 Review Answer in Bankruptcy filing; E-mail to D I 0.31 60.00 Zulli; Telephone conversation with D Zulli Total $280.00 Ro assure proper credit please return this invoice with your payment. For your convenience we accept all major credit cards. For more information call us at 717-975-9446. Dethlefs - Pykosh Law Group LLC PO BOX 368 46 amp Hill, PA 17001 BILL TO Invoice DATE INVOICE # 5/28/2010 6031 AMERICHOICE FEDERAL CREDIT UNION ' 2175 BUMBLE BEE HOLLOW ROAD MECHANICSBURG PA 17055 ATTN: Dallas Zulli DESCRIPTION 5/24/10 - Review Bankruptcy Order (N/C) I TERMS I MATTER 15 Days HOURS Nicastro AMOUNT 0.1 0.6-0- Total $0.00 Wo assure proper credit please return this invoice with your payment. For your convenience we accept all major credit cards. For more information call us at 717-975-9446. ASTRO CHIROPRACTIC C KRUPTCY CHARGES M SAIDIS & SHUFF DATE INVOICE # 10/11/04 18836 10/31/04- 19566 11130/04 19762 4/19/05 22314 6/1/05 22971 7/6/05 23759 9/8/05 25011 11 /7/05 26475 2/9/06 28304 3/2/06 28577 OTAL • CHARGE $374.40 $1,001.20 $936.00 $546.00 $1,060.80 $1,314.00- $1,442.00 $490.00 $455.00 $28.00 $7,647.40 EXHIBIT DETHLEFS-PYKOSH LAW GROUP, LLC 509e 1 Darrell C. Dethlefs* Michagl J. Pykosh* 2132 Market Street O Counsel Bryan W. Shook Camp Hill, PA 17011 Robert J. DeSousa Me. Erb Phone: (717) 975-9446 Legal Staff He . Orisko W Toll Free: (800) 287- 1202 Sherry L. Deckman* Mar e TremmeI John R .Logan** Fax: (717) 975-2309 Danielle Winn Susan Disbrow Patrick lvkovich E-mail: ddethlef a aol.com Kathleen R. Nuspl Paul D. Daggs www.dedlaw.net Jacqueline Windus David C. Dagle *Licensed PA Title Agents Trudy A. Marietta Mintz*** "Admitted to the NJ Bar Charles Thomas ***Admitted to MD Bar February 9, 2010 Joseph B. Sobel Law Offices of Joseph B. Sobel Suite 202 Cranberry Court 212 North Third Street Harrisburg, PA 17101-1505 VIA Fax and Regular Mail RE: Eric L. Nicastro a/k/a Nicastro Chiropractic Health Center Bankruptcy Case: 1:04-bk-05727-MDF • Dear Attorney Sobel: Pursuant to our conversation of last week, enclosed please find the billing invoices for the firm of Saidis, Shuff, Flower & Lindsay. Please feel free to contact me. Very truly yours, Michael J. Pykosh MJP/drw Enclosure 40 EXHIBIT 0\ 104 N. George Street P.O. Box 368 • fork. PA 17401 Camp Hill, PA 17001-0368 408 W. Chestnut Street Lancaster, PA 17603 The Dethlefs-PAosh Law Ormin r r t, J JOIN E. SLIKE ROBERT C. SAIDIS GL•OFFREYS SNUFF JAMFSD. FLOWEK JR CARDL J. LINDSAY BRIAN' C. CAFFREY GEORGE F. DOUGLAS, In MATTHEW J. ESHELMANt THOMAS E. FLOWER LINDSAY GINGRICH MACLAY JACLYN SKTI-1 LAW OFFICES SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENN SYLVAN) A 17011 TELEPHONE (717) 737-3405 - FACSIMILE (717) 737-3407 EMAIL- attorneyOssfl-law-mm www.ssfl-law.com October 12, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Re: Bill for Services Rendered - Nicastro Chiropractic Health Center r: Dear Dallas: CARLISLE OFFICE 26 WM HIGH STREET CARLISLE PA 17013 TELEPHONE. (717)AV6222 FACSIMILE (717)243.6986 tlovd ul.rea crcfi4n• .Lrl:y RCpfeK0Y0M REPLYTO CAMP HILL Enclosed with this letter please find the above-referenced bill. Of course, please call if you have any questions. As always, we appreciate the opportunity to be of service to you and the Bank. Thank you. Very truly yours, SAIDIS, SHUFF, FLOWER & LINDSAY GSS/gmk Enclosure 0 • )OHN L• SLIKF ROBERT C. SAIDIS GFO"RF.Y S. SHUFF JAMES D. FLOWER, JR. CAROL). LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS DI MATTHEIY J. ESHELMAN4 TH0164AS E. FLOWER LINDSAY GINGRICH NIACLAY JACLYN M. SMITH SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 EMAIL: attomeyftsfl-law.com x'Vv".,.ssfl-1aw.COm October 11, 2004 AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 18836 CARLISLE OFFICE: 26 IVES] IIIGH51REE1 CARLISLE, PA 17013 TELEPHONE: (717) 243.67.?1 FAC%h[ILE; (717) 243-64,% t t&nrd Ccrtiliad Cnddnn' Right% RLpm-%m atiun REPLYTO CAMP HILL 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated November 21, 2003 $184.00 • Payments received since last invoice $184.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 08/02/2004 Messages from Zulli; call to Zulli. - 08/03/2004 Review file copies of loan documents; call to Zulli on default, set off and Chapter 13; message from Zulli. 08/04/2004 Messages from Zulli; call to Zulli on SBA contacts. 09/14/2004 Message from Zulli; call to Zulli; call to Oster]ing's voieemail. 09/1612004 Message from Zulli; call to Zulli; call to Osterling; call to Zulli's voicemail; message -- from Zulli: 09/23/2004 Messages from Zulli; call from Zulli; review file; call to Osterling's office and leave message. 09/28/2004 Message from Osterling; notes to file; message from Zulli; e-mail from Zulli; call to Zulli. TOTAL FEES $468.00 TIMEKEEPER RECAP • L-awy_er Hours Amount Shuff, Geoffrey S. 2.40 $468.00 I., 031727 Nieastro Chiropractic Health C • Billing Summan,- Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due Invoice# 18836 TOTAL FEES $468.00 {$93.60} $374.40 5374.40 ) Page 2 $468-00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys andstaffdo not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1I2% per month on unpaid balance after 30 days - 3, r -2, ? QI &d c, • T aSs.ac ;?? n LJ JOHN L SLIKF. ROBERT C. SAIDIS cr-OFFREYS. SHUFF JAMES D. FLOWEK JR. CAROL). LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS III MATTHEW). ESHELMAN4 THOMAS E. FLOWER LINDSAY GINGRICH MACLAY )AC:LYN M. SMITH SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 EMAIL: attomey@ssfl-law.com www.ssfl-law.com October 31, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 19566 CARLISLr•. OFFICE: 261tiES[ IIIGHS1REE1 CARLISLE, PA 17013 1 ELEPHONL: (717) 243.6222 FACSISIILE: (717) 243.6486 t•IkuW (erth:d Cw4aw Rq;hl.1:.•pnwntapnn REPLY TO CAMP HILL 031727 E1N: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated October 11, 2004 $374.40 Payments received since last invoice $374.40 Accounts receivable balance carried forward $0.00 PROFESSIONA L SERVICES 10/05/2004 Review Chapter 13 Petition and Plan; review file; call to Zulli's voicemail; call from Zulli; instructions to JAS on PACER search and copies; brief review of Schedules; instructions to GMK on copies for Zulli. 10/06/2004 Message from Zulli; review file; call to Zulli's voicemail; call from Zulli; meet with Zulli. 1-0/06/2004 Meet with Zulli. (NO CHARGE) - 10/06/2004 Instructions from GSS regarding file matters; review file; phone call with Oesterling; meet with Zulli; notes to file; prepare Praecipe To Enter Appearance; retrieve message from Oesterling; notes to file. 10/07/2004 Exchange messages with Tulli. (NO CHARGE) 10/12/2004 Phone call with Zulli; notes to file; review file; prepare litigation plan letter to Tulli. 10/21/2004 Receive and review time-stamped entry of appearance; copy Zulli. 10/22/2004 Exchange a-mails with Zulli. C TOTAL FEES $1,251.50 TIMEKEEPER RECAP 031727 • N icastro Chiropractic Health C Lawyer Shuff, Geoffrey S. Eshelman, Matthew J. Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due Invoice# 19566 Page 2 Hours Amount 2.20 $331.50 4.60 $920.00 TOTAL FEES S1,251.50 $1,251.50 ($250.30) $1,001.20 $1,Oil1. PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 Vrlo per month on unpaid balance after 30 days. • L4, o=a rs7 -- -- 0 SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET . CAMP HILL, PENNSYLVANIA 17011 JOHN F. SLIKE TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 ROBERT C. SAIDIS EMAIL: attorney@ssfl-law.com GEOFFREY S. SHUFF www.ssfl-law.com JAMES D. FLCAVER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS (II MATTHEW I. ESHELMAN* 'IlaOMAS E. FLOWER LINDSAY GINGRICH MACLAY JACLYN M. %111*H November 30, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 19762 CARLISLE OFFICE: 16 WMI HIGH S1 REEI CARLISLE, PA 17013 TELEPHONE- (717) 243-6222 FACSIMILE. (717) 243-64Eb t+lkwd Certilad CRdrlorn Right% Reprc.entalmn REPLY 'FO CAMP HILL 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated October 31, 2004 $1,001.20 Payments received since last invoice $1,001.20 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 11/17/2004 Phone call with Zuni; review file; check ECF; notes to file; prepare notes for Creditor's meeting. 11/18/2004 Travel to and att end Creditors meeting; notes to file; prepare letter to Tulli. 11/19/2004 Phone call with Zulli; revise letter to Zulli; prepare Motion for Stay Relief and _ Certificate of Concurrence. 11/23/2004 Revise Motion for Stay Relief; prepare letters. 11/2412004 Receive and review fax from Zulh; revise Proof of Claim. TOTAL FEES $1,170.00 TIMEKEEPER RECAP Lawyer Hours Amount Eshelman, Matthew J. 6.40 $1,170.00 • TOTAL FEES $1,170.00 031727 Nicastro Chiropractic Health C . Hipline Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due Invoice# 19762 Page 2 $1,170.00 ($234.00) $936.00 $936.00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to cant' out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. 0 SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET • CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 JOHN E. SLIKE EMAIL: attorneyftsfl-law.com ROBERT C. SAIDIS www.ssfl-law.com GEOFFREY S. 5HUFF JAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS III tJXI ' IEw).ESHELMAN* THOMAS E. FLOWER JACLYN Ni. SMITH April 19, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 22314 CARLISLE OFFICE ttiES'I HIGH 51'REL• I' CARLISLE. PA 17013 'I ELF.PHONE: (717) 243.6222 FACSIMILE: (717) 243-6186 4r9rnn1( CrImed ( reddan lLxh(c Rtpwwnt.Akxi REPLY TO CAMP II1LL 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated November 30, 2004 $936.00 Payments received since last invoice $936.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 12/09/2004 Receive and review Stay Relief Order; copy Zulli exchange a-mails with Zulli; notes to file. 01/11/2005 Exchange a-mails with Zulli. 01/27/2005 Phone call with Zulli; review file; check-PACER; check Ramapo; prepare fax to Zulli. 02/08/2005 Receive and review Notice. of Filing of Citibank Proof of Claim. 02/09/2005 Receive and review Notice of Hearing on Trustee's Objection to Plan. 02/14/2005 Revise Proof of Claim; prepare, review, and revise Exhibit to Claim. 02/16/2005 Review, revise, and electronically file Proof of Claim and Exhibit with Bankruptcy Court. Note: Court not currently accepting claims electronically notwithstanding what ECF website indicates; electronic entries to be corrected and claim filed manually and retroactively. 02/1712005 Phone call with Zulli; notes to file; revise letter to Zulli; prepare fax cover sheet; no charge regarding corrections to filing format of Proof of Claim. 02/18/2005 Receive and review Notice of ERl entry of appearance. (NO CHARGE) 02/22/2005 Receive and review time-stamped hard copy of Proof of Claim; copy Zulli. (NO CHARGE) • 02/23/2005 Receive and review Notice of Assignment of Claim. (NO CHARGE) 02/24/2005 Receive and review electronic notice of manual proof of claim filing. 031727 Nicastro Chiropractic Health C Invoice# 22314 02/28/2005 Receive and review time-stamped Proof of Claim; copy Zulli. • TOTAL FEES E 0 TIMEKEEPER RECAP Lawyer Eshelman, Matthew J. Bill ine Sumrn Hours 5.70 TOTAL FEES Page 2 5682.50 Amount. $682.50 $682.50 Total professional services $682.50 Professional courtesy discount ($136.50) Total of new charges for this invoice $546.00 Total balance now due 6.fl0 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. c v? 1.7 ?_3 SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 IOHN E. SLI:E EMAIL: attornev@Nsfl-law.com ROBERT C. SAMS W%A,W.ssfl-law.coln GEOFFREY 5 SHL:FF J Ah4ES D. FLOWER, )R. CAROL J- LINDSAY BRIAN C. CAFFREY CEORCF F: DOUGLAS ill i6txrrHEW J. ESHELM.LAN- THOMAS E. FLOWER )ACI YN MI. SMirN June 1, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 22971 CARLISLE OFFICE: 2b WEST HIGH Sl Rlil"1 CARIJ5LE. PA 1,013 1 LLEIII ION'E: (7171243-G^" FACSIMILE (7717) 243.64. ?Ikmrd C erblKd C wd,i,v, %CW kr n-mrabm REPLY TO CAMP HILL. 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated April 19, 2005 $546.00 Payments received since last invoice $546.00 Accounts receivable balance carved forward $0.00 PROFESSIONAL SERVICES 03/02/2005 Receive and review Notice of REI Clain. (NO CHARGE) 03/07/2005 Phone call with Zulli; notes to file; revise letter to Zulli; prepare, review and send fax to Zul1i. 03/16/2005 Receive and review Notice of Hearing on Trustee's Motion To Dismiss now set for May 12, 2005; staff instruction; notes to file. 03/17/2005 -Review and revise Objections to Plan. 03/18/2005 Phone call with Zulli; e-mail Zulli; phone call with Zulli; revise and electronically file Objections to Plan; receive and review confirmation notice. 03121/2005 Receive and review Notice of bearing on our Objection to Plan; copy Zulli. 03/22/2005 Receive and review request for proposed Order; prepare, review and file proposed Order, 03/23/2005 Phone call with Oesterling regarding intention of objection; phone call with Trustee's office regarding possibility of jointly administration objections; prepare letter to Zulli. 04/1412005 Receive and review e-mail from Zulli; review file; phone call with Oesterling's office; phone call with Trustee; e-mail Court regarding rescheduling April 19 Hearing. • 04/1812005 Prepare, review, revise and e-mail letter to Zulli. 04119/2005 Travel to and attend hearing regarding Objection; request continuance. (NO 031727 • Nicastro Chiropractic Health C Invoices 22971 Page 2 CHARGE) 04'19%2005 Receive and review Notice of rescheduled hearing; phone call to Oesterling. leave message, prepare, review. revise and e-mail Notice to Oesterling'With cover letter; copy Zulli and Cook at Trustee's office; phone call with Zulli. 04'20/2005 Phone call ,vith Oesterling; notes to file; e-mail status report to Zulli. TOTAL FEES $1,326.00 TIMEKEEPER RECAP Law +r Hours Amount Eshelman, Matthew J. 9.00 $1,326.00 TOTAL FEES $1,326.00 Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due $1,326.00 ($265.20) $1,060.80 ?1,060.80 r ??.-'off PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by- the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. A'i ?......... G'? • IOHN E. SLIKE ROBER T C. SAUDIS GEOFFREY S SHLIFF JAMES D. FLOWER, JR. CAROL 1. LINDSAY BRIAN C.CAFFREY GEORGE R DOUGLAS III NIA'i'1}iM J. ESHELMAN- THOMIAS E. FLOWER JACLYN \i. Ski17H SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 E-MAIL: attorneyCossfl-lawcom www.ssfl-taV1.com July 6, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 23759 CARLISLE OFFICE 2e %VFSr HIGH S'IRF.F U CARLISLE, RA 17013 1 ELEPI K1VE: (717124.4=1 FACSIMILE: (717) 2V-b486 r&lard ('erMiMd O dikit: Right% ReMi-matim REPLY TO CAMP HILL 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated June 1, 2005 $1,060.80 i P t d i c l t i i s rece ve s n e nvo aymen as ce _ $1,060.80 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 05/11/2005 Phone call with Oesterling; notes to file; prepare, review, revise and e-mail letter to Zulli. 05/24/2005 Receive and review e-mail from Zulli; phone call with Zulli; review file; travel to and attend hearing on Objections to Plan; discussion with Oesterling; prepare, review, and e-mail letter to Zulli. 05/25/2005 Receive and review Notice of Rescheduled Hearing from Court; copy Zulli. 05/26/2005 Review and revise letter to Oesterling; e-mail Zulli. 06/13/2005 Prepare, review, revise and send e-mail to Oesterling; copy to Zulli. 06/20/2005 Receive and review e-mail from Oesterling; copy Zulli; review file. 06/21/2005 Receive and review fax from Oesterling; fax Zulli with cover letter. 06/23/2005 Phone call with Oesterling; phone call to Zulli, left message; phone conference with Zulli and Needs; notes to file; phone call with Oesterling; prepare, review, revise and e-mail letter to Oesterling, copy Zulli; prepare Stipulation. 06/27/2005 Receive and review letter from Zulli; check Ramapo; check ECF; check updated Hearing list; prepare, review, revise and fax letter to ZuIli; receive and review letter from Zulli. 06/28/2005 06129/2005 Revise Stipulation; prepare letter to Zulli. Receive and review Order fro C t di m our regar ng deadline for filing Stipulation; copy Zulli. 031727 Nicastro Chiropractic Health C lnvoice4 23759 Page 2 • TOTAL FEES $1,642.50 TIMEKEEPER RECAP Law er Hours Amount Eshelman, Matthew J. 9.10 51,642.50 TOTAL FEES 51,642.50 Billine Surrnn Total professional services $1,642.50 Professional courtesy discount ($328.50) Total of new charges for this invoice $1,314.00 Total balance now due 1,314, , PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information kom you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal infomsation relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to cant' out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. • Interest at 1 1/2% per Month on unpaid balance after 30 days. ?f JUL L 12065 Auth. by Gil CodeWi":.:i 0 SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET • CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 JOHN E. SLIKE RODERI C. SAIDIS EMAIL: attorney@ssfl-law.com GEOFFREY S. SHUFF ~,v.ssft-law.com JAMES D. FLOWER, JR. CAROL J. LINDSAY 3RIA\: C. CAFFREY GEORGE F DOUGLAS III KINI-I HEW J. FSHF.LMAN' THOMAS E FLOWER MARYLOU MXTAS SU7.ANNEC. HIXENIBAUGH September 8, 2005 Dallas Zulli AmeriChoiee Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 25011 CARLISLE OFFICF- 26 (YESI HIGI I S I RGF.1 CARLISLE, PA 17013 I ELEPHO\f• (717) 243.6222 FACSIMILES (717) 243-b456 I'Wre. CcrwW ('ad,d,r: ti,?;bl•. IZ<Prty nlahvn REPLY TO CAMP HILL 031727 EIN:25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated July 6, 2005 $1,314.00 Payments received since last invoice $1,314.00 Accounts receivable balance carried forward $0.00 PROFESSION AL SERVICES - 07/06/2005 Re-transmit Stipulation by e-mail with cover letter to Zulli, Oesterling, and DeHart. - 07/07/2005 Exchange a-mails with Zulli. 07/19/2005 Exchange messages with Needs; review file; phone call to Oesterling, left message; phone call with DeHart's office. 07/26/2005 Phone call to Oesterling, left message; notes to file. 07/28/2005 Phone calls with Zulli; exchange a-mails with Zulli; exchange a-mails with Oesterling; copy Zulli; phone call with DeHart's office; prepare, review, revise and electronically file Praecipe To Relist for Hearing; review file; notes to file; prepare, review, revise and e-mail letter to Oesterling; copy Zulli. 07/29/2005 Receive and review fax from DeHart; e-mail Oesterling and Zulli; receive and review e-mail from Zulli; staff instruction regarding costs. 08/01/2005 Receive and review Notice of Relisted Hearing; e-mail Zulli. 08/01/2005 Billing review; staff instruction to GK and LM; instructions from GSS; e-mail Zulli. (NO CHARGE) 08/02/2005 Receive and review e-mail from Oesterling; copy Zulli; receive and review e-mail from Zulli. • 08/09/2005 Exchange a-mails with Zulli; review file; retrieve and review Wells Fargo Proof of Claim; copy Zulli. 08/15/2005 Phone call with Zulli at length; review file; check CM/ECF and Ramapo sites; notes 031727 0 • Nicastro Chiropractic Health C Invoice## 25011 Page 2 to file; receive and review e-mail from Zulli; phone call with Zulli; notes to file. 01/1712005 Exchange a-mails with Zulli; phone call with Zulli; notes to file. 08/18/2005 Exchange additional a-mails with Zulli; two phone calls with Zulli; review file; notes to file. 08/19/2005 Exchange multiple a-mails with Zulli regarding deadline to obtain SBA approval of Stipulation and discuss options to proceed if approval not forthcoming; review file; notes to file. 08/22/2005 Travel to and attend relisted hearing on objections to plan; preparation for hearing; notes to file; prepare, review, revise and e-mail letter to Zulli and Oesterling. 08124/2005 Receive and review e-mail from Oesterling; forward to Zulli. 08/25/2005 Receive and review fax from Zulli; exchange a-mails with Zulli; scan Stipulation into pdf format; prepare proposed Order in pdf and word formats; file Stipulation and proposed Order electronically; e-mail word formatted version of proposed order to Court; confirm successful filing and copy Zulli and Oesterling; exchange a-mails with Zulli. 08131/2005 Receive and review signed Order approving Stipulation; prepare, review and e-mail letter to Zulli and Oesterling. TIMEKEEPER RECAP Lawyer Eshelman, Matthew J. Billing Summary Total professional services Professional courtesy discount Totarof new charges for this invoice Total balance now due TOTAL FEES $1,802.50 Hours Amount 10.90 $1,802.50 TOTAL FEES $1,802.50 $1,802.50 - ($360,50) $1,442.00 _ ,442.00 ------------- - PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal infom•,ation from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest of 1 1/2% per month on unpaid balance after 30 days. 0 SEt L J JOHN E.SLIKE ROBERT C. SAIDIS GEOFFREY S. SHUFF JAMES D. FLOWER, )R. CAROL). LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS III trim-niEw ). ESHELM AN 4 THo61As E. FLOWER MARYLOU MATAS SUZANNEC. HIXENBAUGH SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3107 EMAIL: attorney@ssfl-law.com www.ssfl-law.com November 7, 2005 Dallas Zulli AmeriChoice Credit Union P.O- Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 26475 CARLISLE OFFICE: 26 %'VES1 HIGH SfIIF.E F CARLISLE, PA 17013 TE'LEPHONE: (717) 2431222 FACSIMILE: (717) 243.6466 *Omnl Certil,,d Cm%hu,r,' N:ghl. Kry+nrnlahrm REPLY To CAMP BILL 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated September 8, 2005 $1,442.00 Payments received since last invoice $1,442.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 09/16/2005 Receive and review e-mail from Zulli; review file; review billing; prepare, review and e-mail letter to Zulli. 10/0312005 Exchange a-mails with ZuIli; review-file; prepare, review, revise and mail Notice of Default. 10/04/2005 Receive and review materials from Oesterling in response to certification of default; forward to Zulli with cover letter, receive and review time-stamped certificate of default; phone call with Oesterling; check ECF. 10/05/2005 Receive and review e-mail from Oesterling; review file; prepare letter to Oesterling; prepare letter to Zulli and send draft of Oesterling correspondence to Zulli for review. 10/07/2005 Exchange a-mails with Nicastro. 10/10/2005 Receive and review e-mail from Oesterling; e-mail Zulli. 10/13/2005 Receive and review lengthy e-mail from Nicastro; forward to Zulli with cover letter; receive and review e-mail from Zulli. 10/17/2005 Phone call with Zulli; review file; notes to file; prepare, re view, revise and send letter to Oesterling. TOTAL FEES $612.50 ly '. 031727 Nicastro Chiropractic Health C • TIMEKEEPER RECAP Lawyer Eshelman, Matthew J. Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due ** Trust account remaining balance is $0.00 Invoice# 26475 Page 2 Hours Amount 3.50 $612.50 TOTAL FEES $612.50 $612.50 ($122.50) $490.00 490.00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1l2% per month on unpaid balance after 30 days • 0 dD 1 1y YJ.'./ k:)J/ er1C7b 14. 10 (1 / 44.30010 JH1L1J J-tur r r L.uYIL(N I "Ur- UL/ UJ • JOHN 1~ Sij)(E ROBERT C. smois GEOFFREYS.SRUFF JAMES D. FLOWER JR. CA ROL J. L(NOSAY BRM C. CAtTREY Gll'LTRGE F. DOUGLAS III MArmv I. TSFIEL MAN+ 1'l MAS E. FLOWER MARYLOU MATAS SUZANNE C. HIXF-NOALICK SAIDIS, SHUFF, FLOWER & LINDS A PROFESSIONAL CORPORATION 26 WEST HIt;H STREET CARLISLE, PELNN•3YLVANIA 17013 TELEPHONE: (717) 243-6222 FACSIMTI;,E: (717) 243-6486 EMAIL: attomeir@ssfl-law.com www.ssfl-law.com February 9, 2006 Dallas Zulli Our file# 922 AmcriChoiee Credit Union Invoice# 28304 P.O. Box 1429 MechanicsbLLrg, PA 17055 EiN: 25- RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated November 7, 2005 $490.00 Payments received since last invoice $490.00 Accounts receivable balance carried forward $0,00 DATE DES.CRIPTTON HOURS 11/09/2005 Receive and review e-mail from Zulli; staff 0.20 instruction. (NO CHARGE) 11/15/2005 Retrieve voicemail from Zulli; phone cx.ll with Zulli; 1.30 phone call with Trustee's office; review file; prepare Amended Proof of Claim. I 1 /29/2005 Receive and review e-mail from Zulli: staff 0.20 instruction to JAS. (NO CHARGE) 12/01/2005 Phone call with Zul li. (NO CHARGE) 0.20 12/15/2005 Phone call with Zulli and Needs; phone call with 0.40 Tmstee; fax Trustee; phone call with Zulli. 12/16/2005 E-mail Zulli. 0.20 12/28/2005 Review file, No charge. 0.40 01/05/2006 Telephone conferences with bankruptcy trustee 0.20 office, client representative, 01/1212006 Telephone conference's, with trustee's office, client's 0.20 representative • 01/12/2006 Letter to Trustee re: change of attorney t No charge) 0.40 01/13/2006 Arrange to deliver check; letter to Dalla:> Zulli 0.20 01/17/2006 Telephone conference w/client; re: disbursement 0.20 CAMP HELL OFFLCE: 2509 MARKET STRFFT CAMP H(L.L, PA 17011 TELEPHONE: (717) 717 :MCIS FAC IMILE:171717v7-Mir tpmrd cerbited Cmlihki Riphk Fryu+nnrlyin•? REPLVTO CARLISLE 031727 1694606 OUNT LAWYER $0.00 MJE $227.50 WE $0.00 WE $0.00 MJE $70.00 MJE $35.00 MJE $0.00 BCC $35.00 BCC $35.00 BCC $0.00 BCC $35.00 BCC $35.00 BCC b:j/ 1531 'Lk7bb 1(4: 1U 031727 • fl/Lydb::)l15 Nicastro Chiropractic Health C 7f41111= ?WlUr r r LUWr-M Invoice4 2£+30! 01/19/2006 Review file. (No charge) 01/2012006 Review File. (No charge) 01/23/2006 Telephone conference w/Daltas Zulli; r-,:check whereabouts. (No charge) 01/23/2006 't'elephone conferences w/Dallas Zulli -,.nd others, re: lost check (No Charge) 01/24/2006 Review file. (No Charge) 01 /25/2006 Call Atty Ostcrling_ 01/27/2006 Telephone conference w/Dallas 7ulh, n:: status. 01/31/2006 Access Bankruptcy Ct site. TOTALS Billing Sununarv 0.80 0.50 0.20 0.30 0.80 0.20 0.30 0.80 8.00 Total professional services $700.00 Professional courtesy discount ($245.00) Total of new charges for this invoice $455.00 Total balance now due Sd55.{Ip * * Trust account remaining balance is $0.00 • PRIVACY POLICY: During this firms representation of you. wt may receive nonpublic, personal inl from sources about you. It is our policy and practice that our attorneys and staff do not at any time rei to our representation of you unless you consent after consulttalor, except for disclosures that are impti out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Interest at 1 1/2% per month on unpaid balance after 30 days rHuc wi w Page 2 $0.00 BCC $0.00 BCC $0.00 BCC, $0.00 BCC $0.00 BCC $35.00 BCC $52.50 BCC $140.00 BCC $700.00 cation from you or information relating ? authorized to carry fissional Conduct. • JOHN E. SLIKE ROBERT C. SAIDIS JAMES D. FLOWER, JR. CAROL). LINDSAY MICHAEL L. SOLOMON BRIAN C. CAFFREY GEORGE F. DOUGLAS 111 THOMAS E. FLOWER MARYLOU MAYAS SUZANNEC. HIXENBAUGH SAIDIS, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 26 WEST HIGH STREET CARLISLE, PENNSYLVANIA 1701.3 TELEPHONE: (717) 243-6222 FACSIMILE.: (717) 243-6436 EMAIL: attomey@sfl-law.com www.sfl-law.com March 2, 2006 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 CAMP HILL OFFICE. 210Q MARKYrSI RI:hI CAMP HILL, PA 17011 TFLEPHO\F: (7171737 3405 RkC51VII.E. (717)7.177-34(r, REPLY TO CARL.ISI F Our file# 922 Invoice# 28577 031727 EIN:25-1694606 RE: Nicastro Chiropractic Health Center • Balance forward as of invoice dated February 9, 2006 TOTALS 0.60 Payments received since last invoice $0.00 Accounts receivable balance carried forward $455.00 DATE DESCRIPTION HOURS 0210212006 Telephone conference w/D. Zuni, re: status. 0.20 02/03/2006 Correspondence to trustee. (No charge) 0.40 $455.00 AMOUNT LAWYER $35.00 BCC $0.00 BCC $35.00 0 031727 Nicastro Chiropractic Health C Invoice# 28577 Page 2 • Billing 5umm Total professional services $35.00 Professional courtesy discount ($7.00) Total of new charges for this invoice $28.00 Plus net balance forward $455.00 Total balance now due $483.00 ** Trust account remaining balance is $0.00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 11/2% per month on unpaid balance after 30 days. • C- J 2114LI 0 Md FEDERAL CREDIT UNION Building Relation-ships For Life • Monday, August 23, 2004 Eric Nicastro Nicastro Chiropractic Health Center 1010 Wesley Drive Mechanicsburg, PA 17050 Dear Eric Nicasim: As of 8/24/2004 the payoff amount for loan GP6650424002 is as follows: Principal 37,003.54 Interest 489.16 Late Fee 60.40 Penalty Amount 0.00 Other Fees 0.00 Total Due $37,553.10 Daily Accrual $7.35 Should you have any questions or concerns please contact me at (717) 591-1266. Sincerely, DEPOSITION EXhIBIT 7 i Vt? -3-C? -a llLz Dallas Zulli Business Lending Officer Main Office: 2175 Bumble Bee Hollow Road • Mechanicsburg, PA 17055 • Phone: (717) 697-3474 • Fax: (717) 697-3713 Website: www.americhoice.org 72 ENDER ' F Claim 7-1 Part 2 Filed 132L I&A ran , e..r......m." ,-, CR?rUNroNs :0?) Weal Group. Rochester, NY United States Bankruptcy Court MXDDLE DistrlCt of PENNSyLVANSA t of Debtor (ifmdtvwual, enter Lost, First, Middle): ` -• Name of Joint Debtor (spouse)(Lasi, First, Middle): CASTRO, ERIC L. All Other Names Names maiden, and by the Debtor In the last 6 years All Other Names used by the Joint Debtor in the last 6 years pnNude nd trade names): Aka MXC]ftSTRO CJVXJt iPRACTIC m AZ = CSNT,ER (include married, maiden, and trade names): Soc. Sec./Tax I.D. No. (If more than one, state sip: ***-**-2078 -street Address of Debtor (No. & street, City, Stated Zip Coda): ass aRAVrzy CR MW C1731111WRrAND PA 17070 Sec./Tax I.D. No. (If more than one, s1a1e sip: Street Address of Joint Debtor (No. a Street, Crty, state & zip Code): County of Residence or of the Principal Place of Business: yMK Mailing Address of Debtor (0 afferent rrem street address): SAME Location of Principal Assets of Business Debtor (b diReml wan strsial. address above): JOT APPZ XCAELE DEPOSITION EXHIBIT 1 - Verve (Check any applicable box) ® Debtor has been domiciled or has had a residence, principal place of business, or principal assets in this District for 160 days immediately preceding the date of this petition or for a longer part of such 180 days than In any other District. ? There Is a bankruptcy case concerning debtor's affiliate, general partner, or partnership pendinc to this Disfrtrf Type of Debtor (Check all boxes that apply) ® Individual(s) ? Railroad ? Corporation ? Stockbroker ? Partnership ? Commodity Broker ? Other ? Clearing Bank Nature of Debts (Check one box) ® Consumer/Non-Business ? Business Chapter 11 Small Business (Check all boxes that apply) ? Debtor is a small business as defined in 11 U.S.C. § 101 ? Debtor is and elects to be considered a small business under 11 U.S.C. § 1121(a) (Optional) Statistical/Administrative Information (Estimates only) County of Residence or of the Principal Place of Business: Mailing Address of Joint Debtor pf darer, 1 han,west address): Chapter or Section of Bankruptcy Code Under Which the Petition Is Filed (Check one box) ? Chapter 7 ? Chapter 11 ® Chapter 13 ? Chapter 9 ? Chapter 12 ? Sec. 304 - Case ancillary to foreign proceeding LL Filing Fee (Check one box) ® Full Filing Fee attached ? Filing Fee to be paid In Installments (Applicable to individuals only) Must attach signed application for the court's consideration certifying that the debtor is unable to pay fee except in installments. Rule 1006(b). See Official Form No. 3. ? Debtor estimates that funds will be available for distribution to unsecured creditors, ® Debtor estimates that, after any exempt property is excluded and administrative expenses paid, there MI be no funds available for distribution to unsecured creditors. Estimated Number of Creditors 1.1s 10-49 50-99 100.199 200499 1000-0ver ? ® ? ? ? ? Estimated Ass t e s $010 550.001 to $50,000 sloo,oo0 3100,001 10 $500 000 3500.001 to $1,000,001 to $10,000,00110 $50,000,001 10 More than ® ? . ? Si mWlan ? $10 mum $50 million $100 million $100 miition ? ? ? ? Estimated Debts $010 $50,001 to 000 $100 000 V 1 $100,001 to 5500.001 i0 $1,00D,001 to $10.000,001 to $50 000 00110 , E1 3 ? 3500,000 ® sl million $10 m1Won , , Sw rnWbn $100 mlbon More dwt 31oo n-illon ? ? ? ? ? THIS SPACE IS FOR COURT USE ONLY Case 1:04-bk-05727-MDF Doc 1 Filed 09/21/04 Entered 09/22/0411:57:11 Desc West ('roup, Rochester, NY 1 CwTR0, ERIC L. Debtor Case No. SCHEDULE D-CREDITORS HOLDING SECURED CLAIMS (if known) State the name, mailing address, including zip code, and account number, if any, of all entities holding claims secured b date of filing of the petition. List creditors holding all types of secured interests such as judgment liens, garnishments, statutory liens, mortgages deeds trust, and other security interests. List creditors in alphabetical order to the extent practicable. If all secured creditors will not ft on this eater as of the continuation sheet provided. of page, use the If any entity other than a spouse in a joint case may be jointly liable on a claim, place an "X" in the column marked "Codebtor," Include the entity on the appropriate schedule of creditors and complete Schedule H - Codebtors. If a joint petition Is filed, state whether husband, wife, both of them, or the marital community may be liable on each claim by placing an "H," "W,'. "J " or "C" in the column labeled "Husband, Wife, Joint, or Community." ty If the claim is contingent, place an "X" in the column labeled "Contingent." If the claim is unliquidated, place an "X" in the column labeled "Unliquidated." if the claim is disputed, place an "X" in the column labeled "Disputed." (You may need to place an "X" in more than one of these three columns.) Report the total of all claims listed on this schedule In the box labeled "Total" on the Iast sheet ofthe completed schedules. Report this total also on the Summary of Schedules. ? Check this box if debtor has no creditors holding secured claims to report on this Schedule 0. Creditor's Name and Mailing Address c Date Claim was Incurred C t ?. so2o3-32 2003 for #? : 1 Purch BPOIITINa aRT DRrt+E ? UffXC8s01RQ PA 17050-239? G "930424002 Including Zip Code d Nature of Lien, and Description and ° Market Value of Property Subject to Lien ? H-Husband W-Wife J--Joint r -Communi tor 4 : 2 iQ am AM X=0W ROAD WMM& JPA 17035 Account No: R?prelpe?ttnp: Aittlt tzeXorCir FCU NO aae Xone}, 8ecurlty 003 J1E$p I+ISERTY Value: $ 16, 275. 00 8-a4 0/ 'Statutes?. Lien Value: $ 0.00 O3OPPJMY a. 8hWT, j1B0VXJtr 2309 maRXXT g=&jV2, CAMP JFXZZ PA 17011 Value: C U D ° n I Amount of Claim i i v Without I, u e Deducting Value a ° of Collateral ° e d n t t 18,000.00 Value: No cononuillop.deft titlilClted . Subtotal; 55,553.10 (Total or thla pace, (Use "1y on last papa. Rep W Iota) also on &?mmuy S092 , 55, 553.10 ilk-05727-MDF Doc 1 Filed 09/21/04 Entered 09/22/04 11:57:11 ¦ ¦ . R Unsecured Portion, If any Desc IN THE UNITED STATES BANKRUPTCY COURT i FOR THE MIDDLE DISTRICT OF PENNSYLVANIA HARRISBURG DIVISION IN RE: ERIC L. NICASTRO CHAPTER 13 1 -04-06727 DB/A NICASTRO CHIROPRACTIC Date Filed: Case No. 1-04- Judge: Mary D. France Bankruptcy Judge CHAPTER 13 PLAN NOTICE • The following Chapter 13 Plan has been filed in the above captioned case„ Any objection to the confirmation of the plan mast be made in wrkW& for the Debtor, the Chapter 13 Trustee, served upon the undersigned cowl Charles L DeHart, III, PO Box 410 Hummelstown, PA 17036 and filed with the clerk of the Court, United States Bankruptcy Court within 120 days of the 341 Meeting of Creditors. We direct Creditors who may be affected by this plan to review carefully all provisions of this plan with special attention to paragraph 12 of this plan. I. PROPERTIES AND FUTURE EARNINGS OR INCOME SUBJECT TO THE SUPERVISION AND CONTROL OF THE TRUSTEE: 1. Pavments to the Trustee: Debtor or the Debtor's Employer shall pay $838.00 (dollars) per month for a period 60 months in accordance with the creditor classifications set forth herein. Debtor further agrees to submit to the control, direction and supervision of the Trustee all future income during the pendancy of this case and agrees to pay sufficient funds to the trustee to fully complete, adequately fund and thereby make feasible this plan. 2. Total of Pavments (Base Plank: $50,280.00 5. Commencement of Payments and Due Date: DEBTOR SHALL COMMENCE MAKIN G P??'MBi?FTS UNDER THIS PLAN ON OCTOBER 20, 2004 AND HEREINAFTER ON THE 20TH DAY ? EV?Ry MONTH UNTIL ALL PAYMENTS ARE COMPLETED UNDER THE PLAN. 3. Plan Len__g_th: This plan is estimated to be for 60 months 4. Tiered Pa?+ments: There will be no tiered payments unless listed hereunder as follows: Year 1: ; Year 2: ; Year 3: ; Year 4: Year 5: • L f? r.1) {J7 N) -n •r r- 'r7l DEPOSITION EXHIBIT - 1 i Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc s II. TREATMENT AND CLASSIFICATION OF CLAIMS 5. Allowed claims against the debtor shall be paid in accordance with the Bankruptcy Code and this Plan. a. Secured creditors shall retain their mortgage, lien or security interest in collateral until the amount of their allowed secured claims have been fully paid or until the Debtor has been discharged. Upon payment of the amount allowed by the Court as a secured claim in the Plan, the secured creditors included in the Plan shall be deemed to have their full claims satisfied and shall terminate any mortgage, lien or security interest on the Debtor's property which was in existence at the time of filing of the Plan, or the Court may order termination of such mortgage, lien or security interest, b. Creditors who have co-signers, co-makers, or guarantors ("Co-Obligors') from whom they are enjomed from collection under 11 U.S.C. § 1301, and which are separately classified and shall file their claims, including all of the contractual interest which is due or will become due during the consummation of the Plan, and payment of the amount specified in the proof of claim to the creditor shall constitute full payment of the debt as to the Debtor and any Co-Obligor. c. All priority creditors under 11 U.S.C. § 507 shall be paid in full in deferred cash payments. 