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HomeMy WebLinkAbout12-3167KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 t HARRISBURG, PA 17108-1963 Cfit?.1t IN THE COURT OF COMMb $LW A ': FULTON BANK, N.A. CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION - LAW eV. NO. 19 - m-1 URBAN EQUITY INVESTMENTS OF PA, CONFESSION OF JUDGMENT LLC ' Defendant CONFESSION OF JUDGMENT By virtue of the authority conferred by the Note, a copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against the Defendant for the sum of $246,551.83 and costs of suit. Eugene E. Pe ' s , Jr. Attorney for De endant by virtue of the authorization contained in the Note C)o P9 at? S 619 'Ovha NDL?lnd KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 FULTON BANK, N.A. IN THE COURT OF COMMON PLEAS OF NIA AVA ,;-:;: CUMBERLAND COUNTY, PENNS Plaintiff CIVIL ACTION - LAW ?2rn V. 1a` 31 J NO f- . URBAN EQUITY INVESTMENTS OF PA, CONFESSION OF JUDGO -,w t - LLC - Defendant COMPLAINT 1. Plaintiff Fulton Bank, N.A. is a national banking association, with an office at 200 N. Third Street, Harrisburg, Pennsylvania 17101. 2. Defendant is Urban Equity Investments of PA, LLC, a Pennsylvania limited liability company, whose last known address is 4902 Carlisle Pike, Suite 397, Mechanicsburg, Pennsylvania 17050. 3. On or about October 7, 2009, Defendant, for good and valuable consideration, executed and delivered a Promissory Note (the "Note") to Plaintiff. A true and correct copy of the Note is attached hereto, made a part hereof and marked Exhibit "A". 4. The Note referred to in Paragraph 3 above has not been assigned by Plaintiff to any person or organization. 5. Judgment has not been entered on the Note referred to in Paragraph 3 above in any jurisdiction. 6. The Note provides that Plaintiff may confess judgment against Defendant at any time after a default under the Note for the entire unpaid principal balance plus accrued interest, late charges and costs of suit and attorneys' fees of the greater of ten percent (10%) of the unpaid principal balance and accrued interest or $500.00. 7. The obligations of Defendant are in default, among other things, by reason of its failure to make the required payment(s) due under the Note. KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 8. The amount due on the Guaranty as of May 17, 2012, is $224,138.83, of which $220,625.62 is principal, $2,986.89 is interest and $526.32 is late charges. 9. Plaintiff has been advised and, therefore, avers that Defendant executed the Note referred to in Paragraph 3 above for business purposes. 10. This confession of judgment is not being filed against a natural person(s) in regards to consumer credit transaction. WHEREFORE, Plaintiff demands judgment against Defendant in the sum of $246,551.83, together with interest as may hereafter accrue and costs of suit. KEEFER WOOD ALLEN & RAHAL, LLP Date: May 1), 2012 By: Eugen epinsky, Jr. Attorney I.D. #23702 210 Walnut Street P.O. Box 11963 Harrisburg, PA 17108-1963 (717) 255-8051 Attorneys for Plaintiff KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 VERIFICATION The undersigned, James W. Pesavento, hereby verifies and states that: 1. He is Vice President of Fulton Bank, N.A., Plaintiff herein; 2. He is authorized to make this Verification on its behalf; 3. The facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information and belief; and 4. He is aware that false statements herein are made subject to the penalties of 18 Pa. C.S. 1 4904, relating to unsworn falsification to authorities. Jam"W. Pesavento Dated: May f, 2012 r?ct ? t, '00001.9711818.900100010031057' PROMISSORY NOTE Borrower: Urban Equity Investments of PA LLC Lander: Fulton Bank, N.A. 4802 Carlisle Pike, Sulte 397 Downtown Harrisburg Office Mechanicsburg. PA 17050 One Penn Square Corporate Address Lancaster, PA 17502 Principal Amount: $235,000.00 Date of Note: October 7, 2009 PROMISE TO PAY. Urban Equity Investments of PA LLC ('Borrower') promises to pay to Fulton Bank, NA. ('Lender'), or order, in lawful money of the United Stotts of America, the principal amount of Two Hundred Thirty-five Thousand d 00/100 Dollars 1$236,000.001, together with Interest on the unpaid principal balance from October 7, 2005, until paid In full. PAYMENT. Subject to any payment changes resulting from charges In the index, Borrower will pay this ban in accordance with the following payment schedule: 239 consecutive monthly Instalments