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, 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 Service Oklahoma 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 Service Oklahoma or to a licensed operator. 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 licensed operator for transferring or registering and the documents reflect a lienholder, the licensed operator 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 Service Oklahoma, 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 Service Oklahoma. 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 Service Oklahoma, and the manufacturer’s certificate of origin. The secured party shall deliver the lien entry form and the required lien filing fee within forty-five (45) days as provided hereafter with certificate of title or the application for certificate of title and the manufacturer’s certificate of origin to Service Oklahoma or to a licensed operator. 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 Service Oklahoma or to a licensed operator within forty-five (45) days after the date of the lien entry form, perfection of the security 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 Service Oklahoma or to a licensed operator. 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 licensed operator 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 licensed operator 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 Service Oklahoma has appointed and approved the person to perform such acts; and before acting as a messenger, any such person shall furnish to Service Oklahoma a surety bond in such amount as Service Oklahoma 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. 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 licensed operator, the licensed operator shall make a report thereof to Service Oklahoma upon the forms and in the manner as may be prescribed by Service Oklahoma. 7. Service Oklahoma 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, licensed operators 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, or c. from a person who has died, upon the submission of a death certificate. 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 Service Oklahoma 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 receipt of a written request from such licensed used motor vehicle dealer, 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 Service Oklahoma or to a licensed operator: a. a release signed by the secured party, an application for new certificate of title, and the proper fees, or b. by submitting to Service Oklahoma or the licensed operator an affidavit, supported by such documentation as Service Oklahoma may require, by the owner on a form prescribed by Service Oklahoma 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. Upon receiving such affidavit that the security interest has been satisfied, Service Oklahoma 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. Service Oklahoma 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. Service Oklahoma 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. Service Oklahoma 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 Service Oklahoma 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 Service Oklahoma or a licensed operator 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 Service Oklahoma. Service Oklahoma may not cancel a document of title if a lien has been registered or recorded. Service Oklahoma or the licensed operator shall notify the owner and any lienholder that the title has been surrendered to Service Oklahoma and that Service Oklahoma 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 return of title surrendered. Permanent attachment to real estate does not affect the validity of a lien recorded or registered with Service Oklahoma 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. Service Oklahoma or the licensed operator 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 Service Oklahoma, the fee shall be deposited in the Oklahoma Tax Commission Fund. Beginning January 1, 2023, the fee shall be deposited in the Service Oklahoma Revolving Fund. A fee paid to a licensed operator shall be retained by the licensed operator. The owner of a manufactured home upon which the document of title has been properly surrendered may apply to Service Oklahoma 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. 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. Added by Laws 1985, c. 179, § 13, operative July 1, 1985. Amended by Laws 1988, c. 167, § 2, emerg. eff. May 24, 1988; Laws 1989, c. 58, § 3, operative July 1, 1989; Laws 1991, c. 117, § 134, eff. Jan. 1, 1992; Laws 1991, c. 335, § 16, emerg. eff. June 15, 1991; Laws 1995, c. 126, § 1; Laws 1996, c. 38, § 1, eff. Nov. 1, 1996; Laws 1999, c. 92, § 3, eff. Nov. 1, 1999; Laws 2000, c. 371, § 173, eff. July 1, 2001; Laws 2001, c. 25, § 1, eff. July 1, 2001; Laws 2001, c. 358, § 4, eff. July 1, 2001; Laws 2002, c. 417, § 2, eff. July 1, 2002; Laws 2004, c. 85, § 1, emerg. eff. April 13, 2004; Laws 2007, c. 37, § 1, eff. Nov. 1, 2007; Laws 2007, c. 202, § 2, eff. Nov. 1, 2007; Laws 2015, c. 224, § 1, eff. Nov. 1, 2015; Laws 2021, c. 154, § 1, eff. Nov. 1, 2021; Laws 2021, c. 379, § 3, eff. Nov. 1, 2021; Laws 2022, c. 282, § 122, emerg. eff. May 19, 2022; Laws 2024, c. 452, § 70, emerg. eff. June 14, 2024; Laws 2025, c. 403, § 1, eff. July 1, 2025. NOTE: Laws 1988, c. 166, § 12 repealed by Laws 1989, c. 58, § 4, operative July 1, 1989. Laws 1991, c. 107, § 1 repealed by Laws 1991, c. 335, § 37, emerg. eff. June 15, 1991.
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