OK
Oklahoma Senate Bill SB971

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB971 Compare Versions

Only one version of the bill is available at this time.
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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 58th Legislature (2021)
5656
5757 SENATE BILL 971 By: Howard
5858
5959
6060
6161
6262
6363 AS INTRODUCED
6464
6565 An Act relating to liens; amending 42 O.S. 20 11,
6666 Sections 91, as last amended by Secti on 1, Chapter
6767 316, O.S.L. 2016, and 91A, as last am ended by Section
6868 1, Chapter 183, O.S.L. 2017 (42 O.S. Supp. 20 20,
6969 Sections 91 and 91A), which relate to liens on
7070 personal property; modifying requirements for
7171 resubmission of certain title applications for
7272 perfection of certain special lien; terminating
7373 requirements for notarization of certain documents;
7474 and providing an effective date .
7575
7676
7777
7878
7979 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
8080 SECTION 1. AMENDATORY 42 O.S. 2011, Section 91, as last
8181 amended by Section 1, Cha pter 316, O.S.L. 2016 (42 O.S. Supp. 20 20,
8282 Section 91), is amended to read as follows:
8383 Section 91.
8484 A. 1. a. This section applies to every vehicle, all -terrain
8585 vehicle, utility vehicle, manufactured home,
8686 motorcycle, boat, outboard motor , or trailer that has
8787 a certificate of title issued by the Oklahoma Tax
8888 Commission or by a federally recognized Indian tribe
8989 in the State of Oklahoma, except as otherwise provided
9090
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141141 in subsection D of this section. This sect ion does
142142 not apply to farm equipment as defined in Section 91.2
143143 of this title. The items of personal property to
144144 which this section applies are collectively referred
145145 to as “Section 91 Personal Property ”. If personal
146146 property is apparently covered both by this section
147147 and by Sections 191 through 200 of th is title, the
148148 procedures set out in this section shall apply instead
149149 of Sections 191 through 200 of this title.
150150 b. Salvage pools as defined in Section 591.2 of Title 47
151151 of the Oklahoma Statutes and class A A licensed wrecker
152152 services taking possession of a vehicle pursuant to an
153153 agreement with or at the direction of, or dispatched
154154 by, a state or local law enforcement or government
155155 agency, or pursuant to the abandoned ve hicle renewal
156156 provisions of Section 954 A of Title 47 of the Oklahoma
157157 Statutes, shall not b e subject to the provisions of
158158 this section, but shall be subject to the provisions
159159 of Section 91A of this title. Unless otherwise
160160 provided by this subparagraph, cla ss AA licensed
161161 wrecker services perform ing consensual tows shall be
162162 subject to the provisi ons of this section.
163163 2. Any person who, while lawfully in possession of an article
164164 of Section 91 Personal Property, renders any service to the owner
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216216 thereof by furnishing storage, rental space, material, labor or
217217 skill for the protection, improvement, saf ekeeping, towing, right to
218218 occupy space, storage or carriage thereof, has a special lien
219219 thereon, dependent on possession, for the compensation, if any,
220220 which is due to such person from the owner for such service.