on account of principal and Interest in the amount of $1,814,94 each, beginning on November 7, 2008 and continuing on the 7th'doy of each month thereafter. One final poymem of all unpaid principal and a8 unpaid accrued Interest shag be dire and payable on October 7, 2029. INTEREST RATE, The Interest rote applicable hereunder Is the annual fixed rate of 6.85% fun a period of 60 months from the date hereof, followed by the annual variable rate of 1.50% above the Index, as hereinaher defined. Unless otherwise agreed or required by applicable low, payments will be applied (Irst to any accrued unpaid Interest; then to principal; then to any fate charges; and than to any unpaid collection costs. Borrower sum pay Lender at Lander's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note Is subject to change from time to time based on changes in an index which Is the Fulton Bank, N.A. Prime Rate Ilhe 'Indax'1. The Index is not necessarily the lowest rate charged by Lender on Its loans and Is set by Lender in Its sole discretion. it the Index becomes unavailable during the term of this ben, Lender may designate a substitute index attar notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change wlm not occur more often then each day. Borrower understands that Lender may make loans based on other rates as well. Interest on the unpaid principal balance of this Note will be calculated as described in the 'INTEREST CALCULATION METHOD' paragraph using a rate of 1.500 percentage points over the Index, NOTICE: Under no circumstances will the Interest rate on this Note be lose than 5.500% per annum or more than the maximum rate allowed by opolicoble law. Whenever Increases occur in the Interest rate, Lender, at its option, may do one or more of the following: (A) increase Borrower's payments to ensure Borrower's ban will pay off by Its original final maturity date, (B) Increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments, and ID) continue Borrower's payments at the same amount and increase Borrower's final payment. INTEREST CALCULATION METHOD. knerest on this Note is computed on a 3651360 basis; [fiat is, by applying the ratio of the inleresl rate over a year of 360 days. multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding, All interest payable under this Nice is computed using this method. PREPAYMENT PENALTY, Upon prepayment of this Note, Lander Is enthisd to the following prepayment penalty: The Borrower shall have the right to prepay the whale or any part of the principal and Interest hereunder provided that: fa) at the firm of prepayment no event of delault hereunder shall have occurred; {bl any prepayment during any fixed rote period sham be accompanied by a prepayment penalty equal to two 12%) percent of the amount; (e) any partial prepayment sham be applied to the unpaid Principal balance. end no prepayment shall reduce the amount of the scheduled Installments not remove the Borrower from paying she scheduled installments on each due date, unto the enure Indebtedness is paid. Notwithstanding anything to the contrary set forth above, the prepayment penalty will not be charged if up to twenty (20%) portent of the original principal amount Is prepaid from internally generated funds within any loan Vow. The term 'ban year' as used herein Is defined as any period of one year commencing on the date hereof or on any onn)veraaty of such date. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than it U due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in fug', 'without recourse', or simitar language. If Borrower sands such a payment, Lender may accept It without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes 'payment in full' of the amount owed or that Is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Fulton Bank, N.A.: Downtown Harrisburg Office; One Penn Square; Corporate Address; Lancaster, PA 17602. LATE CHARGE. If a payment is 16 days or more late, Borrower will be charged 5.000% of the unpoid portion of the regularly scheduled payment. INTEREST AFTER DEFAULT. Upon default, Including failure to pay upon fins[ maturity, the interest rate on this Note shag be increased by adding a 5.000 percentage pant margin 1'Defsult Rate Margin'). The Default Rata Margin shag also apply 10 each succeeding interest rate change that would have applied had there been no default. If judgment is entered In connection with this Note, interest will continua to accrue after