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HomeMy WebLinkAbout13-1315 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny RAnderson PILED-OFFicp Sheriff F THE PR�OT"HON Tj,, Body s smith Chief Deputy 20!3 MAN 20 PM 3: 07 � -�' Richard W Stewart CUMBERLAND COUNTY Solicitor ' ' = PENNSYLVANIA Susquehanna Bank Case Number vs. Nava K Nawaz 2013-1315 SHERIFF'S RETURN OF SERVICE 0311412013 03:00 PM-Deputy Tim Black, being duly sworn according to law, served the requested Confession of Judgment; Complaint in Confession of Judgment; and Notice Under Rule 2958.1 of Judgment and Execution Thereon by handing a true copy to a person representing themselves to be Jamal Kizilbaash, Mother of defendant,who accepted as"Adult Person in Charge"for Nava K Nawaz at 6353 Galleon Drive, Hampden Twp, Mechanicsburg, PA 17050. TIM LA K, DEPUTY SHERIFF COST: $38.00 SO ANSWERS, 110212 f1 "� March 15, 2013 RbNW R ANDERSON, SHERIFF {Gj COUNYSUif6'Sherrf.10l'e05of'. !'.'.C, C-) ry C: -a z w —f rri ri7Q - March 28, 2013 -<> cj f Malik M.Nawaz&Nava K.Nawaz(Prose) " _in Perll Diagnostics, Inc. 5010 Ritter Road, Ste 104, Mechanicsburg, PA 17055 Telephone(570)394-2776 (Prose) SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, V. PENNSYLVANIA NAVA K.NAWAZ, AKA NAVA NAWAZ Defendant CIVIL ACTION -LAW No. Civil PETITION TO OPEN/RELIEF OF JUDGEMENT On May 11, 2011, a commercial business loan was approved for Perll Diagnostics, Inc. in the amount of $450,000. Your honor, a true copy of the note is attached in Exhibit"A". The defendant, Perll Diagnostics, Inc. made monthly payments to both loans; Exhibit"B". In June 2012, the Defendant sent an e-mail to Susquehanna Bank with the intention of prepaying the loan in lump sum by the sale of the property in Danville PA; Exhibit"C". The defendant prepaid the loan in Lump sum $133,705.99 in October 2012; Exhibit"D". This prepaid the commercial loan in advance,till August 2014. Despite the lump sum prepayment of($133,705.99), in October 2012 the defendant received a notice from the bank on Nov 26`h 2012 to pay the full balance of the loan within 15 days;Exhibit"E". The loan is not in default and there are no legal grounds to enter a confession of judgment. Wherefore,the defendant prays your Honorable Court to open judgment to resolve this matter. Respectfully submitted, "&L V,Grr1•ftVAA,b* Malik M. Nawaz & Nava K. Nawaz U.S. Sm,1I1 311sinE.ss Ad Qchb�o � AUl FIC..1 RlZATION (SBA 7(yk) I,.�LI,ARANTEED .OAN) SBA Loan # 46085150-09 SBA Loan Name Peril Diagnostics,Inc. Approval Date March 30,2011 Lender: U. 'S. Sraall:Business Administro ion(SBA): Susquehanna Bank Philadelplia District Office 159 E.High Street Parl.-view Towers Pottstown,PA 19464 1151)First Avenue- Suite 1001 King of Prussia,PA 19406 SBA approves, under Section 7(a)of the Small Business.Act as i.mended, Lender's apl l ication,received March 30,2011,for SBA to guarantee 75.00%of a loan ("Loan")in the amount of$45 3,000.00 to assist: Borrower: 1. Peril Diagnostics,Inc. 5010 Ritter Road Suite 104 Mechanicsburg,PA 17055 All requirements in the Authorization which refer to Borrower al:>o apply to any CO-Bo--over. A. THE GUARANTEE FEE IS$10,125.00. Lender must pay the guarantee fee within 90 days of the approval date of this Authcrization. Failure to timely pay the guarantee fee will result in cancellation of ihe SBA guarantee. '14.190-day deadline may not be extended. Lenders are required to make their payments electronically. Payment can be made at www.pay.gov or by ACH if they have previcusly enrolled with the SBA. No part of the guarantee fee is refundable if Lender has made any disbursement. Lender may collect this fee from Borrower after initial disbursement of Loan. Borrower may use Loan procee(13 to reimburse Lender for the guarantee fee. For loans of$150,000 or less,Lender may retain 25% of the guarantee fee but muai.remit the remainder to SBA. B. ONGOING SERVICING FEE 1. Lender agrees to pay SBA an ongoing fee equal to 0.550 of one percent per ye 1r of the guaranteed portion of the outstanding balance. SBA Loan Number: 46085150-09 Pagel SBA Loam Name: Peril Diagnostics, Inc. (7a Wizard 2009.4) 2. Lender may not charge or otherwise pass through this fee to Borrower. C. IT IS LENDER'S SOLE RESPONSIBILITY TO: I, Close the Loan in accordance with the terms and conditions of this Authorization. 2. Obtain valid and enforceable Loan documents,including obtaining the signature or written consent of any obligor's spouse if such consent or signature is necessary to bind the marital community or create a valid lien on marital property. 3. Retain all Loan closing documents. Lender must submit these documents,along with other required documents,to SBA for review if Lender requests SBA to honor its guarantee on the Loan, or at any time SBA requests the documents for review. D. REQUIRED FORMS 1, Lender may use its own forms except as otherwise instructed in this Authorization.Lender must use the following SBA forms for the Loan: SBA Form 147,Note SBA Form 1050,Settlement Sheet SBA Form 15 9(7(a)),Compensation Agreement for each required agent SBA Form 722,Equal Opportunity Poster SBA Form 148,Guarantee 2. Lender may use computer-generated versions of mandatory SBA Forms,as long as these versions are exact reproductions. E. CONTINGENCIES—SBA issues this Authorization in reliance on representations in the Loan application, including supporting documents. The guarantee is contingent upon Lender: I. Having and complying with a valid SBA Loan Guarantee Agreement(SBA Form 750 or SBA Form 750B for short-term loans)and any required supplemental guarantee agreements,between Lender and SBA; 2. Having paid the full guarantee fee in the time and manner required by this Authorization and the 3. Complying with the current SBA Standard Operating Procedures(SOP); 4. Completing disbursement no later than 6 months from the approval date of this Authorization, unless the disbursement period is extended by proper SBA procedures. (The final disbursement period cannot exceed 48 months from the approval date of this Authorization. Any undisbursed balance remaining after 48 months will be automatically cancelled by SBA); 1 Having noevidence since the date olthe Loan application,o,since any preceding disbursement, of any unremedied adverse change in the financial condition,organization,management, or assets wf Borrower oc Operating Company which would warrant withholding or not making any further disbursement;and, 6. Satisfying all ofthe conditions io this Authorization. SBA LoanNumber: 46085150-09 Page 2 SBA Loan Name: Perll Diagnostics,Inc. (7a Wizard 2009.4) F. NOTE TERMS: 1. Maturity: This Note will mature in 10 years from date of Note, 2. Repayment Terms: Lender must insert onto SBA Note,Form 147,to