Loading...
HomeMy WebLinkAbout12-2235WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: Peter E. Meltzer Identification No.: 39828 By: James H. Curry, III Identification No.: 306954 The Fulton Bank Building 200 North Third Street, Suite 9A Harrisburg, PA 17101 (717) 237-6940 METRO BANK f/k/a COMMERCE BANK/ HARRISBURG, N.A. 3801 Paxton Street Harrisburg, PA 17111 V. JAMES K. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 PATRICIA M. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 Fri - - xi 7 5 .. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. ?a - aa3s ?;??t NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with this court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment maybe entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH THE INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. O 4103.'75 P4 A 771' e? a ?3?y CUMBERLAND COUNTY BAR ASSOCIATION CUMBERLAND LAW JOURNAL 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 TELEPHONE: 717-249-3166 FAX: 717-249-2663 TOLL FREE (IN PA): 1-800-990-9108 AVISO PARA DEFENDER USTED HA SIDO DEMANDADO/A EN LA CORTE. Si usted desea defender conta la demanda puestas en las siguientes paginas, usted tienen que tomar accion dentro veinte (20) dias despues que esta Demanda y Aviso es servido, con entrando por escrito una aparencia personalmente o por un abogado y archivando por escrito con la Corte sus defensas o objeciones a las demandas puestas en esta contra usted. Usted es advertido que si falla de hacerlo el caso puede proceder sin usted y un jazgamiento puede ser entrado contra usted por la Corte sin mas aviso por cualquier dinero reclamado en la Demanda o por cualquier otro reclamo o alivio solicitado por Demandante. Usted puede perder dinero o propiedad o otros derechos importante para usted. USTED DEBE LLEVAR ESTE PAPEL A SU ABOGADO ENSEGUIDA. SI USTED NO TIENE UN ABOGADO, VAYA O LLAME POR TELEFONO LA OFICINA FUADA AQUI ABAJO. ESTA OFICINA PUEDE PROVEERE CON INFORMACION DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGARLE A UN ABOGADO, ESTA OFICINA PUEDE PROVEERE INFORMACION ACERCA AGENCIAS QUE PUEDAN OFRECER SERVICIOS LEGAL A PERSONAS ELIGIBLE AQ UN HONORARIO REDUCIDO O GRATIS. CUMBERLAND COUNTY BAR ASSOCIATION CUMBERLAND LAW JOURNAL 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 TELEPHONE: 717-249-3166 FAX: 717-249-2663 TOLL FREE (IN PA): 1-800-990-9108 WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: Peter E. Meltzer Identification No.: 39828 By: James H. Curry III Identification No.: 306954 Fulton Bank Building 200 North Third Street, Suite 9A Harrisburg, PA 17101 (717) 237-6940 Attorneys for Plaintiff METRO BANK f/k/a COMMERCE BANK/ HARRISBURG, N.A. 3801 Paxton Street Harrisburg, PA 17111 V. JAMES K. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 PATRICIA M. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. COMPLAINT IN MORTGAGE FORECLOSURE AND NOW, comes the plaintiff, Metro Bank f/k/a Commerce Bank/Harrisburg, N.A., by and through its attorneys, Weber Gallagher Simpson Stapleton Fires & Newby, LLP, and files this Complaint in Mortgage Foreclosure pursuant to the Pennsylvania Rules of Civil Procedure and avers the following: PARTIES 1. Plaintiff is a banking institution with an address as listed above. Plaintiff was formerly operating as Commerce Bank/Harrisburg, N.A. and is currently known as Metro Bank. 2. Defendants are the individuals named above residing at the addresses listed above. VENUE Venue is proper in Cumberland County under Pa. R. Civ.P. 1142 in that said County is the county where the cause of action arose and the county where the transaction or occurrence took place out of which the cause of action arose and the county where the real property which secures the loan made by Plaintiff to Defendant is located. FACTS 4. On or about February 8, 2002, Plaintiff loaned Defendants the principal sum of $50,000.00 with interest in accordance with the terms and conditions of a certain Home Equity Line Credit Agreement (the "Agreement'). A true and correct copy of the Agreement is attached hereto as Exhibit 1. The Agreement is secured by a Mortgage executed by Defendants in favor of Plaintiff (the "Mortgage") granting Plaintiff a mortgage lien on real estate located at 1103 Dry Powder Circle, Mechanicsburg, PA 17050 (the "Property"); Parcel ID No.: 10-18-1325- 012. The Mortgage was recorded on April 16, 2002, with the Cumberland County Recorder of Deeds Book 1755, Page 2929. A true and correct copy of the Mortgage is attached hereto as Exhibit 2. 6. Upon information and belief, the Property consists of a residential dwelling. 7. Defendants are the owners of the Property. 8. Plaintiff is the holder of the Agreement and Mortgage and there have been no assignments of the Agreement and Mortgage. 9. The loan matured on February 8, 2007, but was extended to January 8, 2012. 10. As a result of the failure to pay off the loan at maturity, the entire unpaid balance of principal indebtedness, together with all accrued and unpaid interest, and all of Plaintiffs costs as authorized in the Agreement are immediately due and payable, comprised as follows: Principal Balance Due: $ 11,776.08 Interest Due through March 20, 2012: $ 118.13 Late Charges: $ 568.80 Attorney's Fees: $ 1,250.00 Costs of Suit and Title Search: $ 500.00 Total Sum Due $ 14,213.01 Interest accrues on the Agreement from and after March 21, 2012, at the per diem rate of $1.29. 