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HomeMy WebLinkAbout13-2682 Supreme Co nnsylvania Con QlnIno leas For Prothonotary Use Only. J � rj4 f V a 1 Docket No: CUn N County �IIJ 44> n The information collected on this form is used solely for court administration purposes. This form does not supplement or replace the filing and service ofpleadings or other papers as required by law or rules of court. Commencement of Action: S 0 Complaint Cl Writ of Summons [3 Petition ® Transfer from Another Jurisdiction Declaration of Taking E C Lead Plaintiff's Name: Lead Defendant's Name: NATIONAL COLLEGIATE STUDENT LOAN TRUST SHERIE ARIAS T Dollar Amount Requested: ®within arbitration limits I Are money damages requested? 0 Yes 0 No (check one) 0outside arbitration limits O N Is this a Class Action Suit? © Yes 0 No Is this an MDJAppeal? ® Yes 0 No A Name of Plaintiff/Appellant's Attorney: MICHAEL F. RATCHFORD, ESQ. 0 Check here if you have no attorney (are a Self- Represented [Pro Se) Litigant) Nature of the Case Place 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. i TORT (do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS ® Intentional 0 Buyer Plaintiff Administrative Agencies ® Malicious Prosecution ® Debt Collection: Credit Card [3 Board of Assessment ® Motor Vehicle 0 Debt Collection: Other El Board of Elections ® Nuisance ® Dept. of Transportation ® Premises Liability ® Statutory Appeal: Other S ® Product Liability (does not include E mass tort) 13 Employment Dispute: Slander/Libel/ Defamation Discrimination C © Other: ®Employment Dispute: Other E3 Zoning Board T © Other: I ' ® Other: O MASS TORT Asbestos N ® Tobacco © Toxic Tort - DES ® Toxic Tort - Implant REAL PROPERTY MISCELLANEOUS ® Toxic Waste 13 Ejectment ® Common Law /Statutory Arbitration B ® Other: ® Eminent Domain/Condemnation ®Declaratory judgment © Ground Rent ® Mandamus ® Landlord/Tenant Dispute [3 Non - Domestic Relations ® Mortgage Foreclosure: Residential Restraining Order PROFESSIONAL LIABILITY Q Mortgage Foreclosure: Commercial ® Quo Warranto © Dental O Partition O Replevin El Legal 13 Quiet Title ® Other: 0 Medical ® Other: ® Other Professional: n1 Updated 1/1/2011 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NATIONAL COLLEGIATE STUDENT' LOAN TRUST 2004 -1 CIVIL ACTION x - n- 1 CABOT ROAD 2ND FLOOR MEDFORD, MA 02155 -5117 Qom; Plaintiff = r- -vs. : r C = V SHERIE ARIAS NO: l,� c t s `0 1729 WEATHERBURN DR NEW CUMBERLAND PA 17070 -2218 Defendant NOTICE TO DEFEND 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 to Defend are served, by entering a written appearance personally or by an 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 important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ON AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT REDUCED FEE OR NO FEE. MIDPENN LEGAL SERVICES 401 EAST LOUTHER STREET CARLISLE, PA 17013 717 - 243 -9400 4 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004 -1 CIVIL ACTION 1 CABOT ROAD 2ND FLOOR MEDFORD, MA 02155 -5117 Plaintiff VS. SHERIE ARIAS NO: 1729 WEATHERBURN DR NEW CUMBERLAND PA 17070 -2218 Defendant COMPLAINT Plaintiff, NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004 -1, by and through its attorneys, Edwin A. Abrahamsen & Associates, P.C., complains of the Defendant as follows: 1. The defendant SHERIE ARIAS (hereinafter "Defendant ") is an adult individual residing at 1729 WEATHERBURN DR NEW CUMBERLAND PA 17070 -2218. 2. The defendant executed the promissory note for the payment of tuition in which the defendant was required to make monthly payments. 3. The defendant was advanced the proceeds of the loan which were to be used for educational purposes. 4. The defendant failed to make the required payments when due. 5. The balance currently owed by defendant is $55,288.73. 6. Plaintiff has declared Defendant to be in default and demands payment of the balance due from the Note. WHEREFORE, Plaintiff requests judgment in its favor and against Defendant in the amount of $55,288.73 plus costs of suit and any other relief as the Court deems just and appropriate. Res ctfulty s4mitled, M hae Ratchford squir Attorney I.D. Nos.: 285 1.20 N. Keyser Ave Scranton, PA 1850 mratchford @eaa -1 w.com Phone: 800 -503 -1 65 Fax: 570 -558 -5 11 VERIFICATION I, Michael F. Ratchford, attorney for Plaintiff, NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004 -1, am fully familiar with the facts set forth in the within Complaint and am authorized to make this Verification on behalf of Plaintiff. I Verify that the facts set forth in the within allegations are true and correct to the best of my knowledge, knowing that any false statements are punishable by law pursuant to 18 C.S.A. 4904. i ha 1 Ratchfo , Es uire s i i SHERIFF'S OFFICE OF CUMBERLAND COUNTY .. i�`���'Y Ronny R Anderson O E �j � Sheriff Qttixt, ni'+:Irant��,p� �l- Q3 Jody S Smith � ; � 30 Chief Deputy 96ERLMAD COl1Pi�`� Richard W Stewart Solicitor .:; .. = tJ PENSYLUANI A National Collegiate Student Loan Trust 2004-1 Case Number vs. 2013-2682 Sherie Arias SHERIFF'S RETURN OF SERVICE 05/20/2013 07:47 PM - Deputy Noah Cline, being duly sworn according to law, served the requested Complaint& Notice by"personally" handing a true copy to a person representing themselves to be the Defendant, to wit: Sherie Arias at 1729 Weatherburn Drive, Lower Allen Township, New Cumberland, PA 17070. NOAH CLINE, DEPUTY SHERIFF COST: $47.67 SO ANSWERS, May 24, 2013 RbNW R ANDERSON, SHERIFF (c)CountySuite Sheriff,Teleosoft,Inc. E 11 n-131FF I CIE James H. Turner, Esquire j�0-1 I-IOSOTARi TURNER AND O'CONNELL 5 pJ11tic) 4701 North Front Street ,U4 — -- Harrisburg, PA 17110 717/232-4551 telephone cUMBERLAND COUNTY 717/232-2115 facsimile jlitkturnerandoconnell.com Attorney for defendant NATIONAL COLLEGIATE, IN THE COURT OF COMMON PLEAS STUDENT LOAN TRUST 2004-1, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13-2682 CIVIL TERM SHERIE ARIAS, CIVIL ACTION - LAW Defendant NOTICE TO PLEAD TO: National Collegiate Student Loan Trust 2004-1,plaintiff, and Michael F. Ratchford, Esquire, attorney for plaintiff You are hereby notified to file a written response to the enclosed New Matter within twenty(20) days from service hereof or a judgment may be entered against you. 4T �"ii 4UT"""�' Esquire _ James H. Turner, Esquire James H. Turner, Esquire TURNER AND O'CONNELL 4701 North Front Street Harrisburg, PA 17110 717/232-4551 telephone 717/232-2115 facsimile j htnturnerandocon.ne l l.com Attorney for defendant NATIONAL COLLEGIATE, IN THE COURT OF COMMON PLEAS STUDENT LOAN TRUST 2004-1, Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13-2682 CIVIL TERM SHERIE ARIAS, CIVIL ACTION - LAW Defendant ANSWER 1. Admitted. 