be executed by Borrower, the following terms,without modification. Lender must complete all blank terms on the Note at time of closing: The interest rate on this Note will fluctuate. The initial interest rate is 6.00%per year. This initial rate is the prime rate in effect on the first business day of the month in which SBA received the loan application,plus 2.75%. The initial interest rate must remain in effect until the first change period begins. Borrower must pay a total of 6 payments of interest only on the disbursed principal balance beginning one month from the month this Note is dated and every month thereafter;payments must be made on the first calendar day in the months they are due. Borrower must pay principal and interest payments of$5,188.27 every month,beginning seven months from the month this Note is dated; payments must be made on the first calendar day 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 every calendar quarter(the"change period"). The "Prime Rate" is the prime rate in effect on the first business day of the month(as published in the Wall Street Journal)in which SBA received the application,or any interest rate change occurs. Base Rates will be rounded to two decimal places with .004 being rounded down and .005 being rounded up. 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. Lender must adjust the payment amount at least annually as needed to amortize principal over the remaining term of the note. If SBA purchases the guaranteed portion of the unpaid principal balance,the interest rate becomes fixed at the rate in effect at the time of the earliest uncured payment default. If there is no uncured payment default,the rate becomes fixed at the rate in effect at the time of purchase. Loan Prepayment: Notwithstanding any provision in this Note to the contrary: Borrower may prepay this Note. Borrower may prepay 20% or less of the unpaid principal balance at any time without notice. If Borrower prepays more than 20%and the Loan has been sold on the secondary market,Borrower must: a. Give Lender written notice; SBA Loan Number: 46085150-09 Page 3 SBA Loan Name: Peril Diagnostics,Inc. (7a Wizard 2009.4) b. Pay all accrued interest;and c. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days'interest from the date lender receives the notice,less any interest accrued during the 21 days and paid under subparagraph b.,above. If Borrower does not prepay within 30 days from the date Lender receives the notice,Borrower must give Lender a new notice. All remaining principal and accrued interest is due and payable 10 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 5.00%of the unpaid portion of the regularly scheduled payment. 3. Lender must include confession of judgment clauses in the Note for borrower(s)resident in Pennsylvania. G. USE OF PROCEEDS 1. $58,484.00 to purchase equipment. 2. $381,017.00 for working capital. 3. $10,499.00 for furniture and fixtures. All amounts listed above are approximate. Lender may not disburse Loan proceeds solely to pay the guarantee fee. Lender may disburse to Borrower,as working capital only,funds not spent for the listed purposes as long as those funds do not exceed 10%of the specific purpose authorized or $10,000.00, whichever is less. An Eligible Passive Company may not receive working capital funds. The loan must be made for a sound business purpose and must benefit the small business,and one 7(a)loan may not be split into two 7(a)loans merely to benefit the Lender. 13 CFR 120.120 and 120.130(e) Lender must document that Borrower used the loan proceeds for the purposes stated in this Authorization. Lender and Borrower must complete and sign SBA Form 1050 at the time of first disbursement. Lender must document the first and all subsequent disbursements by attaching required documentation to the original SBA Form 1050 and must maintain the documentation in the Loan file,following procedures described in SOP 50-10(5). H. COLLATERAL CONDITIONS Lender must obtain a lien on 100%of the interests in the following collateral and properly perfect all lien positions: 1. First Perfected Security Interest,subject to no other liens,in the following personal property(including any proceeds and products),acquired with loan or project proceeds, SBA Loan Number: 46085150-09 Page 4 SBA Loan Name: Perll Diagnostics,Inc. (7a wizard 2009.4) including all replacements and substitutions,wherever located: Equipment; Inventory;Accounts;Instruments; Chattel Paper; General Intangibles; a. Lender must obtain a written agreement from all Lessors(including sublessors)agreeing to: (1)Subordinate to Lender Lessor's interest,if any, in this property; (2)Provide Lender written notice of default and reasonable opportunity to cure the default; and(3)Allow Lender the right to take possession and dispose of or remove the collateral. b. Lender must obtain a list of all equipment and fixtures that are collateral for the Loan. For items with a unit value of$5,000 or more, the list must include a description and serial number, if applicable. c. Lender must obtain an appropriate Uniform Commercial Code lien search evidencing all required lien positions. If UCC search is not available, another type of lien search may be substituted. 2. Guarantee on SBA Form 148,by Malik M.&Nava K.Nawaz, resident in Pennsylvania. Secured by: a. Second Mortgage on land and improvements located at 21 Erin Drive,Danville PA 17821. This property is residential. (1) Subject only to prior lien(s)as follows: (a) First: JP Morgan Chase NA in the amount of$402,500.00 (2) Evidence of title and priority of lien must be based upon: (a) Title and/or Lien Search or other evidence of proper ownership and lien position. b. Second Mortgage on land and improvements located at 6353 Galleon Drive, Mechanicsburg PA 17050.This property is residential. (1) Subject only to prior lien(s)as follows: (a) First: JP Morgan Chase Bank,NA in the amount of$135,000.00 (2) Evidence of title and priority of lien must be based upon: (a) Title and/or Lien Search or other evidence of proper ownership and lien position. c. First Mortgage on land and improvements located at 11922 Bates Court,Orland Park IL 60467. This property is residential. (1) Subject to no other liens. (2) Evidence of title and priority of lien must be based upon: (a) Title and/or Lien Search or other evidence of proper ownership and lien position. The following language must appear in all lien instruments including Mortgages,Deeds of Trust, and Security Agreements: "The Loan secured by this lien was made under a United States Small Business Administration (SBA) nationwide program which uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA regulations: a) When SBA is the holder of the Note, this document and all documents evidencing or securing this Loan will be construed in accordance with federal law. b) Lender or SBA may use local or state procedures for purposes such as filing papers, recording documents, giving notice,foreclosing liens, and other purposes. By using these procedures, SBA does not waive any federal immunity from local or state control,penalty, tax or liability. No Borrower or Guarantor may claim or assert against SBA any local or SBA Loan Number: 46085150-09 Page 5 SBA Loan Name: Peril Diagnostics,Inc. (7a wizard 2009.