BOKF, N.A. dba Bank of Oklahoma v. Shawn P. McChesney

IN THE DISTRICT COURT OF PAYNE COUNTY STATE OF OKLAHOMA BOKF, N.A. dba Bank of Oklahoma, Plaintiff, vs. SHAWN P. MCCHESNEY; AMANDA J. MCCHESNEY; OCCUPANTS OF THE PREMISES, Defendants. ) ) ) CASE NO. CJ–2020- 68 PETITION COMES NOW the Plaintiff and for its causes of action against the Defendants, alleges and states as follows: 1. Plaintiff, BOKF, N.A. dba Bank of Oklahoma, was at all times hereinafter mentioned, and now is duly organized, existing and authorized to bring this action. 2. This Court has jurisdiction for this cause of action and venue is proper in this Court. 3. That the Plaintiff does not know, and with due diligence is unable to ascertain, the true and correct name(s) of the individuals occupying the Subject Property, and therefore sues said individuals by the names of Occupants of the Premises, whose true and correct names are unknown to Plaintiff. That said individuals are made party Defendants herein to foreclose any right, title, or interest which they may have or claim to have in and to the Subject Property and premises herein sued upon by reason of their occupancy. 4. On the 9th day of January, 2009, Defendant, Shawn P. McChesney, made, executed and delivered to Exchange Bank & Trust Co. a promissory note, in writing, promising and agreeing to pay to the holder thereof the principal sum of $129,500.00 plus interest thereon at the rate of 6.000% per annum on the unpaid balance, payable in monthly installments of $776.42, to be applied first to the interest on the unpaid balance and the remainder to the principal until said debt is paid in full (the "Note"). A true and correct copy of the Note is attached hereto as Exhibit "A" and made a part hereof, as if incorporated herein in full. Plaintiff is the current Note holder, in possession. 5. That as part and parcel of the same transaction, and for the purpose of securing the payment of the Note and all of the indebtedness evidenced thereby, the Defendants, Shawn P. McChesney and Amanda J. McChesney, made, executed, and delivered to Exchange Bank & Trust Co., a real estate mortgage (the “Mortgage”) covering the following described real estate in Payne County, Oklahoma, to-wit: A TRACT OF LAND IN THE SOUTH HALF (S/2) OF THE NORTHEAST QUARTER (NE/4) OF SECTION THIRTY-THREE (33), TOWNSHIP EIGHTEEN (18) NORTH, RANGE THREE (3) EAST OF THE INDIAN MERIDIAN, PAYNE COUNTY, OKLAHOMA, ACCORDING TO THE U.S. GOVERNMENT SURVEY THEREOF, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID S/2 NE/4; THENENCE N00°06'20"E ALONG THE WEST LINE OF SAID S/2 NE/4, A DISTANCE OF 660.00 FEET; THENENCE S89°48'55"E, A DISTANCE OF 825.00 FEET TO THE POINT OF BEGINNING; THENENCE S00°06'20"W, A DISTANCE OF 660.00 FEET TO THE SOUTH LINE OF SAID S/2 NE/4; THENENCE S89°48'55"E, ALONG THE SOUTH LINE OF SAID S/2 NE/4, A DISTANCE OF 330.00 FEET; THENENCE N00°06'20"E, A DISTANCE OF 660.00 FEET; THENENCE N89°48'55"W, A DISTANCE OF 330.00 FEET TO THE POINT OF BEGINNING. 1997 FUQUA FH4610554X96 (the “Subject Property”) Said Mortgage was duly recorded in Book 1812 at Page 0745 in the office of the County Clerk of Payne County, Oklahoma on January 12, 2009. The mortgage tax due on said Mortgage, as provided by the laws of the State of Oklahoma, has been paid, as evidenced by the endorsement thereon. A true and correct copy of the Mortgage is attached hereto, marked Exhibit “B” and made a part hereof, as if incorporated herein in full. Said Mortgage has been assigned to Plaintiff. A true and correct copy of the Assignments are attached hereto, marked Exhibit “C” and made a part hereof, as if incorporated herein in full 6. That Plaintiff has complied with all of the terms, conditions precedent and provisions of said Note and Mortgage and is duly empowered to bring this suit. 7. That said Mortgage provides that, in addition to the monthly payments of principal and interest as provided in said Note, the Mortgagors will pay on the day monthly payments of principal and interest are payable under the Note, installments of taxes, assessments, hazard insurance, and mortgage insurance premiums relating to said property and said Mortgage. 8. That said Note and Mortgage provide that if default be made in payment of any of the monthly installments, or on failure or neglect to keep or perform any of the other conditions and covenants of the Mortgage, that the entire principal sum and accrued interest, together with all other sums secured by said Mortgage, shall at once become due and payable, at the option of the holder thereof, and the holder 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 all legal and necessary expenses and all costs. 9. That default has been made upon said Note and Mortgage in that the installments due September 1, 2019 and thereafter have not been paid. 10. By reason of the default, aforesaid, Plaintiff will be required to pay abstracting charges and other title search expenses during the pendency of this action, and Plaintiff, as provided in the Note and Mortgage, is entitled to reimbursement for these costs. 11. That said Note and Mortgage provide that in case of a foreclosure of said Mortgage and as often as any proceedings shall be taken to foreclose the same, the makers will pay an attorney's fee as therein provided, and that the same shall be a further charge and lien on said premises. 12. That after allowing all just credits there is due to Plaintiff on said Note and Mortgage the principal sum of $105,870.80 plus interest thereon accrued thereon through January 23, 2020 in the amount of $3,029.63 plus interest accruing thereafter at 6.000% per annum until paid, with abstracting expenses with interest thereon, until paid, and a reasonable attorney's fee, and for such sums as may be advanced or incurred by Plaintiff during the pendency of this action for taxes, assessments, hazard insurance premiums, expenses reasonably necessary for the preservation of the Subject Property or of the priority of Plaintiff's first mortgage lien including costs, expenses and attorney's fees incurred in any bankruptcy instituted by any particular Defendants and all expenses, costs and attorney's fees of execution and sale on any judgment hereafter entered in this cause, including poundage upon sale for which said Mortgage is a first, prior and superior lien upon the real estate and premises above described. 