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HomeMy WebLinkAbout04-4802 o TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. Oi./ - C/l'O~ JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. 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 Unconditional Guarantee dated April 30, 2003 as of July 6, 2004 Late fees from July 6, 2004 $444,454.49 1.160.76 $445,615.25* *Together with interest accruing at the rate in the Unconditional Guarantee from July 6, 2004, attorneys' fees, and costs of this action (to be determined) 72063.1 -2- ~ }q:.. - ~ -...l "\ <F .... ~ - ~ -0 ~ --0 .,... ~ ..-- "f= I_~~ ; ("") ~.: -<- ...., ~. ~) c.:;, c, -" t:f) ii, '-\.1 ro..) C...) --I :r.... ""i:":l -,- 1"1"'"' ~ "-/ ':..:j :.~:: .. " -- :~I' -..J ;::! -, TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232~802 THE LEGACY BANK. 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. dl{ - ftfl):l JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, 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 Unconditional Guarantee 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, Jenine J. Kerr, 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 Unconditional Guarantee 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 Unconditional Guarantee from July 6, 2004, attorneys' fees, and costs of this action (to be determined) ? Dated: q ~ ;2~l/ . t ns PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 72065.1 Attorneys for Plaintiff, The legacy Bank - 2- .. ... -- .1-.;. ....- ~. ..J -..;: o f.,,; ...., ...:."') ." .~, n -"1 =:j Co') r...:: <...J f i, ;~;: -:":; n ....J'!.: :.:':':":. ~'..:= ."Oji ..' C. TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. ol{- 4f()J-. JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. COMPLAINT IN CONFESSION OF JUDGMENT 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: Plaintiff, The Legacy Bank (the "Bank"), by and through its attorneys, 1. The Bank is a national banking association with an address at 2600 Commerce Drive, Harrisburg, Pennsylvania 17110. 2. Defendant, Jenine J. Kerr, is an adult individual with a last known business address of 47 West Pomfret Street, Carlisle, Pennsylvania 17013. 3. The Defendant executed a certain Unconditional Guarantee on April 30, 2003 (the "Guarantee") pursuant to which the Defendant agreed to, and did, become unlimited guarantor and surety for all obligations of HealthCore, LLC, (the "Borrower") to the Bank, including but not limited to, Borrower's obligations to Bank under (i) that certain Loan Agreement between the Borrower and the Bank dated April 30, 2003 and all related documents (the "Agreements"). True and correct copies of the Unconditional Guarantee and Note/Loan Agreements are attached hereto and incorporated herein as Exhibits "A" and "S", respectively. 4. Defendant, through the terms of the Guarantee, authorized the confession of jUdgment against the Defendant. 5. Pursuant to the terms of the Guarantee, the Defendant was required to, among other things, guarantee and act as surety for Borrower's obligations under the Agreements. 6. As a result (among other things) of Borrower's failure to pay certain amounts as and when due under the Agreements, events of default occurred under the Agreements. 7. 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. B. Pursuant to the terms of the Guarantee, upon the Occurrence of an event of default under the Agreements, the Bank was authorized to declare all amounts payable under the Guarantee to be immediately due and payable. -2- 9. 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 "C". 10. On September 22,2004, the Bank sent a letter to the Defendant, again notifying the Defendant that all obligations under the Agreements were due and payable. A true and correct copy of that letter is attached hereto and incorporated herein as Exhibit "0". 11. Notwithstanding default and demand, the Borrower and the Defendant have not paid the full amounts owed to the Bank under the Agreement. 12. Pursuant to the terms of the Agreements, upon the occurrence of an event of default under the Guarantee, the Bank may appear for and confess jUdgment against the Defendant for the amounts due and owing under the Guarantee. 13. Under the terms of the Guarantee, the Bank is entitled to recover from the Defendant the costs of any suit, including attorneys' fees. 14. Under the tenns of the Guarantee, 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 Guarantee. -3- 15. As of July 6,2004, the amounts due and owing by the Defendant to the Bank under the Guarantee are as follows: Unpaid principal balance under the Unconditional Guarantee 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 Unconditional Guarantee from July 6, 2004, attorneys' fees, and costs of this action (to be determined) 16. The Note and the Guarantee had not been assigned by the Bank. 17. The Bank's claims against the Defendant are not based upon a residential mortgage and Act 6 does not apply. 