¢) state law to deny any obligation of Borrower, or defeat any claim of SBA with respect to this Loan. Any clause in this document requiring arbitration is not enforceable when SBA is the holder of the Note secured by this instrument." Pennsylvania Mandatory Provision—Lender must include valid confession of judgment clauses in guarantees signed by Pennsylvania residents. I. ADDITIONAL CONDITIONS 1. Insurance Requirements Prior to disbursement,Lender must require Borrower to obtain the following insurance coverage and maintain this coverage for the life of Loan: a. Flood Insurance. Based on the Standard Flood Hazard Determination(FEMA Form 81-93): (1) If any portion of a building that is collateral for the Loan is located in a special flood hazard area,Lender must require Borrower to obtain flood insurance for the building under the NFIP. (2) If any equipment,fixtures,or inventory that is collateral for the loan("Personal Property Collateral")is in a building any portion of which is located in a special flood hazard area and that building is collateral for the Loan,Lender must require Borrower to also obtain flood insurance for the Personal Property Collateral under the NFIP. (3) If any equipment, fixtures, or inventory that is collateral for the loan("Personal Property Collateral")is in a building any portion of which is located in a special flood hazard area and that building is not collateral for the Loan, Lender must require Borrower to obtain available flood insurance for the Personal Property Collateral. Lender may waive SBA's requirement for flood insurance for the Personal Property Collateral when the building is not collateral for the Loan,but only if Lender,using prudent lending standards,puts a written determination into the loan file that flood insurance is either not available or not economically feasible. Insurance coverage must be in amounts equal to the lesser of the insurable value of the property or the maximum limit of coverage available. Insurance coverage must contain a MORTGAGEE CLAUSE/LENDER'S LOSS PAYABLE CLAUSE(or substantial equivalent) in favor of Lender. This clause must provide that any action or failure to act by the debtor or owner of the insured property will not invalidate the interest of Lender and SBA. (Borrower will be ineligible for any future SBA disaster assistance or business loan assistance if Borrower does not maintain any required flood insurance for the entire term of the Loan.) b. Real Estate Hazard Insurance coverage on all real estate that is collateral for the Loan in the amount of the full replacement cost. If full replacement cost insurance is not available, coverage must be for maximum insurable value. Insurance coverage must contain a MORTGAGEE CLAUSE(or substantial equivalent) in favor of Lender. This clause must provide that any action or failure to act by the mortgagor or owner of the insured property will not invalidate the interest of Lender.The policy or endorsements must provide for at least 10 days prior written notice to Lender of policy cancellation. SBA Loan Number: 46085150-09 Page 6 SBA Loan Name: Peril Diagnostics, Inc. (7a Wizard 2009.4) c. Personal Property Hazard Insurance coverage on all equipment,fixtures or inventory that is collateral for the Loan,in the amount of full replacement costs. If full replacement cost insurance is not available, coverage must be for maximum insurable value. Insurance coverage must contain a LENDER'S LOSS PAYABLE CLAUSE in favor of Lender. This clause must provide that any action or failure to act by the debtor or owner of the insured property will not invalidate the interest of Lender. The policy or endorsements must provide for at least 10 days prior written notice to Lender of policy cancellation. d. Life Insurance,satisfactory to Lender: (1) on the life of Nava K.Nawaz in the amount of$450,000.00. (2) on the life of Malik M.Nawaz in the amount of$450,000.00. Lender must obtain a collateral assignment of each policy with Lender as assignee and Lender must also obtain acknowledgment of the assignment by the Home Office of the Insurer. Lender must assure that Borrower pays the premium on the policy. e. Liability Insurance in an amount and with an insurance company satisfactory to Lender. f. Workers' Compensation Insurance in an amount meeting state law requirements and with an insurance company satisfactory to Lender. 2. Borrower,Guarantor and Operating Company Documents a. Prior to closing,Lender must obtain from Borrower, Guarantor and Operating Company a current copy of each of the following as appropriate: (1) Corporate Documents—Articles or Certificate of Incorporation(with amendments any By-laws,Certificate of Good Standing(or equivalent),Corporate Borrowing Resolution,and, if a foreign corporation,current authority to do business within this state. (2) Limited Liability Company(LLC)Documents—Articles of Organization(with amendments),Fact Statement or Certificate of Existence,Operating Agreement, Borrowing Resolution,and evidence of registration with the appropriate authority. (3) General Partnership Documents—Partnership Agreement,Certificate as to Partners, and Certificate of Partnership or Good Standing(or equivalent),as applicable. (4) Limited Partnership Documents—Partnership Agreement,Certificate as to Partners, and Certificate of Partnership or Good Standing(or equivalent),as applicable, Certificate of Limited Partnership, and evidence of registration with the appropriate authority. (5) Limited Liability Partnership(LLP)Documents—Partnership Agreement, Certificate as to Partners,Certificate of Partnership or Good Standing(or equivalent) as applicable,and evidence of registration with the appropriate authority. (6) Trustee Certification—A Certificate from the trustee warranting that: (a) The trust will not be revoked or substantially amended for the term of the Loan without the consent of SBA; (b) The trustee has authority to act; (c) The trust has the authority to borrow funds, guarantee loans, and pledge trust assets; (d) If the trust is an Eligible Passive Company, the trustee has authority to lease the property to the Operating Company; (e) There is nothing in the trust agreement that would prevent Lender from realizing on any security interest in trust assets; (f) The trust agreement has specific language confirming the above;and SBA Loan Number: 46085150-09 page 7 SBA Loan Name: Peril Diagnostics,Inc. (7a wizard 2009.4) (g) The trustee has provided and will continue to provide SBA with a true and complete list of all trustors and donors. (7) Trade Name—Documentation that Borrower has complied with state requirements for registration of Borrower's trade name(or fictitious name), if one is used. b. Prior to closing,Lender must obtain from Borrower and Operating Company: (1) Ownership—Evidence that ownership and management have not changed without Lender's approval since the application was submitted. 