13. That said Mortgage specifically provides that appraisement of said property is expressly waived or not waived at the option of the mortgagee. 14. That said interest or claims arising by reason of the foregoing facts and circumstances, as well as any other right, title or interest which the Defendants named herein, or any or either of them have or claim to have, in or to the Subject Property and premises is subsequent, junior and inferior to the Mortgage and lien of the Plaintiff. 15. This is an attempt to collect a debt and any information obtained will be used for that purpose. IMPORTANT NOTICE REGARDING YOUR RIGHTS UNDER FEDERAL LAW: UNLESS YOU NOTIFY THIS OFFICE WITHIN THIRTY (30) DAYS AFTER RECEIVING THIS NOTICE THAT YOU DISPUTE THE VALIDITY OF THE DEBT, OR ANY PORTION OF THE DEBT, THIS OFFICE WILL ASSUME THAT THE DEBT IS VALID. IF YOU NOTIFY THIS OFFICE IN WRITING WITHIN THIRTY (30) DAYS FROM RECEIVING THIS NOTICE, THAT THE DEBT, OR ANY PORTION THEREOF, IS DISPUTED, THIS OFFICE WILL OBTAIN VERIFICATION OF THE DEBT (OR OBTAIN A COPY OF A JUDGMENT, IF THE DEBT HAS BEEN REDUCED TO JUDGMENT) AND MAIL THE VERIFICATION TO YOU. IN ADDITION, IF YOU REQUEST FROM THIS OFFICE IN WRITING WITHIN THIRTY (30) DAYS AFTER RECEIVING THIS NOTICE, THIS OFFICE WILL ALSO PROVIDE YOU WITH THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CURRENT CREDITOR. 16. IMPORTANT NOTICE REGARDING YOUR RIGHTS UNDER FEDERAL LAW: The law does not require me to wait until the end of the thirty-day period following first contact with you before suing you to collect the debt. Even though the law provides that your answer to the petition is to be filed in this action within 20-days you may obtain an extension of that time. Furthermore, no request will be made to the Court for a judgment until the expiration of thirty days after your receipt of this petition and summons. However, if, you request proof of the debt or the name and address of the original creditor within the thirty-day period that begins with your receipt of this petition and summons, the law requires me to cease my efforts (through litigation or otherwise) to collect the debt until I mail the requested information to you. You should consult an attorney for advice concerning your rights and obligations in this suit. 17. You are hereby notified that Plaintiff or its servicer may be reporting the defaults and/or delinquencies under the promissory note set out above, to appropriate credit reporting bureaus. WHEREFORE, premises considered, Plaintiff prays that it have judgment in personam against the Defendant, Shawn P. McChesney, and judgment in rem as to all Defendants in the principal sum of $105,870.80 plus interest thereon accrued through January 23, 2020, in the amount of $3,029.63 plus interest accruing thereafter at the rate of 6.000% per annum until paid, a reasonable attorney’s fee, plus abstracting expenses, plus advances for taxes, insurance, property preservation, late charges and court costs, accrued and accruing during the pendency of this action. Plaintiff prays for a further judgment as to the Defendants, adjudging: That Plaintiff’s Mortgage constitutes a valid first, prior, and superior lien upon the Subject Property, ordering the lien of the Mortgage be foreclosed for said sums and against each Defendant, and that the Subject Property be ordered sold, with or without appraisement as elected by Plaintiff at the time judgment is rendered, with the proceeds of said sale applied first to the costs herein, then to the payment and satisfaction of Plaintiff’s claim and judgment, with the surplus, if any, paid into Court to abide further order, and judgment determining the right, title, and interest of any and each of the Defendants and any person or entity claiming by or through them in and to the Subject Property, be subject, junior, and inferior to the Mortgage lien of Plaintiff, and adjudging upon confirmation of the sale of the property, all of the said Defendants, and all persons or entities claiming by, through or under them, or any of them, be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in or to said property, or any part thereof; and such other and further relief as the Court may deem just and equitable under the circumstances. RIGGS, ABNEY, NEAL, TURPEN, ORBISON & LEWIS By: ________________________________ Ryan J. Assink, OBA #17568 502 W. 6th Street Tulsa, OK 74119 Phone: (918) 587-3161 • Fax: (918) 587-9708 Email: [email protected] AND George M. Emerson, OBA # 13159 Chad C. Taylor, OBA # 18308 528 NW 12th Street Oklahoma City, OK 73103 Phone: (405) 843-9909 • Facsimile: (405) 842-2913 ATTORNEYS FOR PLAINTIFF VERIFICATION STATE OF OKLAHOMA ) COUNTRY OF TULSA ) ss. Ryan J. Assink, of lawful age, being first duly sworn, upon his oath states that he is the attorney for Plaintiff herein, that he has read the above and foregoing document and that the contents thereof are true and correct to the best of his knowledge and belief. Ryan J. Assink, OBA #17568 Subscribed and sworn to before me this 20th day of February, 2020. MANDY J. WADE Notary Public State of Oklahoma Commission #04007193 Expires: August 10, 2020 Case No: Loan No: NOTE (MULTISTATE FIXED RATE) THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORIZED AGENT. January 9, 2009 [Date] Stillwater [City] Oklahoma [State] 5405 E. Spiva Lane Perkins, OK 74059 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 129,500.00 (this amount is called "Principal"), plus interest, to the order of Lender. Lender is Exchange Bank & Trust Co., a Corporation I will make all payments under this Note in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 6.000 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1st day of each month beginning on March 1, 2009. