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HomeMy WebLinkAbout11-5823IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA c... ORRSTOWN BANK, Plaintiff, vs. JACK K. HENCH and LOIS A. HENCH, Defendants. a? r C/1 CIVIL DIVISION r- -? N N I I-SSa3 C i"C-) NO .: :z CD ?C : 4 CONFESSION OF JUDGMENT -?-a -T, rn-- I..._ C7 a S -?r7 C) "l aF D Pursuant to the authority contained in the aforesaid Note, copies of which are attached to the Complaint filed in this action, I appear for the Plaintiff and confess judgment in favor of Plaintiff and against Defendants as follows: Principal $ 133,324.71 Interest through 7/8/11 $ 2,838.29 Late Charges $ 200.00 Other Charges/Fees $ 62.52 Attorney's Fees and Costs $ 13,616.30 (10% of Unpaid Principal & Accrued Interest) TOTAL $ 150,041.82 with interest on the principal sum of ($133,324.71) from July 8, 2011 at $22.22 per diem. JAMES, & CONY CK BY: AV / I / / P Scott A. Ip eTttrislsquire Attorneys for Defendants PRO HAC VICE PA I.D. # 55650 P.O. Box 650 Hershey, PA 17033 (717) 533-3280 1-07 Ct'W SN 1 R* NaI 'I W.h W DA ied IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 'ORRSTOWN BANK, Plaintiff, vs. JACK K. HENCH and LOIS A. HENCH, Defendants TO: DEFENDANT(S) YOU ARE HEREBY NOTIFIED TO PLEAD TO THE ENCLOSED COMPLAINT WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A DEFAULT JUDGMENT MAY BE ENTERED AGAINST YOU. l A RNEY FOR PLAINTIFF I HEREBY CERTIFY THAT THE ADDRESS OF THE PLAINTIFF IS: P.O. Box 250 Shippensburg, PA 17257 AND THE DEFENDANT(S): Jack K. Hench & Lois A. Hench 5450 Westbury Drive, Enola, PA 17025 -O3 = -... rn a) CIVIL DIVISION am c- c aF r- cn r- -C3'' f\> Ev v rrr ; oc? NO.: ic) DC rri TYPE OF PLEADING: CIVIL ACTION - COMPLAINT IN CONFESSION OF JUDGMENT FILED ON BEHALF OF: Orrstown Bank, Plaintiff COUNSEL OF RECORD FOR THIS PARTY: Scott A. Dietterick, Esquire Pa. I.D. #55650 JAMES, SMITH, DIETTERICK & CONNELLY LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 ATTORNEY FOR PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION Plaintiff, NO.: l l ?g-2 3 j vs. JACK K. HENCH and LOIS A. HENCH, Defendants CIVIL ACTION - COMPLAINT IN CONFESSION OF JUDGMENT And now comes Orrstown Bank by its attorneys, James, Smith, Dietterick & Connelly, LLP, and files this Complaint in Confession of Judgment as follows: 1. Orrstown Bank ("Plaintiff') is a financial institution under the laws of the United States of America, with its principal place of business located at P.O. Box 250, Shippensburg, Pennsylvania 17257. 2. Defendants, Jack K. Hench and Lois A. Hench, are adult individuals residing at 5450 Westbury Drive, Enola, Pennsylvania 17025. 3. On or about December 9, 2006, Defendants, Jack K. Hench ("Mr. Hench") and Lois A. Hench ("Mrs. Hench"), executed and delivered a certain Promissory Note in favor of Plaintiff in the original principal amount of $150,000.00 ("Note"), which Note authorized a Confession of Judgment against Mr. Hench and Mrs. Hench. A copy of said Note is marked Exhibit "A", attached hereto and made a part hereof. 4. The Note has not been released, transferred or assigned. 5. Judgment has not been entered against the Defendants on the Note in any jurisdiction. 6. Defendants are in default under the aforesaid Note, for failure to pay installments of principal and interest when due. 7. The judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 8. The itemization of the amount due, including interest and attorneys' fees as authorized by the Note is as follows: Principal $ 133,324.71 Interest through 7/8/11 $ 2,838.29 Late Charges $ 200.00 Other Charges/Fees $ 62.52 Attorney's Fees and Costs $ 13,616.30 (10% of Unpaid Principal & Accrued Interest) TOTAL $ 150,041.82 with interest on the principal sum of ($133,324.71) from July 8, 2011 at $22.22 per diem. WHEREFORE, Plaintiff as authorized by the Note, demands judgment against the Defendants in the amount of $150,041.82 with interest on the principal sum ($133,324.71) from July 8, 2011 at $22.22 per diem, and brings said instrument to Court to recover the said sum. JAMES, SMITH, DIETTERICK & CONNELLY LLP /'--'\ BY: I -? \ Scott A. Dietterick, Esquire Attorneys for Plaintiff PA I.D. # 55650 P.O. Box 650 Hershey, PA 17033 (717) 533-3280 THIS IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. EXHIBIT "A" PROMISSORY NOTE Principal 1 Loan Date Maturity Loan No CallI Coll Account Officer Initials $150,000.00 12-9$72.006 26419700101 1C281301 