Focus Federal Credit Union v. Bobby Ray Williams

IN THE DISTRICT COURT OF OKLAHOMA COUNTY STATE OF OKLAHOMA FOCUS FEDERAL CREDIT UNION, Plaintiff, vs. BOBBY RAY WILLIAMS, Defendant. PETITION Plaintiff, Focus Federal Credit Union, for its causes of action against the above-named Defendant, alleges and states as follows: PARTIES, JURISDICTION AND VENUE 1. Plaintiff, Focus Federal Credit Union ("FFCU"), is a credit union duly organized and authorized to conduct its business, with its principal place of business located in Oklahoma City, Oklahoma County, State of Oklahoma. 2. Defendant, Bobby Ray Williams ("Williams"), is an individual who, upon information and belief, resides in Oklahoma County, State of Oklahoma. 3. The indebtedness that is the subject of this litigation was contracted in, and the indebtedness that is the subject of this litigation was given in, Oklahoma County, State of Oklahoma. 4. This Court therefore has jurisdiction over the parties and the subject matter of this action, and venue before this Court is proper. FIRST CAUSE OF ACTION (BREACH OF CONTRACT – PROMISSORY NOTE 01) 5. Plaintiff incorporates all allegations set forth in this Petition as if fully set forth herein and further alleges and states as follows: 6. On or about December 28, 2023, for good and valuable consideration, Williams made, executed, and delivered to FFCU a certain loan and security agreement ("Note 01"), in the original principal amount of $19,000.00. A true and correct copy of Note 01 is attached hereto as Exhibit 1 and its terms are incorporated herein by reference. 7. Williams has failed to make payments when due on Note 01, which is an event of default under the terms of Note 01. The entire amount of principal and interest is therefore due and payable. 8. FFCU has demanded that Note 01 be paid in full, but Williams has failed and refused to tender the amounts due to FFCU. 9. FFCU is the owner and holder of Note 01 and was entitled to enforce Note 01 prior to, and is entitled to enforce Note 01 at, and subsequent to, the filing of this Petition. 10. FFCU has complied with all of the terms, conditions precedent and provisions of Note 01, and is duly empowered to bring this Petition. 11. After having been credited with all sums paid on Note 01, and any other amounts for which Williams is entitled to credit, Williams is now indebted to FFCU on Note 01, as of February 20, 2026, in the principal amount, together with interest, late fees, and with miscellaneous fees in the total amount of $9,871.23, together with interest at Note 01’s rate of 10.45% per annum, through the date of judgment, together with FFCU’s costs, all future accruing costs, attorneys’ fees and expenses, and with interest on the entire amount of judgment at Note 01’s rate of 10.45% per annum. 12. Under Note 01 and pursuant to 12 O.S. § 936, FFCU is entitled to recover its costs and attorneys’ fees incurred in this action. WHEREFORE, Focus Federal Credit Union, prays for judgment on its First Cause of Action against Defendant, Bobby Ray Williams, in the sum of $9,871.23, as of February 20, 2026, together with interest at Note 01’s rate of 10.45% per annum, through the date of judgment, together with FFCU’s costs, attorneys’ fees and expenses, together with all future accruing costs, attorneys’ fees and expenses, including the costs of collection post-judgment, and with interest on the entire amount of judgment at Note 01’s rate of 10.45% per annum, and for such other relief as may be just and equitable. SECOND CAUSE OF ACTION (BREACH OF CONTRACT — PROMISSORY NOTE 02) 13. Plaintiff incorporates all allegations set forth in this Petition as if fully set forth herein and further alleges and states as follows: 14. On or about August 23, 2024, for good and valuable consideration, Williams made, executed, and delivered to FFCU a certain loan ("Note 02"), in the original principal amount of $2,500.00. A true and correct copy of Note 02 is attached hereto as Exhibit 2 and its terms are incorporated herein by reference. 15. Williams has failed to make payments when due on Note 02, which is an event of default under the terms of Note 02. The entire amount of principal and interest is therefore due and payable. 16. FFCU has demanded that Note 02 be paid in full, but Williams has failed and refused to tender the amounts due to FFCU. 17. FFCU is the owner and holder of Note 02 and was entitled to enforce Note 02 prior to, and is entitled to enforce Note 02 at, and subsequent to, the filing of this Petition. 18. FFCU has complied with all of the terms, conditions precedent and provisions of Note 02, and is duly empowered to bring this Petition. 19. After having been credited with all sums paid on Note 02, and any other amounts for which Williams is entitled to credit, Williams is now indebted to FFCU on Note 02, as of February 20, 2026, in the principal amount, together with interest, late fees, and with miscellaneous fees in the total amount of $1,801.15, together with further interest at Note 02’s rate of 16.99% per annum, through the date of judgment, together with FFCU’s costs, all future accruing costs, attorneys’ fees and expenses, and with interest on the entire amount of judgment at Note 02’s rate of 16.99% per annum. 