18. No jUdgment has been entered on the Guarantee in any jurisdiction. 19. The confession of jUdgment provision appearing in each of the Notes or Guarantee is less than twenty (20) years old. 20. Judgment in favor of the Bank and against the Defendant is not being entered against a natural person in a consumer credit transaction. 21. Judgment in favor of the Bank and against the Defendant as demanded is authorized by the confession of jUdgment provisions contained in the Note and/or Guarantee. contained in the Note and Guarantee, hereby demands that jUdgment by confession be WHEREFORE, the Bank, as authorized by the Warrant of Attorney - 4- 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. It- . S he;o Ma es PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Dated: ~7/0Y 72064.1 Attorneys for Plaintiff, The Legacy Bank -5- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. 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: 72037.1 9h,~~ eont:" ~-k~ The Legacy Bank CERTIFICATE OF SERVICE - "](d . J: :rlft . I'. .. AND NOW, this O{.,) day of ~'Ak.(X/L .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 Retum Receipt, postage prepaid, addressed as follows: 72101.1 Jenine J. Kerr 47 West Pomfret Street Carlisle, PA 17013 0umJ 'tkJL.~ Dawn T. Heilman t XA,'h it ;1 E:......:L.:.& . os SalaU au.m- 4dm1Ili1tnUan U.S. Small Business Administration UNCONDITIONAL GUARANTEE SBA Loan , GP 626 3BO 40 09 HBG SBA Loan Name HealthCore, U.c Jenine J. Kerr Guarantor HealthCore, U.c Borrower Lender The Legacy Bank Date Aprl 30, 2003 Note Amount 500,000.00 1. GUARANTEE: GWI1'lIDtor UDCODditionally guarantees paylDCllt to Leuder of all amounts owing nndor rho NOle. This Guarantee remaiDs ill offoct until the NolO is paid in full. Guarantor must pay all amDUDlS dllO under rho NolO when Lender makes wrillell demand upon GWI1'lIDtOr. Leader is not requimltO seek paYlDCllt from auy ot:hor soun:e before demandiDg paymotlt from GWI1'lIDtor. 2. NOTE: Tho "Nore" is tho premiSSOJ}' nolO dared FIVE HUNDRED THOUSAND AND NQ/1oo Ap1t130, 2003 in tho priDcipalllllOUllt of Doll.... from Bomlwer to Londer. It includes any assumption. renewal, substillllion, or repllCeJtlODl of tho Nllle, IIIc! multiple notes WIder a Une of cradiL 3. DEFINITIONS: "Collatera1" moans auy property taken as sacurity for payment of tho NOla or any guanmtee of tba NollO. ''Loan'' moans tho loan evidenced by tho NollO. "Loan Documents" moans tho documents related to tba Loan sigDod by Bomlwar. Guarantor or any other guarantor, or anyona who pledges Collalara1. "SBA" moans the Small Business Adminislnllion, an Agency of the United Swes of Amorica. SBA Fenn'48 ('OI9B) PI8VioUl odlliol1l ablOleIe. Pogo 1/5 Bankers SysWns, Inc., St Cloud, MN 4. LENDER'S GENERAL POWERS: Landor may taka any of tho following actions at any time, witbcu.t notice, witboUl Guarantor's CDlIIODI, and withOUI making demand upon Guarautor: A. Modify tho lIOnns of the NollO or any ot:hor Loan Documant except to increase the amounts dllO under the NollO; B. Refrain from taking any action on tho NOllO, tho CoUalara1, or any guaranllOe; C. Release any Borrower or any guarantor of the NollO; D. Compromise or sattle with tho Bomlwar or any gu&rantor of the NOlO; E. SubstitullO or rele... any of the COllallOraI, whether or not Landor racaivas anything in reDlIn; F. Foraclose upon or otherwise obtain, and dispose of, any Collateral at public or privallO sale, with or without advertisaman~ G. Bid or buy at any sale of CoIlalaral by Lander or any otber lienholder, at any price Lender chooses; and H. Exorcise any rights ;1 has. including those in tba NolO and other Loan Documants. Those actions will nOl rel...e or reduce the obligations of GuanntOr or create any rights or claims against Lender. S. FEDERAL LAW: Whoa SBA is the holder, tba NollO and this GWI1'lIDtee will be construed and eofon:ed WIder fedora1law, including SBA regulations. Londar or SBA may usa slata or Ioca1 pmceduros for liUng papers, recording documents, giving notice, foraclosing Uans, and other purposes. By using sw:h procedures, SBA does 001 waive any federal immWlity from swe or local conlrOl, penalty, tax. or Uability. As to this GuannllOa, GWI1'lIDtOr may not claim or assart any local or swe law against SBA to deny any obligation. defeat any claim of SBA, or preampt fadora1law. 6. RIGHTS. NOTICES, AND DEfENSES THAT GUARANTOR W AlVES: To tho OJttanl permitted by law, A. GuarantOr waives all rights to: I) Require lRSenanen~ prollOS~ or demand upon Borrower; 2) Radoam any Collalara1 before or after Lander disposes ofi~ 3) Have any disposition of Collalara1 advertised; and 4) Raquira a valuation of COUaIara1 before or after Leader disposes of i~ B. GuarantOr waives any noIica of. I) Any