U.S. BANK NATIONAL ASSOCIATION v. RUSTY MILLIGAN

IN THE DISTRICT COURT WITHIN AND FOR GARVIN COUNTY STATE OF OKLAHOMA U.S. BANK NATIONAL ASSOCIATION, Plaintiff, -vs- RUSTY MILLIGAN; SPOUSE, IF ANY, OF RUSTY MILLIGAN; OCCUPANT(S) OF THE PREMISES; Defendants. CASE NO. (C)-26-40 PETITION COMES NOW U.S. BANK NATIONAL ASSOCIATION (herein: “Plaintiff”), and for its causes of action against the above-named defendants, alleges and states as follows: 1. Plaintiff was at all times and is duly authorized to bring this action. 2. That Rusty Milligan, (herein: “Borrower”), is obligated on a certain promissory promissory note and mortgage described below. 3. Borrower, for good and valuable consideration, made, executed, and delivered to FIRST UNITED BANK AND TRUST COMPANY, the original lender and Plaintiff’s predecessor in interest, a certain written promissory note which is the subject of this action (herein: “Note”). A true and correct copy of the Note is attached hereto as Exhibit “A.” a. The Note is dated August 27, 2009; b. The Note is made in the amount of $87,745.00; c. The Note establishes an annual fixed interest rate of 5.830%; and d. Plaintiff is entitled to enforce the Note. 4. As part of the same loan transaction, and in order to secure the payment of the loan made, Borrower made, executed, and delivered to Mortgage Electronic Registration Systems, Inc., as nominee for FIRST UNITED BANK AND TRUST COMPANY, the original lender of the Note and Plaintiff’s predecessor in interest, a mortgage and conveyed the mortgage to the mortgagee (herein: “Mortgage”). The mortgage encumbers the following property: A TRACT IN THE NE/4 OF SECTION 23, TOWNSHIP 4 NORTH, RANGE 1 EAST, I.B.M., GARVIN COUNTY, OKLAHOMA, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST/CORNER OF THE NE/4 NE/4 OF SAID SECTION 23; THENCE S 00 DEGREES 38'32" E, ALONG THE EAST LINE OF SAID SECTION 23, A DISTANCE OF 58.52 FEET; THENCE N 88 DEGREES 10'21" W ALONG AN EXISTING FENCE, A DISTANCE OF 452.04 FEET; THENCE N 00 DEGREES 38'32" W A DISTANCE OF 216.85 FEET; THENCE N 89 DEGREES 21'28" W A DISTANCE OF 451.62 FEET TO THE EAST LINE OF SAID SECTION 23; THENCE S 00 DEGREES 38'32" E A DISTANCE OF 177.81 FEET TO THE P.O.B. (therein: “Property”) with a common address 13288 N County Rd 3280, Pauls Valley, OK 73075, formerly known as RR 3 Box 86, Pauls Valley, OK 73075. A true and correct copy of the Mortgage is attached as Exhibit “B.” a. The Mortgage is dated August 27, 2009; b. Rusty Milligan, a single man, signed the Mortgage; and c. The Mortgage was recorded in the Garvin County Clerk's Office on September 17, 2009, at Book 1892, and Page 124 at Instrument No. I-2009-006293. 5. In addition to the Note and Mortgage described above, Borrower received and executed the following Loan Modifications. True and correct copies of the Loan Modifications are attached as an addendum to the Mortgage at Exhibit “C.” a. A Modification which added interest and other amounts capitalized, modified the annual interest rate, and modified the maturity date was recorded in the Garvin County Clerk’s Office on February 18, 2016, at Book 2128, and Page 677 at Instrument No. I-2016-001093. b. A Modification which added interest and other amounts capitalized, modified the annual interest rate, and modified the maturity date was recorded in the Garvin County Clerk’s Office on February 14, 2023, at Book 2427, and Page 818 at Instrument No. I-2023-001076. c. A Modification which added interest and other amounts capitalized, modified the annual interest rate, and modified the maturity date was recorded in the Garvin County Clerk’s Office on April 23, 2025, at Book 2512, and Page 325 at Instrument No. I-2025-002385. 6. By virtue of Warranty Deed, Borrower is the present record owner of the subject Property. The Warranty Deed was recorded with the Garvin County Clerk’s Office on September 17, 2009, at Book 1892, and Page 120 at Instrument No. I-2009-006291. 7. The Borrower is obligated on the subject Note and has not been released from liability thereon. 8. Borrower filed for Chapter 7 Bankruptcy in the United States Bankruptcy Court for the Western District of Oklahoma, Case No. 5:2013-bk-12810. Borrower’s personal liability on the subject Note has been discharged. 9. The Mortgage encumbers the real estate along with all the improvements, easements, appurtenances, and fixtures from the date of the execution to present and hereafter, as well as all replacements and additions to the Property. Mortgage, Ex. B. 10. Plaintiff is entitled to enforce the Note in accordance with OKLA. STAT. TIT. 12A, §3-301. 11. Plaintiff has complied with all the terms and conditions of the Note and Mortgage. 12. Borrower is in default. The default claimed is failure to make payment, and the default date is August 1, 2025. The default has not been cured by any available means. 13. The Note and Mortgage provide that if default is made as to any of the terms of the Note and Mortgage by Borrower, or if Borrower fails to perform any of the other obligations described in the Note and Mortgage, that the entire unpaid principal, interest, and all other sums allowed and secured by the Note and Mortgage, shall become due and payable at the option of the Plaintiff. Further, in response to Borrower’s default, Plaintiff is entitled to foreclose the mortgage to recover all amounts due, and to have the Property sold and all proceeds applied to the payment of the entire indebtedness described, allowed, and secured by the Note and Mortgage. 14. Plaintiff has made demand and has accelerated this loan in accordance with the Note, Mortgage, and applicable law. 15. As a necessary measure in the furtherance of enforcing this Note and Mortgage, Plaintiff has incurred costs, which are a further lien upon the Property secured by the Mortgage. 16. The Note and Mortgage provide that the attorney fees incurred by Plaintiff in the enforcement of the Note and Mortgage are the responsibility of Borrower and constitute a further lien on the Property secured by the Mortgage. 17. After consideration of all credits to this loan account, Plaintiff is due the sum of $112,797.34 in unpaid principal balance, with 4.250% interest per annum thereon, or as adjusted by the Note and Mortgage, from July 1, 2025, until paid; and all other costs of this action including title costs, late fees, NSF fees, escrow advances, corporate advances, property preservation costs, attorney fees, and all costs and fees associated with the furtherance of this action, which is a first, prior, and superior lien on the Property. 18. Borrower may claim some right, title, lien, estate, encumbrance, claim, assessment, or other interest in the Property by virtue of a possible homestead interest which they may have or claim to have in the Property. 