AMERICAN HERITAGE BANK v. KENNETH ALAN SNITZ

IN THE DISTRICT COURT OF TULSA COUNTY STATE OF OKLAHOMA AMERICAN HERITAGE BANK vs. KENNETH ALAN SNITZ; and, THE KEN SNITZ FAMILY TRUST INDENTURE DATED 10/27/1995, Plaintiff, Defendant. Case No. ____________________ PETITION Comes now the Plaintiff, AMERICAN HERITAGE BANK, and for its cause of action against the Defendants, KENNETH ALAN SNITZ, and THE KEN SNITZ FAMILY TRUST INDENTURE DATED 10/27/1995, alleges and states as follows, to-wit: FIRST CAUSE OF ACTION 1. That said Plaintiff is an Oklahoma Corporation with its principal place of business in Creek County, Oklahoma. That the Defendant, KENNETH ALAN SNITZ, is a resident of TULSA County, Oklahoma, and this Court has jurisdiction and venue of the case at bar. 2. On October 2, 2023, the said Defendant, KENNETH ALAN SNITZ, made, executed and delivered to AMERICAN HERITAGE BANK a certain promissory note in the principal sum of $39,599.00 payable in the manner, with interest and on the terms and conditions set forth in said note, a true and correct copy of which note is hereto attached marked Exhibit "A", incorporated herein and made a part hereof. 3. At the same time, and as part and parcel of the same transaction, and for the purpose of securing payment of the said promissory note, the said Defendant, KENNETH ALAN SNITZ, made executed and delivered to the said AMERICAN HERITAGE BANK a mortgage covering the following described real estate in Creek County, Oklahoma, to-wit: Lot 16, Mager Addition to the City of Tulsa, Tulsa County, State Of Oklahoma, according to the recorded Plat No. 1190 (1037 N. Florence Ave., Tulsa, OK 74110) which mortgage is dated October 2, 2023, and was duly recorded as Document Number 2023081032 in the County Clerk of Tulsa County, Oklahoma, after the required mortgage tax had been paid thereon, and said mortgage is incorporated herein by reference and made a part hereof as though fully set forth at length herein. The mortgage was modified February 25, 2025, by instrument recorded as Document Number 2025018763. 4. Plaintiff is the owner and holder of said note and mortgage and that default has been made in the conditions thereof in that said Defendants have failed and refused to pay said note as provided therein and is in default thereon. 5. That by reason of such default, Plaintiff has elected to declare the entire balance of said note due and payable and Plaintiff is entitled to judgment against said Defendant, KENNETH ALAN SNITZ, for the balance due on said note which is the sum of $36,628.44 and accrued interest of $917.11 and 8.5% per annum from and after February 12 2026, and an attorney's fee of $2,500.00 as provided in said note, and for foreclosure of said mortgage and the sale of said property with appraisement, said mortgage provided that appraisement of said premises may be waived or not waived at the option of the mortgagee to be declared when the petition to foreclose is filed. 6. In accordance with the Fair Debt Collection Practices Act, Title 15 U.S.C.A. § 1692(g), if applicable, unless the person or entity responsible for the payment of the above debt, within thirty days after receipt of this notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid; and if said person or entity notifies the undersigned attorney for Plaintiff in writing within said thirty day period that the debt, or any portion thereof, is disputed, said attorney will obtain verification of the debt and a copy of such verification will be mailed to said person or entity by the undersigned attorney for Plaintiff; and upon written request by you within the thirty day period, the undersigned attorney for Plaintiff will provide the name and address of the original creditor, if different from the current creditor. WHEREFORE, premises considered, Plaintiff, AMERICAN HERITAGE BANK, prays this Honorable Court grant judgment against the Defendant, KENNETH ALAN SNITZ, for the principal sum of $36,628.44 together with interest, accrued interest and late charges thereon at the rate described above and for an attorney's fee as set out above, and for Plaintiff's court costs in this action; and Plaintiff further prays for judgment that its mortgage lien upon the property described above be foreclosed with appraisement, and if its judgment against said Defendants, KENNETH ALAN SNITZ, be not paid, that an order of sale issue commanding the Sheriff of Tulsa County, Oklahoma, to appraise, advertise and sell upon execution as provided by law the above described real property; and Plaintiff prays for such other and further relief as the Court may deem just and proper. SECOND CAUSE OF ACTION 7. On July 1, 2022, the said Defendant, KENNETH ALAN SNITZ, made, executed and delivered to AMERICAN HERITAGE BANK a certain promissory note in the principal sum of $80,884.84 payable in the manner, with interest and on the terms and conditions set forth in said note, a true and correct copy of which note is hereto attached marked Exhibit "B", incorporated herein and made a part thereof. 