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HomeMy WebLinkAbout13-2086 Supreme C© "' w ennsylvania COU , fleas For Prothonotary Use Only: C `.. . ��� t Docket No: (jr/ CU LN7� "y County ?5 Y/ �tF C � ...� The information collected on this form is used solely for court administration purposes. This form does not supplement or replace the filing and service of pleadings or other papers as required by law or rules of court. j Commencement of Action: S 19 Complaint ® Writ of Summons n Petition ® Transfer from Another Jurisdiction ® Declaration of Taking E C Lead Plaintiff's Name: Lead Defendant's Name: I Metro Bank,f/k/a Commerce Bank/Harrisburg, NA James W. Hutchinson,Jr.and Cynthia G. Hutchinson T Dollar Amount Requested: Qwithin arbitration limits I Are money damages requested? El Yes 0 No (check one) [ outside arbitration limits 0 j N Is this a Class Action Suit? Yes El No Is this an MDJAppeal? ® Yes F1 No .4 Name of Plaintiff/Appellant's Attorney: Melanie L.Vanderau,Esquire Check here if you have no attorney(are a Self-Represented (Pro Se] Litigant) Nature of the Case: PIace an"X"to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim,check the one that you consider most important. TORT(do not include Mass Tort) CONTRACT(do not include Judgments) CIVIL APPEALS Intentional ©' Buyer Plaintiff Administrative Agencies Malicious Prosecution 0 Debt Collection:Credit Card 0 Board of Assessment E] Motor Vehicle [3 Debt Collection:Other ® Board of Elections Nuisance Dept.of Transportation Premises Liability Statutory Appeal:Other S Q Product Liability(does not include E mass tort) Employment Dispute: SlanderlLibel/Defamation Discrimination C E3 Other: Employment Dispute:Other Zoning Board . , Other: ----- -- Other: o MASS TORT Asbestos N ® Tobacco E] Toxic Tort-DES j ® Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS Toxic Waste ® Other: 0 Ejectment 13 Common Law/Statutory Arbitration ®Eminent Domain/Condemnation Declaratory Judgment Ground Rent Mandamus Landlord/Tenant Dispute Non-Domestic Relations Mortgage Foreclosure:Residential Restraining Order PROFESSIONAL LIABLITY Mortgage Foreclosure:Commercial Quo Warranto 13 Dental ©Partition 0 Replevin ® Legal Quiet Title ©Other: E3 Medical 0 Other: Other Professional: I 3 Updated 11112011 A FILED OF CUB; � f'#�! �: #9 2013 APR 17 P8ERL COUNTY Melanie L. Vanderau, Esquire METTE,EVANS &WOODSIDE Sup. Ct. ID No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg,PA 17110-0950 (717)232-5000 (717) 236-1816(fax) mlvanderau @mette.com Attorneys for Plaintiff METRO BANK, f/k/a Commerce IN THE COURT OF COMMON PLEAS OF Bank/Harrisburg,N.A., CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. C, !11 DOCKET NO. JAMES W. HUTCHINSON, JR. and CYNTHIA G. HUTCHINSON, Defendant 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 the 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 may be 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 ns' important to you. 11 /�# /G�yS } YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. 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 INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY BAR ASSOCIATION 34 S. BEDFORD STREET CARLISLE, PA 17013 TELEPHONE: (717)249-3166 PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT YOU ARE ADVISED THAT THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR ATTEMPTING TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY,PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER,THIS IS AN ATTEMPT TO ENFORCE METRO BANK'S RIGHTS AGAINST COLLATERAL ONLY. 2 METTE, EVANS &WOODSIDE Melanie L. Vanderau, Esquire Sup. Ct. ID No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717)232-5000 (717)236-1816 (fax) mlvanderau@mette.com Attorneys far Plaintiff METRO BANK, f/k/a Commerce IN THE COURT OF COMMON PLEAS OF Bank/Harrisburg,N.A., CUMBERLAND COUNTY,PENNSYLVANIA Plaintiff V. DOCKET NO. JAMES W. HUTCHISON,JR and CYNTHIA G. HUTCHINSON, Defendants COMPLAINT IN MORTGAGE FORECLOSURE Plaintiff,METRO BANK, f/k/a Commerce Bank/Harrisburg,N.A., by its attorneys files this Complaint in Mortgage Foreclosure pursuant to Pa. R.C.P. §1141 et seq., and in support thereof avers the following: Parties 1. Plaintiff,Metro Bank, f/k/a Commerce Bank/Harrisburg, is a Pennsylvania state chartered bank with an address at 3801 Paxton Street, Harrisburg, PA 17111. 3 2. Defendant James W. Hutchinson, Jr. is an adult individual with an address of 414 South York Street,Mechanicsburg,PA 17055. 3. Defendant Cynthia G. Hutchinson is an adult individual with an address of 2312 Mill Road, Mechanicsburg, PA 17055. Jurisdiction & Venue 4. This Court has jurisdiction over this matter pursuant to 42 Pa. C.S.A. §931(a). 5. Venue is proper under 42 Pa. C.S.A. §931(c)because the subject property is in Cumberland County. Background 6. On August 1,2001, Hutch Homes, Inc. ("Borrower") executed a Promissory Note in the original principal amount of Twenty-Five Thousand Dollars ($25,000.00)which Promissory Note was subsequently modified by a Modification Agreement dated November 26, 2002, wherein the principal amount was increased to Seventy-Five Thousand Dollars ($75,000.00). True and correct copies of the Promissory Note and Modification Agreement are attached hereto as Exhibit"A" and collectively referred to as the"Note". 7. Pursuant to the terms of Commercial Guaranties (the "Guaranties") dated August 1,2001,Defendants guaranteed Borrower's obligations under the Note. True and correct copies of the Guaranties are attached hereto as Exhibit"B". 8. Defendants' payment and performance obligations under the Note are secured by an Open-End Mortgage dated August 1, 2001 with Defendants as Grantors in favor of Plaintiff as Lender and recorded on August 9, 2001 in the Cumberland County Recorder of Deeds Office at Book 1730,Page 0847. A true and correct copy of the Open-End Mortgage is attached hereto as Exhibit"C" and made a part hereof(the "Mortgage'). 4 i 9. The real property subject to the Mortgage is 414 South York Street, Mechanicsburg,Cumberland County, Pennsylvania, as more particularly described in the Mortgage(the"Property"). 10. Defendants are the real owners of the Property. 11. The indebtedness evidenced by the Guaranty and secured by the Mortgage is in default. Defendants have not paid the accelerated amount due in full as required by the demand letter dated April 6,2012,mailed to the Defendants, by certified mail. A true and correct copy of the April 6,2012 Demand Letter is attached hereto as Exhibit"D". 12. Notice of such default and Defendants' rights under the Pennsylvania Loan Interest and Protection Law("Act 6")and the Housing Financing Agency Law("Act 91") was provided to Defendants on March 13, 2013, by certified mail. A true and correct copy of such Notice to the Defendants is attached hereto as Exhibit"E"and made a part hereof(the "Notice") 13. As of April 15,2013, the amount due and owing under the Note is $99,420.47, which is computed as follows: Principal $75,714.91 Interest as of April 15,2013 $567.86 Late Fees as of April 15, 2013 $1,288.53 Expenses as of April 15, 2013 $21___849.17 Total $99,420.47 Interest at the rate of$12.62 per day, expenses to accrue. 14. The attorneys' fees set forth above are in conformity with the Mortgage documents and 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 the sale,reasonable attorneys' fees will be charged based on work actually performed. 5 15. To the extent that the personal obligations of the Defendants in connection with the Guaranties have been discharged in Bankruptcy, Plaintiff is only attempting to enforce its lien under the Mortgage, which was not avoided or otherwise discharged in Bankruptcy. COUNT I—MORTGAGE FORECLOSURE 16. The above paragraphs are incorporated herein by reference as if fully set forth. 17. Judgment has not been entered on the Mortgage in any jurisdiction. 18. The Note, Guaranties and Mortgage have not been assigned. 19. Plaintiff is entitled to Judgment in Mortgage Foreclosure. WHEREFORE, Plaintiff respectfully requests that your Honorable Court enter Judgment in Mortgage Foreclosure in its favor and against Defendants in the amount of$99,420.47 plus continuing interest at the rate of$12.62 per diem after April 15, 2013, attorneys' fees, costs and expenses, and authorizing sale of the Real Property by the Sheriff of Cumberland County on such Judgment in Mortgage Foreclosure. Respectfully submitted, METTE, EVANS & WOODSIDE MeUnie L. Yanderau, Esquire Sup. Ct. ID No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 (717)236-1816 (fax) Attorneys for Plaintiff Date: April 16, 2013 6 VERIFICATION I, David Chajkowski,have read the foregoing Complaint in Mortgage Foreclosure and verify that the facts set forth therein are true and correct according to the best of my knowledge, information and belief and that I am authorized to executed this Verification on behalf of the bank. I understand that any false statement made herein is subject to the penalties of 18 Pa. C.S.A. §4904,relating to unsworn falsification to authorities. David Chajkowski,Vice President Asset Recovery Supervisor, Metro Bank Dated: VIS/13 634173v1 f i 1 �) X r� ,5 v 1 PROMISSORY NOTE Vm References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any Rem above containing has been omitted due to text length limitations. Borrower: Hutch Homes,Inc.(TIN.- 25-18926=) Lender: COMMERCE BANKIHARRISSURG NA. 414 South York York Street COMMERCIAL MORTGAGE DEPARTMENT Mechanicsburg,PA 17055 100 SENATE AVENUE CAMP HILL,PA 17011 (717)975-MO Principal Amount: $25,000.00 Initial Rate: 8.750% Date of Note: August 1, 2001 PROMISE To PAY. Hutch Homes,Inc.("Borrower")promises to pay to COMMERCE BANKIHARRISBURG N.A.("Lender ),or order,in lawful money of the United States of America,an demand,the principal amount of Twenty-five Thousand&001100 Dollars($25,000.00)or so much as may be outstanding,together with Interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan Immediately upon Lender's demand. Payment In full Is due Immediately upon Lendees demand. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date,beginning September 1,2001,with all subsequent interest payments to be due an the same day of each month after that Unless otherwise agreed or required by applicable law, payments Will be applied first to accrued unpaid Interest,then to principal,and any remaining amount to any unpaid collection costs and late charges. The annual interest rate for this Note is computed on a 36=60 basis;that Is,by applying the ratio of the annual Interest 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. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The Interest rate an this Note Is subject to change from time to time based on changes In an index which is Lender's Prime Rate(the"Index). This is the rats Lender charges,or would charge,an 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rats available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrowers request The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently Is 7.750%per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 percentage point over the Index,resulting In an Initial rate of 8.75w/.per annum. NOTICE: Under no circumstances will the Interest rate on this Note be more than the maximum rate allowed by applicable taw. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the data of the loan and will not be subject to refund upon early payment(whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not unless agreed to by Lender In writing,relieve Borrower of Borrower's obligation to continua to make payments of accrued unpaid interest Rather,early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked"paid In full',"without recourses",or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lenders 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 malted or delivered to: COMMERCE BANK/HARRISBURG N.A., COMMERCIAL MORTGAGE DEPARTMENT, 100 SENATE AVENUE,CAMP HILL, PA 17011. LATE CHARGE. If a regularly scheduled Interest payment Is 15 days or more late, Borrower Will be charged 5.000%of the regularly scheduled payment. If Lender demands payment of this loan,and Borrower does not pay the loan In full within 15 days after Lender's demand,Borrower also will be charged s.c00%of the sum of the unpaid principal plus accrued unpaid interest. INTEREST AFTER DEFAULT. Upon default,Including failure to pay upon W maturity,the total sum due under this Note will bear interest from the date of acceleration or maturity at the variable Interest rate an this Note. The Interest rate will not exceed the maximum rate permitted by applicable law. DEFAULT. Each of the following shall 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. Borrower 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 loan,extension of credit security agreement purchase or awes agreement,or any other agreement in favor of any other creditor or person that may materially affect any of Borrowers property or Borrower's ability to repay this"Note or perform Bormwees obligations under this Note or any of the related documents. False statements. Any warranty,representation or statement made or furnished to Lender by 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. insolvency. The dissolution or termination of Sorrimer's existence as a going business,the Insolvency of Borrower,the appointment of a receiver for any part of Borrower's property,any assignment for the benefit of creditors, any type of creditor workout, or the commencement of arty proceeding under any bankruptcy or Insolvency laws by or against Borrower. Creditor or Forfeiture Proceeding% 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 loan. This Includes a gamishmant of any of Borrowers accounts, Including deposit accounts,with Lender. However,this Event of Default shall not apply if there Is a good faith dispute by Sommer as to the validity or reasonableness of the claim which Is the basis of the creditor or forfeiture proceeding and If Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender manias or a 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 for 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 liability under,any guaranty of the indebtedness evidenced by this Note. In the event of a death,Lender,at Its option, may, but shall not be required to,permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender,and,In doing so,cure any Event of DefaulL Change In Ownership Any change In ownership of twenty-fiva percent PST.)or more of the common stock of Borrower. ------------- PROMISSORY NOTE (Continued) Page 2 Adverse Change. A material adverse change occurs_in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is Impaired. insecurity. Lender in good faith believes itself insecure. Cure Provisions. if any default,other than a default In payment is curable and I Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve(12) months,it may be cured(and no event of default will have occurred) If Borrower, after receiving written notice from Lender demanding Cure of such default (1) cures the default within fifteen(15) days;or (2) if the cure requires more than fifteen(15) days, immed'latrty Initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps 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 on this Note and ail accrued unpaid interest immediately due,and then Borrower will pay that amount. ATTORNEYS'FEES;EXPENSES. Lender may hire or pay someone else to help collect this Note it Borrower does not pay. Borrower will pay Lender that amount This Includes,subject to any limits under applicable law,Lenders attorneys'fees and Lenders legal expenses,whether or not there 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 pmhbitad by applicable taw,Borrower also wilt pay any court oasts,in addition to all other sums provided by taw. GOVERNING LAW. This Note will be governed by,construed and enforced In accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted 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 Bonrnvees accounts with Lender (whether checking,savings,or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open In the future. However,this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender,to the extent permitted by applicable law,to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL Borrower acknowledges this Note is secured by 2nd mortgage lien on 414 South York Street, Mechanicsburg, Cumberland County, Pennsylvania.Personal guarantees of James W.and Cynthia G.Hutchison. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as waif as directions for payment from Borrower's accounts, may be requested orally or In writing by Borrower or by an authorized person. Lender may,but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either. (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrowers accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records,Including dally computer prink-outs. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower,and upon Borrower's hews,personal representatives,successors and assigns,and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any Inaccurate Information about your account(s)to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address,COMMERCE BANK/HARRISBURG N.A.100 SENATE AVENUE CAMP HiLL,PA 17011 GENERAL PROVISIONS. This Note is payable on demand. The Inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of Its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note,to the extent allowed by law,waive presentment, demand for payment,and notice of dishonor. Upon any change in the terms of this Note,and unless othem-Ase expressly stated in writing,no party who signs this Note,whether as maker,guarantor,accommodation maker or endorser,shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair,fail to realize upon or perfect Lenders security interest in the collateral,and fake any other action deemed necessary 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 of this Note is for any reason determined to be unenforceable,it will not affect the enforceablity 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 ANYTIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED,CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF 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 EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) 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 AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTETO CONFESS JUDGMENT AGAINST BORROWER SHAD.NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TiME AND AT ALL TIMES UNTIL PAYMENT iN FULL OF ALL AMOUNTS DUE UNDER THiS NOTE. BORROWER HEREBY WANES 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 f PROMISSORY NOTE (Continued) Page 3 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 CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: 3' ~ HUTCH HOMES,INC. es W. Htdchlsofiq res ent of Hutch Hcphes,Inc. L'1 USER PRO Va.617.01.0 Cop•Hv1 R W"J 1m Pit.2MI. M RqW.AbKw4sd -PA, %RWPPMLAVMCMLPl =FC TF+=:J PRts Lin RECORD&RETURN TO: C9EDF LEP,DERS SER14 CE A 3FNCY P.Q.SOX 508 `�*�+.:: CHERW H."LL,M.i 0?t0,^3 MODIFICATION AGREEMENT AlM,!!:P11S.REC.C^,-':.RE(,0r nwt1% THIS MODIFICATION AGREEMENT,dated as of 41L day of November,2002,between Hutch Homes,Inc.(hereinafter called"Borrower'l,James W.Hutchison,Jr.,and Cynthia G.Hutchison("the Guarantors"),and Commerce Bank/Harrisburb,N.A.(the`Bank"). RECITALS A. By Note dated August 1,2001,(the"Note'),and Loan Agreement dated August 1,2001(the"Loan Agreement"),the Bank agreed to make a$25,000 loan(the"Loan")to the Borrower. The Loan was evidenced by a Note in the amount of$25,000 dated August 1,2001. The Note was secured by a mortgage on properties owned by Borrowers and known as 414 S.York Street,Mechanicsburg,PA 17055. The Loan is further secured by the personal guarantees of James W.Hutchison,Jr.,and Cynthia G. Hutchison. C. The Borrower and Guarantors have requested,and the Bank has agreed to modify the Loans provided herein. The parties hereto now wish to modify the Loan Documents to evidence such modification. MODIFICATION AGREEMENT FOR and in consideration of the sum of$10.00 cash in hand paid and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged,the parties hereto,intending to be legally bound,hereby agrees as follows: 1. Modification of Note (a) The Note is hereby modified by increasing the amount of borrowing from$25,000 to $75,000. (b) The parties acknowledge,that as of the date of this Agreement,the principal amount outstanding on the Note is currently zero(0). (c) Except as specifically modified hereby,the terms and provisions of the Note are hereby ratified and confirmed and remain in full force and effect. (d) After this Agreement has been fully executed and delivered,the Bank shall place the following legend on the Promissory Note. "THIS NOTE HAS BEEN MODIFIED BY MODIFICATION AGREEMENT DATED AS OF NOVEMBER a(e'2002,AN ORIGINAL COUNTERPART OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE HOLDER OF THIS NOTE". 2. Modification of of Moraine (a) The Mortgage dated August 1,2001 recorded in the Office of the Recorder of Deeds, in and for Cumberland County,Pennsylvania,in the name of James W.Hutchison,Jr.and Cynthia G. Hutchison,for real estate located at 414 South York Street,Mechanicsburg,Pennsylvania, 17055,on August 9,2001 in Book 1730,Pg 0847,is hereby modified by increasing the principal sum of the borrowing from$25,000.00 to$75,000.00. (b) Except as specifically modified hereby,the terms and provisions of the Mortgage are hereby ratified and confirmed and will remain in full force and effect. BOOK 692 PACE 1048 3. Security Agreement. (a) The Security Agreement,executed August 1,2001,is hereby modified to increase the borrowing from$25,000.00 to$75,000.00. (b) Except as specifically modified hereby,the terms and provisions of the Security Agreement are hereby ratified and confirmed and remain in full force and effect. 4. No Release or Satisifaction of Exisitng Loans. The Borrower and the Bank specifically agree and intend that the obligations evidenced by the Note,Mortgage,Security Agreement and the Loan Documents are neither released nor satisfied by this Modification Agreement. 5. Further Assurances.The Borrower hereby covenants and agrees to execute and deliver, or cause to be executed and delivered,and to do or make,or cause to be done or made,upon the reasonable request of the Bank,any and all instruments,papers,deeds,acts or things,supplemental,confirmatory or otherwise,as may be reasonably required by the Bank for the purpose of effecting the modification described herein. 6. Completeness and Modification. This Agreement constitutes the entire agreement between the pales hereto as to the transaction contemplated hereby and supersedes all prior discussions, understandings or agreements between the parties hereto. 7. Successors and Assigns.. This Agreement shall bind and inure to the benefit of the parties hereto and their and their respective successors and assigns. 8. Governing Law. This Agreement and all other instruments referred to herein shall be governed by,and shall be construed according to,the laws of the Commonwealth of Pennsylvania. 9. Guarantors'Consent. The Guarantors,by their signatures set forth below,hereby consent to the increase in the amount of borrowing from$25,000.00 to$75,000.00,and hereby acknowledge that they have reviewed the Disclosure for Confession of Judgement,and the original Guaranty Agreements,will be applicable to the increased borrowing amount. Bom 692 PACE L049 10. Borrower's Acknowledgment. The Borrower hereby acknowledges that the Borrower has reviewed the Disclosure of Confession of Judgment executed upon execution of the original Note in this matter,and hereby specifically agrees that the terms and condition in the Disclosures of the Confession of Judgement are applicable to the Note as modified by this Agreement. Att st: Bo oRer. Hutch Secretary James W. , qs tors: r cu,4tw'('� Vness W.H utchison, 4 i ess a G.Hutchison �_ COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND On this,the 2 fah day of November,2002,before me a Notary Public,the undersigned officer, personally appeared James W.Hutchison,Jr.,President,representative of Hutch Homes,Inc.,who acknowledges he/she is authorized to execute the foregoing instrument,and being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of Hutch Homes, Inc. WITNESS by hand and notarial seal 1 ° My Commission Expires: Noteai Seal ry Pubric H.a;rpder;Twp., Wy Commiulon Expltes Sent,27,2004 t tsmDer,pnsytvartia afatt As� on of Notaries �: .= Bom 692 PAGE 1050 COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND On this,the a19 day of November,2002,before me a Notary Public,the undersigned officer, personally appeared James W.Hutchison,Jr., and Cynthia G.Hutchison,known to me(or satisfactory proven)to be the persons whose names are subscribed to the within instrument,and acknowledged that they executed the same for the purposes therein contained. WITNESS by hand and notarial seal `c My Commission Expires: D. �(► SneeVI �b}p'A V 3Meiz�l%SiII ?Y�£f"',p Ii� ,v ...• :,..,., TWy CchrabBIGh SVL 27 2004 f. 1 '� ��OS9 U}flJD'i3PfE3 4 K y £ •'. , \Tkf `rl YYiY `roN}Y TW rn C7 T.. c, —r; rre I Celli this'}t(o[ (117}1 recov PA III 01.231100"41 and rid aunty 1 A O .fit' �� � •- _ ts'• , BOOK 692 PAGElUS � f l � x �., �� �- _ _ _ _� b COMMERCIAL GUARANI iwo Amb ii-�- N.A References in the shaded area are for Lander's,use pn!t any particular loan or Itern. ,ta , and not limit the applicability of this document to Any item above containing has been omitted due to text length limitations. Borrower. Hutch Homes,Inc.MN: 251892622) Lender COMMERCE BANKIHARRISBURG N.A. 414 South York York Street COMMERCIAL MORTGAGE DEPARTMENT Mechanicsburg,PA 17055 100 SENATE AVENUE CAMP HILL,PA 17011 (717)975-8630 Guarantor: James W.Hutchison,Jr. 414 South York York Street Mechanicsburg,PA 17055 AMOUNT OF GUARANTY. The amount of this Guaranty Is Unlimited. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, James W. Hutchison, Jr. ("Guarantor") absolutely and unconditionally guarantees and promises to pay to COMMERCE BANWHARRISBURG N.A.("Lender")or its order,an demand,In legal tender of the United States of America,the Indebtedness(as that term Is defined below)of Hutch Homes,Inc.(*Borrower")to Lender an the terms and conditions set forth In this Guaranty. Under this Guaranty, the liability of Guarantor Is unlimited and the obligations of Guarantor are continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's Indebtedness to Lender and Is used In the most comprehensive sense and means and includes any and all of Borrowers liabilities,obligations and debts to Lender, now existing or hereinafter incurred or created, including, without limitation, all loans, advances, Interest, costs, debts, overdraft indebtedness, credit card Indebtedness,lease obligations,other obligations,and liabilities of Borrower,or any of them,and any present or future judgments against Borrower,or any of them; and whether any such Indebtedness Is voluntarily or Involuntarily Incurred, due or not due, absolute or contingent, liquidated or untiquidated,determined or undetermined;whether Borrower may be liable Individually or jointly with others,or primarily or secondarily,or as guarantor or surety;whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever,and whether the Indebtedness arises from transactions which may be voidable on account of infancy,insanity,ultra vires,or otherwise. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender,or any notice to Guarantor or to Borrower, and will continue In full force until all Indebtedness Incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so In writing. Guarantor's written notice of revocation must be mailed to Lender,by certified mail,at Lenders address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantors written revocation. For this purpose and without limitation, the term 4new indebtedness" does not Include Indebtedness which at the time of notice of revocation Is contingent unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due, This Guaranty will continue to bind Guarantor for all indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation, Including any extensions, renewals, -substitutions or modifications of the Indebtedness. All renewals, extensions,substitutions, and modifications of the Indebtedness granted after Guarantor's revocation,are contemplated under this Guaranty and,specifically will not be considered to be new Indebtedness, This Guaranty shall bind Guarantor's estate as to Indebtedness created both before and after Guarantor's death or Incapacity,regardless of Lendees actual notice of Guarantor's death. Subject to the foregoing,Guarantor's executor or administrator or other legal representative may terminate this Guaranty In this same manner In which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It Is anticipated that fluctuations may occur In the aggregate amount of Indebtedness covered by this Guaranty,and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness,even to zero dollars($0.00),prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty Is binding upon Guarantor and Guarantor's heirs,SUCCOSSOM and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars($0.00). GUARANTORS AUTHORIZA71ON TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantor's liability under this Guaranty,from time to time- (A) prior to revocation as set forth above,to make one or more additional secured or unsecured loans to Borrower,to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower, (B) to after,compromise,renew,extend,accelerate,or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness,Including Increases and decreases of the rate of Interest an the indebtedness;extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness,arid exchange,enforce,waive,subordinate,Wt or decide not to perfect and release any such security,with or without the substitution of new collateral; (D) to release,substitute, agree not to sue,or deal with any one or more of Borrower's sureties,endorsers,or other guarantors on any terms or In any manner Lender may choose; (E) to determine how,when and what appricaLion of payments and credits shall be made on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, Including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell,transfer,assign or grant participations In all or any part of the Indebtedness;and (N to assign or transfer this Guaranty in whole or hi part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify In any way the terms of this Guaranty, (B) this Guaranty Is executed at Borrower's request and not at the request of Lender, (C) Guarantor has full power,fight and authority to enter Into this Guaranty; (0) the provisions of this Guaranty do not conflict with or result In a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law,regulation,court