19. With respect to the additional defendants, Plaintiff alleges as follows: a. Additional defendant, Spouse, if any, of Rusty Milligan, may claim some right, title, lien, estate, encumbrance, claim, assessment, or other interest in the Property by virtue of a possible homestead interest which they may have or claim to have in the Property. b. Additional defendants, Occupant(s), if any, of the Premises, whose true and correct legal identities are unknown to the Plaintiff at this time, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of occupancy of the Property. c. Plaintiff further asserts that any right, title, lien, estate, encumbrance, claim assessment, or interest claimed by any defendant is subordinate and inferior to the mortgage lien claimed by Plaintiff. Plaintiff respectfully requests that each and every defendant claiming and interest in the Property be required to establish the claimed right herein or be barred forever for further asserting such a claim. WHEREFORE, Plaintiff prays for a judgment in rem against Borrower in the amount of $112,797.34, with 4.250% interest per annum thereon, or as adjusted by the Note and Mortgage, from July 1, 2025, until paid; all abstracting and title costs incurred by Plaintiff to enforce the Note and Mortgage; all late charges; NSF fees; escrow advances; corporate advances; taxes; insurance premiums; property preservation charges; attorney fees; and all fees and costs associated with this action as allowed by the Note and Mortgage. FURTHER, Plaintiff prays for judgment in rem against Borrower, the Property, the Premises, and all other defendants, awarding judgment as follows: All defendants have set out their purported claims to the Property or have waived their rights to do so. Plaintiff’s mortgage is declared a first, prior, and superior lien on the Property as to all other claims asserted, and further declaring that Plaintiff is entitled to all amounts set forth herein. That Plaintiff is entitled to foreclose the Mortgage, and the Property shall be sold for cash and that sale shall be had with appraisement. The proceeds of the sale shall be applied first to the payment of the costs incurred herein, and then to the satisfaction of the judgment amount, Mortgage, and lien asserted by Plaintiff. That Plaintiff’s Mortgage lien interest is prior, first, and superior to all other claims of defendants. That all right, title, claim, encumbrance, or interest claimed by any defendant shall be adjudged junior, inferior, and subject to Plaintiff’s Mortgage lien. That upon confirmation of the sale, that all and each of the defendants herein, be forever foreclosed, barred, and enjoined from asserting claim of a right, title, estate, encumbrance, or other interest of any nature to the Property. Finally, Plaintiff prays for any and all further relief this Court deems just and equitable. Respectfully submitted, Sally E. Garrison, OBA #18709 Alex S. Rivera, OBA #32269 Amy R. Sullivan, OBA #35938 Dalton Woodring, OBA #36492 The Mortgage Law Firm, PLLC 421 NW 13th Street, Suite 300 Oklahoma City, OK 73103 Telephone: (405) 246-0602 Facsimile: (405) 698-0007 [email protected] [email protected] [email protected] [email protected] Attorneys for Plaintiff THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. NOTE MILLIGAN Loan #: [Redacted] MIN: [Redacted] DURANT, OKLAHOMA [State] AUGUST 27, 2009 [Date] [DURANT,] [City] RR 3 BOX 86, PAULS VALLEY, OK 73075 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $87,745.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is FIRST UNITED BANK AND TRUST COMPANY. I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 5.030%. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1ST day of each month beginning on OCTOBER 1, 2009. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on SEPTEMBER 1, 2039, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 1400 W. MAIN ST., DURANT, OK 74701 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $516.52. 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be .000% of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender’s prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. [Signature] Rusty Milligan 8-27-09 BORROWER - RUSTY MILLIGAN - DATE - [Sign Original Only] ALLONGE TO NOTE LOAN # [REDACTED] ORIGINAL ALLONGE TO NOTE DATE: August 27, 2009 ORIGINAL LOAN AMOUNT: $87,745.00 SUBJECT PROPERTY: RR 3 Box 86 Pauls Valley, OK 73075 IN FAVOR OF: First United Bank and Trust Company AND EXECUTED BY Rusty Milligan Pay to the order of Without Recourse U.S. Bank N.A. Teresa Bulver Vice President PAY TO THE ORDER OF U.S. Bank, N.A. WITHOUT RECOURSE First United Bank and Trust Company By: [Signature] Printed Name: Elisabeth Buchanan Title: Vice President After Recording Return To: FIRST UNITED BANK AND TRUST COMPANY 1400 W. MAIN ST. DURANT, OK 74701 ATTN: FIRST UNITED BANK AND TRUST COMPANY (580) 924-2211 I hereby certify that I received $87,747 and issued receipt No. 234 therefor in payment of mortgage tax on the within mortgage. Dated 12 day of September, 2009 Sandy Seguine, Garvin County Treasurer By Big Baker Deputy [Space Above This Line For Recording Data] MORTGAGE MILLIGAN Loan #: [REDACTED] MIN: [REDACTED] PIN: [REDACTED] DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated AUGUST 27, 2009, together with all Riders to this document. (B) "Borrower" is RUSTY MILLIGAN, A SINGLE MAN. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is FIRST UNITED BANK AND TRUST COMPANY. Lender is a CORPORATION organized and existing under the laws of OK. Lender's address is 1400 W. MAIN ST., DURANT, OK 74701. (E) "Note" means the promissory note signed by Borrower and dated AUGUST 27, 2009. The Note states that Borrower owes Lender EIGHTY SEVEN THOUSAND SEVEN HUNDRED FORTY FIVE AND 00/100 Dollars (U.S. $87,745.