8. At the same time, and as part and parcel of the same transaction, and for the purpose of securing payment of the said promissory note, the said Defendant, THE KEN SNITZ FAMILY TRUST INDENTURE DATED 10/27/1995, made executed and delivered to the said AMERICAN HERITAGE BANK a mortgage covering the following described real estate in Creek County, Oklahoma, to-wit: South 26 feet of Lot 7 and North 36 feet of Lot 8, Block 1, Lamb Addition to the City of Tulsa, Tulsa County, State Of Oklahoma, according to the recorded Plat thereof. (16 No. Louisville, Tulsa, OK ) which mortgage is dated July 1, 2022, and was duly recorded as Document Number 2023081032 in the County Clerk of Tulsa County, Oklahoma, after the required mortgage tax had been paid thereon, and said mortgage is incorporated herein by reference and made a part thereof as though fully set forth at length herein. 9. Plaintiff is the owner and holder of said note and mortgage and that default has been made in the conditions thereof in that said Defendants have failed and refused to pay said note as provided therein and is in default thereon. 10. That by reason of such default, Plaintiff has elected to declare the entire balance of said note due and payable and Plaintiff is entitled to judgment against said Defendant, KENNETH ALAN SNITZ, for the balance due on said note which is the sum of $69,299.20 and accrued interest of $2,247.51 and 8.5% per annum from and after February 17, 2026, and an attorney's fee of $2,500.00 as provided in said note, and for foreclosure of said mortgage and the sale of said property with appraisement, said mortgage provided that appraisement of said premises may be waived or not waived at the option of the mortgagee to be declared when the petition to foreclose is filed. 12. In accordance with the Fair Debt Collection Practices Act, Title 15 U.S.C.A. § 1692(g), if applicable, unless the person or entity responsible for the payment of the above debt, within thirty days after receipt of this notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid; and if said person or entity notifies the undersigned attorney for Plaintiff in writing within said thirty day period that the debt, or any portion thereof, is disputed, said attorney will obtain verification of the debt and a copy of such verification will be mailed to said person or entity by the undersigned attorney for Plaintiff; and upon written request by you within the thirty day period, the undersigned attorney for Plaintiff will provide the name and address of the original creditor, if different from the current creditor. WHEREFORE, premises considered, Plaintiff, AMERICAN HERITAGE BANK, prays this Honorable Court grant judgment against the Defendant, KENNETH ALAN SNITZ, for the principal sum of $69,299.20 together with interest, accrued interest and late charges thereon at the rate described above and for an attorney's fee as set out above, and for Plaintiff's court costs in this action; and Plaintiff further prays for judgment that its mortgage lien upon the property described above be foreclosed with appraisement, and if its judgment against said Defendants, KENNETH ALAN SNITZ, be not paid, that an order of sale issue commanding the Sheriff of Tulsa County, Oklahoma, to appraise, advertise and sell upon execution as provided by law the above described real property; and Plaintiff prays for such other and further relief as the Court may deem just and proper. LOEFFLER, ALLEN & HAM By__________________________ Sam T. Allen, IV (O.B.A. #232) P. O. Box 230; Sapulpa, Ok 74067 PHONE: 918-224-5302 Attorney for Plaintiff COMMERCIAL PROMISSORY NOTE LOAN NUMBER: 1202303838 NOTE DATE: October 2, 2023 PRINCIPAL AMOUNT: $39,599.00 LOAN TERM: 9 months MATURITY DATE: July 1, 2024 LOAN PURPOSE: STRAIGHT LINE OF CREDIT USED TO BUY, SELL, MANAGE AND MAINTAIN INVESTMENT PROPERTY, CASH OUT TO REMODEL INVESTMENT PROPERTY BORROWER INFORMATION KENNETH ALAN SNITZ 4403 NENANA DR HOUSTON, TX 77035-3625 NOTE. This Commercial Promissory Note will be referred to in this document as the "Note." LENDER. "Lender" means American Heritage Bank - 4th & Lewis-Midtown whose address is 445 S. Lewis Ave., Tulsa, Oklahoma 74104, its successors and assigns. BORROWER. "Borrower" means each person or legal entity identified above in the BORROWER INFORMATION section who signs this Note. PROMISE TO PAY. For value received, receipt of which is hereby acknowledged, on or before July 1, 2024 (the "Maturity Date"), the Borrower promises to pay the principal amount of Thirty-nine Thousand Five Hundred Ninety-nine and 00/100 Dollars ($39,599.00) and all interest on the outstanding principal balance and any other charges, including service charges, to the order of Lender at its office at the address noted above or at such other place as Lender may designate in writing. The Borrower will make all payments in lawful money of the United States of America. PAYMENT SCHEDULE. This Note will be paid according to the following schedule: 8 consecutive payments of interest only beginning on November 1, 2023 and continuing on the same day of each month thereafter. An increase in the interest rate will result