Okla. Stat. tit. 12A, § 12A-2A-309

Fixtures.

LESSOR'S AND LESSEE'S RIGHTS WHEN GOODS BECOME FIXTURES

(1) In this section:

(a) goods are "fixtures" when they become so related to

particular real estate that an interest in them arises

under real estate law;

(b) a "fixture filing" is the filing, in the office where

a mortgage on the real estate would be filed or

recorded, of a financing statement covering goods that

are or are to become fixtures and conforming to the

requirements of subsections (a) and (b) of Section 1-

9-502 of this title, as applicable;

(c) a lease is a "purchase money lease" unless the lessee

has possession or use of the goods or the right to

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possession or use of the goods before the lease

agreement is enforceable;

(d) a mortgage is a "construction mortgage" to the extent

it secures an obligation incurred for the construction

of an improvement on land including the acquisition

cost of the land, if the recorded writing so

indicates; and

(e) "encumbrance" includes real estate mortgages and other

liens on real estate and all other rights in real

estate that are not ownership interests.

(2) Under this article a lease may be of goods that are

fixtures or may continue in goods that become fixtures, but no lease

exists under this article of ordinary building materials

incorporated into an improvement on land.

(3) This article does not prevent creation of a lease of

fixtures pursuant to real estate law.

(4) The perfected interest of a lessor of fixtures has priority

over a conflicting interest of an encumbrancer or owner of the real

estate if:

(a) the lease is a purchase money lease, the conflicting

interest of the encumbrancer or owner arises before

the goods become fixtures, the interest of the lessor

is perfected by a fixture filing before the goods

become fixtures or within ten (10) days thereafter,

and the lessee has an interest of record in the real

estate or is in possession of the real estate; or

(b) the interest of the lessor is perfected by a fixture

filing before the interest of the encumbrancer or

owner is of record, the lessor's interest has priority

over any conflicting interest of a predecessor in

title of the encumbrancer or owner, and the lessee has

an interest of record in the real estate or is in

possession of the real estate.

(5) The interest of a lessor of fixtures, whether or not

perfected, has priority over the conflicting interest of an

encumbrancer or owner of the real estate if:

(a) the fixtures are readily removable factory or office

machines, readily removable equipment that is not

primarily used or leased for use in the operation of

the real estate, or readily removable replacements of

domestic appliances that are goods subject to a

consumer lease, and before the goods become fixtures

the lease contract is enforceable; or

(b) the conflicting interest is a lien on the real estate

obtained by legal or equitable proceedings after the

lease contract is enforceable; or

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(c) the encumbrancer or owner has consented in writing to

the lease or has disclaimed an interest in the goods

as fixtures; or
ds become fixtures

the lease contract is enforceable; or

(b) the conflicting interest is a lien on the real estate

obtained by legal or equitable proceedings after the

lease contract is enforceable; or

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(c) the encumbrancer or owner has consented in writing to

the lease or has disclaimed an interest in the goods

as fixtures; or

(d) the lessee has a right to remove the goods as against

the encumbrancer or owner. If the lessee's right to

remove terminates, the priority of the interest of the

lessor continues for a reasonable time.

(6) Notwithstanding paragraph (a) of subsection (4) of this

section but otherwise subject to subsections (4) and (5) of this

section, the interest of a lessor of fixtures, including the

lessor's residual interest, is subordinate to the conflicting

interest of an encumbrancer of the real estate under a construction

mortgage recorded before the goods become fixtures if the goods

become fixtures before the completion of the construction. To the

extent given to refinance a construction mortgage, the conflicting

interest of an encumbrancer of the real estate under a mortgage has

this priority to the same extent as the encumbrancer of the real

estate under the construction mortgage.

(7) In cases other than those described in subsections (1)

through (6) of this section, priority between the interest of a

lessor of fixtures, including the lessor's residual interest, and

the conflicting interest of an encumbrancer or owner of the real

estate who is not the lessee is determined by the priority rules

governing conflicting interests in real estate.

(8) If the interest of a lessor of fixtures, including the

lessor's residual interest, has priority over all conflicting

interests of all owners and encumbrancers of the real estate, the

lessor or the lessee may (i) on default, expiration, termination, or

cancellation of the lease agreement but subject to the lease

agreement and this article, or (ii) if necessary to enforce other

rights and remedies of the lessor or lessee under this article,

remove the goods from the real estate, free and clear of all

conflicting interests of all owners and encumbrancers of the real

estate, but the lessor or lessee must reimburse any encumbrancer or

owner of the real estate who is not the lessee and who has not

otherwise agreed for the cost of repair of any physical injury, but

not for any diminution in value of the real estate caused by the

absence of the goods removed or by any necessity of replacing them.

A person entitled to reimbursement may refuse permission to remove

until the party seeking removal gives adequate security for the

performance of this obligation.

(9) Even though the lease agreement does not create a security

interest, the interest of a lessor of fixtures, including the

lessor's residual interest, is perfected by filing a financing

statement as a fixture filing for leased goods that are or are to

become fixtures in accordance with the relevant provisions of the

Uniform Commercial Code - Secured Transactions.

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