221221 3. This special lien shall be subordinate to any perfected
222222 security interest unless the claimant complies with the requirements
223223 of this section. Failure to comply with any requirements of this
224224 section shall result in denial of any title applicat ion and cause
225225 the special lien to be subordinate to any perfected lien. Upon such
226226 denial, the applicant shall be entitled to one resubmission no more
227227 than two resubmissions of the title application within fifteen (15)
228228 thirty (30) business days of receipt of the denial, and proceed to
229229 comply with the requi rements of this section. In the event of a
230230 denial, the Notice of Possessory Lien and the Notice of Sale may be
231231 mailed on the same day in separate envelopes and sto rage charges
232232 shall only be charged from t he date of resubmission. “Failure to
233233 comply” includes, but is not limited to:
234234 a. failure to timely provide additional documentation
235235 supporting or verifying any entry on submitted forms as
236236 requested by the Tax Comm ission, including but not
237237 limited to United States Postal Service proof of return
238238 receipt requested such as Form 3811 or United States
239239 Postal Service electronic equivalent,
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291291 b. failure to provide the documentation supporting lawful
292292 possession as defined in paragraph 3 of subsection H of
293293 this section,
294294 c. claimant or the agent being other than the in dividual
295295 who provided the service giving rise to the special
296296 lien, as in paragraph 2 of this subsection,
297297 d. claimant not being in possession of the vehicle,
298298 e. notice of lien not filed in accordance with p aragraph 4
299299 of this subsection, or
300300 f. foreclosure notification and proceedings not
301301 accomplished in accordance with paragraph 6 of this
302302 section subsection.
303303 4. Any person claiming the special lien provided in p aragraph 2
304304 of this subsection shall mail a notic e of such lien, no later than
305305 sixty (60) days after the first services are rendered, by regular,
306306 first-class United States mail, and by certified mail, return
307307 receipt requested, to all interested parties who reside at separate
308308 locations. If services provi ded are pursuant to a contract
309309 primarily for the pu rpose of storage or rental of space, the
310310 beginning date of the sixty -day period provided in the previous
311311 sentence shall be the first day of the first period or partial
312312 period for which rental or storage ch arges remain unpaid. The
313313 notice shall be in writin g and shall contain, but not be limited to,
314314 the following:
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366366 a. a statement that the notice is a Notice of Possessory
367367 Lien,
368368 b. the complete legal name, physi cal and mailing address,
369369 and telephone number of t he claimant,
370370 c. the complete legal name, physical a nd mailing address
371371 of the person who requested that the claimant render
372372 service to the owner by furnishing material, labor or
373373 skill, storage, or rental space, or the date the
374374 property was abandoned if the claimant did not render
375375 any other service,
376376 d. a description of the article of personal property,
377377 including a photograph if the property is Section 91
378378 Personal Property, and the complete physical and
379379 mailing address of the location of the article of
380380 personal property,
381381 e. an itemized statement describing the date or dates the
382382 labor or services were performed and material
383383 furnished, and the charges claimed for each item, the
384384 totals of which shall equal the t otal compensation
385385 claimed,
386386 f. a statement by the clai mant that the materials, labor
387387 or skill furnished, or arrangement for storage or
388388 rental of space, was authorized by the owner of the
389389 personal property and was in fact provided or
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441441 performed, and written proof of authority to perform
442442 the work, labor or servi ce, or that the property was
443443 abandoned by the owner if the claimant did not render
444444 any other service, and that storage or rental fees
445445 will accrue as allowed by law, and
446446 g. the signature of the claimant which shall be notarized
447447 and, if applicable, the signa ture of the claimant’s
448448 attorney. If the claimant i s a business, then the
449449 name of the contact person representing the business
450450 must be shown. In place of an original signature and
451451 notary seal, a digital or electronic signature or seal
452452 shall be accepted.
453453 5. For services rendered or vehicles abandoned on or after
454454 November 1, 2005, storage charges or charges for rental of space,
455455 unless agreed to by contract as part of an overall transaction or
456456 arrangement that was primarily for the purpose of storage of the
457457 Section 91 Personal Property or rental of space, m ay only be
458458 assessed beginning with the day that the Notice of Possessory Lien
459459 is mailed as evidenced by certified mail. Provided, however, in the
460460 case of contractual charges incurred for storage or rental of space
461461 in an overall transaction primarily for t he purpose of storage or
462462 rental, charges subject to the special lien may only be assessed
463463 beginning with a date not more than sixty (60) days prior to the day
464464 that the Notice of Possessory Lien is mailed, a nd shall accrue only
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516516 at the regular periodic rate for storage or rental as provided in
517517 the contract, adjusted for partial periods of storage or rental.