in a higher payment amount. One final balloon payment shall be due on the Maturity Date in an amount equal to the then unpaid principal and accrued and unpaid interest. APPLICATION OF PAYMENTS. All payments received by the Lender from the Borrower for application to this Note may be applied to the Borrower's obligations under this Note in such order as determined by the Lender. INTEREST. Interest Rate and Scheduled Payment Changes. Interest will begin to accrue on the date of this Note. The initial variable interest rate on this Note will be 8.500 % per annum. This interest rate may change on October 2, 2023 and every day thereafter. Each date on which the interest rate may change is called the "Change Date." Beginning with the first Change Date, Lender will calculate the new interest rate based on NEW YORK PRIME in effect on the Change Date (the "Index"). The interest rate will never be greater than 11.000% or less than 6.000%. PREFERRED RATE REDUCTION. If your loan has an automatic payment from a qualified account, the interest rate may include a preferred rate reduction. Following is a description of the event that would cause the preferred rate reduction to terminate and how the new rate will be determined upon termination of the preferred rate reduction. Description of the Event That Would Cause the Preferred Rate Reduction to Terminate: Cancellation of the Automatic Payment Deduction by the Borrower or Two Consecutive ACH Payments Returned Insufficient Funds. How the New Rate Will be Determined Upon Termination of the Preferred Rate Reduction: The interest rate may be increased by up to .5% Index Replacement. If the Index is Unavailable on the Change Date, the interest rate will be calculated using a "Replacement Index" and a new commercially reasonable "Replacement Margin." Index Unavailability. The Index is considered "Unavailable" when one or more of the following events occurs: (1) A public statement by or on behalf of the administrator of the Index, or supervisor thereof or a relevant governmental authority, that (a) the administrator will cease publishing the Index and there is no successor administrator that will continue publication of the Index, or (b) that the Index has been discontinued, is no longer reliable or representative, or may no longer be used; (2) The Index is not published by the administrator of the Index for five consecutive business days without advance announcement that the disruption is temporary; or (3) Lender reasonably determines that the Index no longer reflects the Lender's cost of funding. Replacement Index and Replacement Margin. Lender will select the Replacement Index and determine an associated Replacement Margin. Lender shall make a reasonable effort to select a Replacement Index and a Replacement Margin that, when added together, Lender reasonably expects will minimize any change to the cost of the loan. The Replacement Index shall be (a) a replacement index selected or recommended by a relevant governmental authority or a committee endorsed or convened thereby, (b) a comparable successor or alternative Index and Margin that is, at such time, broadly viewed as acceptable market practice for similar loans in lieu of the Index, or (c) a successor or alternative Index rate as Lender may reasonably determine. The Replacement Margin shall be determined by utilizing a margin adjustment method which is, at such time, (a) selected or recommended by a relevant governmental authority or a committee endorsed or convened thereby, (b) broadly viewed as acceptable market practice, or (c) any other method as the Lender may reasonably determine. Compliance with Law. Nothing contained herein shall be construed as to require the Borrower to pay interest at a greater rate than the maximum allowed by law. If, however, from any circumstances, Borrower pays Interest at a greater rate than the maximum allowed by law, the obligation to be fulfilled will be reduced to an amount computed at the highest rate of interest permissible under applicable law and if, for any reason whatsoever, Lender ever receives interest in an amount which would be deemed unlawful under applicable law, such interest shall be automatically applied to amounts owed, in Lender's sole discretion, or as otherwise allowed by applicable law. Accrual Method. Interest on this Note is calculated on a 365/365 day basis. Default Rate. The outstanding principal balance of this loan shall, while any Event of Default exists under this Note or any other agreement related to the loan, be subject to a default rate of interest equal to 5.000 percentage points over the applicable Index in effect from time to time, calculated as described above in this section. LATE PAYMENT CHARGE. If any required payment is more than 11 days late, then at Lender's option, Lender will assess a late payment charge of $50.00 or 5% of the amount past due, whichever is greater. PREPAYMENT PENALTY. This Note may be prepaid, in full or in part, at any time, without penalty. SECURITY TO NOTE. Security for this Note is granted pursuant to the following security