Metafund Corporation v. Robert L McVay and Anika A McVay

IN THE DISTRICT COURT OF CANADIAN COUNTY STATE OF OKLAHOMA META FUND CORPORATION, Plaintiff, vs. ROBERT L MCVAY and ANIKA A MCVAY, husband and wife; Defendants. PETITION FIRST CAUSE OF ACTION The Plaintiff, Metafund Corporation (hereinafter referred to as “Plaintiff”), for its First Cause of Action against the Defendant, ROBERT L MCVAY and ANIKA A MCVAY, husband and wife (hereinafter referred to as “Defendant”), alleges and states as follows: 1. That on or about January 17, 2019, the Defendant, for good and valuable consideration, made, executed and delivered a certain promissory note in writing of that date whereby said Defendant promised to pay the principal sum of $143,211.19, together with interest thereon at the default rate of 14.00% per annum upon default.. A true and correct copy of said note with all modifications thereto is incorporated by reference herein as Exhibit “1,” hereto. Plaintiff is now as shown on Exhibit “2,” the holder of said note. In addition an Assignment of Notes and Mortgages as shown on Exhibit “2" was executed by the Defendant and such note has been assigned to Plaintiff as shown. Plaintiff has standing and is the real party in interest, was and is holder of the obligation. Said note provided that in the event that said note was placed in the hands of an attorney for collection, the Defendant, as above stated, agreed to pay all reasonable costs for collection, including reasonable attorney’s fees. 2. There has been a default made upon said note, and the conditions thereof broken, in that said Defendant has wholly failed, neglected and refused to make payment thereon according to the terms thereof, or to cure such default. By reason of such default, Plaintiff has elected to declare the entire indebtedness, both principal and interest, due and payable under the terms of said note and mortgage, given as security therefor, and there is presently due to Plaintiff after allowing all just credits on said note and mortgages the following sums, to-wit: Total Unpaid Principal and Interest of Mortgage Debt $114,363.92 together with interest after 4/13/2026 on the principal balance, at the rate of 14.00 percent per annum until paid, with all late fees and escrow balances, advances, together with an attorney’s fee, and costs as provided in said mortgage note. [No text present] 3. Further, Plaintiff has or will incur the aforesaid additional expense in having Abstract of Title to the mortgaged premises herein described extended to date, plus advances for taxes and insurance during the pendency hereof, security preservation expenses during the pendency hereof, and, by the terms of said note and mortgage given as security therefor, is entitled to a judgment for such expenses. WHEREFORE, Plaintiff prays that it have judgment against the Defendant, ROBERT L MCVAY and ANIKA A MCVAY, in the sum of $114,363.92 together with interest after 4/13/2026 on the principal balance, at the rate of 14.00 percent per annum until paid, with all late fees and escrow balances, advances, together with an attorney’s fee, and costs as provided in said mortgage note., accruing to judgment, and thereafter at the said interest rate, until paid, together with abstracting and other expenses incurred during the pendency hereof, security preservation costs, all costs of this action, and all other proper relief. SECOND CAUSE OF ACTION The Plaintiff, Metafund Corporation (hereinafter referred to as “Plaintiff”), for its Second Cause of Action against the Defendant, ROBERT L MCVAY and ANIKA A MCVAY, husband and wife (hereinafter referred to as “Defendant”), alleges and states as follows: 1. That on or about January 17, 2019, the Defendant, for good and valuable consideration, made, executed and delivered a certain promissory note in writing of that date whereby said Defendant promised to pay the principal sum of $3,528.00, together with interest thereon at the default rate of 14.00% per annum. A true and correct copy of said note with all modifications thereto is incorporated by reference herein as Exhibit “3,” hereto. Plaintiff is now as shown on Exhibit “2,” the holder of said note. In addition an Assignment of Notes and Mortgages as shown on Exhibit “2” was executed by the Defendant and such note has been assigned to Plaintiff as shown. Plaintiff has standing and is the real party in interest, was and is holder of the obligation. Said note provided that in the event that said note was placed in the hands of an attorney for collection, the Defendant, as above stated, agreed to pay all reasonable costs for collection, including reasonable attorney’s fees. 2. There has been a default made upon said note, and the conditions thereof broken, in that said Defendant has wholly failed, neglected and refused to make payment thereon according to the terms thereof, or to cure such default. By reason of such default, Plaintiff has elected to declare the entire indebtedness, both principal and interest, due and payable under the terms of said note and mortgage, given as security therefor, and there is presently due to Plaintiff after allowing