2. Denied. The defendant has never had a loan or other transaction with plaintiff and has repeatedly so advised plaintiff. 3. Denied. The defendant has never had a loan or other transaction with plaintiff and has repeatedly so advised plaintiff. 4. Denied. The defendant has never had a loan or other transaction with plaintiff and has repeatedly so advised plaintiff. 5. Denied. The defendant has never had a loan or other transaction with plaintiff and has repeatedly so advised plaintiff. 6. Denied. NEW MATTER 7. The complaint of plaintiff is barred by the statute of limitations. 8. The complaint of plaintiff is barred by the statute of frauds. J es H. urner, Esquire TURNER AND O'CONNELL 4701 North Front Street Harrisburg, PA 17110 717/232-4551 telephone 717/232-2115 facsimile iht(atutnerandoconnell com Verification I verify that the statements made in the foregoing are true and correct. I understand that false statements are made subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to unsworn falsification to authorities. r Date: May,3b , 2013 Sherie Arias Certificate of Service I, Stacey A. Fogle, secretary in the law firm of Turner and O'Connell, hereby certify that I served a true and correct copy of the foregoing by depositing same in the U.S. mail, first class postage prepaid, addressed as follows: Michael F. Ratchford, Esquire 120 N. Keyser Avenue Scranton, PA 18504 Date: June 3, 2013 '�2� S a cey y A. Fogle IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA ' MM c_.. � NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004-1, CIVIL DIVISION < r... - Plaintiff: s� o VS. - SHERIE ARIAS, NO: 13-2682 CIVIL TERM Defendant PLAINTIFF'S REPLY TO DEFENDANT'S NEW MATTER Plaintiff,NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004-1, by and through its attorneys, Edwin A. Abrahamsen& Associates, replies to Defendant's New Matter as follows: 7. Denied. The allegations contained in paragraph 7 of Defendant's New Matter are conclusions of law which are deemed denied. To the extent a further response is deemed necessary, Plaintiff specifically denies that its claim is barred by the applicable statute of limitation. 8. Denied. The allegations contained in paragraph 8 of Defendant's New Matter are conclusions of law which are deemed denied. To the extent a further response is deemed necessary, Plaintiff specifically denies that the claim is barred by the statute of frauds. I i WHEREFORE, Plaintiff requests judgment in its favor and against Defendant, in the amount of the current delinquent balance, plus costs of suit, and any other relief the Court deems just and equitable. Respectively subm' ed, By: E in A rah sen Associates, P.C. Mich e F. Ratchford, Esquire Scott J. Best, Esquire Attorney I.D. No.: 86285/96300 120 N Keyser Avenue Scranton, PA 18504 (570) 558-5510 F J IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NATIONAL COLLEGIATE STUDENT . LOAN TRUST 2004-1, CIVIL DIVISION Plaintiff: VS. SHERIE ARIAS, NO: 13-2682 CIVIL TERM Defendant CERTIFICATE OF SERVICE I, Scott J. Best, Esquire, hereby certify that I caused a true and correct copy of Plaintiff's Reply to Defendants New Matter was served via first class United States Mail,postage prepaid on the date set forth below upon the following: James H. Turner, Esquire 4701 North Front St. Harrisburg, PA 171'10 Edwin A. Abrahamsen&Associates, P.C. Date: July 10, 2013! By: chae . Rat or , Esquire Scott J. Best, Esquire Attorney I.D. No.: 86285/93600 120 N Keyser Avenue Scranton, PA 18504 (570) 558-5510 i i I_.. NOTE DISCLOSURE STATEMENT S 30 939.23 Borrwvcr{s} SHERIE L ARIAS i 02043343 Wen No. I Student: SHERIE L ARIAS Date: APRIL 29, 2004 Lender Name and Address: F t CHARTER ONE BANS N-A. i 1 833 BROADWAY i ALBANY FY 12207-2415 t }{{ y APRIL 24, 2004 This disclosure statement relates to our Loan Note disbursed on i Because your Loan is cither'bcing disbursed-or entering repayment,or the repayment terms are being modified, j the following information about your Loan is being given to you. ' t ANNUAL PERCENTAGE RATE FINANCE CHARGE Amt Floated Tow of Paymcnu T he cect of your trcdit'as a The dollar amount the credit The amount of crate prwidid 'A amwvat you win have paid after ycady rata vat cost yen. to you or on your b"f. you here made all Payments whedukd. . 6.830 9t 1 37,328.00 s 28,000.00 S 65.328.00 Your paympt schedule will be: NumtKr W Amount of Payments When P nu arc due 240 1 s 272.20 Onthe 5th des mfcubawithbe o cm 12/2007 t 1 , I # VAptABLE RATE:The Annual Percentage Rate,which is based on an index plus a margin,may increase during the f term of the town if the index rate increases.The index is(check one): 1 ❑ Prime tae l�At4mied Monthly- The highest US.bank prime rate published in the"Money Rates section of t The Wall Street Journal on the last business day of each calendar month. ❑ Prime pale ledei Agiumed Qeartrrty-The highest US.bank prime rate published in the`Money Rates section of The Wall Strict Journal on'the last business day of each calendar quarter. ® UBOR tndes kested Qwrlvb,- The average of the one-Month London Interbank Offered Rates published in I the'Money Rates" section of The Wall Street Journal on the rust business day of each of the three (3) C calendar moo,hs immediately preceding the first day of each calendar quarter. Any increase in the index and the Annual Percentage Rate which occurs while principal payments are deferred will increase the amount of any current and all future payments.Any increase in the index and the Annual j Percentage Rate which occurs while principal and interest payments are deferred will increase the amount of all future payments.Any increase in the index and the Annual Percentage Rate which occurs after you have begun to make principal and interest payments on your loan will increase the amount of your future principal and interest payments beginoi%with your next annual payment adjustment date.For example,assume you obtain a loan in your junior year,-in the amount of$10,000, at an interest rate of 11%,and you defier principal and interest � pauments until after your graduation,and the repayment term or the loan is 20 years.if