Oklahoma 2022 Regular Session

Oklahoma House Bill HB2056 Compare Versions

Version 1 (Old)

Version 2 (New)

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	30	+	April 6, 2021
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3	34		BILL NO. 2056 By: McCall of the House
4	35
5	36		and
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7	38		Rader of the Senate
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14	43		An Act relating to motor vehicles; amending 47 O.S.
15	44		2011, Section 1110, as amended by Section 1, Chapter
16	45		224, O.S.L. 2015 (47 O.S. Supp. 2020, Section 1110),
17	46		which relates to perfection of security interest;
18	47		prohibiting certain title transfers; and providing an
19	48		effective date.
20	49
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22	51
23	52
24		-	~~SUBJECT: Motor vehicles~~
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25	54
26	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
27		-
28	56		SECTION 1. AMENDATORY 47 O.S. 2011, Section 1110, as
29	57		amended by Section 1, Chapter 224, O.S.L. 2015 (47 O.S. Supp. 20 20,
30	58		Section 1110), is amended to read as follows:
31		-
32	59		Section 1110. A. 1. Except for a security interest in
33	60		vehicles held by a dealer for sale or lease, a vehicle registered by
34	61		a federally recognized Indian tribe as provided in subsection G of
35	62		this section, and a vehicle being registered in this state which was
36	63		previously registered in another state and which title contains the
37	64		name of a secured party on the face of the other state certificate
38	65		or title, and except as otherwise provided in subsection B of
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39	93		Section 1105 of this title, a security interest in a vehicle as to
40	94		which a certificate of title may be properly issued by the Oklahoma
41	95		Tax Commission shall be perfected only when a lien entry form, and
42	96		the existing certificate of title, if any, or application for a
43	97		certificate of title and manufacturer 's certificate of origin
44	98		containing the name and address of the secured party and the date of
45	99		the security agreement and the required fee are delivere d to the Tax
46		-	Commission or to a motor license agent. As used in this section, ~~ENR. H. B. NO. 2056 Page 2~~
	100	+	Commission or to a motor license agent. As used in this section,
47	101		the term "dealer" shall be defined as provided in Section 1 -112 of
48	102		this title and the term "security interest" shall be defined as
49	103		provided in paragraph (35) of Section 1 -201 of Title 12A of the
50	104		Oklahoma Statutes. When a vehicle title is presented to a motor
51	105		license agent for transferring or registering and the documents
52		-	reflect a ~~lienholder~~, the motor license agent shall ~~perfect~~ the ~~lien~~
53		-	pursuant to subsection G of Section ~~1105~~ of this title. For ~~the~~
54		-	purposes of this section, the term "vehicle" shall not include
	106	+	reflect a lien holder, the motor license agent shall perf ect the
	107	+	lien pursuant to subsection G of Section 110 5 of this title. For
	108	+	the purposes of this section, the term "vehicle" shall not include
55	109		special mobilized machinery, machinery used in highway construction
56	110		or road material construction and rubber -tired road construction
57	111		vehicles including rubber -tired cranes. The filing and duration of
58	112		perfection of a security interest, pursuant to the provisions of
59	113		Title 12A of the Oklahoma Statutes, including, but not limited to,
60	114		Section 1-9-311 of Title 12A of the Ok lahoma Statutes, shall not be
61	115		applicable to perfecti on of security interests in vehicles as to
62	116		which a certificate of title may be properly issued by the Tax
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63	144		Commission, except as to vehicles held by a dealer for sale or lease
64	145		and except as provided in sub section D of this section. In all
65	146		other respects Title 12A of the Oklahoma Statutes shall be
66	147		applicable to such security interests in vehicles as to which a
67	148		certificate of title may be properly issued by the Tax Commission.
68		-
69	149		2. Whenever a person creates a security interest in a vehicle,
70	150		the person shall surrender to the secured party the certificate of
71	151		title or the signed application for a new certificate of title, on
72	152		the form prescribed by the Tax Commission, and the manufacturer 's
73	153		certificate of origin. The secured party shall deliver the lien
74	154		entry form and the required lien filing fee within twenty -five (25)
75	155		days as provided hereafter with certificate of title or the
76	156		application for certificate of title and the manufacturer 's
77	157		certificate of origin to t he Tax Commission or to a motor license
78	158		agent. If the lien entry form, the lien filing fee and the
79	159		certificate of title or application for certificate of title and the
80	160		manufacturer's certificate of origin are delivered to the Tax
81	161		Commission or to a motor license agent within twenty-five (25) days
82	162		after the date of the lien entry form, perfection of the security
83	163		interest shall begin from the date of the execution of the lien
84	164		entry form, but otherwise, perfection of the security interest shall
85	165		begin from the date of the delivery to the Tax Commission or to a
86	166		motor license agent.
