LONGBRIDGE FINANCIAL, LLC v. UNKNOWN SUCCESSOR TRUSTEE OF THE ARNOLD FAMILY REVOCABLE LIVING TRUST

IN THE DISTRICT COURT WITHIN AND FOR OKLAHOMA COUNTY STATE OF OKLAHOMA LONGBRIDGE FINANCIAL, LLC Plaintiff, vs. UNKNOWN SUCCESSOR TRUSTEE OF THE ARNOLD FAMILY REVOCABLE LIVING TRUST ESTABLISHED UNDER THAT CERTAIN REVOCABLE DECLARATION OF TRUST DATED MARCH 11, 2013, BY AND BETWEEN JAMES K. ARNOLD AND CHERYL A. ARNOLD OCCUPANT(S) OF THE PREMISES MIDLAND CREDIT MANAGEMENT, INC. UNITED STATES OF AMERICA, EX REL. INTERNAL REVENUE SERVICE UNITED STATES OF AMERICA, EX REL. FEDERAL HOUSING COMMISSIONER Defendant(s) PETITION Comes now the Plaintiff, Longbridge Financial, LLC, and for its cause of action against the Defendants above named, alleges and states: 1. That the Plaintiff was all times hereinafter mentioned, and now is duly organized, existing and authorized to bring this action. 2. That James K. Arnold and Cheryl A. Arnold were married at the time the mortgage sued upon was executed and remained married until the death of Cheryl Arnold on February 4, 2022; that James Arnold died on December 8, 2024, a single person. 3. That the original maker(s) for a good and valuable consideration, made, executed and delivered to the Payee, a certain written promissory note; a true copy of said note and endorsements thereon, if any, is hereto attached, marked Exhibit “A”, and made a part hereof by reference. 4. That as a part of the same transaction and to secure the payment of the note above described and the indebtedness represented thereby, the owners of the real estate hereinafter described, made, executed and delivered to the Payee of the note, a certain real estate mortgage in writing encumbering the following real property, to -wit: All of Lot Nine (9) in Block Eleven (11), in FROLICH MEADOWS ADDITION, Blocks 9 to 14, both inclusive, to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof. 5. That said mortgage was duly executed and acknowledged according to law, the mortgage tax duly paid thereon, and was recorded on May 26, 2020 in Book 14354 at Page 43 in the office of the County Clerk of Oklahoma County, Oklahoma, a true and correct copy of which is attached hereto as Exhibit “B” and the record thereof is incorporated herein by reference. That Plaintiff was the person entitled to enforce the Note on and before the date this action was filed. That Plaintiff has complied with all the terms, conditions precedent and provisions of said note and mortgage, and is duly empowered to bring this suit. 6. That said note and mortgage provided that if default be made in the payment of any of the monthly installments, or on failure or neglect to keep or perform any of the other conditions covenants of the mortgage, that the entire principal sum and accrued interest, together with all other sums secured by said mortgage, shall at one become due and payable, at the option of the person entitled to enforce the Note, and the person entitled to enforce the Note shall be entitled to foreclose said mortgage and recover the unpaid principal thereon and all expenditures of the mortgagee made thereunder, with interest thereon, and to have said premises sold and the proceeds applied to the payment of the indebtedness secured thereby, together with attorney fees and all costs. 7. The default has been made upon said note and mortgage in that the borrowers are deceased. 8. That preliminary to the bringing of this action, and as a necessary expense thereof, this Plaintiff caused title work to be extended and certified to date at a cost which charge is a further lien secured by the Mortgage of the Plaintiff herein sued upon. 9. That said note and mortgage provide that in case of a foreclosure of said mortgage as often as any proceedings shall be taken to foreclose the same, the maker(s) will pay an attorney’s fee as therein provided, and that the same shall be further charge and lien on said premises. 10. That after allowing all just credits there is due to Plaintiff on said note and mortgage the sum of: <table> <tr> <th>Reason:</th> <th>Amount:</th> </tr> <tr> <td>Unpaid Principal Balance</td> <td>$56,693.78</td> </tr> <tr> <td>Date of Default</td> <td>December 8, 2024</td> </tr> <tr> <td>Interest Due From</td> <td>October 10, 2025</td> </tr> <tr> <td>Interest Rate(s)</td> <td>7.07900 %</td> </tr> </table> *or as adjusted by the Note and Mortgage including all advancements of Plaintiff, if any, for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, all costs of this action; reasonable attorney’s fees and costs as the Court may allow, for which amounts said mortgage is a first, prior and superior lien upon the real estate and premises above described. 11. That the mortgage specifically provides that appraisement of the property is expressly waived or not waived at the option of the mortgagee. 12. That the Defendant, Unknown Successor Trustee of the Arnold Family Revocable Living Trust established under that certain Revocable Declaration of Trust dated March 11, 2013, by and between James K. Arnold and Cheryl A. Arnold, is the present record owner of the subject property. 13. That the Defendant, Occupant(s) Of The Premises, may claim some right, title lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein as occupant. 14. That the Defendant, United States of America, ex rel. Federal Housing Commissioner, may claim an interest in the subject property, by virtue of a Mortgage, recorded in Book 14354 at Page 59. 15. That the Defendant, Midland Credit Management, Inc., may claim an interest in the subject property, by virtue of a Judgment, in CS-2022-5146, recorded in Book 15363 at Page 1432. 16. That the Defendant, United States of America, ex rel. Internal Revenue Service, may claim an interest in the subject property, by virtue of a Federal Tax Lien, #338622118, recorded under Document Number 20181226030026790. Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property or be forever barred from claiming any right in and to the property. Plaintiff states, however, that any right, title, or interest claimed by each Defendant is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property to be forever barred from claiming any right in and to the property. , Plaintiff prays for judgment in rem against the subject property, in the sum listed above in paragraph 10 and for a further judgment in rem against all said Defendants adjudging: That all of said Defendants to require to appear and set forth any right, title, claim or interest which they have, or may have, in and to the property; and, That the mortgage be foreclosed and that the same be declared a valid first, prior and superior lien upon the property, for and in the amounts above set forth and ordering said real estate and premises sold, for cash, with or without appraisement, as the Plaintiff shall elect, and as provided in said mortgage and by law, subject to unpaid taxes, advancements by Plaintiff for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, if any, to satisfy said judgment, and