6. From payments received under the plan, the trustee shall make disbursements as • follows in accordance with the following classifications: (a) Class I Adudnistrati e E eases Under 11 U.S.C. 507 a U I: to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: (i)o Trustee's Compensation Debtor(s) shall compensate trustee at a rate of 10% of disbursement amounts payable to: Charles J. DeHart,111, Esquire P.O. Box 410 Hummelstown, PA. 17036 (ii) Attorneys Fees - Pre-petition attorneys fees in the amount of $2,000.00 payable to: Lee E. Oesterling, Esquire 42 East Main Street Mechanicsburg, PA 17055 (iii) Filing Fees Unpaid at Date of Filing - None • Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc (b) Class I Priority Claims Under 11 U.S.C. 507 (i) Allowable Claims to Former Spouse Under 11 U S C S 507?a1f71 to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (ii) Allowable Tax Claims Under 11 S.C. 507 a 8 A G to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (c) Class [I Secured Claims (i) Secured Debts which will not ertead be and the le ifthn: e Creditor or Lienholder: SBA / AMERICHOI , FCU Amount of Allowed Secured Claim: $43,560.00 • Monthly Payment : $726.00 Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: 6% Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: (ii) Secured Debts which will extend b o the len h of the Plan: Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through plan: Interest Rate if Specified: All Claims not otherwise specified shall be paid outside the plan as per prior business dealings. 0 Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc • (iii) Debts secured by liens subiect to Cramdown or Lien Avoidance and treatment as Class III Unsecured Claims: Creditor or Lienholder: Nature of Lien: Amount of Claim: Secured Portion of Claim Secured Against: Unsecured Portion: (d) Class III Unsecured Claims 0) Special Nonnriority Unsecured. Debts which are co-signed or non dischargeable shall be paid in full (100%) either through the plan but not expensed or outside the plan as per prior business dealings: Name of Creditor: Nature of Claim: Amount of Claim: Monthly Payment: Interest Rate (If Specified): Payable through Plan or Outside Plan: (ii) General Nonuriority Unsecured - All other unsecured creditors shall receive payment on a pro rata level of distribution. is (e) Class IV Post Petition Claims - The trustee shall have sole discretion to pay in full according to the terms, and conditions that he deems to be advisable any post petition claims. Amounts necessary for the payment of post-petition claims shall be allowed under Bankruptcy Code 1305. 7. The employer on whom the Court will be requested to order payment withheld from earnings is: 8. The following executory contracts are to be rejected: Other Party: DIVERSIFIED WESLEY DRIVE PARTNERSHIP Description of Contract or Lease: COMMERCIAL LEASE Other Party: MARLIN LEASING Description of Contract or Lease: EQUIPMENT LEASE M. DISPOSITION AND TREATMENT OF PROPERTY OF THE ESTATE AND LIENS AGAINST ESTATE ASSETS 9. Property to be Surrendered to Secured Creditor: Name: Amount of Claim: • Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc Description of Property: • 10. The debtor does not own any non-exempt real or personal property. 11. The debtor intends to pay the non-exempt portion of the following property through the Chapter 13 Plan: NONE Description of Property: Non-Exempt Portion Less 10% Administrative Cost: 12. The following liens shall be avoided pursuant to 11 U.S.C. §522(f), or other applicable sections of the Bankruptcy Code: (i) Liens subject to "Cramdown" in accordance with 11 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are to be paid 100% through the Plan. Name of Creditor: Account# Amount of Claim: $ Description of Property: This plan upon confirmation, reduces the secured claim of the Creditor herein denoted under paragraph 12(i) as 1 from $ to $ . This includes principal and interest at 0%. All balances above $ will be treated as general unsecured claims. Where debtor has "crammed down" secured creditor's claim and has paid off the secured • portion of the claim in this plan the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" return to debtors, the vehicle title marked "satisfied" upon receipt of $ . IF YOU DISAGREE YOU MUST FILE AN OBJECTION TO THE PLAN WITHIN 120 DAYS OF THE 341 MEETING OF CREDITORS IN ACCORDANCE WITH BANKRUPTCY RULES. (ii) Liens subject to Cramdown in accordance with 11 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are wholly unsecured and are to be avoided and treated as Class III General Unsecured Claims: Name of Creditor: Account# Amount of Claim: $ Description of Property: This plan upon confirmation, reduces the secured claim of the Creditor herein denoted under paragraph 12(ii), to $0.00. This includes principal and interest at 0%. Said interest being against debtors real property and being 100% unsecured after accounting for the estates interest in such real property as offset by senior lienholders. Upon completion of this plan said lien shalt terminate and the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" return to • Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/0412:04:03 Desc debtors, the mortgage, marked as "satisfied" upon completion of this plan. IF YOU . DISAGREE YOU MUST FILE AN OBJECTION TO THE PLAN WITHIN 12o DAYS OF THE 341 MEETING OF CREDITORS IN ACCORDANCE WITH BANKRUPTCY RULES. 13. Lien Avoidance - Debtor elccts to avoid the fixing of liens pursuant to 11 U..C. 522 (b) of the Bankruptcy Code on the f S ollowing: (i) No--n- Purchs Debtor's Trade : Name of Creditor: Account Number: Amount of Claim: (ii) Judgment Liens to be avoided our?n?t to l 1 U S C 522tfl Caption of Case: Docket # Location of Court: 14. CED&or CWms -T11ere are no known co-debtor claims that need to be provided for under this plan beyond the debtors listed herein. • IV. DEBTORS REPRESENTATIONS AND OTHER IONS TO THE ADMINISTRATION OF DEBTORS PLAN APPLICABLE 15. Adequate Assurance -The payments proposed in this plan shall constitute adequate assurance of security. 16. Revestment of Property - Property of the estate shall vest in the Debtor upon completion of the plan. After confirmation of the plan the Chapter 13 Trustee shall have no further authority or fiduciary duty regarding use, sale or refinance of property of the estate, except to respond to any proposed use, sale or refinance as imposed by Chapter 13 General Order of this Court. 17. Co arcs n w th Cha er 7 - The value as of the effective date of the Plan of property to be distributed under the Plan on account of each allowed unsecured claim is not less than the amount that would be paid on such claim if the Estate of the Debtor were liquidated under Bankruptcy Code Chapter 7 on such date, 18. Goo Faith - Debtor represents that they have submitted this plan in good faith as required under state and federal law. • Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc • 19. Automatic Stav and Relief from Sta the earlier of the case being dismissed, discharged he automatic stay shall remain effective until Additonally, Secured and Unsecured Creditors are prohibited from collecting attorney fees and costs when filing Motion for Relief From Automatic Stay 20. Definition of Debtor - As used herein the tenn "Debtor" shall include both debtors in joint case. a Prepared • Lee E. Oester i , Supreme Court ID# 71320 42 East Main Street Mechanicsburg, PA. 17055 (717) 790-5400 Attorney for Debtor(s) 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22104 12:04:03 Desc FORM 910 Official Form 10 04/04 UNITED STATES BANKRUPTCY COURT Middle DISTRICT OF Pennsylvat» a . Name of Debtor N an' I can mm mm? :04-bk-05727-MDF NOTE: This tbrm should not be used to make a claim for an administrative expense $rising Aft the canrnencement of the case. A "request' for payment of an administrati ve expense may be f iled pursuant to 11 U.S.C. § 503. Name of Creditor (The person or other entity to whom the debtor owes money or property): Check box if you are aware that anyone else has filed a proof of Choice Federal Credit Union claim relating to your claim. Attach copy of statement giving Na Me and address where notices should be sent: particulars. r ; tthew I Eshelman, Esquire Check box if you have never received any notion from the Shul% Flower & Lindsay, P.C. bt +l Y court in this case. gt PA 17011 Check box if the address differs Telephone number 1 737-3405 from the address on the envelope sent to you by the court • • EXHIBIT ..... _..?..._._ ureplaces CAMC1001 SBA GP 665 042 40 02 HBG if this claim ? a previously filed claim, dated: 1. Basis for Claim ? Goods sold ? Goods s performed ? Retiree benefits as defined in i 1 U.S.C. 111 14(a) ® Moncy loaned 13 we salarimi, and compensation (611 out below) Last tar digits of SS i!- ? rPersonal einjury/wrongful l death Unpaid compensation for services performed 11 Oar from to (datc) (data) -20-2004 4. Total Amount of Chim at Time Caw Filed: 5 .79 If all or part of your claim is secured or entitled to priority, also (stowed) (priority) (T?) complete Item 5 or 7 below . ® Check this box if claim includes interest or other charges in addition to the principal amount of the claim. Attach itemized statement of all interest or additional charges. S. Secured Claim. ® Check this box if your claim is secured by collateral (including a 7. Unnevred Priority Claim. ?Check this box if ou have d right of setoff). y an unsecure priority claim Brief Description of Collateral: Amount mdthrd to priority S ? Real Estate Matpr Vehicle Specify the priority of the claim: ? wages salaries i i Oche ® rE ui , , or comm ss ons (up to $4,925),' earned within 90 d b f f ays e ore iling of the bankruptcy Petition or cessation of the debtor's business whichever is li Value of Collateral: Q td , ear er - I 1 U.S.C. § 507(x)(3). ? Contributions to an employee benefit plan -11 U.S.C. § 507(a)(4). Amount of anvarage and gdw charges at time one filed included in securd cl S a i if ? Up to 52,Mits toward purchase, lease, or renal of property or :;=Personal. amily, or household use - I I U S C a m, any: . . . § 507(a)(6). 6. Unsecured Nonprioity Claim 5 ? Aiitrmrry, maintartano, ors n owed to a spouse, former spouse, or child -1 I U.S.C. § 507(a?T) ® Check thi b if ? Taxes or Penalties owed to governmental units-11 U.S.C. § 507(a)(8). O s ox a) there is no collateral or lien securing your claim, or b) your clean excxeda the value of the Propmty wing it, or if c) none or only part of your claim is added to proruty (] ther - Specify applicable paragraph of 11 U.S.C. § 507(a)U. *Astowrtr are sslrject to adjurterent on 411107 and every 3 years thera0er Wilk res ect t , p o tees emne weed on or Oer the date of aOsrh nrt. 8. Credits: The amount of all payments on this claim has been credited and deducted for the purpose of makin this proof of claim. g THIS SPACE IS FOR COURT USE ONLY 9. Supporting Documents: Attach copies of supporting docments, such orders, invoices, itemized statements of running accounts t as promissory notes, purchase "L?URG l : ' , con racts, count jud gments, mortgages, security ' .• PA • ' agrarnertta, and evidence of perfection of lien. DO NOT SEND ORIGINAL DOCUML•M If the documents not available, explain. If the doomtenis are voluminous, attach a summary. . are i 10. Da"ttmped Copy To PORIV . nt of the filing of your claim, enclose a Stamped self- L ° j aadramed envelope and ft= , - Deb ro M% IT my 1110 . 70710ofmey, if my) 1 TOM Clerk, U.S. Bankruptcy Cou r J16/2005 Eshehnmr, Esquire j. MWW m r.. ,ra.- r . _ re-uyjw pr,areft clatar: Pine of up to 5500,000 or imprisonment for to 5 up Yenm or both. 18 U.S.C. §§ 132 and 3371. 1:04-bk-05727-MpF Claim 7-1 Filed 02/22/05 Desc Main DocuMgW Paw 1 w UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA • ATTACHMENTS/E EXIST FOR THIS XHIBITS CLAIM. THEY ARE AVAILABLE FOR REVIEW IN THE CLERK'S OFFICE OR YOU MAY REQUEST-A COPY FROM THE CLAIMANT. Clerk, U.S. Bankruptcy Court • 0 F Claim 7-1 Filed 02/22/05 Desc Main Document Page 2 1:04-bk-5727-MDF Debtor Eric L. Nicastro Detail to Proof of Claim of Creditor AmeriChoice F.C.U. DUE AS OF 09/20/04 SBA Loan $ 37,758.90 Vehicle Loan $ 18,146.78 Personal Visa $ 2,275.19 Business Visa $ 4,764.92 TOTAL DUE $ 62,945.79 It is anticipated that the claim will require amendment to reflect the post petition surrender of 140 i Debtor's vehicle, and the application of the proceeds of liquidation to the vehicle loan. Note also that Debtor's Plan currently proposes to pay only such portions of the obligation to AmeriChoice as are guaranteed by Salvatore and Livia Nicastro, and to pay the same as a secured tier claim. • 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02122105 W i @pAmedChokI Md FEDERAL CREDIT UNION Building Relationships For Life Monday, August 23, 2004 i Eric Nicastro i Nicastro Chiropractic Health Center 1010 Wesley Drive Mechanicsburg, PA 17050 Dear Eric Nicastro: As of 8/24/2004 the payoff amount for loan GP6650424002 is as follows: Principal 37,003.54 Interest 489.16 Late Fee 60.40 • Penalty Amount 0.00 Other Fees 0.00 Total Due $37,553.10 Daily Accrual $7.35 Should you have any questions or concerns please contact me at (717) 591-1266. Sincerely, Dallas Zulli Business Lending Officer • Main Office: 2175 Bumble Bee Hollow Road - Mechanicsburg, PA 17055 • Phone: (717) 697-3474 • Fax. (717) 697-3713 Website: www.americhoice.org 0 tt t Efl W4' _ ....iL1Nt Wr :0 -}1727-MDF Claim 7_1 Part 9 G:In.? nql?f?inc r. .?_ -- - -. 11/17/2004 WED 16:44 FAX 717 697 3713 AmeriChoice FCU 0002/005 MS2003S A0ICHOICE FEDERAL CREDIT UN 11/17/04 DALLAS ACCOUNT INQUIRY (Loan Information) 16:08:14 Acct/Suffix. 30202 / 32 Name.......... NICRSTRO, SRIC Goup __ ._... C Type__.. UV Description... 2003 JEEP LIBER USED VSBICLE alance, Teams, 6 Pa off Dates Codes and Status ;F ZT_ oan oun .. 90 99. 3 pene Payment req e o Balance....... 17, _ First Due... 2/15/04 Note Number....... 14125 Payment Amt... Next Due.... 9/15/04 Secure/Purpose.. UV / UT Cred Limit.... .00 Last Tran--- 8/20/04 Loan Officer......... B Partial Pmt... 27 Maturity.... 0/00/00 Comaker Y/N........... N Interest Rate....... 5.490 C1.osed..... . 0/00/00 1098 Reportable....... N Memo Interest__.. .00 Last Update. 0/00/00 Fixed/Variable........ F Term._. 66 To Payo 61 To be Paid.. 12/15/09 Interest Rebate?...... N Payoff Date....... 11/1? 04 Last Int Clc 8/20/04 Open/Closed End....... C Payoff Amnt... 10,146.78 Delinquent Notices.... 0 Interest Due... 239.52 Insurable? ............ Y Daily Interest._.. 2.691 Insurance Source..... 00 Late Chg Due.. 15.00 Disb/Cr Life.. / Late Charge Information Dl Day 30 60 90 120+ Year-to-Date Interest PP le 7...- o ... 'times.. 1-OU-0?- urre» . Fixed Amount..... 15.00 Currently dlq 63 days Previous... .00 Paid This Yr.. 15.00 Dlq amnt... 1038.15 0 -MDF Claim 7-1 Part 2 Filed 02/22/05 Desc 1x117/2004 WED 16:44 FAX MS2031S DALLAS Account: --- Name: NICK = 9202-9000-000 -6886 SSN Date of Last Use• 11 9004/005 11/17/04 16:08:44 • /12/04 Credit Limit •--• Cash Limit ......... ?- 2,880.00 2 880 00 _ Aeginn3n913 a ance.. 75 Available ...... , . 00 Purchases _ ..'• .... .00 .00 Authorizations . Cash "-••••-•••••• .00 Due Date ........... AutoPay a y 10/10/04 Payments .......... Credits ..... 30. ,•,•• .....fit.... Last Payment 0 64 ...... Finance Charge • ... 00 .00 .00 Min Payment Due..... . 2,275.00 Q0 Late ...,..•. ... Insur .00 Amount Delq ,_,__... 22.00 ... ance -..__ Current Bal 0 ....... 2,275.19 Blocks BT-5-c1F-Code . B Bill Code i 6r ' Other Dates ... Reclass Code . 5 5 i o e.... Stmt Group .. . SZI?....... ... Acct a?e-?__CCrrnn I,n,forAat,ign, Current. As. p?; 11 /12/04' Last Payment Last Purchase • ..' ... - L t C 10/01/04 2/01/04 , as ash Advance .. 8/05/01 zn,ter--rrod*z-z 1 - ous • • 717 607 3713 AmeriChoice FCU A ICHOICE FEDERAL CREDIT UNIQ Third Party Card - Cardholder data 7-1 Part 2 Filed 02122/05 Desc ; It/17/ZU04 WED 16:45 FAX 717 697 3713 AmeriChoice FCU 0005/005 ?MS2031S ' A I R DALLAS CHOICE FEDERA Third Party Card - L CREDIT UN C 11/17/04 ------ - - ardholder data 16:08:56 -- - Account : 3550 ? Name: NI - Car -Number: - 4202-9000-000 --0473 SSN: 131-60-20 8 ?----- PR NICA , STR Date of Last Use: 11/12/04 Cre it Limit .`:..... Cash Limit ~--10,00.00 10 000 00 Aeginning' 8a7ance.. !,764. Available ...... , . Op Purchases --------- .00 00 Authorizations ...,, , Cash _ ....... •00 Due Date ........... AutoPay 10/10/04 Payments Credits ..... C 52.37 ............ Last Payment Amt.... 52 37 ... . Finance Charge .... .00 .00 Min Payment Due. .... Amount Dent - 4,764.00 Late .............. Insurance ...... .00 -... 47.00 ... Current Bal ....... .00 4 764 9 Blocks oc Code ... B B111 Code s Groups Other Dabs , . . Reclass Code .. 5 5 8111 Code.- _. Stmt Group ••••••• •• - Acct Base Gr I»?orMat,ion, Current, As, ,Of,: 111 Last Paaymen Last Purchase •. - ... La t C ... 16/01/04 ./13/04 s ash Advance .. 5/30104 r= rocess xi = revioua 7-1 Part 2 Filed 02/22105 Desc JOHN E. SLIKE ROBERT C. SAIDIS GEOFFREY S. SHUFF JAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS, III MATTHEW J. ESHELMANt THOMAS E. FLOWER JACLYN SMITH Clerk of the Bankruptcy Court U.S. Bankruptcy Court Middle District of Pennsylvania P.O. Box 908 Harrisburg, PA 17108-0908 CARLISLE MCI- 26 W. HIGH STREET CARLISLE, PA 17013 PHONE. (717) 243.6222 FACSIMILE: (717) 243.6486 REPLY TO CAMP HILL February 18, 2005 RE: Eric L. Nicastro d/b/a Nicastro Chiropractic, Debtor Case No. 1:04-bk-05727-MDF, Chapter 13 Dear Sir or Madam: EMAIL: meshdmen@efi-lsw com Enclosed are the original and two (2) copies of the Proof of Claim of AmeriChoice • Federal Credit Union. Please treat this Proof of Claim as being filed on February 16, 2005, per discussion with Nadine Petrina, as it was "filed" electronically on the 16th. Kindly record the two copies and return them to the undersigned in the enclosed self-addressed, postage-prepaid envelope. If you have any questions, please contact me. Thank you for your assistance in this matter. Very truly yours, SAIDIS, SHUFF, FLOWER & LINDSAY C.a?et1/?6/z? Matthew Eshelman, Bsge MJE:se Enclosures cc: Dallas J. Zulli (w/enc.) Charles J. DeHart, III, Esquire (w/enc.) Lee Eric Oesterling, Esquire (w/enc.) t Board Cerhfied by the Amenaw Board of Certification in Creditors' Rights Representation • Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02122/05 Desc attachments Page 0 LAW OFFICES Q SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSDA ILE: (717) 737-MV www.sdl-Iaw.com • • IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO : DOCKET No.1:04-bk-05727-MDF D/B/A NICASTRO CHIROPRACTIC, Debtor CHAPTER 13 OBJECTIONS TO DEBTOR'S CHAPTER 13 PLAN FILED BY AMERICHOICE FEDERAL CREDIT UNION DEPOSITION EXHIBIT 2L11, ?? Q, AmeriChoice Federal Credit Union, a secured creditor of the Debtor in this case, objects to the confirmation of the Chapter 13 Plan proposed by the Debtor, and represents the following in support of the objections: FACTUAL BACKGROUND 1. This Court has jurisdiction in this matter under 28 U.S.C. § 157(b)(2)(L), 11 U.S.C. §§ 105, 1322, 1325, and Bankruptcy Rules 3015(f) and 9014. 2. AmeriChoice Federal Credit Union ("AmeriChoice") is a federal credit union organized and existing under the laws of the United States of America, with its principal office located at 20 Sporting Green Drive, Mechanicsburg, Pennsylvania 17050. 3. Eric L. Nicastro d/b/a Nicastro Chiropractic Health Center (the "Debtor") is an adult individual with an address at 288 Bradley Circle, New Cumberland, Pennsylvania 17070. 4. The Debtor filed his Petition for relief under Chapter 13 of the United States Bankruptcy Code on or about September 21, 2004. 5. AmeriChoice is the holder of a secured claim against the Debtor. AmeriChoice's claim is evidenced by the following: (A) a U.S. Small Business Administration Note dated Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 1 of 4 0 October 14, 2003, in the original principal amount of $40,000.00, known as SBA Loan No. GP 665 042 40 02 HBG (the "SBA Note"); (B) a vehicle loan dated January 22, 2004, in the original amount of $19,699.34, known as account number 30202/32 (the "Vehicle Loan"); (C) a personal Visa known as account number 4202-9000-0005-6886 (the "Personal Visa"); and (D) a business Visa known as account number 4202-9000-0007-0473 (the "Business Visa"). A copy of the SBA Note is attached hereto as Exhibit "A" and is incorporated herein by reference. 6. The SBA Note is secured by a Security Agreement dated October 14, 2003, (the "Security Agreement") pursuant to which Debtor granted to AmeriChoice a security interest in the Collateral described in Schedule A of the Security Agreement, which security interest was perfected by the filing of a UCC-1 Financing Statement on November 24, 2003 (the "UCC-1"). A copy of the Security Agreement and a copy of the UCC-1 are attached hereto as Exhibit "B" and are incorporated herein by reference. • 7. Debtor's parents, Salvatore Nicastro and Livia Nicastro, (the "Guarantors") guaranteed the SBA Note by executing and delivering to AmeriChoice an Unconditional Guarantee dated October 14, 2003 (the "Guarantee"). A copy of the Guarantee is attached hereto as Exhibit "C" and is incorporated herein by reference. 8. On February 16, 2005, AmeriChoice filed a Proof of Claim in the total amount of $62,945.79. This amount is comprised of the amounts due, as of the Date of Filing, under the SBA Note, the Vehicle Loan, the Personal Visa, and the Business Visa. Pursuant to an Order of this Court dated December 8, 2004, AmeriChoice was granted the right to sell the vehicle Debtor purchased with the proceeds of the Vehicle Loan, and the vehicle was subsequently sold for $15,000.00, leaving a deficiency balance of $3,251.10 still due to AmeriChoice under the C. Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 2 of 4 • Vehicle Loan. Post-petition costs, interest, and fees continue to accrue to the extent permitted under the Code. 9. Debtor is in default of his pre-petition obligations to make the payments due to AmeriChoice under the SBA Note, the Vehicle Loan, the Personal Visa, and the Business Visa. OBJECTIONS OF AMERICIiOICE TO PLAN AmeriChoice objects to confirmation of the Debtor's Plan for the following reasons: 1. The Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1325(a)(6). Specifically: (a) Debtor has no verifiable source of income. As such, Debtor is not verifiably able to afford the payments proposed under the Chapter 13 Plan; and/or (b) Debtor's expenses appear to be estimated based upon a projected budget established without a regular source of income. As such, Debtor is not verifiably • able to afford the payments proposed under the Chapter 13 Plan. 2. In the alternative, the Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1322(a)(1). Specifically: (a) Debtor has no verifiable source of income. As such, Debtor is not verifiably able to provide for the submission of all disposable future earnings of the Debtor to the supervision and control of the Trustee. (b) Debtor's expenses appear to be estimated based upon a projected budget established without a regular source of income. As such, Debtor is not verifiably able to provide for the submission of all disposable future earnings of the Debtor to the supervision and control of the Trustee. 3. Moreover, the Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1325(a)(3). Specifically: • Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 3 of 4 • (a) 1301(a)(1)(stay of action against codebtor) However, Debtor's proposed payment schedule under the Plan does not provide sufficient money to pay the claim of AmeriChoice, together with interest and costs, under § 1301(c)(2). To the extent that the Plan seeks to prohibit any action against the Guarantors for any amount not proposed to be paid through the Plan with interest and costs, the same must be said not to have been proposed in good faith. WHEREFORE, AmeriChoice Federal Credit Union prays that this Honorable Court • sustain its objections and deny confirmation of the Debtor's Plan, and grant such other relief to which AmeriChoice may be entitled, or which the Court determines to be just and equitable, including the right to pursue the Guarantors, Salvatore and Livia Nicastro, should Debtor's Plan not propose to pay in full the claims of AmeriChoice, and that this Honorable Court schedule a hearing on these objections. Respectfully submitted, SAIDIS, SHUFF, FLOWER & LINDSAY CJ Date: March 18, 2005 By: /s/ Matthew J. Eshelman Matthew J. Eshelman, Esquire ID #72655 2109 Market Street, Camp Hill, PA 17011 (717) 737-3405 (fax) 737-3407 Attorneys for AmeriChoice Federal Credit Union Debtor's plan purports to exercise the protections of 11 U.S.C. § Case 1:04-bk-05727-MDF Doc 19 Filed 03118/05 Entered 03/18/05 16:10:26 Desc Main Document Page 4 of 4 t • N Lnn1[LL'J Ltl'iHK I 1 1 1 IN TIM UMTED STATES BANKRUPTCY COURT OF THE MIDDLE 1)T.MCT OF PENNMVANIA JN RE: EEC L MCASTRO D/B/A MCAMO CWROPRA,CTIC, Debtor 717566B313 P.02 DEPOSITION EXHIBIT _ , -;zj ? DOCXET No.1:04-bk-05'727 NIDF CHAPTER 13 99P'[T A ZION NOW COME the Movant, AmenChoice Federal Credit Union, by and through its attarrieys, SAIDIS, SHUFF, FLOWER & LIM3SAY, in the persons of Matthew J. Eshelman, Esquire, and the Debtor, Eric L. Nicastro, d/bta Nicastro Chiropractic, by and through his attomey, Dee E. Oesteding, Esquire, and stipulate as follows: 1. This Court has jurisdiction in this matter uodeer 28 U.S.C. § 157(b)(2)(L), 11 • U.S.C. §§ 105, 362;1322,1325, and Ba nkmptcy Rules 30150 and 9014. 2. AmeriChoice Federal Credit Union ("AmeriChoice") is a federal credit union organized and existing under the laws of the United States of America, with its principal office located at 20 Sporting Green Drive, Mechaniosburg, Pennsylvania 17050. 3. Eric L. Ni Castro d/b/a Nicaistro Q*opractic Health center (the "Debtor") is an adult individual with an addiess at 288 Bradley Circle, New Cumberland, Pennsylvania 17070. 4. AmeniChOice is ft holder of a secured claim against the Debtor. AmeriChoice's • claim is evidenced by the following: (A) a U.S. Small Business Administration Note dated October 14, 2003, in the original prinucipal mount of $40,000.00, known as SEA Loan No. GP 665 042 40 02 RBG (the "SBA Note"); (13) a vehicle loan dated January 22, 2004, in the original amount of S I9,699.34, known as account number 30202132 (the "Vehicle Loan"); (C) a personal Visa known, as account number 4202-9000-0005-6886 (the "Personal Visa'; and (D) a bosiness I ? I 1 I I r i fl II II II II i I y? I Mi di ? I , I I I . I 4 :I ? ,41 I I •I Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc _Main-Document-.-Eage.-J--Jof-5--.- Y a c • • --- ..r .r rr? r l 1 1 '717bbb8.S1,5 P. bS Visa known as account member 4202-90000007-0473 (the "Business Visa'j. A COPY of the SBA Note is attached hereto as E%bibit "A" and is incorporated herein by reference. Debtor's parents, Salvatore Nimzitro and Livia Nicastro, (the "Guarantors") guaranteed the SOA Note by executing and delivering to AmeriChoice an Unconditional Guarantee datod October 14, 2003 (the "Guamantee'j. A colry of the Guarantee is attacked hereto as a-btibit "B" and is incorporated herein by reference. 5. The Debtor Wed his Petition for relief under Chapter 13 of the United States Bankruptcy Code and his CYaver 13 Pka on or about September 21, 2004. 6. On or about March 18, 2005, AmeriChoice filed its Objections to Debtor's Chapter 13 flan, arguing, alternatively, that Debtor's Plan failed to turn over all of Debtor's disposable income to the Trustee or that Debtor's Plan was not feasible due to insu icient disposable income. 7. The Debtor is currently providing chiropractic medical swAces to the ge2teral public in (City), (State), as a (partner/employee/??) of (New York Back Institute!??), a (c0xpma4on/pautnershipl?7) formed and registered in the State of (State), bang a principal business activity of (the practice of chiropractic mediciacP.?) (the `?usiness'?. 8. The Debtor has, and will continue to maintain, a valid license to practice chiropractic medicine in the state of (State). The Debtor will provide AnneriChoice with a copy of the license within thirty days. S. The Debtor has, arid will continue to znain=4 business inability and/or workrAm's compensation insumanm The Debtor will provide AmexiChoicc with proof of insuta = within tWrty days. r r, f?•dl ? 41 H L II I i I i, I I I dl a? r •ri I •I I aN aN ?i _ Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc VI IMA-CD 1Jtl-IHK I 1 1 I I(1 YSbbu51,5 14. Within thirty days of the end of each semi-annual. Period, the Debtor will provide AmcriChoicc with a statement of the assets and liabilities of the Business for the periods ending 3une 30, 2005, December 31, 2005, June 30, 2006. H.b4 I? I ( I I 11. The Debtor will provide AmeriChoice with copies of gaarterly state and federal income tax mtms of the Business on or before they are due to the appropriate taxing mAhori.ties, through and including the quarterly period ending June 30, 2006. 12. The Debtor will make all payments to the Chapter 13 Trustee as and when due under the U.S. Bankniptcy Code and Debtor's Chapter 13 Plan. t ' .'(; • n U 13. In July of 2006, AmeriChoice and Debtor will review the feasibility of Debtor's ; P1va and the viability of the Business. If upon review, ,AmeriChoice remains unconvinced of the - ,N feasibility of Debtor's Plan, AmeriChoice shall have the right to petition the Court for relief from stay in order to proceed against the Debtor, the Guarantors, and/or the Small Business Administration. 14. The willinglUess of AmeriCh4ce to accept and abide by the terms of this Stipulation, with particular reference to the concacns raised in the dbjeetions regarding the lack of verification of Debtor's income, are conditioned upon the continuing guaranty of the i , I . •I Guarantors. AmeriChoice must remains subjectively assured of the Guarantors' coxduuing ? •N I 1 ability to guarantee the SBA Mote. In the event AmeriChoice believes, in subjective good faith, N that rho: Guamtors' ability to guarantee the SBA, Note is or may be in jeopardy, AmeriChoice ' °a a li may file a Cerdtficate of Default outlining its concem with specificity, with ten days' notice and ! 1 rl opportunity to cure provided to the Debtor by United States mail to his address of record, with a Flu copy to Debtor's counsel by facsimile or electronic mail transmission, allowing AmeriClioice Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc _-Main-DocurAent__---P_ag,a,3-of 5 r • t r- I 'eI'(bbbti,SlS H.Idb relief U oln the amotxetiC tgty at; id tho co-ekbw shy of Swam 1301, to pmecod ?iaec the twar?oron. d? 4ptali 8tt+6ttaas Adntini?tstiott or troth. IS. In the event D&Ar ails to comply w4h soy of the eoodititrns sat W h is this SfilobOut. opoo tea lo`ut` ncltiet ad oPPMwity to cure pmvW ro the Debtor by Tattiteh State mol w Ids tuldoo otreorz& tM s cap to ik.•btav's a mm d by fem*A& of eiceeottie aorta nwmmbAm AvwdChaic--* tow cabteit to dw Cam s C.etWmwe of Dattt* dlotrrhg Ain04Miot t!eW feom. t6t MftrAa s" in prescribed 10 ttto 04clAor. sdiy of. 90cd tt 1301, to proceed Viva die C+wrmtt L the S04 Buitow Mmieistruim or both. AmariChoiec fa*" ttxe rew tbt di ft to bft 4 roo6v for re4ef, kom %by to proceed sgsittst Debtr, at a M"don N dixn* or cmft ft ban-PUMIOL 16. This SdpuWimr • ilcolva4 tho Okiecdow by Amedchmisa to Dcuor4 CNgw 13 P10, alto-ieg the Man to be nanfmood and ttu 1'm3w to begin dibursement of mViM , t 1. Thc•partycs •ugrce that o fae9iq+ile x>pnettrm of dais dasttttcttt sltatl ht caat:rdottid es M oaginol aig??.end thatttns Stipm!atian br. sp?rtrvsdas an Qtdar of Cautr. 1.8. TT.ie fitipulm+on srwy 1x mceeuted in +ury tntndxs aF coutttcrrtttr. IN WI113F.SS W6lfktaOF. the patiasitts:euro xett]tdritoeds and scalsra D ft It.Oe E. oe tlels gth* Atwra cy tar Debtor 42EanMdn.% t t a lw% PA 170S5 i+ I ( I 1 ,r i •t .i ?I r •N t •I I .+ t L? I r, I•, ii I 4 I 11 I I II ii I , • •i I I • Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc . 'I ? S k-MHKLtb ULHHR1 I I I . -7/ Datc: Date: 717566W13 P.06 MAubm J. Egh&aan, Esquire Attoiiiq for A hcdChoioc 2109 Market Stye st Camp Hill, PA 17011 by/for Charles . DcHart, III, Esquire Stioding Cbeptcr 13 Trustec P.O. Box 410 Hummlgom% FA 17109 I ji 41 r? I iN ? N I. I ,, d I ?h IN 0 I im IM Case 1:04-bk-05727-MDF Doc 33 Filed 08125/05 Entered 08/25/0511:21:34 ?Besc, Page-so__ AMERICHOICE FEDERAL CREDIT UNION, Plaintiff V. SALVATORE NICASTRO and LIVIA NICASTRO, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 ? rn =r n • -ra CIVIL ACTION C.5r- ? c3 z ? o PRAECIPE TO FILE DEPOSITIONS AND EXHIBITS THERETO TO THE PROTHONOTARY: C') F? r? -+ C:7 C) 5 Please file the attached deposition transcript, with exhibits of the deposition of Joseph B. Sobel, Esquire, conducted on March 8, 2011, and the attached excerpts from the deposition of Dallas Zulli, conducted on March 9, 2011. Dated: P31 / 11 Respectfully submitted, Of Counsel Beckley & Madden 212 North Third Street P.O. Box 11998 Harrisburg, PA 17108 (717) 233-7691 ohn G. Milakovic Thomas S. Beckley Attorneys for Defendants AMERICHOICE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO. 10-7580 V. CIVIL ACTION SALVATORE NICASTRO and LIVIA NICASTRO, Defendants DEPOSITIONS AND EXHIBITS FILED BY DEFENDANTS IN CONNECTION WITH THEIR PETITION TO STRIKE OR OPEN THE CONFESSED JUDGMENT Of Counsel Beckley & Madden 212 North Third Street P:O. Box 11998 Harrisburg, PA 17108 (717) 233-7691 Respectfully submitted, John G. Milakovic Thomas S. Beckley Attorneys for Defendants TABLE OF CONTENTS EXHIBIT A: Deposition Transcript and Exhibits from the Deposition of Joseph B. Sobel, Esquire, Conducted on March 8, 2011 . EXHIBIT B: Excerpts from Deposition of Dallas Zulli, Conducted on March 9, 2011 i ,,? / .1000, ILIA Joseph B. Sobel, Esq. Page 3 1 40 ART p p]??y(p? p ggpp CUMBERLAND COUNTY, PENN SYLVANIA 1 TABLE OF CONTENTS 2 2 WITNESS 3 AMggCHOICE FEDERAL CREDIT UN10RIN 3 FOR DEFENDANTS DIRECT CROSS REDIRECT 4 , PLAINTIFF . . 4 Joseph B. Sobel, Esquire 4 46 54 5 VS . : NO. 10-7580 5 6 I AV ORE NICASTRO AND LIVIA : oO 6 D IFENDANTS 7 EXHIBITS PRODUCED B SOBELEXfiIBITNO. NDMARKED 8 9 1 - Chapter 13 Plan excerpt, pages 3 of 7 9 10 9 2 - Motion for Relief from Automatic Stay 12 11 10 3 - Order dated December 8, 2004 13 12 11 12 4 - Objections to Debtor's Chapter 13 Plan 15 13 13 5 - Stipulation 18 14 DEPOSITION OF: JOSEPH B. SOBEL, ESQUIRE 14 6 - Proof of Claim dated February 22, 2005 22 is TAKEN BY: DEFENDANTS is 7 - Proof of Claim dated December 21, 2005 23 16 BEFORE?OT??LICOX, REPORTER 16 8 - Debtor's Objection to Amended Proof of Claim #9 26 17 17 9 - Letter dated February 3, 2010, Sobel to Pykosh 27 16 DATE: MARCH 8,2011,10:26 A.M. 10 -Letter dated February 9, 2010, Pykosh to Sobel 29 19 PLACE: Aft" 16 11 - Letter dated September 1, 2010, Sobel to Pykosh 31 20 , 19 12 - Letter dated September 10, 2010, Sobel to Pykosh 32 21 20 21 13 - Order dated April 29, 2010 45 22 22 14 - U.S. Bankruptcy Court docket 46 23 23 15 - Chapter 13 Plan dated September 21, 2004 48 24 24 16 - Order dated August 26, 2005 50 25 25 17 - Order dated March 9, 2010 53 Page 2 Page 4 1 APPEARANCES: - 1 JOSEPH B. SOBEL, ESQUIRE, called as a 3 yW? W 2 witness, being sworn, testified as follows: 3 4 -6 4 DIRECT EXAMINATION s FOR - PLAINTIFF 5 6 7 C 1 ESQUIRE 6 BY MR. MILAKOVIC: 1 7 Q Please state your name. 8 - - B A Joseph B. Sobel. 9 FOR - DEFENDANTS 9 Q What s your address? to ALSO PRESENT: 10 A My office address is 212 North Third 11 SALVATORE A. NICASTRO 11 Street, Harrisburg, Pennsylvania. 12 12 Q Are you a lawyer? 13 13 A Yes, I am. 14 14 Q How old are you? 1s is A I'm 62. 16 16 Q How long have you been practicing law? 17 17 A Since 1973. 18 18 Q Do you have a speciality? 19 20 19 A I don't have a certified speciality. My 20 practice is concentrated in commercial cases 21 22 , 21 including liquidation, reorganization, representing 22 23 both debtors and creditors. I also handle individual 24 23 cases, Chapter 7, Chapter 11, Chapter 13 individual 24 bankruptcy cases, both representing debtors and 25 25 creditors. I handle commercial litigation. That's uvitgui a Luria Reporung Nervice 1-800-2224577 Joseph B. Sobel, Esq. Page 5 Page 7 1 pretty much where my practice is concentrated. 1 able to deal with during the case. 2 Q Is it fair to say one of your 2 All of the plan payments had been made. 3 concentrations is bankruptcy? 3 The case was ready for discharge and closure. And at 4 A That would be fair. 4 that point, rather than submit the case for a 5 Q How long have you been practicing with a 5 discharge, the office of the standing Chapter 13 6 concentration in bankruptcy? 6 trustee had filed a motion to dismiss the case because 7 A Almost from the beginning, 1973. 7 of a deficiency that it alleged in plan payments. 8 Q Do you have a license? 8 Q The allegation as to a deficiency in 9 A You mean a license to practice law? 9 payments was as to which creditor? 10 Q Correct. 10 A In particular, that was caused by the 11 A Issued by the Supreme Court of 11 filing of an amended proof of claim in an amount that 12 Pennsylvania, yes. 12 grossly exceeded the amount provided for in the plan. 13 Q Of what bars are you a member? 13 The creditor was AmeriChoice Federal Credit Union. 14 A I'm a member of Dauphin County, the 14 Q In the course of your representation in 15 Pennsylvania State Bar Association. That would be it. 15 the bankruptcy case, were you required to become 16 Q Of what courts are you admitted? 16 familiar with the position of AmeriChoice Federal 17 A Dauphin County Common Pleas, of course, 17 Credit Union? 