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on February 1, 2039, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4301 W 6th Stillwater, OK 74074 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $ 776.42 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) MULTISTATE FIXED RATE NOTE - Single Family - FNMA/FHLMC Uniform Instrument Form 3200 1/01 Laser Forms Inc. (800) 446-3555 LFI#FNMA3200 1/01 any such loan charge shall 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. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 4.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal that has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES 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 by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE 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. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or 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. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. [Signature] Shawn P. McChesney (SEAL) -Borrower (SEAL) -Borrower (SEAL) -Borrower (SEAL) -Borrower [Sign Original Only] Pay to the order of Charter Bank without recourse Exchange Bank & Trust Co., a corporation by: Linda Dickerson Linda Dickerson, Sr. VP PAY TO THE ORDER OF WITHOUT RECOURSE CHARTER BANK BY JUDY GUTIERREZ ASSISTANT VICE PRESIDENT Oklahoma Closing and Title Services P.O. Box 2042 Stillwater, OK 74076 When Recorded Return To: Exchange Bank & Trust Co 4301 W 6th Stillwater, OK 74074 Case No: MORTGAGE THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORIZED AGENT. DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to this document. January 9, 2009 (B) "Borrower" is Shawn P. McChesney and Amanda J. McChesney, Husband and Wife Borrower is the mortgagor under this Security Instrument. (C) "Lender" is Exchange Bank & Trust Co. Lender is a Corporation organized and existing under the laws of The State of Oklahoma Lender's address is 4301 W 6th Stillwater, OK 74074 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated January 9, 2009 The Note states that Borrower owes Lender One Hundred TwentyNine Thousand Five Hundred DOLLARS and Zero CENTS Dollars (U.S. $ 129,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than February 1, 2039 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. OKLAHOMA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3037 1/01 (rev. 12/03) Laser Forms Inc. (800) 446-3555 LFI#FNMA3037 12/03 (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [ ] Adjustable Rate Rider [ ] Condominium Rider [ ] Second Home Rider [ ] Balloon Rider [ ] Planned Unit Development Rider [ ] 1-4 Family Rider [ ] Biweekly Payment Rider [X] V.A. Rider (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in the County of Payne [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] SEE ATTACHED EXHIBIT A which currently has the address of 5405 E. Spiva Lane [Street] Perkins , Oklahoma 74059 ("Property Address"): [City] [Zip Code] 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 shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower 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, except for encumbrances of record. Borrower warrants 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 and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. 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, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's 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 might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. 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. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall 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 (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower as required by Applicable Law prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall 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 Borrower, 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 Security Instrument and sale of the Property; and (e) any other information required by Applicable Law. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all costs and expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice in the manner required by Applicable Law to Borrower and any other persons prescribed 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. 23. 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. 24. Waiver of Appraisement. Appraisement 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. 25. Assumption Fee. If there is an assumption of this loan, Lender may charge an assumption fee of U.S. $ as allowed 26. 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: __________________________ Shawn P. McChesney (Seal) Shawn P. McChesney -Borrower __________________________ Amanda J. McChesney (Seal) Amanda J. McChesney -Borrower __________________________ _______________________ (Seal) -Borrower __________________________ _______________________ (Seal) -Borrower __________________________ [Space Below This Line For Acknowledgment] STATE OF OKLAHOMA, Payne County ss: The foregoing instrument was acknowledged before me this January 9, 2009 by Shawn P. McChesney and Amanda J. McChesney, Husband and Wife (date) My commission expires: (person acknowledging) Notary Public OKLAHOMA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3037 1/01 (rev. 12/03) Laser Forms Inc. (800) 445-3555 LFI#FNMA3037 12/03 EXHIBIT "A" LEGAL DESCRIPTION A tract of land in the South Half (S/2) of the Northeast Quarter (NE/4) of Section Thirty-three (33), Township Eighteen (18) North, Range Three (3) East of the Indian Meridian, Payne County, Oklahoma, according to the U.S. Government Survey thereof, being more particularly described as follows: COMMENCING at the Southwest Corner of said S/2 NE/4; Thence N00°06'20"E, along the West line of said S/2 NE/4, a distance of 660.00 feet; Thence S89°48'55"E, a distance of 825.00 feet to the POINT OF BEGINNING; Thence S00°06'20"W, a distance