decree,or order applicable to Guarantor, (E) Guarantor has not and will not without this prior written consent of Lender,sell,lease, assign,encumber,hypothecate,transfer,or otherwise dispose of all or substantially all of Guarantor's assets,or any Interest therein; (F) upon Liander's request Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which cun-enty has been,and all future financial Information which will be provided to Lender is and will be true and coned In all material Non as of the dates the financial information is provided; (G) no material adverse change has respects and fairly present Guarantors financial condr occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantors financial condition; (H) no litigation, claim, Investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor Is pending or threatened; (4 Lender has made no representation to Guarantor as to the creditworthiness of Borrower, and (J) Guarantor has established adequate means of obtaining from Borrower an a continuing basis Information regarding Borrower's financial condition. Guarantor agrees to keep adequately Informed from such means of any facts,events,or circumstances which mInW in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to COMMERMAL GUARANTY (Continued) Page 2 3 uarantor any information or documents acquired by Lender In the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law,Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest,demand,or notice of any kind,Including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral,or notice of any action or nonactlon on the part of Borrower,Lender,any surety,endorser, or other guarantor in connection with the indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor, (D) to proceed directly against or exhaust any collateral held by Lender from Borrower,any other guarantor,or any other person; (17 to give notice of the terms,time,and place of any public or private sale of personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power;or (G) to commit any act or omission of any kind,or at any time, with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (A) any'one action"or"anti-deficiency'law or any other law which may prevent Lender from bringing any action,Including a claim for deficiency,against Guarantor,before or after Lender's commencement or completion of any foreclosure action,either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without iimitatlon,any kiss of rights Guarantor may suffer by reason of any law limiting,qualifying,or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other than payment in full in legal Lander,of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any col lateral for the Indebtedness; (E) any statute of limitations, If at any time any action or suit brought by Lender against Guarantor is commenced, there is outstanding Indebtedness of Borrower to Lender which is not barred by any applicable statute of limitations;or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. if payment Is made by Borrower,whether voluntarily or otherwise, or by any third party,on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower's trustee In bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, reccupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor,or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that,under the circumstances,the waivers are reasonable and not contrary to pubtic policy or law. If any such waiver Is determined to be contrary to any applicable taw or public policy,such waiver shall be effective only to the extent permitted by taw or public policy. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the indebtedness of Borrower to Lender, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes Insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever,to any claim that Leander may now,or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower,through bankruptcy,by an assignment for the benefit of creditors,by voluntary liquidation,or otherwise,the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shalt be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower, provided however,that such assignment shalt be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. if Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees,and Lender is hereby authorized, in the name of Guarantor,from time to time to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as Lender deems necessary or appropriate to perfect,preserve and enforce its rights under this Guaranty. CONFESSION OF JUDGMENT. Guarantor hereby Irrevocably authorizes and empowers any attorney-at-law to appear in any court of record and to confess judgment against Guarantor for the unpaid amount of this Guaranty as evidenced by an affidavit signed by an officer of Lender setting forth the amount then due,attorneys'fees plus costs of suit,and to release all errors,and waive all rights of appeal. If a copy of this Guaranty,verified by an affidavit,shall have been filed in the proceeding, it will not be necessary to file the original as a warrant of attorney. Guarantor waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be invalid,voidable,or void; but the power will continue undiminished and may be exercised from time to time as Lender may elect until ail amounts owing on this Guaranty have been paid in full. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty,together with any Related Documents,constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment Attorneys'Fees;Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses,Including Lender's attorneys'fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty,and Guarantor shall pay the costs and expenses of such enforcement Costs and expenses Include Lender's attorneys'fees and legal expenses whether or not there is a lawsuit,including attorneys'fees and legal expenses for bankruptcy proceedings(Including efforts to modify or vacate any automatic stay or injunction),appeals,and any anticipated post judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty will be governed by, construed and enforced in accordance with federal taw and the laws of the Commonwealth of Pennsylvania. This Guaranty has been accepted by Lender in the Commonwealth of Pennsylvania. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parot evidence is not required to interpret the terms of this Guaranty. Guarantor hereby Indemnifies and holds Lender harmless from all losses,claims, dammars,and cots(Including Lender's attorneys'fees)suffered or Incurred by Lender as a resuft of any breach by Guarantor of the warranties, rep +atiorss and agreements of this paragraph. Cnerl; .. eon. in all cases where thF more than one Borrower or Guarantor,then all we used in this Guaranty in the singular shall be deemied L have been used in the plum, ,ire the context and construction so require;and whe are is more than one Borrower named in this J COMMERCIAL GUARANTY (Continued) Page 3 Guaranty or when this Guaranty is executed by more than one Guarantor,the words'Borrower*and"Guarantor"respectively shall mean all and any one or more'of them. The words "Guarantor," *Borrower,*and'Lender' include the heirs,successors,assigns,and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced,that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore,a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire Into the powers of Borrower or Guarantor or of the officers, directors, partners,managers,or other agents acting or purporting to act on their behalf,and any Loan indebedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law,any notice required to be given under this Guaranty shall be given in writing,and,except for revocation notices by Guarantor,shall be effective when actually delivered,when actually received by tefefacsimlle(unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, ff marled, when deposited in the United States mail, as first class, certffied or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided In the section of this Guaranty entitled"DURATION OF i GUARANTY.' Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties,specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor agrees to keep Lender Informed at all times of Guarantor's current address. Unless otherwise provided by applicable law,if there is more than one Guarantor,any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantors obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall riot constitute continuing consent to subsequent instances where such consent is required and In all cases such consent may be granted or withheld In the sole discretion of Lender. Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor,and upon Guarantor's heirs,personal representatives, successors,and assigns,and shall be enforceable by Lender and its successors and assigns. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used In this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts In lawful money of the United States of America. Words and terms used in the singular shall include the plural,and the plural shall Include the singular,as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Burrower. The word"Borrower"means Hutch Homes,Inc.,and all other persons and entities signing the Note In whatever capacity. Guarantor. The word"Guarantor'means each and every person or_entrty signing this Guaranty,Including without limitation James W.Hutchison, Jr.. Guaranty. The word'Guaranty"means the guaranty from Guarantor to Lender,including without limitation a guaranty of all or part of the Note. Indebtedness. The word'Indebtedness"means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word"Lender'means COMMERCE BANKMARRiSSURG N.A.,its successors and assigns. Related Documents. The words 'Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other Instruments, agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness. CONFESSION OF JUDGMENT. GUARANTOR 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 GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED,CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS,TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT(101/6) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT iN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR 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 GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL.COUNSEL. GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THiS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMERCIAL GUARANTY IS DATED AUGUST 1, 2001. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL QONSTtTUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. i GUARAtR: I Seal) Jq 7 es W.Hututhlson, r.,Individually r COMMERCIAL GUARANTY (Continued) Paige 4 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA } COUNTY OF l �� " 'Y } On this,the � '' day of .20 .,,4. before me - `C 4 the undersigned Notary Publi , personally appeared James W.Hutchison,Jr.,known to me or satisfactory proven)to be the person whose name Is subscribed to the within instrument,and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof,I hereunto set my hand and official seal. 4 n.F.:.•...Y.`.'`'..:f'e:Cr� sa�yrs,^c - f L 4` � i �• Notary Public In and for the State of Co. i��ci"^w1S�.iiC u•..fi'.{'4"G:Kaaw YtbF+LY.�I,MSYV UKR Rp t.m(na,w.a,taal,a6 ow.wenw rni.sW aa.+a.,un iW,am. fit Rte.P—,.t -rA MwnwrrreurwihcYAse=.MC annw at4ra COMMERCIAL GUARANTY edim References in the shaded area are for Lenders use only and do not limit the applicability of this document to any particular loan or item. Any Item above containing*` "has been omitted due to text length limitations, Borrower Hutch Homes,Inc.(TIN. 25,4 892622) Lender: COMMERCE BANK/HARRISBURG N.A. 414 South York York Street COMMERCIAL MORTGAGE DEPARTMENT Mechanicsburg,PA 17055 100 SENATE AVENUE CAMP HILL,PA 17011 (717)9765630 Guarantor: Cynthia G.Hutchison 414 South York York Street Mechanicsburg,PA 17,055 AMOUNT OF GUARANTY. The amount of this Guaranty is Unllmltedl. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Cynthia G. Hutchison ("Guarantor") absolutely and unconditionally guarantees and promises to pay to COMMERCE BANKIHARRISBURG NA("Lender)or Its order,on demand,In legal tender of the United States of America, the Indebtedness(as that term Is defined below)of Hutch Homes,Inc.("Borrower")to Lender on the terms and conditions set forth In this Guaranty. Under this Guaranty, the liability of Guarantor Is unlimited and the obligations of Guarantor are Continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty Includes any and all of Borrower's Indebtedness to Lender and Is used In the most comprehensive sense and means and includes any and all of Borrowers liabilities,obligations and debts to Lender,now existing or hereinafter incurred or created, Including, without limitation, all loans, advances, Interest costs, debts, overdraft Indebtedness, credit card Indebtedness,lease obligations,other obligations,and liabilities of Borrower,or any of them,and any present or future Judgments;against Borrower,or any of them; and whether any such Indebtedness.Is voluntarily or Involuntarily Incurred, due or not due, absolute or contingent liquidated or unlIquIdated,determined or undetermined;whether Borrower may be liable indivildually or Jointly with others,or primarily or secondarily,or as guarantor or surety;whether recovery an the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever,and whether the Indebtedness arises from transactions which may be voidable on account of infancy,insanity,ultra vIres,or otherwise. DURATION OF GUARANTY. This Guaranty will take affect when received by Lender without the necessity of any acceptance by Lender,or any notice to Guarantor or to Borrower,and will continue In full force until all Indebtedness Incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantors other obligations under this Guaranty shall have been performed In to. It Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guaranitor's written notice of revocation must be mailed to Lender,by certified mail,at Lender's address listed above or such other place as Lander may designate In writing. Written revocation of this Guaranty will apply only to advances or now Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term 'new Indebtedness' does not Include Indebtedness which at the time of notice of revocation Is contingent unliquidated, undetermined or riot due and which later'becomes absolute, liquidated, determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness Incurred by Borrower or committed by Lender prior to receipt of Guarantors written notice of revocation, including any extensions, renewals,substitutions or modifications of the Indebtedness. Alt renewals, extensions,substitutions,and modifications of the Indebtedness granted after Guarantors revocation, are contemplated under this Guaranty and, specifically will not be considered to be now Indebtedness. This Guaranty shall bind Guarantors estate as to Indebtedness created both before and after Guarantors death or Incapacity,regardless of Landers actual notice of Guarantors death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lander receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It Is anticipated that fluctuations may occur In the aggregate amount of Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions In the amount of Indebtedness,even to