Okla. Stat. tit. 12A, § 12A-1-9-207

or control of collateral.

RIGHTS AND DUTIES OF SECURED PARTY

HAVING POSSESSION OR CONTROL OF COLLATERAL

(a) Except as otherwise provided in subsection (d) of this

section, a secured party shall use reasonable care in the custody

and preservation of collateral in the secured party's possession.

In the case of chattel paper or an instrument, reasonable care

includes taking necessary steps to preserve rights against prior

parties unless otherwise agreed.

(b) Except as otherwise provided in subsection (d) of this

section, if a secured party has possession of collateral:

(1) reasonable expenses, including the cost of insurance and

payment of taxes or other charges, incurred in the custody,

preservation, use, or operation of the collateral are chargeable to

the debtor and are secured by the collateral;

(2) the risk of accidental loss or damage is on the debtor to

the extent of a deficiency in any effective insurance coverage;

(3) the secured party shall keep the collateral identifiable,

but fungible collateral may be commingled; and

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 47

(4) the secured party may use or operate the collateral:

(A) for the purpose of preserving the collateral or its

value;

(B) as permitted by an order of a court having competent

jurisdiction; or

(C) except in the case of consumer goods, in the manner

and to the extent agreed by the debtor.

(c) Except as otherwise provided in subsection (d) of this

section, a secured party having possession of collateral or control

of collateral under Section 7-106, 1-9-104, 1-9-105, 1-9-106, 1-9-

107, or 1-9-107A of this title:

(1) may hold as additional security any proceeds, except money

or funds, received from the collateral;

(2) shall apply money or funds received from the collateral to

reduce the secured obligation, unless remitted to the debtor; and

(3) may create a security interest in the collateral.

(d) If the secured party is a buyer of accounts, chattel paper,

payment intangibles, or promissory notes or a consignor:

(1) subsection (a) of this section does not apply unless the

secured party is entitled under an agreement:

(A) to charge back uncollected collateral; or

(B) otherwise to full or limited recourse against the

debtor or a secondary obligor based on the nonpayment

or other default of an account debtor or other obligor

on the collateral; and

(2) subsections (b) and (c) of this section do not apply.