IN THE DISTRICT COURT OF BEAVER COUNTY
STATE OF OKLAHOMA
THE BANK OF BEAVER CITY, a State Banking Association,
Plaintiff,
vs.
CHARLES A. MADSEN
Defendant.
Case No. CJ-2025-7
PETITION
Comes Now, Plaintiff, the Bank of Beaver City, a State Banking Association ("Plaintiff"), and for its causes of action against Defendant, Charles A. Madsen, an individual, alleges and states as follows:
PARTIES, JURISDICTION, AND VENUE
1. Plaintiff is a State Banking Association with its principal place of business in Beaver County, State of Oklahoma.
2. Defendant, Charles A. Madsen, is an individual with his residence in Beaver County, State of Oklahoma.
3. Venue is proper in this Court pursuant to Okla. Stat. tit. §133.
STATEMENT OF COMMON FACTS
4. On or about December 2, 2021, the Defendant, in Beaver County, Oklahoma, executed and delivered a Promissory Note/Security Agreement ("Note 16278") in favor of Plaintiff in the principal amount of $50,000.00. A true and correct copy of the document is attached hereto as Exhibit "1".
5. Defendant has failed to make payments as required by the Note No. 16278.
6. Failure to make required payments under Note No. 16278 breached the terms of Note No. 16278.
7. On or about January 30, 2025, Plaintiff advised Defendant that he was in default, accelerated Defendant’s remaining indebtedness, and demanded payment on all that is due on Note No. 16278 by February 9, 2025. See, Demand Letter attached hereto as Exhibit "2".
8. Defendant failed to make full and complete payment on Note No. 16278 after acceleration.
CAUSE OF ACTION
BREACH OF LOAN AGREEMENTS AND PROMISSORY NOTE
9. Plaintiff hereby adopts and incorporates by reference all statements and allegations contained in paragraphs 1-8 of its Petition as if fully set forth herein and further states:
10. Pursuant to the terms of Defendant's Note with Plaintiff, Defendant was to make monthly payments in varying amounts as forth in Exhibit 1.
11. Pursuant to the terms of Defendant’s Note, in the event an incident of default occurs, Plaintiff is entitled to accelerate the Note.
12. Defendant defaulted on Note No. 16278 by failing to pay the Note as scheduled.
13. Pursuant to the terms of Defendants' Note, Plaintiff, on or about January 30, 2025 accelerated Note 16278 and declared the entire unpaid balance under the Note due, together with all unpaid interest, late charges, and attorney's fees and costs.
14. Plaintiff has fully complied with the terms of the Note and is entitled to bring this action.
15. As of February 14, 2025, there is due and owing to Plaintiff under the following Note:
<table>
<tr>
<th>Note</th>
<th>Rate</th>
<th>Outstanding Balance</th>
</tr>
<tr>
<td>16278</td>
<td>Current Index + 0.0% (Currently 0.0)</td>
<td>$45,500.00</td>
</tr>
</table>
16. The total amount due and owing under the Note is $45,500.00, as provided under the Note, plus all late charges, fees and expenses allowed thereunder.
WHEREFORE, Plaintiff prays for judgment, against Defendants, to-wit:
A. In the amount of $45,500.00 on Note No. 16278, as of February 14, 2025, plus a reasonable attorney’s fees and costs incurred herein;
B. Such other and further relief as the Court may deem just and equitable under the circumstances.
Respectfully submitted,
James W. Shepherd, OBA #19937
David M. Collins #1803
Ezzell & Shepherd, P.L.L.C.
2411 Heritage Trail, Suite 11
P.O. Box 5189
Enid, Oklahoma 73702
(580) 233-9390
(580) 233-4502 facsimile
[email protected]
[email protected]
Attorneys for Plaintiff
VERIFICATION
STATE OF OKLAHOMA ] ss.
COUNTY OF BEAVER ]
GREGG C. WEBER, of lawful age, being first duly sworn on oath, states: That I am the President of The Bank of Beaver City, the Plaintiff above named; that I have read the above and foregoing Verified Petition, that I am familiar with the contents thereof, and that the statements and allegations therein contained are true and correct to the best of my knowledge and belief.
[signature]
GREGG C. WEBER
Subscribed and sworn to before me this 14th day of February, 2025.
(SEAL)
Notary Public
My Commission Expires: 12-31-26
<table>
<tr>
<th>LOAN NUMBER</th>
<th>LOAN NAME</th>
<th>ACCT. NUMBER</th>
<th>NOTE DATE</th>
<th>INITIALS</th>
</tr>
<tr>
<td>16278</td>
<td>Charles A. Madsen</td>
<td></td>
<td>12/02/21</td>
<td>GCW</td>
</tr>
<tr>
<th>NOTE AMOUNT</th>
<th>INDEX (w/Margin)</th>
<th>RATE</th>
<th>MATURITY DATE</th>
<th>LOAN PURPOSE</th>
</tr>
<tr>
<td>$50,000.00</td>
<td>Not Applicable</td>
<td>0.000%</td>
<td>04/20/30</td>
<td>Agricultural</td>
</tr>
</table>
PROMISSORY NOTE
(Agricultural - Single Advance)
DATE AND PARTIES. The date of this Promissory Note (Note) is December 2, 2021. The parties and their addresses are:
LENDER:
THE BANK OF BEAVER CITY
130 S. Douglas/ PO Box 850
Beaver, OK 73932
Telephone: (580) 625-4511
BORROWER:
CHARLES A. MADSEN
PO Box 784
Beaver, OK 73932
1. DEFINITIONS. As used in this Note, the terms have the following meanings:
A. Pronouns. The pronouns "I," "me," and "my" refer to each Borrower signing this Note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this Note. "You" and "Your" refer to the Lender, any participants or syndicators, successors and assigns, or any person or company that acquires an interest in the Loan.