3. Operating Information Prior to any disbursement of Loan proceeds,Lender must obtain: a. Verification of Financial Information—Lender must submit IRS Form 4506-T(SBA version)to the Internal Revenue Service to obtain federal income tax information on Borrower, or the Operating Company if the Borrower is an EPC, for the last 3 years(unless Borrower or Operating Company is a start-up business). If the business has been operating for less than 3 years, lender must obtain the information for all years in operation. This requirement does not include tax information for the most recent fiscal year if the fiscal year-end is within 6 months of the date SBA received the application. Lender must compare the tax data received from the IRS with the financial data or tax returns submitted with the Loan application,and relied upon in approving the Loan. Borrower must resolve any significant differences to the satisfaction of Lender and SBA. Failure to resolve differences may result in cancellation of the Loan. If the Loan involves a change of ownership,Lender must verify financial information provided by the seller of the business in the same manner as above. If Lender does not receive a response from the IRS or copy of the tax transcript within 10 business days of submitting the IRS Form 4506-T,then Lender may close and disburse the loan provided that Lender sends a second request following precisely the procedures detailed in SOP 50-10(5)and Lender performs the verification and resolves any significant differences discovered, even if the Loan is fully disbursed. b. Authority to Conduct Business—Evidence that the Borrower has an Employer Identification Number and all insurance,licenses, permits and other approvals necessary to lawfully operate the business. c. Flood Hazard Determination—A completed Standard Flood Hazard Determination (FEMA Form 81-93). d. Lease--Current lease(s)on all business premises where collateral is located with term, including options, at least as long as the term of the Loan. 4. Injection Lender must obtain evidence that prior to disbursement: a. Cash Injection—At least$194,762.00 cash has been injected into the business as equity capital.This cash is for Furniture,fixtures,equipment,working capital and closing costs. 5. Certifications and Agreements a. Prior to disbursement,Lender must require Borrower to certify that: SBA Loan Number: 46085150-09 Page 8 SBA Loan Name: Peril Diagnostics,Inc. (7a Wizard 2009.4) (1) Receipt of Authorization—Borrower has received a copy of this Authorization from Lender,and acknowledges that: (a) The Authorization is not a commitment by Lender to make a loan to Borrower; (b) The Authorization is between Lender and SBA and creates no third party rights or benefits to Borrower; (c) The Note will require Borrower to give Lender prior notice of intent to prepay. (d) If Borrower defaults on Loan, SBA may be required to pay Lender under the SBA guarantee. SBA may then seek recovery of these funds from Borrower. Under SBA regulations, 13 CFR Part 10 1,Borrower may not claim or assert against SBA any immunities or defenses available under local law to defeat, modify or otherwise limit Borrower's obligation to repay to SBA any funds advanced by Lender to Borrower. (e) Payments by SBA to Lender under SBA's guarantee will not apply to the Loan account of Borrower,or diminish the indebtedness of Borrower under the Note or the obligations of any personal guarantor of the Note. (2) Child Support—No principal who owns at least 50%of the ownership or voting interest of die company is delinquent more than 60 days under the terms of any(a) administrative order,(b)court order, or(c)repayment agreement requiring payment of child support. (3) Current Taxes—Borrower is current on all federal,state, and local taxes, including but not limited to income taxes,payroll taxes,real estate taxes,and sales taxes. (4) Environmental--For any real estate pledged as collateral for the Loan or where the Borrower is conducting business operations(collectively "the Property"): (a) At the time Borrower submitted the Loan application,Borrower was in compliance with all local,state,and federal environmental laws and regulations pertaining to reporting or clean-up of any hazardous substance,hazardous waste, petroleum produc4 or any other pollutant regulated by state or federal law as hazardous to the environment(Contaminant),and regarding any permits needed for the creation,storage,transportation or disposal of any Contaminant; (b) Borrower will continue to comply with these laws and regulations; (c) Borrower,and all of its principals,has no knowledge of the actual or potential existence of any Contaminant that exists on,at,or under the Property,including groundwater,other than what was disclosed in connection with the Environmental Investigation of the Property; (d) Until full repayment of the Loan,Borrower will promptly notify Lender and SBA if it knows or suspects that there has been,or may have been,a release of a Contaminant in,at,or under the Property, including groundwater,or if Borrower or such Property are subject to any investigation or enforcement action by any federal,state, or local environmental agency(Agency)pertaining to any Contaminant on,4 or under such Property, including groundwater; (e) As to any Property owned by Borrower,Borrower indemnifies,and agrees to defend and hold harmless,Lender and SBA, and any assigns or successors in interest which take title to the Property,from and against all liabilities, damages, fees,penalties or losses arising out of any demand,claim or suit by any Agency or any other party relating to any Contaminant found on,at,or under the Property, including groundwater,regardless of whether such Contaminant resulted from Borrower's operations. (Lender or SBA may require Borrower to execute a separate indemnification agreement). SBA Loan Number: 46085150-09 Page 9 SBA Loan Name: PerlI Diagnostics, Inc. (7a Wizard 2009.4) b. Prior to disburselnent,.Lender Piiist require Borrower to certify that it wilt: (1) Reimbursable.Expenses--Reimburse Lender for expenses incurred in the making and adman stiation.of the Loan. (2) Book;.Records,.and Reports -- (a) Keep proper books of account'in a manner satisfactory to Lender, (b) Furniih year-er d sratdrien.ts to gender within 120 dot of fiscal year end; (c) Furnish additional.fmancial statements,or.reports;wherever Lender requests. them; (d) Allow Lender or SBA;at Bo rower's expense;.to: 111. 