that the proceeds arising therefrom be applied to the payment of the costs herein, and the payments and satisfaction of the judgment, mortgage and lien of this Plaintiff, and that the surplus, if any, be paid into Court to abide the further order of the Court; and, That all right, title and interest of said Defendants, and each of them, if any, in and to the property be adjudged subject, junior and inferior to the mortgage lien and judgment of this Plaintiff, and that upon confirmation of such sale, the Defendants herein, and each of them, and all persons claiming by, through or under them since the commencement of this action, be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in or to the property, or any part thereof; and, That this Plaintiff have such other and further relief as may be just and equitable. Don Timberlake - # 9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 BAER & TIMBERLAKE, P.C. 5901 N. Western, Suite 300 Oklahoma City, OK 73118 Telephone: (405) 842-7722 Email: [email protected] COUNTY: OKLAHOMA STATE: OKLAHOMA ss, The above, being first duly sworn, upon oath deposes and says: That he/she is one of the attorneys for the Plaintiff in the above titled action; that he/she prepared the above and foregoing pleading, knows the contents thereof, and that to the best of his/her knowledge and belief, the matters set forth are true and correct. I state under penalty of perjury on this 5th day of November, 2025, under the laws of Oklahoma that the foregoing is true and correct. Don Timberlake - # 9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. State of OKLAHOMA ADJUSTABLE-RATE NOTE (Home Equity Conversion) March 9, 2020 4901 Eric Drive, Oklahoma City, Oklahoma 73135 (Property Address) 1. DEFINITIONS "Borrower" means each person signing at the end of this Note. Borrower is a mortgagor who is an original borrower under the Loan Agreement and this Note. The term does not include Borrower's successors or assigns. "Change Date" means each date on which the interest rate could change. "Commissioner" means the Federal Housing Commissioner or his or her authorized representatives. "Current Index" means the most recent Index figure available thirty (30) days before the Change Date. "Eligible Non-Borrowing Spouse" means a Non-Borrowing Spouse who meets, and continues to meet, the Qualifying Attributes requirements established by the Commissioner that the Non-Borrowing Spouse must satisfy in order to be eligible for deferral of the due and payable status. "Index" means the weekly average of interbank offered rates for one year U.S. dollar-denominated deposits in London Market ("LIBOR"), as published in the Wall Street Journal, rounded to three digits to the right of the decimal point. "Ineligible Non-Borrowing Spouse" means a Non-Borrowing Spouse who does not meet the Qualifying Attributes requirements established by the Commissioner that the Non-Borrowing Spouse must satisfy in order to be eligible for deferral of the due and payable status. "Lender" means Longbridge Financial, LLC and its successors and assigns. "Loan Agreement" means the Home Equity Conversion Mortgage Adjustable Rate Loan Agreement dated March 9, 2020 by and between the Borrower and Lender. "Mortgagor" is an original mortgagor under the Security Instrument. The term includes Mortgagor's heirs, executors, administrators, and assigns. "Non-Borrowing Spouse" means the spouse N/A, as determined by the laws of the state in which the spouse N/A and Borrower N/A reside or the state of celebration of the Borrower N/A at the time of closing and who is not a Borrower. "Property" means Borrower's property identified in the Security Instrument. "Property Address" means the address provided above. "Qualifying Attributes" means those requirements established by the Commissioner that the Non-Borrowing Spouse must satisfy in order to be eligible for deferral of the due and payable status. "Security Instrument" means the mortgage, deed of trust, security deed or other security instrument which is signed by Borrower and Mortgagor, and which secures this Note. 2. BORROWER'S PROMISE TO PAY; INTEREST In return for amounts to be advanced by Lender to or for the benefit of Borrower under the terms of the Loan Agreement, Borrower promises to pay to the order of Lender a principal amount equal to the sum of all Loan Advances made under the Loan Agreement with interest. All amounts advanced by Lender, plus interest, if not due earlier, are due and payable on July 11, 2087. Interest will be charged on unpaid principal at the rate of Three AND Five Hundred Twenty Two Thousandth percent (3.522%) per year until the full amount of principal has been paid. The interest rate may change in accordance with Paragraph 5 of this Note. Accrued interest shall be added to the Principal Balance as a Loan Advance at the end of each month. 3. PROMISE TO PAY SECURED Borrower's promise to pay is secured by the Security Instrument. The Security Instrument protects the Lender from losses which might result if Borrower defaults under this Note. 4. MANNER OF PAYMENT (A) Time Borrower shall pay all outstanding principal and accrued interest to Lender upon receipt of a notice by Lender requiring immediate payment-in-full, plus other notices, if any, which may be required by applicable law, as provided in Paragraph 7 of this Note. (B) Place Payment shall be made at Longbridge Financial, LLC, One International Blvd., Suite 900, Mahwah, NJ 07495 or at such other place as Lender may designate in writing by notice to Borrower. (C) Limitation of Liability Borrower shall have no personal liability for payment of the debt. Lender shall enforce the debt only through sale of the Property. If this Note is assigned to the Commissioner, the Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 5. INTEREST RATE CHANGES (A) Change Date The interest rate may change on the first day of April 1, 2021 and on that day of each succeeding year. (B) The Index Beginning with the first Change Date, the interest rate will be based on the Index chosen by the Borrower, as specified in this Note. If the Index is no longer available, Lender will use as a new Index any index prescribed by the Commissioner. Lender will give Borrower notice of the new Index. (C) Calculation of Interest Rate Changes Before each Change Date, Lender will calculate a new interest rate by adding a margin of Two AND One Hundred Forty Thousandth percentage points (2.140%) to the current Index. Subject to the limit stated in Paragraph 5(D) of this Note, this amount will be the new interest rate until the next Change Date. (D) Limit on Interest Rate Changes The interest rate will never increase or decrease by more than two percentage points (2.0%) on any single Change Date. The interest rate will never be more than five percentage points (5.0%) higher or lower than the initial interest rate stated in Paragraph 2 of this Note.. (E) Notice of Changes Lender will give notice to Borrower of any change in the interest rate. The notice must be given at least twenty-five (25) days before the new interest rate takes effect, and must set forth (i) the date of the notice, (ii) the Change Date, (iii) the old interest rate, (iv) the new interest rate, (v) the Current Index and the date it was published, (vi) the method of calculating the adjusted interest rate, and (vii) any other information which may be required by law from time to time. (F) Effective Date of Changes A new interest rate calculated in accordance with Paragraphs 5(C) and 5(D) of this Note will become effective on the Change Date, unless the Change Date occurs less than twenty five (25) days after Lender has given the required notice. If the interest rate calculated in accordance with Paragraphs 5(C) and 5(D) of this Note decreased, but Lender failed to give timely notice of the decrease and applied a higher rate than the rate which should have been stated in a timely notice, then Lender shall recalculate the Principal Balance owed under this Note so it does not reflect any excessive interest. 