Okla. Stat. tit. 47, § 47-1110v1

indexing - Effectiveness, duration, assignment or termination -

Priority in manufactured home.

A. 1. Except for a security interest in vehicles held by a

dealer for sale or lease, a vehicle registered by a federally

recognized Indian tribe as provided in subsection G of this section,

Oklahoma Statutes - Title 47. Motor Vehicles Page 1120

and a vehicle being registered in this state which was previously

registered in another state and which title contains the name of a

secured party on the face of the other state certificate or title,

and except as otherwise provided in subsection B of Section 1105 of

this title, a security interest in a vehicle as to which a

certificate of title may be properly issued by the Oklahoma Tax

Commission shall be perfected only when a lien entry form, and the

existing certificate of title, if any, or application for a

certificate of title and manufacturer's certificate of origin

containing the name and address of the secured party and the date of

the security agreement and the required fee are delivered to the Tax

Commission or to a motor license agent. As used in this section,

the term "dealer" shall be defined as provided in Section 1-112 of

this title and the term "security interest" shall be defined as

provided in paragraph (35) of Section 1-201 of Title 12A of the

Oklahoma Statutes. When a vehicle title is presented to a motor

license agent for transferring or registering and the documents

reflect a lienholder, the motor license agent shall perfect the lien

pursuant to subsection G of Section 1105 of this title. For the

purposes of this section, the term "vehicle" shall not include

special mobilized machinery, machinery used in highway construction

or road material construction, and rubber-tired road construction

vehicles including rubber-tired cranes. The filing and duration of

perfection of a security interest, pursuant to the provisions of

Title 12A of the Oklahoma Statutes including, but not limited to,

Section 1-9-311 of Title 12A of the Oklahoma Statutes, shall not be

applicable to perfection of security interests in vehicles as to

which a certificate of title may be properly issued by the Tax

Commission, except as to vehicles held by a dealer for sale or lease

and except as provided in subsection D of this section. In all

other respects Title 12A of the Oklahoma Statutes shall be

applicable to such security interests in vehicles as to which a

certificate of title may be properly issued by the Tax Commission.

2. Whenever a person creates a security interest in a vehicle,

the person shall surrender to the secured party the certificate of

title or the signed application for a new certificate of title, on

the form prescribed by the Tax Commission, and the manufacturer's

certificate of origin. The secured party shall deliver the lien

entry form and the required lien filing fee within twenty-five (25)

days as provided hereafter with certificate of title or the

application for certificate of title and the manufacturer's

certificate of origin to the Tax Commission or to a motor license

agent. If the lien entry form, the lien filing fee and the

certificate of title or application for certificate of title and the

manufacturer's certificate of origin are delivered to the Tax

Commission or to a motor license agent within twenty-five (25) days

after the date of the lien entry form, perfection of the security

Oklahoma Statutes - Title 47. Motor Vehicles Page 1121

interest shall begin from the date of the execution of the lien

entry form, but otherwise, perfection of the security interest shall

begin from the date of the delivery to the Tax Commission or to a

motor license agent.

3. a. For each security interest recorded on a certificate

of title, or manufacturer's certificate of origin,

such person shall pay a fee of Ten Dollars ($10.00),

which shall be in addition to other fees provided for
xecution of the lien

entry form, but otherwise, perfection of the security interest shall

begin from the date of the delivery to the Tax Commission or to a

motor license agent.

3. a. For each security interest recorded on a certificate

of title, or manufacturer's certificate of origin,

such person shall pay a fee of Ten Dollars ($10.00),

which shall be in addition to other fees provided for

in the Oklahoma Vehicle License and Registration Act.

Upon the receipt of the lien entry form and the

required fees with either the certificate of title or

an application for certificate of title and

manufacturer's certificate of origin, a motor license

agent shall, by placement of a clearly distinguishing

mark, record the date and number shown in a

conspicuous place, on each of these instruments. Of

the ten-dollar fee, the motor license agent shall

retain Two Dollars ($2.00) for recording the security

interest lien.

b. It shall be unlawful for any person to solicit,

accept, or receive any gratuity or compensation for

acting as a messenger and for acting as the agent or

representative of another person in applying for the

recording of a security interest or for the

registration of a motor vehicle and obtaining the

license plates or for the issuance of a certificate of

title therefor unless the Tax Commission has appointed

and approved the person to perform such acts; and

before acting as a messenger, any such person shall

furnish to the Tax Commission a surety bond in such

amount as the Tax Commission shall determine

appropriate.

4. The certificate of title or the application for certificate

of title and manufacturer's certificate of origin with the record of

the date of receipt clearly marked thereon shall be returned to the

debtor together with a notice that the debtor is required to

register and pay all additional fees and taxes due within thirty

(30) days from the date of purchase of the vehicle.

5. Any person creating a security interest in a vehicle that

has been previously registered in the debtor's name and on which all

taxes due the state have been paid shall surrender the certificate

of ownership to the secured party. The secured party shall have the

duty to record the security interest as provided in this section and

shall, at the same time, obtain a new certificate of title which

shall show the secured interest on the face of the certificate of

title.

