Okla. Stat. tit. 18, § 18-1020

LIMITATIONS UPON REAL ESTATE OWNERSHIP

A. No corporation of any sort, whether coming within the

general scope of the Oklahoma General Corporation Act or not, except

as provided for in this section, shall own, hold, or take any real

estate located in this state outside of any incorporated city or

town, or any addition thereto.

B. The provisions of the Oklahoma General Corporation Act shall

not be construed to prohibit the owning, holding or taking of: 1.

Such real estate as is necessary and proper for carrying on the

business for which any corporation has been lawfully formed or

domesticated in this state;

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2. Naked title to real estate by any trust company, as trustee,

to be held solely as security for indebtedness pursuant to such

trust or as trustee of an express or testamentary trust for the

benefit of natural persons;

3. Any real estate mortgage held by any corporation to secure

any loan or debt; 4. Any real estate acquired by any corporation

upon the foreclosure of any real estate mortgage held by such

corporation or acquired in the collection of any loan or debt due

such corporation, except as provided for in subsection C of this

section; or

5. Any real estate acquired by any corporation for lease or

sale to any other corporation, if such latter corporation could have

legally acquired the same in the first instance.

C. Any real estate located in this state outside of any

incorporated city or town, or any addition thereto, acquired by any

corporation by mortgage foreclosure or in collection of debt as

provided for in paragraph 4 of subsection B of this section, shall

be sold and disposed of within seven (7) years from such

acquisition.

D. The provisions of subsections A through C of this section

shall not apply to religious, educational, charitable or scientific

corporations, owning or holding taxable property.

E. 1. Any person who takes or holds any real estate for the

use or benefit of any corporation with the intent of evading the

provisions of this section, shall, upon conviction, be deemed guilty

of a misdemeanor and punished by a fine of not less than Fifty

Dollars ($50.00) nor more than Five Hundred Dollars ($500.00) or by

imprisonment in the county jail for a term not less than thirty (30)

days nor more than six (6) months, or by both such fine and

imprisonment.

2. Any corporation that fails or refuses to file a statement as

required by the provisions of subsection F of this section shall,

upon conviction, be deemed guilty of a misdemeanor and punished by a

fine not exceeding One Thousand Dollars ($1,000.00).

F. 1. On or before the first day of April of each year, every

corporation holding any real estate in contravention of the

provisions of this section shall file in the office of the county

clerk of each county where such real estate is located, a statement

in duplicate containing the legal description of each tract, piece,

or parcel of real estate so owned or acquired, the date of the

acquisition of each tract, piece, or parcel, the amount of the last

preceding assessed valuation thereof and the purpose and method of

the acquisition thereof. The statement shall be verified by the

oath of an officer or duly appointed agent of the corporation.

2. The county clerk shall keep a permanent index and record of

each statement filed by corporations pursuant to the provisions of

this subsection in a permanent record book, which shall be in the

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form prescribed by the State Auditor and Inspector. One copy of

each statement so filed shall be retained as a part of the permanent

records of the office of the county clerk.

3. Within thirty (30) days after the statement provided for in

paragraph 1 of this subsection is filed, the county clerk shall

deliver the other duplicate to the district attorney of such county.
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form prescribed by the State Auditor and Inspector. One copy of

each statement so filed shall be retained as a part of the permanent

records of the office of the county clerk.

3. Within thirty (30) days after the statement provided for in

paragraph 1 of this subsection is filed, the county clerk shall

deliver the other duplicate to the district attorney of such county.

G. 1. Any corporation owning or holding any real estate in

violation of the provisions of subsections A through E of this

section, in addition to other penalties provided for in the Oklahoma

General Corporation Act, shall be required to pay, for each year, or

fraction thereof, during which such title or interest is thus

unlawfully owned or held, the following penalties:

a. For the first year, one percent (1%) of the assessed

value of such real estate unlawfully owned or held;

b. For the second year, two percent (2%) thereof;

c. For the third year, three percent (3%) thereof;

d. For the fourth year, four percent (4%) thereof;

e. For the fifth year, five percent (5%) thereof;

f. For the sixth year, six percent (6%) thereof; and

g. For each year thereafter, six percent (6%) thereof.