20. Under Note 02 and pursuant to 12 O.S. § 936, FFCU is entitled to recover its costs and attorneys’ fees incurred in this action. WHEREFORE, Focus Federal Credit Union, prays for judgment on its Second Cause of Action against Defendant, Bobby Ray Williams, in the sum of $1,801.15, as of February 20, 2026, together with interest at Note 02’s rate of 16.99% per annum, through the date of judgment, together with FFCU’s costs, attorneys’ fees and expenses, together with all future accruing costs, attorneys’ fees and expenses, including the costs of collection post-judgment, and with interest on the entire amount of judgment at Note 02’s rate of 16.99% per annum, and for such other relief as may be just and equitable. Respectfully submitted, Jonathan M. Miles (OBA #31152) Brock Z. Pittman (OBA #32853) Spencer K. Strickland (OBA #36272) CHRISTENSEN LAW GROUP, P.L.L.C. The Parkway Building 3401 N.W. 63rd Street, Suite 600 Oklahoma City, Oklahoma 73116 Telephone: (405) 232-2020 Facsimile: (405) 228-1113 [email protected] [email protected] [email protected] Attorneys for Plaintiff EXHIBIT 1 Loan and Security Agreements and Disclosure Statement Covered Borrower Under Military Lending Act LOAN DATE: 12/28/2023 ACCOUNT NUMBER: LOAN NUMBER: 01 MATURITY DATE: 7/10/2029 BORROWER 1 (Name & Address) BOBBY WILLIAMS 15928 IRON RIDGE RD EDMOND, OK 73013-5863 BORROWER 2 (Name & Address) BORROWER 3 (Name & Address) BORROWER 4 (Name & Address) TRUTH IN LENDING DISCLOSURE ('e' means an estimate) ANNUAL PERCENTAGE RATE: The cost of Your credit as a yearly rate. FINANCE CHARGE: The dollar amount the credit will cost You. Amount Financed: The amount of credit provided to You or on Your behalf. Total of Payments: The amount You will have paid after You have made all payments as scheduled. Total Sale Price: The total cost of Your purchase on credit is $28,000.00 which Includes Your down payment of $0.00. 10.655 % $6,286.68 e $19,000.00 $25,286.68 e Your Payment Schedule Will Be: Number of Payments Amount of Payments Payment Frequency When Payments Are Due 65 $383.14 MONTHLY beginning 2/10/2024 1 $382.58 7/10/2029 Prepayment: If You pay off early You will not have to pay a penalty. Required Deposit: The Annual Percentage Rate does not take into account Your required deposit, if any. Demand: ☐ This obligation has a demand feature. ☐ All disclosures are based on an assumed maturity of one year. Filing Fees $ Non-Filing Insurance $ Property Insurance: You may obtain property insurance from anyone You want that is acceptable to the Credit Union. If You get the insurance from the Credit Union You will pay $ Late Charge: $30.00 after 14 days. Security: Collateral securing other loans with the Credit Union may also secure this Loan. You are giving a security interest in Your shares and dividends and, if any, Your deposits and interest in the Credit Union; and the Property described below: Collateral Property/Model/Make Year I.D. Number Type Value Key Number AUDI A6 2017 WAUH2AFC0HN026470 SEDAN 4D $24,450.00 $ Other (Describe) Pledge of Shares $ in Account No. $ in Account No. See Your contract documents for any additional information about nonpayment, default, and any required repayment in full before the scheduled date. ITEMIZATION OF THE AMOUNT FINANCED ('e' means an estimate) Itemization of Amount Financed of Amount Given to You Directly Amount Paid on Your Account Prepaid Finance Charge $19,000.00 $0.00 $0.00 $99.00 Amounts Paid to Others on Your Behalf: (If an amount is marked with an asterisk (*) We will be retaining a portion of the amount.) $1,989.50 To 150255-00 $15,164.50 To FIRST UNITED BANK $99.00 To $1,846.00 To $ To $ To $ To $ To $ To $ To $ To $ To $ To $ To MILITARY LENDING ACT DISCLOSURES Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). A "Covered Borrower" for purposes of this loan means a consumer who, at the time the consumer becomes obligated on this loan, is a covered member or a dependent of a covered member as defined by the Military Lending Act. A Covered Borrower does not mean a consumer who (though a Covered Borrower at the time he or she became obligated on this transaction) no longer is a covered member or a dependent of a covered member as defined by the Military Lending Act. LOAN AGREEMENT In this Loan Agreement ("Agreement") all references to "Credit Union", "We", "Our" or "Us" mean the Credit Union whose name appears above and anyone to whom the Credit Union assigns or transfers this Agreement. All references to "You" or "Your" mean each person who signs, or otherwise authenticates, this Agreement as a borrower. 1. PROMISE TO PAY - You promise to pay $19,099.00 to the Credit Union plus interest on the unpaid balance until what You owe has been repaid. For fixed rate loans, the interest rate is 10.450% per year. Collection Costs: You promise to pay all costs of collecting the amount you owe under this Agreement. These costs will include reasonable attorney fees not in excess of 15% of the unpaid debt after default and referral to an attorney, not a salaried employee of the credit union, unless you borrowed $1,000 or less at an interest rate greater than 10% per year. 2. PAYMENTS - You promise to make payments of the amount and at the time shown in the Truth in Lending Disclosure. You may prepay any amount without penalty. If You prepay any part of what You owe, You are still required to make the regularly scheduled payments, unless We have agreed to a change in the payment schedule. Because this is a simple interest loan, if You do not make payments exactly as scheduled, Your final payment may be more or less than the amount of the final payment that is disclosed. If You elect voluntary payment protection, We will either include the premium or program fee(s) in Your payments or extend the term of Your loan. If the term is extended, You will be required to make additional payments of the scheduled amount, until what You owe has been paid. You promise to make all payments to the place We choose. If this loan refinances another loan You have with Us, the other loan will be canceled and refinanced as of the date of this loan. Unless otherwise required by law, payments will be applied to amounts owed in the manner We choose. 