all just credits on said note and mortgages the following sums, to-wit: Total Unpaid Principal and Interest of Mortgage Debt $3,528.00 together with interest after 4/13/2026, on the principal balance, at the rate of 14.00 percent per annum until paid, together with an attorney’s fee, as provided in said mortgage note. 3. Further, Plaintiff has or will incur the aforesaid additional expense in having Abstract of Title to the mortgaged premises herein described extended to date, plus advances for taxes and insurance during the pendency hereof, security preservation expenses during the pendency hereof, [?] and, by the terms of said note and mortgage given as security therefor, is entitled to a judgment for such expenses. WHEREFORE, Plaintiff prays that it have judgment against the Defendant, ROBERT L MCVAY and ANIKA A MCVAY, in the sum of $3,528.00 together with interest after 4/13/2026 on the principal balance, at the rate of 14.00 percent per annum until paid, together with an attorney’s fee, accruing to judgment, and thereafter at the said interest rate, until paid, together with abstracting and other expenses incurred during the pendency hereof, security preservation costs, all costs of this action, and all other proper relief. THIRD CAUSE OF ACTION The Plaintiff, for its Third Cause of Action against the Defendant as stated in the caption, and each of them, alleges and incorporates all allegations contained in any previous cause of action and in addition thereto alleges and states as follows: 1. As a part of the lending transaction, and to secure the payment of said promissory notes as set forth in the First and Second Cause of Action, the Defendant, ROBERT L MCVAY and ANIKA A MCVAY husband and wife (hereinafter referred to as “Defendant”), executed, acknowledged and delivered a purchase Real Estate Mortgage incorporated herein by reference, recorded in Book 4846 at Page 955, of the records of Canadian County and (Mortgage Tax Prepaid), Exhibit “4,” hereto, which is now in favor of the Plaintiff as shown on Exhibit “2,” hereto, thereby granting and mortgaging to Plaintiff, its successors and assigns, all right, title, interest and estate in and to the following described real property, situated in Canadian County, State of Oklahoma, to-wit: Lot Two (2), Block Seventeen (17), JOHNSON FARMS ADDITION PHASE 3, an Addition to the City of Oklahoma City, Canadian County, Oklahoma, according to the recorded plat thereof. Street Address of the Land: 3705 Johnson Farms Drive, Oklahoma City, OK 2. That said mortgage provides if any default occurred under the promissory note for which it was security, the holder thereof is entitled to foreclose said mortgage. Plaintiff is entitled to a decree of foreclosure of its mortgage upon the above described real property and to have such premises sold to satisfy the above stated debt. 3. The Plaintiff as mortgagee will elect to have said property sold with or without appraisement at the time judgment is rendered. 4. The parties,, and each of them as above named in the caption, and any occupants thereto claim some right, title, lien, estate, encumbrance, claim, assessment or interest in and to the real property involved herein, adverse to Plaintiff, which constitutes a cloud upon the title of Plaintiff, and said parties have no right, title, lien, estate, encumbrance, claim, assessment or interest, either in law or equity, in and to the real property involved herein, and such claim may be set forth more specifically below. 5. In this regard, however, Plaintiff asserts that whatever right, title, lien, estate, encumbrance, claim, assessment or interest may be claimed by any party hereto, as stated herein, such claims, titles or interests in and to the premises herein being foreclosed are junior and inferior and subject to Plaintiff's mortgage lien, and the said parties, as above stated, should be required to set forth their rights or claims upon said real property as above described, if any, or they should be forever barred and foreclosed from asserting any right, title, claim, lien, estate, encumbrance, assessment, or interest in and to the same. 6. Plaintiff has complied with all of the terms, conditions and provisions of said note and mortgage. 7. Plaintiff reserves the right to supplement this Petition upon discovering other parties, if any, that may claim an interest in the above real property. WHEREFORE, Plaintiff prays that it have judgment of foreclosure of its mortgage lien against all Defendants and to have said mortgage declared a valid, prior and superior lien upon the real property and improvements thereon, as hereinabove described, for and in the amounts above set forth, and ordering said real property and premises sold with or without appraisement as it may elect at judgment, as provided in said mortgage and by law, subject to unpaid ad valorem taxes and tax sales, if any, to satisfy said indebtedness secured thereby, and forever barring all parties, or any of them, if applicable, from any right, title, equity, lien, estate, encumbrance, claim, assessment or interest in or to said real estate therein described adverse to the