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than SEPTEMBER 1, 2039. (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ☐ Adjustable Rate Rider ☐ Condominium Rider ☐ Second Home Rider ☐ Balloon Rider ☐ Planned Unit Development Rider ☐ Biweekly Payment rider ☐ 1-4 Family Rider ☐ Other(s)[specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non -appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY (Type of Recording Jurisdiction) of GARVIN (Name of Recording Jurisdiction): A TRACT IN THE NE/4 OF SECTION 23, TOWNSHIP 4 NORTH, RANGE 1 EAST, I.B.M., GARVIN COUNTY, OKLAHOMA, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST/CORNER OF THE NE/4 NE/4 OF SAID SECTION 23; THENE S 00 DEGREES 38'32" E, ALONG THE EAST LINE OF SAID SECTION 23, A DISTANCE OF 58.52 FEET; THENCE N 88 DEGREES 10'21" W ALONG AN EXISTING FENCE, A DISTANCE OF 452.04 FEET; THENCE N 00 DEGREES 38'32" W A DISTANCE OF 216.85 FEET; THENCE N 89 DEGREES 21'28" W A DISTANCE OF 451.62 FEET TO THE EAST LINE OF SAID SECTION 23; THENCE S 00 DEGREES 38'32" E A DISTANCE OF 177.81 FEET TO THE P.O.B. which currently has the address of RR 3 BOX 86, PAULS VALLEY, OK 73075 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court, and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender’s requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer’s risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer’s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender’s security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender’s satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender’s security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Except as otherwise required by Applicable Law, Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower as required by Applicable Law prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 35 days from the date the notice is given to Borrower, by which the default must be cured; (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property; and (e) any other information required by Applicable Law. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all costs and expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorney's fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice in the manner required by Applicable Law to Borrower and any other persons prescribed by Applicable Law. Lender shall also publish the notice of sale, and the Property shall be sold, as prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs unless Applicable Law provides otherwise. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waiver of Appraisement. Appraisement of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 25. Assumption Fee. If there is an assumption of this loan, Lender may charge an assumption fee of U.S. N/A. 26. Notice of Power of Sale. A power of sale has been granted in this Security Instrument. A power of sale may allow the Lender to take the Property and sell it without going to court in a foreclosure action upon default by Borrower under this Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Rusty Willigan 8-27-09 - BORROWER - RUSTY WILLIGAN - DATE - [Space Below This Line For Acknowledgment] STATE OF OKLAHOMA COUNTY OF GARVIN This instrument was acknowledged before me on AUGUST 27, 2009 by RUSTY MILLIGAN, A SINGLE MAN. JOHN D. HUNTEMAN NOTARY No. 03004162 My Comm. Expires March 11, 2012 PUBLIC GARVIN COUNTY, OK Notary Public: My Commission Expires: TAX-EXEMPT FINANCING RIDER ISSUER: Oklahoma Housing Finance Agency PROGRAM: 208A OHFA LOAN NUMBER: THIS TAX-EXEMPT FINANCING RIDER is made this 27th day of August 2009, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed ("Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Note ("Note") to First United Bank and Trust Company ("Lender") of the same date and covering the property described in the Security Instrument and located at RR 3 Box 56, Pauls Valley, OK 73075. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: Lender, or such of its successors or assignees as may be separate instrument assume responsibility for assuring compliance by the Borrower with the provisions of this Tax-Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Instrument if: (a) All or part of the Property is sold or otherwise transferred (other than by devise, descent or operation of law) by Borrower to a purchaser or other transferee: (i) who cannot reasonably be expected to occupy the property as a principal residence within a reasonable time after the sale or transfer, all as provided in Section 143(d) and (f)(2) of the Internal Revenue Code; or (ii) who has had a present ownership interest in a principal residence during any part of the three-year period ending on the date of the sale or transfer, all as provided in Section 143(d) and (f)(2) of the Internal Revenue Code (except that '100 percent' shall be substituted for '95 percent or more' where the latter appears in Section 143(d)(1)); or (iii) at an acquisition cost which is greater than 80 percent of the average area purchase price (greater than 110 percent for targeted area residences), all as provided in Section 143(e) and (f)(2) of the Internal Revenue Code; or (iv) who has a gross family income in excess of 115% of the applicable median family income (140% of the applicable median family income for a purchaser or transfeeref of a residence in a targeted area), except that 100% and 120% shall be substituted for 115% and 140%, respectively, if the purchaser or other transfeeref has a family of fewer than 3 individuals, all as provided in Sections 143(f) and (f)(2) of the Internal Revenue Code; or (b) Borrower fails to occupy the property described in the Security Instrument without prior written consent of Lender or its successors or assignees described at the beginning of this Tax-Exempt Financing Rider, or (c) Borrower omits or misrepresents a fact that is material with respect to the provisions of Section 143 of the Internal Revenue Code in an application for the loan secured by this Security Instrument. References are to the 1986 Internal Revenue Code in effect on the date of execution of the Security Instrument and are deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions in this Tax-Exempt Financing Rider. Borrower's Signature Date Rusty Milligan 08/27/09 Co-Borrower's Signature Date Co-Borrower's Printed Name STATE OF OKLAHOMA COUNTY OF Garvin Before me the undersigned, a Notary Public, In and for said County and State, on the 27th day of August 2009, there personally appeared Rusty Milligan, who executed the within and foregoing instrument and acknowledged to me that said person(s) executed the same as said person's free and voluntary act and deed for the uses and purposes therein set forth. Given under my hand and seal the day and year last above written. [SEAL] VIEW ADDRESS My Commission Expires: I hereby certify that I received $12,36 and issued receipt No. 494 therefor in payment of mortgage tax on the within mortgage. Dated 18 day of Feb. 20 16 Sandy Goggans, Carvin County Treasurer By B Morris Deputy This Document Prepared By: MAGHAN TURNER U.S. BANK N.A. 4801 FREDERICA ST OWENSBORO, KY 42301 (800) 365-7772 When Recorded Mail To: FIRST AMERICAN TITLE ATTN: LMTS P.O. BOX 27670 SANTA ANA, CA 92799-7670 Requested By and When Recorded Return To: Loan Modification Solutions 3220 El Camino Real Irvine, CA 92602 (800) 323-0165 Tax/Parcel #: [Space Above This Line for Recording Data] Original Principal Amount: $87,745.00 Unpaid Principal Amount: $82,879.07 New Principal Amount: $100,023.04 Total Cap Amount (b minus a equals): $17,143.97 