UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW HAMPSHIRE

Inre: )

) Chapter 13

STEPHEN A. DOUCETTE, ) Case No, 13-10915-JMD

)

Debtor, )

TD BANK, N.A., ) Hearing Scheduled:

) May2l,2013

Movant, ) 9:00 a.m.

)

v. ) Objections Due:

) Mayl4,2013

STEPHEN A. DOUCETTE, Debtor, )

and )

)

ELIZABETH S. DOUCETTE, Codebtor, )

)

and )

)

LAWRENCE P. SUMSKI, ESQ., Trustee, )

)

Respondents. )

TD BANK, N.A.’S MOTION TO DISMISS OR, IN THE ALTERNATIVE, FOR RELIEF

FROM AUTOMATIC AND CODEBTOR STAYS

NOW COMES TD Bank, N.A. (the “Bank”), by and through its counsel undersigned and,

pursuant to 11 U.S.C. §S 105, 362, 521, 1307, 1322, and 1325, Federal Rules of Bankruptcy

Procedure 9013 and 9014, and LBR 4001-1 and 7101, hereby seeks the dismissal of this Chapter

13 case or, in the alternative, an Order granting the Bank relief from the operation of the

automatic and codebtor stays with respect to the Property (as defined below), pursuant to 11

U.S.C. § 362(d) and 130 1(c), and as grounds therefor states as follows,

PO3O8377

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 1 of 21
I. Jurisdiction and Venue

1. The Court has jurisdiction over the Motion pursuant to 28 U.S.C. § 1334. This is

a core proceeding pursuant to 28 U S C § 57(b)(2)() (G) (I ) and (0) Venue is ploper

before this Court pursuant to 28 U.S.C. § 1409(a).

II. Background

2. On April 5, 2013 (the “Filing Date”), Debtor file an original voluntary petition

under El U.S.C. Chapter 13 of the United States Code (the “Code”).

3. Property of the estate includes a certain parcel of property located at 6 Katie Lane.

l-Iampstead, NH 03841 (the ‘Property”).

4. The Bank is a creditor of Debtor and Debtor’s estate, possessing a secured claim

in the amount of $59,152.77, plus accruing interest, costs, expenses, and fees.

5. On July 18, 2002, I)ebtor and Elizabeth S. Doucette (“Codebtor”) executed and

delivered to Banknorth, N.A. C’BN”) a certain Home Equity Line of Credit Agreement and

Disclosure Statement with a credit limit in the amount of $50,000 (the ‘Note”), a true copy of

which is attached hereto as Exhibit A.

6. To secure the Note, Debtor and Codebtor executed and delivered to BN, a certain

Home Equity Line Mortgage Deed (the “Mortgage’), which Mortgage is recorded in the

Rockingham County Registry of Deeds in Book 3805, Page 2026, and a true copy of which is

attached hereto as Exhibit B.

7. The Bank is the successor in interest to BN, and is the holder of the Note and the

Mortgage.

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 2 of 21
A. The 2011 Case

8. On April 14, 2011, Debtor filed an original Voluntary Petition under Chapter 13

of the Code, commencing Case No. 1 1-1 1500-JMD in this Court (the “2011 Case”).

9. Prior to the filing of the 2011 Case, the Bank had issued a Notice of Auction with

respect to the Property scheduled for October 22, 2010, which auction was rescheduled a number

of times due to Debtor’s conduct. The last rescheduled Notice of Auction was issued on March

24, 2011, setting an auction date of April 13, 2011.

10. Upon receipt of notice that Debtor had commenced the 2011 Case, the Bank

cancelled the auction.

11. In the 201 1 Case, Debtor failed to file his Schedules, Means Test, Attorney

Disclosure Statement, Summary of Schedules, Statistical Summary of Certain Liabilities,

Verified Statement Regarding Matrix, Notice to Consumer Credit Counseling form, and Chapter

13 Plan (the “2011 Required Filings”). In spite of filing two motions to extend the deadline to

file the 2011 Required Filings, which Motions were granted, Debtor never filed the 2011

Required Filings.

12. Debtor voluntarily dismissed the 2011 Case on May 23, 2011.

13. The Bank then once again attempted to proceed with its auction sale of the

Property. In the interim, Debtor and Codebtor sought a modification of the Note, but those

efforts failed, and the Bank sought to proceed with its auction of the Property.

B. The January 2013 Case

14. On January 23, 2013, Debtor filed his second original Voluntary Petition under

Chapter 13 of the Code, commencing Case No. 13-10146-JMD in this Court (the “January 2013

Case”).

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 3 of 21
15. Debtor did not initially file his Schedules. Statements, or proposed Plan (the

‘2013 Required Filings”), and he again requested an extension of time to file the 2013 Required

Filings, which was granted. The 2013 Required Filings were due to be filed by February 24,

2013. The 2013 Required Filings were never filed.

16. On March 11, 2013, this Court entered an Order dismissing the January 2013

Case based on Debtor’s failure to file the 2013 Required Filings.

17. Thereafter the Bank, on March 19, 2013. issued another notice that an auction sale

was scheduled for April 5, 2013.

18. The April 5, 2013 auction then continued to April 8, 2013.

19. On April 3, 2013, the Bank received an email from Debtor requesting a further

continuance of the auction sale of the Property. Debtor’s email stated as follows: T do not want

to re[fileJ the bankruptcy 7 or have my wife file 1 3 bu[tj I will if it is the only way to delay sale

while I continue working on other[] alternatives.” A true copy of the email from Debtor to

Bank’s counsel is attached hereto as Exhibit C. Debtor did not state what other alternatives” he

was working on.

C. The April 2013 Case

20. On the Filing Date (April 5, 2013), one business day befire the I3ank’s scheduled

auction sale ofthe Property. Debtor commenced this case, his third in less than two years.

21. Again, Debtor has not filed his Schedules, Statements or Plan. Pursuant to

Federal Rule of Bankruptcy Procedure 1007, the Schedules, Statements, and Plan are due April

19, 2013.

-4-

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 4 of 21
The Note and Mortgage

Debtor and Codebtor are in default of their obligations to the Bank under the Note

and Mortgage.

23. The current monthly payment amount due under the Note varies. As of April 8,

2013, the total payment arrearage under the Note was $7,773.59. That arrearage consists of the

following past due payments:

(i) Prepetition — October 2012 through March 2013.

24. As of April 8, 2013, the total amount due under the Note was $59,152.77

(consisting of: principal — $49,838.93; accrued interest — $4,638.54; late charges — $447.56;

Payoff— $42.00; and fees assessed — $4l95,74).’

25. The Bank estimates the fair market value of the Property to be $256,000.

26. The Bank is unaware of any other existing liens or encumbrances on the Property,

except for a first priority mortgage held by JPMorgan Chase Bank, N.A.

III. Discussion

A. Motion to Dismiss

27, Debtor’s case has been filed in bad faith and it should be dismissed pursuant to §

1307(c) of the Code. Pursuant to § 1325(a)(7) of the Code, Debtor’s filing of his petition must

be in good faith. “There are two separate and distinct tranches of good faith in Chapter 13 cases.

The debtor must both have filed the Chapter 13 case in good faith and proposed the Chapter 13

plan in good faith.” In re Torres Martinez, 397 B.R. 158, 165166 (B.A.P. 1st Cir. 2008).

28. “Cause’ is not specifically defined by the Bankruptcy Code, but filing a petition

with a lack of good faith may constitutes sufficient ‘cause’ under Section 1307(c) to either

I Plus all allowable and accruing interest, costs, and expenses due under the Note,

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 5 of 21
convert or dismiss a case.” In re Spaulding, 2005 Bankr. LEXIS 3190, *12 (Bankr. M.D.N.C,

2005) (citation omitted).

The obligation of good faith is imposed on the debtor at two stages of a Chapter

13 proceeding. First, the debtor must file her Chapter 13 petition in good faith.