11. The attorneys' fees set forth above are in conformity with the mortgage documents and/or Pennsylvania law and will be collected in the event of a third-party purchaser at Sheriff's Sale. If the mortgage is reinstated prior to sale, reasonable attorneys' fees will be charged based on work actually performed. 12. Act 6, the Act of January 30, 1974, P.L. 13, No. 6, 41 P.S. §403 et seq., and the Homeowner's Emergency Assistance Act, Act of December 23, 1983, P.L. 395, No. 91, 35 P. S. §1680.401(c) et seg, have been complied with or are not applicable. WHEREFORE, Plaintiff demands in rem judgment for foreclosure and sale of the property against Defendants in the amounts and with the per diem interest set forth in paragraph 10 above, together with interest at the rate set forth in the Agreement from the date of judgment, and other damages and relief as the court may deem just. Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP Dated: April 6, 2012 EXHIBIT 1 " HOME EQUITY 'NE CREDIT AGREEMENT PDISCLOSURE Ltd .- Ear- 00--low AameaM [01111111mr 01i s References In the shaded area are for our =In nd do not limit the applicability of this document to any particular loan or hem. Any item above n I- has been omitted due to text Ian limitations. Borrower: James K. Conway (SSN: 179"48-6178) Lender: COMMERCE BANKIHARRISBURG N.A. Patricia M. Conway (SSN: 197-52-0797) HAMPDEN CENTER 1103 Dry Powder Circle 4850 CARLISLE PIKE Mechanicsburg, PA 17050 MECHANICSBURG, PA 17055 (717) 975-7546 CREDIT LIMIT: $50,000.00 DATE OF AGREEMENT: February 8, 200; Introduction. This HOME EQUITY LINE CREDIT AGREEMENT AND DISCLOSURE ("Agreement) govems your line of credit (the "Credit Line" or the "Credit Line Account") issued through COMMERCE BANK/HARRISBURG N.A.. In this Agreement, the words "Borrower," "you," "your," and 'Applicant mean each and every person who signs this Agreement, including all Borrowers named above. The words "we," "us," "our," and 'Lender" mean COMMERCE BANK/HARRISBURG N.A.. You agree to the following terms and conditions: Promise to Pay. You promise to pay COMMERCE BANK/HARRiSBURG N.A., or order, the total of all credit advances and FINANCE CHARGES, together with all costs and expenses for which you are responsible under this Agreement or under the'Mortgage" which secures your Credit Line. You will pay your Credit Line according to the payment terms not forth below. N then is more than one Borrower, such Is jointly and severally liable on this Agreement. This tnsana we can require any Borrower to pay all amounts due under this Ag.sm. Including credit advances made to any Borrower. Each Borrower authorizes any other Borrower, on his or her signature alone, to cancel the Credit Linn, to request and receive credit advances, and to do ail other things necessary to cwry out the terms of this Agreement. We can release any Borrower from responsibility under this Agreement, and the others wiH remain responsible. Term. The tern of your Credit Lime will begin as of the date of this Agreement ('Opening Date") and will continue until February 8, 2007 ("Maturity Date'). All Indebtedness under this Agreement, if not already paid pursuant to the payment provisions below, will be due and payable upon maturity. The draw period of your Credit Line will begin on a date, after the Opening Date, when the Agreement is accepted by us in the Commonwealth of Pennsylvania, following the expiration of the right to cancel, the perWtion of the Mortgage, the receipt of all required certificates of noncanoeilation, and the mewing of all of our other conditiom and will continue as follows: Five years following the expiration of the right to cancel. You may obtain credit advances during this period ("Draw Period"). After the Draw Period ands, the repayment period will begin and you will no longer be able to obtain credit advances. The length of the repayment period is as follows: Until the Credit Agreement Is terminated by the Borrower or the Lender. You agree that we may renew or extend the period during which you may obtain credit advances or make payments. You further agree that we may renew or extend your Credit Line Account. Minimum Payment. Your "Regular Payment' will be based on a percentage of your outstanding balance plus all accrued FINANCE CHARGES as shown below or 550.00, whichever is greater. Your payments will be due monthly. Ranas of Salancss Number of Pavnrents Regular Payment Calculation All Balances 180 0.555 % of your outstanding balance plus all accrued FINANCE CHARGES Your 'Minhnum Payment" will be the Regular Payment, plus any amount past due and all other charges. An Increase in the ANNUAL PERCENTAGE RATE may Increase the amount of your Regular Payment. In any event, If your Credit Line balance fails below $50.00, you agree to pay your balance in full. You agree to pay not less than the Minimum Payment on or before the due date indicated on your periodic billing statement. How Your Payments Are Applied. Unless otherwise agreed or required by applicable law, payments and other credits will be applied first to Finance Charges; then to any voluntary credit life and disability Insurance premiums: then to unpaid principal; then to late charges and other charges; and then to any amounts that exceed your Credit Limit. Receipt of Payments. All payments must be made by a check, automatic account debit, electronic funds transfer, money order, or other instrument in U.S. dollars and must be