Arvest Bank v. William D. Magreevy

IN THE DISTRICT COURT OF MCINTOSHCOUNTY STATE OF OKLAHOMA ARVEST BANK, ) ) ) PLAINTIFF, ) V. ) CASE NO.: CJ-20-17 WILLIAM D. MAGREEVY; UNKNOWN SPOUSE, IF ANY, ) OF WILLIAM D. MAGREEVY; UNKNOWN TENANT, IF ANY, OF 416721 E. 1210 ROAD, EUFAULA, OK 74432-5433, ) ) DEFENDANTS. ) PETITION FIRST CAUSE OF ACTION COMES NOW The Plaintiff, Arvest Bank (hereinafter referred to as "Plaintiff") for its First Cause of Action against the above named Defendant, William D. Magreevy (herein referred to as Defendants") as stated in the caption, alleges and states as follows: 1. That on or about June 3, 2016, the Defendant, William D. Magreevy, for good and valuable consideration, directly or through assumption, made, executed and delivered a certain Line of Credit Agreement/promissory note in writing of that date, whereby he promised to pay the principal sum of $40,000.00, together with interest thereon at the rate of 4.96% percent per annum. A true and correct copy of said Line of Credit Agreement/note is attached hereto as Exhibit "A" and is incorporated by reference herein. Plaintiff is the holder thereof. Said Line of Credit Agreement/note provided that in the event that said Line of Credit Agreement/note was placed in the hands of an attorney for collection, the Defendant as above stated, agreed to pay all reasonable costs for collection, including reasonable attorney's fees. 2. There has been a default made upon said Line of Credit Agreement/note, and the conditions thereof broken, in that Defendant have wholly failed, neglected and refused to make payment thereon according to the terms thereof, or to cure such default. By reason of such default, Plaintiff has elected to declare the entire indebtedness, both principal and interest, due and payable under the terms of said Line of Credit Agreement/note and mortgage, given as security therefore, and there is presently due to Plaintiff after allowing all just credits on said Line of Credit Agreement/note and mortgage the sum of $35,591.40 together with interest after October 11, 2019, on the principal balance of $34,358.65 at the rate of 4.96% percent per annum, until paid, together with accrued late charges, escrow expenses and a reasonable attorney's fee as provided in said mortgage Line of Credit Agreement/note. 3. Further, Plaintiff has or will incur the additional expense in having Abstract of Title to the mortgaged premises herein described extended to date, advances for taxes and insurance, property preservation expenses, escrow expenses and other expenses during the pendency hereof, and, by the terms of said Line of Credit Agreement/note and mortgage given as security therefore, is entitled to a judgment for such expenses. WHEREFORE, Plaintiff prays that it have judgment against the Defendant in the sum of $35,591.40, together with interest on the above stated principal balance thereon from October 11, 2019, at the rate of 4.96% percent per annum, accruing to judgment, and thereafter at the said interest rate, until paid, together with all abstracting expenses, escrow expenses, advances for taxes and insurance, property preservation costs, accrued late charges, bankruptcy fees and costs and other expenses incurred prior to or during the pendency hereof, reasonable attorney's fees for this action, all costs of this action, and all other proper relief. SECOND CAUSE OF ACTION The Plaintiff, Arvest Bank, (hereinafter referred to as "Plaintiff"), for its Second Cause of Action against the above named Defendants as stated in the caption, and each of them, alleges and incorporates all allegations contained in any previous cause of action and in addition thereto alleges and states as follows: 1. As a part of the lending transaction, and to secure the payment of said promissory Line of Credit Agreement/note as set forth in the First Cause of Action, the Defendant, William D. Magreevy, directly or through assumption, acknowledged and delivered a Real Estate Mortgage attached hereto marked Exhibit "B" and incorporated herein by reference, dated June 3, 2016, and recorded in Book 986 at Page 124 of the records of McIntosh County on or about June 14, 2016 and assigns, all right, title, interest and estate in and to the following described real property, situated in McIntosh County, State of Oklahoma, to-wit: LOTS 336, 337, 338, 339, 340, 341, 342, 343, 344 IN EAGLE BLUFF ESTATES ADDITION #3, A SUBDIVISION LOCATED IN SECTION 15, TOWNSHIP 9 NORTH, RANGE 16 EAST OF THE I.B. & M., IN MCINTOSH COUNTY, OKLAHOMA ACCORDING TO THE RECORDED PLAT THEREOF. Property Address: 416721 E 1210 Road Eufaula, OK 74432-5433 2. That said mortgage provides that if any default occurred under the Line of Credit Agreement/promissory note for which it was security, that the holder thereof is entitled to foreclose said mortgage. Plaintiff is entitled to a decree of foreclosure of its mortgage upon the above described real property and to have such premises sold to satisfy the above stated debt. 3. The Plaintiff as mortgagee will elect to have said property sold with or without appraisement at the time judgment is rendered. 4. The parties, and each of them as above named in the caption, claim some right, title, lien, estate, encumbrance, claim, assessment or interest in and to the real property involved herein, adverse to Plaintiff, which constitutes a cloud upon the title of Plaintiff, and said parties have no right, title, lien, estate, encumbrance, claim, assessment or interest, either in law or equity, in and to the real property involved herein, and such claim may be set forth more specifically below. 