document(s): • Commercial Real Estate Security Instrument dated October 2, 2023. RIGHT OF SET-OFF. To the extent permitted by law, Borrower agrees that Lender has the right to set-off any amount due and payable under this Note, whether matured or unmatured, against any amount owing by Lender to Borrower including any or all of Borrower's accounts with Lender. This shall include all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. Such right of set-off may be exercised by Lender against Borrower or against any assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor of Borrower, or against anyone else claiming through or against Borrower or such assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor, notwithstanding the fact that such right of set-off has not been exercised by Lender prior to the making, filing or issuance or service upon Lender of, or of notice of, assignment for the benefit of creditors, appointment or application for the appointment of a receiver, or issuance of execution, subpoena or order or warrant. Lender will not be liable for the dishonor of any check when the dishonor occurs because Lender set-off a debt against Borrower's account. Borrower agrees to hold Lender harmless from any claim arising as a result of Lender exercising Lender's right to set-off. RELATED DOCUMENTS. The words "Related Documents" mean all promissory notes, security agreements, mortgages, deeds of trust, deeds to secure debt, business loan agreements, construction loan agreements, resolutions, guaranties, environmental agreements, subordination agreements, assignments, and any other documents or agreements executed in connection with the indebtedness evidenced by this Note, whether now or hereafter existing, including any modifications, extensions, substitutions or renewals of any of the foregoing. The Related Documents are hereby made a part of this Note by reference thereto, with the same force and effect as if fully set forth herein. DEFAULT. Upon the occurrence of any one of the following events (each, an "Event of Default" or "default" or "event of default"), Lender's obligations, if any, to make any advances will, at Lender's option, immediately terminate and Lender, at its option, may declare all indebtedness of Borrower to Lender under this Note immediately due and payable without further notice of any kind notwithstanding anything to the contrary in this Note or any other agreement: (a) Borrower's failure to make any payment on time or in the amount due; (b) any default by Borrower under the terms of this Note or any other Related Documents; (c) any default by Borrower under the terms of any other agreement between Lender and Borrower; (d) the death, dissolution, or termination of existence of Borrower or any guarantor; (e) Borrower is not paying Borrower's debts as such debts become due; (f) the commencement of any proceeding under bankruptcy or insolvency laws by or against Borrower or any guarantor or the appointment of a receiver; (g) any default under the terms of any other indebtedness of Borrower to any other creditor; (h) any writ of attachment, garnishment, execution, tax lien or similar instrument is issued against any collateral securing the loan, if any, or any of Borrower's property or any judgment is entered against Borrower or any guarantor; (i) any part of Borrower's business is sold to or merged with any other business, individual, or entity; (j) any representation or warranty made by Borrower to Lender in any of the Related Documents or any financial statement delivered to Lender proves to have been false in any material respect as of the time when made or given; (k) if any guarantor, or any other party to any Related Documents terminates, attempts to terminate or defaults under any such Related Documents; (l) Lender has deemed itself insecure or there has been a material adverse change of condition of the financial prospects of Borrower or any collateral securing the obligations owing to Lender by Borrower. Upon the occurrence of an event of default, Lender may pursue any remedy available under any Related Document, at law or in equity. GENERAL WAIVERS. To the extent permitted by law, the Borrower severally waives any required notice of presentment, demand, acceleration, intent to accelerate, protest, and any other notice and defense due to extensions of time or other indulgence by Lender or to any substitution or release of collateral. No failure or delay on the part of Lender, and no course of dealing between Borrower and Lender, shall operate as a waiver of such power or right, nor shall any single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power or right. JOINT AND SEVERAL LIABILITY. The liability of all parties obligated in any manner under this Note shall be joint and several, to the extent of their respective obligations. SEVERABILITY. If a court of competent jurisdiction determines any term or provision of this Note is invalid or prohibited by applicable law, that term or provision will be ineffective to the extent required. Any term or provision that has been determined to be invalid