18 originally; and since statewide practice, all of the 18 A I was. 19 counties in Pennsylvania, the Supreme Court of 19 Q Could you describe what positions 20 Pennsylvania; in federal courts, the Middle and 20 AmeriChoice held as a creditor in that case? 21 Eastern Districts of Pennsylvania and the Court of 21 A As reflected by the docket and the 22 Appeals for the Third Circuit. 22 documents in the Chapter 13 case, at the time of 23 Q Are you also a member of the bankruptcy 23 filing, if I remember correctly, AmeriChoice asserted 24 court? Did you mention that? 25 24 four discrete, separate claims against Dr. Nicastro. A Yes. I did not mention that. Middle 25 There were two claims that were secured, Page 6 1 District, specifically bankruptcy court as well. Page 8 1 the first of which would have been related to the 2 Q In the course of your years of 2 purchase of a motor vehicle which was collateral for 3 practicing, do you have any estimation of how many 3 the loan. That was somewhere in the neighborhood of 4 bankruptcy cases you've been involved in? 4 18,$19,000. 5 A It would number in the thousands but 5 Then there was the claim which was 6 probably single digits. Under 10,000 but probably 7 6 guaranteed by the Small Business Administration and by somewhere in the middle thousands. 7 Mr. and Mrs. Nicastro. That would be Dr. Nicastro's 8 Q You're familiar with the matter of Eric 8 parents. 9 Nicastro d/b/a Nicastro Chiropractic, the bankruptcy 9 Then there were several unsecured claims to case docketed at 1:04-bk-05727-MDF? to which appeared to have arisen out of credit card loans 11 A Yes. 11 or simply the use of credit cards with AmeriChoice 12 Q How are you familiar with that case? . 12 Q Of the four distinct claims that you 13 A I was engaged as counsel after the 1 13 mentioned, do you recall which were guaranteed by the 4 withdrawal of the attorney who originally flied that 14 parents of Eric Nicastro? 1s Chapter 13 on behalf of Dr. Nicastro. I was asked to is A In fact, there was only one claim that 16 come Into the case at the very end, actually, of the 16 was guaranteed by anyone; and that's the one I 17 process. 18 Q For what purpose did you come into the 17 referred to that was guaranteed by the Small Business 18 Administration and the parents. 19 case? I know you said it was to represent Eric 19 Q With respect to I'll call it the SBA 20 Nicastro. 20 loan, do you recall what was provided in the 21 A What precipitated the withdrawal of prior 21 reorganization plan? 10 2 2 2 counsel and my hiring, as I understood the situation, 22 A Yes. In general terms the plan provided 3 is that prior counsel had had a serious illness during 23 that the claim would be paid 100 percent of what wa 2 2 4 the pendency of the five-year plan and certain matters s 24 then understood to be the outstanding balance as of 5 remained to be attended to that counsel had not been 25 the time of commencement of the bankruptcy case plus 6 .Jr,lgvl m Lurin Reporang Nervice 1-800-2224577 Joseph B. Sobel, Esq. Page 9 Page I I 1 percent interest; so that the total would have been 1 do recall which documents were involved. 2 the outstanding balance with 6 percent interest and 2 First would be a proof claim which 3 including 6 percent interest. So the amount to be 3 included in one document all four of the distinct 4 paid was a gross figure including that principal and 4 claims that you asked me about earlier in this 5 the interest. 5 deposition. That would be the two secured claims and 6 MR. MILAKOVIC: Let's mark this as Sobel 6 two unsecured claims. 7 1 • 7 Later, an amended claim was filed, also 8 (Chapter 13 Plan excerpt, page 3 of 7, 8 relating to all four of those claims. So AmeriChoice 9 marked Sobel Exhibit No. l.) 9 filed a claim and then an amended claim which 10 BY MR. MILAKOVIC: , to superseded the first claim. 11 Q I'm handing you what the court reporter 11 Additionally, AmeriChoice filed an 12 has marked as Sobel Exhibit 1. It's an excerpt out of 12 objection to confirmation of the plan which if I 13 the plan that was filed. Page 3 of 7 it's marked as. , , 13 remember correctly, contained two distinct objections. 14 On that page is the SBA loan referenced? 14 The first was that the plan wasn't feasible because 15 A Yes, it is. 15 Dr. Nicastro allegedly had no verifiable source of 16 Q Where? 16 income, and the second was that insufficient proceeds 17 A It would be under subparagraph C, as in 17 were being paid into the plan to satisfy the claims of 18 Clara, entitled Class If Secured Chdms. And under 18 creditors. 19 that Roman numeral, lower case 1, in parentheses, the 19 Beyond that, I can recall specifically 20 heading reads, "Secured Debts which will not extend 20 that a stipulation was flied between AmeriChoice and 21 beyond the length of the Plan". 21 Dr. Nicastro as debtor. And that purported to resolve 22 Q At the bottom of this page, the document 22 and, in fact, did resolve both objections made to 23 says Filed 9/21/04 and then there's an "entered" the 23 confirmation of the plan the two objections one 24 next day. Do you see that? , , 24 document. 25 A Yes, I do. 25 Beyond that, I don't remember anything Page 10 Page 12 1 Q " How does that relate, if you recall, to 1 distinctly. 2 the date that the bankruptcy itself was filed? 2 Q Do you recall a motion of relief from 3 A It was more or less contemporaneous with 3 stay being filed? 4 the bankruptcy filing. 4 A Yes, I do. Yes. That was in relation to 5 Q When you say more or less, was it within 5 the first of the secured claims I mentioned, 6 days, within weeks? 6 specifically the secured loan in which the collate al 7 A Yes. Within days, yes. But that's a r 7 was a motor vehicle. And the objective was to obtain 8 matter of record. I don't recall the exact filing 8 leave of court to proceed with Pennsylvania remedi 9 date. es 9 after the repossession of that vehicle, which 10 Q To your recollection was the plan 10 evidently had occurred before the bankruptcy was 11 confirmed as submitted? 11 filed. 12 A The plan was confirmed, the records will 12 MR. MILAKOVIC: Number 2. 13 reflect. 13 (Motion for Relief from Automatic Stay 14 Q To your recollection was the amount set 14 marked Sobel Exhibit No. 2.) 15 forth on this page to be paid to AmeriChoice, in fact, 15 BY MR. MILAKOVIC: 16 paid in full? 16 Q I'm handing you what the court reporter 17 A That was my understanding. The records 17 has marked as Sobel Exhibit 2. Do you recognize that 18 of the standing Chapter 13 trustee would so reflect. 16 document? 19 Q Did you become familiar in the course of 19 A Yes. That is the motion for relief from 20 your representation with the documents which 20 automatic stay that I just described, filed December 21 AmeriChoice had filed in the bankruptcy? 2 1 7, 2004. 10 22 A Yes. 2 2 Q By your reading of this motion, does it 23 Q Can you describe generally what those 2 3 have anything at all to do with the SBA loan? 24 documents consisted of? 2 4 A No. 2 5 A I cannot recall the exact sequence, but I 2 5 Q Was this motion opposed to your Geiger & i,ona Keporting Service 1-800-2224577 Joseph B. Sobel, Esq. Page 13 Page 15 1 recollection? 1 proceeding for relief from the automatic stay. . 2 A It was not. 2 To me it was remarkable because in my 3 Q So the debtor consented to the motion, 3 experience, I had never seen the bankruptcy court 4 correct? 4 issue an order that was not germane to the specific 5 A Yes, evidently. s subject matter. So it really stood out. 6 In fact, there is a document attached 6 Q Do you know whether this order, Sobel 3, 7 entitled certificate of concurrence in which the 7 had been submitted by AmeriChoice as a proposed order 8 attorney for AmeriChoice represented to the court that 8 for the court to sign? 9 the debtor, the debtor's counsel specifically, 9 A In the ordinary course of business, that to concurred with the relief requested in the motion and to would have been the exclusive means for getting such 11 that the standing Chapter 13 trustee did as well. 11 an order submitted to the Court. As a matter of fact, 12 MR. MILAKOVIC: Number 3. 12 local bankruptcy rules required that with ever 13 (Order dated December 8, 2004, marked y 13 motion, a proposed order be submitted by the movant 14 Sobel Exhibit No. 3.) 14 ant, 15 BY MR. MILAKOVIC: 15 MR. MILAKOVIC: Number 4. 16 Q I'm handing you what the court reporter 16 (Objections to Debtor's Chapter 13 Plan 17 has marked as Sobel Exhibit 3. Do you recognize that? 17 marked Sobel Exhibit No. 4.) 18 A Yes. 18 BY MR. MILAKOVIC: 19 Q What is it? 19 Q I'm handing you what's been marked as 20 A It's an order entered by the Bankruptcy 20 Sobel Exhibit 4. Can you identify what that is? 21 Court in the Middle District of Pennsylvania by Judge, 21 A Yes. That is the document entitled 22 now Chief Judge, Mary D. France on December 8, 2004, 22 Objections to Debtor Chapter 13 Plan filed b 23 in response to the motion which is Sobel Exhibit 2. y 23 AmeriChoice Federal Credit Union. And it does, in 24 Q Who did the highlighting and underlining 24 fact, have several specific and distinct objections 25 there? Do you know? . 25 Just to test my recollection, I'll take a look Page 14 Page 16 " 1 A On this particular copy? 1 quickly. 2 Q Yes. 2 The first objection is, as I recalled it, 3 A I don't specifically recall because I'm 3 that the debtor has no verifiable source of income 4 not sure whether this is a document that your office . 4 The second subpart of that objection is the debt ' 5 obtained. But I think I probably obtained this or s 5 expenses appear to be estimated based upon a projected 6 document. 6 budget established without a regular source of i 7 Yes. In fact, there had been -- if you ncome. 7 And so the debtor is not verifiably able to afford the 8 don't mind my digressing for a moment, the background 8 payments proposed under the Chapter 13 plan. 9 of the origin of this document might be relevant. 9 The second one that I remembered is - 10 Normally, documents are available over to again, it mentions it in subpart A - there's no 11 the Internet through a system known as - it's an 11 verifiable source of income. And subpart B more or 12 acronym - PACER, P-A-C-E-R. And neither this motion 12 less echoes the similar subpart in 1 13 nor the order were available on PACER. . 13 So these are essentially the same kind of 14 And it wasn't until probably January of 14 objections based upon two different sections of the 15 2010 that my office, after some investigation, was 15 Bankruptcy Code. 16 able to obtain copies of these documents from the 16 Then, three, the objection is the 17 bankruptcy court. So I'm reasonably certain I 17 proposed payment schedule does not provide sufficient 18 provided them to you. 18 money to pay the claim of AmeriChoice together with 19 Q Do you recall underlining specifically 19 interest and costs. And to the extent that the plan 20 the sections that are underlined here? If you do, why 20 proposes to or seeks to prohibit any action against 21 did you do it? 21 the guarantors, it must be said not to have been 22 A Yes. Now that I go through the history, 22 proposed in good faith. 23 I recall that I did underline it. And the reason is 23 So Objection Number 3 is the one 1 2 4 because the highlighted and underlined materials have 2 4 recalled that said that there was not enough money 2 5 nothing at all to do with the subject matter of that 2 5 being paid into the plan. Geiger & Loria Reporting Service 1-800-2224577 Joseph B. Sobel, Esq. Page 17 Page 19 1 The first two relate to the fact that 1 A My understanding, based upon my 2 there is no verifiable source of income at all. And 2 recollection and what I will expect to find as I look 3 the third objection says, in essence, you're not 3 at this document, is that there were two 4 paying - that the debtor is not paying enough or 4 considerations; one, continuing financial reporting 5 doesn't propose to pay enough into the plan with his 5 from the debtor to AmeriChoice. And that was spelled 6 nonexistent income. 6 out specifically periodically. And the other is the 7 Q Does this document, Sobel 4, deal with 7 maintenance in effect of the guarantor - sorry - the 8 the SBA loan? s guarantees of the debtor's parents, Salvatore and 9 A It does in subpart 3 because it makes 9 Livia Nicastro. to reference to the guarantors. to Q With respect to the first issue, the 11 Q Unlike the motion we looked at for relief 11 reporting requirements, are those contained in 12 from stay, this document at least does purport to deal 12 paragraphs 10 and 11 of Sobel 5? 13 with the SBA loan? 13 A They appear to be, yes. 14 A Yes. And it says specifically that to 14 Q With respect to the guarantors and 15 the extent that the plan seeks to satisfy the claim in 15 reservation of AmeriChoice's rights with respect to 16 full against all parties, they say it's not been 16 those persons, is that provision contained in 17 proposed in good faith. So that's their objection in 17 paragraph 15? 18 a nutshell. is A I would say 14. 19 Q I think you testified earlier that these 19 Q Fourteen. 20 objections were resolved by stipulation. Is that your 20 A That's on page 3 of 5. 21 recollection? 21 And the pertinent language appears to be 22 A They were. 22 as follows: "In the event AmeriChoice believes, in 23 MR. MILAKOVIC: Five. 23 subjective good faith, that the guarantor's, ability 24 2 24 to guarantee the SBA note is or may be In jeopardy, 5 (Stipulation marked Sobel Exhibit No. 5.) 25 AmeriChoice may file a certificate of default Page 18 Page 20 1 THE WITNESS: For purposes of 1 outlining its concerns with specificity", and so 2 clarification, in paragraph 3, which has only the one 2 forth. 3 subpart -- that's lower case A. 3 I also, as I read it, take note of 4 BY MR. MILAKOVIC: 4 paragraph 16, which is really the heart of the 5 Q Page 4 of 4? 5 agreement. It says - and I'm quoting - "This 6 A Yes, it's the last page, 4 of 4. 6 stipulation resolves the objections by AmeriChoice to 7 It says, "The debtor's proposed payment 7 debtor's Chapter 13 Plan, allowing the Plan to be s schedule under the plan does not provide sufficient 8 confirmed and the trustee tea to begin disbursement of 9 money to pay the claim of AmeriChoice." Let me stop 9 payments." to right there. 10 Q In your reading, what was the resolution 11 The claim of AmeriChoice, once again, 11 provided for in the stipulation? If I recall there 12 consisted of four discrete claims, two of which were 12 were two types of objections, no verifiable source of 13 unsecured. So that one paragraph relates to a full 13 income. Was AmeriChoice's objection to that effect 14 spectrum of different claims. 14 successful? is Q We'll see that when we get to the proofs 15 A It was resolved through the stipulation. 16 of claim, correct? 16 Q The stipulation speaks for itself. We'll 17 A Correct. 17 move on. 18 Q What's been marked as Sobel 5, can you 18 Let's look now because we've referred to 19 identify it? 19 them before, the proofs of claim. 20 A Sobel 5 is the stipulation to which you 20 A Maybe I could give you a more complete 21 just referred resolving the objections contained in 21 answer before you move to the next exhibit 22 Sobel 4. . 22 In particular with regard to the 2 3 Q Do you recall how the objections with 23 guarantors, the objection in paragraph 3 is I 2 4 respect to no verifiable source of income were , 24 believe, what you're asking about. 2 5 resolved? zs Q I was going to next, but go ahead. Gager az Lorla Reporang Service 1-800-2224577 Joseph B. Sobel, Esq. Page 21 Page 23 1 MR. PYKOSH: What document are we on? 1 incorrect. 2 MR. MILAKOVIC: We're back on the 2 And that same paragraph further 3 stipulation, I guess, Exhibit 5. 3 references the SBA claim. The language says as 4 THE WITNESS: We're talking about Sobel 4 follows: "Note also that debtor's plan currently 5 4, the objections, and relating what was resolved 5 proposes to pay only such portions of the obligation 6 through the stipulation. 6 to AmeriChoice as are guaranteed by Salvatore and 7 MR. PYKOSH: I'm going to object in that 7 Livia Nicastro and to pay the same as a secured to e the stipulation speaks for itself. Every one of these a your claim." 9 documents speak for itself. And my understanding is 9 As I interpret the note, it's simply that 10 that at this point in time, Mr. Sobel was not in the 10 as of the time of filing of this proof of claim, the 11 case. And so I'm going to object to testimony as to 11 vehicle had been surrendered, the purchase price upon 12 what his belief was since they speak for themselves. 12 resale was to be credited against the loan amount 13 MR. MILAKOVIC: I agree. Let's move on , 13 leaving an unsecured amount so that there would be 14 to the next. 14 going forward only one secured claim and three 15 BY MR. MILAKOVIC: 15 unsecured claims. 16 Q The fact is, Mr. Sobel, you reviewed all 16 Q Let's compare this one to the next proof 17 of the documents in connection with an amended proof 17 of claim. 19 of claim, I think you testified, correct, that 18 MR. MILAKOVIC: Seven. 19 AmeriChoice had filed? 19 (Proof of Claim dated December 21, 2005 20 A That's where my investigation began, yes. , 20 marked Sobel Exhibit No. 7.) 21 Q In order to investigate that matter, you 21 BY MR. MILAKOVIC: 22 were required, I think you said, to review the whole 22 Q I'm handing you what's been marked as 23 record and everything AmeriChoice had filed? 23 Sobel 7. Could you identify this document? 24 A As it turned out, that's correct. 25 MR. MILAKOVIC: Number 6. 24 A This is a second proof of claim, the 25 amended proof of claim to which I referred earlier. Page 22 Page 24 1 (Proof of Claim dated February 22, 2005, 1 This one is Claim Number 9-1, filed December 21 2005 2 marked Sobel Exhibit No. 6.) , , 2 in the bankruptcy court. 3 BY MR. MILAKOVIC: 3 Q That's an opposed confirmation of the 4 Q Handing you what's been marked as Sobel 4 plan, correct? 5 Exhibit 6, I'll represent to you this is the fast 5 A That is correct. 6 proof of claim that you testified to from AmeriChoice. 6 Q What's the difference as far as you could 7 If you turn to the third page of that 7 make out when you looked at it between the first proof 8 exhibit, it lists due as of 9/20/04. Do you have that 6 of claim and this amended proof of claim? 9 page? 9 A Beginning with the attachments, because 10 A I do. 10 that's where the itemizations are contained I note 11 Q Are the four different claims listed on , 11 that due as of November 15 2005 there is one secured 12 that page? , , 12 claim, and that is the SBA loan which is, in fact, 13 A They are. 13 referenced specifically. And it reflects a princi al 14 Q Of those four claims, it's correct, I p 14 balance and various other items and includes 15 think you testified, only the SBA loan claim involves 15 attorney's fees of $7,4262.90. 16 the guarantors, the parents? 16 Then there's a group of general unsecured 17 A That would be my understanding. 17 claims. The vehicle loan that was a secured claim at 18 Q I understood you to say the vehicle loan, is the beginning of the case was reduced to $3 251 10 as 19 the second one, was also a secured loan? , . 19 a result of application of proceeds from resale after 20 A Yes. As a matter of fact, now that I'm 20 repossession. And then there are two other unsecured 21 shown the document, I see a paragraph at the bottom of 21 claims. These appear to be credit cards. 22 the page that reflects the post-petition surrender of 22 Q Turning to the SBA loan section of 23 the vehicle in question. 23 Exhibit 7, there appears to be a number of items 24 I had testified I thought it had been 24 listed as subparts of that balance which is now 25 surrendered pre-petition. That is apparently 25 $48,941.45. cseliger & Loria Reporting Service 1-800-2224577 Joseph B. Sobel, Esq. Page 25 Page 27 1 Comparing that to the first proof of 1 claimed attorney's fees arose was going to be 2 claim that was filed earlier, what items appear on the 2 necessary. And essentially my position as attorney, 3 new one that weren't on the first one? 3 based on what I knew at the time or had reason to 4 A Beginning at the top, comparing the 4 believe, is reflected in count 2. And my concerns 5 totals - first of all, l note that on the first proof s were later borne out at the point where I got the 6 of claim stating a balance due as of September 20th, 6 opportunity actually to look at the invoices in 7 2004, the SBA loan is not broken down into separate 7 question. 8 components. So it is not possible to tell which part 8 MR. MILAKOVIC: Number 9. 9 of it was alleged to have been principal and what 9 (Letter dated February 3, 2010, Sobel to to other components there might have been that comprised to Pykosh, marked Sobel Exhibit No. 9.) 11 the amount of $37,758.90. 11 BY MR. MILAKOVIC: 12 In any event, as of approximately 14 12 Q I'm handing you what's been marked as 13 months later, on November 15, 2005, the principal 13 Exhibit 9. Could you identify that? 14 balance has apparently been determined, and various 14 A That's a letter that I sent on February 15 other components added, to get a total of almost 15 3, 2010, to Mr. Pykosh, Michael J. Pykosh, who was 16 $49,000, which means that the loan balance has 16 attorney for AmeriChoice. 17 allegedly increased by approximately $11,000 in the 17 Q What was the purpose of sending this 18 course of a year. 18 letter? 19 Q Did you take some action in response to 19 A The letter apparently was sent the day 20 this amended claim? 20 after the hearing in bankruptcy court at which the 21 A I was not attorney at the time that the 21 Court granted the objection contained in Sobel Exhibit 22 claim was filed. Later, however, after I was engaged 22 8, specifically on the basis articulated in count 1 23 by Dr. Nicastro, the action I determined necessary, , 23 which was, simply put, that the plan was confirmed; 24 after some dialogue with AmeriChoice, attempting to 24 the required amount had been paid; and that any amount 25 reach some form of resolution of the matter, was to 25 in excess of that was going to be disallowed as a Page 26 Page 28 1 file an objection to that proof of claim. 1 claim on the part of AmeriCholce. 2 MR. MILAKOVIC: Exhibit 8. 2 The letter reflects the fact that I had 3 (Debtor's Objection to Amended Proof of 3 been engaged in a process over a period of months of 4 Claim #9 marked Sobel Exhibit No. 8.) 4 trying to gather all of the facts related to this 5 BY MR. MILAKOVIC: 5 case. And as it says, I have since had the 6 Q I'm handing you what's been marked as 6 opportunity to review the situation in greater detail 7 Sobel Exhibit 8, and what is that document? 7 since the bankruptcy court hearing. And I mentioned 8 A That's the objection that I filed on 8 the fact that only one of the four discrete stated 9 behalf of Dr. Nicastro on February 10, 2010, to 9 claims is secured. And I go on to address the issue to amended proof of Claim Number 9 of AmeriChoice, which to specifically of the attorney's fees. 11 is in this case Exhibit Sobel 7. 11 Q Did you want to look at copies of the 12 Q There appear to be two counts -- 12 invoices? 13 A Yes. 13 A At that point? 14 Q -- in these objections? 14 Q Yes. is Turning to count 2, it starts on page 4 15 A Yes, I did. 16 of the objections. Is it fair to say that this count 16 I'm sorry. You know, I think I'm 17 is an objection to the attorney's fees claimed that we 17 mistaken. The reference to yesterday's hearing did 18 looked at in the amended proof of claim? 18 not relate to the objection to the claim. It related 19 A It is. 20 Q Wh t h 19 to the trustee's motion that I referred to earlier to a was t e basis for your objection? 20 dismiss the Chapter 13 case. And that Is what alerted 21 A Around that time, probably after I filed 21 me to the fact that I needed to do a more intensive 22 the proof of claim, I had indicated to AmeriChoice 22 investigation. 23 that I believed that because there were four discrete 23 So the purpose of this letter was to 24 claims raised in one proof of claim, that it was 24 explain why I felt I needed to see the invoices and to 2 5 evident that some investigation as to how these 25 ask for them specifically. Geiger m Lona reporting Service 1-800-2224577 Joseph B. Sobel, Esq. Page 29 Page 31 1 MR. MILAKOVIC: Exhibit 10. 1 was to isolate just those services that were provided 2 (Letter dated February 9, 2010, Pykosh to 2 only for the SBA guaranteed loan and determine how 3 Sobel, marked Sobel Exhibit No. 10.) 3 much was charged for those services? 4 BY MR. MILAKOVIC: 4 A Not specifically. 5 Q Were you interested at this time, early s Q Why not? 6 February of 2010, in trying to isolate what services 6 A First of all, the invoices, until you get 7 were performed and billed just for the secured claim 7 to the very latest, are narrative but not itemized; 8 that was guaranteed under the SBA loan? 8 that is, they describe in very general terms 9 A The letter so reflects. But that was 9 activities but not necessarily as relates to specific 10 part of a larger goal, which was to resolve the matter 10 services. 11 without the need to file an objection and go forward 11 So that was an obstacle that couldn't be 12 in any formal manner. 12 overcome in terms of isolating what services - I'm 13 Q Look at Exhibit 10. Could you identify 13 sorry - what activities were related to specific 14 what that is? 14 services. And without that information, it was not 15 A That apparently is the response I 15 possible for me to ascertain which claim the services 16 received to my letter of February 3. 16 might have related to. 17 Q Is it a letter dated February 9, 2010, 17 Q Did you ever put your concerns in writin g 18 from Michael J. Pykosh to you? 18 after reviewing the invoices? 19 A Yes, it is. 19 A I believe I did. As I said I was using , 20 Q Did you receive it on or about that date? 20 every effort available to try to resolve the matter 21 A I received it shortly after February 9. 21 with AmeriChoice rather than engage in further legal 22 Q Did it have attached to it what is 22 proceedings. 23 attached here to Exhibit 10? 23 (Letter dated September 1 2010 Sobel to , , 24 A To the best of my recollection, it did. 24 Pykosh, marked Sobel Exhibit No. 11.) 25 Q When you received it, did you take a look 25 BY MR. MILAKOVIC: Page 30 Page 32 1 at it? 1 Q I've handed you what's been marked as 2 A Yes, I did. In fact, I examined it 2 Sobel 11. Can you identify that? 3 thoroughly. And I had my legal assistant do the same, 3 A It's my letter of September 1 2010 to 4 and we compared notes. , , 4 the same attorney Michael Pykosh 5 Q Based on your review of what was , . s The letter reflects that I've made 6 submitted to you, did you reach any conclusions 6 further progress in acquainting myself with various 7 regarding the fees charged to AmeriChoice in the 7 documents related to this case. 8 bankruptcy? 8 Q In response to this letter of September 9 MR. PYKOSH: I'm going to object. If 9 1, did you ever receive any additional information 10 he's going to make a claim that they're over and 10 that allowed you to isolate the services that were 11 above -- I think the judge will make a decision as 11 performed for the SBA loan in the bankru tc as 12 to -- p y 12 opposed to the other three? 13 MR. MILAKOVIC: Let me ask a more 13 A I did not. 14 specific question then. 14 MR. MILAKOVIC: This is 12. 1s BY MR. MILAKOVIC: 15 (Letter dated September 10, 2010, Sobel 16 Q Based upon your review of the bills that 16 to Pykosh, marked Sobel Exhibit No. 12.) 17 were submitted as part of Exhibit 10, were you able to 17 BY MR. MILAKOVIC: 18 determine whether the claim for attorney's fees 18 Q Can you identify Exhibit 12? 19 included both the SBA loan services and services 19 A This is a letter dated September 10, 20 provided by the attorneys for the other three claims 20 2010, to the same attorney, Mr. Pykosh, representing 21 of AmeriChoice? 21 AmeriChoice. 22 A If you're asking if I found evidence to 22 Q In response to this September 10 letter 23 that effect, the answer is yes. , 23 did you ever receive any additional information from 24 Q Based upon your review of the invoices, 24 AmeriChoice's attorneys that allowed you to isolate 2 5 were you able to do what you had wanted to do, which 25 the fees that were charged simply for the SBA loan in Geiger & i oria Reporting Service 1-800-2224577 Joseph B. Sobel, Esq. Page 33 Page 35 1 the bankruptcy? 1 Q That was what, nine or ten months before 2 A No. 2 the bankruptcy was even filed? 3 And it's probably worth mentioning that 3 A Yes. 4 there were indications as to various services that 4 Q Or longer? s specifically did not relate to the SBA situation. So s A Yes. 6 I don't want to create the impression it was 6 Q So that could not possibly have been 7 impossible to isolate any of the services. Some of 7 related to the services in the bankruptcy for the SBA 8 them were expressly stated. And the ones that were, B loan, right? 9 by and large, specifically related to claims other 9 A Evidently not. 10 than the SBA loan. 10 Q All right. Go on. 11 Q Could you give an example? 11 A We might as well take these one page at a 12 A If you just give me a second, I'll take a 12 time because I won't recognize them until I see them. 13 look. 13 The first one that's prominent would be 14 This would be on Exhibit 10. 14 on the invoice dated November 30 2004 is Q Yes. , . 15 Now, starting with the first entry 16 A Now, there is - , 16 November 17, 2004, is an alleged phone call with 17 Q Where are you referring to? 3-7 Zulli, review file, check ECF which is the PACER is A I'm starting on the third page. , 18 system, notes to file, prepare notes for creditors 19 Q It's a document dated October 11, 2004? 19 meeting. 20 A Yes, that's correct. 20 And then the following day, November 18, 21 Q Okay. 21 2004, travel to and attend creditors meetin and it 22 A Now, this is - g; 22 ends with prepare letter to Tulli T-u-1-1-1 which 23 MR. PYKOSH: The third page? , , 23 could easily be Zulli. We don't know. 24 MR. MILAKOVIC: The third page of Exhibit 24 Then the following day - 25 10. 25 Q Why did you mention these entries? Page 34 Page 36 1 MR. PYKOSH: Including my letter. 1 A The reason is that based on my experience 2 MR. MILAKOVIC: Yes. There's a cover 2 in representing both debtors and creditors i 3 letter from you to Joe Sobel. n 3 bankruptcy, In a situation where a Cha ter 13 l i 4 MR. PYKOSH: Okay. p p an s 4 fled that provides for 100 percent payment on account s BY MR. MILAKOVIC: s of a claim, there's no apparent reason for a cr dit 6 Q Go ahead, Joe. e or 6 to go to the first meeting of creditors to find out 7 A There's one entry here, and It's one of a 7 what he already knows, which is how he's being treated 8 few. On August 4, 2004, there's a reference to a in the plan. And this plan was filed just ab t th 9 messages from Zulli; called to Zulli on SBA context. ou e 9 same time as the bankruptcy petition itself 10 So I feel that that probably was related . 10 So the question is why was this attorney 11 to the SBA loan; although, it's impossible to tell 11 doing all of this preparation allegedly to go to a 12 whether anything else on that page was. 12 meeting of creditors and what was the outcome? 13 Q The question is, you had mentioned you 13 The outcome, I think, will strongly 14 saw things in here that clearly were not related to 14 suggest the purpose for attending in the first place. is the SBA loan. I'm asking for some examples. 15 The outcome in this case was reflected on 16 A I'm about to get to those, but I wanted 16 November 19, 2004, two days after attendance at the 17 to make sure it's understood I'm not trying to exclude 17 meeting of creditors. And apparently all that was 1e the possibility that there was any mention at all of 18 going on was the preparation of a motion for stay 19 the SBA - 19 relief and certificate of concurrence. 20 Q Before you go on, getting back to the 20 As we discussed earlier in the 21 page you were just on, the October 11, 2004. 21 deposition - 22 A Yes. 22 MR. PYKOSH: I'm going to object to going 23 Q I notice there's a balance forward. It 23 through these. I mean you're just surmising what you 2 4 says as of invoice dated November 21, 2003. 2 4 think happened, and you don't know what happened. I 2 5 A Yes. 2 5 think that this is all speculative what you're t-welger & Eoria reporting Service 1-500-222-4577 0 • n Joseph B. Sobel, Esq. 10 Page 37 Page 39 1 testifying to. 1 Q February 8, 2005. Got it. 2 MR. MILAKOVIC: Was there a motion for 2 MR. PYKOSH: Let me get to that page. 3 stay relief that you're aware of, Mr. Pykosh? 3 MR. MILAKOVIC: The bill is dated April 4 MR. PYKOSH: No. I mean just going 4 19, 2005. The entry is February 8, 2005. 5 through these, he first said he was unable to 5 MR. PYKOSH: What was the date in 6 determine which ones were for and which ones were not. 6 February? 7 MR. MILAKOVIC: That's not what he said. 7 MR. MILAKOVIC: February 8. 8 He was unable to isolate only the ones related to SBA 8 THE WITNESS: February 8, 2005, the entry 9 loan. He was able to pick out, he said, ones that 9 says, "Received and reviewed notice of filing of to were clearly not related to SBA loan. And I don't to Citibank proof of claim." 11 think it's speculative to say that prepare motion for 11 Of course, like all of these entries 12 stay relief and certificate of concurrence refers to , 12 there's no time allegedly spent. But what is evident 13 the motion for stay relief and certificate of 13 is that there is no apparent connection between a 14 concurrence we earlier looked at unless there's some 14 proof of claim filed by Citibank and the SBA claim 15 other motion for stay relief that AmeriChoice filed. , 15 and this relates to general representation in a 16 MR. PYKOSH: I see what you're saying. 16 Chapter 13 in which the creditor has four discrete 17 I'm okay with that one. 17 claims. That's an example. 18 But my question is generally the ones 18 Indeterminate time is spent on writing 19 that you can't tell, it's just speculating. 19 and at several points revising that first -- song -- 20 MR. MILAKOVIC: That's not what the 20 yes. Well, let's see. 21 question was directed as. 21 We're talking about February 14. That 22 MR. PYKOSH: I'll withdraw my objection 22 would be the amended proof of claim in all likelihood. 23 for that question. 23 So an indeterminate amount of time was 24 MR. MILAKOVIC: I asked him to identify 24 spent on that. So it's impossible to tell whether the 25 to us ones that he could say did apply to other 25 time spent was reasonable, but we do know that 75 Page 38 Page 40 1 matters. 1 percent of what was being asserted related-to claims 2 BY MR. MILAKOVIC: 2 other than the SBA claim. 3 Q Go on. November 19th you were talking 3 Those are a couple of prominent examples 4 about. . 4 BY MR. MILAKOVIC: 5 A Yes. The activities on November 19th 5 Q Did you ever reach a professional opinion 6 were, as reflected by this invoice, all related to the 6 based on your experience as to what services 7 repossession and resale of the vehicle that was 7 reasonably would have been necessary relating only to 8 collateral for a loan. That had had nothing to do 8 the SBA debt in the bankruptcy? 9 with SBA, and that's why I so concluded. 9 MR. PYKOSH: I'm going to make an to Now, as to the following one, as a to objection because you're asking him for an opinion of 11 footnote, the following entry - 11 an expert -- 12 Q The November 23rd entry? 12 MR. MILAKOVIC: Yes. 13 A Yes. 13 MR. PYKOSH: -- of which Mr. Sobel 14 The final one, November 24, indicates 14 represented Eric Nicastro. And I believe he would be 15 receipt and review of a fax from Mr. Zulli and 15 able to tell you that he represented Salvatore and 16 revision of the proof of claim. 16 Livia Nicastro in the beginning of this transaction, 17 Now, in that regard there are four 17 before your firm took over. I'm going to object as to 18 discrete claims that are contained in that proof of 1s a professional opinion at this point 19 claim; therefore, I think it would be impossible to 19 BY MR. MILAKOVIC: 20 say that the proof of claim was related entirely or 20 Q You may answer. 21 even in the majority to the SBA loan. That's an 21 A I will answer it in the context of the 22 example of the analysis that I did in reaching my 22 steps I would have recommended and I would likely have 23 conclusions. 23 taken on behalf of AmeriChoice because that's the onl 24 Here's another one, February 8, 2005. y 24 perspective from which I can view this as a witness. 25 That's on the bill for April 19, 2005. 2 5 In my experience what really mattered in Geiger & Loria Reporting Service 1-800-222-4577 Joseph B. Sobel, Esq. I 1 Page 41 Page 43- 1 this case may be ascertained by looking at the 1 actually required in connection with its drafting. 2 objection and the stipulation. The objection was not 2 In particular, looking at paragraph 7 -- 3 necessarily needed if the only goal of AmeriChoice was 3 I'll read it into the record -- 4 as stated in the stipulation. And I believe it is 4 BY MR. MILAKOVIC: s evident from an examination of the billing records s Q Please don't. 6 that it was, in fact, AmeriChoice that drafted that 6 The question is, how long do you think it 7 stipulation. 7 reasonably should have taken to do the things that you 8 The efficient way to handle a situation 8 think should have been done? 9 like this would simply be to draft the stipulation, 9 A Paragraph 7, the reason I mention it is 10 send it to the debtor's counsel with the comment that 10 because it looks as if it is simply part of a form 11 this is what AmeriChoice requires in order to avoid an 11 which hasn't been properly filled out. 12 objection to confirmation of the plan. And assuming 12 Q Aside from what it looks like how long , 13 that the stipulation was acceptable to the debtor, no 13 would it have taken you, for example to do the things , 14 objection really would have been necessary. 