H023999 MRBAS 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. Any item above containing "* * *" has been omitted due to text length limitations. Borrower: Jack K. Hench (SSN: 165-26-5184) Lois A. Hench (SSN: 204-30-5116) 5450 Westbury Drive Enola, PA 17025 Lender: ORRSTOWN BANK SILVER SPRING OFFICE 77 EAST KING STREET PO BOX 250 SHIPPENSBURG, PA 17257 Principal Amount: $150,000.00 Initial Rate: 9.250% Date of Note: December 9, 2006 Maturity Date: December 9, 2007 PROMISE TO PAY. Jack K. Hench and Lois A. Hench ("Borrower") jointly and severally promise to pay to ORRSTOWN BANK ("Lender"), or order, in lawful money of the United States of America, the principal amount of One Hundred Fifty Thousand & 00/100 Dollars ($150,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. If no demand is made, Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on December 9, 2007. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning January 9, 2007, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Wall Street Prime (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 8.250% per annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 9.250% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower 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 Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower 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: ORRSTOWN BANK, 77 EAST KING STREET, P.O. BOX 250 SHIPPENSBURG, PA 17257. LATE CHARGE. If a payment is 16 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $50.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding a 3.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's 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 or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower'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 Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 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 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 r PROMISSORY NCTE Loan No: 26419700101 (Continued) Page 2 in a manner satisfactory to Lender, and, in doing so, cure anv Event of D3fault. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable an(] if Borrower has 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 Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) 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. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower 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, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower 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. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instrument listed herein: a Mortgage dated December 9, 2006, to Lender on real property located in Cumberland County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payment from Borrower's accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. FINANCIAL INFORMATION. The Borrower agrees to provide the Lender with Federal Tax Returns and/or CPA prepared Financial Statements and any other financial information, required by the Lender's Original Commitment Letter to the Borrower, on an annual basis. If the Lender does not receive the required financial information within two hundred seventy (270) days of the Borrower's fiscal year end, the Lender has the right to increase the interest rate charged on this Note by 0.25%. The Borrower shall receive written notification ten (10) days prior to the Lender increasing the interest rate charged on this Note. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's 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: ORRSTOWN BANK, SILVER SPRING OFFICE, 77 EAST KING STREET, PO BOX 250, SHIPPENSBURG, PA 17257. GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower 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; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS PROMISSORY NOTE Loan No: 26419700101 (Continued) Page 3 OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: X (Seal) Ja K. Hench X ? ? '? l ?-,?y"'i G'? (Beall Lois A. Hench LASER PRO Lending, V- 5.34.00.003 C., H,H-d Fm4n- Salu .