3. LOAN PROCEEDS BY MAIL - If the proceeds of this loan are mailed to You, interest on this loan begins on the date the loan proceeds are mailed to You. 4. SECURITY FOR LOAN - This Agreement is secured by all property described in the "Security" section of the Truth in Lending Disclosure. Property securing other loans You have with Us also secures this loan, unless the property is a dwelling or otherwise prohibited by federal and/or state law. In addition to Your pledge of shares, We may also have what is known as a statutory lien on all individual and joint accounts You have with Us. A statutory lien means We have the right under federal and/or state law to claim an interest in Your accounts. Unless otherwise prohibited by federal and/or state law, We can enforce a statutory lien against Your shares and dividends and, if any, interest and deposits, in all individual and joint accounts You have with Us to satisfy any outstanding financial obligation that is due and payable to Us. We may exercise Our right to enforce this lien without further notice to You, to the extent permitted by law. For all borrowers: You pledge as security for this loan all shares and dividends and, if any, all deposits and interest in all joint and individual accounts You have with the Credit Union now and in the future. The statutory lien and/or Your pledge will allow Us to apply the funds in Your account(s) to what You owe when You are in default. If a dollar amount and account number are listed in the "Security" section of the Truth in Lending Disclosure, You may not withdraw the amount that has been specifically pledged to secure this loan until the Credit Union agrees to release all or part of the pledged amount. The statutory lien and Your pledge do not apply to any Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security. 5. DEFAULT - You will be in default under this Agreement if You do not make a payment of the amount required on or before the date it is due. You will be in default if You break any promise You made in connection with this loan or if anyone is in default under any security agreement made in connection with this Agreement. You will be in default if You die, file for bankruptcy, become insolvent (that is, unable to pay Your bills and loans as they become due), or if You made any false or misleading statements in Your loan application. You will also be in default if something happens that We believe may seriously affect Your ability to repay what You owe under this Agreement or if You are in default under any other loan agreement You have with Us. 6. ACTIONS AFTER DEFAULT - When You are in default, We may demand immediate payment of the entire unpaid balance under this Agreement. If We demand immediate payment, You will continue to pay interest at the rate provided for in this Agreement, until what You owe has been repaid. We will also apply against what You owe any shares and/or deposits given as security under this Agreement. We may also exercise any other rights given by law when You are in default. Unless You are a Covered Borrower under the Military Lending Act, You waive any right You have to receive demand for payment, notice of Intent to demand immediate payment and notice of demand for immediate payment. 7. EACH PERSON RESPONSIBLE - Each person who signs, or otherwise authenticates, this Agreement will be individually and jointly responsible for paying the entire amount owed under this Agreement. This means We can enforce Our rights against any one of You individually or against all of You together. 8. LATE CHARGE - If You are late in making a payment, You promise to pay the late charge shown in the Truth In Lending Disclosure. If no late charge is shown, You will not be charged one. 9. DELAY IN ENFORCING RIGHTS - We can delay enforcing any of Our rights under this Agreement any number of times without losing the ability to exercise Our rights later. We can enforce this Agreement against Your heirs or legal representatives. 10. CONTINUED EFFECTIVENESS - If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect. 11. NOTICES - Notices will be sent to You at the most recent address You have given Us in writing. Notice to any one of You will be notice to all. 12. USE OF ACCOUNT - You promise to use Your account only for consumer (personal, family or household) purposes, unless the Credit Union gives You written permission to use the account also for agricultural or commercial purposes, or to purchase real estate. 13. NO ORAL AGREEMENTS -- THIS NOTE CONSTITUTES A "WRITTEN LOAN AGREEMENT" PURSUANT TO SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE, IF SUCH SECTION APPLIES. THIS WRITTEN LOAN 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. 14. The following is required by Vermont law: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. 15. NOTICE TO UTAH BORROWERS: This written Agreement is the final expression of the Agreement between You and the Credit Union. This written Agreement may not be contradicted by evidence of any oral agreement. 16. OTHER PROVISIONS - SECURITY AGREEMENT In this Security Agreement ("Agreement") all references to "Credit Union", "We", "Our" or "Us" mean the Credit Union whose name appears on this document and anyone to whom the Credit Union assigns or transfers this Agreement. All references to the "Loan" mean the loan described in the Loan Agreement that is part of this document. All references to "You" or "Your" mean any person who signs, or otherwise authenticates, this Agreement. 