6. BORROWER'S RIGHT TO PREPAY A Borrower receiving monthly payments under the Loan Agreement has the right to pay the debt evidenced by this Note, in whole or in part, without charge or penalty. Any amount of debt prepaid will first be applied to reduce the Principal Balance of the Second Note described in Paragraph 11 of this Note and then to reduce the Principal Balance of this Note. All prepayments of the Principal Balance shall be applied by Lender as follows: First, to that portion of the Principal Balance representing aggregate payments for mortgage insurance premiums; Second, to that portion of the Principal Balance representing aggregate payments for servicing fees; Third, to that portion of the Principal Balance representing accrued interest due under the Note; and Fourth, to the remaining portion of the Principal Balance. A Borrower may specify whether a prepayment is to be credited to that portion of the Principal Balance representing monthly payments or the line of credit. If Borrower does not designate which portion of the Principal Balance is to be prepaid, Lender shall apply any partial prepayments to an existing line of credit or create a new line of credit. 7. IMMEDIATE PAYMENT-IN-FULL (A) Death (i) Except as provided in Paragraph 7(A)(ii), Lender may require immediate payment in full of all outstanding principal and accrued interest if a Borrower dies and the Property is not the Principal Residence of at least one surviving Borrower. (ii) Deferral of Due and Payable Status. Lender may not require immediate payment in full of all outstanding principal and accrued interest if a Non-Borrowing Spouse identified in this Note qualifies as an Eligible Non-Borrowing Spouse and provided the following conditions are, and continue to be, met: a. Such Eligible Non-Borrowing Spouse remained the spouse of the Borrower, identified in this Note, for the duration of the Borrower's lifetime; b. Such Eligible Non-Borrowing Spouse has occupied, and continues to occupy, the Property as [his/her] Principal Residence; c. Such Eligible Non-Borrowing Spouse has established legal ownership or other ongoing legal right to remain in the Property; d. All other obligations of the Borrower under this Note, the Loan Agreement and the Security Instrument continue to be satisfied; and e. This Note is not eligible to be called due and payable for any other reason. This sub-paragraph (ii) is inapplicable or null and void if an Eligible Non-Borrowing Spouse is or becomes an Ineligible Non-Borrowing Spouse at any time. Further, during a deferral of the due and payable status, should any of the conditions for deferral cease to be met, such a deferral shall immediately cease and this Note will become immediately due and payable in accordance with the provisions of Paragraph 7(A)(i) of this Note, after provisions of whatever notices, if any, may be required by applicable law. (B) Sale Lender may require immediate payment in full of all outstanding principal and accrued interest if a Borrower conveys all of his or her title to the Property and no other Borrower retains title to the Property in fee simple or on a leasehold interest as set forth in 24 CFR 206.45(a). A deferral of due and payable status is not permitted when a Lender requires immediate payment under this Paragraph. (C) Other Grounds After provision of whatever notices, if any, may be required by applicable law. Lender may require immediate payment-in-full of all outstanding principal and accrued interest, upon approval by the Commissioner, if: (i) The Property ceases to be the Principal Residence of a Borrower for reasons other than death and the Property is not the Principal Residence of at least one other Borrower; or (ii) For a period of longer than twelve (12) consecutive months, a Borrower fails to occupy the Property because of physical or mental illness and the Property is not the Principal Residence of at least one other Borrower; or (iii) An obligation of the Borrower under the Security Instrument is not performed. A deferral of due and payable status is not permitted when a Lender requires immediate payment in full under Paragraph 7(C). (D) Payment of Costs and Expenses If Lender has required immediate payment-in-full, as described above, the debt enforced through sale of the Property may include costs and expenses, including reasonable and customary attorney's fees for enforcing this Note to the extent not prohibited by applicable law. Such fees and costs shall bear interest from the date of disbursement at the same rate as the principal of this Note. (E) Trusts Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Commissioner, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph. A trust shall not be considered an occupant or be considered as having a Principal Residence for purposes of this Paragraph. 8. WAIVERS Borrower waives the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require Lender to demand payment of amounts due. "Notice of Dishonor" means the right to require Lender to give notice to other persons that amounts due have not been paid. 9. GIVING OF NOTICES Notices required or permitted by this Note shall be provided as set forth in this section 9 unless otherwise required by applicable law. Any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the Property Address or at a different address if Borrower has given Lender a notice of Borrower's different address. Any notice to a Non-Borrowing Spouse provided for under this Note will be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address. Any notice that must be given to Lender under this Note will be given by first class mail to Lender at the address stated in Paragraph 4(B) or at a different address if Borrower is given a notice of that different address. 10. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully obligated to keep all of the promises made in this Note. Lender may enforce its rights under this Note only through sale of the Property. 