5. In this regard, however, Plaintiff asserts that whatever right, title, lien, estate, encumbrance, claim, assessment or interest may be claimed by any party hereto, as stated herein, such claims, titles or interests in and to the premises herein being foreclosed are junior and inferior and subject to Plaintiff's first mortgage lien, and the said parties, as above stated, should be required to set forth their rights or claims upon said real property as above described, if any, or they should be forever barred and foreclosed from asserting any right, title, claim, lien, estate, encumbrance, assessment, or interest in and to the same. 6. Plaintiff has complied with all of the terms, conditions and provisions of said note and mortgage. WHEREFORE, Plaintiff prays that it have judgment of foreclosure of its first mortgage lien and to have said mortgage declared a valid, prior and superior lien upon the real property and improvements thereon, as hereinabove described, for and in the amounts above set forth, and ordering said real property and premises sold with or without appraisement as it may elect at judgment, as provided in said mortgage and by law, subject to unpaid ad valorem taxes and tax sales, if any, to satisfy said indebtedness secured thereby, and forever barring all parties, or any of them, if applicable, from any right, title, equity, lien, estate, encumbrance, claim, assessment or interest in or to said real estate therein described adverse to the title of the purchaser at said sale, and for such other and further different relief as it may be entitled to in equity and good conscience including continued access to the subject real property during the pendency of this action in order to secure and preserve said property. W. Brent Kelley/OBA #11380 KELLEY&TAYLOR, P.C. Attorneys for Plaintiff 401 N. Hudson Ave., Suite 200 Oklahoma City, OK 73102 Phone: (405) 848-6803 Fax: (405) 848-6876 THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. NOTICE TO DEBTOR This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Unless you dispute the validity of the debt or any portion thereof, within thirty (30) days after receipt of this letter, we shall assume the debt to be valid. If you notify us in writing within the thirty (30) day period, we will obtain verification of the debt and mail you a copy. Upon your written request within the thirty (30) day period we will provide you the name and address of the original creditor if different from the current creditor. Not withstanding your right to dispute the validity of the debt within this thirty (30) day period, we may not delay in instituting a collection action. (Except as otherwise required by Fair Debt Collection Practices Act.) If you notify our office in writing to cease further communications and you so advise our office in writing, we shall not communicate further with you except to advise you of (A) We may invoke specific remedies provided by Law; or (B) To advise you that our efforts are being terminated. Home Equity Line of Credit Lender Avrest Bank - Tulsa 502 S Main Mall Tulsa, OK 74103-4425 Borrower WILLIAM D MAGREEVY 416721 E 1210 RD EUFAULA , OK 74432-5433 Summary Agreement Date: 06/03/2016 Credit Limit: $ 40,000.00 Maturity Date: 06/05/2019 If checked, see Signature Addendum for additional parties. Generally Definitions. In this Agreement, these terms have the following meanings. The pronouns "you" and "your" refer to all Borrowers signing this Agreement, jointly and individually, and each other person or legal entity that agrees to pay this Agreement. "We", "us" and "our" refer to the Lender, or any person or legal entity that acquires an interest in the Line of Credit. "Agreement" refers to this Home Equity Line of Credit, and any extensions, renewals, modifications or substitutions of it. "Automatic Withdrawal Account" means the account that you have with us from which your Minimum Payments will be automatically withdrawn. The Automatic Withdrawal Account number is N/A. "Billing Cycle" means the interval between the days or dates of regular periodic statements. "Credit Limit" means the maximum amount of principal we will permit you to owe us under this Line of Credit, at any one time. Your Credit Limit is stated at the top of this Agreement. "Initial Advance" means the amount of money we will require you to accept as an advance to open this Line of Credit. "Line of Credit" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction such as applications, security agreements, disclosures and this Agreement. "Loan Account Balance" means the sum of the unpaid principal balance advanced under the terms of this Agreement, finance charges, fees and other charges that are due, and other amounts advanced to you or others under the terms of this Line of Credit. "Minimum Payment" means the minimum payment amount required under the Minimum Payment section. "Payment Date" is the payment due date as provided on your periodic statements. "Property" means any real or personal property that secures your obligations under this Line of Credit. Other important terms are defined throughout this Agreement. Promise to Pay. You promise to pay us or our order, at our address, or at such other