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HomeMy WebLinkAbout02-1877ORRSTOWN BANK, : Plaintiff, : V. : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- I CIVIL ACTION-LAW NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK, : Plaintiff, : : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- /~7~ ~ CIVIL ACTION-LAW COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff is Orrstown Bank, a Pennsylvania corporation, with a place of business located at King Street Executive Office, P.O. Box 250, 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendants are Keith L. Plasterer and Jamie L. Plasterer, husband and wife, adult individuals residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. On or about December 22, 1999, Orrstown loaned the sum of $575,000.00 to Keith L. Plasterer and Jamie L. Plasterer. In consideration of said loan, Keith L. Plasterer and Jamie L. Plasterer executed and delivered their Promissory Note ("Note"), a true and correct copy of which is attached hereto as Exhibit "A" and is incorporated. 4. The final payment under the Note was to be made by Defendants by December 22, 2001. 5. Defendants failed to make the payments due under and pursuant to the Note. Note. 6. As of March 26, 2002, the sum of $578,902.54 was due and payable under the 7. Notice of default was given to the Defendants by letter dated February 22, 2002. A tree and correct copy of the notice provided is attached hereto as Exhibit "B". 8. Despite demand therefore, Defendants have failed and refused to pay the mount due and owing. 9. The Note provides for the recovery of late charges, costs and expenses, and attorney fees in the event Orrstown pursues collection of the debt. WHEREFORE, Plaintiff requests judgment be entered in its favor and against the Defendants, jointly and severally, for the sum of $578,902.54 plus interest, late charges, costs and expenses and attorney fees. Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/plasterer/plasterer.com 84/18/2882 15:48 7172495755 OBS LAW OFFICE PAGE 86 The statements in the foregoing Complaint arc bascd upon information which has been assembled by my a~orncy in this litigation. The language of the statements is not my own. I have mad the statcments; and to the extent that they oxe based upon information which I have givcn to my counscl, they are tree and correct to the best of my knowledge, information and belief. I understand that false statements herein are rnadc subject to thc penalties of l 8 Pa.C.$. § 4904 relating to un,worn falsifications to authoritics. DALE: z], I .2., ~ ~.. ! Betsy Smith, Collector Orrstown Bank PROMISSORY NOTE Re;., e~ in the shaded .~ ~ ,~ LenSes use only and do not Ilmil the appli~bil,~ of this d~u~nt"ig"~"~~~::~'"<~' '" I Borrower: KEITH L ~ST~ (~N: 181~2~0) Lender: ORRSTO~ B~K JAMIE L ~STERER (SSN:) King S~t ~ecutlve ~ce ~ ~m; y DR P.O. ~x 2~ CA.ISLE, PA 1~13 ~ E~I King Str~l Shlp~n~urg, PA 1~ Principal Amount: $575,000.00 Initial Rate: 9.500% Date of Note: December 22, 1999 PROMISE TO PAY. I promise Io pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of the United States of America, the principal amount of Five Hundred Sevenly Five Thousand & 00/100 Dollars ($575,000.00), together with Interesl on the unpaid principal balance from December 22, 1999, until paid in full. The Interest rate will not Increase above 18.000%. PAYMENT. Subject to any paymenl changes resulting from changes In the Index, I will pay this loan In 23 regular payments of $5,023.60 each and one Irregular last payment eslimated at $567,612.88. My first payment Is due January 22, 2000, and all subsequent payments are due on the same day of each monlh after that. My final payment due December 22, 2001, will be for all principal and all accrued Interest not yet paid. Payments Include principal and Interest. Infaresf on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of Ihs annual interest rate over the number of days In · year (366 dudng leap years), multiplied by the outstanding pdncipel balance, multiplied by the actual number of days the pflncipal balance is outstanding. I will pay Lender at Lender's address shown above or at such other place as Lender may designate In writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. DEMAND FEATURE. THE LOAN IS NOT PAYABLE ON DEMAND. THE LOAN WILL BE EXTENDED, BY THE LENDER, FOR A THREE (3) CONSECUTIVE ONE YEAR TERMS, PROVIDED THAT NO PAYMENT IS MORE THAN 29 DAYS PAST DUE AT ANY TIME DURING THE IMMEDIATELY PRECEDING TERM. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time lo time based on changes in an independent index which is the WALL STREET PRIME (the "Index"). The Index is not necessedly the lowest rate cha~ged by Lender on its loans. If the Index becomes unavailable dudng the term of this loan, Lender may designate a substitute index after notice to me. Lender will tell me the current Index rate upon my request. I understand that Lender may make loans based on other rates as well. The interest rate change will not occur more often than each day. The Index currently Is 8.500% par annum. The Interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 parcentsge point over the Index, adjusted If nece~_-~__ry for the maximum rate limitation deeerlbed below, resulting in an initial rate of 9.500% par annum. Notwithstanding any other provfalon of this Note, the variable Inlereat rate or rates provided for In lhls Note will be subject fo the following maxlrnum rate. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 18.000% per annum or the maximum rate allowed by applicable law. Unless waived by Lender, any Increase In the Interest rate will Increase the amounts of my payments. PREPAYMENT. I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in wdting, relieve me of my obligation to continue to make payments under the paymenl schedule. Rather, they will reduce the pdncipel balance due and may result in me making fewer payments. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. DEFAUL.T. I will be in default if any of the following happens: (a) I fail to make any payment when due. (b) I break any promise I have made to Lender, or I fail to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreement or loan I have with Lender. (c) Any representation or statement made or furnished to Lender by me or on my behalf is false or misleading in any material respect either now or at the time made or furnished. (d) I die or become insolvent, a receiver is appointed for any part of my property, I make an assignment for the benefit of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor Ides to fake any of my properly on or in which Lender has a lien or secudty interest. This includes a garnishment of any of my accounts with Lender. (f) Any of the events described in this default section occurs with respect to any guarantor of this Note. If any default, other than a default in payment, is curable and if I have not been given a noUce of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if I, after receiving wdtten notice from Lender demanding cure of such default: (a) cure the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then I will pay that amount. Lender may hire or pay someone else to help collecl this Note if I do not pay. I also will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not Ihere is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injuncUon), appeals, and any anticipated post-judgment collection services. If not prohibited by applicable law, I also will pay any court costs, in addition Io all other sums provided by law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania. If there Is a lawsuit, I agree upon Lender's request fo submit to the Jurisdiction of the courts of Cumberland Counly, the Commonwealth of Pennsylvania. This Note shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. I grant to Lender a contractual secudty interest in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my dght, title and interest in and to, my accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly with someone else and all accounts I may open in the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by law. I authodze Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and ali such accounts. COLLATERAL. This Note is secured by, in addition to any other collateral, a Mortgage dated December 22, 1999, to Lender on real property located in CU,%4BERLAND Couniy, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of this Note. EXHIBIT "A" 12--72-1999 PROMISSORY NOTE Page 2 , .I.~'~en No (Cont. inued) GENERAL PROVISIONS. This Note has a demand feature. The inclusion of specific default provisions or dghts of Lender shall riel pre(dude Lender's right to declare payment of this Note on its demand. Lender may delay or forgo enfoming any of its rights or remedies under this Note without losing them. I and any other person who signs, guarantees er endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs lhis Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liabilily. All such padias agree that Lender may renew or extend (repeatedly and for any length of lima) this loan, er release any party or guarantor or collateral; er impair, fail to realize upon or perfect Lender's security infarast in the collateral. All such parties also agree that Lender may modify this loan without Iha consent of or notice to anyone olher than the party with whom the modification is made. The obligations under this Note are joint and several. This means that the words '1", "me", and "my" mean each sad all of the persons signing below. PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCt. IJ~ING ~ VARIABLE INTEREST RATE PROVISIONS AND THE NOTICE TO COSIGNER SET FORTH BEt. OW. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: X ~::~:~i ==================================================================== KEi~FFFLr~STERER ~¥MIE L PLASTERER NOTICE TO COSIGNER You are being asked fo guarantee this ~ebt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford lo pay If you have to, and that you want to accept this responsibility. You may have fo pay up to the full amount of the debt If the borrower does not pay. You may also have I0 pay late fees or collection costs, which Increase this amount. The lender can collect this debt from you without first trying fo collecl from the borrower. The lender can uso the same collection methods ageinst you that can be used against the bon'ower, such as suing you, garnishing your wages, etc. If this debt is ever In default, that fact may become a part of YOUR credit record. This notice is not the contract that makes you liable for the debt. Variable Rate. Balloon. LASER PRO, Reg. U.S. Pat. & T.M. off., Vet. 3.28b (c) 1999 CFI ProServices, Inc. All rights reserved. [PA-D20 E3.28 F3.28a P3.28a 06923CL.LN] O TO N BANI( February 22, 2002 W. WAYDE KELLY KEITH L. PLASTERER JAMIE E. PLASTERER 101 KELLY DRIVE CARLISLE, PA. 17013 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pa.cles, The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counselino A~lencies serving your County are listed at the end of this Notice. If you have any questions, you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. EXHIBIT PO Box 250 · Shippensburg, PA 17257 · (717) 532-6114 · (717) 532-4143 Fax · www.orrstown.com LA NOTIFICACION EN AD JUNTO ES DE SUIVtA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVlENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCClON INMEDITAMENTE LLAMANDO ESTA AGENClA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENClONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINAL LENDER: KEITH L. & JAMIE E. PLASTERER W. WAYDE KELLY 36 KELLY DRIVE CARLISLE, Pa. 17013 26338409001 ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS MORTGAGE ASSISTANCE ACT OF 1983 (THE EMERGENCY MORTGAGE ASSISTANCE: OF THE HOMEOWNER'S EMERGENCY "ACT"), YOU MAY BE ELIGIBLE FOR · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located ar~. set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 36 KELLY DRIVE, CARLISLE, PA. 17013. IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due:DECEMBER 22ND--$575,857.44. Other charges (explain/itemize): LATE FEES--S144.85 TOTAL AMOUNT PAST DUE: $ 576,002.29 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ 576,002.29. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK ATTN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mort.cla.qe propertv. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charqes then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Orrstown Bank Address: Phone Number: Fax Number: Contact Person: P.O. Box 250, 77 East Kin.q Street Shippensburg, PA 17257 (717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIE.,S SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 SHERIFF'S RETURN ~CA~ NO: 2002-01877 P COMMONWEALTH OF PENNSYLV~_NIA: COUNTY OF CUMBERLAND ORRSTOWN BkNK VS PLASTERER KEITH L ET AL - REGULAR RONALD HOOVER , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon PLASTERER KEITH L the DEFENDAIqT , at 1005:00 HOURS, on the 26th day of April at 36 KELLY DRIVE , 2002 CARLISLE, PA 17013 by handing to JAIME L PLASTERER a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 6.21 Affidavit .00 Surcharge 10.00 .00 34.21 Sworn and Subscribed to before me this /~ day of ~, ~,~ A.D. I tYroth6notary So Answers: R. Thomas Kline 04/29/2002 OBRIEN BARIC SCHERER Deputy Sheriff SHERIFF' S RETURN - · CA~ NO: 2002-01877 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS PLASTERER KEITH L ET AL REGULAR RONALD HOOBER , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon PLASTERER JAMIE L the DEFENDANT , at 1005:00 HOURS, on the 26th day of April at 36 KELLY DRIVE , 2002 CARLISLE, PA 17013 JAIME L PLASTERER a true and attested copy of by handing to COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this /~ day of ~t~ ~ ~2~ A.D. So Answers: R. Thomas Kline 04/26/2002 0BRIEN BARIC SCHERER By: Deputy Sheri f~'f Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 ENTRY OF APPEARANCF~ TO THE PROTHONOTARY: Kindly enter the appearance Shahan G. Teberian and Klehr, Harrison, Harvey, Branzburg & Ellers LLP on behalf of the Defendants in the above-captioned matter. Dated: KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shah~ari G. Teberian, Esquire Attorneys For Defendants 7PHIL1: 459509-1 Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. : COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA : CIVIL ACTION-LAW No. 2002-1877 _CERTIFICATE OF SERVICE I, Shahan G. Teber/an, hereby certify that a true and correct copy of the entry of appearance by Shahan G. Teberian and Klehr, Harrison, Harvey, Branzburg & Ellers LLP on behalf of the Defendants was mailed via first class mail, postage prepaid on May 30, 2002 to the following: David Baric, Esquire O'Brien, Baric & Scherer 17 West South Street Carlisle, PA 17013 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shahan G. Teberian, Esquire Attorneys For Defendants 9PHILI: 459509-I Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTEKER and JAMIE L. PLASTERER Defendants. : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 ORDER AND NOW, to wit, this day of ,2002, upon consideration of the Preliminary Objections of the Defendants, Keith L. Plasterer and Jamie L. Plasterer, and any response thereto, it is hereby ORDERED that the Preliminary Objections are SUSTAINED, and it is further ORDERED, that the Complaint is dismissed. BY THE COURT: Jo PHILI: 459509-1 Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA : : CIVIL ACTION-LAW : : No. 2002-1877 PRELIMINARY OBJECTIONS OF THE DEFENDANTS TO THE COMPLAINT OF ORRSTOWN BANK The Defendants, Keith and Jamie Plasterer, by and through their counsel, Klehr, Harrison, Harvey, Branzburg & Ellers LLP, hereby file these Preliminary Objections to the aver as Complaint (the Complaint ) of Orrstown Bank (the "Bank"), and in support hereof, follows: BACKGROUND On or about April 17, 2002, the Bank filed its Complaint, a true and correct copy of which is attached hereto, incorporated herein, and marked as Exhibit "1." 2. The Complaint purports to be an action in assumpsit and seeks judgment based upon a promissory note. See Exhibit "1." 3. On May 21, 2002, the Bank delivered to the Defendant, Jamie Plasterer, a notice, pursuant to Pa. R.C.P. 237.1, of intention to take default judgment (the "237.1 Notice"). A tree and correct copy of the 237.1 Notice is attached hereto, incorporated herein, and marked as Exhibit "2." 2PHILI: 459509-I 4. The 237.1 Notice states that this is an action in Mortgage foreclosure. See Exhibit COUNT I DEMURRER paragraphs 1-4 above, as though they are set forth fully and at length. 6. Pennsylvania Rule of Civil Procedure 1028(a)(4) preliminarily object to a Complaint for legal insufficiency. 7. The Defendants incorporate herein by this reference the allegations set forth in states that a party may The Note attached as Exhibit "A" to the Complaint states that: The Loan [maturity date of December 22, 2001] will be extended, by the Lender, for a [sic.] three consecutive one year terms, provided that no payment is more than 29 days past due at any time during the immediately preceding term. See_ Exhibit "A" to the Complaint. 8. The Complaint alleges that "the final payment under the Note was to be made by Defendants by December 22, 2001." Complaint at ¶ 4. 9. The Complaint nowhere explains why the Bank did not extend the maturity date as the Note requires 10. Nor does the Complaint allege that any payment was more than twenty-nine (29) days late in the previous teim. 11. Accordingly, the Complaint is legally insufficient because, based upon an examination of the Complaint and exhibits, the Bank is not currently entitled to the relief it is requesting. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(4), for legal insufficiency. 3PHILI: 459509-1 COUNT II DEMURRER The Defendants incorporate herein by this reference the allegations set forth in 12. paragraphs 1-11 above, as though they are set forth fully and at length. 13. Pennsylvania Rule of Civil Procedure 1028(a)(4) states that a party may preliminarily object to a Complaint for legal insufficiency. 14. A review of the 237.1 Notice reveals that the Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 15. The Complaint fails to set forth a claim in mortgage foreclosure. 16. Indeed, the Complaint nowhere even mentions the Mortgage in question, and does not attach a copy of the Mortgage. 17. Similarly, the relief requested in the Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 18. Nor has the Bank made any allegations necessary to set forth the elements of an action in mortgage foreclosure. 19. The Complaint is therefore legally insufficient. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(4), for legal COUNT III FAILURE TO CONFORM TO LAW OR RULE OF COURT insufficiency. The Defendants incorporate herein by this reference the allegations set forth in a party may 20. paragraphs 1-19 above, as though they are set forth fully and at length. 21. pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. 4PHILI: 459509-1 22. A review of the 237.1 Notice reveals that the Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 23. The Complaint fails to comply with the requirements of Pa. R.C.P. 1147, governing actions in mortgage foreclosure. 24. Similarly, the relief requested in the Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 25. The Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or rule of court. COUNT IV FAILURE TO CONFORM TO LAW OR RULE OF COURT 26. paragraphs 1-25 above, as though they are set forth fully and at length. 27. Pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. 28. pennsylvania Rule of Civil Procedure 1019(i) states that: The Defendants incorporate herein by this reference the allegations set forth in a party may action. When any claim...is based upon a writing, the pleader shall attach a copy of the writing, or material part thereof. Pa. R.C.P. 1019(i). 29. The Complaint fails to attach a copy of the Mortgage, which underlies the Bank's 30. Even if the Complaint was intended as an action on the Note, the Mortgage must still be attached to the Complaint because the Note states it is: 5PHILI: 459509-1 secured by...a Mortgage... all the terms and conditions of which are hereby incorporated and made a part of this Note. See Exhxb~t A to the Complaint. 31. Thus, the Note attached to the Complaint is incomplete without a copy of the related Mortgage. 32. The Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or rule of court. Dated: KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shah~n-~ TeberiaTn,'Esquire Attorneys For Defendants 6PH1LI:459509-1 Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 CERTIFICATE OF SERVICE I, Shahan G. Teberian, hereby certify that a tree and correct copy of Preliminary Objections of the Defendants to the Complaint of Orrstown Bank was mailed via first class mail, postage prepaid on May 30, 2002 to the following: David Bade, Esquire O'Brien, Baric & Scherer 17 West South Street Carlisle, PA 17013 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Attorneys For Defendants 8PHILI: 459509-1 Exhibit A ORRSTOWN BANK, Plaintiff, V. KEITH L. PLASTERER and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- / 87 7 CIVIL ACTION-LAW NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. YoU are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 IRUE COPY FROM RE~ Iff Testimony whereof, I here unto · a~ the. _s~_ ~1 saki Coq~_ ~ 9a,~ ~ -- ~' Pro. mo 3ORI ~tmy Irt ORRSTOWN BANK, : Plaintiff, : : V. : : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- CIVIL ACTION-LAW COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff is Orrstown Bank, a Pennsylvania corporation, with a place of business located at King Street Executive Office, P.O. Box 250, 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendants are Keith L. Plasterer and Jamie L. Plasterer, husband and wife, adult individuals residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. On or about December 22, 1999, Orrstown loaned the sum of $575,000.00 to Keith L. Plasterer and Jamie L. Plasterer. In consideration of said loan, Keith L. Plasterer and Jamie L. Plasterer executed and delivered their Promissory Note ("Note"), a true and correct copy of which is attached hereto as Exhibit "A" and is incorporated. 4. The final payment under the Note was to be made by Defendants by December 22, 2001. 