14 that you think should have been done and only those is Or it could have been simply put together is things which should have been done? 16 as a very simple document with the stipulation 16 A If it's just a matter of working with a 17 attached with a motion to the bankruptcy court asking 17 predrafted form, which this might well be, then I 18 that the stipulation be entered in lien of pursuing 18 would say as little as four hours. 19 the objection. 19 Q Did you find in your review of the bills 20 Other than that in relation to the SBA 20 that there were included in them time spent on matters 21 claim, at that stage there was really nothing else 21 which approved to be unsuccessful for AmeriChoice? 22 legitimately that needed to be done. 22 A Yes. I made the effort that's reflected 23 Q What about filing a proof of claim? 23 in my correspondence to get these matters resolved 24 A It is necessary to file a proof of claim 24 without the need for any form of contested proceeding 25 in order to enable payment through the office of the 25 in the bankruptcy court. All of that could have been Page 42 Page 44 1 standing Chapter 13 trustee. The trustee has to legal 1 avoided. 2 authority to make disbursement to creditors that don't 2 And as a matter of fact, once I filed the 3 file proof of claims. 3 objection, the bankruptcy court as I discussed 4 However, the appropriate way to have , 4 earlier, ruled in favor of Dr. Nicastro. So there was s proceeded in this case, particularly since the SBA s really no basis at all for opposing it. 6 claim is the only claim on which AmeriChoice had any 6 Q So the objection to Amended Claim 9, 7 reasonable expectation of being paid, would have been 7 you're saying, AmeriChoice was unsuccessful on and you 8 to file that claim as a separate document so that 8 were successful on? 9 there was no misunderstanding as to its position as 9 A That's correct. 10 relates between the stipulation and the claim. 10 Q But included in the bill is the time 11 There's confusion that's caused by 11 spent on that matter. Is that what you're -- 12 lumping together four discrete claims with very 12 A I would have to go back and look at the 13 different characteristics and different treatment 13 bill to be sure that this particular group of invoices 14 under the Chapter 13 plan. 14 contains that because I don't know that. 15 Q Do you have a professional opinion as to is What I do know is that it Is evidently a 16 the time which reasonably should have been expended to 16 part of the amount being claimed now whether it was in 17 conduct those necessary activities with respect to the 17 those bills or not. 18 SBA loan? 18 The reason I say so is because I believe 19 MR. PYKOSH: I make the same objection as 19 there was an extra couple of thousand dollars added on 20 previously. 20 to the total of those invoices. 21 THE WITNESS: If I may refer back to the 21 Q Right. And the last bill that you were 22 stipulation. Can you tell me which number -- here it 22 provided with was from 2006? 23 is. That's Sobel 5. 23 A That's right. 2 4 There were some things in the stipulation 24 Q So you were not provided with all of the 2 5 that raised a question as to what services were 2 5 invoices supporting the full amount claimed as Geiger & .Loria reporting Service 1-800-2224577 Joseph B. Sobel, Esq. 12 Page 45 Page 47 1 attorney's fees? 1 Q Could you tell me what this document is? 2 A Not the amount claimed at this time. 2 A I can draw some inferences. 3 Only the amount claimed in proof of Claim Number 9. 3 It appears to be a printed version of the 4 MR. MILAKOVIC: Could you mark this as 4 docket in the Eric Nicastro Chapter 13 case throu h 5 the last exhibit then. g 5 June 24 of 2010. It was apparently obtained and 6 (Order dated April 29, 2010, marked Sobel 6 downloaded from the Internet the PACER s stem to 7 Exhibit No. 13.) , y 7 which I referred earlier by your office e BY MR. MILAKOVIC: , . s Q That's how the exhibits from the Nicastro 9 Q This is the last exhibit. Could you 9 case that were presented by Mr. Nicastro's attorney 10 identify what it is? 10 were also obtained, is that correct, downloaded from 11 A This is an order entered April 29, 2010, 11 the PACER site, or don't you know? 12 by Chief Bankruptcy Judge Mary D. France. The order 12 A I testified previously, by and large they 13 disallows AmeriChoice amended proof of Claim Number 9, 13 would have been. However there was one notable 14 and I quote, "To the extent that the amount claimed , 14 exception; and that was the motion and order for 15 exceeds the amount payable to AmeriChoice Federal 15 relief from stay that are - 16 Credit Union under the debtor's confirmed Chapter 13 16 Q Correct, that was not obtainable. I 17 plan. That order was entered in response to the claim 17 understand that one docket. 1E objection that is Sobel Exhibit 8. 16 According to this document, if we go to 19 MR. MILAKOVIC: Cross-examine. 19 the entry for February 7, 2010, I'll let you take a 20 (Recess.) 20 look at that. The entry indicates withdraw of 21 21 appearance of Lee Eric Osterling. Would that have 22 22 been about the time that you entered your appearance 23 23 in the case? 24 25 CROSS-EXAMINATION 24 A The record indicates that I entered an 25 appearance the same day. Although - may [ Page 46 Page 48 1 1 continue - I do note that on February 1, 2010 - and 2 BY MR. PYKOSH: 2 this is Docket No. 52 - there is a recedin 3 Q Mr. Sobel, as you know my name is Michael p g memo 3 relating to the trustee's motion to dismiss the case. 4 Pykosh and I represent AmeriChoice in this matter. 4 And my appearance at that hearing is noted. 5 I'm just going to have a few questions. 5 MR. MILAKOVIC: No. It actually goes 6 You at some point in time entered your 6 back. On the same page, back up to December 11th of 7 appearance in the case of Eric L. Nicastro a/k/a 7 2009, entry of appearance. a Nicastro Chiropractor Health Center, is that correct? 8 THE WITNESS: That's correct. 9 A That's correct. 9 BY MR. PYKOSH: 10 Q Was it about February of 2010 when you 10 Q So December of 2009? 11 entered your appearance? 11 A Right. 12 A I believe the record will reflect exactly 12 Apparently, Mr. Osterling did not 13 when I entered my appearance, but I have no specific 13 withdraw until February 2nd. 14 recollection. 14 Q Sobel 1 was a page from the Chapter 13 15 Q I'm going to show you a document. This 15 plan. I believe it was page 3 of the Chapter 13 plan, 16 is actually an attachment to one of the pleadings. 16 is that correct? 17 Could you take a look at that document 17 A It so appears, yes. 18 for me? 1s MR. PYKOSH: We'll mark this as Sobel 15. 19 A Are you going to have it identified? 19 (Chapter 13 Plan dated September 21 20 MR. PYKOSH: We'll have it identified as , 20 2004, marked Sobel Exhibit No. 15.) 21 Sobel 14. 21 BY MR. PYKOSH: 22 (U.S. Bankruptcy Court docket marked 22 Q In that you were Mr. Nicastro,s attorney 2 3 Sobel Exhibit No. 14.) 23 and you indicated that you reviewed the documents 2 4 , 24 does that appear to be the Chapter 13 plan that was 2 5 BY MR. PYKOSH: 25 filed, the entire plan? Geiger AL Lor>Ia reporting Service 1-800-222-4577 Joseph B. Sobel, Esq. 13 Page 49 Page 51 1 A It does. 1 to go through when we're doing this record is it your , 2 Q In taking a look at this plan, there were 2 understanding that each one of these documents that 3 no provisions for a cramdown in this plan, is that 3 are filed, that the case number is imprinted on the 4 correct? 4 document and that's one of the entries on the bottom 5 A I think that for purposes of clarity, 5 of Sobel 16? 6 could you tell me what you mean by cramdown? 6 A That appears to be the case. 7 Q Under 11 U.S.C. 506(a), cramming, there's 7 Q The next entry next to the case number 8 a specific portion of the plan that addresses a e refers to doc 34. Would that coincide with Document 9 cramdown. Was there a cramdown addressed in this 9 Number 34? to plan? 10 A I would so assume. 11 A If you would be so kind as to show me the 11 Q You assume, but you re not sure? 12 provision to which you're referring. 12 A 1 didn't have anything to do with the 13 Are you talking about paragraph 12 here? 13 filing of these documents. 14 Q Yes, 12(ii) there on page 5. Is there 14 MR. MILAKOVIC: I'll stipulate that's the is anything in the plan, in that section regarding 15 case. 16 cramdown? 16 MR. PYKOSH: I just wanted to relate back 17 A I think the document speaks for itself in 17 to the docket sheet. The docket sheet identifies the 19 that regard. 18 docket number, the docket and also the document 19 Q That's fine. 19 number. And then the document number is referred to 20 The debtor in this case was Eric L. 20 in each one of the documents so that it's easier to 21 Nicastro a/k/a Nicastro Chiropractic Health Care, is 21 refer to a document by a document number . 22 that correct? 22 BY MR. PYKOSH: 23 A As far as I know, yes. 23 Q Mr. Sobel, you had previously testified 24 Q At some point in time, you did represent 24 that you represented or filed or were involved in 25 Salvatore and Livia Nicastro after the discharge of 25 probably over a thousand bankruptcies, is that Page 50 Page 52 1 the Eric Nicastro case, is that correct? - 1 correct? 2 A I was engaged solely for the purpose of 2 A Yes. 3 attempting to negotiate resolution of that claim in an 3 Q When you filed a motion, have you won 4 amicable manner, if possible. 4 every one of your motions before the bankruptcy court? 5 MR. PYKOSH: I'm going to mark as Sobel 5 A Not that I recall. 6 16 this document here. 6 Q Could you tell me what your billable rate 7 (Order dated August 26, 2005, marked 7 is? 8 Sobel Exhibit No. 16.) 8 A I have no single billable rate, and the 9 BY MR PYKOSH: 9 reason is that I try to honor what I believe to be an to Q Just to try to have a more complete to ethical obligation to charge reduced fees for people 11 record, Sobel No. 5 was the stipulation that you 11 in certain distressed situations. 12 testified earlier, is that correct? 12 If I am representing a creditor and I 13 A I'll take a look. 13 think that there is a reasonable prospect of success 14 Q Look and see if that's correct. , 14 then my hourly rate would be let's sa $250 an h 15 A That's correct. , y, our. 15 If it's a case that, for example, isn't 16 Q Sobel 16, what I just handed you there, 16 likely to result in a substantial financial recovery, 17 is an order of Judge France adopting that stipulation 17 that hourly rate is likely to be lowered accordingly 18 along with the attached stipulation, is that correct? 18 when the results are known. 19 A It appears to be. 19 Similarly, representing debtors, I may 20 Q If we take a look at that document there, 20 begin with that nominal rate if I'm doing a Chapter 11 21 Sobel 16, can we look at that in conjunction with 21 reorganization for a business. 22 Sobel 14, the docket sheet? 22 But a consumer case, even recently I've 23 Just for clarity of the record, on the 23 taken on cases for below $200 an hour, $150 an hour. 24 bottom of Sobel 16, there is the printed out in darker 24 It varies depending upon the circumstances. 25 ink sort of like a time stamp there. And I just want 25 MR. PYKOSH: Again, just to make a more uelger & Loria.Reporting Service 1-800-2224577 Joseph B. Sobel, Esq. 14 Page 53 Page 55 1 complete record, Sobel 17. 1 the system, the underlined documents appear as a 2 (Order dated March 9, 2010, marked Sobel 2 different color as well online. And those are the 3 Exhibit No. 17.) 3 documents that can be retrieved from the system b 4 BY MR. PYKOSH: 4 y clicking on the number. 5 Q Would you agree that that is the answer 5 Q Back when you were trying to obtain 6 in response to your objection to Claim Number 9? 6 AmeriChoice Federal Credit Union's motion from relief 7 A Since we have the docket here, I'll take 7 of automatic stay, originally when you went to the 8 a moment to compare notes. This is document 59. The a docket sheet at that time not as of now was there a 9 docket reflects that that's what the document is. 9 , , document 10 listed on the sheet but not underlined? 10 Q Mr. Sobel, prior to your entry of 10 A That would be the way it would have 11 appearance in December of 2009, you weren't involved 11 appeared, yes. It was there but -- wait. I'm not 12 at all in the Eric Nicastro d/b/a Nicastro 12 exactly sure, come to think of it. 13 Chiropractic bankruptcy, is that correct? 13 Q You don't remember9 What happened, is 14 A Not as attorney of record. 14 what I'm trying to ask? 15 Q When did your involvement in the case 15 A If I remember correctly, what we got was 16 begin? 16 some kind of signal when we clicked on the number that 17 A If I remember correctly, I was contacted 17 the document wasn't available. It appeared to be 18 by Dr. Nicastro after he was served with the trustee's 18 available if you looked at the online PACER page, but 19 motion to dismiss. So somewhere at that point. 19 we were unable, actually, to retrieve it. It was an 20 Q Sometime after the entry that indicates 20 unusual situation. It doesn't occur very frequently. 21 that the trustee's motion to dismiss was filed in 21 MR. MILAKOVIC: That's the only question 22 2009, correct? 22 I had. 23 A To the best of my recollection, yes. 23 (The deposition was concluded at 24 MR. PYKOSH: I don't have any other 24 12:05 p.m.) . 25 questions. I would just obviously move for the 2s Page 54 Page 56 1 admission of my exhibits. 1 STATE OF PENNSYLVANIA : § 2 MR. MILAKOVIC: Likewise. 2 COUNTY OF DAUPHIN 3 MR. PYKOSH: We're going to put them all 3 4 in. 4 I, Donna J. Fox, a Reporter-Notary Public 5 MR. MILAKOVIC: I don't have any 5 , authorized to administer oaths within and for the 6 objection. 6 Commonwealth of Pennsylvania and take depositions in the 7 I just have one question in response to 7 trial of causes, do hereby certify that the foregoing is the 8 something you raised about the docket sheet. a testimony of Joseph B. Sobel, Esquire. 9 9 I further certify that before the taking of 10 REDIRECT EXAMINATION 10 said deposition, the witness was duly sworn; that the 11 11 questions and answers were taken down stenographically b the 12 BY MR. MILAKOVIC: 12 y said reporter Donna J. Fox, a Reporter Notary-Public 13 Q If you look on the docket sheet that was 13 , approved and agreed to, and afterwards reduced to typewriting 14 printed out on 3/8. I guess it's Sobel 14. 14 under the direction of the said Reporter. i5 A Okay. 15 I further certify that the proceedings and 16 Q Do you see that there are entries under 16 evidence contained fully and accurately in the notes by me on 17 the column for -- well, the column just has a number 17 the within deposition, and that this copy is a correct 18 symbol, a document number. Some entries have 18 transcript of the same. 19 underlines under them, like number 1; some entries 19 In testimony whereof, I have hereunto, 20 have no underline on them, like entry 2; and then some 20 subscribed my hand this 18th day of March, 2011. 21 entries don't have a document number at all. 21 . 22 Do you know what the difference is? For 22 23 example, document 1 is underlined and document 2 is 23 i Donna J. Fox, Reporter 24 not underlined. Do you know what that means? 24 My commission expires: 2 5 A If I remember correctly from working with 2s April 7, 2012 Geiger & l.oria reporting Service 1-800-2224577 F-Fr, (b) Class I Priorit Claims Under 11 U.S.C. 507 (i) Allowable Claims to Former S ouse Under 11 U.S.C. 507 a 7 to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (ii) Allowable Tax Claims Under 11 U S C &507(a)(8)(A) 4G) to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (c) Class II Secured Claims (1) Secured Debts which will not extend be and the len th of the Plan: Creditor or Lienholder: SBA / AMERICHOICE FCU Amount of Allowed Secured Claim: $43,560.00 Monthly Payment : $726.00 Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: 6% Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: (ii) Secured Debts which will extend be and the length of the Plan: Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: All Claims not otherwise specified shall be paid outside the plan as per prior business dealings. Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc • IN THE UNITED STATES BANKRUPTCY C( OF THE MIDDLE DISTRICT OF PENNSYLV. IN RE: ERIC L. NICASTRO DB/A NICASTRO CHIROPRACTIC, Debtor f I EHE . J HARRPSBURO T DEC 7 A `- U.. •. court 4. C1e DOCKET No.1-04-bk-05727-MDF CHAPTER 13 AMERICHOICE FEDERAL CREDIT UNION'S MOTION FOR RELIEF FROM THE AUTOMATIC STAY AmeriChoice Federal Credit Union, by and through its attorneys, Saidis, Shuff, Flower & Lindsay, files this Motion for Relief from the Automatic Stay and respectfiilly sets forth in support thereof the following: FACTUAL BACKGROUND 1. This Court has jurisdiction in this matter under 11 U.S.C. §§ 105, 361, 362(d) and Bankruptcy Rules 4001 and 9014. 2. AmeriChoice Federal Credit Union ("Lender") has a regional office at 20 Sporting Green Drive, Mechanicsburg, Pennsylvania 17050. 3. Eric L. Nicastro d/b/a Nicastro Chiropractic Health Center (the "Debtor") is an adult individual with an address of 288 Bradley Circle, New Cumberland, Pennsylvania 17070. 4. The Debtor filed its Petition for relief under Chapter 13 of the United States Bankruptcy Code on or about September 21, 2004. 5. The Debtor executed, assigned and delivered to Lender a Motor Vehicle Installment Sales Agreement in the original principal amount of $19,699.34 made on or about January 22, 2004 (the "Loan'). The Loan is secured by a properly executed and perfected security interest in a 2003 Jeep Liberty (the "Collateral"). Case 1:04-bk-05727-MDF Doc 10 Filed 12/07/04 Entered 1 1o 6. The Debtor has failed to make the payments due to Lender under the Loan. 7. As a result of Debtor's default in making payment to Lender, the Debtor is indebted to Lender in an amount equal to or greater than the value of Debtor's non-exempt equity in the Collateral. 8. Subsequent to the filing of the Petition, the Debtor has failed to -make all payments due to Lender, and interest, late charges, attorneys' fees and costs continue to accrue. 9. There is insufficient equity in the Collateral to provide Lender adequate assurance of full repayment. 10. If Lender is stayed from enforcing its rights under the Loan Documents, Lender will be irreparably harmed. BASIS FOR RELIEF FROM AUTOMATIC STAY 11. Lender is entitled to relief from the Automatic Stay with respect to the Debtor and the Collateral for cause, pursuant to 11 U.S.C. Section 362(dxl), including any, or any combination, or all of the following reasons: a. The Debtor has been and continues to be in default of payments due under the Loan Documents; b. The indebtedness secured by the Loan Documents and the other liens on the Collateral is continually increasing as a result of accruing interest, costs, expenses and fees; and c. For some or all of the forgoing reasons, the Bankruptcy Estate is suffering continuing loss or diminution. Case 1:04-bk-05727-MDF Doc 10 Filed 12/07/04 Entered 12/07/04 0 d. For some or all of the forgoing reasons, the Estate's and Lender's equity in the Collateral is continually eroding. C. For some or all of the forgoing reasons, Lender's interest in the Property is not adequately protected. 12. Lender is entitled to relief from the Automatic Stay with respect to the Collateral pursuant to 11 U.S.C. Section 362(d)(2) because the Debtor does not have sufficient equity in the Collateral, and the Debtor has voluntarily sought to return the vehicle, and the vehicle is not part of Debtor's efforts to reorganize. 13. Lender is entitled to the relief requested because the continuation of this proceeding will result in unreasonable delay by Debtor that is prejudicial to Lender and other creditors. 14. The undersigned has sought and received verbal concurrence to relief from the automatic stay as to the above-described Collateral. WHEREFORE, AmeriChoice Federal Credit Union requests that this honorable Court enter an Order: a. Terminating the Automatic Stay as to Lender, and the indebtedness of the Debtor to Lender, and as to the Collateral as described above, and permitting Lender to exercise any and all rights and remedies available to Lender with respect to the Collateral under the Loan Documents and otherwise at law or in equity, including, without limitation, repossession and sale as to the Collateral; and b. Waiving the provisions of Rule 4001(a)(3), otherwise extending the automatic stay an additional ten days beyond the entry of an order granting stay relief; and Case 1:04-bk-05727-MDF Doc 10 Filed 12/07/04 Entered 1 r C. Granting such other relief as this Court may deem just and proper. & LINDSAY Date: December 3, 2004 By: Matthew J. EshViaan, Esquire ID #72655 2109 Market Street, Camp Hill, PA 17011 (717) 737-3405 (fax) 737-3407 Attorneys for AmeriChoice Federal Credit Union Case 1:04-bk-05727-MDF Doc 10 Filed 12107/04 Entered 12/07104 • IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO DOCKET No,1-04-bk-05727-MDF D/B/A NICASTRO CHIROPRACTIC, Debtor CHAPTER 13 CERTIFICATE OF CONCURRENCE I, Matthew J. Eshelman, Esquire, of the law firm of Saidis, Shuff, Flower & Lindsay, certify that I have spoken with Lee Oesterlin& Esquire, Attorney for the Debtor, and that he concurs with the relief requested in the Motion for Relief from the Automatic Stay filed on or about November 18, 2004, in the above captioned matter. I further certify that on that same date I spoke with Chapter 13 Trustee, Charles J. DeHart, III, and that he likewise concurs with relief requested in the attached Motion for Relief from the Automatic Stay. SAIDIS, & LINDSAY Date: December 3, 2004 By: Matthew J. Esh an, Esquire ID #72655 2109 Market Street, Camp Hill, PA 17011 (717) 737-3405 (fax) 737-3407 Attorneys for AmeriChoice Federal Credit Union Case 1:04-bk-05727-MDF Doc 10 Filed 12107/04 Entered 12/07/04 08:48:39 Desc 1 IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO : DOCKET No. 1:04-bk-05727-MDF DIB/A NICASTRO CHIROPRACTIC, Debtor CHAPTER 13 CERTIFICATE OF SERVICE I, Matthew J. Eshelman, Esquire, of the Em of Saidis, Shuff, Flower and Lindsay, P.C., hereby certify that I this day served a true and correct copy of AmeriChoice Federal Credit Union's Motion for Relief from the Automatic Stay upon the parties listed below via United States Mail, postage prepaid, addressed as follows: Eric L. Nicastro 288 Bradley Circle New Cumberland, PA 17070 (Debtor) Lee Eric Oesterling, Esquire 42 East Main Street Mechanicsburg, PA 17055 (Attorney for Debtor) Charles J. DeHart, III, Esquire P.O. Box 410 Hummelstown, PA 17036 (Chapter 13 Trustee) SAIDIS, LINDSAY Date: December 3, 2004 By: Me ?- Matthew J. Esquire ID #72655 2109 Market Street, Camp Hill, PA 17011 (717) 737-3405 (fax) 737-3407 Attorneys for AmeriChoice Federal Credit Union Case 1:04-bk-05727-MDF Doc 10 Filed 12/07/04 Entered 12107/04 IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO DOCKET No.1-04-bk-05721 D/B/A NICASTRO CHIROPRACTIC, Debtor CHAPTER 13 ORDER AND NOW, this day of 2004, considers n of the Motion for Relief from the Automatic Stay of AmeriChoice Federal Cr 't Union, IT IS HEREBY ORDERED THAT the automatic stay is immediately lifted, i.e., w ving the sta of order of Fed. R. Bankr. P., Rule 4001(x)(3), as it applies to AmeriChoice Fed Credit Uni n, and as to the indebtedness of the Debtor due to AmeriChoice Federal Credit Uni n, and as to e (,oirlateral° described in the 1.Vlotion and AmeriChoice Federal Credit Union is free to pro ed with its rights and remedies available with respect to °such Collateral under the. te, the :Sec ty Agreement, the Guarantee and otherwise at law or in equity, including, wi hout limitati n, AmeriChoice Federal Credit Union's rights under the Pennsylvania Uniform C mmercial C de and filing : suit on 1h, ;Security Agreement yaud/o aand exec against he Ct? Collateral upon any Judgment entered on the Note, Security Agreement and/or uarantee w 'ch evidences and secures Debtor's indebtedness to AmeriChoice Federal Credit U ' n. BY THE COURT: Distribution: Lee E. Oesterhn& Esquire, for Debtor C W" J. DoHsM 11L Esquire, as Trustee Matthew Eshelman, Esquire, for Creditor Case 1:04-bk-05727-MDF Doc 11 Filed 12108104 FILED J. DEC - 8 Clerk; U'S. Bankrupwy ,,ow Entered 12/08/0413-:5-9:04 A IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO : DOCKET No.1:04-bk-05727-MDF D/B/A NICASTRO CHIROPRACTIC, : Debtor : CHAPTER 13 OBJECTIONS TO DEBTOR'S CHAPTER 13 PLAN FILED BY AMERICHOICE FEDERAL CREDIT UNION AmeriChoice Federal Credit Union, a secured creditor of the Debtor in this case, objects to the confirmation of the Chapter 13 Plan proposed by the Debtor, and represents the following in support of the objections: FACTUAL BACKGROUND 1. This Court has jurisdiction in this matter under 28 U.S.C. § 157(b)(2)(L), 11 U.S.C. §§ 105, 1322, 1325, and Bankruptcy Rules 3015(f) and 9014. 2. AmeriChoice Federal Credit Union ("AmeriChoice") is a federal credit union organized and existing under the laws of the United States of America, with its principal office located at 20 Sporting Green Drive, Mechanicsburg, Pennsylvania 17050. 3. Eric L. Nicastro d/b/a Nicastro Chiropractic Health Center (the "Debtor") is an adult individual with an address at 288 Bradley Circle, New Cumberland, Pennsylvania 17070. 4. The Debtor filed his Petition for relief under Chapter 13 of the United States Bankruptcy Code on or about September 21, 2004. 5. AmeriChoice is the holder of a secured claim against the Debtor. AmeriChoice's claim is evidenced by the following: (A) a U.S. Small Business Administration Note dated Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 1 of 4 1?. . . October 14, 2003, in the original principal amount of $40,000.00, known as SBA Loan No. GP 665 042 40 02 HBG (the "SBA Note"); (B) a vehicle loan dated January 22, 2004, in the original amount of $19,699.34, known as account number 30202/32 (the "Vehicle Loan"); (C) a personal Visa known as account number 4202-9000-0005-6886 (the "Personal Visa"); and (D) a business Visa known as account number 4202-9000-0007-0473 (the "Business Visa"). A copy of the SBA Note is attached hereto as Exhibit "A" and is incorporated herein by reference. 6. The SBA Note is secured by a Security Agreement dated October 14, 2003, (the "Security Agreement") pursuant to which Debtor granted to AmeriChoice a security interest in the Collateral described in Schedule A of the Security Agreement, which security interest was perfected by the filing of a UCC-1 Financing Statement on November 24, 2003 (the "UCC-1" ). A copy of the Security Agreement and a copy of the UCC-1 are attached hereto as Exhibit "B" and are incorporated herein by reference. 7. Debtor's parents, Salvatore Nicastro and Livia Nicastro, (the "Guarantors") guaranteed the SBA Note by executing and delivering to AmeriChoice an Unconditional Guarantee dated October 14, 2003 (the "Guarantee"). A copy of the Guarantee is attached hereto as Exhibit "C" and is incorporated herein by reference. 8. On February 16, 2005, AmeriChoice filed a Proof of Claim in the total amount of $62,945.79. This amount is comprised of the amounts due, as of the Date of Filing, under the SBA Note, the Vehicle Loan, the Personal Visa, and the Business Visa. Pursuant to an Order of this Court dated December 8, 2004, AmeriChoice was granted the right to sell the vehicle Debtor purchased with the proceeds of the Vehicle Loan, and the vehicle was subsequently sold for $15,000.00, leaving a deficiency balance of $3,251.10 still due to AmeriChoice under the Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 2 of 4 Vehicle Loan. Post-petition costs, interest, and fees continue to accrue to the extent permitted under the Code. 9. Debtor is in default of his pre-petition obligations to make the payments due to AmeriChoice under the SBA Note, the Vehicle Loan, the Personal Visa, and the Business Visa. OBJECTIONS OF AMERICHOICE TO PLAN AmeriChoice objects to confirmation of the Debtor's Plan for the following reasons: 1. The Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1325(a)(6). Specifically: (a) Debtor has no verifiable source of income. As such, Debtor is not verifiably able to afford the payments proposed under the Chapter 13 Plan; and/or (b) Debtor's expenses appear to be estimated based upon a projected budget established without a regular source of income. As such, Debtor is not verifiably able to afford the payments proposed under the Chapter 13 Plan. 2. In the alternative, the Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1322(a)(1). Specifically: (a) Debtor has no verifiable source of income. As such, Debtor is not verifiably able to provide for the submission of all disposable future earnings of the Debtor to the supervision and control of the Trustee. (b) Debtor's expenses appear to be estimated based upon a projected budget established without a regular source of income. As such, Debtor is not verifiably able to provide for the submission of all disposable future earnings of the Debtor to the supervision and control of the Trustee. 3. Moreover, the Plan may not be confirmed because it fails to satisfy the requirements of 11 U.S.C. § 1325(a)(3). Specifically: Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 3 of 4 (a) Debtor's plan purports to exercise the protections of 11 U.S.C. § 1301(a)(1)(stay of action against codebtor). However, Debtor's proposed payment schedule under the Plan does not provide sufficient money to pay the claim of AmeriChoice, together with interest and costs, under § 1301(c)(2). To the extent that the Plan seeks to prohibit any action against the Guarantors for any amount not proposed to be paid through the Plan with interest and costs, the same must be said not to have been proposed in good faith. WHEREFORE, AmeriChoice Federal Credit Union prays that this Honorable Court sustain its objections and deny confirmation of the Debtor's Plan, and grant such other relief to which AmeriChoice may be entitled, or which the Court determines to be just and equitable, including the right to pursue the Guarantors, Salvatore and Livia Nicastro, should Debtor's Plan not propose to pay in full the claims of AmeriChoice, and that this Honorable Court schedule a hearing on these objections. Respectfully submitted, SAIDIS, SHUFF, FLOWER & LINDSAY Date: March 18, 2005 By: /s/ Matthew J. Eshelman Matthew J. Eshelman, Esquire ID #72655 2109 Market Street, Camp Hill, PA 17011 (717) 737-3405 (fax) 737-3407 Attorneys for AmeriChoice Federal Credit Union Case 1:04-bk-05727-MDF Doc 19 Filed 03/18/05 Entered 03/18/05 16:10:26 Desc Main Document Page 4 of 4 t IN THE UNITED STATES BAN,KRUPTCX COUR'T' OF THE IM ME DTSTPJCT OF PENNS'YLVAMA IN RE: EMC L. N)ICASTIt4 DOCKET No. I:04.-b k 057"27-NM D/B/Al. MCAr,STRO C) ROPR A,CI'IC, Debtor ; CHAPTER 13 s ?uTION NOW COME the Movant, ArneciChoiee Federal Credit Union, by and through its attorneys, SAIDIS, SHUFF. FLOWER $c LMSAX, in the PM= of Matthew T. Eshelman, Esquire. and ft Debtor, Eric X.. Nicastro, d/b/a Nicastrv Chiropractic, by and through his attorney, Lee E- Omtcrling, Bapire, and stipulate as follows: I. This Covert has jurisdiction in this matter under 28 U.S.C. § 157(b)(2)(L), 11 U.S.C. §§ 105, 362.1322, 1325, and Batdaupltcy gales 3015(f) and 9814. 2• AmedChoice Federal Credit Union ("AmeriChoiec") is a federal credit union organized and existing under the laws of the United States of America, with its principal office located at 20 Sporting Green Drive, Mechttniosburg, Pennsylvania 17050. 3. Eric L. Nicastro d/b/a Nicastro 0ropractic Health Center (the "Debtor") is an adult individual with an ,address at 288 Bradley Circle, New Cumberland, Pennsylvania 17070. 4. AmeriChoice is the holder of a secuxed, claim against the Debtor. AmeriChoice's claim is evidenced by the following: (AI,) a U.s. Small Business Adcninistx~ation Note dated October 14, 2003, in the original prixcipal amount of $40,000.00, known as SBA Loan No. GP 665 042 40 02 HBGr (the "SBA Note'l; (B) a vehicle loan dated January 22, 2004, in the original amount of S I9,699.34, knonwn as aceoum number 30202/32 (the "Vehicle Loan"); (C) a pmonal Visa known ss,account number 4702.9000-0005-6886 (the "Personal Visn"); and (D) a hisiness - v case 1 _04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc ------ ----- --Mair?-Docurnwt__-Pages`1 of5_ - -- i? .i . .1 • II y: ,C 11 ,M i i j l..i? ,I el ,Idi 41 ' YI I 1 + I ., „ .1 I' i e •?a ?e 1 IJOb1?J13 P_ 0") Visa k1jo 813A emote . accoun fiber 4202-9000"O0 - attached h o 7 X73 (the "Business V" 13xE?ibit ate Parents' Salvatore Ni aOd i9.inco tsa ?. q copy of eXec "mho and Zivia Nlcas?, (the fixated ,herein, by renec• sW dE1iv ?sat°i btor's ( < e r0 Anle 8u?ranteed `Gtt?tee")• ""Conditional the the S'ba N Deote by hereirx by ref Copy of the ?ree is attar? ??>ee dares October 74 ?tce. here a, ?`hibit -)3,, ?d , ? X03 5. The xs x?ncO,CpO Debtor Oiled big pates f 8a*? Code sad his 6 `? 13 p? On or or roabout$W ? tinder ?* 13 Of the Unified Sftft . On Or about March I$ "'PIftber?1, 2004. pier 13 pI? , ads, Amami d sbtc ire ? azively' btor' filed its ObJecrions ?btor s dispo ', to the Tr?? Or that s 'F'lag failed to turn o all sable ?ra? t nes p Of Debtar, lan was not s v4ftl feasible due to 7. The Dci+?nt Public i ebror is c„rrea?r[y pro • . in (City), (State), as a wxdin8 chiropractic Medical (CO) oir rtaer/ dices , i , f ' on/psrtnership/ PlaOf farmed to the geraI r r and S ' „d $ k 'astitu 77), a mess acati'tty of (the practice ? red the State o f o of (state), h., 8. er°Fractic virx i. The Debtor MediGZi)c/??) (the $ a prhicipal O'd wiI one chxropta?c medicine in 1 continue maintai ss ?, : It 11 the the license state Of (Statc)• rhe Debtor ? a valid license rhi , to Practice 9 ?' days "ill Provide e EriChoiCe vvitb The ? 'Warlnaaa'D?tOr bas, and v?ilI ? a COPY s compensad ?binve to a in& ?atxl lasui?e ?,,?? Nance, The Debtor 1. days provide qm for ni erjC,haico aat$ Proof of Case 1: q?_bk-oS 727-AMF D,oc 33 Filers nn..,_._ 71 j,5 6 6 &s1'S N •, •ri•r?bbe.sl.s r++ 10. Within thirty days of the end of each semi-annual period, the Debtor will provide A•meriChoicc with a statement of the assets and liabilities of the Business for the Mods ending June 30, 2005, December 31, 2005, June 30, 2006. 11. The Debtor will provide AmeriChoice with copies of quarterly state and federal income tax returns of the Business on or before they are due to the appropriate axing authorities, through and including *0 quarterly period ending June 30, 2006. 12. The Debtor will make all paymextts to the Chapter 13 Trustee as and when due under the U.S. Bankruptcy Code and Debtor's Chapter 13 Plan. 13. In July of 2006. Ameddioice and Delxor will review the feasibility of Debtor's Plao and the viability of the Business. If upon review, ArmiCh:oiee remains unconvinced of the feasibility of Debtor's Plan, AmeriChoice sball have the right to petition the Court for relief from stay in order to proceed agaaast the Debtor, the GuararnoM and/or the Small Business Administration. 1 1, .1 1 1 1. Y :.1 •h • 'w ? i 1 q i 1 • h• i a. 14. The willingrms of AmeriChoice to accept and abide by the terms of this ' II Stipulation, with particular refereme to the concerns rained in the Objections regarding the lack 1. of verification of Debtor's income, are condWoned upon the continuiq guaranty of the Guarantors. An=iChoice must remain s*ectively assured of the Guarantors' contiuuing (•? f• i ability to guarantee the SBA Note. In the event AmeriChoice believes, in subjedtive good faith, h as that the Cmamtors' ability to guarantee the $B,A,1`iotc is or may be in jeopardy, AmeriChoice, a .u may file a Certificate of Default outlining its conc" with specificity, with ten day's' notice and ! . opportunity to cure provided to the Debtor by United States mail to his address of record, with a copy to Debtor's counsel by facsimile or electronic trail transmission, allowing AmeriChoice Ya Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/0511:21:34 Desc r of 5 -- ctuer>t- _P_ags ------ r . 114 I I 1 ; i i+ .I r? a 1 I 1 rcUar Own she mrm xtk stay as pCtytecwed hi %* eo4ebtowr tiny of Soetion 1301, to Pawcrd *dl* 4w Qam$ rrs. dr, Smsli 2ftm m Admw m ftL or both. 1 Is. In the eveut odw MIS to comply vrnth toy of dw coodidofu set FO& is this 59ti st om upon tea dav4` notice tad oopartesty to cute protrW to the Dd tat by TWm4 States u=1 his addam Or mow& with a cW to Debt es eotmet by fambmIe or ekeegnic tog ftwomb4om Am%iCiva;c-- may swWt to dram Care a CAvrsseste of DeA t dkwbig AfaoXhake irk ffmR die aueataaot c stay m p "Wibcd io the ab-*Mor. 047 of Secdod 1701, ( to pm*xd sont dw Gwnw%v& the Svr4 ljlgtaom AdminisentiwL or bo#n. AuxaXboiee 3} fWA& temvu the d& to bong 4 mod" for revef from stay to Pawed "*w Debtor, or a uw4on to d swu or aontrcmft uoul"Meat. 16. 'Clair Sdpuiatiun •taaelves tit, Objecdons by A=ftW {ce to Debtor. CNq.13 P14n, allowing d,e iNen 14 be eat,famod cad tUa Tru me to begin 46uracoent of tstnyineats. f ). Thc•tutties v{ttae tl,ac x. faaq;q,ile xitp++KUR of dds dacumctu abal) bt eas„iadertzt as tai 66810s1 siVWutr_gad that this StipuIW0n li.4ypmvtd as an Order of Coca. I.R. 11th Supvlaiion m,ay be e. tocuW i+, any cntmt,er of wdnimp tv. IN WlMIMS WREP-EQF, dta ltsrtkahere m" xe tWrltands ottd reois: v ft Acwraep Aar DM*r 42 Eric Ma{a Stftt UtcblmiaAW4 PA 1709.5 , , Case 1:04-bk-05727-MDF Doc 33 Filed 08125/05 Entered 08/25/05 11:21:34 Desc -- r --..._.