the interest rate increased to 12%on January ist of your senior year,the interest which accrues while principal and interest payments are � deferred will increase by S 91 Ill,and your monthly principal and interest payments would increase by S 937. I i smgtrw- You have given a security interest in all refunds or amounts owed to you at any time by the student's educational institution.Collateral sccuring other loans with the Lender may also secure this loan. 1 I.ATE CNARGIM lfia payment is more than 15 days late,you maybe charged 55.00 or 5%of the payment,whichever is less. If you default, /reader(or any subsequent holder or any subsequent holder of your Loan Note) may increase the margin used to compute the Annual Percentage Rate by two percentage pointi(246). I PRBPAYMEN'tt If you pay off early,you will not have to pay a penalty. i i See your contractldocuments for any additional information about aols-payment,default,any required repayment ! in full before the scheduled dale,any security interest and prepayment refunds and penaltics. I I Estimatev All numerical disclosures except the late payment disclosum arc estimates. i I Principal Amount of Note(Amount Financed plus Prepaid Finance Charge) 3 I t Itemization of Amount Financed Amount paid to SHERIE L ARIAS S 28,000.00 t Amount paid to S I I c Total Amount Financed $ 28,000.00 t i Itemization or Prepaid Finance Charge t Origination Fee I S 2,939.23 , Total Prepaid Finance Cbarge(s) S 2,939.23 I I ' t i t - I i I t � CIA row 6M crra FSTUDP ENLICHTEN PRIVATE ED UNDERCRAD D4CDF z 56204 028186 1 'Creditworthy Student*Promissory Note—Signature Page ' NON-NEGOTIABLE CREDIT AGREEMENT—THIS IS A CONSUMER CREDIT TRANSACTION � { LOAN PROGRAM INFORMATION Private Education Undergratlualt;loan Lander.Charter One Bank,NA Repayment Option.0061'ed PrIWPOl and tMeresi Loan Amount $28000.00 Repayment Period Margin: 4.85 Academic Period: 04f2DlMWrM Deferral Period Margin. 4.85 Schad:TEMPLE UNIVERSITY i Leon nation Fee Percentage:9.50 STUDENT BORROWER INFORMATIO (Must be at least 18 eaOf agej Borrower Name: Sfterie L Aries Home Address: 615 D Mallard Road Camp Hill,PA 17011 ! Social Security#: 180.54.8861 Dated Birth: 1010811968 Home Telephone:7179798947 Current Employer.CUNA MUTUAL LIFE INSURANCE Employer Telephone: 7177208220 Current Position: Professional Years There:8 Years Years at Previous Employment: I Alimony,chlld support or separate maintenance Incomes do not have to be revealed It you do not want them considered for repaying this 1 obligation. If you are retying on such addhional Income,please provide debt(*on it separate sliest of paper. Student Citizenship(check one box): P U.S.Citizen O Eligible Norr izen(Atbr)h front back copy of INS or student visa card) I Parsonal Reference Name:(may AElttlh Reference Home Tel 4 [71�936,50 8 Work Tel M Reference Street Address:1485 Old Trait Road I Reference CdytState0p: t i By my signature.I ratify that I have read,understand and agree to the terms of and undertake the obligations set forth on all four(4)pages of this Promissory Note A8.03.04,CRWO.j0CFS.0403. I undauaad that nay person who Iamowingly makes a false tastement or misrepresentation on this form is sobjeot to penahies,which may include fines or irprisonmant. I understand that I tun not required to fax my signature on this Promissory Note to Lender. If I choose to fax my signature on this Pronossory Note to Lender,I intend:(i)my fax signature to be an cleemmic signanut wider applicable federal and state law,(id)the fax to be an original document,(iii) to conduct business with the Lender by etecormic records sad elettronit signatures,and(iv)that this Pranisswy Mote will nor be governed by Article 3 orthe Uniform Commcrciat Code. t FOR ALABAMA RESIDENTS:CAUTION—IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. FOR WISCONSIN RESIDENTS-NOTICE TO CUSTOMER: (a) DO NOT SIGN THIS PROMISSORY NOTE BEFORE YOU READ THE WRITING ON THE FOLLOWING PAGES.EVEN IF OTHERWISE ADVISED. (b) DO NOT SIGN THIS PROMISSORY NOTE IF IT CONTAINS ANY BLANK SPACES. (c) YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN. (d) YOU HAVE THE RIGHT AT ANY T1lME TO PAY IN ADVANCE THE UNPAID BALANCE UNDER THIS AGREEMENT AND YOU MAY BE ENTITLED TO A PARTIAI.REFUND OF THE FINANCE CHARGE, t IPLEASE SIGN BELOW—RETURN This Pacte,With f of Inoorne and m FA%TO: , Signature of Borrower Date i +mss ' o � 150 f A8.0344.CRWO.10CFS.0403 i PN03 CX1"-CFBNO.F.AARIAS-AI=t3343.pdt LENDER COPY FSTUOP 1 In this Promissory Note,the words"I","me","my",and"mine"mean the person who fully disbursed.The Repayment Period is 20 years unless monthly payments equal to signed this Promissory Note as Borrower. The words "you", 'your, `yours", and the minimum monthly payment amount(See Paragraph EA)will repay all amounts "Lender"mean Charter One Bank,N.A.,its successors and assigns,and any other owed in less than 20 years,in which case the Repayment Period will be the number of holder of this Promissory Note."School"means the school named at the top of the first months necessary to pay in full the amount I owe at the minimum payment. page of this Promissory Note. D. INTEREST: A. PROMISE TO PAY: I promise to pay to you the principal sum of the Loan Amount 1.Accrual—Beginning on the first Disbursement Date,interest on the outstanding shown on the first page of this Promissory Note,to the extent it is advanced to me or balance of this Promissory Note will be calculated at the Variable Rate(Paragraph paid on my behalf,and any Loan Origination Fee added to my loan(see Paragraph F), D.2)on the principal balance advanced,and on any unpaid interest added to principal interest on such principal sum,interest on any unpaid interest added to the principal according to Paragraph D.3.,below,until all amounts are paid in full. Interest will be balance,and late charges(see Paragraph E.7). calculated on a daily simple interest basis. The daily interest rate will be equal to the B. IMPORTANT—READ THIS CAREFULLY: annual interest rate in effect on that day, divided by the number of days in that 1.When you receive my signed Promissory Note,you are not agreeing to lend me calendar year. money unfit you confirm my income and the Student's enrollment in the School and 2. Variable Rate—The"Variable Rate"is equal to the Current Index plus or minus a review the other information requested on the Instructions page and returned with this Margin. The Margins for both the