1aspect and auc itbooks,:records and papers:relati ng.to Borrower's finandial or business-condition;and [2]. Inspect:and`appraise:any of Boi Lowe_is assets;arid' [3 Allc#tu` 11 govemfncnt author tie's to ftg A f parts`of examinations;©r any records perlaiiting.to$orxower,upon.ret est:by I:ettijer or SB (3) Equal Opportunity:-Post.&BA.Fonn 722,.Equal Opparttmity Poster,,where it is clearly visible,to employees,applicants for ernploynient wid:the general public. (4) Americatt�niade.Prodiiets.-�To the::ei'terit::practicable,,pUrchase.drily Amerieani rriade equipnientano products witYt-the proceeds of the Loan. (s) Taxes—,Pay all,federal;'state;and-local taxes,:including income,payroll,real estate arid.sales taxes of the business when they come due: c. Lender must require 33orrower'to certify that,it will,not,without Lender's:prior written c arisentt (1) Distr bet#oe Make any distriliutio t;af company assets that w ll adversely affect the financial cohditioir of Borrower: (2) Ownership Cbabges—Change:the ownership structure or interests in the business during the.,term of`the Loan. (3) Transfer oftlsset"ell,lease,:pledge;encumber,(except by purchase money liens on property-scquired:after.ibe:date of the Note),.or otherwise dispose of aiy. of Borrower's property or assets,except in the ordinary'come of business. ADMIMSTRATOR SMALL:.B.USINESS ADMINISTRAT'ION Match 30,2011 BY: Lynn G.f- i Exec ice �; I?ate a Preferrtdat as der an an agent.of and on behalf of-the SBA for.the purpose of executing Alit ri tiori: S13A Loan.Number, 4608515"0 Page l0 SBA Loan:name: Peril Diagnostics,Inc. (%'Nizard 2(69:4) Exhibit I tAT " Y Loan No. 10009274530 Approved Commercial Loan �/2011 $450,00OX First 6 months interest only 6/11/2011 $2,250.00 First 6 months interest only 7/11/2011 $2,250.00 First 6 months interest only 8/11/2011 $2,250.00 First 6 months interest only 9/11/2011 $2,250.00 First 6 months interest only 10/11/2011 $2,250.00 First 6 months interest only 11/11/2011 $2,250.00 Payments Made 12/01/2011 $5,188.27 Payments Made 1/03/2012 $5,188.27 Payments Made 2/01/2012 $5,188.27 Payments Made 3/13/2012 $5,188.29 Payments Made 4/04/2012 $5,188.29 Payments Made 5/15/2012 $5,188.40 Please see the email to the bank which 6/01/2012 states,that we will pay down the loan with the sale Of 7/01/2012 our property in Danville,PA Payments Made 8/09/2012 $5,188.40 Payments Made 9/13/2012 $5,188.40 Pre-Payment of Loan— 10/04/2012 $133,705.99 Notice received from bank for full payment of both 11/26/2012 ^ (1828 unread) - nnawaz c,perlldiagnosticsxom - Yahoo! Mail Page 1 of 1 EAh"1510T C F­ -_ __1 Rosemary Dente(rosemary dented_susquehanna ne Search Web © Hi,Nava INBOX CONTACTS SEARCH;Rosemary... SBA Loan#46085150 Compose Delete Move Actions Inbox(999+) SBA Loan#4608515009 from Nava Nawa2 to 1 recipient Jun 25,2012 Drafts(268) Sent Hi Rosemary, Spam(278) Thank you for talking to me on the phone about the monthly installment of the SBA loan#4608515009. 1 Trash(18) appreciate you letting me explain.We have no money now to pay the monthly installment.We are selling FOLDERS our property,21 Erin Drive, Danville, PA 17821 which the buyers will acquire in August 2012.The APPLICATIONS proceeds of the property sale will go towards paying down the loan. Please feel free to contact me with any questions. Regards, Nava Nava Nawaz,M.D.,F.C.A.P. President and Laboratory Director Peril Diagnostics,Inc. 5010 Ritter Road, Suite 104 Mechanicsburg, PA17055 Ph:717-691-5888 Cell:570-394-2776 Fax:717-691-5551 E-mail: nnawaz(cDperlldiagnostics.com Website: http://www.perlldia_qnostics.com/ http://us.mg5.mail.yahoo.com/neo/launch 3/25/2013 OMB Approval No 2502-0265 A.Settlement Statement (HUD-I) 1 0 FHA 2.0 RHS 113 conv.unme 6 File Number '7 Loan 14;;ber 8.Mortgage Insurance Case Number 41 OVA 5-0 Conv.Ins. 3023Mfk�" C.Not*.*This farm is furnish"to give you a statement of actual settlement costs.Amounts paid to and by the settkmert agent are shown.Items marked c,r were paid outside the closing;they are shown hem for informational purpAm and we not included in the totals, 0 Name&Address of Borrower E.Name A Address of Sals r-. -IF Name&Address of Lander. . Ashok 13hanustiall&Chalitio Shah,- ttar1114 ft>tw9z&Fait Ai),Nii `211 Erin Drive, _ Danvillie,PA 17821 tow G.Property Location: H.Settlement Agent: 1.Sattleme" 21 Erin Drive,Danville CL Piece of Settlement: Motioning Townshils,14ont our Courtly ? lei pareve, al Wallow 1782t 2= fiati+rsflC PA 2 100.Gross Amount Due from Borrower 400.Gross Amount Owl to SOIOr 101,Contract sales price :LO 4011.C sat"price SSA 000.00 '402.Personal Pr 102.Personal Property 0*0' 103.Settlement charges to borrower(line 1400 S91.6�24 t7 j4d3 404- 405. Adjustments for items Paid by Wier In advance 1 Adjustments for Rome paild by sellier in advance 106-Cityltown taxes 1014112 to 12/31112 369.11 1406.CdMcvm taxes 10/4/12 to 12131/12 S 369-11 107.School taxes 1014112 to 6W113 .66 407.School taxes 1014112 o 613011 S2,626.66 s _00Q 406.Assessments to 3 0.00 S 3-21 - n 11 12f31/12 S 3.21 T�9 1014J12 -lo_17t31/12 1410, 1411. 112, 412 113 120.Gross Amount Due from Borrower SSIL2� 420,Gross Amount Due to Salter 5507,898.98 200.Amounts Paid by or In Behalf of Borrower Amount Due to 3~. SM Reductions in _tot Deposits­p_rearnest TW_'!X___ 00i 1501.Excess deposit(am Wisructions) -- Ttxtf00 ,2O rin P cipal amount of now loan(s) 404 000, 502,Settlement charges to seller(line 1400) $9,758.00 203,Existing loan(s)taken subject to 503 Existing bans)taken sAe edtoCha�wS/111112 1: 3g3'g2g ,- 204. 1504.Find molligallia low per dim 911V12 to 1011(Yl 205 1505.P"M681601"p- 206 ay down of Sutsgtletlanna Bank mug. 207 507. (Loan#100092745301 SBA#46065#5009) 133c(JiS. 2.08 7 209, i 509.Payoff ta*Ws&,ad and overnight fee T(3) 'Adjustments for items unpaid by sollier Adjustments for items,unpaid by salter to 210 City/town taxes 510.City/towntaxes 01/01/12 to 12131112 -- 5=1 7 d90 21 t County taxes to s 0.66 1511.county taxes to .212,Assessments to $ 0.00 512.Assessments to S_000 213 to S 0.00 '513.Sch ool taxes 071011/12 to Q6134112 2 i 3,415 67 214 J, 514.Recycling 01101112 to 12/31/12 i 13M 0 215 Y12 ­216 515.Water&Sewer 516.Water&Savor 07/01112 to 10104112• 70M 217 (517. 