__.._-----WaiA. )oCua*nt------P-ageAg5 I, Date: 0 l1'rS66E3 i13 P. Ob 1 . Attoi&e for;4 acriChoioe 2109 Market Street Camp X11, PA 17011 Date: G" ` by/for Charles . DcHart, III, Nuire Stitt ug Chapter -13 Trustee P.O. Box 410 Humminown. PA, 17109 Case 1_04-bk-05727-MDF Doc 33 Filed 08125/05 Entered 08/25/0511:21:34 4D"c„ r, i II r ., I a ,? i I. II Ir rl II ? .p ..p t•?u 41 81 dl i , pl LI r• ?i 1 I 1 1 A 1 I? .q i d k. I : 11 I . wl 1.. i•?4 ! 11 Id 1 ? 11 :11 'A n J; Form I UNITED STATES BANKRUPTCY COURT MiddlC DISTRICT OF Name of Debtor _ c: r airs norm snoutd not be used to make a claim for an administrative -expense arising jitter the commencement case. A "request' for payment of an administrative expense may be filed pursuant to 1 I U.S.C. § 503. of Creditor (Thee person or other entity to whom the dehMr money or property): Federal Credit Union o Matthew 7. Eshehnan, Esquire aidis, Shuff, Flower & Lindsay, P.C. 1109 Market street. Hill, PA 17011 SSA GP 665 042 40 02 HBG 1. Basis for Claim ? Goods sold ? Services performed ® Money loaned ? Personal injury/wrongful death ? Taxes ? Other of the filing of your claim, enclose a Stamped, self. If all or part of your claim is secured or entitled to priority, also conVick Item 5 or 7 below). (Priority) (Total) ® Check this box V claim includes interest or other charges in addition to the Principal amount of the claim. Attach itemized statement of all interest or additional charges. . 4. Total Amount of Claim at Time Case Filed: S S. Secured Claim. ® Check this box if your claim is secured by collateral (including a right of setoff). Brief Description of Collateral: ? Real Estate (3 Mgt Vehicle ® OthcrE Value of Collateral: S ? Amount of arroarage and giber charges at time case filed incl Wed in secur:d claim, if any: s A 6. Unsecured Nouprioity Claim S ® Check this box if. a) dare is no collateral or lien securing your claim, or b) your claim exceeds the value of the property seeming it, or if c) none or only part of your claim is entitled to pnonty. Check box if you are aware that anyone else has filed a proof of claim relating to your claim. Attach copy of statement giving particulars. Check box if you have never received say notices from the bankruptcy court in this case. Chock box if the address differs from the address on the envelope seat to you by the court. Check here ?replaces if this claim a previously filed claim, dated: ? Retiree benefits as defined in I I U.S.C. § It 14(a) salinics, ? LAW Waim fear ftb offS SS n (611 out below) Unpaid compensation fors performed from to Unsecured Priority Claim. ?Check this box if you have an unsecured priority claim Amount entitled to priority $Specify the priority of the claim: ? Wages, salaries, or commissions (up to $4,925),+ earned within 9o days before tiling of the bankruptcy petition or cessation of the debtor's business, whichever is ear --er- I I U S.C. § S07(ax3). ? Contributions to an employee benefit plan . 11 U.S.C. § 507(ax4). ? Up to 52,225" of deposits toward purchase, lease or rental of property or cervices for personal, family, or houselwld use - I I U.S.C. § 507(4)(6). ? Allmon . maintenance, ors rt owed to a spouse, former spouse, or dill - 11 U.S.C § 507(a)(? ? Taxes or penalties owed to governmental units-I1 U.S.C. § 507(a)(8). 0 Other - Specify applicable paragraph of I 1 U.S.C. § 507(a)(__). •Amounk are subject to adjuriment on 411107 and every 3 years thereafter with respect to case commenced on or t0er the date of ad/'Ortsrent. 8. Credits: The amount of all payments on this claim has been credited and deducted for the this proof of claim. purpose of making 9. Supporting Documents: Attach copier of supporting documents such as promissory notes, purchase orders, invoices, itemized statements of running accounts, eontraets, cotut judgments, mortgages, security agrecrumis, and evidence of porfaction of lien. DO NOT SEND ORIGINAL DOCUMENTS. If the doc meets are not available, explain. If the documents are volumbous, attach a summary. 10. Date-SUMPed Copy` T.O addressed envelope and cbNl .f- L Eshelrnam, Esquire THIS SPACE IS FOR COURT USE ONLY PA t-"'- i y. n. r ._. I L 4 Clerk, U.S. Bankruptcy Cot daisy: Fine of up to 5500,000 or imprtaom t for up to 5 yens, Or both, 18 U.S.C. if 152 and 3571. Case 1:04-bk-05727-MDF Claim 7-1 Filed 02/22/05 Desc Main Document 0 . w UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA ATTACHMENTS/EXHIBITS EXIST FOR THIS CLAIM, THEY ARE AVAILABLE FOR REVIEW IN THE CLERK'S OFFICE OR YOU MAY REQUESTA COPY FROM THE CLAIMANT Clerk, U.S. Bankruptcy Court • • -MDF Claim 7-1 Filed 02/22105 Dew Main Document Page 2 1:04-bk-5727-MDF Debtor Eric L. Nicastro Detail to Proof of Claim of Creditor AmeriChoice F.C.U. DUE AS OF 09/20/04 SBA Loan Vehicle Loan Personal Visa Business Visa TOTAL DUE $ 37,758.90 $ 18,146.78 $ 2,275.19 $ 4,764.92 $ 62,945.79 It is anticipated that the claim will require amendment to reflect the post petition surrender of Debtor's vehicle, and the application of the proceeds of liquidation to the vehicle loan. Note also that Debtor's Plan currently proposes to pay only such portions of the obligation to AmeriChoice as are guaranteed by Salvatore and Livia Nicastro, and to pay the same as a secured tier claim. Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02!22/05 Desc attachments _/ Amer Khoice* Md FEDERAL CREDIT UNION Building Relationships For Life Monday, August 23, 2004 Eric Nicastro Nicastro Chiropractic Health Center 1010 Wesley Drive Mechanicsburg, PA 17050 Dear Eric Nicastro: As of 8/24/2004 the payoff amount for loan GP6650424002 is as follows: Principal 37,003.54 Interest 489.16 Late Fee 60.40 Penalty Amount 0.00 Other Fees 0.00 - Total Due $37,553.10 Daily Accrual $7.35 Should you have any questions or concerns please contact me at (717) 591-1266. Sincerely, Dallas Zulli Business Lending Officer Main Office. 2175 Bumble Bee Hollow Road • Mechanicsburg, PA 17055 • Phone: (717) 697-3474 • Fax: (717) 697-3713 Websik- www.americhoice_org rim •??41?a•? kaw :047bk-057274MDF Claim 7-1 Part 2 Filed 02122/05 Des c att chman ts EAPAnA j'"1O 11/17/2004 WED 16:44 FAX 717 697 3713 AseriChoice FCV MS2003S DALLAS Acct/Suffix. 30202 A ICHOTCE FEDERAL ACCOUNT INQUIRY / 32 Name Group....... C Type-_ UV Balance, Terms, 6 Pa off oan oun Balance... ... 17, _ Payment Amt... Cred Limit.... .00 Partial Pmt... .27 Interest Rate.. ..... 5.490 Memo Interest.. .. .00 Term... 66 To Payoff Date .... Payoff Amnt Payo 61 ... il/17/04 ... l Interest Due... 239.52 Dail T-1-- t y eres 2.691 Late Chg Due.. 15.00 Late Charge Information FP ie e o Fixed Amount..... 15.00 Paid This Yr.. 15.00 ec 'Lons FY=Co]L.1 a eain Description. Dates pene . First Due... Next Due.... Last Tran... Maturity.... r1 NICASTRO, ERIC 16:08:14 2003 JEEP LIBER USED VERICLE Codes and Status x'72 7M Payment req e o _ 2/15/04 Note Number.... . 14125 9/15/04 Secure/Purpose.- Uv / uT 8/20/04 Loan Officer......... B 0/00/00 Comaker Y/N......... N .osed...... 0/00/00 Last Update. 0/00/00 To be Paid.. 12/15/09 Last Int Clc 8/20/04 1096 Reportable.... Fixed/Variable..... Interest Rebate?... Open/Closed End.... Delinquent Notices. Insurable? N C •-- 0 Insurance Source.... 00 Dlq Day 30 60 90 120+ DYearCtoLDate Interest Imes., 01 00 urren . Currently dlq 63 days Previous- .00 Dlq amnt... 1036.15 ca aYo = ev Z 002/005 CREDIT UN 11/11/04 (Loan Information) Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02/22/05 Desc attachments ..11/17/2004 WED 16:44 FAX 717 697 3713 Amer iChoi ce FCD X004/005 MS2031S DAL MOICHOICE FEDERAL CR S LAS Third Party Card - EDIT UN Cardholder data 11/17/04 - Account: 30202 Name: NIMSTAU ?=C 16:08:44 Car Number: 4202-9000-0005-6886' SSN: 131-60=2078 Date of Last Use: 11/12/04 d ....... -- - , 2 880 00 Cash Limit ....... Available .. , . 2,880.00 Beginning Ba ance.: Purchases 275.19 ' Authorizations 00 _ Cash .... '00 Due Date ... AutoPay .... 10/10/04 ...... Payments .." . Credits ... .00 30-64 ........ Last Payment Amt ....___ Finance Charge . .... Min Payment Due. •... Amount Delq 30.64 2,275.00 .... Late .............. Insurance '" .00 .00 ........ 22.00 '"" --- Current Bal ....... 00 2,275 18 Blocks oc Code . •• B Bill Code 4 Grou s P Other Dates . Reclass Code • - 5 5 St t ` ` • ' ' ' m t t Group. . Hill Uode.. _ ._ ._ - . . Acct Ba^ ??rn Iriforatign, Current AS. ,0,f; 11,/12/0 Last Payment •••-•• Last Purchase ...... L 10/01/04 2/01/04 ast Cash Advance .. 8/05/01 Antr- rece ess = F3 Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02122/05 Desc attachments :1t/ j1/ZUU4 WEE 16:45 FAX 717 697 3713 AmeriChoice FCU 2005/005 ?MS2031S ASICHOICE FEDERAL CREDIT UN* 11/17/04 DALLAS Third Party Card - Cardholder data 16:08:56 Account: 35506 Car Number: 4202-9000-0007-0473 SSN: 131-60-2078 --- Name: NICAS RO C11rR PR , NICASTR Date of Last Use: 11/12/04 Cre it Limit .._.._+ Cash Limit . -- 10,000.00 10 000 00 Aeginning Balance.. P 4,764.92 Available .......... , . .00 urchases Cash ...--..-. .00 Authorizations .,, Payments.. ..... •00 Due Date ........... 10/10/04 Credits ....... 52.37 AutoPay ............ Last Payment Amt.... 52 37 Finance Charge .. .00 .00 Min Payment Due...._ . 4,764.00 .. Late ?" " ...... insurance .00 Amount Delq ........ 47.00 ......... Current Bal ....... .00 4,764.9' Blocks Sloe r-Code .. B Bill Code t Groups Other Dates .. Reclass Code .. 5 5 i Code. ._ Stmt Grou .. A H111 oCC...... ... Last Payment ... - .. 10/01/04 p cct Base I,nforrt?ation Current, As, Of 1 1 Last Purchase Last C h .. 6/13/04 ' . as Advance 5/30/04 n r-- rocess = z revioIIs Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02/22/05 Desc attachments Page LAW OFFICES SAIDIS, SHUFF, FLOWER & LINDSAY JOHN E SLIKE A PROFESSIONAL CORPORATION ROBERT C. SAIDIS 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 CARLISLE OFFICE: GEOFFREY S. SHUFF TELEPHONE: (717) 737.9105 26 W. HIGH STREET JAMES D. FLOWER, JR FACSIMILE; (717) 797 31p7 CARLISLE, PA 17013 CAROL J. BRIAN J. LINDSAY www.ss&law.com PHONE: (717) 2936222 GEORGE F. DOUGLAS, III FACSIMILB (717) 243-64M MATTHEW J ESHELMANt THOMAS E. FLOWER REPLY TO CAMP HILL JACLYN SMITH EMAIL: nmhdnm*ssfl-law.eom February 18, 2005 Clerk of the Bankruptcy Court U.S. Bankruptcy Court Middle District of Pennsylvania P.O. Box 908 Harrisburg, PA 17108-0908 RE: Eric L. Nicastro d/b/a Nicastro Chiropractic, Debtor Case No. 1:04-bk-05727-MDF, Chapter 13 Dear Sir or Madam: Enclosed are the original and two (2) copies of the Proof of Claim of AmeriChoice Federal Credit Union. Please treat this Proof of Claim as being filed on February 16, 2005, per discussion with Nadine Petrina, as it was "filed" electronically on the 16th. Kindly record the two copies and return them to the undersigned in the enclosed self-addressed, postage-prepaid envelope. matter. If you have any questions, please contact me. Thank you for your assistance in this Very truly yours, SAIDIS, SHUFF, FLOWER & LINDSAY Matthew Eshelman, Esgi re MJE:se Enclosures cc: Dallas J. Zulli (w/enc.) Charles J. DeHart, III, Esquire (w/enc.) Lee Eric Oesterling, Esquire (w/enc.) t Board Certified by die Amenam Board of Cerhfieghm = Creditom' Rights Representation Case 1:04-bk-05727-MDF Claim 7-1 Part 2 Filed 02/22/05 Desc attachments Page i FORM BIO (Official Form 10) (04/04) UNITED STATES BANKRUPTCY COURT Middle DISTRICT OF Pennsylvania Name of Debtor ERIC L. NICASTRO Case Number 1:04-bk-05727-MDF NOTE: This form should not be used to make a claim for an administrative expense arising after the commencement of the case. A "request' for payment of an administrative expense ma be fil d y e pursuant to I I U.S.C. § 503. Name of Creditor (The person or other entity to whom the debtor owes money or property): ? Check box if you are aware that anyone else has tiled a proof of AmeriChoice Federal Credit Union claim relating to your claim. Attach copy of statement giving Name and address where notices should be sent: particulars. ? Ch k ec box if you have never :/o Matthew J. Eshelman, Esquire received any notices from the 3aidis, Shuff, Flower & Lindsay, P.C. bankruptcy court in this case. 109 Market Street, Cam Hill, PA 17011 ? Check box if the address differs Telephone number (717) 737-3405 from the address on the envelope sent to you by the court. SBA GP 665 042 40 02 HBG 1. Basis for Claim ? Goods sold ? Services performed ® Money loaned ? Personal injury/wrongful death ? Taxes ? Other 4. Total Amount of Claim at Time Case Filed: $ PROOF OF CLAIM Check here ? replaces if this claim a previously filed claim, dated: 02/22105 ? Retiree benefits as defined in 11 U.S.C. § 1114(a) ? Wages, salaries, and compensation (fill out below) Last four digits of SS #- Unpaid compensation for services performed from (date) (unsecured) (secured) (priority) -"~r If all or part of your claim is secured or entitled to priority, also complete Item 5 or 7 below. (Total) ® Check this box if claim includes interest or other charges in addition to the principal amount of the claim. Attach itemized statement of all interest or additional charges. 5. Secured Claim, ® Check this box if your claim is secured by collateral (including a right of setoff). Brief Description of Collateral: ? Real Estate ? Motor Vehicle ® Other Business Assets Value of Collateral: $ _See Plan Amount of arrearnge andQthh$res AAme case filed included in secured claim, if any: $ 1 t 6. Unsecured Nonprioity Claim Si 10,291.21 ® Check this box if. a) there is no collateral or lien securing your claim, or b) your claim exceeds the value of the property securing it, or if c) none or only part of your claim is entitled to priority. 7. Unsecured Priority Claim. ? Check this box if you have an unsecured priority claim Amount entitled to priority $ Specify the priority of the claim: ? Wages, salaries, or commissions (up to $4,925)," earned within 90 days before filing of the bankruptcy petition or cessation of the debtor's business, whichever is earlier - I I U.S.C. § 507(a)(3). ? Contributions to an employee benefit plan - 11 U.S.C. § 507(a)(4). ? Up to $2,225r' of deposits toward purchase, lease, or rental of property or services for personal, family, or household use - I I U.S.C. § 507(a)(6). ? Alimony, maintenance, or support owed to a spouse, former spouse, or child - I 1 U.S.C. § 507(a)(7). ? Taxes or penalties owed to governmental units-11 U.S.C. § 507(a)(8). ? Other - Specify applicable paragraph of 11 U.S.C. § 507(a)(___). *Amounts are subject to adjustment on 411/07 and every 3 years thereafter with respect to cases commenced on or after the date of adjustment. 8. Credits: The amount of all payments on this claim has been credited and deducted for the purpose of making this proof of claim. THIS SPACE IS FOR COURT USE ONLY 9. Supporting Documents: Attach copies of supporting documents, such as promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, court judgments, mortgages, security agreements, and evidence of perfection of lien. DO NOT SEND ORIGINAL DOCUMENTS, If the documents are not available, explain. If the documents are voluminous, attach a summary. 10. Date-Stamped Copy: To receive an acknowledgment of the filing of your claim, enclose a Stamped, self- addressed envelope and copy of this proof of claim Date Sign an print the name an , i any, o e c for or Personau on to e this claim (attach copy of power of attorney, if any) 0/21/2005 E=-meylfor ew J. Eshelman, Esquire Creditor Penaky for presenting fraudulent claim: Fine of up to $500,000 or imprisonment for up to 5 years, or both. 18 U.S.C. §§ 152 and 3571. Case 1:04-bk-05727-MDF Claim 9-1 Filed 12/21/05 Desc Main Document Page 1 of 1 1:04-bk-5727-MDF Debtor Eric L. Nicastro Detail to Amended Proof of Claim of Creditor AmeriChoice F.C.U. DUE AS OF 11115105 Secured Claims SBA Loan $ 37,003.54 principal balance 4,027.81 past due interest 483.20 past due late fees 7,426.90 attorneys fees and costs $ 48,941.45 + continuing interest General Unsecured Claims Vehicle Loan $ 3,251.10 after application of proceeds from sale of '00 Ford Personal Visa $ 2,275.19 Business Visa $ 4,764.92 TOTAL DUE $ 59,232.66 Case 1:04-bk-05727-MDF Claim 9-1 Part 2 Filed 12/21/05 Desc Exhibit A - Detail of claim Page 1 of 1 `a IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO, aka NICASTRO CHIROPRACTIC HEALTH CENTER, Debtor ERIC L. NICASTRO, aka NICASTRO CHIROPRACTIC HEALTH CENTER, Objectant Case No. 1:04-bk-05727-MDF Chapter 13 V. AMERICHOICE FEDERAL CREDIT UNION, Claimant DEBTOR'S OBJECTION TO AMENDED PROOF OF CLAIM #9 OF AMRRIC'HOIC F, FEDERAL CREDIT UNTO nT Debtor Eric L. Nicastro, aka Nicastro Chiropractic Health Center ("Debtor"), by his attorney, Joseph B. Sobel, avers in support of his objection to the Amended Proof of Claim filed by AmeriChoice Federal Credit Union ("AmeriChoice"), as follows: Case 1:04-bk-05727-MDF Doc 54 Filed 02/10/10 Entered 02/10/1020:37:13 Desc Main Document Page 1 of 5 J IF 1. On September 21, 2004, Debtor filed his Voluntary Petition and Chapter 13 Plan, providing for payment to AmeriChoice of $43,560.00 on its secured claim guaranteed by the United States Small Business Administration (SBA). 2. On February 22, 2005, AmeriChoice filed Proof of Claim #7, consisting of a secured claim in the amount of $62,945.79. 3. On March 18, 2005, AmeriChoice filed an Objection to Confirmation of Debtor's Chapter 13 Plan. 4. On June 28, 2005, a hearing was held indicating the aforesaid Objection was resolved by Stipulation, to be filed within 30 days. 5. On August 25, 2005, a Stipulation was filed by AmeriChoice which resolved its objections, and in which AmeriChoice agreed to accept the amount of $43,560.00, as stated in Debtor's Plan, as payment in full of all amounts claimed in relation to the secured SBA-guaranteed claim, as reflected in Proof of Claim #7. 6. On August 26, 2005, this Court entered an Order approving the aforesaid Stipulation of August 25, 2005. 2 Case 1:04-bk-05727-MDF Doc 54 Filed 02/10/10 Entered 02/10/10 20:37:13 Desc Main Document Page 2 of 5 7. On September 28, 2005, this Court entered an Order Confirming Debtor's Chapter 13 Plan. 8. On December 21, 2005, notwithstanding the aforesaid Stipulation of August 25, 2005, AmeriChoice filed Amended Proof of Claim #9, which included the aforesaid secured SBA-guaranteed claim, totaling $48,941.45, in addition to three unsecured claims totaling $10,291.21, for a aggregate amount of $59,232.66. 9. The trustee has now paid to AmeriChoice the amount of $44,986.41, which exceeds the stipulated amount of $43,560,00, thereby fully satisfying the claim, and objection is made to any amount claimed in excess of the stipulated sum. 10. Collection of any claimed amount in excess of the stipulated amount of _ $43,560.00 has therefore been waived by AmeriChoice. 11. Having received and accepted as payment in full, the sum of $43,560.00, AmeriChoice is estopped from claiming any amount in excess of that sum. 12. By receiving and accepting the sum of $43,560.00 as payment in full, AmeriChoice has entered into an accord and satisfaction with regard to the aforesaid secured SBA-guaranteed claim. 3 Case 1:04-bk-05727-MDF Doc 54 Filed 02/10/10 Entered 02/10/10 20:37:13 Desc Main Document Page 3 of 5 AF' WHEREFORE, Debtor respectfully requests that Amended Claim #9 of AmeriChoice Federal Credit Union, to the extent that it purports to claim any amount in excess of $43,560.00 in relation to the aforesaid secured SBA-guaranteed claim, be disallowed. 13. Debtor incorporates paragraphs 1 through 12 by reference. 14. The sum of $7,426.90 is claimed in the aforesaid Amended Proof of Claim #9 as "attorney's fees and costs" in relation to the aforesaid secured SBA-guaranteed claim. 15. In fact, the legal services for which reimbursement is claimed in relation to the aforesaid secured SBA-guaranteed claim were almost entirely related not to the secured SBA-guaranteed claim, but to the three other discrete unsecured claims included in Amended Proof of Claim #9. 16. In the alternative, there is no reliable means of ascertaining what, if any, legal fees or expenses were incurred specifically in relation to the aforesaid secured SBA-guaranteed claim, as distinct from the three unsecured claims stated in Amended 4 Case 1:04-bk-05727-MDF Doc 54 Filed 02110/10 Entered 02/10/10 20:37:13 Desc Main Document Page 4 of 5 Proof of Claim #9. 17. The legal fees and expenses claimed by AmeriChoice in Amended Proof of Claim #9 are excessive. 18. The legal fees and expenses claimed by AmeriChoice in Amended Proof of Claim #9 are not actual, reasonable or allowable. WHEREFORE, Debtor respectfully requests that the claim of AmeriChoice Federal Credit Union be disallowed as to any and all claimed attorney's fees or expenses. Respectfully subni tted, .q4, la =h R SohPl Joseph B. Sobel, Attorney for Debtor Eric L. Nicastro, aka Nicastro Chiropractic Health Center I.D. No. 17715 P.O. Box 828 Harrisburg, PA 17108-0828 (717) 234-2200 Case 1:04-bk-05727-MDF Doc 54 Filed 02/10/10 Entered 02/10/1020:37:13 Desc Main Document Page 5 of 5 POST OFFICE Box 828 HARRISBURG, PA 17108-0828 LAw OFFmcros OF JOSEPH S. SOBri L SUITE 202 - CRAN111 1.u;r Coux•r 212 NORTH Tuaw STRXIeT HARRISBURG, PA 17101-1305 (717) 234-2200 February 3, 2010 BY FACSIMILE TRANSMISSION AND FIRST CLASS MAIL Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 RE: Eric L. Nicastro, aka Nicastro Chiropractic Health Center Bankruptcy Case 1:04-bk-05727-MDF Your Client: AmeriChoice Federal Credit Union Chapter 13 Trustee's Motion to Dismiss Dear Mr. Pykosh: Tm.jxo ii.v (717) 234-2211 This will confirm our discussion following yesterday's hearing. I have had no response to my letter to Mr. Dethlefs of December 18, 2009. Nor has the requested documentation been provided. I have since had the opportunity to review this situation in greater detail. A number of questions arise with respect to Proof of Claim number 9, filed on behalf of AmeriChoice. Only one of the four discrete stated claims is secured. No documentation or calculations relating to any of the four claims is attached. The sum of $7,426.90 is claimed as "attorney's fees and costs" in relation to the secured claim only. However, I am aware of no evidence of the provision of or need for legal services in relation to that claim. Nor is it to be assumed that legal fees in that amount in relation to a secured claim with a principal balance of only $37,003.54 would be actual or reasonable. In that regard, I note that 20% of the principal balance would be $7,400.71, suggesting that the legal fee may in fact be based on a percentage of the principal balance. As we discussed, I believe that the only way to resolve this question is to review all itemized invoices paid by AmeriChoice, in relation to legal services rendered in connection with the secured claim alone. I requested that you furnish legible copies without delay. Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC February 3, 2010 Page 2 I am informed that any resolution reached in this matter will need to extend not only to the debtor but also to co-signors or guarantors, particularly in light of recent collection activity instituted by Mr. Dethlefs. In that regard, I am aware of no evidence establishing liability on the part of any co-obligor with respect to the three unsecured claims included in Proof of Claim number 9. Inasmuch as the claim for legal fees grossly exceeds the amount the Chapter 13 Trustee asserts as necessary for completion of the present plan, this matter must be resolved before the debtor can determine the need for filing of an amended plan. As you are aware, the debtor has only ten days from February 1 in which to decide how to proceed, and the hearing_has been continued to February 10. Thank you for your cooperation. Sincerely, d641' 1r Joseph B. Sobel JBS/jic cc: Dr. Eric L. Nicastro Darrell C. Dethlefs* Michael J. Pykosh* Bryan W. Shook Melanie L. Erb Heather N. Orisko Marlene Tremmel John R.Logan** Patrick Ivkovich Paul D. Daggs David C. Dagle Trudy A. Marietta Mintz*** 11J .l1 1 R_1L,L1'?7?1 .L x%.u3rt I-,AVV WWUP, LL 2132 Market Street U Counsel Camp Hill, PA 17011 Robert J. DeSousa Phone: (717) 975-9446 Leal Staff 'roll Free: (0)) 287- 1202 Sherry L. Deckman* Fax: (717) 975-2309 Danielle Winn Li-mail: ddethlcfs(rr)aol.com Susan Disbrow www.dcdlaw.net Kathleen R. Nuspl Jacqueline Windus *Lirensed PA 7711e Agents **Admilled to the NJ Bar •**Admilled to All) Bur February 9, 2010 Joseph B. Sobel Law Offices of Joseph B. Sobel Suite 202 Cranberry Court 212 North Third Street Harrisburg., PA 17101-1505 VIA Fax and Regular Mail RE: Eric L. Nicastro a/k/a Nicastro Chiropractic Health Center Bankruptcy Case: 1:04-bk-05727-MDF Dear Attorney Sobel: Pursuant- to our conversation of last week, enclosed please find the billing invoices for the firm of Said'.is, Shuff, Flower & Lindsay. Please feel free to contact ire. Very truly yaurs, r Michael J. Pykosh MJP/drw Enclosure 4 N. George Street P.O. Box 368 A, PA 17401 Camp Hill, PA 17001-0368 The Dethlefs-Pykosh Law Group, LLC- "Your Full Service Law Firm" 408 W. Chestnut Street Lancaster, PA 17603 A Dphf R.H.f Aooni.a. LAW OFFICES SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREEF JOEN E. S1.1 k-F CAM I' I I I LL, PENNSYLVANIA 17011 ROBERT C SAIDIS TELEPHON L (717) 737-3405 - FACSIMILE (717) 737-3407 GEOFFREYS SNUFF EMAIL attorneyfssf]-laW.com JAM"r51). FLOWER, JR WWU'.ssfl-IaW.COm CAROLJ. LINDSAY BRIAN' C. CAFFIZEY GEORGE F. DOUCLAS,1 R MATTHEW J. ESHELMANt THOMAS E. FLOWER LI:WSAYGINGRICH MACLAY J ACLYN SMITH October 12, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Re: Bill for Services Rendered - Nicastro Chiropractic Health Center Dear Dallas: CARLISLE OFFICE 26 WEST HIGH STREET CARU.5LE PA17013 TELEPHONE. (717)2436222 FACSIMIL r: (117)243-6186 iloard Ce?o::e4 Cred,ori 3+d Repreltoawa REPLY TO CAMP HILL Enclosed with this letter please find the above-referenced bill. Of course, please call if you have any questions, As always, we appreciate the opportunity to be of service to you and the Bank. Thank you. Very truly yours, SAIDIS, SHUFF, FLOWER & LINDSAY GSSlgmk Enclosure JOHN E_ SLIKr• ROBERT C. SAIDIS GEOFFREY S. SHUFF JAMES D. FLOWER. JR CAROL). LINDSAY BRIAN C. CAFFREY GEORGE F. DOLGLAS III MAI7HEIV J. ESITELIVIA%4 THOMAS E. FLOWER LINDSAY GINGRICH MACLAY )ACt YN M. SMI'M SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MAIiKEI' STREET CAMP HILL.., PENNSYLVANIA 17011 "ITLF-TIHONI : (717) 737-34051 FACSIMILE: (717) 737-3407 EMALL: attomeyOssfl-law.com iv%t,w.SSfl-lawxojn October 11, 2004 AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 19836 CARLISLE OFFICE: 2h kVCS I I IIGH SPREE I CARLISLE, PA 17013 TI?LEPHON E: (717) 243.6222 FACSIMILE: (717)'-J43-64&, 'TNtinl Certified Cnddrm: Right% kPitsentabon REPLY TO CAMP HILL 031727 EIN:25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated November 21, 2003 $184.00 Payments received since last invoice $184.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 08/02/2004 Messages from Zulli; call to Zulli. 08/03/2004 Review file copies of loan documents; call to Zulli on default, set off and Chapter 13; message from Zulli. 08/04/2004 Messages from Zulli; call to Zulli on SBA contacts. 09/1412004 Message from Zulli; call to Zulli; call to Osterling's voieemail. 09/16/2004 Message from Zulli; call to Zulli; call to Osterling; call to Zulli's voicemail; message from Zulli. 09/23/2004 Messages from Zulh: call from Zulli; review file; call to Osterling's office and leave message. 09/28/2004 Message from Osterling; notes to file; message from Zulli; e-mail from Zulli; call to Zulli. TOTAL FEES $468.00 TIMEKEEPER RECAP Lary`-- a Hours Amount Shuff, Geoffrey S. 2.40 $468.00 031727 Nicaslro Chiropractic Flcalth C' Invoicet! 18836 Page 2 Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due TOTAL FEES $468.00 $468.00 ($93.60) $374.40 5374.40 ) PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. i,; ? i (r v «J r IN ,?$SaC rv JOH:. E. SLIKF ROBERT C. SAIDIS Gr:OFFREYS SHUFF- IAMES D- FLOWER, )I?. CAROL). UNDSAY QRIAN C. CAFFREY GEORGE F. DOUGLAS III MATTHEIV). ESHELMAN' 1 HOAIAS 1:. FLOWER LINDSAY GINGRICH MACLAY JACLYN M. SMITH SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL. CORPORATION 2109 MARKS'[' STREET CAMP HILL, PENNSYLVANIA 17011 'IELEP14ONl : (717) 737-3405 FACSIMILE-: (717) 737-3107 E-MAIL: attomeyCa)ssfl-la mcorn www.ssfl-law.com October 31, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 19566 CARLISLIi OFFICE: 26 %N B'l I I IGH S 110 1.1 CARLISI.E, PA 17013 1 L•LEPI IONL-: (717) 743-6272 FACSItiI[LE: (717) 243-bMe6 t ? Ikurd (rrt.b A ( wd.1m: 1:,? ICI. Reps enlalam REPLYTO CAMP IULL 031727 E1N: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated October 11, 2004 $374.40 Payments received since last invoice $374.40 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 10/05/2004 Review Chapter 13 Petition and Plan; review file; call to Zulli's voicemail; call from Zulli; instructions to JAS on PACER search and copies; brief review of Schedules; instructions to GMK on copies for Zulli. 10/06/2004 Message from Zulli; review file; call to Zulli's voicemail; call from Zulli; meet with Zulli. 10/06/2004 Meet with Zulli. (NO CHARGE) 10/06/2004 Instructions from GSS regarding file matters; review file; phone call with Oesterling; meet with Zulli; notes to file; prepare Praecipe To Enter Appearance; retrieve message from Oesterling; notes to file. 10/07/2004 Exchange messages with Tulli. (NO CHARGE) 10/12/2004 Phone call with Zulli; notes to file; review file; prepare litigation plan letter to Tulli. 10/2112004 Receive and review time-stamped entry of appearance; copy Zulli. 10/22/2004 Exchange a-mails with Zulli. TOTAL FEES $1,251.50 TIMEKEEPER RECAP 031727 Nicastro Chiropractic Health C ImvoicrA 19566 Page 2 Lawyer Shuff, Geoffrey S. Eshelman, Matthew J. Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due I tours Amount 2.20 $331.50 4.60 $920.00 TOTAL FEES S1,251.50 $1,251.50 ($250.30) $1,001.20 $1,001. PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. i JOHN E. SLIKE ROBERT C. SAIDIS GEOFFREY S.SHUFF JAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS III MATTHEW). ESHELMAN' THOMAS E. FLOWER LINDSAY GINGRICH MACLAY JACLYN I.J. SMITH SAIDIS, SHUFF, FLOWER 8T- LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREE°C CAMP HILL, PENNSYLVANLA 17011 TELEPHONE: (717) 737-3405 rACSIMILE: (717) 737-3407 EMAIL: attorneyCassfl-law.com www.ssfl-law.com November 30, 2004 Dallas Zulli AmeriChoice Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Our file# 922 Invoice# 19762 CARLISLE OFFICE: N, WES1 HIGHS! REL I CARLISLE, PA 17013 1 L-LEPHONE- (717) 243.6222 FACSIMILE.- (717) 243-648h 141kwrd Cvdilmd Ovdtl,v: fthtk Rcpm cmalum REPLY TO CAMP HILL 031727 EIN:25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated October 31, 2004 $1,001.20 Payments received since last invoice $1,001-20 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 11/17/2004 Phone call with Zulli; review file; check ECF; notes to file; prepare notes for Creditor's meeting. 11/18/2004 Travel to and attend Creditors meeting; notes to file; prepare letter to Tulli. 11/19/2004 Phone call with Zulli; revise letter to Zulli; prepare Motion for Stay Relief and Certificate of Concurrence. 11/23/2004 Revise Motion for Stay Relief; prepare letters. 11/24/2004 Receive and review fax from Zulli; revise Proof of Claim. TOTAL FEES $1,170.00 TIMEKEEPER RECAP Law er Hours Amount Eshelman, Matthew J. 6.40 $1,170.00 TOTAL FEES $1,170.00 93172'; Nicastro Chiropractic Health C: Biliin? S? Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due Invoiceft 19762 $1,170.00 ($234.00) $936.00 $936.00 Page 2 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at l 1/2% per month on unpaid balance after 30 days. zsS..za__ X. AtJ JOHN E. SLIKE ROBERT C. SAIDIS GEOFFREY S. SHUFF JAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F DOUGLAS 111 Mr1ITHE11r). ESHELMAN' THOMAS E. FLOWER )ACLY14M. SMITH SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKLf'STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737 3405 FACSIMILE: (717) 737-3407 EMAIL: attorney@ssfl-law.min www.ssfi-law.com April 19, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 22314 REPLY TO CAMP III LL 031727 EIN:25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated November 30, 2004 $936.00 Payments received since last invoice $936.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 12/09/2004 Receive and review Stay Relief Order; copy Zulli; exchange a-mails with Zulli; notes to file. 01/11/2005 Exchange a-mails with Zulli. 01/27/2005 Phone call with Zulli; review file; check PACER; check Ramapo; prepare fax to Zulli. 02/08/2005 Receive and review Notice of Filing of Citibank Proof of Claim. 02/09/2005 Receive and review Notice of Hearing on Trustee's Objection to Plan. 02/14/2005 Revise Proof of Claim; prepare, review, and revise Exhibit to Claim. 02/16/2005 Review, revise, and electronically file Proof of Claim and Exhibit with Bankruptcy Court. Note: Court not currently accepting claims electronically notwithstanding what ECF website indicates; electronic entries to be corrected and claim filed manually and retroactively. 02/17/2005 Phone call with Zulli; notes to file; revise letter to Zulli; prepare fax cover sheet; no charge regarding corrections to filing format of Proof of Claim. 02/18/2005 Receive and review Notice of ERI entry of appearance. (NO CHARGE) 02/22/2005 Receive and review time-stamped hard copy of Proof of Claim; copy Zulli. (NO CHARGE) 02/23/2005 Receive and review Notice of Assignment of Claim. (NO CHARGE) 02/24/2005 Receive and review electronic notice of manual proof of claim filing. CARL]SL.L OFFICE- '-h WCS'I HIGH S't'REEI CARLISLE. PA 17013 'I L'Lt:PHONE: (717) 243.62L) FACSIMILE: (71') 243-64% •Hiwrd t crimed [ rrthtnn' fhghtc Reprewm ahm 031727 Nicastro Chiropractic Health C Invoiccll 22314 Page 2 02/28/2005 Receive and review time-stamped Proof of Claim; copy Zulli. TOTAL FEES 5682.50 TIMEKEEPER RECAP Lawyer Hours Amount Eshelman, Matthew J. 5.70 $682.50 TOTAL FEES $682.50 Billine Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due $682.50 ($136.50) $546.00 546.00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days d ? 5? .7 lf-3 - JOHN E. SLII:E RODER'l C.5AIDIS GEOFFREY S SHL:FF IAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAR C. CAFFRCY GEORGE F. DOLGLAS III Kv:rrHEW J. ESHELMAN- THOMAS E. FLOIVFR JACLY\ \i. ShiMH SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENINWIYANIA 17011 TELEPHONE: (717) 7 7-3405 FACSIMILE: (:17)7,;7-3407 EMAIL: attornevCTNsfl-la1A'.C0m VA-w _SSfl-law.coin June 1, 2005 Dallas Zulli AmeriChoice Credit Union P-0. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 22971 REPLY TO CAMP HILT. 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated April 19, 2005 $546.00 Payments received since last invoice $546.00 Accounts receivable balance carved forward $0.00 PROFESSIONAL SERVICES 03/02/2005 Receive and review Notice of REI Claim. (NO CHARGE) 03107/2005 Phone call with Zulli; notes to file: revise letter to Zulli; prepare, review and send fax to Zulh. 03/16/2005 Receive and review Notice of Hearing on Trustee's Motion To Dismiss now set for May 12, 2005; staff instruction; notes to file. 03/17,12005 Review and revise Objections to Plan. 03/18/2005 Phone call with Zulli; e-mail Zulli; phone call with Zulli; revise and electronicall y file Objections to Plan; receive and review confirmation notice. 03(21/2005 Receive and review Notice of hearing on our Objection to Plan; copy Zulli. 03122/2005 Receive and review request for proposed Order; prepare, review and file proposed Order, 03/23/2005 Phone call with Oesterling regarding intention of objection; phone call with Trustee's office regarding possibility of jointly administration objections; prepare letter to Zu11i. 04/14/2005 Receive and review e-mail from Zulli; review file; phone call with Oesterling's office; phone call with Trustee; e-mail Court regarding rescheduling April 19 Hearing. 04/18/2005 Prepare, review, revise and e-mail letter to Zulli. CARLISLE OM- CE: 2611T•.S'l HIGHSIREM CARI.ISI.E. PA 17013 1 L•'LEPI IONS: (7171243-0?' FACSIMILE (71:) 243-t4.* &mnd ( crlilad ( ndam, Right• Re, n,entabon 04/19/2005 Travel to and attend hearing regarding Objection; request continuance. (No 031727 Uicastro Chiropractic Health C lnvolce:4 22971 Pagc 2 CHARGE) 04/1912005 Receive and review Notice of rescheduled hearing; phone call to Oesterling. leave message, prepare, review. revise and e-mail ?notice to Oesterling widt cover letter; copy Zulli and Cook at Trustee's office; phone call with Zulli. 04!2012005 Phone call with Oesterling; notes to file; e-mail status report to Zulli. TOTAL. FEES 51.326.00 TIMEKEEPER RECAP Lawyer Hours Amount Eshelman, Matthew J. 8.00 $1,326.00 TOTAL FEES $1,326.00 Billing; Summ Total professional services $1,;26.00 Professional courtesy discount ($265.20) Total of new charges for this invoice $1,060.80 Total balance now due $1,060.80 '. t PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is'our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at I l/2% per month on unpaid balance after 30 days. ?:? 1 . a U55a?- - ?t G-? IOHN E.SLIKE ROBERI C. SAIDIS GEOFFREY S SHL'FF JAMES D. FLOWER, JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE r DOL:CLAS III RINITHEW). ESHELMAN THOMAS E. FLOWER JACLYV\i. SMITH SAIDIS, SNUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMJLF: (717)737-,A07 EMAlU aitorneyCtlssfl-lawcom %%,ww.ssfl4avv.com CARLISLE OFFICE 2n 1VF.S'I' HIGH s'I RFrt CARLISLE, PA 1701? 