B. Note. Note refers to this document, and any extensions, renewals, modifications and substitutions of this Note.
C. Loan. Loan 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 or notes, and this Note.
D. Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan.
E. Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan.
F. Percent. Rates and rate change limitations are expressed as annualized percentages.
G. Dollar Amounts. All dollar amounts will be payable in lawful money of the United States of America.
2. PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, the principal sum of $50,000.00 (Principal) plus interest from December 2, 2021 on the unpaid Principal balance until this Note matures or this obligation is accelerated.
3. INTEREST. Interest will accrue on the unpaid Principal balance of this Note at the rate of 0.000 percent (Interest Rate).
A. Post-Maturity Interest. After maturity or acceleration, interest will accrue on the unpaid Principal balance of this Note at the Interest Rate in effect from time to time, until paid in full.
B. Maximum Interest Amount. Any amount assessed or collected as interest under the terms of this Note will be limited to the maximum lawful amount of interest allowed by applicable law. Amounts collected in excess of the maximum lawful amount will be applied first to the unpaid Principal balance. Any remainder will be refunded to me.
C. Accrual. Interest accrues using an Actual/360 days counting method.
4. PAYMENT. I agree to pay this Note in 100 payments. A payment of $500.00 will be due January 20, 2022, and on the 20th day of each month thereafter. A final payment of the entire unpaid balance of Principal and interest will be due April 20, 2030.
Payments will be rounded up to the nearest $.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will, instead, be made on the last day of such month.
Each payment I make on this Note will be applied first to interest that is due, then to principal that is due, and finally to late charges that are due. If you and I agree to a different application of payments, we will describe our agreement on this Note. You may change how payments are applied in your sole discretion without notice to me. The actual amount of my final payment will depend on my payment record.
5. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full.
6. LOAN PURPOSE. The purpose of this Loan is to settle judgement.
7. LIMITATIONS ON CROSS-COLLATERALIZATION. The cross-collateralization clause on any existing or future loan, but not including this Loan, is void and ineffective as to this Loan, including any extension or refinancing.
The Loan is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Loan is not secured by a previously executed security instrument if you fail to fulfill any necessary requirements or fail to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 570 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
12. COMMISSIONS. I understand and agree that you (or your affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services that I buy through you or your affiliate.
13. WARRANTIES AND REPRESENTATIONS. I have the right and authority to enter into this Note. The execution and delivery of this Note will not violate any agreement governing me or to which I am a party.
14. APPLICABLE LAW. This Note 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, except to the extent such state laws are preempted by federal law. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in Oklahoma, unless otherwise required by law.
15. JOINT AND SEVERAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still be obligated to pay the Loan. This Note shall inure to the benefit of and be enforceable by you and your successors and assigns and shall be binding upon and enforceable against me and my successors and assigns.
16. AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral agreement. No amendment or modification of this Note is effective unless made in writing. This Note and the other Loan Documents are the complete and final expression of the agreement. If any provision of this Note is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. No present or future agreement securing any other debt I owe you will secure the payment of this Loan if, with respect to this loan, you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property or if, as a result, this Loan would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
17. 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 Note.
18. 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 listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change in my name, address or other application information. I will provide you any correct and complete financial statements or other information you request. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence.
19. CREDIT INFORMATION. I agree to supply you with whatever information you reasonably request; You will make requests for this information without undue frequency, and will give me reasonable time in which to supply the information.
20. ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in the correction, if necessary, in the reasonable discretion of you of any and all loan closing documents so that all documents accurately describe the loan between you and me. I agree to assume all costs including by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to reasonably comply with your requests within thirty (30) days.
21. WAIVER OF JURY TRIAL. All of the parties to this Note knowingly and intentionally, irrevocably and unconditionally, waive any and all right to a trial by jury in any litigation arising out of or concerning this Note or any other Loan Document or related obligation. All of these parties acknowledge that this section has either been brought to the attention of each party's legal counsel or that each party had the opportunity to do so.
22. SIGNATURES. By signing, I agree to the terms contained in this Note. I also acknowledge receipt of a copy of this Note.
BORROWER:
[signature] Date 12/2/2021
Charles A. Madsen
LENDER:
The Bank of Beaver City
By [signature] Date 12-2-21
Gregg C. Weber, President & CEO
January 30, 2025
Charles A Madsen
PO Box 784
Beaver, OK 73932
Charles A Madsen
21625 N State Hwy 23
Beaver, OK 73932
Re: Note # 16278
Dear Charles:
Note # 16278 is past due $14,000.00 as of October 20, 2022. The Bank of Beaver City hereby declares the note in default and demands payment in full by February 9, 2025. If not cured within this timeframe, the Bank may exercise our rights afforded by the loan documents.
Please be advised the Bank will expect all payments and performance due on the Promissory Notes in the future to be made on or before the due date. The Bank’s past acceptance or acceptance in the future of any payment or performance made after the due date will not constitute a waiver of this requirement that all payments and performance be made in accordance with the terms of the Promissory Note.
Please feel free to contact me at your earliest convenience should you have any questions.
Sincerely,
Gregg L. Weber,
President & CEO
CERTIFIED / RETURN RECEIPT / RESTRICTED DELIVERY