FHA/VA/RHS Case No. [Redacted] Loan No. [Redacted] LOAN MODIFICATION AGREEMENT (MORTGAGE) This Loan Modification Agreement ("Agreement"), made this 15TH day of JANUARY, 2016, between RUSTY MILLIGAN A SINGLE MAN ("Borrower"), whose address is 13288 N COUNTY ROAD 3280, PAULS VALLEY, OKLAHOMA 73075 and U.S. BANK N.A. ("Lender"), whose address is 4801 FREDERICA ST, OWENSBORO, KY 42301 amends and supplements (1) the Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated AUGUST 27, 2009 and recorded on SEPTEMBER 17, 2009 in BOOK 1892 PAGE 124, GARVIN COUNTY, OKLAHOMA, and (2) the Note, in the original principal amount of U.S. $87,745.00, bearing the same date as, and secured by, the Security Instrument, which covers the real and personal property described in the Security Instrument and defined therein as the "Property," located at 13288 N COUNTY ROAD 3280, PAULS VALLEY, OKLAHOMA 73075 the real property described is located in GARVIN COUNTY, OKLAHOMA and being set forth as follows: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF: SEE ATTACHED EXHIBIT “B” FOR MORTGAGE SCHEDULE In consideration of the mutual promises and agreements exchanged, the parties hereto agree as follows (notwithstanding anything to the contrary contained in the Note or Security Instrument): 1. As of, JANUARY 1, 2016 the amount payable under the Note and the Security Instrument (the “Unpaid Principal Balance”) is U.S. $100,023.04, consisting of the amount(s) loaned to Borrower by Lender, plus capitalized interest in the amount of U.S. $17,143.97 and other amounts capitalized, which is limited to escrows and any legal fees and related foreclosure costs that may have been accrued for work completed. 2. Borrower promises to pay the Unpaid Principal Balance, plus interest, to the order of Lender. Interest will be charged on the Unpaid Principal Balance at the yearly rate of 4.2500%, from JANUARY 1, 2016. The Borrower promises to make monthly payments of principal and interest of U.S. $559.10., beginning on the 1ST day of FEBRUARY, 2016, and continuing thereafter on the same day of each succeeding month until principal and interest are paid in full. If on SEPTEMBER 1, 2039 (the “Maturity Date”), the Borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, Borrower will pay these amounts in full on the Maturity Date. 3. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in the Borrower is sold or transferred and the Borrower is not a natural person) without the Lender's prior written consent, the Lender may require immediate payment in full of all sums secured by this Security Instrument. If the Lender exercises this option, the Lender shall give the Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security Instrument. If the Borrower fails to pay these sums prior to the expiration of this period, the Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on the Borrower. 4. The Borrower also will comply with all other covenants, agreements, and requirements of the Security Instrument, including without limitation, the Borrower's covenants and agreements to make all payments of taxes, insurance premiums, assessments, escrow items, impounds, and all other payments that the Borrower is obligated to make under the Security Instrument; however, the following terms and provisions are forever cancelled, null and void, as of the date specified in Paragraph No. 1 above: (a) all terms and provisions of the Note and Security Instrument (if any) providing for, implementing, or relating to, any change or adjustment in the rate of interest payable under the Note; and (b) all terms and provisions of any adjustable rate rider, or other instrument or document that is affixed to, wholly or partially incorporated into, or is part of, the Note or Security Instrument and that contains any such terms and provisions as those referred to in (a) above. 5. If the Borrower has, since inception of this loan but prior to this Agreement, received a discharge in a Chapter 7 bankruptcy, and there having been no valid reaffirmation of the underlying debt, by entering into this Agreement, the Lender is not attempting to re-establish any personal liability for the underlying debt. 6. Nothing in this Agreement shall be understood or construed to be a satisfaction or release in whole or in part of the Note and Security Instrument. Except as otherwise specifically provided in this Agreement, the Note and Security Instrument will remain unchanged, and Borrower and Lender will be bound by, and comply with, all of the terms and provisions thereof, as amended by this Agreement. 7. Borrower agrees to make and execute other documents or papers as may be necessary to effectuate the terms and conditions of this Agreement which, if approved and accepted by Lender, shall bind and inure to the heirs, executors, administrators, and assigns of the Borrower. In Witness Whereof, I have executed this Agreement. Borrower: RUSTY MILLIGAN (signed) Date: 1-30-16 Borrower: Date: Borrower: Date: Borrower: Date: [Space Below This Line for Acknowledgments] BORROWER ACKNOWLEDGMENT STATE OF OKLAHOMA COUNTY OF GARVIN The instrument was acknowledged before me this 20th January 2016 by RUSTY MILLIGAN [Handwritten Signature] Notary Public Printed Name: JEANICE GRIFFIN My Commission expires: 2-27-16 In Witness Whereof, the Lender have executed this Agreement. U.S. BANK N.A. By Angela J. Evans (print name) Mortgage Document Officer (title) Date [Space Below This Line for Acknowledgments] LENDER ACKNOWLEDGMENT STATE OF KENTUCKY COUNTY OF DAVIESS The foregoing instrument was acknowledged before me this 1/25/14 by ANGELA J. EVANS, the MORTGAGE DOCUMENT OFFICER of U.S. BANK N.A., a federally-chartered banking association, on behalf of said national association. Kne Ray? Notary Public Printed Name: Lori Kays My commission expires: 10.5.18 EXHIBIT A BORROWER(S): RUSTY MILLIGAN A SINGLE MAN LOAN NUMBER: [BLANK] LEGAL DESCRIPTION: A TRACT IN THE NE/4 OF SECTION 23, TOWNSHIP 4 NORTH, RANGE 1 EAST, I.B.M., GARVIN COUNTY, OKLAHOMA, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST/CORNER OF THE NE/4 NE/4 OF SAID SECTION 23; THENCE S 00 DEGREES 38'32'' E, ALONG THE EAST LINE OF SAID SECTION 23, A DISTANCE OF 58.52 FEET; THENCE N 88 DEGREES 10'21'' W ALONG AN EXISTING FENCE, A DISTANCE OF 452.04 FEET; THENCE N 00 DEGREES 38'32'' W A DISTANCE OF 216.85 FEET; THENCE N 89 DEGREES 21'28'' W A DISTANCE OF 451.62 FEET TO THE EAST LINE OF SAID SECTION 23; THENCE S 00 DEGREES 38'32'' E A DISTANCE OF 177.81 FEET TO THE P.O.B. ALSO KNOWN AS: 13288 N COUNTY ROAD 3280, PAULS VALLEY, OKLAHOMA 73075 EXHIBIT B MORTGAGE SCHEDULE Mortgage made by RUSTY MILLIGAN A SINGLE MAN to MERS. INC., AS NOMINEE FOR FIRST UNITED BANK AND TRUST COMPANY for $87,745.00 and interest, dated AUGUST 27, 2009 and recorded on SEPTEMBER 17, 2009 in BOOK 1892 PAGE 124. Mortgage tax paid: $ This mortgage was assigned from MERS. INC., AS NOMINEE FOR FIRST UNITED BANK AND TRUST COMPANY, ITS SUCCESSOR AND ASSIGNS (assignor), to U.S. BANK NATIONAL ASSOCIATION (assignee), by assignment of mortgage dated JUNE 24, 2013 and recorded on JULY 1, 2013 in BOOK 2022 PAGE 308. Addendum This Addendum is made a part of that Loan Modification Agreement entered into between U.S. BANK N.A. (the "Lender") and RUSTY MILLIGAN A SINGLE MAN (the "Borrower") dated JANUARY 15, 2016 (the "Loan Modification Agreement"). Notwithstanding anything to the contrary contained in the Loan Modification Agreement, the parties hereto acknowledge the effect of a discharge in bankruptcy that may have been granted to the Borrower prior to the execution hereof and that the Lender may not pursue the Borrower for personal liability. However, the parties acknowledge that the Lender retains certain rights, including but not limited to the right to foreclose its lien under appropriate circumstances. The parties agree that the consideration for this Agreement is the Lender's forbearance from presently exercising its rights and pursuing its remedies under the Security Instrument as a result of the Borrower's default of its obligations thereunder. If the Borrower was discharged in a Chapter 7 bankruptcy proceeding and did not reaffirm the debt subsequent to the execution of the loan documents, based on this representation, Lender agrees that Borrower will not have personal liability on the debt pursuant to this Agreement. Nothing herein shall be construed to be an attempt to collect against the Borrower personally or an attempt to revive personal liability. Notwithstanding, any monthly payments hereunder, Borrower understands that (1) Lender's sole recourse is the enforcement of its security interest in the Property and any action which may exist in relation to the Property itself and that (2) nothing in this Agreement revives or purports to revive any debt, or create any personal liability or obligation for a debt, that was discharged in bankruptcy. [Angela J Evans] /23/14 Lender Signature By: Angela J Evans Title: Mortgage Document Officer Rusty Milligan /30-16 Borrower: RUSTY MILLIGAN Date Borrower: Date Borrower: Date Borrower: Date Borrower: Date Recording Requested By/Return To: U.S. BANK FULFILLMENT SERVICES 999 TECH ROW, #200 MADISON HEIGHTS, MICHIGAN 48071 [Space Above This Line For Recording Data] LOAN MODIFICATION AGREEMENT Property Address: 13288 N COUNTY RD 3280, PAULS VALLEY, OKLAHOMA 73075-0000 Loan Number USDA Case Number This modification adds $11,484.75 to the current principal balance of $82,622.03. The added amount represents capitalized interest, escrow advances, fees, expenses, and other amounts due under the terms of the original Mortgage, Deed of Trust, or Deed. The new principal balance of the loan, as modified, is $94,106.78. The original principal balance of the loan on which mortgage and recording taxes were previously paid was $87,745.00. This Loan Modification Agreement ("Agreement"), effective on 1ST DAY OF FEBRUARY, 2023, between RUSTY MILLIGAN ("Borrower"), and U.S. BANK NATIONAL ASSOCIATION ("Lender"), whose address is 4801 FREDERICA ST, OWENSBORO, KENTUCKY 42301 amends and supplements (1) the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), if any, dated AUGUST 27, 2009 and recorded in GARVIN COUNTY SEPTEMBER 17, 2009 BOOK 1892 PAGE 124 INSTRUMENT NO. I-2009-006293 and (2) the Note in the original principal sum of U.S $87,745.00, bearing the same date as, and secured by, the Security Instrument, which covers the real and personal property described in the Security Instrument and defined therein as the "Property", located at 13288 N COUNTY RD 3280, PAULS VALLEY, OKLAHOMA 73075-0000 (Property Address) the real property described being set forth as follows: LEGAL DESCRIPTION: THE LAND REFERRED TO IS SITUATED IN THE COUNTY OF GARVIN, CITY OF PAULS VALLEY AND STATE OF OKLAHOMA, DESCRIBED AS FOLLOWS: A TRACT IN THE NE/4 OF SECTION ... 23, TOWNSHIP 4 NORTH, RANGE 1 EAST, I.B.M., GARVIN COUNTY, OKLAHOMA, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST/CORNER OF THE NE/4 NE/4 OF SAID SECTION 23; THENCE S 00 DEGREES 38'32" E, ALONG THE EAST LINE OF SAID SECTION 23, A DISTANCE OF 58.52 FEET; THENCE N 88 DEGREES 10'21" W ALONG AN EXISTING FENCE, A DISTANCE OF 452.04 FEET; THENCE N 00 DEGREES 38'32" W A DISTANCE OF 216.85 FEET; THENCE N 89 DEGREES 21'28" W A DISTANCE OF 451.62 FEET TO THE EAST LINE OF SAID SECTION 23; THENCE S 00 DEGREES 38'32" E A DISTANCE OF 177.81 TO THE P.O.B. PARCEL ID: 0000-23-04N-01E-0-001-00 Tax Parcel No.: [REDACTED] In consideration of mutual promises and agreements exchanged, and other good and valuable consideration which the parties agree they have received, the Borrower and Lender agree to modify the terms of the Note and Security Instrument as follows (notwithstanding anything to the contrary contained in the Note or Security Instrument): 1. As of FEBRUARY 01, 2023, the amount payable under the Note and the Security Instrument (the "Unpaid Principal Balance") is U.S. $94,106.78, consisting of the unpaid amount(s) loaned to Borrower by Lender plus any interest and other amounts capitalized. The amount of Principal being reamortized is $82,622.03. The amount of Interest and costs being capitalized is $11,484.75. 2. Borrower promises to pay the Unpaid Principal Balance, plus interest, to the order of Lender. Interest will be charged on the Unpaid Principal Balance at the yearly rate of 4.2500%, from FEBRUARY 01, 2023. Borrower promises to make monthly payments of principal and interest of U.S. $462.95, beginning on the 1ST DAY OF MARCH, 2023, and continuing thereafter on the same day of each succeeding month until principal and interest are paid in full. The yearly rate of 4.2500% will remain in effect until principal and interest are paid in full. If on FEBRUARY 01, 2053, (the "Maturity Date"), Borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, Borrower will pay these amounts in full on the Maturity Date. The terms in this paragraph shall supersede any provisions to the contrary in the Loan Documents, including but not limited to, provisions for an adjustable, step or simple interest rate or for a graduated or growing-equity payment schedule. 3. If all or any part of the Property or any interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by the Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by the Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by the Security Instrument without further notice or demand on Borrower. 