218, 518, 223.Total Paid bytifor Borrower 5424,000-001 i 520.Total Reduction Amount Due Sallee 300.Cash it Settlement fromito Borrower '6"cub at$e gut t ► son" 301.Gross amount duo from borrower"lio)" $517,523 75 1601 Gross amount due to seller(fine 420) 5507,8 98 302 Less amounts paid byft borrower(One 220) 5424,000X01 602,Less reductions in amount due seller(hoe 520) 5507.898.98 l 303-Cash ;Xifrom Ito Borrower $93,523.751 603.Cash to -X harn S~ The Public Reporting Burden for this collection of informabon is estimated at 35 minutes per response for Wdediing,reviewing,and reporting the data.This agency may not coiled this information,and you are not required to complete this form,unless 4 displays a currently valid OMB controf number.No confidentiality is assured;this disclosure is mandatory.This is designed to provide the parties to a RESPA covered transaction with information during the settlement process All will be hold by settlement agent to be used as noted. Unused funds will be paid to Susquehanna Bank to be applied on loans noted on line,607. Susquehanna I Susquehanna aancshares,Inc. 1826 Good Hope Road Eno(a,PA 17o25 ViA 1ST CLASS MAIL AND CERTIFIED MAIL RETURN RECEIPT REQUESTED November 26, 2012 Peril 91 71,99 9911. 7030 6665 8986 Diagnostics, Inc. ,!Nava K. Nawaz, Guarantor Malik M. Nawaz, Guarantor 6353 Galleon Drive f Mechanicsburg, PA 17050 I i Re; Loans In Original Principal Amounts of$450,000.00,and $250,000.00 By Susquehanna Bank, To Peril Diagnostics, Inc. Dear Ms. Nawaz: T_ This letter is directed to you as an officer of Peril Diagnostics, inc., and as a .guarantor of the above captioned loans. Susquehanna Bank, (the "Lender°) made loans to you.in the original principal amounts of Four Hundred Fifty Thousand Dollars ($40,000.00), and Two Hundred Fifty Thousand Dollars ($250,000.00), respectively. The loan in the original principal amount of $e50,000.()0 evidenced by an SBA Note and two mortgages dated May 11', 2011, and various dOOLmentS relating thereto or I executed in connection therewith (collectively, the "Loan 1 Documents"). I The loan in the original principal amount cf $250,000.00 evidenced by a Promissory Note and two Mortgages, dated October 27, 2011 and various documents relating thereto or executed in connection therewith (collectively, the 'Loan 2 Documents"). The Loan 1 and Loan 2 Documents shall be referred to ,'ollectiVely as the "Loan Documents" between Peril.Diagnostics, Inc., as borrower and Susquehanna Bank, as lender. You are in default on Loan 1 under the Lean D)cuments because you failed to make payments when and as due under the terms the-eof on August 1, 2012 through November 1, 2012. Consequently, the Lender has exercised its right to declare all amounts outstanding under the Loan Documents to be immediately due and payable. The Borrower's obligations to the Lender under the Loan Documents on Loan 2 are due and payable on demand by the Lender whether or not the Borrower is in default. Moreover, the Borrower is in default under the Loan Documems due to its failure to Perll Diagnostics, Inc. Nava K. Nawaz, Guarantor Malik M. NaWaz, Guarantor November 26, 2012 Page 2 make payments when and as due under the Loan Documents. Accordingly, the Lander demands that the Borrower pay its obligations under the Loan Documents immediately. As of November 26, 2012, the balance outstanding under the Loan I Loan Documents is $305,554.68. Interest accrues on the unpaid principal balance at the rate of $49.35 per.day after November 26, 2012. In addition to the above amounts, you are obligated to pay all reasonable attorneys' fees and expenses incurred by the Lender in enforcing the Loan I Documents. As of November 26, 2012, the balance outstanding under the Loan 2 Loan Documents is $252,816.97. Interest accrues on the unpaid principal balance at the rate of $41.67 per day after November 26, 2012. In addition to the above amounts, you are obligated to pay all reasonable attorneys' fees and expenses incurred by the Lender in enforcing the Loan 2 Documents. The Lender hereby demands that you pay the amounts set forth by certified check, cashiers check or wire transfer by Tuesday, December 11, 201,2. Funds should be directed to Susquehanna Bank, 1826 Good Hope Road, Enola, PA 17025,Attn: Liss Painter. Furthermore, liquidation of the collateral, including real property commonly known as 6363 Galleon Drive, Mechanicsburg, PA 17060 and 11922 Bates Court, Oreland Park, IL may take place. Nothing in this letter should be deemed an agreement by the Lender to forbear from enforcing any rights or remedies available to it under the Loan Documents or applicable law. The Lender reserves all of its available rights and remedies. Moreover, acceptance by the Lender of payment of less than the full amount due under the Loan Documents shall not constitute a waiver of the demand for payment of all amounts due, or any of the rights available to the Lender under the Loan Documents or applicable law. Susquehanna Bank Lisa Painter VP, Loan Workout Officer OREO/Workout Department Phone: (717) 724-4605 L E U- Malik M. Nawaz& Nava K. Nawaz(Prose) Peril Diagnostics,Inc. 2013 APR —9 PM 1: 39 5010 Ritter Road,Ste 104 CUMBERLAND CGU.t,j PENNSYLVANIA Mechanicsburg, PA 17055 Telephone(570)394-2776 (PROSE) [NAVA SQUEHANNA BANK, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. K. NAWAZ AKA NAVA NAWAZ CIVIL ACTION -LAW Defendant No. Civil CERTIFICATE OF SERVICE This is to certify that the documents of petition to open judgment have been served to the attorney's office at BARLEY SNYDER,William F.Colby,Jr.Esquire,Keith Mooney, Esquire,Court ID No.46880;206319,50 North Fifth Street,P.O. Box 942, Reading, PA 190603 by certified mail, US Postal Service Article No.7012 3460 0002 1542 5981. It was received&signed by L. Woomer at Barley Snyder on April 5,2013. A copy of the return receipt is attached exhibit"A". Respectfully Submitted Malik M. Nawaz & Nava K.Nawaz Defendant(Prose) • Complete Items 1.2,and S.Also oemp to A.Signature Item 4 if Restricted Deilmy is desked. X. D Agent ■ Print your name and address on the rev C Srf�l /'� g ©Addressee so that we can return the card to yau. ReoWry ted f } G.Date of Delivery ! • Attach this card to the back of the mail or on the front if apace permits, le F. 1. Article Addressed to; 7 D. Is delivery address different from Item 1? ©Yes BARLEY ��t Y 9'" if YES,enter delivery adds ess below: Ct No 50 i rMati ❑ Map J0wWVWd1 stered ❑Patsrn Paceipt for Merot"andnee j C7 insured Main c7 O.O.D. 4, Reatrloted Delivery?