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HomeMy WebLinkAbout14-5195 o 1� Supreme Co., ;-n nsylvania Cour o` imo leas For Prothonotary Use Only: `4N , " 1� Apt Docket No: Cud land County W The information collected on this form is used solely for court administration purposes. This form does not supplement or replace the filing and service ofpleadings or other papers as required by law or rules of court. Commencement of Action: E S IM Complaint © Writ of Summons ® Petition © Transfer from Another Jurisdiction ® Declaration of Taking � E C Lead Plaintiff's Name: Lead Defendant's Name: Magnolia Portfolio, LLC Chestnut St Townhouses, LLC � T Dollar Amount Requested: ©within arbitration limits I Are money damages requested? 0 Yes © No (check one) ®x outside arbitration limits O N Is this a Class Action Suit? ®Yes 0 No Is this an MDJAppeal? 0 Yes 0 No i A Name of Plaintiff/Appellant's Attorney: James D.Young, Esquire EA Check here if you have no attorney(are a Self-Represented [Pro Se] Litigant) r Nature of the Case: Place an"X"to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim,check the one that you consider most important. TORT(do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS If [3 Intentional © Buyer Plaintiff Administrative Agencies E © Malicious Prosecution © Debt Collection: Credit Card Board of Assessment ® Motor Vehicle © Debt Collection:Other © Board of Elections ®Nuisance ® Dept.of Transportation ® Premises Liability ® Statutory Appeal:Other S ® Product Liability(does not include mass tort) ® Employment Dispute: E Slander/Libel/Defamation Discrimination i C ® Other: © Employment Dispute:Other ® Zoning Board � ® Other: ,r I rE3 Other: O MASS TORT © Asbestos i N ® Tobacco Toxic Tort-DES ® Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS i 13 Toxic Waste I ® Ejectment ® Common Law/Statutory Arbitration B Other: © Eminent Domain/Condemnation iJ Declaratory Judgment M Ground Rent Q Mandamus 0 Landlord/Tenant Dispute ©Non-Domestic Relations Mortgage Foreclosure:Residential Restraining Order PROFESSIONAL LIABLITY 0 Mortgage Foreclosure:Commercial ®Quo Warranto i [3 Dental © Partition 13 Replevin M Legal © Quiet Title ®Other: ® Medical Q Other: ki © Other Professional: I L Updated 1/1/2011 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA MAGNOLIA PORTFOLIO, LLC, CIVIL DIVISION a Delaware limited liability company, assignee of Orrstown Bank, r v, Plaintiff, P/ Vs. TYPE OF PLEADING CHESTNUT ST TOWNHOUSES, LLC, CIVIL ACTION - COMPLAINT IN MORTGAGE FORECLOSURE Defendant. FILED ON BEHALF OF: Magnolia Portfolio, LLC, a Delaware limited liability company, assignee of Orrstown Bank, Plaintiff TO: DEFENDANT(s) COUNSEL OF RECORD FOR THIS YOU ARE HEREBY NOTIFIED TO PLEAD TO THE PARTY: ENCLOSED COMPLAINT WITHIN TWENTY(20)DAYS FROM SERVICE HEREOF ORA DEFAULT JUDGMENT Scott A. Dietterick, Esquire MAY BE ENTERED AGAINST YOU. Pa. I.D. #55650 James D.Young,Esquire Pa.I.D.#53904 ATTOV FOR PLAINTIFF I HEREBY CERTIFY THAT THE ADDRESS OF THE PLAINTIFF IS: JSDC LAW OFFICES v-- 4675 MacArthur CourtSuite 1550 s Newport Beach,CA 92660 AND THE DEFENDANT(S): P.O. BOX 650 30 E.Maplewood nue Hershey,PA 17033 en r— Ca anicsburg, 70 --?r' CD - t-� -r :z _ A O EY FOR PLAINTIF C7 - (7)U -) (717) 533-3280 CERTIFICATE OF LOCATION I HEREBY CERTIFY THAT THE LOCATION OF THE REAL ESTATE AFFECTED BY THIS LIEN IS 105,111,119,125,127,129,17 S.Chestnut Street,Mechanicsburg,PA 17055 11 S.Chestnut Street&11 S.Chestnut Street Rear,Mechanicsburg,PA 17055 7 nybrook Roa ar isle,PA 17013 A O EY FOR PLAINTIFF / //�• (-7 e— i 3�" 6A0 IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE,BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. §1692 ET SEQ. (1977),DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF, IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH THE LAW PROVIDES THAT YOUR ANSWER TO THIS COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE,NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MAGNOLIA PORTFOLIO, LLC, a Delaware CIVIL ACTION - LAW limited liability company, assignee of Orrstown Bank, NO. Plaintiff, V. : CHESTNUT ST TOWNHOUSES, LLC, Defendant. NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claim set forth in the following pages, you must take action within twenty(20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFOMRATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. NOTICE TO DEFEND & LAWYER REFERRAL SERVICE Cumberland County Bar Association 32 S. Bedford Street Carlisle, PA 17013 Phone (717) 249-3166 (800) 990-9108 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MAGNOLIA PORTFOLIO, LLC, a Delaware CIVIL ACTION - LAW limited liability company, assignee of Orrstown Bank, NO. Plaintiff, V. CHESTNUT ST TOWNHOUSES, LLC, Defendant. AVISO USTED HA SIDO DEMONDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro do los proximos veinte (20) dias despues de la notifacacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comperencencia escrita y redicanco en la Courte por escrito sus defensas de, y objecciones a, los demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero O propieded u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABAGADO IMMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO O NO PUEDE PAGARLE A UNO, LLAME A VAYA A LA SIGUEINTE OFICINA PARA AVERIGUAR DONDE PUEDE ENCONTRAR ASISTENCIA LEGAL. NOTICE TO DEFEND & LAWYER REFERRAL SERVICE Cumberland County Bar Association 32 S. Bedford Street Carlisle, PA 17013 Phone (717) 249-3166 (800) 990-9108 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MAGNOLIA PORTFOLIO, LLC, a Delaware CIVIL ACTION - LAW limited liability company, assignee of : Orrstown Bank, NO. Plaintiff, V. : CHESTNUT ST TOWNHOUSES, LLC, Defendant. CIVIL ACTION—COMPLAINT IN MORTGAGE FORECLOSURE And now comes Magnolia Portfolio, LLC, a Delaware limited liability company, assignee of Orrstown Bank (hereinafter"Plaintiff, "Magnolia"and/or"Assignee"), by its attorneys, JSDC Law Offices, and files this Complaint in Mortgage Foreclosure as follows: 1. Magnolia Portfolio, LLC, a Delaware limited liability company, assignee of Orrstown Bank, which has a principal place of business at 4675 MacArthur Court, Suite 1550, Newport Beach, CA 92660. 2. Defendant, Chestnut St Townhouses, LLC is a limited liability company organized under the laws of the Commonwealth of Pennsylvania with a registered address of 30 E. Maplewood Avenue, Mechanicsburg, Pennsylvania 17055. 3. On or about March 28, 2008, Defendant executed and delivered a certain Promissory Note ("Note") in favor of Orrstown Bank in the original principal amount of $4,313,132.00. A true and correct copy of said Note is marked Exhibit"A", attached hereto and made a part hereof. 4. On or about March 28, 2008, as security for payment of the aforesaid Note, Defendant made, executed and delivered to Orrstown Bank a Mortgage in the original principal amount of$4,313,132.00 on the premises hereinafter described,with said Mortgage being recorded in the Office of the Recorder of Deeds of Cumberland County on April 4, 2008 as Instrument Number 200810513. A true and correct copy of said Mortgage containing a description of the premises subject to the Mortgage is marked as Exhibit`B", attached hereto and made a part hereof. 5. On or about February 5, 2013, Orrstown Bank, for value received, granted, sold, assigned and conveyed and set over to Magnolia Portfolio, LLC, all of its rights, title and interest in the Mortgage executed by Defendant on March 28, 2008, with said Assignment of Mortgage ("Assignment") being recorded in the Office of the Recorder of Deeds of Cumberland County on February 19, 2013 as Instrument Number 201305312. A true and correct copy of said Assignment is marked Exhibit"C", attached hereto and made a part hereof. 6. Defendant is the record and real owner of the aforesaid mortgaged premises. 7. Plaintiff was not required to send Defendant written Notice pursuant to 35 P.S. §1680.403(c) (Homeowner's Emergency Mortgage Assistance Act of 1983 —Act 91 of 1983), prior to commencement of this action for the reason that the aforesaid mortgaged premises is not the principal residence of Defendant. 8. Plaintiff was not required to send Defendant written Notice of Plaintiff's intention to foreclose said mortgage pursuant to 41 P.S. §403 (Act 6 of 1974) prior to the commencement of this action for the reason that said mortgage is not a"residential mortgage" as defined in 41 P.S. §101. 9. The amount due and owing Plaintiff by Defendant is as follows: Principal $ 3,645,091.10 Interest through 5/29/2014 $ 11,001.11 Default Interest $ 84,824.66 Other Fees $ 92,058.20 Attorney's Fees (Foreclosure) $ 1,650.00 Court, Sheriff&Title Costs $ 587.00 TOTAL $ 3,835,212.07 plus interest on the principal sum ($3,645,091.10) from May 30, 2014, at the rate of$658.14 per diem,plus additional charges, costs (including escrow advances), additional attorneys' fees and costs with foreclosure and sale of the mortgaged premises. WHEREFORE, Plaintiff as authorized by the Note and Mortgage, demands an in rem judgment in mortgage foreclosure against the Defendant in the amount of$3,835,212.07 with interest on the principal sum ($3,645,091.10) from May 30, 2014, at the rate of$658.14 per diem,plus additional charges, costs (including escrow advances), additional attorneys' fees and costs with foreclosure and sale of the mortgaged premises. JSDC LAW OFFICES Date: 13 �UN BY: (;�O� A k Sc A. Dietteric , Es y e PA I.D. # 5565 � James D. Young, Esquire PA I.D. #53904 P.O. Box 650 Hershey, PA 17033 (717) 533-3280 Attorneys for Plaintiff THIS IS AN ATTEMPT TO COLLECT A DEBT,AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. EXHIBIT "A" _.i 0_1 PR#AISSORY NOTE v�:::ff::,,r..... : :......... . Mc u .. .. i ..:M1r,.;•-�C[v.