Deferment Period and the Repayment Period are Promissory Note. When you have confirmed and reviewed this information,you will shown on the first page of this Promissory Note.in no event will the Variable Rate schedule a date or dates on which you will electronically transfer the loan funds to the exceed the maximum interest rate allowed by the laws of the State of Ohio.The School for the Borrower,mail a loan check to the School for the Borrower,or mail a Variable Rate will change quarterly on the first day of each January,April,July and loan check directly to the Borrower.If the income and/or the enrollment information October(the"Change Date(s)")if the Current Index changes. The"Current index"for does not match the information I provided to you when I requested this loan,or ff the any calendar quarter beginning on a Change Date(or for any shorter period beginning other information requested on the Instructions page and returned with this Promissory on the Disbursement Date and ending on the first Change Date)is based on the one- Note is unsatisfactory,you have the right to not make a loan or to lend an amount less month London Interbank Offered Rate("LIBOR")as published in the"Money Rates" than the Loan Amount. I agree to accept an amount less than the Loan Amount and to section of The Wall Street Journal.The index for each calendar quarter(or for any repay that portion of the Loan Amount that you actually lend to me. You have the right shorter period beginning on a Disbursement Date and ending on the last day of a to disburse my loan through an agent. calendar quarter)will equal the average of the LIBOR rates published on the first 2. HOW I AGREE TO THE TERMS OF THIS LOAN. By signing this Promissory business day of each of the three(3)immediately preceding calendar months, Note,and submitting it to the Lender,I am requesting that you make this loan to me in rounded to the nearest one-hundredth percent(0.011/6). If The Wall Street Journal is an amount equal to the Loan Amount plus any Loan Origination Fee described in not published or the Current Index is not given on that date,then the Current Index will Paragraph F of this Promissory Note. If you approve this request and agree to make be determined by using the immediately preceding published Current Index.If the this loan,you will notify me in writing and provide me with a Disclosure Statement,as Current Index is no longer available,you will choose a comparable index. required by law, at the time the Loan proceeds are disbursed. The Disclosure 3. Capitalization—If payment of principal and interest is deferred(Paragraph C.2) Statement is incorporated herein by reference and made a part hereof. The and I have elected the"Full Deferral"repayment option(the applicable repayment Disclosure Statement will tell me the amount of the loan which you have approved,the option is stated on the first page of this Promissory Note),I am not obligated to make amount of the Loan Origination Fee,and other important information. 1 will let you any payments unfit the loan enters the Repayment Period.You will add unpaid know that I agree to the terms of the loan as set forth in this Promissory Note and in accrued interest to the principal loan balance as of the last day of each calendar the Disclosure Statement by doing either of the following: (a)endorsing the check that quarter(the last day of December,March,June and September)during the Deferment disburses the loan proceeds;or(b)using or allowing the loan proceeds to be used on Period and at the end of my Deferment Period.Interest that is added to principal is my behalf without objection.Upon receipt of the Disclosure Statement,I will review the called"Capitalized"interest.Capitalized interest will be treated as principal.In addition, Disclosure Statement and notify you in writing if I have any questions. If 1 am not if I am in default and the loan has been sold to TERI(see Section L.11),TERI may satisfied with the terms of my loan as disclosed in the Disclosure Statement, I may capitalize accrued and unpaid interest as of the date it purchases my loan.I cancel my loan. To cancel my loan,i will give you a written cancellation notice within understand that you will add all accrued and unpaid interest to the principal balance of ten(10)days after i received the Disclosure Statement. If loan proceeds have been my loan on the last day of the Deferment Period and at the end of any forbearance disbursed, I agree that I will immediately return the loan proceeds to you,will not period. endorse any check which disburses the loan proceeds and will instruct the School to E. TERMS OF REPAYMENT: return any loan proceeds to you. If I give notice of cancellation but do not comply with 1. Deferment Period— If I have elected either the"Interest Only repayment option or the requirements of this Paragraph B.2,this Promissory Note will not be canceled and the"Full Deferral"repayment option(the applicable repayment option is stated on the I will be in default of this Promissory Note. (See Paragraph 1) first page of this Promissory Note),you Wit send me statements during the Deferment C. DEFINITIONS: Period(showing the total outstanding principal balance of my loan and the interest that 1. "Disbursement Date"means the date or dates on which you lend money to me in has accrued on my loan). Statements will be sent to the address shown on your consideration for my Promissory Note and will be the date(s)shown on any loan check records. If I have elected the"Interest Only"repayment option, I agree to make you prepare or the date(s)you initiate any electronic funds transfer. payments each month during the Deferment Period equal to the accrued interest on 2. The"Deferment Period"will begin on the Disbursement Date and end on the the outstanding balance of this Promissory Note. If I have elected the"Full Deferral" Deferment End Date. repayment option I may,but am not required to make payments during the Deferment 3. "Deferment End Date" means the date speared below for the applicable loan Period.You wilt add any interest that I do not pay during-the Deferment Period to the program(the applicable loan program is stated on the first page of this Promissory principal balance,as described in Paragraph D.3. Note). 