HomeMy WebLinkAbout13-6894 -t, 7.._n1
STRADLEY RONON STEVENS & YOUNG, LLP
Gretchen M. Santamour(ID No. 41720) 1 s ^;' ,70 A l I : 57
Steven J. White, Esquire (ID No. 206442) } ,44pp {T y,'
2600 One Commerce Square , �'
s ,
Philadelphia, PA 19103 } jo ' �- `'
Tel. (215) 564-8000 Attorneys for Defendant, Navin K. Patel
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, • CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
•
4675 Macarthur Court, Suite 1550
Newport Beach, CA 92660 • CIVIL ACTION
•
Plaintiff, • TERM
v. •
I+
NAVIN K. PATEL NO. I3 ' �OSQ`f al V IPA
1188 Greenfield Drive
•
•
Mechanicsburg, PA 17055
Defendant. :
ENTRY OF APPEARANCE AND CONFESSION OF JUDGMENT
PURSUANT TO PA RULE CIV. PRO. 2955(a)
Pursuant to the authority contained in warrant of attorney set forth in the that certain
Commercial Guaranty (the "Guaranty") executed by Navin K. Patel (the "Defendant") on July
8, 2008, a copy of which is attached to the Complaint for Confession of Judgment filed in this
action (the "Complaint"), I appear for the Defendant and confess judgment in favor of the
Plaintiff, Magnolia Portfolio, LLC, and against the Defendant in the amount of $547,673.39,
calculated as of November 8, 2013, comprised as follows:
$410.Co AM/
at 5C3 35
11*o/61a1155
m@ i led
BUSINESS# 1970613 v.1
Principal $ 471,954.67
Interest (as of 11/8/2013) $ 22,685.18
Late Charge Fee $ 3,569.55
Attorney's Fees (10% of Unpaid Principal $ 49,463.99
and Accrued Interest, as authorized by the
Guaranty)
TOTAL $ 547,673.39
together with interest, from and after November 8, 2013, at the per diem rate of$42.61, and all
costs of suit and collection costs, including, without limitation, reasonable attorneys' fees, as
authorized under the Guaranty.
STRADLEY RONON STEVENS & YOUNG,LLP
November le, 2013 By:
Gretchen Satfiamour, Esquire
Steven J. White, Esquire
2600 One Commerce Square
Philadelphia, PA 19103
Tel. (215) 564-8000
Fax (215) 564-8120
Attorneys for Defendant, Navin K Patel pursuant to
the Warrant of Attorney contained in the
Commercial Guaranty
- 2 -
BUSINESS#1970613 v.1
STRADLEY RONON STEVENS &YOUNG, LLP
Gretchen M. Santamour(ID No. 41720)
Steven J. White, Esquire (ID No. 206442)
2600 One Commerce Square
Philadelphia, PA 19103 Attorneys for Plaintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, • CUMBERLAND COUNTY
as Assignee of Orrstown Bank • COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
•
Newport Beach, CA 92660 CIVIL ACTION
•
Plaintiff, • TERM
v. •
•
• NO. 3 �9 7
NAVIN K. PATEL
1188 Greenfield Drive
•
•
Mechanicsburg, PA 17055
Defendant.
COMPLAINT FOR CONFESSION OF JUDGMENT
Plaintiff, Magnolia Portfolio, LLC, successor by assignment to Orrstown Bank, by
and through its attorneys, Stradley Ronon Stevens &Young, LLP, brings this complaint for
confession of judgment, and in support thereof, avers that:
PARTIES
1. Plaintiff, Magnolia Portfolio, LLC, successor by assignment to Orrstown
Bank ("Magnolia" or"Lender"), is a Delaware limited liability company with its principal place
of business of 4675 Macarthur Court, Suite 1550, Newport Beach, California 92660.
2. On or about December 20, 2012 and February 12, 2013, Orrstown Bank
assigned all of its right, title and interest in the Loan Documents (as herein defined) to Magnolia.
True and correct copies of the assignment agreements are attached hereto as Exhibit A and
incorporated herein by reference. See also, Affidavits of Brian Sosner, attached hereto and
incorporated herein by reference.
BUSINESS# 1970613 v.1
3. Defendant, Navin K. Patel ("Guarantor") is an adult individual with and
address of 1188 Greenfield Drive, Mechanicsburg, PA 17055.
BACKGROUND
4. On or about July 8, 2008, the Lender extended a business loan to
Gurugovind, LLC, a Pennsylvania limited liability company("Gurugovind") in the principal
amount of$640,000.00 (the"Loan").
5. The Loan is evidenced by, inter alia, that certain Promissory Note dated
July 8, 2008, in the original principal amount of$640,000.00 (the"Note"), executed and
delivered from Gurugovind to Lender. A true and correct copy of the Note is attached hereto as
Exhibit B and incorporated by reference herein.
6. Gurugovind's obligations to Magnolia under the Note are secured by, inter
alia, that certain Commercial Guaranty dated July 8, 2008, executed by Guarantor in favor of the
Lender(the"Guaranty", and together with the Note and all other documents evidencing or
collateral to the Loans, the"Loan Documents"). Pursuant to the term of the Guaranty, the
Guarantor absolutely and unconditionally guaranteed the full and punctual payment and
performance of all of Gurugovind's obligations under the Note and the other Loan Documents.
A true and correct copy of the Guaranty is attached hereto as Exhibit C and incorporated by
reference herein.
7. Magnolia has not assigned the Loan Documents to any third party, and
Magnolia remains the current"holder" of the Loan Documents.
THE DEFAULTS
8. Magnolia incorporates by reference the averments in Paragraphs 1 through
7 of this complaint as if set forth at length herein.
- 2 -
BUSINESS# 1970613 v.1
9. Gurugovind is in default of its obligations under the Note by virtue of,
inter alia, its failure to make payment when due of amounts payable to Magnolia under the Note
and related Loan Documents.
10. The Guarantor is in default of his obligations under the Guaranty by virtue
of his failure to repay the outstanding balance due to Magnolia under the Note.
11. As a result of the defaults, the following amounts, computed as of
November 8, 2013, are immediately due and payable from Guarantor to the Lender under the
Guaranty:
Principal $ 471,954.67
Interest (as of 11/8/2013) $ 22,685.18
Late Charge Fee $ 3,569.55
Attorney's Fees (10% of Unpaid Principal $ 49,463.99
and Accrued Interest, as authorized by the
Guaranty)
TOTAL $ 547,673.39
Pursuant to the Loan Documents, Magnolia is also entitled to interest from and after November
8, 2013, at the per diem rate of$42.61, and all additional costs of suit and collection costs,
including, without limitation, reasonable attorneys' fees, as authorized under the Guaranty.
12. The Guaranty contains a warrant of attorney that authorizes the Lender to
confess judgment against the Guarantor upon or after his default.
CONFESSION OF JUDGMENT
13. Magnolia seeks to confess judgment against the Guarantor under the
Guaranty, as authorized by the warrant of attorney contained in the Guaranty and executed by the
Guarantor.
- 3 -
BUSINESS#1970613 v.1
14. Judgment has not been entered against the Guarantor in any jurisdiction on
the warrant of attorney contained in the Guaranty.
15. Judgment is not being entered against any natural person in connection
with a consumer transaction.
16. The Guaranty, which contains the warrant of attorney, is less than twenty
years old.
17. An Affidavit of Default and Assessment of Damages is attached hereto
and incorporated as if set forth fully herein.
18. The notice provisions of 41 P.S. § 101 et seq. ("Act 6") are inapplicable to
this action because the Lender is not accelerating the maturity of a residential mortgage.
19. Similarly, the provisions of 35 P.S. § 1680.403(c) ("Act 91") are not
applicable to this action because, among other things, the Guaranty is not secured by the
principal residence of the Guarantor.
- 4 -
BUSINESS# 1970613 v.1
WHEREFORE, Plaintiff, Magnolia Portfolio, LLC, respectfully requests the entry
of judgment in its favor and against Defendant, Navin K. Patel, in the amount of$547,673.39,
together with interest, from and after November 8, 2013, at the per diem rate of$42.61, and all
costs of suit and collection costs, including, without limitation, reasonable attorneys' fees, as
authorized under the Guaranty.
STRADLEY RONON STEVENS & YOUNG, LLP
November I%, 2013 By: '
Gretchen Santamour, Esquire
Steven J. White, Esquire
2600 One Commerce Square
Philadelphia, PA 19103
Tel. (215) 564-8000
Fax (215) 564-8120
Attorneys for Plaintiff Magnolia Portfolio, LLC
- 5 -
BUSINESS#1970613 v.1
•
EXHIBIT A
BUSINESS#1970613 v.1
Borrower Name: GURUGOVIND, LLC
ALLONGE
This Allonge is made to that certain Promissory Note dated July 8, 2008 in the original
principal amount of$640,000.00.from GURUGOVIND, LLC to Orrstown Bank, together with
all renewals,assignments, amendments,supplements,restatements and/or modifications..
It is°intended that this Allonge be attached to and made a permanent part of the above-
referenced Note.
'Pay to the order of MAGNOLIA PORTFOLIO,. LLC, a Delaware limited liability
.company("Assignee"),-without recourse or representation or warranty,
express; implied.Or by
;operation of law, of°any kind and nature whatsoever, except as expressly provided in the.Loan
:Sale Agreement dated December 20, 2012 (the "Sale Agreement"? between ORRSTOWN
BANK, a Pennsylvania,banking corporation, and Assignee, including, .without limitation,,the
representations and warranties .pursuant- to Article. VII, the Sale Agreement and the
indemnification obligations and other covenants,rights and remedies therein.