518518 The maximum allowable compensation for storage shall not exceed the
519519 fees established by the Corporation Commission for nonconsensual
520520 tows.
521521 6. The lien may be foreclosed by a sale of such personal
522522 property upon the notice and in the manner following: The Notice of
523523 Sale shall be in writing and shall c ontain, but not be limited to:
524524 a. a statement that the no tice is a Notice of Sale,
525525 b. the names of all interested parties known to the
526526 claimant,
527527 c. a description of the property to be sold, including a
528528 photograph if the property is Section 91 Personal
529529 Property and if the condition of such property has
530530 materially changed since the mailing of Notice of
531531 Possessory Lien required pursuant to paragraph 4 of
532532 this subsection,
533533 d. a notarized statement of the nature of the work, labor
534534 or service performed, materi al furnished, or storage
535535 or rental of space, and the date the reof, and the name
536536 of the person who authoriz ed the work, labor or
537537 service performed, or the storage or rental
538538 arrangement, and written proof of authority to perform
539539 the work, labor or service, o r that the property was
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591591 abandoned if the claimant did not ren der any other
592592 service,
593593 e. the date, time, and exact physical location of sale,
594594 f. the name, complete physical address, mailing address ,
595595 and telephone number of the party foreclosing such
596596 lien. If the claimant is a business, then the name of
597597 the contact person representing the business must be
598598 shown. In place of an original signature and notary
599599 seal, a digital or electronic signature or seal shall
600600 be accepted, and
601601 g. itemized charges which sha ll equal the total
602602 compensation claimed.
603603 7. Such Notice of Sale shall be posted in two public places in
604604 the county where the property is to be sold at least ten (10) days
605605 before the time therein specified for such sale, and a copy of the
606606 notice shall be mailed to all interested parties at their last -known
607607 post office address by regular, first -class United States mail and
608608 by certified mail, return receipt requested, at least ten (10) days
609609 before the date of the sale. If the item of personal property is a
610610 manufactured home, notice shall also be sent by certified mail to
611611 the county treasurer and to the county a ssessor of the county where
612612 the manufactured home is located.
613613 8. Interested parties shall include all owners of the article
614614 of personal property as indicated by the certificate of title issued
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666666 by the Tax Commission or by a federally recognized Indian tri be in
667667 the State of Oklahoma; lien debtors, if any, other than the owners;
668668 any lienholder whose lien is noted on the face of the certificate of
669669 title; and any other person having any interest in the article of
670670 personal property, of whom the claimant has act ual notice.
671671 9. Any interested party shall be permitted to inspect and
672672 verify the services rendered by the claimant prior to the sale of
673673 the article of personal property during normal business hours. The
674674 lienholder shall be allowed to retrieve the Sectio n 91 Personal
675675 Property without being required to bring the title into the
676676 lienholder’s name, if the lienholder provides proof it is a
677677 lienholder and any payment due the claimant for lawful charges where
678678 the claimant has complied with the requirements of th is section.
679679 Upon the release of personal property to an insurer or
680680 representative of the insurer, wrecker operators shall be exempt
681681 from all liability and shall be held harmless for any losses or
682682 claims of loss.
683683 10. The claimant or any other person may in good faith become a
684684 purchaser of the property sold.
685685 11. Proceedings for foreclosure under this act shall be
686686 commenced no sooner than ten (10) day s and no later than thirty (30)
687687 days after the Notice of Possessory L ien has been mailed as
688688 evidenced by certified mail. The date actually sold shall be within
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740740 sixty (60) days from the date of the Notice of Sale as evidenced by
741741 certified mail.
742742 B. 1.
743743 a. Any person who is induced by means of a check or other
744744 form of written order for immediate payment of money
745745 to deliver up possession of an article of personal
746746 property on which the person has a special lien
747747 created by subsection A of this section, which che ck
748748 or other written order is dishonored, or is not paid
749749 when presented, shall have a lien for the amount
750750 thereof upon the personal property.