zero dollars($0.00),prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs,successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars($0.00}. GUARANTOR'S AUTHORIZATION To LENDER. Guarantor authorizes Lender, either before or after any revocation herEK)f, without notice or demand and without lessening Guarantor's liability under this Guaranty,from time to time: (A) prior to revocation as set forth above,to make one or more additional secured or unsecured loans to Borrower,to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower, (13) to after,compromise,renew,extend,accelerate,or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, Including Increases and decreases of the rate of Interest on the Indebtedness;extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness,and exchange,enforce,waive,subordinate,fall or decide riot to perfect,and release any such security,with or Without the substitution of new collateral; (0) to release, substitute,agree not to sue,or deal with any one or more of Borrower's sureties, endorsers,or other guarantors an any terns or In any manner Lander rnay choose: (E) to determine how,when and what application of payments and credits shall be made an the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, Including without Ilmiltation, any nor4udlcfal safe permitted by the terms of the controlling security agreement or deed of trust as Lender In its discretion may detenrine, (G) to sell,transfer,assign or grant participations In all or any part of the Indebtedness;and (H) to assign or transfer this Guaranty in whole or In part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lander that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify In any way the terms of this Guaranty; (B) this Guaranty Is executed at Borrowers request and not at the request of Lander, (C) Guarantor has full power,right and authority to enter Into this Guaranty; (0) the provisions of this Guaranty do not conflict with or result In a default under any agreement or other Instrumerd binding upon Guarantor and do not result in a violation of any law,regulation,court decree or order applicable to Guarantor, (E) Guarantor has not and will not,without the prior written consent of Lander,sell,lease,assign,encumber,hypothecate,transfer,or otherwise dispose of all or substantially all of Guarantor's assets,or any Interest therein; (F) upon Lander!s request Guarantor will provide to Lender financial and credit Information In form acceptable to Lander, and all such financial Infbirnation which currently has been,and all future financial information which will be provided to Lender Is and will be true and correct In all material respects and fairly present Guarantor's financial condition as of the dates the financial Information Is provided; (G) no material adverse change has occurred In Guarantors financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guararylor's financial condition; (H) no litigation, claim, Investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (Q Lander has made no representation to Guarantor as to the creditworthiness of Borrower,and (J) Guarantor has established adequate means of obtaining from Borrower an a continuing basis information regarding Borrowers financial condition. Guarantor agrees to keep adequately Informed from such means of any facts,events,or circumstances which might In any way affect Guarantors risks under this Guaranty, and Guarantor further agrees that Lander shall have no obligation to disclose to COMMERCIAL GUARANTY (Continued) Page 2 �uararrtor any Information or documents acquired by Lander in the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law,Guarantor waive a any right to require Lander (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment� protest,demand,or notice of any kind,Including notice of any nonpayment of the indebtedness or of any nonpayment related to any collateral,or notice of any action or nonaction an the part of Borrower,Lander,any surety,endorser, or other guarantor In connection with the Indebtedness or in connection with the creation of now or additional loans or atifigatlans; (C) to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor, (D) to proceed directly against or exhaust any collateral held by Lender from Borrower,any other guarantor,or any other person; (E) to give notice of the terms,time,and place of any public or private"a of personal property security held'by Lander from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Landees power,or (G) to commit arty act or ornisslon of any kind,or at any time,with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (A) arry"one action'or'anti-deficiency' law or any other law which may prevent Lander from bringing any action,Including a claim for deficiency,against Guarantor,before or after Lander's commencement or completion of arry foreclosure action,either judicially or by exercise of a power of sale; (B) any election of remedies by Lander which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement,Including Without lirnitaflon,any less of fights Guarantor way suffer by reason of any law limiting,qualifying,or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other than payment In full In legal tender,of the Indebtedness; (D) arry right to claim discharge of the Indebtedness on the basis of unjustified Impairment of any collateral for the Uxlebtedness; (E) any statute of limitations, it at any time any action or suit brought by Lender against Guarantor Is commenced, there is outstanding Indebtedness of Borrower to Lander which is not barred by any applicable statute of limitations;or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower,whether voluntarily or otherwise, or by any third party,on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for ft purpose of the enforcement of this Guaranty. Guaranior ftirther waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor,or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each at the waivers set forth above Is made with Guarantor's full knowledge of its significance and consequences and that,under the circumstances,the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be con"to any applicable law or public policy,such waiver shall be effective only to the extent permitted by law or public policy. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acqdre against Borrower, whether or not Borrower becomes Insolvent Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever,to any claim that Lender may now or hereafter have against Borrower. In the event of Insolvency and consequarit liquidation of the assets of Borrower,through bankruptcy,by an assignment for the beneitt of creditors,by voluntary liquidation,or otherwise,the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the indebtedness of Borrower to Lander. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee In bankruptcy of Borrower, provided however, that such assignment shall be effective only for the purpose of assuring to Lander full payment in legal tender of the Indebtedness. If Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lander. Guarantor agrees,and Lender Is hereby authorized, in the name of Guarantor, from time to time to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as LaMar deems necessary or appropriate to perfect preserve and enforce its rights under this CONFESSION OF JUDGMENT. Guarantor hereby Irrevocably authorizes and empowers any attomay-at-law to appear In any court of record and to confess judgment against Guarantor for the unpaid amount of this Guaranty as evidenced by an affidavit signed by an officer of Lander setting forth the amount then due,attorneys!fees plus costs of suit,and to release all errors,and waive all rights of appeal. If a copy of this Guaranty,verified by an affidavit;shall have been filed in the proceeding, it will not be necessary to file the original as a warrant of attorney. Guarantor waives the right to arry Stay of execution and the benefit of all exemption laws now or hereafter in affect. No single exercise of the foregoing warrant and power to confess judgment wig be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be Invalid,voidable, or void; but the power will continue undiminished and may be exercised from time to time as Lander may elect until all amounts;owing an this Guaranty have been paid In tug. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty,together with any Related Documents,constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendmerd to this Guaranty shall be effective unless given In writing and signed by ft party or parties sought to b'e charged or bound by the alteration or amendment Attorneys'Fem;Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses,Including Landees attorneys'fees and Landers legal expenses,Incurred In connection with the enforcement at this Guaranty. Lender tray hire or pay someone also to help enforce dids Guaranty,and Guarantor shall pay the costs and expenses of such enforcement Costs and expenses include Landees attorneys'fees and legal expenses whether or not there is a lawsuit�Including attorneys'few and legal expenses for bankruptcy proceedings Cincluding efforts to modify or vacate any automatic stay or injunction),appeals,and any anticipated post-judgment collection services, Guarantor also shall pay all court costs and such additional fees as may be directed by the court Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty wHI be governed by, conatnued arid enforced In accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Guaranty has bow accepted by Lander in the Commonwealth of PennWvanla. Integration. Guarantor liurther agrees that Guarantor has read and fully understands the terms of this Guaranty, Guarantor has had the opportunity to be advised by Guarantoes attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's Intentions and parol evidence is not required to interpret the tarms of this Guaranty. Guarantor hereby Wernniftes and holds Lander harmless from d losses,claims, damaM and costs(including Landees attorneys,fees)suffered or Incurred by Lander as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. Interpretatiom In all cases where th more than one Borrower or Guarantor,then all wr,--*-used In this Guaranty in the singular shall be deemed to have been used in the plum oere the context and construction so require;and wh ere is more than one Borrower named in this -- COMMERCIAL GUARANTY (Continued) Page 3 Guaranty or when this Guaranty is executed by more than one Guarantor,the words'Sorrower'and'Guarantor'respectively shall mean an and any one or more of them. The words'Guarantor,' 'Borrower,"and "Lander'include the heirs,successors, assigns,and transferees of each of them If a court finds that any provision of this Guaranty lariat valid or should not be enforced,that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore,a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it Is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners,managers,or other agents acting or purporting to act on their behalf,and any Loan indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law,any notice required to be given under this Guaranty shall be given In writing,and,except for revocation notices by Guarantor,shall be effective when actually delivered,when actually received by telefacsimle(unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, If mailed,when deposited In the United States mail,as first class, certified or registered coal postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be In writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY.' Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties,specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor agrees to keep Lender Informed at all tunes of Guarantor's current address. Unless otherwise provided by applicable law,If there is more than one Guarantor,any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lander shall not be deemed to have waived any rights under this Guaranty unless such waiver is given In writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a walver of Lender's right othenuisa to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender In any instance shall not constitute continuing consent to subsequent Instances where such consent Is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor,and upon Guarantor's heirs,personal representatives, successors,and assigns,and shall be enforceable by Lender and is successors and assigns. DEFINITIONS. The following capitalized words and terns shall have the following meanings when used In this Guaranty. Unless specifically stated to the contrary,all references to dollar amounts shall mean amounts In lawful money of the United States of America. Words and terms used In the singular shall'include the plural,and the plural shall Include the singular,as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word"Borrower'means Hutch Homes,Inc.,and all other persons and entities signing the Note In whatever capacity. Guarantor. The word"Guarantor'means each and every person or entity signing this Guaranty,Including without limitation Cynthia G.Hutchison, Guaranty. The word"Guaranty"means the guaranty from Guarantor to Lender,including without limitation a guaranty of all or part of the Note. Indebtedness. The word'Indebtedness"means Borrower's Indebtedness to Lender as more particularly described In this Guaranty. Lender. The word"Lender'means COMMERCE BANK/HARRISBURG N.A.,its successors and assigns. Related Documents. The words 'Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of husk, security deeds, collateral mortgages, and all other instruments, agreements and documents,whether now or hereafter existing,executed in connection with the indebtedness. CONFESSION OF JUDGMENT. GUARANTOR 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 GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED,CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST,LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, 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 EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THiS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT, THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTiL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THiS GUARANTY. GUARANTOR HEREBY WANES ANY RIGHT GUARANTOR 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 GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMERCIAL GUARANTY IS DATED AUGUST 1, 2001. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY iS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: ,fir:, el (Seal) CyntyJia G.Hutchison,Individually k COMMERCIAL GUARANTY page 4 (Continued) INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA SS COUNTY OF — day f �{- 20 Q ( before me On this,the the undersigned Notary ubfic, personalty appeared Cynthia G. Hutchison, known to me (or satisfactorily proven)to be the person whose name Is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof,I hereunto set my hand and official seal ! [1 :y,::u•',.�.rr.�i,l A?t<C:',ry,4 •:nom' R j}- •i., Notary Public in and for the State of _ rva l/,di lIIO 1-A4 Vs L17A,Ad OW./clad Ra1d�edYlse he.tMy,pYL M1 RO&P " -M MIMIMPPC1Py1NGFµp,pgiC 7RID10►RID Y � J �6-77 ;OR aF� tnN TO., ENr iS- -'ACEAGENW F 3C Ps 7!T.Gug &I fj 08003 0 13 r:!,�-t 1 r -,.RECORD** DEES X�t LA tl WH 43 ECO 010 B � I 1RECOM&RERM T* I -R . 