location as we may designate, so much of the Credit Limit as may be advanced under this Agreement, plus finance charges, fees, charges, costs, and expenses as described in this Line of Credit. Agreement Term. This Agreement begins on the Agreement Date. The "Draw Period" also begins on the Agreement Date and is the 36 Month period during the term of this Agreement that you may request advances. Tax Deductibility. You should consult a tax advisor regarding the deductibility of interest and charges under this Agreement. Advances Advance Methods. You may request advances by the following methods: • You write a check. • You request a withdrawal in person. • You request a withdrawal by phone. • You request a withdrawal by mail. • You make an advance by Safetyline or internet transfer. We will make the advance by advancing the amount directly to you, depositing it in your Transaction Account, or by paying a designated third person or account. We will record the amount as an advance and increase your Loan Account Balance. Advance Limitations. We do not have to make any advances during any period in which you have a right to cancel. Your ability to request and access advances is also subject to the following additional limitations: Initial Advance. On 06/08/2016 you will receive an Initial Advance of $ 805.00 Advance Amount. When you request an advance, we will, subject to the limitations contained in this Agreement, advance exactly the amount you request. Credit Limit. Subject to the terms and conditions of this Agreement, you may borrow on this Line of Credit up to the Credit Limit. You agree not to request or obtain an advance that will cause the unpaid principal of your Loan Account Balance to exceed the Credit Limit. You understand that we will not ordinarily grant a request for an advance that would cause the unpaid principal of your Loan Account Balance to be greater than the Credit Limit, but that we may, at our option, grant such a request without obligating ourselves to do so in the future. Your Credit Limit will not be increased if you overdraw the Line of Credit. If you exceed the Credit Limit, you agree to immediately pay the amount by which the unpaid principal of your Loan Account Balance exceeds the Credit Limit, even if we have not yet billed you. Any sums in excess of the Credit Limit will not be secured by the Property, unless they are for accrued but unpaid interest or expenditures made pursuant to the security instrument securing the Property. Finance Charges Computation of Finance Charges. Finance charges begin to accrue immediately when we make an advance to you. Finance charges will be computed as follows: To figure the finance charge for each Billing Cycle, a daily periodic rate is multiplied by the Average Daily Balance of your Loan Account Balance. We then multiply that amount by the number of days in the Billing Cycle. To figure the Average Daily Balance, we first take your Loan Account Balance at the beginning of each day, add any new advances, and subtract any payments or credits that apply to debt repayment, and any unpaid finance charges, fees and charges. This gives us the daily balance. Then, we add up all the daily balances for the Billing Cycle and divide the total by the number of days in the Billing Cycle. This gives us the Average Daily Balance. The periodic rate used in calculating the FINANCE CHARGE is 0.013589 % and the corresponding ANNUAL PERCENTAGE RATE is 4.960 %. The annual percentage rate includes interest and not other costs. Maximum Annual Percentage Rate. The maximum ANNUAL PERCENTAGE RATE that can apply during the term of this Line of Credit is 4.960 % or the maximum annual percentage rate allowed by applicable law, whichever is less. Additional Finance Charges. You agree to pay the following additional FINANCE CHARGES: • Processing Fee. $ 150.00 • Flood Certification Fee. $ 9.00 Payment Terms Payment Date. During the term of this Agreement, a Minimum Payment will be due on or before the Payment Date for any Billing Cycle in which there is an outstanding balance on your account. Your Minimum Payments will be due Monthly beginning 07/05/2016 Minimum Payment. On or before each Payment Date, you agree to make a payment of at least the Minimum Payment amount. The Minimum Payment will equal any amount past due, any fees and charges that are due, and the following: [X] The amount of accrued finance charges on the last day of the Billing Cycle. ☐ The amount of accrued finance charges plus % of the principal balance outstanding on the last day of the Billing Cycle. Rounding. The Minimum Payment will be rounded up to the nearest $.01. Payment At Maturity. On the Maturity Date you must pay the entire outstanding Loan Account Balance. Principal Reduction. Draw Period. During the Draw Period, the Minimum Payment [X] will not reduce ☐ may not fully repay the principal balance outstanding on your Loan Account Balance. Final Payment. At maturity, you must pay the amount of any remaining Loan Account Balance outstanding. The Minimum Payments will not be sufficient to fully repay the principal that is outstanding on your line. If they are not, you will, to the extent permitted by law, be required to pay the entire outstanding balance in a single payment. At that time, we may, but are not obligated to, refinance this Line of Credit. If we do refinance this Line of Credit at maturity, you understand that you