-, Inc. 1997, 2006 . All Rig51, Reserved. PA c:ICFALPL\070. FC TR-14551 PR I DISCLO. JRE FOR CONFESSION OF & AMENT 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. Any item above containing """`" has been omitted due to text length limitations. Borrower: Jack K. Hench (SSN: 165-26-5184) Lois A. Hench (SSN: 204-30-5116) 5450 Westbury Drive Enola, PA 17025 Lender: ORRSTOWN BANK SILVER SPRING OFFICE 77 EAST KING STREET PO BOX 250 SHIPPENSBURG, PA 17257 Declarant: Jack K. Hench (SSN: 165-26-5184) 5450 Westbury Drive Enola, PA 17025 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS % DAY OF 20 (Q 6, A PROMISSORY NOTE FOR $150,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE NOTE, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND 1 EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME Y C NFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIALS: B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, 1 AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERM TED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE. INITIALS: ::'. .,... ;<:>:>::>::< C. AFT R HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, 1 REPRESENT THAT: INITIALS _ 1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. G?y 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: (Seal) ends f LASER PRO Ls.d,g, V- 5.33.00.004 C,P,. H,,he d Fin...is15eWtwns, Inc. 1997, 4006. All Right, Rs,s,vsE. PA cACFlhLP0D30.FC TR-10651 PR-1 DISCLO, JIRE FOR CONFESSION OF A )GMENT 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. Any item above containing """'" has been omitted due to text length limitations. Borrower: Jack K. Hench (SSN: 165-26-5184) Lender: ORRSTOWN BANK Lois A. Hench (SSN: 204-30-5116) SILVER SPRING OFFICE 5450 Westbury Drive 77 EAST KING STREET Enola, PA 17025 PO BOX 250 SHIPPENSBURG, PA 17257 Declarant: Lois A. Hench (SSN: 204-30-5116) 5450 Westbury Drive Enola, PA 17025 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS q DAY OF e 20a, A PROMISSORY NOTE FOR $150,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE NOTE, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME B CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIALS: ....> :>' B. 1 FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE. INITIALS: C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, I REPRESENT THAT: INITIALS 1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: X c ?c? C?- /ti?tiL (Seal) Lois A. Hench LASER PRO L-619. V- 5.37.00.000 Cop. Hrlend Fn-41 Solu,bn,, Inc. 1997, 2006. All Rlpn„ R-v,E. - PP cACFhLPL1030.FC TR1<651 PR 1 VERIFICATION 1, Linda K. Mowen, Assistant Vice President, on behalf of Orrstown Bank, depose and say subject to the penalties of 18 P&C.S.A., sec.4904 relating to unsworn falsification to authorities that the facts set forth in the foregoing Complaint in Confession of Judgment are true and correct to the best of my information, knowledge and belief. Linda K. Mowen, Assistant Vice President IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION Plaintiff, NO.: J vs. = JACK K. HENCH and LOIS A. HENCH, MW rM ?-- ? - r - -? r- : Xr- cCA rv Defendants. rz Z= ss O'i Cn NOTICE UNDER RULE 2958.1 Zc © - OF JUDGMENT AND EXECUTION THEREON Notice of Defendant's Rights To: Jack K. Hench 5450 Westbury Drive Enola, PA 17025 A judgment in the amount of $150,041.82 has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. NOTICE TO DEFEND & LAWYER REFERRAL SERVICE Cumberland County Bar Association 32 S. Bedford Street Carlisle, PA 17013 Phone (717) 249-3166 (800) 990-9108 Respectfully *bm' JAMES, SMIT , D CONNELLY LLP By: Sc f1A-' 2jcU i'ck, Esquire Attorney I.D. #55650 P.O. Box 650 Hershey, PA 17033 (717) 533-3280 VIA PERSONAL SERVICE BY THE SHERIFF OF CUMBERLAND COUNTY IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, vs. JACK K. HENCH and LOIS A. HENCH, CIVIL DIVISION Plaintiff, NO.: 1 Defendants. NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON Notice of Defendant's Rights To: Lois A. Hench 5450 Westbury Drive Enola, PA 17025 ?M ,{D r? <Q zo nZ --1 -G c r~- rv ss? t_n d FTir C' C) CD-n n A judgment in the amount of $150,041.82 has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. NOTICE TO DEFEND & LAWYER REFERRAL SERVICE Cumberland County Bar Association 32 S. Bedford Street Carlisle, PA 17013 Phone (717) 249-3166 (800) 990-9108 Respectfully Tbmg V?" JAMES, SMIT D & CONNELLY LLP By: SLoV A.93iettefick, Esquire Attorney I.D. #55650 P.O. BOX 650 Hershey, PA 17033 (717) 533-3280 VIA PERSONAL SERVICE BY THE SHERIFF OF CUMBERLAND COUNTY IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION 1 Plaintiff, NO.: vs. JACK K. HENCH and LOIS A. HENCH, © = ? -; =r n Defendants. r-? --?c, CERTIFICATION OF ADDRESS .co =C) 2% x-n YF3 I hereby certify that the address