received by us at the remittance address shown on your periodic billing statement. Payments received at that address prior to 3:00 P. M. EASTERN on any business day will be credited to your Credit Line as of the date received. If we receive payments at other locations, such payments will be credited promptly to your Credit Line, but crediting may be delayed for up to five (5) days after receipt. Credit UmiL This Agreement covers a revolving line of credit for the principal amount of Fifty Thousand & 001100 Dollars ($50,000.00), which will be your "Credit Limit" under this Agreement During the Draw Period we will honor your request for credit advancers subject to the sectbn below on Lender's Ruts. You may borrow against the Credit Line, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit Limit Your Credlt Limit Is the maximum amount you may have outstanding at any one time. You agree not to attempt, request, or obtain a credit advance that will make your Credit Line Account balance exceed your Credit Limit. Your Credit Limit will not be increased should you overdraw your Credit Une Account. if you exceed your Credit Limit, you agree to repay Immediately the amount by which your Credit Line Account exceeds your Credit Limit, even if we have not yet billed you. Any credit advances in excess of your Credit Umit will not be secured by the Mortgage covering your principal dwelling. Charges to your Credit Line. We may charge your Credit Line to pay other fees and costs that you. are obligated to pay under this Agreement, the Mortgage or any other document related to your Credit Line. In addition, we may charge your Credit Line for funds required for continuing insurance coverage as described in the paragraph titled "Insurance" below or as described in the Mortgage for this transaction. We may also, at our option, charge your Credit Una to pay any costs or expenses to protect or perfect our security interest in your principal dwelling. These costs or expenses Include, without limitation, payments to cure defaults under any existing liens on your principal dwelling. If you do not pay your property taxes, we may charge your Credit Line and pay the delinquent taxes. Any amount so charged to your Credit Une will be a credit advance and will decrease the funds available, if any, under the Credit tine. However, we have no obligation to provide any of the credit advances referred to in this paragraph. Credit Advances. After the Effective Disbursement Date of this Agreement, you may obtain credit advances under your Credit Line as follows. Credit Una Checks. Writing a preprinted "Equity Reserve Advance Check" that we will supply to you. If there is more than one person authorized to use this Credit Line Account, you agree not to give us conflicting Instructions, such as one of you telling us not to give advances to the other. Limitations on the Use of Checks. We reserve the right not to honor Equity Reserve Advance Checks in the following circumstances: HOME EQUITY LINE CREDIT AGREEMENT AND DISCLOSURE (Continued) Page 2 Credit Limit Violation. Your Credit Limit has been or would be exceeded by paying the Equity Reserve Advance Check. Post-dated Checks. Your Equity Reserve Advance Check is post-dated, if a post-dated Equity Reserve Advance Check Is paid and as a result any other check Is returned or not paid, we are not responsible. Stolen Checks. Your Equity Reserve Advance Checks have been reported lost or stolen. Unauthorlxed Signatures. Your Equity Reserve Advance Check is not signed by an "Authorized Signer" as defined below. Termination or Suspension. Your Credit Line has been terminated or suspended as provided In this Agreement or could be if we pald the Equity Reserve Advance Check. Transaction Violation. Your Equity Reserve Advance Check is less then the minimum amount required by this Agreement or you are in violation of any other transaction requirement or would be B we paid the Equity Reserve Advance Check. If we pay any Equity Reserve Advance Check under these conditions, you must repay us, subject to appllcaliis laws, for the amount of the Equity Reserve Advance Check. The Equity Reserve Advance Check Itself will be evidence of your debt to us together with this Agreement. Our liability, If any, for wrongful dishonor of a check is limited to your actual damages. Dichonor for any reason as provided in this Agreement is not wrongful dishonor. We may choose not to re rn Equity Reserve Advance Checks along with your periodic billing statements; however, your use of each Equity Reserve Advance Check will be reflected on your periodic statement as a credit advance. We do not "certify" Equity Reserve Advance Checks drawn on your Credit Una. Transaction Requirements. The following transaction limitations will apply to the use of your Credit Line: Credit Lana Equity Reserve Advance Check Limitations. There are no transaction limitations for the writing of Equity Reserve Advance Checks. Authorized Slgnom The words "Authorized Signer" on Equity Reserve Advance Checks as used In this Agreement mean and include each person who (a) signs the application for this Credit Line, (b) signs this Agreement, or (c) has executed a separate signature authorization card for the Credit Una Amount. Lost Equity Rssarve Advance Checks. If you lose your Equity Reserve Advance Checks or If someone Is using them without your permission, you agree to let us know Immediately. The fastest way to