Second, the debtor must file her Chapter 13 plan in good faith... The term “good

faith” is not defined, and, therefore, the good faith inquiry is a “fact intensive

determination better left to the discretion of the bankruptcy court.” Courts differ

in their approach in determining a debtor’s good faith, but the majority favor a

totality of the circumstances analysis.

In re Cabral, 285 B.R, 563, 572 (B,A.P. 1st Cir, 2002); see also In re Tuily, 818 F.2d 106, 110

(1st Cir. 1987) (totality of circumstances for bad faith analysis includes “debtor’s history of

filings and dismissals.”).

29. Debtor has made it clear that he intends to use the Code and bankruptcy generally

to stall again the Bank’s efforts to exercise its appropriate state law rights and remedies with

respect to the Property. As Debtor stated in his email to the Bank, he is simply using the

bankruptcy process to prevent the foreclosure but without any actual plan to otherwise meet his

obligations as a Debtor under the Code. See Exhibit C (“I do not want to re[file] the bankruptcy

7 or have my wife file 13 bu[t] I will if it is the only way to delay sale while I continue working

on other[] alternatives.”). Debtor’s email further indicates his willingness to use Codebtor as the

filing party to further delay the auction sale of the Property and to prevent the Bank from

exercising its state law rights regarding the Property.

30. In addition, Debtor’s failures to meet his filing requirements in the 2011 Case and

the January 2013 Case demonstrate his lack of seriousness in adhering to necessary and required

filings under the Code, and he is on track to do the same thing in this case. Debtor again filed a

skeleton petition without Schedules, Statements or a Plan. Due to Debtor’s conduct in again not

-6-

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 6 of 21
pursuing this case as a responsible debtor, compounded by his acting in the identical manner in

the 2011 Case and the January 2013 Case, the Bank submits that this case was filed in bad faith.

31. Because Debtor’s filing is in bad faith, he will not be able to confirm a plan, and

the case should be dismissed under §1307(c)(3) or (5).

B. The Bank Is Entitled to Relief from Stay and/or In Rem Relief

32. Alternatively, should the Court conclude or refrain from ruling on the Bank’s

request that the case be dismissed, the Bank requests the alternative relief of an Order granting

the Bank relief from the operation of the automatic and codebtor stays to proceed with the

auction sale of the Property. The Bank asserts that all the facts and circumstances giving rise to

cause for the dismissal of the case also constitute “cause” within the meaning of 362(d) of the

Code for the granting of the Bank from relief from the automatic stay.

33, Specifically:

(i) The Bank’s interest in the Property is not adequately protected. See 11 U.S.C. §

362(d)(1);

(ii) the Property is of no or inconsequential value to the estate. See 11 U.S.C. §

362(d)(2);

(iii) the non-payment of current amounts due on a timely and regular basis

pursuant to the terms of the Note constitutes “cause” in a Chapter 13

proceeding for relief from the automatic stay pursuant to § 362(d)(l) of

the Code; and

(iv) bad faith filing constitutes “cause” for relief from the automatic and

codebtor stays under § 362 and 1301 of the Code.

34. Further, due to the facts and circumstances described above, the Bank’s interest in

the Property would be irreparably harmed by continuation of the codebtor stay provided by 11

U.S.C § 130 1(a) and, therefore, this Court should grant the Bank relief from the codebtor stay to

collect all or any part of Debtor’s and Codebtor’s obligations to the Bank from Codebtor.

pursuant to 11 U.S.C. § 1301(c)(3).

-7-

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 7 of 21
35. Finally, the Bank asserts that the facts and circumstances of this case warrant in

rem relief pursuant to § 362(d)(4) of the Code. in re Gon;a/e-Ruiz, 341 B.R. 371, 384 (B.A.P.

1 st Cir. 2006) (“An order granting in rem relief from stay is an appropriate remedy when a

debtor or transferee of a debtor serially files bankruptcy petitions solely to invoke the automatic

stay.”) Here, Debtor has indicated that he is filing solely to stall the foreclosure on the property,

with indication that he would use Codebtor to file for the same purpose. Accordingly, in rem

relief is warranted.

36. Pursuant to LBR 7 102(d), Bank’s counsel states that he has made a good faith

attempt to obtain concurrence in the relief sought, and that he could not determine whether the

I)ebtor consents to the relief requested in the Motion. Bank’s counsel has not contacted

Codebtor.

37. As the Chapter 13 Trustee filed a Motion to Dismiss, the Bank believes that the

Trustee would support either dismissal or relief from the automatic and codebtor stays in this

instance.

IV. Conclusion

WHEREFORE. Secured Creditor. TD Bank, N.A.. requests that the Court: (i) order that

Debtor’s Chapter 1 3 case be dismissed or. alternatively grant the Bank relief from the operation

of the automatic and codebtor stays with respect to the Property; and (ii) grant the Bank such

other and further relief as is just and appropriate under the circumstances,

Dated at Portland. Maine this 16th day of April, 2013.

/5// Anthony J. Manhart

Anthony J. Manhart, Esq.

Counsel for creditor.

TD Bank, N.A.

-8-

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 8 of 21
Perkins Thompson, P.A.

One Canal Plaza, P0 Box 426

Portland, ME 041 12-0426

(207) 774-2635

-9-

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 9 of 21
EXHIBIT

I3anknorUi 1N.1. A

HOME EQUITY LJNE OF CREDIT AGREEMENT AN!) l)ISCLOSUT{E STA1 EMENT

Date July 1, 2002 Accaut N. 9467

hi tn Line ofCrdiL Arjnejd and [)sc!osure, the sods you , your” and tI Bnk rir

3anknorth NA with an otfice at 10 Main Street Route 121, Kampste3 H

The oids nie” nd bQ[fQvcr incn

Sephn A Doucee ol 6 Kat4e Lane, Hampstead, NH 03841

1lizabeth S Doucet;e of 6 Katie LaneS Hampstead, UN 03841

I PROMISE TO PAY, I prornisc to pay the sank all sums of money borrowed under hs Agreement, plus finance charges, aiid

ally other charges I ani required o pay u8cfcr this Agrcentenl or under (hc Mortgagc Dcvd (Moflgagc’) 5ecuring the loans niade

undcr iIis Agicernoit. Repayrnen iIt b as described betow. If I fail lo comply sih any pai’ of this Agreement or Morigago. but

ihc Etank aflons inc to couect my failure to cornpt3 or to continue to borrow and repay under the agrecinein, t cannot claim tho

Bank has givcn up the right to require mc to comply in the future This s a vaiiabte rato credit agreeiuciit, and the finance charges

I ivilt pay will change accvrdhig to the terms desesibed below.

2 SECURITY. All loans made to nie under this Agreement and my performance ofall ofiny obligations under this Agreement

arcsecuredbyaMortgagedaled July 18, 2002 toberecordcdinthc nockingham County Re$intry of Deedu

Land RecordonrealestatolOcatcdat Koele Lane, Harnpatead NH 03841 . Jnuuranee

on lhc ieal estate is required by tle Mortgage and may be obtained from anyone I choose vtio is reasonably acceptable to you.

3, L()AliS. You wilt provide inc with special checks (Equity Linc Cheetis) that may be used to obtain advances (Loans). I may

obtain Loans as long as suCt) advances do ilat cause ny loaii balance to exceed my Credit Limit. I can obtain loans by lining an

Equity Line Check Additionally, tim Dank may elect to provide an advance at my request. Such requests must be made direelly

with the hank and if the request is approved. the proceeds will be provided directly to me either as a deposit to my areouni svdli the

lank, or in the form elan official hank check, orother disbursement method that you approve You may elect not to honor any

check you receive which is postdated or which is dated inure than si months prior to the date the ehck is presented to you. If

you honor such checks, at your sok discretion, I agree that scott checks shall be considered an advance. You may also lend inc

money in ilie sante way for any fees or charges due undcr (his Agreement. There is no minimum loan amount.