•M'vj:w:v �v5yir• - _ :.d::v:•}.-�d•n•:^•s�,.a,Y.n.yn. s`'u}. mimv}L}Mloanor ... -, ..References in the boxes above are for Lenders use only and do not imit the applicability of this document to any particularitem. Any item above contalning••*•"has been omitted due to text length limitations. Borrower: Chestnut St Townhouses.L(C(TIN: 20-0759011) lender: ORRSTOWN BANK 30 E Maplewood Avenue >±. SILVER SPRING OFFICE Mechanicsburg.PA 17055 77 BAST KING STREET I P O BOX 250 SHIPPENSBURG,PA 17257 Principal Amount: $4,313,132.00 Initial Rate: 5.250% Date of Note: March 28, 2008 Maturity Date: March 28.2028 PROMISE TO PAY. Chestnut St Townhouses:LLC('Borrower')promises to pay to ORRSTOWN BANK('Lender'},or order.in lawful money of the United States of America.the principal amount of Four Million Three Hundred Thirteen Thousand One Hundred Thirty-two&001100 Dollars ($4.313.132.0,together with interest on the unpaid principal,balance from March 28.2000.until paid in full. PAYMENT. Borrower will pay this loan in full immediately upon Lenders demand. H no demand is made. subject to any payment changes resulting from changes in the index.Borrower will pay this loan to accordance with the following payment schedule: 239 monthly principal and interest payments in the amount of $26.695.69, beginning April,28, 2008, with interest calculated on the unpaid principal balance at an interest rate based on the WALL STREET JOURNAL PRIME(currently 5.25%)plus 0.25%,but not to exceed 6.75%nor fall below 5.50%resulting M an iNltal interest rate of-5.50%:beginhing March 28.2013 with interest calculated on the unpaid principal balances at an interest rate based on the WALL STREET JOURNAL PRIME-Icurrently 5.250A)plus 0.25%:and one principal and interest payment of$1.421.452.65 on March 28.2028. Unless otherwise agreed or required by applicable law.payments will be applied first to any.accrued unpaid interest' then to principal: than to any late charges;and-then to any unpaid collection costs. The annual interest rate for this Note is computed on a 3651360 basis: that is, by applying the ratio of the annual interest rate over a year of 360 days, multipled 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 Wall 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 then each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 5.250% per annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate equal to the Index.resulting In an initial rate of 5.250%per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable-law. Whenever increases occur in the interest rate. Lender. at Its option. may do one or more of the following: (A) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date. (e) 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%) 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 it 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.Q.BOX 250 SHIPPENSBURG.PA 17257. LATE CHARGE. If a payment is 16 days or more lame. 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. 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.covenantor condition contained in this Note or in any of the'related documents or to comply with or to perform any term,obligation,covenantor condition contained in any other agreement between Lender and Borrower. 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. Death or Insolvency. The dissolution of Borrower (regardless of whether election to continue is made). any member withdraws from Borrower. or any other termination of Borrower's existence as a going business or the death of any member,the Insolvency of Borrower, PROMISSORY *E Nb Loan NOami, (Continued) Page 2 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 Forfeltive 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 governments[ 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 0 2) 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 05) .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. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid Interest immediately due,and then Borrower will pay that amount. ATTORNEYS' FEES: EXPENSES. 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, es whether or not there is a lawsuit, including reasonable attorneys' fees, expensfor 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. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 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 perrnitted 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 March 28,2008,to Lender on real property described as'Real Property located at 105, 111, 119, 125, 127, 129, 17 South Chestnut Street, Mechanicsburg, PA 17055, 11 S. Chestnut Street and 11 S.Chestnut St Rear, Mechanicsburg, PA 17055 and Bonny Brook Mobile-Home Park, 75 Bonny Brook Rd, Carlisle, PA 17013" and located in Cumberland County, Commornvealth of Pennsylvania. (B) an Assignment of All Rents to Lender on real property described as 'Real Property located at 105, 111, 119,125, 127, 129, 17 South Chestnut Street, Mechanicsburg, PA 17055, 11 S. Chestnut Street and 11 S. Chestnut St Rear, Mechanicsburg, PA 17055 and Bonny Brook Mobile Home Park,75 Bonny Brook Rd,Carlisle,PA 17013"and located in Cumberland County,Commonwealth of Pennsylvania. (C) a Mortgage dated March 28, 2008, to Lender on real property described as "Real Property located at 1005-1010 Flowers Lane and 1205 Valley Road,Marysville,PA 17053"and located in Rye Township, Perry County, Commonwealth of Pennsylvania. (D) an Assignment of All Rents to Lender on real property described as 'Real Property located at 1005-1010 Flowers Lane and 1205 Valley Road,Marysville,PA 17053"and located in Rye Township, Perry County,Commonwealth of Pennsylvania. (E) a Mortgage dated March 28, 2008,to Lender on real property described as"Real Property located at Ecko Village Apartments, Clifton Heights Rd,Hummelstown,PA 17036'and located in Derry Township,Dauphin County,Commonwealth of Pennsylvania. (F) an Assignment of All Rents to Lender on real property described as "Real Property located at Ecko Village Apartments, Clifton Heights Rd,Hummelstown,PA 17036"and located In Derry Township, Dauphin County,Commonwealth of Pennsylvania. 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 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. FINANCIAL INFORMATION.The Borrower agrees to provide the Lender with Federal Tax Rotuma 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 (10) 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). . 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 inaccuracy(les)should be sent to POWISSORY NOTE Loan No (Continued) .V' 104 Page 3 us at the following address:ORRSTOWN BANK 77 EAST KING STREET P.O.BOX 250 SHIPPENdBURG,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 7H�'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.000NSEL. 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: CHESTtJUT ST TOWN H SES,LLC v : } � •t4 , ua . • },�. .;:< y :fix.s. �:.. �. ,fit-..- ... By:�:�:>. 3<' ..•;.��:'..:• a':.::;:',•7�)�t�•'At•'Fca:,`�J,�,:t•�} 3'%;�:/i:v�:�;c P. JoM b0PeMkyCMem or of stout St Townhouses,LLC IA..E110/10lRnSty 11>r i.99,pp/Ip8 Cep Nu4d R.�eiY Beeeknw Me.1897.1008. MX*be,evved -PA w1C{1'Ml1Q7 JC T8.18119 PILI DISCLO F(OCONFESSION OF J MEI* .v+++ `.vn.'`'•+ .wv:mw•+ h.... - ++?s ,ri 'A•:\�imf' .,.v.. •• ..i 1:w:^!;'.• a... .+v:• wa am-- •'^•-v-iaiwmaw.•n:.nwvi:•r-.: - ....Ga3±:•�+ ,vti{: . .,^'. •-. w n wn'33+. 'vn<++':+.'vx'{ivq'... :-,�. rvw:: .... +-.... +\..^ "inl\'G4'•r\w� .mvnyna.:;k.. r3 'll����Ytt; ...... + a.,,nx,• � �'\'din+:tiNnvi% .•vwaw'\,Sv..;.;;v..v 3#iil:a.rn ��p:rmrwq:.•: ::....:. .. k: 9?i.. ... .' _» �+��:•+':'?�':...... _' n:vwfyYj� .,h ..M-`:~ r:::'..+' : r `.»��'L. :.....::=..:,.,.iy.`a;..•-•�x,,rw- OR References in the boxes above are for Lender's use only and do not limk the applicabiity of this document to any particular loan or item. Any Item above containing"••*"has been omitted due to text length limitations. Declarant: Chestnut St Townhouses,LLC KTIN: 20-0759011) Lender: ORRSTOWN BANK 30 E Maplewood Avenue SILVER SPRING OFFICE Mechanicsburg,PA 17055 77 EAST KING STREET P 0 BOX 250 SHIPPENSBURG,PA 17257 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS Z3� DAY OFA� '� 20p&, A PROMISSORY NOTE FOR$4,313,132.00 OBLIGATING DECLARANT TO REPAY THAT AMOUNT. A. THE UNDERSIGNED UNDERSTANDS THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST DECLARANT IN COURT. AFTER A DEFAULT ON THE NOTE. WITHOUT ADVANCE NOTICE TO DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE NOTE. THE UNDERSIGNED. ON BEHALF OF THE DECLARANT,IS KNOWINGLY. INTELLIGENTLY,AND VOLUNTARILY WANING THESE RIGHTS.INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT;AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S ENTERING JUDGMENT A S7 DECLARANT BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIALS: eiaT' i3 tk%t B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING. THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER,AFTER ENTRY OF JUDGMENT,AGAIN WITHOUT ETHER ADVANCE NOTICE OR A HEARING.TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING DECLARANT'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT, IN EXECUTING THE NOTE. BEING.FULLY AWARE OF DECLARANT'S. RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT,THE UNDERSIGNED, ON BEHALF OF THE DECLARANT.IS KNOWINGLY.INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANYMANNERMI.P.1TTED BY APPLICABLE STATE AND FEDERAL LAW,WITHOUT GING DECLARANT ANY ADVANCE NOTICE. INITIALS: C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES,THE UNDERSIGNED REPRESENTS THAT. IN L 1. DECLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. 