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HomeMy WebLinkAbout04-478301 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I. D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. dLI.L/ ENTRY OF JUDGMENT BY CONFESSION AND ASSESSMENT OF DAMAGES Pursuant to the Complaint in Confession of Judgment filed in the within action and the Warrant of Attorney attached hereto, judgment is hereby entered against the Defendant, jointly and severally. DAMAGES ARE ASSESSED AS FOLLOWS: Unpaid principal balance under the Note/Loan Agreement dated April 30, 2003 as of July 6, 2004 $444,454.49 Late fees from July 6, 2004 1,160.76 $445,615.25" 'Together with interest accruing at the rate in the Note/Loan Agreement from July 6, 2004, attorneys' fees, and costs of this action (to be determined) 77956.1 P HO I -2- 0 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, CIVIL DIVISION NO. Defendant. ENTRY OF APPEARANCE PRAECIPE FOR ASSESSMENT OF DAMAGES AND CONFESSION OF JUDGMENT TO THE PROTHONOTARY: Kindly enter our appearance for and on behalf of the Defendant above named. Pursuant to the authority contained in the Warrant of Attorney separately set forth in the Loan Agreement dated April 30, 2003, a true and correct copy of which is attached as Exhibit A to the Complaint filed in this action, we hereby appear for the Defendant in this matter, HealthCore, LLC, and confess judgment authorized, in favor of the Plaintiff and against the Defendant, as follows: DAMAGES ARE ASSESSED AS FOLLOWS: Unpaid principal balance under the Note/Loan Agreement dated April 30, 2003 as of July 6, 2004 $444,454.49 Late fees from July 6, 2004 1,160.76 $445,615.25* *Together with interest accruing at the rate in the Note/Loan Agreement from July 6, 2004, attorneys' fees, and costs of this action (to be determined) Dated: f --L-7,0V 71973.1 TU (ER ARENSBERG, P.C. F. taphenson tthes ' V 7 PA D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Attorneys for Plaintiff, The Legacy Bank -2- t"i 61 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I. D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, COURT OF COMMON PLEAS CUMBERLAND COUNTY V. CIVIL DIVISION HEALTHCORE, LLC NO. 47 West Pomfret Street Carlisle, PA 17013, Defendant. COMPLAINT IN CONFESSION OF JUDGMENT Plaintiff, The Legacy Bank (the "Bank"), by and through its attorneys, Tucker Arensberg, P.C., files this Complaint for judgment by confession pursuant to Pennsylvania Rules of Civil Procedure 2950-2956 and, in support hereof, states as follows: 1. The Bank is a national banking association with an address at 2600 Commerce Drive, Harrisburg, Pennsylvania 17110. 2. Defendant, HealthCore, LLC, is a Pennsylvania corporation with a last known address at 47 West Pomfret Street, Carlisle, Pennsylvania 17013. 3. The Defendant executed that certain Note/Loan Agreement dated April 30, 2003 (the "Note") pursuant to which the Defendant agreed to all terms and of payment and all other conditions thereunder. True and correct copies of the Note/Loan Agreements are attached hereto and incorporated herein as Exhibits "A". 4. The Note authorized the confession of judgment against the Defendant. 5. As a result (among other things) Borrower's failure to pay certain amounts as and when due under the Agreements, events of default occurred under the Agreements. 6. Pursuant to the terms of the Agreements, upon the occurrence of an event of default, the Bank was authorized to declare all amounts payable under the Agreements to be immediately due and payable. 7. On or about September 17, 2004, the Bank sent letters to Borrower, notifying the Borrower of the occurrence of events of default under the Agreements (the "Default Letters") and declaring the unpaid principal amount of the Agreements, interest accrued thereon, and all other amounts owing under the Agreements to be immediately due and payable in full. True and correct copies of the Default Letter are attached hereto and incorporated herein by reference as Exhibit "B". 8. Notwithstanding default and demand, the Borrower has not paid the full amounts owed to the Bank under the Agreement. 