1. THE SECURITY FOR THE LOAN - You give Us what is known as a security interest in the Property described in the "Security" section of the Truth in Lending Disclosure that is part of this document ("the Property"). The security interest You give includes all accessions. Accessions are things which are attached to or installed in the Property now or in the future. The security interest also includes any replacements for the Property which You buy within 10 days of the Loan and any extensions, renewals or refinancings of the Loan. It also includes any money You receive from selling the Property or from insurance You have on the Property. If the value of the Property declines, You promise to give Us more property as security if asked to do so. 2. WHAT THE SECURITY INTEREST COVERS/CROSS COLLATERAL PROVISIONS - The security interest secures the Loan and any extensions, renewals or refinancings of the Loan. Unless prohibited by applicable law, the security interest also secures any other loans, including any credit card loan, You have now or receive in the future from Us and any other amounts You owe Us for any reason now or in the future, except any loan secured by Your principal dwelling. If the Property is household goods as defined by the Federal Trade Commission Credit Practices Rule or Your principal dwelling, the Property will secure only this Loan and not other loans or amounts You owe Us. 3. OWNERSHIP OF THE PROPERTY - You promise that You own the Property or, if this Loan is to buy the Property, You promise You will use the Loan proceeds for that purpose. You promise that no one else has any interest in or claim against the Property that You have not already told Us about. You promise not to sell or lease the Property or to use it as security for a loan with another creditor until the Loan is repaid. You promise You will allow no other security interest or lien to attach to the Property either by Your actions or by operation of law. 4. PROTECTING THE SECURITY INTEREST - If Your state issues a title for the Property, You promise to have Our security interest shown on the title. We may have to file what is called a financing statement to protect Our security interest from the claims of others. You irrevocably authorize Us to execute (on Your behalf), if applicable, and file one or more financing, continuation or amendment statements pursuant to the Uniform Commercial Code (UCC) in a form satisfactory to Us. You promise to do whatever else We think is necessary to protect Our security interest in the Property. You also promise to pay all costs, including but not limited to any attorney fees, We incur in protecting Our security interest and rights in the Property, to the extent permitted by applicable law. 5. USE OF PROPERTY - Until the Loan has been paid off, You promise You will: (1) Use the Property carefully and keep it in good repair. (2) Obtain Our written permission before making major changes to the Property or changing the address where the Property is kept. (3) Inform Us in writing before changing Your address. (4) Allow Us to inspect the Property. (5) Promptly notify Us if the Property is damaged, stolen or abused. (6) Not use the Property for any unlawful purpose. (7) Not retitle the Property in another state without telling Us. 6. PROPERTY INSURANCE, TAXES AND FEES - You promise to pay all taxes and fees (like registration fees) due on the Property and to keep the Property insured against loss and damage. The amount and coverage of the property insurance must be acceptable to Us. You may provide the property insurance through a policy You already have, or through a policy You get and pay for. You promise to make the insurance policy payable to Us and to deliver the policy or proof of coverage to Us if asked to do so. If You cancel Your insurance and get a refund, We have a right to the refund. If the Property is lost or damaged, We can use the insurance settlement to repair the Property or apply it towards what You owe. You authorize Us to endorse any draft or check which may be payable to You in order for Us to collect any refund or benefits due under Your insurance policy. If You do not pay the taxes or fees on the Property when due or keep it insured, We may pay these obligations, but We are not required to do so. Any money We spend for taxes, fees or insurance will be added to the unpaid balance of the Loan and You will pay interest on those amounts at the same rate You agreed to pay on the Loan. We may receive payments in connection with the insurance from a company which provides the insurance. We may monitor Our loans for the purpose of determining whether You and other borrowers have complied with the insurance requirements of Our loan agreements or may engage others to do so. The insurance charge added to the Loan may include (1) the insurance company's payments to Us and (2) the cost of determining compliance with the insurance requirements. If We add amounts for taxes, fees or insurance to the unpaid balance of the Loan, We may increase Your payments to pay the amount added within the term of the insurance or term of the Loan. 7. INSURANCE NOTICE - If You do not purchase the required property insurance, the insurance We may purchase and charge You for will cover only Our interest in the Property. The premium for this insurance may be higher because the insurance company may have given Us the right to purchase insurance after uninsured collateral is lost or damaged. The insurance will not be liability insurance and will not satisfy any state financial responsibility or no fault laws. 8. DEFAULT - You will be in default if You break any promise You make or fail to perform any obligation You have under this Agreement. You will also be in default under this Agreement if the Loan is in default. You will be in default if any Property You have given Us as security is repossessed by someone else, seized under a forfeiture or similar law, or if anything else happens that significantly affects the value of the Property or Our security interest in it. 9. WHAT HAPPENS IF YOU ARE IN DEFAULT - When You are in default, We may demand immediate payment of the outstanding balance of the Loan without giving You advance notice and take possession of the Property. You agree the Credit Union has the right to take possession of the Property without judicial process if this can be done