(Extra Fes) 13 Yes 2. Article Number - MWMW fromsowcelabel) 7010 3460 0002 1542 5981 Ps Form 3811,February 2004 Domestic Return receipt sozsago2 ea�sao i UNITED STATES POSTAL SERVICE First-Class mail P me&Fees Paid us Permit No.G-10 "Sender: Please print your name, address, and ZIP+4 in this box• MA L1K M - NAOMZ 051 CAA u-1Fo N VP- IWEWA N ICS 0050 r r i t i I , I SUSQUEHANNA BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION—LAW NAVA K. NAWAZ, A/K/A NAVA NAWAZ, Defendant NO. 13-1315 CIVIL TERM IN RE: PETITION TO OPEN/ RELIEF OF JUDGMENT ORDER OF COURT AND NOW, this 18'' day of April, 2013, upon consideration of Defendant's Petition To Open/Relief of Judgment, a Rule is hereby issued upon Plaintiff to show cause why the relief requested should not be granted. RULE RETURNABLE within 20 days of service. BY THE. COURT, Christ lee L. Peck, J. Keith Mooney, Esq. L.,�rley Snyder 50 North Fifth Street P.O. Box 942 Reading, PA 19603-0942 Attorney for Plaintiff -xa Z Z.,.; U M,a K. Nawaz, a/k/a r ' Nava Nawaz Perll Diagnostics 5010 Ritter Road Q rt'C:-, Suite 104 > cn pi Mechanicsburg, PA 17055 rn co yr Defendant, pro Se :rc THE PROTHONOTARY Z,1l3 APR 26 AM o. %6 CUMBERLAND COUNTY PENNSYLVANIA SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 206319 50 North Fifth Street, P.O. Box 942 Reading, PA 19603-0942 (610) 376-6651 Attorney for Plaintiff SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION—LAW NAVA K. NAWAZ, AKA NAVA NAWAZ No. 13-1315 Defendant RESPONSE TO DEFENDANT'S PETITION TO OPEN/RELIEF OF JUDGMENT AND NOW, the Plaintiff, Susquehanna Bank,by and through its attorneys, Barley Snyder LLP, files the following response to Defendant's Petition to Open/Relief of Judgment and states as follows: 1. It is admitted that the Plaintiff made a loan in the amount of Four Hundred Fifty Thousand Dollars ($450,000.00) to Perll Diagnostics, Inc. on May 11, 2011. 2. It is admitted that the Defendant made monthly payments pursuant to the terms and conditions of the Note until the payment due and owing on August 1, 2012. Defendant's payment history is attached hereto as exhibit"A". 3. It is admitted that on or about June 25, 2012, the Defendant sent an e-mail to the Plaintiff in which her intent to sell a property and utilize the proceeds from that sale to "paying down the loan" on SBA loan#4608515009. 3916435-1 1 4. It is admitted that on or about October 5, 2012, that the Plaintiff received a payment pursuant to the Note in the amount of One Hundred Thirty-three Thousand Seven Hundred Five and 99/100 Dollars $133,705.99, and that said amount was in excess of the required monthly installment as set forth in the Note. 5. Denied. Defendant's payment of One Hundred Thirty-three Thousand Seven Hundred Five and 99/100 Dollars $133,705.99, was applied to her account as specified in the Note as follows: " Early payments will not,unless agreed to by Lender in writing,relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due." Furthermore, this was explained to Defendant in an e-mail dated June 27, 2012, in response to his Exhibit"C" and attached hereto as Exhibit`B" and again on August 6, 2012 in an e-mail attached hereto as Exhibit"C". 6. Denied. The Defendant is clearly in default pursuant to the terms and conditions of the Note as set forth in Paragraph 5 above for failing to make payments pursuant with the terms and condition of the Note beginning on November 1, 2012, and monthly thereafter. WHEREFORE, Plaintiff/Respondent request that Defendant/Petitioner's Petition to Open/Relief of Judgment be denied. BARLEY SNYDER By: William F. Colby, Jr., Esquire Keith Mooney, Esquire Attorneys for Plaintiff 3916435-1 3 EXHIBIT "A" Po Perll Diagnostics-Loan Number 10009274530 Original Loan Amount$450,000.00 Date paid/adv Advance Mo Pmt Paid Payment Amt 5/25/2011 $134,532.64 6/1/2011 6/1/2011 $350.94 6/13/2011 $40,000.00 6/27/2011 $50,000.00 7/1/2011 7/1/2011 $350.94 7/5/2011 $75,000.00 7/13/2011 $40,000.00 7/15/2011 $15,000.00 7/26/2011 $20,467.36 8/1/2011 8/1/2011 $2,160.36 9/1/2011 9/1/2011 $2,267.06 10/3/2011 10/1/2011 $2,250.00 11/4/2011 11/1/2011 $2,250.00 12/1/2011 12/1/2011 $5,188.27 1/3/2012 1/1/2012 $5,188.27 2/1/2012 2/1/2012 $5,188.29 3/13/2012 3/1/2012 $5,188.29 4/4/2012 4/1/2012 $5,188.29 5/15/2012 5/1/2012 $5,188.40 8/9/2012 6/1/2012 $5,188.40 9/13/2012 7/1/2012 $5,188.40 10/5/2012 Princ Pmt $133,705.99 Proceeds from sale 10/16/2012 Princ Pmt $3,248.59 Escrow funds from sale 10/30/2012 Princ Pmt $125.00 Escrow funds from sale Demand letter sent 11/26/12-Loan in Default Loan past due for 8/1/2012 pmt EXHIBIT "B" Lisa Painter From: Rosemary Dente Sent: Wednesday,June 27,2412 8:38 AM To: 'Nava Nawaz' Subject: past due account June 1-Peru Diagnostics Hi Nava, Thanks for discussing your business and loan situation during our conversation Tues June 26. As discussed: 1. If/when you obtain an executed contract of sale on the Danville property,(August anticipated)you will forward that to me.The bank will order an appraisal and be involved in the process as all cash proceeds will be paid to the bank at settlement.Pay down of a loan pays down principal only,not interest and does not replace regular monthly payments. 2. To avoid 60 day late status,which is an event of default,you will try to make a payment in next few weeks and keep the loan from default 1 You are working toward resolving the inability of the billing company you hired to collect on your A/R,thus affecting your cash flow.Please let me know when you have resolved this and are moving toward collecting the $100k pending since you feet this is the obstacle right now,not the viability of the business model. I appreciate your statement that you understand the gravity of the situation.It's important that you recognize that the SBA loans you have are granted under the U.S.Federal Government loan program and the bank is governed by rules and regulations as well to administer the loan and it's servicing according to the terms and conditions of the Note and it's requirements. Thanks so much and have a great day. Rosemary Rosemary Dente Vice President SBA Business Barker,NJ SBA Government Lending Susquehanna Sank 2920 Meetinghouse Rd,Cinnaminson,NJ 08077-33271 Mailcode:207-ADMEN Tel,609.3322269 1 Fax:856.786.8527 1 Cell:609.332.2269 Rosemary.Dente(ftusquehanna net I Web:www.susquehanna.net Connect with us: Facgboak I Twitter( YouTu be I B_Qo Confidentiahiy Nottixc This in qil is intended fm the use of iho individual or on;ity to ovhiol)it.is sddfessod,and n:ay contain intarrnaiion'Ohni is- privoogcxl nfk* al.ari;z exempa:from.;Esc!,s sre under a;.riic i�c law. 0 yeti havr recsivrrr,'twf rc rnnivnicotar:in error:oiease noti�r n1.f. irllrr,;d;al.