may have to pay some or all of the closing costs normally associated with a new loan. Additional Payment Terms. If your Loan Account Balance on a Payment Date is less than the Minimum Payment amount, you must pay only the amount necessary to reduce your Loan Account Balance to zero or to any required Minimum Balance. If you otherwise fail to fully pay the Minimum Payment amount, we may, but are not required to, advance money to you to make the payment. All the terms of this Agreement will apply to such an advance. Subject to any required Minimum Balance, you can pay off all or part of what you owe at any time. If you pay more than the Minimum Payment amount, you must continue to make your periodic Minimum Payments as otherwise required by this Agreement. Unless otherwise agreed or required by applicable law, payments and other credits will be applied first to any charges you owe other than principal and finance charges, then to any finance charges that are due, and finally to principal. No late charge will be assessed on any payment when the only delinquency is due to late fees assessed on earlier payments and the payment is otherwise full payment. ☐ Automatic Withdrawal. You authorize us to automatically withdraw the Minimum Payment from your Automatic Withdrawal Account on each Payment Date. If your Automatic Withdrawal Account does not have enough money in it to fully pay the Minimum Payment amount, we may, but are not required to, advance money to you to make the payment. All the terms of this Agreement will apply to such an advance. If your Loan Account Balance is less than the Minimum Payment amount, we will withdraw only the amount necessary to reduce your Loan Account Balance to zero. Security We have secured your obligations under this Line of Credit by taking a security interest (by way of a separate security instrument dated 08/03/2016 ) in the following Property: REAL ESTATE Property securing any other loans that you have with us may also secure this Agreement. Filing Fees. $ 42.00 Insurance Property Insurance. You may buy property insurance from anyone you want who is reasonably acceptable to us. If you buy the insurance from or through us, your premium will be $ _______ for of coverage. Credit Insurance. The insurance listed below is not required to obtain credit and we will not provide the insurance unless you sign and agree to pay the additional cost. If you want the insurance, we will obtain it for you if you qualify for coverage. The following rates are applied to the average daily principal balance to determine the premium you owe for each billing cycle. Type: Single Credit Life Rate: $1,000 You ☐ do ☒ do not want Single Credit Life. Type: Joint Credit Life Rate: $1,000 You ☐ do ☒ do not want Joint Credit Life. Type: Credit Disability Rate: $1,000 You ☐ do ☒ do not want Credit Disability. Signatures. Your signature below means you want (only) the insurance coverage(s) quoted above. If "do not" is checked, you have declined the coverage we offered. [signature] WILLIAM D MAGREEVY, Borrower DOB 10/13/1926 Date DOB DOB Other Fees and Charges You agree to pay the following additional fees and charges: • Late Charge. If a payment is late (more than 15 days after due) you will be charged 5% of the payment or $ 5.00 whichever is greater, up to a maximum of $ 24.50 • Appraisal Fee. $ 450.00 • Title Search Fee. $ 125.00 • Title Insurance. $ 0.00 • Official Fees. $ 71.00 Additional Terms Commissions. You understand and agree that we (or our affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services that you buy through us or our affiliate. Default. You will be in default if any of the following occur: • You fail to make a payment as required by this Agreement. • Your action or inaction adversely affects the Property or our rights in the Property. • You engage in fraud or material misrepresentation in connection with this Line of Credit. • You are an executive officer of ours or our affiliate and you become indebted to us or another lender in an aggregate amount greater than the amount permitted under federal laws and regulations. Suspension of Credit and Reduction of Credit Limit. We may temporarily prohibit you from obtaining additional advances or reduce your Credit Limit during any period in which any of the following are in effect: • The value of the Property securing this Line of Credit declines significantly below its appraised value for purposes of this Line of Credit. • We reasonably believe that you will not be able to meet the repayment requirements under your Line of Credit due to a material change in your financial circumstances. • You are in default of a material obligation under this Line of Credit. You understand that we consider all of your obligations to be material. Categories of obligations that we consider material include, but are not limited to: your obligation to not commit fraud or misrepresentation in connection with this Line of Credit; your obligation to meet the repayment terms of this Line of Credit; your obligation to not adversely affect the Property or our rights in the Property; your obligation to pay fees and charges; your advance obligations; your obligation to fulfill the terms of the instrument securing this Agreement, and any other security instruments on the Property; your obligation to notify us; and your obligation to provide us with information. • Government action prevents us from