default UDder tba NOlIO; 2) Prasanlman~ dishonor, protes~ or demand; 3) Exocution of the NollO; 4) Any action or inaction on tba NollO or Collateral, such as disbursements, paymen~ llClIIpaymenl, acceleration, inllODlto aca:lerata, assigDIDCII~ cnUec:lion activity, and incurring aoforcamaat axpenses; 5) Any chango ill the financial condition or busilloss operations of Bomlwer or any guarantor; 6) Any changes in tho renns of tho NOlO or othc::r Loan Documents, axcapt increases in tba amounts due under lIIe Nota; and 7) Tho time or place of any sa1a or allier disposition of CollateraL C. Guarantor waives defansas basad upon any claim that: I) Landor failad to obtain any guBl'lllltea; 2) Lender failed to obtain, pc::rfect, or maintain a security ilIterosl in any pmperty offered or taken as CoUatera1; 3) Lender or nlhazs improperly valuad or iII5peCIad tho Collateral; 4) Tho Collalara1 changed ill valllO, or was naglOClad, los~ doslrOyad, or underinsurod; SllA Fann 148 ('OI9B) PI8VioUl odilia.. absalota. Page 2JS Bankers SysI8ms, Inc., St Cloud, MN 5) Leader impaired the Collalaral: 6) Londer did not dispose of any of tho Collatara1; 7) Londer did not conduct. commarcially roasonabla sale; 8) Landor did not obtain tho fair market value of tho Collatem; 9) Landor did not malee or perfect a claim upon the death or disability of BOl1DWe1" or any guarantor of tho NUllO; 10) Tho financial condition of Bomlwer or any guarantor was ovOtSlIlIOd or has advanely changed; II) Louder made = or omissions ill Loan Doc:umants or .dm;n;."'ation of tho Loan: 12) Londo: did not soak pa)'lllOlll from tho BOIl'Ower, any other guannllln, or any Collatem before d~.""mg payment from Guarantor: 13) Lander impaired GuarantOr's suretyship rights; 14) Londor modified tho Nota tatms, other tIum to jncraasa amounts duo under the NOllO.lfLeodar modifies the NUllO to ilIcraasa tho amounts duo under tho NollO withnut Guarantor's consant, Guarantor will DOl be Uabla for tho jnc:raased amounts and relared in"""st and expanses, but remain. liable for all other amounts; IS) Borrower has avoided liability on the NUllO; or 16) Londar has taken an action allowed under tho NOllO, this GUIrlDtee, or olbar Loan DocumanlS. 7. DUTIES AS TO COll.A TER.A1.: GuarantOr will proserve tho Collatera1 pledged by Guarantor to secure IIlis Guarantee. Landor has no duty to proserve or dispose of any Collatem. 8. SUCCESSORS AND ASSIGNS: Under this GuaranllOe, Guaranror includes hairs and successors, and Landor includes its successors and assigns. 9. GENERAL PROVISIONS: A. ENFORCEMENI' EXPENSES. Guarantor promises to pay all expanses Lender iDc:nrs to eofon:e Ibis Guarantee, including, bul not 1imi1lOd tn, attorney's f..s and costs. B. SBA NOT A CQ.QUARANTOR. Guarantor's liability will oontinuo oven if SBA pays Lender. SBA iJ DOt a co-guarantor with Guanmtor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to lba NollO or Ibe Collalara1 until tba NollO iJ paid in fulL D. JOINT AND SEVERAL LlABD.ITY. All ilIdividuals and entities signing as Guarantor.... jointly and sevarally liable. E. DOCUMENT SIGNING. Guannror musl sign all documants necessary at any time to comply with tba Loan Documents and to enable Londor to acquire, perfect, or m.;nt.;n Landor's Dans on Collalarlll. F. FINANCIAL STATEMENTS. Guarantor musl give Leader financial statemants as LatuIar requires. G. LENDER' S RIGHTS CllMULA TIVE, NOT WAIVED. Lander may exorcise any of its rights separataly or tOgether, as many time. as il choosa.. Landar may dalay or forgo enforcing any of its rights wi1hout losing or impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may not usa an oral StalelDCllltO oontradiCl or alter lba wriIlan terms of the Note or this Guarantee, or to niJe a defense to this Guaranlee. L SEVERABD.ITY. If any pan of IIlis GWI1'lIDlee iJ founcIto be uneofon:aabla, all olIla< parts will romaiD in affect. J. CONSIDERATION. The cnnsidaration for this Guatmltee is tba Loan or any lIl"",m"""'llion by Lender as to the Loan. S6A Fenn'48 (10/9B) F'leviaus__. Pogo :w Bankers SystBms, Inc., St Cloud, MN 10. STATE.SPECIFIC PROVISIONS: WARRANT OF AUTHORITY TO CONFESS JUDGEMENT. Upon defaul~ in addition 10 all other remedies and rights available to you, by signing below I irrevocably authorize the prolhonotary, clerk, or any allDrney to appear in any court of record having jurisdiction over this matter and to confess Judgment against me at any Urn. without stay of eXBcution. I waive notice, service of process, and process. I sgres and understand that judgment msy be confessed against me for any unpaid principal, accrued charges due on !his Note, plus collection costs and reasonable allDmeys' fees up 10 15 percenlof !he Judgemenl The exercise of !he power 10 confess judgment will not exhaust !his warrant of suthority 10 understand that my pi"operty may be seized without pflOr notice to satisfy the debt owed. I knowingly, intentionally, and voluntarily waive any snd aU constitutional rights I have to pre--deprivation notice and hearing under federal and state laws and fulty understand the consequences of this waiver. DATE S6A Fann , 48 (' OI9B) Previous _ absa..... Page 415 Bankers Systems, Inc., Sl Cloud, MN 11. GUARANTOR ACK.L'IOWLEDGMENT OF TERMS. GlW'3lItor acknowledges thaI GuarantOr has read and understands the significance of all terms of tho No.. and this GUar&nlae, including all waivers. 