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88	194		3. a. For each security interest recorded on a certificate
89	195		of title, or manufacturer 's certificate of origin,
90	196		such person shall pay a fee of Ten Dollars ($10.00),
91		-	which shall be in ~~addition~~ to other fees ~~prov ided~~ for ~~ENR. H. B. NO. 2056 Page 3~~
	197	+	which shall be in ad dition to other fees provided for
92	198		in the Oklahoma Vehicle License and Registration Act.
93	199		Upon the receipt of the lien entry form and the
94	200		required fees with either the certificate of title or
95	201		an application for certificate of title and
96	202		manufacturer's certificate of origin, a motor license
97	203		agent shall, by placement of a clearly distinguishing
98	204		mark, record the date and number shown in a
99	205		conspicuous place, on each of these instruments. Of
100	206		the ten-dollar fee, the motor license agent shall
101	207		retain Two Dollars ($2 .00) for recording the security
102	208		interest lien.
103		-
104	209		b. It shall be unlawful for any person to solicit, accept
105	210		or receive any gratuity or compensation for acting as
106	211		a messenger and for acting as the agent or
107	212		representative of another person in applying for the
108	213		recording of a security interest or for the
109	214		registration of a motor vehicle and obtaining the
110	215		license plates or for the issuance of a certificate of
111	216		title therefor unless the Tax Commission has appointed
112	217		and approved the person to perform such acts; and
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113	245		before acting as a messenger, any such person shall
114	246		furnish to the Tax Commission a surety bond in such
115	247		amount as the Tax Commission shall determine
116	248		appropriate.
117		-
118	249		4. The certificate of title or the application for certificate
119	250		of title and manufacturer 's certificate of origin with the record of
120	251		the date of receipt clearly marked thereon shall be returned to the
121	252		debtor together with a notice that the debtor is required to
122	253		register and pay all additional fees and taxes due within thirty
123	254		(30) days from the date of purchase of the vehicle.
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125	255		5. Any person creating a security interest in a vehicle that
126	256		has been previously registered in the debtor 's name and on which all
127	257		taxes due the state have been paid shall surrender the certificate
128	258		of ownership to the secured part y. The secured party shall have the
129	259		duty to record the security interest as provided in this section and
130	260		shall, at the same time, obtain a new certificate of title which
131	261		shall show the secured interest on the face of the certificate of
132	262		title.
133		-
134	263		6. The lien entry form with the date and assigned number
135	264		thereof clearly marked thereon shall be returned to the secured
136		-	party. If the lien entry form is received and authenticated, as ~~ENR. H. B. NO. 2056 Page 4~~
	265	+	party. If the lien entry form is received and authenticated, as
137	266		herein provided, by a motor license agent, the agent shall make a
138	267		report thereof to the Tax Commission upon the forms and in the
139	268		manner as may be prescribed by the Tax Commission.
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141	296		7. The Tax Commission shall have the duty to record the lien
142	297		upon the face of the certificate of title issued at the time of
143	298		registering and paying all fees and taxes due on the vehicle.
144		-
145	299		8. When there is an active lien from a commercial lender in
146	300		place on a vehicle, motor license agents shall be prohibited from
147	301		transferring the certificate of title on that vehicle until the lien
148	302		is satisfied.
149		-
150	303		B. 1. A secured party shall, within seven (7) business days
151	304		after the satisfaction of the security interest, furnish directly or
152	305		by mail a release of a security interest to the Tax Commission and
153	306		mail a copy thereof to the last -known address of the debtor. If the
154	307		security interest has been satisfied by payment from a l icensed used
155	308		motor vehicle dealer to whom the motor vehicle has been transferred,
156	309		the secured party shall also, within seven (7) business days after
157	310		such satisfaction, mail an additional copy of the relea se to the
158	311		dealer. If the secured party fails to fur nish the release as
159	312		required, the secured party shall be liable to the debtor for a
160	313		penalty of One Hundred Dollars ($100.00). Following the seven (7)
161	314		business days after satisfaction of the lien and upon receipt by the
162	315		lienholder of written communication demanding the release of the
163	316		lien, thereafter the penalty shall increase to One Hundred Dollars
164	317		($100.00) per day for each additional day beyond seven (7) business
165	318		days until accumulating to One Thousand Five Hundred Dollars
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166	346		($1,500.00) or the value of the vehicle, whichever is less, and, in
167	347		addition, any loss caused to the debtor by such failure.