Oklahoma Statutes - Title 47. Motor Vehicles Page 1122

6. The lien entry form with the date and assigned number

thereof clearly marked thereon shall be returned to the secured

party. If the lien entry form is received and authenticated, as

herein provided, by a motor license agent, the agent shall make a

report thereof to the Tax Commission upon the forms and in the

manner as may be prescribed by the Tax Commission.

7. The Tax Commission shall have the duty to record the lien

upon the face of the certificate of title issued at the time of

registering and paying all fees and taxes due on the vehicle.

8. When there is an active lien from a commercial lender in

place on a vehicle, motor license agents shall be prohibited from

transferring the certificate of title on that vehicle until the lien

is satisfied, except when the title is transferred:

a. to a person whose name is included on the loan for

which the lien is placed pursuant to an agreement by

the lender and any party to the title,

b. to a trust created by a person whose name is included

on the loan for which the lien is placed,

c. from a person who has died, upon the submission of a

death certificate, or

d. upon attestation by the managing member indicating

ownership, to a business entity from a person who owns

at least fifty percent (50%) of the business entity

receiving title. As part of such transfer, the

business entity receiving title and at the discretion

of the financial institution holding the lien, the
,

c. from a person who has died, upon the submission of a

death certificate, or

d. upon attestation by the managing member indicating

ownership, to a business entity from a person who owns

at least fifty percent (50%) of the business entity

receiving title. As part of such transfer, the

business entity receiving title and at the discretion

of the financial institution holding the lien, the

individual transferring title and the receiving

business entity may be added as an obligor to the

original note secured by the collateral to which the

transferring individual is a borrower. This shall not

be construed to require refinancing of the original

note. Service Oklahoma shall provide notification of

the transaction to the lienholder, ninety (90) days

prior to effectuating the title transfer and shall

develop an appropriate affidavit and notice necessary

to effectuate a transfer of title. A title transfer

initiated pursuant to this subparagraph shall not

preclude the lienholder from exercising all remedies

available to it in accordance with an agreement

between the lienholder and the individual transferring

title, up to and including repossession of the vehicle

and civil action against the individual transferring

title and receiving business entity. Further, until

the original lien is satisfied, the receiving business

entity shall be prohibited from transferring title to

another entity or person. Types of business entities

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that may receive a transfer of title pursuant to this

subparagraph shall be limited to:

(1) sole proprietorships,

(2) general partnerships,

(3) limited partnerships,

(4) limited liability companies,

(5) professional limited partnerships, and

(6) professional limited liability companies.

No individual may perform a transfer, pursuant to this

subparagraph, to any business entity that is currently

engaging in any activity which is prohibited by federal or

state law.

The provisions of this paragraph shall not be construed to release

any lien or debt based solely upon a transfer of certificate of

title.

B. 1. A secured party shall, within seven (7) business days

after the satisfaction of the security interest, furnish directly or

by mail a release of a security interest to the Tax Commission and

mail a copy thereof to the last-known address of the debtor. If the

security interest has been satisfied by payment from a licensed used

motor vehicle dealer to whom the motor vehicle has been transferred,

the secured party shall also, within seven (7) business days after

such satisfaction, mail an additional copy of the release to the

dealer. If the secured party fails to furnish the release as

required, the secured party shall be liable to the debtor for a

penalty of One Hundred Dollars ($100.00). Following the seven (7)

business days after satisfaction of the lien and upon receipt by the

lienholder of written communication demanding the release of the

lien, thereafter the penalty shall increase to One Hundred Dollars

($100.00) per day for each additional day beyond seven (7) business

days until accumulating to One Thousand Five Hundred Dollars

($1,500.00) or the value of the vehicle, whichever is less, and, in

addition, any loss caused to the debtor by such failure.

2. Upon release of a security interest the owner may obtain a

new certificate of title omitting reference to the security

interest, by submitting to the Tax Commission or to a motor license

agent:

a. a release signed by the secured party, an application

for new certificate of title and the proper fees, or

b. by submitting to the Tax Commission or the motor

license agent an affidavit, supported by such

documentation as the Tax Commission may require, by

the owner on a form prescribed by the Tax Commission

stating that the security interest has been satisfied

and stating the reasons why a release cannot be
y the secured party, an application

for new certificate of title and the proper fees, or

b. by submitting to the Tax Commission or the motor

license agent an affidavit, supported by such

documentation as the Tax Commission may require, by

the owner on a form prescribed by the Tax Commission

stating that the security interest has been satisfied

and stating the reasons why a release cannot be

obtained, an application for a new certificate of

title and the proper fees.

Oklahoma Statutes - Title 47. Motor Vehicles Page 1124

Upon receiving such affidavit that the security interest has been

satisfied, the Tax Commission shall issue a new certificate of title

eliminating the satisfied security interest and the name and address

of the secured parties who have been paid and satisfied. The Tax

Commission shall accept a release of a security interest in any form

that identifies the debtor, the secured party, and the vehicle, and

contains the signature of the secured party. The Tax Commission

shall not require any particular form for the release of a security

interest.