2. Repayment Period — During the Repayment Period, you will send me monthly (a)UndemiraduateAfternattyer Loan Program: If I have elected the"Immediate statements or a coupon book which shows the amounts of minimum monthly Repayment"option(the applicable repayment option is stated on the first page of this payments and the payment due dates. I will make consecutive monthly payments in Promissory Note),there is no Deferment Period,and my first payment will be 30-80 amounts at least equal to such minimum monthly payments by the applicable payment days after the last disbursement of my loan. If I have elected the"Interest Only" due dates until I have paid all of the principal and interest and any other charges I may repayment option(the applicable repayment option is stated on the first page of this owe under this Promissory Note. Promissory Note),then interest payments will begin 30.80 days after the first 3. Repayment Terms—My monthly payment will be established based on the rules in disbursement of my loan,and the"Deferment End Date"will be the date the Student this Promissory Note when my Repayment Period begins. My monthly payment graduates or ceases to be enrolled at least half-time in the School(or another school amount will be calculated as of the day the Repayment Period begins("Repayment participating in this loan program)and principal and interest payments will begin 30-60 Date"). It will also be calculated following any subsequent deferment or forbearance days after that date. If I have elected the"Full Deferral"repayment option(the period or any request by the Borrower to the servicer to change the monthly payment applicable repayment option is stated on the first page of this Promissory Note),then due date(each of which events is a new"Repayment Date").After any Repayment the"Deferment End Date"will be 180 days after the Student graduates or ceases to be Date is set, my monthly payment will be recalculated once each year prior to the enrolled at least half-time in the School(or another school participating in this Loan anniversary of the Repayment Date.My new monthly payment amount,which will take Program).In any event,the Deferment End Date will be no more than 4%years after effect on the anniversary of the Repayment Date,will be disclosed to me each year by the Disbursement Date(or 5'%years if the Student is enrolled in a five-year the servicer.The new monthly repayment amount will equal the amount necessary to undergraduate program at the School). pay in full,over the number of months remaining in the Repayment Period,the amount (b)Graduate Professional Education Loan Proaram:180 days after the Student t owe in equal monthly installments of principal and interest at the Variable Rate in graduates or ceases for any other reason to be enrolled at least half-time in the School effect at the time of the calculation.I understand that this may result in reduction of my (or another school participating in this Loan Program),but no more than 4'%years after monthly payment as calculated each year. I understand that during the Repayment the Disbursement Date;provided,however,that if the Student begins a medical Period(and,'mf I have elected the"Interest Only repayment option,during the period of residency or internship during the Deferment Period,then the Deferment Period will interest payments)the servicer may change the monthly payment due date of future end 180 days after the day the residency or internship ends,but no more than 8% payments to a later date for the convenience of the servicer in processing payments or years after the Disbursement Date. in order to coordinate the due dates of all of my loans processed by the servicer. 4.The"Repayment Period'begins the day after the deferment Period ends.If there is no Deferment Period for my loan,the Repayment Period will begin when my loan is fwo125493.3tAB.03-04.CRWO.1 OCFS.0403 2 of 4 4. Minimum Repayment-Notwithstanding Paragraph E.3,I agree to pay at least$25 MARKED FOR SPECIAL HANDLING AND SENT TO THE ADDRESS IDENTIFIED each month during the Repayment Period or the unpaid balance whichever is less. I FOR SUCH PAYMENTS ON MY BILLING STATEMENT,OR TO SUCH OTHER understand that I may pay more than my monthly payment at any time without penalty ADDRESS AS I MAY BE GIVEN IN THE FUTURE. or charge. 4. 1 may not assign this Promissory Note or any of its benefits or obligations.You may 5. Amounts Owing at the End of the Repayment Period-Since interest accrues daily assign this Promissory Note at any time. upon the unpaid principal balance of my loan,if I make payments after my payment 5.The terms and conditions set forth in this Promissory Note and Instructions and the due dates,I may owe additional interest. If I have not paid my late charges,I will also Disclosure Statement constitute the entire agreement between you and me. owe additional amounts for those late charges.In such cases you will increase the 6. If any provision of this Promissory Note is held invalid or unenforceable,that amount of my last monthly payment to the amount necessary to repay my loan in full. provision shall be considered omitted from this Promissory Note without affecting the 6. Payments-Payments will be applied first to late charges,other fees and charges, validity or enforceability of the remainder of this Promissory Note. accrued interest,and the remainder to principal. 7. A provision of this Promissory Note may only be modified if jointly agreed upon in 7. Other Charges-If any part of a monthly payment remains unpaid for a period of writing by you and me.Any modification will not affect the validity or enforceability of more than 15 days after the payment due date,I will pay a late charge not exceeding the remainder of this Promissory Note. $5.00 or 5% of the overdue payment amount, whichever is less. To the extent 8.To the extent permitted by law,you have the right to apply money from any of my permitted by law,I agree to pay you all amounts you incur in enforcing the terms of deposit account(s)with you to pay all or a portion of any amount overdue under this this Promissory Note,including reasonable collection agency and attorney's fees and Promissory Note. I hereby authorize you to obtain from the School all amounts which court costs and other collection costs. may be owed to me by the School,including any refund due to overpayment,early F. LOAN ORIGINATION FEE: If you charge me,I will pay you a Loan Origination termination of enrollment,or otherwise,and I give you a security interest in all such Fee at the time my loan is disbursed. The dollar amount of any Loan Origination Fee amounts. will be determined by multiplying the sum of the Loan Origination Fee and the Loan 9. All dollar amounts stated in this Promissory Note are in United States dollars. I will Amount,to the extent advanced to me,times the Loan Origination Fee Percentage make all payments in United States Dollars with no deduction for currency exchange. shown on the first page of this Promissory Note. The percentage would be higher if 10. if I fail to complete the education program paid for with this loan,I am not relieved computed only on the amount advanced rather than the entire principal amount(Loan of any obligation within or pursuant to this Promissory Note. Origination Fee plus Loan Amount). For example,a nominal Loan Origination Fee of 11. 