4. Borrower may make a full prepayment or partial prepayments without paying any prepayment charge. Lender will use the prepayments to reduce the amount of principal that Borrower owes under the Note. However, Lender may apply the Prepayment to the accrued and unpaid interest on the prepayment amount before applying the prepayment to reduce the principal amount of the Note. If Borrower makes a partial prepayment, there will be no changes in the due dates or the amount of the monthly payments unless Lender agrees in writing to those changes. 5. Borrower also will comply with all other covenants, agreements, and requirements of the Security Instrument, including without limitation, Borrower's covenants and agreements to make all payments of taxes, insurance premiums, assessments, escrow items, impounds, and all other payments that Borrower is obligated to make under the Security Instrument; however, the following terms and provisions are forever canceled, null and void, as of the Agreement Date set forth above: (a) all terms and provisions of the Note and Security Instrument (if any) providing for, implementing, or relating to, any change or adjustment in the rate of interest payable under the Note; and (b) all terms and provisions of any adjustable rate rider, or other instrument or document that is affixed to, wholly or partially incorporated into, or is part of, the Note or Security Instrument and that contains any such terms and provisions as those referred to in (a) above. 6. Borrower understands and agrees that: (a) All the rights and remedies, stipulations, and conditions contained in the Security Instrument relating to default in the making of payments under the Security Instrument shall also apply to default in the making of the modified payments hereunder. (b) All covenants, agreements, stipulations, and conditions in the Note and Security Instrument shall be and remain in full force and effect, except as herein modified, and none of the Borrower's obligations or liabilities under the Note and Security Instrument shall be diminished or released by any provisions hereof, nor shall this Agreement in any way impair, diminish, or affect any of Lender's rights under or remedies on the Note and Security Instrument, whether such rights or remedies arise thereunder or by operation of law. Also, all rights of recourse to which Lender is presently entitled against any property or any other persons in any way obligated for, or liable on, the Note and Security Instrument are expressly reserved by Lender. (c) Nothing in this Agreement shall be understood or construed to be a satisfaction or release in whole or in part of the Note and Security Instrument. (d) If permitted by applicable law, all costs and expenses incurred by Lender in connection with this Agreement, including attorney's fees and costs, shall be paid by the Borrower and shall be secured by the Security Instrument, unless stipulated otherwise by Lender. (e) Borrower agrees to make and execute such other documents or papers as may be necessary or required to effectuate the terms and conditions of this Agreement which, if approved and accepted by Lender, shall bind and inure to the heirs, executors, administrators, and assigns of the Borrower. (f) Borrower authorizes Lender, and Lender's successors and assigns, to share Borrower's information including, but not limited to (i) name, address, and telephone number, (ii) Social Security Number, (iii) credit score, (iv) income, (v) payment history, (vi) account balances and activity, including information about any modification or foreclosure relief programs, with Third Parties that can assist Lender and Borrower in obtaining a foreclosure prevention alternative, or otherwise provide support services related to Borrower's loan. For purposes of this section, Third Parties include a counseling agency, state or local Housing Finance Agency or similar entity, any insurer, guarantor, or servicer that insures, guarantees, or services Borrower's loan or any other mortgage loan secured by the Property on which Borrower is obligated, or to any companies that perform support services to them in connection with Borrower's loan. Borrower consents to being contacted by Lender or Third Parties concerning mortgage assistance relating to Borrower's loan including the trial period plan to modify Borrower's loan, at any telephone number, including mobile telephone number, or email address Borrower has provided to Lender or Third Parties. (g) In any foreclosure action dismissed as a result of entering into this Agreement, Borrower will remain liable for and bear his or her own attorney fees and costs incurred in connection with such action, if permitted by applicable law. (h) The mortgage insurance premiums on Borrower's Loan may increase and the date on which Borrower may request cancellation of mortgage insurance may change as a result of the loan modification. (i) Any Borrower who co-signed the Security Instrument but did not execute the Note (a "Co-signer") and has not assumed the debt: (a) is co-signing this Agreement only to acknowledge the Agreement; (b) is not personally obligated to pay the sums secured by the Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of the Security Instrument or the Note without the Co-signer's consent. 7. Notwithstanding anything to the contrary contained in this Agreement, Borrower and Lender acknowledge the effect of a discharge in bankruptcy that has been granted to Borrower prior to the execution of this Agreement and that Lender may not pursue Borrower for personal liability. However, Borrower acknowledges that Lender retains certain rights, including but not limited to the right to foreclose its lien evidenced by the Security Instrument under appropriate circumstances. The parties agree that the consideration for this Agreement is Lender's forbearance from presently exercising its rights and pursuing its remedies under the Security Instrument as a result of Borrower's default thereunder. Nothing in this Agreement shall be construed to be an attempt to collect against Borrower personally or an attempt to revive personal liability. 