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HomeMy WebLinkAbout11-4808r ROBERT A. KARNS and RONALD L. KARNS, Co- Executors under the Last Will and Testament of Goldie A. Karns, Deceased, Plaintiffs V. SOVEREIGN BANK, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - NO. CIVIL ACTION EQUITYC c' 0 `rt "0- = .1 ?? C- rn? EQ6n ff'Y -<' rn d' CD J r: `? -70 ) NOTICE TO DEFEND You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiffs. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 LAW OFFICES MARLIN R. McCALEB Marla R. McCaleb Attorney for Plaintiffs U ROBERT A. RONALD L. Executors Will and A. Karns, KARNS and KARNS, Co- under the Last Testament of Goldie Deceased, Plaintiffs V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NO. II -q EQUITY SOVEREIGN BANK, Defendant CIVIL ACTION COMPLAINT 1. Plaintiffs herein are Robert A. Karns and Ronald L. Karns, adult individuals and Co-Executors under the Last Will and Testament of Goldie A. Karns, Deceased ("Decedent.") dated February 27, 1986, and Codicil dated July 6, 2010. 2. Decedent died on July 15, 2010, and Letters Testamentary were issued to the Plaintiffs by the Register of Wills of Cumberland County, Pennsylvania, on July 30, 2010 (see Cumberland County Estate Number 21-10-00773). 3. Defendant herein is Sovereign Bank, a banking institution with an office and place of business at 798 East Simpson Street, Borough of Mechanicsburg, Cumberland County, Pennsylvania. 4. On or about September 17, 2008, Decedent entered into LAW OFFICES MARLIN R. McCALEB a Home Equity Line of Credit Agreement with Defendant which provided that Defendant would advance up to $20,000.00 to Decedent and that she would repay said advances, with interest, -2- according to the terms of said Agreement. A true copy of said Agreement (without signatures) is attached hereto and made a part hereof, marked Exhibit "A". 5. The aforesaid Home Equity Line of Credit was further secured by a mortgage on Decedent's personal residence at 3 South Road, Silver Spring Township, Cumberland County, Pennsylvania, that was recorded in the Office of the Recorder of Deeds on October 17, 2008, as Instrument Number 200834293. 6. Thereafter, from time to time, Defendant advanced funds to Decedent and Decedent made payments to Defendant on account of said advancements, all in accordance with the terms and conditions of the aforesaid Agreement. 7. When Decedent died on July 15, 2010, the outstanding principal balance of the said Home Equity Line of Credit was $6,476.29. A true copy of Defendant's Date-of-Death Value Statement is attached hereto and made a part hereof, marked Exhibit "B". 8. When Plaintiffs sold Decedent's principal residence on February 17, 2001, they paid off the full remaining principal balance of said Home Equity Line of Credit, together with the accrued interest, in the total amount of $6,608.97. Attached hereto and made a part hereof, marked Exhibit "C", is a true copy of the HUD-1 Settlement Statement, dated February 17, 2011. 9. As the result of such payment, Defendant caused the LAW OFFICES II MARLIN R. McCALEB -3- aforesaid mortgage to be satisfied upon the records of the Recorder of Deeds of Cumberland County, Pennsylvania. 10. Despite repeated requests by Plaintiffs, Defendant has failed and refused to return to them, as required by law, the original Home Equity Line of Credit Agreement that was signed by Decedent on September 17, 2008. 11. The original Home Equity Line of Credit Agreement is a negotiable instrument that, in the hands of someone claiming to be a holder in due course, could expose Plaintiffs to claims for additional payment. 12. Plaintiffs' Counsel has attempted to obtain access to Defendant's Counsel in an effort to resolve the issues herein without litigation but Defendant has failed and refused to provide such access. See Plaintiffs' Counsel's letter to Defendant dated April 26, 2011, a true copy of which is attached hereto and made a part hereof, marked Exhibit "D". 13. Plaintiffs believe and therefore aver that Defendant's refusal to return the original Home Equity Line of Credit Agreement to them and/or to provide them with access to Defendant's Counsel is dilatory, obdurate, vexatious and/or in bad faith. WHEREFORE, Plaintiffs respectfully request that your Honorable Court order and direct Defendant to return to Plaintiffs the original Home Equity Line of Credit Agreement dated September 17, 2008, and to pay to Plaintiffs their costs LAW OFFICES II MARLIN R. McCALEB -4- of suit and their reasonable Date: June 9 , 2011 attorne fees Marlin K. McCaleb Attorney I.D. No. 06353 219 East Main Street P.O. Box 230 Mechanicsburg, PA 17055 (717) 691-7770 FAX: (717) 691-7772 Attorney for Plaintiffs LAW OFFICES II MARLIN R. McCALEB -5- VERIFICATION ROBERT A. KARNS and RONALD L. KARNS, hereby certify and state: that we are the Co-Executors under the Last Will and Testament of Goldie A. Karns, Deceased, the Plaintiffs in the above-captioned Complaint; that we are authorized to make this verification; that the foregoing facts are true and correct to the best of our knowledge, information and belief; and that we understand that false statements herein are made subject to the penalties of 18 Pa.C.S.§4904, relating to unsworn falsification to authorities. Date: June 2011 Lr )Ro]Sert A. Karn , Co-E cutor -?y???/`? CC7 ?` Y c c4 + o•? Ronald L. Karns, Co-Executor LAW OFFICES II MARLIN R. McCALFB -6- `* Sovereign Bank. HOME EQUITY LINE OF CREDIT AGREEMENT " " Date: SEPTEMBER 17 2008 ( Agreement ) , ® New Agreement ? Amendment Borrower: GOLDIE A. KARNS Account No.: 4539056328 Borrower: Credit Limit: $ 20, 000.00 "Premises" Secured by Mortgage/Loan Security Agreement: 3 SOUTH RD , MECHANICSBURG, PA 17050 Lot/Book/Volume: Block/Page: City Register File #: We, Sovereign Bank, its successors and assigns, have approved your application for a new Home Equity Line Of Credit Account ("Account") or for an amendment to your existing Account. You, the person(s) who sign(s) as Borrower(s) below, may obtain advances charged to your Account up to your Credit Limit shown above. Under certain circumstances, we can: (1) terminate your Account, require you to pay us the entire outstanding balance in one payment, and charge you certain fees; (2) refuse to make additional extensions of credit; and (3) reduce your Credit Limit. These circumstances are described in the paragraph labeled "Our Absolute Obligation to Make Advances" which begins on Page 3. DEFINITIONS: As used in this Agreement (unless the context requires otherwise): "Annual Percentage Rate" means the annualized cost of the advances charged to your Account as the result of applying a Periodic Rate to your daily Account balances each billing cycle, "Finance Charge" means the dollar amount the advances charged to your Account will cost you, "New Balance" means the sum of the advances charged to your Account and our charges at the end of the billing cycle, "Periodic Rate" means the cost of the advances charged to your Account as a daily rate, and "Statement" means the monthly statement of our charges for your use of the Account. ADDITIONAL DEFINITIONS: "New Agreement"- if the "New Agreement" box above is checked, this Agreement is for a new Account. "Amendment"- if the "Amendment" box above is checked, this Agreement amends your existing Account. AMENDMENT: If this Agreement is an amendment to your existing Account, the terms and conditions of your existing Account are amended as provided in this Agreement. This Agreement does not extinguish your existing agreement or Account. This Agreement amends your existing Account and agreement to the extent of the provisions contained in it, such as the applicable Annual Percentage Rate, the Margin and Index applied to determine the rate, the computation of the Finance Charge, all other Fees and Charges, as well as the other terms set forth in this Agreement. This Agreement may also amend your Account to add a Fixed Rate Lock Conversion Option, which is described below. In the event of any conflict in terms between this Agreement and your existing agreement, the terms and conditions of this Agreement will control. TAX DEDUCTIBILITY: You should consult a tax advisor regarding the deductibility of interest and charges for your Account. CREDIT LIMIT: This Agreement covers a revolving line of credit for the principal amount specified above as your "Credit Limit" under this Agreement. If this Agreement amends your Credit Limit, then the Credit Limit shown above is the combined amount of