of 660.00 feet to the South line of said S/2 NE/4; Thence S89°48'55"E, along the South line of said S/2 NE/4, a distance of 330.00 feet; Thence N00°06'20"E, a distance of 660.00 feet; Thence N89°48'55"W, a distance of 330.00 feet to the POINT OF BEGINNING. Recording Requested By: Exchange Bank & Trust Co. 4301 W 6th Stillwater, OK 74074 (405) 742-0202 When Recorded Return To: Exchange Bank & Trust Co 4301 W 6th Stillwater, OK 74074 V.A. RIDER Loan No: V.A. Case #: Parcel/Tax ID #: NOTICE: THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORIZED AGENT. THIS V.A. RIDER is made this 9th day of January, 2009, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, Security Deed or Deed to Secure Debt ("Security Instrument") of the same date herewith, given by the undersigned ("Borrower") to secure the Borrower's Note ("Note") of the same date to Exchange Bank & Trust Co., a Corporation its successors and assigns ("Lender") and covering the property described in the instrument and located at: 5405 E. Spiva Lane Perkins, OK 74059 [Property Address] Notwithstanding anything to the contrary set forth in the Security Instrument, Lender, hereinafter referred to as "Mortgagee" and Borrower(s), hereinafter referred to as "Mortgagor(s)" hereby acknowledge and agree to the following: V.A. GUARANTEED LOAN COVENANT: In addition to the covenants and agreements made in the Security Instrument, Mortgagor(s) and Mortgagee further covenant and agree as follows: If the indebtedness secured hereby be guaranteed or insured under Title 38, United States Code, such Title and Regulations issued thereunder and in effect on the date hereof shall govern the rights, duties, and liabilities of Mortgagor(s) and Mortgagee. Any provisions of the Security Instrument or other instruments executed in connection with said indebtedness which are inconsistent with said Title or Regulations, including, but not limited to, the provision for payment of any sum in connection with prepayment of the secured indebtedness and the provision that the Mortgagee may accelerate payment of the secured indebtedness pursuant to Covenant 18 of the Security Instrument, are hereby amended or negated to the extent necessary to conform such instruments to said Title or Regulations. ACCELERATION: This loan may be declared immediately due and payable upon sale or transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant to Section 3714 of Chapter 37, Title 38, United States Code. An authorized transfer ("assumption") of the property shall also be subject to additional covenants and agreements as set forth below: FUNDING FEE: A fee equal to one-half of one percent (.5%) of the unpaid principal balance of this loan as of the date of transfer of the property shall be payable at the time of transfer to the loan holder or its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shall constitute an additional debt to that already secured by this instrument, shall bear interest at the rate herein provided, and, at the option of the payee of the indebtedness hereby secured or any transferee thereof, shall be immediately due and payable. This fee is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729(c). PROCESSING FEE: Upon application for approval to allow assumption of this loan, a processing fee may be charged by the loan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved transfer is completed. The amount of this charge shall not exceed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, Title 38, United States Code applies. INDEMNITY LIABILITY: If this obligation is assumed, then the assumer hereby agrees to assume all of the obligations of the veteran under the terms of the instruments creating and securing the loan. The assumer further agrees to indemnify the Department of Veterans Affairs to the extent of any claim payment arising from the guaranty or insurance of the indebtedness created by this Security Instrument. ASSUMPTION OF ARM LOAN: If an applicant is approved by the Department of Veterans Affairs to assume a V.A. ARM Loan, they must be provided with the V.A. Adjustable Rate Mortgage Disclosure Statement. IN WITNESS WHEREOF, Mortgagor(s) has executed this V.A. Rider. Shawn McC (Seal) Amanda J. McC (Seal) Shawn P. McChesney -Borrower Amanda J. McChesney -Borrower ____________________________________ (Seal) ____________________________________________ (Seal) -Borrower -Borrower MANUFACTURED HOME RIDER TO SECURITY INSTRUMENT This Rider is made this 01/09/09, and is incorporated into and amends and supplements the Mortgage, Open-End Mortgage, Deed of Trust, or Credit Line Deed of Trust, Security Deed ("Security Instrument")of the same date given by the undersigned ("Borrower") to secure Borrower's Note to Exchange Bank ("Lender) of the same date ("Note") and covering the Property described in the Security Instrument and located at: 5405 E Spiva Lane Perkins OK 74059 (Property Address) Borrower and Lender agree that the Security Instrument is amended and supplemented to read as follows: 1. Meaning of Some Words. As used in this Rider, the term "Loan Documents" means the Note, the Security Instrument and any Construction Loan Agreement, and the term "Property", as that term is defined in the Security Instrument, includes the "Manufactured Home" described in paragraph 3 of this Rider. All terms defined in the Note or the Security Instrument shall have the same meaning in this Rider. 2. Purpose and Effect of Rider. IF THERE IS A CONFLICT BETWEEN THE PROVISIONS IN THIS RIDER AND THOSE IN THE SECURITY INSTRUMENT, THE PROVISIONS IN THE SECURITY INSTRUMENT WILL BE ELIMINATED OR MODIFIED AS MUCH AS IS NECESSARY TO MAKE ALL OF THE CONFLICTING TERMS AGREE WITH THIS RIDER. 3. Lender's Security Interest. All of Borrower's obligations secured by this Security Instrument also shall be secured by the Manufactured Home: <table> <tr> <th>USED</th> <th>1997</th> <th>FUQUA</th> </tr> <tr> <td>New/Used</td> <td>Year</td> <td>Manufacturer's Name</td> </tr> <tr> <td>SP16</td> <td>FH4610554X96</td> <td></td> </tr> <tr> <td>Model Name or Model No.