or prohibited will be severed from the rest of this Note without invalidating the remainder of either the affected provision or this Note. SURVIVAL. The rights and privileges of the Lender hereunder shall inure to the benefits of its successors and assigns, and this Note shall be binding on all heirs, executors, administrators, assigns, and successors of Borrower. ASSIGNABILITY. Lender may assign, pledge or otherwise transfer this Note or any of its rights and powers under this Note without notice, with all or any of the obligations owing to Lender by Borrower, and in such event the assignee shall have the same rights as if originally named herein in place of Lender. Borrower may not assign this Note or any benefit accruing to it hereunder without the express written consent of the Lender. ORAL AGREEMENTS DISCLAIMER. This Note represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. GOVERNING LAW. This Note is governed by the laws of the state of Oklahoma except to the extent that federal law controls. HEADING AND GENDER. The headings preceding text in this Note are for general convenience in identifying subject matter, but have no limiting impact on the text which follows any particular heading. All words used in this Note shall be construed to be of such gender or number as the circumstances require. ATTORNEY'S FEES, COSTS, AND EXPENSES. Borrower agrees to pay all of Lender's costs, fees, and expenses arising out of or related to the enforcement of this Note or the relationship between the parties. Included in the fees that Lender may recover from Borrower are the reasonable attorney's fees that Lender incurs, including all fees incurred in the course of representing Lender before, during, or after any lawsuit, arbitration, or other proceeding and those incurred in appeals, whether the issues arise out of contract, tort, bankruptcy, or any other area of law. Included in the costs and expenses which Lender may recover are all court, alternative dispute resolution or other collection costs, and all expenses incidental to perfecting Lender's security interests and liens, preserving the collateral (including payment of taxes and insurance), records searches, and expenses related to audits, inspection, and copying. All costs and expenses Lender is entitled to recover shall accrue interest at the highest rate set forth hereunder or in any of the Related Documents. TRANSFERABLE RECORD. Borrower agrees that this Note is intended to be and shall be treated as an effective, enforceable, and valid transferable record. WAIVER OF JURY TRIAL. All parties to this Note hereby knowingly and voluntarily waive, to the fullest extent permitted by law, any right to trial by jury of any dispute, whether in contract, tort, or otherwise, arising out of, in connection with, related to, or incidental to the relationship established between them in this Note or any other instrument, document or agreement executed or delivered in connection with this Note or the Related Documents. By signing this Note, Borrower acknowledges reading, understanding, and agreeing to all its provisions and receipt hereof. KENNETH ALAN SNITZ Individually LENDER: American Heritage Bank - 4th & Lewis-Midtown By: Kelly Durkoe Its: Sr. Vice President COMMERCIAL REAL ESTATE MORTGAGE A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS MORTGAGE. This COMMERCIAL REAL ESTATE MORTGAGE ("Security Instrument") is made on October 2, 2023 between the mortgagor(s) KENNETH ALAN SNITZ; A SINGLE PERSON, whose address is 4403 NENANA DR, HOUSTON, Texas 77035-3625, and THE KEN SNITZ FAMILY TRUST DTD 10/27/1995, a Texas Trust, whose address is 4403 NENANA DR, HOUSTON, Texas 77035-3625, and whose trustee is KEN SNITZ ("Mortgagor"), and American Heritage Bank - 4th & Lewis-Midtown whose address is 445 S. Lewis Ave., Tulsa, Oklahoma 74104 ("Lender"), which is organized and existing under the laws of the State of Oklahoma. Mortgagor owes Lender the principal sum of Thirty-nine Thousand Five Hundred Ninety-nine and 00/100 Dollars (U.S. $39,599.00), which is evidenced by the promissory note dated October 2, 2023. Mortgagor in consideration of this loan and any future loans extended by Lender and for other valuable consideration, the receipt of which is acknowledged, hereby mortgages, grants, and conveys to Lender, its successors and assigns, forever, with power of sale, the following described property located in the County of Tulsa County, State of Oklahoma: Address: 1037 N FLORENCE AVE, TULSA, Oklahoma 74110 Legal Description: LOT 16, MAGER ADDITION TO THE CITY OF TULSA, TULSA COUNTY, STATE OF OKLAHOMA, ACCORDING TO THE RECORDED PLAT NO. 1190 Parcel ID/Sidwell Number: 24500-03-32-08880 Together with all easements, appurtenances abutting streets and alleys, improvements, buildings, fixtures, tenements, hereditaments, equipment, rents, income, profits and royalties, personal goods of whatever description and all other rights and privileges including all minerals, oil, gas, water (whether groundwater, subterranean or otherwise), water rights (whether riparian, appropriate or otherwise, and