12. GUARANTOR NAME(S) AND SIGNA TURE(S): By signing below, each individual or entity becomas obligated as GWI1'lIDtOr under this Guaranroe. AptI30, 2003 SBA Fann , 48 (' CWIl) Previous _.. aIlsalele. Pogo 515 Bankars SystBms. Inc., Sl Cloud, MN &:x:h:hi+13 U.S. Small Business Administration NOTE -6)~ I fA) ( ~~~ SBA Loan # GP 626380 40 09 HBG SBA Loan Name Healll1core, U.c ~--- ... April 30, 2003 Dat8 Loan Amount 500,000.00 Interest Rate WSJ P(,"", + 2.75% Healll1core, LLc Borrower Operating Company Lender The Legacy Bank I. PROMISE TO PA Y: IiI return for tho Loan. Borrower promises to pay to tho order of Landor tho amount of FIVE HUNDRED THOUSAND AND NQ/loo Doll.... inlO....t on tho unpaid principal balance, and all other amounts required by this Nora. 2. DEFINITIONS: "CollallOral" moans any property taken as security for paymonl of this NollO or any guarantee of tbis NollO. "GuarantOr" moans each parson or entity that signs a gu&ranllOa of payment of this NOla. ''Loan'' means the loan evidenced by tbis NollO. "'Loan Documents" moans tho documanlS ralated to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral. "SBA" moans the Small BusiDass Adminislnllion. an Agency of tho United SlaIa.s of AmaricL .' - SBA Form 147 (0&'03102) Version 4.1 P8ge11B . Bankers Sys18ms, Inc., St. Cloud, MN . 3. PAYMENT TERMS: Borrower must make all payments at tho place Landor designallOs. Tho payment tarm5 for this NOlO 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 madB on the same day ~s the date of in~i~1 -diSburs.amenl...onJbjs.NotB 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 thB 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: Notw~hstanding 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 interBst accrued during the 21 days and paid under subparagraph b., above. SBA Form 14.7 (0Ml3I02) verskJn 4.1 Page 211I Bankers Systems, Inc., SL Cloud, MN 4. DEfAULT: Borrow.r is in d.fault under this NOla if Borrower does not make a payment when duo WIder this NOI., or if Borrower or Operating Company: A. Fails to do anything requir.d by this NollO and other Loan Docum.nts; B. Defaults on any other loan with Lander; C. Docs not p...s.rv.. or account to L.ndor's satisfaction for. any of tho Collataral or its procaads; D. Does not disclos., or anyone acting on their behalf does nol disclos., any marerial fact to Lander or SBA; E. Makos, or anyone acting on their behalf mak.s. a marerially false or misl.ading rep...s.ntation to Landor or SBA; F. Defaults on any loan or agreemenl with anothor creditOr, if Lander beli.v.s the default may mat.rially affect Borrower's abiUty [0 pay this NollO; G. Fails to pay any tax.s when dllO; H. B.carn.s tho subj.ct of a proc.eding und.r any bankruptcy or insolv.ncy law; I. Has a ...ceiv.r or liquidatOr appointad for any part of their busin.ss or property; J. Makes an assignment for tho b.n.lit of creditOrs; K. Has any adv.... change ill financial condition or bwin.ss operation that Landor bali.v.s may materially affect Borrow.r's abiUty to pay this Nota; L. R.organiz.s, morg.s. consolidat.s, or otho.....'is. chang.s own.rship or busilless sttuClltl'O wilhoul Lander's prior written consent; or M. Becomes tho subject of a civil or criminal action !hat Londer beli.ves may matarially affect Borrow.r's ability to pay this NOla. S. LENDER'S RIGHTS lFTIlERE IS A DEFAULT: Without notice or demand and withoul giving up any of its rights, Leader may: A. Require ilDllladiate payment of all amounts owing under this Nota; B. Collacl all amounts owiDg from any Bomlwer or GuarantOr; C. Fil. suil and oblain judgment; D. Tak. possession of any Collalaral; or E. s.n, I...., or othorwis. dispose of, any Collateral at pubUc or private sala, with or withoUl advartisamanl. 