8. By this paragraph, Lender is notifying Borrower that any prior waiver by Lender of Borrower's obligation to pay to Lender Funds for any or all Escrow Items is hereby revoked, and Borrower has been advised of the amount needed to fully fund the Escrow Items. Whereof, Lender and Borrower have executed this Modification Agreement as of the dates indicated below. (SIGNATURES CONTINUE ON FOLLOWING PAGES) In Witness Whereof, the Borrower(s) have executed this agreement. Borrower: RUSTY MILLIGAN Date: 1/25/2023 State of OKLAHOMA, County of Garvin Enter County Here Before me, in and for this state, on this 25th day of January, 2023, personally appeared RUSTY MILLIGAN to me known to be the identical person(s) who executed the within and foregoing instrument, and acknowledged to me that he/she/they executed the same as his/her/their free and voluntary act and deed for the uses and purposes therein set forth. C.Jeneice Tate Notary Public My Commission expires: 11/24/26 [ ] This notarization involved the use of communication technology. In Witness Whereof, the Lender has executed this Agreement. Lender U.S. BANK NATIONAL ASSOCIATION By: ____________________________ Printed Name: Whitney Adara Wheatley Title: Mortgage Document Officer Date: FEB 09 2023 State of KENTUCKY County of DAVIESS The foregoing instrument was acknowledged before me this ___9___ day of ____________ 2023, by Whitney Adara Wheatley Mortgage Document Officer of U.S. BANK NATIONAL ASSOCIATION a Delaware National Association, on behalf of the National Association. (Seal, if any) OFFICIAL SEAL KASEY ANN REINER NOTARY PUBLIC - KENTUCKY STATE REL AALGE My Commissions Expires 02/28/2026 Registration # KYNR54942 (Signature of person taking acknowledgment) Kasey Ann Rende Notary Title or Rank JUNA45942 (Serial number, if any) My Commission expires: 2/28/2026 I hereby certify that I received $40 and issued receipt No. 618 therefore in payment of mortgage tax on the within mortgage. Dated 23rd day of April 2005 Cyndi Nunez, Garvin County Treasurer By William Lee Deputy Recording Requested By/Return To: U.S. BANK FULFILLMENT SERVICES 999 TECH ROW, #200 MADISON HEIGHTS, MICHIGAN 48071 LOAN MODIFICATION AGREEMENT Property Address: 13288 N COUNTY RD 3280, PAULS VALLEY, OKLAHOMA 73075-0000 Loan Number USDA Case Number This modification adds $20,370.83 to the current principal balance of $92,896.34. The added amount represents capitalized interest, escrow advances, fees, expenses, and other amounts due under the terms of the original Mortgage; Deed of Trust, or Deed. The new principal balance of the loan, as modified, is $113,267.17. The original principal balance of the loan on which mortgage and recording taxes were previously paid was $87,745.00. This Loan Modification Agreement ("Agreement"), effective on 1ST DAY OF APRIL, 2005, between RUSTY MILLIGAN ("Borrower"), and U.S. BANK NATIONAL ASSOCIATION ("Lender"), whose address is 2800 TAMARACK ROAD, OWENSOBORO, KENTUCKY 42301 amends and supplements (1) the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), if any, dated AUGUST 27, 2009 and recorded in GARVIN COUNTY SEPTEMBER 17, 2009 BOOK 1892 PAGE 124 INSTRUMENT NO. I-2009-006293 and (2) the Note in the original principal sum of U.S $87,745.00, bearing the same date as, and secured by, the Security Instrument, which covers the real and personal property described in the Security Instrument and defined therein as the "Property", located at 13288 N COUNTY RD 3280, PAULS VALLEY, OKLAHOMA 73075-0000 (Property Address) the real property described being set forth as follows: LEGAL DESCRIPTION: A TRACT IN THE NE/4 OF SECTION 23, TOWNSHIP 4 NORTH, RANGE 1 EAST, I.B.M., GARVIN COUNTY, OKLAHOMA, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST/CORNER OF THE NE/4 NE/4 OF SAID SECTION 23; THENE S 00 DEGREES 38 MINUTES 32 SECONDS E, ALONG THE EAST LINE OF SAID SECTION 23, A DISTANCE OF 58.52 FEET; THENCE N 88 DEGREES 10 MINUTES 21 SECONDS W ALONG AN EXISTING FENCE, A DISTANCE OF 452.04 FEET; THENCE N 00 DEGREES 38 MINUTES 32 SECONDS W A DISTANCE OF 216.85 FEET; THENCE N 89 DEGREES 21 MINUTES 28 SECONDS W A DISTANCE OF 451.62 FEET TO THE EAST LINE OF SAID SECTION 23; THENCE S 00 DEGREES 38 MINUTES 32 SECONDS E A DISTANCE OF 177.81 FEET TO THE P.O.B. PARCEL ID: 0000-23-04N-01E-0-001-00 Tax Parcel No.: 0000-23-04N-01E-0-001-00 In consideration of mutual promises and agreements exchanged, and other good and valuable consideration which the parties agree they have received, the Borrower and Lender agree to modify the terms of the Note and Security Instrument as follows (notwithstanding anything to the contrary contained in the Note or Security Instrument): 1. As of APRIL 01, 2025, the amount payable under the Note and the Security Instrument (the "Unpaid Principal Balance") is U.S. $113,267.17, consisting of the unpaid amount(s) loaned to Borrower by Lender plus any interest and other amounts capitalized. 2. Borrower promises to pay the Unpaid Principal Balance, plus interest, to the order of Lender. Interest will be charged on the Unpaid Principal Balance at the yearly rate of 4.2500%, from APRIL 01, 2025. Borrower promises to make monthly payments of principal and interest of U.S. $557.21, beginning on the 1ST DAY OF MAY, 2025, and continuing thereafter on the same day of each succeeding month until principal and interest are paid in full. The yearly rate of 4.2500% will remain in effect until principal and interest are paid in full. If on APRIL 01, 2055, (the "Maturity Date"), Borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, Borrower will pay these amounts in full on the Maturity Date. The terms in this paragraph shall supersede any provisions to the contrary in the Loan Documents, including but not limited to, provisions for an adjustable, step or simple interest rate or for a graduated or growing-equity payment schedule. 3. If all or any part of the Property or any interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by the Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by the Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by the Security Instrument without further notice or demand on Borrower. 4. Borrower may make a full prepayment or partial prepayments without paying any prepayment charge. Lender will use the prepayments to reduce the amount of principal that Borrower owes under the Note. However, Lender may apply the Prepayment to the accrued and unpaid interest on the prepayment amount before applying the prepayment to reduce the principal amount of the Note. If Borrower makes a partial prepayment, there will be no changes in the due dates or the amount of the monthly payments unless Lender agrees in writing to those changes. 5. Borrower also will comply with all other covenants, agreements, and requirements of the Security Instrument, including without limitation, Borrower's covenants and agreements to make all payments of taxes, insurance premiums, assessments, escrow items, impounds, and all other payments that Borrower is obligated to make under the Security Instrument; however, the following terms and provisions are forever canceled, null and void, as of the Agreement Date set forth above: (a) all terms and provisions of the Note and Security Instrument (if any) providing for, implementing, or relating to, any change or adjustment in the rate of interest payable under the Note; and (b) all terms and provisions of any adjustable rate rider, or other instrument or document that is affixed to, wholly or partially incorporated into, or is part of, the Note or Security Instrument and that contains any such terms and provisions as those referred to in (a) above. 