IN THE DISTRICT COURT OF BECKHAM COUNTY
STATE OF OKLAHOMA
EQUITY BANK.,
Plaintiff,
v.
LEE MICHEAL MCDANIEL, an Individual;
CARLA RAY MCDANIEL, an Individual;
MERS, as Nominee for Great Plains National Bank; BECKHAM COUNTY TREASURER, and THE BOARD OF COUNTY COMMISSIONERS FOR BECKHAM COUNTY
Defendants.
PETITION
Plaintiff, Equity Bank (hereinafter “Equity”), for its cause of action against the Defendants, alleges and states as follows:
FACTS COMMON TO ALL CAUSES OF ACTION
1. Plaintiff is a banking organization existing and doing business in the state of Oklahoma.
2. The Defendants, Lee Micheal McDaniel and Carla Ray McDaniel are residents of Backham County, Oklahoma.
3. Defendant Mers is the nominee for Great Plains National Bank and is doing business in Beckham County, Oklahoma.
4. The real property, which is the subject of this action, is located in Beckham County, Oklahoma.
FIRST CAUSE OF ACTION
NOTE NO. 7400567242
On the 27th day of January 2025, the Defendants, Lee Micheal McDaniel and Carla Ray McDaniel (hereinafter “Principal Defendants”), executed and delivered to Plaintiff Promissory Note, No. 7400567242, in the amount of $285,000.00, with interest and other charges payable as provided therein, a renewal of an earlier note. A copy of the Note is attached as Exhibit "A" and incorporated herein.
Principal Defendants have defaulted under the terms of the Note by failing to make the required payments, and the Note has now matured.
As a result of such default, Plaintiff is entitled to recover all amounts due and owing under the Note in the amount of $293,995.86, together with interest thereon from the 26th day of March 2026 at the daily rate of $7.35, together with all costs and reasonable attorney fees thereon.
WHEREFORE, Plaintiff prays to have judgment in its favor and recover as follows:
a) judgment against Lee Micheal McDaniel and Carla Ray McDaniel in the amount of $293,995.86, together with interest at the rate of $7.35 per day, until paid; b) judgment against Lee Micheal McDaniel and Carla Ray McDaniel for accruing costs and attorney fees for the bringing of this action, and such other relief as may be just and proper.
SECOND CAUSE OF ACTION
Plaintiff realleges each and every allegation contained in the above statement of facts and the First Cause of Action as though fully set forth herein.
To secure payment of the Note, Lee Micheal McDaniel and Carla Ray McDaniel executed and delivered to Plaintiff a Mortgage, recorded on the 8th day of June, 2022, in
Book 2384, Pages 554-569, with a Modification recorded on the 29th day of January, 2025, recorded in Book 2443, Page 805.
The Mortgage covers the following described real property located in Beckham County, and more particularly described as:
The Southwest Quarter of the Southwest Quarter of Section One (1), Township Ten (10) North, Range Twenty-Three (23), Beckham County, State of Oklahoma, with a Real Property address commonly known as 19023 East 1140 Road, Sayer, Oklahoma, 73662.
5. The primary Defendants have defaulted under the Mortgage by defaulting under the Note referenced above.
6. Primary Defendants may claim some right, title, estate, encumbrance or claim or assessment, interest in and to the property covered by the Mortgage. Plaintiff asserts that such interest, if any, is junior, inferior and subject to the lien of the Mortgage referenced above.
7. The Defendant, MERS, as Nominee for Great Plains National Bank, claim an interest by virtue of its Mortgage dated the 15th of November, 2019, recorded in Book 2320, page 713, the Beckham County records, which mortgage is the first and prior lien against the property.
8. The Defendants, Beckham County Treasurer for Beckham County, and the Board of County Commissioners for Beckham County, may claim an interest in the property covered by the mortgage by virtue of unpaid ad valorem taxes, which if any, are prior and superior to the mortgage interest of Plaintiff.
WHEREFORE, Plaintiff prays to have judgment in its favor and recover as follows: (a) judgment determining the Mortgage to be a valid second mortgage lien over the subject property; (b) judgment ordering the lien of the Mortgage foreclosed and ordering the
property sold with or without appraisement as Plaintiff may elect at the time judgment is rendered subject to the first mortgage and unpaid taxes, if any, to satisfy the judgment herein with the proceeds of said sale applied first to the costs herein, then to the payment in satisfaction of Plaintiff’s claim in judgment, with the surplus, if any, paid into Court to abide further order; (c) judgment determining the right, title and interest of all and each of the Defendants, and any person or entity claiming by or through said Defendants, or any of them, in and to the subject real property to be subject, junior, and inferior to the mortgage lien of Plaintiff, and adjudging that upon confirmation of the sale of the property all of the said Defendants and all persons or entities claiming by, through or under them, or any of them, be forever barred, foreclosed and enjoined from asserting or claiming any right, title or interest, estate or equity of redemption in or to said property or any part thereof; and (d) any such and further relief as the Court may deem just and equitable under the circumstances.
