U.S. Bank Trust Company, National Association v. Skylar Meeks

IN THE DISTRICT COURT WITHIN AND FOR HUGHES COUNTY STATE OF OKLAHOMA U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, AS TRUSTEE, AS SUCCESSOR-IN-INTEREST TO U.S. BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS INDENTURE TRUSTEE, FOR THE HOLDERS OF THE CIM TRUST 2021-R2, MORTGAGE-BACKED NOTES, SERIES 2021-R2 Plaintiff, vs. SKYLAR MEEKS SPOUSE OF SKYLAR MEEKS OCCUPANT(S) OF THE PREMISES Defendant(s) PETITION Comes now the Plaintiff, U.S. Bank Trust Company, National Association, as Trustee, as successor-in-interest to U.S. Bank National Association, not in its individual capacity but solely as indenture trustee, for the holders of the CIM Trust 2021-R2, Mortgage-Backed Notes, Series 2021-R2, and for its cause of action against the Defendants above named, alleges and states: 1. That the Plaintiff was all times hereinafter mentioned, and now is duly organized, existing and authorized to bring this action. 2. That Amy Conn McDaniel was a single person at the time the mortgage sued upon was executed and remained a single person until her death on May 19, 2024. 3. That the original maker(s) for a good and valuable consideration, made, executed and delivered to the Payee, a certain written promissory note; a true copy of said note and endorsements thereon, if any, is hereto attached, marked Exhibit “A”, and made a part hereof by reference. 4. That as a part of the same transaction and to secure the payment of the note above described and the indebtedness represented thereby, the owners of the real estate hereinafter described, made, executed and delivered to the Payee of the note, a certain real estate mortgage in writing encumbering the following real property, to -wit: THE SOUTH 35 FEET OF LOT NINETEEN (19) AND NORTH 40 FEET OF LOT TWENTY (20), BLOCK THREE (3), DIAMOND COUNTRY CLUB ADDITION TO THE CITY OF HOLDENVILLE, HUGHES COUNTY, OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF. 5. That said mortgage was duly executed and acknowledged according to law, the mortgage tax duly paid thereon, and was recorded on December 30, 2004 in Book 1017 at Page 757 in the office of the County Clerk of Hughes County, Oklahoma, a true and correct copy of which is attached hereto as Exhibit “B” and the record thereof is incorporated herein by reference. That Plaintiff was the person entitled to enforce the Note on and before the date this action was filed. That Plaintiff has complied with all the terms, conditions precedent and provisions of said note and mortgage, and is duly empowered to bring this suit. 6. That said note and mortgage provided that if default be made in the payment of any of the monthly installments, or on failure or neglect to keep or perform any of the other conditions covenants of the mortgage, that the entire principal sum and accrued interest, together with all other sums secured by said mortgage, shall at one become due and payable, at the option of the person entitled to enforce the Note, and the person entitled to enforce the Note shall be entitled to foreclose said mortgage and recover the unpaid principal thereon and all expenditures of the mortgagee made thereunder, with interest thereon, and to have said premises sold and the proceeds applied to the payment of the indebtedness secured thereby, together with attorney fees and all costs. 7. The default has been made upon said note and mortgage in that the installments due on May 29, 2025 and thereafter have not been paid. 8. That preliminary to the bringing of this action, and as a necessary expense thereof, this Plaintiff caused title work to be extended and certified to date at a cost which charge is a further lien secured by the Mortgage of the Plaintiff herein sued upon. 9. That said note and mortgage provide that in case of a foreclosure of said mortgage as often as any proceedings shall be taken to foreclose the same, the maker(s) will pay an attorney’s fee as therein provided, and that the same shall be further charge and lien on said premises. 10. That after allowing all just credits there is due to Plaintiff on said note and mortgage the sum of: <table> <tr> <th>Reason:</th> <th>Amount:</th> </tr> <tr> <td>Unpaid Principal Balance</td> <td>$33,089.30</td> </tr> <tr> <td>Date of Default</td> <td>May 29, 2025</td> </tr> <tr> <td>Interest Due From</td> <td>April 29, 2025</td> </tr> <tr> <td>Interest Rate(s)</td> <td>6.98000%</td> </tr> </table> *or as adjusted by the Note and Mortgage including all advancements of Plaintiff, if any, for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, all costs of this action; reasonable attorney’s fees and costs as the Court may allow, for which amounts said mortgage is a first, prior and superior lien upon the real estate and premises above described. 11. That the mortgage specifically provides that appraisement of the property is expressly waived or not waived at the option of the mortgagee. 12. That the Defendant, Skylar Meeks, is the present record owner of the subject property. 13. That the Defendant, Spouse of Skylar Meeks, may claim a homestead interest in the subject property. 