2. A REPRESENTATIVE OF LEADER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO DECLARANT'S ATTENTION. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: CHESTNUT ST TOWHOUSES.LLC �x y:i;C;acs `'" .{.',.ik�'•'+•::tr3••,�•i'•,i�+brC.:'o`. <"• •.•?.-'-'�.•`.f•',,'� x`` B :.•),as•••.• .a ..i'a°�.< fi..�>�r'�•.4.- a,5*o?r`•:4.,yq,:t,,,•r++ r. .:.`+�" . P. J �opennsky, ember of Chestnut St Townhouses.LLC LASER MOU.I►a.VW.5.75.00M Cep.NdwO A­"UMWhe.1!77.2005. M&,W"R_0& .0A aW%Upwxje 70.1!11850.1 1 EXHIBIT "B" o 73 r � � zmaM Parcel Identification Number: RECORDATION REQUESTED BY: ORRSTOwN BANK SLYER SPRING OFRCE 77 EAST KING STREET P O BOX 260 SHIPPENSBURG,PA 17267 WHEN RECORDED MAIL TO: ORRSTOwN BANK 77 EAST KING STREET P.O.BOX 260 SHIPPENSBURG,PA 17267 t1 RE ORDER'S USE ONLY MORTGAGE Amount Secured Hereby: $4,313,132.00 THIS MORTGAGE dated March 28, 2008, Is made and executed between Chestnut St Townhouses, LLC, whose address is 30 E Maplewood Avenue, Mechanicsburg. PA 17055 (referred to below as "Grantor") and ORRSTOWN BANK, whose address is 77 EAST KING STREET,P 0 BOX 260,SHIPPENSBURG,PA 17257(referred to below as"Lender"). GRANT OF MORTGAGE. For vakr able consideration, Grantor grants, bargains. soft, conveys, assigns, transfers, releases,confirms and mortgages to Lender all of Grantor's right title,and Interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings,improvements and fixtures; an meats, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tonements, hereditammenta,and appurtenances thereunto belonging or anywise made appurtenant hereafter,and the reversidm;and remainders with respect thereto;am water,water rights watercourses and ditch rights(Including stock in utilities with ditch or Irrigation rights): and all other rights, royalties,and profits relating to the real property, Including without limitation all minerals,oil, geothermal and similar matters, (the "Real Property")located in Cumberland County,Commonwear of Pemsylvanls: See attached The Real Prouty or its address-Is-commonly known as 'l'95;.1-W, a2Y't2�;FP9,*7-- South Chestnut Street, Mechanlcabuta, PA 17055, 11 S. Chestnut St Rear, Mechanicsburg, PA 17055 and Bonnybrook Mobile Home Park, 75r'Bistfnybrook-Rd� CarBnle,PA 17013. CROSS-COLLATERALIZATION. In addition to the Note,this Mortgage secures all obligations,debts and liabilities,plus Interest thereon,of Grantor toLender,;or any one or more of them,as well as all claims by Lender against Grantor or any one or more of them,whether now existlng or.hereafter arising,whether related or unrelated to the purpose of the Note,whether voluntary or otherwise,.whether due or not due,direct or Indrect determined or undetermined,absolute or contingent ggWdated or ungquldrlted, whether Grantor may be liable Individually or jointly with others,whether obligated as guerantor,surety,accommodation party or otherwise,and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations,and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grants presently assigns to Lander ag•of Grantor's right,title,and interest in and to all present and future teases of the Property and all Rents from the Property. In addition,Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST N THE RENTS AND PERSONAL PROPERTY,IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND IS) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL ANCPAL AMOUNT OF$4,313,132.00,THE RELATED DOCUMENTS,AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERNS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage,-Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage- POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shsl be governed by the following provisions: Possession and Use. Unifl the occurrence of an Event of Defatdt Grantor may. (1) remain In possession and ct control of the Property; (2) use,operate or manage the Property;and (3) colle 'the Renta from the Property. Duty to 11 1 aln. Grantor shall maintain the Property In tenantable condition and promptly perform all repairs, replacements,and maintenance necessary to preserve its value. Compfisnca with Emikornnental Laws. Grantor represents and warrants to Lender that, (1) During the period of Grantor's ownership of the Property,there has been no use,generation,manufacture,storage,treatment,disposal, release or threatened release of any Hazardous Substance by any person on,under,about or from the Property; (2) Grantor has no knowledge of,or reason to befieve that there has been,except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) arty use, generation,manufacture,storage,treatment,disposal.release or threatened release of any Hazardous Substance on,under,about or from the Property by arty prior owners or occupants of the Property,or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters:and (3) Except as Previously disclosed to and acknowledged by Larder In writing, (a) neither Grantor nor any tenant,contractor,agent or other authorized user of the Property shall use,generate,manufacture,store,treat dispose of or release any Hazardous MORTGAGE (Continued) Pegs 2 Substance on,under,about or from the Property.and (b) arry such activity shag be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests,at Grantor's expense,as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shag not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any fortes claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws;and (2) agrees to indemnity,defend,and hold harmless Lender against any and all claims,losses, nabg(tfea,damages,Penalties,and expenses which Lender may directly or in&mctty sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal;release or threatened release occurring prior to Grantor's ownership or Interest In the Property,whether Of not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, Including the obligation to indemnity and defend,shag survive the payment of the Indebtedness and the satisfaction and reconveyance of the Ren of this Mortgage and shall not be affected by Lender's acquisition of any interest In the Property,whether by foredosue or otherwise. Nuisance,Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit,or suffer any stripping of or waste on or to the Property or any portion of the Property. Without lilting the generality of the foregoing,Grantor will not remove,or grant to any other party the right to rimmve,any timber,minerals(including all and gas),coal,clay,scoria,soil,gravel or rock products without Lender's prior written consent. Removal of hnprovemsnts. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements,Lender may require Grantor to make arrangements satisfactory to lender to replace such improvements with) equal value. mprovements of at least Lender's Right to Enter. Lender and Lenders agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terns and conditions of We Mortgage. Compliance with Governmental Requirernsnts. Grantor shag promptly comply with all laws, ordinances, and regulations,now or hereafter In effect of all governmental authorities applicable to the use or occupancy of the i Property,including without imitation,the Americans With Disabilities Act. Grantor may contest in good faith any such law,ordinance,or regulation and withhold compliance during any proceeding,including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as.In Lender's sole opinion.Lenders interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond,reasonably satisfactory to Lender,to protect lender's interest. Duty to Protect. Grantor agrees neither to abandon of leave unattended the Property. Grantor shag do all other acts,in addition to those acts set forth above in this section,which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE-CONSENT BY LENDER. Lender may,at Lender's option,declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer,without Landers prior written consent,of all or any part of the Real Property,or any interest In the Reel Property. A'sale or transfer'means the conveyance of Real Property or any right i to or interest in the Real Property,whether legal.beneficial or equitable:whether voluntary or involuntary;whether by outright sale,deed,installment sate contract, land contract contract for deed,leasehold interest with a term greater than three(3)years,lease-option contract,or by sale,assignment or transfer of any beneficial interest In or to any land bust holding title to the Real Property,or by any other method of conveyance of an interest In the Red Property, if any Grantor Is a corporation,partnersHp or limited liability company,transfer also includes any change in ownership of more than twenty-five percent(26%)of the voting stock,partnership interests or limited liability company interests,as the case may be,of such Grantor. However,this option shag not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shag pay when due(and in all events prior to delinquency)all taxes,payroll taxes,special taxes, assessments,water charges and sewer service changes levied against or on account of the Property,and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any gens having priority over or equal to