9. Pursuant to the terms of the Agreements, upon the occurrence of an event of default under the Note, the Bank may appear for and confess judgment against the Defendant for the amounts due and owing under the Note. -2- 10. Under the terms of the Note, the Bank is entitled to recover from the Defendant the costs of any suit, including attorneys' fees. 11. Under the terms of the Note, the Defendant agreed that the Courts of Common Pleas of the Commonwealth of Pennsylvania and any United States District Court in Pennsylvania shall have jurisdiction with respect to matters involving the Note. 12. As of September 10, 2004, the amounts due and owing by the Defendant to the Bank under the Note are as follows: Unpaid principal balance under the Note/Loan Agreement dated April 30, 2003 as of July 6, 2004 $444,454.49 Late fees from July 6, 2004 1,160.76 $445,615.25* *Together with interest accruing at the rate in the Note/Loan Agreement from July 6, 2004, attorneys' fees, and costs of this action (to be determined) 13. The Note has not been assigned by the Bank. 14. The Bank's claims against the Defendant are not based upon a residential mortgage and Act 6 does not apply. 15. No judgment has been entered on the Note in any jurisdiction. 16. The confession of judgment provision appearing in each of the Notes is less than twenty (20) years old. 17. Judgment in favor of the Bank and against the Defendant is not being entered against a natural person in a consumer credit transaction. -3- 18. Judgment in favor of the Bank and against the Defendant as demanded is authorized by the confession of judgment provisions contained in the Note. WHEREFORE, the Bank, as authorized by the Warrant of Attorney contained in the Note, hereby demands that judgment by confession be entered in its favor and against the Defendant, in the amount of $445,615.25, plus interest accruing after July 6, 2004, plus costs and attorneys' fees and requests such other and further relief as the Court may deem proper. TU¢kER ARENSBERG, P.C. V\\-I? F. St phenson Matthes P I. . No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Attorneys for Plaintiff, Dated: f -zz-vy The Legacy Bank 71974.1 -4- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. VERIFICATION Don Signor hereby states that he is a Loan Review Officer of The Legacy Bank, and verifies that the statements made in the foregoing Complaint In Confession of Judgment are true and correct to the best of his knowledge, information and belief. The undersigned understands that the statements made therein are made subject to penalties of 18 Pa. Cons. Stat. Ann. §4904 relating to unsworn falsification to authorities. Dated: y/z?a `f 71975.1 Don Signor, Loan view Officer The Legacy Bank CERTIFICATE OF SERVICE AND NOW, this 2 3d day of 4-&*& , 2004, I, Dawn T. Heilman, Legal Secretary to F. Stephenson Matthes, Esquire, for the firm of Tucker Arensberg, P.C., hereby certify that I have this day served a true and correct copy of the within document, by mailing same by U.S. Mail, Certified Return Receipt Requested, postage prepaid, addressed as follows: HealthCore, LLC 47 West Pomfret Street Carlisle, PA 17013 Dawn T. Heilman 72101.1 OS Emil Busium Administration 0 SBA Loan # GP 626 380 40 09 HBG SBA Loan Name HealthCore, LLC Date April 30, 2003 Loan Amount 500,000.00 Interest Rate WSJ Prime+2.75% Borrower Operating Company HealthCore, LLC Lender The Legacy Bank 1. PROMISE TO PAY: In return for the Loan, Borrower promises to pay to the order of Lender the amount of FIVE HUNDRED THOUSAND AND NO/100 interest on the unpaid principal balance, and all other amounts required by this Note. 2. DEFINITIONS: "Collateral" means any property taken as security for payment of this Note or any guarantee of this Note. "Guarantor" means each person or entity that signs a guarantee of payment of this Note. "Loan" means the loan evidenced by this Note. "fLoan Documents" means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. U.S. Small Business Administration NOTE no Dollars, SBA Form 147 (06/03/02) Version 4.1 Page 1/6 Bankers Systems, Inc., St. Cloud, MN 3. PAYMENT TERMS: Borrower must make all payments at the place Lender designates. The payment terms for this Note are: The interest rate on this Note will fluctuate. The initial interest rate is 7.500% per year. This initial rate is the prime rate on the date SBA received the loan application, plus 2.75%. The initial interest rate must remain in effect until the first change period begins. \I Borrower must pay principal and interest payments of $7,547.00 every month, beginning one month from the month of initial disbursement on this Note; payments must be made on the same day as the date of initial disbursement nn