whether or not appurtenant to the above-described real property), wells, well permits, ditches, ditch rights, reservoirs, reservoir rights, reservoir sites, storage rights, dams and water stock that may now, or at any time in the future, be located on and/or used in connection with the above-described real property, payment awards, amounts received from eminent domain, amounts received from any and all insurance payments, and timber which may now or later be located, situated, or affixed on and used in connection therewith (hereinafter called the "Property"). RELATED DOCUMENTS. The words "Related Documents" mean all promissory notes, security agreements, prior mortgages, prior deeds of trust, prior deeds to secure debt, business loan agreements, construction loan WAIVER OF HOMESTEAD EXEMPTION RIGHTS. Mortgagor and all other signatories to this Security Instrument, to the extent each possesses homestead exemption rights in the Property, hereby waive all homestead exemption rights relating to the Property to the extent permitted by law. LENDER'S EXPENSES. Mortgagor agrees to pay all expenses incurred by Lender in connection with enforcement of its rights under the Indebtedness, this Security Instrument or in the event Lender is made party to any litigation because of the existence of the Indebtedness or this Security Instrument, as well as court costs, collection charges and reasonable attorneys' fees and disbursements. ASSIGNABILITY. Lender may assign or otherwise transfer this Security Instrument or any of Lender's rights under this Security Instrument without notice to Mortgagor. Mortgagor may not assign this Security Instrument or any part of the Security Instrument without the express written consent of Lender. GOVERNING LAW. This Security Instrument is governed by the laws of the State of Oklahoma except to the extent that federal law controls. SEVERABILITY. If a court of competent jurisdiction determines any term or provision of this Security Instrument is invalid or prohibited by applicable law, that term or provision will be ineffective to the extent required. Any term or provision that has been determined to be invalid or prohibited will be severed from the rest of the Security Instrument without invalidating the remainder of either the affected provision or this Security Instrument. WAIVER OF JURY TRIAL. All parties to this Security Instrument hereby knowingly and voluntarily waive, to the fullest extent permitted by law, any right to trial by jury of any dispute, whether in contract, tort, or otherwise, arising out of, in connection with, related to, or incidental to the relationship established between them in this Security Instrument or any other instrument, document or agreement executed or delivered in connection with this Security Instrument or the Related Documents. ORAL AGREEMENTS DISCLAIMER. This Security Instrument represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. By signing this Security Instrument, each Mortgagor acknowledges that all provisions have been read and understood. KENNETH ALAN SNITZ Individually THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 KEN SNITZ Trustee for THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 INDIVIDUAL ACKNOWLEDGMENT Texas STATE OF OKLAHOMA COUNTY OF Harris This instrument was acknowledged by KENNETH ALAN SNITZ; A SINGLE PERSON, A/K/A KEN SNITZ Trustee for THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 before me on 10-2-23. In witness whereof, I hereunto set my hand and my official seal. My commission expires: 9/13/24 (Official Seal) Notary Public CECILIA ALEJO FONT My Notary ID # 131721680 Expires September 13, 2026 ACKNOWLEDGMENT Texas STATE OF OKLAHOMA COUNTY OF Harris This instrument was acknowledged on the 10-2-23, by In witness whereof, I hereunto set my hand and official seal. My commission expires: 9/13/24 (Official Seal) Notary Public CECILIA ALEJO FONT My Notary ID # 131721680 Expires September 13, 2026 (Space Above This Line For Recording Data) MODIFICATION AGREEMENT - MORTGAGE THIS MODIFICATION AGREEMENT ("Agreement") is made this 25th day of February, 2025, between KENNETH ALAN SNITZ; A Single Person, whose address is 4403 NENANA DR, HOUSTON, Texas 77035-3625, and THE KEN SNITZ FAMILY TRUST DTD 10/27/1995, a Texas Trust, whose address is 4403 NENANA DR, HOUSTON, Texas 77035-3625, and whose trustee is KENNETH ALAN SNITZ ("Mortgagor"), and American Heritage Bank - 4th & Lewis-Midtown whose address is 445 S. Lewis Ave., Tulsa, Oklahoma 74104 ("Lender"). American Heritage Bank - 4th & Lewis-Midtown and Mortgagor entered into a Mortgage dated October 2, 2023 and recorded on October 5, 2023, filed for record in the records of the County of TULSA, State of Oklahoma with Instrument Number 2023081032 ("Mortgage"). The Mortgage covers the following described real property: Address: 1037 N FLORENCE AVE, TULSA, Oklahoma 74110 Legal Description: LOT 16, MAGER ADDITION TO THE CITY OF TULSA, TULSA COUNTY, STATE OF OKLAHOMA, ACCORDING TO THE RECORDED PLAT NO. 1190 Parcel ID/Sidwell Number: 24500-03-32-08880 It is the express intent