HomeMy WebLinkAbout87-0076Civil 19 ~__~
VS.
Court of Common Pleas
Cumb. Co.
30,000.00
$ PROMISSORY NOTE Loa. #
Stan's Beverage Distributo~
Debtor
Merle R. k~itter
Debtor ~.~--~4. .... O. ~r.4' 4.4-,~,~ of
ot 7~ Ashland Ave.
May 1
Dated
Carlisle, PA 17013
19
~6
FOR VALUE RECEIVED AND INTENDING TO BE LEGALLY BOUND HEREBY, the person or persons who sign as debtor below (each jointly and severally liable if
more than one person and hereinafter referred to as "Debtor"), promises to pay to the order of
FARMERS TRUST COMPANY, 1 West High Street, P.O. Box 220, Carlisle, Pa. 17013 ("Lender")
at any of Lender's branch offices,
the Principal sum of Thirty Thousand and 00/'!00 ......................................... l~ollars
in lawful money of the United States, to be paid as follows:
13.00% per annum
Interest from the date of this Note shall accrue on the unpaid Principal balance hereof at the rate of
and shall be payable monthly
as billed.
SECURITY INTEREST: As security for the prompt payment as and when due of all amounts due under this Note,
including any renewals, extensions and/or modifications thereof, together with all other existing and future
liabilities and obligations of Debtor, or any of them, to Lender whether absolute or contingent, of any nature
whatsoever and out of whatever transactions arising (hereinafter collectively referred to as the "Liabilities"), in
addition to any other security agreement or document granting Lender any rights in any of Obligor's ("Obligor",
as used herein, shall include Debtor and all other persons liable, either absolutely or contingently, on the
Liabilities, including endorsers, sureties and guarantors) property for the purpose of securing the Liabilities,
Obligor acknowledges Lender's right of set-off a nd further hereby grants to Lender a lien and security interest in
and to all property of Obligor, or any of them, which at any time Lender shall have in its possession, or which is in
transit to d, including without limitation any balance or share belonging to Obligor, or any of them, of any
deposit, agency, trust, escrow or other account or accounts with Lender and any other amounts which may be
owing from time to time by Lender to Obligor, or any of them. Said lien and security interest shall be
independent of Lender's right of set-off, which, if exercised, shall be deemed to occur at the time Lender first
restricts access of Obligor to property in Lender's possession, although such set-off may be entered upon
Lender's books and records at a later time.
blt checked, Debtor agrees that this Note is a renewal of the Promissory Note dated
'~TOV. 1 ,19 8~nd that, whether or not additional funds are advanced herewith,
this Note is not intended to create a totally new debt. If Lender was given a purchase money or other security
interest in connection with the prior Promissory Note, that security interest shall be retained by Lender in
connection with this Note.
UNCONDITIONAL LIABILITY: Obligor's liability shall be unconditional and wdhout regard to the liability of any
other Obligor, and shall not be affected by any indulgence, extension of time. renewal, waiver or modification of
this Note, or the release, substitution and/or addition of collateral security for this Note. Obligor consents to any
and all extensions of time, renewals, waivers or modifications, as well as to the release, substitution or addition
of Obligors and/or collateral security, without notice to Obligor and without affecting Obligor's liability
hereunder or under the Liabilities.
This Note is entitled to the benefits of any loan agreement(s), surety and/or guaranty agreement(s), security
agreement(s), mortgage(s), assignment(s), and/or other such loan documents (referred to as the "Loan
Documents") issued in connection with the Liabilities, whether executed previously to or concurrently with, or
to be executed subsequent to, this Note, and which may be amended, modified, renewed or substituted without
affecting in any way the validity or enforceability of this Note.
EVENTS OF DEFAULT: Each of the following shall be an "Event of Default" hereunder: (1) the nonpayment
when due, or if this is a demand obligation, upon demand, of any amount payable under this Note or of any
amount when due under or on any of the Liabilities, or the failure of any Obligor to observe or perform any
agreement of any nature whatsoever with Lender, including, but not limited to, those contained in the Loan
Documents; (2) if any Obligor becomes insolvent or makes an assignment for the benefit of creditors, or if any
petition is filed by or against any Obligor under any provision of any state or federal law or statute alleging that
such Obligor is insolvent or unable to pay debts as they mature or under any provision of the Federal
Bankruptcy Code; (3) the entry of any judgment against any Obligor or any of Obligor's property which remains
unsatisfied for fifteen (15) days; (4) the issuing of any attachment, levy or garnishment against any property of
any Obligor; (5} the occurrence of any substantial change in the financial condition of any Obligor which, in the
sole, reasonable good faith judgment of Lender is materially adverse; (6) the sale of all or substantially all of the
assets, or change in ownership, or the dissolution, liquidation, merger, consolidation or reorganization of any
Obligor which is a corporation or partnership, without the express prior written consent of Lender; (7) the death,
incarceration or adjudication of legal incompetence of any Obligor who is a natural person; (8)if any information
or signature furnished to Lender by any Obligor at any time in connection with any of the Liabildies, or in
connection with any guaranty or surety agreement applicable to any of the Liabilities, is false or incorrect; or (9)
the failure of any Obligor to timely furnish to Lender such financial and other information as Lender may
reasonably request or require.