11. RELATIONSHIP TO SECOND NOTE (A) Second Note Because Borrower will be required to repay amounts which the Commissioner may make to or on behalf of Borrower pursuant to Section 255 (i)(1)(A) of the National Housing Act and the Loan Agreement, the Commissioner has required Borrower to grant a Second Note to the Commissioner. (B) Relationship of Commissioner Payments to this Note Payments made by the Commissioner shall not be included in the debt due under this Note unless: (i) This Note is assigned to the Commissioner; or (ii) The Commissioner accepts reimbursements by the Lender for all payments made by the Commissioner. If the circumstances described in (i) or (ii) occur, then all payments by the Commissioner, including interest on the payments, shall be included in the debt. (C) Effect on Borrower Where there is no assignment or reimbursement as described in (B)(i) or (ii) and the Commissioner makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under this Note until the Commissioner has required payment-in-full of all outstanding principal and accrued interest under the Second Note held by the Commissioner, notwithstanding anything to the contrary in Paragraph 7 of this Note; or (ii) Be obligated to pay interest under this Note at any time, whether accrued before or after the payments by the Commissioner, and whether or not accrued interest has been included in the Principal Balance of this Note, notwithstanding anything to the contrary in Paragraphs 2 or 5 of this Note. 12. THIRD-PARTY BENEFICIARY Except as set forth in Paragraph 7(A)(ii) and only for an Eligible Non-Borrowing Spouse, this Note does not and is not intended to confer any rights or remedies upon any person other than the parties. Borrower agrees that it is not a third-party beneficiary to the Contract of Insurance between HUD and Lender. 13. SUCCESSORS AND ASSIGNS Notwithstanding anything to the contrary herein, upon the death of the last surviving Borrower, the Borrower's successors and assigns will be bound to perform Borrower's obligations under this Note. 14. CAPITALIZED TERMS Capitalized terms not defined in this Note shall have the meanings ascribed to them in the Loan Agreement. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Note. James K. Arnold (SEAL) 3-9-2020 James K. Arnold Cheryl A Arnold (SEAL) 3-9-2020 Cheryl A Arnold James K. Arnold, Trustee 3-9-2020 James K. Arnold, Trustee Cheryl A. Arnold, Trustee 3-9-2020 Cheryl A. Arnold, Trustee Loan Originator Organization Individual Loan Originator Allonge Loan Number: ____________ FHA Case Number: ____________ Borrower Name(s): James K. and Cheryl A. Arnold Property Address: 4901 Eric Drive Oklahoma City, Oklahoma 73135 Note/Loan Amount: $180,000.00 Note/Loan Date: 3/9/2020 PAY TO THE ORDER OF: WITHOUT RECOEURSE Company Name: Longbridge Financial, LLC Signature: Heidi Inderwies Name: Heidi Inderwies Post Closing Specialist Title: record and return to: Longbridge Financial, LLC One International Blvd., Suite 900 Mahwah, NJ 07495 Received MTG Tax : $180.00 Paid: 5/26/2020 9:30:59 AM Rept # 2033476 Forrest 'Butch' Freeman Okla Co. Treasurer By KSTEVEN Deputy |Space Above This Line For Recording Data| State of OKLAHOMA ADJUSTABLE RATE HOME EQUITY CONVERSION MORTGAGE THIS MORTGAGE ("Security Instrument") is given on March 9, 2020. The mortgagor is JAMES K. ARNOLD AND CHERYL A. ARNOLD, CO-TRUSTEES, (SUCH TRUSTEES HEREAFTER REFERRED TO AS "GRANTEE") OF THE ARNOLD FAMILY REVOCABLE LIVING TRUST (THE "TRUST"), SUCH TRUST HAVING BEEN ESTABLISHED UNDER THAT CERTAIN REVOCABLE DECLARATION OF TRUST DATED MARCH 11, 2013, BY AND BETWEEN JAMES K. ARNOLD AND CHERYL A. ARNOLD OF OKLAHOMA COUNTY, OKLAHOMA, AS GRANTORS, AND JAMES K. ARNOLD AND CHERYL A. ARNOLD OF OKLAHOMA COUNTY, OKLAHOMA AS TRUSTEES, whose address is 4901 Eric Drive, Oklahoma City, Oklahoma 73135 ("Borrower"). Borrower is a mortgagor who is an original borrower under the Loan Agreement and Note. The term "Borrower" does not include the Borrower's successors and assigns. Mortgagor is an original mortgagor under this Security Instrument. The term "Mortgagor" includes Mortgagor's heirs, executors, administrators, and assigns. This Security Instrument is given to Mortgage Electronic Registration Systems, Inc. ("MERS"), which is organized and existing under the laws of Delaware, and whose address is P.O. Box 2026, Flint, MI 48501-2026, telephone (888) 679-MERS. Longbridge Financial, LLC is organized and existing under the laws of Delaware, and has an address of One International Blvd., Suite 900, Mahwah, NJ 07495("Lender"). Borrower has agreed to repay to Lender amounts which Lender is obligated to advance, including future advances, under the terms of a Home Equity Conversion Mortgage Adjustable Rate Loan Agreement dated the same date as this Security Instrument ("Loan Agreement"). The agreement to repay is evidenced by Borrower's Adjustable-Rate Note dated the same date as this Security Instrument ("Note"). The mortgagee of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and assigns) and the successors and assigns of MERS. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest at a rate subject to adjustment (interest), and all renewals, extensions and modifications of the Note, up to a maximum principal amount of One Hundred Eighty Thousand Dollars and Zero Cents (U.S. $180,000.00); (b) the payment of all other sums, with interest, advanced under Paragraph 5 to protect the security of this Security Instrument or otherwise due under the terms of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument, the Note and Loan Agreement. The full debt, including amounts described in (a), (b), and (c) above, if not due earlier, is due and payable on July 11, 2087. For this purpose, BORROWER AND MORTGAGOR DO HEREBY MORTGAGE, GRANT AND CONVEY to MERS and to the successors and assigns of MERS, with power of sale, the following described property located in OKLAHOMA County, OKLAHOMA: See legal description as Exhibit A attached hereto and made a part hereof for all intents and purposes which has the address of 4901 Eric Drive, Oklahoma City, Oklahoma 73135, ("Property Address") TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER AND MORTGAGOR COVENANT that each is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered. Borrower and Mortgagor warrant and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower, Mortgagor and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall pay when due the principal of $180,000.00, and interest on, the debt evidenced by the Note. 2. Payment of Property Charges. Borrower shall pay all property charges consisting of property taxes, hazard insurance premiums, flood insurance premiums, ground rents, condominium fees, planned unit development fees, homeowner's association fees, and any other special assessments that may be required by local or state law in a timely manner, and shall provide evidence of payment to Lender, unless Lender pays property charges as provided for and in accordance with the Loan Agreement. 3. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including, but not limited to, fire and flood, for which Lender requires insurance. Such insurance shall be maintained in the amounts, and for the periods that Lender requires; Lender has the discretion to increase or decrease the amount of any insurance required at any time provided the amount is equal to or greater than any minimum required by the Federal Housing Commissioner ("Commissioner"). Whether or not Lender imposes a flood insurance requirement, Borrower shall at a minimum insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Commissioner. If the Lender imposes insurance requirements, all insurance shall be carried with companies approved by Lender, and the insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss to Lender instead of to Borrower and Lender jointly. Insurance proceeds shall be applied to restoration or repair of the damaged Property, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument (as described in Paragraph 15) held by the Commissioner on the Property and then to the reduction of the indebtedness under the Note and this Security Instrument. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. Lender is under no obligation to purchase any particular type or amount of hazard coverage. Such coverage shall cover Lender, but might not protect Borrower. Borrowers equity in the Property, or the contents of the Property, against any risk, hazard, or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained by Lender might significantly exceed the cost of insurance that Borrower could have obtained. 4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's Principal Residence after the execution of this Security Instrument and Borrower (or at least one Borrower, if initially more than one person are Borrowers) shall continue to occupy the Property as Borrower's Principal Residence for the term of the Security Instrument. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a Principal Residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing. 5. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument in the manner provided in Paragraph 14(c). If Borrower fails to make these payments or pay the property charges required by Paragraph 2, or fails to perform any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of property taxes, hazard insurance and other items mentioned in Paragraph 2. To protect Lender's security in the Property, Lender shall advance and charge to Borrower all amounts due to the Commissioner for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan servicer for servicing activities as defined in the Loan Agreement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured by this Security Instrument. 6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property in a reasonable manner and at reasonable times provided that Lender shall give the Borrower notice prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the Property. If the Property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation, or other taking of any part of the Property, or for conveyance in place of condemnation shall be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument (as described in Paragraph 15) held by the Commissioner on the Property, and then to the reduction of the indebtedness under the Note and this Security Instrument. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. 8. Fees. Lender may collect fees and charges authorized by the Commissioner. 9. Non-Borrowing Spouse. Borrower, N/A is married under the laws of Oklahoma to N/A ("Non-Borrowing Spouse"), who is not a Borrower under the terms of the "Note," "Loan Agreement" or this Security Instrument. (a) Eligible Non-Borrowing Spouse - A Non-Borrowing Spouse identified by the Borrower who meets, and continues to meet, the Qualifying Attributes requirements established by the Commissioner that the Non-Borrowing Spouse must satisfy in order to be eligible for the Deferral Period. (b) Ineligible Non-Borrowing Spouse - A Non-Borrowing Spouse who does not meet the Qualifying Attributes requirements established by the Commissioner that the Non-Borrowing Spouse must satisfy in order to be eligible for the Deferral Period. 10. Grounds for Acceleration of Debt. (a) Due and Payable - Death. (i) Except as provided in Paragraph 10(a)(ii), Lender may require immediate payment in full of all sums secured by this Security Instrument if a Borrower dies and the Property is not the Principal Residence of at least one surviving Borrower. (ii) Lender shall defer the due and payable requirement under Paragraph 10(a)(i) above for any period of time ("Deferral Period") in which a Non-Borrowing Spouse identified in Paragraph 9 qualifies as an Eligible Non-Borrowing Spouse and certifies all of the following conditions are, and continue to be, met: a. Such Eligible Non-Borrowing Spouse remained the spouse of the identified Borrower for the duration of such Borrower's lifetime; b. Such Eligible Non-Borrowing Spouse has occupied, and continues to occupy, the Property as [His/Her] Principal Residence; c. Such Eligible Non-Borrowing Spouse has established legal ownership or other ongoing legal right to remain in the Property; d. All other obligations of the Borrower under the Note, the Loan Agreement and this Security Instrument continue to be satisfied; e. The Note is not eligible to be called due and payable for any other reason. This Subparagraph (ii) is inapplicable or null and void if an Eligible Non-Borrowing Spouse is or becomes an Ineligible Non-Borrowing Spouse at any time. Further, during a deferral of the due and payable status, should any of the conditions for deferral cease to be met, such a deferral shall immediately cease and the Note will become immediately due and payable in accordance with the provisions of Paragraph 7 (A)(i) of the Note. (b) Due and Payable - Sale, Lender, , may require immediate payment in full of all sums secured by this Security Instrument if all of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for not less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the Property). A deferral of due and payable status is not permitted when a Lender requires immediate payment in full under this Paragraph. (c) Due and Payable with Commissioner Approval. - Lender, may require immediate payment in full of all sums secured by this Security Instrument, upon approval of the Commissioner, if: (i) The Property ceases to be the Principal Residence of a Borrower for reasons other than death and the Property is not the Principal Residence of at least one other Borrower; or (ii) For a period of longer than twelve (12) consecutive months, a Borrower fails to occupy the Property because of physical or mental illness and the Property is not the Principal Residence of at least one other Borrower; or (iii) An obligation of the Borrower under this Security Instrument is not performed.. A deferral of due and payable status is not permitted when a Lender requires immediate payment