the dote of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable low. DEFAULT. Each of the Iollowing shelt'constitute an event of default ('Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrowet fails to comply with or to perform any other term, obligation, covenant or condition contained In this Note or In any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained In any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any )can, extension of credit, security agreement, purchase or sales agreement, or any other agreement, In favor of any other creditor or person that may materially effect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender b1' Borrower or on Borrower's behalf under this Note or the related documents Is false or misleading In any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter, Death or Insolvency, The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver tot any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or Insolvency laws by or against Borrower. Craditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loon. This includes s garnishment of any of Borrower's accounts, including deposit accounts, with Lander. However, this Event of Default them not apply If (hers is • good fetch dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and it Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or s surety bond for the creditor or, forfeiture proceeding, In an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond lot the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or Nobility under, any guaranty of the Indebtedness evidenced by this Note. Adverse, Change. A material adverse change occurs In Borrower's financiol condition, or Lander believes the prospect of payment or performance of this Note It Impaired. Insecurity, Lender In good faith believes itself Insecure. PROMISSORY NOTE Loan No: 0001-9711818-9001 (Continued) Pepe 2 Cerra Provisions. If any default, other then a detouit ;n payment is curable and 11 Borrower has not boon given a notice of a breech of the some provision of this Note within the preceding twelve 1121 months, it may be cured If Borrower, efter Lender sends written notice to Borrower cinmanding cure of such default: (1) cures the default within fiftoon 1161 days; or (2) If the ours requires more than f. teen 115) days, :mmr.dlotely initiates stops which Lander deems in ;.ander's sole discretion to be sufficient to cure the defaull and thereafter continues end completes all reasonable and necessary stops sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lander may hire or pay someone also to help collect this Note If Borrower does not pay. Borrower will pay Lander Chat amount. This includes. subject to any limits under applicable low, Lender's reasonable attorneys' lees and Lander's legal expenses, whether or not there Is a lewsu,i. Including ressoneblr altomays' teas, expenses for bankruptcy proceedings flncluding efforts to modify or vocals any automatic stay or injunctionl, and appeals. :1 not prohibited by applicable low, Borrower also will pay any court costs, in addition to all other sums provided by low. JURY WAIVER. Lander and Borrower hereby waive the right to any jury vial N any satlon, proceeding. M counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal low, the laws of the Commonwealth of Pennsylvania without regard to Rs connlou of law provisions. This Note has been socepted by lender In the Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, lender reserves a right of setoff in all Borrower's accounts with Lender (whether chocking, savings, or some other accountl. This Includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open M the future. However, the does not include any IRA or Keogh sccounts, or any trust accounts tot which setoff would be prohibited by law. Borrower authorizes Lender, to the extant permitted by applicable law, to charge or "tall all sums owing on the Indebtedness against any end all such accounts, and, at Lender's option, to administratively freers all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. Borrower acknov.lcdges this Note is serwed by Mortgage on 1314 North Fifteenth Street, City of Harrisburg. Doupkn County, PA; 603 Banton Street, City of Harrisburg, Dauphin County. PA. 1206 North Fourteenth Street, City of Harrisburg. Dauphin County, PA and 1924 North 4th Street, City of Harrisburg, Dauphin County, PA; Guaranty of Wah T. Thomas. CROSS DEFAULT, Any