title of the purchaser at said sale, and for such other and further different relief as it may be entitled to in equity and good conscience. Respectfully submitted, Hall & Ludlam, P.L.L.C. 210 Park Avenue, Suite 3001 Oklahoma City, Oklahoma 73102 Phone: (405) 600-9500 Fax: (405) 871-5403 Email: [email protected] BART A. BOREN O.B.A. NO. 970 ATTORNEYS FOR PLAINTIFF ATTORNEY'S LIEN CLAIMED This is an attempt to collect a debt. Any information obtained will be used for that purpose. This communication is from a debt collector. [?] MORTGAGE NOTE Date: 01/17/2019 Property Address: 3705 Johnson Farm Dr. Mustang, OK 73064 1. BUYER’S PROMISE TO PAY. In return for a loan that Robert L. McVay and Anika A. McVay, Husband and Wife (herein “I”, “me” or “my”, whether one or more) have received to allow me to purchase the real property located at the Property Address shown above (the “Property”), I promise to pay to the Lender the sum of: One Hundred Forty Three Thousand Two Hundred Eleven and 19/100ths Dollars ($143,211.19) (this amount will be called “principal”), plus any interest and Surplus Payment Amount, to the extent required by this Note. The Lender is Central Oklahoma Habitat for Humanity Financing, LLC. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive my payments under this Note will be called the “Noteholder”. 2. INTEREST. Interest will not be charged on the principal of this Note unless I do not pay the unpaid balance of principal on the Maturity Date. The “Maturity Date” is the earlier of (a) the due date of my last scheduled payment (called the “Scheduled Maturity Date” and set forth in Section 3 below), (b) the date I am required to pay the unpaid balance of principal in full because I am in default under this Note or the Mortgage securing this Note (the “Mortgage”), (c) any date on which all persons who have signed this Note as Buyer have died, or (d) any date on which the Property, or any interest in the Property is sold or transferred (called a “Transfer”). If I do not pay the Noteholder the full amount of principal on the Maturity Date, interest will be charged on the unpaid principal amount beginning on the Maturity Date and continuing until the full amount of principal is paid. Interest will be charged at the yearly rate of fourteen percent (14%). 3. PAYMENTS. I will pay the principal by making payments every month. I will make my monthly payments on the first (1st) day of each month beginning on March 1, 2019. My monthly principal payments will be in the amount of U.S. $477.37. I will make these payments every month until I have paid all the principal that I owe under this Note. If, on February 1, 2044 (the “Scheduled Maturity Date”) or on any earlier Maturity Date described in Section 2 above, I still owe amounts under this Note, I will pay those amounts in full on that date. I will make my monthly payments at 5005 S. I-35 Service Rd, Oklahoma City, Oklahoma 73129, or at a different place if required by the Noteholder. I will also pay any interest that is charged on the principal of this Note. I understand that, in addition to the principal and any interest I owe, the Mortgage requires me to pay the Noteholder certain amounts called “Escrow Payments.” The Escrow Payments will be due on the same day the payments of principal are due. I understand that the amount of my Escrow Payments may change from time to time. At the beginning of this loan, my total monthly payment will be as follows: (a) $477.37 in principal (this amount will not change), (b) $266.04 Escrow Payment to pay taxes and insurance, and (c) $0.00 Association Dues. Total Beginning Payment: $743.41 4. DEFAULT. If I do not pay the full amount of each monthly payment on the date it is due, I will be in default under this Note. If I am in default, the Noteholder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Noteholder may require me to pay immediately the full amount of principal which has not been paid. That date must be at least 30 days after the date the notice is delivered or mailed to me. If I do not pay the overdue amount by the date established by the Noteholder, or if I am in default under the Mortgage and do not cure that default by the date established by notice from the Noteholder, all unpaid principal will immediately become due and owing to the Noteholder without further notice and interest will be charged on the unpaid principal balance as provided in Section 2 above. If the Acceleration Date occurs during the Surplus Payment Period, I will also be required to pay a Surplus Payment Amount as provided in Section 4 above. Even if, at a time when I am in default, the Noteholder does not require me to pay immediately the full amount of principal and any Surplus Payment Amount as described above, the Noteholder will still have the right to do so if I am in default at a later time. If the Noteholder has required me to pay immediately in full as described above, the Noteholder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, the cost of the appraisal required under Section 4 and reasonable attorney’s fees. 5. NOTE SECURED BY MORTGAGE. This Note is secured by a Mortgage in favor of the Noteholder which covers the Property. This means that if the Noteholder has required me to pay immediately in full as described above, the Noteholder will have the right to have the Property sold in accordance with Oklahoma law to pay the amounts that I owe under this Note and under the Mortgage. If I am in default under the Mortgage, I will also be in default under this Note. 6. OBLIGATIONS OF PERSONS UNDER THIS NOTE: WAIVERS; NOTICES. If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. The Noteholder may enforce its rights under this Note against each person individually and against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. I and any other person who has any obligations under this Note waive the rights of presentment and notice of dishonor. Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it to me at the Property Address stated above. Sign: Robert L. McVay Sign: Anika A. McVay [?] ASSIGNMENT OF NOTES AND MORTGAGES THIS ASSIGNMENT made this 11th day of July, 2019 by Central Oklahoma Habitat for Humanity, Inc. and Central Oklahoma Habitat for Humanity Financing, LLC ("Assignors") to MetaFund Corporation ("Assignee"). WHEREAS, Assignors are the holders of certain Promissory Notes ("Notes") and Mortgages ("Mortgages") listed on Exhibit "A" attached hereto, made to the order of Central Oklahoma Habitat for Humanity, Inc. or Central Oklahoma Habitat for Humanity Financing, LLC, which Notes are secured by the Mortgages from the debtors under said notes, as grantors, to Central Oklahoma Habitat for Humanity, Inc. or Central Oklahoma Habitat for Humanity Financing, LLC, and encumbering the real property there described. NOW, THEREFORE, THIS ASSIGNMENT, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby stipulate and agree as follows: Assignors do hereby grant, transfer and assign unto MetaFund Corporation, having a mailing address of 2545 S. Kelly, Suite F, Edmond, Oklahoma 73013 ("Assignee"), without recourse, all of Assignors’ right, title and interest in, under and to the certain Mortgages, listed on Exhibit “A”, attached hereto and made a part hereof, in favor of Central Oklahoma Habitat for Humanity, Inc. or Central Oklahoma Habitat for Humanity Financing, LLC, covering the real property there described, together with the debt secured thereby and evidenced by the Notes. TO HAVE AND TO HOLD the same unto Assignee, and Assignee’s successors and assigns, forever. EXECUTED the date and year first written hereinabove. CENTRAL OKLAHOMA HABITAT FOR HUMANITY, INC. BY: Ann Felton Gilliland Chairman/CEO STATE OF OKLAHOMA ) COUNTY OF OKLAHOMA )ss. This instrument was acknowledged before me the 11th day of July 2019 by Ann Felton Gilliland as President and Chairman of Central Oklahoma Habitat for Humanity, Inc. My Commission Expires: 9/5/22 Notary Public EXHIBIT" EXHIBIT A CENTRAL OKLAHOMA HABITAT FOR HUMANITY FINANCING, LLC BY: _______________________ Ann Felton, Manager STATE OF OKLAHOMA ) COUNTY OF OKLAHOMA ) ss. This Instrument was acknowledged before me the 11th day of July, 2019, by Ann Felton as Manager of Central Oklahoma Habitat for Humanity Financing, LLC. (seal) My Commission Expires: 9-5-22 [No text present on this page] EXHIBIT "A" Dated: July 10, 2019 ASSIGNMENT OF NOTES AND MORTGAGES BETWEEN CENTRAL OKLAHOMA HABITAT FOR HUMANITY, INC. AND CENTRAL OKLAHOMA HABITAT FOR HUMANITY FINANCING, LLC, ASSIGNSORS AND META FUND CORPORATION, ASSIGNEE Canadian County <table> <tr> <th>Loan #</th> <th>Maker/Mortgagors</th> <th>Date</th> <th>Book</th> <th>Page</th> <th>Lot</th> <th>Block</th> <th>Addition</th> <th>Property City</th> <th>Property Address</th> <th>State</th> <th>Zip Code</th> </tr> <tr> <td>S1949</td> <td>McVay<br>Robert/Anika</td> <td>1/22/2019</td> <td>4846</td> <td>955</td> <td>2</td> <td>17</td> <td>Johnson Farms Addition Phase 3</td> <td>Oklahoma City</td> <td>3705 Johnson Farm Drive</td> <td>OK</td> <td>73054</td> </tr> </table> [blank page] EQUITY RECOVERY PROMISSORY NOTE CUSTOMER(S) NAME(S) Robert L. McVay and Anika A. McVay FINANCIAL INSTITUTION'S NAME Central Oklahoma Habitat for Humanity Financing, LLC CUSTOMER(S) ADDRESS 3705 Johnson Farm Dr. Mustang, OK 73064 FINANCIAL INSTITUTION'S ADDRESS 5005 S. I-35 Service Rd. Oklahoma City, OK 73129 AMOUNT $3,528.00 DATE 01/17/2019 FOR VALUE RECEIVED, the undersigned promise to pay to the order of Central Oklahoma Habitat for Humanity Financing, LLC, an Oklahoma limited liability company ("Habitat") at 5005 S. I-35 Service Rd., Oklahoma City, Oklahoma, 73129, or at such other place as may be designated in writing by the Holder of this Note, the principal sum of Three Thousand Five Hundred Twenty Eight and no/100ths Dollars ($3,528.00) WITHOUT INTEREST PRIOR TO DEFAULT. Upon default, the principal sum shall bear interest at the rate of fourteen percent (14%) per annum. This Note is secured by a mortgage of even date herewith on real property located in Canadian County, Oklahoma (the "Mortgage"). A default under the Mortgage constitutes a default under this Note. Said principal amount and all interest due thereon shall be due and payable in full in the event, prior to the date which is ten years