4. CREDIT LIMIT My credit limit is the niaxirnuni amount of money you will make available to inc under this Agreement that

will be outstanding at any time. My Credit Limit is $so, 000 00 1 wilt not let nit unpaid balance go over my Credit Lnnit,

If 1 reach my limit the Bank need not advance me any more money ahd lhc Bank may return or elect to pay any items

if I exceed my credit limiL, an overlimit fee of $2500 wifl be charged.

5. FINANCE C1IARGES If you inuRe any loans to me, I will pay a finance charge based ott the computation method described

in this paragraph. The FINANCE CHARGE begins to be charged on the date of each new loan and continues until paid in full.

fhe finance charge will be calculated by mullipl>lng tIre Average Daily Balance times tire daily periodic rate titan multiplying the

result by the number of days its the billing cycle. Ttw initial daily periodic rate suit be 013033% TIre daily periodic rule is

1/365th of the ANNUAL PERCENTAGE RATE (APR). The initial ANNUAL PERCENTAGE RATE tinder thus Agreement is

4 .750% TIre Annual Poscentage rate includes only interest and no other costs. The average daily balance is computed by adding

together each days ending balance during the billing cycle including new loans and fcerr or chargera arid subfracting

any unpaid finance charges, payments and credits, Then you divide the total by the number of days

in the billing cycle. This gives the Average risily Salance,

6. ADJUSTMENTS TO APR AND LIMITS ON ChANGES, The Annual Percentage Rate (‘APR’) is subject to change erich

billing cycle wiihot limit excepl that it sedl not go above 18%. My APR will be adjusted each billing

cycle to art annual rate equal to 000% (“Margin’) added to th highest domestic Prime

Rato cc published In The Wall Street Journal on, or Ira effect oct the firat day of each

billing cycle for this account (“Index’l. Any change in my APR will take effect on th

fit day of the hilling cycle. The new APR wilL be applied an the then current billing

oycle’u average doily balance. Changes in the APR warranted by a change in the lndex will

be automatic

The Bank will not send me notice of a new APR except on my neXt statement on my regular billing date. If tire APR increases, tIm

Finance Charge and irronibly payment on the same balance iedl be higher. Howover, an increase may be foregone at the Bank’s

ophion. If tire batik foregoes an APR increase, the Bank may increase the APR at a later change dato.

7. UNAVAILABILITY OF INDEX. if for any reason the Index is temporarily unavailable, the APR on my line will remain

fixed for up to 30 days at ttu into set at tire last adjuatrnent, but only until tire Index is available again. If 11w Index bvconrtcs

unavailable for 30 days or more, a new index and if necessary, a new margin, substantially similar to the discontinued one will be

designated by you.

S DRAW PERIOD, REPAYMENT PEIUOI) AND MINIMUM PAYMENTS. During tire ‘Draw Period’, I cart obtain hearts

up to iii> Credit Linril until the Draw Period terminates. The Draw Period is for five (5) years. The Batik nra>’, iii its sole

discretion, rooms’ my rights to get loans under this Agreement itt lire end of tire Draw Period for an additional tivo (5) year period

(“Renewal Draw Period”.) 1 will have it Renewal Draw Period untess thro batik noiihicu rite in wtitirtg that my Drnrus Period has

tertrtiitatcd arid will ttot be renewed During tire Draw [‘cried and 11w Reitervat Draw Period, I must repay the loans utider this

Agreement by tnaktng an least the intininrurm rttonttthy payment. ill pay at least the itrininrurti prrymctut to later than tltc dale strewn

on the last sirrietutent as the nexi “pa>mnent due dale”. All payments ijhi be applied first to interest artd Itren to other auttourits owed

and finally to principal. The minimnunt payrtierut sulil be tire tittered accrued on rite principal balance of tire loan or $25.00,

whichever is larger, plus atm>’ credit life insurartce prctmaiuttt I may owe, plus may autrounit you haue loaned raw over my Credit Litmtil,

if tray non’ balance is less than the rninirmauttt pa>nnenrt atnerint, I’ll pay the ness’ balance. ,..

L1,e ,,( CrdJriCj,,i,,,, S.g, i ,( S

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 10 of 21
understand iiat he rninnurrt payment iiay nct feduce he principal hat s ou(standmg on ty line oleredit. If I do not make my

flhIfljflI)lt1 nonchIy p-viic, i s possblc hat negalive ariorto’ It recult. Ncgaii’e il[ ricrease hc auioiii

iha owe yo nd cducc EIY In my home

Alter the Diav Period nd RcecwaI Drav Icriod ends, I wHI no bouger be abbe lo obtain boais under this Agreement arid I imsi

rcpay thie outstanding h)ance. This is called the Repayment Period. I iliust repay to you all aiTlounis I owe uttdcr t)is

Agrccrncnt no hater than (en (10) years from the start of the Repayment Period. During he Repayment Period, my niinhnunt

monthly payments vhhh be equal to thie sum oI(i) the greater of$50OO or /120 ofihc ouistanding principal balance at the start of

the Repayment Period plus (Ib) the finance charges hhat have accrued on (he outsandng principal ba’ance phis (iii) arty credit Hfe

iTtStlraIlCC preiniutil I may owe. If I do not niahce my nsinenum monthly paymeM, it is pos.sihhe that “ negative amorhizotion” wfll

result.

I have the right to pay offihic ness balance in full or in part iii any tinie bcfor it is due ssithovl penalty.

9 O1’IIER CHARGES. I agree to pay the fottowing charges,

Recording Fees S TitlOptnion or Insurance TitteCheck S.

Appmisal S.______ Document Preparation S___ Mortgage Tax S

it CREDIT LIFE hNSIJI{ANCE, I am not required to buy credit fife insurance to obtain credh. If I want this probecton, 1

must be acceptable to the flanks iriserer, and I must sign the necessaiy application for insurance and agree to pay tlte prcitiitttit

The maximum coverage irow available is $00, 000 .00 regardless of my maxiniurn Credit Limit, but the maximuttt coverage

avaitable tray change from little to time and 1 agree that you irtay increase or decrease toy coverage to mccl such nraxirrtuins. I will

pay an insurance charge computed by applying lire 12/365 of monthly rate, as described in the credit life insurance application, per

$1,000 of the Average Daily litrltmce of the loan for the billing cycle trues the number of days in the bitting cycle, This rate is

subicci to change from time to lime upon changes imposed by tire insurer and I agree to pay such changed rates. I nay tcnttinalc

credit life insurance coverage by notice to you in writing.

II ASSUMPTION. My Borne Equity Line of Credit and Mortgage may not bassunrcd by a purchaser of my home.

12. DEFAULT. 1 will bc in default:

(A.) if I don’t make a nrinirnrrm payment when due, or don’t pay any balance over my Credit Limit when due;

(B.) if I engage iii fraud or material rnisreprcscnbatiort in connection haIti this Agreement;

(C.) ill convey rho property securing this Agreentent or otherwise act or fail to act in a way that adversely affects yorn mortgage or

your rights in the property;

(D.) if I (as sole borrower(s) obligated tinder this agrccreemtt) die;

(IL) if I become insolvent, or go into bankruptcy;

(F.) if I viotatc any part of this Agreement or Mortgage;

(0.) ill violate army material terms of a mortgage given as security for this Agreement; or

(H.) if in your reasonable judgement determine that my prospect of repaying the loans is significantly impaired by a tnaterial

change in may financial condition.