this Note in the months they are due. Lender will apply each installment payment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal. The interest rate will be adjusted quarterly (the "change period"). The "Prime Rate" is the prime rate in effect on the first business day of the month in which an interest rate change occurs, a published in the Wall Street Joumal on the next business day. The adjusted interest rate will be 2.75% above the Prime Rate. Lender will adjust the interest rate on the first calendar day of each change period. The change in interest rate is effective on that day whether or not Lender gives Borrower notice of the change. The initial interest rate must remain in effect until the first change period begins. Lender must adjust the payment amount at least annually as needed to amortize principal over the remaining term of the note. If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate becomes fixed at the rate in effect at the time of the earliest uncured payment default. If there is no uncured payment default, the rate becomes fixed at the rate in effect at the time of purchase. All remaining principal and accrued interest is due and payable 7 years from date of Note. Late Charge: If a payment on this Note is more than 10 days late, Lender may charge Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment. Loan Prepayment: Notwithstanding any provision in this Note to the contrary: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If Borrower prepays more that 20 percent of the Loan and the Loan has been sold on the secondary market, Borrower must: a. Give Lender written notice: b. Pay all accrued interest; and c. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days interest from the date Lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b., above. SBA Form 147 (06103/02) Version 4.1 Page 2/6 Bankers Systems, Inc., St. Cloud, MN 4. DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company: A. Fails to do anything required by this Note and other Loan Documents; B. Defaults on any other loan with Lender; C. Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its proceeds; D. Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA; E. Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA; F. Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower's ability to pay this Note; G. Fails to pay any taxes when due; H. Becomes the subject of a proceeding under any bankruptcy or insolvency law; 1. Hasa receiver or liquidator appointed for any part of their business or property; J. Makes an assignment for the benefit of creditors; K. Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower's ability to pay this Note; L. Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender's prior written consent; or M. Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower's ability to pay this Note. 5. LENDER'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, Lender may: A. Require immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. File suit and obtain judgment; D. Take possession of any Collateral; or E. Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement. 6. LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A. Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance; C. Release anyone obligated to pay this Note; D. Compromise, release, renew, extend or substitute any of the Collateral; and E. Take any action necessary to protect the Collateral or collect amounts owing on this Note. SBA Form 147 (06/03/02) Version 4.1 Page 316 Bankers Systems, Inc., St. Cloud, MN 7. WHEN FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law. 8. SUCCESSORS AND ASSIGNS: Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns. 9. GENERAL PROVISIONS: A. All individuals and entities signing this Note are jointly and severally liable. B. Borrower waives all suretyship defenses. C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. D. Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E. Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note. F. If any part of this Note is unenforceable, all other parts remain in effect. G. To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale. SBA Form 147 (06/03/02) Version 4.1 Page 4/6 Bankers Systems, Inc., St. Cloud, MN 10. STATE-SPECIFIC PROVISIONS: WARRANT OF AUTHORITY TO CONFESS JUDGEMENT. Upon default, in addition to all other remedies and rights available to you, by signing below I irrevocably authorize the prothonotary, clerk, or any attorney to appear in any court of record having jurisdiction over this matter and to confess judgment against me at any time without stay of execution. I waive notice, service of process, and process. I agree and understand that judgment may be confessed against me for any unpaid principal, accrued charges due on this Note, plus collection costs and reasonable attorneys' fees up to 15 percent of the judgement The exercise of the power to confess judgment will not exhaust this warrant of authority to understand that my property may be seized without prior notice to satisfy the debt owed. I knowingly, intentionally, and voluntarily waive any and all constitutional rights I have to pre-deprivation notice and hearing under federal and state laws and fully understand the consequences of this waiver. immediately below, I agree to the terms of the CONFESSION OF JUDGEMENT section. yne"Jaer, Member SBA Form 147 (06/03102) Version 4.1 ?s03 Date ?6-Kd 3 Date Page 5/e Bankers Systems, Inc., St. Cloud, MN 11. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligated under this Note as Borrower. HealthCore, LLC ?! _.. April 30, 2003 n e m, e e April 30, 2003 Krist Baer, Mem er / SBA Fonn 147 (06103/02) version 4.1 Page 6/6 Bankers Systems, Inc., St. Cloud, MN TUCKER ARENSBERG Attorneys September 16, 2004 VIA CERTIFIED MAIL; RETURN RECEIPT REQUESTED NO. 7002 2410 0001 2367 2348 AND FIRST CLASS MAIL Jenine J. Kerr Krista K, Baer HealthCore, LLC 47 West Pomfret Street Carlisle, PA 17013 F. Stephenson Matthes smatthes@tuckerlaw.com RE: Promissory Note dated April 30, 2003 (SBA Loan) in Principal Amount of $500,000 Between HealthCore, LLC and The Legacy Bank Notice of Default and Demand for Payment Dear Ms. Kerr and Ms. Baer: This office represents The Legacy Bank ("Legacy" or "Lender"). Reference is made to that certain Promissory Note dated April 30, 2003 (the "Note") in the principal amount of $500,000, which was executed and delivered to Legacy by HealthCore, LLC ("Borrower"). Reference is further made to that certain Commercial Security Agreement dated April 30, 2003 (the "Security Agreement"), which was executed and delivered by the Borrower to Legacy. The paragraph of the Note entitled "DEFAULT" provides, in part, that Borrower will be in default if "Borrower does not make a payment when due under this Note or if Borrower or Operating Company: (a) fails to do anything required by this Note and other Loan Documents; (b) defaults on any other loan with Lender; (c) does not preserve or account to Lender's satisfaction for, any of the Collateral or its proceeds; (d) fails to pay any taxes when due; ... ". The Note provides that upon default, Lender may "(a) require immediate of all amounts owing under this Note; (b) collect all amounts owing from any Borrower or Guarantor; (c) file suit and obtain judgment; (d) take possession of any Collateral; or (e) sell, lease or otherwise dispose of any Collateral at public or private sale with or without advertisement." Borrower is presently in default for numerous reasons including a failure to make payments when due on several loan obligations to Legacy, as well as for failing to make tax payments when due. Pursuant to the direction of Legacy Bank, we hereby notify.you that Legacy Bank declares the entire balance under the Notes immediately due and payable and demands immediate payment of all principal, interest, and fees, currently $444,454.49, together with accruing interest, attorneys' fees and other expenses. This balance is current as of September 15, 2004, but does not include attorneys' fees and costs. For a complete breakdown of the same, please contact the undersigned. Tucker Arensberg, P.C. 111 North Front Street P.O. Box 889 Harrisburg,PPA 17108 www.tuckerlaw.com r r'te' p. 800.257.4121 p. 717.234.4121 f.71 32.6802 TUCKER ARENSBERG A t t 0 r n a y s Janine J. Kerr Krista K. Baer September 16, 2004 Page 2 Payment should be made by cashier's check or wire transfer to The Legacy Bank, 2600 Commerce Drive, Harrisburg, PA 17110. The Legacy Bank reserves all rights and remedies that it has under the Note, any other loan documents executed in connection with the Note, any other loan documents by the Borrower, any third party obligor, any pledgor, any guarantor and/or at law or in equity. Thank you for your immediate attention to this matter. Very truly yours, TIyCItER ARENSBERG, P.C. F. Stephenson Matthes FSM/dth cc: Janine J. Kerr Ronald W. Baer Krista K. Baer W&C Realty & Holdings, L.P. HealthCore of Maryland, LLC HealthCore of Ohio, LLC 71852.1 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS. Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank, that he is duly authorized to make this affidavit on behalf of Plaintiff; that the facts set forth in the foregoing Complaint In Confession Of Judgment are true and correct to the best of his information and beli r. and that the Note (as defined in the Complaint) which is attached as an Exhibit to t 61 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 170131 COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. 6- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS, Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank, that he is duly authorized to make this affidavit on behalf of Plaintiff; that the facts set forth in the foregoing Complaint In Confession Of Judgment are true and correct to the best of his information and belief; and that the Note (as defined in the Complaint) which is attached as an Exhibit to the Complaint In Confession Of Judgment is a true and correct copy of the original executed by the Defendant. Don Signor, Lo n Revi Officer The Legacy Bank Sworn to and subscribed before me this,/,W.?- day of September, 2004. No Public. Ndit, seal sus. ? oar sem?a, rotary PubAc Cxy Of riaxrWxn, Dauphin cou7ly W comrAsim Expires Apr. 9, 2007 ?IMtW. PWVWA" ANOCW nOfNOWO -2- 61 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS Before me, the undersigned Notary Public, in and for said County and State, personally appeared Don Signor, Loan Review Officer of The Legacy Bank, Plaintiff herein who, as an authorized representative thereof, being duly sworn according to law, deposes and says that the Defendant is not in the military service of the United States of America, to the best of his knowledge, information and belief. /N ?• C Don Signor, oan iew Officer The Legacy Bank Sworn to,-AN subscribed before e isA day of September, 2004. Not M Seal Dwnaft Bathe, NoWy NOC CK,,Of CW* W Cam*wion EXOM AV. 9, ZW MW*JW, PWOWA&Ift AWQ** nq WIAXAM V TUCKER ARENSBERG. P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT OF INCOME COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; and that to the best of his knowledge, information and bel' f the income of the Defendant is in excess of $10,000.00 per year. Don Signor, Lo n Revi Officer The Legacy Bank Swor t and Subscribed before me t ' ay of September, 2004. Notary Public 71977.1 Niatli1a! Seal Darr"Ia Bete, NDt"- R.bk City Of Hwdxirg, Da#w CW* my Oan'prosinn Expires Apr. 9, 2007 Mmtlr,P mAfto elona N*Aft 0- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I. D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT OF NONAPPLICABILITY OF GOODS AND SERVICES INSTALLMENT SALES ACT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; that the Complaint In Confession Of Judgment does not arise out of a retail installment sale, contract, or account, as defined under the Goods and Services Installment Sales Act, 69 Pa. Stat. Ann. §1101, et seg.; and that the foregoing facts are true and come to the best of his knowledge, information and belief. Don Signor, Loan 1tevie fficer The Legacy Bank Swo to and Subscribed before??jjme,, ? t dayo S8cepte ri f 0? C r .S No Public 71978.1 hols:a1 ssao Da ft BcAa, ?"Pl*, CRY Of HamstAn' [.aL#w Q=ty 6y CarnNssbn Exom Arp. 9 '.58,7 Mmta, p?vyk.,gca>4x„ocrMk:n'.X N.r p4 0 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE,LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AVERMENT OF DEFAULT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS. Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank, that he is a duly authorized representative of Plaintiff; that the Defendant executed the Note (as defined in the Complaint), true and correct copies of which are attached to the Complaint; that the Defendant is in default under the Note; and that there is $445,615.25 due and owing under the Note as of Septr 10, 2004 Don Signor, LoarfRevi Officer The Legacy Bank an tto d subscribed before me day of September, 2004. t? ublic. 