event of default under any loon duo and owing to Lander by Borrower, at any time, shall constitute an event of default under all loans due and owing to :ondor by Borrower. SUCCESSOR INTERESTS. The forms of this Note sha;T be b,nding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shag Inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will riot affect the rest of the Note. Lender may delay or forgo enforcing any of Its rights or remedies under this Note * it-out :esing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law. waive presentment, demand Car payment, and notice of dishonor. Upon any change in the terms of this Note, and unluus otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from Trabithy• All such parties agree that Lender may renew or extend (repeatedly and for any length of lime) this ben or release any party or guarantor or Collateral; or :mpmr, fail to realize upon or perfect Lender's security Interest in the collators'.; and take any other sctron deemed nacces,rry by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion at this Note is for any reason determined to be unenforceable, it will not effect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK Of ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR 1ORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE Or THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVINT NOT LESS THAN F-VE HUNDRED DOLLARS 0500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFiDAV1T SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY. RUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF Al L AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE. BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTTTUTE AND HAVE THE EFFECT OF A SEALED tNSTRUMENT ACCORDING TO LAW. BORROWER: URBAN EQUITY INVESTMENTS OF PA LLC BY: L Wali T. Thomas, Member of Urban Equity Investments of PA LLC Signed, acknovJ?adged Iji lLLvarad In the presence of: X ? j---- - Wltndas X - - - -- - WNMSs ? .r MO, .. .. rYAaOpf W •. • , •. •, r. en ,s. , e,T.w .. n aNCa?•_Yr,u..K?C 1•x.?+ KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 FULTON BANK, N.A. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION - LAW V. NO. URBAN EQUITY INVESTMENTS OF PA, LLC CONFESSION OF JUDGMENT Defendant NOTICE OF DEFENDANT'S RIGHTS A judgment in the amount of $246,551.83 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER AND CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 Bedford Street Carlisle, PA 17013 (717) 249-3166 KEEFER WOOD ALLEN & RAHAL, LLP By: agerf? E. epinsky, Jr. Attorne I. . #23702 210 Walnut Street P.O. Box 11963 Harrisburg, PA 17108-1963 (717) 255-8051 Attorneys for Fulton Bank, N.A. KEEFER WOOD ALLEN & RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 FULTON BANK, N.A. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION - LAW V. NO. la J 3?? URBAN EQUITY INVESTMENTS OF PA, LLC CONFESSION OF JUDGMENT Defendant NOTICE To: URBAN EQUITY INVESTMENTS OF PA, LLC, Defendant You are hereby notified that on May _L?, 2012, judgment by confession was entered ag ' st you in the sum of $246,551.83 in the above captioned case. Pride ary YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 Bedford Street Carlisle, PA 17013 (717) 249-3166 I hereby certify that the following is the address of the Defendant stated in the certificate of residence. URBAN EQUITY INVESTMENTS OF PA, LLC 4902 CARLISLE PIKE, SUITE 397 MECHANICSBURG, PA 17050 Attorney for (s) KEEFER WOOD ALLEN He RAHAL, LLP 210 WALNUT STREET PO BOX 11963 HARRISBURG, PA 17108-1963 FULTON BANK, N.A. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION - LAW V. NO. URBAN EQUITY INVESTMENTS OF PA, LLC CONFESSION OF JUDGMENT Defendant NOTICE To: URBAN EQUITY INVESTMENTS OF PA, LLC, Defendido Usted esta siendo notificando que el de May del 2012, se anoto en contra suya un fallo por confesion en la suma de $246,551.83 en el caso mencionado en el epigrafe. Prothonotary LISTED DEBE LLEVAR IMMEDIATAMENTE ESTE DOCUMENTO A SU ABOGADO. SI USTED NO TIENE UN ABOGADO O NO PUEDE PAGARLE A UNO, LLAME O VAYA A LA SIGUIENTE OFICINA PARA AVERIGUAR DONDE PUEDE ENCONTRAR ASISTENCIA LEGAL. Cumberland County Bar Association 32 Bedford Street Carlisle, PA 17013 (717) 249-3166 Certifico que la siguiente direccion es la del defendido/a segun indicada en el certificado de residencia: URBAN EQUITY INVESTMENTS OF PA, LLC 4902 CARLISLE PIKE, SUITE 397 MECHANICSBURG, PA 17050 ( Attorney i s)