5. Defendants failed to make the payments due under and pursuant to the Note. Note. As of March 26, 2002, the sum of $578,902.54 was due and payable under the 7. Notice of default was given to the Defendants by letter dated February 22, 2002. A true and correct copy of the notice provided is attached hereto as Exhibit "B". 8. Despite demand therefore, Defendants have failed and refused to pay the amount due and owing. 9. The Note provides for the recovery of late charges, costs and expenses, and attorney fees in the event Orrstown pursues collection of the debt. WHEREFORE, Plaintiff requests judgment be entered in its favor and against the Defendants, jointly and severally, for the sum of $578,902.54 plus interest, late charges, costs and expenses and attorney fees. Respectfully submitted, . 'mEN,fi, c SCOUR David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/plasterer/plasterer, com The statements in the foregoing Complaint are based upon information which has been assembled by my attorney in this litigation. The language of the statements is not my own. i have mad the stat~mcnls; and to the extent that they are based upon information which I have given to my counsel, they are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subjec! to the penalties of ! 8 Pa.C.S. 4904 r~lating to unswom falsifications to authorities. DATE: q, I )_. <~ ~ / B~tsy Smith, Coliector Or~slown Bank PROMISSORY NOTE · - "; Lenaer: ORRSTOWN BANK JAMIE L PLASTERER (SSN:) 36 KFI [Y DR CARLISLE, PA 17013 King Street Executive Office P.O. Box 250 77 East King Street Shlppensburg, PA 17257 Principal Amount: $575,000.00 Initial Rate: 9.500% Date of Note: December 22 1999 PROMISE TO PAY. I promisa to pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of lhe United Stales of America, Ihe p amount of Five Hundred Sevanly Five Thousand & 00/100 Dollars ($$75,000.00), Iogether wllh Interest on the unpaid principal belan( lnclpal December 22, 1999, until paid In full. The Interest rate will not Increase above 18.000%. from PAYMENT. Subject to any payment changes resulting from changes In lhe Index, I will pay lhis loan in 23 regular payments of $$,023.i each and one Irregular last payment estimated at $567,612.88. My first payment Is due January 22, 2000, and all subsequent paymenl$ are ]e on Ihe same day of each monlh after that. My final payment due December 22 2001, wll be for all principal and all accrued Interest not yl ~1 paid. Payments Include principal and Interest. Inleresl on this Note s computed on a 365/365 simple interest basis; thai is, by applying the rati¢ of the annual interest rate over the number of days n a year (366 during leap years), multiplied by lhe outstanding principal balance, multiplied by ti actual number of days the prindpal balance is outstanding. I will pa~ Lender at Lender's address shown above er at such cther place as Lan ~r may designate In writing. Unless otherwise agreed or required by applicable taw, payments will be applied flrsf to accrued unpaid interest, Ihen to ncipal, and any remaining amount to any unpaid collection costs and late charges. DEMAND FEATURE. THE LOAN IS NOT PAYABLE ON DEMAND. THE LOAN WILL BE EXTENDED, BY THE LENDER, FOR A THF ;E (3) CONSECUTIVE ONE YEAR TERMS, PROVIDED THAT NO PAYMENT IS MORE THAN 29 DAYS PAST DUE AT ANY TIME DURIN THE IMMEDIATELY PRECEDING TERM. VARIABLE INTEREST RATE. The interest rate on lhis Note is subject to change from time 1o time based on changes in an independent inde~ which is the WALL ~i~EET PRIME (the "lndex~. The Index is nol necessarily the lowest rate charged by Lender on its loans. If the Index be :crees unavailable during the term of this loan, Lender may designale request. I understand that Lender may make loans based on other rates as well. The nleresl rate change wlil not occur more often than eac t day. a substituta index after notice 1o me. Lender wil tell me lhe current Index role up ~n my The Index currently Is 8.500% per annum. The Interest rate to be applied Io lhe unpaid principal balance of this Nole will be at a rate of 1.000 percentage point over the Index, adjusled If necessary for the maximum rate limitation described below, resulting in an Initial rate of 9 per annum. Notwllhstanding any other provision of this Note, the variable Intarasl rate or rates provided for In this Note will be subject: 500% o the following maximum rate· NOTICE: Under no circumstances will the inlerest rata on this Note be more than lhe lesser of 18.000% per annum )r the maximum rate allowed by applicable law. Unless waived by Lender, any Increase In the Interest rate will Increase lhe amounts of my payrr ants. PREPAYMENT. I may pay without penally 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 me of my obligation to continue to make payments under the payment schedule. Rather, they will reduce the pri~ ~cipal balance due and may result in me making fewer paymenls. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment· DEFAULT. I will be in default if any of the following happens: (a) I fail to make any payment when due. (b) I break any promise I have ma ]e to Lender, or I fail to comply with or to perform when due any other term, obligation, covenant, or condition contained in Ihis Nole or any agree rnent related to this Note, or in any other agreamenI or loan have with Lender c A · on my behalf is false or misleading i anv m~f~rtnl rc~r~a --:,~-- ' ( ) n..y representation or statement made or furnished to Lender by r le or _ n _ . ............ ~..~L u~er now or at the T~me made or furnished. (d) I die or become insolvent, a recei~ er is appointed for any part of my property, I make an assignment for the benefit of creditors, or any proceeding is commenced either by me or agaln.~ l me Under any bankruptcy or nsolvancy laws. (e) Any creditor tries lo take any of my properly on or in which Lender has a lien or security interest. includes a garnishment of any of my accounts with Lender. (f) Any of the events described in this default section occurs with respect lo any guan This of lhis Note. ~nlor It any default, other than a default in payment, is curable and if I have not been given a notice of a breach of the same provision of this Note withi~ ~ the preceding hve/ve (12) months, it may be cured (and no event of default will have occurred) If I, after receiving written no§ce from Lender demon :ling cure of such default: (a) cure the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immedialely initiate steps ~ hich Lender deems in Lender's sole discretion lo be sufficient 1o cure the default and thereafter continue and complete all reasonable and necessary s 'eps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon defau t, Lender may, after giving such notices as r · . . this Note and all accrued unpaid interest immediat Iv ~ o,,~ ..~ ~ ...= equ~red by appl~cab!e law, declare the enlire unpmd rinci al balanc~ ~ on e, du ............ II pay lhat amount. Lancer may hire or pay someone eisap to ~l~lp collect lhis Note if I do not pay. I a so w li pay Lender that amount. This inclu?~s, subject to any limits under applicable law, Lender's attorneys' fees and Lane legal expenses whelher or not lhere is a lawsuit, includin= afiorne fees vacate any automatic stay or iniunct nnl =n,~==! ..... ~ .... ys. _ a.n.d I.egal expenses for bankruptcy proceed nos (inc udina ~ffnrf~ . er's .... ,, -r-~.~-,o, ,r~u uny anilclpa~eo posl-luonm=,~ ,~.~*r ..... -. ...... ._. ___l ....~ ..... to modlt ! or · =, .... ,~,,~..,,v. ==,v~s. ir no! prohibited by applicable law, I also will pay any court costs, in addition 1o all other sums provided by law. If judgment is entered in connection with this Note, interest will continue to ac( rue on this Note after judgment at the interest rate applicable Io this Note al the time judgment is entered. This Note has been delivered to Lender ~ md accepled by Lender In the Commonwealth of Pennsylvanta. If Ihere Is a lawsuit, I agree upon Lender's request to submit lo the Juriedlcflo!: of the courts of Cumberland Counly, the Commonweallh of Pennsylvania. This Note shall be governed by and construed In accordance with lhe laws of lhe Commonwealth of Pennsylvania. RIGHT OF SE'TOFF. I grant to Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my rft Iht, title and interest in and to, my accounts with Lender wheth r ' ' . ,o, ntiy w, Ih someone else and all accounts I may ope n the% ,nc,udmg wi,hour limitation al, accounts h,,d grant of a security interest would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setoff all sums ow ng , ~1 ~,uwuvel~ all II-IA ano ~eogn accounts, and all trust accounls for which he on this Note against any and all such accounts. COLLATERAL. This Note is secured by, in addition to any other collateral, a Modgage dated December 22, 1999, to Lender on real properly Iocalec in CU'~.'~BERLAND County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of Ihis Nol .=. EXHIBIT "A" 12"22-1999 PROMISSORY NOTE Page 2 Lo.~n No (Continued) GENEI~AL PRO¥1SIONS. This Note has a demand feature. The inclusion of specific default provisions or rights of Lender shall not preclude'Lender's' dght to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of its rights or remedies under this Note wilhout losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and nolioa of dishonor. Upon any change in the farms of this Note, and unless othef~v~e expressly stated in writing, no parly 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) Ibis loan, or release any party or guarantor or collateral; or impair, faa to realize upon ~ perfect Lender's security interest in the collateral. All such padies also agrea that Lender may modify this loan wilhout the consent of or notice to .a.ny.~..n~_.othe~- than the party with whom the modification is made. The obligations under lhis Note are joint and several. This means that Ihs words "1, 'me, and "my" mean each and all of the persons signing below. ~ PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCU. IDING THE VARIABLE INTEREST RATE PROVISIONS AND THE NOTICE TO COSIGNER SET FORTH BEt. OW. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: X :~:::~:~i::~~ .......... :~ .................................................... KEt~I~I L--FF~A$~r. HER~ ,~IIE L PLASTERER NOTICE TO COSIGNER I youY°U canare 'beingafford askedlo tOlf guarantee this debt. Think carefully before you do. If the borrower doesn't pay lhe debt, you will have to.~e sure pay you have to, and that you want to accept lhis responslbilily. T whlchY°U maYlncreasehaVe tothisPaYamount.UP to the full amount of the debt If the borrower does not pay. You may also have to pay late fees or collection' costs, The lender can co#ecl this debt from you without first trying lo collect from Ihe borrOWer. The lender can use the same collection m ,,lheds againsl you that can bo uead against the borrOWer, such as suing you, garnishing your wages, etc. If Ihis debt Is ever In default, that f~ ct may become a part of YOUR credit record. This nollce Is not the contract that makes you liable for the debt. ~ariable Rate. Balloon. LASER PRO, Reg. U.S. Pat. & T.M. Off., Var. 3.28b {c) 1999 CFI ProServIces, Inc. All rights reserved. {PA-D20 E3.28 F3.28a P3.28;~ 0692 )CL.LN] BANK ~oo/ February 22, 2002 W. WAYDE KELLY KEITH L. PLASTERER JAMIE E. PLASTERER 101 KELLY DRIVE CARLISLE, PA. 17013 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pa.qes. The HOMEOWNER'S EMERGENCY MORTAGEASSISTANCE PROGRAM (HEMAP) ma be able to help to save your home. This Notice explains how the pro.qram works To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELI AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you wh you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counseling Agenci servin(~ your County are listed at the end of this Notice. If you have any questions, you m call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons w impaired hearing can call (717) 780-1869). G th This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain lit. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. EXHIBIT "B" PO Box 250 · Shippensburg, PA 17257 · (717) 532-6114 · (717) 532-4143 Fax · www.orrstown.com LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICAClON OBTENGA UNA TRADUCClON INMEDITAMENTE LLAMANDO ESTA AGENClA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENClONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROG LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PRO~I~AM" ~ RAr,~ i~,A PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU I~I~'CA-." HOMEOWNER'S NAME(S): KEITH L. & JAMIE E. PLASTERER W. WAYDE KELLY PROPERTY ADDRESS: 36 KELLY DRIVE CARLISLE, PA. 17013 LOAN ACCT. NO.: 26338409001 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FRO FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGEN( MORTGAGE ASSISTANCE ACT OF '1983 (THE "ACT"), YOU MAY BE ELIGIBLE F£ EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOI CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YO[ MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY TF PENNSYLVANIA HOUSING FINANCE AGENCY. ., TEMPORARY STAY OF FORECLOSURF - Under the Act, you are entitled to a tempora stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that tin you must arrange and attend a "face-to-face" meeting with one of the consumer credit counselir agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (3, PAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUE BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CUR YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. ;Y ~R rR R E CONSUMER CREDIT COUNSELING AGENCIES -- If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of desiqnated consumer credit counselin.q a.qencies for the county in which the property is Iocated~arn set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Ad~,ise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the natur.~ of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assist~ Program Application with one of the designated consumer credi't counseling agencies listed al end of this Notice. Only consumer credit counseling agencies have applications for the program they will assist you in submitting a complete application to the Pennsylvania Housing Fina Agency. Your application MUST be filed or postmarked within thirty (30) days' of your face-to-! meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSl. MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very lira They will be disbursed by the Agency under the eligibility criteria established by the Act. ' Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives ~ application. During that time, no foreclosure proceedings will be pursued against you if you have the time requirements set forth above. You will be notified directly by the Pennsylvania How Finance Agency of its decision on your application. nce the ~nd r~ce ~lce OU RE OR ¸ed. the our ~et ,ing NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPO,~ ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance. HOW TO CURE YOUR MORTGAGE DEFAULT {Bring it up to date). - The MORTGAGE debt held by the above lender on your property NATURE OF THE DEFAULT located at: 36 KELLY DRIVE, CARLISLE, PA. 17013. I IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months ~nd the following amounts are now past due:DECEMBER 22ND--$575,857.44. Other charges (explain/itemize): LATE FEES--S144.85 TOTAL AMOUNT PAST DUE: $ 576,002.29 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ 576,002.29. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified cl~eck or money order made payable and sent to: , ORRSTOWN BANK A'I-TN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAY: the date of this Notice, the lender intends to exercise its rights to accelerate the mortga.qe d, This means that the entire outstanding balance of this debt will be considered due immediately you may lose the chance to pay the mortgage in monthly installments. If full payment of the t amount past due is not made within THIRTY (30) DAYS, the lender also intends to instrucl attorneys to start legal action to foreclose upon vour mort(~ac~e property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sh. to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure delinquency before the lender begins legal proceedings against you, you will still be required to the reasonable attorney's fees that were actually incurred, up to $50.00. However, if IE proceedings are started against you, you will have to pay all reasonable attorney's fees actu incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amc you owe the lender, which may also include other reasonable costs. If you cure the default wit the THIRTY (30) DAY period, you will not be required to pay attorney's fees OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid princ balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALF - If you have not cured the del within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the to cure the default and prevent the sale at any time up to one hour before the SherifFs Sale. You do so by payin.q the total amount then past due, plus any late or other charqes then due, reason; attorney's fees and costs connected with the foreclosure sale and any other costs connected with SherifFs Sale as specified in writinq by the lender and by performing any other requirements un the mortqaqe. Curing your default in the manner set forth in this notice will restore y mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SAI F DATF - It is estimated that the earliest date that suc SherifFs Sale of the mortgaged property could be held would be approximately 5 months from of ~bt ~nd 3tal its .~riff the ~ay ,gal ally unt bin ~ult ght lay bin th~ ~er )ur Pla the date of this Notice. A notice of the actual date of the SherifFs Sale will be sent to you before :he sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Orrstown Bank Address: Phone Number: Fax Number: Contact Person: P.O. Box 250, 77 East Kin.q Street Shippensbur.q, PA 17257 (717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a SherifFs Sale will end your ownershi the mortgaged property and your right to occupy it. If you continue to live in the property after SherifFs Sale, a lawsuit to remove you and your furnishings and other belongings could be starte( the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transfE who will assume the mortgage debt, provided that all the outstanding payments, charges attorney's fees and costs are paid prior to or at the sale and that the other requirements of mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFA[ HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS Rl(~ TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSIJ PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMEN'~ · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTI BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. ~ of the by ~ee ~nd the OR ILT HT RE CONSUMER CREDIT COUNSELING' AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (8.14) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Exhibit B H~Y-28-02 TUE 11:35 KLP ENTERPRISES F~X NO, 7177956141 P, 02 ORRSTOWN BANK. Plaintiff', Kt:,ITI I I,. PLASTERER mid .IAMIE L. PLASTERER, his witi:, Delbndants. IN THECOURT ()F (.'OMM~r', ~ t I \,', t~l CUMBERLAND COI~NI '. '1 ~, ,.',~ I ~'.\NI . NO. 2002-1877 CIVIl. I ~,1,~ '. MORTOACIE FORE('I ~'~. I<1 TO: J~m'fic L. Plasterer 36 Kelly Drive Carlisle, Penn.sylvania 17013 I.)8t¢ ol'Notioe: May 21,2002 IMPORTANT NOTICE YOLI ARE IN DEFAtJI,T BECALISE YOU HAVE FAIl,ED APPEARANCE PERSONAI,I,Y OR BY ATTORNEY AND FII .E IN COURT YOUR DEFENSES OR OBJECTIONS TO THE, CLAIMS Y()I.L UNLESS YOU A('T WITHIN TEN DAYS FROM Till': DA'I'E JUDGMENT MAY FiE I':N'I'ERED AGAINST YOU Wl'l'ltOt ~'i' A FiE MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHT'~ TI fl'S NOTICE TO A I,AWYER KI' ONCE. FF YOU DO NOT HAVI- CANNOT AFFORD ONE, OO TO OR TELEPHONE THE FOLIX)~ OUT WHERE ¥OLJ CAN GET LEGAI, HELP. Cumberland Count, Bar As.~ciation 2 I, ibcrly Awnue Carlisle. Pennsylvania 17013 Telephone: (717) 249-3166 o'Sal .N, t AR ,' David A, Bari;~ ff~u~- C~lisle, PX ' ;1 ~7~ 7~ 24 9.68 q$ ORRSTOWN BANK, : Plaintiff, : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- 1877 CIVIL TERM CIVIL ACTION-LAW NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Amended Complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK, : Plaintiff, : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-1877 CIVIL TERM CIVIL ACTION-LAW AMENDED COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Amended Complaint and, in support thereof, sets forth the following: 1. The Plaintiff is Orrstown Bank, a Pennsylvania corporation, with a place of business located at King Street Executive Office, P.O. Box 250, 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendants are Keith L. Plasterer and Jamie L. Plasterer, husband and wife, adult individuals residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. On or about December 22, 1999, Orrstown loaned the sum of $575,000.00 to Keith L. Plasterer and Jamie L. Plasterer. In consideration of said loan, Keith L. Plasterer and Jamie L. Plasterer executed and delivered their Promissory Note ("Note"), a tree and correct copy of which is attached hereto as Exhibit "A" and is incorporated. 4. Contemporaneously therewith, Keith L. Plasterer and Jamie L. Plasterer executed and delivered a Mortgage, a tree and correct copy of which is attached hereto as Exhibit "B". 22,2001. 6. The £mal payment under the Note was to be made by Defendants by December Defendants failed to make monthly payments under and pursuant to the Note and were more than twenty-nine (29) days past due on their monthly payment for at least the following monthly payments during the term December 22, 1999 through December 22, 2001: Note. Due Date: a) April 22, 2000 b) May 22, 2000 c) November 22, 2000 d) January 22, 2001 e) February 22, 2001 Payment Date: May25,2000 June 23,2000 December26,2000 February23,2001 April4,2001 Defendants failed to make the payments due under and pursuant to the Note. As of March 26, 2002, the sum of $578,902.54 was due and payable under the 9. Notice of default was given to the Defendants by letter dated February 22, 2002. A tree and correct copy of the notice provided is attached hereto as Exhibit "C". 10. Despite demand therefore, Defendants have failed and refused to pay the amount due and owing. 