without breach of the peace. If We ask, You promise to deliver the Property at a time and place We choose. If the Property is a motor vehicle or boat, You agree that We may obtain a key or other device necessary to unlock and operate it, when You are in default. We will not be responsible for any other property not covered by this Agreement that You leave inside the Property or that is attached to the Property. We will try to return that property to You or make it available for You to claim. After We have possession of the Property, We can sell it and apply the money to any amounts You owe Us. We will give You notice of any public disposition or the date after which a private disposition will be held. Our expenses for taking possession of and selling the Property will be deducted from the money received from the sale. Those costs may include the cost of storing the Property, preparing it for sale and attorney's fees to the extent permitted under state law or awarded under the Bankruptcy Code. If You have agreed to pay the Loan, You must pay any amount that remains unpaid after the sale money has been applied to the unpaid balance of the Loan and to what You owe under this Agreement. You agree to pay interest on that amount at the same rate as the Loan until that amount has been paid. 10. DELAY IN ENFORCING RIGHTS AND CHANGES IN THE LOAN - We can delay enforcing any of Our rights under this Agreement any number of times without losing the ability to exercise Our rights later. We can enforce this Agreement against Your heirs or legal representatives. If We change the terms of the Loan, You agree that this Agreement will remain in effect. 11. CONTINUED EFFECTIVENESS - If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect. 12. NOTICE FOR ARIZONA OWNERS OF PROPERTY - You must return a motor vehicle that is subject to a security interest within thirty days after You have received notice of default. Notice of default will be mailed to the address You gave Us and it is Your responsibility to notify Us if Your address changes. The maximum penalty for failure to return a motor vehicle that is subject to a security interest is suspension of the registration of, and any license plate assigned to, the motor vehicle. The following notice applies ONLY when the box at left is marked. 13. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. 14. OTHER PROVISIONS - SIGNATURES By signing, or otherwise authenticating, as Borrower, You agree to the terms of the Loan Agreement. If Property is described in the "Security" section of the Truth In Lending Disclosure, You also agree to the terms of the Security Agreement. If You sign, or otherwise authenticate, as "Owner of Property" You agree only to the terms of the Security Agreement. CAUTION: IT IS IMPORTANT THAT YOU THOROUGHLY READ THE AGREEMENT (I.E., CONTRACT) BEFORE YOU SIGN IT. Borrower 1 Signature by: [Signature] X BOBBY WILLIAMS Date 12/29/2023 (Seal) Borrower 2 Signature: X (Seal) Signature X (Seal) Date Borrower 3: [ ] Owner of Property [ ] Witness [X] Other: Borrower 4: [ ] Owner of Property [ ] Witness [ ] Other: EXHIBIT 2 Loan and Security Agreements and Disclosure Statement Covered Borrower Under Military Lending Act LOAN DATE ACCOUNT NUMBER LOAN NUMBER MATURITY DATE 8/23/2024 [redacted] 02 8/23/2026 BORROWER 1 (Name & Address) BOBBY RAY WILLIAMS 15928 IRON RIDGE RD EDMOND, OK 73013-5863 BORROWER 2 (Name & Address) BORROWER 3 (Name & Address) BORROWER 4 (Name & Address) TRUTH IN LENDING DISCLOSURE ('e' means an estimate) ANNUAL PERCENTAGE RATE FINANCE CHARGE Amount Financed Total of Payments Total Sale Price The cost of Your credit as a yearly rate. The dollar amount the credit will cost You. The amount of credit provided to You or on Your behalf. The amount You will have paid after You have made all payments as scheduled. The total cost of Your purchase on credit is $__________, which includes Your down payment of $__________ 16.990 % ($475.60) e $2,500.00 ($3,126.21) e $0.00 Your Payment Schedule Will Be: Number of Payments Amount of Payments Payment Frequency When Payments Are Due 23 $130.26 MONTHLY beginning 8/23/2024 1 $130.23 MONTHLY 8/23/2026 Property Insurance: You may obtain property insurance from anyone You want that is acceptable to the Credit Union. If You get the Insurance from the Credit Union You will pay $_______ Late Charge: $30.00 after 14 days. Prepayment: If You pay off early You will not have to pay a penalty. Required Deposit: The Annual Percentage Rate does not take into account Your required deposit, if any. Demand: ☐ This obligation has a demand feature. ☐ All disclosures are based on an assumed maturity of one year. Filing Fees Non-Filing Insurance $______________ $______________ Security: Collateral securing other loans with the Credit Union may also secure this Loan. You are giving a security interest in Your shares and dividends and, if any, Your deposits and interest in the Credit Union; and the Property described below: Collateral Property/Model/Make Year I.D. Number Type Value Key Number $_________________ $_________________ $_________________ Other (Describe) Pledge of Shares $______ in Account No. $______ in Account No. See Your contract documents for any additional information about nonpayment, default, and any required repayment in full before the scheduled date. ITEMIZATION OF THE AMOUNT FINANCED ('e' means an estimate) Itemization of Amount Financed of $2,500.00 Amount Given to You Directly $0.00 Amount Paid on Your Account $0.00 Prepaid Finance Charge $0.00 Amounts Paid to Others on Your Behalf: (If an amount is marked with an asterisk (*) We will be retaining a portion of the amount.) $2,500.00 To 150255 $__________ To $ $__________ To $ $__________ To $ $__________ To $ $__________ To $ $__________ To $ $__________ To MILITARY LENDING ACT DISCLOSURES Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). A "Covered Borrower" for purposes of this loan means a consumer who, at the time the consumer becomes obligated on this loan, is a covered member or a dependent of a covered member as defined by the Military Lending Act. A Covered Borrower does not mean a consumer who (though a Covered Borrower at the time he or she became obligated on this transaction) no longer is a covered member or a dependent of a covered member as defined by the Military Lending Act. LOAN AGREEMENT In this Loan Agreement ("Agreement") all references to "Credit Union", "We", "Our" or "Us" mean the Credit Union whose name appears above and anyone to whom the Credit Union assigns or transfers this Agreement. All references to "You" or "Your" mean each person who signs, or otherwise authenticates, this Agreement as a borrower. 