6. LENDER'S GENERAL POWERS: Without notice and without Borrower's consan~ Leader may: A. Bid on or buy tho Collateral at its sal. or tho sal. of anot:hor UOIIholder, at any price jl cblloses; B. Incur .xpanses to collect amounts duo under this NOlIO, enforce the IelDlS of this NOte or any otbar Loan Docurnant, and pros..... or dispose of the Collateral. Among otbar things, the expanses may include payments for proparty laxes, prior Ii.ns. insunnce, appraisals. .nvirolUllOlltal...madiation costs. and reasonabl. atlOmcy's f..s and costs. If Lander incun such .xpanses, it may d.mand immediate ...payment from Borrower or add tho .xpans.s to the principal balanc:.; C. Releas. anyone obligallOd to pay this Note; D. Compromis., ...1...., renew, .XIend or substilUlIO any of the Collateral; and E. Tak. any action nacessa:y to prollOct the Collatara! or coll.ct amoUDts owing on this NollO. SBA Form , 47 (08103I02) Version 4.1 Pago3lll Bankers Systsms, Inc., St Cloud, MN 7. WHEN FEDERAL LAW APPLIES: When SBA is the holder, this NollO will be inlarprellOd and enforced under fedora1law, including SBA regulations. Lander or SBA may use stallO or local procedures for filing papalS, recording documents, gi viDg notice, foreclosing lions. and other purposes. By using such procedures, SBA docs not waive any fadora1 immunity from stallO or local control, penalty. Wt. or UabiUty. As to this NOlO, Bomlwer may not claim or asset! against SBA any local or swe law to deny any obUgation. defeat any claim of SBA, or preampt federal law. 8. SUCCESSORS AND ASSIGNS: Under this NOllO, Borrower and Operating Company include tho SUCCesSOll of each, and Lander includes its SuccasSOlS and assigns. 9. GENERAL PROVISIONS: A. AU individuals and entities signing this NOlO .... jointly and severally liable. B. Bomlwer waives all suretyship defenses. C. Bomlwer must sign all documents naccssary at any time to comply with the Loan DocUlDCllts and to enable Lander to acquire, perfect, or maintain Leader's lions on Collateral. D. Lendor may e.ereise any of its rights separately or tOgether, as many times and in any order jl chooses. Lander may dalay or forgo enforcing any of its rights witboUl givillg up any of them. E. Borrower may nol usa an oral swemant of Lander or SBA to contradict or a1l1Or the written lOrms of Ibis NollO. F. If any pall of this NollO is unenforceable, all other parts remaiD in effacL G. To tho extent allowed by law, Borrower waives all demands and notices ill connoction with this NollO. including prosentmen~ demand. protas~ IIIc! notice of dishonor. Bomlwer also waives any defenses based upon any claim that Londer did not obtain any guaranllOa; did not obtain, perfect. or maintain a lion upon Collateral; impaired Collatara1; or did not obtain tho fair market ValllO of CollallOra1 at a sale. SBA Form 147 (06103I02) Version ..1 PIIIl"418 Bankers Sysl8ms, Inc., St Cloud, MN 10. STATE-SPECIFIC PROVISIONS: WARRANT OF AUTI-tORITY TO CONFESS JUDGEMENT. Upon defaul~ n addition ID all olher remedies and rights available ID you, by signing below I irrevocably authorize Ihe prolhonotary, cieri<, or any attomey ID appear in any oourt of rocord 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 Ihis Note, plus collection costs and reasonable attomeys' fees up to 15 p&rcenl of Ihe Judgemen~ The exercise of Ihe power ID confess judgment will nol exhaust Ihis warrant of authority to understand Ihat my property may be seized without prior notice to satisfy Ihe debt owed. I knowingly, intentionally, and voluntarily waive any and an constitutional rights I have to pre-deprivation notk=. and hearing under federal and state laws and fully understand the consequences of this waiver. .,.. S6A Farm 147 (06103I02) VOllian 4. 1 Pogo SIB Bankers Systems, Inc., St. Cloud, MN II. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each ilIdividual or entity becomos obligaled under this NOlO as Bomlwer. Heallhcore, LLc Aprl 30, 2003 April 30, 2003 SBA Farm 147 (0&'0:W2) Version 4.1 Page 6IB Bankers Systsms, Inc" St Cloud, MN f yh;J,; J C TUCKERIARE~~~fn~~ F. Stephenson Matthes smatlhes@tuckerlaw.cam September 16, 2004 VIA CERTIFIED MAil, RETURN RECEIPT REQUESTED NO. 7002 2410 000123672348 AND FIRST CLASS MAil Jenine J. Kerr Krista K. Baer HealthCore, LLC 47 West Pomfret Street Carlisle, PA 17013 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'1 in the principal amount of $500,000, which was executed and delivered to Legacy by HealthCDre, LLC ("Borrower"). Reference is further made to that certain Commercial Security Agreement dated April 30, 2003 (the "Security Agreemenn. 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 IDan with Lender; (c) does not preserve or account to Lender's satisfactiDn fDr, 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 669 Harrisburg, PA 17108 www.tucl<erlaw.com - - p.BOO.257.4121 p.717.234.412' r.71"32:Sa02 TUCKERIAREt-{~~f.,~~ Jenine 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 obligDr, any pledgor, any guarantor and/or at law or in equity. Thank you for your immediate attention to this matter. Very truly yours, TrrER ARENS BERG, P.C. I \ , . \. . F~Phenson Matthes FSMldth cc: Jenine J. Kerr Ronald W.'Baer Krista K. Baer W&C Realty & Holdings, L.P. HealthCore of Maryland, LLC HealthCore of Ohio, LLC 71652.1 E )C A: ),,'-1 b Exhibit 0 TUCKER\ARENA~~f~ F. Stephenson Matthes smallhes@lucke~aw.com September 22. 