</td> <td>Serial No.</td> <td>Length x Width</td> </tr> </table> 4. Affixation. Borrower covenants and agrees: (a) to affix the Manufactured Home to a permanent foundation on the Property; (b) to comply with all Applicable Law regarding the affixation of the Manufactured Home to the property; (c) upon Lender’s request, to surrender the certificate of title to the Manufactured Home, if surrender is permitted by Applicable Law, and to obtain the requisite governmental approval and documentation necessary to classify the Manufactured Home as real property under Applicable Law; (d) that affixing the Manufactured Home to the Property does not violate any zoning laws or other local requirements applicable to the Property; (e) that the Manufactured Home will be, at all times and for all purposes, permanently affixed to and part of the Property. 5. Charges; Liens. Section 4, Paragraph 1 of the Security Instrument is amended to add a new third sentence to read: Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph and receipts evidencing the payments. 6. Property Insurance. Section 5, Paragraph 1 of the Security Instrument is amended to add a new second sentence to read: Whenever the Manufactured Home is transported on the highway, Borrower must have trip insurance. 7. Notices. The second sentence of Section 15 of the Security Instrument is amended by inserting the words "unless otherwise required by law" at the end. 8. Additional Events of Default. Borrower will be in default under the Security Instrument: (a) if any structure on the Property, including the Manufactured Home, shall be removed, demolished, or substantially altered; (b) if Borrower fails to comply with any requirement of Applicable Law (Lender, however, may comply and add the expense to the principal balance Borrower owes to Lender); or (c) if Borrower grants or permits any lien on the Property other than Lender's Lien, or Liens for taxes and assessments that are not yet due and payable. 9. Notice of Default. If required by Applicable Law, before using a remedy, Lender will send Borrower any notice required by law, and wait for any cure period that the law may require for that remedy. 10. Additional Rights of Lender in Event of Foreclosure and Sale. In addition to those rights granted in the Note and Security Instrument, Lender shall have the following rights in the event Lender commences proceedings for the foreclosure and sale of the Property. (a) At Lender’s option, to the extent permitted by Applicable Law, Lender may elect to treat the Manufactured Home as personal property ("Personal Property Collateral"). Lender may repossess peacefully from the place where the Personal Property Collateral is located without Borrower’s Permission. Lender also may require Borrower to make the Personal Property Collateral available to Lender at a place Lender designates that is reasonably convenient to Lender and Borrower. At Lender’s option, to the extent permitted by Applicable Law, Lender may detach and remove Personal Property Collateral from the Property, or Lender may take possession of it and leave it on the Property. Borrower agrees to cooperate with Lender if Lender exercises these rights. (b) After Lender repossesses, Lender may sell the Personal Property Collateral and apply the sale proceeds to Lender's reasonable repossession, repair, storage, and sale expenses, and then toward any other amounts Borrower owes under the Loan Documents. (c) In the event of any foreclosure sale, whether made by Trustee, or under judgment of a court, all of the real and Personal Property Collateral may, at the option of Lender, be sold as a whole or in parcels. It shall not be necessary to have present at the place of such sale the Personal Property Collateral or any part thereof. Lender, as well as Trustee on Lender's behalf, shall have all the rights, remedies and recourse with respect to the Personal Property Collateral afforded to a "Secured Party" by Applicable Law in addition to, and not in limitation of, the other rights and recourse afforded Lender and/or Trustee under the Security Instrument. By signing below, Borrower accepts and agrees to the terms and covenants contained in this Rider. [Signature] Shawn P. McChesney (Borrower) Amanda A. McChesney (Borrower) [Signature] (Borrower) (Borrower) STATE OF OKLAHOMA ) COUNTY OF PAYNE ) I, the undersigned Notary Public, in and for the aforesaid State and County, do hereby certify that Shawn P. McChesney and Amanda A. McChesney, Borrower(s), personally appeared before me in said County and acknowledged the within instrument to be their act and deed. Given under my hand and seal this 9th day of January, 2009. Notary Public State of Oklahoma County of Payne My Commission Expires: [Stamp] MANUFACTURED HOME AFFIDAVIT OF AFFIXATION State of Oklahoma ) ) ss.: County of Payne ) BEFORE ME, the undersigned notary public, on this day personally appeared Shawn P. McChesney and Amanda A. McChesney Known to me to be the person(s) whose name(s) is/are subscribed below (each a "Homeowner"), and who being by first duly sworn, did each on his or her oath state as follows: 1. Homeowner owns the manufactured home ("Home") described as follows: Used 1997 FUQUA SP16 FH4610554X96 2. The Home was built in compliance with the federal Manufactured Home Construction and Safety Standards Act. 3. If the Homeowner is the first retail buyer of the Home, Homeowner is in receipt of (i)the manufacturer's warranty for the Home, (ii) the Consumer Manual for the Home, (iii) the Insulation Disclosure for the Home, and (iv) the formaldehyde health notice for the Home. 4. The Home is or will be located at the following "Property Address": 5405 E Spiva Lane Perkins Payne OK 74059 5. The Legal description of the Property Address ("Land") is: A tract of land in the South Half (S/2) of the Northeast Quarter (NE/4) of Section Thirty-three (33), Township Eighteen (18) North, Range Three (3) East of the Indian Meridian, Payne County, Oklahoma, according to the U.S. Government Survey thereof, being more particularly described as follows: COMMENCING at the Southwest Corner of said S/2 NE/4; Thence N00°06'20"E, along the West line of said S/2 NE/4, a distance of 660.00 feet; Thence S89°48'55"E, a distance of 825.00 feet to the POINT OF BEGINNING; Thence S00°06'20"W, a distance of 660.00 feet to the South line of said S/2 NE/4; Thence S89°48'55"E, along the South line of said S/2 NE/4, a distance of 330.00 feet; Thence N00°06'20"E, a distance of 660.00 feet; Thence N89°48'55"W, a distance of 330.00 feet to the POINT OF BEGINNING. Physical Address: 5405 E Spiva Ln, Perkins, Oklahoma 6. The Homeowner is the owner of the Land or, if not the owner of the Land, is in possession of the real property pursuant to a lease in recordable form, and the consent of the lessor is attached to the Affidavit. 