71979.1 Nola+w seal ca v Dann BOW% Na1ay Rib r ay 01 Hmfttxec, Dayton Cary .Mxn6w f'x:n;• . My CofMiMbn? AV-9.7067 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V. HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT OF COMMERCIAL TRANSACTION COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; that the underlying transaction relative to this Complaint In Confession Of Judgment is a commercial transaction to the best of his knowledge -information and belief. Don` Signor, Low Re ' Officer The Legacy Bank Sworn to and subscribed before m t i? day of Septejpber, 2004. R ?_. rL .I I•_ NOMM 8" wknea, Pr+M? ???^ a ?k W lw ?_ ?'> -? ? °? ? _? _. ?: ?? ?=- -? ?, e-" 6 TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, V, HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. Defendant. ACT 105 OF 2000 NOTICE A JUDGMENT HAS BEEN ENTERED AGAINST YOU BY CONFESSION OF JUDGMENT. PURSUANT TO 42 PA. C.S.A. §2737.1, IF YOU WERE INCORRECTLY IDENTIFIED AS A DEFENDANT IN THE COMPLAINT IN CONFESSION OF JUDGMENT, YOU MAY BE ENTITLED TO COSTS AND REASONABLE ATTORNEY FEES AS DETERMINED BY THE COURT. YOU MAY TAKE ACTION TO STRIKE THE JUDGMENT BY FOLLOWING THE PROCEDURE IN RULE 2959 WHICH IS AS FOLLOWS: Pennsylvania Rule of Civil Procedure 2959 - Strikinq Off Judgment. (a)(1) Relief From a judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open it must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has stayed execution despite the timely filing of a petition for relief from the judgment and the presentation of prima facie evidence of a defense; and (ii) as provided by Pennsylvania Rule of Civil Procedure 2958.3 or Rule 2973.3. (3) If written notice is served upon the petitioner pursuant to Rule 2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. (c) A party waives all defenses and objections which are not included in the petition or answer. (d) The petition and the rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending disposition of the application to strike off the judgment. If evidence is produced which a jury trial would require the issues to be submitted to the jury the court shall open the judgment. (f) The lien of the judgment or of any levy or attachment shall be preserved while the proceedings to strike off or open the judgment is pending. ARENSBERG, P.C. Dated and Served: September, 2004 By Certified Mail Return Receipt Requested 71951.1 F. S ep en% MdttNes PA I. No. 408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Attorneys for Plaintiff, The Legacy Bank -2- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, T HEALTHCORE, LLC 47 West Pomfret Street Carlisle, PA 17013, CIVIL DIVISION NO. 014 - u7-83 Defendant. NOTICE Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above-captioned proceeding. Copies of all documents that have been filed with the Prothonotary in support of the Confession of Judgment are attached hereto. If you have any questions concerning this Notice, please call, F. Stephenson Matthes, Esquire, at (717) 234-4121. PR04G OT 7 71953.1 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE LEGACY BANK, 2600 Commerce Drive, Harrisburg, PA 17110 Plaintiff, vs. HEALTHCORE, LLC, 47 West Pomfret Street Carlisle, PA 17013, Defendant, and CITIZENS BANK, COMMUNITY BANK, M&T BANK, and "_--CAPITACTEMPFl7NIIS;'IM., Y6 Garnishees. Wit( NO - r)cwc '• vLt 5?..e.e s, CIVIL DIVISION NO. 04-4783 PRAECIPE FOR WRIT OF EXECUTION UPON CONFESSION OF JUDGMENT Filed on behalf of: The Legacy Bank, Plaintiff CODE: Counsel of Record for This Party: F. Stephenson Matthes PA. I.D. NO. 67408 TUCKER ARENSBERG, P.C. Firm #287 111 North Front Street P.O. Box 1389 Harrisburg, PA 17110 p. 717.234.4121 CYTA? -6f- IN THE COURT OF COMMONS PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, CIVIL DIVISION Plaintiff, vs. HEALTHCORE, LLC, 47 West Pomfret Street, Carlisle, PA 17013, Defendant, and CITIZENS BANK, COMMUNITY BANK, M&T BANK, and CAPITAL TEMPFUNDS, INC., Garnishees. NO. 04-4783 PRAECIPE FOR WRIT OF EXECUTION UPON CONFESSION OF JUDGMENT To the Prothonotary: Issue writ of execution in the above matter, (1) directed to the Sheriff of Cumberland County; (2) against, Healthcore, LLC, Defendant; (3) and against Citizens Bank, Community Bank, M&T (Bank, St--? A-r 4c-pwb 5)+ r For- ADD"JXts Garnishees; (4) and index this writ (a) against Healthcore, LLC, Defendant; (b) and against Citizens Bank, Community Bank, M&T Bank, ? S? 1?'r?{lGI+iED SVI£ET E"0? Ppf?ESSfS 'I'F-c., Garnishees; (5) Amount due $ 445,615.25 Total $ 445.615.25 CERTIFICATION I certify that: (a) this Praecipe is based upon a judgment entered by confession, and (b) Notice will be served with the Writ of Execution pursuant to Rule 2958.3. -2- Attorney for Plaintiff D"SS C??, rsN ?? CAP i-rAt- uNDS , bur, X 3 AUC? .?BLIoD-cnzm 1T IZ ENS ?ANK S /J . SAS T 5"'C2 f.E T-' CARLISLE , ??