the interest of Lender under this Mortgage, except for those gens specifically agreed to in writing by Lender,and except for the Ren of taxes and assessments not due as further specified in the(tight to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax,assessment,or claim in connection with a good faith dispute over the obligation to pay,so long as Lenders interest in the Property is not jeopardized..N alien arises or is filed as a result of nonpayment,Grantor shall within fifteen(16)days after the lien arises or,if a lien.is fled, within fifteen(16)days after Grantor has notice of the filing,secure the discharge of the pen,or if requested by Lender,deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender In an amount sufficient to discharge the lien plus any costs and reasonable attorneys'fees,or other charges that could accrue as a result of a foreclosure or sale under the gen. In any contest,Grantor shag defend itself and Lender and shall satisfy any adverse Judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any suety bond furnished in the contest proceedings. Evkbnce of Payment. Grantor shall upon demand furnish to lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Conswction. Grantor shall notityLender at least fifteen(/6)days before any work is commenced,any services are furnished,or any materials are supplied to the Property,if arry mechanic's Ileo,materialmen's gen,or other lien could be asserted on account of the work,services,or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Mahtenance of ins mmca. Grantor shall procure and maintain pogclea of fire insurance with standard extended coverage endorsements on a replacement basis for the fun insurable value covering 4311 Improvements on the Real Property In an amount sufficient to avoid application of any coinsurance clause,and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds In such Rabi9ty insurance MORTGAGE (Continued) Page 3 policies. Additionally,Grantor than maintain such other insurance,Including but not limited to hazard,business Interruption and boner insurance as Lender may require. Policies shell be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shaft deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or daninished without a minimum of ten(10)days'prior written notice to Lender and not containing any disclaimer of the insurer's lWity for failure to give such notice. Each insurance Policy also shall include an endorsement providing that coverage in favor of Lender WIN not be Impaired in any way by any act,omission or default of Grantor or any other parson. Should the Real Property be located In an area designated by the Director of the Federal Emergency Management Agency as a special good hazard area,Grantor agrees to obtain and maintain Federal Flood Insurance,H available,within 45 days after notice is glum by Lander that the Property is located In a special flood hazard area,for the fun unpaid principal balance of the ban and any prior pens on the property securing the loan,up to the maximum poky Gmlts set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such Insurance for the term of the ban. Application of Proceeds. Grantor shag promptly notify Lender of any lose or damage to the Property. Lender may make Proof of loss if Grantor fails to do so within fifteen(15)days of the casualty. Whether or not Lender's security Is impaired,Lender may,at Lender's election,receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property,'or the restoration and repair of the Property. H Lander elects to apply the proceeds to restoration and repair.Grantor shall repair or replace the damaged or destroyed improvements in a manner satisfactory to Lender. Lender shag, upon satisfactory Proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable dost of repair or restoration ff Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not codmmitted to the repair or restoration of the Property shag be used first to pay any amount owing to Lender under this Mortgage,then to pay accrued interest,and the remainder,if army,Shan be applied to the principal balance of the Indebtedness. H Lender holds any proceeds after payment in full of the Indebtedness,such proceeds shell be paid to Grantor as Grantors interests may appear. Grntor'a Report on Insurance. Upon request of Lender,however not more than once a year,Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer, (2) the risks insured; (3) the amount of the policy; (4) the Property insured, the then current replacement value of such property,end the manner of determining that value;and (5) the expiration date of the policy. Grantor anal,upon request of Lender,have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding Is commenced that would materially affect Lemlaes interest in the Property or If Grantor falls to damply with any provision of this Mortgage or any Related Documents,including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents,Lender on Grantor's behalf may(but shag not be obligated to)take any action that Lender deems appropriate,imduding but not limited to discharging or paying an taxes,liana, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying ail coats for insuring, maintaining and preserving the Property. AN such expenditures incurred or paid by Lender for such Purposes then by bear Interest at the rate charged under the Note from the date incurred or paid by Lender to the dilate ofl repayment by Grantor. An such expenses will become a part of the Indebtedness and,at Lender's option,will (A) be payable on demand, (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (t) the term of arty applIcabla insurance poky;or (2) the remaining tans of the Note;or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. Such right than be in addition to all other rights and remedies to which Lender may be entitled upon Default Grantor's obligation to Lender for all such expanses shall survive the entry of any mortgage foreclosure judgmanL WARRANTY:DEFENSE OF TITLE. The following provisions rotating to ownership of the Property are a part of this Mortgage: 1' Title. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property in fee simple, i free and clear of all Gens and encumbrances other than time set forth in the Real Property description or In any title insurance poky,title report or final title opinion issued in favor of,and accepted by.Lender in connection with this Mortgage,and (b)Grantor has the full right,power,and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above,Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced f that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantors expense..Grantor may be the nominal party in such proceeding. but Lender shall be entitled to Participate In the proceeding and to be represented in the proceeding by counsel of Lender's own choice,and Grantor will deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation. Complanee With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,ordinances,and regulations of governmental authorities. Survival of Representations and Warranties. All representations,warranties,and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage,shag be continuing in nature,and shall remain in full force and effect until such time as Grantor's Indebtedness shag be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. if any proceeding In condemnation Is filed,Grantor shall promptly notify Lender In writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor My be the nominal.party in such proceeding,but lander shag be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice,and Grantor will deliver or cause to be delivered to Lender such instrtmente and documentation as may be requested by Lender from time to time to permit such participation. Application of Not Proceeds. H all or any part of the Property is condemned by eminent domainproceedih ngs or by any proceeding or purchase in Geu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs,expenses, and attorneys'teed Incurred by Lender In connection with the condemnation. IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,fees and charges are a part of this Mortgage: Currant Taxes,Foes and Charges. Upon request by Lender,Grantor shag execute such documents in addition to i! I MORTGAGE (Continued) Page 4 this Mortgage and take whatever other action Is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shag reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or cont)nutng this Mortgage, including without limitation all taxes. fees. documentary stamps,and other charges for recording or registering this Moitgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the indebtedness secured by this Mortgage: 12) a specific tax on Grantor which Grantor Is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or-the holder of the Note;and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. if any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default,and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either 11) pays the tax before it becomes delinquent,or 121 contests the tax as provided above In the Taxes and Liens section and deposits with lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT;FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument Shan constitute a Security Agreement to the extent any of the Property constitutes fixtures,and Lender shall have all of the rights of a secured parry under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender,Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. M