the Credit Limit under your existing agreement and any increase or decrease, as applicable, in your Credit Limit resulting from this amendment. You may borrow against this line of credit, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit Limit during the Draw Period described below. Your Credit Limit is the maximum amount you may have outstanding at any one time. You agree not to attempt, request, or obtain an advance that will make your Account balance exceed your Credit Limit. Your Credit Limit will not be increased should you overdraw your Account. If you exceed your Credit Limit, you agree to repay immediately the amount by which your Account exceeds your Credit Limit, even if we have not yet billed you. While we are processing any payment you make and before we have posted that payment to your Account, your Credit Limit may not reflect that payment. In addition, we do not have to post a payment to your Account if we have reason to believe that the check or other instrument you sent to us as payment will not be honored. We may also delay reinstating your Credit Limit for the amount of any principal payment you make until we reasonably believe that the instrument you used to make your payment has been paid. ADVANCES & TERM: Unless extended by amendment, the length of the period of time during which you can obtain advances on your Account is 15 years and is referred to in this Agreement as the "Draw Period". If this Agreement is an amendment, your current Draw Period will be extended to . You can obtain advances during the Draw Period by drawing one of the special checks that we will supply to you to directly obtain advances on your Account. Or, you can use any instrument or device that we may later provide to you to access your Account. You may = obtain an advance on your Account to pay the Minimum Payments due on your Account. After the Draw Period ends, the repayment period will begin and you will no longer be able to obtain advances on your Account. The length of the repayment period is 15 years from the end of the Draw Period, as it may have been extended, with a final payment due on the following date of maturity: 08/17/2038. STATEMENTS: We will send you a Statement at the end of any billing cycle in which an advance, payment or credit is posted to your Account, we impose any charge, or if you have a balance on your Account. 066.mdf - rev(07i07) _ 1 _ CU` '"GMER COPY Exhibit "A" OUR SECURITY INTEREST: As security for all sums you owe on your Account, including future advances and our finance and other charges, all of the owners of the Premises identified above (called the "Owners") have executed a Mortgage/Loan Security Agreement on the above date in our favor. We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us. Our rights in the Premises and the obligations of the Owners are more fully described in the Mortgage/Loan Security Agreement. If this Agreement is an amendment, your existing Mortgage/Loan Security Agreement and the lien in our favor on your Premises created by it will continue uninterrupted. If we request, you agree to execute a modification and extension to that Mortgage/Loan Security Agreement on the same date as this Agreement, which increases or decreases the Credit Limit, or extends the Draw Period, or both, as applicable. OUR CHARGES FOR YOUR ADVANCES: 1. Periodic Finance Charges: A daily Periodic Finance Charge will be imposed on all advances made to your Account imposed from the date of each advance based on the "average daily balance" method. To get the average daily balance we take the beginning balance of your Account each day, add any new advances and subtract any payments or credits and any unpaid Finance Charges. This gives us the "daily balance". Then we add up all of the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the average daily balance. We compute the Periodic Finance Charge on your Account as follows. We multiply the average daily balance by the number of days in the billing cycle, and multiply the product by the daily Periodic Rate. a. Rate Changes. We will determine the Periodic Rate and the corresponding Annual Percentage Rate monthly as follows: We start with an independent index which is the highest rate reflected as the latest U.S. Prime Rate published in the Money Rates table of The Wall Street Journal (the "Index"). We will use the most recent Index value available to us as of the first business day of the calendar month to make any Annual . Percentage Rate adjustment. The Index is not necessarily the lowest rate charged by us on our loans. If the Index becomes unavailable during the term of this Agreement, we may designate a substitute index after notice to you. To determine the daily Periodic Rate that will apply to your Account, we add 0.990 percentage points (which includes any applicable Preferred Rate Reduction described below) (the "Margin") to the value of the Index, and then divide the result by the number of days in a year. To obtain the Annual Percentage Rate that corresponds to the Periodic Rate, we multiply the daily Periodic Rate by the number of days in a year. This result is the Annual Percentage Rate that corresponds to the Periodic Rate. This Annual Percentage Rate includes only interest and no other costs. The Periodic Rate and the corresponding Annual Percentage Rate may increase or decrease as often as once each month. The Periodic Rate and the corresponding Annual Percentage Rate will also increase upon the termination of any applicable Preferred Rate Reduction described below. The maximum ANNUAL PERCENTAGE RATE that can apply during the tens of this Agreement is the lesser of 18% or the maximum rate allowed by applicable law. The ANNUAL PERCENTAGE RATE will never be less than 1.99 %. Except for this 1.99 % minimum and this 18% maximum (or, if less, the maximum rate allowed by applicable law), e-t rF eTs no limit on the amount by which the Annual Percentage Rate or the corresponding Periodic Rate can change during any one-year period. The maximum interest payment for a 30 day period at the highest ANNUAL PERCENTAGE RATE permitted hereunder (18%) based on your Credit Limit shown above would be $ 295.89 Adjustments to the Periodic Rate and the corresponding Annual Percentage Rate resulting from changes in the index will take effect monthly, beginning with the first day of the first billing cycle in the calendar month. Preferred Rate Reduction: If you have asked us to automatically deduct your Minimum Payment from your Sovereign checking, money market or statement savings account, your Margin, Periodic Rate and your Annual Percentage Rate shown above reflect a reduction in the Margin (the amount of this reduction is the Preferred Rate Reduction). If you authorize us to automatically deduct your minimum monthly payments from a Sovereign Premier, Business Owner Premier, Partnership, Team Member Private or Team Member Checking, or Premier Money Market Savings or other qualifying account, your margin (and Annual Percentage Rate) has been reduced by .50%. If you authorize us to automatically deduct your minimum monthly payments from any other Sovereign deposit account, your margin (and Annual Percentage Rate) has been reduced by.25%. If the automatic deduction service stops for any reason, your Margin, and thus your Annual Percentage Rate, will increase by 0.250 or 0.500 percentage points, as applicable, and your corresponding Periodic Rate will also increase. You may stop this automatic deduction service by telling us or by closing your Sovereign checking, money market or statement savings account. We may stop this automatic deduction service if you do not maintain enough funds in your checking, money market or statement savings account to pay your Minimum Payment. b. The Initial Rate. Based on the Index and Margin and any applicable Preferred Rate Reduction in effect on the day you signed this Agreement, the initial ANNUAL PERCENTAGE RATE is 5.990 %, which corresponds to an initial daily Periodic Rate of 0.01641 %. Loan Protection Plan(s): If you have purchased the optional Sovereign Loan Protection Program, additional fees will be charged. Please see your Loan Protection Plan Agreement and related disclosures for additional details. 2. Late Charges: If your Minimum Payment is not received within 15 days of the Payment Due Date shown on your Statement, we will impose and you agree to pay a Late Charge of 10% of the Minimum Payment or $20, whichever is greater. 