1. PROMISE TO PAY - You promise to pay $2,500.00 to the Credit Union plus interest on the unpaid balance until what You owe has been repaid. For fixed rate loans, the interest rate is 16.990% per year, Collection Costs: You promise to pay all costs of collecting the amount you owe under this Agreement. These costs will include reasonable attorney fees not in excess of 15% of the unpaid debt after default and referral to an attorney, not a salaried employee of the credit union, unless you borrowed $1,000 or less at an interest rate greater than 10% per year. 2. PAYMENTS - You promise to make payments of the amount and at the time shown in the Truth in Lending Disclosure. You may prepay any amount without penalty. If You prepay any part of what You owe, You are still required to make the regularly scheduled payments, unless We have agreed to a change in the payment schedule. Because this is a simple interest loan, if You do not make payments exactly as scheduled, Your final payment may be more or less than the amount of the final payment that is disclosed. If You elect voluntary payment protection, We will either include the premium or program fee(s) in Your payments or extend the term of Your loan. If the term is extended, You will be required to make additional payments of the scheduled amount, until what You owe has been paid. You promise to make all payments to the place We choose. If this loan refinances another loan You have with Us, the other loan will be canceled and refinanced as of the date of this loan. Unless otherwise required by law, payments will be applied to amounts owed in the manner We choose. 3. LOAN PROCEEDS BY MAIL - If the proceeds of this loan are mailed to You, interest on this loan begins on the date the loan proceeds are mailed to You. 4. SECURITY FOR LOAN - This Agreement is secured by all property described in the "Security" section of the Truth in Lending Disclosure. Property securing other loans You have with Us also secures this loan, unless the property is a dwelling or otherwise prohibited by federal and/or state law. In addition to Your pledge of shares, We may also have what is known as a statutory lien on all individual and joint accounts You have with Us. A statutory lien means We have the right under federal and/or state law to claim an interest in Your accounts. Unless otherwise prohibited by federal and/or state law, We can enforce a statutory lien against Your shares and dividends and, if any, interest and deposits, in all individual and joint accounts You have with Us to satisfy any outstanding financial obligation that is due and payable to Us. We may exercise Our right to enforce this lien without further notice to You, to the extent permitted by law. For all borrowers: You pledge as security for this loan all shares and dividends and, if any, all deposits and interest in all joint and individual accounts You have with the Credit Union now and in the future. The statutory lien and/or Your pledge will allow Us to apply the funds in Your account(s) to what You owe when You are in default. If a dollar amount and account number are listed in the "Security" section of the Truth in Lending Disclosure, You may not withdraw the amount that has been specifically pledged to secure this loan until the Credit Union agrees to release all or part of the pledged amount. The statutory lien and Your pledge do not apply to any Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security. 5. DEFAULT - You will be in default under this Agreement if You do not make a payment of the amount required on or before the date it is due. You will be in default if You break any promise You made in connection with this loan or if anyone is in default under any security agreement made in connection with this Agreement. 'You will be in default if You die; file for bankruptcy, become insolvent (that is, unable to pay Your bills and loans as they become due), or if You made any false or misleading statements in Your loan application. You will also be in default if something happens that We believe may seriously affect Your ability to repay what You owe under this Agreement or if You are in default under any other loan agreement You have with Us. 6. ACTIONS AFTER DEFAULT - When You are in default, We may demand immediate payment of the entire unpaid balance under this Agreement. If We demand immediate payment, You will continue to pay interest at the rate provided for in this Agreement, until what You owe has been repaid. We will also apply against what You owe any shares and/or deposits given as security under this Agreement. We may also exercise any other rights given by law when You are in default. Unless you are a Covered Borrower under the Military Lending Act, You waive any right You have to receive demand for payment, notice of intent to demand immediate payment and notice of demand for immediate payment. 