11. The Note provides for the recovery of late charges, costs and expenses, and attorney fees in the event Orrstown pursues collection of the debt. WHEREFORE, Plaintiff requests judgment be entered in its favor and against the Defendants, jointly and severally, for the sum of $578,902.54 plus interest, late charges, costs and expenses and attorney fees. Respectfully submitted, ~BRIEN, BARIC & SC..,~R David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/plasterer/amended.com 0G/03/2092 14:52 7172495755 OBS LAW OFFICE P~GE 25 TI~ ~l~m~ts in lhe foregoing Amended Complaim arc based upon information which Ires I~en ~embled by my at~omcy in this litigation. The languagc of the smtcments is not my own. I have ~ the st~em~nts; ~nd ~o thc extent that they are based upon information which 1 have given to my comoel, lhey are true ~nd corr~c! to thc besl of my knowledge, information ~md belief. I umt~rs~md Iha~ false st~lements herein are made subject to thc penalties of 18 Pa.C.S. § 4904 relatin~ to unswom falsifications to authorities. DAT~: ~. 3- ol._ Betsy Smith, Collector Orrstown Bank =. PROMISSORY NOTE :.:::;::¢:~';:::~:: ~ ~::~::~:.~:~s :~:::::: ~ ~. ::~: ~.. :. ~. '~ ::~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :.:-:.:.::*~:~:-~: ::.~*:*:::s~:~;::~":~::~:~::~:::s¢ ::::::::::::::::::::::::::::::::::: ~ .~ .... ~: :~ ~. Borrower: KEITH L ~S~ (S~: 1ll-5~) L~nder: O~sTO~ B~K JAMIE L PLASTERER (SSN:) 36K~tt y DR CARLISLE, PA 17013 King Street Executive Office P.O. Box 250 77 F~_~t King Streel Shlppansburg, PA 17257 Principal Amount: $575,000.00 Initial Rate: 9.500% Date of Note: December 22, 1999 PROMISE TO PAY. I promise to pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of the United Slstes of America, Ihe principal amount of Five Hundred Sevanly Five Thousand & 0O1100 Dollars ($S75,0O0.0O), together with Interest on the unpaid principal balance from December 22, 1999, until paid In full. The Interest rate will not Increase above 18.0O0%. PAYMENT. Subject to any payment changes resulting from changes In the Index, I will pay INs loan In 23 regular paymenls of $5,023.1t0 each and one Irregular last payment estimated at $567,612.88. My first paymenl Is due January 22, 2000, and all Subsequent payments are ~ue on the same day o! each month after Ihal. My final payment due December 22, 2001, will be for all principal and all accrued Interest not Yel paid. Payments Include principal and Interesl. Inleresl on Ibis Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the annual inlerest rate over the number of days In a year (366 dudng leap years), multiplied by the outstanding principal balance, multiplied by Ihe actual number of days the principal balance is outstanding. I will pay Lender al Lender's address shown above or at such olher p ace as Lender may designate In writing. Unless otherwise agreed or required by applicable law, paymenls will be applied tirst 10 accrued unpaid Interest, then lo principal, and any remaining amount to any unpaid collection costs and late charges. DEMAND FEATURE. THE LOAN IS NOT PAYABLE ON DEMAND. THE LOAN WILL BE EXTENDED, BY THE LENDER, FOR A THREE (3) CONSECUTIVE ONE YEAR TERMS, PROVIDED THAT NO PAYMENT IS MORE THAN 29 DAYS PAST DUE AT ANY TIME DURING THE IMMEDIATELY PRECEDING TERM. VARIABLE INTEREST RATE. The interest rate on this Note is subject Io change from time to time based on changes in an independent index which is the WALL STREET PRIME (the "Index"). The Index is nol necessarily the lowest rate charged by Lender on ils loans. If the Index becomes unavailable during the term of this loan, Lender may des gnaie a substitute index after notice to me Lender will fell me the currenl Index rat request. I undersland thai Lender may make loans based on other rnt~ ~ ~u~ll -rk- ,_, ....... ~ ........ e upon my ........... llllll IHII:I[~I~[ rate change Will no! OCcur more onen than eec~h day. The Index currently Is 8.500% per annum. The Interest rate Io be applied to the unpaid principal balance of this Note will be at a rate of 1.0OO percentage point over the Index, adjusted If necessary for Ihe maxlmum rate limitation deeerlbed below, resulting In an Initial rate of 9.500% per annum. Notwithstanding any other provision of this Note, the variable Interest rate or rates provided for In this Note wlll be subject ifc lhe following maxlmum rate. NOTICE: Under no circumstances will the Interest rate on this Note be more than the lesser of 18.000% per annum Jot the maximum rate allowed by applicable law. Unless waived by Lender, any Increase In the Interest rate will Increase the amounts of my payments. PREPAYMENT. I may pay without penalty all or a podion of the amount owed earlier than il is due. Early payments will not, unless agreed to by Lender in wdting, relieve me of my obligation to continue lo make payments under the paymenl schedule. Rather, they will reduce the principal balance due and may result in me making fewer payments. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. DEFAULT. I will be in default if any of the following happens: (a) I fail lo make any payment when due. (b) I break any promise I have made to Lender, or I fail Io comply with or 1o perform when due any other term, obligation, covenant, or condition conlained in this Note or any agreement related to Ihis Note, or in any other agreemenl Or loan I have with Lender. (c) Any representalion or statement made or furnished lo Lender by me or on my behalf is false or misleading in any matedal respect eilher now or at the time made or furnished. (d) I die or become insolvent, a receiver is appointed for any pad of my property, I make an assignment for the benefit of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor Ides Io take any of my properly on or in which Lender has a lien or secudly interest~ This includes a garnishmenl of any of my accounls with Lender. (f) Any of the events described in this delaull section occurs with respecl lo any guarantor of this Note. If any default, other than a default in payment, is curable and if I have not been given a notice of a breach of the same provision of this Note within the preceding Iwelve (12) months, it may be cured (and no evenl of defaull will have occurred) if I, after receiving wdften notice from Lender demanding cure of such default: (a) cure the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiate steps Which Lender deems in Lender's sole discretion to be sufficient to cure lhe default and thereafter conlinue and complele all reasonable and necessary!slaps sufficient lo produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on Ihis Note and all accrued unpaid interest mined ale y due, and then I wil pay that amount. Lender may hire or pay someone e se to he p co e~l this Note f I do not pay. I also w pay Lender that amount. This includes, subject lo any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not Ihere is a lawsuit, including aftorneys' fees and legal expenses for bankruptcy proceedings (including efforts 1o modify or vacate any aulomatic stay or injunction), appeals, and any anticipated post-judgment collection services. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. If judgment is enlered in connection with this Note, interest will continue to accrue on this Note alter Judgment al the interest rate applicable to lhis Note at the time judgment is entered. This Note has been delivered to Lender and accepled by Lender In the Commonwealth of Pennsylvania. If lhere Is a lawsuit, I agree upon Lender's request to submit lo the Judsdlcfl n of the courts of Cumberland County, the Commonweallh of Pennsylvania. This Note shall be overned b and c law f g y onstrued In accordance wll~ Ihe s o the Commonwealth of Pennsylvania. RIGHT OF SETOFF. I granl lo Lender a contractual secudly interest in, and hereby assign, convey, deliver, pledge, and transfer lo Lender all my righl, title and interest in and 1o, my accounts with Lender (whether checking, savings, or some other account), including without limitation all accounls held jointly with someone else and all accounls I may open in the future, excluding however all IRA and Keogh accounts, and all Irust accounts for which the grant of a security inleresl would be prohibited by law. I authorize Lender, to lhe extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts. COLLATERAL. This Nora is secured by, in addition to any other collateral, a Mortgage deled December 22, 1999, lo Lender on real properly located in CU,~.!~ERLAND County, Commonwealth of Pennsylvania, all Ihe terms end conditions of which are hereby incorporaled and made a pad of this Nole. EXHIBIT "A" 12-~2-1999 PROMISSORY NOTE Page 2 , Lo~n NO (Continued) GL~ERAL PI~O~/ISIONS. This Nole has a demand [eature. The nc USlOn of specific defaull provisions or rights of Lender shall nol pre(dud~ I~ender'~ dght to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand fl3' payment, prolest and notice of dishonor. Upon any change in the terms of this Note, and unless olherwbe exp _re~__-Jy 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 lhat Lender may renew or extend (repeatedly and for any langlh of time) this loan, or release any party or guarantor or collateral; or Impair, fa~ to r,~R~ upon or pedect Lender's security Interest in the collateral. All such parties also agree that Lender may modify Ihis lean without lha consent of or notice to anyone other than the party with whom the modification is made. The obligations under Ihis Nole am Jeint and several. This means that the words '1", 'me", and "my" mean each and ail of the persons signing below. PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCt. UDING THE VARIABLE INTEREST RATE PROVISIONS AND THE NOTICE TO COSIGNER SET FORTH BEI.OW. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: X Ct:: O:: ! ~::~::::~'>:~'"'"~':~':':~':'"'~':~':~'~:~':~:'~:~':': :~' ° ~' ' :::::::::::::::::::::::::::::: KEiTR-L-i~LASTERER~ ............... PLASTERER NOTICE TO COSIGNER You are being asked !o guarantee this debL Think carefully before you do. If the borrower doesn't pay the debt, you wlti have to. Be sure you can afford to pay If you have to, and that you want to accept this responsibility. You may have Io pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection cosls, which Increase this amount. The lender can collecl this debt from you without I]rsi Ir/lng to collect from the borrower. The lender can use Ihs same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever In default, that fact may become a part of YOUR oredlt record. This notice Is not the contract that makes you liable for the debt. Variable Rate. Bailoort. LASER PRO, Reg. U,S. Pat. & T.M. Off., Vet. 3.28b (c) 1999 CFI ProServices, Inc. All rights reserVed. ~PA-D20 E3.28 F3.28a P3,28a 06923CL.!. NJ '~ REC~ORDATION REQUESTED BY= P.O. BOX 2~0 77 East King St~t Shlp~n~urg, PA 1~57 WHEN RECORDED ~IL TO: ORR~OWN B~K P.O. ~x 2~ ~ ~ King Strut Shl~urg, PA 1~ SPACE ABOVE THIS UNE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED DECEMBER 22, 1999, between KEITH L PLASTERER and JAMIE L PLASTERER, whose address is 36 KELLY DR, CARLISLE, PA 17013 (referred to below as "Grantor"); and ORRSTOWN BANK, whose address is P.O. Box 250, 77 East King Street, Shippensburg, PA 17257 (referred to below aa "Lender"). GRANT OF MORTGAGE. For valuable conslderallon, Grantor grants, bargains, sells, conveys, ,~_~gns, transfers, releases, confirms and morlgagas lo Lender all of Grentor's right, title, and Interest in and to the following described real property, together with all existing or subsequently erected or affixed bulldfngs, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, heredltaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reveml0ns and remainders with respect thereto; al! .w. ste.r, water rights, watemourses and ditch rights (including stock in utilities with ditch or Irrigation rights) and all other rights, royalties, and profits re~ating to the real property, including without limitation all minerals, oil, gas, geothermal and slmi ar matters, located in CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE All'ACHED The Real Property or its address is commonly known as 36 KELLY DR, CARLISLE, PA 17013. Grantor presently assigns lo Lender all of Grantor's right, title, and interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Pemonal Property and Rents. DEFINITIONS. The following words shall have the following meanings when used in this Modgsge. Terms not othen~vise defined in this Modgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Existing Indebtedness. The words ~Existing Indebtedness" mean the indebtedness described below in the Existing Indebtedness section of this Mortgage. Grantor. The word "Grantor" means KEITH L PLASTERER and JAMIE L PLASTERER. The Grantor is the mortgagor under this Modgage. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without Ilmltetion all existing and futura improvements, buildings, structures, mobile homes affixed on the Real Properly, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender lo discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means ORRSTOWN BANK, Its successors and assigns. The Lender is the mortgagee under this Mortgage. · ,..e .... '~'~ ,,,.,-,~ '~,-f~=~a, m~ne thi~ M~rtcseoe between Grantor and Lender, and includes without limitation all assignments and security 12-22-1999 MORTGAGE .. Page 2 L.oan No. (Continued) Lender in writing, (I) 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 waste or substance on, under, about or from the Properly and (ii) any such activity shall be conducted in compliance with all applicable fade~l, state, and local laws, regulations and ordinances, including without limitation those laws, regulations, and ordinances described above. 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 Modgege. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other pemon. The raprasantations and warranties contained herein ara based on Grantors due diligence in investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution tn the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnity and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may diracfly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the properties. The provisions of this sectio~ of the Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness end the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Properly or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without the prior written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Its agents and representatives may enter upon the Reel Property at all reasonable times to attend to Lender's Interests and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. 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 pdor to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property ara not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts, in addition to those acts set fodh above in this section, which from the character and use of the Properly are reasonably necessary to protect and preserve the Properly. DUE ON SALE - CONSENT BY LENDER. Lender may, at its option, declare Immediately due and payable ell sums secured by this Modgege upon the sale or transfer, without the Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, lille or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, dead, installment sale contract, land contract, confract for deed, leasehold interest with a term greater than three (3) yearn, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Prapedy, or by any other method of conveyance of Real Property Interest. If any Grantor is a corporation, pertnemhip or limited liability company, transfer also includes any change In ownership of more than Iwenty-flve percent (25%) of the voting stock, partnership Interests or limited liabilify company interests, as the case may be, of Grantor. However, this option shall nol be exercised by Lender if such exercise ts prohibited by federal law or by PennSylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a pad of this Mortgage. Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Properly. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Mortgage, except for the lien of taxes and assessments not due, except for the Existing Indebtedness referred to below, and except as otherwise provided in the following 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 Lender's nterest in the Propedy is not jeopardized. If a lien arises or is tiled as a result of nonpayment, Grantor shall within tiftean (15) days after lha lien arises or, if a lien is tiled, within fifteen (15) days after Grantor has notice of the tiling, secure the discharge of/he lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surely bond or other security satisfactory to Lender In an amount sufficient to discharge the lien plus any costs and attorneys' fees or other charges that could aCcrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall setisty any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obliges under any surely bond furnished in the contest proceedings. ...... : ....... .;,.4~ ,.~f ~e,~/m~nt ,~f th~ fia~.S or assessments and shall 12-22-1999 MORTGAGE Lpan Ncl (Continu. ed) Page 3 Any such action by Lender shell not be construed as curing the default so as to bar Lender from any remedy that It otherwise would have had. Grantor's obligation lo Lender for ail such expenses shell survive the entry of any modgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating lo ownership of Ihe Properly are a part of this Mortgage. Title. Granlor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other then those set fodh in the Real Properly description or in the Existing Indebtedness section below or in any title insurance policy, title repod, or final title opinion issued in favor of, and accepted by, Lender in connection with this Modgege, end (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 wan'ants and will forever defend the title to the Property against the lawful claims of ail persons. In the event any action or proceeding is commenced that questions Grantor's title or the Interest of Lender under this Modgage, Grantor shall defend the action at Grentor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate In the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from lime to time to permit such participation. Compltance With Laws. Grantor warrants that the Properly and Grantor's use of the Property complies wilh all existing applicable laws, ordinances, and regulations of governmental authorities. EXISTING INDEBTEDNESS. The following provisions concerning existing Indebtedness (the "Existing Indebfadnass") are a pad of this Modgsge. Existing Ltan. The lien of this Modgage securing the Indebtedness may be secondary and inferior to an existing lien. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default under the Instruments evidencing such indebtedness, or any default under any security documents for such indebtadnass. Default. If the payment of any insfallmenl of principal or any interest on the Existing Indebtedness is not made within the time required by the note evidencing such indebtedness, or should a detaufi occur under the instrument securing such indebtedness and not be cured during any applicable grace period therein, then, at the option of Lender, the Indebtedness secured by this Mortgage shall become immediately due and payable, and this Mortgage shall be in default. No Modification. Grantor shall not enter into any agreement with Ihe holder of any mortgage or other security agreement which has priority over lhis Modgage by which that agreement is modified, emended, extended, or renewed without the prior wdtfan consent of Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior wriften consent of Lender. CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceediegs or by any proceeding or purchase in lieu of condemnation, Lender may al its election require that all or any portion of the net proceeds of the award be applied to the Indeblednass or the repair or restoration of the Properly. The net proceeds of lhe award shall mean lhe award after payment of all actual costs, expenses, and attorneys' fees Incurred by Lender in connection with the condemnation. Proceedlnge. If any proceeding in condemnation is filed, Grantor shell promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented In the proceeding by counsel of its own choice, and Grantor will deliver or Oause to be delivered to Lender such instruments as may be requested by it from time to lime to permit such participation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Modgege and take whatever other action is requested by Lender to perfect and continue Lender's lien on lhe Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shell constitute taxes to which this section applies: (a) a specific tm( upon this type of Mortgage or upon all or any pad of the Indebtedness secured by this Mortgage; (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Modgege; (c) a lax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) 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 Modgage, this event shall have the same effect as an Event of Default (as defined below), and Lender may axemlse any or all of its available remedies for an Event of Default as provided below unless Grantor either (a) pays the lax before it becomes delinquent, or (b) 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 securily agreement are a part of this Mortgage. Security Agreement. This instrument shell constitute a security agreement to the extent any of the Property constitutes fixtures or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Securtty Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition lo recording this Mortgage in the real propedy records, Lender may, at any time and without further authorization from Grantor, file execufad 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 assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party), from which Information concerning the security Interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code), are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-In-fact are a part of this Mortgage. Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute end deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, rallied, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, Instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or deslreblo in order to effectuate,, complete, perfect, continue, or preserve (a) the obligations of Grantor under the Note, this Mortgage, and the Related Documents, and (b) the liens and security Interests created by this Mortgage on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses Incurred in connection with the matters referred to in this paragraph. 12-22_-1999 MORTGAGE .,, Page 4 L. oan Nq (Continu, ed) documents to c~ua;~ a valid and perfected security Interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantods property, any assignmentlaws by or against for theGrantor.benefit of oreditom, any lype of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided that Grantor gives Lender wfitten notice of such claim and furnishes reserves or a surety bond for the claim seflstactory lo Lender. Breech of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor end Lender that is not remedied within any grace pedod provided therein, including without limitation any agreement concerning any Indebtedness or other obligation of Grantor to Lender, whether existing now or later. Existing Indebtedness. A default shall occur under any Existing Indebtadness or under any Instrument on the Property securing any Existing Indebtedness, or commencement of any suit or other action fo foreclose any existing lien on the Properly. Events Affecting Guaranlor. Any of the preceding events occum with respect to any Guaranlor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or Ilab ty under, any Guaranty of the Indebtedness. Lender at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations aris ng under the guaranty In a manner satisfactory to Lender, and, in doing so, cure the Event of Default. Right to Cure. If such a failure is curable and If Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding lweiva (12) months, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure: (a) cures the failure within fifteen (15) days; or (b) If the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the failure 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 any Event of Default and at any time thereafter, Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other dghts or remedies provided by law: Accelerate Indebtedneos. Subject to applicable law, Lender shall have the right at ils option without notice to Grantor to declare the entire Indebtedness immediately due and payable. UCC Remodles. With respect to all or any part of the Personal Property, Lender shall have all the dghts and remedies of a secured party under the Uniform Commercial Code. Collect Renls. Lender shall have the dghl, withoul 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 righti Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-tact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its dghis under this subparagraph either in person, by agent, or through a receiver. Appelnt Receiver. Lender shall have the dght tc heva a receiver appointed to take possession of all or any part of the Property, with the Power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the IndebtedneSs by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a Judicial decree foreclosing Grantor's interest in all or any pad of the Property. Nonjudicial Sate. If permlffed by applicable law, Lender may foreclose Granfor's interest in all or in any part of the Personal Property or the Real Properly by nonjudicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after applicatiOn of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tanant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shell have all other dghis and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all fight to have the properb/marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any pad 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 Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Properly or of Ihs time after which any pdvata sale or other intended disposition of the Personal Property is to 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. Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's dghts otherwise to demand strict compliance with that provision or any other provision. Election by Lender Io pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Modgege after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise Its remedies under this Mortgage. Altorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and on any appeal. Whether or not any court action is Invol'~d, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for Ihs protection of its interest or the enforcerhent of its dghis shall become a part of the Iodebtadnass payable on demand and shall bear interest from the date of expenditure until repaid at the rate provided for in the Note. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, Including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post-Judgrnenl collection services, the Cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appra~ai fees, and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by aoolicable I~v. ~nv nnfi~ ,,n~=r thle ~.,1~.4 ..... ~..~, r..: .......... 12-22-1999 MORTGAGE Page 5 Loan No (Continued) . ~, every Grantor. This means that each of the persons signing below is responsible for all obligations in this Modgage. Severablllly. If a coud of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable es to any person or circumstance, such finding shall not render that provision Invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceabllily or validlly; however, If the offending provision cannot be so modilled, it shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Aealgn$. Subject to the limitations stated In this Mortgage on transfer of Grantor's Interest, this Mortgage shell be binding upon and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or Ilebllily under Ihe Indebtedness. Time Is of the Essence. Time is of the essence in the performance of Ihis Modgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate es a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shell not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing belwean Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations es to any future lransections. Whenever consent by Lender is required in this Mortgage, the granting of such consent by Lender In any instance shell not constitute continuing consent to subsequent instances where such consent Is required. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. GRANTOR: v :ii:~iii~ ~*~:i:::::~::::~::::~:::::::~!~ ~}iii~:~:*'***:,'~ ~',.**~/,{**: ~[EITH L PLASTERER Signed, ecl~v,~lL~l/~er~l~ andAtallvereeJ, in tbe~reresence of: x ^ Witness Signed, acknowledged and delivered In the presence of: X Wltneea X Witness CERTIFICATE OF RESIDENCE I hereby cedlfy, that the precise address of the mortgagee, ORRSTOWN BANK, herein is as follows: P.O. BOX 250, 77 East King Street, Shlppensburg, PA 17257 y~/~Att(~rney or A.nt f ~.or..Sg'a~gee INDIVIDUAL ACKNOWLEDGMENT STATE OF 0g.,'~ ~'~'/'~, ~¢ ,.~Y..\ ) ¥ )ss cou. undersigned Notary Public, personally appeared KEITH L PLASTERER and JAMIE L PLASTERER, known to me (or s~tisfactodly proven) lo be the person whose names ere subscribed to the within instrument, and acknowledged that they executed tl~e)sa.rqe for the purposes therein contained. · ,,,,,,,, ,A'? ,, ~ '~.~,,..~,.~../ ' , ( . .~r_ -.) · . end ,or ,ha ,,fe of ,,, ,0, BlffiqG l.o~ No. D a~ shown ~m · cemin plan of lu~ ~mi~lcd l~mal SuMJ~ieJ Plml fo~ Wa)de Kelly, SecUre 1, dared April 17, 1985 &nd m:oJded h the Office ~ of Deeds in and ~ Cumberland Count~, ~eansylyania, in Plan Book 50, Pap BI:T~_ CI TI-IG SAME PI~Mlb'~ which ~CHAI~ A. JAMG~ON by his AIIc~n~-in-fa~ I=OUIS ~. AD! -~R, GSC)UZRIE ~ IVIARGARL~ A. JAI~.~ON, h~nd and wife, by'Dual daMd Novemlx:r 22, 1~1, and ~ Nav~mb~ 26, IS~)l, in fl~ ~ of d~ P,s~,~ of _l>~__s in and for Cum~bnd County, Pennsyivanb in DNd G0~ ~t-~, ~ 3~7. et l~l.. psmed and co~ve,/ed un~o ~ I=. PLASTGR~ and {AMXE ~ 1'I~3'I'1~, husband nd ~f~. BANK February 22, 2002 W. WAYDE KELLY KEITH L. PLASTERER JAMIE E. PLASTERER 101 KELLY DRIVE CARLISLE, PA. 17013 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOIVI FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pa.qes. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling A.qencv. The name, address and phone number of Consumer Credit Counseling A.qenctes serving your County are listed at the end of this Notice. If you have any questions, you rna¥ call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearinq can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. EXHIBIT "C" PO Box 250 · Shippensburg, PA 17257 · (717) 532-6114 · (717) 532-4143 Fax · www.orrstown.com LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVlENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICAClON OBTENGA UNA TRADUCClON INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINAL LENDER: 'KEITH L. & JAMIE E. PLASTERER W. WAYDE KELLY 36 KELLY DRIVE CARLISLE, Pa. 17013 26338409001 ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURF YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbem of desi,qnated consumer credit counselinq agencies for the county in which the property is located aro set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND-YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT, (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance,) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date)~ NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 36 KELLY DRIVE, CARLISLE, PA. 17013. IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due:DECEMBER 22ND--$575,857.44. Other charges (explain/itemize): LATE FEES--S144.85 TOTAL AMOUNT PAST DUE: $ 576,002.29 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ 576,002.29. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK A3-rN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortqacle debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mort.qacle prol3ertv, IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amou;nt you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALF - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the ri.qiht to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You mav do so by paying the total amount then past due, plus any late or other charqes then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgaqe. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATF - It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Orrstown Bank Address: Phone Number: Fax Number: Contact Person: P.O. Box 250, 77 East King Street Shippensburq, PA 17257 (7'17) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3r~ Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 CERTIFICATE OF SERVICE I hereby certify that on June 7, 2002, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Amended Complaint, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Shahan G. Teberian, Esquire Klehr, Harrison, Harvey, Branzburg & Ellers, LLP 260 South Broad Street Philadelphia, Pennsylvania 19102-5003 David A. Baric, Esquire Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attomeys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. : COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 PRELIMINARY OBJECTIONS OF THE DEFENDANTS TO THE AMENDED COMPLAINT OF ORRSTOWN BANK The Defendants, Keith and Jamie Plasterer, by and through their counsel, Klehr, Harrison, Harvey, Branzburg & Ellers LLP, hereby file these Preliminary Objections to the Amended Complaint (the "Amended Complaint") of Orrstown Bank (the "Bank"), and in support hereof, aver as follows: BACKGROUND 1. On or about April 17, 2002, the Bank filed its original Complaint, a tree and correct copy of which is attached hereto, incorporated herein, and marked as Exhibit "1." 2. The original Complaint purported to be an action in assumpsit and sought judgment based upon a promissory note. See Exhibit "1." 3. On May 21, 2002, the Bank delivered to the Defendant, Jamie Plasterer, a notice, pursuant to Pa. R.C.P. 237.1, of intention to take default judgment (the "237.1 Notice"). A tree PHIL1: 465780-1 and correct copy of the 237.1 Notice is attached hereto, incorporated herein, and marked as Exhibit "2." The 237.1 Notice states that this is an action in Mortgage foreclosure. See Exhibit 5. On May 31, 2002, the Defendants filed preliminary objections to the original Complaint. The preliminary objections consisted of five separate counts. See Exhibit "3" attached hereto and incorporated herein by this reference. 6. On June 7, 2002, the Bank filed its Amended Complaint (a true and correct copy of which is attached hereto as Exhibit "4"), and attempted to address some of the Defendants' preliminary objections to the original Complaint. 7. The Amended Complaint fails, however, to address the substance of Counts II through IV of the original preliminary objections. 8. Indeed, the Amended Complaint raises additional questions. COUNT I1 DEMURRER 9. The Defendants incorporate herein by this reference the allegations set forth in paragraphs 1-8 above, as though they are set forth fully and at length. 10. Pennsylvania Rule of Civil Procedure I028(a)(4) preliminarily object to a Complaint for legal insufficiency. states that a party may 1 I. A review of the original 237.1 Notice reveals that the Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 12. Additionally, a notice of default is required by the relevant loan documents. The notice relied upon by the Bank is a notice which states that it is being sent to prevent a foreclosure action. See Exhibit "B" to the Amended Complaint. This notice does not state that it PHILI: 465780-I is a notice of default or opportunity to cure before an action is commenced on the promissory note. 13. Indeed, the whole context of the notice of default relied upon by the Bank is that of a foreclosure action. 14. The Amended Complaint fails to set forth a claim in mortgage foreclosure. 15. Similarly, the relief requested in the Amended Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 16. Nor has the Bank made any allegations necessary to set forth the elements of an action in mortgage foreclosure. 17. To the extent that the Bank intended this action to be in personam in nature, and brought under the promissory note, the attached notice of default is insufficient to comply with the notice provisions of the loan documents because it relates only to the foreclosure of the Mortgage. 18. The Amended Complaint is therefore legally insufficient. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Amended Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(4), for legal insufficiency. COUNT II FAILURE TO CONFORM TO LAW OR RULE OF COURT 19. The Defendants incorporate herein by this reference the allegations set forth in paragraphs 1-18 above, as though they are set forth fully and at length. 20. Pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. a party may PHILI: 465780-1 21. A review of the exhibits hereto reveals that the Amended Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 22. The Amended Complaint fails to comply with the requirements of Pa. R.C.P. 1147, governing actions in mortgage foreclosure. 23. Similarly, the relief requested in the Amended Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 24. The Amended Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Amended Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or role of court. COUNT III FAILURE TO CONFORM TO LAW OR RULE OF COURT 25. The Defendants incorporate herein by this reference the allegations set forth in paragraphs 1-24 above, as though they are set forth fully and at length. 26. Pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. 27. Pennsylvania Rule of Civil Procedure 1019(i) states that: a party may When any claim...is based upon a writing, the pleader shall attach a copy of the writing, or material part thereof. Pa. R.C.P. 1019(i). 28. The original Complaint failed to attach a copy of the Mortgage, which underlies the Bank's action. PHIL1: 465780-1 29. The Bank subsequently attached the Mortgage to the Amended Complaint, but failed to attach copies of "Related Documents" (as that term is used in the Mortgage) or to aver that no such "Related Documents" exist. 30. Thus, the exhibits attached to the Amended Complaint are incomplete without copies of any "R ,, elated Documents. 31. The Amended Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Amended Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or rule of court. Dated~ lOI KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shahan G. Teberian, Esquire Attorneys For Defendants PHILI:465780-1 Exhibit A ORRSTOWN BANK, Plaintiff, V. KEITH L. PLASTERER and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBER_LAND COUNTY, PENNSY'LVANIA :oo:- 1 7 NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County. Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 I RUE COPY FROM RECOR tn Tes~imony wnereol, I here unto set my ~ ' ORRSTOWN BANK, : Plaintiff, : : V. : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- CIVIL ACTION-LAW COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff is Orrstown Bank, a Pennsylvania corporation, with a place of business located at King Street Executive Office, P.O. Box 250, 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendants are Keith L. Plasterer and Jamie L. Plasterer, husband and wife, adult individuals residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. On or about December 22, 1999, Orrstown loaned the sum of $575,000.00 to Keith L. Plasterer and Jamie L. Plasterer. In consideration of said loan, Keith L. Plasterer and Jamie L. Plasterer executed and delivered their Promissory Note ("Note"), a true and correct copy of which is attached hereto as Exhibit "A" and is incorporated. 4. The final payment under the Note was to be made by Defendants by December 22, 2001. 5. Defendants failed to make the payments due under and pursuant to the Note. Note. 6. As of March 26, 2002, the sum of $578,902.54 was due and payable under the 7. Notice of default was given to the Defendants by letter dated February 22, 2002. A tree and correct copy of the notice provided is attached hereto as Exhibit "B". 8. Despite demand therefore, Defendants have failed and refused to pay the amount due and owing. 9. The Note provides for the recovery of late charges, costs and expenses, and attorney fees in the event Orrstown pursues collection of the debt. WHEREFORE, Plaintiff requests judgment be entered in its favor and against the Defendants, jointly and severally, for the sum of $578,902.54 plus interest, late charges, costs and expenses and attorney fees. Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/plasterer/plasterer.com The statements in the foregoing Complaint are based upon information which has been as~=,,,bled by my aitomey in this litigation. The language of the s~atements is not my own. I have read the statements; and to the exlent that they are based upon information which I have given to my coumd, tl~y a~ true and correct to the best of my knowledge, information and belief. I understand tl~ false statements herein are made subject to the penalties of I $ Pa.C.S. § 4904 rel~in$ ~o unsworn falsifications to authorities. DATE: / Betsy Smith, Collector Orrs~own Bank PH(JMI :5(JRY NOTE References in the shaded area are for Lender s use o ~/ ' ' e app'cab' 'ty ' Y Borrower: KEITH L PLASTERER (SSN: 181-52-.3990) Lender: ORRSTOWN BANK JAMIE L PLASTERER (SSN:) King Street Executive Office 36 l('m i y DR P.O. Box 250 CARLISLE, PA 17013 77 East King Street Shlppensl)urg, PA 17257 Principal Amount: $575,000.00 Initial Rate: 9.500% Date of Note: December 22, 1999 PROMISE TO PAY. I promise !o pay lo ORRSTOWN BANK ("Lender"), or order, In lawful money of the United States of America, Ihe pflnclpal amount of Five Hundred Seventy Five Thousand & 00/100 Dollars ($$75,000.00), together with Interest on the unpaid principal balance from December 22, 1999, until paid In full. The Inlerest rate will not Increase above 18.000%. PAYMENT. Subject 1o any payment changes resulting from changes In the Index, I wlll pay this loan In 23 regular payments of $5,023.60 each and one Irregular lesl paymenl estimated st $$67,612.88. My first payment Is due January 22, 2000, and all subsequent payments ere due on the same day of each month after thai. My final payment due December 22, 20~1, will be for all principal and all a~crued Interest not yet paid. Payments Include principal and Interest. Interest on this Note is computed on a 3651365 simple interest basis; that is, by applying the ratio of the annual interest rate over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. DEMAND FEATURE. THE LOAN iS NOT PAYABLE ON DEMAND. THE LOAN WILL BE EXTENDED, BY THE LENDER, FOR A THREE (3) CONSECUTIVE ONE YEAR TERMS, PROVIDED THAT NO PAYMENT IS MORE THAN 29 DAYS PAST DUE AT ANY TIME DURING THE IMMEDIATELY PRECEDING TERM. VARIABLE INTEREST RATE. The interest mia on this Note is subject to change from time to time based on changes in an independenl index which is the WALL STREET PRIME (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its leans. If the Index becomes unavailable during the term of this loan, Lender may designate e substitute index after notice 1o me. Lender will tell me the current Index rate upon my request. I understand that Lender may make loans based on other ratas as well. The interest rate change wtil not occur more often than each day. The Index currently Is 8.500% per annum. The Interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 percentage point over the Index, edjusled If nece_"~-/for the maximum rate limitation deecdbed below, resulting In an Initial rale of 9.500% per annum. Notwithetandteg any other provision of this Note, the vartable Interest rate or rates provided for In Ihta Note will be subject to the following maximum rate. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 18.000% per annum or the maximum rote allowed by applicable law. Unless waived by Lender, any Increase in the Interest rate will Increase the amounts of my payments. PREPAYMENT. I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal balance due and may result in me making fewer payments. LATE CHARGE. If a payment is 16 days or more late, I will be charged $.000% of lhe regularly scheduled payment. DEFAULT. I will be in default if any of the following happens: (a) I fail to make any payment when due. (b) I break any promise I have made to Lender, or I fail to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement mlafed Io this Note, or in any other agreement or loan I have with Lender. (c) Any representation or statement made or furnished to Lender by me or on my behalf la false or misleading in any material respect either now er at the time made or furnished. (dj I die or become insolvent, a receiver is appointed for any part of my property, I make an assignment for the benefit of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor tries to take any of my properly on or in which Lender has a lien or security interest. This includes a garnishment of any of my accounts with Lender. (f) Any of the events described in this default section occurs with respect to any guarantor of this Nots. If any default, other than a default in paymenl, is curable and if I have not bean given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if I, after receiving wriften notice from Lender demanding cure of such default: (a) cum the default within fifteen (15) days; or (b) if the cure requires moms than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufftcient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on Ibis Note and all accrued unpaid interest immediately due, and then I w I pay that amount. Lender may h re or pay someone else to help collect this Note if I do not pay. I also will pay Lender Ihat amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and'Lender's legal expenses whether or not theirs is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any aulomatic slay or injunction), appeals, and any anticipated post-judgmenl collection services. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender In the Commonwealth of Pennsylvania. If there Is a lawsuit, I agree upon Lender's request to submit 1o the Jurisdiction of the courts of Cumberland County, the Commonwealth of Pennaylvanta. This Note shall be governed by and construed In accordance wllh the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. I grant lo Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and b'ansfer to Lender all my right, title and interest in and to, my accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly with someone else and all accounts I may open in lhe future, excluding however all IRA and Keogh accounts, and all trust accounts for which !he grant of a security inferest would be prohibited by law. I authorize Lender, t,3 the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such accounts. COLLATERAL. This Note is secured by, in addition to any olher collateral, a Modgage dated December 22, 1999, to Lender on real property located in CUM3ERLAND County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of this Note. EXHIBIT "A" Loan No (Continued) ~ENER~L PROVISIONS. This Note has a demand feature. The incluslon of specific default provisions cr dghts of Lender shall not preclude' Lender's' dght to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of its dghts or remedies under this Nole without losing them. I and any other person who signs, guaranfees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest end notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no pady who signs th~s Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from lability. Ail 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, tail to realize upon ~ pedect Lender's secudty interest in the collateral. AJI such parties also agree that Lender may modif~ this loan without the consent of or notice to anyone othe~ than the parly with whom the modification is made. The obligations under lhis Note are joint and several. This means that the words '1', "me', and 'my" mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INO..UDING THE VARIABLE INTEREST RATE PROVISIONS AND THE NOTICE TO COSIGNER SET FORTH BE1.0W. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: ~E~m L~LASi~.~ER~ -- ,,,~MIE L PLASTERER NOTICE TO COSIGNER You are being asked to guarantee this debt. Think carefully before you do. If the borrower doeso't pay the debt, you will have to. Be sure you can afford Io pay If you have Io, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt If the borrower does not pay. You may also have to pay late fees or collection costs, which Incre~__~.e this amount. The lender can collect this debt from you without first trying to collect from the borrower. The lender can uso the same ¢ollecllon methods againsl you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt Is ever In default, that fact may become a part of YOUR crodlt record. This notice Is not the contract that makes you liable for the debt. Variable Rate. Balloon. LASER PRO, Reg. U.S. Pat. & T.M. Off., Var. 3.28b (c) t 999 CFI ProServlces, Inc. All rights reserved. [PA-D20 E 3.28 F3.2aa P3.28a 06923CL.L NI O TOWN BANK February 22, 2002 W. WAYDE KELLY KEiTH L. PLASTERER JAMIE E. PLASTERER 101 KELLY DRIVE CARLISLE, PA. 17013 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOM FROM FORECLOSURE This is an official notice that the mort.qa;le on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in th~ attached pa.qes. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP} may be able to help to save your home. This Notice explains how the proRram works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you whe,, you meet with the Counselino Aoency. The name, address and phone number of Consumer Credit Counselinq Aqencies servin.q your County are listed at the end of this Notice. If you have any questions, you may. call the Pennsylvania Housing Finance A,qency toll free at 1-800-342-2397. (Persons witl~ impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. P, XH'rBTT PO Box 250 · Shippensburg, PA 17257 · (717) 532-6114 · (717) 532-4143 Fax · www.orrstown.com LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCClON INMEDITAMENTE LLAMANDO ESTA AGENClA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENClONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINAL LENDER: KEITH L. & JAMIE E. PLASTERER W. WAYDE KELLY 36 KELLY DRIVE CARLISLE, PA. 17013 26338409001 ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHI!N THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUS~ BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE.. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of desiqnated consumer credit counselin.q aqencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advis~ your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days' of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 36 KELLY DRIVE, CARLISLE, PA. 17013. IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE pAYMENTS for the following months and the following amounts are now past due:DECEMBER 22NO--$575,85TM Other charges (explain/itemize): LATE FEES--S144.85 TOTAL AMOUNT PAST DUE: $ 576,002.29 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $_$76,002.29. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK A'I-rN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its riRhtS to accelerate the mortc~aae debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mort,claRe property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the ri.qh.t. to cure the default and prevent'the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonabl~ attorney's fees and costs connected with the foreclosure sale and any other costs connected with th~ Sheriff's Sale as specified in writin.q by the lender and by performinq any other requirements under the mortqaqe. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Address: Phone Number: Fax Number: Contact Person: Orrstown Bank P.O. Box 250, 77 East King Street Shiooensbur.q, PA 17257 (717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3'~ Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 · MRY-28-02 TUE ll:B5 KLP ENTERPRISES FAX HO, 7177956141 P, 02 ORRSTOWN BANK. : PlaiDliff. : KI.'.ITI I l,. PLAS'I'ERJZI~. and : ,IAMIE L. PLASTERER~his wifi:, : D¢l'endants. : IN TIlE COURT OF C'OM.,Xlt :h. ~ ~ I x,', ~ )1 CUMBERLAND ('(')I~N I '. ;'1 n, n.','~ I ,,'.\NI . NO. 2002-1877 CIVIl. I t,l,' ,. MORTGAGE F(')I), I'~( '1 TO: Jm-nic L. Plasterer 36 Kelly Drive Carlisle. Pennsylvania 171)13 I.)atc of Notice: May 21,2002 IMPORTANT NOTICE YOLI ARE IN DEFAUI,T BECAUSE YOU HAVE FAli,FD '1~ I I \. I i< ~ \~, RI { I: x APPI.;,AR.ANCE PERSONAI,I.Y OR BY ATTORNEY AND I';11 .E IN WRI I D.,t ~ '~¥ I I I I I'[ II COURT YOUR DEFENSES OR OBJEC'I1ONS TO THE. CL,^iMS SI' I' f.I )Rtl ,x(, \IN', ' Y()[J. UNLESS YOII A('T WlTItlN TEN DAYS FROM Till.; DATli t)t. ,~l 1'~ 'q, ~ I{ '1 . .IU DGMENT MAY BE I.'.N'rlJ, RILD AGAINST YOU Wl'l'ltOt FI' A Hr-: x R IN,, X X ii 'f( U MAYLOSEYOURPROI'ERTYORO~IM'PORTANTI'LJGHT" 'Frs' ,;ll{q I1) I TI IlS NOTICE TO A I,AWYER Kr ONCE. IF YOU IX) NOT HAW \. , u, vi, R t }R CANNOT AFFORD ONE. OO TO OR TEI,EPHONE Tl-II*. FOLI,O'~ I~.~, ~ ,I ~ I¢ I '~, ~ I. I~, I OUT WHERE YOU CAN GET LEGAI. ]II~.LP. Cumberland County Bar As.mciation 2 I.iberty Awnue Carlisle, Pennsylvania 171113 Telephone: 1717) 249-3166 17 West N,u. llJ' ~.U','. ' (7~ 7~ 249.68 q5 Exhibit B · NAY-28-02 TUE 11~35 EL? ENTERPRISES F~X NO, 7177956N1 P, 02 ORRSTOWN BANK. Plait~tiff, KEITI I I,. PLAS'['E.R. EI~. ,'Rid : ,IAMIE L. PLASTERER, his wili:, : Dt~lbndants. IN THE COURT C)F (.'OMMi ~1,. ~ [ I \,', ( )1 CUMBERLAND ('(')I~N I '. ~'1 ', ~.','~ I '.'-\NI . NO, 2OO2-1877 CIVil. I I,l~ k MORTGAGE FORI-.('I I )',. I<l TO: J~wnic L. Plasterer 36 Kelly Drive Carlisle. Penn.sylvania 170l 3 I.)a{¢ ol'Notice: May 21, 2002 IMPORTANT NOTICE YOLI ARE IN DEFAtJI,T BECAUSE YOU HAVE FAll,ED '1~ APPEAR.ANCE PERSONAI,I.Y OR BY A~O~Y ANI) Fll.l~ IN COURT YOUR DEFENSES OR OBJEC'HONS TO T~ CLAIMS Y()U. UNLESS YOU A{'T wi'ri-fiN ~ DAYS FROM TIlE DATE ,IU DGMENT MAY BE EN'I'E~ AGA~ST YOU WlTltOt ~'i' A H E MAY LOSE YOUR PROPERTY OR O~R I~ORTANT ~GHTx ~ tis NO'lICE TO A I,A~ER AT ONCE. ~ YOU ~ NOT HAV[ CANNOT AFFORD ONE, OO TO OR ~LEPHONE '1'I-~ FOl,I,Og lng OUT WHERE YOU C'~ GET LEGAl, IIELP. Cmnherland (.'oun~, Bar As.~ocia?ion 2 Liberty Avenue Carlisle. Pennsylvania 17{113 Telephone: {717) 249-3166 O'[14glh.'N. BARI(' ,\ N r. David A, P, arie, ~s~u)r~- 17 West .~,,utl. Carlisle. P\ (717} 249.68 q~ Klehr, Hamson, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 ORDER AND NOW, to wit, this day of ,2002, upon consideration of the Preliminary Objections of the Defendants, Keith L. Plasterer and Jamie L. Plasterer, and any response thereto, it is hereby ORDERED that the Preliminary Objections are SUSTAINED, and it is further ORDERED, that the Complaint is dismissed. BY THE COURT: PHILI:459509ol Klehr, Hamson, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attomeys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COLrNTY, PA CIVIL ACTION-LAW No. 2002-1877 PRELIMINARY OBJECTIONS OF THE DEFENDANTS TO THE COMPLAINT OF ORRSTOWN BANK The Defendants, Keith and Jamie Plasterer, by and through their counsel, Klehr, Harrison, Harvey, Branzburg & Ellers LLP, hereby file these Preliminary Objections to the Complaint (the "Complaint") of Orrstown Bank (the "Bank"), and in support hereof, aver as follows: BACKGROUND 1. On or about April 17, 2002, the Bank filed its Complaint, a tree and correct copy of which is attached herelo, incorporated herein, and marked as Exhibit "1." 2. The Complaint purports to be an action in assumpsit and seeks judgment based upon a promissory note. See Exhibit "1." 3. On May 21, 2002, the Bank delivered to the Defendant, Jamie Plasterer, a notice, pursuant to Pa. R.C.P. 237.1, of intention to take default judgment (the "237. I Notice"). A tree and correct copy of the 237.1 Notice is attached hereto, incorporated herein, and marked as Exhibit "2." 2PHILI: 459509-1 4. The 237.1 Notice states that this is an action in Mortgage foreclosure. See Exhibit COUNT I DEMURRER paragraphs 1-4 above, as though they are set forth fully and at length. 6. Pennsylvania Rule of Civil Procedure 1028(a)(4) preliminarily object to a Complaint for legal insufficiency. 7. The Defendants incorporate herein by this reference the allegations set forth in states that a party may The Note attached as Exhibit "A" to the Complaint states that: The Loan [maturity date of December 22, 2001] will be extended, by the Lender, for a [sic.] three consecutive one year temis, provided that no payment is more than 29 days past due at any time during the immediately preceding term. See Exhibit "A" to the Complaint. 8. The Complaint alleges that "the final payment under the Note was to be made by Defendants by December 22, 2001." Complaint at ¶ 4. 9. The Complaint nowhere explains why the Bank did not extend the maturity date as the Note requires 10. Nor does the Complaint allege that any payment was more than twenty-nine (29) days late in the previous term. 11. Accordingly, the Complaint is legally insufficient because, based upon an examination of the Complaint and exhibits, the Bank is not currently entitled to the relief it is requesting. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(4), for legal insufficiency. 3PHILI: 459509-1 COUNT II DEMURRER The Defendants incorporate herein by this reference the allegations set forth in 12. paragraphs 1-11 above, as though they are set forth fully and at length. 13. Pennsylvania Rule of Civil Procedure 1028(a)(4) states that a party may preliminarily object to a Complaint for legal insufficiency. 14. A review of the 237.1 Notice reveals that the Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 15. The Complaint fails to set forth a claim in mortgage foreclosure. 16. Indeed, the Complaint nowhere even mentions the Mortgage in question, and does not attach a copy of the Mortgage. 17. Similarly, the relief requested in the Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 18. Nor has the Bank made any allegations necessary to set forth the elements of an action in mortgage foreclosure. 19. The Complaint is therefore legally insufficient. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(4), for legal COUNT III FAILURE TO CONFORM TO LAW OR RULE OF COURT insufficiency. 20. paragraphs 1-19 above, as though they are set forth fully and at length. 21. Pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. The Defendants incorporate herein by this reference the allegations set forth in a party may 4PHILI: 459509-1 22. A review of the 237.1 Notice reveals that the Complaint was intended to commence an action in mortgage foreclosure. See Exhibit "2." 23. The Complaint fails to comply with the requirements of Pa. R.C.P. 1147, governing actions in mortgage foreclosure. 24. Similarly, the relief requested in the Complaint is for an in personam judgment on the Note, which is improper in a mortgage foreclosure action. 25. The Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or rule of court. COUNT IV FAILURE TO CONFORM TO LAW OR RULE OF COURT 26. paragraphs 1-25 above, as though they are set forth fully and at length. 27. Pennsylvania Rule of Civil Procedure 1028(a)(2) states that preliminarily object to a Complaint for failure to conform to law or rule of court. 28. The Defendants incorporate herein by this reference the allegations set forth in Pennsylvania Rule of Civil Procedure 1019(i) states that: When any claim...is based upon a writing, the pleader shall attach a copy of the writing, or material part thereof. a party may Pa. R.C.P. 1019(i). 29. The Complaint fails to attach a copy of the Mortgage, which underlies the Bank's action. 30. Even if the Complaint was intended as an action on the Note, the Mortgage must still be attached to the Complaint because the Note states it is: 5PHILI: 459509-I secured by...a Mortgage... all the terms and conditions of which are hereby incorporated and made a part of this Note. See Exhibit "A" to the Complaint. 31. Thus, the Note attached to the Complaint is incomplete without a copy of the related Mortgage. 32. The Complaint should therefore be dismissed for failure to conform to law or rule of court. WHEREFORE, the Defendants respectfully request that their Preliminary Objections be sustained, and that the Complaint be dismissed, pursuant to Pa. R.C.P. 1028(a)(2), for failure to conform to law or rule of court. KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shahan G Teberia~a,'Esquire Attomeys For Defendants 6PHILI: 459509-1 Klehr, Hamson, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attomeys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 CERTIFICATE OF SERVICE I, Shahan G. Teberian, hereby certify that a tree and correct copy of Preliminary Objections of the Defendants to the Complaint of Orrstown Bank was mailed via first class mail, postage prepaid on May 30, 2002 to the following: David Baric, Esquire O'Brien, Baric & Scherer 17 West South Street Carlisle, PA 17013 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Attorneys For Defendants 8PHILI: 459509-1 Exhibit D ORRSTOWN BANK, : Plaintiff, : V. : : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002- 1877 CIVIL TERM CIVIL ACTION-LAW NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Amended Complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK, : Plaintiff, : V. : KEITH L. PLASTERER : and JAMIE L. PLASTERER,: husband and wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-1877 CIVIL TERM CIVIL ACTION-LAW AMENDED COMPLAINT NOW, comes Plaintiff, Orrstown Bank ("Orrstown"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Amended Complaint and, in support thereof, sets forth the following: 1. The Plaintiff is Orrstown Bank, a Pennsylvania corporation, with a place of business located at King Street Executive Office, P.O. Box 250, 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendants are Keith L. Plasterer and Jamie L. Plasterer, husband and wife, adult individuals residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. On or about December 22, 1999, Orrstown loaned the sum of $575,000.00 to Keith L. Plasterer and Jamie L. Plasterer. In consideration of said loan, Keith L. Plasterer and Jamie L. Plasterer executed and delivered their Promissory Note ("Note"), a true and correct copy of which is attached hereto as Exhibit "A" and is incorporated. 4. Contemporaneously therewith, Keith L. Plasterer and Jamie L. Plasterer executed and delivered a Mortgage, a true and correct copy of which is attached hereto as Exhibit "B". 22,2001. 6. The final payment under the Note was to be made by Defendants by December Defendants failed to make monthly payments under and pursuant to the Note and were more than twenty-nine (29) days past due on their monthly payment for at least the following monthly payments during the term December 22, 1999 through December 22, 2001: Note. Due Date: a) April 22, 2000 b) May 22, 2000 c) November 22, 2000 d) January 22, 2001 e) February 22, 2001 Payment Date: May 25, 2000 June 23, 2000 December 26, 2000 February 23, 2001 April 4, 2001 Defendants failed to make the payments due under and pursuant to the Note. As of March 26, 2002, the sum of $578,902.54 was due and payable under the 9. Notice of default was given to the Defendants by letter dated February 22, 2002. A true and correct copy of the notice provided is attached hereto as Exhibit "C". 10. Despite demand therefore, Defendants have failed and refused to pay the amount due and owing. 11. The Note provides for the recovery of late charges, costs and expenses, and attorney fees in the event Orrstown pursues collection of the debt. WHEREFORE, Plaintiff requests judgment be entered in its favor and against the Defendants, jointly and severally, for the sum of $578,902.54 plus interest, late charges, costs and expenses and attorney fees. Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank Prothon~tan/~ ,~ dab.dir/orrstownbankJplasterer/amended.com The slatemeats in the foregoing Amended Complaint are based upon information which has been aasembled by my attorney in this litigation. The language of the s~atements is not my own. i have read the statements; and to the extcnl that they are based upon information which i have ~iven to my coansel, they are true and correct to the bes~ of my knowledge, information and belief. I understand that false statemenm herein are made subject to the penalties of 18 ?a.C.$. § 4904 r~lating to unswom f~lsifications to authorities. DA'FI~: ~. 3 - o a.~ Bctsy Smith, Collector Orrstown Bank · : - ) Lenaer: ORRSTOWN BANK JAMIE L PI.ASTERER (SSN:) 36 KE].J.Y DR CARLISLE, PA 17013 King Street Executive Office P.O. Box 250 77 ;_~t King Sb'eet Shlppensburg, PA 17257 Principal Amount: $575,000.00 Initial Rate: 9.500% Date of Note: December 22, 1999 PROMISE TO PAY. I promise to pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of the United States of America, the pdnclpel amount of Five Hundred Seventy Five Thousand & 00/100 Dollars ($575,000.00), together with Interest on the unpaid principal balance I¥om December 22, 199% until paid In full. The Interest rate wtil not Increase above 18.000%. PAYMENT. Subject to a~y paymenl changes reeultlng f~om changes In the Index, I will pay INs loan In 23 regular payments of $S,023.~0 each and one Irregular last payment esllmated at $$67At2.M. My first payment I$ due January 22, 2000, and all subsequent paymenls a~e due on the same day of each month after that. My final payment due December 22, 2001, w I be for all principal and all accrued Interest not yet paid. Payments Include principal and Interesl. Interest on Ibis Nole Is computed on a 365/365 simple interest basis; that Is, by appyng Ute ratio of the ,n,~u.