0 A�g E� .1, CrAWLENMBSERVICEACAM 4 E 4:.tLwP 7 1 RCLSOX15M CMRY HM NJ COON Nft PUEL REC.DOIM RECORDING SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ON OPEN - END MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS MORTGAGE dated August 1, 2001, Is made and executed between James W. Hutchison, Jr.; and Cynthia G. Hutchison, whose address is 414 South York York Street, Mechanicsburg, PA 17065 (referred to below as nGrantor") and COMMERCE BANKIHARRISBURG N.A., whose address is 100 SENATE AVENUE, CAMP HILL, PA 17011 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration,Grantor grants,bargains,sells,convoys,assigns,transfers,releases,confirms and mortgages to Lender all of Grantor's right;tits,and interest In and to the following described real property,together vi(M all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alloys, passages, and ways: all easements, rights of way, afl liberties, privileges, tenements,hereditannents,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 dights, royardes, and rofits relating to the real prcgerty, includin Itation all minerals oll gas geothermal and similar matters, I _g without limi (ti Real Pioperty")liocated in Cumberlan County, Commonwealth of PenRsifvinla: See Exhibit "An, which is attached to this Mortgage and made a part of this Mortgage as If fully set forth herein. The Real Property or its address is commonly known as 414 South York Street, Mechanicsburg, PA 17055. REVOLVING LINE OF CREDIT. Specifically, In addition to the amounts specified In the Indebtedness definition,and without limitation,this Mortgage secures a revolving line of credit;which obligates Lender to make advances to Borrower unless Borrower falls to comply with all the terms of the Note. Grantor presently assigns to Lender all of Grantors right,title,and interest in and to all present and future leases of the Property and all Rents fromthe Property. In addifion,Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. 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 ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS,AND THIS MORTGAGF- THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of any"one action"or"ontlwdeficiency'law,or any other law which may prevent Lender from bringing any action against Grantor,including a claim for deficiency to the extent Lender Is otherwise entitled to a claim for deficiency,before or after Landes commencement or completion of any foreclosure action,either judicially or by exercise of a power of sale� GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that (a)this Mortgage Is executed at Borrower's request and itot at the request of Lender, (b)Grantor has the full power,right and authority to enter into this Mortgage and to hypothecate the Property; (c)the provisions of this Mortgage do riot conflict wrd%or result In a default under arry agreement or other Instrument binding upon Grantor and do not result in a violation of any law, regulation,court decree or order applicable to Grantor, (d) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrowees financial condition;and (e) Lender has made no representation to Grantor about Borrower(including without limitation the creditworthiness of Borrower). PAYMENT AND PERFORMANCE. Except as otherwise provided In this Mortgage, Borrower shall pay to Lender all Indebtedness secured by this mortgage as it becomes due,and Borrower and Grantor shall strictly perform all Borrowees and Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Um Until Default Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property;and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property In tenantable condition and promptly perform all repairs,replacements,and maintenance necessary to preserve its value. Compliance With Environmental Lavm Grantor represents and warrants to Lender that (1) During the period of Grantoes ownership of the Property, there has been no use, generation, manufacture. storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of,or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender In writing, (a) any broach or violation of any Environmental Laws, (b) wry use, generation,manufacture,storage,tivalmaint,disposal, release or threatened release of arty Hazardous Substance on,under,about or from the Property by any prior owners or occupants of the Property,or (c) any actual or threatened litigation or claim of arty kind by any person relating to such maftrs; and (3) Except as previously disclosed to and acknowledged by Lender In writing, (a) neither Grantor nor any tenant contractor, agent or other authorized user of the Property shall usej generate, manufacture, store,teat dispose of or release any Hazardous C BX 1 7301f;VD847 MORTGAGE (Continued) Page 2 Substance on,under,about or from the Property;and (b) any such activity shall be conducted In compliance with all applicable federal,state, and local laws,regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense,as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any Inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence In Investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution In the event Grantor becomes liable for cleanup or other costs under any such laws;and (2) agrees to indemnify and hold harmless Lender against any and all claims,losses,liabilities,damages,penalties,and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage,including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property,whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause,conduct or permit any nuisance nor commit,permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing,Grantor will not remove,or grant to any other party the right to remove,any timber,minerals(including oil and gas),coal,clay,scoria,soil,gravel or rock products without Lender's prior written consent, Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements,Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shalt promptly comply with all laws,ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, Including without limitation, the Americans With Disabilities Act Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's Interests In the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender,to protect Lender's Interest. Duty to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts,In addition to those acts set forth above in this section,which from the character and use of the Property are reasonably necessary to protect and preserve the Property. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due(and In all events prior to delinquency)all taxes,payroll taxes,special taxes,assessments,water charges and sewer service charges levied against or on account of the Property,and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage,except for those liens specifically agreed to in writing by Lander,and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax,assessment,or claim in connection with a good faith dispute over the obligation to pay,so tong as Lender's interest in the Property is not jeopardized. If a lien arlses or is filed as a result of nonpayment,Grantor shalt within fifteen (15)days after the lien arises or,if a lien Is filed,within fifteen(15)days after Grantor has notice of the fling,secure the discharge of the lien,or if requested by Lender,deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys'fees,or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest,Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished In the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall rictify Lender at least fifteen(15)days before any work Is commenced,any services are furnished,or any materials are supplied to the Property,If any mechanic's lien,materialmen's lien,or other lien could be asserted on account of the work,services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cast of such Improvements. K PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shalt 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. Grantor shall also procure and maintain comprehensive general liability insurance in'such coverage amounts as Lender may request with Lender being named as additional insureds in such liability Insurance policies. Additionally,Grantor shall maintain such other insurance,Including but not limited to hazard,business Interruption and boiler insurance as Lender may require. Policies shall b�eiR'6}�'s4iipstii`tiCl:coinpaiveswand In such form as may be reasonably acceptable to Lender. Grantor shalt deliver to Lender certificates of copaggft ile �IclsltMp ontaining a stipulation that coverage will not be cancelled or diminished without a minimum of ten(10)days'prior written noticq�te L.endpr;,and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shalt' :_,qr}on or§erirentp 4vi¢i � 1 verage in favor of Lender will not be impaired in any�Y by any act,omission or default of Grantor a< ._" any rsdfi.,§ rte[ftteR4",p�3 be located in an area designated by the Director of the Federal Emergency Management Agency as a special igaA;�l tr�?3T agrees to obtain and maintain Federal Flood Insurance, if available, within its 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. Apr.:Im ton of Proceeds. Grantor phyliilromptly nottly Lender of any loss or damage to the Property. i.ender may make proof of loss if Gtr fails to d6 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 Propery If Lender elects to apply the proceeds to restoration and repair,Grantor shall repair or replace the K 0 `' MORTGAGE (Continued) Page 3 damaged, or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds whA have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, If any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness,such proceeds shall be paid to Grantor as Grantor's Interests may appear. Unexpired Insurance at Sale. Any unexpired insurance shall Inure to the benefit of,and pass to,the purchaser of the Property covered by this Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage,or at any foreclosure sale of such Property. LENDER'S EXPENDITURES. It any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents,including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents,Lander on Grantor's behalf may(but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims,at any time levied or placed on the Property and paying all costs for insuring,maintaining and preserving the Property. All such expenditures Incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option,will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable Insurance policy;or (2) the remaining term of-the.Note;or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. Such right shall be in addition to ail other rights and remedies to which Lander may be entitled upon Default. Grantors obligation to Lander for all such expenses shall survive the entry of any mortgage foreclosure Judgment. WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that (a)Grantor holds good and marketable title of record to the Property in fee simple,free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title Insurance policy,title report,or final title opinion issued In favor of,and accepted by,Lender in connection with this Mortgage,and (b)Grantor has the full right,power,and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above,Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. in the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice,and Grantor will deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantors use of the Property complies with all existing applicable laws, ordinances,and regulations of governmental authorities. Survival of Representations and Warranties. All representations,warranties,and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage,shall be continuing in nature,and shall remain in full force and effect until such time as Borrowers Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding in condemnation Is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal patty In such proceeding,but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Its own choice,and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property Is condemned by eminent domain proceedings or by any proceeding or purchase In lieu of condernnation,Lender may at its election require that ail or any portion of the net proceeds of the award be applied to the indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs,expenses,and attorneys'fees incurred by Lander in connection with the condemnation. IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,fees and charges are a part of this Mortgage: Current Taxes, Fees and Changes. Upon request by Lender, Grantor shall execute such documents In addition to this Mortgage and take whatever other action Is requested by Lender to perfect and continue Lenders lien on the Real Property. Grantor shall reimburse Lender for all taxes,as described below,together with all expenses incurred in recording,perfecting or continuing this Mortgage,Including without limitation all taxes,fees,documentary stamps,and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage, (2) a specific tax on Borrower which Borrower is authorized or required to deduct from payments on the indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note;and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage,this event shall have the same effect as Default,and Lender may exercise any or all of its available remedies for Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent,or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lander cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures,and Lender shalt have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Serenity interest Upon request by Lender,Grantor shall execute financing statements and take whatever other action is requested by Lender to perfect and continue Lenders security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses Incurred in perfecting or continuing this security interest. MORTGAGE (Continued) Page 4 Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property In a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three(3)days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which Information concerning the security interest granted by this Mortgage may be obtained(each as required by the Uniform Commercial Code)are as stated on the first page of this Mortgage. FURTHER ASSURANCES;ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any tire,and from time to time,upon request of Lender, Grantor will make,execute and deliver,or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate,any and all such mortgages, deeds of trust,security deeds,security agreements,financing statements,continuation statements,instruments of further assurance,certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable In order to effectuate, complete, perfect, continue,or preserve (1) Borrower's and Grantor's obligations under the Note,this Mortgage, and the Related Documents,and (2) the liens and security Interests created by this Mortgage on the Property,whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing,Grantor shall reimburse Lender for all costs and expenses Incurred in connection with the matters referred to in this paragraph. Additional Authorizations. If Grantor faits to do any of the things referred to in the preceding paragraph,Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes,Grantor hereby irrevocably