imposing the annual percentage rate provided for in this Agreement. • The priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less than 120 percent of your Credit Limit. • We are notified by a regulatory agency that continued advances constitute an unsafe and unsound practice. • Any Borrower requests a suspension of credit privileges. In order to reinstate your credit privileges under the original terms of this Agreement, you must send us a written request to that effect. Your credit privileges will only be reinstated if we determine that the condition that caused us to prohibit additional extensions and/or reduce the Credit Limit no longer exists. If appraisal or credit report fees are incurred in making this determination, we may (if allowed by applicable law) charge you such fees. If credit privileges were suspended at your request, they need not be reinstated unless all Borrowers request reinstatement. Remedies. After you default, and after we give any legally required notice and opportunity to cure, we may at our option do any of the following: • We may terminate this Line of Credit and make all or any part of the amount owing by the terms of this Agreement immediately due. • We may temporarily or permanently prohibit any additional advances. • We may temporarily or permanently reduce the Credit Limit. • We may demand additional security or additional parties to be obligated to pay this Agreement. • We may make a claim for any and all insurance benefits or refunds that may be available on your default. • We may make amounts advanced on your behalf immediately due, and we may add these amounts to the Loan Account Balance. • We may use any and all remedies we have under applicable law or any agreement securing this Agreement. Except as otherwise required by law, by choosing a remedy we do not give up our right to use another remedy. We do not waive a default if we choose not to use a remedy. By electing not to use any remedy, we do not waive our right to later consider the event a default and to use any remedies if the default continues or occurs again. Collection Expenses and Attorneys' Fees. On or after default, to the extent permitted by law, you agree to pay all expenses of collection, enforcement or protection of our rights and remedies under this Line of Credit. Expenses include, but are not limited to, court costs, and other legal expenses. Expenses do not include attorneys' fees except as awarded by a court in accordance with other (non UCCC) statutes of Oklahoma. To the extent permitted by the United States Bankruptcy Code, you agree to pay the reasonable attorneys' fees we incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. Set-Off. We may set off any amount due and payable under the terms of this Agreement against your right to receive money from us, unless prohibited by applicable law. Amendments. Generally, the terms of this Agreement cannot be changed. We may, however, make the following changes: • We may make changes that you agree to in writing at the time of the change. • We may make changes that will unequivocally benefit you. • We may make insignificant changes. In addition, we may make the following specific changes, upon the occurrence of the events described: • □ We will increase the ANNUAL PERCENTAGE RATE % if you fail to maintain a deposit account at our institution. • □ We will increase the ANNUAL PERCENTAGE RATE % if you cancel the agreement to pay all periodic payments by automatic withdrawal. If we are required to send notice of a change in terms, we will send the notice to your address listed above. (You should inform us of any change in address.) Termination. You may terminate this Line of Credit at any time upon written notice to us. Termination by one Borrower terminates the Line of Credit for all Borrowers. Termination will not affect your obligation to repay advances made prior to the termination, nor will it alter your duties to perform under the terms of an instrument securing this Agreement until such instrument is released. Upon termination you will return to us any remaining access devices in your possession that were issued or used in connection with the Line of Credit. Waivers and Consent. To the extent not prohibited by law and except for any required notice of right to cure for the failure to make a required payment, you waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor. To the extent not prohibited by law, you and any other party to this Line of Credit also consent to the following actions that we may take, and waive defenses that may be available based on these actions, or based on the status of a party to this Line of Credit: • We may renew or extend payments on this Agreement, regardless of the number of such renewals or extensions. • We may release any Borrower or other person who may be liable for the indebtedness under this Agreement. • We may release, substitute or impair any Property securing this Agreement. • We may invoke our right of set-off. • We may enter into any sales or repurchases of this Agreement to any person in any amounts and you waive notice of such sales or repurchases. • You agree that any Borrower is authorized to modify the terms of this Agreement or any other Line of Credit document. • We may inform any party who guarantees this Line of Credit of any loan accommodations, renewals, extensions, modifications, substitutions or future advances. • No