2004 VIA FACSIMILE, CERTIFIED MAIL, RETURN RECEIPT REQUESTED NO. 7002 2410 0001 23672829 AND FIRST CLASS MAIL Jenine J. Kerr 47 West Pomfret Street Carlisle, PA 17013 RE: Guaranty of 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 To Whom It May Concern: 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. Reference is further made to that certain Unconditional Guaranty dated April 30, 2003 (the "Guarantee"), which was executed and delivered to Legacy by Jenine J. Kerr. (the "Guarantor"). 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 obligatiDns to Legacy, as well as for failing to make tax payments when due. By letter dated September 16, 2004, Legacy declared the Borrower to be in Default under the Note and made demand for immediate payment in full of all amounts due and owing under the Note. Pursuant to Section 1 of the Guarantee, Guarantor agreed to pay all amounts due under the Note when Lender makes written demand upon the Guarantor for payment. Tucker Arensberg. P.C. 111 North Front Street P.O. Box 889 Harrisburg, PA 17106 www.tuckerlaw.oom p.800.257.4121 p.717.234.4121 f. 717.232.6802 TUCKER\ARENE~f~ Jenine J. Kerr September 22. 2004 Page 2 Pursuant to the direction of Legacy Bank, we hereby notify you that Legacy Bank hereby makes demand for payment of the entire balance under the Note pursuant to the Guarantee and demands immediate payment of all principal. interest. and feeS. currently $444.454.49, together with accruing interest. attomeys' 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. 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, TUCKER ARENSBERG, P.C. /-Ii A ~ J,tt- "'1-: ~cr--1/1(JM1"{ , F. Stephenson Matthes FSM/dth cc: Krista K. Baer Ronald W. Baer HealtCore of Maryland, LLC W&C Realty & Holdings, L.P. HealthCore of Ohio. LLC HealthCore, LLC BANK..FIN"2328D8-10161B8-12DS45 r) '" , c> '" :"1 ,. ..f.. ,- - , .. , "'- , .. .' , '; . .J '--' < TUCKER ARENSBERG. P .C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. 0 I.{ . qr;o'- v. JENINE J. KERR 47 West pomfret Street Carlisle. PA 17013, Defendant. AfFIDAVIT COMMONWEALTH OF PENNSYLVANIA SS. CUMBERLAND COUNTY 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 c..-ion Of Judgment am trua and ",no" \0'" .." of .~ .,Io.....a aad -, aad ..at ... Gua..- (.. _ ;n ... eomplalat) wh;oh ;s _ad .. aa E""'" fo the Complaint In Confession Of Judgment is a true and correct copy of the original executed by the Defendant. o and subscribed before me day of September. 2004. 72038.1 NclnI Sell OIn.-Iloln, NoIIry PIMa 0Iy 01 HIntIIug, 00uI>I*l CcuIIV My Q...,w.., EJopne Apr.lI, 'llX11 .......p... .t-- & . - -a.... - 2- j ^ lew Officer G c, ;...:(~. ::.~.; . C!",: ('~..: ..<~ ....., r..;...) ...'" ~- (" ,., -~) N (.,) () -" :.~ .i._. f'"!;:, ""!"'1;,", .'"J ~-.' :: ~ ~ , :::":-. ., ~;: " I'" )..: (.;: TUCKER ARENSBERG. P.C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg. PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 COURT OF COMMON PLEAS CUMBERLAND COUNTY THE LEGACY BANK. 2600 Commerce Drive Harrisburg, PA 17110. Plaintiff. v. CIVIL DIVISION NO. at.{ . LfSO'J... JENINE J. KERR 47 West Pomfret Street Carlisle. PA 17013. Defendant. 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. } Don Signor. oan view Officer The Legacy Bank .. S orn:J;;J subscribed before e hi' day of September. 2004. -... SllIl 0...--. ~NIIc CIIv 01 Hontoblrll. !lIqlI*l Cclun1r My Cu,.,....., ElqlI....ll. '1t'J11 Mi!mbIr. ~_~... . ~ .a........ .- '.. -'"~:.~-:' ~.... ~. ~ , -...... ~. ~. :. . . -:;: () ,.. r" c...l ~.. _n, - - .::- <.I; ...., r..7'; ...;.-. r' "1; ,- (: .'-' "'.h. I ,'~ . . , :~?[~; " I : \~"; '- --... . . --' TUCKER ARENSBERG. P.C. By: F. Stephenson Matthes PA 1.0. 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. JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. OL{,~? 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 belief the income of the Defend,", . ;" ....... of $10,000,00 ..'yea'. ~ ~ / ' Don Signor, Loatl e Officer The Legacy Bank to and Subscribed before me ay of September. 2004. __Sell c.n.- _. NaIlIIYPIdc CllyOl.....-u, ~ CaI1Ir My c............ ElqlRI ~.ll, 7l11T MIrnbII'.~-...,....-- ~ .or.... / /:'-.;-.. ~ () ("'- .'-; .~;.:'I 5:1 'u ~.) c.,,) ..~- .;". ~.~.: , ""'. ::;..~ .-:- (},: ", ~;:~~ -' -;: :.-.' fl;i,~: -r;.."-;-: , .-., ...! .. l _ ~ 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. JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. aLl''''~ AFFIDAVIT OF NONAPPLICABILITY OF GOODS AND SERVICES INSTALLMENT SALES ACT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY : SS Don Si9nor, being duly sworn accordin9 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 !!!!l.; and that the foregoin9 facts are true and corre to the best of his knowledge, information and belief. . 7 Sw 0 and Subscribed before me i day of Septemb;.Q ~~04. I . IVlCl-u. \ iJf-1XU- otary Pul)lic ~ _So.- o.n.