from the date of this Note ("Waiver Date"), any of the following events occur ("Payment Triggers"): (a) the property that secures this note is transferred or sold or made subject to any wraparound financing, including a Contract for Deed or Lease with Option to Purchase or is the subject of any written or oral contract that has the effect of any of the foregoing; (b) default under this Note, the Mortgage or on any other indebtedness of Borrowers to Habitat or its affiliates or assigns. If no unwaived Payment Trigger has occurred prior to the Waiver Date, then, on the Waiver Date, and without further action by the Holder, this Note shall be deemed forgiven in full and no payment shall be due hereunder. Any waiver of any Payment Trigger by Habitat shall not be effective unless such waiver is in writing signed by an authorized representative of Habitat. All Borrowers, endorsers and parties to this instrument hereby waive demand, protest, and notice of nonpayment and agree to all extensions and partial payments before or after maturity, and agree to pay all collection charges, and if this Note be placed in the hands of an attorney after default for collection, agree to pay, in addition to the unpaid principal, a reasonable attorney's fee. The Borrowers reserve the right to repay this Note without penalty. This Note is to be construed according to the laws of the State of Oklahoma. Borrowers: Robert L. McVay Anika A. McVay [?] MORTGAGE THIS MORTGAGE ("Mortgage") is given on January 17, 2019, by Robert L. McVay and Anika A. McVay, Husband and Wife, the Borrowers, who have signed below (herein "I," "me" or "my," whether one or more) to Central Oklahoma Habitat for Humanity Financing, LLC, an Oklahoma limited liability company ("Habitat"), whose address is 5005 S. I-35 Service Road, Oklahoma City, Oklahoma 73129. I owe Habitat the principal sum of One Hundred Forty Three Thousand Two Hundred Eleven and 19/100ths Dollars ($143,211.19) AND the principal sum of $3,528.00. This debt is evidenced by my Mortgage Note (the "Note") dated the same date as this Mortgage, which provides for monthly payments. with the full debt, if not paid earlier, due and payable on February 1, 2044, and an Equity Recovery Promissory Note (the "Equity Note") dated the same date as this Mortgage that is due and payable upon the occurrence of certain Payment Triggers as defined therein, or that may be forgiven on the date that is ten years from the date of this Mortgage. This Mortgage secures to Habitat: (a) the repayment of the debt evidenced by the Note, including interest after maturity and all renewals, extensions and modifications of the Note; (b) the repayment of the debt evidenced by the Equity Note, including interest after maturity and all renewals, extensions and modifications of the Equity Note; (c) the payment of all other sums, with interest, advanced under Section 8 to protect the security of this Mortgage; and (d) the performance of my promises and agreements under this Mortgage, the Note and the Equity Note. For this purpose, I hereby mortgage, grant and convey to Habitat, with power of sale, the following described property located in Canadian County, Oklahoma: Lot Two (2), of Block Seventeen (17), in JOHNSON FARMS ADDITION PHASE 3, an Addition to the City of Oklahoma City, Canadian County, Oklahoma, according to the recorded plat thereof. AFTER RECORDING RETURN TO: Central Oklahoma Habitat for Humanity, Inc. 5005 S. I-35 Service Road Oklahoma City, OK 73129 SEND ANNUAL AD VALOREM TAX STATEMENT TO: Central Oklahoma Habitat for Humanity, Inc. 5005 S. I-35 Service Road Oklahoma City, OK 73129 which has the address of 3705 Johnson Farm Dr., Mustang, OK 73064 (the "Property Address"); TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions will also be covered by this Mortgage. All of the foregoing is referred to in this Mortgage as the "Property." I promise and agree as follows: Form HHMORT - LLC 11/15 Furnished by American Bank Systems, Inc. EXHIBIT A 1. TITLE TO PROPERTY. I own the Property and have the right to mortgage, grant and convey the Property. I warrant and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record at the time the Property was conveyed to me by Habitat. 2. PAYMENT OF PRINCIPAL AND ANY INTEREST OR SURPLUS PAYMENT AMOUNT. I will promptly pay when due the principal of the Note, any interest which accrues on the principal balance after maturity and any Surplus Payment Amount required under the Note. 3. ESCROW PAYMENTS FOR TAXES, INSURANCE AND HOMEOWNER ASSOCIATION DUES. Subject to applicable law or to a written waiver by Habitat, I will pay to Habitat on the day monthly payments are due under the Note, until the Note is paid in full, payments ("ESCROW PAYMENTS") for: (a) yearly taxes and assessments applicable to the Property; (b) yearly hazard or property insurance premiums; (c) yearly flood insurance premiums, if any; and (d) yearly homeowner association dues, if any. These items are called "ESCROW ITEMS." The Escrow Payments held by Habitat will be called the "ESCROW FUNDS." Habitat may, at any time, collect and hold Escrow Funds in an amount not to exceed the