:Executed effective as of December 20,2012
ORRSTOWN BANK,a Pennsylvania banking.
corporation
By
Name: Zachary M ynn
Title: SVP,SAG rector
Special Assets Group
Orrstown Bank Offering# 121210
Pool 11.100
Reference#1.89002
CERTIFIED PROPERTY IDENTIFICATION NUMBERS
3B-07-0459-074 - SILVER SPRING
°COTS REGISTRY 02/20/2013 BY DC
THIS DOCUMENT PREPARED BY
.AND UPON RECORDATION,RETURN TO:
ANDERSON,MCCOY&-ORTA,:P:C.
100 North Broadway,Suite/600
Oklahoma City,'OK 73102
Telephone: :(88.8)216x.0007
Ca mberland Cl uinty,,State of Pennsylvania
Tat Map No.or Tiuc Pareel Identification No.:38-07-8459.074'
Icertify that the precise address of.the Assignee'is cJo Sabal Financial Group.1.2.,4675 MacArthur
CourtSuit#;1550,Newport Beach,CA 92660
Nic ]Cone'
•
ASSIGNMENT OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS:
THAT, Orretowu Bank, a Pennsylvania banking corporation,having an address of
77 East King Street,Shippensburg,PA 17257(hereinafter referred to as"Assignor"),for value
received, does by ..
y hose presents, grant,sett, transfer,assign,convey and set over to Magnolia
Portfollo,,LLC,a Delaware limited liability company,its successors and assigns(hereinafter
referred_ to "as "Assignee" having an address of c!o Sabal Financial Group, L.P., 4675
MacArthur Court, Suite 1550, Newport Beach, CA 92660, all of Assignor's right,;'title and
interest in and to that certain:
AMO Ref:2510.145
Loan Manic:GURUGOVIND LLC
Loan Ref 26475889002
•
Open-End Mortgage and Security Agreement dated July 8, 2008, executed by
Hart-Ram, Inc., the grantor,to Orrstown Bank, the Lender,recorded on July.9,
2008, as Instrument Number 200823387 in the Official Records of Cumberland
County,State of Pennsylvania("Recorder's Office"), as the same may have been
assigned,amended,supplemented,restated or modified(the"Mortgage").
The Mortgage covers the property described therein,less and except any portion of the property.
previously released and/orreconveyed.
TO>FIAVE;ANDS TO HOLD the same unto said MAGNOLIA PORTFOLIO,
LLC ITS SUCCESSORS AND ASSIGNS:.
THIS ASSIGNMENT IS MADE WITHOUT RECOURSE, REPRESENTATION OR
WARRANTY,EXPRESS OR IMPLIED;WRITTEN OR ORAL, BY ASSIGNOR.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLAND]
AMO Rsf.:2510.145
Loan Nam GURUGOV1ND LLG
Loan Re:26475889002
, .
. -..
IN WITNESS WHEREOF, Assignor has caused this instrument to be executed this 0 day of
February,2013.
ASSIGNOR:
ORRSTOWN BANK,a Pennsylvania banking corporation
By: Magnolia Portfoli• LLC,a Delaware limited liability
company,
ft ...ally
tp
Name: R.Patterson Jackson
Title: Authorized SignaNry
."A-1.-(StAara...rii fiA 4-ke GE mi."(III
Teetied-ral en ..,* ott30 / 201S
ACKNOWLEDGMENT -T-riSIT'LL ri-L24.4 ..;..,(roarw hAi--;
;20t 30 .i_tS7 .3
STATE OF CALIFORNIA
Y. SS:
cr■rty OF ORANGE )
On this day of February, 2013,. before me-person; appeared R. Patterson Jaekson, as
Authorized Signatory for Magnolia Portfolio, LLC,a De .i.are limited liability company;Attorney-in
Fact for,OrrstOwn.Bank;a Pennsylvania banking co !.• :lion,.known to me or proved:to,me On the basis
of satisfactory evidence to be the persons who -( cute&the foregoing-instrument, and they thereupon
duly acknowledged to me:that they executed .- same to be their free act and deed.
WITNESS my hand.and official seal,
,
My commission expires;. Name of Notary:
AM()RcL:2510.145
Loan Name:GURUGOVIND LLC
Loan Rcf.:26475889002
State of California )
County of Orange )
On February 2013, before me,Lynn Mattson, Notary Public, personally appeared
R. Patterson Jac-so , ho proved to me on the basis of satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity, and that by his signature on the.
instrument the person, or the entity upon behalf of which the person acted, executed the
instrument.
I''certify under PENALTY OF PERJURY under the laws of the State of California'that
the foregoing paragraph is true and correct.
WITNESS my hand and official..seal.. .c....+•�
LYNN MATTSON
o '�E .Commission#19304.15 z.
■ fb' 'e Notary Public California r.= .14? Orange County
(SEAL)
M .Comm. < ira Mar 27QtS
Pubk Signa ure
• .
, .
ROBERT P. ZIEGLER.
• r.
RECORDER OF DEEDS . --•,..f.tr:,...
- • '•-•,:4;:.r?-41tiviir,..
CUMBERLAND COUNTY :-: r.. ....
.-. :---i •-?..' *' 4414,:k,
1 COURTHOUSE SQUARE :,, !i•l •,:- --
.../..' ',.... b.g. .--.:'...
CARLISLE, PA 17013
........1. . 1 ■t... ; ii'''
717-240-6370
.t._k r•it 1.... . g / , f -... '...I
111StrUMeM Number-201305644
Recorded On 2120/2013 At 11:11:37 AM *Total Pages-5
*Instrument Type-ASSIGNMENT OF MORTGAGE
Invoice Number- 129767 User ID-BMM
*Mortgagor-HARI-RAM,INC
*Mortgagee-MAGNOLIA PORTFOLIO LLC
'
Customer-SIMPLIFILE LC E-RECORDING
*FEES
--.......
STATE WRIT TAX $0.50 Certification Page
STATE ..JCS./ACCESS TO $23.50
Jt3STICE DO NOT DETACH
REcomiNG FEES - $11 .50
RECORDER OF DEEDS
PARCEL. CERTILPICATION $10.00 This page is now part
FEES of this legal.document
COMITY* ARCHIVES FEE $2.00
ROD ARCHIVES FEE $3.00
TOTAL PAM $5 0.5 0
I Certify this to be recorded
in Cumberland County PA
c
.4. ,
,4>
;:. 4,1rtklo ,
1t7L5:010 .
44743?-. • RECORDER OF DEEDS
*-Information denoted by an asterisk may change during
itti vttifkaikat process and nner Dot be reflected on ads page.
_ _
Inst. # 201305650 - Page 1 of 5
CERTIFIED PROPERTY IDENTIFICATION NUMBERS
10-14-0840-040 - HAMPDEN TP
CCGIS REGISTRY 02/20/2013 BY TB
THIS DOCUMENT PREPARED BY
AND UPON RECORDATION,RETURN TO:
ANDERSON,MCCOY&ORTA,P.C.
100 North Broadway,Suite 2600
Oklahoma City,OK 73102
Telephone: (888)236-0007
Cumberland County,State of Pennsylvania
Tax Map No.or Tax Parcel Identification No.: 10-14-0840-040
I certify that the precise address of the Assignee is do Sabal Financial Group,L.P.,4675 MacArthur
Court,Suite 1550,Newport Beach,CA 92660
Nick B; zellone
•
ASSIGNMENT OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS:
THAT, Orrstown Bank, a Pennsylvania banking corporation, having an address of
77 East King Street, Shippensburg, PA 17257 (hereinafter referred to as"Assignor"), for value
received, does by these presents, grant, sell, transfer, assign, convey and set over to Magnolia
Portfolio,LLC, a Delaware limited liability company,its successors and assigns(hereinafter
referred to as "Assignee" having an address of do Sabal Financial Group, L.P., 4675
MacArthur Court, Suite 1550, Newport Beach, CA 92660, all of Assignor's right, title and
interest in and to that certain:
AMO Ref.:2510.145AP1
Loan Name:GURUGOVIND LLC
Loan Ref.:26475889002
•
Inst. # 201305650 - Page 2 of 5
Open-End Mortgage and Security Agreement dated July 8, 2008, executed by
Gurugovind, LLC, the grantor, to Orrstown Bank, the Lender,recorded on July
9, 2008, as Instrument Number 200823385 in the Official Records of
Cumberland County, State of Pennsylvania ("Recorder's Office"), as the same
may have been assigned, amended, supplemented, restated or modified (the
"Mortgage").
The Mortgage covers the property described therein,less and except any portion of the property
previously released and/or reconveyed.
TO HAVE AND TO HOLD the same unto said MAGNOLIA PORTFOLIO,
LLC,ITS SUCCESSORS AND ASSIGNS.
THIS ASSIGNMENT IS MADE WITHOUT RECOURSE, REPRESENTATION OR
WARRANTY,EXPRESS OR IMPLIED, WRITTEN OR ORAL,BY ASSIGNOR.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
AMO Ref.:2510.I45AP1
Loan Name:GURUGOVIND LLC
Loan Ref.:26475889002
Inst. # 201305650 - Page 3 of 5
IN WITNESS WHEREOF, Assignor has caused this instrument to be executed this kL. day of
February,2013.
ASSIGNOR:
ORRSTOWN BANK,a Pennsylvania banking corporation
By: Magnolia Portfolio,LLC,a Delaware limited liability
company,its - -F.ct
'B y:
Name: R.Patterson Jackson
Title: Authorized Signatory
Rte6Ual - 3` t ' rar-f ed ase
AN-a2n cec�san �j/30,A3
ACKNOWLEDGMENT as -f f It'�J,
STATE OF CALIFORNIA FORNIA ) c O(3 `Z �o'u 3
SS:
COUNTY OF ORANGE )
On this day of February, 2013, before me personally appeared R. ' tters� on Jackson, as
Authorized Signatory for Magnolia Portfolio,LLC, a Delaware limited liar company, Attorney-in-
Fact for Orrstown Bank,a Pennsylvania banking corporation,known to - e or proved to me on the basis
of satisfactory evidence to be the persons who executed the fore„ g instrument, and they thereupon
duly acknowledged to me that they executed the same to be the' ee act and deed.