authorizes Lender to make,execute,deliver,file,record and do all other things as may be necessary or desirable,in Lender's sole opinion,to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. if Borrower pays all the Indebtedness when due,and otherwise performs all the oUlgations 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. DEFAULT. Default will occur If payment in full Is not made Immediately when due. RIGHTS AND REMEDIES ON DEFAULT. Upon Default and at any time thereafter,Lender,at Lender's option,may exercise any one or more of the following rights and remedies,in addition to any other rights or remedies provided by law. Accelerate Indebtedness. Lender shall have the right at it option,after giving such notices as required by applicable law,to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property,Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right,without notice to Borrower or Grantor,to take possession of the Property and,with or without taking possession of the Property,to collect the Rents,including amounts past due and unpaid,and apply the net proceeds,over and above Lender's costs,against the indebtedness. In furtherance of this right Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender,then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof In the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lenders demand shall satisfy the obligations for which the payments are made,whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person,by agent,or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property,with the power to protect and preserve the Property,to operate the Property preceding foreclosure or sale,and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure, Lender may obtain a judicial decree foreclosing Grantor's Interest in all or any part of the Property. Possession of the Property. For the purpose of procuring possession of the Property,Grantor hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere,as attorney for Lender and all persons claiming under or through Lender, to sign an agreement for entering in any competent court an amicable action in ejectment for possession of the Property and to appear for and confess judgment against Grantor,and against all persons claiming under or through Grantor, for the recovery by Lender of possession of the Property,without any stay of execution,for which this Mortgage,or a copy of this Mortgage verified by affidavit,shall be a sufficient warrant;and thereupon a writ of possession may be issued forthwith,without any prior writ or proceeding whatsoever. Nonjudlcial Sale. If permitted by applicable law,Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by non-judicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. if Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor,Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Borrower and Grantor hereby waives any and ail right to have the Property marshalled. In exercising its rights and remedies,Lender shall be free to sell all or any part of the Property together or separately,in one sale or by sepafate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice a$Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale.of the Personal Property or of the time after which any private sale or other Intended disposition of the Personal Property is to be made. Unless otherwise required by applicable taw, reasonable notice shall mean notice given at least ten(10)days before the time of the sale or disposition. MORTGAGE (Continued) Page 5 Election,of Remedies. Election by Lender to pursue any remedy shell not exclude pursuit of any other remedy, and an election to make expMdrtures'or to take action to perform an obligation of Grantor under this Mortgage,after Grantor's failure to perform,shall not affect Lender's right'to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rights and remedies available to Lender following Default,or in any way to limit or restrict the rights and ability of Lender to proceed directly against Grantor and/or Borrower and/or against any other co-maker,guarantor,surety or endorser and/or to proceed against any other collateral directly or indirectly securing the Indebtedness. 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 attomeys'fees at trial and upon any appeal. Whether or not 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 Note 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. NOTICES. Unless otherwise provided by applicable law,any notice required to be given under this Mortgage shall be given in writing,and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier,or,H mailed,when deposited in the United States.mail,as first class,certified or registered mail postage prepaid,directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage and notices pursuant to 42 Pa. C.S.A. Section 8143, et seq., shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes,Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law,if there is more than one Grantor,any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage,together with any Related Documents,constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the afteration or amendment Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. 'Net operating income'shall mean all cash receipts from the Property less all cash expenditures made In connection with the operation of the Property. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by, construed and enforced 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. Joint and Several Liability. All obligations of Borrower and Grantor under this Mortgage shall be joint and several,and all references to Grantor shall mean each and every Grantor,and all references to Borrower shall mean each and every Borrower. This means that each Borrower and Grantor signing below is responsible for all obligations in this Mortgage. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent at Lender is required under this Mortgage,the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lander. Severablllty. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal,invalid,or unenforceable as to any person or circumstance,that finding shall not make the offending provision Illegal, Invalid, or unenforceable as to any other person or circumstance. it feasible,the offending provision shall be considered modified so that it becomes legal,valid and enforceable. If the offending provision cannot be so modified,it shall be considered deleted from this Mortgage. Unless otherwise required by law,the Illegality,invalidity,or unenforceabirdy of any provision of this Mortgage shall not affect the legality,validity or enforceablity of any other provision of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender In any capacity,without the written consent of Lander. Successor Interests. The terms of this Mortgage shall be binding upon Grantor,and upon Grantor's heirs,personal representatives,successors, and assigns,and shall be enforceable by Lender and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. DEF1Ni1'IONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall Include the plural,and the plural shall include the singular,as the context may require. Words and terms not otherwise defined In this Mortgage shad have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word"Borrower,means Hutch Homes,Inc.,and all other persons and entities signing the Note In whatever capacity. Default The word'Default"means the Default set forth in this Mortgage in the section titled"Default". Environmental Laws. The words'Environmental Laws'mean any and all state,federal and local statutes,regulations and ordinances relating to the protection of human health or the environment,including without limitation the Comprehensive Environmental Response,Compensation,and Liability Act of 1980,as amended,42 U.S.C.Section 9601,et seq.('CERCLA°),the Superfund Amendments and Reauthorization Act of 1986,Pub. L No. 99-499("SARA°),the Hazardous Materials Transportation Act,49 U.S.C.Section 1801,et seq.,the Resource Conservation and Recovery 730FIG 51 MORTGAGE (Continued) Page 6 Act,42 U.S.C.Section 6901,et seq.,or other applicable state or federal laws,rules,or regulations adopted pursuant thereto. Grantor. The word"Grantor"means James W.Hutchison,Jr.;and Cynthia G.Hutchison. Hazardous Substances. The words'Hazardous Substances"mean materials that,because of their quantity,concentration or physical,chemical or infectious characteristics,may cause or pose a present or potential hazard to human health or the environment when improperly used,treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances' are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or fisted under the Environmental taws. The term'Hazardous Substances" also includes,without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word'Improvements"means all existing and future-improvements, buildings,structures,mobile homes affixed on the Real Property,facilities,additlens,replacements and other construction on the Real Property. Indebtedness. The word"Indebtedness"means all principal,interest,and other amounts,costs and expenses payable under the Note or Related Documents,together with all renewals of, extensions of, modifications of,consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage,together with interest on such amounts as provided in this Mortgage. The liens and security interests created pursuant to this Mortgage covering the indebtedness which may be created in the future shall relate back to the date of this Mortgage. Lender, The word"Lender"means COMMERCE BANKIHARRISBURG N.A.,its successors and assigns. Mortgage. The word"Mortgage"means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated August 1, 2ao1, in the original principal amount of $25,000.00 from Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement 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. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profrts,and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES"RAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE 7S 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. G OR: x 1rL-„�----^- Seary 7c i .",1. � * e;a j (sea J as W.HutchiscK Jr.,lhdlvldually cynt4jh G.Hutchison,Individually CERTIFICATE OF RESIDENCE 1 hereby certify,that the precise address of the mortgagee,COMMERCE BANKIHARRISBURG NA.,herein Is as follows: COMMERCIAL MORTGAGE DEPARTMENT,100 SENATE AVENUE,CAMP HILL,PA 17011 Attomey orAgent forMartowae MORTGAGE (Continued) Page 7 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY OF akmk)w(aa )SS On this,the day of 'AtAU9 .20 0 t .before me the undersigned Notary Public, persdnally appeared James W. Hutchison, Jr. and Cynthia G. Hutchison, 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 contained. in witness whereof,I hereunto set my hand and official seal. - 91 "j Ie- Public In and for the—tZ UNOtary PU State of M3 -0, 1" A L.sm pm L.*U V.,&17AI.M Cyr,W.,WW A—W 306—k Ina 1➢ .=1. Aft NOW P-.,VA •PA KWWP914MtWXrAPtWMF0 711-iR-m-19 LOOM SERMCEAGOW P.0.Box SIMI CHERRY IHNJ.NJ 08" XM PM RM 0=RECORONG BK1730PGO853 NIS :''{:�:till;: � ' .•.i•:::�':•.:' ALLTIIAT CERTAIPl piece or parcel of Ground situate in the Borough of Heohanieeburg, County of Cumberland and State of Pennsylvania, bounded and described in accordance with a survey and plan thereof dated March 5, 1965, prepared by Ernest J. Walker, Registered Surveyor, to Wit:- BEGINNING at a point on the Western line of South York Street, said point being one hundred si;:ty-one and six-tenths (161.6) feet in a Southerly direction from the Southern line of Coovor Street; thence extending along said South York Streot, South 11 degrees 30 minutes East, eighty-four ( 84) feet to a point; thence South 79 degrees 30 minutes West, one hundred twenty (120) feet to a point on the Eastern line of a twenty (20) fool- alley; thence along said alley, North 11 degrees 30 minutes hest, eighty-four (84) feet to a point; thence North 79 degrees 30 minutes East, one hundred twenty (120) feet to a point on the Western line of South York Street, aforesaid, at the point and place of BEGINNIIIG. HAVING thereon erected a two and one-half story brick dwelling house, known•and numbered as 1a11� South York Street, Mechanicsburg, Ponnsyl- vania. +.n:,.;:•' �.is- .ti•?�.•:$.: lip`�i,j; 14`y;�d^lg�>r. ,. - .. :��,,.•�,:h;n:i%U'i.L�{,(,:1,.��;,,,n,":�. , : •'J �KtY -I Cerfify. %:Wbe recorded In Cumfi o�Iiliy, PA 1 J,:l:: '••.: :v'::•}i�:tiff.•. ed5 r of De . 41': v'• e C' r ;....;. r �� � .� � �_. � , METRO 3801 Paxton Street 888.937.0004 BAN Harrisburg, PA 17111 mymetrobank.com April 6,2012 VIA CERTIFIED AND FIRST CLASS MATT, Hutch Homes, Inc 414S York St Mechanicsburg,PA 17055 Cynthia G Hutchison 2312 Mill Rd Mechanicsburg,PA 17055 Re: Hutch Homes,Inc $75,000 Promissory Note dated August 1,200I, as amended("Note 1") $237,345 Promissory Note dated October 29,2007, (collectively,the as amended("Note 2"} "Notes"} Dear Mrs. Hutchison: The Borrower and/or Guarantors have defaulted on their respective obligations to the Bank due to, amongst other things, their failure to remit payment when due As a result of the Borrowers default, the Bank has elected to exercise its Option to declare the entire unpaid principal balance of the following Notes and all accrued ` interest to be immediately due and payable. and unpaid The amounts due under the Notes are as follows: Note 1 Principal Balance $ 75,312.03 Accrued Interest through 4/6/12 - $ 1,204.99 Late Fees through 4/6/12 $ 1,397.53 Sub-Total Amount Due through 4/6/12 $ 77,914.55 Note 2' Principal Balance $ 228,545.72 Accrued Interest through 4/6/12 $ 3,397.11 Late Fees through 4/6/12 $ 551,688.77 Other Fees through 4/6/12 $ 1,000.00 Sub-Total Amount Due through 4/6/12 $ 288,631.60 Total Amount Due on the Notes through 4/6112: $ 366,56.15 The balances due under the Notes may increase or decrease as a result of the receipt of payments and the proceeds of collateral securing the Notes,late charges,costs of collection and other fees, costs and expenses. Therefore, immediately prior to remitting payment,please contact the undersigned at 717-412-6218 to obtain final payoff amounts and remittance instructions. Nothing contained in this letter constitutes a waiver or release of any of the terms or provisions of the Notes or of any and all other notes,instruments or agreements between the Bank and the Borrower and/or Guarantors C Loan Documents"). The Bank reserves all rights and remedies available to it under the Loan Documents and applicable law, all of which are expressly hereby reserved. No discussions between the Bank and the Borrower.and/or Guarantors concerning this notification,other loan relationships between the Bank and the Borrower and/or Guarantors,or any other matter shall imply an agreement on the part of the Bank to waive any of its rights and remedies or to forbear from taldng any action authorized by the Loan Documents or applicable law,whether or not such discussions may be continuing. Any communications with any representative of the Bank,whether oral or written;will be mere discussions only and will not in any way commit or be binding upon the Bank unless reduced to a writing signed by an authorized officer of the Bank. Such communications will not represent any course of dealing,and in no manner shall the Borrower or Guarantors rely in any way on any such discussions unless such communications are reduced