notify us is by calling us at (7t7) 975-7548. You also can notify us at our address shown at the beginning of this Agreement. Future Credit Line Services. Your application for this Credit Line also serves as a request to receive any new services (such as access devices) -which may be available at some future time as one of our services in connection with this Credit Line. You understand that this request Is voluntary and that you may refuse any of these new services at the time they are offered. You further understand that the terms and conditions of this Agreement will govern any transactions made pursuant to any of these new services. Colisteral. You acknowledge this Agreement is secured by 1103 Dry Powder Circle, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania. Property Insurance. You must obtain insurance on the Property securing this Agreement that is reasonably satisfactory to us. You may obtain property Insurance through any company of your choice that is reasonably satisfactory to us. You have the option of providing any insurance required under this Agreement through an existing policy or a policy Independently obtained and paid for by you, subject to our right, for reasonable cause before credit Is extended, to decline any insurance provided by you. Subject to applicable law, If you fall to obtain or maintain Insurance as required in the Mortgage, we may purchase Insurance to protect our own Interest, add the premium to your balance, pursue any other remedies available to us, or do any one or more of these things. Further Information concerning time property Insurance requirennsrtts is set forth in the Mortgage. Right of Setoff. To the extent permitted by applkeble law, we reserve a right of setoff In all your accounts with us (whether checking, savings, or some other account), Including without limitation, all accounts you may open In the future. However, this does riot Include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. You authorize us, to the extent permitted by applicable law, to charge or setoff all sums owing on this Agreement against any and all such accounts. Periodic Statements. N you have a balance owing on your Credit Line Account or have any account activity, we will send you a periodic statement. It will show, among other things, credit advances, FINANCE CHARGES, other charges, payments made, other credits, your "Previous Balance," and your "New Balance." Your statement also will Identify the Minimum Payment you must make for that billing period and the debt it Is due. When FINANCE CHARGES Begin to Accrue. Periodic FINANCE CHARGES fix credit advances under your Credit Une will begin to accrue on the date credit advances are posted to your Credit Line. There is no "free ride period' which would allow you to avoid a FINANCE CHARGE on your Credit Line credit advances. Method Used to (Determine the Balance on Which the FINANCE CHARGE Will Be Computed. A daffy FINANCE CHARGE will be imposed on all credit advances made render your Credit Line Imposed from the date of each credit advance based on the "average daily balance" method. To get the average daily balance, we take the beginning balance of your Credit Una Account each day, add any new advances and subtract any payments or credits and any unpaid FINANCE CHARGES. This gives us a dally balance. Then, we add up all the dally balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the "average dally balance." Method of Determining the Amount of FINANCE CHARGE. Any FINANCE CHARGE Is determined by applying the "Periodic Rate" to the balance described herein. Then we multiply by the number of days in the billing cycle. This is your FINANCE CHARGE calculated by applying a Periodic Rate. Periodic Rate and Corresponding ANNUAL PERCENTAGE RATE. We will determine the Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE as follows. We start with an independent Index which Is the Prime Rate as published in the Money Rate Section of the Wall Street Journal. If a range of rates is published, the highest will be used (the "Index"). We will use the most recent Index value available to us as of the date of any ANNUAL PERCENTAGE RATE adjustment. The Index is not necessarily the lowest rate charged by us on our loans. If the Index becomes unavailable during the term of this Credit Line Account, we may designate a substitute Index after notice to you. To determine the Periodic Rate that will apply to your account, we add a margin to the value of the Index, then divide the value by the number of days in a year (dally). To obtain the ANNUAL PERCENTAGE RATE we mulWy the Periodic Flats by the number of days In a year (dally). This result is the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE Includes only interest and no other costs. The Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Una will Increase or decrease as the Index increases or decreases from time to time. Adjustments to the Periodic Rate and the corresponding ANNUAL PERCENTAGE'RATE resulting from changes in the Index will take effect quarterly, on the first day of each billing cycle prior to the Interest Rate Change date. In no event will the corresponding ANNUAL PERCENTAGE RATE be more than the lesser of 18.000% or the maximum rate allowed by applicable law. Today the Indau Is 4.750% per annum, and therefore the initial Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit I ine are as stated below: HOME EQUi' LINE