751751 b. The person claiming such lien shall, within thirty
752752 (30) days from the date of dishonor of the check or
753753 other written order for payment of money, file in the
754754 office of the county clerk of the county in which the
755755 property is situated a sworn statement that:
756756 (1) the check or other written order for immediate
757757 payment of money, copy thereof being attached,
758758 was received for labor, material or supplies for
759759 producing or repairing an artic le of personal
760760 property, or for other specific property-related
761761 services covered by this section,
762762 (2) the check or other written order was not paid,
763763 and
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815815 (3) the uttering of the check or other written order
816816 constituted the means for inducing the person,
817817 one possessed of a special lien created by
818818 subsection A of this section upon the described
819819 article of personal property, to deliver up the
820820 article of personal property.
821821 2. a. Any person who renders service to the owner of an
822822 article of personal property by fu rnishing storage,
823823 rental space, material, labor, or skill for the
824824 protection, improvement, safekeeping, towing, right to
825825 occupy space, storage , or carriage thereof shall have
826826 a special lien on such property pursuant to this
827827 section if such property is remo ved from the person’s
828828 possession, without such person’s written consent or
829829 without payment for such service.
830830 b. The person claiming such lien shall, within five (5)
831831 days of such nonauthorized removal, file in the office
832832 of the county clerk of the county in which the
833833 property is located, a sworn statement including:
834834 (1) that services were rendered on or in relation to
835835 the article of personal property by the person
836836 claiming such lien,
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888888 (2) that the property was in the possession of the
889889 person claiming the lien but such property was
890890 removed without his or her written consent,
891891 (3) an identifying description of the article of
892892 personal property on which the service was
893893 rendered, and
894894 (4) that the debt for the services rendered on or in
895895 relation to the article of per sonal property was
896896 not paid. Provided, if the unpa id total amount
897897 of the debt for services rendered on or in
898898 relation to the article of personal property is
899899 unknown, an approximat ed amount of the debt due
900900 and owing shall be included in the sworn
901901 statement but such approximated debt ma y be
902902 amended within thirty (30) days of such filing to
903903 reflect the actual amount of the debt due and
904904 owing.
905905 3. The enforcement of the lien shall be within sixty (60) days
906906 after filing the lien in the manner provided by law fo r enforcing
907907 the lien of a security agreement and pr ovided that the lien shall
908908 not affect the rights of innocent, intervening purchasers without
909909 notice.
910910 C. If the person who rend ers service to the owner of an article
911911 of personal property to which this sect ion applies relinquishes or
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963963 loses possession of the article due to circumstances described in
964964 subparagraph a of paragraph 1 or subparagraph a of paragraph 2 of
965965 subsection B of this section, the person claiming the lien shall be
966966 entitled to possession of th e article until the amount d ue is paid,
967967 unless the article is possessed by a person who became a bona fide
968968 purchaser. Entitlement to possession shall be in accordance with
969969 the following:
970970 1. The claimant may take possession of an article pursuant to
971971 this subsection only if the pers on obligated under the c ontract for
972972 services has signed an acknowledgement of receipt of a notice that
973973 the article may be subject to repossession. Th e notice and
974974 acknowledgement pursuant to this subsection shall be:
975975 a. in writing and separate from the wr itten contract for
976976 services, or
977977 b. printed on the written contract for services, credit
978978 agreement or other document which displays the notice
979979 in bold-faced, capitalized and underlined type, or is
980980 separated from surrounding written material so as to
981981 be conspicuous with a separate s ignature line;
982982 2. The claimant may require the person obligated under the
983983 contract for services to pay the costs of reposs ession as a
984984 condition for reclaiming the article only to the extent of the
985985 reasonable fair market value of the services required to t ake
986986 possession of the article;
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10381038 3. The claimant shall not transfer to a third party or to a
10391039 person who performs repossessi on services, a check, money order , or
10401040 credit card transaction that is received as p ayment for services
10411041 with respect to an article and that is returned to the claimant
10421042 because of insufficient funds or no funds, because the person
10431043 writing the check, issuing the money order, or credit cardholder has
10441044 no account or because the check, money or der, or credit card account
10451045 has been closed. A per son violating this paragraph shall be guilty
10461046 of a misdemeanor; and
10471047 4. An article that is repossessed pursuant to this su bsection
10481048 shall be promptly delivered to the location where the services were
10491049 performed. The article shall remain at the services locat ion at all
10501050 times until the article is lawfully returned to the record owner or
10511051 a lienholder or is disposed of pursuant to this section.