Respectfully submitted,
ROBERT C. THOMPSON, OBA #8984
CHEEK & FALCONE, PLLC
6301 Waterford Boulevard, Suite 320
Oklahoma City, OK 73118-1168
Telephone: (405) 286-9191
Facsimile: (405) 286-9670
ATTORNEY FOR PLAINTIFFS
VERIFICATION
STATE OF OKLAHOMA
COUNTY OF OKLAHOMA
I, Robert C. Thompson, being first duly sworn upon oath state:
That I am the maker thereof to the foregoing Petition as its Attorney-in-fact and acknowledge that I executed the same as my free and voluntary act and deed and as the free and voluntary act and deed of the Plaintiff, and for the uses and purposes therein set forth.
That I have read the foregoing Petition and it is true and correct to the best of my knowledge and belief.
ROBERT C. THOMPSON
SUBSCRIBED AND SWORN to before me this 27 day of APRIL, 2026.
NOTARY PUBLIC
BRIAN ZERBE
My Commission # 00018032 Expires:
#00018032 EXP October 29, 2028
STATE OF OKLAHOMA
[SEAL]
*0000007400567242095501272025*
EQUITY BANK.
PROMISSORY NOTE
<table>
<tr>
<th>Principal</th>
<th>Loan Date</th>
<th>Maturity</th>
<th>Loan No</th>
<th>Call / Coll</th>
<th>Account</th>
<th>Officer</th>
<th>Initials</th>
</tr>
<tr>
<td>$285,000.00</td>
<td>01-27-2025</td>
<td>01-27-2026</td>
<td>7400567242</td>
<td>4 / 620</td>
<td>***</td>
<td>DCL</td>
<td></td>
</tr>
</table>
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing "****" has been omitted due to text length limitations.
Borrower:
LEE MICHEAL MCDANIEL
CARLA RAY MCDANIEL
19023 E 1140 RD
SAYRE, OK 73662
Lender:
Equity Bank
Ponca City Downtown
222 E Grand Ave
Ponca City, OK 74601
(580) 718-9990
Principal Amount: $285,000.00
Date of Note: January 27, 2025
PROMISE TO PAY. LEE MICHEAL MCDANIEL and CARLA RAY MCDANIEL ("Borrower") jointly and severally promise to pay to Equity Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Two Hundred Eighty-five Thousand & 00/100 Dollars ($285,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.
PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on January 27, 2026. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as each payment date, beginning February 27, 2025, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any escrow or reserve account payments as required under any mortgage, deed of trust, or other security instrument or security agreement securing this Note; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing.
VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Prime Rate as published in the Wall Street Journal (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each DAY. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.500% per annum. Interest on the unpaid principal balance of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 0.599 percentage points over the Index (the "Margin"), adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial rate of 8.099%. If Lender determines, in its sole discretion, that the Index has become unavailable or unreliable, either temporarily, indefinitely, or permanently, during the term of this Note, Lender may amend this Note by designating a substantially similar substitute index. Lender may also amend and adjust the Margin to accompany the substitute index. The change to the Margin may be a positive or negative value, or zero. In making these amendments, Lender may take into consideration any then-prevailing market convention for selecting a substitute index and margin for the specific index that is unavailable or unreliable. Such an amendment to the terms of this Note will become effective and bind Borrower 10 business days after Lender gives written notice to Borrower without any action or consent of the Borrower. NOTICE: Under no circumstances will the interest rate on this Note be less than 0.000% per annum or more than (except for any higher default rate shown below) the lesser of 99.999% per annum or the maximum rate allowed by applicable law.
INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.
PREPAYMENT. Borrower 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 Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Equity Bank, 7701 E. Kellogg, Suite 100 Wichita, KS 67207.
LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment.
INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased to 18.000%. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.
DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note:
Payment Default. Borrower fails to make any payment when due under this Note.
Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.
Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.
False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.
Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.
Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.
LOAN AGREEMENT. BORROWER AGREES TO THE TERMS OF THE BUSINESS LOAN AGREEMENT DATED January 27, 2025.
LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.
ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including without limitation all attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law.
JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.
GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Oklahoma without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Oklahoma.
DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or other payment order including any preauthorized charge with which Borrower pays is later dishonored.
RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.
COLLATERAL. Borrower acknowledges this Note is secured by MORTGAGE DATED MARCH 18, 2022 AND MODIFIED MARCH 18, 2024 AND JANUARY 27, 2025 SECURING 19023 E 1140 RD, SAYRE, OK 73662.
LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested orally by Borrower or as provided in this paragraph. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following person or persons are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: LEE MICHEAL MCDANIEL, Individually; and CARLA RAY MCDANIEL, Individually. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs.
SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.
GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several.
PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.
BORROWER:
LEE MICHEAL MCANIEL
CARLA RAY MCDANIEL
LENDER:
EQUITY BANK
Clint Lively, Market President