1 acknowledge that this loan may be subject to the limitations on 6.5%on the entire principal amount would equal 6.9519%of the amount advanced. dischargeability in bankruptcy contained in Section 523 (a)(8)of the United The Loan Origination Fee I will pay,if any,will be shown on my Disclosure Statement States Bankruptcy Code. Specifically,I understand that you have purchased a and will be added to the principal amount of my loan. To the extent permitted by law, guaranty of this loan, and that-this loan is guaranteed by The Education and unless I timely cancel this Promissory Note(see Paragraph B.2), I will not be Resources Institute,Inc.("TERI"),a non-profit loan guaranty agency. entitled to a refund of any Loan Origination Fee after my loan has been disbursed. 12. 1 authorize any school that I may attend to release to you,and any other persons G. RIGHT TO PREPAY: I have the right to prepay all or any part of my loan at any designated by you,any requested information pertinent to this loan(e.g.enrollment time without penalty. status,prior loan history,and current address). H. FORBEARANCE: If I am unable to repay my loan in accordance with the terms 13. 1 authorize the Lender,any subsequent holder of this Promissory Note,and their established under this Promissory Note,I may request that you modify these terms.I agents to:(1)advise the School of the status of my loan,(2)respond to inquiries from understand that such modification would be at your option. I understand that I will prior or subsequent lenders or holders with respect to my Promissory Note and related remain responsible for all interest accruing during any period of forbearance and that documents,(3)release information and make inquiries to the persons I have given you you will add any interest that I do not pay during any forbearance period to the as references,for the purposes of leaming my current address and telephone number, principal balance,as described in Paragraph D.3. (4)check my credit and employment history and to answer questions about their credit 1. WHOLE LOAN DUE: To the extent permitted by applicable law,I will be in default experience with me,and(5)disclose to TERI in connection with this transaction or any and you have the right to give me notice that the whole outstanding principal balance, future transaction all information(including status information and non-public personal accrued interest, and all other amounts payable to you under the terms of this information)of the Borrower provided in connection with this Promissory Note. Promissory Note,are due and payable at once(subject to any applicable law which 14. Waiver by Lender: Except as stated in Paragraph L.8,you waive(give up)any may give me a right to cure my default)if:(1)1 fail to make any monthly payment to right to claim a security interest in any property to secure this Promissory Note. This you when due,(2)1 die,(3)1 break any of my other promises in this Promissory Note, does not affect any right to offset as a matter of law. (4)Any bankruptcy proceeding is begun by or against me,or I assign any of my assets 15.If I fax my signature(s)on the first page of this Promissory Note back to you and for the benefits of my creditors,or(5)1 make any false written statement in applying for . keep the copy I signed,I understand that under federal law the fax you receive will be this loan or at any time during the Deferment or Repayment Periods.If I default,I will an original of the first page of this Promissory Note. You and I agree that all copies of be required to pay interest on this loan accruing after default.The interest rate after this Promissory Note (including the fax you receive and the copy I retain), taken default will be subject to adjustment in the same manner as before default. Upon together,shall constitute a single original agreement. default,you may also capitalize any interest and fees(i.e.,add accrued and unpaid M. STATE DISCLOSURE NOTICES interest and fees to the principal balance),and increase the Margin used to compute IOWA RESIDENTS(For purposes of the following notice,the word"you"refers the Variable Rate by two percentage points(2%). to the Borrower,not the Lender):NOTICE TO CONSUMER. This is a consumer J. NOTICES: credit transaction.1.DO NOT SIGN THIS PROMISSORY NOTE BEFORE YOU 1. 1 will send written notice to you,or any subsequent holder of this Promissory Note, READ THIS PROMISSORY NOTE. 2.YOU ARE ENTITLED TO A COPY OF THIS within ten days after any change in my name,address,or enrollment status. PAPER. 3.YOU MAY PREPAY THE UNPAID BALANCE AT ANY TIME WITHOUT 2. Any notice required to be given to me by you will be effective when mailed by first PENALTY AND MAYBE ENTfrLED TO A REFUND OF UNEARNED CHARGES IN Gass mail to the latest address you have for me. ACCORDANCE WITH LAW. K. INFORMATION: CALIFORNIA RESIDENTS:I have the right to prohibit the use of information contained 1. 1 must update the information I provided to you whenever you ask me to do so. in my credit file in connection with transactions not initiated by me. I may exercise this 2. 1 authorize you from time to time to request and receive from others credit related right by notifying the consumer credit reporting agency. A married applicant may apply information about me(and about my spouse if I live in a community property state). for a separate account. If you take any adverse action as defined by Section 1785.3 of L. ADDITIONAL AGREEMENTS: the Califomia Civil Code and the adverse action is based,in whole or in part,on any 1. 