of the parties in the above action are as follows. --4 i c Address of Plaintiff- P.O. Box 250, Shippensburg, PA 17257 Address of Defendants: Jack K. Hench & Lois A. Hench 5450 Westbury Drive, Enola, PA 17025 JAMES, & CONNELLY LLP BY: Sed$ A'-Hiet nck, Esquire PA I.D. # 55650 Kimberly A. Bonner, Esquire PA I.D #89705 Attorneys for Plaintiff P.O. Box 650 Hershey, PA 17033 (717) 533-3280 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION Plaintiff, NO.: //? ??? ? c?,Y•? -?solie?, VS. JACK K. HENCH and LOIS A. HENCH, Defendants. AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA COUNTY OF DAUPHIN SS: I, Scott A. Dietterick, Esquire and/or Kimberly A. Bonner, Esquire, attorneys for and authorized representative of Plaintiff, Orrstown Bank, hereby certify, subject to the penalties of 18 Pa.C.S.A. §4904, that the Defendants, are not in the military service of the United States of America to the best of my knowledge, information and belief. y i Scott A. Dietterick, Esquire Kimberly A. Bonner, Esquire SWORN TO AND SUBSCRIBED BEFORE ME THIS 13th day of July, 2011. (:k &)"?-hru L ?Sp' VIJOIC-f- Notary Public My Commission Expires: NOTARIAL SEA CHRISTINE L SPURLOCK Notary Public HUMMELSTOWN BORO, DAUPHIN COUNTY My Commission Expires Jun 23, 2012 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, Plaintiff, VS. JACK K. HENCH and LOIS A. HENCH, Defendants. CIVIL DIVISION NOTICE OF ORDER, DECREE OR JUDGMENT TO: ( ) Plaintiff (X) Defendant - JACK K. HENCH ( ) Additional Defendant(s) You are hereby notified that an Order, Decree or Judgment was entered in the above-captioned proceeding on f a a 1 () A copy of the Order or Decree is as follows: or (X) The judgment is as follows: $150,041.82 plus interest on the principal sum ($133,324.71) from July 8, 2011, at the rate of $22.22 per diem, plus additional late charges and additional attorneys' fees and costs. J-4s 2t44oO Prothonotary IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION Plaintiff, NO.:?-3 VS. J d JACK K. HENCH and LOIS A. HENCH, Defendants. NOTICE OF ORDER, DECREE OR JUDGMENT TO: ( ) Plaintiff (X) Defendant - LOIS A. HENCH ( ) Additional Defendant(s) You are hereby notified that an Order, Decree or Judgment was entered in the above-captioned proceeding on as t I ( ) A copy of the Order or Decree is as follows: or (X) The judgment is as follows: $150,041.82 plus interest on the principal sum ($133,324.71) from July 8, 2011, at the rate of $22.22 per diem, plus additional late charges and additional attorneys' fees and costs. P4onot SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson jE II EU Sheriff 'r?}S'f ?U;? pt t <<fu ?rr Jody S Smith 14/14 Chief Deputy ? 1 AUG 3* ????, I?(}k? `F Richard W Stewart Solicitor ,..?ISY''"' Orrstown Bank Case Number vs. Jack K. Hench (et al.) 2011-5823 SHERIFF'S RETURN OF SERVICE 07/26/2011 05:35 PM - Shawn Gutshall, Deputy Sheriff, who being duly sworn according to law, states that on July 26 2011 at 1735 hours, he served a true copy of the within Complaint in Confession of Judgment and Notice, upon the within named defendant, to wit: Jack K. Hench, by making known unto Lois A. Hench, Wife of Defendant at 5450 Westbury Drive, Enola, Cumberland County, Pennsylva is 17025 its contents and at the same time handing to her personally the said true and correct copy o e same. A SH LL, PUTY 07/26/2011 05:35 PM - Shawn Gutshall, Deputy Sheriff, who being duly sworn according to law, states that on July 26 2011 at 1735 hours, he served a true copy of the within Complaint in Confession of Judgment and Notice, upon the within named defendant, to wit: Lois A. Hench, by making known unto herself personally, at 5450 Westbury Drive, Enola, Cumberland County, Pennsylvania 17025 its contents and at the same time handing to her personally the said true and correct copy of the same. HA SHALL, TY SHERIFF COST: $59.00 August 02, 2011 SO ANSWERS, (?Z' x - Z?2 RON R ANDERSON, SHERIFF "?au3 ?}? S i t ?-2.? i Te osnft. Irr. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORRSTOWN BANK, CIVIL DIVISION Plaintiff, NO.: 11-5823 Civil Term vs. : HENCH and LOIS A. HENCH JACK K , . Defendants m M -_ . PRAECIPE TO SATISFY JUDGMENT _: > -c r C-j -TJ ^, TO THE PROTHONOTARY: rv Please mark the judgment filed at the above-captioned term aad Respectfully submitted: JAMES, SMITH,1#lWrTERICK & CONNELLY LLP BY: Scott A. e ck, Esqui PA I.D. Attorney r 'ntiff P.O. BOX 650 Hershey, PA 17033 (717) 533-3280