in full under this Paragraph 10(c). (d) Notice and Certification to Lender. Borrower shall complete and provide to the Lender on an annual basis a certification, in a form prescribed by the Lender, stating whether the Property remains the Borrower's Principal Residence and, if applicable, the Principal Residence of his or her Non-Borrowing Spouse. Where a Borrower has identified a Non-Borrowing Spouse in Paragraph 9 and the identified Non-Borrowing Spouse qualifies as an Eligible Non-Borrowing Spouse, the Borrower shall also complete and provide to the Lender on an annual basis an Eligible Non-Borrowing Spouse certification, in a form prescribed by the Lender, certifying that all requirements for the application of a Deferral Period continue to apply and continue to be met. During a Deferral Period, the annual Principal Residence certification must continue to be completed and provided to the Lender by the Eligible Non-Borrowing Spouse. The Borrower shall also notify Lender whenever any of the events listed in Paragraph 10 (b) and (c) occur. (e) Notice to Commissioner and Borrower. Lender shall notify the Commissioner and Borrower whenever the loan becomes due and payable under Paragraph 10 (b) and (c). Lender shall not have the right to commence foreclosure until Borrower has had thirty (30) days after notice to either: (i) Correct the matter which resulted in the Security Instrument coming due and payable; or (ii) Pay the balance in full; or (iii) Sell the Property for the lesser of the balance or ninety-five percent (95%) of the appraised value and apply the net proceeds of the sale toward the balance; or (iv) Provide the Lender with a deed-in-lieu of foreclosure. (f) Notice to Commissioner and Eligible Non-Borrowing Spouse. Lender shall notify the Commissioner and any Eligible Non-Borrowing Spouse whenever any event listed in Paragraph 10 (b) and (c) occurs during a Deferral Period. (g) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Commissioner, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph 10. A trust shall not be considered an occupant or be considered as having a Principal Residence for purposes of this Paragraph 10. (h) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note not be eligible for insurance under the National Housing Act within eight (8) months from the date hereof, if permitted by applicable law Lender may, at its option, require immediate payment-in-full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Commissioner dated subsequent to eight (8) months from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to Lender failure to remit a mortgage insurance premium to the Commissioner. 11. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Commissioner upon demand by the Commissioner, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 12. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full. This right applies even after foreclosure proceedings are instituted. To reinstate this Security Instrument, Borrower shall correct the condition which resulted in the requirement for immediate payment in full. Foreclosure costs and reasonable and customary attorney's fees and expenses properly associated with the foreclosure proceeding shall be added to the Principal Balance To the extent permitted by applicable law. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect as if Lender had not required immediate payment in full. However, except as otherwise provided by applicable law Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two (2) years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of the Security Instrument. 13. Deferral Period Reinstatement. If a Deferral Period ceases or becomes unavailable because a Non-Borrowing Spouse no longer satisfies the Qualifying Attributes for a Deferral Period and has become an Ineligible Non-Borrowing Spouse, neither the Deferral Period nor the Security Instrument may be reinstated. In the event a Deferral Period ceases because an obligation of the Note, the Loan Agreement, or this Security Instrument has not been met or the Note has become eligible to be called due and payable and is in default for a reason other than death, an Eligible Non-Borrowing Spouse may have a Deferral Period and this Security Instrument reinstated provided that the condition which resulted in the Deferral Period ceasing is corrected within thirty (30) days, or such longer period that may be permitted by applicable law. A Lender may require the Eligible Non-Borrowing Spouse to pay for foreclosure costs and reasonable and customary attorney's fees and expenses properly associated with the foreclosure proceeding, such costs may not be added to the Principal Balance. Upon reinstatement by the Eligible Non-Borrowing Spouse, the Deferral Period and this Security Instrument and the obligations that it secures shall remain in effect as if the Deferral Period had not ceased and the Lender had not required immediate payment in full. However, except to the extent otherwise required by applicable law, Lender is not required to permit reinstatement if: (i)the Lender has accepted a reinstatement of either the Deferral Period or this Security Instrument within the past two (2) years immediately preceding the current notification to the Eligible Non-Borrowing Spouse that the mortgage is due and payable; (ii) reinstatement of either the Deferral Period or this Security Instrument will preclude foreclosure in the future, or (iii) reinstatement of either the Deferral Period or Security Instrument will adversely affect the priority of this Security Instrument. 14. Lien Status. (a) Modification. Borrower and Mortgagor agree to extend this Security Instrument in accordance with this Paragraph 14(a). If Lender determines that the original lien status of the Security Instrument is jeopardized under state law (including but not limited to situations where the amount secured by the Security Instrument equals or exceeds the maximum principal amount stated or the maximum period under which loan advances retain the same lien priority initially granted to loan advances has expired or the priority or applicability of the Security Instrument in security or to secure future advances has been jeopardized or adversely affected) and state law permits the original lien status to be maintained for future loan advances through the execution and recordation of one or more documents, then Lender shall obtain title evidence at Borrower's expense. If the title evidence indicates that the Property is not encumbered by any liens (except this Security Instrument, the Second Security Instrument described in Paragraph 15(a) and any subordinate liens that the Lender determines will also be subordinate to any future loan advances), Lender shall request the Borrower and Mortgagor to execute any documents necessary to protect the lien status of future loan advances. Borrower and Mortgagor agree to execute such documents. If state law does not permit the original lien status to be extended to future loan advances, Borrower will be deemed to have failed to have performed an obligation under this Security Instrument. (b) Tax Deferral Programs. Borrower shall not participate in a real estate tax deferral program, if any liens created by the tax deferral are not subordinate to this Security Instrument. (c) Prior Liens. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operates to prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to all amounts secured by this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, either with respect to amounts already secured by this Security Instrument, were, if and when made, to be secured by this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within ten (10) days of the giving of notice. 15. Relationship to Second Security Instrument. (a) Second Security Instrument. In order to secure payments which the Commissioner may make to or on behalf of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement, the Commissioner has required Borrower to execute a Second Note and a Second Security Instrument on the Property. (b) Relationship of First and Second Security Instruments. Payments made by the Commissioner shall not be included in the debt under the Note unless: (i) This Security Instrument is assigned to the Commissioner; or (ii) The Commissioner accepts reimbursement by the Lender for all payments made by the Commissioner. If the circumstances described in (i) or (ii) occur, then all payments by the Commissioner, including interest on the payments, but excluding late charges paid by the Commissioner, shall be included in the debt under the Note. (c) Effect on Borrower. Where there is no assignment or reimbursement as described in (b)(i) or (ii) and the Commissioner makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under the Note, or pay any rents and revenues of the Property under Paragraph 23 to Lender or a receiver of the Property, until the Commissioner has required payment-in-full of all outstanding principal and accrued interest under the Second Note; or (ii) Be obligated to pay interest or shared appreciation under the Note at any time, whether accrued before or after the payments by the Commissioner, and whether or not accrued interest has been included in the principal balance under the Note. (d) No Duty of the Commissioner. The Commissioner has no duty to Lender to enforce covenants of the Second Security Instrument or to take actions to preserve the value of the Property, even though Lender may be unable to collect amounts owed under the Note because of restrictions in this Paragraph 15. 16. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 17. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender. Borrower may not assign any rights or obligations under this Security Instrument or under the Note, except to a trust that meets the requirements of the Commissioner. Borrower's covenants and agreements shall be joint and several. Notwithstanding anything to the contrary herein, upon the death of the last surviving Borrower, the Borrower's successors and assigns will be bound to perform Borrower's obligations under this Security Instrument. 18. Notices. Notice required or permitted by this Loan Agreement shall be provided as set forth in this Paragraph 18 unless otherwise required by applicable law. Any notice to Borrower or Mortgagor provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail. The notice shall be directed to the Property Address or any other address all Borrowers jointly designate. Notices to Mortgagor shall be given at the address provided by Mortgagor to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any address Lender designates by notice to Borrower. Except as otherwise required by applicable law any notice to a Non-Borrowing Spouse provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower, Lender, Mortgagor or Non-Borrowing Spouse when given as provided in this Paragraph 18. 19. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 20. Borrower's and Mortgagor's Copy. Borrower shall be given one conformed copy of the Note and this Security Instrument, and Mortgagor shall be given one conformed copy of this Security Instrument. 21. Third-Party Beneficiary. Except as set forth in Paragraph 10(a)(ii) and only for an Eligible Non-Borrowing Spouse, this Security Instrument does not and is not intended to confer any rights or remedies upon any person other than the parties. Borrower agrees that it is not a third-party beneficiary to the Contract of Insurance between HUD and Lender. 22. Capitalized Terms. Capitalized terms not defined in this Security Instrument shall have the meanings ascribed to them in the Loan Agreement. NON-UNIFORM COVENANTS. Borrower, Mortgagor and Lender covenant and agree as follows: 23. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each tenant of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an absolute assignment and not an assignment for additional security only, as permitted by applicable law. If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as trustee for benefit of Lender only, to be applied to the sums secured by this Security Instrument; (b) Lender shall be entitled to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this Paragraph 23. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of rents of the Property shall terminate when the debt secured by this Security Instrument is paid in full. 24. Foreclosure Procedure. If Lender requires immediate payment-in-full under Paragraph 10, Lender may invoke the power of sale for non-judicial foreclosure of the Property or commence a judicial foreclosure of the Property, and may exercise any other remedies permitted by applicable law including, but not limited to, the appointment of a receiver in conjunction with either a non-judicial foreclosure by power of sale or a judicial foreclosure, to which appointment Lender shall be entitled to as a matter of right. Lender shall be entitled to collect all costs and expenses incurred in pursuing the remedies provided in this Paragraph 24, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of sale to Borrower in the manner required by applicable law. Lender shall also publish the notice of sale, and the Property shall be sold as prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by applicable law. 25. Lien Priority. The full amount secured by this Security Instrument shall have the same priority over any other liens on the Property as if the full amount had been disbursed on the date the initial disbursement was made, regardless of the actual date of any disbursement. The amount secured by this Security Instrument shall include all direct payments by Lender to Borrower and all other loan advances permitted by this Security Instrument for any purpose. This lien priority shall apply notwithstanding any State constitution, law or regulation, except that this lien priority shall not affect the priority of any liens for unpaid State or local governmental unit special assessments or taxes. 