WITNESS my hand and official seal.
My commission expires: :me of Notary:
•
dip
AMO Ref.:2510.145AP1
Loan Name:GURUGOV1ND LLC
Loan Ref.:26475889002
•
Inst. # 201305650 - Page 4 of 5
State of California )
County of Orange )
On February 1 d.„.„2013, before me,Lynn Mattson,Notary Public,personally appeared
R. Patterson Jackson, who proved to me on the basis of satisfactory evidence to be the
person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
rffEYNNMAITSON#
Commission 1930475
t �'".� F3 Notary Public-California
(SEAL) z ,4l''' Orange County
otary Publi Signature My Comm.Ex ire Mar 27,2015
• Inst. # 201305650 - Page 5 of 5
ROBERT P. ZIEGLER
RECORDER OF DEEDS w
CUMBERLAND COUNTY '
1 COURTHOUSE SQUARE " 'I= - '
CARLISLE, PA 17013
717-240-6370 r
Instrument Number-201305650
Recorded On 2/20/2013 At 11:39:28 AM *Total Pages-5
*Instrument Type-ASSIGNMENT OF MORTGAGE
Invoice Number- 129774 User ID-BMM
*Mortgagor-GURUGOVIND LLC
"Mortgagee-MAGNOLIA PORTFOLIO LLC
*Customer-SIMPLIFILE LC E-RECORDING
*FEES
STATE WRIT TAX $0.50 Certification Page
STATE JCS/ACCESS TO $23.50
JUSTICE DO NOT DETACH
RECORDING FEES — $11.50
RECORDER OF DEEDS
PARCEL CERTIFICATION $10.00 This page is now part
FEES of this legal document.
COUNTY ARCHIVES FEE $2.00
ROD ARCHIVES FEE $3.00
TOTAL PAID $50.50
I Certify this to be recorded
in Cumberland County PA
il"rzi
RECORDER OF DEEDS
1780
*-Information denoted by an asterisk may change during
the verification process and may not be reflected on this page.
1
•
ASSIGNMENT OF SECURITY DOCUMENTS
ORRSTOWN BANK, A PENNSYLVANIA BANKING CORPORATION,
("Assignor"), for good and valuable consideration, the receipt and sufficiency of which are
acknowledged, hereby sells,transfers, assigns,delivers, sets-over and conveys,to MAGNOLIA.
PORTFOLIO, LLC, A DELAWARE LIMITED LIABILITY COMPANY, its successors
and assigns ("Assignee"), without recourse to the Assignor, and without representations,
warranties or covenants, express or implied, written or oral, by the Assignor,all,right, title and
interest.of the Assignor in and to the loan identified on Exhibit A attached hereto (the "Loan"),
including without limitation all of Assignor 's right, title and interest in any guaranties, loan
participation interests, indemnities, claims, collateral, insurance policies, certificates of deposit,
letters of credit, escrow accounts, performance bonds, demands, causes of action and any other
collateral arising out of and/or executed and/or delivered in or to or with respect to the Loan,
together with any other documents or instruments executed and/or delivered in connection with.
or otherwise related to the Loan.
Dated this ) of February,2013.
ASSIGNOR:
ORRSTOWN BANK,a Pennsylvania banking
corporation
By MAGNOLIA PORTFOLIO,I;I C,.a Delaware
limited liability ompan ,its Attorney-in-Pact
ciinge
By
Name: It.`Patterson Jac -In
Title: Authorized Signatory
AMO Ref.: 2510.145
Loan Name: GURUGOVIND LLC
Loan Ref.:261751%9002
EXHIBIT"A"
TO
ASSIGNMENT OF SECURITY DOCUMENTS
That certain loan dated July 8, 2008, in the stated original principal amount of$640,000.00,
executed by Gurugov ind, LLC to Orrstown Bank, which is secured by properties located in
Cumberland County,State of Pennsylvania.
AMO Rct:: 2510.145
Loan Name: Gt1RUGOVINDf.1.C?
Loan Ref':264751389002
EXHIBIT B
BUSINESS# 1970613 v.1
•
■
• PROMISSORY NOTE di .,.
..k..m.,.. _ ..,. ._......._.._ ............ -.z., .::... ....._.......,...r..... � •::. :,':'W:ri - - vat . [(;
L.... y.�e!-�
:.,n..v:...f: s...........r.:s:`:. .. ......_.... ::::::.: A'.:rc:: .. n ...'`•s.x}lticvi}.. ..�N� YT' •i
... ...... _..... ..,.......»,..... r ..... ......_.......... ........................................�:, _ .,�........ . :.......... .r ....:� ::� :;:sue:;-;:•:� ....�::.
....._...............,....r.......>.o.... ............_. . .-.::.,,:....:............ ........ .._,.,.... ....,.,....._.4 .•- ^s:,vo^..•:.,•:_ - .:t:.,.._ •>.. y0...
.,. :, ..M ..:.., :>rtsS•'i;°%txf:x""*"•;it:rf�:io;?^r',:,; :`F;�?'. .i e' ::^': t• i
iF :�. �.:.: :�. � .........:;.: v'. AA :.?:SCSs.J»'•='::_iiik'::+'�i: i;'i:iiiii.Y' .�:�:r .°....'....�^��'>iS?w9^4:��:......:>!^�".:xT_•x.--aC •^s:L.:.�x:.. ... ...:
References in the boxes above are for Lender's 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: Gurugovind,LLC Lender: ORRSTOWN BANK
1188 Greenfield Drive SEVEN GABLES OFFICE
Mechanicsburg,PA 17055 77 EAST KING STREET
P0 BOX 250
SHIPPENSBURG,PA 17257
Principal Amount: $640,000.00 Initial Rate: 6.250% Date of Note: July 8, 2008
Maturity Date: July 8,2019
PROMISE TO PAY. Gurugovind, LLC("Borrower")promises to pay to ORRSTOWN BANK("Lender"),or order, in lawful money of the United
States of America,the principal amount of Six Hundred Forty Thousand&00/100 Dollars($640,000.00)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 in tul(immediately upon Lender's demand. If no demand is made, subject to any payment changes
resulting from changes in the Index, Borrower wit pay this loan in accordance with the following payment schedule: 12 monthly consecutive
interest payments, beginning August 8, 2008, with interest calculated on the unpaid principal balances at an interest rate of 6.250% per
annum; 48 monthly consecutive principal and interest payments in the initial amount of $7,216.11 each, beginning August 8, 2009, with
interest calculated on the unpaid principal balances at an interest rate of 6.250% per annum; 71 monthly consecutive principal and interest
payments in the initial amount of$6,959.15 each, beginning August 8, 2013,with interest calculated on the unpaid principal balances at an
interest rate based on the Wall Street Prime (currently 5.000%), resulting in an initial interest rate of 5.000%; and one principal and interest
payment of$6,959.24 on July 8, 2019,with interest calculated on the unpaid principal balances at an interest rate based on the Wall Street
Prime (currently 5.000%), resulting In an initial interest rate of 5.000%. This estimated final payment is based on the assumption that all
payments will be made exactly as scheduled and that the Index does not change;the actual final payment will be for all principal and accrued
interest not yet paid,together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law,payments
will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. The
annual interest rate for this Note is computed on a 365/360 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 on this Note is subject to change from time to time based on changes in an independent index
which is the Wail Street Prime(the"Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. if the Index becomes
unavailable during the term of this loan,Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current
Index rate upon Borrower's 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 5.000% per annum. The interest rate or rates to be applied to the unpaid
principal balance during this Note will be the rate or rates set forth herein in the"Payment'section. Notwithstanding any other provision of this
Note, after the first payment stream, the interest rate for each subsequent payment stream will be effective as of the last payment date of the
just-ending payment stream. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by
applicable law. Whenever increases cccur in the interest rate, Lender, at its option, may do one or more of the following: (A) increase
Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date, (B) increase Borrower's payments to cover
accruing interest, (C) increase the number of Borrower's payments, and (D) continue Borrower's payments at the same amount and increase
Borrower's final payment.
PREPAYMENT PENALTY. Upon prepayment of this Note.Lender is entitled to the following prepayment penalty: Should Borrower prepay all or
any amount of principal during the next five (5) years, the Borrower shall be assessed against the amount prepaid, a five percent(5.00%1
prepayment penalty. The assessment percentage shall decrease one percent(1.00%) per annum to par. Lender acknowledges that excepted
from this assessment will be principal payments that are generated as a result of operation of the business for which the loan was extended.
Specifically not excepted will be any prepayments generated as a result of a refinancing at any other financial institution. Except for the
foregoing, Borrower may pay all or a portion of the amount owed earlier than is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower or Borrower's obligation to continue to make payments under the payment schedule. Rather, they will reduce the
principal balance due and may result in Borrower making fewer payments. . Except for the foregoing,Borrower may pay 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
continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result In
Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full', 'without recourse', or similar
language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will
remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts,including any check or
other payment instrument that indicates that the payment constitutes °payment in full" of the amount owed or that is tendered with other
conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: ORRSTOWN BANK, 77 EAST KING
STREET,P.O.BOX 250 SHIPPENSBURG,PA 17257.
LATE CHARGE. if a payment is 16 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $50.00,
whichever Is greater.
INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by
adding a 3.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate
change that would have applied had there been no default. After maturity,or after this Note would have matured had there been no default,the
Default Rate Margin will continue to apply to the final interest rate described in this Note. If judgment is entered in connection with this Note,
interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However,in no event will the
interest rate exceed the maximum interest rate limitations under applicable 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.
maimmimaimmummimmimamiimmumummiumiam,..........----
PROMISSORY NOTE • •
Loan No: 26475889002 (Continued) Page 2
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.
Oeath or Insolvency. The dissolution of Borrower (regardless of whether election to Continue is made), any member withdraws from
Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower,
the appointment of a receiver for any part of Borrower's property,any assignment for the benefit of creditors,any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding. self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan.
This includes a garnishment of any of Borrower's accounts,including deposit accounts,with Lender. However, this Event of Default shall
not apply if there is a good faith dispute by Borrower 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 monies 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.
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 if 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 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, immediately 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.
LENOER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal
balance under this Note and all accrued unpaid interest immediately due,and then Borrower will pay that amount.
ATTORNEYS'FEES:EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not Pay. Borrower will pay
Lender that amount. This includes, subject to any limits under applicable law,Lender's reasonable attorneys'fees and Lender's legal expenses,
whether or not there is a lawsuit, including reasonable attorneys' fees, expenses for bankruptcy proceedings (Including efforts to modify or
vacate any automatic stay or injunction),and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to
all other sums provided by law.
JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,proceeding,or counterclaim brought by either Lender
or Borrower against the other.
OISHONOREO ITEM FEE. Borrower will pay a fee to Lender of 820.00 if Borrower makes a payment on Borrower's loan and the check or
preauthorized charge with which Borrower pays is later dishonored.
RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's 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,and,at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff
rights provided in this paragraph.
COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein:
(A) a Mortgage dated July 8, 2008, to Lender on real property described as "Real Property located at 4900 and 4930 Woodland Drive,
Enola,PA 17025"and located In Cumberland County, Commonwealth of Pennsylvania.
(B) an Assignment of All Rents to Lender on real property described as"Real Property located at 4900 and 4930 Woodland Drive, Enola,
PA 17025" and located in Cumberland County, Commonwealth of Pennsylvania.
(C) a Mortgage dated July 8, 2008, to Lender on real property described as "Real Property located at 350 Bent Creek Boulevard,
Mechanicsburg,PA 17050"and located in Cumberland County, Commonwealth of Pennsylvania.
(Dl an Assignment of All Rents to Lender on real property described as "Real Property located at 350 Bent Creek Boulevard,
Mechanicsburg,PA 17050"and located in Cumberland County,Commonwealth of Pennsylvania.
(E) inventory, chattel paper, accounts, equipment and general intangibles described in Commercial Security Agreements dated July 8,
2008.
PROPERTY INSURANCE. Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further
information concerning this requirement is set forth in the Security Agreement and Mortgage and in the Agreement to Provide Insurance, all the
terms and conditions of which are hereby incorporated and made a part of this Note.
LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled
to further loan advances. 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 Borrower's 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 daily computer print-outs.
FINANCIAL INFORMATION.The Borrower agrees to provide the Lender with Federal Tax Returns and/or CPA prepared Financial Statements and
any other financial information,required by the Lender's Original Commitment Letter to the Borrower,on an annual basis. If the Lender does not
receive the required financial information within two hundred seventy(270) days of the Borrower's fiscal year end,the Lender has the right to
increase the interest rate charged on this Note by 0.25%. The Borrower shall receive written notification ten 110) days prior to the Lender
increasing the interest rate charged on this Note.
OVERDRAFT PROTECTION.You may obtain credit advances under your Credit Line by writing a check on your checking account(s)
with us in excess of the available collected balance in the account(s). .
NW
PROMISSORY NOTE
4
Loan No: 26475889002 (Continued) Page 3
SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, 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 inaccuracylies)should be sent to
us at the following address:ORRSTOWN BANK 77 EAST KING STREET P.O.BOX 250 SHIPPENSBURG,PA 17257.
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. If any part of this Note cannot be enforced,this fact will not affect the rest of the
Note. 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 otherwise 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 Lender's
security interest in the collateral;and take 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 enforceability of any other provisions of this Note.
CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME
FOR 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 NOTE TO CONFESS JUDGMENT AGAINST BORROWER 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 NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A
HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER
SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN
REPRESENTED BY INDEPENDENT.LEGAL COUNSEL.
PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE
INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.
THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A
SEALED INSTRUMENT ACCORDING TO LAW.
BORROWER;
GURUGOV ,.,LLC
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EXHIBIT C
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•COMMERCIAL GUARANTY.,
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References in the boxes above are for Lender's 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: Gurugovind,LLC Lender: ORRSTOWN BANK
1188 Greenfield Drive SEVEN GABLES OFFICE
Mechanicsburg,PA 17055 77 EAST KING STREET
P O BOX 250
SHiPPENSBURG,PA 17257
Guarantor: Navin K.Patel
1188 Greenfield Drive
Mechanicsburg,PA 17055
GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantor absolutely and unconditionally guarantees
full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all Borrower's
obligations under the Note and the Related Documents. This Is a guaranty of payment and Performance and not of collection, so Lender can
enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to pay the
Indebtedness or against any collateral securing the Indebtedness,this Guaranty or any other guaranty of the indebtedness. Guarantor will make
any payments to Lender or its order, on demand, in legal tender of the United States of America, in same-day funds, without set-off or
deduction or counterclaim,and will otherwise perform Borrower's obligations under the Note and Related Documents.
INDEBTEDNESS. The word "Indebtedness" as used in this Guaranty means all of the principal amount outstanding from time to time and at any
one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, reasonable
attorneys'fees,arising from any and all debts,liabilities and obligations that Borrower individually or collectively or interchangeably with others,
owes or will owe Lender under the Note and Related Documents and any renewals,extensions, modifications,refinancings,consolidations and
substitutions of the Note and Related Documents.
if Lender presently holds one or more guaranties,or hereafter receives additional guaranties from Guarantor, Lender's rights under all guaranties
shall be cumulative. This Guaranty shall not(unless specifically provided below to the contrary)affect or invalidate any such other guaranties.
Guarantor's liability will be Guarantor's aggregate liability under the terms of this Guaranty and any such other unterminated guaranties.
CONTINUING GUARANTY. THIS GUARANTY ENCOMPASSES A LINE OF CREDIT AND GUARANTOR UNDERSTANDS AND AGREES THAT
THiS GUARANTY SHALL BE OPEN AND CONTINUOUS UNTiL THE INDEBTEDNESS iS PAID IN FULL AND THE LENDER DECLARES THAT THE
LINE OF CREDIT IS FULLY SATISFIED,PERFORMED AND TERMINATED.
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 the Indebtedness 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. 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.
GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, without notice or demand and without lessening Guarantor's
liability under this Guaranty, from time to time: (A) 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 alter, 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; (Cl to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive,
subordinate, fail 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; 1E) to determine how, when and what application 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 (H) to assign or transfer this Guaranty in whole or in 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, right and authority to enter into this Guaranty;
(D) 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
the 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 Lender's request, Guarantor will provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information 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 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 Guarantor's financial condition; (H)
no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or
threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established
adequate means of obtaining from Borrower on 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 might in any way affect Guarantor's risks under this
Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor 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 nonaction 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; (E) 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
•
• COMMERCIAL GUARANTY
Loan No: 26475889002 (Continued) Page 2
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 based on suretyship or impairment of collateral including, but not limited to,any 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 limitation, any loss 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 tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified
impairment of any collateral 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 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, 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 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 public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,such waiver shall be
effective only to the extent permitted by law or public policy.
RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else and all accounts
Guarantor 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. Guarantor authorizes Lender,to the extent permitted by applicable law,to hold these funds if there is a default,and Lender
may apply the funds In these accounts to pay what Guarantor owes under the terms of this Guaranty.
SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, 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 Lender 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 shall be first applied by Lender to the Indebtedness.
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 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 file financing statements and continuation statements
and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights
under this Guaranty.
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 reasonable
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 reasonable attorneys' fees and legal expenses whether Or not there is a lawsuit, including reasonable 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.
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 parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses,
claims,damages,and costs(including Lender's attorneys'fees)suffered or incurred by Lender as a result of any breach by Guarantor of the
warranties, representations and agreements of this paragraph.
Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this 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 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
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, if mailed, when deposited in the United States mall, as first class, certified or registered mall
• COMMERCIAL GUARANTY •
Loan No: 26475889002 (Continued) Page 3
postage prepaid,directed to the addresses shown near the beginning of this 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 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 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(awful money.o;: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 winlercial Code:
Borrower. The word "Borrower" means Gurugovind, LLc, and iricludes`all•ch-sjgneri.;and co-makers signing the Note and all their
•
successors and assigns. : ' ' ': 7'+ /00 YM
Guarantor. The word "Guarantor"means everyone signing this Guaranty,including without IiFnMation Navin K. Patel,and in each Case,any
signer's successors and assigns.
Guaranty. The word"Guaranty" means this guaranty from Guarantor to Lender.
Indebtedness. The word"Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty.
Lender. The word"Lender" means ORRSTOWN BANK,its successors and assigns.
Note. The word "Note" means the promissory note dated July 8, 2008,in the original principal amount of$640,000.00 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.
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 (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 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.
EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS
TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND
DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH
IN THE SECTION TITLED "DURATION OF GUARANTY'. NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY
EFFECTIVE. THIS GUARANTY IS DATED JULY 8,2008.