14. That the Defendant, Occupant(s) of the Premises, may claim some right, title lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein as occupant. Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property or be forever barred from claiming any right in and to the property. Plaintiff states, however, that any right, title, or interest claimed by each Defendant is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property to be forever barred from claiming any right in and to the property. WHEREFORE, Plaintiff prays for judgment in rem against the subject property, in the sum listed above in paragraph 10 and for a further judgment in rem against all said Defendants adjudging: That all of said Defendants to require to appear and set forth any right, title, claim or interest which they have, or may have, in and to the property; and, That the mortgage be foreclosed and that the same be declared a valid first, prior and superior lien upon the property, for and in the amounts above set forth and ordering said real estate and premises sold, for cash, with or without appraisement, as the Plaintiff shall elect, and as provided in said mortgage and by law, subject to unpaid taxes, advancements by Plaintiff for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, if any, to satisfy said judgment, and that the proceeds arising therefrom be applied to the payment of the costs herein, and the payments and satisfaction of the judgment, mortgage and lien of this Plaintiff, and that the surplus, if any, be paid into Court to abide the further order of the Court; and, That all right, title and interest of said Defendants, and each of them, if any, in and to the property be adjudged subject, junior and inferior to the mortgage lien and judgment of this Plaintiff, and that upon confirmation of such sale, the Defendants herein, and each of them, and all persons claiming by, through or under them since the commencement of this action, be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in or to the property, or any part thereof; and, That this Plaintiff have such other and further relief as may be just and equitable. [signature] Don Timberlake - # 9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 BAER & TIMBERLAKE, P.C. 5901 N. Western, Suite 300 Oklahoma City, OK 73118 Telephone: (405) 842-7722 Email: [email protected] COUNTY: OKLAHOMA STATE: OKLAHOMA ss, The above, being first duly sworn, upon oath deposes and says: That he/she is one of the attorneys for the Plaintiff in the above titled action; that he/she prepared the above and foregoing pleading, knows the contents thereof, and that to the best of his/her knowledge and belief, the matters set forth are true and correct. I state under penalty of perjury on this 23rd day of March, 2026, under the laws of Oklahoma that the foregoing is true and correct. [signature] Don Timberlake - # 9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 BAER & TIMBERLAKE, P.C. 5901 N. Western, Suite 300 Oklahoma City, OK 73118 Telephone: (405) 842-7722 Email: [email protected] THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. LENDER (called "We", "Us", "Our") HOUSEHOLD FINANCE CORPORATION 10958 NORTH MAY AVE QUAIL PLAZA SHP CNTR OKLAHOMA CITY OK 73120 BORROWERS (called "You", "Your") CONN MCDANIEL, AMY M SS# [REDACTED] 309 GRIMES HOLDENVILLE OK 74848 LOAN NO: [REDACTED] DATE OF LOAN FIRST PAYMENT DUE DATE 12/22/2004 01/22/2005 OTHERS SAME DAY OF EACH MONTH FINAL PAYMENT DUE DATE 12/22/2034 CONTRACT RATE (per year) 9.980 % AMOUNT FINANCED $ 54,054.00 PRINCIPAL $ 57,041.05 CLOSING FEE $ 135.00 OFFICIAL FEES $ 21.00 LIFE INS PREMIUM NONE DISABILITY INS PREMIUM NONE RELIF INS PREMIUM NONE ORIGINATION FEE/POINTS $ 2,862.05 TERM PERIOD 360 PREPAYMENT PENALTY NO FIRST INSTALLMENT $ 499.74 MONTHLY INSTALLMENT $ 499.74 YOU ARE GIVING US A SECURITY INTEREST IN THE REAL ESTATE LOCATED AT THE ABOVE ADDRESS. REQUIRED INSURANCE. You must obtain insurance for term of loan covering security for this loan as indicated by the word *YES* below, naming us as Loss Payee: YES Title insurance on real estate security. Hazard insurance on real estate security. Physical damage insurance on vehicle listed under "Security" above if "Y" appears under "Insured". Physical damage insurance on other property listed under "Security" above if "Y" appears under "Insured". You may obtain any required insurance from anyone you choose and may assign any other policy of insurance you own to cover the security for this loan. (See "Security" paragraph above for description of security to be insured.) NOTICE: THE FOLLOWING PAGES CONTAIN ADDITIONAL CONTRACT TERMS. PAYMENT. In return for your loan described below, you agree to pay us, the Principal and Interest computed at the Contract Rate (subject to any adjustment under the Adjustment to Contract Rate section below) and any monthly insurance premium, if elected. Principal is Amount Financed, plus Points and Closing Fee. The term Points means the Origination Fee (Points) shown on page one. You shall pay us monthly payments, at our business address or other address given