delay or forbearance on our part in exercising any of our rights or remedies will be construed as a waiver by us, unless such waiver is in writing and is signed by us. Periodic Statements. If you have an outstanding balance on your account or have any account activity, we will send you a periodic statement at the end of each Billing Cycle. This periodic statement will reflect, among other things, credit advances, finance charges, other charges, payments made, other credits, your previous account balance and your new account balance. The periodic statement will also identify your Minimum Payment for the cycle and the Payment Date. Joint and Individual Liability and Successors. Your obligation to pay this Line of Credit is independent of the obligation of any other person who has also agreed to pay it. We may sue you alone, or anyone else who is obligated on this Line of Credit, or any number of you together, to collect on this Line of Credit. Extending this Line of Credit or new obligations under this Line of Credit, will not affect your duty under this Line of Credit and you will still be obligated to pay this Line of Credit. The duties and benefits of this Line of Credit will bind and benefit the successors and assignees of you and us. Integration and Severability. This Agreement is the complete and final expression of our agreement. If any provision of this Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. Interpretation. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Agreement. Notice, Financial Reports and Additional Documents. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address above, or to any other address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers. You will inform us in writing of any change in your name, address or other application information. You will provide us any financial statement or information we request. All financial statements and information you give us will be correct and complete. You agree to sign, deliver and file any additional documents or certifications that we may consider necessary to perfect, continue and preserve your obligations under this Line of Credit and to confirm our lien status on any Property. Time is of the essence. Credit Information. You agree to supply us with whatever information we reasonably feel we need to decide whether to continue this Line of Credit. We will make requests for this information without undue frequency, and will give you reasonable time in which to supply the information. Applicable Law. This Agreement is governed by the laws of Oklahoma, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located. YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and responsibilities under the Fair Credit Billing Act. Notify Us In Case of Errors or Questions About Your Bill If you think your bill is wrong, or if you need more information about a transaction on your bill, write us at the address listed on your bill. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, give us the following information: • Your name and account number. • The dollar amount of the suspected error. • Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your bill automatically from your savings, checking, share draft or other account, you can stop the payment on any amount you think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur. Your Rights and Our Responsibilities After We Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct. After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your Credit Limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct. Signatures You understand that terms following a ☐ only apply if checked. By signing, you agree to the terms of this Agreement. You also acknowledge receipt of a copy of this Agreement on today's date. Borrower [Signature] WILLIAM D MAGREEVY, Borrower Date Date Date Lender (Optional) Date After recording return to: Arvest Bank P.O. Box 940 Rogers, AR 72757-0940 MORTGAGE (With Future Advance Clause) 1. DATE AND PARTIES. The date of this Mortgage (Security Instrument) is .....................06/03/2016.......................... The parties and their addresses are: MORTGAGOR: WILLIAM D MAGREEVY An unmarried individual 418721 E 1210 RD EUFAULA , OK 74432-5433 □ If checked, refer to the attached Addendum incorporated herein, for additional Mortgagors, their signatures and acknowledgments. LENDER: Arvest Bank - Tulsa 502 S Main Mall Tulsa, OK 74103-4425 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (defined below) and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains, conveys and mortgages to Lender, with the power of sale, the following described property: Lots 336, 337, 338, 339, 340, 341, 342, 343, 344 in EAGLE BLUFF ESTATES ADDITION #3, a subdivision located in Section 15, Township 9 North, Range 16 East of the I.B. & M., in McIntosh County, Oklahoma, according to the recorded plat thereof. The property is located in MCINTOSH.....................................................at ..................................................... (County) 418721 E 1210 RD.................................EUFAULA............................Oklahoma 74432-5433..... (Address) (City) (ZIP Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, ditches, and water stock and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). 