168		-
169	348		2. Upon release of a security interest the owner may obtain a
170	349		new certificate of title omitting reference to the security
171	350		interest, by submitting to the Tax Comm ission or to a motor license
172	351		agent:
173		-
174	352		a. a release signed by the secured party, an application
175	353		for new certificate of title and the proper fees, or
176		-
177	354		b. by submitting to the Tax Commission or the motor
178	355		license agent an affidavit, supported by such
179	356		documentation as the Tax Commission may require, by
180	357		the owner on a form prescribed by the Tax Commission
181		-	stating that the security interest has been satisfied ~~ENR. H. B. NO. 2056 Page 5~~
	358	+	stating that the security interest has been satisfied
182	359		and stating the reasons why a release cannot be
183	360		obtained, an application for a new certificate of
184	361		title and the proper fees.
185		-
186	362		Upon receiving such affidavit that the security interest has been
187	363		satisfied, the Tax Commission shall issue a new certificate of title
188	364		eliminating the satisfied security interest and the n ame and address
189	365		of the secured parties who have been paid and satisfied. The Tax
190	366		Commission shall accept a release of a security interest in any form
191	367		that identifies the debtor, the secured party, and the vehicle, and
192	368		contains the signature of the secured party. The Tax Commission
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193	396		shall not require any pa rticular form for the release of a security
194	397		interest.
195		-
196	398		The words "security interest" when used in the Oklahoma Vehicle
197	399		License and Registration Act do not include liens dependent upon
198	400		possession.
199		-
200	401		C. The Tax Commission shall file and index certificates of
201	402		title so that at all times it will be possible to trace a
202	403		certificate of title to the vehicle designated therein, identify the
203	404		lien entry form, and the names and addresses of secured parties, or
204	405		their assignees, so that all or any part of such information m ay be
205	406		made readily available to those who make legitimate inquiry of the
206	407		Tax Commission as to the existence or nonexistence of security
207	408		interest in the vehicle.
208		-
209	409		D. 1. Any security interest in a vehicle properly perfected
210	410		prior to July 1, 1979, may be con tinued as to its effectiveness or
211	411		duration as provided by Sections 1-9-501 1-9-510 and 1-9-515 of
212	412		Title 12A of the Oklahoma Statutes, or may be terminated, assigned
213	413		or released as provided by Sections 1 -9-512, 1-9-513 and 1-9-514 of
214	414		Title 12A of the Oklaho ma Statutes, as fully as if this section had
215	415		not been enacted, or, at the option of the secured party, may also
216	416		be perfected under this section, and, if so perfected, the time of
217	417		perfection under this sec tion shall be the date the security
218	418		interest was originally perfected under the prior law.
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220	446		2. Upon request of the secured party, the debtor or any other
221	447		holder of the certificate of title shall surrender the certificate
222	448		of title to the secured party and s hall do such other acts as may be
223	449		required to perfect the security interest under this section.
224		-
225	450		E. If a manufactured home is permanently affixed to real
226		-	estate, the original document of title may be surrendered to the Tax ~~ENR. H. B. NO. 2056 Page 6~~
	451	+	estate, the original document of title may be surrendered to the Tax
227	452		Commission or a motor license age nt for cancellation. When the
228	453		document of title is surrendered, the owner shall provide the legal
229	454		description or the appropriate tract or parcel number of the real
230	455		estate and other information as may be required on a form provided
231	456		by the Tax Commission. The Tax Commission may not cancel a document
232	457		of title if a lien has been registered or recorded. The Tax
233	458		Commission or motor license agent shall notify the owner and any
234	459		lienholder that the title has been surrendered to the Tax Commission
235	460		and that the Tax Commission may not cancel the title until the lien
236	461		is released. Such notification shall include a description of the
237	462		lien and such notification to the owner shall be accompanied by the
238	463		return of title surrendered. Permanent attachment to real estate
239	464		does not affect the validity of a lien recorded or regi stered with
240	465		the Tax Commission before the document of title is cancelled
241	466		canceled pursuant to this section. The rights of a prior lienholder
242	467		pursuant to a security agreement or the provisions of a credit
243	468		transaction and the rights of the state pursuant to a tax lien are
244	469		preserved. The Tax Commission or motor license agent shall forward
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245	497		the information to the county assessor of the county where the real