7. The Home x is shall be anchored to the Land by attachment to a permanent foundation, constructed in accordance with applicable state and local building codes and manufacturer's specifications in a manner sufficient to validate any applicable manufacturer's warranty, and permanently connected to appropriate residential utilities (e.g., water, gas, electricity, sewer) ("Permanently Affixed"). The Homeowner intends that the Home be an immovable fixture and a permanent improvement to the Land. 8. The Home shall be assessed and taxed as an improvement to the Land. 9. Homeowner agrees that as of today, or if the Home is not yet located at the Property Address, upon the delivery of the Home to the Property Address: (a) All permits required by governmental authorities have been obtained: (b) The foundation system for the Home was designed by an engineer to meet the soil conditions of the Land. All foundations are constructed in accordance with applicable state and local building codes, and manufacturer's specifications in a manner sufficient to validate any applicable manufacturer's warranty. (c) The wheels, axles, towbar or hitch were removed when the Home was, or will be, placed on the Property Address; and (d) The Home is (i) Permanently Affixed to a foundation, (ii) has the characteristics of site-built housing, and (iii) is part of the Land. 10. If the Homeowner is the owner of the Land, any conveyance or financing of the Home and the Land shall be a single transaction under applicable state law. 11. Other than those disclosed in this Affidavit, the Homeowner is not aware of (i) any claim, lien, or encumbrance affecting the Home, (ii) any facts or information known to the Homeowner that could reasonably affect the validity of the title of the Home or the existence or non-existence of security interests in it. 12. A Homeowner shall initial only one of the following, as it applies to title to the Home: [ ] The Home is not covered by a certificate of title. The original manufacturer's certificate of origin, duly endorsed to the Homeowner, is attached to this Affidavit, or previously was recorded in the real property records of the jurisdiction where the Home is to be located. [ ] The Home is not covered by a certificate of title. After diligent search and inquiry, the Homeowner is unable to produce the original manufacturer's certificate of origin. [SM] The manufacturer's certificate of origin X certificate of title to the Home X shall be has been eliminated as required by applicable law. [AM] The Home shall be covered by a certificate of title. 13. The Homeowner designates the following person to record this Affidavit in the real property records of the jurisdiction where the Home is to be located and upon its recording it shall be returned by the recording officer to same: Name: Address: Oklahoma Closing and Title Services, Inc. 601 S. Husband, Stillwater, OK 74074 14. This Affidavit is executed by Homeowner(s) pursuant to applicable state law. IN WITNESS WHEREOF, Homeowner(s) has executed this Affidavit in my presence and in the presence of the undersigned witnesses on this 01/09/09 (SEAL) Shawn P. McChesney Homeowner #1 Shawn P. McChesney Printed Name (SEAL) Amanda A. McChesney Homeowner #2 Amanda A. McChesney Printed Name (WITNESS) (WITNESS) STATE OF OKLAHOMA ) COUNTY OF PAYNE ) ss.: On 01/09/09 before me, the undersigned, a Notary Public in and for said State, personally appeared Shawn P. McChesney and Amanda A. McChesney, Husband and Wife Personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of which the individual(s) acted, executed the instrument. Amy Waters Notary Signature Amy Waters Notary Printed Name Notary Public: State of Oklahoma Qualified in the County of Payne My commission expires: Official Seal: Lender's Statement of Intent: The undersigned ("Lender") intends that the Home be an immoveable fixture and a permanent improvement to the Land. Exchange Bank & Trust Co. Lender By: [Signature] Linda Dickerson, Vice-President STATE OF OKLAHOMA ) COUNTY OF PAYNE )ss.: ) On the 9th day of January, in the year 2009 before me, the undersigned, a Notary Public in and for said State, personally appeared Linda Dickerson, Vice-President of Exchange Bank & Trust Co. Personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their/ signature(s) on the instrument, the individual(s), or the person on behalf of which the individual(s) acted, executed the instrument. Notary Signature Amy Waters Notary Printed Name Notary Public: State of ____________ Qualified in the County of ____________ My commission expires: ____________________ Official Seal: Record and Return ☒ by Mail ☐ by Pickup to: Exchange Bank 4301 W. 6th Street Stillwater, OK 74074 REAL PROPERTY AND MANUFACTURED HOME LIMITED POWER OF ATTORNEY (To execute or release title, mortgage or deed of trust, security filing, transfer of equity and insurance documents and proceeds.) The undersigned borrower(s), whether one or more, each referred to below as “I” or “me,” residing at: 5405 E Spiva Lane Perkins OK 74059 ("Present Address"). I am the Buyer/Owner of the following manufactured home (the “Manufactured Home”): <table> <tr> <th>Used</th> <th>Year</th> <th>Manufacturer's