maximum amount permitted under applicable law. Habitat may estimate the amount of the Escrow Payments due on the basis of current information and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. Habitat will apply the Escrow Funds to pay the Escrow Items. Unless an agreement is made or applicable law requires interest to be paid, Habitat will not be required to pay me any interest or earnings on the Escrow Funds. If required by applicable law, Habitat will give me an annual accounting of the Escrow Funds, showing additions to, and payments from, the Escrow Funds and the purpose for which each payment from the Escrow Funds was made. I grant Habitat a security interest in the Escrow Funds to secure my promises in this Mortgage and the Note. If the Escrow Funds held by Habitat exceed the amounts permitted to be held by applicable law, Habitat will account to me for the excess Escrow Funds in accordance with the requirements of applicable law. If the amount of the Escrow Funds held by Habitat at any time is not sufficient to pay the Escrow Items when due, Habitat may so notify me in writing, and, in such case I will pay to Habitat the amount necessary to make up the deficiency. I will make up the deficiency in no more than twelve (12) monthly payments, at Habitat’s sole discretion. Upon payment in full of all sums secured by this Mortgage, Habitat will promptly refund to me any Escrow Funds held by Habitat. If, under SECTION 17, Habitat acquires or sells the Property, Habitat, prior to the acquisition or sale of the Property, will apply any Escrow Funds held by Habitat at the time of acquisition or sale as a credit against the sums secured by this Mortgage. 4. APPLICATION OF PAYMENTS. Habitat may apply my payments under the Note and this Mortgage to the principal of the Note and my Escrow Payments in any order or manner it chooses, unless applicable law provides otherwise. 5. TAXES, CHARGES; LIENS; ALTERATIONS TO THE PROPERTY. I will pay all taxes, assessments, charges, including charges for public utilities furnished to the Property, fines, liens and similar amounts attributable to the Property. I will pay these obligations in the manner provided in SECTION 3, or if not paid in that manner, I will pay them on time directly to the person owed payment. I will promptly furnish to Habitat all notices of amounts to be paid under this SECTION 5. If I make these payments directly, I will promptly furnish to Habitat receipts evidencing the payments if Habitat requests me to do so. If Habitat pays any amounts I have agreed to pay, I will promptly reimburse Habitat. Any additional improvements to the Property or any demolition or change to existing improvements on the Property will be called “ALTERATIONS.” I will not make any alterations without Habitat’s prior written [Unclear text] consent. Habitat will not unreasonably withhold its consent, but may require me to give Habitat my plans for the alterations and require me to comply with building codes, building setback lines, and restrictive covenants applicable to the Property. Habitat may withhold its consent if Habitat in good faith believes that the alterations will reduce the value of the Property or increase the risk of harm to the Property from weather or fire. 6. HAZARD OR PROPERTY INSURANCE. I will keep the improvements now existing and hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Habitat requires insurance. This insurance will be maintained in the amounts and for the periods that Habitat requires. The insurance carrier providing the insurance may be chosen by Habitat or by me with Habitat's approval which will not be unreasonably withheld. If I fail to maintain the insurance coverage described above, Habitat may, at its option, obtain coverage to protect Habitat's rights in the Property in accordance with SECTION 8. All insurance policies and renewals will be acceptable to Habitat and will include a standard mortgage clause. Habitat will have the right to hold the policies and renewals. If Habitat requires, I will promptly give Habitat all receipts of paid premiums and renewal notices. In the event of loss, I will give prompt notice to the insurance carrier and Habitat. Habitat may make proof of loss if not made promptly by me. Unless Habitat and I otherwise agree in writing, insurance proceeds will be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Habitat's security is not lessened. If the restoration or repair is not economically feasible or Habitat's security would be lessened, the insurance proceeds will be applied to the sums secured by this Mortgage, whether or not then due, with any excess paid to me. If I abandon the Property, or do not answer within 30 days a notice from Habitat that the insurance carrier has offered to settle a claim, then Habitat may collect the insurance proceeds. Habitat may use the proceeds to repair or restore the Property or to pay sums secured by this Mortgage, whether or not then due. The 30-day period will begin when the notice is given. Unless Habitat and I otherwise agree in writing, any application of proceeds to principal will not extend or postpone the due date of the monthly payments referred to in SECTIONS 2 and 3 or change the amount of the payments. If under SECTION 17 the Property is acquired by Habitat, my right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition will pass to Habitat to the extent of the sums secured by this Mortgage immediately prior to the acquisition. 