-_.~_ CIIy Of HIntoIx.Ig,llIuphi1 CalnIr My Q...,......., EllpRo Apr. 8..., .......~. /.11IIII a -a..... Don Si9nor, Loa lcer The Legacy Bank (") ,.....') .~) c-:. c- .:.::, "' , ....- " '. ':..~ :.::f L .. l"j '" " I I ,.. - 1'., - ! " . . (.,) '-" .. .. ~, C , ~~ I _. r -! :" :::.... . (.~. -.. ; I ::.; -.' r.':. :-:-:j .- .-::-: -:: C" TUCKER ARENS BERG, 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 COURT OF COMMON PLEAS CUMBERLAND COUNTY THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, v. CIVIL DIVISION NO. tJl..(. V~:l.. JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. AVERMENT OF DEFAULT COMMONWEALTH OF PENNSYLVANIA SS. CUMBERLAND COUNTY 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 Guarantee (as defined in the Complaint), true and correct copies of which are attached to the Complaint; that the Defendant is in default under the Guarantee; and .-, that there is $445,615.25 due and owing under the Guarantee as of July , 2004. ~ ...' Don Signor, Loan view lcer The Legacy Bank o and subscribed before me day of September. 004. ( _Sell o.n.to_, ~NlIc ay or H8nialug, IJIuIll*I CcunIy MyQ.".,_EJCpinlll/lfJl.i.'JlX1T ........~_-#..... .a..... " ....., -J , -, C:.. r- C.-:.I . ~- -" n V> :.-:-J f":; i","if: ~ -;,., , r-., " r-'i .. W ;::".1 I '.)~j - '. :-'~ ,..~: -- , .- ..... ,. , . -' .r.- , 0" -,: TUCKER ARENSBERG. P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. 0'/ -(.(10"- JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. AFFIDAVIT OF COMMERCIAL TRANSACTION COMMONWEALTH OF PENNSYLVANIA : SS CUMBERLAND COUNTY 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. in rmation and belief. A Officer d subscribed before day of September. 2004. _Sell 0...-_. ~NllIc ay Of t1IntIIulI.llII.lIlI*I eanr Mt Q...1..a.A..1 &pM ..1. 71111 ..........F\,... ,..... .a___ .- r. ,. ..:./, ~ .: -' -. f) --.... ::-'.~ ~- .;:-- ......., .... .~ , , "'" o ~ll --., -,- ;..-:;). ... ..~ ;'"j ." ,....., c.., -:-"~-r .. --. ..,:'.,- .-;~~'_\~I ri TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. oi{. <'I'.fcXl JENINE J. KERR 47 West Pomfret Street Carlisle, PA 17013, Defendant. ACT 105 OF 2000 NOTICE A JUDGMENT HAS BEEN ENTERED AGAINST YOU BY CONFESSION OF JUDGMENT. PURSUANT TO 42 PA. C.S.A. 52737.1, 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: Pennsvlvania Rule Df Civil Procedure 2959 - Strikina Off Judament. (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 retum 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 tD 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 shDwn 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 Dr attachment shall be preserved while the proceedings to strike off or open the judgment is pending. Dated and Served: September~, 2004 By Certified Mail Return Receipt Requested . .~.S ens 1"'-''' PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 72061.1 Attorneys for Plaintiff, The Legacy Bank - 2- - t") '" A~ ~l P I:".;~ --:- , .",' f;? =-;! -" ,- I ,:",. ~ ~ ", .. '"n " C,.j C ..-- <J .-. ..... , - , ~:~ :-,-1 .. , , - -.;; .... C". '. TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. 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. CIVIL DIVISION NO. ()L(.~;l JENINE J. KERR 47 West Pomfret Street Carlisle. PA 17013. 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 conceming this Notice. please call, F. Stephenson Matthes, Esquire, at (717) 234-4121. 72062.1 ~~ PROl NOTA (0~~:: z; ~ f~-~ (-.....\ =<\ ~- ~\O<"\ .....j -.. ~ -.() ~ }' ---.. ;:S) u-... Dl , '. "'-". ...... . p ~ ~~ !2 .7.") :;:J ., ,.,-..... . . ~.. ~rr' c..) ~: .~ ~:' . .; ~-l ;'.~ . . '.' ~ ~~-: : -. -. ij .r:- ...... ,', ... Uniform Tax Parcel No. 08-11-0294-136 COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SS ~(f{JW-Lf90~ PARTIAL RELEASE OF JUDGMENTS LIENS KNOW ALL MEN BY THESE PRESENTS that THE LEGACY BANK (the "Bank" or "Releasor"), hereby declares as follows: BACKGROUND A. On or about September 23, 2004, Judgment was entered in the amount of $445,615.15 in favor of the Bank and against Jenine J. Kerr a/kla Jenine Jeska Kerr ("Ms. Kerr" or the "Releasee"), in the Court of Common Pleas of Cumberland County, and docketed to civil action #2004-4802. B. The above-referenced Judgment IS hereinafter collectively referred to as the "Judgment". C. Jenine J. Kerr a/k/a Jenine Jeska Kerr, is the owner of that certain lot located at and known as 21 Dannah Drive, Dickinson Township, Cumberland County, Pennsylvania, also known as tax parcel identification number 08-11-0294-136 and as more particularly described in Exhibit "A" attached hereto (collectively the "Property"). D. The Judgment presently operates as a lien on the Property of Jenine J. Kerr a/k/a Jenine Jeska Kerr. E. The Bank is willing to release the Property from the lien of the Judgment as stated herein. RELEASE NOW THEREFORE, at the instance and request of