Name</th> </tr> <tr> <td>New/Used</td> <td>Year</td> <td>SP16</td> <td>FH4610554X96</td> </tr> </table> Permanently affixed to the real property located at 5405 E Spiva Lane Perkins OK 74059 (“Property Address”) and as more particularly described on Exhibit A attached hereto (the “Real Property”). I do hereby irrevocably make, constitute, appoint and authorize with full powers of substitution, Exchange Bank, (Lender”), its successors, assigns or designees as my agent and attorney-in-fact, in my name, place and stead in any way which I could do, if I were personally present, with full power of substitution and delegation, (1) to complete, execute and deliver, in my name or Lender’s name, any and all forms, certificates, assignments, designations, releases or other documentation as may be necessary or proper to implement the terms and provisions of the Security Instrument dated 01/09/09 executed by me in favor of Lender, (2) to complete, execute and deliver, in my name or in Lender’s name, any and all forms, certificates, assignments, designations, releases or other documentation as may be necessary or proper to make application for and obtain the certificate of title for the Manufactured Home and to have Lender (or its designee) designated as lienholder on the certificate of title for the Manufactured Home, (3) to complete, execute and deliver in my name or Lender’s name, any and all forms, certificates, assignments, designation, releases or other documentation as may be necessary or proper to have the Manufactured Home treated as real estate for any and all purposes under state law, including but not limited to the surrender of any certificate of title, any election to treat the Manufactured Home as real estate for tax purposes or to meet any other requirements in order for the loan/financing secured by the Manufactured Home and the Real Property to be eligible for sale on the Federal National Mortgage Association ("Fannie Mae"), the Federal Home Loan Mortgage Association ("Freddie Mac") or any other secondary market purchaser, (4) to receive, complete, execute or endorse, and deliver in my name or Lender's name any and all claim forms, agreements, assignments, releases, checks, drafts or other instruments and vehicles for the payment of money, relating to any insurance covering the Manufactured Home, the indebtedness secured by the Manufactured Home or the Real Property, and (5) to complete, sign and file, without my signature, such financing and continuation statements, amendments, and supplements thereto, mortgages, deeds of trust and other documents, including releases of these items, which I may from time to time deem necessary to prefect, preserve and protect Lender's security interest in the Manufactured Home, the Property and any other property sold with it. I acknowledge that at the time this Power of Attorney and my Security Instrument and any of the forms, certificates, assignments, designations, releases or other documentation are prepared the serial number of the manufactured housing unit may not be available or may be inaccurate. The manufactured housing unit may be a factory order in the process of being constructed. Immediately, upon Lender's receipt of the serial number, I understand and agree that the above items may be completed and/or corrected by Lender to properly disclose all the applicable home identifications, including the serial number. I understand that I will be provided with a copy of any corrected agreement. To induce any third party to act hereunder, I hereby agree that any third party receiving a duly executed copy or facsimile of this instrument may act hereunder, and I for myself and for my heirs, executors, legal representatives and assigns, hereby agree to indemnify and hold harmless any such third party from and against any and all claims that may arise against such third party by reason of such third party having relied on the provisions of this instrument. I have given this Limited Power of Attorney in connection with a loan/financing to be given by Lender and to induce Lender to make the financing available. It is coupled with an interest in the transaction and is irrevocable. This Limited Power of Attorney shall not be affected by my (our) subsequent incapacity, disability, or incompetence. I do further grant unto Lender full authority and power to do and perform any and all acts necessary or incident to the execution of the powers herein expressly granted, as fully as I might or could do if personally present. WITNESS my hand and seal this 01/09/09. Shawn P. McChesney Amanda A. McChesney State of Oklahoma ) ss.: County of Payne ) On 01/09/09 before me, the undersigned, a Notary Public in and for said State, personally appeared Shawn P. McChesney and Amanda A. McChesney, Husband and Wife personally known to me or proved to me on the basis of satisfactory evidence to be the individual (s) whose name (s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature (s) on the instrument, the individual(s), or the person on behalf of which the individual(s) acted, executed the instrument. Notary Signature Amy Waters Notary Printed Name Notary Public; State of Oklahoma Qualified in the County of Payne My Commission expires: ____________ Official Seal ____________________________ Drafted by: ____________________________ EXHIBIT "A" LEGAL DESCRIPTION A tract of land in the South Half (S/2) of the Northeast Quarter (NE/4) of Section Thirty-three (33), Township Eighteen (18) North, Range Three (3) East of the Indian Meridian, Payne County, Oklahoma, according to the U.S. Government Survey thereof, being more particularly described as follows: COMMENCING at the Southwest Corner of said S/2 NE/4; Thence N00°06'20"E, along the West line of said S/2 NE/4, a distance of 660.00 feet; Thence S89°48'55"E, a distance of 825.00 feet to the POINT OF BEGINNING; Thence S00°06'20"W, a distance of 660.00 feet to the South line of said S/2 NE/4; Thence S89°48'55"E, along the South line of said S/2 NE/4, a distance of 330.00 