7. OCCUPANCY, PRESERVATION, MAINTENANCE AND PROTECTION OF THE PROPERTY; COMPLIANCE WITH LAWS. I will occupy, establish, and use the Property as my principal residence and will continue to occupy the Property as my principal residence during the term of this Mortgage, unless Habitat otherwise agrees in writing or unless extenuating circumstances exist which are beyond my control. I will not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. I will be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Habitat's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Mortgage or Habitat's security interest. I may cure such a default by causing the action or proceeding to be dismissed with a ruling that, in Habitat's good faith determination, precludes forfeiture of my interest in the Property or other material impairment of the lien created by this Mortgage or Habitat's security interest. I will not cause or permit the presence, use, disposal, storage, or release of any hazardous substances on or in the Property. I will not do, nor allow anyone else to do, anything affecting the Property that is in violation of any law or regulation, including any environmental law. The preceding two sentences will not apply to the presence, use, or storage on the Property of small quantities of hazardous substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. [?] 8. PROTECTION OF HABITAT'S RIGHTS IN THE PROPERTY. If I fail to perform my promises and agreements contained in this Mortgage, or there is a legal proceeding that may significantly affect Habitat's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Habitat may do and pay for whatever is necessary to protect the value of the Property and Habitat's rights in the Property. Habitat's actions may include paying any sums secured by a lien which has priority over this Mortgage, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Habitat may take action under this SECTION 8, Habitat does not have to do so. Any amounts disbursed by Habitat under this SECTION 8 will become additional debt of mine secured by this Mortgage. Unless Habitat and I agree to other terms of payment, these amounts will be payable upon notice from Habitat to me requesting payment. If those amounts are not paid within five (5) days after such notice is given, those amounts will bear interest at the yearly rate stated in Section 2 of the Note. 9. INSPECTION. Habitat or its agent may make reasonable entries upon and inspections of the Property. Habitat will give me notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. 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 lieu of condemnation, are hereby assigned and will be paid to Habitat. Habitat will have the right to apply such proceeds to the sums secured by this Mortgage, whether or not then due, with any excess paid to me. If I have abandoned the Property, or if, after notice by Habitat to me that the condemnor offers to make an award or settle a claim for damages, I fail to respond to Habitat within 30 days after the date the notice is given, Habitat is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Mortgage, whether or not then due. Unless Habitat and I otherwise agree in writing, any application of proceeds to principal will not extend or postpone the due date of the monthly payments referred to in SECTIONS 2 and 3 or change the amount of such payments. 11. LENIENCY BY HABITAT NOT A WAIVER. If Habitat temporarily allows me not to perform some of my promises or agreements in this Mortgage or the Note, Habitat will still have the right to make me perform those promises or agreements later. If Habitat permanently allows me not to perform one of my promises or agreements in this Mortgage or the Note, Habitat will still have the right to make me perform my other promises and agreements contained in this Mortgage and the Note. 12. SUCCESSORS AND ASSIGNS BOUND; PURCHASE MONEY MORTGAGE; CO-SIGNERS. The promises and agreements in this Mortgage will have to be kept and performed by anyone who acquires or inherits the Property or an interest therein after the date of this Mortgage, such as a spouse (if I am not married when I sign this Mortgage) or my heirs if I die before the Note is paid in full. I understand that Habitat may require me to pay all sums secured by this Mortgage if I sell or transfer the Property, or any interest in the Property, voluntarily or involuntarily, as provided in SECTION 16 below. This Mortgage is a "PURCHASE MONEY MORTGAGE"; therefore, the lien of this Mortgage will be superior to any claimed homestead interest of my spouse if my spouse has not signed this Mortgage (Cimarron Federal Savings Association v. Jones, 832 P.2d 420 (Okla. 1992)). Each person who has signed this Mortgage as a Borrower is individually responsible for performing all of the promises and agreements in this Mortgage. 