6. Borrower understands and agrees that: (a) All the rights and remedies, stipulations, and conditions contained in the Security Instrument relating to default in the making of payments under the Security Instrument shall also apply to default in the making of the modified payments hereunder. (b) All covenants, agreements, stipulations, and conditions in the Note and Security Instrument shall be and remain in full force and effect, except as herein modified, and none of the Borrower's obligations or liabilities under the Note and Security Instrument shall be diminished or released by any provisions hereof, nor shall this Agreement in any way impair, diminish, or affect any of Lender's rights under or remedies on the Note and Security Instrument, whether such rights or remedies arise thereunder or by operation of law. Also, all rights of recourse to which Lender is presently entitled against any property or any other persons in any way obligated for, or liable on, the Note and Security Instrument are expressly reserved by Lender. (c) Nothing in this Agreement shall be understood or construed to be a satisfaction or release in whole or in part of the Note and Security Instrument. (d) If permitted by applicable law, all costs and expenses incurred by Lender in connection with this Agreement, including attorney's fees and costs, shall be paid by the Borrower and shall be secured by the Security Instrument; unless stipulated otherwise by Lender. (e) Borrower agrees to make and execute such other documents or papers as may be necessary or required to effectuate the terms and conditions of this Agreement which, if approved and accepted by Lender, shall bind and inure to the heirs, executors, administrators, and assigns of the Borrower. (f) Borrower authorizes Lender, and Lender's successors and assigns, to share Borrower's information including, but not limited to (i) name, address, and telephone number, (ii) Social Security Number, (iii) credit score, (iv) income, (v) payment history, (vi) account balances and activity, including information about any modification or foreclosure relief programs, with Third Parties that can assist Lender and Borrower in obtaining a foreclosure prevention alternative, or otherwise provide support services related to Borrower's loan. For purposes of this section, Third Parties include a counseling agency, state or local Housing Finance Agency or similar entity, any insurer, guarantor, or servicer that insures, guarantees, or services Borrower's loan or any other mortgage loan secured by the Property on which Borrower is obligated, or to any companies that perform support services to them in connection with Borrower's loan. Borrower consents to being contacted by Lender or Third Parties concerning mortgage assistance relating to Borrower's loan including the trial period plan to modify Borrower's loan, at any telephone number, including mobile telephone number, or email address Borrower has provided to Lender or Third Parties. (g) In any foreclosure action dismissed as a result of entering into this Agreement, Borrower will remain liable for and bear his or her own attorney fees and costs incurred in connection with such action, if permitted by applicable law. (h) The mortgage insurance premiums on Borrower's Loan may increase and the date on which Borrower may request cancellation of mortgage insurance may change as a result of the loan modification. (i) Any Borrower who co-signed the Security Instrument but did not execute the Note (a "Co-signer") and has not assumed the debt: (a) is co-signing this Agreement only to acknowledge the Agreement; (b) is not personally obligated to pay the sums secured by the Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of the Security Instrument or the Note without the Co-signer's consent. 7. Notwithstanding anything to the contrary contained in this Agreement, Borrower and Lender acknowledge the effect of a discharge in bankruptcy that has been granted to Borrower prior to the execution of this Agreement and that Lender may not pursue Borrower for personal liability. However, Borrower acknowledges that Lender retains certain rights, including but not limited to the right to foreclose its lien evidenced by the Security Instrument under appropriate circumstances. The parties agree that the consideration for this Agreement is Lender's forbearance from presently exercising its rights and pursuing its remedies under the Security Instrument as a result of Borrower's default thereunder. Nothing in this Agreement shall be construed to be an attempt to collect against Borrower personally or an attempt to revive personal liability. 8. By this paragraph, Lender is notifying Borrower that any prior waiver by Lender of Borrower's obligation to pay to Lender Funds for any or all Escrow Items is hereby revoked, and Borrower has been advised of the amount needed to fully fund the Escrow Items. Whereof, Lender and Borrower have executed this Modification Agreement as of the dates indicated below. (SIGNATURES CONTINUE ON FOLLOWING PAGES) I-2025-002385 Book 2512 Pg 330 04/23/2025 12:52pm Pg 0325-0332 Fee: $32.00 Doc: $0.00 Lori Fulks - Garvin County Clerk State of OK Loan Number In Witness Whereof, the Borrower(s) have executed this agreement. [Signature] Borrower - RUSTY MILLIGAN Date: 4/10/25 State of OKLAHOMA, County of Garvin ) Enter County Here Before me, In and for this state, on this 10th day of April 2025 personally appeared RUSTY MILLIGAN to me known to be the identical person(s) who executed the within and foregoing instrument, and acknowledged to me that he/she/they executed the same as his/her/thei free and voluntary act and deed for the uses and purposes therein set forth. (SEAL) My Commission expires: 11-5-26 This remote online notarization involved the use of communication technology. In Witness Whereof, the Lender has accepted and executed this Agreement. Lender U.S. BANK NATIONAL ASSOCIATION By: ________________________________ Printed Name: Harrison Mitchell Title: Mortgage Document Officer APR 16 2025 Date: ________________________________ State of KENTUCKY County of DAVIESS The foregoing instrument was acknowledged before me this ___16____ day of April 11, 2025, by ____U.S. BANK NATIONAL ASSOCIATION a Delaware National Association, on behalf of the National Association. (Signature of person taking acknowledgment) Notary KYNP94867 My Commission expires: 12·3·2028