246	498		estate is located and indicate whether the original document of
247	499		title has been canceled. A fee of Five Dollars ($5.00) shall
248	500		accompany the application for cancellation of title. When the fee
249	501		is paid by a person making an application directly with the Tax
250	502		Commission, the fee shall be deposited in the Oklah oma Tax
251	503		Commission Revolving Fund. A fee paid to a motor license agent
252	504		shall be retained by the agent. The owner of a manufactured home
253	505		upon which the document of title has been properly surrendered, may
254	506		apply to the Tax Commission for issuance of a new original
255	507		certificate of title upon submission of: (1) an
256		-
257	508		1. An attestation from the homeowner indicating ownership of
258	509		the manufactured home and the nonexistence of any security interest
259	510		or lien of record in the manufactured home ,; and (2) a
260		-
261	511		2. A title opinion by a licensed attorney, determining that the
262	512		owner of the manufactured home has marketable title to the real
263	513		property upon which the manufactured home is located and that no
264	514		documents filed of record in the county clerk 's office concerning
265	515		the real property contain a mortgage, recorded financial sta tement,
266	516		judgment, or lien of record. Persons or entities to whom the title
267	517		opinion is addressed may rely on the title opinion . A security
268	518		interest in a manufactured home perfected pursuant to this secti on
269	519		shall have priority over a conflicting interest o f a mortgagee or
270	520		other lien encumbrancer, or the owner of the real property upon
271		-	which the manufactured home became affixed or otherwise permanently ENR. H. B. NO. 2056 Page 7
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	548	+	which the manufactured home became affixed or otherwise permanently
272	549		attached. The holder of the security interest in the m anufactured
273	550		home, upon default, may remove the manuf actured home from such real
274	551		property. The holder of the security interest in the manufactured
275	552		home shall reimburse the owner of the real property who is not the
276	553		debtor and who has not otherwise agreed to access the real property
277	554		for the cost of repair of any physical injury to the real property,
278	555		but shall not be liable for any diminution in value to the real
279	556		property caused by the removal of the manufactured home, trespass,
280	557		or any other damages caused by the removal. The debtor shall notify
281	558		the holder of the security interest in the manufactured home of the
282	559		street address, if any, and the legal description of the real
283	560		property upon which the manufactured home is affixed or otherwise
284	561		permanently attached a nd shall sign such other documents, including
285	562		any appropriate mortgage, as may reasonably be requested by the
286	563		holder of such security interest.
287		-
288	564		F. In the case of motor vehicles or trailers, notwithstanding
289	565		any other provision of law, a transaction does no t create a sale or
290	566		security interest merely because it provides that the rental price
291	567		is permitted or required to be adjusted under the agreement either
292	568		upward or downward by reference to the amount realized upon sale or
293	569		other disposition of the motor vehi cle or trailer.
294		-
295	570		G. A security interest in vehicles registered by a federally
296	571		recognized Indian tribe shall be deemed valid under Oklahoma law if
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	573	+	SENATE FLOOR VERSION - HB2056 SFLR Page 12
	574	+	(Bold face denotes Committee Amendm ents) 1
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297	599		validly perfected under the applicable tribal law and the lien is
298	600		noted on the face of the tribal certificate of title.
299		-
300	601		SECTION 2. This act shall become effective November 1, 202 1.
301		-	ENR. H. B. NO. 2056 Page 8
302		-	Passed the House of Representatives the 8th day of March, 2021.
303		-
304		-
305		-
306		-
307		-	Presiding Officer of the House
308		-	of Representatives
309		-
310		-
311		-	Passed the Senate the 15th day of April, 2021.
312		-
313		-
314		-
315		-
316		-	Presiding Officer of the Senate
317		-
318		-
319		-
320		-	OFFICE OF THE GOVERNOR
321		-	Received by the Office of the Governor this ____________________
322		-	day of ___________________, 20_______, at _______ o'clock _______ M.
323		-	By: _________________________________
324		-	Approved by the Gove rnor of the State of Oklahoma this _________
325		-	day of ___________________, 20_______, at _______ o'clock _______ M.
326		-
327		-
328		-	_________________________________
329		-	Governor of the State of Oklahoma
330		-
331		-	OFFICE OF THE SECRETARY OF STATE
332		-	Received by the Office of the Secret ary of State this __________
333		-	day of ___________________, 20_______, at _______ o'clock _______ M.
334		-	By: _________________________________
335		-
	602	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	603	+	April 6, 2021 - DO PASS