you. If more than one Borrower is named on page one, we may enforce this Contract against all, or any Borrowers, but not in a combined amount greater than the amount owed. Payments are applied in the following order: late charges, interest at the Contract Rate for the actual time outstanding, principal, and insurance. For any past due amounts, payments will be applied to the most delinquent monthly installment first, in the same order shown above, until all past due monthly installments are paid in full. DATE ON WHICH INTEREST BEGINS. If you do not cancel this loan within three business days according to your "Notice of Right to Rescind," then the date on which Interest begins, payment dates, and effective date of optional insurance purchased on page one are postponed by the number of days from this Agreement's date to date you receive this loan. ADJUSTMENT TO CONTRACT RATE. The Contract Rate, as shown on page one, will decrease by one quarter of one percent (.25) beginning with the thirteenth (13th) month after every twelve (12) consecutive month period where all payments were made in full within 30 days of their due date. Up to maximum of twelve (12) Contract Rate reductions are available during the term. For each Contract Rate reduction, the monthly installment payment will be reduced accordingly. Notwithstanding anything to the contrary in this paragraph, you will not receive any Contract Rate Reductions or the reduced monthly payment after four periods of delinquency. A "period of delinquency" begins when you fail to make a payment in full within 30 days of the due date and ends when you have no payments that are outstanding for more than 30 days past their due date. PAY-OUTS. You agree to pay-outs of Amount Financed as shown on Truth-In-Lending disclosure form. If pay-outs change because loan closing is delayed, (a) you shall pay additional amounts due at closing, or (b) your cash or check will be reduced to cover additional pay-outs. PREPAYMENT. You may prepay any or all of your loan at any time. If you fully prepay before the final payment due date, the amount you owe will be reduced by unearned credit insurance charges, if any. Points and Closing Fee are fully earned when this loan is made, and you will not receive a refund of that part of the Finance Charge consisting of Points and Closing Fee. BAD CHECK CHARGE. We will charge you a fee of $25 if any payment check is returned because of insufficient funds or is otherwise dishonored. You agree that we may deduct this charge from a monthly payment. DEFAULT. If you don't pay on time, fail to keep required insurance in force, are in default under your Mortgage, or have changed your residence since the time this loan was made: (1) all your payments may become due at once, and (2) without notifying you before bringing suit, we may sue you for the entire unpaid balance of Principal and accrued Interest. If the Amount Financed stated on page one is over $3,800 (or such higher amount set by rule on the date of this Agreement), you will also pay our reasonable attorney fees not over 15% of the amount you then owe (if attorney is not our salaried employee) and our reasonable expenses incurred in realizing on any security interest. However, if the Amount Financed is $3,800 or less, (or such higher amount as set by rule on the date of this Agreement) a court may award reasonable attorney fees in accordance with the laws of the state of Oklahoma. LATE CHARGE. If you don't pay the entire monthly installment within 10 days after the due date, you agree to pay a late charge of the greater of 5% of the monthly installment (excluding any unpaid late charges and amounts due from prior billing statements), or $19.00. SECURITY. You are giving us a mortgage on your real estate, located at your address unless a different address is stated. You agree to give us a security interest in the real estate as described in Mortgage/Deed of Trust. PROPERTY INSURANCE: A. YOUR OBLIGATION TO INSURE. You shall keep the structures located on the real property securing this loan insured against damage caused by fire and other physical hazards, name us as a loss payee and deliver to us a loss payable endorsement. If insurance covering the real property is cancelled or expires while the loan is outstanding and you do not reinstate the coverage, we may obtain, at our option, hazard insurance coverage protecting our interest in the real property as outlined below. B. LENDER'S RIGHT TO PLACE HAZARD INSURANCE. You authorize us, at our option, to obtain coverage on the Property in an amount not greater than the outstanding balance of principal and interest on the loan or, if known to be less, the replacement value of the Property, in the event that you fail to maintain the required hazard insurance outlined above or fail to provide adequate proof of its existence. You authorize us to charge you for the costs of this insurance and add the insurance NOTICE: THE FOLLOWING PAGE CONTAINS ADDITIONAL CONTRACT TERMS. charges to your loan. The Insurance charges will be added to the unpaid balance of the loan which accrues interest at the Contract