13. LOAN CHARGES. If the credit transaction secured by this Mortgage is subject to a law which sets maximum charges, and that law is finally interpreted so that the interest or other charges collected or to be [No further readable text present on this page.] collected by Habitat exceed the permitted limits, then: (a) any such charge will be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. Habitat may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to me. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge. 14. NOTICES. Any notice to me provided for in this Mortgage will be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice will be directed to the Property Address or any other address I have designated by written notice to Habitat. Any notice to Habitat will be given by first class mail to Habitat's address stated herein or any other address Habitat designates by notice to me. Any notice provided for in this Mortgage will be deemed to have been given to me or Habitat when given as provided in this SECTION 14. 15. GOVERNING LAW; PROVISIONS IN THIS MORTGAGE STAND ON THEIR OWN. This Mortgage will be governed by the laws of Oklahoma. In the event that any provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict will not affect other provisions of this Mortgage or Note which can be given effect without the conflicting provision. 16. TRANSFER OF THE PROPERTY. If all or any part of the Property or any interest in the Property is sold or transferred, voluntarily or involuntarily, Habitat may, at its option, require immediate payment in full of all sums secured by this Mortgage. If Habitat exercises this option, Habitat will give me notice of the required payment in full. The notice will provide a period of not less than 30 days from the date the notice is delivered or mailed within which I must pay all sums secured by this Mortgage, including any applicable Surplus Payment Amount. If I fail to pay these sums prior to the expiration of this period, Habitat may enforce the remedies permitted by this Mortgage without further notice or demand on me. 17. ACCELERATION; REMEDIES. Habitat will give notice to me as required by applicable law prior to requiring me to pay the full amount of principal following my failure (called a "DEFAULT") to perform any of my promises or agreements in this Mortgage (but not prior to acceleration under SECTION 16 unless applicable law provides otherwise). The notice will specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 35 days from the date the notice is given to me, by which the default must be cured; (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage and sale of the Property; and (e) any other information required by applicable law. The notice will further inform me of any other matters required by applicable law. If the default is not cured on or before the date specified in the notice, Habitat at its option may require immediate payment in full of all sums secured by this Mortgage without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Habitat will be entitled to collect all costs and expenses incurred in pursuing the remedies provided in this SECTION 17, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Habitat invokes the power of sale, Habitat will give notice in the manner required by applicable law to me and any other persons prescribed by applicable law. Habitat will also publish the notice of sale, and the Property will be sold, as prescribed by applicable law. Habitat or its designee may purchase the Property at any sale. The proceeds of the sale will be applied in the manner prescribed by applicable law. If I fail to perform any agreement in this Mortgage which relates to the protection of the value of the Property and Habitat cannot perform the agreement on my behalf without entering or taking possession of the Property, I agree that Habitat will be entitled to have receiver appointed to enter the Property and perform the agreement on my behalf. Before having a receiver appointed, Habitat will give me any notice required by applicable law. [?] 18. RELEASE. Upon payment of all sums secured by this Mortgage, Habitat will release this Mortgage without charge to me. I will pay any recordation costs unless applicable law provides otherwise. 19. WAIVER OF APPRAISEMENT. Appraisement of the Property is waived or not waived at Habitat's option, which will be exercised before or at the time judgment is entered in any foreclosure. A power of sale has been granted in this Mortgage. A power of sale may allow Habitat to take the Property and sell it without going to court in a foreclosure action upon default by Borrower under this Mortgage. BY SIGNING BELOW, I or we accept and agree to the terms and agreements contained in this Mortgage. "borrower": Sign: _______________________ Robert L. McVay "borrower": Sign: _______________________ Anika A. McVay STATE OF OKLAHOMA ) COUNTY OF OKLAHOMA ) SS. This instrument was acknowledged before me this 17th day of January, 2019, by Robert L. McVay and Anika A. McVay, Husband and Wife. [Seal] My Commission expires: 3-25-2020 Notary Public [empty page]