A default by any one Borrower will be considered a default by all Borrowers. If I sun in default under A., IT, C., or 0. above, the

Bank con ternrinate this Agreement, cart refuse to issue me additional loans under this Agreement and cart drnand payment of the

total amount owed under this Agreement after giving me any notice required by law. Ill am iii default under A., B., C., or 0, of

the above, the Bank may suspend my right to additional loans or reduce may Credit Limit. Even if, at a time when I ant iii default,

the Bank does not refuse to issue me additional loans or require rae to pay immediately in full, the Bank will still have the right icr

do so if 1mm in default at a later time. I understand that a default under this Agreement will also be a default under rite Mortgage I

agree to pay all of ‘our reasonable attorney’s fees, legal expenses, and othcr reasonable costs incrtrred in foreclosing or otherwise

realizing on the real estate securing my obligations under this Agmecirment after a default.

I 3.SUSPENSION. The Bank ntay suspettd my right to additional loans or reduce my Credit Limit:

(A> Upon ray writtcn request or that of arty joint l3orrosve

(13) If the value of the dwelling securing this Agreement and Mortgage declines significantly below its appraised value.

(C) If a regulatory agency has notified you that contimred loans would constitute an unsafe and unsound practice

(0) lf the Annual Percentage Rate reaches 11w maximum rate;

(F) If) violate any matcriai brats of Ibis Agreement;

(F) If in your reasonable judgemneirt determine that my prospect of repaying tire loans ts significantly impaired by a rrtaterial

chairge in nay financial condition;

(0) If you are precluded by government action from imposing tl Annual Percenisage Rate agreed to;

(H) If tire goverrrmnemrt action adversely afticts your security interest so that its value is less than 120% of my credit line.

You will notify me itt writing if you take arty action under this paragraph. If the event causing the suspension under this

Paragraph Is no longer applicable, I ttray request in writing tital you reinstate my credit privileges, If I request reinstatement of trty

credit privileges, all borrosrems must make or affirm cite request

t4.TEttMINATION. The Bank rutty terminate this Agreement as provided in Paragraph 12. I may terrilitrato this Agreement by

notifying you in writing. Alter the Agreement is terminated, I mast repay all tIre princitial balance, accrued interest pius airy sitter

aunts I owe to tIre Batik under this Agreement in one lump sum payment to the Bank. Any joint Borrower ntay terrtrirrate t1r

Agreement as provided.

15.1330111’ OF SUTOFF. If any part or all of may line is past due and I fail to pay you as agreed, you may to tlao extent permitted

by last’, without prior notice, take the amount owed to you of any accounts blast I may have with you.

;, t)

rX,o of roai,/oJ,,,1,.,’t, r’. ,,f •

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 11 of 21
I6 C}1AGE OF TERMS You may noL change any terms ofihis Agrecment mitess t agree n writing at the time c.zcepi:

(A.) the substiiuon ola new index as provüied in Paragraph 7;

(B.) insignificant changes to tents, oi changes that wl1 unequivocalty benefit mc for the rcninder of ihe term of my Hie;

(C) tenmotc or suspend additional ons or reduco my Credh Lniit under crtahi circumstances as providcd in ParagrpIis 12

ind 13;

(Dj) changosihe Annual Petcentago Ratebased on the Index asdescribed iti Paragraph 6; or

(17) chaliges in the inimoin insurance coverage available an1 changcs n credI insurance rates as provided n Paragraph 10.

You will provide me ah all no1ces ofany changes as requiTed by applicable law.

17. BAKS VA1VEB. If I have given a security inlrCS1 in real or personal property or securilics 10 the l3aiik, other than Ihe

uorIgage described n Paiagraph 2 under atty agreement that says Ilie property or securie may se-cure other 1oan, the Bauk

waives its rglit to apply such properly or wcurilics against money which I owe under Ibis Agrcemet1 This does not waive ay

right of set-olr you may have against any accounts I have with you.

1k TAX IflOUCTIBILITY. I should consult a lax advisor regarding the deductibility ofinEerest and hargu Iór this luau.

1k NOTICES Any notice you send me vil1 bu considered eWociivc shen it is delivcrcd personally 10 trio or mailed, poslagc

paid. 10 the 1as4 address you have fvr rue iu your records. Nulice from tue sil1 be considured effective when you reccivo 11 in

writ lug ul the address showii on my statement. If this is ajoint accounl, you ca nolif one of us and the nolicu wit) be effective for

both of us. Ako, one of us can notify you and you i11 consider it to be notice from all of us

20 TillS IiOT1CE CONTAINS 111PORTANT iNFORMATION MJOUT MY RKIITS AND YOUR

RESPONSIBHJTIES UNDER TIlE FAIR CREDIT BILLiNG ACT I lI notify the Banl< in ease oferrors or questions aboul

my bill. If I lhink my bill is wrong. or ill need more information about a transaction on my bills I will wrile Ike Uank as soon as

possible. The Bank must Itear from me no later than 60 days after the Bank sent me the first bill on which th error or problem

appeais. I can tclephone the Bank, but doing so will not preserve my rights. In ray Iettcr 1 will give the Bank the following

information: (1.) my name and account number; (2.) the dollar amount of the suspected error; and (3.) a doscriplion of the error

and an epIanation, ir I can, or why I believe there is an error. If I need more information, I will dosoribo the Item I am not cure

about.

MY RIGHTS AND TIlE BANK’S RESPONSIBILITIES AFTER THE 13ANK RICEIVES MY WRITTEN NOTICE The

Bank must acknowledge my letter within 30 days, unless the Bank has corrected lIre error by then, Within 90 days, lie Bank must

either correct the error or explain why it believes the bill was correct. Alter the Bank receives my letter, it cannot try to collect arty

amount I question or report rue as delinqucnt The Bank can continue to bill me for the anrourit I question, inclrrstirrg ftnnncc

charges, and the Bank can apply any unpaid amount against my Credit Limit, I do not have to pay any questioned amourtl whilo

the Bank is investigating, but I am still obligated to pay the parts of my bill that are not irs question. If the Bank finds that it made

a mistake on my bill, I will not have to pay any finance charges related to arty questioned arnourrl. If the Bank didn’t riralce a

mistake, I may have 10 pay finance charges, and I wit! trave to make up any missed payments on th questioned anrourit. In either

case, the Barth will send rite a statement of the amount I owe and the dare that it is due. If I fail to pay the arnorrnl that the Bank

thinks I owe, tire Bank trray report tire as delinqucrrr. However, if lire flank’s explanation does not satisfy nrc and I write to tIre

Bank within 10 days telling the Hank that I still refuse to pay, the Barth trrusl tell anyone it reports rim to tlrat I have a question

about my bill, Arid, the Bank must tell nrc the narrne of anyone it reported rrrc to The Bank rurrsl tell anyorre II reports rrie to tIer

the rmitrcr has been settled between us when it finally is. If the Bank doesn’t follow these rules, it can’t coltecl tIre first $50 of tIre

questioned artrotrrit, even if riry bill was correct.

SEND INQUIRIES TO: BANK OPERATIONS CENTER P0. BOX 4900 LEWISTON, MB 042434900

21, EACH SIGNER LIABLE, Althougir this Agreement may be signed by more Ihan one person, I understand tlrat I, as an

individual, am responsible for paying back the entire amourri owed urtder this Agreement. You may take direct legal action against

are even tlrcugtr I imuty snot have received arty direct personal benefil from the loan. Alt pcrsorrs who sign this Agreement are cmrtitled to a copy of the Agreement.

22. Equity Checker I authorize and agree that the Bank reill not send the original or copiers of

actual, original access chucks drawn on the Line of Credit to me, I may request a Copy o a check

by wcitincj to Bank Operatlonre tlepartment, Loan Research, t’,O, Box 1177, LewIston Sill O424l1377 or

by calling l8002al.O025, extension 4335, Ho fee will be charged to rae for first requested copy

of a check, Alt additional copies of the chock will be at a fee of $2.00 per copy

23. ACCOUNT RESEARCH, If I request your assistance in researching issues pertaining to this account,

or in reconciliation of this account, I will be charged a research fee at a rate of $25.00 per hour, with

a minimairn charge of $10, for the circe you spend assisting me eric! researching the account. I may also be

charged $200 fof each photocopy of a document that I request. If I have a billing error inns discussed

in Barograph 20 above, I will not be charged a research tee or photocopy foe,

24 l,ATE PAYNBIrI FRFO. If I fall to pay the minimum payment duo at the mailing riddrees shown on any

statement on or before the fifteenth 115th) day following the payment due date, I may be charged a tate

fee equal to S’s of the cinirirna payment due ThIs ctsarge will be debited to my account automatically

nd itemized on ray statement without further notice to me.