1 understand that you are located in Ohio and that this Promissory Note will be information contained in a consumer credit report,I have the right to obtain within 60 entered into in the same state. CONSEQUENTLY, THE PROVISIONS OF THIS days a free copy of my consumer credit report from the consumer reporting agency PROMISSORY NOTE WILL BE GOVERNED BY FEDERAL LAW AND THE LAWS who furnished you my consumer credit report and from any other consumer credit OF THE STATE OF OHIO,WITHOUT REGARD TO CONFLICT OF LAW RULES. reporting agency which compiles and maintains files on consumers on a nationwide 2.The proceeds of this loan will be used only for my educational expenses at the basis. I have the right as described by Section 1785.16 of the California Civil Code to School. dispute the accuracy or completeness of any information in a consumer credit report 3. My responsibility for paying the loan evidenced by this Promissory Note is furnished by the consumer credit reporting agency. unaffected by the liability of any other person to me or by your failure to notify me that CALIFORNIA AND UTAH RESIDENTS:As required by California and Utah law,I am a required payment has not been made.Without losing any of your rights under this hereby noted that a negative credit report reflecting on my credit record may be Promissory Note you may accept(a)late payments,(b)partial payments or(c) submitted to a credit reporting agency if I fail to fulfill the terms of my credit obligations. payments marked"paid in full"or with other restrictions.You may delay,fail to NEW YORK,RHODE ISLAND AND VERMONT RESIDENTS:A consumer report exercise,or waive any of your rights on any occasion without losing your entitlement to (credit report)may be obtained from a consumer-reporting agency(credit bureau)in exercise the right at any future time,or on any future occasion.You will not be connection with this loan. If I request(1)1 will be informed whether or not consumer obligated to make any demand upon me,send me any notice,present this Promissory reports were obtained,and(2)if reports were obtained,I will be informed of the names Note to me for payment or make protest of non-payment to me before suing to collect and addresses of the credit bureaus that furnished the reports. If you agree to make on this Promissory Note if I am in default,and to the extent permitted by applicable this loan to me,a consumer credit report may be requested or used in connection with law,I hereby waive any right I might otherwise have to require such actions.I WILL renewals or extensions of any credit for which I have applied,reviewing my loan, NOT SEND YOU PAYMENTS MARKED"PAID IN FULL","WITHOUT RECOURSE" taking collection action on my loan,or legitimate purposes associated with my loan. OR WITH OTHER SIMILAR LANGUAGE UNLESS THOSE PAYMENTS ARE MARYLAND RESIDENTS:You elect Subtitle 10,Credit Grantor Closed End Credit 1WO125493.31AB.03-04.CRWO.1OCFS.0403 3 of4 1 Provisions,of Title 12 of the Commercial Law Article of the Annotated Code of N. BORROWER'S CERTIFICATION: I declare under penalty of perjury under the Maryland only to the extent not inconsistent with 12 U.S.C.§85 and related laws of the United States of America that the following is true and correct.I certify that regulations and opinions,which you expressly reserve. all information I provided to you in connection with this loan, including without MISSOURI RESIDENTS:Oral agreements or commitments to limitation,the information contained in this Promissory Note, is true, complete and loan money,extend credit or to forbear from enforcing correct to the best of my knowledge and belief and is made in good faith. I understand repayment of a debt including promises to extend or renew that I am responsible for repaying immediately any funds that I receive which are not to be used or are not used for educational expenses related to attendance at the such debt are not enforceable. To protect me(borrower(s))and School for the academic period stated. I certify that I am not now in default on a you(creditor)from misunderstanding or disappointment,any Federal Perkins Loan,a Federal Stafford Loan,a Federally Insured Student Loan,a agreements we reach covering such matters are contained in Federal Supplemental Loan for Students(SLS),a Federal PLUS Loan, an Income this Writing,which is the complete and exclusive statement of Contingent Loan,a Federal Consolidation Loan,a Federal Ford Direct Loan,or any other education loan received for attendance at any school. the agreement between us,except as we may later agree in writing to modify it. NEVADA RESIDENTS: This is a loan for study. OHIO RESIDENTS:The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers,and that credit reporting agencies maintain separate credit histories on each individual upon request.The Ohio Civil Rights Commission administers compliance with this law. WISCONSIN RESIDENTS:For married Wisconsin residents,my signature on this Promissory Note confirms that this loan obligation is being incurred in the interest of my marriage or family. No provision of any marital property agreement(pre-marital agreement),unilateral statement under Section 766.59 or court decree under Section 766.70 adversely affects the interest of the Lender unless the Lender,prior to the time that the loan is approved,is furnished with a copy'of the agreement,statement,or decree or has actual knowledge of the adverse provision when the obligation to the Lender is incurred.If the loan for which I am applying is granted,my spouse will also receive notification that credit has been extended to me. NEW JERSEY RESIDENTS:The section headings of this Promissory Note are a table of contents and not contract terms. Portions of this Promissory Note with references to actions taken to the extent of applicable law apply to acts or practices that New Jersey law permits or requires. In this Promissory Note,acts or practices(i)by you which are or may be permitted by'applicable law"are permitted by New Jersey law,and(ii)that may or will be taken by you unless prohibited by"applicable law"are permitted by New Jersey law. i I i l I I I I f I I i i (Wm25493.3)AB.03-04.CRWO.IOCFS 10403 4 of I Page 1 of 4 <DOCUMENT> <TYPE>EX-10.16 <SEQUENCE>17 <FILENAME>ncf ex10-16.txt <DESCRIPTION>POOL SUPPLEMENT <TEXT> EXHIBIT 10.16 <PAGE> POOL .SUPPLEMENT CHARTER ONE BANK, N.A. This Pool Supplement (the "SUPPLEMENT") is entered into pursuant to and forms a part of each of the Note Purchase Agreements (the "AGREEMENTS") set forth on SCHEDULE 1 attached hereto, each