of the Mortgagor and Lender to modify the terms and provisions set forth in the Mortgage. Mortgagor and Lender hereby agree to modify the Mortgage as follows: • LOAN WILL NO LONGER BE A LINE OF CREDIT, MORTGAGE AMOUNT OF $39,499.00 WILL BE PAYABLE ACCORDING TO THE TERMS OF THE CHANGE IN TERMS AGREEMENT DATED 02/25/2025 WITH A MATURITY DATE OF 02/25/2032. Mortgagor and Lender agree that the Mortgage including such changes, modifications, and amendments as set forth herein, shall remain in full force and effect with respect to each and every term and condition thereof and nothing herein contained shall in any manner affect the lien of the Mortgage on the Property. Nothing contained herein shall in any way impair the Mortgage or the security now held for the indebtedness thereunder, or alter, waive, annul, vary, or affect any provision, term, condition, or covenant therein, except as herein provided, nor affect or impair any rights, powers, privileges, duties, or remedies under the Mortgage it being the intent of Mortgagor and Lender that the terms and provisions thereof shall continue in full force and effect, except as specifically modified herein. Nothing in this Agreement shall constitute a satisfaction of the promissory note or notes, or other credit agreement or agreements secured by the Mortgage. Lender's consent to this Agreement does not waive Lender's right to require strict performance of the Mortgage modified above, nor obligate Lender to make any future modifications. Any guarantor or cosigner shall not be released by virtue of this Agreement. If any Mortgagor who signed the original Mortgage does not sign this Agreement, then all Mortgagors signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing person consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension or modification, but also to all such subsequent actions. This Agreement shall be binding upon the heirs, successors, and assigns with respect to parties hereto. Whenever used, the singular shall include the plural, the plural, the singular, and the use of any gender shall be applicable to all genders. ORAL AGREEMENTS DISCLAIMER. This Agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. By signing below, Mortgagor and Lender acknowledge that they have read all the provisions contained in this Agreement, and that they accept and agree to its terms. KENNETH ALAN SNITZ Individually THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 KENNETH ALAN SNITZ Trustee for THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 INDIVIDUAL ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF Harris This instrument was acknowledged by KENNETH ALAN SNITZ; A SINGLE PERSON, A/K/A KEN SNITZ Trustee for THE KEN SNITZ FAMILY TRUST DTD 10/27/1995 before me on February 28, 2025 In witness whereof, I hereunto set my hand and my official seal. My commission expires: 10.20.2028 Notary Public AVIS MITCHELL Notary ID #10414072 My Commission Expires October 20, 2028 "PROMISSORY NOTE Principal: $80,884.84 Loan Date: 07-01-2022 Maturity: 01-01-2023 Loan No: 1202203248 Call / Coll: 1A1B / 231 Account: SAA8530 Officer: [initials] Initials: [initials] References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "****" has been omitted due to text length limitations. Borrower: KENNETH A SNITZ (SSN: 442-48-9714) 4403 NEMANA DRIVE HOUSTON, TX 77035 Lender: American Heritage Bank 4th & Lewis 4445 S Lewis Ave Tulsa, OK 74104 (918) 583-9800 Date of Note: July 1, 2022 Principal Amount: $80,884.84 PROMISE TO PAY. KENNETH A SNITZ ("Borrower") promises to pay to American Heritage Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Eighty Thousand Eight Hundred Eighty-four & 84/100 Dollars ($80,884.84) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 6.000% per annum based on a year of 360 days. Interest shall be calculated from the date of each advance until repayment of each advance. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. If no demand is made, Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on January 1, 2023. In addition, Borrower will pay regular monthly payments of all accrued unpaid Interest due as of each payment date, beginning August 1, 2022, with all subsequent Interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; and then to any late charges. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All Interest payable under this Note is computed using this method. This calculation method results in a higher effective Interest rate than the numeric Interest rate stated in this Note. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not be sent to Lender in writing, relieved Borrower of Borrower's obligation to continue to make payments of accrued unpaid Interest. Payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language, unless Borrower sends such a payment. Lender may accept it without lapsing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: American Heritage Bank, PO Box 1408 Sapulpa, OK 74066. LATE CHARGE. If a payment is 11 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment or $50.