066.mdf-rev(07107) _ 2 _ CUS-10 4ER COPY Exhibit "A" 3. Application Fee: We will charge a non-refundable fee of $250 only when the Account is opened and used for Swing Line purposes. (A Swing Line is interim financing secured by the existing property and is used for the purchase of a new residence prior to the safe of the existing property.) 4. Termination Fee: if you request that we close your Account within 30 months of the Date of this Agreement shown above and you were not required to pay any closing costs when the Account was opened, we will impose a Termination Fee of $220. We will waive this fee If your Account is refinanced with us or if the Account was used for Swing Line purposes. 5. Fixed Rate Lock Fee: We may charge a fee of $50 to your Revolving Account for each Fixed Rate Lock. This fee is a FINANCE CHARGE. Please see the paragraph below entitled "Fixed Rate Lock Conversion Option." 6. Annual Fee: You will be charged and you agree to pay an Annual Fee of $50.00 during th a Draw Period. The Annual Fee will be charged in the 13th month after you open the Account and in about the same billing cycle of each following year during the Draw Period. If you have a Sovereign Premier, Business Owner Premier, Partnership, Team Member Private or Team Member Checking or other qualifying account, your Annual Fee will be $0. If you close your Sovereign Premier, Business Owner Premier, Partnership, Team Member Private or Team Member Checking or other qualifying account you will be charged an Annual Fee of $50.00 during the Draw Period. 7. Other Charges: We impose the following additional charges on your Account: a. We impose a Return Item Charge of $30 whenever your payment is returned for insufficient funds or any other reason. b. We will charge you $20.00 for each hour (or portion of an hour) of research that we perform at your request, unless done in connection with a proper written notice of a billing error. C. We will charge and you agree to pay an overlimit fee of $30, when any special check or other request for an advance would cause you to exceed the Credit Limit, whether or not we honor your request. d. If a traditional appraisal was obtained and you request a copy in the first 90 days from the date this loan was closed, you will pay us a charge at the rate of $5 per page. e. If you request a copy of any document, including a special check or a Statement, we will impose a charge of $5 per page for each copy you request. If your request is related to a billing error (see "Your Billing Rights" notice) and an error is found, we will reverse any photocopying charges. f. We will charge and you agree to pay a fee of $25 whenever you request that we stop payment of a special check or other request for an advance on your Account. g. We charge you for our actual costs of Credit Reports and Appraisals incurred in investigating whether any condition permitting us to temporarily suspend credit availability or reduce the Credit Limit on your Account continues to exist. h. The current applicable fee to discharge the Mortgage or terminate any UCC Financing Statement securing this extension of credit and any extension or modification of it will be added to the payoff amount. Except as otherwise required by law, this fee will be waived if you agree to record the discharge of the mortgage or terminate any UCC Financing Statement yourself. i. If you request us to send you a payoff statement by facsimile transmission, we will charge you our then- current fee (currently $20) that will be added to your payoff amount. MINIMUM PAYMENT: You promise to pay the advances and our Finance Charges and other charges as provided in this Agreement. To the extent your payments reduce the outstanding balance to an amount less than the Credit Limit, they restore your credit availability during the Draw Period. Whenever a balance is outstanding, each month you must pay us a Minimum Payment, which we must receive by the Payment Due Date shown on your Statement. The amount of any Minimum Payment or any other payment that is applied to principal or interest (Finance Charge) on your Account may vary, based upon when payments are received. You may at any time pay more than the Minimum Payment without incurring a penalty, but if you request that we dose your Account under the circumstances set forth in subparagraph 4 of the paragraph of this Agreement entitled "Our Charges For Your Advances", we will impose a Termination Fee as set forth in that subparagraph. If you make a payment that exceeds your Minimum Payment, or make an additional payment when no payment is then due, we will apply the excess or additional payment amount to any balance in the Revolving Account portion of your Account before we apply it to any Fixed Rate Lock(s) you may have established on your Account. RECEIPT OF PAYMENTS: All payments must be made by check, automatic account debit, electronic funds transfer, money order, or other instruments in U.S. dollars and must be received by us at the remittance address shown on your periodic billing statement. Payments received at that address prior to 3:00 PM Eastern Standard Time on any business day will be credited to your Credit Line as of the date received. If we receive payments at other locations, such payments will be credited promptly to your Credit Line, but crediting may be delayed for up to five (5) days after receipt. If you have selected to make your payments by automatic account debit, payment transfers will be processed on the date the payment is due monthly. If the scheduled date falls on a Sunday or a bank holiday, the transfer will be processed on the next business day. If funds for the payment are uncollected or insufficient on the transfer date, an insufficient funds charge may be assessed. If the payment is returned to us, the payment will be your responsibility for that month. If you do not maintain sufficient funds to process your payment transfer, your preauthorized transfer may be cancelled and any Preferred Rate Reduction may be terminated. Payments received at any of our community banking offices on a business day (Monday - Friday) before the cut off time posted at that office will be credited to your Account as of the date of receipt. Payments received on a non-business day (Saturday, Sunday or a bank holiday) or after the posted cut off time will be credited to your Account as of the following business day. ELECTRONIC PAYMENT: Each time you make a payment by check, we may convert your check into an electronic payment. By sending us a check, you authorize us to convert your check. When we do this, the funds may be withdrawn from your account more quickly than if we processed your original check so always make sure you have enough funds in your account to make your payment. After we convert it, your check will not be sent back to you because we are required to destroy it. We do, however, keep an electronic copy. If you do not wish us to convert your check or if you need more information, please call us at 877-768 2265. 066.mdf - mv(07ro7) - 3 - (XOT MEP, COPY Exhibit "A" - your doing of any unlawful act that subjects the Premises to seizure by governmental authorities, - your failure to pay taxes on the Premises, - your permitting any liens to be filed on the Premises which are superior to ours, - foreclosure by any prior mortgagee or lienholder which adversely affects our interest in the Premises, - a taking of all or part of the Premises in a proceeding in eminent domain or condemnation, - the death of the sole Borrower obligated on your Account, or if there are more than one of you, the death of any of you or any Owner of the Premises that results in a transfer of title to the Premises to a person who is not a party to our security interest in the Premises or that otherwise adversely affects our security in the Premises, or, - if the Premises is a cooperative apartment, you break any of the promises you have made under the proprietary lease of the Premises, your proprietary lease is cancelled or terminated, the cooperative corporation fails to pay when due any mortgage payments, leasehold payments and/or real estate taxes it is obligated to pay, or to insure the building in which the Premises is located, or foreclosure, bankruptcy or insolvency proceedings are brought by or against the cooperative corporation, and any of such adversely affects our security or any right we have in the security. If one or more of the above events occurs, we can temporarily or permanently reduce your Credit Limit or suspend your ability to obtain advances, or we can declare your