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:
kg!i<:4:>v..;: 'F�!i�v:�:[:L:C�i:' :( ,�t.is��4iJiS'e`.,`v:L:�v�'Lv:C;i:,v.Y•iri:i � 2�^.
•"'•`•f` '%'a'`s,:i'ie ".3ti .�; ;, :.Seal)
•
X:•; :i':• ,i:',.�..y�S,Y;.Y':z�' ..,�5'i';.•.<.....:.:i'?• �ii3'z. 8.l
vin K.Patel
t;.
COMMERCIAL GUARANTY S
Loan No: 26475889002 (Continued) Page 4
INDIVIDUAL ACKNOWLEDGMENT
COMMONWEALTH OF PENNSYLVANIA
)SS
COUNTY OF .,(1)0.1114-41)
On this,the t day of /C , 20 O() /before me ''I G(e_G-9/a
, the undersigned Notar Public, personally appeared Navin K. Patel, 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.
7H OF PENNSYLVANIA
COMMONWEAL / p
NOTARIAL SEAL
A PUBL C otary Public In and for the State of C/(!//i
MICHELLE ELLIOTT NOTARY
DERRY TMOWNSHIP DAUPHIN COUI 20 1
MY COMMISSION EXPIRES JUN
W!0 PRO 1.rtdiiy Vv.9.40.00.003 c...Kaoline MEndEl Solution,.Inc 1997.2039. A9 9931.Noon.. •PA e:1CFlµpu9m0.iO 70.10107 P0.1
STRADLEY RONON STEVENS &YOUNG, LLP - `ti01-H 0'•`f ' 3
Gretchen M. Santamour(ID No. 41720) 20 AM it: 57
Steven J. White, Esquire(ID No. 206442) NOV
2600 One Commerce Square CUMBERLAND COUNTY
Philadelphia, PA 19103 PE tnX At 'laintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, • CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
Newport Beach, CA 92660 • CIVIL ACTION
•
Plaintiff, TERM
v. • ''ff
NO. 13' LOgR7 �4A)\Te 1
NAVIN K. PATEL
1188 Greenfield Drive •
Mechanicsburg, PA 17055 •
Defendant. •
PRAECIPE FOR ENTRY OF JUDGMENT BY CONFESSION
TO THE PROTHONOTARY:
Kindly enter judgment by confession in the above-titled action and assess damages in
favor of Plaintiff, Magnolia Portfolio, LLC, and against the Defendant, Navin K. Patel, in the
amount of$547,673.39, together with interest, from and after November 8, 2013, at the per diem
rate of$42.61, and all costs of suit and collection costs, including, without limitation, reasonable
attorneys' fees, as authorized under the Guaranty.
STRADLEY RONON STEVENS & YOUNG, LLP
November/(b, 2013 By:
Steven J. White, Esquire
Attorneys for Plaintiff, Magnolia Portfolio, LLC
BUSINESS#1970613 v.1
STRADLEY RONON STEVENS &YOUNG, LLP
Gretchen M. Santamour(ID No. 41720) '113 H0'I 2 Ate
Steven J. White,Esquire (ID No. 206442) �`UMSERLANU CO H-1-1
2600 One Commerce Square � pENNSYL.VANIA
Philadelphia,PA 19103 Attorneys for Plaintiff,Magnolia
Tel. (215) 564-8000 Portfolio,LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550 •
Newport Beach, CA 92660 • CIVIL ACTION
Plaintiff, TERM
v. NO. 13 -LoS4q etvl l
NAVIN K. PATEL •
1188 Greenfield Drive •
Mechanicsburg,PA 17055 •
Defendant. •
AFFIDAVIT OF ADDRESS AND NON-MILITARY SERVICE
I, Brian Sosner,being first duly sworn according to law,depose and say:
1. I am an Asset Manager of Sabal Financial Group LP,servicer for Plaintiff,
Magnolia Portfolio,LLC, successor by assignment to Orrstown Bank("Magnolia").
2. On or about December 20,2012 and February 12,2013,Orrstown Bank assigned
all of its right,title and interest in the Loan Documents(as defined in the Complaint)to
Magnolia.
3. I am authorized to make this Affidavit of Address and Non-Military Service on
behalf of Magnolia.
4. The last known address of the Defendant,Navin K. Patel, is 1188 Greenfield
Drive,Mechanicsburg, PA 17055.
5. The Defendant is an individual,however,the Defendant is not subject to the
provisions of the Soldiers' and Sailors' Civil Relief Act of 1940 and the amendments thereto.
BUSINESS# 1970613 v.1
•
6. The address of Magnolia is 4675 Macarthur Court, Suite 1550,Newport Beach,
California 92660.
Brian Sosner,Asset Manager of Sabal Financial
Group,LP, servicer for Plaintiff,Magnolia
Portfolio, LLC
SWORN AND SUBSCRIBED
BEFORE ME THIS I I
DAY OF NOVEMBER,2013
./1 y/AVAA-
Notary Public
AUTUMN RYCKMAN
Notary Public
Baltimore County
Maryland
My Commission Expires Apr 29.2017
-2-
BUSINESS#1970613 v.1
, THE 'RO1 H011OTAi,'.
STRADLEY RONON STEVENS &YOUNG,LLP
Gretchen M. Santamour(ID No. 41720) 2013 NOV 20 AM {'J` 57
Steven J. White,Esquire(ID No. 206442) CUMBERLAND COUNTY
2600 One Commerce Square PENNSYLVANIA
Philadelphia,PA 19103 Attorneys for Plaintiff,Magnolia
Tel. (215)564-8000 Portfolio,LLC
Fax(215) 564-8120
MAGNOLIA PORTFOLIO,LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550 •
Newport Beach,CA 92660 • CIVIL ACTION
Plaintiff, TERM
v. •
•
• NO. 13--(1004 Q V+ I `rerrvl
NAVIN K. PATEL •
1188 Greenfield Drive •
Mechanicsburg,PA 17055 •
Defendant. ••
AFFIDAVIT OF INCOME
I,Brian Sosner,being first duly sworn according to law,depose and say:
1. I am an Asset Manager of Sabal Financial Group LP, servicer for Plaintiff,
Magnolia Portfolio,LLC, successor by assignment to Orrstown Bank("Magnolia").
2. On or about December 20, 2012 and February 12, 2013, Orrstown Bank assigned
all of its right,title and interest in the Loan Documents(as defined in the Complaint)to
Magnolia.
3. I am authorized to make this Affidavit of Income on behalf of Magnolia.
BUSINESS#1970613 v.1
4. To the best of my knowledge,the annual income of the Defendant,Navin K.
Patel, exceeds$10,000.00 per year.
itor
Bri. :ostler, Asset Manager of Sabal Financial
Group,LP, servicer for Plaintiff,Magnolia
Portfolio, LLC
SWORN AND SUBSCRIBED
BEFORE ME THIS /
DAY OF NOVEMBER, 2013
.. _IL... VIZ ,f/ .fit..t
Notary Public
AUTUMN RYGKMAN
Notary Public
Baltimore County
Maryland
My Commission Expires Apr 29,2017
-2-
BUSINESS#1970613 v.1
• J J
1
F,Lf.D-OFFICF.
THE PRO T HOUO trot;'}'
STRADLEY RONON STEVENS &YOUNG, LLP
`-'',, V AM I • S
Gretchen M. Santamour(ID No. 41720)
Steven J. White,Esquire(ID No. 206442) CUMBERLAND COUNTY
2600 One Commerce Square PENNSYLVANIA
Philadelphia,PA 19103 Attorneys for Plaintiff,Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax(215)564-8120
MAGNOLIA PORTFOLIO,LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550 •
Newport Beach, CA 92660 CIVIL ACTION
Plaintiff, TERM
v. I,•
NAVIN K. PATEL
•
NO LS (vB clTecM
1188 Greenfield Drive
Mechanicsburg, PA 17055 •
Defendant. ••
AFFIDAVIT OF NON-RETAIL SALES CONTRACT
AND NON-CONSUMER CREDIT TRANSACTION
I, Brian Sosner,being first duly sworn according to law, depose and say:
1. I am an Asset Manager of Sabal Financial Group LP, servicer for Plaintiff,
Magnolia Portfolio,LLC, successor by assignment to Orrstown Bank ("Magnolia").
2. On or about December 20,2012 and February 12,2013, Orrstown Bank assigned
all of its right,title and interest in the Loan Documents (as defined in the Complaint)to
Magnolia.
3. I am authorized to make this Affidavit of Non-Retail Sales Contract and Non-
Consumer Credit Transaction on behalf of Magnolia.
4. The transactions represented by the instruments attached to the Complaint in
Confession of Judgment filed in this matter were business transactions,and were not entered into
for personal, family or household purposes.
BUSINESS#1970613 v.1
► •t J
•
•
5. The Guaranty,pursuant to which Magnolia seeks to confess judgment against the
Defendant, is not a retail sales contract or a retail installment contract.
6. Additionally,the judgment herein is not being entered by confession against any
natural person in connection with a consumer credit transaction.
Brian Sosner,Asset Manager of Sabal Financial
Group,LP, servicer for Plaintiff,Magnolia
Portfolio, LLC
SWORN AND SUBSCRIBED
BEFORE ME THIS
DAY • N S VEMBE�, 2013
Notary Public
-2 -
BUSINESS#1970613 v.1
7 •1 J
{ 1' LEO-UF 16;i,{ icy PROTHC ID T;
STRADLEY RONON STEVENS &YOUNG, LLP
Gretchen M. Santamour(ID No. 41720) 7013 NOV 20 AM 11''` 57
Steven J. White, Esquire(ID No. 206442)
CUMBERLAND
2600 One Commerce Square PENNSYLVANIA
Philadelphia,PA 19103 Attorneys for Plaintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax(215) 564-8120
MAGNOLIA PORTFOLIO, LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550 •
Newport Beach, CA 92660 CIVIL ACTION
Plaintiff, • TERM
v.