25. STOP PAYMENT AND DISHONORED CHECK FEES. Should I request a atop payment on any equity checks

or should any checks or other means of pisyrmamint received and applied to my account be returned Co the

Bank for insufficient funds or some reason, the hank may elect to debit my account any fees or charges

due. The fern for stop payment is $22 per equity check and the fee for each dishonored payment check is $25.

26. NOTICE OF ADDITIONAL ENCUMBRANCE. I will notify you irs writing if any other mrortgage, lien,

nsttach’nent, lie pendenem, legal proceeding, adjudication against the property securing this Agreement or

any other encumbrance Se recorded on the land records that did not exist on the dote of chic Agreement.

I undesretanld and agree that you may terrninmete thins Agreement upon your receipt of curds notice from we or

any other percy, and upon termination, 1 must repay the principal balance, accrued interest plus any

other rums I owe to the Bank under Chic Agreement in One lump sum r’ayment to the ameR.

Lir,, ,,f r,rant/cm,rr 5am’ 3 a! I

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 12 of 21
27. EARflY RMflOA’rrON FEE, A $35000 early termination fee wifl be charged if 1 close my

account on or before the third anniversary of the date that the line was opened

29, (;rrrning Law. Applicuble federal law and the laws of the Conimoneraith or Slate of New tiampahi to govern

this Agreetneril including the rate of irtlerest and fees.

30, Cost of Collection, Where pennitted by applicable law, I agree to pay reasonable espdnses, including attorneys’ fees, lrtcrtrred by

you in realizing on any collateral or in enforcing your rights under this Security Agreement, arid the Mortgage

ou have the right to collect attorney’s fees, if you prevail.

I acknowledge receipt of this completed Agreement.

Witness the eseculion hereof under seal as of the day arid Use year first above written.

Wiuress

(J BànowerS tophen A

Wittiess

\) Borrower: izabeth S oucette

Witness

Witness

Borrower:

rmr f Pça { ,f I

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 13 of 21
BK 3805 P 202 6

processed by

DEC 0 6 202

COLLATERAL

8nnknorfh, N,, LW 8 9467

HOME EQUITY LNE MORTGAOE DEED

Morigagedatedniof July 18, 2002

trout

Stephen A Ocucette t’Mortgaor’ or “Ilorrower’t of 6 Katie Lane, Hempetoad, NIt 03841

Etizabøth S Deucette C’tiortgo9or” or “t3orrowor) of 6 Katie Lane, Hampetood NH 03841

fo taanknorth, NA, (the ‘Lender’)

with an office at 10 Item Street, Route 121, Hampatead, NIt 03041

If’,

I: Tb a

If)

I, RevolvIng CredIt The Lender has agreed to make loans and future advances (and readvances) from time to time to the

Borrower in so aggregate principal wnouait at any one (lure outstanding not exceeding S 50 000. 0(5 (the “Credit Limit’).

Tire loans are evidenced by and repayable with interest irs accordance with a duly authorized stud cecuted Equity Line of

Credit Agreement msd DIsclosure Statement by the Ilosrowei delivered to tire Lender us of the date hereofrind any arneitrtmcnta

thereto and refttsaneeu thereof subsequetrt to date hereof (collectively ‘the Agreement’), ‘lire interest rate in a variable tate

based upon art index desetibed in the Agreement

2. Tvrmtnatiorr, The Borrov,er’s right to burrow rsnder the Agreement ssitl terminate in the manner set forTh in the

Agreement.

3. Defaults. ‘the occaerenre of any of the following events shalt constitutc a default under this mortgage (each herein catted

on luveat of Detisatt):

(a) The Borrower engages in fraud or motorist misrepresentation in connection bath the Borrower’s application for or tIre

Borrower’s ate ofthe Credit line under the Agreentent

(b) Arty Borrower does not meet repayment terms of the Agreement.

(c) Ant’ Borrower’s aettorm or inaction edveraely aFfects the Property subject to this Mortgage or (ho lender’s rights in that

Property, inelurtimrg but not limited to a transfer of the Property not pennitted by this Mortgage, or the Borrower’s

failure Ii) tnraintain requited insurance on the Property, or the Borrower’s failure to pay applicable rest estate taxes on

the Property

(ci) Any Borrower dies.

(e) Any Borrower becomes insolvent, or goon into bankruptcy,

(F) Any Borrower violates any part of the Agreement.

(g) Arty Borrower violates any material tenna of Uris mrrortgrmge

(In) Any Botroawr’s prospect for repaying the loans is irs time Lendrrs reasonable judgment ‘igniftrantty impaired by

mirtetint change irs firsrarseiat condition

4, Remnrdtrn. If thu Borrower is itt default under (a), (b), (e) or (d) of panagropti 3. shore, the Lender atom temmmtisatO the

Agacennettt, cart refuse to issue tire Borrower udditronul toasts under the Agreement and cans dentuird payment of the tntul

amnourtt owed under the Agreement after giving the harrower any notice required by law, If Otto Borrower is in default under

any of the above, the Leader may suspend the Borrower’s right to draw additional advances until the default is cured Harrower

mrttm twtifv hamster wtnerr rlfasttt is cured. Crest if, at a time triren tie Borrower is its default, the Lauder does not refuse to

issue the harrower additiottnl loans or require the Borrower to pay inssmsediately its full, the Lender witt still have the right to do

so it’ the Iioreower is in defuott at a later time, tf, triter receiving notices required by the applicable I”edorat trod State laws,

Borrower does not cute arty defaults, lender may foreclose apart the property. The Lender ntay exercise a right of asto(T

ngairtst on>’ accounts or other funds held by the l,entter, The Borrower agrees to pay all of Lender’s reasonable attorney’s fees,

legal mrxpettses, and other reasonable costs incurred irs foreclosing or otherwise realizing on tIme real estate securing tIre

Borrower’a obligations tinder the Agreement after ci default,

5. (4aticcr, Any notice Lender sends hlorrossmr suit) be considered eFfective when it is delivered personally to llnrortwcr or

mmrailed, prsstrsgc 1said, to time last address lender has foe Borrower in its records Notice from Lender mitt be eursuidered

ç

lrLrlr,

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 14 of 21
, ‘ ‘

B;(38o5P2o27

etTciive vhen DoJTo\er rceLves it iii 7itil at the eddsss shown on Borrovers staterneat lithis i a Joint OCCCUflt, Lcnder

may aotify Borro’•er and the notice \‘il1 be effective for BaflGwer and any oflanowrs. Ako, any rotflcaticn received by

Lcrdcr from How>’vi iit b considccd ctIe’tiv for Borroci and aiy co-Uonov.

6. Ecrcie f Rights. Nc faiwe to eecic, d o (ieay a e,eiCiSii, on tIc pit of the Lender, any iight, power, or

privite hereunder hatt oporole as a waiver thecoC, tar shall any singte or parti1 oxcrcisc ol aoy right, poover, or prioicge

hcreundor preclude any other o further execie thoroofor (he oxorciw ofany other right, power o pnvrlego

7. John artd Sovera Obliaton. If tiere is more than one Boroowor, then oH obtigationa of th I3oirowcr herundcr avd

under the Agreonwat s1r}I be joint and oeOotaI ixtLI ott iefereocos to tho Boriower shall neait each t3onoor

3. 1bt Mortgage ,nay not bo asigncJ by Boroowcr thout Lnder priGr TitIen ccoisnt. Obi€atioos

ttreunder re binding upoa the Borrower rurd the l3orros’er’s heirs rnd IegI lIoesoitatives.