3. MAXIMUM OBLIGATION LIMIT. The total principal amount secured by this Security Instrument at any one time shall not exceed $ 40,000.00............................................. This limitation of amount does not include interest and other fees and charges validly made pursuant to this Security Instrument. Also, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of all promissory note(s), contract(s), guaranty(ies) or other evidence of debt described below and all their extensions, renewals, modifications or substitutions. (You must specifically identify the debt(s) secured and you should include the final maturity date of such debt(s).) The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 375090175 , dated 06/03/2016 , from Mortgagor to Lender, with a maximum credit limit of $ 40,000.00 and maturing on 06/05/2019 . B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt executed by Mortgagor in favor of Lender after this Security Instrument whether or not this Security Instrument is specifically referenced. If more than one person signs this Security Instrument, each Mortgagor agrees that this Security Instrument will secure all future advances and future obligations that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. All future advances and other future obligations are secured by this Security Instrument even though all or part may not yet be advanced. All future advances and other future obligations are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future loans or advances in any amount. Any such commitment must be agreed to in a separate writing. C. All other obligations Mortgagor owes to Lender, which may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. In the event that Lender fails to provide any required notice of the right of rescission, Lender waives any subsequent security interest in Mortgagor's principal dwelling that is created by this Security Instrument. 5. MORTGAGE COVENANTS. Mortgagor agrees that the covenants in this section are material obligations under the Secured Debt and this Security Instrument. If Mortgagor breaches any covenant in this section, Lender may refuse to make additional extensions of credit and reduce the credit limit. By not exercising either remedy on Mortgagor's breach, Lender does not waive Lender's right to later consider the event a breach if it happens again. Payments. Mortgagor agrees that all payments under the Secured Debt will be paid when due and in accordance with the terms of the Secured Debt and this Security Instrument. Prior Security Interests. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees to make all payments when due and to perform or comply with all covenants. Mortgagor also agrees not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written approval. Claims Against Title. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. Property Condition, Alterations and Inspection. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor shall not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims and actions against Mortgagor, and of any loss or damage to the Property. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Lender shall give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. Authority to Perform. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. Leaseholds; Condominiums; Planned Unit Developments. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. Condemnation. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. Insurance. Mortgagor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoration or repair of the Property or to the Secured Debt, whether or not then due, at Lender's option. Any application of proceeds to principal shall not extend or postpone the due date of the scheduled payment nor change the amount of any payment. Any excess will be paid to the Mortgagor. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. Financial Reports and Additional Documents. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem reasonably necessary. Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and Lender's lien status on the Property. 6. WARRANTY OF TITLE. Mortgagor warrants that Mortgagor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain, convey, sell and mortgage the Property. Mortgagor also warrants that the Property is unencumbered, except for encumbrances of record. 7. DUE ON SALE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, a transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. 8. DEFAULT. Mortgagor will be in default if any of the following occur: Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt that is an open end home equity plan. Payments. Any Consumer Borrower on any Secured Debt that is an open end home equity plan fails to make a payment when due. Property. Any action or inaction by the Borrower or Mortgagor occurs that adversely affects the Property or Lender's rights in the Property. This includes, but is not limited to, the following: (a) Mortgagor fails to maintain required insurance on the Property; (b) Mortgagor transfers the Property; (c) Mortgagor commits waste or otherwise destructively uses or fails to maintain the Property such that the action or inaction adversely affects Lender's security; (d) Mortgagor fails to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is senior to the lien of this Security Instrument; (e) a sole Mortgagor dies; (f) if more than one Mortgagor, any Mortgagor dies and Lender's security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed against Mortgagor and subjects Mortgagor and the Property to action that adversely affects Lender's interest; or (i) a prior lienholder forecloses on the Property and as a result, Lender's interest is adversely affected. Executive Officers. Any Borrower is an executive officer of Lender or an affiliate and such Borrower becomes indebted to Lender or another lender in an aggregate amount greater than the amount permitted under federal laws and regulations. 9. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security Instrument, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Mortgagor is in default. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure, or other notices and may establish time schedules for foreclosure actions. At the option of the Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. Lender shall be entitled to, without limitation, the power to sell the Property. If Lender invokes the power of sale, Lender shall give notice in the manner required by law to Mortgagor and any other persons entitled to receive notice. Lender shall also publish the notice of sale, and the Property shall be sold, as prescribed by law. Lender or its assignee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by law. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to recover complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it happens again. 10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Mortgagor breaches any covenant in this Security Instrument, Mortgagor agrees to pay all expenses Lender incurs in performing such covenants or protecting its security interest in the Property. Such expenses include, but are not limited to, fees incurred for inspecting, preserving, or otherwise protecting the Property and Lender's security interest. These expenses are payable on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred by Lender in collecting, enforcing or protecting Lender's rights and remedies under this Security Instrument. This amount may include, but is not limited to, reasonable attorneys' fees (not to exceed 15% of the unpaid debt after default), court costs, and other legal expenses. To the extent permitted by the United States Bankruptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees Lender incurs to collect the Secured Debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall remain in effect until released. 11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance is or will be located, stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are, and shall remain in full compliance with any applicable Environmental Law. C. Mortgagor shall immediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor shall take all necessary remedial action in accordance with any Environmental Law. D. Mortgagor shall immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation of any Environmental Law. 12. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 13. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instrument but does not sign an evidence of debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation. These rights may include, but are not limited to, any anti-deficiency or one-action laws. The duties and benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 14. SEVERABILITY; INTERPRETATION. This Security Instrument is complete and fully integrated. This Security Instrument may not be amended or modified by oral agreement. Any section in this Security Instrument, attachments, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section of this Security Instrument cannot be enforced according to its terms, that section will be severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Security Instrument are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. Time is of the essence in this Security Instrument. 15. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party’s address on page 1 of this Security Instrument, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 16. WAIVER OF APPRAISEMENT. Appraisement of the Property is waived or not waived at Lender’s option. Lender shall exercise this option before or at the time judgment is entered in any foreclosure. 17. LINE OF CREDIT. The Secured Debt includes a revolving line of credit. Although the Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. 18. APPLICABLE LAW. This Security Instrument is governed by the laws as agreed to in the Secured Debt, except to the extent required by the laws of the jurisdiction where the Property is located, and applicable federal laws and regulations. 19. RIDERS. The covenants and agreements of the riders below are incorporated into and supplement and amend the terms of this Security Instrument. 20. □ ADDITIONAL TERMS. NOTICE TO MORTGAGOR: A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW LENDER TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS MORTGAGE. SIGNATURES: By signing below, Mortgagor agrees to the terms and covenants contained in this Security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on the date stated on page 1. (Signature) WILLIAM D MAGREEVY (Date) 4/3/16 (Signature) (Date) STATE OF ...Oklahoma (Individual) This instrument was acknowledged before me this 3rd day of August, 2016. by ...WILLIAM D MAGREEVY... My commission expires: 5/30/2020 Commission number: 00009094 (Assl.) AVA KOEDYKER Notary Public - State of Oklahoma Commission Number 00009094 My Commission Expires May 30, 2020