Rate. The addition of the insurance charges due might increase the amount of your final installment. The cost of Lender placed hazard insurance might be higher than the cost of standard insurance protecting the property. The Lender placed insurance will not insure the contents of the property or provide liability coverage. The insurance might not be the lowest cost coverage of its type available and you agree that we have no obligation to obtain the lowest cost coverage. We or an affiliated company might receive some benefit from the placement of this insurance and you will be charged for the full cost of the premium without reduction for any such benefit. If at any time after we have obtained this insurance, you provide adequate proof that you have subsequently purchased the required coverage, we will cancel the coverage we obtained and credit any unearned premiums to your loan. CREDIT REPORTING AND CUSTOMER INFORMATION PRACTICES. If you fail to fulfill the terms of your credit obligation, a negative report reflecting on your credit record may be submitted to a Credit Reporting Agency. You agree that the Department of Motor Vehicles (or your state's equivalent of such department) may release your residence address to us, should it become necessary to locate you. You agree that our supervisory personnel may listen to telephone calls between you and our representatives in order to evaluate the quality of our service to you. You understand and agree that we will call you from time to time to discuss your financial needs and any loan products that may be of interest to you as may be permitted by Applicable Law. For more information regarding our privacy practices, please refer to our Privacy Statement, which is included with your loan documents. INSURANCE. Optional credit insurance and any required insurance disclosures are attached to this Agreement and are incorporated herein by reference. ALTERNATIVE DISPUTE RESOLUTION AND OTHER RIDERS. The terms of the Arbitration Agreement and any other Riders signed as part of this loan transaction are incorporated into this Agreement by reference. APPLICABLE LAW. This is a federally related loan authorized by Section 501(a), Part A, Title V, Public Law 96-221, now known as Section 1735f-7(a), Title 12, United States Code and applicable Oklahoma law. YOU HAVE RECEIVED A COMPLETE COPY OF THIS AGREEMENT AND THE TRUTH-IN-LENDING DISCLOSURES. BORROWERS: Amy M. Conn McDaniel (SEAL) (SEAL) (SEAL) WITNESS: ALLONGE THIS ALLONGE IS TO BE PART OF THE NOTE LOAN NUMBER: [REDACTED] DATE OF NOTE: 12/22/2004 LENDER ON NOTE: HOUSEHOLD FINANCE CORPORATION III BORROWER(S): AMY M CONN MCDANIEL PROPERTY ADDRESS: 309 GRIMES, HOLDENVILLE, OK 74848 LOAN AMOUNT: $57041.05 PAY TO THE ORDER OF: WITHOUT RECORSE DLJ MORTGAGE CAPITAL, INC., BY SELECT PORTFOLIO SERVICING, INC. AS ATTORNEY IN FACT By: [Signature] EMILEE BRINKER, ASSISTANT VICE PRESIDENT ALLONGE THIS ALLONGE IS TO BE PART OF THE NOTE LOAN NUMBER: [REDACTED] DATE OF NOTE: 12/22/2004 LENDER ON NOTE: HOUSEHOLD FINANCE CORPORATION III BORROWER(S): AMY M CONN MCDANIEL PROPERTY ADDRESS: 309 GRIMES, HOLDENVILLE, OK 74848 LOAN AMOUNT: $57041.05 PAY TO THE ORDER OF: WITHOUT RE COURSE DLJ MORTGAGE CAPITAL, INC., BY SELECT PORTFOLIO SERVICING, INC. AS ATTORNEY IN FACT By: __________________________ EMILEE BRINKER, ASSISTANT VICE PRESIDENT ALLONGE THIS ALLONGE IS TO BE PART OF THE NOTE LOAN NUMBER: [REDACTED] DATE OF NOTE: 12/22/2004 LENDER ON NOTE: HOUSEHOLD FINANCE CORPORATION III BORROWER(S): AMY M CONN MCDANIEL PROPERTY ADDRESS: 309 GRIMES, HOLDENVILLE, OK 74848 LOAN AMOUNT: $57041.05 PAY TO THE ORDER OF: DLJ MORTGAGE CAPITAL, INC. WITHOUT RE COURSE HOUSEHOLD FINANCE CORPORATION III, BY SELECT PORTFOLIO SERVICING, INC. AS ATTORNEY IN FACT By: [Signature] EMILEE BRINKER, ASSISTANT VICE PRESIDENT ALLONGE THIS ALLONGE IS TO BE PART OF THE NOTE LOAN NUMBER: [REDACTED] DATE OF NOTE: 12/22/2004 LENDER ON NOTE: HOUSEHOLD FINANCE CORPORATION III BORROWER(S): AMY M CONN MCDANIEL PROPERTY ADDRESS: 309 GRIMES, HOLDENVILLE, OK 74848 LOAN AMOUNT: $57041.05 PAY TO THE ORDER OF: DLJ MORTGAGE CAPITAL, INC. WITHOUT RECOURSE HOUSEHOLD FINANCE CORPORATION III, BY SELECT PORTFOLIO SERVICING, INC. AS ATTORNEY IN FACT By: ______________________________ EMILEE BRINKER, ASSISTANT VICE PRESIDENT Return to: Oklahoma Land Title Services, LLC 310 W. Main Suite 304 Ardmore, OK 73401 MORTGAGE [ ] IF CHECKED, THIS IS AN OPEN-END MORTGAGE WHICH SECURES FUTURE ADVANCES. THIS MORTGAGE is made this 22ND day of DECEMBER 2004, between the Mortgagor, AMY CONN MCDANIEL, A SINGLE PERSON (herin "Borrower"), and Mortgagee, HOUSEHOLD FINANCE CORPORATION III, a corporation organized and existing under the laws of DELAWARE whose address is 10958 NORTH MAY AVE, QUAIL PLAZA SHP CNTR, OKLAHOMA CITY, OK 73120 (herein "Lender"). The following paragraph preceded by a checked box is applicable: [x] WHEREAS, Borrower is indebted to Lender in the principal sum of $57,041.05 evidenced by Borrower's Loan Agreement dated DECEMBER 22, 2004 and any extensions or renewals thereof (including those pursuant to any Negotiable Rate