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HomeMy WebLinkAbout11-5330WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: Peter E. Meltzer By: James H. Curry The Fulton Bank Building 200 North Third Street, Suite 9A Harrisburg, PA 17101 (267) 295-3363 t ILEO-OFFICF. 01" 1 #1c PROTHONOTAR Y ZN I jUN' 29 AM 11: 03 METRO BANK f/k/a COMMERCE BANK/ HARRISBURG, N.A. 3801 Paxton Street Harrisburg, PA 17111 V. JOHN C. FLATHMANN 1200 Kings Circle Mechanicsburg, PA 17055 SUZANNE E. FLATHMANN 1200 Kings Circle Mechanicsburg, PA 17055 NOTICE r"'U BERLANO COUNTY PENNSYLVANIA Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. ??-S"6130 C.IV<< 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 this court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. 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 THE INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Q' -?9Q00 Fd a I ?a?lly 1 CUMBERLAND COUNTY BAR ASSOCIATION CUMBERLAND LAW JOURNAL 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 TELEPHONE: 717-249-3166 FAX: 717-249-2663 TOLL FREE (IN PA): 1-800-990-9108 AVISO PARA DEFENDER USTED HA SIDO DEMANDADO/A EN LA CORTE. Si usted desea defender conta la demanda puestas en las siguientes paginas, usted tienen que tomar accion dentro veinte (20) dias despues que esta Demanda y Aviso es servido, con entrando por escrito una aparencia personalmente o por un abogado y archivando por escrito con la Corte sus defensas o objeciones alas demandas puestas en esta contra usted. Usted es advertido que si falla de hacerlo el caso puede proceder sin usted y un jazgamiento puede ser entrado contra usted por la Corte sin mas aviso por cualquier dinero reclamado en la Demanda o por cualquier otro reclamo o alivio solicitado por Demandante. Usted puede perder dinero o propiedad o otros derechos importante para usted. USTED DEBE LLEVAR ESTE PAPEL A SU ABOGADO ENSEGUIDA. SI USTED NO TIENE UN ABOGADO, VAYA O LLAME POR TELEFONO LA OFICINA FIJADA AQUI ABAJO. ESTA OFICINA PUEDE PROVEERE CON INFORMACION DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGARLE A UN ABOGADO, ESTA OFICINA PUEDE PROVEERE INFORMACION ACERCA AGENCIAS QUE PUEDAN OFRECER SERVICIOS LEGAL A PERSONAS ELIGIBLE AQ UN HONORARIO REDUCIDO O GRATIS. CUMBERLAND COUNTY BAR ASSOCIATION CUMBERLAND LAW JOURNAL 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 TELEPHONE: 717-249-3166 FAX: 717-249-2663 TOLL FREE (IN PA): 1-800-990-9108 WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: Peter E. Meltzer By: James H. Curry The Fulton Bank Building 200 North Third Street, Suite 9A Harrisburg, PA 17101 (267) 295-3363 METRO BANK f/k/a COMMERCE BANK/ HARRISBURG, N.A. 3801 Paxton Street Harrisburg, PA 17111 V. JOHN C. FLATHMANN 1200 Kings Circle Mechanicsburg, PA 17055 SUZANNE E. FLATHMANN 1200 Kings Circle Mechanicsburg, PA 17055 Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. 530 ?jYl COMPLAINT IN MORTGAGE FORECLOSURE AND NOW, comes the plaintiff, Metro Bank f/k/a Commerce Bank/Harrisburg, N.A., by and through its attorneys, Weber Gallagher Simpson Stapleton Fires & Newby, LLP, and files this Complaint in Mortgage Foreclosure pursuant to the Pennsylvania Rules of Civil Procedure and avers the following: PARTIES 1. Plaintiff is a banking institution with an address as listed above. Plaintiff was formerly operating as Commerce Bank/Harrisburg, N.A. and is currently known as Metro Bank. 2. Defendants are the individuals named above residing at the addresses listed above. VENUE 3. Venue is proper in Cumberland County under Pa.R.Civ.P. 1142 in that said County is the county where the cause of action arose and the county where the transaction or occurrence took place out of which the cause of action arose and the county where the real property which secures the loan made by Plaintiff to Defendants is located. FACTS 4. On or about May 26, 2004, Plaintiff loaned Defendants the principal sum of $187,000.00 with interest in accordance with the terms and conditions of a certain Promissory Note of even date executed by Defendants in favor of Plaintiff (the "Note"). A true and correct copy of the Note is attached hereto as Exhibit 1. The Note is secured by a Mortgage executed by Defendants in favor of Plaintiff (the "Mortgage") granting Plaintiff a mortgage lien on real estate located at 1200 Kings Circle, Mechanicsburg, PA 17055 (the "Property"). The Mortgage was recorded on June 17, 2004 with the Cumberland County Recorder of Deeds at Book 1870, Page 126. A true and correct copy of the Mortgage is attached hereto as Exhibit 2. 6. On or about August 10, 2009, Defendants executed a Change in Terms Agreement (the "Agreement") which modified the terms of the Note. A true and correct copy of the Agreement is attached hereto as Exhibit 3. 7. Upon information and belief, the Property consists of a residential dwelling. 8. Defendants are the owners of the Property. 9. Plaintiff is the holder of the Note and Mortgage and there have been no assignments of the Note and Mortgage. 