-.a^l .i~er~es_! ra~..e_°v_~_t_h.._e _n, u~m_ ,b~r of ._days .In. a _Year ( .3.66 _dudrtg !eep .yea .m)! m u!tIp, lled .b.y the o. utstanding pd<ipal balance, m ulliprmd b i designate In writing. Unless otherwise agreed or requlrad by app]ioable law, payments will be applied fl~t to accrued unpaid interest, Ihen to principal. and any remaining amount to any unpaid collection costs and late charges. DEMAND FEATURE. THE LOAN IS NOT PAYABLE ON DEMAND. THE IMMEDIATELY PRECEDING TERM. VARIABLE INTEREST RATE. The int~est rate on Ibis Note is subject to change from lime to lime based on changes in an indapendenl index which is the WALL STREET PRIME (Ihs "index'). The Index IS not necessarily the lowest rate charged by Lender on ils loans. It Ihe Index becomes unavailable during the term of Ibis loan, Lender may designate a substitule Index after notice to me. Lender will tell me Ihe current Index rate upon my request. I understand thai Lender may make loans based on olher rates as well. The interest rate change will not occur more often than each day. The Index currently Is a.s00% per annum. The Interest rate to be applied to the unpaid principal balance of INs Nole will be al a rate of 1.000 percentage potht over the Index, adjusted If necessary for Ihe maximum rate Ilmllaflon described below, resulting In an Inltlal rate of 9.500% per annum. Notwithstanding any olher provision of this Note, the variable Interest rate or rates provided for in Ibis Note will be subject to the following maximum rate· NOTICE: Under no cimumsfances will the Interest rate on this Note be mere than the lesser ol 18,000% per annum ~ Ihe maximum rate allowed by applicable law. Unless waived by Lender, any Increase In the Interest rate will Increase the amounls of my peymenls. PREPAYMENT. I may pay without penally all or a podion of Ihe amounl owed earlier Ihan il IS due. Ea-ly payments will not, unless agreed Io by Lender in writing, relieve me ol my obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal balance due and may result in me making fewer payments. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. DEFAULT. I will be in default if any of the following happens: (a) I fail lo make any payment when due. (b) I break any promise I have made lo Lender, or I fail 1o comply with or lo pedorm when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to Ihts Note, or in any other agreement or loan I have with Lender. (c) Any representation or slatament made or furnished to Lender by me or on my behalf is false or misleading in any material respect either now or at the time made or furnished. (d) I die or become insolvent, a receiver is appointed for any part of my property, I make an assignment for the benetit of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor tries lo lake any of my properly on or in which Lender has a lien or securil7 interest This includes a garnishment of any of my accounts with Lender. (~) Any of Ihe events described in this dalauft section occurs with respect to any guarantor of Ibis Note. If any default, other than a delault in payment, is curable and if I have not been given a notice of a breach of Ihe same provision of Ibis Note within the preceding hvelve (12) months, it may be cured (and no event of default will have occurred) if I, after receiving written notice from Lender demanding cure ot such default: (a) cure the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, Immediately initiate steps which Lender deems in Lender's sole discretion to be su~cient to cure the default and lheraafter continue and complete all reasonable and necessary slaps sufficient 1o produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required b a ca I I · this Note and all accrued unnaid Iht .~ ~,~.~-~^,- - ............ Y .Pp. b!e aw, declare the enbre unpaid principal balance on P y a oum Lenoer ma hJra or · Y ' pay someone else to help collect this Note il I do not pay. I also will pay Lender that amount· This includes, subject lo any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whelher or nol there is a lawsuit, Including attorneys' fees and legal expenses for bankruptcy proceedings (including e~fods to modity or vacate any aulomatJc stay or injunction), appeals, and any anticipated post-judgmenl collection sen/ices. If nol prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. II judgment Is enlered in connection with this Note, interest will continue to accrue on lhJs Note after judgment at the interest rale applicable to Ihis Note at Ihe time judgment is entered· This Note has been delivered fo Lender and accepled by Lender In the Commonwealth of Pennsylvania. If there Is a lawsuit, I agree upon Lender's request !o submit 1o the Jurisdiction of the courts of Cumberland Courtly, the Commonwealth of Pennsylvania. This Nole shall be governed by and construed In accordance wllh Ihe laws of Ihe Commonwealth of Pennsylvania· RIGHT OF SETOFF. I grant to Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and kansfer to Lender all my right, !i=? ~,nd. interest in and to, my accounls With Lender (whether chackin savln s r .... JOintly with someone else and all accounts I may oo n i Ihe I'.tHr~ ~./~ ..* -- ~g_~..o_ ?_o_m.e .other a.c.c, oun!), Including without I~m~tahon all accounls held _ ~e n ......... , .~.,uu,.~j r~owever a, ~,~ eno Keogh accounts, and all bust accounls for which the grant of a security interest would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setolf all sums owing o,'~ this Note against any and all such accounts. COLLATERAL. This Note is secured by, in addition to any olher collateral, a Mortgage dated December 22. 1999, to Lender on real properly located in C .~ 5_,eli. AND County, Commonwealth of Pennsylvania, all Ihe terms and conditions of which are hereby incorporaied and made a part of this Note. EXHIBIT "A" .......... I,~ontinued) · '-~,~ ,- 'GENER~I. PRO~/ISlONS. This Note has a demand feature. The ir~usion of ~peciflc default provisions or rights Of Lender shall not prec~ud~ Lende¢'~ right to declare payment of lhts Nots on its demand. Lender may delay or ~'orgo enforcing any of its rfghts or remedies under this Nots without Note, whalh~' es m~km. -',~.----'-,'? --- · r_,a]~ . - '~ ~O?, en~ un,ess olhef'~'~se expmssp/s~aisd in wfitirm, no ......... -?' .... -------, u~,,~.,~, accommooa-on ma,<er or enoorser, snail be reieased ~'om llabili~, All such ,~-.~.,~* -:-'.:~. ~._.77. '· .wee r, agns Ibis ? extend (repeatedly and for any length ol~ .,- .-.-~ -~,~ mai Lanoar may time) this loan, or release any pa·fy or guarantor or Colfafara]; or lmpaJr, te~ lo rea~,~ upon renew Lender's security Interest in Ihe co.tarsi. NI such pmties also agree that Lender may modify Ibis loan without the consent ot or not~ I~ anyone o~ than the party with whom Ihe mod'~31tion is made. The obrigations under this Note am Jdnt end sev~'al. This means that the words '1', 'ma', end "my" mean each and aa ot the perone signing below. PRIOR TO SIGNING THIS NOTE, I, AND EACH OF US, READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCI. UI31NG THE VARIABLE INTEREST RATE PROVISIONS AND THE NOTICE TO COSIGNER SET FORTH BELOW. I, AND EACH OF US, AGREE TO THE TERMS OF THE NOTE AND ACKNOWI. EDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: K,'-i i n L PLA~,~ER ....................... NOTICE TO COSIGNER You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be Sure you can afford to pay If you have to, and that you want Io accept Ibis responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which Increase Ibis amount. The lender can collect this debt from you without flrsl trying to collecl from the borrower. The lender can use the same collecllon melhods againsl you that can be used against the borrower, such as euthg you, garnlshthg your wages, etc. If this debt Is ever In default, that fact may become a part of YOUR credit record. This notice Is not the contract Ihat makes you liable for the debt. LASER PRO, Reg. U.S. Pat. & T.M. Off., Var. 3.25t~ (c) 1999 CFI ProServices, lng. All righls reserve (J. [PA-D2'3 E3,2a ~=3.2~a P3.25a 0~923CL.L NJ i~.L~'~)c REC. ORDATIoN REQUESTED BY: ORRSTOWN BANK P.O. Box 250 77 East King Street Shlppenaburg, PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK P,O. Box 2S0 77 Ea~ King Street Shippensburg, PA 172ft7 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED DECEMBER 22, 1999, between KEITH L PLASTERER and JAMIE L PLASTERER, whose address is 36 KELLY DR, CARLISLE, PA 17013 (referred to below aa "Grantor"); and ORRSTOWN BANK, whose address la P.O. Box 250, 77 East King Street, ShlppenBburg, PA 17257 (referred to below aa "Lender"). GRANT OF MORTGAGE. For valuable consMeraflon, Grantor grant~, bargains, eelto, conveys, aeetge~, tranafens, relea.~s, confirms and mortgagee to Lender ell of Grant~'s right, t~tta, end Ints~st in and to the following ~ real prop~, to~elher with all existir~g er subeaqnentiy erected or affixed bUildings, improvements and fixtures; all streets, lanes, alleys. I~, end ways; all easements, dghts of way. ell libentes, privileges, tenements, heradtiamants, and appudenences thereunto belonging or enyv/~ea made el~pudenant hereafter, end the reve~lons end In -- _ties ............. . ....... .,~,;, ,,,~u~ng Wl[.OU[ .moa.on aa minerals, oil, gas, geolhermal and similar mattara, located CUMBERLAND County, Commonwealth of PennwIvanla (the "Real Property"): SEE A'rTACHED The Real Properly or Its addrose ia commonly known aa 36 KELLY DR, CARLISLE, PA 17013. Grantor presently assigns to Land~' all of Grantor'$ Hght, lille, end internal in and to all leases of the Properly and all Rents from the P~opedy, In addition, Grantor grants to Lender a Uniform Commercial Code sacunty interest in the Pe~onal Pro~rly and Rants. DEFINITIONS. The following words shall have the following meanings when used in this Me.gags. Terms col uthe~ea defined in this Me.gage shell have the meanings attributed to such terms in the Uniform Commer~ Code. All references to dollar amounts shall mean amounts In lawful money of the Unftecl Slates of Arn~ Ex~llng IodeMedneea. Modgage. The words 'Existing Indebtedness- mean the Indebtedness described below in the F_~sflng Indebtedness section of Ihis Grantor. The word "Grantor' means KEITH L PLASTERER and JAMIE L PLASTERER. The Grantor is the modgagor under this Mddgage. Guarantor. The word "Gum'aofor" maans and includes without limitation each and all of th` guaract~s, sureties, and aocommocletion parties in connection with the Indebtedness. Improvements. The wo~ "Improvements" means and Inclu~ wlthol.'t limitation all extstlng and ~tum Improvements, buildings, structures, mob~ homes affixed on the Real Properly, facilities, additions, replacements and otha~' construction on the Real Property. interest on such amounts as provlderl In this Modgage y e ~o emoroe obligations of Grantor under this Mnfigage, together with LerMer. The wo~d ",.ended' means ORRSTOWN BANK~ Its sauce`sore end assigns. The Lender ts the mortgagee under Ihis Mortgage. Mortgage. The word 'Mortgage" means ~hts Mortgage between Granter end Lender, end includes without Ifroltation all assignments and sacudty in/ernst provisions raleting to the Peraddal Properly end Rents. Note. The word 'Note' means the promissory note or credit agreement dated December 22, 1999. In the original principal amount of $b"75,000.00 from Grantor to Lender. togetha~ with all renewals of, extensions of, modifications of. refinancing` of, consolidations of. and substitutions for the promtsso~ note or egraemanL The rhaludty data of this Modgege is December 22. 2001. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE IN ~ ~'~EST RATE+ Personal Properly. The words "Personel Properly' mean all equipment, textures, and other antcles of personal properly now er hereafter owned by Granter, end and now or hereafter attached or ofitxdd to the Real Properly;, together with all accessions, parts, and edditians to, all rspleuamonts of, all substitutions for, any of such properly;, and togelh~ with all proceeds (including Without limit`teen all Insura~e proceeds and refunds of premiums) from any sale or ofhor disposition of lhe Property. Property. The word "Prof~ means collectively the Real Properly and the Personal Properly. Real Property. The word~ 'Real Propmly" mean the prol~rty, interests end rights described above in the "Grant of Mortgage" section. Ret`led Documanto. The words 'Reisted Documents" mean end include without limitation all promtssory notes, credit agreements, loan agreements, environmental agreements, guarantee`, security agreements, morfgegex, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word 'Rents" means all present and future rents, revenues, income, issues, royalties, profits, end other bane§ts dedved from the Pr~nerfy. THIS MORTGAGE. INCLUDING THE ASSIGNMENT OF RENTS AND THE 5EClJRITY INTEREST IN THE NENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDE~TEONE~ AND (2) PERFORMANCE OF ALL O~I.IGAI'ION$ OF GRANTOR UNDER TNI$ MORTGAGE AND THE RI'~-ATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE rea.owING TERMS: PssAtYh~yl~Tes~ dusP~, anO~d _M~_AI~. _.Cl~._~EXC~. t ~S ofha~',vtse provided fn this Mod.., Grantor shaft pay '0 LenG~a' all .moan. secured by this Mod.ge , a u s~a~ smc~y per~erm all of Grentor's obitgations under this Mortgage. POSSE,~ION AND MAINTENANCE OF THE PROPERTY. foflowing pro.alone: Grantor agrees that Grentor's possession and use of the Prope~/sheet be governed by the Posae~n and U~e. Until In dsfeuti, Grantor may remain in possas.~on and control of and operofe and ma,)age the Property and collect Rents from the Property. Duly to Maintain. Granter shalJ malnleln the Prope~y in tenantable condition end promptly perform all repalm, ref~lecements, and maintenance necessary 1o preesme its value. Hazerdo~Je Subelancee. The terms "h~zerdous waste," "hazardous suhstscee," "disposal," "release," and "threatened release," as used in this MoHgags. shall have the same meanings as set forfh in the Comprehensive Envfronmentsl Re,;pone`, Compensation, and Lishilily Act et 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Super~nd Amendments and Reauthorizelion Act of 1986, Pub. L. NO. 9cJ-499 ("SARA"), the Hazardous Materiels Transporfsiton Act, 49 U.$.C. Section 1801, et seq., the Resource Conservation and Recevery ACt, 42 U.$.C. Section 690t, et seq., er cthe~ appllnet~le stale or Federal laws, fa}es, er regulations adopted pumuant to any et lhe foregoing. The terms "hazardous waste" and "hazardous substance" shell aesp include, without llmtiation, petroleum and petroleum by-products or any fraction thereof and asbestos. Grantor represents end warrants to Lender that: (a) Oaring the peded of Graofor's owne~hlp of the Frop~, there has been no usa, generation, m&nulectura, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, under, about or from the Property;. (b) Grantor has no knowledge of, or reason to bofieve that there has been, except as pravioualy disclosed 1o and acknowledged by Lan(ha' in writing, {I) any Use, generation, menutsofum, sterege, fraatmenl, dlspceal, release, or threatened release of any hazardous waste or substance on, under, about or from the Property by any prior owners or occupants et the Properly or (ii) any actual or thrselened litigation or claims of any kind by any person relating to such matters; a~d (c) Except as previously disctosad to and acknowiedged by ,z-z~-tg,~9 MUI-< I ~A~{= Page 2 Loan No (Continued) Lender in w~, (i) n~t~ Gmnt~ n~ any te~nt, con~ctor, agent or ot~ aut~ ~ o~ the ~ s~all u~, ~n~a~e, stye, trot, d~p~ ~, or rel~ any h~do~ w~ ~ subs~n~ on, undo, a~out ~ ~om t~ Pr~ ~nd (ii) any such a~ shell conduct~ in compl~ ~th ~1 app~bM ~, s~te, and t~l ~, r~u~flo~ and =dl~, in~udi~ without lim~tion th~ ~ws. r~u~fio~, and ~ ~ ~. Gmnt~ auth~ ~n~ and I~ egen~ to ent~ upon t~ ~ to ~ke s~h introns t~, at ~ant~s ~e~, ~ ~n~ ~y ~m app~ to ~t~l~ compl~ of t~ ~o~ ~ t~ ~on ~ t~ MO~. Any insp~o~ ~ ~ ~ by ~ s~l be ~ Lend~s pu~ on~ and s~l not be ~ to ~ any r~po~tii~ ~ t~ili~ on pad of Lend~ to Gra~m ~ ~ any ol~ ~on. ~ r~n~o~ and ~mnfl~ con~ ~n ~ ~ on Gra~s ~ue da~ in in~tigafl~ the Pr~ ~ ~do~ w~te and ~rdous subset. Grant~ berry (a) r~ and ~1~ any f~um c~ Lender f~ in~i~ ~ ~n~on fn t~ eve~ Grsntor ~om~ liable f~ cl~nup ~ oth~ c~ u~ a~ s~h ~, an~ (b) ag~ to indemni~ and hold ~ ~n~ against any and all claims, [~, I~bilifl~, ~m~, pen~t~, and ~ wh~ Lend~ ~y ~ir~ stora~, d~o~, re~ ~ th~n~ r~ of a h~do~ waste ~ subs~ on the prop~. ~ p~stom of this ~n ot MO~, I~luding the obligation to indemni~, s~ll su~ t~ payment of the Ind~tedn~s and lhe ~fls~cflon and r~onv~ of t~ lien th~ M~ga~ and s~ll not be a~ed by Lend~s acquisition of any intent in the Pr~, whet~ by to~ure or olh~. Pr~ or any po~on of the Pr~. Wtiho~ liml~ the ge~ali~ ot the for~ng, Grant~ wffl n~ rems, ~ granl to any ot~ p~ Hght to mmo~, any timb~, min~ (i~udi~ oil and gas), soil, grail or r~ pmdu~ without the p~ wH~en con~nt of Lender. Len~. ~ a condition to t~ mmo~ of a~ Impm~nts, ~nder may ~uim Grant~ to ~e a~n~ ~o~ to Len~ to mp~ such Impr~e~n~ with Impr~n~ ~ at ~t ~ ~. Len~'s Rl~t to Enter. Len~ ~d ~ agen~ and repr~n~ ~y ent~ upon t~ R~ ~ at ~1 r~nable ~m~ to affend to Lend~s Inte~ and lo Ins~ the ~op~ ~ pu~ of Grantors complian~ with the terms and conditions of lh~ M~gage. e~t, of all gov~n~n~ auth~ appl~b~ lo t~ u~ ~ ~u~ ~ t~ ~o~. Gra~ may contel in g~d faith any such law, ~d ne~, or ~ulaflo~ and ~hh~d complla~ duH~ any prying, lnclu~l~ appr~te ~, so o~ ~ Grant~ ~ notified ~n~ wdt ~ pd~ to d~ so and so o~ ~, in Len~s s~e ~ ~on, Lenders Inter~ in the ~ am not j~ardl~. Lend~ may aquae Grant~ to p~t a~uate ~ud~ m a sum~ bond, r~N ~ to ~nd~, to pro~ ~n~s in~t. ~W to Pmt~. Gmnt~ a~ n~ to ~ndon n~ ~ unaflend~ the ~. Grant~ s~ do ~ ot~ ~, in sd~ti~ ~ th~ ac~ ~t f~h ~o~ in th~ ~on, wh~h ~om t~ c~ and ~ of the Pr~ are ~bly n~ to prot~ and p~ the ~op~. ~ ON S~- C~S~ BY ~. Lend~ ~y, at ~ opfi~, ~ I~bt~ due end pa~b~ ~ su~ ~ur~ by th~ M~age upon the ~ or ~ans~, without I~ Lend~s pd~ w~en ~nt, of aa ~ a~ ~d ~ t~ ~ ~, ~ a~ (n~t in the ~ Pro~. A ~ T~ES ~D LI~S. ~ f~o~ pro~sio~ rela~ to t~ l~es and lie~ on the Pr~ ~e a p~ of thb M~. P~nt. Gmnt~ sh~l pay when due (and in ~1 e~n~ prim to d~que~) ~1 ~, pa~oll ~, s~ ~, a~men~, wat~ c~ and ~ ~ charg~ I~ a~nst ~ on a~unt ~ t~ Prop~, and s~ ~y when due all ~al~ f~ w~ done on ~ ~ ~ Le~ un~ th~ Mo~, ~t fm t~ I~n ~ ~ and as~ not due, e~pt for the E~ In~Md~ m~ to ~t~, and ~pt ~ oth~ pro~d~ in t~ ~1~ p~agmph. RI~I TO ConteM. Grant~ ~y ~h~d ~y~nt of any ~ a~sme~, ~ claim in co~fion ~th a g~d ~h d~pute over ~ obl~aflon pay, ~ Io~ as Lend~s In~t n the ~ ~ not J~di~d. If a I~n ~ or is fi~ ~ a r~ult of nonpa~nl, Grantor shall wilhin (15) da~ aff~ I~ I~n ~ ~, ~ a I~n ~ fll~, ~hin ~n (15) da~ a~ Gm~ ~ no~ of t~ flti~, ~um the di~ of the I~n, ~ f r~ by ~, ~t ~lh Len~ ~h ~ a sunni c~te sure~ bond ~ ot~ ~u~ ~ to Lend~ i~mount ~ ~n~ u an ad~flo~ ~ u~ a~ su~ bo~ ~r~ in the ~n~ p~di~s. EvMen~ of P~I. G~ s~, up~ ~nd f~ to ~n~ ~ ~de~e of payment of t~ ~ or a~n~ ~d sh~ a~h~ t~ appr~M g~ o~ to d~i~ to Len~ at any fl~ a wHflen s~te~nt ~ t~ ~ and as~n~ a~nst t~ ~op~. ~ ~ ~. ~nt~ s~ n~ Len~ al I~t ~n (15) da~ bef~e any wo~ is com~, any ~ are ~urn~d, or any ~ mat~. Gmn~ ~ upon ~ of ~n~ furn~h to ~n~ a~ a~ ~flsf~ to Len~ t~t Grant~ ~n and will pay ~ ~O~ DAMAGE INS~CE. ~ f~l~ pr~o~ ~fl~ to i~udng t~ Pr~ are a p~ ~ th~ M~. r~t b~ f~ the ~ll ins~ ~ c~ ~ Impr~e~ on the R~ ~ in an amou~ su~ent to avid app~flon of any stipubfi~ t~t co~a~ will n~ ~ ~ ~ diminb~ without a minimum ~ ~ (10) ~' pd~ ~n no~ to ~ an~ n~ a~ di~ of the i~s I~ f~ ~u~ to gi~ s~h no~. Each Insu~ p~ ~ s~ i~u~ an end~nt pro~di~ c~ in fav~ of ~n~ ~ not be tm~ in any way by any ~, omi~o~ m de~u~ ~ Gmnt~ ~ a~ ol~ pe~n. Sho~ t~ R~ Pr~ at any time ~o~ I~t~ In an ~ d~ by t~ Oir~ of t~ F~ E~ Ma~ge~nt ~e~ ~ a sp~ fi~ h~d ~, Gmn/~ agr~ Io ob~n and m~n~n F~ R~ I~um~ f~ the fill unp~d p~I b~ of lhe I~n and any prim liens on the pr~ ~ud~ the I~n, up to t~ ~mum po~ ~lmi~ ~t und~ t~ ~flonal FIo~ Insum~ ~m, ~ ~ ot~e r~uir~ by ~pti~tlon of P~ Gmnt~ shall promp~ no~ Len~ of any I~ or ~ma~ to the Prop~. Lend~ may ~ke pr~f of Io~ if Grantor tails to do so w~hin fi~n (15) ~ of the ~. Whet~ ~ not ~nde~s ~uH~ ~ im~r~, Len~ may, at i~ e~flon, apply t~ pr~s appN the pr~ to r~t~n and r~r, Gmnt~ s~ mpa~ ~ rep~ t~ de.ged ~ d~bo~d Impro~n~ In a man~ ~tisf~ or rest~flon if Grant~ ~ not In ~u~ un~ t~ MO~a~. A~ pr~ which ~ not ~n di~ ~n 1~ ~ a~ th~r r~pt and wh~h ~nd~ h~ not comml~ to l~ mp~r ~ ~t~on of t~ ~ s~l ~ ~ ~mt ~o pay a~ amount owi~ to Len~ under Modgage. t~n to pay a~r~ In~t, and lhe reinS, if a~, s~ll ~ aphid to t~ principal bala~ of t~ Ind~ted~s. if Len~ h~ds any pr~s afl~ pay~nt In ~11 of t~ ~n~t~, s~h pr~ s~a be paid to Gmnt~. ~e~l~ In~r~ at ~e. Any u~i~ I~um~ sh~l inure ~ 1~ be~ffi of, and pa~ to, the pum~ of the Pro~ covered by this M~ge at any trust~'s ~ ~ ot~ s~ ~ld u~der t~ pr~lo~ of th~ M~ga~, ~ at any f~l~ure ~e of such Pro~. Compliance wlt~ ~lstlng I~e~ Dud~ the ~od in wh~h any ~sflng indebtedn~ d~Hbed b~ow is in e~, complta~ with the ~NDI~ES BY L~D~. If Gmnt~ fai~ to comply with any prolcon of this Modgage, in~u~ing any obligation to m~n~in Ex~ng Indeb~dn~s rate pro~d f~ In the Note ~m t~ dam Inc~ or ~ by Lend~ to the date of r~ay~nl by Grant~. NI s~ ~ns~, al Len~s option, will (a) be pay~le on demend, (b) be add~ to t~ b~a~ of t~ No~ and be app~on~ amo~ and ~ pay~le ~h any ins~liment pa~en~ to b~ome d~ duH~ eith~ (i) the t~m of a~ appi~le insura~ p~y or (ii) t~ rem~ning t~m of t~ Note, or (c) ~ ~hts prodded for in this p~agraph sh~l be in addition to any other Hgh~ ~ any mm~i~ to wh~h Lender may ~ enfiffed on a~ount of t~ ''-"--- ' ";;'; IVl~.ll'l t ~bP' Page 3 toan ~o (Continued) Any such action by Lender shall not be construed ac cudng the default so as to bm' Lender from any remedy that it otherwise would have had. Grantor's obligation to Lander for ell such expenses shall survive the entry of any mortgage foraclseure Judgment. WARRANTY; DEFENSE OF Tlll. E. The following pro~,tsions relating to ownership of the Properly are a part of this Modgege. Title. Granlor warrants that: (e) Grantor holds good and rna~etebta title of record to the Pro~ In fee simple, free and clear of all liens and encumbrancac other thin thnse set fodh in the flasJ Propelly Ctaacflption or In the Existing Indebtedness section below or in any title insurance policy, tiffs report, or ltnal ~ epinton issued in favor of, end accepted by, Lander in connection with this Morlgege, end (b) Grantor has the full right, power, and authority to execute end deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants end will forever defend the title to the Prof~tty against the lawful claims of ell pe~one. In the event any action or procasd]ng is commenced that questions Grantors title Or the interest of Lander under this Mortgage, Grantor shall defend the action at Grentor's expense. Grantor may be the nominal party in such proceeding, but Lander shall de entitled to participate in the proceeding and to be represented in the pruceeqing by oounsal of Lender's own choice, and Grantor will deliver, or cause to be delivered, io Londe~ such instruments as Lender may request from time to time to permit such participation. Compltance With Laws. Grantor warrants that the Properly and Grantor's use of the Properly compline with ell e0dsting appllcebts laws, ordinances, and regulations of governmental authoritias. EXISTING INDE~B'T'EDNESS. The following provisions concerning e~sting Indebtedness (the "Existing Indebtadneas") era s pert of this Modgege. Extetlag Lien. The lien of this Modgage securing the Indebtedness may be secondm'y and inferior to an existing lien, Grantor e~orassly covenants and agrees to pay, or see to the payment of, the Existing indebtedness and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness. Default. if the payment of any installment of principal or any interesl on the E. xisltng Indebtedness is not made within the time required by the note evidencing such Indebfadnees, or should a default occur undid' the instrument se~uriog such indebtedness and not be cured during any applicable grace period therein, than, at the oplton of Lender, the Indebtedness secured by this Modgege shall become immediately due end payable, and this Mortgage shall be in default. NO Modlflcatton. Grantor shall not enter Into any agreement with the holder of any morr?