Account to be in default. However, we can declare your Account in default only by personally delivering or mailing to you a written Notice of Default. Our Notice of Default will become effective when we personally deliver it to you or place it in the mails, even though you might not receive our mailed Notice of Default. If we declare your Account in default we will immediately terminate credit availability on your Account. If we choose, we may also send you a Notice of Intention to Take Action, advising you that if you do not cure the default within the time period then provided by law, we will demand repayment of the entire outstanding balance in one immediate payment and exercise our security interest and right of set-off against any of your property, including deposit accounts, then in our possession (unless prohibited by applicable law). Except as otherwise provided below, if we don't receive payment in full, we may also foreclose upon the Premises and take any other collection action allowed to us by law. You agree to pay our court costs and collection fees we incur in the collection and enforcement of your Account, as well as our reasonable attorney's fees, to the extent permitted by law, if we refer your Account to an attorney or collection agency for collection. You agree to pay Finance Charges at the variable Annual Percentage Rate provided in this Agreement on the outstanding balance of your Account until we receive payment in full, even if we have demanded payment in full or obtained a judgment against you. If you cure the default in the manner provided by law you will restore your right to make Minimum Payments each month as if you had never been in default, but you will not restore your right to obtain additional advances on your Account. If one or more of the above events occurs, we may elect to waive our right to declare your Account in default. If we waive that right, we will remain absolutely obligated to make all advances you properly request on the Account during the Draw Period. However, that waiver does not bind us if a similar or different event occurs later. At that time, we have the right to decide whether to declare your Account in default. For New Hampshire Borrowers: if we don't receive payment in full, we may also foreclose upon the Premises and take any other collection action allowed to us by law. You agree to pay us all reasonable costs we incur to collect this debt or realize on any security, to the extent permitted by law. This includes court costs, attorney fees for services rendered by an attorney for collection when the attorney is not our salaried employee, and/or collection agency fees. However, if you prevail in any action, suit or proceeding we bring or in an action you bring, reasonable attomeys' fees shall be awarded to you. If you successfully assert a partial defense, setoff, recoupment or counterclaim to an action brought by us, the court may withhold from us the entire amount or such portion of the attorneys' fees as the court deems appropriate. You agree to pay Finance Charges at the variable Annual Percentage Rate provided in this Agreement on the outstanding balance of your Account until we receive payment in full, even if we have demanded payment in full or obtained a judgment against you. If . you cure the default in the manner provided by law you will restore your right to make Minimum Payments each month as if you had never been in default, but you will not restore your right to obtain additional advances on your Account. 2. All of you request final termination of your Account. Final termination at the request of all of you will become effective as soon as we terminate your ability to obtain advances and all sums owed to us and our charges are paid in full. At that time, we will terminate the security interest or provide appropriate documents to you to enable you to terminate the security interest in the Premises. 3. You or we temporarily reduce your Credit Limit or temporarily suspend your ability to obtain advances, which can be done only if any one or more of the following events occur: a. Any of you notify us, in person or in writing, of an intention to terminate your Account, or that you do not want to be obligated for any advances obtained or to be obtained by any others on the Account (except in connection with a good faith billing dispute), or any Owner advises us of an intention not to obligate the Premises for existing or future advances. We will treat a request for termination by less than all of you, or by an Owner who is not also a Borrower, as a request for temporary suspension. Such suspension will become effective as soon as we can reasonably act to stop new advances from being made on your Account. However, we may honor any and all requests for advances which were made or are dated prior to that time. b. Any of the following things happen and we choose to freeze your Account by temporarily reducing your Credit Limit or suspending your ability to obtain advances: (1) The value of the Premises declines significantly below its original appraised value. (2) We reasonably believe that you will tie unable to fulfill the repayment obligations under this Agreement because of a material change in your financial circumstances. oss.mdf - rev(07107) - 5 - CUITOMER .:OPX Exhibit W (3) We are precluded by government action from imposing the Annual Percentage Rate provided in this Agreement. (4) The priority of our security interest in the Premises is adversely affected by government action to the extent that the value of our security interest is less than 120 percent of the Credit Limit. (5) You are in default of any of the following "material obligations" under this Agreement: (a) Any of you fails to honor your obligations on any prior security interest in the Premises. (b) Any of you does not pay any other obligation you owe to us or to others as and when that obligation comes due, or a proceeding is begun by or against any of you under the Federal Bankruptcy Code. . (c) Any of you are incarcerated or declared legally incompetent. (d) Any of you fails to promptly provide us with satisfactory financial information which we may request from time to time or to cooperate with us in appraising the Premises which we may elect to do from time to time. (e) If there are more than one of you, the death of the person on whose income we primarily relied in agreeing to open the Account for you. (f) You move out of the Premises or convert the Premises from your residence or vacation home to an investment or rental property. (g) You permit an intervening lien to be filed against the Premises that would take priority over future advances made by us. (6) We are notified by our regulatory agency that continued advances on your Account constitute an unsafe and unsound practice. (7) The maximum Annual Percentage Rate is reached. (8) An event occurs which gives us the right to declare your Account to be in default. We will send you a Notice Of Credit Freeze not later than three business days after we take such action, advising you of the specific reasons for our action. Our Notice Of Credit Freeze will advise you that you may request reinstatement of your credit privileges when the condition which led to our action no longer exists (and provided that no other condition listed above exists that would allow us to freeze your Account by temporarily reducing your Credit Limit or suspending your ability to obtain advances). 