to a writing signed by an authorized officer of the Bank. The acceptance of any partial payment of any of the obligations of the Borrower and/or Guarantors to the Bank shall-not be deemed a waiver or limitation of any of the Bank's rights reserved herein as to the fall amount of any unpaid balance. Any delay or forbearance by the Bank in the enforcement or pursuit of any of its rights and remedies under the Loan Documents or applicable law shall not constitute a waiver* thereof,nor shall it be a bar to the exercise of the Bank's rights or remedies at a later,date. If you have any questions regarding the contents of this letter,please contact me. Thank you for your attention to this matter. Sincerely, METRO BANK David M.Chaikowski Assistant Vice President METTE, EVANS &WOODSME A PROFESSIONAL CORPORATION ATTORNEYS AT LAW HOWELL C.METTE THOMAS F.SMIDA 3401 NORTH FRONT STREET MARK S.SILVER JAMES W.EVANS ROBERT MOORE PAULA J.LEICHT P.O.BOX 5950 BERNADETTE BARATTINI 1926-2008 CHARLES B.ZWALLY TIMOTHY A.HOY HARRISBURG,PA 17110-0950 RANDALL G.HURST** PETER J.RESSLER THOMAS A.ARCHER* MELISSA L.VAN ECK JAMES A.ULSH HENRY W.VAN ECK IRS NO. MELANIE L.VANDERAU "NEW JERSEY BAR JEFFREY A.ERNICO MARK D.HIPP 23-1985005 AARON T.DOMOTO **MARYLAND BAR MARY ALICE BUSBY RONALD L.FINCK KEVIN J.HAYES KATHRYN L.SIMPSON HEATHER Z.KELLY TELEPHONE FACSIMILE (717)232-5000 (717)236-1816 TOLi.FREE: 1-800.962-5097 MTPV/V1WW.METTE.COM March 13, 2013 Certified Mail/Return Receipt Requested & First Class Mail IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY, PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER,THIS IS AN ATTEMPT TO ENFORCE METRO BANK'S RIGHTS AGAINST COLLATERAL ONLY. James W. Hutchison, Jr. Cynthia G. Hutchison 414 S. York Street 414 S. York Street Mechanicsburg, PA 17055 Mechanicsburg, PA 17055 Cynthia G. Hutchison 2312 Mill Road Mechanicsburg, PA 17055 Re: Notice Of Intention To Foreclose Mortgage relating to Mortgage dated August 1, 2001 between James W. Hutchison and Cynthia G. Hutchison ("Grantor") and Metro Bank f/k/a Commerce Bank/Harrisburg,N.A., ("Lender") for real property located at 414 South York Street, Mechanicsburg,PA Dear Mr. and Ms. Hutchison: We have been requested, on behalf of our client, Metro Bank, to provide you with the enclosed Notice of Intent to Foreclose Mortgage. Should you have any questions regarding the enclosed,please contact David Chajkowski at (717)412-6218 or the undersigned. March 13, 2013 Page 2 If you have filed bankruptcy or have received a discharge in bankruptcy,please be advised that this is not an attempt to collect a debt, rather this is an attempt to enforce the Lender's rights against collateral only. Sincerely, vya*�f )va*-- Melanie L. Vanderau Enclosure Cc David Chajkowski,VP and Asset Recovery Supervisor 629221v1 IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY,PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER, THIS IS AN ATTEMPT TO ENFORCE OUR RIGHTS AGAINST COLLATERAL ONLY. Date: March 13, 2013 ACT 6 & ACT 91 NOTICE 7 ACTION TO SAVE YOUR TA"K7 HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the programs works. To see if HEMAP can help,you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 33 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of this Notice. If you have any questions,you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call(717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. 628755v1 IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY, PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER, THIS IS AN ATTEMPT TO ENFORCE OUR RIGHTS AGAINST COLLATERAL ONLY. HOMEOWNER'S NAME(S): James W. Hutchison,Jr. and Cynthia G. Hutchison PROPERTY ADDRESS: 414 South York Street Mechanicsburg,PA 17055 LOAN ACCOUNT NUMBER: 2936677 ORIGINAL LENDER: Commerce Bank of Harrisburg,N.A. CURRENT LENDER/SERVICER: Metro Bank, f/k/a Commerce Bank/Harrisburg,N.A. HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: • IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS,AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice (plus three (3) days for mailing).- During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT THIRTY-THREE (33) DAYS OF THE DATE OF THIS NOTICE. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. 2 of 7 CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this Notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) You have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. To temporarily stop the lender from filing a foreclosure action, your application MUST be forwarded to PHFA and received within thirty (30) days of your face-to-face meeting with the counseling agency. YOU SHOULD FILE A HEMAP APPLICATION AS SOON AS POSSIBLE. IF YOU HAVE A MEETING WITH A COUNSELING AGENCY WITHIN 33 DAYS OF THE POSTMARK DATE OF THIS NOTICE AND FILE AN APPLICATION WITH PHFA WITHIN 30 DAYS OF THAT MEETING, THEN THE LENDER WILL BE TEMPORARILY PREVENTED FROM STARTING A FORECLOSURE AGAINST YOUR PROPERTY, AS EXPLAINED ABOVE, IN THE SECTION CALLED "TEMPORARY STAY OF FORECLOSURE". YOU HAVE THE RIGHT TO FILE A HEMAP APPLICATION EVEN BEYOND THESE TIME PERIODS. A LATE APPLICATION WILL NOT PREVENT THE LENDER FROM STARTING A FORECLOSURE ACTION, BUT IF YOUR APPLICATION IS EVENTUALLY APPROVED AT ANY TIME BEFORE A SHERIFF'S SALE, THE FORECLOSURE WILL BE STOPPED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) 3 of 7 IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY, PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER, THIS IS AN ATTEMPT TO ENFORCE OUR RIGHTS AGAINST COLLATERAL ONLY. HOW TO CURE YOUR MORTGAGE DEFAULT Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 414 South York Street, Mechanicsburg, PA 17055 IS SERIOUSLY IN DEFAULT because: A. YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: Loan 2936677— $77,154.87 (acceleration and payment in full demand made April 6,2012) Other charges (explain/itemize): Principal $75,714.94; Interest $151.43; Late Fees $1,288.53 TOTAL AMOUNT PAST DUE: $77,154.87 (acceleration and payment in full demand made April 6,2012) B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable): HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $77,154.87 (acceleration and payment in full demand made April 6, 2012) PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: Metro Bank 3801 Paxton Street Harrisburg, PA 17111 You can cure any other default by taking the following action with THIRTY (30) DAYS of the date of this letter: (Do not use if not applicable.) IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total 4 of 7 amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period,you will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you.have. not-cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriffs Sale. You may do so by paying the total amount then past due plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff s Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff s Sale of the mortgaged property could be held would be approximately four months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Metro Bank Address: 3801 Paxton Street Harrisburg, PA 17111 Phone Number: 717-412-6218 Fax Number: 717-412-6191 Contact Person: David Chaikowski EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriffs Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. 5 of 7 ASSUMPTION OF MORTGAGE -You may or X may not (CHECK ONE) sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied. YOU MAY ALSO HAVE THE RIGHT: • TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. • TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. • TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS, • TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. IF YOU HAVE FILED FOR BANKRUPTCY, OR IF YOU HAVE RECEIVED A DISCHARGE IN BANKRUPTCY, PLEASE BE ADVISED THAT THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. RATHER, THIS IS AN ATTEMPT TO ENFORCE OUR RIGHTS AGAINST COLLATERAL ONLY. 6of7 CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY YORK County Report last updated:02/19/2013 04:29 PM Advantage Credit Counseling Service/CCCS of Western PA 55 Clover Hill Road Dallastown,PA 17313 888-511-2227 Advantage Credit Counseling Service/CCCS of Western PA 2000 Linglestown Road Harrisburg,PA 17102 888-511-2227 Base,Inc. 447 South Prince Street Lancaster,PA 17603 717-392-5467 Housing Alliance of York/Y Housing Resources 290 West Market Street York,PA 17401 717-855-2752 PA Interfaith Community Programs Inc 40 E High Street Gettysburg,PA 17325 717-334-1518 7of7 A O • I'U CD CO M Postage $ / Certified Fee g b1d,3 Return Receipt Fee v• /O ,6 �7 (Endorsement Required) ( Postmark 1 C3 Restricted Delivery Fee S Here rJ yCj O (Endorsement " 0 mTotal Postage&Fees Sent To or P0 ---------------- ° City --------------l+ "- � COMPLETE A Complete items 1,2,and 3.Also complete A. Sign tur I item 4 if Restricted Delivery is desired: 0 Agent X J ■ Print your name and address on the reverse 0 Addressee so that we can return the card to you. Re eived by(PL' ame) Date of Delivery 0 Attach this card to the back of the mallpiece, j _�+_1 i or on the front if space permits. Awe a �- °1� � i 1. Article Addressed to: D, Is delivery address different from item. CYNTHIA G HUTCHISON If YES,enter delivery address below: 13 No 414 S YORK STREET MECHANICSBURG PA 17055 i i j 3, Service Type 12 Certified Mail ©Express Mall J I]Registered C]Return Receipt for Merchandise 0 Insured Mail E3 C.O.D. 4. Restricted Delivery?(Extra Fee) ❑Yes � 2. Article dumber' 7011 3500 0001 3998 8201 i (Tr�irnsfersfer from se - , P$Fo rm 31 1,February 2004 Domestic Return Receipt 102595 02 M i54p Postal CERTIFIED MA(LT. RECEIPT Ln '(Domestic Mail Only; Cc r� • 0 1' F i Er Er Postage $ G(o m Certified Fee r3 o'stmark °• O Return Receipt Fee � ;' }��• ^ M (Endorsement Required) S : He ti t O '- Restricted Delivery Fee C3 (Endorsement Required) �L1 E3 0 L l Total Postage&Fees M ^ Sent To T rq Street,Apt.No.; C3 --PO Box . No. �/� - f� -_cQ CIry,State,ZIP+4 PS Form 3806-Auqustr� 006 See Reverse for Instructions SENDER:COMPLETE THIS SECTION COMPLETE THIS SECTION . In Complete items 1,2,and 3.Also complete A Si na item 4 if Restricted Delivery is desired. R Print your name and address on the reverse 0 Agent so that we can return the card to you. 0 Addressee ■ Attach this card to the back of the mailpiece, B. ceived (P> t d ame) C. Date of Delivery or on the front.if space permits. �"t�5 °G 3-Z1-13 1. Article Addressed to: D. Is delivery address different from Item 1? 1-1 Yes __. If YES,enter delivery address below: O No JAMES W HUTCHISON JR 414 S YORK STREET MECHA14ICSBURG PA 17055 3. Service Type �gertifled.Mail 0 Express Mail eaf E3 Registered ❑Return Receipt for Mercharid se 0 Insured Mail 0 C.O.D. i 4. Restricted Delivery?(Extra Fee) C]Yom?' 2. Article Number (transfer from se 7011 3 5 0 0 0001 3 9 9 8 8195 PS Form 3811,February 2004 Domestic Return Receipt . "59e-02-M-1540; _ I J U.S. Postal Service-r. CERTIFIED-MAILT. RECEIPT W Q M It1 a (Domestic 1 • • • r /� i � '(p ryry # Ir N m Postage $ �6 �vRG/O'9 r � CK) Grfi ed Fee d T p 3 r V Wk G 0 Return Receipt Fee Post C' �s ° i p (Endorsement Required) ,z { :7 ' tq�9i. °° W Q Restricted Delivery Fee p © (Endorsement Required) z w t° Total Postage&Fees $ (� . US? i t!1 L1J Lt m • '� � TSent T o ZUUJL'1 t -------------------------- ___ •�_-^ '--._.'•»0_».... tY I Clty State,ZtA+4 GAG'y - ^- �+ Uj z a rat P4 r r ru x r# i W C+3 CA r3 jr H H N (a°k W 4 CWT Cn M W U N �..��. tom ' p O C3 I,E in _ M -:_ r A O 4 w o W C O a 3 r c O F Z ut Q 6 !f1 d r IL D a r O 4 G. m W w Z N i O Q o s E+ a a Q EL t7 = k . FORM 1 Metro Bank, f/k/a Commerce IN THE COURT OF COMMON PLEAS OF Bank/Harrisburg, NA CUMBERLAND COUNTY, PENNSYLVANIA z� r�*t= Plaintiff(s) rri r James W. Hutchinson, Jr. and Cynthia G. vc� mac, Hutchinson Defendants) Civil NOTICE OF RESIDENTIAL MORTGAGE FORECLOSURE DIVERSION PROGRAM You have been served with a foreclosure complaint that could cause you to lose your home. If you own and live in the residential property which is the subject of this foreclosure action, you may be able to participate in a court-supervised conciliation conference in an effort to resolve this matter with your lender. If you do not have a lawyer you must take the following steps to be eligible for a conciliation conference. First,within twenty(20)days of your receipt of this notice,you must contact MidPenn Legal Services at(717)243-9400 extension 2510 or(800)822-5288 extension 2510 and request appointment of a legal representative, at no charge to you. Once you have been appointed a legal representative, you must promptly meet with the legal representative within twenty (20) days of the appointment date. During that meeting, you must provide the legal representative with all requested financial information so that a loan resolution proposal can be prepared on your behalf. If you and your legal representative complete a financial worksheet in the format attached hereto,the legal representative will prepare and file a Request for Conciliation Conference with the Court,which must be filed with the Court within sixty(60)days of the service upon you of the foreclosure complaint. IF you do so and a conciliation conference is scheduled,you will have an opportunity to meet with a representative of your lender in an attempt to work out reasonable arrangements with your lender before the mortgage foreclosure suit proceeds forward. If you are represented by a lawyer, you and your lawyer must take the following steps to be eligible for a conciliation conference. It is not necessary for you to contact MidPenn Legal Service for the appointment of a legal representative. However,you must provide your lawyer with all requested financial information so that a loan resolution proposal can be prepared on your behalf. If you and your lawyer complete a financial worksheet in the format attached hereto,your lawyer will prepare and file a Request for Conciliation Conference with the Court,which must be filed with the Court within sixty (60) days of the service upon you of the foreclosure complaint. If you do so and a conciliation conference is scheduled,you will have an opportunity to meet with a representative of your lender in an attempt to work out reasonable arrangements with your lender before the mortgage foreclosure suit proceeds forward. IF YOU WISH TO SAVE YOUR HOME, YOU MUST ACT QUICKLY AND TAKE THE STEPS REQUIRED BY THIS NOTICE. THIS PROGRAM IS FREE. Respectfully submitted: April 16, 2013 wv&*� Date Signat a of Counsel for Plaintiff FORM 2 Cumberland County Residential Mortgage Foreclosure Diversion Program Financial Worksheet Date Cumberland County Court of Common Pleas Docket# BORROWER REQUEST FOR HARDSHIP ASSISTANCE To complete your request for hardship assistance,your lender must consider your circumstances to determine possible options while working with your Please provide the following information to the best of your knowledge: CLISTOMERIPRIMARY APPLICATION Borrower name(s): Property Address: City: State: Zip: Is the property for sale? Yes❑ No❑ Listing date: Price:$ Realtor Name: Realtor Phone: Borrower Occupied: Yes❑ No❑ Mailing Address(if different) City: State: Zip: Phone Numbers: Home: Office: Cell: Other: Email: #of people in household: How long? BORROWER CO Mailing Address: City: State: Zip: Phone Numbers: Home: Office: Cell: Other: Email: #of people in household: How long? INFORMATION FINANCIAL First Mortgage Lender: Type of Loan: Loan Number: Date You Closed Your Loan: Second Mortgage Lender: Type of Loan: Loan Number: Total Mortgage Payments Amount:$ Included Taxes and Insurance: Date of Last Payment: Primary Reason for Default: Is the loan in Bankruptcy? Yes❑ No❑ If yes,provide names, location of court,case number&attorney: Assets Amount Owed: Value: Home: $ $ Other Real Estate: $ $ Retirement Funds: $ $ Investments: $ $ Checking: $ $ Savings: $ $ Other: $ $ Automobile#1: Model: Year: _ Amount owed: Value: Automobile#2: Model: Year: Amount owed: Value: Other transportation(automobiles, boats, motorcycles): Model: Year: Amount owed: Value: Monthly Income Name of Employers: 1. Monthly Gross Monthly Net 2. Monthly Gross Monthly Net 3. Monthly Gross Monthly Net Additional Income Description(not wages): 1. Monthly Amount: 2. Monthly Amount: Borrower Pay Days: Co-Borrower Pay Days: Monthly Expenses:(Please only include expenses you are currently paving) EXPENSE AMOUNT EXPENSE AMOUNT Mortgage Food 2" Mortgage Utilities Car Payment(s) Condo/Neigh. Fees Auto Insurance Med.