feet; Thence N00°06'20"E, a distance of 660.00 feet; Thence N89°48'55"W, a distance of 330.00 feet to the POINT OF BEGINNING. ASSIGNMENT OF MORTGAGE This form was prepared by (Name, address & phone number): WHEN RECORDED MAIL TO: Exchange Bank & Trust Co 4301 W 6th Stillwater, OK 74074 (405) 742-0202 Loan No: Parcel Tax ID #: Case No: For Value Received, the undersigned holder of a Mortgage (herein "Assignor") whose address is 4301 W 6th, Stillwater, OK 74074 does hereby grant, sell, assign, transfer and convey, unto the Charter Bank a corporation organized and existing under the laws of whose address is 5200 Eubank Blvd. NE, Albuquerque, NM 87111 (herein "Assignee"), a certain Mortgage dated January 9, 2009, made and executed by Shawn P. McChesney and Amanda J. McChesney, Husband and Wife to and in favor of Exchange Bank & Trust Co., a Corporation upon the following described property situated in Payne County, State of Oklahoma: 129,500.00 (Include the Original Principal Amount) Laser Forms Inc. (800) 446-3555 LF1#LF15MP 3/01 which Mortgage is of record in Book, Volume, or Liber No. BK# 1812, at page 745-764 (or as No.18120774 of the County Records of Payne County, Oklahoma, together with the note(s) and obligations therein described and the money due and to become due thereon with interest, and all rights accrued or to accrue under such Mortgage. TO HAVE AND TO HOLD the same unto Assignee, its successor and assigns, forever, subject only to the terms and conditions of the above-described Mortgage. IN WITNESS WHEREOF, the undersigned Assignor has executed this Assignment of Mortgage on January 9, 2009 Witness (Print Name) Witness (Print Name) Attest (Print Name) Exchange Bank & Trust Co. By: Linda Dickerson (Signature) (Print Name & Title) Linda Dickerson Sr. Vice President Seal: STATE OF Oklahoma COUNTY OF Payne On January 9, 2009 said County and State, personally appeared known to me to be the and executed the within instrument, that the seal affixed to said instrument is the corporate seal of said corporation, that said instrument was signed and sealed on behalf of said corporation pursuant to it's by-laws or a resolution of it's Board of Directors and that he/she acknowledges said instrument to be the free act and deed of said corporation. S. JEANNIE LAYNE NOTARY PUBLIC IN AND FOR STATE OF OKLAHOMA PAYNE COUNTY (THIS AREA FOR OFFICIAL NOTARIAL SEAL) Laser Forms Inc. (800) 446-3555 LFI #LF15MP 3/01 [Space Below This Line Reserved For Acknowledgment] before me, the undersigned, a Notary Public in and for Linda Dickerson Sr. Vice President , known to me to be of the corporation herein which executed the within instrument, that the seal affixed to said instrument is the corporate seal of said corporation, that said instrument was signed and sealed on behalf of said corporation pursuant to it's by-laws or a resolution of it's Board of Directors and that he/she acknowledges said instrument to be the free act and deed of said corporation. Notary Public My Commission Expires 01010422 Payne County, Oklahoma Page 2 of 2 BOK L#: Charter L#: Pool #: Investor #: Effective Date: 04/01/2010 ASSIGNMENT OF MORTGAGE FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency of which is hereby acknowledged, the undersigned, FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR CHARTER BANK, Santa Fe, New Mexico, WHOSE ADDRESS IS 5200 Eubank Blvd. NE, Albuquerque, NM 87111, (ASSIGNOR), by these presents does convey, grant, sell, assign, transfer and set over the described mortgage together with the certain note(s) described therein together with all interest secured thereby, all liens, and any rights due or to become due thereon to BANK OF OKLAHOMA N.A., WHOSE ADDRESS IS 7060 SOUTH YALE, TULSA, OK 74136, ITS SUCCESSORS OR ASSIGNS, (ASSIGNEE). Said mortgage bearing the date 01/09/2009, made by SHAWN P MCCHESNEY AND AMANDA J MCCHESNEY (current owner) to EXCHANGE BANK & TRUST CO. and which is recorded in Book 1812, page 0745 and/or Doc# 2009-000322 of the Records of PAYNE County, Oklahoma, to wit; SEE ATTACHED EXHIBIT A IN WITNESS WHEREOF, FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR CHARTER BANK, Santa Fe, New Mexico by Bank of Oklahoma, N.A. its Attorney-in-Fact has caused these presents to be signed by its VICE PRESIDENT this 26th day of July in the year 2010 By: ________________________________ CRYSTAL MOORE VICE PRESIDENT STATE OF FLORIDA COUNTY OF PINELLAS On this 26th day of July in the year 2010, before me appeared CRYSTAL MOORE, to me personally known, who, being by me duly sworn, did say that he is the VICE PRESIDENT of Bank of Oklahoma, N.A. as Attorney-in-Fact for FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR CHARTER BANK, Santa Fe. New Mexico and that said instrument was signed on behalf of said corporation by authority of its board of directors and said CRYSTAL-MOORE acknowledged said instrument to be the free act and deed of said corporation. CHRISTOPHER JONES Notary Public My commission expires: 08/03/2012 Prepared by: Jessica Fretwell/NTC, 2100 Alt. 19 North, Palm Harbor, FL 34683 (800)346-9152 When Recorded Return To: Bank of Oklahoma Financial C/O NTC 2100 Alt. 19 North Palm Harbor, FL 34683 BOKOA 11934656 -- CHARTER 1 JRL2640396 *11934656* A tract of land in the South Half (S/2) of the Northeast Quarter (NE/4) of Section Thirty-three (33), Township Eighteen (18) North, Range Three (3) East of the Indian Meridian, Payne County, Oklahoma; according to the U.S. Government Survey thereof, being more particularly described as follows: COMMENCING at the Southwest Corner of said S/2 NE/4; Thence N00°06'20"E, along the West line of said S/2 NE/4, a distance of 660.00 feet; Thence S89°48'55"E, a distance of 825.00 feet to the POINT OF BEGINNING; Thence S00°06'20"W, a distance of 660.00 feet to the South line of said S/2 NE/4; Thence S89°48'55"E, along the South line of said S/2 NE/4, a distance of 330.00 feet; Thence N00°06'20"E, a distance of 660.00 feet; Thence N89°48'55"W, a distance of 330.00 feet to the POINT OF BEGINNING.