as amended or supplemented from the date of execution of the Agreement through the date of this Supplement, by and between The First Marblehead Corporation ("FMC") and Charter One Bank, N.A. (the "PROGRAM LENDER") . This Supplement is dated as of June 10, 2004. Capitalized terms used in this Supplement without definitions have the meanings set forth in the Agreements. ARTICLE .1: PURCHASE AND SALE. In consideration of the Minimum Purchase Price set forth in SCHEDULE 1 attached hereto, the Program Lender hereby transfers, sells, sets over and assigns to The National Collegiate Funding LLC (the "DEPOSITOR") , upon the terms and conditions set forth in the Agreements (which are incorporated herein by reference with the same force and effect as if set forth in full herein) , each student loan set forth on attached SCHEDULE 2 (the "TRANSFERRED LOANS") along with all of the Program Lender's rights under the Guaranty Agreements relating to the- Transferred Loans. The Depositor in turn will sell the Transferred Loans to The National Collegiate Student Loan Trust 2004-1 (the "TRUST") . The Program Lender hereby transfers and delivers to the Depositor each Note evidencing such Transferred Loan and all Origination Records relating thereto, in accordance with the terms of the Agreements. The Depositor hereby purchases said Notes on said terms and conditions. ARTICLE 2: PRICE. The amounts paid pursuant to this Supplement are the sum of the amounts set forth on SCHEDULE 1 attached hereto. ARTICLE 3: REPRESENTATIONS AND WARRANTIES. 3.01. BY PROGRAM LENDER. The Program Lender repeats the representations and warranties contained in Section 5.02 of the Agreements for the benefit of each of the Depositor and the Trust and confirms the same are true and correct as of the date hereof with http://www.sec.gov/Archives/ed.gar/data/1290641/000088237704001282/nef ex10-16.txt 8/18/2011 Page 2 of 4 respect to the Agreements and to this Supplement. 3.02. BY DEPOSITOR. The Depositor hereby represents and warrants to the Program Lender that at the date of execution and delivery of this Supplement by -the Depositor: (a) The Depositor is duly organized and validly existing as a limited liability company under the laws of the State of Delaware with the due power and authority to own its properties and to conduct its business as such properties are currently owned and such business is <PAGE> presently conducted, and had at all relevant times, and has, the power, authority and legal right to acquire and own the Transferred Loans. (b) The Depositor is duly qualified to do business and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications. (c) The Depositor has the power and authority to execute and deliver this Supplement and to carry out its respective terms; the Depositor has the power and authority to purchase the Transferred Loans and rights relating thereto as provided herein from the Program Lender, and the Depositor has duly authorized such purchase from the Program Lender by all necessary action; and the execution, delivery and performance of this Supplement has been duly authorized by the Depositor by all necessary action on the part of the Depositor. (d) This Supplement, together with the Agreements of which this Supplement forms a part, constitutes a legal, valid and binding obligation of the Depositor, enforceable in accordance with its terms. (e) The consummation of the transactions contemplated by the Agreements and this Supplement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, -or constitute (with or without notice or lapse of time) a default under, the governing instruments of the Depositor or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; or result in the creation or imposition of any lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument; or violate any law or any order, rule or regulation applicable to the Depositor of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties. (f) There are no proceedings or investigations pending, or threatened, before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (i) asserting the invalidity of the Agreements or this Supplement, (ii) seeking to prevent the consummation of any of the transactions contemplated by the Agreements or this Supplement, or (iii) seeking any determination or ruling that is likely to materially or adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of the Agreements or http://www.sec.gov/Archives/edgar/data/1290641/000088237704001282/ncf ex10-16.txt 8/18/2011 Page 3 of 4 this Supplement. ARTICLE A: CROSS RECEIPT. The Program Lender hereby acknowledges receipt of the Minimum Purchase Price. The Depositor hereby acknowledges receipt of the Transferred Loans included in the Pool. ARTICLE 5: ASSIGNMENT OF .ORIGINATION, GUARANTY AND SERVICING RIGHTS. The Program Lender hereby assigns and sets over to the Depositor any claims it may now or hereafter have under the Guaranty Agreements, the Origination Agreements and the Servicing Agreements to the extent the same relate to the Transferred Loans described in SCHEDULE 2, other than any right to obtain servicing after the date hereof. It is the intent of this provision to vest in the Depositor any claim of the Program Lender relating to defects in origination, guaranty or 2 <PAGE> servicing of the loans purchased hereunder in order to permit the Depositor to assert such claims directly and obviate any need to make the same claims against the Program Lender under this Supplement. 3 <PAGE> IN WITNESS WHEREOF, the parties have caused_th.is_.Suppl.ement to ..be executed as of the date set forth above. THE FIRST MARBLEHEAD CORPORATION By: /s/ John A. Hupalo ------------------------------- Name: John A. Hupalo Title: Executive Vice President CHARTER ONE BANK, N.A. By: /s/ Linda M. Rankey-Froggett http://www.sec.gov/Areluves/edgar/data/1290641/000088237704001282/ncf ex10-16.txt 8/18/2011 Page 4 of 4 ------------------------------- Name: Linda M. Rankey-Froggett Title: Production Manager THE NATIONAL COLLEGIATE FUNDING LLC By: GATE Holdings, Inc: , Member By: /s/ Bruce F. Lefenfeld ------------------------ Name: Bruce F. Lefenfeld Title: Vice President i CHARTER ONE POOL SUPPLEMENT <PAGE> Schedule 1 Minimum Purchase Price i <PAGE> Schedule 2 Transferred Loans [On File with the Indenture Trustee] s 4 I i </TEXT> </DOCUMENT> I i http://www.sec.gov/Arclvves/edgar/data/1290641/000088237704001282/ncf exl0-16.txt 8/18/2011 i