}' 1-j 013 C on?,vl UTj i rte{ q/j)ns 11?? AjeLuwLL e7 TZ opt ('(+ 170) 3 M 13A-t,^ W ES-r- 14)(,1+ ?q e-EET- CIAZLIYLC-, Pft /"7013 &?,Q ? h P ? S S ? SSA M fv ?s wi `C `mot LT a 166-q a-ceocL4. Pte- ??-?? 6 J? 1 r rnv ?, CTS =-t a cn I WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) N004-4783 Civil TO THE SHERIFF OF CIVIL ACTION - LAW To sariCUMBERLAND COUNTY: sly the debt, interest and costs due THE LEGACY BANK Plaintiff(s) From HEALTHCORE, LLC, 47 W, POMFRET ST., CARLISLE PA 17013. (1) You are directed to levy upon the property of the defendant (s)and to sell (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of CITIZENSS BANK, 665 N EAST ST, CARLISLE PA 17013: COMMUNITY BANKS, 1178 NEWVH,LEi RD, CARLISLE PA 17013 AND M&T BANK, I W HIGH ST, CARLISLE PA 17013 GARNISHEE(S) as follows: ATTACH THE PROPERTY OF DEFT IN POSSESSION OF GARNISHEE BANKS INCLUDING BUT NOT LIMITED TO ANY FUNDS ON ACCOUNT AND BANK DEPOSITS. KINDLY SERVE INTERROGATORIES UPON GARNISHEE BANKS. and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering (s) or otherwise disposing thereof any Property defendant (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $445,615.25 Interest L.L. $.50 Arty's Comm % Arty Paid $37.50 Plaintiff Paid Date: SEPTEMBER 30, 2004 (Seal) REQUESTING PARTY: Name F. STEPHENSON MATTHES, ESQ. Address: P O BOX 889,111 N FRONT ST HARRISBURG PA 17110 Attorney for: PLAINTIFF Telephone: (717) 234-4121 Supreme Court ID No. 67408 Due Frothy $1.00 Other Costs CURTIS R. LONG Prothorufty By: ? Deputy IN THE COURT OF COMMONS PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, CIVIL DIVISION Plaintiff vs. HEALTHCORE, LLC, 47 West Pomfret Street, Carlisle, PA 17013, Defendant, and M&T BANK, Garnishee. NO. 04-4783 ly,q'9 11f OP P Iq ?9 OjA ,q * N,q,?,?®,yrs INTERROGATORIES TO GARNISHEE TO: M&T BANK 1 West High Street Carlisle, PA 17013 YOU ARE REQUIRED TO FILE ANSWERS TO THE FOLLOWING INTERROGATORIES WITHIN TWENTY (20) DAYS AFTER SERVICE UPON YOU. FAILURE TO DO SO MAY RESULT IN JUDGMENT AGAINST YOU. 1. At the time you were served or at any subsequent time did you owe the Defendants any money or were you liable to him on any lease, mortgage or on any negotiable or other written instrument, or did they claim that you owed them any money or were liable to them for any reason. ANSWER: 2. ' If the answer to Interrogatory 1 is in the affirmative, state the following: (a) the amount of money you owe or owed to Defendants; (b) if such money is in the form of a fund, the present location thereof; (c) the amount or amounts that Defendants claim or claimed that you owe or o%ved to him; (d) the nature and amount of each of such liabilities. ANSWER: 3. At the time you were served or at any subsequent time was there in your possession, custody or control of yourself and one or more other persons any property of any nature owned solely or in part by the Defendants. ANSWER: tips NO A? T9 O T 4. If the answer to Interrogatory 3 is in the affirmative, describe the nature, fair market value and present location of each of such properties. ANSWER: 5. At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or part by the Defendants or in which Defendants held or claimed any interest? ANSWER: -2- 6. ' If the answer to Interrogatory 5 is in the affirmative, described the nature, fair market value and present location of each of said properties. ANSWER: 7. At the time you were served or at any subsequent time did you hold as fiduciary any property in which the Defendants had an interest? ANSWER: tiq ENO AV T9 .cFN N? C COUNTS 6. If the answer to Interrogatory 7 is in the affirmative, describe the nature, fair market value and present location of each of such properties. ANSWER: 9. At any time before or after you were served, did the Defendants transfer or deliver any property to you or to any person or place pursuant to your directions or consent, and if so what was the consideration thereof? ANSWER: -3- . 