1o score to Leader the repiymeot of tho iodebtedoeas up to Qic credit limit including alt futuro advanoeo (and readvwros)

evidenced by the Agreonwal, th interest thereon, anI au arnoudroents. refioanco, ,crewa)s, rnodificzitioris, aod cxtcnsion Qi

the Agreement, rho paiocol olall oftlio sunro with increst thcrcor odvnved or rcdvanced in accordauco ereosth to protect

the sceurtip of this Mortgage. and the performance of the cuvenanto and agrecaicots of Jioroower contained herein and in the

Agrccrnent, for consderrtioa paid or given, I)orrower does hereby mortgage, grant, and convoy 10 l.erctvr, wh Mortgage

Covenants, upon thu Statutory Condition, and with the Statutory Power of Sale, the following described properly located in the

County of Rcrckingham, State of New Hempuhle

whichhasatsaddrcssol 6 Katie Lane, Idampubead, bIN 03841

(herein referred to an “Property”) which is more puiliculatty bounded and described in ‘Schedule A’ attached hereto and made

a purl hereof

Together with alt the itcproveroenta nw or hereafter erected run tIre Property, and all easenrenro, rights,

appurtenances, rents, royallics, mineral, oil, and gas rights and profits, water, water rights, and water stock, and all (iraarres

stow or hereafter attached to tire Property, all of which, incurtiag replacements and additions thcreio, stratI tar dcenred to be are!

reitrairr a part of the Properly, and all of the fotegotcg, together with said property are herein referred to as the ‘Properly’. ‘flare

attached SCHEDULE A is the Propert>’s tegul description.

BOtIROWER ANt) lJiNDtSR COVENANT AS YOLI,OWS;

1, Payment of Prhmciprrl and/crc Interest- Borrowe, shall promptly pay when due lIes principal of nailer interest err the

indebtedness evidenced by the Agreement, early termination and late cluargen as provided its the Agreement, and the principal

of srrdfor interest on any other advances secured by this Mortgage. All payments will be applied first to interest rant! theta to

other rrmourrts owed and finally to principal,

2. Churgrs;Uena. Borrower shall pay all tsxcn, raseunrrCentn and other charges, linen, said irspositions attributable to the

Property which trmay attain a priority over this Mortgage. Borrcrwer strati promptly Ierrrish to Lercdcr rectdtrts evictecroing melt

po)ertemrll. liorresver shall promptly discharge any lieti which has priority over thin Mcttgagth provided, that Borrower shall trot

be required to discharge army ouch lien so lerrg as Borrower shalt agree in writing to tine psqncui of the obligation secured by

such lest itt a rtranner acceptable to l,enmter, or ulrstl in good faith contest mets lien by, or defend eaforcotnent of scott liert in

cyst proceedings wlriutc operate to present the eriforcentent of the lien or forfeiture of the Properly or any pan thereof.

3. ilneartt Insurance. Itorrsasver airali keep the irnprovententr now sxislirtg or hereafter erected on the Property smarted

ogairrst titan by fire, haanrda ircctadcd ssiihmn the lenass “extended coverage’ rued suits other huuardn as Lender may require asset

in such amounts used for such periods as Lender rrray require; provided, that Lender shall not rcqsrirn that the srrnosnl of such

coverage exceed the anecsurtt of coverage required to pay the autos secured by this Mortgage.

All irmaurerten policies and rerissanals thereof shalt be irs fonts acceptable to Lender and ahall include a standard

nlorlgage clause icr favor of and in fm-rn scceptrrble to lender. All insurance policies must cotttain a terxday notice of

cartieliatiors by tmssuearrce carrier to Lender, Ursle.ss the holder of a prior mortgage in holding such policies, the l,ender sluell

have the right to hold the policies rind renewals thereof, and tiorrownr shalL promptly furnish to lender all rcrtewat notices urrd

all receipts of paid prcmiasrss its the cr’erri of loan, Borrower shalt give prompt notice to the insurance carrier ured Lender.

l,ersdcr may nsrke proof of loss if tel trade promptly by Borrower.

Unless Lender rrd Borrower otherwise agree irr writing, insurance proceeds shalt be applied to restoration or repair

of the Prcpctty detrraged, provided such restoration or repair is eeoaosttieully feaaib!u arid the security of this Mortgage is not

thereby irnyrrired. If mutt restoration or repetr in rot croreemicelly fvaacbte and he security of lists Mortgage seould be

tnrisarred, the insurance proceeds shalt be’ applied to the soars scoured by this Mortgage, with the excess, ii tiny, pond to

Borrower, If the Property is abandoned by 13c’teownr, or if llomrosver fails to resprad to Lender ss’ithrrr Lhrrty (30) clays from tire

date notice is welled by Lender to Boeoosver that lire irtaurunce carrier eileen to settle a clams for insunrarce bnrmcfito, t,rrdrr is

sstlrorized to colleeL and npply tIre insurance proceeds at l,etsdefs option either to rescoreliost or repair of the Iroperty or to the

aunts secured by this Mortgage.

Unless Lender and Borrower otherwise agree its ssritirag, any arch eppliatieri of proceeds to priscipert sisal) not

exlcttd or postpone the due date of tire monthly inslnllntenls referred to in Sections 1 of thin Article II or change time asnouttl of

ssch ittrtallments. If mrsder Section 14 below the Property in acquired by Lender, all right, title, used interest of Borrower irs rand

to any issuranee policies and in and to tire proceeda s,’rercofresulttrrg from darrrerge to the I’toporty prior to the sale of

rrtr.m

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 15 of 21
8K3805P620?8

cquiilocI shiI[ pass to fcndei to Ihe Sent ol th: SbIfl ecred by the; Mc;r-tgge rIJudle1y pnc (o uh sale c

cquiiciow

4, Prccniion utul M2inenahc1 uf Propry; 1aseho)d; Condrnk1urn; Plannc4 Un DcveIoprncnt. &rower sbfl

kvcp the properly Hi good repair ni siafl not coirnnii wac or permit nprnenL or deterioriion of he Propcry and shfl

comply th he pwvisons of oi’y lease n this Moiigage io on eshohi. If Uii Mo1ggo s on unit n n condorninurn or

pacmed uii dcvclopmcnt, Borrovci sliH pcilorm all of Boriower’ obligMions Linder th dciraUon or coverrnts crciLirig or

governing thc: condominium or paanod uiiit devcoprticut, the byaw and rguItioii of the condominium or p!nned unir

devc!opinenl, nod corstiluent documents. If a condonrinwn or pinuned iinil development rider s execilled by the Boriower

nod reoidcd togeiher oih ihis Mortgagc thc ovcnonts aM rements of such ckr shall bo ororpoatcd into and hnIt

cnnund nid suppenwnt thu coveonnis and ngccrncntn of thio Mortgage os ifiho tidr were n pri hreof,

5 Protedion of Lrders SecurIty ffBcwor faflo to perfono the covenno aod ogreenicob contained in this Mogago or

if noy onion or proceeding in cononenced vhch imterially offecin Lende?s iniccol in the Propofly, idoding, bu not brnitd

ro cmincnt dOLflifl, insolvency, code enforcemeit, or rrangeinento or pocccdings irrvoiviog a bokrtipt or docedent, thcrr

Londer at 1,ordo’s option, upon notice to Borrower, orny rn}c sorb appearus.ccs, disbusse snob wns and (aJu ouch action a is

ocessary to protect 1ende?s juiciest. inc’uding, bot not limitud to, disbussvmen of reasonablo ntonses fees nrid entry upon

the Propsrty to niuke sepoir. If fonder requiscd soortguye insuranco s a cu odiCion of makiof the loans secured by this

Mortgage, Bosoower sTisI pay the premiums required to miniain such insurance in vfl’ec until such lime as the roquireincut

for such inoursunce tcnninae in scucnduncc with the I3orros’s sod Lcnde?s vrittdfl ugrccnien( or uppicub!c low,

Aiiy urnnunrs disbsoscd by Lender pursunul to this Section , with interest thereon, shruB become additionul

indebtedness of Borrower duo and owing atsd secured by this Mortgage. Unless Harrower and Lender spree Is other tOrsos of

p5)5001st, such macsanto shall be payable upon notice from leader to harrower requesting 10050501 therenf and shalt boar

interest from tire date ofdiaberaeirseat until paid irs full at she rate payable from hose to tines sin outstanding principal wider the

Agreement unless payment of interest st such rate would be conbary to applicable law, in which event such amounts shalt bone

interest at the highest rule permissible under applicable law. Nothing contained in Uris Section 5 shall require Leader to incur

my espeauc in (take any action hereunder.