4. The Draw Period Ends. YOUR OBLIGATIONS CONTINUE ON TEMPORARY SUSPENSION: Upon temporary suspension, whether by you or by us, you remain obligated to repay all amounts owed to us as provided in this Agreement, including our Finance Charges and other charges. This means you must continue to make at least the Minimum Payments each month under the terns of this Agreement. REINSTATEMENT: You may request reinstatement of the credit privileges on your Account for the remainder of the Draw Period at any time after the condition that permitted us to temporarily reduce your Credit Limit or suspend your ability to obtain advances ceases to exist (provided that no other condition exists that would allow us to freeze your Account by temporarily reducing your Credit Limit or suspending your ability to obtain advances). If you request reinstatement you may be required to pay any reasonable appraisal and credit report fees we actually incur in investigating whether any condition permitting the freeze continues to exist. We will reinstate credit privileges on your Account when we find that those conditions have ceased to exist. If any one of you or any Owner of the Premises requested temporary suspension of the Account, we will reinstate your Account for the remainder of the Draw Period if all of you advise us in writing of a desire to reinstate the Account. However, we may refuse to reinstate your Account until we are assured that our rights in any security for your Account have not been adversely affected by the temporary freeze. TAXES; REPAIRS: You agree to pay all taxes on the Premises and to maintain the Premises in good condition and repair. OTHER ADVANCES: If you fail to purchase property insurance, or do not pay taxes when they come due, or do not properly maintain the Premises, we may, if we choose (but without any obligation on our part), advance sums on your behalf for these purposes in order to protect our interest in the Premises. Any advances we make on your behalf will not excuse you from your failure to honor your promises and obligations in this Agreement. The amounts we advance on your behalf will be charged to your Account in the same manner as any other advance made by us to you hereunder. OWNERSHIP OF SPECIAL CHECKS: You agree that the special checks and any other credit instruments or devices which we may supply to you to use in connection with your Account are our property. Unused special checks and any other credit instruments or devices must be returned to us immediately upon demand. We will retain all special checks and other credit instruments you draw in connection with your Account. PROOF OF ADVANCES: Your Statements will indicate the current status of your Account and identify the transactions posted during the billing cycle. If you need evidence of an advance or other transaction, we will provide you with a photographic or other reasonable reproduction of any special check or other document that you request. You agree that such evidence will be satisfactory to you for all purposes. REFUSAL TO HONOR REQUESTS FOR ADVANCES: We will not be responsible if, for any reason, anyone fails or refuses to honor special Account checks or any other credit instrument or device we provide to you to obtain advances on your Account. AMENDMENTS: We may amend this Agreement by entering into a separate written agreement with you, or by making a change that is either beneficial to you or insignificant. However, you will be responsible for increases in taxes and property insurance premiums on the Premises. If we temporarily reduce the rate or fees charged on your Account below those contained in this Agreement, we can impose the agreed rate or fees by giving you notice of the change in terms. 066.mdf - rev(07/07) _ 6 _ C:USTOMER COPY Exhibit "A" The paragraphs in this Agreement that are entitled "Advances & Term," "Our Charges for Your Advances, #1. Periodic Finance Charges" "Payment Options," "Change to Payment Option" and "Our Absolute Obligation to Make Advances" assume that you have not elected the Fixed Rate Lock Conversion Option described below. However, if you elect the Fixed Rate Lock Conversion Option, the following terms modify the above-listed paragraphs, as described below: FIXED RATE LOCK CONVERSION OPTION: After you open your Home Equity Line of Credit Account, you may ask us to change your variable interest rate to a fixed rate of interest on all or a portion of your principal balance ("Fixed Rate Lock"), as long as we consider your Account to have been in good standing at all times. This option will be available only during the Draw Period. If there is more than one Borrower on your Account, all of you agree that we may establish a Fixed Rate Lock upon the request of any one or more of you. The minimum amount of your principal balance for which you may elect a Fixed Rate Lock is $5,000. The repayment term for any Fixed Rate Lock must be at least 12 months and may not exceed 180 months or the maturity date of your Home Equity Line of Credit Account, whichever is earlier. You may have up to four Fixed Rate Locks outstanding on your Account at any one time. However, you may not transfer a Fixed Rate Lock balance to a new Fixed Rate Lock balance for a period of 12 months following the establishment of the Fixed Rate Lock balance, and you may not transfer additional amounts to any Fixed Rate Lock once it has been established. The portion of your credit line that is not transferred to a Fixed Rate Lock is called your Revolving Account. The amount of each Fixed Rate Lock will reduce your available credit on your Revolving Account. As you repay the principal balance of each Fixed Rate Lock, your available credit on your Revolving Account will increase as a result. The fixed rate of interest applicable to a Fixed Rate Lock will be determined at the time of each Fixed Rate Lock request and will be based on our current market rate at that time for Fixed Rate Home Equity Loans, except that the rate applicable to a Fixed Rate Lock will never be greater than 18% ANNUAL PERCENTAGE RATE or less than 1.99% ANNUAL PERCENTAGE RATE. The rate may depend on a number of factors, including loan amount, loan-to-value ratio, property type, credit history and the automatic payment deduction option, if any, you have selected. Once the rate of each Fixed Rate Lock has been established, that rate will not change. A recent ANNUAL PERCENTAGE RATE that we have charged on a $10,000 Fixed Rate Home Equity loan was 8.09%. This Annual Percentage Rate included only interest and not other costs. As an example, the monthly payment for a Fixed Rate Lock of $10,000 at 8.09% ANNUAL PERCENTAGE RATE for a period of 120 months would be $121.80. The amount of each Fixed Rate Lock payment will be included in your minimum Payment Due on your monthly statement. Regardless of the Draw Period Payment Option you select on your Revolving Account, repayment of each Fixed Rate Lock will be based on substantially equal monthly payments for a term you choose (but not to exceed 180 months or the maturity date on the Account, whichever is earlier) in an amount sufficient to repay the principal balance of each Fixed Rate Lock, together with interest at the Annual Percentage Rate for each Fixed Rate Lock. A daily periodic Finance Charge will be imposed on your Fixed Rate Lock balance from the date each Fixed Rate Lock is established, based on the "average daily balance" method. The amount of your final payment for each Fixed Rate Lock may vary, depending on whether your monthly payments are received early, on time, or following their due dates. After each Fixed Rate Lock is established, the minimum monthly Payment Due on your Account will include the minimum monthly payment for your Revolving Account described above, plus the minimum monthly payments for all Fixed Rate Locks outstanding. The minimum monthly Payment Due for your Account will be reflected on your monthly billing statement. Payments received will be applied to the minimum monthly payment for each Fixed Rate Lock in the order each Fixed Rate Lock was established. We may charge a fee of $50 to your Revolving Account for each Fixed Rate Lock. This fee is a FINANCE CHARGE. BINDING EFFECT: If more than one of you signs as Borrower, each of you will be liable, separately and together, for all advances obtained on the Account. All of you agree that any one or more of you may obtain advances on the Account. This Agreement obligates you and your estate, heirs and personal representatives and benefits us and our successors and assigns. We may add or release parties, or permit the addition or substitution of collateral subject to our security interest, or modify, extend or amend this Agreement without in any way affecting your obligations on this Agreement. CONTINUED EFFECTIVENESS: If we honor special Account checks or other requests for advances after your death or declaration of legal incompetency, but before we receive actual written notice of either event, those advances will be valid, legal and binding obligations on you and your estate, heirs and personal representatives. IRREGULAR PAYMENTS; DELAY IN ENFORCEMENT: We may accept partial or late payments of sums due on your Account without losing any of our rights under this Agreement. We may even accept checks or drafts marked "paid in full" or with similar language indicating that our accepting the payment would be in full satisfaction of your outstanding balance, without being bound by that language or losing any of our rights under this Agreement. Any such payments must tie mailed to: Sovereign Bank, Mail Stop 10-421-CP2, Consumer Finance, P.O. Box 12646, Reading, PA 19612. We can delay enforcing our rights under this Agreement without losing them. CREDIT REPORTS AND APPRAISALS: From time to time, we may review your Account to determine whether, in our reasonable opinion, a material change has occurred in your financial circumstances that would leave you unable to fulfill the repayment obligations under this Agreement. As part of such reviews, we may obtain additional credit reports on you, inspect or reappraise the Premises, and request additional financial information from you. You agree to cooperate with us in performing such reviews and to promptly provide satisfactory financial information to us. 066.mdf - rev(07/07) -7 - MER CQPY Exhibit "A" TRANSFER AND ASSIGNMENT: Your rights under this Agreement belong only to you. You cannot transfer or assign them to anyone else. We may transfer and assign our rights and obligations under this Agreement and the Mortgage/Loan Security Agreement at any time without your consent. The person to whom we transfer and assign this Agreement and the Mortgage/Loan Security Agreement shall be entitled to all of our rights and subject to all of our obligations under this Agreement and the Mortgage/Loan Security Agreement. None of your obligations shall be affected by our transfer and assignment. APPLICABLE LAW; ENTIRE AGREEMENT: You agree that this Agreement is to be governed by Pennsylvania law (without regard to principles of conflicts of law or choice of law), except and to the extent governed by federal law applicable to federal savings banks, including 12 USC 1463 and 1464. If this is a New Agreement, it is the entire agreement between you and us. If any provision of this Agreement is held to be void or unenforceable, the rest of this Agreement shall remain in effect. YOU ACKNOWLEGE RECEIVING A COMPLETED COPY OF THIS AGREEMENT. PLEASE RETAIN A COPY FOR YOUR RECORDS. l0r-ML) (SEAL) Borrower Borrower GOLDIE A. KARNS Borrower (°CNLJ Borrower (SEAL) tatHL! Borrower Borrower (SEAL) Borrower Borrower 066.mdt - rev(07/07) _6 _ CUS11,01MER COPY Exhibit "A" Sovereign Bank ESTATE OF Goldie A. Karns SOCIAL SECURITY 193-24-1339 DATE OF DEATH: July 15, 2010 Account #: 1685210435 Type: CD Open date: 9/26/1983 In the name of. Goldie A Karns or Ronald L Karns or Robert A Karns or Paul W Karns Date of Death Balance: $4,000.00 Int.(YTD) from I/1/2010 to 6/30/2010 $66.34. Accrued interest to date of death: $5.86 Other Info: This account was formerly Harris Savings Bank account # 1816003088 Account #: N-4539056328 Type: In the name of. Goldie A Karns Bal. due on date of death: Line of Credit $6,476.29. Open date: 9/2/2008 Exhibit "B" ?P??RNr? r A. Settlement Statement (HUD-1) SRN oeJl? R_ T- of Loan OMB Approval No. 2502-0265 1. © FHA 2.E] RHS 3. QConv. Unins. 4. Q VA 5. Q Conv. Ins. 6. Fib Number: 11018 7. Loan Number: 5800993920 8. Mortgage Insurance Case Number: 446-0609843 C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked '(p.o.c.)' were paid outside the dosing; they are shown here for informational purposes and are not Included in the totals. D. Name and Address of Borrower: Amanda E. Bressler 14 George Circle Mechanicsburg, PA 17050 E. Name and Address of Seller: Estate of Goldie A. Kams F. Name and Address of Lender: Fulton Bank One Penn Square, Suite 304 Lancaster, PA 17602 G. Property Location: 3 South Road Mechanicsburg, PA 17050 Cumberland County, Pennsylvania H. Settlement Agent: 25-1878915 Keystone Land Transfer, Ltd. 3421 Market Street Camp Hill, PA 17011 Ph. (717)731-4200 I. Settlement Date: February 17, 2011 Place of Settlement: 3421 Market Street Cam Hip, PA 17011 J. Summary of Borrower's transaction K. Summary of Seller's transaction 100. Gross Amount Due from Borrower. 400. Gross Amount Due to Seiler. 101. Contract sales rice 118 000.00 401. Contract sales price 118 000.00 102. Personal property 402. Personal property 103. Settlement Charges to Borrower Line 1400 6,250.83 403. 104. 404. 105. 405. Ad ustments for items aid Seller In advance Adjustments for Items W Seller In advance 106. C /room Taxes to 406. C frown Taxes to 107. County Taxes to 407. County Taxes to 108. School Tax 02/17/11 to 07/01/11 351.23 408. School Tax 02/17/11 to 07/01/11 351.23 109. 409. 110. 410. 111. 411. 112. 412. 120. Gross Amount Due from Borrower 124,602.06 420. Gross Amount Due to Seiler 118,351.23 200. Amounts Paid or In Behalf of Borrower 500. Reductions in Amount Due Seller. 201. Deposit or earnest money 1,000.00 501. Excess deposit see Instructions 202. Principal amount of new loans 115 008.00 502. Settlement charges to Seiler Line 1400 8,591.00 203. Existing loans taken subject to 503. Exlsfirtg bans taken subject to 204. 504. Payoff First Mortgage to Sovereign Bank/tf453905632 6,608.97 205. 505. Payoff Second Mortgage 206. 506. 207. 507. (Deposit diab. as proceeds) 208. 508. 209. Seger Assistance 6,000.00 509. Seller Assistance 6,000.00 Adjustments for Items unpaid b Seller Ad ustments for items unpaid b Seller 210. Cl frown Taxes to 510. C frown Taxes to 211. County Taxes 01/01/11 to 02117/11 46.07 511. County Taxes 01/01/11 to 02117/11 46.07 212. School Tax to 512. School Tax to 213. 513. 214. 514. 215. 515. 216. 516. 217. 517. Escrow for Inheritance Tax to Keystone Land Transf 5,825.001 218. 518. 219. 519. 220. Total Paid b lfor Borrower 300. Cash at Settlement fromlto Borrower 122,054.07 520. Total Reduction Amount Due Seller 600. Cash at settlement tolfrom Seller 27,071.04 301. Gross amount due from Borrower line 120 124 602.06 601. Gross amount due to Seller line 420 118 351.23 302. less amount aid /for Borrower line 220) ( 122,054.07) 802. Less reductions due Seller line 520 ( 27,071.04 303. Cash E From [j To Borrower 2,547.99 603. Cash O To Ej From Seller 91,280.19 The undersigned hereby acknowledge receipt of a completed copy of this statement 3 any attachments referred to herein Borrower AVZ-1 Amanda E. Bressler Seller Estat=(Id . Ka s BY: / Th. Pubrc Rm)wVno Buren for O* eolocdon of IdonnaOw in aWn*Wd .135 n*KA.. pw m.pms. for eolscrnp. rwinwlq. ww r.p.Miq rat dais. Thin .ywwy may not mftd ft r0orrm4m .nd ym we not ro*i d lo W, 1. ft lam, udms r dspinys a ar ray valld OMB =W mm*w. No carAM-oaay I- s.R &. W. d.dosw• in mmd"". lids Is d.Wgrod to provide m. p.ras to . RESPA cw.r.d rw -ft An koo meOm dudq IN ..W-A p-... Page 1 of 3 Exhibit "C" HUD-1 (11018/11018143) 700. Total Real Estate Broker Fees $ 7,305.00 Paid From Pam Ftnm , S ll r of commission (line 700) as follows: 1 Borrowers d : e e s 701. 3,765.00 to C-21 Piscioneri Realty, Inc. Fds . di Fund at t 702. 3,540.00 to Re/Max Real Associates Inc. se gamant Settlemen 1 Commission aid at settlement 703 7 305.00 , . 704. Broker Fee to Re/Max Resit Associates, Inc. 295.00 1 1 705. 800. Items Payable In Connection with Loan 801. Our origination charge $ 695.00 from GFE #1 802. Your credit or charge (points) for the specific interest rate chosen $ -575.04 (from GFE #2) 803. Your ad usted o ' ination char es from GFE #A 119 Appraisal fee to Central nn A raisers Inc. 804 from GFE #3 50.00 POC 8 -50.00 . 805. Credit Report to Credstar from GFE #3 9.62 806. Tax service to (from GFE #3 Flood certification to First American Flood Services 807 from GFE #3) 11.50 . 808. Inspection Fee to Central Penn Appraisers, Inc. (from GFE #3) 100.00 809. from GFE #3) 810. from GFE #3) 811. from GFE #3 900. Items Required Lander to Be Paid in Advance 901. Dairy interest charges from 02/17/11 to 03/01/11 12 $14.966790/da (f GFE 179.60 902. Mort a insurance romfum for months to FuMon Bank Life of Ln 1 138.70 903. Homeownee.- nsurance for 1.0 ars to Done al Mutuel fB385.00 904. f 905. (f tsd with Lender 1000. Reserves Ds oal 1001. Initial deposit for your escrow account E 894.60 0 . omeowne a nsurance 3.000 mont s 30.42 per moM 1003. Mort a insurance 0 er month 1004. Property taxes Coun Taxes months s per month Assessments er month 1005. 1006. months (g) $ per month $ 1007. County Tax 13.000 months @ $ 29.81 per month $ 387.53 1008. School Tax 9.000 months @ $ 79.73 per month $ 717.57 1009. Aggregate Adjustment $ -301.76 1100, Title Charges 1101. Title services and lender's title insurance (from GFE #4) 1,253.75 1102. Settlement or cloatn fee $ 11 1103. Ownsrs title insurance to First American Title Ins. Co. from GFE #5 10.00 1104. Lender's title Insurance to First Amancen Title ins. Co. $ 1,088.75 1105. Lender's title policy limit $ 115 008.00 PAL#1069240 1106. Owner's title policy limit $ 118 000.00 PA00107237 1107. Agent's portion of the total title Insurance premium to Keystone Land Transfer Ltd. $ 933. 