7. EACH PERSON RESPONSIBLE - Each person who signs, or otherwise authenticates, this Agreement will be individually and jointly responsible for paying the entire amount owed under this Agreement. This means We can enforce Our rights against any one of You individually or against all of You together. 8. LATE CHARGE - If You are late in making a payment, You promise to pay the late charge shown in the Truth in Lending Disclosure. If no late charge is shown, You will not be charged one. 9. DELAY IN ENFORCING RIGHTS - We can delay enforcing any of Our rights under this Agreement any number of times without losing the ability to exercise Our rights later. We can enforce this Agreement against Your heirs or legal representatives. 10. CONTINUED EFFECTIVENESS - If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect. 11. NOTICES - Notices will be sent to You at the most recent address You have given Us in writing. Notice to any one of You will be notice to all. 12. USE OF ACCOUNT - You promise to use Your account only for consumer (personal, family or household) purposes, unless the Credit Union gives You written permission to use the account also for agricultural or commercial purposes, or to purchase real estate. 13. NO ORAL AGREEMENTS -- THIS NOTE CONSTITUTES A "WRITTEN LOAN AGREEMENT" PURSUANT TO SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE, IF SUCH SECTION APPLIES. THIS WRITTEN LOAN 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. 14. The following is required by Vermont law: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. 15. NOTICE TO UTAH BORROWERS: This written Agreement is the final expression of the Agreement between You and the Credit Union. This written Agreement may not be contradicted by evidence of any oral agreement. 16. OTHER PROVISIONS - SECURITY AGREEMENT In this Security Agreement ("Agreement") all references to "Credit Union", "We", "Our" or "Us" mean the Credit Union whose name appears on this document and anyone to whom the Credit Union assigns or transfers this Agreement. All references to the "Loan" mean the loan described in the Loan Agreement that is part of this document. All references to "You" or "Your" mean any person who signs, or otherwise authenticates, this Agreement. 1. THE SECURITY FOR THE LOAN - You give Us what is known as a security interest in the Property described in the "Security" section of the Truth in Lending Disclosure that is part of this document ("the Property"). The security interest You give includes all accessions. Accessions are things which are attached to or installed in the Property now or in the future. The security interest also includes any replacements for the Property which You buy within 10 days of the Loan and any extensions, renewals or refinancings of the Loan. It also includes any money You receive from selling the Property or from insurance You have on the Property. If the value of the Property declines, You promise to give Us more property as security if asked to do so. 2. WHAT THE SECURITY INTEREST COVERS/CROSS COLLATERAL PROVISIONS - The security interest secures the Loan and any extensions, renewals or refinancings of the Loan. Unless prohibited by applicable law, the security interest also secures any other loans, including any credit card loan, You have now or receive in the future from Us and any other amounts You owe Us for any reason now or in the future, except any loan secured by Your principal dwelling. If the Property is household goods as defined by the Federal Trade Commission Credit Practices Rule or Your principal dwelling, the Property will secure only this Loan and not other loans or amounts You owe Us. 3. OWNERSHIP OF THE PROPERTY - You promise that You own the Property or, if this Loan is to buy the Property, You promise You will use the Loan proceeds for that purpose. You promise that no one else has any interest in or claim against the Property that You have not already told Us about. You promise not to sell or lease the Property or to use it as security for a loan with another creditor until the Loan is repaid. You promise You will allow no other security interest or lien to attach to the Property either by Your actions or by operation of law. 4. PROTECTING THE SECURITY INTEREST - If Your state issues a title for the Property, You promise to have Our security interest shown on the title. We may have to file what is called a financing statement to protect Our security interest from the claims of others. You irrevocably authorize Us to execute (on Your behalf), if applicable, and file one or more financing, continuation or amendment statements pursuant to the Uniform Commercial Code (UCC) in a form satisfactory to Us. You promise to do whatever else We think is necessary to protect Our security interest in the Property. You also promise to pay all costs, including but not limited to any attorney fees, We incur in protecting Our security interest and rights in the Property, to the extent permitted by applicable law. 5. USE OF PROPERTY - Until the Loan has been paid off, You promise You will: (1) Use the Property carefully and keep it in good repair. (2) Obtain Our written permission before making major changes to the Property or changing the address where the Property is kept. (3) Inform Us in writing before changing Your address. (4) Allow Us to inspect the Property. (5) Promptly notify Us if the Property is damaged, stolen or abused. (6) Not use the Property for any unlawful purpose. (7) Not retitle the Property in another state without telling Us. 6. PROPERTY INSURANCE, TAXES AND FEES - You promise to pay all taxes and fees (like registration fees) due on the Property and to keep the Property insured against loss and damage. The amount and coverage of the property insurance must be acceptable to Us. You may provide the property insurance through a policy You already have, or through a policy You get and pay for. You promise to make the insurance