addition to recording this Mortgage in the real property records,Lender may,at any time and without further authorization from Grantor,file executed counterparts,copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security Interest. Upon default Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a piece reasonably convenient to Grantor and Lender and make it available to Lender within threat (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debwd and Lender (secured party) from which information cones ng the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code)are as stated on the fast page of this Mortgage. FURTHER ASSURANCESt ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time,and from time to time,upon request of Lender,-Grantor win make,execute and dealer,or will cause to be made,executed or delivered,to Lender or to Lender's designs,and when requested by Lander.cause to be filed,recorded,refiled,or rerecorded,as the case may be,at such times and in such offices and places as Lender may deem appropriate,any and all such mortgages,deeds of trust,security deeds,security agreements, financing statements,continuation Statements, instruments of further assurance, certificates,'end other documents as may,in the sole opinion of Lender,be necessary or desirable in order to effectuate,complete, perfect, continue, or preserve (1) Grsntor's Obligations under the Note, this Mortgage, and the Related Documents,and 12) .the gens and security Interests created by this Mortgage as first and prior fiens on the Property,whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing.Grantor shag reimburse Lender for all costs and expanses incurred in connection with the matters referred to In this paragraph. Additional Authorizations. If Grantor fags to do any of the things referred to In the preceding paragraph,Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby Irrevocably authorizes Lender to make,execute,deliver,file,record and do all other tMngs as may be necessary or desirable, in Lender's sole oplNon, to accomplish the matters referred to In the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage,Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of temtinatcon of any financing statement on The evidencing Lender's security interest in the Rents and the Persond Property. Grantor will pay,H permitted by applicable law,any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Each of the following, at Lender's option, Shan constitute an Event of Default under this Mortgage: Payment Detain. Grantor fails to make ant payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment ter taxes or insurance,or any other payment xreceSeery to prevent fling of or to effect discharge of any lien. Other Defaults. Grantor fags to comply with or to perform any other term,obligation, covenant or condition contained in this Mortgage 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 Grantor. False Statemone. Any warranty, representation or statement made or furnished to Lender by Gramm or on Grantor's behalf under this Mortgage 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. Defective Coltetera6ration. This Mortgage or any of the Related Documents ceases to be in fug force and effect lincluding failure of any collateral document to create a valid and perfected Security interest or peril at any time and for any reason. Death or Insolvency. The dissohnion of Grantor's (regardless of whether election to continua is made), any member withdraws from the limited liability company,or any other termination of Grantor's existence as a going business or the death of any member,the insolvency of Grantor,the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under arty bankruptcy or insolvency)ews by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure Or forfeiture proceedings.whether by judicial Proceeding,self-help,repossession or arty,other method,by any creditor of Grantor or by any govern mental agency against any property securing the Indebtedness. This inehddes a garnishment of any of Grantor's accounts, including deposit accounts,with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture MORTGAGE (Continued) Page 6 Proceording and N Grantor gives Lender written notice of the creditor or forfeiture Lender monies or a surety bond for the creditor or forfeiture Proceeding end depoalto with sole discretion,as being an adequate reserve - bond for the d �din9,in an amount determined by Lender,in its ispute. Breech of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that Is not remedied within any grace period provided therein,Including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender,whether existing now or later. Events Indebtedness.or ny G narentor ores orof e Preceding events occurs with respect to any Guarantor of any of the under,any Guaranty of the Indebtedness. Incompetent,or(evokes or dlsPulse the validity of,or liability Adverse Change. A material adverse change occurs In Giantoes financial condition, or Lender believes the Prospect of payment or performance of the Indebtedness is impelled. Insecurity. Lender in good faith bell""Itself insecure. Right to Cur. If any default other then a default in payment is curable and If Grantor has not been given a notice of a breach of the same Provision of this Mortgage within the Preceding twelve(12)months,it may be coved if Grantor,after receiving written notice from Lender demanding cure of such defaulC (11 cures the default within fifteen If 6)days;or (2) N the cure requires more than fifteen 06)days, h-de6ately 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. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and remedies provided DY law:at Lender's option may exercise any one at any time thereaher,Lender, reor more of the following rights and remedies,in addition to any other rights or . Accelerate Indebtedness. Lender shell have the right at its option, after giving such notices as required by applicable law,to declare the entire Indebtedness immediately due and payable. UCC Ranwi ies. With respect to all or any part of the Personal Property, Lender shall have all the rights and i remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shag have the right without notice to Grantor, to take possession of the Property and collect the Rents,including amounts past_due and unpaid,and apply the net Proceeds,over and above Lender's costs'against the Indebtedness. In furtherance of this right,Lender me y require any tenant or.other user of the Property to make payments of rem or use fees directly to Lander. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse irrstr, me racelved In Payment thereof In the name of Grantor j and to negotiate the same and collect the proceeds. Payments by tenants of other users to Lender in response to Lender's demand shalfsatisijr the obligations for which the payments-are made.whether or not any proper grounds for the demand existed. Lender me Y exorcise its rights under this Subparagraph through a receiver. either in person,by agent,or i Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of MB Property,with the power to protect and preserve the Property,to operate the Property preceding foreclosure or sale, and to collect the Renta from the Property and apply the Proceeds, over and receivership,against the Indebtedness. The receive►may serve witlwut bond if Permitted by the cost o) the to the appoinarment of a receiver shall exist whether or not thea by law. Lender's right Indebtedness by 8 substantial amount: Empioyment by Lender shag apparent value of the Property exceeds the receiver. disqualify a person from serving as a Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Gremor' Property.. a interest in all or any part of the Possession of the Property. For the purpose of procuring possession of the Property.Grantor hereby authorizes .and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere,as attorney for Lender and all persons c(ekning under or through Lender,to sign an agreement for entering In any compatent court an amicable action in ejectment for possession of the Property and to appear for and confess judgment Possession Grantor, and against all persons datmirg under or through Grantor, for the'recovery by Lender of possession f the Property,wltleut arty stay of execution,for which this Mortgage,or a Copy of this Mortgage verified by affidavit,along be a sufficient warrant;and thereupon a writ of possession may be issued forthwllh, without any prior writ or proceeding whatsoever. NO*WIclal Sob. If permitted by applicable law,Lender may foreclose Grantor's interest In all or M any Part of the Personal Property or the Real Property by ren4udiclal sale. Deficiency Judgment. Lender my obtain a iudgment for any deficiency remaining in the indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Suflenanxio. if Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entigad to possession of the Property upon default'of Grantor.Grantor shag become a tenant at sufferance of Lender or the purchaser of the Property and shall,at Lender's Option,either (1) pay arreasonable rental for the use of the Property,or (21 vacate the Property tmmedietey upon the demand of Other Remedies. Lender shall how all other rights and remedies provided in this Mortgage or the Nota or available law or In equity. - Safe of the Property. To tie extent permitted by applicable law.Grantor hereby waives any and all right to have the Property marshalled. In exereWng its rights and remedies,Lender shag be free to Seg all or any part of the Property together or separately,in one sale or by separate Sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sets. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is a be made. Unless otherwise required by applicable law,reasonable notice shall mean notice given at least ten(10) days before the time of the sale or disposition. Any sale of the Personal Property may be made In conjunction with any sale of the Real Property. Election of Ramaales.-Election by Lender to pursue any remedy shag not exclude pursuit of any other remedy,and an election to make expenditures or to,take action to perform an obligation of Grantor under this Mortgage,after Grantor's failure to perform,Shag not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rights and remedies avertable to Lender following an Event of Default,or In arty way to limit or restrict the rights and abibty of Lender to proceed directly against Glamor and/or against any Other co-maker,guarantor,surety or endorser and/or to proceed against MORTGAGE (Continued) Page 6 arty other collateral directly or indirectly sawring the Indebtedness. Attorneys'Fees;Expenses. If Lender institutes arty suit or action.to enforce any of the term of this Lender shah be entitled to recover such sum as the court may adjudge reasonable as stroma Mortgage, Upon any appeal. Whether or not any court action is involved, and to the extent not attorneys'fees at trial and reasonable expenses Lender incurs that In Lender's opinion are rtecessa Prohibited by law, all is Interest or the enforcement of its rights shall become a d s any time for the d and shag of its interest at the Note rate from the data of the ex Part it the Indebtedness payable on demand and Shap bear without"Wits 1% however penditure acid repaid- Expensas covered by this paragraph include. subject to arty 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 end expenses for bankruptcy proceedings(including efforts to modify or vacate any automatic say a injunbtf fees appeals,and any pared Post judgment collection services, the coat of searching records, obtaining title reports pncluding foreclosure reports), surveyors' reports, and appraisal fees and tide insurance, to the extent permitted by applicable law. Grantor also will pay any court costs,in addition to all other sums provided by law. NOTICES. Unless otherwise Provided by applicable law,any notice required to be given under this Mortgage shop be given In writing, and shall be effective when actually delivered, when actually received by telefecsimile (unless otherwise required by law),when deposited with a nationally recognized overnight courier,or,If mailed,when deposited in the United States mad,as first class,certified Or registered map postage prepaid,directed to the addresses shown near the over this�plceing of this Mortgage. An copies of notices of foreclosure from the holder of arty lien which has priority Mortgage Shell be sent to Lender's address,as shown near the beginning of this Mortgage. Any party may change its address fa notlee8 under this Mortgage by giving formal wdtterr notice to the other parties,Specifying the purpose of the notice is to change the party's address. For notice that informed at all times of Grantor's current address, llMeas otherwise pub' Grantor agrees to keep Lender one Grantor,any notice given by Lander to any Grantor Is deemed te be n�otice givenby s toraob Grantorsif there Is more than MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a pert of this Mortgage: Amendments. This Mortgage,together with any Related Documents, constitutes the entire understanding and Mortgage of the Partieseffect as to the matters set forth in this Modtgegri. No alteration of or amendment to this Mortgage shalt be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor Shan famish to Lender,upon request a certified statement of net operating income received from the previous fiscal year in such form and detail as Lender shah Property during roW�. *Net operating income"shop mean tl cash allGracash Property less all cash receipts from the expenditures made in connection with the operation at the Property. Caption Headings. Caption hearings in this Mortgage are for convenience purposes omly and are not to be used to Interpret or define the provisions of this Mortgage. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising arty right shag operate as a waiver of such right or arty other right. A waiver by Lender a t provision of this Mortgage slap not Prejudice or constitute a waiver of Lender's right otherwise to demand strict a Provision nce with that Provision or any other provision it this Mortgage. No prior waiver by Lender,nor arty course of dealing between Lender and Grantor,shell constitute a waiver of any of Lender's rights or of arty of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Mortgage, the granting of such consent by . Lander In arty insmrtcs shag not constitute continuing consent to subsequent hstances where such consent is required and In an cases such consent may be granted or withheld in the sole discretion of Lender. Sav*mbillty. H a court of Competent jurisdiction finds arty provision of this Mortgage to be illegal, invalid, or unenforceable to any circumstance, that finding step not make the offending provision illegal, Invalid, or rurenforceable as to any other,cecumsterx.a. If feasible,the offending provision shall be considered modified so that It becomes legal, valid and enforceable. If the offending Provision cannot be so modified, It shall be considered onsid reaD�of a provision ted from this M this Unless otherwise required by law, the fUegeGry, iMratidity, or provision of this Mortgage. MOrt9a9e slap not effect the legality,validity or enforceability of any other estate In the rPropeirty e peaty be no merger of the interest or estate created by this Mortgage with any other interest or of Lender. at any rima held by Or for the benefit of Lender in any capacity,without the written consent Successor representatives,sts. Therste�of this Mortgage shall be binding upon Grantor,and upon Granter's hairs,personal assigns,and shag be enforceable by Lender and its successors and assigns. TiM0 Is of tea Essence. Time is'of the essence in the Performance of this Mortgage. DEFINITIONS. The following capitalized words and terns shall have the following meanings when used In this Mortgage. Unless specifically stated to the contrary,all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural,and the plural shall include the singular,as the context may require. Words and teres not otherwise defined In this M have the meanings attributed to such terms in the Uniform Commercial Code. or►ga9e shah Borrower. The signing the Note and word'all Borrower'means Chestnut St Townhouses,LLC and includes all co-signers and co-makers thrill aur ors and assigns. Defauff. The word*Default'means the Default set forth in this Mortgage in the section titled'Default'. Environmental Laws. The words 'Environmental Laws' mean any end all state, federal and local statute$, regulations and ordinances relating to the protection of hunan health or the environment, including wldmt limitation the Comprehansive Environmental Response,CO 1POrtsation,end liability Act of 1880,as amended,42 U.S.C.Section 9801,at 8aq.("CERCIA'),the Superfund Amendments and Reauthorization Act of 1988,pub.L NO.98-499(*SARA*),the Hazardous Materials Transportation Act 49 U.S.C.Section 1801,at seq.,the Resource Conservation and Recovery Act,42 U.S.C.Section 8901,at seq.,or other applicable amts or federal laws,rotes, or regulations adopted pursuant thereto. Event of Defauh. The words'Event of Default'mean any of the events of default set forth.in this events of default section of this Mortgage. Mortgage in the Grantor. The word"Grams'Mears Chestnut St Townhouses,I.I.C. Guarantor. Thor woad 'Guarantor' means arty guarantor.surety, or accommodation party of arty or all of the Indebtedness. Guaranty. The word 'Guaranty"means the guaranty from Guarantor to Lender, including without(imitation a � g MORTGAGE (Continued) Paye I guaranty of all or part of the Note. Ha wdous Substances. The word, 'Hazardous Substances• mean materiae that because of their quantity, concentration or physical,chemical or infectious characteristics, to human hemay cake sir pose a present or potential hazard health or the environment when improperly used,treated,stoned,disposed of,generated,manufactured, transported or otherwise handled. The words'Hazardous Substancas'are used in their b M include without limitation any and 88 hazaous or toxic substances, very roadest sense and materials or waste 85 defined by or listed under the Environmental Laws. The term'Huardous Substances'ago includes,without limitation,petroleum and Petroleum by-Products or any fraction thereof and asbestos. improvements. The word "Improvements" means all existing and future Improvements, buildings, structures, mobile homes affixed on the Real Property,facilities,additions,replacements and other construction on the Real Property. I YMebtedross. The word"Indebtedness' means an principal, interest, and other amounts, costs and expenses Payable under the Note or Related Documents, together with al renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender rt discharge Granter's obligations or expenses incurred by.Lender to enforce Grantor's obligations under this Mortgage, together with mall aat on such