1 ELEPI LONE. (7171243fi222 FACSIMILE: (71:1243.p4 ,&wtd Crtblied LR¢t14tn Rights &Tm enlati,m REP[ Y TO CAMP HILL July 6, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 031727 Invoice# 23759 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated June 1, 2005 $1,060.80 Payments received since last invoice $1,060.80 Acca_unts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 05/11/2005 Phone call with Oesterling; notes to file; prepare, review, revise and e-mail letter to Zulu. 05/24/2005 Receive and review e-mail from Zulli; phone call with Zulli; review file; travel to and attend hearing on Objections to Plan; discussion with Oesterling; prepare, review, and e-mail letter to Zulli. 05/25/2005 Receive and review Notice of Rescheduled Hearing from Court; copy Zulli. 05/26/2005 Review and revise letter to Oesterling; e-mail Zulli. 06/13/2005 Prepare, review, revise and send e-mail to Oesterling; copy to Zulli. 06/20/2005 Receive and review e-mail from Oesterling; copy Zulli; review file. 06/21/2005 Receive and review fax from Oesterling; fax Zulli with cover letter. 06/23/2005 Phone call with Oesterling; phone call to Zulli, left message; phone conference with Zulli and Needs; notes to file; phone call with Oesterling; prepare, review, revise and e-mail letter to Oesterling; copy Zulli; prepare Stipulation. 06/27/2005 Receive and review letter from Zulli; check Ramapo; check ECF; check updated Hearing list; prepare, review, revise and fax letter to Zulli; receive and review letter from Zulli. 06/28/2005 Revise Stipulation; prepare letter to Zulli. 06/29/2005 Receive and review Order from Court regarding deadline for filing Stipulation; copy Zulli. 031727 NicasrTo Chiropractic Health C lnvoicc4 23759 Page 2 TOTAL FEES $1,642.50 TIMEKEEPER RECAP Law er Hours Amount Eshelman, Matthew J. 9.10 51,642.50 TOTAL FEES S1,642.50 Billing Surrun Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due $1,642.50 ($328.50) 5l ,314.00 51,314.?ir`. PRIVACY POLICY: During this fmw representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the represmiation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct_ Interest at 1 1/2% per month on unpaid balance after 30 days. sf if. Awl'- by JOHN E. SLIKE ROIIERI C. SAIDIS GEOFFREY S. SHUFF JAMES D. FLOWER, JR. CAROL). LINDSAY 3RIA\: C. CAFFREY GEORGE F DOUGLAS III AINI-I HE7YJ. FSHL•LMAN THOMAS E FLOWER MARYLOU NAT.AS 5U1.ANNE C. HIYENBAUGH SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPOP\ATION 21.09 MARKET STREET CAMP HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737.3405 FACSIMILE: (717) 737-13407 EMAIL: attorney@ssfl-law.com www.ssfi-law.com September 8, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 25011 CA11USLrOFFICr' <6WLS'I HICIISIRFf;I CARLISLE, C4 17013 ELEPHO\f: (717) 243.6222 FACSIMILE- (717) 243 6466 -Vox-r. Ccniwd ( nxLiw: R%14. Rcpn anlauon REPLY TO CAMP HILL 031727 BIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice bated July 6, 2005 $1,314.00 Payments received since last invoice $1,314.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 07/0612005 Re-transmit Stipulation by e-mail with cover letter to Zulli, Oesterling, and DeHart, 07/07/2005 Exchange a-mails with Zulli. 07/19/2005 Exchange messages with Needs; review file; phone call to Oesterling, left message; phone call with DeHart's office. 07/26/2005 Phone call to Oesterling, left message; notes to file. 07/28/2005 Phone calls with Zulli; exchange a-mails with Zulli; exchange a-mails with Oesterling; copy Zulli; phone call with DeHart's office; prepare, review, revise and electronically file Praecipe To Relist for Hearing; review file; notes to file; prepare, review, revise and e-mail letter to Oesterling; copy Zulli. 07/29/2005 Receive and review fax from DeHart; e-mail Oesterling and Zul li; receive and review e-mail from Zulli; staff instruction regarding costs. 08/01/2005 Receive and review Notice of Relisted Hearing; e-mail Zulli. 08/01/2005 Billing review; staff instruction to GK and LM; instructions from GSS; e-mail Zulli. (NO CHARGE) 08/02/2005 Receive and review e-mail from Oesterling; copy Zulli; receive and review e-mail from Zulli. 08/09/2005 Exchange a-mails with Zulli; review file; retrieve and review Wells Fargo Proof of Claim; copy Zulli. 08/15/2005 Phone call with Zulli at length; review file; check CM/ECF and Ramapo sites; notes 031727 Nicastro Chiropractic. Health C Invoicc4 25011 Page 2 to file; receive and review e-mail from Zulli; phone call with Zulli; notes to file. 0')/17/2005 Exchange a-mails with Zulli; phone call with Zulli; notes to file. 08/18/2005 Exchange additional a-mails with Zulli; two phone calls with Zulli; review file; notes to file. 08/19/2005 Exchange multiple a-mails with Zulli regarding deadline to obtain SBA approval of Stipulation and discuss options to proceed if approval not forthcoming-, review file; notes to file. 08/22/2005 Travel to and attend relisted hearing on objections to plan; preparation for hearing; notes to file; prepare, review, revise and e-mail letter to Zulli and Oesterling. 08/24/2005 Receive and review e-mail from Oesterling; forward to Zulli. 08/25/2005 Receive and review fax from Zulli; exchange a-mails with Zulli; scan Stipulation into pdf format; prepare proposed Order in pdf and word formats; file Stipulation and proposed Order electronically; e-mail word formatted version of proposed order to Court; confirm successful filing and copy ZulIi and Oesterling; exchange a-mails with Zulli. 08/31/2005 Receive and review signed Order approving Stipulation; prepare, review and e-mail letter to Zulli and Oesterling. TOTAL FEES $1,802.50 TIMEKEEPER RECAP Law Mr Hours Amount Eshelman, Matthew r. 10.90 $1,802.50 TOTAL FEES $1,802.50 Billing Summa Total professional services $1,802.50 Professional courtesy discount ($360.50) Total of new charges for this invoice $1,442.00 Total balance now due 442.00 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal inforrr,ation from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest of 1 1/2% per niondi ou unpaid balance after 30 days. r SEP .?. ..... _ .mot _ JOHN E. SLiKE ROBERT C. SAIDIS GEOFFREY S. SNUFF JAMES D. FLOWER. JR. CAROL J. LINDSAY BRIAN C. CAFFREY GEORGE F. DOUGLAS III him-niEW J. ESHELMAN4 THOMAS E. FLOWER MARYLOU MATAS SUZANNEC. HIXENGAUGH SAIDIS, SHUFF, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 2109 MARKET STREET CAN41' HILL, PENNSYLVANIA 17011 TELEPHONE: (717) 737-3405 FACSIMILE: (717) 737-3407 EMAIL: attorney@ssfl-law.com www.ssfi-law.com November 7, 2005 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 26475 CARLISLE OFFICE- 26 WETI I IIGI i 5fRI'C 1 CARLISLE, PA 17013 TELEPHONE: (717) 243-6222 FACSIMILE: (717) 293-6456 *(Bwrd (aftd dCrrtdito ' P gh!. Kepnvnln1n1 REPLY TO CAMP IifLl, 031727 EIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated September 8, 2005 $1,442.00 Payments received since last invoice $1,442.00 Accounts receivable balance carried forward $0.00 PROFESSIONAL SERVICES 09/16/2005 Receive and review e-mail from Zulli; review file; review billing; prepare, review and e-mail letter to Zulli. 10/03/2005 Exchange a-mails with Zulli; review file; prepare, review, revise and mail Notice of Default. 10/04/2005 Receive and review materials from Oesterling in response to certification of default; forward to Zulli with cover letter; receive and review time-stamped certificate of default; phone call with Oesterling; check ECF. 10/05/2005 Receive and review e-mail from Oesterling; review file; prepare letter to Oesterling; prepare letter to Zulli and send draft of Oesterling correspondence to Zulli for review. 10/07/2005 Exchange a-mails with Nicastro. 10/10/2005 Receive and review e-mail from Oesterling; e-mail Zulli. 10/13/2005 Receive and review lengthy e-mail from Nicastro; forward to Zulli with cover letter; receive and review e-mail from Zulli. 10/17/2005 Phone call with Zulli; review file; notes to file; prepare, review, revise and send letter to Oesterling. TOTAL FEES $612.50 031727 Nicastro Chiropractic Health C Invoice# 26475 Page 2 TIMEKEEPER RECAP Law Uer Eshelman, Matthew J. Billing Summary Total professional services Professional courtesy discount Total of new charges for this invoice Total balance now due ** Trust account remaining balance is $0.00 Hours Amount 3.50 $612.50 TOTAL FEES $612.50 $612.50 ($122.50) $490.00 j?149 } PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. afrs..a0 . K _ AJ J J/ UAI LCI YJb 14.10 ( 1 I44.1 J10 '3fA1u1J f t_uwt_f? 1 i.u L' U41 Li.) JOHN E. SLIKE ROBER:r C. SAIDIS GEOFFREYS. SHUFF JAMES D. FLOWER. JR. C:AROW. UNOSAY BRIAN C. CAFTRLY CWRGE F. DOUGLAS 11f MATTHEW 1. MiELMAN+ THOMAS E. FLAK ER MARYLOU MATAS SUZANNE C. HIXENOAUCH SAIDIS, SHUFF, FLOWER & LINDS A PROFESSIONAL CORPORATION 26 WEST HIGH STREET CARLISLE, PENN-3YLVAIIA 17013 TELEPHONE: (717) 243-6222 FACSTMILE: (717) 243-6486 EMAIL: attornev@ssfl-law.com www.ssf-law.com February 9, 2006 Dallas Zulli AmeriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated November 7, 2005 Payments received since last invoice Accounts receivable balance carried forward DATE DESCRIPTION CAMP HrLL OMCE: 2109 MARKET SrREFt CAMP H(Lt. PA 17011 TPUPHONE: (717)717 :3405 FACSIMILE: (7171717-341)7 tVn01d CcrtBed Gedimm, RirhN IRrilmooftinfinn REPLY TO CARLISLE Our filer 422 031727 Invoice# 28304 ETN: 25- 694606 $490.00 $490.00 $0.00 HOURS LAWYER 11/09/2005 Receive and review e-mail from Zulli; staff 0.20 $0.00 WE instruction. (NO CHARGE) 11/15/2005 Retrieve voicemail from Zulli; phone call with Zulli; 1.30 $227.50 MJE phone call with Trustee's office; review file; prepare Amended Proof of Claim. 11/29/2005 Receive and review e-mail from Zulli: staff 0.20 $0.00 WE instruction to JAS. (NO CHARCYE) 12/01/2005 Phone call with Zulli. (NO CHARGE) 0.20 $0,00 MJE 12/15/2005 Phone call with 7_ulli and Needs; phone call with 0.40 $70.00 MJE Trustee; fax Trustee; phone call with Zulli. 12/16/2005 E-mail Zulli. 0.20 $35.00 MJE 12/28/2005 Review file. No charge. 0.40 $0.00 BCC 01/05/2006 Telephone conferences with bankruptcy trustee 0.20 $35.00 BCC office, client representative. 01/12/2006 Telephone conference's, with trustee's of rice, client's 0.20 $35.00 BCC representative 01/12/2006 Letter to Trustee re: change of attorney No charge) 0.40 $0.00 BCC 01/13/2006 Arrange to deliver check; letter to Dalla:, Zulli 0.20 $35.00 BCC 01/17/2006 Telephone conference w/client; re: disbursement 0.20 $35.00 BCC U)3/k1J/V1-311b 1y:1b 031727 1 i Z(4Jb-)1YJ NicaStrO Chiropractic Health C JN I U I::) bMur r i L.UWV M lnvoicc4 283 01/19/2006 Review file. CNo charge) 0,80 01/20/2006 Review file. (No charge) 0.50 01/23/2006 Telephone conference w/Dallas Zulli; r?;check 0,20 whereabouts. (No charge) 01/23/2006 't'elephone conferences w/Dallas Zulli ,nd others, 0.30 re: lost check (No Charge) 01124/2006 Revicw file. (No Charge) 0.50 01/25/2006 Call Atty Osterling. 0.20 01/27/2006 Telephone conference w/Dallas Zulli, rr: status. 0.30 01131/2006 Access Bankruptcy Ct site. 0,80 TOTALS 8.00 Billine Summa Total professional sen?ices $700,00 Professional courtesy discount ($245,00) Total of new charges for this invoice $455.00 Total balance now due $d 00 * Trust account remaining balance is $0.00 j r-FAUC Eiji uJ Pagc 2 $0.00 BCC $0.00 ACC $0.00 RC(" $0.00 BCC $0.00 I3 CC $35.00 BCC $52.50 BCC $140.00 BCC $700.00 PRIVACY POLICY: During this firms representation of you, w may receive nonpublic, personal inf ation from you or from sources about you. It is our policy and practice that our attorneys and staff do not at anytime rev al information relating to our representation of you unless you consent after consultatior, except for disclosures that are impli ly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of ofessional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days <.,. ?xs.z aK lest SAIDIS, FLOWER & LINDSAY A PROFESSIONAL CORPORATION 26 WEST HIGH STREET CARLISLE, PENNSYLVANIA 17073 TELEPHONE: (717) 243-6222 FACSIMILE.: (717) 243-6456 1014N E. SLIKE EMAIL: attome C"fl-la-w.com y ROBERT C. SAIDIS JAMS D. FLOWER, JR. WWW.Sfl-IaW.C(1111 CAROL). LINDSAY MICHAEL L. SOLOMON BRIAN C. CAFFREY GEORGE F. DOUGLAS III THOMAS E. FLOWER MARYLOU MATAS SUZANNE C. HIXENBAUGH March 2, 2006 Dallas Zulli ArneriChoice Credit Union P.O. Box 1429 Mechanicsburg, PA 17055 Our file# 922 Invoice# 28577 CAMP ItILLOFFICE 21119 MARKEI'SI R1+.i CAMP HILL, PA 17011 TFLEPHO\E: (717) ,37 M(15 FACSIVILE (717) 737-34,07 REPLY TO CARLISI F 031727 BIN: 25-1694606 RE: Nicastro Chiropractic Health Center Balance forward as of invoice dated February9, 2006 Payments received since last invoice Accounts receivable balance carried forward DATE DESCRIPTION 02/02/2006 Telephone conference w/D. Zulli, re: status. 02/03/2006 Correspondence to trustee. (No charge) $455.00 $0.00 $455.00 HOURS TOTALS AMOUNT LAWYER 0.20 $35.00 BCC 0.40 $0.00 BCC 0.60 $35.00 031727 Nicastro Chiropractic Health C; Billing 'Ani-MM Total professional services Professional courtesy discount Total of new charges for this invoice Plus net balance forward Total balance now due ** Trust account remaining balance is $0.00 Invoice# 28577 $35.00 ($7.00) $28.00 $455.00 $483.00 Pane 2 PRIVACY POLICY: During this firms representation of you, we may receive nonpublic, personal information from you or from sources about you. It is our policy and practice that our attorneys and staff do not at any time reveal information relating to our representation of you unless you consent after consultation, except for disclosures that are impliedly authorized to carry out the representation, and except for disclosures required or authorized by the Pennsylvania Rules of Professional Conduct. Interest at 1 1/2% per month on unpaid balance after 30 days. c,. _. 4Z1 .4v I Lnmr OrF i ms or, JOSEPH B. SOBBL POST OFFICE BOX 828 Surm 202 - CRAM HERRT COURT H ARRIS14URG, FA 17108-0828 212 Nowrn Tmko S,rRFrT HARHISHUI.(y, PA 1.7101-15,05 (717) 234-2200 September 1, 2010 BY ELECTRONIC AND FIRST CLASS MAIL Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 RE: Salvatore and Livia Nicastro Your Client: AmeriChoice Federal Credit Union Dear Mr. Pykosh: TELECOPIER (7171234-2211 I have reviewed the materials you supplied, as well as pertinent parts of the record in the Chapter 13 case of Dr. Eric L. Nicastro. It is not practicable at this time to address all of the questions that arise as to the potential liability of Mr. and Mrs. Nicastro. I will, however, address a matter that is of immediate concern. AmeriChoice asserts that it has incurred certain legal expenses in relation to four discrete claims against Dr. Nicastro, as enumerated in its Proofs of Claim filed in the Chapter 13 case, its Objections to Chapter 13 Plan and the Stipulation resolving its Objections. The documentation you have provided evidently encompasses legal services claimed to have been rendered in connection with all four claims. Mr. and Mrs. Nicastro may be held liable, under any potential legal theory, exclusively with regard to the secured claim guaranteed by SBA. Despite the apparent effort to blur this distinction by consistently lumping together all four of its claims, AmeriChoice has presented no basis in fact or law upon which to assert a claim for purported legal fees related exclusively to the SBA guaranteed loan. If your client can identify legal services relating solely to the SBA guaranteed loan, I would request that you produce a full and accurate itemization. Otherwise, I have no basis. on which to advise my clients to resolve this matter, other than the incentive to avoid apparently frivolous litigation. Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC September 1, 2010 Page 2 I believe it would be appropriate to deal with this issue initially, since it relates to the greater proportion of your client's claim. If this question can be resolved, I am reasonably confident that settlement of the entire claim can be successfully negotiated. Very truly yours, jvtk ?3. Joseph B. Sobel JBS/jic cc: Mr. and Mrs. Salvatore Nicastro LAW (Yrr•un-.S OI POST Or riot Box 828 TTARRISBUNG. PA 17108-0829 JosrFx B. Sows r. SUIT11: 202- CRANBPRRY COURT 212 NoR ru T141RD STL EEN ITAh1r1tSI3URe, PA 171.01-1505 (717) 2:44-2200 TI!.1,r.cova 1r (717) 234-2211 September 10, 2010 BY FACSIMILE TRANSMISSION AND FIRST CLASS MAIL Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 RE: Salvatore and Livia Nieastro Your Client: AmeriChoice Federal Credit Union Dear Michael: Thank you for your letter dated September 9. 1 stand by the observations made in my letter to you of September 1. An additional question arises as to the validity of legal expenses relating to efforts that were either unsuccessful or not reasonably necessary. As a whole, in relation to results obtained, charges for legal services are, in my view, clearly excessive. Further, as 1 continue my legal and factual review of this matter, I find that a material question arises in relation to the collateral and its disposition. Your client's Proof of Claim No. 9 indicates that it is secured by collateral valued at $48,941.45, as of the time of the bankruptcy aling on September 21, 2004. On December 7, 2004, your client filed a Motion for Relief from Stay, with concurrence. Although an Order granting relief was filed on the following indication that the collateral was repossessed, stored or resold, ot sale there is proceeds were applied to the loan balance. Unless or until issues concerning legal fees and disposition of collateral, among others, are satisfactorily resolved, I cannot advise my clients to offer more than $5,000.00. In response to the threat of imminent litigation made in your letter dated September 9, that amount is offered by way of full and final settlement, without factual or legal admission of any kind. Michael J. Pykosh, Esquire Dethlefs-Pykosh Law, Group, LLC September 10, 2010 Page 2 Although other commitments have prevented me from discussing this matter with you in greater detail, I expect to be available most of next week. Meanwhile, my investigation of this matter continues, and you may anticipate that additional issues will be raised. Very truly yours, 00/&4, 9. ?Akoj2 Joseph B. Sobel JBS/jic cc: Mr. and Mrs. Salvatore Nicastro IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO, Case No.1:04bk-05727MDF aka NICASTRO CHIROPRACTIC HEALTH CENTER, Chapter 13 Debtor , ERIC L. NICASTRO, aka NICASTRO CHIROPRACTIC HEALTH CENTER, Objectant Re: Obj. To Claim No. 9 Docket No. 54 V. AMERICHOICE FEDERAL CREDIT UNION, Claimant ORDER UPON consideration of Debtor's Objection to Amended Proof of Claim #9 of AmeriChoice Federal Credit Union, in connection with the above-captioned proceeding, a response having been filed thereto, and a hearing held thereon, good reason appearing therefore, it is BIBRE13Y ORDERED AND DECREED that the Amended Proof of Claim #9 of AmeriChoice Federal Credit Union be disallowed to the extent that the amount claimed exceeds the amount payable to AmeriChoice Federal Credit Union under the debtor's confirmed Chapter 13 Plan. By the Court, Date: April 29, 2010 CfiMfllwauPbf? This document is electronically signed and filed on the same date. t" Case 1:04-bk-05727-MDF Doc 65 Filed 04/29/10 Entered 04/29/10 11:57.14 np.Gr rage i of l u CREDS, 2002, PlnCnfrmd, PreACT, CLOSED U.S. Bankruptcy Court Middle District of Pennsylvania (Harrisburg) Bankruptcy Petition #: 1:04-bk-05727-MDF Assigned to: Mary D France Chapter 13 Voluntary Asset Date filed • 09/21/2004 Date terminated: 06/22/2010 Debtor discharged: 05/19/2010 Debtor disposition: Standard Discharge Debtor Eric L Nicastro 288 Bradley Cr New Cumberland, PA 17070 SSN / ITIN: xxx-xx-2078 aka Nicastro Chiropractic Health Center represented by Joseph B. Sobel PO Box 828 Harrisburg, PA 17108-0828 717 234-2200 Fax : 717 234-2211 Email: DebtEnds@aol.com Lee Eric Oesterling Oesterling Law Offices 503 Bridge Street Suite 212 New Cumberland, PA 17070 717-635-9641 Email: pennsybk@msn.com TERMINATED: 0210812010 Trustee Charles J. DeHart, III (Trustee) 8125 Adams Drive, Suite A Hummelstown, PA 17036 717 566-6097 Acct IT C T...., s . . https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618 0-1 I/R/?01 t Vage 2 of 10 09/21/2004 I 1 I (RCP) (Entered: 09/22/2004) Matrix filed/Creditor List Uploaded Filed by Lee Eric Oesterling on behalf of Eric I, Nicastro (RE: related document(s) I ). (RCP) 09/21/2004 2 (Entered: 09/22/2004) Chapter 13 Plan Filed by Lee Eric Oesterling on behalf of Eric L Nicastro (RE: related document(s) 1 }. (RCP) (Entered: 09/21/2004 09/22/2004) Tentative Date for Meeting of Creditors. THIS IS SUBJECT TO CHANGE. 11/18/2004 at 09:00 AM. (RCP) (Entered: 09/21/2004 09/22/2004) Receipt of Voluntary Petition Filing Fee, Chapter 13 - $194.00 Receipt Number: 00613457. (By CReg by RP) (RE: related 09/22/2004 document 1) (Entered: 09/23/2004) Request to BNC - Meeting of Creditors. 341(a) meeting to be held on 11/18/2004 at 09:00 AM Fede l Bld ra g, Trustee Hearing Rm, Rm 1160, 11 th Fl, 228 Walnut St, Harrisburg PA Proofs of 09/30/2004 , Claims due by 2/16/2005 Last day to Object to Plan Confirmation 4 3/18/2005 (DP) (Entered: 09/30/2004) 10/02/2004 BNC Certificate of Mailing. (RE: related documents Service 5 Date 10/02/2004. () 4 - ) (Admin.) (Entered: 10/03/2004) 10/02/2004 BNC Certificate of Mailing. (RE: related document(s) ). Service 6 Date 10/02/2004. (Admin.) (Entered: 10/03/2004) Request for Notice under 2002 Filed by Matthew J Eshelman of Saidis Shuff Flower & Lindsa on b h lf f 10/12/2004 y e a o AmeriChoice Federal 7 Credit Union. (DD) (Entered: 10/18/2004) Certification that 341 Meeting of Creditors Held (Ch. 13) on 11/18/04. (There is no image or paper docum t 11/19/2004 en associated with 8 this entry.). (dehart, III(ds), Charles) (Entered: 11/19/2004) 12/01I2004 Objection to Confirmation of Plan Filed by Trustee (RE: related 9 document(s) 3 ). (dehartIII(db) Charles) (Entered: 12/01/2004) Motion for Relief from Stay with concurrence Filed by Matthew J Eshelman of Saidis Shuff Flower & Lindsay on behalf of 12/07/2004 AmeriChoice Federal Credit Union. PM) Additional attachment .10 (s) added on 1/6/2011 (Buffington, Diann). (Entered: 12/07/2004) Order Granting Motion For Relief From Stay (RE: related https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618 0-1 - 3/8/2011 rage .5 of 1 u 12/08/2004 I 11 I document(s) 10 ). (CA) (Entered: 12/08/2004) Certificate of Service of notice fixing hearing on Trustee's Objection to Plan Filed by Trustee. Hearing scheduled for 3/10/2005 at 02:00 PM at 3rd & Walnut Streets, Bankruptcy Courtroom (3rd Floor), Federal Building, Harrisburg, PA. (dehart, 02/09/2005 12 III(asm), Charles) (Entered: 02/09/2005) Exhibit of Proof of Claim DOCKETED IN ERROR - SEE CORRECTIVE ENTRY #14 Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union. (Eshelman, Matthew) Modified on 02/16/2005 13 2/17/2005 (NP). (Entered: 02/16/2005) Corrective Entry Claim docketed electronically in error Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: related 02/17/2005 14 document(s) 13 ). (Eshelman, Matthew) (Entered: 02/17/2005) Notice to Filing Party (M. Eshelman): * * Claims are not being electronically filed at this time. Proof of Claim docketed in error, Court to edit entry. * *. (RE: related document(s) 13 ). (NP) 02/17/2005 15 (Entered: 02/17/2005) Request for Notice under 2002 Filed by Michael A Beatty of The Education Resources Institute, Inc. on behalf of The Education 02/18/2005 16 Resources Institute Inc . (AG) (Entered: 02/18/2005) 02/22/2005 03/15/2005 03/18/2005 Transfer (Assignment) of Claim and waiver of opportunity to object Transfer Agreement 3001 (e) 2 Transferors:Chase Manhattan Bank USA NA(Claim No. 5, Amount 6731.37) To eCast Settlement Corporation Filed by eCast Settlement 17 Corporation. (CA) (Entered: 02/23/2005) Proceeding Memo rehearing continued Filed by Trustee (RE: related document(s) 2, 12 ). Hearing scheduled for 5/12/2005 at 02:00 PM at 3rd & Walnut Streets, Bankruptcy Courtroom (3rd Floor), Federal Building, Harrisburg, PA. (Attachments: # 1 Certificate of Service)(dehart, III(asm), Charles) (Entered: 18 03/15/2005) Objection to Confirmation of Plan Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: related document(s) 3 ). (Attachments: # 1 Certificate of Service)(Eshelman, Matthew) Additional 19 attachment(s) added on 3/22/2005 (DP). (Entered: 03/18/2005) https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618 0-1 3/8/2011 agc -t V1 IV 03/21/2005 03/21/2005 03/21/2005 04/19/2005 04/19/2005 05/16/2005 05/24/2005 20 Notice to Parties: (RE: related document(s) 19 ). Hearing scheduled for 4/19/2005 at 09:00 AM at 3rd & Walnut Streets, Bankruptcy Courtroom (3rd Floor), Federal Building, Harrisburg, PA. (Attachments: # 1 Certificate of Service) (CA) (Entered: 03/21/2005) Notice to Filing Party (M. Eshelman): **The Proposed Order was NOT attached to the docket entry. Please docket a Corrective Entry (missing/incorrect/incomplete attachment) and upload the correct document Also send to the email order account. **. (RE: 21 related document(s) L9 ). (CA) (Entered: 03/21/2005) Corrective Entry: previous attachment omitted/incorrect/incomplete Proposed Order to Objections to Debtor's Chapter 13 Plan Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: related document(s) 19 ). (Eshelman, 22 Matthew) Modified on 3/22/2005 (DP). (Entered: 03/21/2005) Proceeding Memo hearing called and continued. Attorney Eshelman to notify opposing counsel of continued date. Appearances: Matthew Eshelman. Non-Appearances: Lee E. Oesterling. (There is no image or paper document associated with this entry.) (RE: related document(s) 20, 19 ). Hearing scheduled for 5/24/2005 at 09:00 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, - 23 Harrisburg, PA. (JG) (Entered: 04/19/2005) Certificate of Service of notice rescheduling hearing to 05/24/05 at 09:00 am 3rd & Walnut Streets, Bankruptcy Courtroom, 3rd Floor, Ronald Reagan Federal Building, Harrisburg, PA Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: related document(s) 20 , 23 , 19 ). (Eshelman, Matthew) (Entered: 24 04/19/2005) Withdrawal (Obi to Conf of Plan) Filed by Trustee (RE: related 25 document(s) 9 ). (dehart, III(db), Charles) (Entered: 05/16/2005) Proceeding Memo hearing called and continued. No further notice required. Appearances: Matthew Eshelman and Lee Oesterling. Non-Appearances:. (There is no image or paper document associated with this entry.) (RE: related document(s) 23 , 19 ). Hearing scheduled for 6/28/2005 at 09:00 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan 26 Federal Building, Harrisburg, PA. (JG) (Entered: 05/24/2005) Proceeding Memo hearing held. Stipulation within 30 days. Re: https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618_0-1 3/8/2011 • ...bv ..i va ? v Objection of AmeriChoice Federal Credit Union to confirmation of plan. Appearances: Matthew J. Eshelman, Esq., Lee Eric Oesterling, Esq. Non-Appearances: N/A. (There is no image or paper document associated with this entry.) (RE: related document(s) 19 ). Stipulation due 7/28/2005. (EW) (Entered: 06/28/2005 27 06/28/2005) Order that Stipulation be filed on or before July 28, 2005 or Objection is overruled. (RE: related document(s) 19 ). Stipulation due 7/28/2005. (Attachments: # 1 Certificate of Service) (DR) 06/30/2005 28 (Entered: 06/30/2005) Request to list matter for hearing on Objection to Confirmation of Plan Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: 07/28/2005 29 related document(s) 28, 19 ). (Eshelman, Matthew) (Entered: 07/28/2005) Notice of continued hearing. Rescheduled (RE: related document (s) 29 , 28, 19, 23 ). Hearing scheduled for 8/22/2005 at 09:00 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), 08/01/2005 30 Ronald Reagan Federal Building, Harrisburg, PA. (Attachments: # 1 Certificate of Service) (CA) (Entered: 08/01/2005) Proceeding Memo hearing held. Stipulation within 30 days. Re: Objection of AmeriChoice Federal Credit Union to confirmation of plan. Appearances: Matthew J. Eshelman, Esq. Non- Appearances: N/A. (There is no image or paper document associated with this entry.) (RE: related document(s) 29, 28 08/22/2005 31 , 19 ). Stipulation due 9/21/2005. (EW) (Entered: 08/22/2005) Order that Stipulation be filed on or before September 21, 2005 or 08/22/2005 32 Objection is overruled. (RE: related document(s) 28 , 19 ). Stipulation due 9/21/2005. (CA) (Entered: 08/23/2005) Stipulation Resolving Objections Filed by Matthew J Eshelman of Saidis Shuff Flower and Lindsay on behalf of AmeriChoice Federal Credit Union (RE: related document(s) 32 , 19 ). (Attachments: # 1 Proposed Order Approving Stipulation) 08/25/2005 33 (Eshelman, Matthew) (Entered: 08/25/2005) 08/26/2005 34 Order approving Stipulation (RE: related document(s) 31 , 3 3 ). (CA) (Entered: 08/26/2005) Joint Transfer (Assignment) of Claim and waiver of opportunity to object Transfer Agreement 3001 (e) 2 Transferors:MBNA America Bank, N.A.(Claim No.3, Amount 3978.77) To eCAST Settlement Corporation Filed by Becket & Lee LLP on behalf of https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L_618 0-1 3/8/2011 Ecast Settlement Corporation. (Becket & Lee LLP, ) (Entered: 09/27/2005 35 09/27/2005) Order Confirming Chapter 13 Plan (RE: related document(s) 3 , 09/28/2005 36 4 ). (CA) (Entered: 09/28/2005) Objection to Claim Number 8 of The Education Resources Institute.. Notice sent to claimant. Filed by Trustee. Answers are due on: 1/5/2007. (Attachments: # 1 Proposed Order)(dehart, III 12/06/2006 37 (dr), Charles) (Entered: 12/06/2006) Order Granting Objection to Claim 8. (RE: related document(s) 37 ). (Attachments: # 1 Certificate of Service) (CA) (Entered: 01/09/2007 -38 01/09/2007) Motion to Dismiss Case for material default and hearing notice to parties. Filed by Trustee. Hearing scheduled for 6/6/2007 at 09:00 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd 05/11/2007 39 Floor), Ronald Reagan Federal Building, Harrisburg, PA. (dehart, III(ds), Charles) (Entered: 05/11/2007) Withdrawal motion to dismiss material default Filed by Trustee 05/23/2007 40 (RE: related document(s) 39 ). (dehart, III(ds), Charles) (Entered: 05/23/2007) Motion to Dismiss Case for material default and notice to parties. Filed by Trustee. Trustee Conference to be held on 12/2/2009 at 09:00 AM at Dismissal Hearing Room (Courtroom 2), Ronald 11/02/2009 41 Reagan Federal Bldg, 3rd Floor, Harrisburg, PA 17101. (dehart, III(ds), Charles) (Entered: 11/02/2009) Entry of Appearance Filed by Darrell Charles Dethlefs on behalf 11/09/2009 42 of AmeriChoice Federal Credit Union. (Dethlefs, Darrell) (Entered: 11/09/2009) Withdrawal Motion to Dismiss for material default. Filed by 11/19/2009 43 Trustee (RE: related document(s) 41 ). (dehart, III(ds), Charles) (Entered: 11/19/2009) Motion to Dismiss Case upon the basis that the plan lacks feasibility due to underfunding, with proposed order. Notice sent 11/20/2009 44 to all Creditors. Filed by Trustee. Objections due by 12/12/2009. (dehart, III(mr), Charles) (Entered: 11/20/2009) 11/22/2009 45 BNC Certificate of Mailing. (RE: related document(s) 44 ). Service Date 11/22/2009. (Admin.) (Entered: 11/23/2009) https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L_618_0-1 3/8/2011 Entry of Appearance Filed by Joseph B. Sobel on behalf of Eric L Nicastro. (Attachments: # 1 Certificate of Service) (Sobel, 12/11/2009 46 Joseph) (Entered: 12/11/2009) Answer to Trustee's Motion to Dismiss Case Filed by Joseph B. Sobel on behalf, of Eric L Nicastro (RE: related document(s) 44 ). (Attachments: # 1 Certificate of Service) (Sobel, Joseph) 12/11/2009 47 (Entered: 12/11/2009) Request to BNC - Notice to Parties of hearing (RE: related document(s) 44 , 47 ). Hearing scheduled for 1/26/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, Harrisburg, PA. (Piemontese, 12/14/2009 48 Geri) (Entered: 12/14/2009) BNC Certificate of Mailing of Notice to Parties Setting Hearing. (RE: related document(s) 48 ). Service Date 12/16/2009. 12/16/2009 49 (Admin.) (Entered: 12/17/2009) Request to BNC - Notice to Parties of hearing (RE: related document(s) 44 , 47 ). Hearing scheduled for 2/1/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, Harrisburg, PA. (Eshelman 01/21/2010 50 , Ryan) (Entered: 01/21/2010) BNC Certificate of Mailing of Notice to Parties Setting Hearing. 01/23/2010 51 (RE: related document(s) 50 ). Service Date 01/23/2010. (Admin.) (Entered: 01/24/2010) Proceeding Memo re: Hearing on Motion to Dismiss Case (re: Feasibility); called and continued. Appearances: Joseph Sobel and Agatha McHale. Non-Appearances:. (There is no image or paper document associated with this entry.) (RE: related document(s) 44 , 47 ). Hearing scheduled for 2/10/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), 02/01/2010 52 Ronald Reagan Federal Building, Harrisburg, PA. (Goodling, Joan) (Entered: 02/01/2010) Withdrawal of Appearance Filed by Lee Eric Oesterling of Oesterling & Armbruster on behalf of Eric L Nicastro 02/07/2010 53 . (Oesterling, Lee) (Entered: 02/07/2010) Objection to Claim Number 9 of AmeriChoice Federal Credit Union filed on 12-21-05. 02-11-10 Notice sent to claimant. Filed by Joseph B. Sobel on behalf of Eric L Nicastro Answers are due on: 3/13/2010. (Attachments: # 1 Proposed Order) (Sobel, Joseph) Additional attachment(s) added on 2/11/2010 (Piemontese, Geri). Notice with Objection date attached Modified on 211112010 https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618_0-1 3/8/2011 ur"_ u vi I v 02/10/2010 I 54 I (Piemontese, Geri). (Entered: 02/10/2010) Proceeding Memo re: Hearing on Motion to Dismiss Case; canceled and rescheduled at request of party due to weather conditions. Appearances% Non-Appearances:. (There is no image or paper document associated with this entry.) (RE: related document(s) 44, 47 ). Hearing scheduled for 2/24/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, Harrisburg, PA. (Goodling, 02/10/2010 56 Joan) (Entered: 02/12/2010) Certificate of Service of Notice to Claimant of Objection to Claim Filed by Joseph B. Sobel on behalf of Eric L Nicastro (RE: related document(s) 54 ). (Attachments: # I Notice to Claimant of Objection to Claim# 2 Filed Obj to Amend PC 9) (Sobel, Joseph) 02/11/2010 55 (Entered: 02/11/2010) Amended Answer to Motion to Dismiss Case Filed by Joseph B. Sobel on behalf of Eric L Nicastro (RE: related document(s) 44, 47 , 54 ). (Attachments: # 1 EX 1 - Objection to Amended Proof of Claim #9# 2 Certificate of Service) (Sobel, Joseph) (Entered: 02/22/2010 577 02/22/2010) Proceeding Memo re: Hearing on Motion to Dismiss Case (re: Plan Feasibility); called and continued. Appearances: Charles J. DeHart, 111, Trustee. Non-Appearances: Joseph Sobel. (There is no image or paper document associated with this entry.) (RE: related document(s) 44 , 57 ). Hearing scheduled for 3/24/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, Harrisburg, PA. 02/24/2010 58 (Goodling, Joan) (Entered: 02/24/2010) Answer to Debtor's objection to amended proof of claim #9 Filed by Darrell Charles Dethlefs on behalf of AmeriChoice Federal Credit Union (RE: related document(s) 9, 54 ). (Dethlefs, 03/09/2010 59 Darrell) (Entered: 03/09/2010) Request to BNC - Notice to Parties of hearing (RE: related document(s) 54 , 59 ). Hearing scheduled for 4/26/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, Harrisburg, PA. (Piemontese, 03/10/2010 60 Geri) (Entered: 03/10/2010) BNC Certificate of Mailing of Notice to Parties Setting Hearing. (RE: related document(s) 60 ). Service Date 03/12/2010. 03/12/2010 61 (Admin.) (Entered: 03/13/2010) Motion to Continue Hearing on Trustee's Motion to Dismiss Case https://ecf pamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L_618_0-1 3/8/2011 Filed by Joseph B. Sobel on behalf of Eric L Nicastro (RE: related document(s) 44 , 47 , j7 , 58 , 60 ). (Attachments: # l Certificate of Concurrence# 2 Certificate of Service # 3 Proposed 03/22/2010 62 Order) (Sobel, Joseph) (Entered: 03/22/2010) Order Continuing hearing originally set for 03/24/10 at 09:30 a.m. (RE: related document(s) 58, 62 ). Hearing scheduled for 5/5/2010 at 09:30 AM at 3rd & Walnut Sts., Bankruptcy Courtroom (3rd Floor), Ronald Reagan Federal Building, 03/24/2010 63 Harrisburg, PA. (Piemontese, Geri) (Entered: 03/24/2010) Proceeding Memo re: Hearing on Objection to Claim Number 9 of Americhoice Federal Credit Union; held. Record Made. Objection sustained to the extent that the claim exceeds the amount paid under the plan. Appearances: Joseph Sobel and Darrell Dethlefs. Non-Appearances:. (There is no image or paper document associated with this entry.) (RE: related document(s) 54, 59 ). (Goodling, Joan) Modified on 4/27/2010 (Goodling, 04/26/2010 64 Joan). (Entered: 04/26/2010) Order Granting Objection to Claim 9 of Americhoice FCU filed on 12/21/05. (RE: related document(s) 54 ). (Piemontese, Geri) 04/29/2010 65 (Entered: 04/29/2010) Withdrawal of Trustee's Motion to Dismiss for lack ofplan feasibility Filed by Trustee (RE: related document(s) 44 ). 04/29/2010 66 (dehart, III(asm), Charles) (Entered: 04/29/2010) BNC Certificate of Mailing. (RE: related document(s) 6 ). 05/01/2010 67 Service Date 05/01/2010. (Admin.) (Entered: 05/02/2010) Final Report Filed by Trustee. (dehart, III(ck), Charles) (Entered: 05/18/2010 68 05/18/2010) Request to BNC - Discharge of Debtor entered on 5/19/2010 05/19/2010 69 (Piemontese, Geri) (Entered: 05/19/2010) Notice to the Debtor(s): The Trustee has filed a final report and final account certifying that the estate has been fully administered. If within thirty (30) days no objection has been filed by the United States Trustee or a party in interest, pursuant to F.R.B.P. 5009, there shall be a presumption that the estate has been fully administered and this case will be closed without further notice. (There is no image or paper document associated with this entry.) (RE: related document(s) 68 ). Clerks Office Follow-Up Due by 6/18/2010. (Piemontese, Geri) (Entered: 05/19/2010 70 05/19/2010) https://ecf pamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618_0-1 3/8/2011 - rage i u of I U BNC Certificate of Mailing of Discharge (Chapter 13) (RE: related document(s) L9 ). Service Date 05/21/2010. (Admin.) 