6. traspeettori, Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that

l,errstcr shall give Borrower naticc prior to easy such is’rnpsectiots specifying seasorrebl cause therefor related to Lender’s interest

in the Property.

7. Connlerneratton. The proceeds of any nomad or claim for damages, direct or corrucqacntiet, irs eoernociion with any

condcrnssatiorr or other lskirg of ttic Properly, or part thcreot or for conveyance in lieu olcosdernrratisn, are hereby assigned

curd shall be paid to Lender.

In the event of s total taking of the Properly, lice proceeds shall be applIed to tIara scans secured by this Mortgage, with

the excess, if any, paid to Borrower, In the crest of prudish taking of rho Properth, unless Borrower sad Leader otherwise agree

irs awiting, tIters shalt be applied to the saints secured by this Manigoge, such proportion of tIre proceeds en is equal Lu that

projrorliont whieb tire amount of the aunts accused by this Mortgage irrsssnediutcly prior to the data of taking bears to the fair

market value of the Pruperty immediately prior to lIne date of taking, ninth tlc balacce of tine pisceeds paid to the iturrower.

If rho Property is abandoned by Iteirnower, or i1 alter notice by Lender to Borrower lOot the condemnor otTers to irate

and award or settle a claim for dnnsugca, l3orroaser foils to respond to Lender within thirty (30) days alter tire dale suds notice

is mailed, Lender is sutisrarazed to collect med apply the prixeeds, at Lender’s uptiors, either to restoration or repair of Use

Properly or to thu Inertia secured by this Mortgage.

Unless Lender and Borrower otherwise spree in writing, any such application of proceeds to principal shalt not

extend or postpone the duo date of the mostlhly insrallrsteras referred to st Sectiaa 1 of this Article II or change titer amount of

such installmenls.

8, Enrtrrsnrnrcrrrat Ilasards, For pcr.rpoees of tlsis section, Fnsviroasrrientsl Ha,ennjds are those hazards and haaardoau substances

us nizfsscct under applicable Federal laws arid Stole law (hereinafter Environmental Lows’). Burrower will corsply ci sit

(mires wills Erwirnnumeeatai Laws concerning the Properly, keeping it free from Environmental Hazards with or without being

seqnc’sted by Leader or governnseatsl authorities. Borrrswer shall immediately disclose Is lousIer in awitisp arty information

Borrower receives coreenniag tire esviroerrmrental status of tire Properly, ine!sdinsg, but riot limited to, any ntrearig.stion, etaimit or

lepcrt actions thereon whether by an individual or govenirncntul rnlity. Borrower further grunts Lender the right ten inspect the

property for enviroreeestsl eottlsrssinstion as arty time upon reasonable notie. Borrower understands arid acknowledges that if

cnvirorsrnentul eontaxninaliorr is found on the Property, Leader may at its optics terminate the Agreenneral, refusc to extend

fandn under the Agrccntetnl, derrrsnd paneensl of total amount due arid foreclose strori the Property. Borrower further’ agrees to

defend, irndenusify and otIcorwine hold harmless Lender from any envinonrcerrsl nobility anancinted with the Property.

9. harrower N Released. Extension of the lisle for payrsncmrt or rstudihicetiotm of uresenlizalios of the stuns secured by this

Mortgage granted by Lermder to anry uscresuor itt interest of idoirowci’ strati riot openers to release, in unry larsen, the tisbihily of

the oniprnl lioriower sad Borrower’s aicceetsor in interest. Lesdor shall reel Inc required to continence proeeedirsg ogainst such

successor sir refuse So extend time for payment or otirerwine modify a.susortization of the snirris secured by (isis Mortgage by

censors ofsuay demand made by this originsat Borrower and Harrower’s successors in inlereni.

10, Forbearance by Lender Nat a Waiver. Any forbearance by Lender in exercising any right or remsiedy hereunder, or

otherwine afforded by applicable laws, shall not be a waiver of or preclude the exercise of any such right or vetnesly. The

procurement of irnsuranec or thee payments of taxes or ocher liens or charges by Leader shrill not by a waiver of Lender’s right to

accelerate the tsnatnrity of the indebtedness secured by this Mortgage

nncarr, -

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 16 of 21
BX3805P6?029

lh Rnwdic Cumubike, All rmedicpiovidcd in thk Mortgage arc distinci and nmulaIie any other right oi remedy

under tins Mortgage or afforded by law o cquily, and rny be erciscd concurrently, m4cpendcntly or succenvcy.

12 Succcors nd MsIgn Bound JWn nd SnvrI; Caption Ihe cvnants and agicernenis herein contnincd shII

bind, and the iights hcieunder sb)l inure t, the respccive succois and asign of Lender und BonGwcr subject tø

provision olSection 13 nfthis Mi1e H. All coveranls nd agceinenLs of3onower thfl bjinI wsl scvcrI, Th captions

and headings or hv paragaph of this Moitage are 1tr wnvenience only nd rc ,inl tc be used to interprel ør dofinc tht

povi$iorn; hacol.

13. Trn1vr of Lhc PrpcrLy. Jf all or any pirt of the Properly a nd interest therchi i sold or trwfcrrd by I3orrowr

othouiLendei’s prior wriIta conn1 which Lendcr may vithhvkJ ii its solu dkcreion, acloding(a) th eraton nm lien or

cncwnbrnc subonlinate to this Motgage. (b) the ucalion of a purchc mancy soewity interest for housvhold app1hnca, (c)

0 transfer by dcvse, descent or by opation of law upon the death of joint tvnnt or (d) the ginnt of any lcsehotd interest ot

thra ycais or loss not contuinirlg in option to pwchse, Icoder ma), t Iendes ophon, dcn1ac ll the wn seuted by this

Morigage to ho insncdisIey du sod payabtc.

14. Asceterstion; Rcmedics. Upon the occurrence ofan Evcnl oIl)efuolt us defined in Arti}c 1, Section 3 or so otherwise

prcivittvd in this Mortgage, Lentcr at Lciidv? option nisy dcetare iilI cifthe sums secured by this Mortgage to be immediately

due atid payablo sthihut fusther demand and Lender may invoke the other remedies permitted by applicable law, Lesdet shall

be entitled to cotlet nil reasonable costs and expenses incsirsed itt pursuing the remedies prodded in this Section 14, including,

but not limited to, reasonable oltorneyk feet.

If Lender itwokes the STATUTORY POWlR OF SALE, Lender shall mail a copy of a notice of sale to Borrower itt

she manner provided by applicable law, Lender shall publish the notice of sate and the Property shall be sold irs tim manner

prescribed by applicabld law, Lender or Lenders designee may puechase the Property at any sale, The proceeds of tIre sale

shall be applied in the following crelen (a) to ill reasonable costs and espersoes uf the sate, including reasonable attorneys fees

and coals of title evidence, (Is) to all sums secured by this Mortgage; and (c) tIm excess, f aisy, to the person or persons legally

entitled thereto.