amounts as provided in this Mortgage. Specifically, without limitation,Mortgage. cines,includes al amounts that may be indirectly secured by the Cross-Coilaeeraization provision of this Mortgage, Lender. The word'Lender'means ORRSTOWN BANK,its successors and assigns. Mortgage. The word'Mor tgage"means this Mortgage between Grantorand Lender. Noes. The word'Note"means the Promissory note dated Marih-28,2005;in the Orlghlal principal amount of $4.313,132.00 from Grantor to Lender, together with A.renewals of refinancings of,ceneolldations of,and substitutions for the promissory note or, extensions of,'modifications of, agreement. The maturity date of the Note Is March 28,2028.NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words"Personal Property,mean all Property now or hereafter owned by Grantor, and now or hereafter attached cr a f to the Realnd other articles {personal Props together with al eccessions,parts,and additions to,al replatxementa of,and all substitutions for,any Props such property; and together with ep proceeds (including without limitation all insuranoe Proceeds and refunds of premiurna from any sale or other disposition Of the Property. Property. The word"Property"means collectively the Rea Property and the Personal Property Red� The words'RSI Property'mean the real Property,interests and rights,as further described In this Related Documents. The words *Related Documents• mean all promissogy notes, credit agreements, logo deeds, collateral mortgages,agreements, environmental s, and all oagreement,, guaranties, security agreements, mortgages, deeds of trust, security ther instruments, agreements and documents, whether now or hereafter existing,executed in connection with the Indebtedness, Rents. The word'Rents'means all Present and future rents, revenues, Income.Issues,royaitlss,profits, rd other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING DEAD ALL TO ITS TERMS. THE PROVISIONS OF THIS MORTGAOE,AND GRANTOR AGREES THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND$HALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CHESTN�Ur ST TOW SES,LLC P.Jo i St i c...,,1...- µiSaa) �risky, bar of toutt St Tbwnhoueas,LLC 8 acknow td delivered in the presence of. Witness X CERTIFICATE OF RESIDENCE 1 hereby certify,that the precise address of the mortgages,ORRSTOWN BANK,herein is as follows: SILVER SPRING OFFICE,77 EAST KING STREET,P O BOX 250,SHIPPENSBURG,PA 17257 Attorney or Agent Mortgagee MORTGAGE (Continued) Page 8 LIMITED LIABILITY COMPANY ACKNOWLEDGMENT COMMONWEA TH OF PENNSYLVANIA f COUNTY OF )SS f On his,tl g [1' day of_ (�1 —UMS17 Me 2O O before me of iesmut St Townhouses, LL who acknowledgedNotary Public,personally appeared P.John Sopenaky,Member Chestnut St Townhouses,liou LLC,a Limited LiabCo himself or herself to be the member or designated agent of mparry,and that he or she as such a member or designated agent, being authorized to do so,executed the foregoing instrument for purposes therein contained bV the Limited Liability Compary by himself or herself as a memo r designated agent. ming the name of In-kness whereof,l hereunto set my hand and eal. NWEAL f�nrma Nol Ade !'Ltd tr1 BtMlh t yP&M Notary P is in and for the State of Member.Pe"myok Naps or20,2M as LASER PR Len ng,.Ver. 9. Harland Financial Solutions,Inc.1997,2008, AN PA c:XCFRLPL�03.FC TR-19118 PR-1 Rights Reserved - t---title guaranty comvany SCHEDULE.A (Continued) . Flla;Ho.S100-748 Commitment No.S100-748 105.111.119 125 127 128 17 South Chestnut 5tfeet ALL THAT CERTAIN parcel of real property situate in the Borough of Mechanicsburg,Cumberland County, Pennsylvania,bounded and described as follows;to wit LOT 1 BEGINNING at apost on the curb line of Chestnut Street,at corner of lot now or former1y of,LM:IOntz and thence eestwardly ,along the line of said lot n6w or formerly of L.M.Idntz and wife,142.60 feet,more or less,to a point in a public alley;thence along said all ,SouthWardly;35:00 feet to a point in the line of lot now or formerly . of Margaret Bridget's Helrs•thence Weshivardiy along the line of said lot now or formerly bf Margaret Bnldgars' Heirs,142.00 feet,more orless,to a point.in the curb line of Chestnut Street,aforesald;thence along curb line of said Chestnut Street in a Northwardly direction,35.00 feet to the point and place of BEGINNING. HAVING THEREON ERECETED a two-story;frame dwelling housekn own as17 South Chestnut Street, M.echanlcsburg,Pennsylvania Lot 3 BEGINNING at a point at the curb line on South Chestnut Street at line of lands now or formerly of the E.E. pbell Estate;thence along the latter In an eastwardty dfrecoon,a distance of 142 feet,more or less,to an Alley;thence along said Alley in a northwardly direction,a distance of 84 That more or less,to East Locust Street; thence along said East Locust Street in a westwardly dIrec tion;a.distance of 142 feet,more or less,tD the curb lime of South Chesbiut Street;-thencealong said curb lime ofSouth Chestnut Street in a southwardly direction,a distance of 85 feet,more or less,to a point on the same,the place of BEGINNING. HAVING enacted thereon a dwelling house known and numbered as 105 South Chestnut Street Lot 6 BEGINNING at a point on the East curbtine of South Chestnut Street at the comer of lands now or formerly of Ralph Persun,said point being located at a distance of 155 feet,more or less,measured In a southerly direction along the said curbfine of South Chestnut Street from East Locust Street;thence along the Me of lands nowor formerly of the said Ralph Persun,North 85 degrees East,a distance of 142 feet-to a hub on the west side of an alley;thence along the.west side of said ahoy,South 4 degrees 53 minutes East,a distance of 30 fest to hub on the same at comer of WAS now or'formerly of Ywla Comp;thence along.the One,of lands now or formerly of the. said Vcola Comp(South 85 degrees West,a distance of 142 feet to ant on the East'curbUrm of Scold C point Street aforesaid;thence along said east curbAne of South Chestnut Street North 4 dagr0as 53 minutes West a distance of 30 feet to a point on the same,the point and place of BEGINNING. HAVING THE=REON ERECTED a two and one-half story frame dwelling house known as 111 South Chesmut Street,Mechanicsburg,Psnnsyivania. Lot9 ALL-THAT CERTAIN two(2)story frame dwelling and Lot of Ground,known and numbered as 119 South 'Chestnut Street,situate on the East side of South Chestnut Street in the said Borough of Mechanicsburg,County : of.Cumberland.and Stale of Pennsylvania,more particularly bounded and described as follows,to.wit . ALTA Canmihnent Schedule A.fooft" gUaranty aonvany • SCHEDULE A (continued) File No.M06-748• "Commitment No.5100.748 BEGINNING at a point on the Eastern curb line Of said South Chestnut Street thenbe in an along the fine of Lot formery of Lee Orimddrff,AM Or forth ard�vdlrectwn feet to an iron Pin at a Public Ailey;thence Southward along saidf Pu�b�lics Contact and wrfe,a distance of 142.00 Pin;thence along the One of Lot formerly of Jennie Green and tww of Audrey%g stance of same feet to pa ion " No..2 herein) in a W rey (the same being par )� esivyardy direction,t distance of 142.00 feet,more or less,toe point on the Eastem-curb One of South'Chestnut Street,aforesaid;thence along the Eastern curb One of South Chestnut Street;aforesaid; ttlePCs along the Eastein curb_line.of South Chestnut Street in a Northwardly directIon,a distance of 30.00 feet to the 6d6f and place of BtGINNING. Lot.11" BEGINNING at the curb One of South-Chestnut Street'at a lot now of,i.B:S n lerh orie'hundred and forty-two(142)feet to an Alley,thence North alongsaid Alley,thi �'thenceEast by said lot, ot now or formerly of William Bridget;thence West along said Lot,one hundrd and forty-two(142)feetto cufeet to a lrb One on said South Chestnut Street;thence South.along said curb One;thirty(30)feet to the place of BEGINNING. The house erected on said lot being numbered 125 South Chestnut Street,Mechanicsburg,Pennayhranla Lot 12 Bounded on the West.by Chestnut Street on the South by a lot now or forme of Jonathan on the East by a public alley and on the North by'a lot now or formerly of the Rufus E.Shapley Estate;►raviBarnhill; ng$width ce s id Chestnut Street of We* and one-half(24 Y,)feet and extending back from Chestnut Street to said public alley a depth of one hundred ten(I 1Q)feet HAVING THEREON ERECTED a two story frame dwelling house known and numbered as 12 Street,Mechanicsburg,Pennsylvania 7 South Chestnut Lot 13 BEGINNING at Domer of curfi INre at said Northeast corner of South Chestnut Street and East Simpson Streets thence to aheasWarci y direction along said East Simpson Street,ninety-seven Lot now or formerly of Harry Syder Heirs,in a northwardly direction irly one(31)7f)eet m pointfe�t more tiin t c fineto aof Lot now or formerly of Dr.J.B.Spangler Heirs;thence along the-One of said Lot now or formerly of Dr.J.B.Spangler Heirs,In a westerwardy direction,ninety-three(93)feet,more•or less,to a point In the cuib One of South Chestnut Sb'eet,aforementioned;thence along said curb line of South Chestnut Streetin a souttrwardy direction,thiity- seven(37)feet and six(8)Inches to a point,at the place of BEGINNING. - HAVING thereon erected a frame dwelling house known and numbered as 129 South Chestmastreet, Mechanicsburg,Pennsylvania,, 11_S.ChestnLdStreet,MecharricsbM d,Ro of 11 S Chester Street,Mee!werwsh ALL THAT CERTAIN piece or parcel of land situate in the Second Ward of the Borough of Mechanicsbtrig County,of Cumberland and State of Pennsyluanla bounded and described as faOows: BEGINNING at a point on the eastern curb line. South Chestnut Street at the Intersection of the southern One of a 15-foot alley,thence in an easterly•direction along"the,southem fine of said fifteen-foot allWone hundW&-ly two(142)feet,more or less;to a point at the htersecdon of the western One of another 15afopt alley;thence in a souttledy direction along the western line of the'last mentioned 1$4wt alley,frft fight(58)feet,more or less,to a ALTA Cgmmibrwt ' $Cllle A twntL," point at lands now or late of Adam Wier,thence In a westeriy.directkm Along lands nowor late of Adam Miller .one hundred fncty-two(142)feet,.more or less,to a point on-the eastern curb line of South Chestnut S" thence Ina northerly d rec don by said curb fine sbdyand elght4driths(80.8)feet to a point,the place of SCHEDULE A confinuee(I Commitment No.5900-748 r 'f- _ r •`` 8onlivbeook=Motiit0 Home perkr/6 8onmbrook(toad -�`',;�' ;�"^c-tip'`�x'M~'�•��' f.