Agreement) (herein "Note"), providing for monthly installments of principal and interest, including any adjustments to the amount of payments or the contract rate if that rate is variable, with the balance of the indebtedness, if not sooner paid, due and payable on DECEMBER 22, 2034; [ ] WHEREAS, Borrower is indebted to Lender in the principal sum of $ ____________, or so much thereof as may be advanced pursuant to Borrower's Revolving Loan Agreement dated ________ and extensions and renewals thereof (herein "Note"), providing for monthly installments, and interest at the rate and under the terms specified in the Note, including any adjustments in the interest rate if that rate is variable, and providing for a credit limit stated in the principal sum above and an initial advance of $ ____________; TO SECURE to Lender the repayment of (1) the indebtedness evidenced by the Note, with interest thereon, including any increases if the contract rate is variable; (2) future advances under any Revolving Loan Agreement; (3) the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Mortgage; and (4) the performance of the covenants and agreements of Borrower herein contained, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns the following described property located in the County of HUGHES State of Oklahoma: THE SOUTH 35 FEET OF LOT NINETEEN (19) AND NORTH 40 FEET OF LOT TWENTY (20), BLOCK THREE (3), DIAMOND COUNTRY CLUB ADDITION TO THE CITY OF HOLDENVILLE, HUGHES COUNTY, OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF. TAX MAP OR PARCEL ID NO.: 0050-00-003-019-0-011-01 TREASURER'S ENDORSEMENT I hereby certify that I received $57,041.05 issued receipt number ________ therefore in payment of mortgage tax on the within mortgage. Dated this 30th day of December 2004 Bobby W. Smith, Hughes County Treasurer By __________________________ Deputy EXHIBIT B TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage; and all of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a leasehold) are hereinafter referred to 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 covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note, including any variations resulting from changes in the contract rate, and late charges as provided in the Note. 2. Funds for Taxes and Insurance. Subject to applicable law and only if requested in writing by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law or the Note provide otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable at the applicable contract rate, and then to the principal of the Note. 4. Prior Mortgages and Deed of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. 5. Hazard 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 such other hazards as Lender may require and in such amounts and for such periods as Lender may require. The insurance carrier providing the insurance shall be chosen by the Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 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, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or, if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the applicable contract rate, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 10. 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 Mortgage granted by Lender to any successor in interest of Borrower and all other parties who are or who hereafter become secondarily liable shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Mortgage, but does not execute the Note, (a) is co-signing this Mortgage only to mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is not personally liable on the Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forgive, or the make any other accommodations with regard to the terms of this Mortgage or the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that Borrower's interest in the Property. 12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 13. Governing Law; Severability. The Applicable law contained in the Note shall control. Where no applicable law is contained therein, the state and local laws of the jurisdiction in which the Property is located shall apply except where such laws conflict with Federal law; in which case, Federal law applies. The foregoing sentence shall not limit the applicability of Federal law to this Mortgage. In the event that any provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Mortgage, if requested, at the time of execution or after recordation hereof. 