The words "security interest" when used in the Oklahoma Vehicle

License and Registration Act do not include liens dependent upon

possession.

C. The Tax Commission shall file and index certificates of

title so that at all times it will be possible to trace a

certificate of title to the vehicle designated therein, identify the

lien entry form, and the names and addresses of secured parties, or

their assignees, so that all or any part of such information may be

made readily available to those who make legitimate inquiry of the

Tax Commission as to the existence or nonexistence of security

interest in the vehicle.

D. 1. Any security interest in a vehicle properly perfected

prior to July 1, 1979, may be continued as to its effectiveness or

duration as provided by Sections 1-9-510 and 1-9-515 of Title 12A of

the Oklahoma Statutes, or may be terminated, assigned or released as

provided by Sections 1-9-512, 1-9-513 and 1-9-514 of Title 12A of

the Oklahoma Statutes, as fully as if this section had not been

enacted, or, at the option of the secured party, may also be

perfected under this section, and, if so perfected, the time of

perfection under this section shall be the date the security

interest was originally perfected under the prior law.

2. Upon request of the secured party, the debtor, or any other

holder of the certificate of title shall surrender the certificate

of title to the secured party and shall do such other acts as may be

required to perfect the security interest under this section.

E. If a manufactured home is permanently affixed to real

estate, an Oklahoma certificate of title may be surrendered to the

Tax Commission or a motor license agent for cancellation. When the

document of title is surrendered, the owner shall provide the legal

description or the appropriate tract or parcel number of the real

estate and other information as may be required on a form provided

by the Tax Commission. The Tax Commission may not cancel a document

of title if a lien has been registered or recorded. The Tax

Commission or motor license agent shall notify the owner and any

lienholder that the title has been surrendered to the Tax Commission

and that the Tax Commission may not cancel the title until the lien

is released. Such notification shall include a description of the

lien and such notification to the owner shall be accompanied by the

Oklahoma Statutes - Title 47. Motor Vehicles Page 1125

return of title surrendered. Permanent attachment to real estate

does not affect the validity of a lien recorded or registered with

the Tax Commission before the document of title is canceled pursuant

to this section. The rights of a prior lienholder pursuant to a

security agreement or the provisions of a credit transaction and the

rights of the state pursuant to a tax lien are preserved. The Tax
rn of title surrendered. Permanent attachment to real estate

does not affect the validity of a lien recorded or registered with

the Tax Commission before the document of title is canceled pursuant

to this section. The rights of a prior lienholder pursuant to a

security agreement or the provisions of a credit transaction and the

rights of the state pursuant to a tax lien are preserved. The Tax

Commission or motor license agent shall forward the information to

the county assessor of the county where the real estate is located

and indicate whether the original document of title has been

canceled. A fee of Five Dollars ($5.00) shall accompany the

application for cancellation of title. When the fee is paid by a

person making an application directly with the Tax Commission, the

fee shall be deposited in the Oklahoma Tax Commission Revolving

Fund. A fee paid to a motor license agent shall be retained by the

agent. The owner of a manufactured home upon which the document of

title has been properly surrendered, may apply to the Tax Commission

for issuance of a new original certificate of title upon submission

of:

1. An attestation from the homeowner indicating ownership of

the manufactured home and the nonexistence of any security interest

or lien of record in the manufactured home; and

2. A title opinion by a licensed attorney, determining that the

owner of the manufactured home has marketable title to the real

property upon which the manufactured home is located and that no

documents filed of record in the county clerk's office concerning

the real property contain a mortgage, recorded financial statement,

judgment, or lien of record. Persons or entities to whom the title

opinion is addressed may rely on the title opinion. A security

interest in a manufactured home perfected pursuant to this section

shall have priority over a conflicting interest of a mortgagee or

other lien encumbrancer, or the owner of the real property upon

which the manufactured home became affixed or otherwise permanently

attached. The holder of the security interest in the manufactured

home, upon default, may remove the manufactured home from such real

property. The holder of the security interest in the manufactured

home shall reimburse the owner of the real property who is not the

debtor and who has not otherwise agreed to access the real property

for the cost of repair of any physical injury to the real property,

but shall not be liable for any diminution in value to the real

property caused by the removal of the manufactured home, trespass,

or any other damages caused by the removal. The debtor shall notify

the holder of the security interest in the manufactured home of the

street address, if any, and the legal description of the real

property upon which the manufactured home is affixed or otherwise

permanently attached and shall sign such other documents, including

any appropriate mortgage, as may reasonably be requested by the

holder of such security interest.

Oklahoma Statutes - Title 47. Motor Vehicles Page 1126

F. In the case of motor vehicles or trailers, notwithstanding

any other provision of law, a transaction does not create a sale or

security interest merely because it provides that the rental price

is permitted or required to be adjusted under the agreement either

upward or downward by reference to the amount realized upon sale or

other disposition of the motor vehicle or trailer.

G. A security interest in vehicles registered by a federally

recognized Indian tribe shall be deemed valid under Oklahoma law if

validly perfected under the applicable tribal law and the lien is

noted on the face of the tribal certificate of title.