•
•
NO 13 - Lo � �V11T
NAVIN K. PATEL •
1188 Greenfield Drive ••
Mechanicsburg,PA 17055
Defendant.
AFFIDAVIT OF DEFAULT AND ASSESSMENT OF DAMAGES
AND VERIFICATION OF ALLEGATIONS IN COMPLAINT
I,Brian Sosner, being first duly sworn according to law, depose and say:
1. I am an Asset Manager of Sabal Financial Group LP, servicer for Plaintiff,
Magnolia Portfolio, LLC, successor by assignment to Orrstown Bank("Magnolia").
2. On or about December 20, 2012 and February 12,2013,Orrstown Bank assigned
all of its right,title and interest in the Loan Documents(as defined in the Complaint)to
Magnolia.
3. I am authorized to make this Affidavit of Default and Assessment of Damages on
behalf of Magnolia.
4. The instruments attached as Exhibits(the"Instruments")to the Complaint in
Confession of Judgment(the"Complaint") filed in this matter are true and correct copies of the
original Instruments.
BUSINESS#1970613 v.1
5. The Defendant,Navin K. Patel(the"Defendant"), is in default of his obligations
under the Guaranty,as more fully set forth in the Complaint.
6. By reason of the Defendant's default under the Guaranty, as of November 8,
2013,there was due and owing to the Bank the amount of$547,673.39, comprised as follows:
Principal $ 471,954.67
Interest (as of 11/8/2013) $ 22,685.18
Late Charge Fee $ 3,569.55
Attorney's Fees(10%of Unpaid Principal $ 49,463.99
and Accrued Interest,as authorized by the
Guaranty)
TOTAL $ 547,673.39
together with interest from and after November 8, 2013, at the per diem rate of$42.62, and all
additional costs of suit and collection costs, including,without limitation,reasonable attorneys'
fees,as authorized under the Guaranty.
7. The allegations in the Complaint are true and correct to the best of my knowledge,
information and belief. ,
Brian S• ner, Asset Manager of Sabal Financial
Group, LP, servicer for Plaintiff,Magnolia
Portfolio,LLC
SWORN AND SUBSCRIBED
BEFORE ME THIS I I
DAY OF OVEMBER, 2013
,Ia.._ � ,.. 444, .
Notary Public
BUSINESS#1970613 v.1
•s• •
VERIFICATION
I, Brian Sosner, state that I am an Asset Manager of Sabal Financial Group, LP, servicer
for Magnolia Portfolio, LLC, the Plaintiff herein, and as such I am duly authorized to make this
Verification on behalf of plaintiff. The facts set forth in the within Complaint for Confession of
Judgment are true and correct to the best of my knowledge, information and belief, although the
language of the Complaint for Confession of Judgment is that of counsel and not of my own. To
the extent that the contents of the attached Complaint for Confession of Judgment have been
supplied by counsel, I rely upon counsel in making this Verification. I understand that the
statements made herein are subject to the penalties of 18 Pa. C.S. Section 4904 relating to
unworn falsification to authorities.
/ >le
Brian Sosner,Asset Manager of Sabal Financial
Group,LP, servicer for Plaintiff,Magnolia
Portfolio, LLC
Dated: November ■ ,2013
BUSINESS#1970613 v.1
STRADLEY RONON STEVENS & YOUNG, LLP
Gretchen M. Santamour(ID No. 41720)
Steven J. White, Esquire (ID No. 206442)
2600 One Commerce Square
Philadelphia, PA 19103 Attorneys for Plaintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
Newport Beach, CA 92660 CIVIL ACTION
•
•
Plaintiff, TERM
v.
• ''I
NO. I3 - LD 4 a Vii tins
NAVIN K. PATEL •
1188 Greenfield Drive •
Mechanicsburg, PA 17055
Defendant. •
JUDGMENT BY CONFESSION
AND NOW, this day of Nov 2013, a Complaint for Confession of Judgment
having been filed and an Affidavit as to the amount due having been filed; JUDGMENT IS
HEREBY ENTERED in favor of Plaintiff, Magnolia Portfolio, LLC, and against Defendant,
Navin K. Patel, in the amount of$547,673.39, together with interest, from and after November 8,
2013, at the per diem rate of$42.61, and all costs of suit and collection costs, including, without
limitation, reasonable attorneys' fees, as authorized under Guaianty.
RO T ::
BUSINESS#1970613 v.1
.
STRADLEY RONON STEVENS &YOUNG, LLP
Gretchen M. Santamour(ID No. 41720)
Steven J. White, Esquire (ID No. 206442)
2600 One Commerce Square
Philadelphia, PA 19103 Attorneys for Plaintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC, CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
•
Newport Beach, CA 92660 CIVIL ACTION
•
Plaintiff, TERM
v. :
•NAVIN K. PATEL • NO. (3 ` IDERalV�I�fCf-h')
1188 Greenfield Drive
•
•
Mechanicsburg, PA 17055
•
•
Defendant.
236 NOTICE
TO: NAVIN K. PATEL
1188 Greenfield Drive
Mechanicsburg, PA 17055
Notice is hereby given that a judgment by confession in the above-captioned
matter has been entered against you. "
170 F
. O • • • _
If you have any questions concerning the above,please contact:
Stradley, Ronon, Stevens &Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103
(215) 564-8000
Attorneys for Plaintiff, Magnolia Portfolio, LLC
BUSINESS# 1970613 v.1
MAGNOLIA PORTFOLIO, LLC, • IN THE COURT OF COMMON PI,EA5
as Assignee of Orrstown Bank : OF CUMBERLAND COUNTY,
• PENNSYLVANIA t �-",___
Plaintiff • -'`n
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v. • NO. 13-6894 c �?
•
•
NAVIN K. PATEL, `7 ••
•
•
• . 4f�
Defendant
PETITION TO OPEN JUDGMENT AND REQUEST FOR STAY OF PROCEEDINGS
AND NOW, comes the Petitioner/Defendant,Navin K. Patel ("Petitioner"), by and
through his counsel, Cunningham& Chernicoff, P.C., and submits this Petition to Open
Judgment and Request for Stay of Proceedings, as follows:
BACKGROUND
1. Respondent is Magnolia Portfolio, LLC ("Respondent"), a Delaware limited
liability company with its principal place of business at 4675 Macarthur Court,
Suite 1550, Newport Beach, California, 92660.
2. Petitioner, Navin K. Patel, is a sui juris individual residing at 1188 Greenfield
Drive, Mechanicsburg, PA 17055. Petitioner is the Defendant in the above-
captioned matter.
3. Petitioner seeks to evoke the equitable and discretionary powers of this Honorable
Court to open that certain Judgment entered in this Court on or about November
20, 2013 at docket number 13-6894 (the "Judgment").
4. On November 20, 2013, Respondent filed a Complaint in Confession of Judgment
Under Pa.R.C.P. 2951 (the "Complaint") for the sum of$547,673.39.
1
5. Petitioner allegedly guaranteed (the "Guaranty") a Note in the amount of
$640,000.00 (the "Note") in favor of Respondent, granted to Respondent by
Gurugovind, LLC, a Pennsylvania limited liability company ("Gurugovind"). The
basis for Respondent's Complaint is the purported breach by Petitioner of the
Guaranty allegedly permitting Respondent to confess judgment against Petitioner.
6. Respondent seeks to impose $49,463.99 in attorney's fees against Petitioner, a
punitive, unearned, and devastating sum, which is imposed simply because such
amount equates to ten percent(10%) of the principal and interest Respondent
alleges is owed by Petitioner.
II. PETITION TO OPEN JUDGMENT
7. Petitioner herein incorporates paragraphs 1 through 6 as if more fully set forth
herein.
8. A Petition to Open a Judgment is addressed to the equitable powers of the Court
and is a matter of judicial discretion. The Court will exercise this discretion when
the Petition has been promptly filed and a meritorious defense can be shown. See
generally Schultz v. Erie Ins. Exchange, 505 Pa. 90, 93, 477 A.2d 471, 472 (1984)
citing Balk v. Ford Motor Co., 446 Pa. 137, 140, 285 A.2d 182 (1971).
9. In the current matter, the Instant Petition to Open was filed with this Court
promptly after receiving notice of entry of Judgment.
10. A meritorious defense to the Complaint can be shown, as more fully set forth in
this Petition, primarily that the debt and attorney's collection fee purported to be
owed by Petitioner to Respondent is disputed.
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11. This Court should exercise its equitable discretion to open the Judgment so as to
allow Petitioner's meritorious defenses to be heard.
III. REQUEST FOR STAY OF PROCEEDINGS
12. Defendant hereby incorporates all of the above paragraphs as if more fully set
forth at length below.
13. Respondent has obtained the Judgment by confession.
14. The Judgment, for reasons stated above, should be opened to allow the Court to
determine the meritorious defenses of the Petitioner.
15. Failure to stay all matters, including without limitation, any levy or attachment,
would cause the Petitioner to incur unnecessary expense and unnecessary harm.
16. The harm that Petitioner would sustain far outweighs any potential injury that
would be incurred by the Respondent as a result of this stay of all proceedings
until the this Petition is heard.
WHEREFORE, Petitioner, Navin K. Patel, hereby respectfully requests this Honorable
Court open the judgment docketed to 13-6894 so as to permit Petitioner's meritorious defenses to
be heard, and that this Honorable Court stay all proceedings in the interim. Furthermore,
Petitioner respectfully requests this Honorable Court grant it such further relief as is just and
proper.