26. Adjustable-Rate Feature. Under the Note, the initial stated interest rate of 3.522% which accrues on the unpaid principal balance ("Initial Interest Rate") is subject to change, as described below. When the interest rate changes, the new adjusted interest rate will be applied to the total outstanding principal balance. Each adjustment to the interest rate will be based upon the average of interbank offered rates for one-year U.S. dollar denominated deposits in the London Market ("LIBOR"), as published in The Wall Street Journal ("Index"), rounded to three digits to the right of the decimal point, plus a margin. If the Index is no longer available, Lender will be required to use any index prescribed by the Department of Housing and Urban Development. Lender will give Borrower notice of new index. Lender will perform the calculations described below to determine the new adjusted interest rate. The interest rate may change on April 1, 2021 and on that day of each succeeding year. ("Change Date"). Change Date means each date on which the interest rate could change. The value of the Index will be determined, using the most recent Index figure available thirty (30) days before the Change Date ("Current Index"). Before each Change Date, the new interest rate will be calculated by adding a margin to the Current Index. The sum of the margin plus the Current Index will be called the "Calculated Interest Rate" for each Change Date. The Calculated Interest Rate will be compared to the interest rate in effect immediately prior to the current Change Date (the "Existing Interest Rate"). The Calculated Interest Rate cannot be more than 2.0 percentage points higher or lower than the Existing Interest Rate, nor can it be more than 5.0 percentage points higher or lower than the Initial Interest Rate. The Calculated Interest Rate will be adjusted if necessary to comply with the rate limitation(s) described above and will be in effect until the next Change Date. At any change date, if the Calculated Interest Rate equals the Existing Interest Rate, the interest rate will not change. 27. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs unless applicable law provides otherwise. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under applicable law. 28. Waiver of Appraisement. Appraisal of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 29. Obligatory Loan Advances. Lender's responsibility to make Loan Advances under the terms of the Loan Agreement, including Loan Advances of principal to Borrower, as well as Loan Advances for interest, MIP, Servicing Fees and other charges, is obligatory. 30. Notice of Power of Sale. A power of sale has been granted in this Security Instrument. A power of sale may allow the Lender to take the Property and sell it without going to court in a foreclosure action upon default by Borrower under this Security Instrument. 31. Riders to this Security Instrument. If one or more riders are executed by Borrower and Mortgagor, and recorded together with this Security Instrument, the covenants of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es).] ☐ Condominium Rider ☐ Planned Unit Development Rider ☐ Other [Specify] 31. Nominee Capacity of MERS. MERS Serves as mortgagee of record and secured party solely as nominee for Lender and its successors and assigns and holds legal title to the interests granted, assigned, and transferred herein. All payments or deposits with respect to the Secured Obligations shall be made to Lender, all advances under the Loan Documents shall be made by Lender, and all consents, approvals, or other determinations required or permitted of Mortgagee herein shall be made by Lender. MERS shall at all times comply with the instructions of Lender and its successors and assigns. If necessary to comply with law or custom, MERS (for the benefit of Lender and its successors and assigns) may be directed by Lender to exercise any or all of those interests, including without limitation, the right to foreclose and sell the Property, and take any action required of Lender, including without limitation, a release, discharge or reconveyance of this Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Cheryl A Arnold (SEAL) Date 3-9-2020 James K. Arnold (SEAL) Date 3-9-2020 Cheryl A Arnold, Trustee (SEAL) Date 3-9-2020 James K. Arnold, Trustee (SEAL) Date 3-9-2020 [Space Below This Line For Acknowledgment] STATE OF OKLAHOMA ) COUNTY OF Oklahoma ) ss. This instrument was acknowledged before me on 9th March 2020 [date], by James K. Arnold, Chevy #. #5001d . (name(s) of person(s)). Esther Beatrice Mills notary public my commission expires: 08/03/2020 commission no.: 04006697 Loan Originator Organization Nationwide Mortgage Licensing system and Registry Identification Number: Individual Loan Originator Nationwide Mortgage Licensing system and Registry Identification Number: EXHIBIT A Exhibit A to the Security Instrument made on March 9, 2020, by JAMES K. ARNOLD AND CHERYL A. ARNOLD, CO-TRUSTEES, (SUCH TRUSTEES HEREINAFTER REFERRED TO AS "GRANTEE") OF THE ARNOLD FAMILY REVOCABLE LIVING TRUST (THE "TRUST"), SUCH TRUST HAVING BEEN ESTABLISHED UNDER THAT CERTAIN Description of Property See Exhibit "A" attached EXHIBIT "A" [REDACTED] All of Lot Nine (9) in Block Eleven (11), in FROLICH MEADOWS ADDITION, Blocks 9 to 14, both inclusive, to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof. Parcel Id #: R141083150 For information only: 4901 ERIC DRIVE, OKLAHOMA CITY, OK 73135. Office of the County Treasurer Oklahoma County, Oklahoma MORTGAGE AFFIDAVIT Suffitc COUNTY OF OKLAHOMA ) New York ) SS. STATE OF OKLAHOMA ) In a Real Estate Mortgage executed on the 9th day of March, 2020, by James K. Arnold and Clay L. Arnold, co-trustees of the Arnold Family Revocable Living Trust as MORTGAGOR and MEPS, Inc., as nominee for Longbridge Financial, LLC as MORTGAGEE, I hereby certify that: The TERM of the mortgage or extension of mortgage is: _____ 5 years or more _____ 4 years and less than 5 years _____ 3 years and less than 4 years _____ 2 years and less than 3 years _____ Less than 2 years The AMOUNT of the mortgage or extension of mortgage, subject to Mortgage Tax, is $180,000.00. Mortgage Tax Payment of $180.00 (excluding $5.00 certification fee) is the TOTAL TAX DUE AT THIS TIME as provided by Oklahoma Statute Title 68 § 1901 et. seq. I claim EXEMPTION from Mortgage Tax because _____________________________ (If mortgage tax has been paid, please provide the amount paid, date paid, and receipt number of all prior payments.) I verify that all of the information provided in this affidavit is true and correct to the best of my knowledge, and that I am in a position of responsibility to have this knowledge. I am Michael Ward __________________________, the affiant, signing this affidavit for the above named Mortgagee. DATE: 3-9-2020 (Signature of Affiant) _______________ (Signature of Affiant) Subscribed and sworn to before me this 9th day of March, 2020. (Seal) Notary Public My Commission Expires: 5/10/2022