05/21/2010 71 (Entered: 05/22/2010) Request to BNC - Final Decree (Piemontese, Geri) (Entered: 06/22/2010 72 06/22/2010) BNC Certificate of Mailing of Final Decree (RE: related document(s) 72 ). Service Date 06/24/2010. (Admin.) (Entered: 06/24/2010 7 06/25/2010) PACER Service Center Transaction Receipt 03/08/2011 09:02:28 PACER Client Login: dd0974 Code. 1:04-bk-05727-MDF Fil or Ent: Description: Docket Search filed Doc From: 0 Doc To: Report Criteria: 99999999 Term: included Format: html Billable ? Cost: 0.40 Pages: _ https://ecfpamb.uscourts.gov/cgi-bin/DktRpt.pl?490452581452568-L 618 0-1 3/R/?n11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA HARRISBURG DIVISION IN RE: ERIC L. NICASTRO CHAPTER 13 1-04-06727 DB/A MCASTRO CHIROPRACTIC Date Filed: Case No. 1-04- Judge: Mary D. France Bankruptcy Judge CHAPTER 13 PLAN NOTICE The following Chapter 13 Plan has been filed in the above captioned case. Any objection to the confirmation of the plan must be made in writing, served upon the undersigned counsel for the Debtor, the Chapter 13 Trustee, Charles L DeHart, III, PO Box 410 Hummelstown, PA 17036 and filed with the clerk of the Court, United States Bankruptcy Court within 120 days of the 341 Meeting of Creditors. We direct Creditors who may be affected by this plan to review carefully all provisions of this plan with special attention to paragraph 12 of this plan. I. PROPERTIES AND FUTURE EARNINGS OR INCOME SUBJECT TO THE SUPERVISION AND CONTROL OF THE TRUSTEE: 1. Payments to the Trustee: Debtor or the Debtor's Employer shall pay $838.00 (dollars) per month for a period 60 months in accordance with the creditor classifications set forth herein. Debtor further agrees to submit to the control, direction and supervision of the Trustee all future income during the pendancy of this case and agrees to pay sufficient funds to the trustee to fully complete, adequately fund and thereby make feasible this plan. 2. Total of Payments (Base Plan): $50,280.00 I ? 3. Plan Length: This plan is estimated to be for 60 months 4. Tiered Payments: There will be no tiered follows: payments unless listed hereunder as N Year 1: ; Year 2: ; Year 3: ; Year 4: ; Year 5: 5• Commencement of Pa ments and Due Date: DEBTOR SHALL COMMENCE MAKING PA-MEWS UNDER THIS PLAN ON OCTOBER 20, 2004 AND HEREINAFTER ON THE 20TH DAY ( WbiY MONTH UNTIL ALL PAYMENTS ARE COMPLETED UNDER THE PLAN. Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc II. TREATMENT AND CLASSIFICATION OF CLAIMS 5. Allowed claims against the debtor shall be paid in accordance with the Bankruptcy Code and this Plan. a. Secured creditors shall retain their mortgage, lien or security interest in collateral until the amount of their allowed secured claims have been fully paid or until the Debtor has been discharged. Upon payment of the amount allowed by the Court as a secured claim in the Plan, the secured creditors included in the Plan shall be deemed to have their full claims satisfied and shall terminate any mortgage, lien or security interest on the Debtor's property which was in existence at the time of filing of the Plan, or the Court may order termination of such mortgage, lien or security interest. b. Creditors who have co-signers, co-makers, or guarantors ("Co-Obligors') from whom they are enjoined from collection under 11 U.S.C. § 1301, and which are separately classified and shall file their claims, including all of the contractual interest which is due or will become due during the consummation of the Plan, and payment of the amount specified in the proof of claim to the creditor shall constitute full payment of the debt as to the Debtor and any Co-Obligor. c. All priority creditors under 11 U.S.C. § 507 shall be paid in full in deferred cash payments. 6. From payments received under the plan, the trustee shall make disbursements as follows in accordance with the following classifications: (a) Class I Administrative Expenses Under 11 U.S.C. 507(a)(1 : to be paid in full 100% through the plan provided a timely proof of claim is filed as follows: W Trustee's Corn ensation Debtor(s) shall compensate trustee at a rate of 10% of disbursement amounts payable to: Charles J. Deflart, III, Esquire P.O_ Box 410 Hummelstown, PA. 17036 (ii) Attorneys Fees - Pre-petition attorneys fees in the amount of $2,000.00 payable to: Lee E. Oesterling, Esquire 42 East Main Street Mechanicsburg, PA 17055 (iii) Filing Fees Unpaid at Date of Filing - None Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22104 12:04:03 Desc (b) Class I Priority Claims Under 11 IJ S C S 507 (i) Allowable Claims to Former S use Under 11 U.S.C. 507 A a)(7) be ARM paid in full 100% through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (ii) Allowable Tax Claims Under 11 U &C. &507(al(8VA1-(G1 to be paid in full 100 /o through the plan provided a timely proof of claim is filed as follows: Creditor or Government Lienholder: Unsecured Priority Portion: $ Basis of Claim: Interest Rate (if specified): (c) Class H Secured Claims (i) Secured Debts which will not extend be and the len h of the Plan: Creditor or Lienholder: SBA / AMERICHOICE FCU Amount of Allowed Secured Claim: $43,560.00 Monthly Payment : $726.00 Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: 6% Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through plan: Interest Rate if Specified: (ii) Secured Debts which wilt exte d beyond the length of the plan: Creditor or Lienholder: Amount of Allowed Secured Claim: Monthly Payment : Arrearage Portion if any to be Paid through Plan: Interest Rate if Specified: All Claims not otherwise specified shall be paid outside the plan as per prior business dealings. Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc (iii) Debts secured by liens subiect to Cramdown or Lien Avoidance and treatment as Class III Unsecured Claims: Creditor or Lienholder: Nature of Lien: Amount of Claim: Secured Portion of Claim Secured Against: Unsecured Portion: (d) Class III Unsecured Claims (i) Special Nonoriority Unsecured: Debts which are co-signed or non dischargeable shall be paid in full (100%) either through the plan but not expensed or outside the plan as per prior business dealings: Name of Creditor: Nature of Claim: Amount of Claim: Monthly Payment: Interest Rate (if Specified): Payable through Plan or Outside plan: (ii) General Nonuriority Unsecured - All other unsecured creditors shall receive payment on a pro rata level of distribution. (e) Class IV Post Petition Claims - The trustee shall have sole discretion to pay in full according to the terms, and conditions that he deems to be advisable any post petition claims. Amounts necessary for the payment of post-petition claims shall be allowed under Bankruptcy Code 1305. 7. The employer on whom the Court will be requested to order payment withheld from earnings is: 8. The following executory contracts are to be rejected: III. Other Party: DIVERSIFIED WESLEY DRIVE PARTNERSHIP Description of Contract or Lease: COMMERCIAL LEASE Other Party: MARLIN LEASING Description of Contract or Lease: EQUIPMENT LEASE DISPOSITION AND TREATMENT OF PROPERTY OF THE ESTATE AND LIENS AGAINST ESTATE ASSETS 9. Property to be Surrendered to Secured Creditor: Name: Amount of Claim: Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc Description of Property: 10. The debtor does not own any non-exempt real or personal property. 11. The debtor intends to pay the non-exempt portion of the following property through the Chapter 13 Plan: NONE Description of Property: Non-Exempt Portion Less 10% Administrative Cost: 12. The following liens shall be avoided pursuant to 11 U.S.C. §522(f), or other applicable sections of the Bankruptcy Code: (i) Liens subject to "Cramdown" in accordance with 11 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are to be paid 100% through the Plan. Name of Creditor: Account# Amount of Claim: $ Description of property: This plan upon confirmation, reduces the secured claim of the creditor herein denoted under paragraph 12(i) as Ifrom $ to $ and interest at 0%. All balances above $ will be treated as general unsecured claims. Where debtor has "crammed down" secured creditor's claim and has paid off the secured portion of the claim in this plan the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" return to debtors, the vehicle title marked "satisfied" upon receipt of $ . IF YOU DISAGREE YOU MUST FILE AN OBJECTION TO THE PLAN WITHIN 120 DAYS OF THE 341 MEETING OF CREDITORS IN ACCORDANCE WITH BANKRUPTCY RULES. (ii) Liens subject to Cramdown in accordance with 11 U.S.C. 506(a) and other provisions of the Bankruptcy Code which are wholly unsecured and are to be avoided and treated as Class III General Unsecured Claims: Name of Creditor: Account# Amount of Claim: S Description of Property: This plan upon confirmation, reduces the secured claim of the Creditor herein denoted under paragraph 12(ii), to $0.00. This includes principal and interest at 0%. Said interest being against debtors real property and being 100% unsecured after accounting for the estates interest in such real property as offset by senior lienholders. Upon completion of this plan said lien shall terminate and the debtor will receive the title to the property free and clear of the creditor's lien, notwithstanding that the Debtor has not completed the payment of unsecured claims under the Plan. The aforementioned Creditor "shall" return to Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc debtors, the mortgage, marked as "satisfied" upon completion of this plan. IF YOU DISAGREE YOU MUST FILE AN OBJECTION TO THE PLAN WITHIN 120 DAYS OF THE 341 MEETING OF CREDITORS IN ACCORDANCE WITH BANKRUPTCY RULES. 13. Lien Avoidance - Debtor elects to avoid the fixing of liens pursuant to 11 U.S.C. 522 (b) of the Bankruptcy Code on the following: (i) Non - purchase Money Securi Interests in Household Goods or Toots of Debtor's Trade : Name of Creditor: Account Number: Amount of Claim: (ii) Judgment Liens to be avoided Pursuant to 11U S C 522(f) Caption of Case: Docket # Location of Court: IV. 14. Co-Debtor Claims -There are no known co-debtor claims that need to be provided for under this plan beyond the debtors listed herein. DEBTORS REPRESENTATIONS AND OTHER PROVISIONS APPLICABLE TO THE ADMINISTRATION OF DEBTORS PLAN 15. Adequate Assurance -The payments proposed in this plan shall constitute adequate assurance of security. 16. Revestment of Property - Property of the estate shall vest in the Debtor upon completion of the plan. After confirmation of the plan the Chapter 13 Trustee shall have no further authority or fiduciary duty regarding use, sale or refinance of property of the estate, except to respond to any proposed use, sale or refinance as imposed by Chapter 13 General Order of this Court. 17. Comparison with Chapter 7 - The value as of the effective date of the Plan of property to be distributed under the Plan on account of each allowed unsecured claim is not less than the amount that would be paid on such claim if the Estate of the Debtor were liquidated under Bankruptcy Code Chapter 7 on such date. 18. Good Faith - Debtor represents that they have submitted this plan in good faith as required under state and federal law. Case 1:04-bk-05727-MDF Doc 3 Filed 09/21/04 Entered 09/22/04 12:04:03 Desc ..-.- r1--------- - -- 19. Automatic Stav and Relief tr...., Sta the earlier of the case being dismissed, dischar edaoroamati stay shall payments remain effective until are made under the plan. Additonally, Secured and Unsecured Creditors are prohibited from collecting attorney fees and costs when filing Motion for Relief From Automatic Stay 20. Definition of Debtor - As used herein the term "Debtor" shall include both debtors in a joint case. Prepared Lee E. OeS-r%ZIZ? Supreme Court ID# 71320 42 East main street Mechanicsburg, PA. 17055 (717) 790-5400 Attorney for Debtor(s) Case 1:04-bk-05727-MDF Doc 3 ?f Filed 09/21/04 Entered 09/22/0412:04:03 Desc r IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: DOCKET No. 1:04-bk-05727-MDF ERIC L. NICASTRO D/B/A NICASTRO CHIROPRACTIC, CHAPTER 13 Debtor ORDER Upon consideration of the Objections to Debtor's Chapter 13 Plan Filed by AmeriChoice Federal Credit Union, and the Stipulation of the Parties filed August 25, 2005, in connection therewith, the Stipulation is hereby approved as an Order of Court and the Objections to confirmation deemed resolved. By the Coma, 7 Ban rup Judge t, This electronic order is signed and filed on the same date. Dated: August 26, 2005 Case 1:04-bk-05727-MDF Doc 34 Filed 08/26/05 Entered 08/26/05 14:58:29 Desc Main Document Page 1 of 1 ?,.----- .e t. r . vie I i I I t I N THE UNITED STATM BANKRUPTCY COURT I I i OF THE MHIDLE DISTRICT OF PENNSYLVANIA I IN RE : ' ERYC L. NIC.ASTRO DOCKET No. 1:04-bk 057'27-NjF D/B/A MCASTRO CHIROPRACTIC , Debtor ; CEVJ TER 13 STIPULATION I It ?I NOW COME the Movant, AmeaChoiee Federal Cr6dit Union. by and through its • . t I attorneys. SAIDIS, SHUFP, FLOWER & LDWSAY in the person of Matthew J Eshelman, Esquire, and ft Debtor, Eric L. Nicastro, d/b/a Nicastro Chiropractic, by and through his attorney, Lee E_ Oesterling, Esquire, and stipulate as follows: 1• This Corm has jurisdiction in this matter under 28 U.S.C. §. 157(b)(2)(L), 11 ?a . U.S.C. §§ 105, 362,1322, 1325, and Ba>n iGruptcy Rules 3015(f) and 9014. I 2. AmeriChoice Federal-Credit Union ("ArneriChoicc" ) is a federal credit utuvzt organized and existing under the laws of the United States of America, with its principal office located at 20 Shorting Green Drive, Mechanicsburg, Pennsylvania 17050. 3. Eric L. Nieastro d/b/a Nicastro C*opractic Health center (the - Debt+or,) is an Ii adult individual with an addiess at 288 Bradley Circle, New Cumberland, Pennsylvania 17070. t 4. AmerniChoice is the holder of a secured claim against the Debtor. AmeriChoice's claim is evidenced by the foil off: (A) a U.S. Small Business Administration Note dated October 14, 2003, in the original principal amount of $40,000.00, known as SBA Loan No. GP I? ; i 665 042 40 02 HBGr (the "SBA Notel; (B) a vehicle loan dated January 22, 2004, in the original I amount of $19,699.34, known as account number 30202/32 (the "Vehicle Loan"); (C) a personal a? Visa known as account number 4202_9000-0W5-6886 (fie "Personal Visa"): and (D) a business .a Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc - li ocument_.-PacteLof 5 I I :; L -_`. ? CJJ I I I I Visa known as account number 4202-9000-0007-0473 (the "Business Visa'). A copy of the SBA. Note is attached hereto as Exhibit "A" and is incorporated herein by refcmace. Debtor's Parents, SalvatOTC Ni.castro and Livia Nicastro, (the ' CnDarantors') guaranteed the SBA Note by executing and delivering to AmeriChoice an Unconditional Guarantee dated October 14, 2003 (the "Guarantee). A copy of the Guarantee is attached hereto as Fa bibit "l3" and is incorporated herein by reference. 5. The Debtor filed hi9 Petition for relief under Chapter 13 of the United States BarAxuptcY Code and his Chapter 13 Plan on or about September 21, 2004. 6. On or about March 18, 2005, AmeriChoice filed its Objections to Debtor's Chapter 13 Plan, arguing, altenm&ely, that Debtor's Plan failed to turn, oval all of Debtor's disposable- income to the Trustee of that Debtor's Plan was not feasible due to insu dent disposable income. 7• Th, Debtor is currently providing chiropractic medical services to the general public in (City), (State), as a (partner/employee/??) of (New York Back Instituten?), a (corporation/paxtnershiVM- fonved and registered in the Static of (State, having a primi I?l business activity of (the practice of chiropractic medicineM) (the " Business'?. 8. The Debtor has, and will continue to maintain, a valid license to practice chiropractic medicine in the state of (State). The Debtor will provide AmeriChoice with a copy of the license within thirty days. 9' The Debtor has, and will continue to maintain, business liability and/or workman's compensation insurance. The Debtor will provide Amelri.Choice with proof of insurance within thirty days. t? I I ii i• I I L f•? :If •I I, I, II II ? xl ' +1 i III J Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc 2 of 5 t ? 10. Within thirty days of the end of each. serrd-annual period, the Debtor will provide A.meriChoice with a statement of the assets and liabilities of the Business for the periods ending June 30, 2005, December 31, 2005, June 30, 2006. 11. The Debtor will provide AmerlChoice with copies of quarterly state and federal income tax returns of the Business on or before they are due to the appropriate taxing authorities, through and including the quarterly period ending June 30, 2006. 12. The Debtor will make all payrxrents to the Chapter 13 Trustee as acid when due under the U.S. Ban lawtcy Code and Debtor's Chapter 13 Plan. 13. In July of 2006. A.meriChoice and Debtor will review the feasibility of Debtor's Place and the viability of the Business. If upon review. AmeriChoioc remains uneoavineed of the feasibility of Debtor's Plan, .AmeriChoice sbal] have the right to petition the Court for relief from stay in order to proceed against the Debtor, the Guarantors, and/or the Small Business Administration. 14. The v-611ingams of AmeriChoice to accept and abide by the te= of this Stipulation, with particular reference to the concerns raised in the Objections regarding the lack of verification of Debtor's income, are conditioned upon the continuing guaranty of the Guarantors. AmeriChoice must remain subjoetively assured of the Guarantors' continuing ability to guarantee the SBA Note. In the event AmeriChoice believes, in subjective good faith, that the Guarantors' ability to guarantee the SBA Note, is or may be in jeopardy, ArneriChoicc may file a Certificate of Default outlining its concerns with specificity, vw,ith ten days' notice and opportunity to cure provided .to the Debtor by United States trail to his address of record, with a copy to Debtor's counsel by facsimile or electronic mail mmsmission, allowing AmeriChoice - Case 1:04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc --- -- --- -- "- "*r.ai;i-Document___Rage, of 5 1 . CJY i 1 i. i i i i? ? 1 II i .1 I.. ?e F•a I ii I *Ucf Son? the -gmatk Etay st Kmmd in *A oo*box slay of SCefim 1301, io p =.A f most 4w QMMAQ-M d? ?aat1 ?Sinass Adraia?i op. or bum In IV C-M outer fats to amply -A wY of the comificAt sec swa in Ibis f 1 StipuMiotV upon ten dW w1i6t W amity to eum PMWW to Me paptor by Unim 4 j q 1 I Sh'" ttm;1 m his addles! 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I? 1 I I Case 1.04-bk-05727-MDF Doc 33 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc -- , ___ _--Ma7"0,tcnent_- . RageAg5 I i a IN THE UNITED STATES BANKRUPTCY COURT OF THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: DOCKET No.1:04-bk-05727-MDF ERIC L. NICASTRO D/B/A NICASTRO CHIROPRACTIC, CHAPTER 13 Debtor : Re Docket Entries 19, 32, 33 ORDER Upon consideration of the Objections to Debtor's Chapter 13 Plan Filed by AmeriChoice Federal Credit Union, and the Stipulation of the Parties filed August 25, 2005, in connection therewith, the Stipulation is hereby approved as an Order of Court and the Objections to confirmation deemed resolved. BY THE COURT: Case 1:04-bk-05727-MDF Doc 33-1 Filed 08/25/05 Entered 08/25/05 11:21:34 Desc Proposed Order Approving Stipulation Page 1 of 1 53/05/2010 16:49 7179752309 DETHLEFS-PYKOSH LAW PAGE 01/07 IN THE UNITED STATES BANKRUPTCY COURT FOP, MIDDLE DISTRICT OF PENNSYLVANIA. IN RE: ERIC L. NICASTRO : CHAPTER 13 aka NICASTRO CHIROPRACTIC . HEALTH CENTER, Debtor : CASE NO. 1:04-bk-05727-MDF ERIC L. NICASTRO = aka NICASTRO CHIROPRACTIC HEALTH CENTER, ObjecOnt AMERICHOICE FEDERAL CREDIT UNION, : Claimant QTitUEIt AND NOW, this day of March, 2010, upon consideration of Debtor's Objection to Amended Proof of Claim #9 of AmeriChoice Federal Credit Union and Claimant AmeriChoice Federal Credit Union's Answer to Debtor's Objection to Amended Proof of Claim #9 of AmeriChoice Federal Credit Union, a hearing on this matter is scheduled for the day of , 2010 at o'clock M. BY TIDE COURT: J. Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 1 of 7 83/054/2010 16: 40 7179752309 DETHLEFS-PYKOSH LAW IN THE UNITED STATES BANKRUPTCY COURT FOR MIDDLE DISTRICT OF PENNSYLVANIA. IN RE: ERIC L. NICASTRO aka NICASTRO CHIROPRACTIC HEALTH CENTER, Debtor ERIC L. NICASTRO aka NICASTRO CHIROPRACTIC HEALTH CENTER CHAPTER 13 CASE NO. 1:04-bk-05727-MDF Objectant AMERICHOICE FEDERAL CREDIT UNION, : Claimant CLA dANT AIMERICHOICE FEDERAL CREDIT UNION'S ANSWER TO DEBTOR'S OBJECTION TO AMENDED PROOF OF CLAIM #9 OF AMERICHOICE FEDERALT (jON Claimant AmeriChoice Federal Credit Union (Claimant), by its attorney, Michael J. PAGE 02/07 Pykosh, Esquire of the Dethlefs-Pykosh Law Group, LLC, in response to Debtor's Objection to the Amended Proof of Claim filed by Claimant, avers as follows: COUNTI 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 2 of 7 03/09/2010 16:43 7179752309 DETHLEFS-PYKSSH LAW PAGE 03/07 5. Admitted in Part. Denied in Part. It is admitted that on August 25, 2005, a Stipulation was filed by AmeriChoice which resolved its objections. It is denied that Americhoiee agreed to accept the amount of $43,560.00 as stated in Debtor's Plata as payment in frill of all amounts claimed in relation to the secured SBA-guaranteed claim, as reflected on Proof of Claim 47. By way of further answer, the amount due to AmeriChoice was set forth in the Confirmed Platt, flied Proof of Claim #7 and Amended proof of claim 49. Said Confirmed Plan and Proof of Claims #7 and #9 are written documents and speak for themselves. By way of further answer, the purpose of this Stipulation was to address verificadoq of Debtor's income. In said Stipulation, the parties did not agree to an amount awed. The interest rate on the SBA loan was adjustable. 6. Admitted. 7. Admitted. 8. Admitted. It is admitted that on December 21, 2005, notwithstanding the aforesaid Stipulation of August 25, 2005, AmeriChoice filed Amended Proof of Claim #9, which iuxeluded the aforesaid secured SBA-gum=teed claim, totaling $48,941.45, in addition to three unsecured claims totaling $10,291.21, for an aggregate amount o£$59,232.66. By way of further answer, in said Stipulation, the parties did not agree to an amount owed. 9. Admitted in Part. Denied in Part. It is admitted that the Trustee has now paid to AmteriChoiee the amount of $44,986.41. It is denied that $437560.00 was stipulated by Debtor and Claimant as total payment for the secured SBA,-guaranteed loan The Stipulations is a written document and as such speaks for itself. It is denied that said amount exceeds the stipulated amount of $43,560.00 thereby satisfying the claim. By way of further answer, AmeriChoice has not been paid in accordance with filed Amended Proof of Claim #9. By way Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 3 of 7 93/09/2010 16:48 7179752309 DETHLEFS-PYKOSH LAW PAGE 04/07 Of further answer, the purpose of this Stipulation was to address verification of Debtor's income. In said Stipulation, the parties did not agree to an amount owed. 10. Denied. It is denied that collection of any claimed amount in excess of the stipulated amount of $43,560.00 has therefore been waived by AmeriChoice. It is further denied that $43,560.00 was stipulated to by Debtor and Claimant. I 1. Denied. It is denied that Ago eriChoice has accepted as payment in full the sum of $43,560.00. It is further denied that AmeriChoice is estopped from claiming the amount in excess of that sum. 12. Denied. It is denied that AmeriChoice has received and accepted the sum of $43,560.00 as payment in full. It is fwrther denied that by virtue of receipt of $43,560.00 that .AmeriChoice has entered into an accord and satisfaction with regards to the aforesaid secured SBA- guaranteed claim. WHEREFORE, ArneriChoice respectfWly requests that Debtor's Objection to the Amended Proof of Claim #9 of AmeriChoice Federal Credit Union be denied. Cow 13. Claimant incorporates paragraphs 1 through 12 by reference. 14. Admitted. 15. Denied. It is denied that the legal services for which reimbursement is claimed in relation to the aforesaid secured SBA-guaranteed claim were almost entirely related not to the secured SBA-guaranteed claim, but to three other discrete unsecured claims included in Amended Proof of Claim #9. Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 4 of 7 3/ 9/20i.P 16:46 7179752309 DETHLEFS-P'YKOSH LAW PAGE 05/07 16. Denied. It is denied that there is no reliable means of ascertaining what, if any, legal fees or expenses were incurred specifically in relation to the aforesaid secured SBA-guaranteed claim, as distinct from the three unsecured claims stated in the Amended Proof of claim #9. 17. Denied. It is denied that the legal fees and expenses clamed by Americhoice in the Amended Proof of Claim #9 are excessive. 18. Denied. It is denied that the legal fees and expenses claimed by AmeriChoice in Amended Proof of Claim #9 are not actual, reasonable, or allowable. WHEREFORE, Claimant respectfully requests that the Objection to Amended Proof of Claim #9 of Am?eriChoice Federal Credit Union by Debtor be dismissed. Z Respectflilly Sub i J. Pykosh, Esquire " Dethlefs-Pykosh Law Group I.D. #58851 2132 Market Street Camp Hill, PA 17011 Telephone: (717) 975-9446 Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 5 of 7 83/09/2017 16:43 7179752309 DETHLEFS-PYKOSH LAW VERIFICATION I, Dallas Zuni, hereby verify that the statements of fact made in the foregoing documents ate true and correct to the best of my knowledge, information and belief. T understand that any false statements therein are subject to the crimito) penalties contained in 18 Pa C. S. Section 4904, relating to unswom falsification to authorities, Date: 0 ?Ws f ?44 PAGE 06/07 Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40.04 Desc Main Document Page 6 of 7 15:43 7179752309 DETHLEFS-PYKOSH LAW PAGE 07/07 IN THE UNITED STATES BANKRUPTCY COURT FOR MIDDLE DISTRICT OF PENNSYLVANIA IN RE: ERIC L. NICASTRO aka NICASTRO CHIROPRACTIC HEALTH CENTER, Debtor ERIC L. NICASTRO aka NICASTRO CHIROPRACTIC HEALTH CENTER, Objectant CHAPTER 13 CASE NO. 1:04-bk-05727-MDF AMERICHOICE FEDERAL CREDIT UNION, : Claiamt C , MCA.TE OF SERVXCF, I hereby certify that a copy of the foregoing Answer to Debtor's Objection to Amended Proof Of Claim 09 of AweriiCboicc Federal Credit Union, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: Joseph B. Sobel, Esquire, Attorney for Debtor PO BOX 828 Harrisburg, PA 17108-0828 Respectfully submitted, zie, Pykosh, Esquire 31j[10 Case 1:04-bk-05727-MDF Doc 59 Filed 03/09/10 Entered 03/09/10 16:40:04 Desc Main Document Page 7 of 7 MINUSCRIPT 1 AMERICHOICE FEDERAL CREDIT UNION, Plaintiff VS. SALVATORE NICASTRO AND LIVIA NICASTRO, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 10-7580 CIVIL ACTION - LAW March 9, 2011 c0*610,W Oral deposition of DALLAS ZULLI, held in the offices of DETHLEFS-PYKOSH LAW GROUP, LLC, 2132 Market Street, Camp Hill, Pennsylvania 17011, commencing at 10:26 a.m., on the above date, before Linda C. Larson, CSR, RPR, CLR, a Professional Court Reporter and a Notary Public of the Commonwealth of Pennsylvania. Linda C. Larson, CSR, RPR, CLR Court Reporter - Notary Public PREMIER REPORTING, LLC P.O. Box 186 Carlisle, Pennsylvania 17013 E-mail: linda@premierreportingllc.com Tel: (717) 243-9770 Fax: (717) 243-0413 21 23 1 think they're considered to be hearsay. 2 BY MR. PYKOSH: 3 Q. Mr. Zulli, these invoices, were they a part of 4 the records of your file, the Eric Nicastro file? S A. Yes. 6 Q. Were you involved with the work with the 7 attorney who produced these invoices? 6 A. Yes. 9 Q. And you at the time -- and you reviewed these 10 invoices; is that correct? 11 A. I reviewed the invoices, yes. 12 MR. PYKOSH: Okay. You know our position is 13 this is a business record and that was part of the file for 14 these invoices. And they were previously admitted In the 15 Sobel deposition as Sobel Number 9 or Number 10 in 16 yesterday's deposition. 17 BY MR. PYKOSH: 18 Q. So I'm going to ask you some questions about 19 those Invoices. But before I do, could you tell me, at some 20 point in time you hired Saidis, Shuff, Flower & Lindsay; Is 21 that correct? 22 A. Yes. 23 Q. Okay. And could you tell me the purpose for 24 your hiring this law firm? 25 A. The purpose of me hiring the law firm was to Premier Reoortino. LLC 1 loan? 2 ?A. I would a ree that was for us to be able to 3 sell the vehicle that he agreed to turn n. rough the bankruptcy, we cou n until we got the relief of 5 s-t_ a . 6 Q. Okay. But other than that, do you know of any 7 other charge on these invoices that do not relate to the SBA 8 loan? 9 A. I do not. Most of these related directly to 10 the SBA loan In conversations and correspondence and other 11 actions taken just to collect the SBA loan. If it wasn't 12 for the SBA loan, I wouldn't be involved. It's not one of 13 my responsibilities. 14 Q Okay. I just want to check something here 15 Do you recall what the billing rate was that Saidis, Shuff, ----------------------- 16 Flower & Lindsay was billing Americhoice? 17 A. I be eve t was n hour. 18 ay. n reca what the billing rate 19 for our office, Dethlefs-Pykosh Law Group, was? 20 A. I believe It was 200 an hour. 21 Q. Okay. And when 1 look through the invoices 22 for Zulli 9, there are instances there and they're 23 sporadic where it says no charge. Do you know what that 24 represents? 25 A. There was work done by the Saidis, Shuff, Premier Reporting, LLC 22 1 pursue the -- to deal with the bankruptcy filed by Eric 2 Nicastro and pursue the chain of the loan to Eric Nicastro. 3 Q. Okay. And If the SBA loan did not exist, 4 could you tell me what the bank's normal course of business 5 would be with regards to a bankruptcy filed by somebody 6 without an SBA loan? 7 A. Yes. Typically for consumer loans, which 8 there were three -- two Visa cards and one auto loan -- 9 we would not hire an attorney to file a group of claims. 10 We would likely hire an attorney to do the state of relief 11 so we could sell the vehicle. But most of the work is done 12 by our Collection's Department and an attorney is not 13 sought. 14 Q. Okay. 16 A. If It wasn't for the SBA loan being here, It's 16 a different course of action. 17 Q. Okay. Now, I want to draw your attention to 18 the invoice of November 30th. 19 A. Okay. Q. Now, you had just mentioned about a 11 nonbusiness loan, a loan dealing with an automobile, and yoir. 12 had hired an attorney to do a relief from the automatic 33 stay- ?here is an entry and it's for 11/19104 and 11/23/04 --r Id ou agree ?nat E"arenby-dnes no_ pacifically relate to the SBA Premier Reporting, LLC 24 1 Flower & Lindsay firm regarding this case that were not 2 charged to us or ultimately to the borrower. 3 MR. PYKOSH: I have no further questions. I 4 just move for the admission of my Exhibits 1 through 9. 5 MR. BECKLEY: Just for the record, we would 6 object to 9. We would object to 8. We would object to 7. 7 That's it. 8 MR. PYKOSH: Okay. 9 MR. BECKLEY: Just a second here. I want to 10 put these in order. 11 CROSS EXAMINATION 12 BY BECKLEY: 13 Q. Mr. Zulli, my name is Tom Beckley and I 14 represent the defendants in this action. I have a couple 15 questions to foliowup. If you could go back to what we've 16 labeled ZUIII 5, which is the Trial Balance and Accrual 17 Report. 18 A. Uh-huh. 19 Q. I want to go back to the entry that we looked 20 at, just so I'm dear, which is dated 7/14/2008. 21 A. Uh-huh. 22 Q. I think It's on the third page. Do you see 23 where I am? 24 A. Yep. 25 Q. Okay. As far as the transaction number, the Premier Reporting, LLC 11 04:02:23 PM Page 21 to 24 of 48 6 of 19 sheets 33 1 A. At some point, yes. Do I know the exact date 2 after five years plus? I'm sorry I don't. 3 (Zulli Deposition Exhibit No. 11 was marked.) 4 BY MR. BECKLEY: 5 Q. I'll show you what's marked as ZuIII 11. And 6 this is a petition flied by Eric Nicastro from the 7 Bankruptcy Court. 8 A. Okay. 9 Q. And I will represent that I only copied two 10 pages of It. The front page is what you're looking at. 11 It's a copy of what's called Schedule D, which Is the second 12 page. And if you look -- do you recall when you saw this or 13 have you ever seen this? 14 A. Yes. I'm sure I've seen this at some point. 15 Q. Do you know when you got this report? 16 A. I do not know the date of receipt. 17 Q. Would you have received It right around the 18 time the petition was filed? 19 A. Probably shortly thereafter I would Imagine. 20 Q. If a customer at the bank or credit union -- 21 I'm sorry. If a customer of the credit union vied 22 bankruptcy and documents were sent to the credit union, who 23 at the credit union would get the paper? 24 A. Typically the Collection's Department. 25 Q. Okay. What would they do for them? Premier Reporting, LLC 34 1 A. Forward them directly to me. 2 Q. And that was true back in September of '04? 3 (Witness nods head.) 4 BY MR. BECKLEY: 5 Q. Is that a yes? 6 A. Yes. Sorry. I guess she can't hear a nod. 7 Q. Now, looking at the second page of Schedule D, 8 you see sort of halfway down there it says Americhoice FCU, 9 statutory lien, and the amount of the claim is $37,553.10. 10 A. Yes. 11 Q. Do you recall seeing that figure back when you 12 got the loan or when you got the bankruptcy papers? 13 A. Yes. 14 Q. Okay. Would you agree that that figure 15 matches the figure in your letter of August 23rd? 16 A. Yes. 17 Q. Okay. It was your understanding -- was it 18 your understanding that was the amount that Eric Nicastro 19 declared as the full amount of the debt owed? 20 A. As of August 24th, 2004 it would have been. 21 Q. Okay. Well, was -- 22 A. The payment schedule is August 24th, 2004. 3 Q. This was filed, if you look at the bottom ;ti4 number, September 21st of '04. d A. Which would have been after that date. Premier Reporting. LLC 19 sheets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35 Q. Which would have been about a month after that date. Is it fair to say that then you should add roughly a month of Interest to that figure? A. Roughly. Q. And you would agree that Eric Nicastro did not appear to do that? A. It looks like nothing was added, but it does state in there as of 8/24/2004. Q. Do you know if, when you got this, did you make any effort to contact either Eric Nicastro or his attorney to Indicate the amount was wrong? A. Directly I did not. My attorney. 0. Okay. Are you the guy at Americholce that was sort of dealing with this on behalf of Americholce? A. Yes. Q. Do you know whether or not you would have made any effort to indicate that the amount on the schedule D was Incorrect? A. I made that effort to my attorney. But I made the effort to state that it did not include interest accrued from that date and so forth. I forgot. I'm sure I provided my attorney this letter which you provided. I believe that came from the bankruptcy proceedings, did it not? (Zulli Deposition Exhibit No. 12 was marked.) BY MR. BECKLEY: Premier Reporting, LLC 36 Q. I'm showing you what we'll call Zulll 12. And this is a document flied in Bankruptcy Court. It's entitled Chapter 13 Plan Notice. Do you ever recall seeing this notice? A. I do recall seeing this notice. Q. And it was filed, judging from the bottom, on September 21st of '04. Is It fair to say you would have seen It shortly after that? A. That's fair to say. 0. Okay. And could you look at the third page? In the bottom right-hand corner there is actually a three. In the middle of the page It says secured debts which will not extend beyond the life of the plan, and there is the Americhoice debt. And It appears that he's going to pay $726 a month for a total payment of $43,560. Do you see that? A. Q. A. Q. A. 0. correct? A. Q. Page 33 to 36 of 48 I see that. Do you see the Interest rate is six percent? I do. Is that the interest rate on the loan? No. That's because the loan had a variable rate, Correct. Do you recall what the rate was back In Premier Reporting, LLC 03/15/201104:02:23 PM • A@PmedChoice Mid FEDERAL CREDIT UNION Building Relationships For Life Monday, August 23, 2004 Eric Nicastro Nicastro Chiropractic Health Center 1010 Wesley Drive Mechanicsburg, PA 17050 Dear Eric Nicastro: As of 8/24/2004 the payoff amount for loan GP6650424002 is as follows: Principal Interest Late Fee Penalty Amount Other Fees Total Due Daily Accrual 37,003.54 489.16 60.40 0.00 0.00 $37,553.10 $7.35 Should you have any questions or concerns please contact me at (717) 591-1266. Sincerely, ...e.? Dallas zulli Business Lending Officer EXHIBIT 2 Al 3 -I -a o» LZ Main mice: 2175 Bumble Bee Hollow Road • Mechanicsburg, PA 17055 • Phone: (717) 697-3474 • Fax: (717) 697-3713 Webslte. www.americhoice.org ENDE ....?..•, Claim 7-1 Part 2 Filed 02122M rlAar% at*nm%n%mmnia 6 - ""'°"fi Wes[ Group, Rochester, NY United States Bankruptcy Court - L-._ _ f t MIDDLE District of pmws1'LVA[v?A M of Debtor (If Individual, enter Last, First, Middle): ''• '?' r. •? ri Nar11e of Joint Debtor (spouce)(Last, First, Middle): I&TRo, ERIC L. her Names used by the Debtor In the last 6 years All Other Names used by the Joint Debtor in the last 6 years married, maiden, and trade names): NICASTRO CAIJtOPRJICTSC NBALM CANTER (Include married, maiden, and trade names): c./Tax I.D. No. M more then one. elate en): *-2078 Soc. Sec.' I dX W. No. Of more than one, mists an): ddress of Debtor (No. a Street, cry, sate a Zip code: Street Address of Joint Debtor (No. a street, city, slate a ZO Code): NADLEY CR D1MMLAND PA 17070 of Residence or of the Canty of Residence or of the i Place of Business: y0y Address of Debtor to different kern street address>: Princi al Place of Business: Mailing Address of Joint Debtor Of dr5eranl From SVOW addraas): ofPr1elt011pal Assets Of Business Debtor EXHIBIT ram ataK.ddrsae abovak MM APPI.SCAELE '1 NA • . . °1-Z) c)?ti ) LL ... - _" "„L.