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturation, the total sum due under this Note will continue to accrue Interest at the Interest rate under this Note. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Guarantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surely bond for the creditor or forfeiture proceeding, in an amount determined by Lender, at its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including without limitation all attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Oklahoma without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Oklahoma. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $2.50 if Borrower makes a payment on Borrower's loan and the check or other payment order including any preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts." COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instrument listed herein: a Mortgage dated July 1, 2022, to Lender on real property located in TULSA County, State of Oklahoma. LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information about Borrower's account(s) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: American Heritage Bank PO Box 1408 Sapulpa, OK 74066. NOTIFICATION OF CHANGES IN BENEFICIAL OWNERSHIP. Customer agrees to notify American Heritage Bank of any changes in beneficial ownership. (Beneficial ownership is defined as individuals with direct or indirect ownership of 25% or more of equity interest in legal entity customer and one individual who controls, manages, directs the legal entity customer.) GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. BORROWER: KENNETH A SNITZ KENNETH A SNITZ LENDER: AMERICAN HERITAGE BANK Kelly Burkee, Senior Vice President WHEN RECORDED MAIL TO: American Heritage Bank PO Box 1408 Sapulpa, OK 74066 FOR RECORDER'S USE ONLY MORTGAGE A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE MORTGAGOR TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS MORTGAGE. THIS MORTGAGE dated July 1, 2022, is made and executed between KENNETH A SNITZ, not personally but as Trustee on behalf of KEN SNITZ FAMILY TRUST UNDER TRUST INDENTURE DATED 10/27/1995 (referred to below as "Grantor") and American Heritage Bank, whose address is 445 S Lewis Ave, Tulsa, OK 74104 (referred to below as "Lender"). GRANT-OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in TULSA County, State of Oklahoma: THE SOUTH 26 FEET OF LOT 7 AND THE NORTH 36 FEET OF LOT 8, BLOCK 1, LAMB ADDITION, TO THE CITY OF TULSA, TULSA COUNTY, STATE OF OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF The Real Property or its address is commonly known as 16 N LOUISVILLE, TULSA, OK 74115. The Real Property tax identification number is 21-01-0424940. CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus Interest thereon, of either Grantor or Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower and Grantor or any one or more of them, owed to Lender, whether of a like nature to the Note Indebtedness or not, whether arising from a loan or a purchased obligation, whether incurred for a consumer or a business purpose, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Borrower or Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grantor also grants to Lender a Uniform Commercial Code security interest in the Personal Property as defined below. ASSIGNMENT OF RENTS. In addition to the mortgaging of the Real Property to Lender, if Borrower's loan does not constitute a consumer loan as defined in 14A O.S. Section 3-104 and is not made primarily for an agricultural purpose as defined in 14A O.S. Section 1-301(4) to a natural person or to a farm or ranching Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. Specifically, without limitation, Indebtedness includes the future advances set forth in the Future Advances provision, together with all interest thereon and all amounts that may be indirectly secured by the Cross-Collateralization provision of this Mortgage. Lender. The word "Lender" means American Heritage Bank, its successors and assigns. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated July 1, 2022, in the original principal amount of $80,884.84 from Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guarantees, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: KEN SNITZ FAMILY TRUST UNDER TRUST INDENTURE DATED 10/27/1995 By: KENNETH A SNITZ, Trustee of KEN SNITZ FAMILY TRUST UNDER TRUST INDENTURE DATED 10/27/1995 MORTGAGE (Continued) Page 12 TRUST ACKNOWLEDGMENT STATE OF Washington ) COUNTY OF Snohomish ) On this 1 day of July, 2022, before me the undersigned, a Notary Public In and for the above County and State, personally appeared KENNETH A SNITZ, Trustee of KEN SNITZ FAMILY TRUST UNDER TRUST INDENTURE DATED 10/27/1995 to me known to be the identical person who signed the name of the maker of the Mortgage as its authorized signer, and acknowledged to me that he or she signed the same Mortgage as his or her free and voluntary act and as the free and voluntary act and deed of said trust, for the uses and purposes set forth in the Mortgage. Signed the 1 day of July, 2022. Notary Public My Commission Expires: 8-4-22