15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Lender. Lender, at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 16. Transfer of the Property. If Borrower sells or transfers all or any part of the Property or an interest therein, excluding (a) the creation of a lien or encumbrance subordinate to this Mortgage, (b) a transfer by devise, descent, or by operation of law upon the death of a joint tenant, (c) the grant of any leasehold interest of three years or less not containing an option to purchase, (d) the creation of a purchase money security interest for household appliances, (e) a transfer to a relative resulting from the death of a Borrower, (f) a transfer where the spouse or children of the Borrower become an owner of the property, (g) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the Borrower becomes an owner of the property, (h) a transfer into an inter vivos trust in which the Borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property, or (i) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board, Borrower shall cause to be submitted information required by Lender to evaluate the transferee as if a new loan were being made to the transferee, Borrower will continue to be obligated under the Note and this Mortgage unless Lender releases Borrower in writing. If Lender does not agree to such sale or transfer, Lender may declare all of the sums secured by this Mortgage to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with paragraph 12 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed or delivered within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by paragraph 17 hereof. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 17. Acceleration; Remedies. Except as provided in paragraph 16 hereof, or as otherwise required by law, upon Borrower's breach of any covenant or agreement of Borrower in this Mortgage, including the covenants to pay when due any sums secured by this Mortgage, Lender prior to acceleration shall give notice to Borrower as provided in paragraph 12 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, not less than 10 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage, foreclosure by judicial proceeding, and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the nonexistence of a default or any other defense of Borrower to acceleration and foreclosure. If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Mortgage to be immediately due and payable without further demand and may foreclose this Mortgage by judicial proceeding. Lender shall be entitled to collect in such proceeding all expenses of foreclosure, including, but not limited to, reasonable attorneys' fees, and costs of documentary evidence, abstracts and title reports. 18. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Mortgage due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to enforce this Mortgage discontinued at any time prior to entry of a judgment enforcing this Mortgage if: (a) Borrower pays Lender all sums which would be then due under this Mortgage and the Note had no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Mortgage; (c) Borrower pays all reasonable expenses incurred by Lender in enforcing the covenants and agreements of Borrower contained in this Mortgage, and in enforcing Lender's remedies as provided in paragraph 17 hereof, including, but not limited to, reasonable attorneys' fees; and (d) Borrower takes such action as Lender may reasonably require to assure that the lien of this Mortgage, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Mortgage shall continue unimpaired. Upon such payment and cure by Borrower, this Mortgage and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. 19. Appointment of Receiver. Upon acceleration under paragraph 17 hereof or abandonment of the Property, Lender shall be entitled to have a receiver appointed by a court to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by the receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Mortgage. The receiver shall be liable to account only for those rents actually received. 20. Release. Upon payment of all sums secured by this Mortgage, Lender shall release this Mortgage. Borrower shall pay all costs of recordation, if any. 21. Waiver of Appraisement. Appraisalment of the Property hereby waived or not waived at Lender's option, which shall be exercised at the time judgment is entered in any foreclosure hereof or at any time prior thereto. 22. Arbitration Rider to Note. The Arbitration Rider attached to and made a part of the Note is hereby incorporated by reference and made a part of this Mortgage. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Mortgage to give Notice to Lender, at Lender's address set forth on page one of this Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action. IN WITNESS WHEREOF, Borrower has executed this Mortgage. (SEAL) AMY CONN MCDANIEL -Borrower (SEAL) -Borrower STATE OF OKLAHOMA, HUGHES County ss: On this 22nd day of DECEMBER, 2004, before me personally appeared AMY CONN MCDANIEL, A SINGLE PERSON to me known to be the person (s) described in and who executed the foregoing instrument, and acknowledged that SHE executed the same as HER free act and deed. My Commission expires: 5/28/08 Notary Public STATE OF OKLAHOMA, ____________________________ County ss: On this __________ day of ____________________________, 20 __________, before me personally appeared _______________________________ to me known to be the person (s) described in and who executed the foregoing instrument, and acknowledged that __________________ executed the same as __________________ My Commission expires: Notary Public (Space Below This Line Reserved For Lender and Recorder) Return to: Records Processing Services 577 Laphont Road Elmhurst, IL 60126