policy payable to Us and to deliver the policy or proof of coverage to Us if asked to do so. If You cancel Your insurance and get a refund, We have a right to the refund. If the Property is lost or damaged, We can use the insurance settlement to repair the Property or apply it towards what You owe. You authorize Us to endorse any draft or check which may be payable to You in order for Us to collect any refund or benefits due under Your insurance policy. If You do not pay the taxes or fees on the Property when due or keep it insured, We may pay these obligations, but We are not required to do so. Any money We spend for taxes, fees or insurance will be added to the unpaid balance of the Loan and You will pay interest on those amounts at the same rate You agreed to pay on the Loan. We may receive payments in connection with the insurance from a company which provides the insurance. We may monitor Our loans for the purpose of determining whether You and other borrowers have complied with the insurance requirements of Our loan agreements or may engage others to do so. The insurance charge added to the Loan may include (1) the insurance company's payments to Us and (2) the cost of determining compliance with the insurance requirements. If We add amounts for taxes, fees or insurance to the unpaid balance of the Loan, We may increase Your payments to pay the amount added within the term of the insurance or term of the Loan. 7. INSURANCE NOTICE - If You do not purchase the required property insurance, the insurance We may purchase and charge You for will cover only Our interest in the Property. The premium for this insurance may be higher because the insurance company may have given Us the right to purchase insurance after uninsured collateral is lost or damaged. The insurance will not be liability insurance and will not satisfy any state financial responsibility or no fault laws. 8. DEFAULT - You will be in default if You break any promise You make or fail to perform any obligation You have under this Agreement. You will also be in default under this Agreement if the Loan is in default. You will be in default if any Property You have given Us as security is repossessed by someone else, seized under a forfeiture or similar law, or if anything else happens that significantly affects the value of the Property or Our security interest in it. 9. WHAT HAPPENS IF YOU ARE IN DEFAULT - When You are in default, We may demand immediate payment of the outstanding balance of the Loan without giving You advance notice and take possession of the Property. You agree the Credit Union has the right to take possession of the Property without judicial process if this can be done without breach of the peace. If We ask, You promise to deliver the Property at a time and place We choose. If the Property is a motor vehicle or boat, You agree that We may obtain a key or other device necessary to unlock and operate it, when You are in default. We will not be responsible for any other property not covered by this Agreement that You leave inside the Property or that is attached to the Property. We will try to return that property to You or make it available for You to claim. After We have possession of the Property, We can sell it and apply the money to any amounts You owe Us. We will give You notice of any public disposition or the date after which a private disposition will be held. Our expenses for taking possession of and selling the Property will be deducted from the money received from the sale. Those costs may include the cost of storing the Property, preparing it for sale and attorney's fees to the extent permitted under state law or awarded under the Bankruptcy Code. If You have agreed to pay the Loan, You must pay any amount that remains unpaid after the sale money has been applied to the unpaid balance of the Loan and to what You owe under this Agreement. You agree to pay interest on that amount at the same rate as the Loan until that amount has been paid. 10. DELAY IN ENFORCING RIGHTS AND CHANGES IN THE LOAN - We can delay enforcing any of Our rights under this Agreement any number of times without losing the ability to exercise Our rights later. We can enforce this Agreement against Your heirs or legal representatives. If We change the terms of the Loan, You agree that this Agreement will remain in effect. 11. CONTINUED EFFECTIVENESS - If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect. 12. NOTICE FOR ARIZONA OWNERS OF PROPERTY - You must return a motor vehicle that is subject to a security interest within thirty days after You have received notice of default. Notice of default will be mailed to the address You gave Us and it is Your responsibility to notify Us if Your address changes. The maximum penalty for failure to return a motor vehicle that is subject to a security interest is suspension of the registration of, and any license plate assigned to, the motor vehicle. Credit Union The Focus Federal Credit Union Acct No [Blacked Out] Loan No. 02 ☐ The following notice applies ONLY when the box at left is marked. 13. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. 14. OTHER PROVISIONS - SIGNATURES By signing, or otherwise authenticating, as Borrower, You agree to the terms of the Loan Agreement. If Property is described in the "Security" section of the Truth in Lending Disclosure, You also agree to the terms of the Security Agreement. If You sign, or otherwise authenticate, as "Owner of Property" You agree only to the terms of the Security Agreement. CAUTION: IT IS IMPORTANT THAT YOU THOROUGHLY READ THE AGREEMENT (I.E., CONTRACT) BEFORE YOU SIGN IT. [Signature] X (Seal) BOBBY RAY WILLIAMS [Signature] X (Seal) Borrower 3: ☐ Owner of Property ☐ Witness ☐ Other Borrower 2 Signature X (Seal) [Signature] X (Seal) Borrower 4: ☐ Owner of Property ☐ Witness ☐ Other