CREDIT AGREEMENT AN' 71SCLOSURE (Continued) Page 3 Current Rates for the First Payment Stream Range of Balance Margin Added ANNUAL PERCENTAGE or Conditions to ladex RATE All Balances 0.750% 5.500 % Daily Periodic ,fie 0.01507% Notwithstanding any other pravWon of this Agreement, we will not charge Interest on any undisbursed loan procssds, except as may be permitted during any Right of Rescission period. Forgo Rate Increases. If we forgo an ANNUAL PERCENTAGE RATE increase, at the time of a later adjustment we may return b the full Index value plus margin. Condttions Under Which Other Charges May Be Imposed. You agree to pay all the other fees and charges related to your Credit Una as set forth below: Returned Items. You may be charged $10.00 If you pay your Credit Line obligations with a check, draft, or other Item that Is dishonored for any reason, unless applicable law requires a lower charge or prohibits any charge. Fee to Strop Payment Your Credit Line Account may be charged $12.00 when you request a stop payment on your account. Late Charge. Your payment will be late if it Is not received by us within 16 days after the 'Payment Due Date" shown on your periodic statement, if your payment is late we may charge you 5.000% of the payment. Lion Reiawe Few. In addition to all other charges, you agree, to the extent not prohibited by law, to pay all governmental fees for release of our security Interests in collateral securing your Credft Llne. You will pay these fees at the time the lien or Ilene are released. The estimated amount of these future Ilen release fees Is $17.50. Security interest Charges. You agree to pay all security interest charges related to your Credit Una as set forth below: Mortgage Recording Fee $25.50 Proporty/Title Search $40.00 Flood Can $17.00 Courier $9.75 Total $92.25 Lender's Rights. Under this Agreement, we have the following rights: Termination and AcostersUon. We can terminate your Credit Una Account and require you to pay us the entire outstanding balance in one payment, and charge you certain fees, If any of the following happen: (1) You commit fraud or make a material misrepresentation at any time in connection with this Credit Agreement. This can include, for example, a fake statement about your Income, asks, 1, or any otter aspects of your financial condition. (2) You do not meet the repayment terms of this Credit Agreement. (3) Your action or Inaction adversely affects the collateral for the plan or our rights in the collateral. This can Include, for example, failure to maintain required flwurance, warts or destructive use of the dwelling, Idure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dw4ktg, creation of a senior Ilan on the dwelling without our pemMssion, foreclosure by the holder of another llen, or the use of funds or the dwelling for prohibited purposes. Suspension or Reduction. In addition to any other rights we may have, we can suspend additional extensions of credit or reduce your Credit Limit during any period in which any of the following are in effect: (1) The value of your property declines significantly below the property's appraised value for purposes of this Credit tine Account This Includes, for example, a decline such that the Initial difference between the Credit Limit and the available equity is reduced by fifty percent and may include a smaller decline depending on the individual circumstances. (2) We reasanehly believe that you will be unable to fulfill your payment obligations under your Credit Line Account due to a material change in your financial circumstances. (3) You are In default under any material obligations of this Credit Line Account. We consider all of your obligations to be materiel. Categories of material obligations include the events described above under Termination and Acceleration, obligations to pay fees and charges, obligations and limitations on the receipt of credit advances, obligations concerning maintenance or use of the property or prooeads, obligations to pay and perform the terms of any other deed of trust, mortgage or lease of the property, obligations to notify us and to provide documents or Irnformation to us (such as updated financial information), obligations to comply with applicable laws (such as zoning restriottons), and obligations of any comaker. No default will occur until we mail or deliver a notice of defauft to you, so you can restore your right to credit advances. (4) We are precluded by government action from Imposing the ANNUAL PERCENTAGE RATE provided for under this Agreement. (5) The priority of our security Interest is adversely affected by government action to the extent that the value of the security interest is less than one hundred twenty percent (120%) of the Credit Limit. (6) We have been notified by governmental authority that continued advances may constitute an unsafe and unsound business practice. Change in Terms. We may make changes to the terms of this Agreement If you agree to the change in writing at that time, ft the change will unequivocally benefit you throughout the remainder of your Credit Una Account, or if the change Is insignificant (such as changes relating to our data processing systems). If the Index is no longer available, we will choose a new Index and margin. The now Index will have an historical movement substantially similar to the original index, and the new Index and margin will result in an ANNUAL PERCENTAGE RATE that