10. As a result of the failure to make payments due under the Note since May 15, 2011 and thereafter, the entire unpaid balance of principal indebtedness, together with all accrued and unpaid interest, and all of Plaintiffs costs as authorized in the Note are immediately due and payable, comprised as follows: Principal Balance Due: $127,310.13 Interest Due through June 22, 2011: $ 651.06 Unpaid Loan Fees: $ 50.50 Late Charges: $ 63.02 Attorney's Fees: $ 6,403.73 Costs of Suit and Title Search: $ 500.00 Total Sum Due $1 34,978.44 Interest accrues on the Note from and after June 23, 2011, at the per diem rate of $19.14. 11. The attorneys' fees set forth above are in conformity with the mortgage documents and/or Pennsylvania law and will be collected in the event of a third-party purchaser at Sheriff's Sale. If the mortgage is reinstated prior to sale, reasonable attorneys' fees will be charged based on work actually performed. 12. Act 6, the Act of January 30, 1974, P.L. 13, No. 6, 41 P.S. §403 et s.., and the Homeowner's Emergency Assistance Act, Act of December 23, 1983, P.L. 395, No. 91, 35 P.S. §1680.401(c) et sec., have been complied with or are not applicable. WHEREFORE, Plaintiff demands in rem judgment for foreclosure and sale of the property against Defendants in the amounts and with the per diem interest set forth in paragraph 10 above, together with interest at the rate set forth in the Note from the date of judgment, and other damages and relief as the court may deem just. Dated: June 23, 2011 Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, I By: J PETER E. MELTZER, ESQ IR JAMES H. CURRY_ F.SOT i F. VERIFICATION I, John T. Robertson, an authorized representative of Metro Bank am duly authorized to make this Verification on behalf of Metro Bank, and do hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I further understand that the statements therein made are subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. Exhibit 1 PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Anv item above containing "***" has hAAn nmitt-l rh- to t-t ler,n+r, G,.,;+-;, Principal Amount: $187,000.00 Interest Rate: 5.490% Date of Note: May 26, 2004 PROMISE TO PAY. I ("Borrower") jointly and severally promise to pay to COMMERCE BANK/HARRISBURG N.A. ("Lender"), or order, in lawful money of the United States of America, the principal amount of One Hundred Eighty-seven Thousand & 00/100 Dollars ($187,000.00), together with interest at the rate of 5.490% per annum on the unpaid principal balance from May 31, 2004, until paid in full. The interest rate on this Note will increase under the following circumstances: IF THE AUTOMATIC PAYMENT IS DISCONTINUED BY THE BORROWER OR THE LENDER. The interest rate on this Note will increase as follows: THE INTEREST RATE WILL INCREASE BY ONE-HALF OF ONE PERCENT (.500%). The following information also relates to the termination of the preferred rate: THERE IS AN ADMINISTRATIVE FEE OF $25.00. Unless waived by Lender, any increase in the interest rate will increase the amounts of my payments. PAYMENT. I will pay this loan in 180 payments of $1,527.17 each payment. My first payment is dnd all subsequent payments are due on the same day of each month after that. My final payment will be due on May 30, 2 an wr all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Interest on this Note is computed on a 3651365 simple interest basis; that is, by applying the ratio of the annual interest rate over the number of days in a year, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. PREFERRED RATE REDUCTION. The interest rate on this Note includes a preferred rate reduction. Following is a description of the event that would cause the preferred rate reduction to terminate, how the new rate will be determined upon termination of the preferred rate reduction and any rules pertaining to the termination of the rate reduction. Description of Event That Would Cause the Preferred Rate Reduction to Terminate. IF THE AUTOMATIC PAYMENT IS DISCONTINUED BY THE BORROWER OR THE LENDER. How The New Rate Will Be Determined Upon Termination of the Preferred Reduction. THE INTEREST RATE WILL INCREASE BY ONE-HALF OF ONE PERCENT (.500%). Rules. THERE IS AN ADMINISTRATIVE FEE OF $25.00. PREPAYMENT. I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in my making fewer payments. I agree not to send Lender payments marked "paid in full", "without recourse", or similar language. If I send such a payment, Lender may accept it without losing any of Lender's rights under this Note, and I will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: COMMERCE BANK/HARRISBURG N.A., 100 SENATE AVENUE CAMP HILL, PA 17011. LATE CHARGE. If a payment is 15 days or more late, I will be charged 5.000% of the regularly scheduled payment. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will bear interest from the date of acceleration or maturity at the interest rate on this Note. The interest rate will not exceed the maximum rate permitted by applicable law. DEFAULT. I will be in default under this Note if any of the following happen: Payment Default. I fail to make any payment when due under this Note. Break Other Promises. I break any promise made to Lender or fail to perform promptly at the time and strictly in the manner provided in this Note or in any agreement related to this Note, or in any other agreement or loan I have with Lender. Default in Favor of Third Parties. I or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of my property or my ability to repay this Note or perform my obligations under this Note or any of the related documents. False Statements. Any representation or statement made or furnished to Lender by me or on my behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished. Death or Insolvency. Any Borrower dies or becomes insolvent; a receiver is appointed for any part of my property; I make an assignment for the benefit of creditors; or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. Taking of the Property. Any creditor or governmental agency tries to take any of the property or any other of my property in which Lender has a lien. This includes taking of, garnishing of or levying on my accounts with Lender. However, if I dispute in good faith whether the claim on which the taking of the property is based is valid or reasonable, and if I give Lender written notice of the claim and furnish Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Defective Collateralization. This Note or any of the related documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Collateral Damage or Loss. Any collateral securing this Note is lost, stolen, substantially damaged or destroyed and the loss, theft, substantial damage or destruction is not covered by insurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or Borrower: John C. Flathmann (SSN: 262-79-1465) Lender: COMMERCE BANK/HARRISBURG N.A. Suzanne E. Flathmann (SSN: 189-52-5516) CAMP HILL MALL 1200 Kings Circle 3201 Trindle Road Mechanicsburg, PA 17055 Camp Hill, PA 17011 (717) 920-5740 PROMISSORY NOTE Loan No: 400210664 (Continued) Page 2 disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if I have not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if 1, after receiving written notice from Lender demanding cure of such default: (1) cure the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then I will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if I do not pay. I will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law, GOVERNING LAW. This Note will be governed by and interpreted in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all my accounts with Lender (whether checking, savings, or some other account). This includes all accounts I hold jointly with someone else and all accounts I may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. I acknowledge this Note is secured by 1200 Kings Circle, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address: COMMERCE BANK/HARRISBURG N.A. 100 SENATE AVENUE CAMP HILL, PA 17011 GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. This means that the words "I", "me", and "my" mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE. I ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UND SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED JMST-,9UMENT OR ING TO LAW. (Seal) (Seal) q1V Suza E. Flathm nn I-- r -9. V- 5.24-.= Cap,. HwlWd i -* SWI,tj-, In,, 1997, 20 . M Righl$ R-d. PA HAWMAPPS%~N%CF1%LPL1i220.K TR-11759 PA 22 2ooo- Exhibit 2 COPY RECORDATION REQUESTED BY: COMMERCE BANK/HARRISBURG N.A. CAMP HILL MALL 3201 Trindle Road Camp Hill, PA 17011 WHEN RECORDED MAIL TO: COMMERCE BANK/HARRISBURG N.A. CAMP HILL MALL 3201 Trindle Road Camp Hill, PA 17011 SEND TAX NOTICES TO: COMMERCE BANK/HARRISBURG N.A. CAMP HILL MALL 3201 Trindle Road Camp Hill, PA 17011 FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE dated May 26, 2004, is made and executed between John C. Flathmann and Suzanne E. Flathmann, whose address is 1200 Kings Circle, Mechanicsburg, PA 17055 (referred to below as "Grantor") and COMMERCE BANK/HARRISBURG N.A., whose address is 3201 Trindle Road, Camp Hill, PA 17011 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Cumberland County, Commonwealth of Pennsylvania: Real property located at 1200 Kings Circle, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania, as recorded in deed book 120, page 448, in the Office of the Recorder of Deeds of Cumberland County. The Real Property or its address is commonly known as 1200 Kings Circle, Mechanicsburg, PA 17055. The Real Property parcel identification number is 10-16-1058-213. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. Grantor represents and warrants that the Property never has been, and never will be so long as this Mortgage remains a lien on the Property, used for the generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance in violation of any Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify and hold harmless Lender against any and all claims and losses resulting from a breach of this paragraph of the Mortgage. This obligation to indemnify shall survive the payment of the Indebtedness and the satisfaction of this Mortgage. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due and except as otherwise provided in this Mortgage. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage MORTGAGE (Continued) Page 2 endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Lender's Expenditures. If Grantor fails (1) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, (2) to provide any required insurance on the Property, or (3) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (1) be payable on demand; (2) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (a) the term of any applicable insurance policy; or (b) the remaining term of the Note; or (3) be treated as a balloon payment which will be due and payable at the Note's maturity. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. Warranty; Defense of Title. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. Full Performance. If Grantor pays all the Indebtedness, including without limitation all future advances, when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. Events of Default. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided in this Mortgage or in any agreement related to this Mortgage. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (a) cures the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. Rights and Remedies on Default. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, MORTGAGE (Continued) Page 3 may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare tho entire indebtedness immediately due and payable. UCH Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured psrty under the Uniform Commercial Code. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Nonjudicia4 Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose any one remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform any of Grantor's obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. Note.. The word "Note" means the promissory note dated May 26, 2004 in the original principal amount of $187,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. Miscellaneous Provisions. The following miscellaneous provisions are a part of this Mortgage: Governing Law. This Mortgage will be governed by and interpreted in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. Time is of the Essence. Time is of the essence in the performance of this Mortgage. Definitions. The following words shall have the following meanings when used in this Mortgage: Borrower. The word "Borrower" means John C. Flathmann and Suzanne E. Flathmann and includes all co-signers and co-makers signing the Note. Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means John C. Flathmann and Suzanne E. Flathmann. Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. The liens and security interests created pursuant to this Mortgage covering the Indebtedness which may be created in the future shall relate back to the date of this Mortgage. Lender. The word "Lender" means COMMERCE BANK/HARRISBURG N.A., its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in the Note. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated May 26, 2004, in the original principal amount of $ 187,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, MORTGAGE (Continued) Page 4 consolidations of, and substitutions for the promissory note or agreement. The maturity date of the Note is May 30, 2019. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDE SEAL ND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE CT OF AX=4= INST MENT ACCORDING TO LAW. X' . teail John C. Flaa /I X. 4Seall CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, COMMERCE BANK/HARRIS RG N.A.jhherreei is as f (lows: CAMP HILL MALL, 3201 Trindle Road, Camp Hill, PA 17011 a ttorney or ge for Mortgagee INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY Ol? On this, the _ day of the undersigned Notary known to me (or satisfactorily proven) to be the person whosE?l executed the same for the purposes therein contained In witness whereof, I hereunto set my hand and Notarial Sea! Mary Anne E. Bayer, Notary Public f*npden T wp., Cumberland County My Commission Expires June 5, 2006 ) SS 1 l 20 ?, before me "Flathmann, ublic, personally ppeared John C. Flathmann'anSu mes are subscribed to the within instrument, and acknowledged that they Member, Pennsylvania Assodation Of Notaries UBEq PRO L.nAMe. Vsr. 5.21.0000] Cop. Ne.lend fineneial geluh"ne, Inc. 189). ]001. All giyhts Reawved PA N'.1WINAPPgILPW,N1Cf11LPLlGO].fC TP l 1159 Pq.22 Exhibit 3 I CHANGE IN TERMS AGREEMENT Principal Loan Date Maturity Loan No call i coil Account Officer $143,423.24 05-26-2004 09-30-2019 400210664 1017 References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "" ""' has been omitted due to text length limitations. Borrower: John C. Flathmann Suzanne E. Flathmann 1200 Kings Circle Mechanicsburg, PA 17055 Principal Amount: $143,423.24 Lender: METRO BANK CAMP HILL MALL 3201 TRINDLE ROAD CAMP HILL, PA 17011 (717) 920-5740 DESCRIPTION OF EXISTING INDEBTEDNESS. Refer to the Promissory Note dated May 26, 2004. DESCRIPTION OF COLLATERAL. Refer to the Security Document dated May 26, 2004. DESCRIPTION OF CHANGE IN TERMS, Commencing July 30, 2009, and continuing until September 30, 2009, Borrower is permitted to make interest only payments on the above-referenced Loan. After the referenced interest only payment period, Lender will re-amortize the outstanding principal balance over the remaining term of the loan. Commencing October 30, 2009 and continuing throughout the remaining term of the loan Borrower shall resume making principal and interest payments in the new amount of $1,555.90. The maturity date shall remain September 30, 2019. PAYMENT. 1 will pay this loan In accordance with the following payment schedule, which calculates Interest on the unpaid principal balances as described in the "INTEREST CALCULATION METHOD" paragraph using the interest rates described in this paragraph: 3 monthly consecutive interest payments, beginning July 30, 2009, with Interest calculated on the unpaid principal balances using an interest rate of 5.490% per annum; 119 monthly consecutive principal and interest payments of $1,555.90 each, beginning October 30, 2009, with interest calculated on the unpaid principal balances using an Interest rate of 5.490% per annum; and one principal and interest payment of $1,556.01 on September 30, 2019, with interest calculated on the unpaid principal balances using an Interest rate of 5.490% per annum. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled; the actual final payment will be for all principal and accrued Interest not yet paid, together with any other unpaid amounts on this loan. INTEREST CALCULATION METHOD. Interest on this loan is computed on a 3651365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days in a year, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this loan is computed using this method. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. REFERENCE TO LENDER. This Change in Terms Agreement is being made by Metro Bank formerly known as Commerce Bank / Harrisburg, N.A. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. PRIOR TO SIGNING THIS AGREEMENT, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT AND THE NOTICE TO COSIGNER sE FgRTH BELOW. I, AND EACH OF US, AGREE TO THE TERMS OF THE AGREEMENT. BORROWER; / JJ Seal) X ) JoCo. nn . Flathm nn i NOTICE TO COSIGNER You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt If the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The Lender can collect this debt from you without first trying to collect from the borrower. The Lender can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of YOUR credit record. This notice is not the contract that makes you liable for the debt. Is Date of Agreement: August 10, 2009 Maturity Date: September 30, 2019 LASER PRO LPn09p, V". 5AS.ft. Coq. "'" FYn- 9oNtlom, Inc. 1997. 2009. A. Rights R-. - PA SACF5LPL10]OC. FC TR.11159 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny RAnderson Ali Sheriff '` ?J ! ( ,?`,= Jody S Smith Chief Deputy A, II0 - 9 r"i Richard W Stewart Solicitor P E lk rr' S Y //-5-33o Metro Bank vs. John Christopher Flathmann (et al.) Case Number 20 q cno°- SHERIFF'S RETURN OF SERVICE 06/30/2011 09:26 PM - Dennis Fry, Deputy Sheriff, who being duly sworn according to law, states that on June 30, 2011 at 2126 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: John Christopher Flathmann, by making known unto himself personally, at The Cumberland County Prison, 1101 Claremont Road, Carlisle, Cumberland County, Pennsylvania 17013 its contents and at the same time handing to him personally the said true and correct copy of the same. DE IS FRY, D TY 08/03/2011 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: Suzanne E. Flathmann, but was unable to locate her in his bailiwick. He therefore returns the within Complaint and Notice as not found as to the defendant Suzanne E. Flathmann. Request for service at 1200 King's Circle, Mechanicsburg, Pennsylvania 17050 the Defendant was not found. Deputies were advised Suzanne E. Flathmann moved. To date The Mechanicsburg Postmaster has been unable to provide a good forwarding address for the Defendant. SHERIFF COST: $65.00 SO ANSWERS, August 03, 2011 RON R ANDERSON, SHERIFF (David R Buell' 1&rothonotaiy Office of the'rotI20notaiy Cum6er[ancfCounty, Pennsylvania fir S. Sofionage, ESQ Solicitor /1 5236 CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 28TH DAY OF OCTOBER, 2014, AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE —THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R.C.P.230.2. BY THE COURT, DAVID D. BUELL PROTHONOTARY One Courthouse Square 0 Suite100 Q Cartisfe, TA 0'hone 717 240-6195®r Fax 717 240-6573