&ly at vhe soove ptrvri&numbar ow e•rasli address and de:iete Jise original r seszagr-%T:ans you. <>e• tr,I:,= ar,d msFr:�r ce F:r^.C;i "3 n;e Cfi'ai'ea virc iqh Piir;feVez:Fir:<tt:ai Se;vic e inc:;a recg±stemd .ouc 'cic�alcr and o qistcre :i dvjsr r.itAirn bar HNFMISIPC,fyrirnCVest is no',afflHai ted vAth Susquehanna 8}nmhates,•nC,itr its r laisa cornpanies,Adiviw-ry£,er`,icz n't,iy Grey be n1lored by I nve{",ent Adviser Pepre-seri:8tives in ronnection pyttl'i an appropriate Phrr-e`tiir@st Advisor r Sia-ice Agreement and disolosurr brochure as provide.t.8acucwps anrS Ivsurance produrts are:Not a deposit"Nat FOIL insu;t-d Nut Insurt-d by any federxt governrriint agency°Not bank guaranteed�May lase.value. From:Nava Nawaz[mailto:nnawazia perlidiagnostics c�oml Sent:Monday,June 25,2012 1:13 PM To:Rosemary Dente Subject:SBA Loan#4608515009 Hi Rosemary, t Thank you for talking to me on the phone about the monthly installment of the SBA loan# 4608515009. 1 appreciate you letting me explain.We have no money now to pay the monthly installment.We are selling our property , 21 Erin Drive, Danville, PA 17821 which the buyers will acquire in August 2012. The proceeds of the property sale will go towards paying down the loan. Please feel free to contact me with any questions. Regards, Nava Nava Nawaz, M.D., F.C.A.P. President and Laboratory Director Peril Diagnostics, Inc. 5010 Ritter Road, Suite 104 Mechanicsburg, PA17055 Ph: 717-691-5888 Cell: 570-394-2776 Fax: 717-691-5551 E-mail: nnawazaperlldiagnostics.com Website: http://www.perlldiagnostics.com/ z EXHIBIT "C" Lisa Painter From: Rosemary Dente Sent: Monday,August 06,2012 10:14 AM To: 'Nava Nawaz(nnawaz @perildiagnostics.com)' Subject: delinquent account- Peril Diagnostics Hi Nava, Good Morning. Thanks for speaking with me just now. As you know,your term loan account remains delinquent and past due fortune 1,July 1 and now Aug.1 You did not make a payment mid July that we discussed during our July 6 meeting. It is my understanding from you today,you will be scanning and sending me a copy of an executed Contract of sale for the Erin Drive,Danville property.The sale price is$505,000.00 and the buyer has obtained financing.You will provide me a copy of that if you can,as well as the contact information of your representative who will be coordinating the legalities of the closing to pay off the liens associated,clear title,etc. You will also be sending me a letter today re this sale and your plans for your account(both term and FLOC)with us. I understand you have negotiated for the equipment leasing company to reduce your payments in half yet leave all the equipment at your business retroactive to May 1. I also understand you have made the decision to eliminate the billing company and take the billing in house eff.Aug.1 As discussed today and in our meeting July 5 and the prior conversation,a sale of assets does not substitute for a principal and interest payment.Proceeds from assets pays down principal on the loan that has the 1'priority position,in your case,the term loan. At 60 days delinquent,the loan is an event of default(which you are in)and at 90 days,it goes into liquidation status. These are the policies of the US Federal Government's Small Business Administration program. Our concern continues to be viability of the business and it's ability to generate revenue that allows for paying of its bills. We are hopeful you can catch up and then make our payments as scheduled and move in a positive direction. I'll be looking for the above-mentioned paperwork. Thanks so much Nava. Rosemary Rosemary Dente Vice President SBA Business Banker,NJ SBA Government Lending Susquehanna Sank 2120 Meetinghouse Rd,Cinnaminson,NJ 08077-33271 Malicode:207-ADMIN Tel-609.332,2269 1 Fax:856.786.8527 1 Cell:609,332.2269 Rosemnayr .Dente susauehanna.net I Web:www.susquehanna.net Connect with us: Faoebook I Twitter I YouTube I Bloc? Cnrilidentiality Notice. 'Ttr s e-aril.iz intended"Or the use a,the individi,?al or entity to wtrich it is a0dress4ed,snit rn2y contain infennabon thaf is wir,;kq,ed;cc-n i e,cl: al.,ard exernpf front disd<n sre tinder 2 i';licable i9 w. if you hrsve received;lit,comntatnic,li:ion in error,=,lets:.notify me !rnrne-diAeiy ai the aDCve:;,,ono nurober or eanaii aM;t esa and delete the.origin.-.#me_sage_I rsan?you. ec :#tics at!d In}ur..'i"produc'_a'at-offered;th otrg7!t--rir.rrUest r it:anC a!S rule as,tnr.. a regist°re:f h+nkcrtdenier a3n i re3i5iercr';r?tt.•si;r;e;t iid:.'',st?t.Mw.mber hS�tRNr'S:Air.!°rJ;Y? Vest f f?L't.85`iSiacG vifh J3•^.•G.f7=1181Sr:ei sencstwies.inc.o':'its fEi32e� .F'a:�:^.gC^f 3EfV Cf;S I`lc'e}r only be 0�?red by lnv'�!Sft;1ani Adviser RapFe�?ienvativetz in cool-,E Li:r;V.'Ith aP'..9ppopriate R,MrVesi Advisory Serv; ACaf8�7i^.1Lrti an'4 1 VERIFICATION Lisa Painter verifies that she is the Loan Workout Officer of Susquehanna Bank, Plaintiff in the within matter, that she is authorized to execute this Verification on its behalf, and that the facts set forth in the within Response to Defendant's Petition to Open/Relief of Judgment are true and correct to the best of her knowledge, information and belief. She understands that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unsworn falsification to authorities. Date: j� Lisa Painter BARLEY SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 206319 50 North Fifth Street, P.O. Box 942 Reading, PA 19603-0942 (610) 376-6651 Attorney for Plaintiff SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NAVA K. NAWAZ, AKA NAVA CIVIL ACTION—LAW NAWAZ No. 13-1315 Defendant CERTIFICATE OF SERVICE I, Keith Mooney, Attorney for Plaintiff, verifies that a true and correct copy of Plaintiff s Reply to Defendant's Petition to Open/Relief of Judgment has been mailed to Nava K. Nawaz aka Nava Nawaz, Defendant, at 5010 Ritter Road, Suite 204, Mechanicsburg, PA 17055, by first class mail,postage prepaid, on the&? day of April, 2013. BARLEY SNYDER By: Keith Mooney, Esquire Attorneys for Plaintiff 3916435-1 3 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF PENNSYLVANIA IN RE: .. Nava K.Nawaz CHAPTER 13 L €J JUL 26 P? 12: 5 Debtor • CUMBERLAND CCU i • v • CASE NO.: 1:13-bk-02367 MYDF NPd1N • Susquehanna Bank Movant • MOTION TO AVOID JUDICIAL LIEN ORDER AVOIDING JUDICIAL LIEN UPON CONSIDERATION OF the Debtors'Motion to avoid,cancel,and release a Judicial Lien,it is hereby ordered and directed as follows: 1. The Judicial Lien held by Susquehanna Bank and entered of record in the County of Cumberland, Pennsylvania,Case No. 13-1315 is hereby avoided,cancelled,and released. 2. The Prothonotary of Cumberland County shall avoid,cancel,and release of record said lien. 3. Further,the Recorder of Deeds in and for the County of Cumberland is directed forthwith to take whatever steps are necessary and appropriate to release,cancel and avoid the within referenced Judicial Lien and remove same from the local judgment index. 4. Susquehanna Bank shall cancel and avoid the judgment entered of record in Cumberland County against the Debtor. By the Court, hil t Cry Banlowty Judge (JK) Dated: July 1, 2013 X53&y7 017373 28307017390046