10. ' If the answer to Interrogatory 9 is in the affirmative, describe the nature, fair market value and present location of each of such properties. ANSWER: 11. At any time after you were served did you pay, transfer or deliver any money or property to the Defendants or to any person or place pursuant to his direction or otherwise discharge any claim of the Defendants against you? ANSWER: JANICE M. GLASGOW M&T BANK 101's Q4 P.C. D. BANK FIN:233042-1 016986-120545 Matthes, 111 North Front Street P.O. Box 889 Harrisburg, PA 17110 p. 717.234.4121 -4- IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL DIVISION THE LEGACY BANK Plaintiff(s), vs. HEALTHCORE, LLC Defendant(s), vs. CITIZENS BANK OF PA, Garnishee. No. 04-4783 Praecipe for Appearance Code: 200 Execution Filed on Behalf of Garnishee, Citizens Bank of PA Counsel of Record for this Party: David F. Mowrey, Esquire PA I.D. No. 30431 2 Commerce Square 2001 Market Street Suite 600 Philadelphia, PA 19103 (267)-671-1033 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL DIVISION PRAECIPE TO: Office of the Prothonotary One Courthouse Square Courthouse Carlisle, PA 17013-3387 Sir: Kindly enter my appearance on behalf of Garnishee, Citizens Bank of PA ? h David F. Mowrey, Esquire 0 2 Commerce Square 2001 Market Street Suite 600 Philadelphia, PA 19103 Certificate of Service I, David F. Mowrey, hereby certify that a true and correct copy of this Praecipe for Appearance has been served upon the following by depositing it in the U. S. Mail, postage prepaid, this jq TM day of 2004. F. STEPHENSON MATTHES, ESQUIRE 111 NORTH FRONT STREET P.O. BOX 889 HARRISBURG PA 17110 HEALTHCORE,LLC David F. Mowrey squire N ?v } :: _ f ? - -! f ,..i ?I? _ l) Q:; f..` ?' X25 SHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04783 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTHCORE LLC And now RICHARD SMITH ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0012:00 Hours, on the 8th day of October , 2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT HEALTHCORE LLC , in the hands, possession, or control of the within named Garnishee M & T BANK 1 WEST HIGH ST CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to KIM SEAVERS (TELLER) , personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . Sheriff's Costs: So 00ir Docketing .00 rte' / No J%IW- ? Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 .00 00/00/0000 Sworn and subscribed to before me this )9 1?? day of CCU, p?(w)q, A-D. Q-tdhonotar j By puty Sheriff SHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04783 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTHCORE LLC And now BRIAN BARRICK Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:35 Hours, on the 13th day of October , 2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT HEALTHCORE LLC hands, possession, or control of the within named Garnishee COMMUNITY BANKS 201 ST JOHNS CHURCH ROAD CAMP HILL, PA 17011 Cumberland County, Pennsylvania, by handing to PAULETTE ROVITO (MANAGER) personally three copies of interogatories together with 3 and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . Sheriff's Costs: Docketing .00 Service .00 Affidavit .00 Surcharge .00 .00 00 , in the true and made So answe - -Klan ? R. Thomas Kline Sheriff of Cumberland County 00/00/0000 Sworn and subscribed to before me this Z k rf day of By ,W 'T A.D. Pro?tary !-7 IQO? 4i__ Deputy Sheriff SHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04783 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTHCORE LLC And now JASON VIORAL ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:54 Hours, on the 7th day of October , 2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , HEALTHCORE LLC , in the hands, possession, or control of the within named Garnishee CITIZENS BANK 665 NORTH EAST ST CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to CATHY COLE (ASST. MANAGER) , personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . Sheriff's Costs: So answers: Docketing .00??iA Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 00 00/00/0000 Sworn and subscribed to before me By this day of Off, uty Sheriff A.D. 9YLe-VX?a.. v Prot o otary The Legacy Bank VS Healthcore of Maryland, LLC Writ of Execution Docket No. 2004-4783 Civil Term OF T 2009 AUG 31 Aid 11 * 14 CUM" NTY And Now, August 25, 2009, R. Thomas Kline, Sheriff, who being duly sworn according to law, states the above captioned writ is returned ABANDONDED. No action has been taken since October 18, 2004. Sheriff s Costs: Docketing Surcharge Garnishee Levy Mileage Prothonotary Poundage So Answers: $18.00 70.00 27.00 60.00 11.10 1.50 3.75 ? $191.35 R. Thomas Kline, Sheriff BY tW _ Sergeant s `j"00 Co f , SL) 4.)- dk it 7/Y ('70- 'n-30d '- -s.