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Respectfully Submitted,
C INGHAM& CHERNICOFF, P.C.
By
Robert E. Chernicoff, Esquire
PA Supreme Court ID No: 23380
Gina L. Lauffer, Esquire
PA Supreme Court ID No: 313863
CUNNINGHAM & CHERNICOFF, P.C.
2320 North Second. Street
Harrisburg, PA 17110
Telephone: (717) 238-6570
Dated: December 70, 2013
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VERIFICATION
I, Navin K. Patel, a Defendant/Petitioner in the foregoing action, do hereby affirm that
the statements made in the foregoing are true and correct to the best of my knowledge,
information, and belief I understand that this Verification is made subject to the penalties of 18
Pa. C.S.A., Section 4904, relating to unsworn falsification to authorities.
Date: MA--/-5 / a
By: Navin K. Patel
CERTIFICATE OF SERVICE
I, Lisa Fuge, with the law office of Cunningham & Chernicoff, P.C., do hereby certify
that a true and correct copy of the PETITION TO OPEN JUDGMENT AND REQUEST
FOR STAY OF PROCEEDINGS in the above-captioned matter was sent first class U.S. Mail,
First Class Mail, postage prepaid on this date, to the following:
Magnolia Portfolio, LLC
c/oSteven J. White, Esquire
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103
CUNN GHAM & ERNICOFF, P.C.
cfr
Date: December O, 2013 By:
Lisa Fuge, Paralega
2320 North Second Street
Harrisburg, PA 17110
Telephone: (717)238-6570
F:\Home\GLAUFFER\DOCS\Patel,Navin et al\Petitions to Open-$547,673\Navin-13-6894.wpd
MAGNOLIA PORTFOLIO, LLC, • IN THE COURT OF COMMON PLEAS
as Assignee of Orrstown Bank • OF CUMBERLAND COUNTY,
•
PENNSYLVANIA = -
Plaintiff •
•
v. NO. 13-6894 (f)} --
•
3>c. __.
NAVIN K. PATEL, •
•
Defendant •
RULE TO SHOW CAUSE
AND NOW, this &IL- day of s7-K... , 201X, it is hereby ORDERED that:
1. A Rule is issued upon Respondent to show cause, if any it has, why the Judgment
entered in the above-captioned matter should not be opened and the defenses of
the Petitioner be permitted;
2. The Respondent shall file an Answer to the Petition to Open Judgment within
31) days from the days of service upon the Respondent;
3. The Petition shall be decided under Pa.R.C.P. 206.7;
4. Depositions shall be completed within days of this date;
5. Argument shall be held on -e-&-- , 201in Courtroom No. °L
of the Cumberland County Courthouse; L2-# //.'oo A^-
6. Notice of the entry of this Order shall be provided to all parties by the Petitioner;
and
7. All proceedings, including all executions on the judgment docketed hereto are
stayed pending this Court's review and determination of the Petition to Open
Judgment and ruling thereon and until the entry of an Order dissolving such Stay.
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STRADLEY RONON STEVENS &YOUNG, LLP
Gretchen M. Santamour(ID No. 41720)
Steven J. White, Esquire (ID No. 206442)
2600 One Commerce Square
Philadelphia, PA 19103 Attorneys for Plaintiff, Magnolia
Tel. (215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
Newport Beach, CA 92660 CIVIL ACTION
Plaintiff,
V. .
nt 1" _
• -.-r-; r,; ;1;
NAVIN K. PATEL u r
1188 Greenfield Drive NO. 13-6894
Mechanicsburg, PA 17055 �.(--) `1; :
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Cjr
Defendant. ,
ANSWER OF MAGNOLIA PORTFOLIO TO DEFENDANT'S PETITION
TO OPEN JUDGMENT AND REQUEST FOR STAY OF PROCEEDINGS
Plaintiff, Magnolia Portfolio, successor by assignment to Orrstown Bank
("Plaintiff," or "Magnolia"), by and through its attorneys, Stradley Ronon Stevens & Young,
LLP, hereby submits this Answer to the Petition to Open Judgment and Request for Stay of
Proceedings (the "Petition") filed by Defendant, Navin K. Patel (the "Defendant"), and avers as
follows:
1. Admitted.
2. Admitted.
3. It is admitted that Defendant has filed a Petition to Open the Judgment filed in
favor of Plaintiff against Defendant. Defendant's characterizations of the Petition are a legal
conclusion to which no response is required.
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•
4. Admitted. By way of further answer, the amount of the judgment (the
"Judgment") entered against Defendant under the above caption and docket number also
includes interest from and after November 8, 2013, at the per diem rate of $419.64, and all
additional costs of suit and collection costs, as authorized under that certain Commercial
Guaranty dated July 8, 2008, executed by Defendant in favor of Magnolia (the"Guaranty")
5. Admitted only that the Judgment is based on the warrant of attorney contained in
the Guaranty. Pursuant to the terms of the Guaranty, the Defendant guaranteed payment of sums
outstanding under that certain Promissory Note dated July 7, 2008 (the "Note") executed by
Gurugovind, LLC ("Gurugovind") in favor of Magnolia. See Complaint, Ex. C at 1. With
respect to the balance of the allegations contained in Paragraph 5, the Complaint in Confession
of Judgment filed by Magnolia on November 20, 2013 (the "Complaint") speaks for itself, and
no additional response is required. Copies of the Note and the Guarantee are attached to the
Complaint as Exhibits B and C, respectively.
6. Denied. Paragraph 6 contains conclusions of law to which no response is
required. By way of further answer:
(a) The warrant of attorney contained in the Guaranty expressly authorizes an
attorney's commission of 10% of the unpaid principal balance of the Note, and the
Defendant has not disputed the outstanding principal balance owed to Magnolia. See
Complaint, Ex. C. at 3, Aff. of Default and Assessment of Damages of Brian Sosner.
Additionally, Pennsylvania courts have not hesitated to uphold an attorney's fee as high
as 15% when such fee is provided for in the warrant of attorney. See e.g., RAIT
Partnership, LP v. E. Point Properties I, Ltd., 957 A.2d 1275, 1279 (Pa. Super. 2008)
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•
(upholding 15% attorney's provision in warrant of attorney); Dollar Bank, Fed. Say.
Bank v. Northwood Cheese Co. Inc., 637 A.2d 309, 313-14 (Pa. Super. 1994) (same).
(b) Pursuant to the terms of the Guaranty, the Defendant has unconditionally
guaranteed "full and punctual payment and satisfaction of the Indebtedness of
[Gurugovind] to [Magnolia]." See Complaint, Ex. C at 1. The definition of
"Indebtedness" in the Guaranty includes "attorneys' fees, arising from any and all debts,
liabilities and obligations that [Gurugovind] individually or collectively or
interchangeably with others owes or will owe [Magnolia] under the Note and Related
Documents." See id., Ex. C at 1. The phrase "Related Documents" is defined as "all
promissory notes, credit agreements, loan agreements . . . guaranties . . . and all other
instruments, agreements and documents, whether now or hereafter existing, executed in
connection with the Indebtedness." See id., Ex. C at 3. Additionally, the provision of the
Guaranty titled "Attorney's Fees; Expenses"provides as follows:
"[Defendant] agrees to pay upon demand all of[Magnolia's] costs
and expenses, including [Magnolia's] reasonable attorneys' fees
and [Magnolia's] legal expenses incurred in connection with the
enforcement of this Guaranty. . . . [Magnolia] may hire or pay
someone else to help enforce this Guaranty, and [Defendant] shall
pay the costs and expenses of such enforcement. Costs and
expenses include [Magnolia's] reasonable attorneys' fees and legal
expenses whether or not there is a lawsuit, including reasonable
attorneys' fees and legal expenses for . . . appeals, and any
anticipated post-judgment collection services."
See id., Ex. C at 2. An analogous provision included in the Note provides that
Gurugovind will pay all legal fees incurred in connection with Magnolia's efforts to
enforce and collect on the Note. See id., Ex. B at 2.
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(c) Magnolia has incurred substantial attorneys' fees and costs in connection with
collecting on and enforcing the Note, the Guaranty, and the Related Documents (as
defined in the Guaranty). Magnolia has incurred legal fees in connection with the
following tasks:
(i) reviewing the Note, the Guaranty and the Related Documents;
(ii) confessing judgment against the Defendant, other guarantors of the Note
and Gurugovind;
(iii) attempting to negotiate a settlement with the Defendant and Gurugovind;
(iv) seeking the appointment of a receiver for the purpose of preserving and
liquidating the collateral securing the Note; and
(v) opposing the Petition.
Whether or not the Petition is opened, Magnolia will continue to incur fees in executing
on the Judgment, taking discovery in aid of execution, and pursuing its remedies and
rights until it is paid.
(d) The 10% commission authorized by the Guaranty is included in the Judgment for
the purposes of fixing a sum certain for the accruing costs of litigation and collection.
Additionally, even if the court finds that the fees are excessive, the proper remedy is to
modify, not open, the Judgment. See, e.g., Dollar Bank, 637 A.2d at 314; Colony
Federal Say. and Loan Ass'n v. Beaver Valley Engineering Supplies Co., 631 A.2d 343,
346-47 (Pa. Super. Ct. 1976). As of January 14, 2014, the actual fees incurred by
Magnolia in connection with its efforts to collect the amounts owed to it under the
Guaranty and the related Note are believed to be approximately $22,423.01. These fees
will continue to grow as the amounts owed by the Defendant remain uncollected and the
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Defendant fights Magnolia's efforts to pursue its legitimate remedies. The 10%
commission included in the Judgment is lawful, warranted, and not excessive. The
Defendant agreed to the 10% commission in the Guaranty as a condition to the loan to
Gurugovind. It would be unjust for the Defendant to selectively reject terms of the loan
documents after the loan was made, and as an owner of Gurugovind, was given the
opportunity to pursue a business venture.