IS. Assignment of Rents; Lousier itt Possession, As additional security hereunder, Borrower hereby assigns to Letidee the

rents of rise Property, provided that l3etnsasver shall, prior to the acceleration under Section 14 usf this Article Il or sbrsndonnresti

of the l’ropcrly have the right to collect and retain such rests as they become due and lsa’oble

upon aunts necetemlioru or abandonment of the Property, lender shalt be entitled locater upon, lame possession of arid

nonage the Property and to collect the reels of tim Property, including those past dee, All rent collected by Lender shall be

applied first to payuuscrst of the coals a mssnsgement of the Property and coltectias of rents, including, but not limited to,

reasonable attorneys thea, and then to the stints secured by Otis Mortgage Lender shall be liable to ecccsrmt only for those rents

actually received,

16. SenIor Urn, Borrower represents mid warrants thai thcr arose prior mortgages in default and that no breach of covenant

of any tttortgoge esints.

17, Cuversanto RegardIng Srtslor Lien,

(I) Borrower shall not modify, amend, extend, refinance, renew, or borrow any additional amounts under utny mortgage

to which this mortgage is at any lime subject or subordinate, or the debt or other obligation secured thereby, without

prior written consent of the holder hereol

(ii) Any default under stay sorls prior tarsrtgage or Iso obligations secured thereby, or whirls clrfsalt tender has

knowledge, shall be a default hereunder, end the Lender shall be entitled (but not obtigsted) to care said default and

shell be reimbursed by the Borrower for all reasonable costs, charges end expenses, incleding without linuitstiost

reasonable atmontes fees, incurred in connection therewith, and all scums to which the Leader may be cntillcd to

reimbursement shall be sdded to the principal nuns of the debt secured hrreb9; shall earn interest at the sante rote

payable front time to tinte under the Agreement, shall be secured by shin Mortgage end shall be payable oar demand of

the Lender, whether onset rise rernaitting balance of said principal sum shall have been declared due end papeble.

I .Revolving Credit. It is understood that this Mortgage accuses set open’errd credit ptsn providing for loans at mm variable

mb of interest miss set forth is Article I hereof, and that from time 10 time the ontstrutsiing balance of loans nssde under said

coeclit nay change ettd may be nero, Notwithstanding such fact, the Mortgage granted hereby stroll be and remain superior to

amsy nba all liens hereafter made or placed ngniast the Property and such priority shall have effect with respect to all actvsutcea

made under said revolving credit and tony amendments thereto and relinances thereofsubsequent to the dale hereof to Borrower

prior to as Event of Defsutt as defined itt Section 3 of Article I. It is understood Leader shall hare the night, but not the

obligation, to give the reqsraite notice to Borrower of aim evcttl which with notice and tha passage of riots warts! become en

Evens of Befouls if not eared,

19, Amendment of Credit Agreement. It is understood that Ilols Mortgage secures a resolving credit agreement between

Dorro’ver and lender and that no amendment, refinance, renewal, modification, or extension ofsaid ageeetnemst shall affect the

cnfiurceability or priority of this Mortgage wlatch shall act as security for said agreement as eaneutded, refinanced, renewed,

moslifled, or extended,

211. WalverslRelease, Per the purposes of ibis Mortgage, the Mortgagor(s) releases and subordissutes ott rights of hssncatesd

exenspibosu and waives all rights of curtuey asrd dower in the Property ann hereby cersscsts to all advances anal resclvrstrees aisder

the Agecetnemsi, all of which shall be deemed aecured by this Mortgage, whether such advances or readvmsnccs are made by

Borrower or any coBorrowcr named in the Agrcenrmstt.

Si’

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 17 of 21
BI 3805 P1 203 0

21, Morlgage Discharge Recording Fee. Upon Lendocs request, Mcctgagor(s) will pay any fee m ciurge that must be paid to

record a diseheage of this Mortgage

Ploaae raee abiached “Exhibit A” for detailed property dosseriptalon.

Wsiccss ——- 1- t—o

rt 7)

Wuness

date

ci

Witness

_______________________ _________

(signature) Stephen a 000cette

-4k

Asic) Rtizabth S Doucette

Witrsisa

________ ________

The titatsa of New Nastipesbire

On Stirs t< day of, ,_c,22Cic2 before n:c, a sotasy posits or euthcrizcd

othccr, essa11 h £bUa* h3t’d1th 0J3oruowcr who

within Murtgege So ba a ieee ad voluntary act and deed far the uses and purposes therein expressed and that

received a true copy of such inatrwuent and desired that it be recosdtid as such,

Witness the execution hereof under sort us ofthe day and the year first above written.

date

(signature)

date

(signature)

County of so.

‘Puttide

c’)

iftn1._

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 18 of 21
ADI REPORTING SERVICES B38O5PG2O3 I

A divisbn ofAsse icisccry, mc, Th1:(800)4705522 F(S88)4705522

463 Worctcr Roid, Suhc 06

1ianingham MA 01701

SCHEDULE A

6 Katie Lane

Liamostead NH 03841

Elizabeth S. Doucette & Stephen A. Doucette

Tue laud with the buildings thereon situated in lianipsicad, Rockingharn County, State of New

Hampshire known and being numbered: 6 Katie Lane

The premises are conveyed subject to and with the benefit of all rights, rights of way, easements,

appurtenances, reservations, restrictions, and layouts and takings of record, insofar as they are in force and

applicable.

Meaning and intending to mortgage the same premises by deed ofJoseph D. DeDonuto, Jr. and Lee B.C.

DeDonato to Elizabeth S. Doucette and Stephen A. Doucette, dated 09/28/1995 and Filed with the

Rockingham County Registiy of Deeds, Record Book 3 121, Page 1588; wherein a more detailed

description of the premises is set forth,

Filed with: return to:

ROCKINCHAM COUNTY REGiSTRY 0? DEEDS I a t

1110 R 125 Brenood NH

Discrepancy Codes:

itt

Gust Refit:

_______

Page Report Ordered: 07/02/2002

ADI Refit: 8903 Report Furnished: 07/Oti/2002

[‘tinted On: 12:17:09PM, 712412002 (Thnsrniueil pue I oil)

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 19 of 21
Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 20 of 21
Anthony J. Manhart

From: Anthony J. Manhart

Sent: Tuesday, April 09, 2013 10:48 AM I EXHIBiT

To: Anthony J. Manhart (tmanhart@perkinsthompson.com) C

Subject: FW: april 8

ANTHONY J. MANHART

ATTORNEY

PERKINSTHOMPSON

ONE CANAL PLAzA, PC Box 426

PoRTLAND, ME 04112-0426

2077742635 MAIN

2078718026 FAX

CONFIDENTIALITY AND TAX ADVICE NOTICE: The information contained in this communication may be confidential or privileged. If you are not the

intended recipient of this communication, any disclosure, copying, distribution or use of this communication is prohibited. if you have received this

communication in error, please notify the sender and immediately destroy this communication. Any tax advice contained in this communication cannot

be used to avoid tax penalties.

From: S D

Sent: Wednesday, April 03, 2013 1:38 PM

To:

Subject: april 8

Hello Laurie,

I received your letter for continuance until April 8. Will you check with

TDBank to have this continued again . Ido not want to reilfe the

bankruptcy 7 or have my wife file 13 bu I will if it is the only way to

delay sale while I continue working on others alternativesThe property is

6 Katie lane Hampstead

Thank you

Steve Doucette

This message and any attachments may contain confidential or privileged

information and are intended only for the use of the intended recipients

of this message. If you are not the intended recipient of this message,

please notify the sender by return email, and delete this and all copies

ofthis message and any attachments from your system. Any unauthorized

disclosure, use, distribution, or reproduction of this message or any attachments is prohibited and may be

unlawful.

Case: 13-10915-JMD Doc #: 11 Filed: 04/16/13 Desc: Main Document Page 21 of 21