(not covered) Auto fuel/repairs Other Prop. Payment Install. Loan Payment Cable TV Child Support/Alim. Spending Money Day/Child Care/Tuft. Other Expenses Amount Available for Monthly Mortgage Payments Based on Income and Expenses: Have you been working with a Housing Counseling Agency? Yes❑ No❑ If yes,please provide the following information: Counseling Agency: Counselor: Phone(Office): Fax: Email: Have you made application for Homeowners Emergency Mortgage Assistance Program (HEMAP) assistance? Yes ❑ No ❑ If yes, please indicate the status of the application: Have you had any prior negotiations with your lender or lender's loan servicing company to resolve your delinquency? Please provide the following information, if know, regarding your lender or lender's loan servicing company: Lender's Contact (Name): Phone: Servicing Company(Name): Contact: Phone: AUTHORIZATION I/We, , authorize the above named to use/refer this information to my lender/servicer for the sole purpose of evaluating my financial situation for possible mortgage options. I/we understand that I/we am/are under no obligation to use the services provided by the above named Borrower Signature Date Borrower Signature Date Please forward this document along with the following information to lender and lender counsel: V Proof on income V Past 2 bank statements V Proof of any expected income for the last 45 days V Copy of a current utility bill V Letter explaining reason for delinquency and any supporting documentation V (hardship letter) Listing agreement (if property is currently on the market) V Copy of 2 years of federal income tax returns V Copy of deed FORM 3 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff(s) VS. Defendants) Civil. REQUEST FOR CONCILIATION CONFERENCE Pursuant to the Administrative Order dated 2012 governing the Cumberland County Residential Mortgage Foreclosure Diversion Program, the undersigned hereby certifies as follows: 1. Defendant is the owner of the real property which is the subject of this mortgage foreclosure action; 2. Defendant lives in the subject real property, which is defendant's primary residence; 3. Defendant has been served with a "Notice of Residential Mortgage Foreclosure Diversion Program: and has taken all of the steps required in that Notice to be eligible to participate in a court-supervised conciliation conference. The undersigned verifies that the statements made herein are true and correct. I understand that statements are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Signature of Defendant's Counsel/Appointed Date Legal Representative Signature of Defendant Date Signature of Defendant Date FORM 4 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff(s) VS. Defendants) Civil CASE MANAGEMENT ORDER AND NOW, this day of , 20 ,the defendant/borrower in the above-captioned residential mortgage foreclosure action having filed a Request for Conciliation Conference verifying that the defendant/borrower has complied with the Administrative Rule requirements for the scheduling of a Conciliation Conference, it is hereby ORDERED AND DECREED that: 1. The parties and their counsel are directed to participate in a court-supervised conciliation Conference on at M. in at the Cumberland County Courthouse, Carlisle, Pennsylvania. 2. At least twenty-one (21) days prior to the date of the Conciliation Conference, the defendant/borrower must serve upon the Plaintiff/lender and its counsel a copy of the "Cumberland County Residential Mortgage Foreclosure Diversion Program Financial Worksheet" (Form 2) which has been completed by the defendant/borrower. Upon agreement of the parties in writing or at the discretion of the Court, the Conciliation Conference ordered may be rescheduled to a later date and/or the date upon which service of the completed Form 2 is to be made may be extended. Upon notice to the Court of the defendant/borrower's failure to serve the completed Form 2 with the time frame set forth herein or such other date as agreed upon by the parties in writing or ordered by the Court, the case shall be removed from the Conciliation Conference schedule and the temporary stay of proceedings shall be terminated. 3. The defendant/borrower and counsel for the parties must attend the Conciliation Conference in person and an authorized representative of the plaintiff/lender must either attend the Conciliation Conference in person or be available by telephone during the course of the Conciliation Conference. The representative of the plaintiff/lender who participates in the Conciliation Conference must possess the actual authority to reach a mutually acceptable resolution, and counsel for the plaintiff/lender must discuss resolution proposals with the authorized representative in advance of the Conciliation Conference. If the duly authorized representative of the plaintiff/lender is not available by telephone during the Conciliation Conference, the court will schedule another Conciliation Conference and require the personal attendance of the authorized representative of the plaintiff/lender at the rescheduled Conciliation Conference 4. At the Conciliation Conference, the parties and their counsel shall be prepared to discuss and explore all available resolution options which shall include: bringing the mortgage current through a reinstatement; paying off the mortgage; proposing a forbearance agreement or repayment plan to bring the account current over time; agreeing to tender a monetary payment and to vacate in the near future in exchange for not contesting the matter; offering the lender a deed in lieu of foreclosure; entering into a loan modification or a reverse mortgage; paying the mortgage default over sixty months;and the institution of bankruptcy proceedings. S. All proceedings in this matter are stayed pending the completion of the scheduled conciliation conference. BY THE COURT, J. SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson ; ,s:.0 fir r Sheriff THE PRA fH 0 ��ti�ti�tr �i t':ttaittarr�rj�d Jody S Smith Chief Deputy 2013 MY —9 AM 10'- Richard W Stewart CUMBERLAND COUNT Solicitor PENNSYLVANIA Metro Bank F/K/A Commerce Bank/Harrisburg N.A. Case Number vs. 2013-2086 James W. Hutchison, Jr. (et al.) SHERIFF'S RETURN OF SERVICE 04/22/2013 05:59 PM - Deputy Shawn Harrison, being duly sworn according to law, served the requested Notice of Residential Mortgage Foreclosure Diversion Program and Complaint in Mortgage Foreclosure by "personally" handing a true copy to a person representing themselves to be the D ndant, to wit: Cynthia G. Hutchison at 2312 Mill Road, Lot 127, Upper Allen Township, Mechan' sb rg, PA 17055. *Note Correct spelling of defendant's last name is Hutchison* SUA WN HA ON, DEPUTY 05/07/2013 02:14 PM-Chief Deputy Jody S. Smith served the requested Notice of Residential Mortgage Foreclosure Diversion Program and Complaint in Mortgage Foreclosure by"personally" handing a true copy to a person representing themselves to be the Defendant, to wit: James W. Hutchison, Jr. at the Cumberland County Sheriffs Office, One Courthouse Square, Carlisle, PA 17013. *Note Correct spelling of defendant's last name is Hutchison* Ji� JODY S. SM4TH, DEPUTY SHERIFF COST: $66.30 SO ANSWERS, May 07, 2013 RONNY R ANDERSON, SHERIFF %so" FORM 3 METRO BANK, f/k/a COMMERCE ; IN THE COURT OF COMMON PLEAS OF BANKIHARRISBURG, N.A. , : CUMBERLAND COUNTY,PENNSYLVANIA Plaintiff(s) VS. N JAMES W. HUTCHISON, JR. and C- c� CYNTHIA G. HUTCHISON, �ar c_ Defendant(s) 13-2086 CIVIL rn c rat F 1 �( t" rr1 REQUEST FOR.CONCILIATION CONFERENCE ter -0' Pursuant to the Administrative Order dated Feb. 2 8 ,2012 governilM e G."b6Rand County Residential Mortgage Foreclosure Diversion Program,the undersigned he eby�rti#`ies as follows: 1. Defendant is the owner of the real property which is the subject of this mortgage foreclosure action; 2. Defendant lives in the subject real property,which is defendant's primary. residence; 3. Defendant has been served with a"Notice of Residential Mortgage Foreclosure Diversion Program" and has taken all of the steps required in that Notice to be eligible to participate in a court-supervised conciliation conference. The undersigned verifies that the statements made herein are true and correct. I understand that.false statements are made subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. Signature of dant's ounsel/Appointe ate Legal epresen e /7 ,/11 S' a e of Defend Date Date Signature of Defendant f i METRO BANK, f/k/a IN THE COURT OF COMMON PLEAS OF COMMERCE BANK/ CUMBERLAND COUNTY, PENNSYLVANIA HARRISBURG, c � Plaintiff vs. CIVIL ACTION NO. 13-2086 CIVIL < JAMES W. HUTCHISON, JR. and e. CYNTHIA G. HUTCHISON, - a Defendants CASE MANAGEMENT ORDER AND NOW, this ,), 3A-4( day of July, 2013,the parties having agreed to a conciliation conference, it is hereby ORDERED AND DECREED that: 1. The parties and their counsel are directed to participate in a court-supervised conciliation Conference on 5 W1 j,at dim. in Chambers No. 4 at the Cumberland County Courthouse, Carlisle,Pennsylvania. 2. At least twenty-one (21) days prior to the date of the Conciliation Conference, the defendant/borrower must serve upon the plaintiff/lender and its counsel a copy of the "Cumberland County Residential Mortgage Foreclosure Diversion Program Financial Worksheet" (Form 2)which has been completed by the defendant/borrower. Upon agreement of the parties in writing or at the discretion of the Court, the Conciliation Conference ordered may be rescheduled to a later date and/or the date upon which service of the completed Form 2 is to be made may be extended. Upon notice to the Court of the defendant/borrower's failure to serve the completed Form 2 within the time frame set forth herein or such other date as agreed upon by the parties in writing or ordered by the Court,the case shall be removed from the Conciliation Conference schedule and the temporary stay of proceedings shall be terminated. 3. The defendant/borrower and counsel for the parties must attend the Conciliation Conference in person and an authorized representative of the plaintiff/lender must either attend the Conciliation Conference in person or be available by telephone during the course of the Conciliation Conference. The representative of the plaintiff/lender who participates in the Conciliation Conference must possess the actual authority to reach a mutually acceptable resolution, and counsel for the plaintiff/lender must discuss resolution proposals with the authorized representative in advance of the Conciliation Conference. If the duly authorized representative of the plaintiff/lender is not available by telephone during the Conciliation Conference, the Court will schedule another Conciliation Conference and require the personal attendance of the authorized representative of the plaintiff/lender at the rescheduled Conciliation Conference. 4. At the Conciliation Conference, the parties and their counsel shall be prepared to discuss and explore all available resolution options which shall include: bringing the mortgage current through a reinstatement; paying off the mortgage; proposing a forbearance agreement or repayment plan to bring the account current over time; agreeing to tender a monetary payment and to vacate in the near future in exchange for not contesting the matter; offering the lender a deed in lieu of foreclosure; entering into a loan modification or a reverse mortgage; paying the mortgage default over sixty months; and the institution of bankruptcy proceedings. 5. All proceedings in this matter are stayed pending the completion of the scheduled conciliation conference. BY THE COURT, . 4 Kevin . Hess, P.J. Melanie L. Vanderau, Esquire 3401 N. Front Street P. O. Box 5950 Harrisburg, PA 17110 For the Plaintiff .y.Anthony L. DeLuca, Esquire , P. O. Box 358 Boiling Springs,PA 17007 a For the Defendants .�. :rlm 0 C\ METRO BANK, f/k/a IN THE COURT OF COMMON PLEAS OF COMMERCE BANK/ CUMBERLAND COUNTY, PENNSYLVANIA HARRISBURG, Plaintiff vs. CIVIL ACTION NO. 13-2086 CIVIL JAMES W. HUTCHISON,JR. and CYNTHIA G. HUTCHISON, Defendants ORDER AND NOW,this day of September, 2013, at the request of counsel for the parties, the conciliation conference set for September 5, 2013, is continued to Thursday, October 10, 2013, at 4:00 p.m. in Chambers of the undersigned. BY THE COURT, K Hess, P. J. Melanie Vanderau, Esquire For the Plaintiff �Anthony DeLuca,Esquire For the Defendants Am C-_ cz) FrI rn cnr- r'a 716 -<> METRO BANK, f/k/a : IN THE COURT OF COMMON PLEAS OF COMMERCE BANK/ : CUMBERLAND COUNTY, PENNSYLVANIA HARRISBURG, • Plaintiff vs. : CIVIL ACTION : NO. 13-2086 CIVIL JAMES W. HUTCHISON, JR. and : CYNTHIA G. HUTCHISON, • Defendants ORDER AND NOW, this /0 day of October, 2013, at the request of counsel for the parties, the conciliation conference set for October 10, 2013, is continued to Monday, December 16, 2013, at 3:30 p.m. in Chambers of the undersigned. BY THE COURT, • 41 AZ- Kevin . Hess, P. J. ✓Melanie Vanderau, Esquire For the Plaintiff ./Anthony DeLuca, Esquire For the Defendants :rlm 1 /0//0//.3 -D :a; dpy 60,1' rHE PROTHONQTAF ,; 2013 DEC 12 PH 1: 53 CUMBERLAND COUNTY PENNSYLVANIA Melanie L. Vanderau, Esquire METTE, EVANS & WOODSIDE Sup. Ct. ID No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 (717) 236-1816 (fax) mlvanderau@mette.com Attorneys for Plaintiff METRO BANK, f/k/a Commerce : IN THE COURT OF COMMON PLEAS OF Bank/Harrisburg,N.A. : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff • • v. : DOCKET NO. 13-2086-CIVIL JAMES W. HUTCHINSON, JR. and : CYNTHIA G. HUTCHINSON, Defendants PRAECIPE TO WITHDRAW COMPLAINT IN MORTGAGE FORECLOSURE TO THE PROTHONOTARY: Please withdraw Plaintiff's Complaint in Mortgage Foreclosure filed on April 17, 2013 in the above-captioned action. Respectfully submitted, METTE, EVANS & WOODSIDE By: f�`JPA�IU M LA IE L. ANDERAU, ESQUIRE Sup. Ct. I.D. No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: December 11, 2013 Metro Bank f/k/a Commerce Bank/Harrisburg, N.A. CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Anthony L. Deluca, Esquire 113 Front Street P.O. Box 358 Boiling Spring, PA 17007 Cynthia Hutchison 2312 Mill Street Mechanicsburg, PA 17055 METTE, EVANS & WOODSIDE By: '1,y 41)NI)ERAU,MEL NIE L. ESQUIRE Sup. Ct. I.D. No. 203167 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: December 11, 2013 Metro Bank f/k/a Commerce Bank/Harrisburg,N.A. 687533v1