7. No response is required to the averments set forth in Paragraph 7 of the Petition.
8. The averments of Paragraph 8 constitute conclusions of law and legal citations to
which no response is required.
9. Denied.
10. The averments of Paragraph 10 contain conclusions of law to which no response
is required. To the extent these averments are factual in nature, they are denied. The Defendant
has provided no evidence or made any factual averment in support of its blanket claim that the
"debt" is disputed. A petition to open must be denied when it does not provide clear, direct,
precise and believable evidence of a meritorious defense sufficient to raise a jury question. Iron
Workers Say. and Loan Ass'n v. IWS, Inc. 622 A.2d 367, 371 (Pa. Super. 1993). By way of
further answer, the Defendant has produced no evidence regarding the purported excessiveness
of the fees claimed, and the warrant of attorney contained in the Guaranty expressly authorizes
an attorney's commission of 10% of the unpaid principal balance of the Note. See Complaint,
Ex. C at 3. Pennsylvania courts have not hesitated to uphold an attorney's fee as high as 15%
when such fee is provided for in the warrant of attorney. See e.g., RAIT Partnership, 957 A.2d at
1279 (upholding 15% attorney's provision in warrant of attorney); Dollar Bank, 637 A.2d at
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313-14 (same). The Defendant has merely asserted that the fees are unwarranted "simply
because such amount equates to ten percent of the principal and interest." Where a warrant of
attorney specifically authorizes the amount of attorneys' fees claimed and no argument is made
as why such fees are excessive, Pennsylvania courts have routinely denied petitions to open. See
RAIT Partnership, 957 A.2d at 1280; Dollar Bank, 637 A.2d at 314. Further, as set forth in
Paragraph 6 above, even if the court finds that the fees are excessive, the proper remedy is to
modify, not open, the Judgment. See Dollar Bank, 637 A.2d at 314. Magnolia adhered to the
requirements of the warrant of attorney, and no meritorious defense to the debt or the attorney's
commission included in the Judgment amount has been presented.
11. The averments of Paragraph 11 constitute conclusions of law to which no
response is required. To the extent these averments are deemed to be factual in nature, they are
denied. By way of further answer, Magnolia complied with the requirements of the warrant of
attorney, and no meritorious defense to the attorney's commission included in the Judgment
amount has been presented. Again, even if the court finds that the fees are excessive, the proper
remedy is to modify, not open, the Judgment. See Dollar Bank, 637 A.2d at 314.
12. No response is required to the averments set forth in Paragraph 12 of the Petition.
13. Admitted.
14. The averments of Paragraph 14 constitute conclusions of law to which no
response is required. To the extent these averments are deemed to be factual in nature, they are
denied. By way of further answer, Defendant has failed to meet the standard required under
Pennsylvania law to warrant granting the relief sought in the Petition. The Defendant has failed
to allege a meritorious defense and has failed to present any evidence of a defense, much less
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evidence sufficient to require submission of this matter to the jury (e.g. clear, direct, precise and
believable), which is the long standing standard in Pennsylvania for opening a judgment.
15. Denied. Pennsylvania Rule of Civil Procedure 2959(b) gives the court discretion
to grant a stay of proceedings but only if prima face grounds for relief are set forth in the
Petition. While a stay has already been ordered, Defendant failed to present prima facie grounds
for relief Furthermore, Defendant failed to provide any support for its statement that failure to
stay execution would cause unnecessary harm and expense. The stay could cause harm to
Magnolia because of potential waste and depreciation of Defendant's assets or ability to pay.
Thus, the stay should be lifted. If this Court elects to continue to impose a stay of execution,
however, the Court should require Defendant to post a bond in the amount of 150% of the
amount of the Judgment in order to protect Plaintiffs interests.
16. Denied. There is no evidence to support the averments of Paragraph 16. While a
stay has already been ordered, Defendant has failed to present prima facie grounds for relief and
has, in fact, presented only meritless and frivolous arguments in support of its Petition. Thus, the
stay should be lifted. If this Court elects to continue to impose a stay of execution, however, the
Court should require Defendant to post a bond in the amount of 150% of the amount of the
Judgment in order to protect Plaintiffs interests.
BUSINESS#2011538 v.1
WHEREFORE, it is respectfully requested that the Court enter an order denying the
Petition in full.
STRADLEY RONON STEVENS & YOUNG, LLP
February 4, 2014 By:
Gretchen Sarftamour, Esquire
Steven J. White, Esquire
2600 One Commerce Square
Philadelphia, PA 19103
Tel. (215) 564-8000
Fax (215) 564-8120
Attorneys for Plaintiff, Magnolia Portfolio
BUSINESS#2011538 v.1
i'
STRADLEY RONON STEVENS & YOUNG, LLP
Gretchen M. Santamour (ID No. 41720) Y F�FEB -7
Steven J. White, Esquire (ID No. 206442) C`} p,,- `OIJ Cyr
2600 One Commerce Square PEENS � ����, t,
Philadelphia, PA 19103 Attorneys for Plai �`{ lMagnolia
Tel. ( 215) 564-8000 Portfolio, LLC
Fax (215) 564-8120
MAGNOLIA PORTFOLIO, LLC CUMBERLAND COUNTY
as Assignee of Orrstown Bank COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
Newport Beach, CA 92660 CIVIL ACTION
Plaintiff,
V.
NAVIN K. PATEL NO. 13-6894
1188 Greenfield Drive
Mechanicsburg, PA 17055
Defendant.
CERTIFICATE OF SERVICE
I, Steven J. White, hereby certify that on February 6, 2014, I caused a true and
correct copy of the Answer of Magnolia Portfolio, LLC to the Petition to Strike, or, in the
Alternative, to Open Judgment and Request for Stay of Proceedings to be served upon the
following parties via first class, U.S. mail, postage prepaid, and electronic mail:
Robert E. Chernicoff, Esquire Gina L. Lauffer, Esquire
CUNNINGHAM & CHERNICOFF, P.C. CUNNINGHAM & CHERNICOFF, P.C.
2230 North Second Street 2230 North Second Street
Harrisburg, PA 17110 Harrisburg, PA 17110
rec @cclawpc.com glauffer @cclawpc.com
)� J
Steven f White, Esquire
Attorney for Plaintiff
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MAGNOLIA PORTFOLIO, LLC : IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
V.
MANOJ K. PATEL
MANOJ K. PATEL
KANJIBHAI R. PATEL
KANJIBHAI R. PATEL
LAXMIKANT K. PATEL
LAXMIKANT K. PATEL
NAVIN K. PATEL
NAVIN K. PATEL
: NO. 13-6882 CIVIL
: NO. 13-6893 CIVIL
: NO. 13-6891 CIVIL
: NO. 13-6883 CIVIL
: NO. 13-6892 CIVIL
: NO. 13-6881 CIVIL
: NO. 13-6884 CIVIL _
: NO. 13-6894 CIVILV
WV +11 801 '110Z
ORDER OF COURT
AND NOW, this 13th day of March, 2014, upon consideration of the
Defendants/Petitioners' Petition to Open Judgment and Request for Stay of
Proceedings, the Plaintiff/Respondent's Response thereto, the briefs filed by the parties
and after oral argument and review of relevant case law applicable to the Petition; the
Court finds that legal fees at the present time shall be limited to reasonable legal fees
paid by the Plaintiff to date to recover this judgment and that the Request for Stay will
be lifted within 20 days of today's date;
Accordingly, IT IS HEREBY ORDERED AND DIRECTED that the parties submit
to the Court a proposed Order which substantially accomplishes the findings set forth
above on or before March 24, 2014. If an agreed upon Order cannot be accomplished,
each party shall forward a separate Order and the Court will resolve the differences.
By the Court,
.fen J. White, Esquire
Attorney for Plaintiff
Chernicoff, Esquire
Gina L. Lauffer, Esquire
Attorneys for Defendants
bas
Copees /72.t
MAGNOLIA PORTFOLIO, LLC • CUMBERLAND COUNTY
as Assignee of Orrstown Bank ▪ COURT OF COMMON PLEAS
4675 Macarthur Court, Suite 1550
•
Newport Beach, CA 92660 CIVIL ACTION
Plaintiff,
•
•
v. •
NAVIN K. PATEL • NO. 13-6894 rn
1188 Greenfield Drive
•
Mechanicsburg, PA 17055 �=
•
Defendant.
•
ORDER
AND NOW, this30 day of V\pc 2014, upon consideration of the Defendant's
Petition to Open Judgment and Request for Stay of Proceedings (the "Petition") and the
Response of the Plaintiff thereto, and upon consideration of the arguments raised by the parties at
the hearing on the Petition, it is hereby
ORDERED, that the Petition is GRANTED, solely for the purposes of modifying
the confessed judgment entered against the Defendant (the "Judgment") to reflect the Plaintiff's
actual attorneys' fees; and it is further
ORDERED, that the amount of the Judgment shall be modified to $547,055.31
which amount reflects the Plaintiff's actual attorneys' fees and all interest accrued on the
Judgment as of March 19, 2014; and it is further
ORDERED, that the Judgment shall accrue interest from and after March 19,
2014 at the per diem rate of$42.61; and it is further
ORDERED, that the stay of proceedings imposed by the Rule to Show Cause
entered in this matter is DISSOLVED; and it is further
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ORDERED, that in light of the forgoing modification of the Judgment, no further
proceedings are necessary in this case, and the Petition shall be deemed adjudicated in its
entirety.
BY THE COURT
M.L. Ebe , Jr., J.
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