2. Provided, however, that no corporation shall be subject to

more than one penalty, for each calendar year, for each tract, piece

or parcel of real estate thus held in violation of the provisions of

this section, but the penalties provided for in paragraph 1 of this

subsection shall be cumulative.

3. In determining the penalty under this subsection, the

assessed value of the real estate fixed for the purpose of levying

ad valorem taxes, which last shall have become due and payable

preceding the date of the accrual of such penalty, shall be taken.

4. The penalties, upon collection, shall be immediately paid

over to the Commissioners of the Land Office for credit to the

permanent school fund of this state created pursuant to Section 2 of

Article XI of the Oklahoma Constitution.

5. The state shall have a lien against any piece, parcel or

tract of real estate to secure the payment of all penalties,

interest, and fees accruing from such unlawful owning or holding of

any such real estate; provided, that such lien shall not attach

thereto, or in any way affect the title thereof, until an action to

subject such real estate to such lien and a foreclosure thereof has

been instituted in the district court of the county where such real

estate is located. Filing of such action shall be notice lis

pendens and anyone thereafter acquiring any such real estate shall

take it subject to such lien.

H. 1. Whenever the district attorney of any county has reason

to believe that any real estate located in such county is owned or

held by a corporation in violation of the provisions of this

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section, the district attorney shall give written notice to such

corporation that:

a. it is subject to the penalties provided for in this

section;

b. such penalties must be paid to the district attorney

within thirty (30) days from the date of such notice;

and

c. there is additionally due and payable to the district

attorney a collection fee equal to fifteen percent

(15%) of the total penalties collected as to any

tract, piece or parcel of real estate which is

unlawfully owned or held. If the institution of an

action is necessary to procure a judgment for the

collection of such penalties, the collection fee shall

be increased to twenty-five percent (25%) of the

penalty recovered, and in no event less than One

Hundred Dollars ($100.00). Such fee shall be retained

by the district attorney as remuneration for services

rendered in collecting such penalties, which shall be

in addition to any compensation otherwise provided for

by law.

2. In the event such penalty shall not be paid within thirty
ee shall

be increased to twenty-five percent (25%) of the

penalty recovered, and in no event less than One

Hundred Dollars ($100.00). Such fee shall be retained

by the district attorney as remuneration for services

rendered in collecting such penalties, which shall be

in addition to any compensation otherwise provided for

by law.

2. In the event such penalty shall not be paid within thirty

(30) days from the date of such notice, the district attorney shall

institute an action in the name of the state in the district court

of the county where such real estate is located for the recovery of

the penalties, together with interest thereon at the rate of ten

percent (10%) per annum from the date of such notice, the collection

fee provided for in paragraph 1 of this subsection, all costs of the

action, and for a further judgment establishing and foreclosing any

lien created pursuant to the provisions of paragraph 5 of subsection

G of this section, unless the real estate which is alleged to have

been unlawfully owned or held, is disposed of prior to the

commencement of the action.

a. The petition in such case shall set forth:

(1) a description of the real estate which is alleged

to have been unlawfully owned or held;

(2) the names, as defendants, of the corporation and

all persons alleged to be unlawfully holding the

real estate;

(3) if the establishment and foreclosure of a lien

upon such real estate is sought in the action,

the names as defendants, of all persons claiming

real estate, including all tenants and persons in

actual possession thereof; and

(4) the facts and circumstances in consequence of

which it is alleged that such real estate is

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owned or held in violation of the provisions of

this section.

b. The filing of such petition, and all other procedures

relating thereto, in all respects shall be governed by

and subject to the same laws as in other civil

actions.

c. If the state recovers a judgment against such

corporation in such action, the judgment shall include

and be entered for:

(1) the amount of the penalties for which the

corporation is found liable pursuant to the

provisions of this section;

(2) interest on such penalties at the rate of ten

percent (10%) per annum from the date such

penalties become due and receivable pursuant to

the written notice provided for in paragraph 1 of

this subsection;

(3) a collection fee of twenty-five percent (25%) of

such penalties recovered, which fee shall not be

less than One Hundred Dollars ($100.00);

(4) the entire costs of the action; and

(5) if the establishment and foreclosure of a lien

upon the real estate is prayed for in the

petition, a decree establishing such lien upon

such real estate and an order of foreclosure.

d. Upon the judgment becoming final, an execution shall

issue for the collection thereof.