is substantially similar to the rate in affect at the time the original index becomes unavailable. We may prohibit additional extensions of credit or reduce your Credit Limit during any period in which the maximum ANNUAL PERCENTAGE RATE under your Credit Una Account is reached. Collection Costs. We may hire or pay someone else to help collect this Agreement if you do not pay. You wig pay us that amount. This includes, subject to any limits under applicable law, our attorneys' fees and our legal expenses, whether or not them is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay or Injunction), and appeals. If not prohibited by applicable law, you also will pay any court costs, In addition to all other sums provided by law. Rate Increase, In addition to our other rights during termination and acceleration, we may increase the varfabie ANNUAL PERCENTAGE RATE under this Agreement to 2.000 percentage points over the then applicable ANNUAL PERCENTAGE RATE. The, ANNUAL PERCENTAGE RATE will not exceed the maximum rate permitted by applicable law. If we do not Increase the ANNUAL PERCENTAGE RATE upon termination or HOME EQUITY LINE CREDIT AGREEMENT AND DISCLOSURE (Continued) Page 4 acceleration of your Credit Line Account, lt will continue at the variable rate in effect as of the date of termination or acceleration of your Credit Line Account. Access Devices. If your Credit Line is suspended or terminated, you must Immediately return to us all Equity Reserve Advance Checks and any other access devices. Any use of Equity Reserve Advance Checks or other access devices following suspension or termination may be considered fraudulent. You will also remain liable for any further use of Equity Reserve Advance Checks or other Credit Une access devices not returned to us. Delay In Enforcement We may delay or waive the enforcement of any of our rights under this Agreement without lasing that right or any other right If we delay or waive any of our rights, we may enforce that right at any time in the future without advance notice. For example, not terminating your account for non-payment will not be a waiver of our right to terminate your account In the future if you have rot paid. Cancellation by you. If you cancel your right to credit advances under this Agreement, you mint notify us and return all Equity Reserve Advance Checks and any other access devices to us. Despite cancellation, your obligations under this Agreement will remain in full force and effect until you have paid us all amounts due under this Agreement. Prepayment. You may prepay all or any amount owing under this Credit Line at any time without penalty, except we will be entitled to waive all accrued FIANCE CHARGES, and other charges, If any. Payments In excess of your Minimum Payment will not relieve you of your obiJgation to continue to make your Minimum Payments. Instead, they will reduce the principal balance owed on the Creclit Una. You agree not to send us payments marked "paid In full 'without recourse", or similar language. If you send such a payment, we may aorept it without losing any of our rights under this Agreement, and you will remain obligated to pay any further amount owed to us. AN written communications ooroertng disputed amounts, including any check or other payment instrument that Indicates that the payment constitutes "payment in full' of the amount owed or that Is tendered with Drifter ca one or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: COMMERCE BANKIHARRISBURG N.A., HAMPDEN CENTER, 4890 CARLISLE PIKE, MECHANICSBURG, PA 17055. Notices. All notices will be sent to your address as shown in this Agreement Notices will be mailed to you at a different address If you give us written notice of a different address. You agree to advise us promptly H you change your malling address. Credit Information and Relates) Matters. You authorize us to release Information about you to third parties as described in our privacy policy and our Fair Credit Reporting Act notice, provided you did not opt out of the applicable policy, or as permitted by law. You agree that, upon our request, you will provide us with a current financial statement, a new credit application, or both, on forms provided by us. You also agree we may obtain credit reports on you at any tine, at our sole option and expense, for any reason, including but not limited to determining: whether there has been an adverse change in your financial condition. We may require a new appraisal of the Property which secures your Credit Une at any time, including an internal Inspection, at our sole option and expense. Transfer or Assignment Without prior notice or approval from you, we reserve the right to sell or transfer your Credit Line Account and our rights and obligations under this Agreement to another lender, entity, or person, and to assign our rights under the Mortgage. Your rights under this Agreement belong to You only and may not be transferred or assigned. Your obligations, however, are binding on your heirs and legal representatives. Upon any such sale or transfer, we will have no further obligation to provide you with credit advances or to perform any other obligatlon under this Agreement. Tax Conssquenaos. You understand that neither we, nor any of our employees or agents, make any representation or warranty whatsoever concerning the tax consequences of your establishing and using your Credit Line, including the deductibility of Interest, and that neither we nor our employees or agents will be liable in the event Interest on your Credit Line is not deductible. You should consult your own tax advisor for guidance on this subject. Notify Us of Inaoxxrate Information We Report To Consumer Reporting Agencies. Plane notify us If we report any Inaccurate Information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(les) should be sent to us at the following address: COMMERCE BANKJHARRIS13URG N.A. 100 SENATE AVENUE CAMP HILL, PA 17011 Governing Law. This Agreement will be governed by and Interpreted in socordance with federal law and the laws of the Commonwealth of Pennsylvania. This Agreement has been scospted by us In the Commonwealth of Pennsylvania. Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement. Interpretation. You agree that this Agreement, together with the Mortgage, Is the best evidence of your agreements with us. If we go to court for any reason, we can use a copy, filmed or electronic, of any periodic statement this Agreement, the Mortgage or any other document to prove what you owe us or that a trsneaction has taken place. The copy, microfilm, microfiche, or optical Image will have the same validity as the original. You agree that, except to the extent you Can show there Is a billing error, your most current periodic statement Is the best evidence of your obligation to pay. Severabilfty. If a court finds that any provision of this Agreement Is not valid or should not be enforced, that fact by Itself will not mean that the rest of this Agreement will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Agreement even If a provision of this Agreement may be found to be invalid or unenforceable. Acknowledgment. You understand and agree to the terms and conditions in this Agreement By signing this Agreement, you acknowledge that you have read this Agreement You also acknowledge receipt of a completed copy of this Agreement, Including the Fair Credit Billing Notice and the early home equity fine of credit application disclosure, in addition to the handbook entitled 'When Your Home Is On the Line: What You Should Know About Home Equity Lines of Credit,' given with the application. This Agreement Is dated February 8, 2002. THIS AGREEMENT 18 GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER- C?4-v? K. onwsy, i a y Seal JAM- csir^tlue Disbursement Date: Z-= MM MM Conway, to Ividua ly EXHIBIT 2 4T6 6u RECORDATION REQUESTED BY: COMMERCE BANKIHARRISBURG N.A. KAMPDEN CENTER 4860 CARLISLE PIKE MECHANICSBURG,•PA 17055 WHEN 1R6C9ROED MAIL TO', COMMOICE BANKIHARRISBURG PA 17055 SEND TAX-NOTICES TO: COMMERCE BANKIHARRISBURG N.A. HAMPDEN CENTER 4880 CARLISLE PIKE L L 0 0 RECORD & RETURN TO: E. R CREDIT LENDERS SERVICE AGENCY P 0. Box 508 ' 02 APR 16 Ali 11 02 CHERRY HILL, N,1. 08003 ATTN: PUB. REC. DOC. RECORDING OPEN - END MORTGAGE I ?0 THIS MORTGAGE SECURES FUTURE ADVANCES THIS MORTGAGE dated February 8, 2002, Is made and executed between James K. Conway and Patricia M. C r**y, whose address is 1103 Dry Powder Circle, Mechanicsburg, PA 17050 (referred to below as "Grantor") and COMMERCE BANK/HARRISBURG N.A., whose address is 4860 CARLISLE PIKE, MECHANICSBURG, PA 17055 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other nights, royalties, and profits relating to the real property, includ' without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Cumberland County,Tommonwealth of Pennsylvania: Real property located at 1103 Dry Powder Circle, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania, as recorded In deed book 243, page 21, in the office of the recorder of deeds of Cumberland County. The Real Property or its address is commonly known as 1103 Dry Powder Circle, Mechanicsburg, PA 17050. REVOLVING LINE OF CREDIT. Specifically, without limitation, this Mortgage secures a revolving line of credit, which obligates Lender to make advances to Grantor unless Grantor fails to comply with all the terms of the Credit Agreement Such advances may be made, repaid, and remade from time to time, subject to the limitation that the total outstanding balance owing at any one tilne, not Including finance charges on such balance at a fixed or variable rate or sum as provided In the Credit Agreement, any temporary overages, other charges, and any amounts expended or advanced as provided In this paragraph, shall not exceed the Credit Limit as provided In the Credit Agreement. It Is the intention of Grantor and Lender that this Mortgage secures the balance outstanding under the Credit Agreement from time to time from zero up to the Credit Limit as provided in this Mortgage and any intermediate balance, plus Interest. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF EACH Oft GRANTOR'S AGREEMENTS AND OBLIGATIONS UNDER THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer' means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each Insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor 175 Page 2 fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Grantor will be in default under this Mortgage if any of the following happen: (A) Grantor commits fraud or makes a material misrepresentation at any time in connection with the Credit Agreement. This can include, for example, a false statement about Grantor's income, assets, liabilities, or any other aspects of Grantor's financial condition. (B) Grantor does not meet the repayment terms of the Credit Agreement. (C) Grantor's action or inaction adversely affects the collateral or Lender's rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dwelling, creation of a senior lien on the dwelling without Lender's permission, foreclosure by the holder of another lien, or the use of funds or the dwelling for prohibited purposes. ATTORNEYS' FEES; EXPENSES. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or rat any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Credit Agreement rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. Goveming Law. This Mortgage will be governed by and Interpreted in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. Definitions. The following words shall have the following meanings when used in this Mortgage: BORROWER. The word "Borrower" means James K. Conway and Patricia M. Conway, and all other persons and entities signing the Credit Agreement. CREDIT AGREEMENT. The words 'Credit Agreement' mean the credit agreement dated February 8, 2oo2, with credit limit of $50,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement GRANTOR. The word "Grantor" means James K. Conway and Patricia M. Conway. LENDER. The word "Lender" means COMMERCE BANK/HARRISBURG N.A., its successors and assigns. The words "successors or assigns" mean any person or company that acquires any Interest in the Credit Agreement. MORTGAGE. The word "Mortgage" means this Mortgage between Grantor and Lender. PERSONAL PROPERTY. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. PROPERTY. The word "Property" means collectively the Real Property and the Personal Property. REAL PROPERTY. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. EACH GRANTOR ACKNOWLEDGES. HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: X /Z-1--&^-4 1 (Seal) 7 K. , Indfvi Ily Olt X (Seal) trivia M. Conway, Individually CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgage, ooMMERCE BANK/HARRISBURG N,A., herein is as follows: HAMPDEN CENTER, 48M CARLISLE PIKE, MECHANICSBURG, PA 17055 omey or Agent f q. p. MORTGAGE (Continued) Page 3 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) SS COUNTY OF ?t°daLY1 y ) On this, the day of q _, 20 (Oa, before me an' I R: c A,4 the undersigned Notary Public, ersonaily appeared James K. Conway a Patricia M. onway, known to me (or satisfactorily proven) to be the person whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein:coptained. R h wRness• eot, 1?lte nto set my hand and official seal. y? ^ a Notarial Seal Sheri Perkey, Notary Public Notary Public in and for the State of l:°l?(1Sl 1 rill Cl D Mt. Holly $pd eoro, Cunfrland County -?' My Comm?RSlort Explres Feb. 2, 2004 Member Pennsylvania Association of Notaries LiAAM Pip Lm*q, Vw. &11.01.06 Cap. H.&M Fkw=W SAM . Inv. 1W7. 2002. Al FA" PA-1-d. - PA H:\WOVAPP6ILPWIN4FfdKX0N.FC TR46N PG25 r Certify this to be recorded In Cumberland County PA of C4, t 1. ,o Recorder of Deeds VERIFICATION I, John T. Robertson, an authorized representative of Metro Bank am duly authorized to make this Verification on behalf of Metro Bank, and do hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I further understand that the statements therein made are subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. ohn . Robertson- Vice President SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor i't 'kv ut 4elailtCr,??"' A TNT pfi'Ttf1', `. zot? "R 20 +4M g: 44 CUMtERLAND coljN? Metro Bank vs. Case Number James K. Conway (et al.) 2012-2235 SHERIFF'S RETURN OF SERVICE 04/13/2012 04:00 PM - Ryan Burgett, Deputy Sheriff, who being duly sworn according to law, states that on April 13, 2012 at 1600 hours, he served a true copy of the within Complaint in Mortgage Foreclosure, upon the within named defendant, to wit: James K. Conway, by making known unto himself personally, at 1103 Dry Powder Circle, Mechanicsburg, Cumberland County, Pennsylvania 17050 its contents and at the same time handing to him personally the said true and correct copy of the same. RYAN BURGETT, 04/13/2012 04:00 PM - Ryan Burgett, Deputy Sheriff, who being duly sworn according to law, states that on April 13, 2012 at 1600 hours, he served a true copy of the within Complaint in Mortgage Foreclosure, upon the within named defendant, to wit: Patrica M. Conway, by making known unto James Conway, Husband of Defendant at 1103 Dry Powder Circle, Mechanicsburg, Cumberland County, Pennsylvania 17050 its contents and at the same time handing to him personally the said true and correct copy of the same. RYAN BURGETT, DEPUTY SHERIFF COST: $54.00 April 18, 2012 SO ANSWERS, RON R ANDERSON, SHERIFF il. CC[I?l? (c 31&' TP. WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: Peter E. Meltzer Identification No.: 39828 By: James H. Curry III Identification No.: 306954 Fulton Bank Building 200 North Third Street, Suite 9A Harrisburg, PA 17101 (717) 237-6940 ,.. rQ?''dLt?TA 111211'P' ? Z) PH 1: i ?DERLAIND CUUI'dl' PENNSYLVANIA Attorneys for Plaintiff METRO BANK f/k/a COMMERCE BANK/ HARRISBURG, N.A. 3801 Paxton Street Harrisburg, PA 17111 V. JAMES K. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 PATRICIA M. CONWAY 1103 Dry Powder Circle Mechanicsburg, PA 17050 COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. I a- ao?3S PRAECIPE TO DISCONTINUE To the Prothonotary: Please mark the above-captioned action discontinued without prejudice. Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP By: TER. QUIRE Date: April 23, 2012 J Y III, ESQUIRE 1-11