LENDER'S RIGHTS UPON DEFAULT: Notwithstanding anything to the contrary contained herein or elsewhere.
or the fact that Debtor may be required to make Principal and/or interest payments from time to time, if this
Note is payable upon demand, Lender may demand payment of all outstanding Principal and accrued interest
at any time, whether or not an Event of Default shall have occurred. In any event, upon the occurrence of any
Event of Default, Lender may do any or all of the following:
(1) accelerate the maturity of this Note and demand immediate payment of all outstanding Principal and
accrued interest.
(2) pursuant to the Warrant of Attorney contained herein, confess judgment against Debtor, or any of them.
(3) exercise Lender's right of set-off and all of the rights, privileges and remedies of a secured party under the
Pennsylvania Uniform Commercial Code and all of its rights and remedies under any security agreement,
pledge agreement, assignment, mortgage, power, this Note or any other note, or other agreement, instrument or
document issued in connection with or arising out of any of the Liabilities, all of which remedies shall be
cumulative and not alternative. The net proceeds of any collateral held by Lender as security for any of the
Liabilities shall be applied first to the expenses of Lender in preparing the collateral for sale, selling and the like,
including, without limitation, reasonable attorney's fees and expenses incurred by Lender (including fees and
expenses of any litigation incident to any of the foregoing), and second, in such order, as Lender may, in its sole
discretion, elect, to the complete satisfaction of all of the Liabilities together with all interest thereon Obligor
waives and releases any right to require Lender to collect any of the Liabilities to Lender from any other
collateral under any theory of marshalling of assets or otherwise, and specifically authorizes Lender to apply
any collateral in which Obligor has any right, title or interest against any of the Obligor's Liabilities to Lender in
any manner that Lender may determine.
(4} Upon five (5) days written notice to Debtor, begin accruing interest, in addition to the interest provided for
above, if any, at a rate not to exceed four percent (4%) per annum on the unpaid Principal balance; provided,
however, that no interest shall accrue hereunder in excess of the maximum amount of interest then allowed by
law. Debtor agrees to pay such accrued interest upon demand.
WARRANT OF ATTORNEY: Debtor, and each of them if more than one, hereby irrevocably authorizes and
empowers any Attorney or any Clerk of any court of record upon or after the occurrence of any Event of Default,
as specified above, to appear for and CONFESS JUDGMENT against Debtor, or any of them, (a) for such sums as
are due and/or may become due on the Liabilities, and/or (b) in any action of replevin instituted by Lender to
obtain possession of any collateral securing this Note or securing any of the Liabilities, in either case with or
without declaration, with costs of suit, without stay of execution and with an amount not to exceed fifteen
percent (15%) of the unpaid principal amount of such judgment, but not less than One Thousand Dollars
($1,000.00), added for attorney's collection fees. Debtor: (1) waives the right of inquisition on any real estate
levied on, voluntarily condemns the same, authorizes the Prothonotary or Clerk to enter upon the Writ of
Execution said voluntary condemnation and agrees that said real estate may be sold on a Writ of Execution;
(2) to the extent permitted by law, waives and releases all relief from all appraisement, stay, exemption or
appeal laws of any state now in force or hereafter enacted; and (3) releases all errors in such proceedings. If a
copy of this Note, verified by affidavit by or on behalf of Lender shall have been filed in such action, it shall not
be necessary to file the original Note as a Warrant of Attorney. The authority and power to appear for and enter
iudgment against Debtor shall not be exhausted by the initial exercise thereof, and the same may be exercised,
from time to time, as often as Lender shall deem necessary and desirable, and this Note shall be a sufficient
Warrant therefore. Lender may enter one or more judgments in the sa me or different counties for all or part of
the Liabilities, without regard to whether judgment has been entered on more than one occasion for the same
Liabilities. In the event any judgment entered against Debtor hereunder is stricken or opened upon application
by or on Debtor's behalf for any reason whatsoever, Lender is hereby authorized and empowered to again
appear for and Confess Judgment against Debtor or any of them: subject, however, to the limitation that such
subsequent entry or entries of judgment by Lender may only be done to cure any errors in prior proceedings,
only and to the extent that such errors are subject to cure in the later proceedings.
THE PROVISIONS ON THE REVERSE SIDE ARE PART OF THIS NOTE.
Debtor has duly executed this Note the day and year first above written and has hereunto set Debtor's hand and seal.
(INDIVIDUAL DEBTOR(S) SIGN BELOW) ~,¢' (CORPORATION OR PARTNERSHIP DEBTOR(S) SIGN BELOW)
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