1108. Underwriters portion of the total title Insurance premium to First American Title Ina. Co. $ 164.61 1109. Tax Certification to Keystone Land Transfer, Ltd. 1110 12.00 . 1111. Overnight to Keystone Lend Transfer, Ltd. 14.00 1112. 1113. 1200. Government Recording and Transfer Charges 1201. Government recording charges to Cumberland County Recorder of Deeds from GFE #7 144.00 1202.Deed $ 62.00 Mortgage $ 82.00 Releases $ Other $ 1203. Transfer taxes to Cumberland County Recorder of Deeds (from GFE #8) 1.1 .00 1204. City/County tax/stamps Deed $ 1,180.00 Mortgage $ 1205. State tax/stamps Deed $ 1,180.00 Mortgage $ 1 180.00 1206. 1207. 1300. Additional Settlement Charges 1301. Required services that you can shop for from GFE #6 305400 1302. Home Inspection to SeeMore Home Inspection $ 305.00 #12 1 Home Warranty to American Home Shield 1303 659.10 . 1304. Sewer 12/31 to 2/17 to Silver Spring Township Authority #14-1 4 80.00 1305. 1400. Total Settlement Charges enter on lines 103, Section J and 602, Section K 6,250.83 8,591.00 By signing pegs 1 of this statement, the signatories ecNnaeledge race pt or a completed copy of page 2 8 g or his a page stet ant. e n rarnafer, Ltd., Settement Agent Page 2 of 3 HUD-1 (11018/11018/43) . '1 a • LAW OFFICES OP, clrv. FRANKEBERGER PLACE 219 EAST MAIN STREET P.O. BOX 230 MECHANICSBURG, PENNSYLVANIA 17055 717 69 1-7770 FAX 691-7772 April 26, 2011 Sovereign Bank ATTN: Linda Sunday Loan Servicing Specialist Mail Code 10-421-CN2 450 Penn Street Reading, PA 19602 Re: Estate of Goldie A. Karns Line-of-Credit Acct. No. N-4539056328 Dear Ms. Sunday: Once again I am taking this opportunity to request from you the original Promissory Note for the above Line-of-Credit Account. Please give this letter to your legal counsel and authorize him or her to contact me so that we can attempt to resolve this matter short of litigation. Very truly yours, Marlin R. McCaleb MRM/eaf Exhibit "D" SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff ?? yn Ct izrrt?tr? IX??? i-±F D ',-T T H`0 Jody S Smith 1 Chief Deputy yN I ,}Ut4 14 AM 11`x, 9 0 Richard W Stewart Solicitor Robert A. & Ronald L. Karns, Co-Executors under the Last Will & Testam I vs. Soverign Bank Case Number 2011-4808 SHERIFF'S RETURN OF SERVICE 06/09/2011 04:00 PM - Timothy Black, Deputy Sheriff, who being duly sworn according to law, states that on June 9, 2011 at 1600 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Soverign Bank, by making known unto Dale Flor, Assistant Vice President of Soverign Bank at 798 E. Simpson Street, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to him personally the said true and correct copy of the same. SHERIFF COST: $38.44 June 10, 2011 TI B K, DEPUTY SO ANSWERS, RON .. R ANDERSON, SHERIFF MASANO ? BRADLEY By: James E. Gavin, Esquire Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, Pennsylvania 19610 (610) 372-7700 Ti_EC I I JUN 15 A14 I0: ?2 } UMBERt.AND, Attorneys for Defendant, Sovereign Bank ROBERT A. KARNS and RONALD L. IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION - EQUITY Plaintiffs VS. SOVEREIGN BANK, Defendant : NO. 11-4808 ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter my appearance for Sovereign Bank, the named Defendant, in the above- captioned case and designate 1100 Berkshire Boulevard, Suite 201, Wyomissing, Pennsylvania 19610 as the place where papers, process and notices may be served. B Dated: June 14, 2011 MASANO ? BRADLEY MASANO ? BRADLEY By: James E. Gavin, Esquire Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, Pennsylvania 19610 (610) 372-7700 Attorneys for Defendant, Sovereign Bank ROBERT A. KARNS and RONALD L. IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION - EQUITY Plaintiffs vs. : NO. 11-4808 SOVEREIGN BANK, Defendant CERTIFICATE OF SERVICE I, James E. Gavin, Esquire, hereby certify that I have this 14'' day of June, 2011, served a true and correct copy of the Entry of Appearance upon the party listed below, first-class mail, postage prepaid: Attorneys for Plaintiffs: Marlin R. McCaleb, Esquire Law Offices of Marlin R. McCaleb Frankeberger Place 219 Fast Main Street P.O. Box 230 Mechanicsburg, PA 17053 MASANO ? BRADLEY MASANO ? BRADLEY By: James E. Gavin, Esquire Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, Pennsylvania 19610 (610) 372-7700 -GrFICE ,,, ROTHONOTA C 11 ':?_ -6 12' 4 a ?iER ?t?D CQUNT ?? P1SYl.V??4A Attorneys for Defendant, Sovereign Bank ROBERT A. KARNS and RONALD L. IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION - EQUITY Plaintiffs VS. NO. 11-4808 SOVEREIGN BANK, Defendant NOTICE TO PLEAD TO: PLAINTIFFS, ROBERT A. KARNS and RONALD L. KARNS, CO-EXECUTORS UNDER THE LAST WILL AND TESTAMENT OF GOLDIE A. KARNS, DECEASED: YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. By: MASANQEY James .. G n, Esquire A me r Defendant, Sovereign Bank MASANO ? BRADLEY By: James E. Gavin, Esquire Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, Pennsylvania 19610 (610) 372-7700 Attorneys for Defendant, Sovereign Bank ROBERT A. KARNS and RONALD L. IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION - EQUITY Plaintiffs VS. : NO. 11-4808 SOVEREIGN BANK, Defendant DEFENDANT, SOVEREIGN BANK'S, ANSWER TO PLAINTIFFS' COMPLAINT TOGETHER WITH NEW MATTER NOW COMES, the Defendant, Sovereign Bank, by and through counsel, answering the Plaintiffs' Complaint and, in furtherance thereof, states that: 1. Admitted in part, Denied in part. It is admitted that Robert A. Karns and Ronald L. Karns are the Plaintiffs. After reasonable investigation, the Defendant lacks the knowledge or information sufficient to form a belief as to the truth of the remaining allegations contained in paragraph 1 and, accordingly, they are denied. Strict proof thereof, if relevant, is demanded at the time of trial. 2. Denied. After reasonable investigation, the Defendant lacks the knowledge or information sufficient to form a belief as to the truth of the allegations contained in paragraph 2 and, accordingly, they are denied. Strict proof thereof, if relevant, is demanded at the time of trial. 3. Admitted. 4. Admitted in part, Denied in part. It is admitted that Goldie A. Karns had a home equity line of credit with Defendant. It is further admitted that the Plaintiffs have attached a writing to their complaint that is marked as Exhibit "A". Since Exhibit "A" is in writing, it speaks for itself and no further responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. Accordingly, all allegations as to the contents of Exhibit "A" are hereby denied. 5. Admitted in part, Denied in part. It is admitted that the Plaintiffs have attached a writing to their complaint that is marked as Exhibit "A". Since Exhibit "A" is in writing, it speaks for itself and no further responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. Accordingly, all allegations as to the contents of Exhibit "A" are hereby denied. It is further admitted that the home equity line of credit was secured by a mortgage. 6. Admitted in part, Denied in part. It is admitted that advances were made and payments received. To the extent the allegations in paragraph 6 refer to an agreement, the same being in writing, it speaks for itself and no further responsive pleading is required. 7. Admitted in part, Denied in part. It is admitted that the Plaintiffs have attached a writing to their complaint that is marked as Exhibit "B". Since Exhibit "B" is in writing, it speaks for itself and no further responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. Accordingly, all allegations as to the contents of Exhibit B" are hereby denied. 8. Admitted in part, Denied in part. It is admitted that the Plaintiffs have attached a writing to their complaint that is marked as Exhibit "C". Since Exhibit "C" is in writing, it speaks for itself and no further responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. Accordingly, all allegations as to the contents of Exhibit "C" are hereby denied. 9. Admitted. 2 10. Denied. The allegations contained in paragraph 10 are deemed to be averments of law, conclusions of law, or conclusions of fact to which no responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. To the extent that a response is nevertheless required, although the Plaintiffs, by and through counsel, have requested that they be provided with the original home equity line of credit agreement, it is specifically denied that the Defendant has an obligation under the law to do so. Strict proof to the contrary, if relevant, is demanded at the time of trial. Nevertheless, the Defendant has provided the Plaintiffs with proof that the home equity line of credit has been satisfied and cancelled. 