~e__ Or uther security agreement which has prfudly over this Mo~lgege by which that agreement is modllterl, amended, extended, or renewed without the ~ written consent of Lender. Grantor shall neither request nor accept any furore advances under any such secunty agreement wt~out the prior wflffon consent of Land~'. CONDEMNATION. The following provisions relating to condemnation of the Properly are · [Dart of this Mortgage. Application of Nil Proc. eed~ If all Or any dirt of the Prodedy Is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its eloctioc require that all ur any potion of the net procoeds of the award be applied to the Indebtedness or the redek or restoration of the Property. The nat proceeds of the award shall mean the award alter Payment of all eof ual ucsts, expenses, and atiorneys' fees Incurred by Lander In connsction with the condemnation. Procasdfage. If any S:)rccoeding in condemnation is rded, Grantor shell promptly notify Lender in wi'fflng, and Grantor shall promplty take such steps es may be r~',a~t~ __,y to defend the aclton and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proseeclieg end to be represented In the pruceedlng by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such InstJ'uments as may de t~:lUasfacl by it from time to time to per'mit such parliolpalton. IMPOSITION OF TAXES, FEES ANO CHARGES BY GOVERNMENTAL AUTHORITiES. The following provisions refaltng to governmental taxes, fees end charges era a dirt of this Modgage: Current Taxes, Fees and Cherge~ Upon request by Lander, Grantor shall execute such documents in addition to this Mortgage and whatever other action is requested by Lender to perfect and contioue Lander's lion on the Real Probefly. Grantor shall reimburse Lender for all taxes, as described below, tngeth~ with all expenses tnsoneq in recording, pedec~ng o' co~nulng this Mortgage, including without limitation ell texas, fees, documenfary stamps, end other charges for recorolng or ragtsta~tng this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (a) a ~ tax upon this type of Mortgage or upon all or any part of the tndebtadnses secured by this Mortgege; (b) ! s~ tax on Grantor which Grantor is euthodsed or required to deduct from payments on the Indebtedness secured by this fy!ce of Modgaga; (c) al tax on this type of Mortgage cher~psab~ against the Lender or the holder of the Note; end (d) n specific tax on ell or any podlon of the Indebtedness or on paymenis of principal end interest made by GJlmtor. Subaequonl Tasee. If any tax to which this section applies is emlofecl subsequent to the dsfa of this Mo~lgage, this event shall have the same effecf as an Event of Default (as defined below), end Lender rrmy exee~tse any or all of its avalfabie ramadlas for an Event of Oefault as provided below unJass Grantor either (a) days the tax before it becomes delinquent, or (b) contests the lax as provided above in the Taxes end Lfans seofion and ' deposits with Lender cash or · suffi(~ent corporefa sum~y bond or other security settstectoe/to Lender. SECURITY AGREEMENT; FINANCING ~I'ATEMENTS. ~ following l)rcvtsions relating to this Modgage as · security agreement ara a part of this Mortgage. Securtty AgreemerlL This Jnsl~ment shall constitute a secudly agreement to the extent any of the Property constitutes fixtures or other personal propsdy, and Lend~ shall have all of the dghts of & secured party under the Unttorm Com~al Code as amended from time to time. Security InteresL Upoc request by Lender, Grantor sheti axecute tineactng statements and taka whatever other action IS requested by Lender to peffact and continue Lender's socuflty interest In the Rents and Personal Prope~y. In addition to recording this Mortgage in the real properly records, Lander may, at any time and without further authodzalton from Grantor, fits executed counterbeds, copies Or reproductions of this Moltgege as a tinericing sfatomenL Grantor shall relmbtmse Lender for ell ex~ensas incurred in perfecting or continuing thIs secudty integer. Upon default, Grantor shall assemble the Pemonel Properly In a manned' Ind at a place reasonably convenient to Grantor end Lender end make it avai~bis to Lender within three (3) days alter receipt of written demand from Lender. ~ · x ~ '~.~u,~ u, -~ Ur"TOrrn ~.,om~ Uoue), are as sfafad On the flint pabe of this Mortgage. FURTHER A~$LIRANCE$; ATTORNEY-IN-FACT. The following provisions relating to further assurances end attorney-in-fact ara · pad of this Mortgage. Further Aasuroncos. At any time, and ~'om time to lima, upon request of Lender, Grantor will make, execute end deliver, or will cause to he made, executed or delivered, to Lender or to Lander's designee, and when requested by Lender, cause to be filed, recorded, raffiep, or reresorded, as the case may be, at such times and in such offices and placas as Lender may deem approprtste, any and all such mortgages, deeds of trust, secudly dasd~, ~ecudtyAgresmenis, financing statsments, ucntinuation statements. Insttumeflts of furlher assurance, cadtticotes, and other documents as may, in the sole opinion of Lender, be _ns.~___~,_,y Or dasirebio in ordel' to effaetueto, complete, perfect, continue, or prese~/e (a) the obligations of Grantor under the Note, this Modgege, end the Refafad Documents, and (b) the liens and security interesis created by this Modgege on the Property, whether now owned or tmmatter acquired by Grantor. Unisas prohibde~l by law or agmeq fu the contrary by Lander in wdltng, Grantor shall reimburse Lender for all casts and asdenass incurred in conneofton with the matters referred to in this peragmbh. Attorney--In-Fist. rf Grantor fells to do any of the things referred to in the preceding paragraph, Lender may do so for and In Ihs name of Grantor end at Grantor's expense. For such purposes, Grantor hereby Irrevucabty appoints Lender ss Grantor's ettornay-~n-.faof for the purpase of making, executing, delivering, tiling, recording, end doing all other things as may de ne~ or dealrabte, In Lender's sole opinion, to accomplish the maUers referred to in the preceding paragraph. FUL/. PERFORMANCE. If Grantor pays all the Indabfadnass when due, and otherwfse perfon'ns ell the obligations imposed upon Grantor under this Mortgage, Lender shetl execute end d~tver to Granto4' a suliebie selisfacUon of this Mortgage end suitable statements of termination of al~y financing statement on tile evidencing Lender"s security interest in the Rents end the Personal Prepedy. Grantor will pay, if perft~ltted by applicable law, any reaxonahis termination fee as dofermlnad by Landor from time to time. DEFAULT. Each of the following, alt the opltOn of Lender, shall constitute an event of default ("Event of Default") under this Mortgage: Default on todebtednees. Failure of Grantor to make any deymont when due on the Indebtedness. Default on Other Peyllrtontl~. Failure of Grantor within Ihs time required by this Modgege to make any payment for taxes or insurance, or any other payment necessary to prevent fling of or to effect discharge of any lien. Compllonne Default. Failure of Grantor tO compJy with any other term, obligation, covenant or condition contained in this Modgege, the Note or In any of the Related Documents. False Statements, Any warranty, representation or siefament made or furnished to Lender by or on behalf of Grantor under Ibis Modgege, the Note or the Related Documents is false or misleading in any maierial respect, either now or at the time made or furnished. Defacttve Coflafarallsetfun. This Modgaga or any of the Related Documents ceases to ha fn full force end effect (including failure of any collateral Loan NO ivl~./n J (Continued) Page 4 dosumants to create a valid end paffeofeq sacunty Intorest or Il,n) at any time end for any reason. a~g. thnm°ernltnf~t~ef~Y~e~hoof ~i~of Ga=~ltor_,_t~h~ ins...oivancy of Grantor, the appotntman, of e reooiver for any pert of Grent,~' .... laws by or against Grantor. encement of .ny proceeding under any bankruptcy or ~nso~ency For~Josore, Fo~atture, eh:. Commencemem of toraclosura or tad~ure proceedings, whether by Judicial proceeding, self-help, rabo~on ~n~h°.t~e~.enrn~to~a~booY~thor~[Gra_nto~.or by any governmental ,ganny against ,ny of the Prooedv. H . g ~sp moy uranzor as to the validity or reasonsblaneas of the eMIm ~h~-~ "-' ~.~_e_?,_~is subsoottan snai~ not apply ......... ~ .m ul~ll o~ the foreolnsure or f~ure proceeding, provided that Grantor gives Landor written notice of such claim and furnishes reserves or, surety bond for the ctalm satistaotoe/to Lender. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor end Lender that is not remedlacl within any grace period provided therein, including without limitation any agreement concorning any Indebtedness or other obligation o! Grantor to Lender, whether existing now or tatar. Existing IndeMedness. A deteult shall occur undor any Existing Indebtedness or under any instrument on the Property secudng any Existing Indebtedness, or commencercent of any suit or other action to re,close any existing lien on the Properly. Events Affantlng 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 validtiy of, or liability under, any Guerenty of the Indebtedness. Lender, et its Option, may, but shat not be required to, permit the Guarantees sat'ts to assume unconditiocelly the obligations arising under the guerenty in, mennor sotistack:~7 to Lender, and, In doing so, cure the Event of Default. Rlgltt to Cure. If such · tailurs is curable ,nd if Grantor has not been given a notice of a b .d.e..m~nding cum of such tel/ur': (,) cu~as the fei ur, within ti~een (15'~ daw or ~.~ a ,~uc~_.u. rred) it. Grantor, ,Rm' Lender sends written mm,xeS steps Suflloieot to cure the failure ,nd theraa~tor oontin.-'' :..~'*"----,-~."-/_"-'.'~ ,.are raqusrso more than fifteen (16) days, imrnsdlatel RIGHTS AND REMEDIE~ ON DEFAULT. Upon the occurrence of ,ny Event of Default ,nd et any time thereattor. Lender. at its option, may exorcise any one or more of the tallowing rights and remedies, in addition to ,ny other rights or rem'dM provided by taw:. Accelerate Indebtodne~ Subjanl to applicable law, Lender shall have the right at Its option without notice to Grantor to declare the entire Indebtedness immediately due end payable. UCC Rem,dian. With ros~ to ell or any part of the Personal PrOperty, Lender shall have ell the rights and rem'disc of · secured party under the Uniform Comn",ore!al Code. Collect Ranis. Lender shell have the right, without nofk:e to Grantor, to take ps,session of the Propady and collect the Rents including amounts past due and unpaid, and apply the net proceeds, over end ebeve Lender's costs, ag'lost the Indebted. In ft~nue ~f this dghl, Landor may require any tenant or other usa' of the Properly to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, Ihon Grantor in'evucably designatos Lender es Grantaf's altomey.-ln-fact to endorso Insltuments received in payment thereof in the name of Grantor end ta negotiate the same end collect the proceeds. Peymants by tenants or other us~s to Lender In response to Lander's demand shall satisfy the obligations for which the payment' are mede, whether or not ,ny proper ground, for the demand exacted. Lender m,y exercise its rfghta undor this subparagraph either fn person, by agent, or t~ough a receive,-. Appoint Recatvar. Lander Shall have the righl to have a recelver,ppolnted to take pos'as'ion of ail or ,ny pad of the Properly. with the power to protect and precede the Properly, to operate the Pr~ proc, drag tamcl~ure or sale, ,nd to coilaof the Rents from the Properly end apply the proceeds, over ,nd abM the cost of the reeetverahlp, against the Indebtedness. The rensh~' may serve without bond if permitted by law. Jodlotal Foreclosure. Lender may obtain s judicial decree for,cio'lng Grentar's Interest in all or any pad of the Properly. NonJudloiat Sate. It permitted by applicable law, Lender may tar,ct'os Grentar% intorest In all or In any pad of the Personal Propady or the Real Properly i~y non~co'iclai sale, DoftaMncy Judgment. Lander may obtain. Judgm.ot for .ny dafl~nny remaining in the Indobtadnacs due to Lender .flor abpl!cottan ct all amounts received from th. exercise of the rights provided in this section. Tenancy at Sulfensn(re. If ~raotor remains In po~on of th. Property .flor the Property Is sold as provided above or Lander othe~ bacomas ent~ to po~ of the Propa~y upon default of Graotor, Grantor shall the Proporty and shall, at Lander's cpi]on, elth~ (,) pay, reasonable rental for the usa of the Prop~, or (b) vacate the Propen'y immediately upon the demand of Lander. Othe' Remedtas. Landor shM have all other rights end rem'pies provided in this Modgega or the Note or available at law or In equity. Sale of the Property. TO Ih. extent permllted by apptinable/aw, Grantor hereby waives any end ail right to have the property marshalled. In exerc~ng its dghta end rent~ofe~ Lander shall be free to ~ all or any pert of the Properly tagethar or separately, in one sale or by sal~u'ata sales. Lender shall be eofitled to bid at any public sale on all or any portion of the Propady. Notice of ~ate. Landur shall g~ve Grantor reasonable notice of the time and place of any public sale of the Personal Propurty or of the time rW~h~hnaa~l~ nP(l~ltctees~aalllem°~l°ntnhn~'otlceinteo~d nedn a~..i~s~..~3~tl~,..o.n/.~, ~. ~P~.o_. nat Properly is ,o be mede. Unless otherwise required by .ppi,able law, . .......... .n ~,u~ ,.mya camm the time of the sale or dispoaltlon Waiver;. mecttan ot~ Remedle~ A waivor by any pady of · breach of e provision of this Mortgage she# not consUtuta, walvor of or prejudice the party's nghis otherwise to demand sbict compliance with that provision or any other provision. Eleotton by Landor to pursue .ny remedy shall not exclude pursuit of any other remedy, .nd an etaotlon to make aspanditursa or take acttan to per~m .n obligetion of Grantor under this Modgage Its dghis shell become a pad of the n~taclnass ne~ ^- .-~--- ~. ~ ny time for the protacUon of its interest or the enforcemen! ~f provided or In the Note G~-- ^.~---~ ~.. ~: · ..... ~,,,.nu ar~ snaJ~ oear ntorost from the dele of ~'~-odt~, ..... '~ ...... ;-: Lender's attorneys' fees end Leoder's legal expenses whathar or ~ot · (ir,~udingeffomto modityorveoste enyantoma6cstevorlnlun,~,~,~~ ?_here__,~__s~lawsuit,.??ludlng att'maya' fees for bankruptcy proc..dj s sosrc~ng records, obtaining titte reports (indiuding ' ,- ....... ,, ~,,l~a,~ anu any anes~patad post-judgment collection sor~, the foreclosure raports), su~eyors' rapo~ls, end 'pier. _l_*,,J feos, and title Insurance, to the extent pormittab by applicebla law. Grantor also will pay any court costs, in addittan to alt ofhar sums provtdesl by law. ~ shall be .............. =~,ua.~- ueav~o, or when daposJtab with a cetions"y recognized overnight couifor, or, Il' mal~, shall be deemed attentive when deposited in the Unifacl States mall first class, cen'ffied or registered mail. postage predald, diraoted to the oddressso shown near the beginning of this Mortgage. Any party may change its addrasa tar notices undor this Mortgage by giving f~maJ wd on noUce to the other padtas spacifyf that the u MISC~ ~ ~EOUS PROVISIONS. The following miscellaneous provisions are. pad ct this Mortgage: party or petites sought ta be che ortgege s ,, be effective udiacs ivan i rged or bound by the ,itorar~on or amendment, g n writing and slgns~ by the Ap~lta~ Law. Thte Mor'lga~ Ilal ~ datlver~l to Lander an~ acoapte~ by Lamber In the Commonweatth of Pennsylvania. Mortgage shall be governerl by and conatrue~ In aosor~ with file ~ of the Commorlwealth of Pennsytvonle. Caption Headings. Caption headings in this Mo~gage are for convenience purposes only and are not lo be used to Interpret or detine the provisions of this Mortgage. Merger. Tnam shall be no meegor of the interest or estate orsoled by thts Modgsge with any other Interest or estate in the Property at any time , ~-~-; ~u MUI-~ I Li/-t~C Page 5 Loan No (Continued) - , every Grantor. This means that each of the persons signing below is responsible for all ebligef~ons In this Morlgage. SeveraDItlty. Il' a coud of compofent jurisdiction finds any provision of this Mortgage to be invalid or unenfo4'caabts as to any person or cimumstanca, such fining shall not render that provision invalid or unenforceable as to any other persons or cimumstancas, if feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceablilty Or validity;, however, if the Offending provision cannot be so modified, it shall be sfltcken end all other provisions of this Mortgage in all other respects shall remain valid end enforceable. Succaasore and Aealges. Subject to the lim~tlons staled in this Modgege on transfer of Grantors interest, this Mortgege shall be binding upon ~nd inure to the benefit of the be~es, thair helm, personal repreeanletlvea, successors end esaigns. If ownsrehlp of the Pro;)erty becomes vested m a person other' then Grantor, Lender, without nof~ce to Grantor, may deal with Gmntot's su~ with reference to this Motlgage end the [ndebtsdneas by way of forbearance or extension without releasing Grantor fi.om the ob~gaifoea of this Modgege or liability under the indebtedness. Time Is of the E_-,_ae~ce. Time is of the essence in the perfo~'mence of this Modgage. Waivers and Coneante. Lender shall not be deemed to have waived any rights unde*' this Mortgage (or under the Retstscl Documents) unla~s such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exersieing any right shall opm'ate es e wah~ of such ifght or any other dght. A waiver by any party of e provision of this Mortgage shall not constitute · waiver of or prejudice Ihe party's right otherwise Io demand st~t compliance with that provision or any other provision. No pdor waiver by Lender, nor any course of dealing betwea~ EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRAHTOR AGREES TO ITS THIS MORTGAGE HAS BEEN SIGNED AND SE~ ~=n BY THE UNDERSIGNED. GRANTOr_: s~g. ee, ank~ md. de,vere~J. ~ or: Wltneea Signed, eclmowle~ge<l anal delivered In the pnsean~e o~. X Wltne~ X Wllneea CI::I~TIFICATE OF RESIDENCE I hereby certify, that the precise address of the mo~gagee, ORRSl'OWN BANK, he.in is as foaows: P.O. BOX 2~0, 77 _~_~t__ Klrlg SIIl~, ~llll~, PA 17'~7 ,,. INDIVIDUAL ACKNOWLEDGMENT )ED undersigned Notary Public, personally appeared KEITH L laL.ASTERER and JAMIE L FLAS~r.~, known to rne (or seltsfeotorily proven) to b-' the p ,er~_ .n_~w._h_ _o~e ns~mea am sub=bed ,o ,ha .within fnsl~'umenl, end .oknowied~ that they executed II, se.rifle for the purpoeaS therein contained. "" Notedot S#l Frank E. Kcaer II, N~ Pulaa= EX~II~f~ A i~0~G ut a poim om the ur, mm ~ of jr,,ny Drive at tho ~ Ibm betwMn Lots NoL l~and 16 u shown ou the suMivisionldsn ofims hm'uinaf~r ~ thence atonS ~ div~mn$ tine begun Lou Nos. IS ami 16 North ';2 dqrees ~3 mbm~ 31 ua:~ts hst. a di~m~ of 798.~6 fm to oOer mnain~ lands of W, wty6o and Glada P. Ketly; thence tloq said other rmninina lands of W. Wsyd~ and Glenda F. Kelly, b ~ two courses mid distnnces: (1) North 37 degm~6 ~29 ~W~ a ~ ~$~ to &potm on b ~m ~ide of K~ily l:~v~ Rm mn~kxasl al~v~ tl~n~ $1~ s~l m ~ of Kelly Drive, South 17 ~t~s 6 minu~ 2g s~mds East, a drtsm~ ~f ~0 !~t to · BEING ~ot No. 15 a~ shown m · ~ plan ~f i~.4~ ~nliliM Final SulMivt~ Plan f~ Wa).~e l~tly. Sec~nn I. d~t_~ AI~H 17, 1~ and m;otdM in th~ ~ ~ ~ ~ of Deed~ in ~nd for Cum~rland ~unty, Pmmsyiwni~, in ~ Book 50, ~ ~0. BANK ,700 / February 22, 2002 W. WAYDE KELLY KEITH L. PLASTERER JAMIE E. PLASTERER 101 KELLY DRIVE CARLISLE, PA. 17013 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lende,' intends to foreclose. Specific information about the nature of the default is provided in th,, attached pa.qes. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELINC' AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you whe~ you meet with the Counselin.cl A.qencv. The name, address and phone number of ConsUmer Credit Counselin.q A.qencies servin.q your County are listed at the end of this Notice. If you have any questions, you may call the Pennsylvania Housin.q Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869) This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. EXHIBIT "C" PO BOx 250 · Shippensburg, PA 17257 · (717) 532-6114 · (717) 532-4143 Fax · www.orrstown.com LA NOTIFICACION EN AD JUNTO ES DE SUIVtA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVlENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICAClON OBTENGA UNA TRADUCClON INMEDITAMENTE LLAMANDO ESTA AGENClA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENClONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): KEITH L. & JAMIE E. PLASTERER PROPERTY ADDRESS: W. WAYDE KELLY 36 KELLY DRIVE LOAN ACCT. NO.: CARLISLE, Pa. 17013 26338409001 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER:ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURF - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURF YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone number,-, of desiqnated consumer credit counselinq agencies for the county in which the property is located ah; set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCF - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND' YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your properly located at: 36 KELLY DRIVE, CARLISLE, PA. 17013. IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due:DECEMBER 22NO--$575,857.44. Other charges (explain/itemize): LATE FEES--S144.85 TOTAL AMOUNT PAST DUE: .S 576,002.29 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ 576,002.29. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK ATTN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortqacle debt This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mort.qa.qe I~ro~)ertv. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIE~ - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALF - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriffs Sale. You may do so by paying the total amount then past due, plus any late or other charqes then due, reasonablo attorney's fees and costs connected with the foreclosure sale and any other costs connected with tho Sheriff's Sale as specified in writing by the lender and by performinq any other requirements under the mortqaqe. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATF - It is estimated that the earliest date that such a Sheriffs Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Address: Phone Number: Fax Number: Contact Person: Orrstown Bank P.O. Box 250, 77 East Kin.q Street Shippensbur.q, PA 17257 (717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGI~ - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIF..S SERVING YOUR COUNTY. 0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Services of Franklin 31 West 3r~ Street Waynesboro, PA 17268 (717) 762-3285 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 Community Action Comm. of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 American Red Cross - Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 CERTIFICATE OF SERVICE I hereby certify that on June 7, 2002, I, David A. Baric, Esquire ofO'Brien, Baric & Scherer, did serve a copy of the Amended Complaint, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Shahan G. Teberian, Esquire Klehr, Harrison, Harvey, Branzburg & Ellers, LLP 260 South Broad Street Philadelphia, Pennsylvania 19102-5003 David A. Baric, Esquire Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 (215) 568-6060 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 CERTIFICATE OF SERVICE I, Shahan G. Teberian, hereby certify that a true and correct copy of Preliminary Objections of the Defendants to the Amended Complaint of Orrstown Bank was mailed via first class mail, postage prepaid on July ~o , 2002 to the following: David Baric, Esquire O'Brien, Baric & Scherer 17 West South Street Carlisle, PA 17013 ~re PHILI: 465780-1 PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and s,,~,itted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Pl~e ] i~t the within matter for the next Arc~t Court. CAPTION OF CASE (entire caption must be stated in b,]] ) ORRSTOWN BANK , KEITH L. PLASTERER AND JAMIE L. PLASTERER, ( PI ai ntiff) ( Defer~ant ) No. 02-1 877 CivilACTION-LAW 19 State matter to be argued (i.e., plaintiff's motion for new t~ ia], defer~ant's de~z~_r to c..~%.]aint, etc.): Defendant's Preliminary Objections Identify counsel who ~]l ar~3ue case: (a) for plaintiff: David A. Baric, Esquire · z~ess: 17 West South Street, Carlisle, PA 17013 (b) for defer~ant: Shahan G. Teberian, Esquire ;uA~ess: 260 S. Broad Street, Philadelphia, PA 19102-5003 3. I will notify all parties in writing within two days that tb~-~ case been l i-~ted for arc3t~r~-nt. 4. Arc3u~ent Court ~ate: July 15, 2002 August 28, 2002 Attorney for Plaintiff" ORRSTOWN BANK, : Plaintiff, : : V. ' . KEITH L. PLASTERER and : JAMIE L. PLASTERER, his wife, : Defendants. : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-1877 CIVIL TERM CIVIL ACTION-LAW PRAECIPE TO STRIKE MATTER FROM ARGUMENT COURT LIST NOW, COMES Orrstown Bank, by and through its attorneys, O'Brien, Baric and Scherer, and sets forth the following: 1. Orrstown Bank filed a Praecipe to List for Argument the preliminary objections filed by Defendants. 2. Orrstown Bank requests that this matter, as listed, be stricken from the Argument Court List for the argument to take place on August 28, 2002. Respectfully submitted, David A. Baric, Esquire I.D. #44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank CERTIFICATE OF SERVICE I hereby certify that on August 8, 2002, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe to Strike Matter from Argument Court List, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Shahan G. Teberian, Esquire Klehr, Harrison, Harvey, Branzburg & Ellers, LLP 260 South Broad Street Philadelphia, Pennsylvania 19102-5003 David A. Baric, Esquire DaveOrrstown/Bank/PlastereffStrikeArgument.pra PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be t~tten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Pl~-~e ] i~t the within matter for the next ;~t Court. CAPTION OF CASE (entir~ caption must be stated in D,11) ORRSTOWN BANK, KEITH L. PLASTERER AND JAMIE L. PLASTERER ( p1 ai ntiff ) ( Defe_n~ant ) No. 02-1877 Civil TERM 19 State matter to be argued (i.e., plaintiff's motion for new t~ial, defer~ant's d~Nur~-er to c~,%~]aint, etc. ): Defendant's Preliminary Objections Identify counselwho~]l argue case: (a) for plaintiff: David A. Baric, Esquire A~l~ess: 17 West South Street Carlisle, PA 17013 (b) for defendant: A~ess: Shahan G. Teberian, Esquire 260 South Broad Street Philadelphia, PA 19102-5003 3. I wil] notify all parties in writingwithin t~odays that tblm case has been llmted for ar~t. 4. ;~t Court Date: OCTOBER 9, 2002 December 6, 2002 Attorney for Plaintiff ORRSTOWN BANK, PLAINTIFF KEITH L. PLASTERER AND JAMIE L. PLASTERER, DEFENDANTS · IN THE COURT OF COMMON PLEAS OF · CUMBERlaND COUNTY, PENNSYLVANIA · 02-1877 CIVIL TERM IN RE: PRELIMINARY OBJECTIONS OF DEFENDANTS TO PLAINTIFF'S COMPLAINT BEFORE BAYLEY, J. AND HESS, J. ORDER OF COURT AND NOW, this ~ day of December, 2002, this matter having been called for argument, and upon representation that defendants are withdrawing their preliminary objections to plaintiffs complaint, IT IS ORDERED that defendants' preliminary objections to plaintiff's complaint, ARE DISMISSED. By the?-~:~, //~/~ Edgar B. Bayle~/, J~ David A. Baric, Esquire For Plaintiff / Shahan G. Teberian, Esquire For Defendants :sal Klehr, Harrison, Harvey, Branzburg & Ellers LLP BY: SHAHAN G. TEBERIAN, ESQUIRE IDENTIFICATION No. 69407 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 STIPULATION Orrstown Bank ("Plaintiff") and Keith L. Plasterer and Jamie Plasterer (the "Defendants"), the parties to the above-captioned action, hereby stipulate and agree as follows: 1. On or about April 17, 2002, the Plaintiff filed its original Complaint. The original Complaint purported to be an action in assumpsit and sought judgment based upon a promissory note. 2. On May 21, 2002, the Bank delivered to the Defendants a notice, pursuant to Pa. R.C.P. 237. i, of intention to take default judgment. 3. The notice of intention to take default judgment categorizes the underlying action is in mortgage foreclosure. 4. On May 31, Complaint. 5. underlying action as brought in assumpsit. 2002, the Defendants filed preliminary objections to the original On June 7, 2002, the Bank filed its Amended Complaint, which addresses the PH1L1: 49349l-1 6. On or about November 19, 2002, the Defendants filed their Preliminary Objections to the Amended Complaint of Orrstown Bank based upon, inter alia, Defendants' confusion as to the nature of the underlying action. 7. The Plaintiff has advised the Defendants that the judgment it seeks is based upon the promissory note, and it is not an action in mortgage forclosure. 8. In light of this statement by the Plaintiff, the Defendants have agreed to withdraw, without prejudice, their preliminary objections and to file an answer to the Amended Complaint within fifteen (15) days of the execution of this stipulation. 9. This stipulation does not effect Plaintiffs fights to recover under any mortgage or other document executed by Defendant's or others in connection with the underlying loan transaction. O'BRIEN, BARIC & SCHERE~7 B ¥ .~~(/~,,[/~/t David A. Baric, Esquire 17 West South Street Carlisle, Pennsylvania, 10713 Attorney for Plaintiff, Orrstown Bank KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP Shahan Tebefian, Esquire Ron L. Woodman, Esquire 260 S. Broad Street Philadelphia, PA 19106 (215) 568-6060 Attorneys for Defendants, Keith Plasterer and Jamie Plasterer PHILI: 493491-1 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP By: Shahan G. Teberian, Esquire/Ron L. Woodman, Esquire Identification Nos. 69407/88450 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 To: NOTICE TO PLEAD Orrstown Bank c/o David Baric, Esquire 17 West South Street Carlisle, PA 17013 You are hereby notified to file a written response to the enclosed Defendant's Answer to Amended Complaint and New Matter within twenty (20) days from service hereof or a judgment may be entered against you. Dated: January 21, 2003 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP By: ' Sh~~G. Teberi/~, Esq'-ire Ron L. Woodman, Esquire 260 S. Broad Street Philadelphia, PA 19102-5003 Attorneys For Defendants PHIL 1: 494680-1 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP By: Shahan G. Teberian, Esquire/Ron L. Woodman, Esquire Identification Nos. 69407/88450 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 DEFENDANTS' ANSWER TO AMENDED COMPLAINT AND NEW MATTER The Defendants, Keith L. Plasterer and Jamie L. Plasterer (the "Defendants"), hereby file this Answer and New Matter to Plaintiffs Complaint (the "Complaint"), and in support hereof aver as follows: Admitted upon information and belief. Admitted. Denied. The allegations contained in Paragraph 3 of the Complaint refer to Exhibit A to the Complaint, a writing which speaks for itself. The Plaintiffs characterization of this document is specifically denied. 4. Denied. The allegations contained in Paragraph 4 of the Complaint refer to Exhibit B to the Complaint, a writing which speaks for itself. The Plaintiffs characterization of this document is specifically denied. PHILI:494680-1 5. Denied. The allegations contained in Paragraph 5 of the Complaint refer to Exhibit A to the Complaint, a writing which speaks for itself. The Plaintiffs characterization of this document is specifically denied. 6. Denied. The allegations contained in paragraph 6 refer to Exhibit A to the Complaint, a writing which speaks for itself. The Plaintiff's characterization of this document is specifically denied. To the extent paragraph 6 contains legal conclusions to which no response is required, the Defendants specifically deny such conclusions. Finally, the Defendant's suspect that they have made additional payments, and are reviewing their records to confirm this. 7. Denied. The allegations contained in Paragraph 7 constitute legal conclusions to which no response is required and therefore, are specifically denied. The Defendants also incorporate herein the response to paragraph 6 above. 8. Denied. The allegations contained in paragraph 8 constitute legal conclusions to which no response is required and are, therefore, specifically denied. 9. Denied. The allegations contained in Paragraph 9 of the Complaint refer to Exhibit C to the Complaint, a writing which speaks for itself. By way of further answer, but not in derogation of the foregoing, the notice appended to the Complaint as Exhibit C is a notice relating to mortgage foreclosure, a notice irrelevant to the present action, which is in personam. By way of further answer, and not in derogation of the foregoing, the allegations contained in paragraph 9 constitute legal conclusions to which no response is required and are, therefore, specifically denied. 10. Denied. The allegations contained in Paragraph 10 constitute legal conclusions to which no response is required and therefore are specifically denied. 11. Denied. The allegations contained in Paragraph 11 of the Complaint refer to Exhibit A to the Complaint, a writing which speaks for itself. The Plaintiffs characterization of PHILI: 494680-1 Exhibit A to the Complaint are specifically denied. By way of further answer, and not in derogation of the foregoing, the allegations contained in paragraph 11 constitute legal conclusions to which no response is required and are, therefore, specifically denied. WHEREFORE, the defendants Keith L. Plasterer and Jamie L. Plasterer respectfully request that the Amended Complaint be dismissed with prejudice and a judgment be entered in their favor NEW MATTER 12. Defendants incorporate their responses to Paragraph 1 through 11 above by reference, as if fully set forth. 13. The Complaint fails to state a claim upon which relief can be granted. 14. The Plaintiff failed properly to mitigate its damages. 15. The Plaintiffs' cause of action is barred by the doctrine of accord and satisfaction. 16. The Plaintiffs' cause of action is barred by the doctrine of consent. 17. The Plaintiffs' cause of action is barred by the doctrine of waiver and estoppel. 18. The Plaintiffs' cause of action is barred by the doctrine of fraud. 19. The Plaintiffs' cause of action is barred by the statute of frauds. 20. The Plaintiffs' cause of action is barred by the doctrine of unclean hands. 21. Any damages suffered by the Plaintiff were caused in whole or in part by its own actions and/or inactions and/or by the actions or inactions of third parties. 22. of this action. 23. 24. The Plaintiff failed to comply with material conditions precedent to the institution The Plaintiff has not given effective notice of default to the Defendants. The legal fees and costs sought by the Plaintiff are excessive and unreasonable. PHIL 1: 494680-1 WHEREFORE, the Defendants Keith L. Plasterer and Jamie L. Plasterer respectfully request a judgment be entered in their favor and against Plaintiff on the Amended Complaint.. Respectfully submitted, Dated: January 21, 2003 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP By: Shahan G. Teberian, Esquire Ron L. Woodman, Esquire 260 S. Broad Street Philadelphia, PA 19102-5003 Attomeys For Defendants PHIL 1: 494680-1 VERIFICATION I, Ron L. Woodman, Esquire, state that I am the attorney of record for Keith Plasterer and Jamie Plasterer, and that I am authorized to make this verification and that the facts set forth in the foregoing document are true and correct to the best of my knowledge, information and belief. I make this verification because the defendants are unavailable. I acknowledge and understand that the statements made herein are made subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities. Ron L. Woodman, Esquire PHIL 1: 494680-1 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS LLP By: Shahan G. Teberian, Esquire/Ron L. Woodman, Esquire Identification Nos. 69407/88450 260 S. Broad Street Philadelphia, PA 19102-5003 telephone: (215) 568-6060 facsimile: (215) 568-6603 Attorneys for Defendants ORRSTOWN BANK Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER Defendants. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 2002-1877 CERTIFICATE OF SERVICE I, Ron L. Woodman, Esquire, hereby certify that on January 21, 2003, I caused a true and correct copy of the foregoing Defendant's Answer and New Matter to Amended Complaint, to be served by United States first-class mail, postage prepaid, upon the following: David A. Baric 17 West South Street Carlisle, PA 17013 Ron L. Woodman, Esquire PHIL 1: 494680-~ ORRSTOWN ]~ANK, Plaimiff, KEITH L. PLA: JAMIE L. PLA', ;TERER and ' ~TERER, ' Defendant ' · COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVNAIA · CIVIL ACTION-LAW NO. 2002-1877 NOW, SCHERER, an following: 12. through eleven 13. Defendants. 14. To the extent 15. To the extent 16. To the extent 17. To the extent 18. To the extent 19. REPLY TO NEW MATTER omes Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & files the within Reply to New Matter and, in support thereof, sets forth the 'laintiff incorporates by reference its averments .as set forth in paragraphs one of its Amended Complaim as though set forth at length. I)enied. To the contrary, Plaintiff has set forth viable claims against the This averment constitutes a conclusion of law to which no response is required. response may be required, the averment is denied. This averment constitutes a conclusion of law to which no response is required. · response may be required, the averment is denied. This averment constitutes a conclusion of law to which no response is required. response may be required, the averment is denied. These averments constitute a conclusion of law to which no response is required. t response may be required, the averments are denied. This averment constitutes a conclusion of law to which no response is required. response may be required, the averment is denied. This averment constitutes a conclusion of law to which no response is required. To the extent a J 20. To the extent a 21. proximate resu 22. recovery under 23. required. 24. costs. WHE1 accordance wil esponse may be required, the averment is denied.. 'his averment constitutes a conclusion of law to which no response is required. :esponse may be required, the averment is denied. )enied. To the contrary, the damages suffered by Plaintiff were the direct and of acts and omissions of the Defendants. )enied. To the contrary, Plaintiff has fulfilled all conditions precedent to the obligations entered into by the Defendants. )enied. To the contrary, Plaintiff has provided Defendants with all notices )enied. To the contrary, Plaintiff seeks to recovery reasonable legal fees and EFORE, Plaintiff requests judgment in its favor and against Defendants in the demand set forth in Plaintiff's Amended Complaint. Respectfully submitted, O'BRIEN, BARIC & SCHERER David A. Baric, Esquire ID#44853 17 West South Street Carlisle, PA 17013 (7117) 249-6873 Attorney for Orrstown Bank I verify and correct to David A. Bari, Plaintiff, as wt understand thal relating to unsx Dated: VERIFICATION that the statements made in the foregoing REPLY TO NEW MATTER are true he best of my knowledge, information and belief'. This verification is signed by Esquire, Attorney for Plaintiff and is based upon the statements provided by 11 as documents reviewed by the undersigned as attorney for Plaintiff. I false statements herein are made subject to penalties of 18 Pa.C.S. {}4904, ~'om falsifications to authoritie, s~j~ ,/,/,.~y/~ David A. Baric, Esquire ORRsToW~ BANK, Plaintiff' KEITH L. PL, JAMIE L. PL I hereb BARIC & SC] postage prepai{ dab.dir\orrstownba~ [STERER and kSTERER, his wife, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-18757 CIVIL TERM CERTIFICATE OF SERVICE certify that on January Z ~ ,2003, I, David .A. Baric, Esquire, of O'BRIEN, ERER, did serve a copy of the Reply to New Matter, by first class U.S. mail, 1, to the party listed below, as follows: Ron L. Woodman, Esquire Klehr, Harrison, Harvey, Branzberg & Ellers, LLP 260 South Broad Street Philadelphia, Pennsylvania 19102-.5003 O'BRIEN, BARIC AND SCHERER David A. Baric, Esquire 17 West South Street Carlisle, PA 17013 (7171) 2J49-6873 k\plasterer\orrstown.rep ORRSTOWN BANK, Plaintiff, KEITH L. PLASTERER and JAMIE L. PLASTERER, his wife, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-I 877 CIVIL TERM CIVIL ACTION-LAW REPLY TO PRE! JMINARY OBJECTIONS AND NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Reply to Preliminary Objections and, in support thereof, sets forth the following: 1. Admitted. length. DEMURRER Plaintiff incorporates by reference its answer to paragraph one as through set forth 3. This averment constitutes a conclusion of law to which no response is required. 4. The Complaint is a writing which speaks for itself and Defendants' characterization of the writing is denied. 5. Denied. To the contrary, the obligation of Defendants to pay the indebtedness accrued long before the filing of the instant action. 6. The Note is a writing which speaks for itself and Defendants' characterization of the writing is denied. 7. Denied. To the contrary, no exercise was necessary since the date for payment of the entire balance and all accrued interest had passed before filing of the instant action. Alternatively, the notice provided to Defendants by Plaintiff declared the amounts due and owing. 8. Denied. To the contrary, the Complaint sets forth facts sufficient to support a claim under the mortgage. WHEREFORE, Plaintiff requests that the preliminary objections of Defendants be denied, that Defendants be directed to file an answer to the complaint or, in the alternative, that Plaintiff be permitted leave to file an Amended Complaint. DEMURRER TO DEMAND FOR ATTORNEYS, FEE~; 9. Plaintiff incorporates by reference its answers to paragraphs one through nine as though set forth at length. 10. This averment constitutes a conclusion of law to which no response is required. 11. Admitted in part and denied in part. It is admitted that the Note provides for recovery of attorney fees by Plaintiff. The remaining averments are denied as stated. The Plaintiff seeks recovery of its reasonable attorney fees which, by decisional law of the Commonwealth, has been recognized as being five (5%) percent of the principal balance due. 12. Denied. Plaintiff incorporates by reference its answer to paragraph 11 as through set forth at length. 13. Denied. To the contrary, the Note and Mortgage provide for the recovery of reasonable attorney fees which are properly stated as a percentage of the principal balance due and owing. 14. Denied. To the contrary, the Note and Mortgage authorize recovery of reasonable attorney fees which are properly stated as a percentage of the principal balance due and owing. 15. Denied. To the contrary, Plaintiffhas stated a claim for attorney fees as a percentage of the principal balance due and owing. WHEREFORE, Plaintiff requests that the preliminary objections of Defendants be denied, that Defendants be directed to file an answer to the complaint or, in the alternative, that Plaintiff be permitted leave to file an Amended Complaint. Respectfully submitted, ~ ~~EN, BARIC & SCHFJ~ David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff dab'dir/orrstownbank/plasterer/preliminaryobjection.rep CERTIFICATE OF SERVICE I hereby certify that on July..~ / , 2003, I, David A. Baric, Esquire, of O'Brien, Baric & Scherer, did serve a copy of the Reply To Preliminary Objections, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Ron L. Woodman, Esquire Klehr, Harrison, Harvey, Branzberg & Ellers, LLP 260 South Broad Street Philadelphia, Pennsylvania 19102-5003 David A. Baric, Esquire