Okla. Stat. tit. 42, § 42-147.1

Oklahoma Statutes - Title 42. Liens Page 52

Any property owner or other interested party, including but not

limited to mortgagees, contractors, subcontractors and others

against whom a lien claim is filed under the provisions of the law

relating to mechanics' and materialmen's liens, may at any time

discharge the lien by depositing with the county clerk in whose

office the lien claim has been filed either: An amount of money

equal to one hundred twenty-five percent (125%) of the lien claim

amount; or a corporate surety bond with a penal amount equal to one

hundred twenty-five percent (125%) of the lien claim amount. Within

three (3) business days after the deposit of money or bond is made,

the county clerk shall serve upon the lien claimant, at the address

shown on the lien claim, written notice setting forth: The number

of the lien claim; the name of the lien claimant; the name of the

property owner; the name of the alleged debtor, if someone other

than the property owner; the property description shown on the lien

claim; and the amount of cash deposited or, if a bond is filed, the

names of the principal and surety and the bond penalty. The party

seeking to discharge the lien shall prepare and deliver the notice

to the county clerk and pay a fee in accordance with Section 32 of

Title 28 of the Oklahoma Statutes. An abbreviated notice may be

used if the same refers to and encloses a copy of the lien claim and

either a copy of the cash receipt issued by the county clerk or a

copy of the bond with the clerk's filing stamp thereon. The notice

shall be mailed by registered or certified mail at the option of the

county clerk.

If cash is deposited, the county clerk shall immediately show

the lien released of record. If a bond is deposited, the lien

claimant shall have ten (10) days after the notice is mailed within

which to file a written objection with the county clerk. If a

written objection is not timely filed the county clerk shall

immediately show the lien released of record. If an objection is

timely made, the county clerk shall set a hearing within ten (10)

days thereafter and notify by ordinary mail both the lien claimant

and the party making the deposit of the date and time thereof. The

only grounds for objection shall be that: The surety is not

authorized to transact business in this state; the bond is not

properly signed; the penal amount is less than one hundred twenty-

five percent (125%) of the claim; the power of attorney of the

surety's attorney-in-fact does not authorize the execution; there is

no power of attorney attached if the bond is executed by anyone

other than the surety's president and attested by its secretary; or

a cease and desist order has been issued against the surety either

by the Insurance Commissioner or a court of competent jurisdiction.

Within two (2) business days following the hearing the county clerk

shall either sustain or overrule the objections and notify the

parties of the county clerk's ruling by ordinary mail. If the

objections are sustained, the ruling of the county clerk shall be

Oklahoma Statutes - Title 42. Liens Page 53

conclusive for lien release purposes unless appealed within ten (10)

days to the district court. If the objections are overruled, the

county clerk shall immediately show the lien released of record.

The bond shall: Name the lien claimant as obligee and the party

seeking the release as principal; be executed by both the principal

and the surety; have a proper power of attorney attached if executed

by an attorney-in-fact; be executed by a corporate surety authorized

to transact business in this state; and be conditioned that the

principal and surety will pay the full amount of the claim as

established in any appropriate court proceeding, plus any court

costs and attorney fees awarded the lien claimant, but in no event

shall the liability of the principal or surety under the bond exceed
by an attorney-in-fact; be executed by a corporate surety authorized

to transact business in this state; and be conditioned that the

principal and surety will pay the full amount of the claim as

established in any appropriate court proceeding, plus any court

costs and attorney fees awarded the lien claimant, but in no event

shall the liability of the principal or surety under the bond exceed

the bond penalty. The preceding clause shall not limit the common

law liability of the party who created the indebtedness upon which

the lien claim is based. The conditions of any bond filed pursuant

to this section shall be deemed to comply with the requirements

hereof, regardless of the language or limitations set forth therein,

if both the principal and surety intend that the bond be filed to

secure a lien release under this section.

The cash deposit or bond, as the case may be, shall stand in

lieu of the released lien, and the lien claimant must proceed

against the substituted security in the same time and manner as is

required for foreclosure of a lien claim. The cash deposit or bond

shall stand liable for such principal, interest, court costs and

attorney fees to the extent they could be awarded in a lien

foreclosure proceeding.

The only proper parties to an action against the substituted

security are: The party making the cash deposit; the bond principal

and surety; the party primarily liable for the indebtedness giving

rise to the lien claim; and anyone else who may be liable to the

lien claimant for the same indebtedness. The party making the cash

deposit and the bond principal and surety are necessary parties to

an action against the substituted security, and by making a deposit

or filing a bond the parties subject themselves to personal

jurisdiction in the court where the action is properly filed and may

be served with process as in other cases.

If the lien claimant fails to timely file a foreclosure action,

upon application of the party making the deposit or filing the bond

and the payment of a fee of Ten Dollars ($10.00), the county clerk

shall return the cash to the party making the deposit or

appropriately note on the bond that the same has been released. The

clerk shall not incur liability to any lien claimant for an

inadvertent release of cash or bond. At the end of five (5) years

and after the county clerk has attempted written notification to the

lien claimant at the address shown on the lien claim, if no

foreclosure has been commenced by the lien claimant or such money

has not been withdrawn upon application of the depositing party, the

Oklahoma Statutes - Title 42. Liens Page 54

cash deposit plus all accrued interest shall be forfeited to the

county general fund.

Nothing contained in this section shall preclude the lien

claimant and other interested parties from entering into agreements

for the substitution of a different form of security in lieu of the

lien claim.

The county clerk shall invest the deposited cash in the manner

provided for county treasurers in Section 348.1 of Title 62 of the

Oklahoma Statutes. Any interest earned thereon shall become a part

of the deposit and be either returned to the party making the

deposit, if no action is filed, or paid in accordance with any final

judgment rendered by the court in the action against the substituted

security. If a district court judgment adverse to the depositing

party is entered, in setting the amount of supersedeas bond the

court shall take into consideration the existing cash deposit or

bond.