11. Denied. The allegations contained in paragraph 11 are deemed to be averments of law, conclusions of law, or conclusions of fact to which no responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. To the extent that a response is nevertheless required, and to the extent that it is judicially determined that the home equity line of credit agreement is a negotiable instrument, it is specifically denied that if it were to end up in the hands of another individual, that individual would be a holder in due course. To the contrary, the home equity line of credit agreement has been satisfied and cancelled. Strict proof to the contrary, if relevant, is demanded at the time of trial. 12. Admitted in part, Denied in part. It is admitted that the Plaintiffs have attached a writing to their complaint that is marked as Exhibit "D". Since Exhibit "D" is in writing, it speaks for itself and no further responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. Accordingly, all allegations as to the contents of Exhibit "D" are hereby denied. 13. Denied. The allegations contained in paragraph 13 are deemed to be averments of law, conclusions of law, or conclusions of fact to which no responsive pleading is required pursuant to the Pennsylvania Rules of Civil Procedure. To the extent that a response is nevertheless required, 3 it is specifically denied that the Defendant's conduct, if any, was dilatory, obdurate, vexatious and/or in bad faith. Strict proof thereof, if relevant, is demanded at the time of trial. WHEREFORE, the Defendant, Sovereign Bank, respectfully requests this Honorable Court to enter judgment in its favor and against the Plaintiffs. NEW MATTER 14. Defendant, Sovereign Bank, hereby incorporates by reference its responses to paragraphs 1 through 13 as if set forth in full herein. 15. The Plaintiffs have failed to state a claim upon which relief may be granted. 16. The Defendant does not have a legal duty to return to the Plaintiffs, or any other party, the original home equity line of credit agreement. 17. The Plaintiffs and/or their counsel have been notified that the account has been paid in full. 18. The Defendant has destroyed the original home equity line of credit agreement upon payment in full. WHEREFORE, the Defendant, Sovereign Bank, respectfully requests this Honorable Court to enter judgment in its favor and against the Plaintiffs. Td ACANUI & QDAMT7V Dated: July 5, 2011 4 VERMCATION 1, DEBORAH PREVITERA, hereby verify that the statements set forth in the foregoing Answer with New matter are true and correct to the best of my knowledge, information and belief. I understand that false statements made by me are subject to the penalties of 18 Pa. C.S_A. Section 4904 relating to unsworn falsification to authorities- Dated: lp - C29 // 7 7 `M) '°N Deborah Previtera Ad[?:ti [ I0Z '6Z 'unr MASANO ? BRADLEY By: James E. Gavin, Esquire Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, Pennsylvania 19610 (610) 372-7700 Attorneys for Defendant, Sovereign Bank ROBERT A. KARNS and RONALD L. IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION - EQUITY Plaintiffs VS. NO. 11-4808 SOVEREIGN BANK, Defendant CERTIFICATE OF SERVICE I, James E. Gavin, Esquire, hereby certify that I have this 5`h day of July, 2011, served a true and correct copy of the Defendant, Sovereign Bank's, Answer to the Plaintiffs' Complaint Together with New Matter upon the party listed below, first-class mail, postage prepaid: Attorneys for Plaintiffs: Marlin R. McCaleb, Esquire Law Offices of Marlin R. McCaleb Frankeberger Place 219 East Main Street P.O. Box 230 Mechanicsburg, PA 17053 MASAN ames LEY for I,7E?6dant, Sovereign Bank FILED-OFFICE aF THE PROTH040 t" ,E 2ED11 JUL 15 AM 10* 04 ROBERT A. KARN RLAHO COOT°? RONALD L. KARNS,??MSYLYAt??A' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Executors under the Last Will and Testament of Goldie A. Karns, Deceased, CIVIL ACTION - EQUITY Plaintiffs V NO. 11 - 4808 EQUITY SOVEREIGN BANK, Defendant CIVIL ACTION REPLY TO NEW MATTER 14. Plaintiffs adopt and incorporate herein by reference thereto the averments of Paragraphs 1 through 13, inclusive, of Plaintiffs' Complaint. 15. The averments of Paragraph 15 of Defendant's New Matter set forth a legal conclusion to which no responsive pleading is required. By way of further answer and reply, Plaintiffs adopt and incorporate herein by reference thereto the averments of Paragraph 16, below. 16. Specifically denied. Pennsylvania law (13 Pa.C.S. § 3501(b)(2)(iii)) requires the return of the original instrument upon full payment. 17. Admitted, but such notification does not alleviate the concerns set forth in Paragraph 11 of Plaintiffs' Complaint in the absence of the original instrument. 18. After reasonable investigation, Plaintiffs are without I_AAN UFFICFS tARLIN R. McCALFR knowledge or information sufficient to form a belief as to the truth of the averments of Paragraph 18 of Defendant's New Matter and therefore the same are deemed specifically denied and strict proof thereof is demanded at trial. I_AbV OFFICL,, ARLIN R. MCCALFB WHEREFORE, Plaintiffs respectfully request your Honorable Court to enter judgment in their favor as set forth in their Complaint. Date: July , 2011 Marlin R. cCaleb Attorney I.D. No. 06353 219 East Main Street P.O. Box 230 Mechanicsburg, PA 17055 (717) 691-7770 FAX: (717) 691-7772 Attorney for Plaintiffs -2- VERIFICATION ROBERT A. KARNS and RONALD L. KARNS, hereby certify and state: that we are the Co-Executors under the Last Will and Testament of Goldie A. Karns, Deceased, the Plaintiffs in the above-captioned action; that we are authorized to make this verification; that the foregoing facts are true and correct to the best of our knowledge, information and belief; and that we understand that false statements herein are made subject to the penalties of 18 Pa.C.S.§4904, relating to unsworn falsification to authorities. Date: July 2011 ?e ,. i Robert A. rns, Co-Executor Ronald L. Karns, Co-Executor i_AW Of [ 1( Fs ,IARLIN R. MCCAI ER -3- MASANO ♦ BRADLEY 23-1`110 �1 `' By: James E. Gavin, Esquire 26OCT I P3: 2: US Attorney Identification No. 52827 1100 Berkshire Boulevard, Suite 201CUMBERLAHD COUNTY Wyomissing, Pennsylvania 19610 PENNSYLVANIA Attorneys for Defendant, (610) 372-7700 Sovereign Bank ROBERT A. KARNS and RONALD L. : IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will : CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION—EQUITY Plaintiffs • vs. : NO. 11-4808 SOVEREIGN BANK, • Defendant • PRAECIPE FOR SUBSTITUTION OF A SUCCESSOR IN INTEREST TO THE PROTHONOTARY: KINDLY NOTE, this 17th day of October, 2013, pursuant to and under the authority of Rule 2352 of the Pennsylvania Rules of Civil Procedure, that the Defendant, Sovereign Bank, has been succeeded in interest by Santander Bank N.A. Therefore, Santander Bank N.A. should be substituted as one of the Defendants in this action and the caption of the action changed to read: ROBERT A. KARNS and RONALD L. : IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will : CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION—EQUITY Plaintiffs • vs. : NO. 11-4808 SANTANDER BANK N.A., • Defendant • MASANO ♦ BRADLEY 411119...V1/..../--- Jam-:ir ay.c squire A •- e or Defendant, •ver-ign Bank, now known as Santander Bank N.A. 2 MASANO ♦ BRADLEY By: James E. Gavin, Esquire Identification No.: 52827 1100 Berkshire Boulevard, Suite 201 Wyomissing, PA 19610 Attorneys for Defendant, (610) 372-7700 Sovereign Bank ROBERT A. KARNS and RONALD L. : IN THE COURT OF COMMON PLEAS OF KARNS, Co-Executors under the Last Will : CUMBERLAND COUNTY, PENNSYLVANIA & Testament of Goldie A. Karns, Deceased, : CIVIL ACTION—EQUITY Plaintiffs • vs. : NO. 11-4808 SOVEREIGN BANK, • Defendant CERTIFICATE OF SERVICE I, James E. Gavin, Esquire, hereby certify that I have this 17th day of October, 2013, served a true and correct copy of the Defendant's Praecipe for Substitution of a Successor in Interest upon the parties listed below, via first-class mail, postage prepaid: Attorneys for Plaintiffs: A. Marlin R. McCaleb, Esquire Law Offices of Marlin R. McCaleb Frankeberger Place 219 East Main Street P.O. Box 230 Mechanicsburg, PA 17053 MASANO ♦ BRADLEY By: /4110A1,111117 Ja avi ire .rneys fo ►.efendant, /overeign it ank, now known as Santander Bank N.A.