�,y ,SUN IdE ff��Ourid+:sku�aW.-IM South WWdkbon Township, County of Cumberland and.State of : -",,vAZe ;;4?°its, ?1:alscf;detd esfotlows: � t.y�It�tG fin ffie aert6er'of the Bonriyi.Brook Road at comer of land now or formerly of the Cities Sendoe Gas 0n'ol' -RW'tar'f`o# .—Y_�f Cft�rdss'C:1Nekiner and Clara G.Weidner,his wife,apps)Orr5dely 427.7 feet from j{.. hfti'` afGl ri��tistibver?utipTke ttieitce'North 12�degrees 30 minutes East 335.4 feet to land rrow or formerly r•.a " =-::`a ?1i ^s'i r .tFFeACW; ouch-8'1 degtees 15 minutes East 612.3 feet to land now or formerly of Sours Estate; tlzeftiG Sgyt�, di grey'15 minutes at 375 fedt to the center of the Boring Book Road;thence.North 75 ±R; eg!ree '�5 riiyrSi esiV1!8staloTg.tfi center of the Bonny Brook Road 617-$feet to the place of BEGINNING. AM coftrAft". fCIW*A(oonBnttedJ ROBERT P.ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY I.COURTHOUSE SQUARE ' _ CARLISLE;PA 17013 717-240-6370 = Instrument Number-200810513 Recorded-On 4/4/2008 At 9:16:16 AM . *Total Pages-12 *Instrument Type-MORTGAGE Invoice Number-17932 User ID-KW *Mortgagor-.CHESTNUT ST TOWNHOUSES LLC *Mortgagee-ORRSTO WN BANK *Customer-PA REAL ESTATE ^FEES STATE WRIT TAX $.0.50 Certification Page STATE JCS/ACCESS TO $10.00 JUSTICE DO NOT DETACH RECORDING FEES - $25.50 RECORDER -OF DEEDS AFFORDABLE HOUSING $11.50 This page is now part COUNTt ARCHIVES FEE $2.00 of this legal document. ROD ARCHIVES FEE $3.00 TOTAL PAID $52.50 I Certify this to be recorded in Cumberland County PA v v RECORDER O D DS "-Inforgratlon denoted by an asterisk may change during the verification process and may.not be reflected on this page. " " Illllllllll�llll�l�f�l EXHIBIT "C' . � caaTlssm•wt0�r m::rrinc�lax aw�Rs 17-23-0565-270 -UI05A NZCBWIC9VJW 2 17-23-0363-271 - 1am"Icm13E0 2 17-23-0563-273 - mxC=WCmPAW 2 17-23-0565-274 - WICHMCM 2 17-23-0555-279 - NXCILWtCSWJRS 2 17-23-0565-291 - 1acumC'lWAM 2 17-23-0365-292 - N2CHMICO24fRt! 2 17-23-0565-293 - wxcwmIC83VR0 2 40-24-0752-026 - som �ppy�pR CCUIG AWIWR! 02/19/2013 By TB THIS DOCUMENT PWARF.D BY AND UPON RECORDATION,RETURN TO: ANDERSON,.MCCOY&ORTA,P.C, 100 Noah Bey,Sure 2600 Okbhoma City,OK 73102 Tekphone: (898)2364W7 Cumberland County,State of Pemmyhm& Ta= 1VLp Na or TU Pared lditdReation Na: 17-2' aM&270•UIOdA; 17-nag&*0_271117_23_ 0565-273; 17-234565.276; 17-Z34dis.271; 17-234565-281; 17-Z$4565-28%- 17-234501-M aw I oertifY that the proms address of the Assignee is do SAW Fitmacial Group,LP.,4675 MacArthur Court,Suite 1SSO,Newport Beach,CA 92660 NkbM@Fzcnone ASSIGNMENT OF MORTGAGE KNOW ALL MEN BY THESE PRESENTS: THAT, Omtown Hank,.a Penns hmda banking cnrpomdojo4 ha, 77 East Ring Sennet,S6i �6 address of does by tluu;e Ppeflsbmg,PA 17237 referred to as "mss aer"}.Eor v�shre Pa pests,gmt,sell,transfer, assign,convey and at over to m[8&0& a Del LLC, aware WdWd IiabiNty oompat Y,its 30mea s and assigns(hmvina r refer tO as " " bwin8 an a&km of clo Sabal Finaaeial Qr+aup, L.P., 4675 AMO Re£: 2s1o.034 Lam Ne : CHESIMZ Sr MWNHOUSES,LLC Lan Ret:26144909007 TMS DOCUMENT PREPARED BY AND UPON RECORDATION,RETURN TO: ANDERSON,MCCOY 8t ORTA,P.C. 100 North Broadway,Suite 2600 Oklahoma City,OK 73102 Telephone: (888)236.0007 Cumberland County,State.of Peaasylvasia Tax Map No. or Tax Parcel Identif cation No.: 17 23-0365.270-UIOSA; 17-23-0565~271; 17-23- 0365.273; 17-234565.276; 17-23-OMS-279,- 17-23.0565.281; 17-23-0565-282; 17-23-0365-2S3 and 40-Z407SM6 I certify that the precise address of the Assignee is c/o Sabal Financial Group,L.P.,4675 MacArthur Court,Suite I S50,Newpon Beach,CA 42660 N' (lone ASSIGNMENT OF MORTGAGE KNOW ALL MEN BY THESE PRESENTS: THAT, Orrstown Bank,a Penneylvanla banking corporation, having an address of 77 Fast King Street,Shippensburg,PA 17257,(hereinafter referred to as"Asg�e),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 "AH11 nee" having an address of c/o Sabal Financial Group, L.P., 4675 AMO Rcf.: 2510.054 Loan Nance CHEMNUT ST TOWNHOUSES.LLC Loan Ret.:2644280 M MacArthur Court, Suite 1550, Newport Beach, CA 92660, all of Assignor's right, tide and int test in and to that certaim Mortgage dated March 28, 2008, executed by Chestnut St Townhouses, LLC, the V=W, to Onstown Batdc, the Lender, recorded on April 4, 2008, as Instrument Number 200810513 in the Official Records of Cumberland Courcy, State of Pewn0vania ("Recorder's Office* as the same .may have been as0go4 amended,supplemented,restated or modified(the"Mortgage'). The Mortgage covers the property de=l*d therein,less and except any portion of the property weviously released and/or reconveyed. TO HAVE AND TO SOLD the same unto said MAGNOLIA PORTFOLIO, LLC,ITS SUCCESSORS AND ASSIGNS. TILS ASSIGNMENT IS MADE WITHOUT RECOURSE, REPRESENTATION OR WARRANTY,EXPRESS OR BOLIED,WRITM OR ORAL,BY ASSIGNOR W11WAMKR OF PAGE tel'KM' ONALLY 1Z f BLANIQ AMO Rd: 2S10.054 14M N=: CHUTNUT ST rovvMMSES,u c Lou ROL 26403 oat ' k IN WITNESS WHEREOF, Assignor has caused this instrument to be executed this� day of February,2013. ASSIGNOR: ORRSTOWN BANK,.a Nonsylvabb banking corporation BY: Magnolia P of ,LLC,a Delaware limited liability may, . A in By: Name: R.Patterson Jackson Title: Authorized Signatm y ACKNOWLEDGMENT dated STATE OF CALIFORNIA COUNTY OF ORANGE j SS: Nli< p On this day of February, 2013, before me personelly R, Patterson Jackson, as Authorized Signatory for Magnolia Portfolio, LLC;a Delaw rmited liabil' company, Fact for Ortstown Bank,a Pennsylvan bankin �' PAY+Attorney-in- of satisfactory �' g�Po known to me or proved to me on the basis of evidence to be the persons who ex the foregoing instrument, and they thereupon duly acknowledged to me that they executed a to be their free act and deed. WITNESS my hand and,official seal. My commission expires: Name of Notary: AMO Ref.: 2310.054 [Am NWM:CHES7NUTSTTOWNHOUSES.LLCLoan ReL:26442SM07 State of California ) County of Orange ) On February S, 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. MATTS ON �r`a Notary s +#F 3085 Jr Public.California 2 Orange Cot SEAL. MCam . my > ( ) aa Met ar.2015 r Notary Public.gignature • ' , r .w.. � �..-�YM..w - fwd - V- � ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY ' 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Dumber-201305312 Recorded On 2/19/2013 At&25:40 AM •Total Pages-5 "Irstn=gnt Type-ASSIGNMENT OF MORTGAGE Invoke Number- 129358 User ID-HMM "Wrtgetr-CHMNUT STREET TOWNHOUSES LLC '*10198gee-MAGNOLIA PORTFOLIO LLC •Customer-SIMPLIFILE LC&RECORDING .�S STATE WRIT TAX $0.50 Certification Page STATE JCS/A=SS TO $23.50 JUSTICE DO NOT DETACH RECORDING ME$ — $11.50 RBfiDRDRR OF DSEDS PARCEL C3RT1FXCATION 490-00 This page is now part PEES of this legal document. COUNTY Al CHWES Fsa $3.00 RAD Aftim Bs FEs $3.00 Tozu PAM $230.50 I Certify this to be recorded in Cumberland County PA, RECORDER OFDEEDS •-lmfwmadw denstsd by an analsit may dmw dwift dw vnftafim pnm=s and mw to es rdkek'/as tLb rape, VERIFICATION hereby states that h&is 55ca L of SABAL FINANCIAL GRO ,LP, rtgage servicing agent for Plaintiff in this matter,that he��authorized to make this Verification,and verify that the stat ents made in the foregoing Civil Action in Mortgage Foreclosure are true and correct to the best of hi er formation and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. Sec.4904 relating to unsworn falsification to authorities. Further,due to its mortgage servicing agency relationship with plaintiff,MAGNOLIA PORTFOLIO,LLC,is in possession and control of all documents and records supporting the statements in the foregoing pleading and,therefore,the undersigned,rather than an officer or employee of plaintiff, is the appropriat 'ndivid al to make this Verification pursuant to Pa.R.C.P. 1024(c). Name: Title: Company: Date: Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY ±F,'ICF OF THE : KERI=F 'i P2`2 Pf 2:29 CUMPENNStYLVAND I4t! UNT`� Magnolia Portfolio, LLC, a Delaware limited liability company, assigne vs. Chestnut St Townhouses, LLC Case Number 2014-5195 SHERIFF'S RETURN OF SERVICE 09/12/2014 01:30 PM - Deputy Shawn Gutshall, being duly sworn according to law, served the requested Notice of Residential Mortgage Foreclosure Diversion Program and Complaint in Mortgage Foreclosure by handing a true copy to a person representing themselves to be John Sopensky, Owner, who accepted as "Adult Person in Charge" for Chestnut St Townhouses, LLC at 1300 Market Stre- Lemoyne, PA 17043. N GU ALL, DEPUTY SHERIFF COST: $46.08 SO ANSWERS, September 16, 2014 (c) CountySui:e Sherif, Teteosoft, inc. RNY R ANDERSON, SHERIFF