Jenine J. Kerr a/k/a Jenine Jeska Kerr and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, The Legacy Bank, for itself, its successors and assigns, does hereby covenant, promise, and agree with Jenine J. Kerr a/k/a Jenine Jeska Kerr and her heirs, executors, administrators, successors and assigns, that it will not attach or levy upon, sell or dispose of, claim or demand the said Property, in or as a result of the Judgments, or any of them, or assert or claim any estate in, to or under said Property; and further releases the liens of the Judgments only on the said Property, in order that Jenine J. Kerr a/k/a Jenine Jeska Kerr and her respective heirs, executors, administrators, successors, assigns, and grantees shall and hereafter may hold, own and possess the said Property free and clear from the Judgments; provided, however, that nothing herein contained shall invalidate the lien or security of the Judgments upon any other real estate of Jenine J. Kerr a/k/a Jenine Jeska Kerr, individually or jointly, in Cumberland County, Pennsylvania or elsewhere. IN' WITNESS WHEREOF, the Bank has executed this Partial Release of Judgments Liens this /Pth day of ~-te.Mt>€(, 2006. WITNESS: . ~5~ G"Bf fcP The Legacy Bank _ / J~-y / By: ~1 Its: o ,.ert W rEng 'J '- \ I (C- f'fY-rr. ~.., ~~ COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF L,/ com'\nj On this, (p~ day ofS-.ep-te.rr\be( , 2006, before me, a Notary Public, the undersigned officer, personally appeared R~be.(1- W. E03e \ who acknowledged himself/herself to be the Y ',ce ~ ( es' ,c\ e...f\ + of the Legacy Bank, a r; nQ(\ (I Q \ banking association and that he/she as such \J 'I C e.. p (\:S I c\ ef\-r being authorized to do so, execute and acknowledged the foregoing instrument for the purpose therein contained by signing the name of The Legacy Bank by himself/herself as V', ce.. f (eS'ldex"\+ IN WITNESS WHEREOF, I hereunto set my hand and official seal. iuLuL CL. J Jl~ Notary Public After recording return to: CUNNINGHAM & CHERNICOFF, P.C. Bruce J. Warshawsky, Esquire 2320 North Second Street Harrisburg, Pennsylvania 17110 COMMONWEALTH OF PENNSYLVANIA Notarial Seal Debra A. Sullivan, Notary Public City Of W~1iamsport, Lycoming County My Commission Expires ~. 25, 2010 Member. Pennsylvania Association of Notaries EXHIBIT "A" - LEGAL DESCRIPTION , . ALL THAT CERTAIN lot of land situated in Dickinson Township, Cumberland County, Pennsylvania, bounded and described in accordance with Subdivision Plan for Heritage Valley prepared by Statler-Brehm Associates, Inc., dated October 13, 1993, consisting of 10 pages, a copy of which was recorded in the hereinafter named Recorder's Office on February 10, 1995, in Plan Book 69, Page 79, etc., which Subdivision Plan for Heritage Valley is incorporated herein by reference, as follows: BEGINNING at a point on the northern line of 50 feet wide Dannah Drive at the dividing line between Lots Nos. 43 and 44; thence along said northern line of 50 feet wide Dannah Drive the following two courses and distances; (1) by a curve to the left having a radius of 250.00 feet an arc distance of 56.04 feet to a point; and (2) North 85 degrees 02 minutes 30 seconds West a distance of 51.14 feet to a point at the dividing line between Lots Nos. 44 and 45; thence along said dividing line between said Lots Nos. 44 and 45, North 04 degrees 57 minutes 30 seconds East a distance of 286.15 feet to a point on the southern dedicated right of way line of Pennsylvania route No. 174 known as West Old York Road, which southern dedicated right of way line is 30 feet south of the original centerline of said West Old York Road; thence along said southern dedicated right of way line, by a curve to the right having a radius of 3000.00 feet an arc distance of 320.50 feet to a point at the dividing line between said Lots Nos. 43 and 44; thence along said dividing line between said Lots Nos. 43 and 44, South 37 degrees 30 minutes 28 seconds West a distance of 342.52 feet to a point on the northern line of 50 feet wide Dannah Drive at the place of beginning. THE ABOVE described lot of land is all of Lot No. 44 as shown on said Subdivision Plan for Heritage Valley recorded as aforesaid, and contains an area of 67,036.84 square feet, or 1.54 acres, more or less, and has the mailing address of 21 Dannah Drive, Carlisle, Pennsylvania 17013. BEING the same premises which Peter Them Builders, Inc., a corporation, by Deed dated April 30, 2002, and recorded in the Cumberland County Recorder of Deeds Office on May 1, 2002, in Deed Book 251, Page 2553 conveyed unto Jenine Jeska Kerr. ~ ~ ~ ~ " ?\ ~ -....... {S' ~ ~ .t:.. W 6' "" ~ vI "r- ~ ~ ~ ~, -- t ~ ~ ~ ~ \,J'\, I' ... \.. l' f\ \1'. '?'- " C" t-..) = = 0" o 11 :I! mil ~o F;; :::'0 () (1._ ~:::::! _.,~) ,;:.L~ -ri ,-._J--- ~.?..o ''''5m ~::::"l J> .".0 .< (/) P1 -0 i"" -.l ~ ::s:: 6 L.) co