-.? ??.- W-'?'?, AR^T,t? v •i? ?r•?yiOl Tl:. . Check any applicable box) r has been domiciled or has had a residence, principal place of business, or principal assets In this District for 180 days Immediately ling the date of this peition or for a longer part of such 160 days than In any other District. Is a bankruptcy case concerning debtor's affiliate, general partner, or partnership pending In this District. Type of Debtor (Check all boxes that apply) Chapter or Section of Bankruptcy Code Under Which U81(s) ? Railroad the Petition Is Filed (Check one box) ration ? Stockbroker ? Chapter 7 rshlp ? Commodity Broker ? Chapter 9 ? Chapter 11 'Chapter 13 ? Clearing Bank ? Chapter 12 ? Sec. 304 - Case ancillary to foreign proceeding Nature of Debts (Check one box) Tier/Non-Business ? Business Filing Fee (Check one box) der 11 Small Business ® Full Filing Fee attached (Check all boxes that apply) ? Filing Fee to be paid in Installments (Applicable a small business as defined in 11 U.S.C. § 101 Must attach signed application for the courVe onsideration is only) Is and elects to be considered a small business under certifying that the debtor Is unable to pay fee except in installments. C. § 1121(e) (Optional) Rule 1006(b), See Official Form No. 3, (Administrative Information (Estimates only) THIS SPACE IS FOR COURT USE ONLY tsilmates that funds will be available for distribution to unsecured creditors. estimates that, after any exempt property is excluded and administrative expenses (f?? We will be no funds available for distribution to unsecured creditors. r. lumber of Creditors 1.15 1 6-49 50.99 100.199 200-M 100",,er ..? ? ® ? ? ? ? t : assts - ISO,oot to $100 000 S100,00110 M.001 5 to $1,000,00110 $101000,00110 450 000 00110 M t - -ry , ? 4500,000 ? mo 1 41 rttlligi , , $10 mlaon $50 MR" 4100 M$lm ora han $100 maven ? ? ? ? ? !0,00110 1100000 $100,001 to 4600,001 to $1,000.00110 $10,000,001 to 450 000 0011 t 4600,000 81111111111101111 . . , 410 Moon M ntlaon 4100 MMM Mots than $100 nVMW ?a ? ? ? ? ? _J . 1:04-bk-05727-MDF Doc 1 Filed 09/21/04 Entered 09/22/0411:57:11 Desc West Grnup, Rochester, NY ERIC L. Debtor Case No. SCHEDULE D-CREDITORS HOLDING SECURED CLAI (if known) MS name, malting address, Including zip code, and account number, If any, of all entities holding claims secured by kg of the petition. List creditors holding all types of secured Interests such as Judgment liens, garnishment , statutory (lens, the debtor as of the other security Interests. List creditors In alphabetical order to the extent practicable. If all secured creditors property ofmortgages, >n sheet provided. deeds of will not fit on this page, use the ly other than a spouse in a joint case may be jointly liable on a claim, place an "X" In the column marked "Codebtor" Include the a I schedule of creditors and complete Schedule H - Codebtors. If a joint petition Is filed, slate maybe gable on each claim by placing an "H," "W," "J," or "C" in the column labeled "Husband, Wife, Joint, or Communlt " nNtyon the ' whether husband, mvAlb, u both of them or the marital Is contingent, place an "X" in the column labeled "Contingent." If the claim Is unliquldated, place an "X" in y Kited, place an "X" in the column labeled "Disputed." (You may need to place an "X" in more than one of these three columns. the column labeled "Unliquldated." If the btal of all claims listed on this schedule In the box labeled 'Total- on the last sheet of the c ) [Schedules. ompleted schedules, Report this total also on the box N debtor has no creditors holding secured dorms to report on this Sdtedule D. rs Name and Malting Address c Date Claim was Incurred Including Zip Code , a Nature of Lien, and Description and a A I Arnount of Claim Unsecured . Market Value of Property Subject to Lien i I P Without Portion 11 on H-Huebsrtd t ° t "I , Deducting Value y w-WNa s d a of collateral 0?03-3? J-,Joint r C-Comnwn ° ° d t n t r 1 2003 d R PCU P urchase NOlieY Becurjty X 8 18,000.00 --" 1,725. S 1,725. i mum DRIVE 2003 JEEP LIBERTY 7110 PA 17050-2392 Value: d 16,275. 00 06630I21002 8-?f-01 L? L tatutemy Ltsn X d 37.351.10 $ 37, AZ 1?y?s ROAD Value: $ 0.00 rr QRWPREY 8. Bwrr, re rou 2109 NARRET erjtVET QUZRS CAMP RILL PA 17011 Value: Value; 1111611111111' INladled Subtotal: (Tole) of 00 55, 553. IG Deaa (ues C* on Net p'W. Rom bW oleo °^ M.,, .n of sottal $ -55,533.10 =04-bk-05727-MDF Doc 1 Filed 09/21/04 Entered 09/22104 11:57:11 Desc CERTIFICATE OF SERVICE It is hereby certified that copies of the documents to be filed have already been served, on March 28, 2011, upon the following persons in the manner below indicated. FIRST CLASS MAIL Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 Dated: / 3 1 1/ / G. Milakovic i AMERICHOICE FEDERAL IN THE COURT OF COMMON PLEAS OF CREDIT UNION, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. CIVIL ACTION SALVATORE NICASTRO and LIVIA NICASTRO, NO. 10-7580 CIVIL TERM Defendants IN RE: DEFENDANTS' PETITION TO STRIKE OR TO OPEN JUDGMENT BY CONFESSION BEFORE OLER, J. ORDER OF COURT AND NOW, this 20th day of July, 2011, upon consideration of Defendants' J Petition To Strike or To Open Judgment by Confession, following argument held on April 7, 2011, and for the reasons stated in the accompanying opinion, Defendants' petition is denied in part and granted in part. Defendants' petition as it relates to striking the confessed judgment against them is denied; however, Defendants' petition to open the confessed judgment is granted. Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 Attorney for Plaintiff -tom N ?a r° na C-) t? C-5, dcD C)`r ?..,.? t q BY THE COURT, I ? John G. Milakovic, Esquire 101 Beckley & Madden - GU'" 212 North Third Street P.O. Box 11998 00po f Harrisburg, PA 17108 Attorney for Defendants AMERICHOICE FEDERAL CREDIT UNION, Plaintiff V. ; SALVATORE NICASTRO and : LIVIA NICASTRO, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 10-7580 CIVIL TERM IN RE: DEFENDANTS' PETITION TO STRIKE OR TO OPEN JUDGMENT BY CONFESSION BEFORE OLER, J. OPINION and ORDER OF COURT OLER, J., July 20, 2011. In this civil action, counsel for Plaintiff appeared on behalf of Defendants, pursuant to a warrant of attorney in an "Unconditional Guarantee" agreement (the Guarantee Agreement), and confessed judgment in favor of Plaintiff and against Defendants as guarantors in the amount of $20,429.041 as a result of the debtor's alleged failure to pay all amounts due under a certain promissory note (the Note). For disposition at this time is a petition by Defendants to strike or open the judgment against theme entered by confession on December 9, 2010.3 Defendants petition the court to strike the judgment against them on the basis of Plaintiff's failure to comply with Pennsylvania Rule of Civil Procedure 2952 in that Plaintiff's filing did not include ' Confession of Judgment, filed Dec. 9, 2010. z Defendants' Petition To Strike or To Open Judgment by Confession, filed Jan. 13, 2011 (hereinafter Petition, _). 3 Confession of Judgment, filed Dec. 9, 2010. the following: (a) an averment that the copy of the instrument was a true and correct reproduction of the original; (b) an averment that the judgment was not being entered against a natural person in connection with a consumer credit transaction; (c) a statement of any assignment of the instrument; and (d) a statement that judgment had not been previously entered on the instrument or, if it had been entered, an identification of the proceeding hwere the entry occurred.4 The bases upon which Defendants petition the court to open the judgment have been expressed as follows: (1) the Note was fully satisfied by the debtor, Eric L. Nicastro (the Borrower), through a Chapter 13 bankruptcy plan, resulting in no further liability on the part of Defendants as guarantors; or, alternatively, (2) the amount of the judgment was patently unreasonable and included attorney's fees that were unrelated to the collection of the Note.S For the reasons set forth in this opinion, Defendants' petition to strike will be denied and the petition to open will be granted. STATEMENT OF FACTS In this action, (a) Defendants petitioned the court to strike or open the confessed judgment against them and requested a stay of proceedings,6 (b) the court issued a Rule upon Plaintiff pursuant to Pennsylvania Rule of Civil Procedure 206.6, directing Plaintiff to show cause why the relief requested should not be granted,7 and (c) a further evidentiary record was made pursuant to Pennsylvania Rule of Civil Procedure 206.7 by 4 Petition, § 1, ¶ 2. 5 Petition, § II, ¶ 3-8. 6 Petition, §§ I-11. Order, filed Jan. 21, 2011. 2 way of the filing of depositions of individuals names Joseph B. Sobels and Dallas Zulli.9 Based upon a review of the record and judicially noticeable matters in this court, the facts may be summarized as follows: On October 14, 2003, Plaintiff AmeriChoice Federal Credit Union Provided Eric L. Nicastro (the Borrower) with a $40,000.00 United States Small Business Administration loan.10 The loan, which was documented by the Note, was executed by the Borrower in his individual capacity.11 This loan was associated with a business by the name of Nicastro Chiropractic Health Center. 12 At the time of the execution of the Note, Defendants Salvatore and Livia Nicastro signed the Guarantee Agreement as guarantors to ensure repayment of the Small Business Administration loan extended to the Borrower. 13 The Guarantee Agreement included the following language: 1. GUARANTEE: Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Guarantee remains in effect until the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender makes written demand upon Guarantor. Lender is not required to s Praecipe To File Depositions and Exhibits Thereto, filed April 1, 2011. Excerpts of the deposition of Dallas Zulli are included as Exhibit B of this filing. 9 Praecipe, Deposition of Dallas Zulli, 15-17, filed Mar. 29, 2011 (hereinafter Dep. of Zulli, ?. 10 U.S. Small Business Administration Note, p. 1, attached to Confession of Judgment, Ex. A, filed Dec. 9, 2010. 11 U.S. Small Business Administration Note, p. 1, attached to Confession of Judgment, Ex. A, filed Dec. 9, 2010. 12 U.S. Small Business Administration Note, p. 1, attached to Confession of Judgment, Ex. A, filed Dec. 9, 2010. 13 U.S. Small Business Administration Unconditional Guarantee p. 1, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. 3 seek payment from any other source before demanding payment from Guarantor. 14 The Guarantee Agreement provided for confession of judgment against Defendants as follows: 10. STATE-SPECIFIC PROVISIONS: GUARANTOR HEREBY VOLUNTARILY, KNOWINGLY, UNDERSTANDINGLY AND IRREVOCABLY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE AT ANY TIME TO APPEAR FOR AND CONFESS JUDGMENT THEREIN AGAINST GUARANTOR FOR THE ENTIRE UNPAID PRINCIPAL BALANCE OF THE NOTE AND THE ACCRUED AND UNPAID INTEREST THEREON AND LATE CHARGES AND ALL OTHER SUMS DUE UNDER OR IN CONNECTION WITH THE NOTE, WHETHER OR NOT A DEFAULT HAS OCCURRED, AND WITH OR WITHOUT COMPLAINT FILED, AS ELECTED BY LENDER, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF FIVE PERCENT (5%) BUT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00), WITH RELEASE OF ERRORS, AND WITHOUT RIGHT OF APPEAL; AND FOR SO DOING, THIS GUARANTEE OR A COPY HEREOF VERIFIED BY AFFIDAVIT OR SWORN STATEMENT SHALL BE SUFFICIENT WARRANT. GUARANTOR WAIVES THE RIGHT TO ANY STAY OF EXECUTION AND THE BENEFIT OF ALL EXEMPTION LAWS NOW OR HEREAFTER IN EFFECT. EXECUTION MAY IMMEDIATELY BE ISSUED ON THE JUDGMENT, WITHOUT PRIOR NOTICE OR HEARING, TO GARNISH, LEVY OR ATTACH ANY PERSONAL PROPERTY OF GUARANTOR. NO SINGLE EXERCISE OF THE FOREGOING WARRANT AND POWER TO CONFESS JUDGMENT SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER SHALL ELECT, UNTIL 14 U.S. Small Business Administration Unconditional Guarantee, ¶ 1, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. 4 ALL SUMS PAYABLE OR THAT MAY BECOME PAYABLE BY GUARANTOR HAVE BEEN PAID IN FULL.15 Along with the above warrant of authority to confess judgment against Defendants, both Salvatore and Livia Nicastro signed and initialed a Disclosure for Confession of Judgment form, which stated the following: THE UNDERSIGNED IS EXECUTING, THIS 14TH DAY OF OCTOBER, 2003, AN UNCONDITIONAL GUARANTEE ("GUARANTY") PAYABLE TO AMERICHOICE FEDERAL CREDIT UNION ("LENDER") IN CONNECTION WITH A LOAN IN THE AMOUNT OF $40,000.00 TO ERIC L. NICASTRO, FOR COMMERCIAL PURPOSES. THE UNDERSIGNED'S ATTORNEY OR A REPRESENTATIVE OF LENDER HAS EXPLAINED TO THE UNDERSIGNED THAT THE GUARANTY CONTAINS WORDING THAT WOULD PERMIT THE LENDER TO ENTER JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, WHETHER OR NOT AN EVENT OF DEFAULT HAS OCCURRED, WITHOUT NOTICE, AND WITHOUT OFFERING THE OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, AND THAT THE JUDGMENT MAY BE COLLECTED BY ANY LEGAL MEANS WITHOUT A PRIOR NOTICE OR A HEARING BY USE OF THE SHERIFF, WHO MAY SEIZE PROPERTY, REAL AND PERSONAL, WITHOUT PRIOR NOTICE OR HEARING. IN EXECUTING THE GUARANTY, THE UNDERSIGNED IS KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO RESIST THE ENTRY OF JUDGMENT AGAINST THE UNDERSIGNED AT THE COURTHOUSE, AND IS CONSENTING TO THE CONFESSION OF JUDGMENT. THE UNDERSIGNED IS FURTHER KNOWINGLY, UNDERSTANDINGLY, AND VOLUNTARILY WAIVING THE RIGHT TO ANY PRIOR NOTICE OR HEARING PRIOR TO THE LENDER'S SEIZING OF THE PROPERTY BY WRIT OF EXECUTION AGAINST BANK ACCOUNTS AND PERSONAL AND/OR REAL PROPERTY AFTER THE ATTAINMENT OF A JUDGMENT BY CONFESSION. THE UNDERSIGNED CERTIFIES THAT THE GUARANTY WAS EXECUTED IN CONNECTION WITH A COMMERCIAL TRANSACTION AND DOES NOT INVOLVE A CONSUMER 15 U.S. Small Business Administration Unconditional Guarantee, ¶ 10, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. 5 TRANSACTION, 'THAT THE UNDERSIGNED'S INCOME EXCEEDS $10,000.00 ANNUALLY, AND THAT THE UNDERSIGNED RECEIVED A COPY OF THE DISCLOSURE AT THE TIME OF SIGNING.16 Both Defendants placed their initials directly beneath each paragraph to acknowledge their acceptance of the particulars of this provision. 17 On September 21, 2004, the Borrower filed for Chapter 13 bankruptcy protection in the United States Bankruptcy Court for the Middle District of Pennsylvania (Bankruptcy Court). 18 AmeriChoice was listed as a creditor in connection with the Note in the amount of $37,553.10.19 The Borrower simultaneously filed a Chapter 13 Plan (the Plan), which proposed, inter alia, that the Borrower repay the debt on the Note with an interest rate of 6% over a 60-month period for a total repayment of $43,560.00.20 The Plan as proposed stated that, "[u]pon payment of the amount allowed by the Court as a secured claim in the Plan, the secured creditors included in the Plan shall be deemed to have their full claims satisfied ...."21 On February 22, 2005, Plaintiff filed a Proof of Claim with the Bankruptcy Court, stating that the outstanding balance on the Note, 16 U.S. Small Business Administration Unconditional Guarantee, Disclosure for Confession of Judgment, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. " U.S. Small Business Administration Unconditional Guarantee, Disclosure for Confession of Judgment, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. 18 United States Bankruptcy Court Middle District of Pennsylvania Voluntary Petition, attached to Petition, Ex. B, filed Jan. 13, 2011. 19 United States Bankruptcy Court Middle District of Pennsylvania Voluntary Petition, attached to Petition, Ex. B, filed Jan. 13, 2011. 20 Chapter 13 Plan, attached to Petition, Ex. C, § II, ¶ 6, Sec. (c), filed Jan. 13, 2011. 21 Chapter 13 Plan, attached to Petition, Ex. C, § 11, ¶ 5, Sec. (a), filed Jan. 13, 2011. 6 including interest and other charges, was $37,758.90.22 This claim also listed three other outstanding debts of the Borrower owed to AmeriChoice - a debt on a vehicle loan, a debt on a personal credit card account, and a debt on a business credit card account.23 The Plan proposed to pay only the outstanding balance of the Note. Plaintiffs Proof of Claim form observed that the Plan was not intended to satisfy the outstanding balances of all the debts owed to Plaintiff by the Borrower and stated that the "Debtor's Plan currently proposes to pay only such portions of the obligation to AmeriChoice as are guaranteed by Salvatore and Livia Nicastro...... 24 On March 18, 2005, Plaintiff filed a document entitled Objection to Debtor's Chapter 13 Plan Filed by AmeriChoice Federal Credit Union, which, inter alia, objected to the Plan's prohibition of any action against Defendants as guarantors for any amounts not proposed to be paid through the Plan. 25 On August 25, 2005, a Stipulation, which resolved Plaintiffs objections to the Plan, was filed that provided as follows: (1) Plaintiff and the Borrower would revisit the feasibility of the Plan in July of 2006, at which time Plaintiff would have the right to petition the court for relief against the Borrower, Defendants, and the Small Business Administration; 26 and (2) Defendants would continue 22 Proof of Claim, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 6, filed on Apr. 1, 2011. 21 Proof of Claim, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 6, filed on Apr. 1, 2011. 24 Proof of Claim, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 6, filed on Apr. 1, 2011. 25 Objections to Debtor's Chapter 13 Plan Filed by AmeriChoice Federal Credit Union, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 4, filed on Apr. 1, 2011. 26 Stipulation, ¶ 13, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 5, filed on Apr. 1, 2011. 7 to act as guarantors for the Note. 27 On September 28, 2005, the Bankruptcy Court entered an Order Confirming [the] Chapter 13 Plan. 28 On December 21, 2005, Plaintiff filed an amended Proof of Claim form with the Bankruptcy Court that stated that the outstanding balance of the Note was actually $48,941.45, along with continuing interest, and not $37,758.90 as was previously stated on the initial Proof of Claim.29 On February 10, 2010, the Borrower filed a Debtor's Objection to Amended Proof of Claim #9 of AmeriChoice Federal Credit Union, maintaining, inter alia, that Plaintiff had waived its right to collect more than the stipulated amount, $43,560.00, and that payment of the stipulated amount to Plaintiff was to be in full satisfaction of the Note under the approved Plan.30 On April 29, 2010, the Bankruptcy Court issued an order disallowing Plaintiff's amended Proof of Claim as it exceeded the amount payable to Plaintiff under the Plan as approved.31 On May 18, 2010, the Bankruptcy Trustee, Charles J. DeHart, III, submitted a Chapter 13 Standing Trustee's Final Report and Account, which evidenced the Borrower's satisfaction of the 27 Stipulation, ¶ 14, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 5, filed on Apr. 1, 2011. 28 Order Confirming Chapter 13 Plan, attached to Petition, Ex. E, filed Jan. 13, 2011. 29 Proof of Claim, attached to Praecipe To Filed Depositions and Exhibits Thereto, Ex. Sobel 7, filed on Apr. 1, 2011. 30 Debtor's Objection to Amended Proof of Claim #9 of AmeriChoice Federal Credit Union, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 8, filed on Apr. 1, 2011. 3' Order, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 13, filed on Apr. 1, 2011. 8 debt owed to Plaintiff in accordance with the confirmed Chapter 13 Plan.32 On May 19, 2010, the Borrower was granted a discharge by the Bankruptcy Court.33 On December 9, 2010, Plaintiff filed a Complaint Pursuant to Pa.R.C.P. 2951(b) for Confession of Judgment for Money Damages in this court due to Defendants' alleged refusal to fulfill their obligations as guarantors under the Guarantee Agreement.sa Paragraph 10 of the Guarantee Agreement and the Disclosure for Confession of Judgment form, as quoted above, provided for the authority of any attorney, including Plaintiff's counsel, to confess judgment against Defendants in the event of default.35 A judgment was entered against Defendants in the amount of $20,429.04, a sum that was comprised of the following: (a) $5,847.37 for the remaining principal on the Note; (b) $350.27 for interest as of December 6, 2010; (c) $9,231.40 for attorney's fees associated with collection of the Note; and (d) $5,000.00 for attorney's fees pursuant to the Guarantee Agreement. 36 On December 15, 2010, the sheriff served Defendants with notice of the confessed judgment against them .37 On January 14, 2011, Defendants filed the Petition To Strike or To Open Judgment by Confession sub judice, contending, in their petition to strike, that the 32 Chapter 13 Standing Trustee's Final Report and Account, attached to Petition, Ex. F, filed Jan. 13, 2011. 33 U.S. Bankruptcy Court Middle District of Pennsylvania Docket 1:04-bk-05727-MDF, attached to Petition, Ex. A, filed Jan. 13, 2011. 34 Complaint Pursuant to Pa.R.C.P. 2951(b) for Confession of Judgment for Money Damages, attached to Confession of Judgment, filed Dec. 9, 2010. " U.S. Small Business Administration Unconditional Guarantee, ¶ 10, attached to Confession of Judgment, Ex. B, filed Dec. 9, 2010. 36 Confession of Judgment, filed Dec. 9, 2010. 37 See Docket # 2010-07580. 9 complaint filed by Plaintiff for confession of judgment against Defendants was not in compliance with Pennsylvania Rule of Civil Procedure 2952 by reason of its (a) failure to aver that the copy of the attached instrument was a true and correct reproduction in accordance with Rule 2952(a)(2), (b) failure to state in the complaint that the judgment was not being entered by confession against a natural person in connection with a consumer transaction in accordance with Rule 2952(a)(3), (c) failure to include a statement of any assignment of the instrument in the complaint as required under Rule 2952(a)(4), and (d) failure to include a statement that judgment had not previously been entered on the instrument in any jurisdiction or, if it had been so entered, failure to identify the proceeding at which it occurred in accordance with Rule 2952(a)(5).38 Defendants alleged in their petition to open that the Note associated with the Guarantee Agreement pursuant to which judgment has been confessed had been paid in full or, alternatively, that the amount of the judgment against Defendants was patently unreasonable, inasmuch as the total was about three times the amount of the remaining principal allegedly owed on the Note, and included fees that were unrelated to the collection of the Note. 39 Dallas Zulli, in his capacity as Vice President of Business Lending at AmeriChoice Federal Credit Union, testified in a deposition that there remained an outstanding balance on the Note, as a result of the application of a certain variable interest rate and because of legal expenses relating to the Note that were uncompensated 38 Petition § I, ¶ 2. 39 Petition § II, ¶¶ 3-8. 10 in the Plan.40 Mr. Zulli conceded that at least one of the charges listed on the billing invoices used to calculate the attorney's fees for the confessed judgment was unrelated to the Note, but stated that he was unaware of any other charges that were not directly related to the Note.41 Mr. Zulli also testified that he did not believe that the amount proposed in the Plan was meant to be in full satisfaction of the Note.42 Joseph B. Sobel, a practicing attorney who acted as counsel for the Borrower toward the end of the bankruptcy process, testified in a deposition that, because both the initial Proof of Claim and the amended Proof of Claim included four discrete claims, he determined that it was necessary to investigate whether the attorney's fees being pursued by Plaintiff actually arose in connection with the collection of the Note.43 Mr. Sobel testified that he reviewed several billing invoices44 concerning legal services purportedly rendered in connection with efforts to collect the balance of the Note .45 Mr. Sobel also testified that, after a thorough review, he "found evidence" tending to show that some of the services listed in the invoices were not rendered in relation to the Note and, thus, were 40 Dep. of Zulli, 15-17. 41 Dep. of Zulli, 22-23. Mr. Zulli testified that he believed "most of [the attorney's fees]" were related to the collection of the Note. Dep. of Zulli, 30. Mr. Zulli also testified that he was involved in this case specifically because it involved a Note guaranteed by the Small Business Administration and that he did not handle cases involving consumer debts such as credit card accounts. Dep. of Zulli, 30. 42 Dep. of Zulli, 38. 43 Deposition of Joseph B. Sobel, 7, attached to Praecipe To File Depositions and Exhibits Thereto, filed Apr. 1, 2011 (hereinafter Dep. of Sobel, _). 44 Billing Invoices, attached to Praecipe To File Depositions and Exhibits Thereto, Ex. Sobel 10, filed on Apr. 1, 2011. " Dep. of Sobel, 8. 11 not guaranteed by Defendants under the Guarantee Agreement.46 Mr. Sobel further testified that, although he was not able to isolate every service that was unrelated to the Note, he was able to identify several invoice entries that were seemingly unrelated to the collection of the Note.47 Mr. Sobel testified that the following invoice entries were unrelated, in whole or in part, to the collection of the Note: (1) charges relating to the filing of a motion for a stay in the Bankruptcy Court that did not concern the Note; (2) services rendered for the repossession and resale of a vehicle that served as collateral for an unrelated debt; and (3) services rendered regarding the Proof of Claim forms, which pertained to all four of the discrete claims and not just the Note.48 A Rule was issued on January 20, 2011, upon Plaintiff to show cause why Defendants were not entitled to the relief requested.49 On February 7, 2011, Plaintiff filed a Response to Defendants' Petition To Strike or To Open Judgment by Confession.50 The deposition of Joseph B. Sobel, Esq. was conducted on March 8, 2011 and filed on April 11,201 1.5 1 The deposition of Dallas Zulli was taken on March 9, 2011 and was filed on March 29, 2011.52 Argument was held on April 7, 2011 pursuant to an order of court dated January 20, 2011.53 46 Dep. of Sobel, 8. 47 Dep. of Sobel, 9-10. 48 Dep. of Sobel, 9-10. 49 Order, filed Jan. 21, 2011. 51 plaintiff's Response to Defendants' Petition To Strike or To Open Judgment by Confession, filed Feb. 7, 2011. 51 Dep. of Sobel, filed April 1, 2011. 52 Dep. of Zulli, filed Mar. 29, 2011. 53 Order, filed Jan. 21, 2011. 12 DISCUSSION Statement of Law Petition to strike, generally. A petition to strike a confessed judgment may be granted only when a "fatal defect or irregularity" is apparent on the face of the record. Atlantic Nat'l Trust, LLC v. Stivala, 2007 PA Super 96, ¶8, 922 A.2d 919, 922, citing Resolution Trust Corp. v. Copley Qu-Wayne Assocs., 546 Pa. 98, 683 A.2d 269, 273 (1996). The court, when evaluating the merits of a petition, is limited to reviewing the record in the light most favorable to the "party in whose favor the warrant is given." Id. A petition to strike will not be granted when the defect, mistake, or omission may be remedied by an amendment to the record. Id. at ¶10, 922 A.2d at 923. The court must ultimately determine whether or not the defect is prejudicial or otherwise affects the substantive rights of the petitioner. Id. at ¶10, 922 A.2d at 923; West Penn Send & Gravel Co. v. Shippingport Sand Co., 367 Pa. 218, 221, 80 A.2d 84, 86 (1951). Courts should not strike a judgment merely to enforce technicalities, but rather if the petitioner has a substantive meritorious defense to the judgment the proper course of action is to open the judgment to hold further proceeding on the matter. Id. "A warrant of attorney to confess judgment must be strictly construed and conform strictly with its terms." Roche v. Rankin, 406 Pa. 92, 97, 176 A.2d 668, 671 (1962) (citations omitted). The terms found within the instrument may not be "extended by implication or inference beyond the limits expressed in the instrument." Id. at 97, 176 A.2d at 671-72. If the judgment entered includes only those items that are within the limits of the warrant of attorney, but for an excessive amount, the court shall modify the 13 judgment to reflect the proper amount to be entered under the warrant. Id. at 97, 176 A.2d at 672. However, the court should strike a judgment if "(1) the judgment was entered for a grossly excessive amount and, hence, was an improper use of the authority given in the warrant; or, (2) the judgment entered shows on its face that unauthorized items were included." Id. Petition to open judgment, generally. A petition to open judgment is an appeal to the court's equitable powers and its disposition is within the sound discretion of the court. Aquilino v. Philadelphia Catholic Archdiocese, 2005 PA Super 339, ¶33, 884 A.2d 1269, 1283 (citations omitted). A petition to open a judgment is the proper method of seeking relief from a judgment where the putative impropriety of the judgment is dependent on matters outside the record. Id. A petition to open may be granted if the petitioner: "(1) acts promptly, (2) alleges a meritorious defense, and (3) can produce sufficient evidence to require submission of the case to a jury." Rait P'ship, LP v. E. Pointe Properties I, Ltd., 2008 PA Super 225, ¶4, 957 A.2d 1275, 1277 (citations omitted). In a petition to open, the petitioner has the burden of proof "to substantiate its alleged defenses." Bell Fed. Sav. & Loan Ass'n of Bellevue v. Laura Lanes, Inc., 291 Pa. Super 395, 398-99, 435 A.2d 1285, 1286-87 (1981). A petitioner has the burden of providing "clear, direct, precise and believable evidence of a meritorious defense sufficient to raise a jury question." Stahl Oil Co., Inc. v. Helsel, 2004 PA Super 349, ¶10, 860 A.2d 508, 512 (2004) (citations omitted). To determine whether sufficient evidence has been presented, the court must view the evidence in "the light most favorable to the petitioner and accept as true all evidence and proper inferences therefrom supporting the 14 defense while [it] reject[s] adverse allegations of the party obtaining the judgment." Id. (citations omitted). "If evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment." Pa. R.C.P. 2959(e). When determining whether or not a genuine issue of material fact exists so as to require that the case be submitted to a jury, the court must abide by the rule articulated in Nanty-Glo v. American Surety Co., 309 Pa. 236, 163 A. 523 (1932). Penn Center House, Inc. v. Hoffman, 520 Pa. 171, 176, 553 A.2d 900, 903 (1989). The Nanty-Glo rule states that testimonial affidavits and depositions presented by the moving party or his or her witnesses, which are not documentary in nature, even if uncontradicted, do not provide a sufficient basis for the entry of summary judgment, as the credibility of testimony is a matter for the jury to decide. Id. Application of Law to Facts Defendants assert, in the instant action, that the confessed judgment against them should be stricken based upon Plaintiff's failure to comply with Pennsylvania Rule of Civil Procedure 2952(a)(2)-(5). However, these omissions do not amount to a fatal defect on the face of the record and would be easily remedied by an amendment to the record. Moreover, Defendants fail to indicate that these omissions were prejudicial or had any effect on their substantive rights. Additionally, it is not clear that the judgment on its face was so excessive as to show that Plaintiff's use of the warrant of authority was improper. Therefore, Defendants' motion to strike the confessed judgment against them will be denied. 15 On the other hand, Defendants have raised substantial issues of material fact concerning the propriety of the amount confessed against Defendants, in terms of attorney's fees and the principal balance on the Borrower's initial obligation remaining unpaid, if any, following the bankruptcy proceeding. Accordingly, Defendants' petition to open judgment will be granted. ORDER OF COURT AND NOW, this 20th day of July, 2011, upon consideration of Defendants' Petition To Strike or To Open Judgment by Confession, following argument held on April 7, 2011, and for the reasons stated in the accompanying opinion, Defendants' petition is denied in part and granted in part. Defendants' petition as it relates to striking the confessed judgment against them is denied; however, Defendants' petition to open the confessed judgment is granted. BY THE COURT, s/ J. Wesley Oler, Jr. J. Wesley Oler, Jr., J. Michael J. Pykosh, Esquire Dethlefs-Pykosh Law Group, LLC 2132 Market Street Camp Hill, PA 17011 Attorney for Plaintiff 16 John G. Milakovic, Esquire Beckley & Madden 212 North Third Street P.O. Box 11998 Harrisburg, PA 17108 Attorney for Defendants 17 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Americhoice Federal Credit Union NO. 10-7580 20 Plaintiff vs. Salvatore Nicastro and Livia Nicastro e-i Defendant =-n RULE 1312-1 The Petition for Appointment of Arbitrators shall be substantial MOO ly in the== Gr rri --- Orrn I Following form: c:) , PETITION FOR APPOINTMENT OF ARBITRATORS Z 20 "" M v-n o?' ` " n11 a TO THE HONORABLE, THE JUDGES OF SAID COURT: S? D y, Dethtefs-Pykosh Law Group, LLC, by Michael J. Pykosn counsel for the plaintiff/defendant in the above 00 action (or actions), respectfully represents that: 1. The above-captioned action (or actions) is (are) at issue. 2. The claim of plaintiff in the action is $ 20,429.04 plus interest and cost The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: Michael, J. Pykosh, Thomas S. Beckley and John G. Milakovic WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Respectful y s miffed, 4> 10 l a rh+ 1ftR8. $o pd a MILct& 3. P " e1. pt 119'NS d ORDER OF COURT AND NOW, 20j , in c nsideration of the foregoing petition, (? Esq., and Esq., and ?2U4xd1L? Esq., are appointed arbitrators in the abige - naiw? captioned action (or actions) as prayed for. r-n IOU By the Court, 00. -!c >> b -- 7t Kevin A. Hess, P.J. } y x- L+N M del T P%, 0sx , ?sd K eop;is m,Jed l/o i k- AMERICHOICE FEDERAL CREDIT UNION, Plaintiff VS. SALVATORE NICASTRO AND LIVIA NICASTRO Defendant : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No: 10-7580 - LAW CIVIL ACTION - LAW CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Petition for Appointment of Arbitrators, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: John G. Milakovic, Esquire Thomas S. Beckley, Esquire Beckley & Madden 212 North Third Street Harrisburg, PA 17108 RespectfuIIy,S}bn jtted, Date: t - to - Zo I Z Michael J. Pykosh, Esquire I. D. # 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Attorney for Plaintiff 1 Plaintiff / v-, Defendant In The Court of Common Pleas of Cumberland County, Pennsylvania No. Civil Action - Law. Oath We do solemnly swear (or affirm) that we will support, obey and defend the Constitution of the United States and the Constitution of this Commonwealth and that we will discharge the duties of our office with fidelity. L2gnature G h „? rat ???. ??11 Name (Chairman) Law Firm r- Address ignatureJ Name ?t -d, Vi jMA K. L<v Finn l 2ro . e Ro ?. Address Signature Name Law Firm ????// S 1pg1LI(c- / Address City, Zip City, Zip City, Zip Award We, the undersigned arbitrators, having been duly appointed and sworn (or affirmed), make the following ativ rd: (Note: If damages for delay are awarded the ? shall be separately stated.) v` ; ??`<p? ?..1??.? sky Ce?lU? of PICt6n cL C7 Q tRj p?-fs i? -y?.e 0 06a,?( o` 4J./3, l q .? Arbitrator, dissents. (Insert name if applicable.) Date of Hearing: 3 1.2 It (Chairman) Date of Award.: 1' ? J Notice of Entry of Award Now, the ?> yk day of /YO-L-,4 , 20 /a , at //52 , A .M., the above award was entered upon the docket and notice thereof given by mail to the parties or their attorneys. Arbitrators' compensation to f . upon appeal: S -//la. -5?' Prothonotary By: Deputy P;s tea. led S- p ° 2rn ? .. Michael J. Pykosh, Esquire I.D. #58851 DETHLEFS-PVKOSH LAW GROUP, LLC ¢ -? t k. i J i i '4 .3: 2132 Market Street Camp Hill. PA 17011 1,1:11 E R r "•D n U Telephone: (717) 975-9446 ?E l 41 itl _SYL ? Fax: (717) 975-2309 E-mail: m?c7_hui-d I,la??.com Attorney for Plaintiff AMERICHOICE FEDERAL CREDIT UNION, Plaintiff, V. SALVATORE NICASTRO and LIVIA NICASTRO Defendants, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Case No.: 2010-7580 -LAW PRAECIPE TO THE PROTHONOTARY OF CUMBERLAND COUNTY, PENNSYLVANIA: Please mark the above captioned matter as Settled, Satisfied and Dismissed. Respectively Submitted, DETHLEFS-PYKOSH LAW GROUP, LLC Date. 4 to By: Michael J. Pykosh, Esquire ID# 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone 717-975-9446 mpvk`oshr&i,, del glaw. com AMERICHOICE FEDERAL CREDIT UNION, Plaintiff, V. SALVATORE NICASTRO and LIVIA NICASTRO Defendants, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Case No.: 2010-7580 - LAW CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing PRAECIPE, was hereby served by depositing the same within the custody of the United States Postal Service, First Class, postage prepaid, addressed as follows: Salvatore Nicastro and Livia Nicastro c/o John G. Milakovic Beckley & Madden 212 North Third Street Harrisburg, PA 17108 Respectively Submitted, DETHLEFS-PYKOSH LAW GROUP, LLC Date: By: Michael J. Pykosh, Esquire ID# 58851 2132 Market Street Camp Hill, Pennsylvania 17011 Telephone 717-975-9446 mpykoshralglaw.com