10521052 D. 1. If a vehicle, all -terrain vehicle, utility vehicle,
10531053 manufactured home, motorcycle, boat, outboard motor , or trailer has
10541054 a certificate of title issued by the Tax Commission or by a
10551055 federally recognized Indian tribe in the State of Ok lahoma, but
10561056 there is no active lien recorded on the certificate of title,
10571057 Section 91A of this title will apply instead of this section.
10581058 Likewise, if there is an active lien recorded on the certificate of
10591059 title but the lien is over fifteen (15) years old a nd the property
10601060 is not a manufactured home, Section 91A of this title will apply
10611061 instead of this section.
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11131113 2. If personal property that otherwise would be covered by this
11141114 section has been registered by the Tax Commission or by a federally
11151115 recognized Indian tribe in the State of Oklahoma, and there is a
11161116 lien of record but no certificate of title has been issued, Section
11171117 91A of this title wi ll apply instead of this section.
11181118 3. If personal property otherwise would be covered by this
11191119 section, but the service s were rendered or the property was
11201120 abandoned prior to November 1, 2005, Section 91A of this title will
11211121 apply instead of this section.
11221122 E. A person who knowingly makes a false statement of a material
11231123 fact regarding the furnishing of storage, rental space, material,
11241124 labor or skill for the protection, improvement, safekeeping, towing,
11251125 right to occupy space, storage or carriage thereof in a pro ceeding
11261126 under this section, or attempts to use or uses the provisions of
11271127 this section to foreclose an owner or lienho lder’s interest in a
11281128 vehicle knowing that any of the statements made in the proceeding
11291129 are false, upon conviction, shall be guilty of a fel ony.
11301130 F. Upon receipt of notice of legal proceedings, the Tax
11311131 Commission shall cause the sale process to be put on h old until
11321132 notice of resolution of court proceedings is received from the
11331133 court. If such notice of commencement of court proceedings is not
11341134 filed with the Tax Commission, the possessory lien sale process may
11351135 continue.
11361136 G. No possessory lien sale shall be held on a Sunday.
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11881188 H. For purposes of this section:
11891189 1. “Possession” includes actual posse ssion and constructive
11901190 possession;
11911191 2. “Constructive possession” means possession by a person who,
11921192 although not in actual possession, does not have an intention to
11931193 abandon property, knowingly has both power and the intention at a
11941194 given time to exercise dom inion or control over the property, and
11951195 who holds claim to such thing by virtue of some legal right;
11961196 3. “Lawfully in possession ” means a person has documentation
11971197 from the owner or the owner ’s authorized agent, or an insurance
11981198 company or its authorized age nt, authorizing the furnishing of
11991199 material, labor or storage, or that the property was authorized to
12001200 be towed to a repair facility. If the person lacks such
12011201 documentation, he or she shall not be lawfully in possession of the
12021202 Section 91 Personal Property a nd shall not be entitled to a special
12031203 lien as set forth in this section; and
12041204 4. “Itemized charges” means total parts, total labor, total
12051205 towing fees, total stor age fees, total processing fees and totals of
12061206 any other fee groups, the sum total of which shal l equal the
12071207 compensation claimed.
12081208 I. For purposes of this section, the United States Postal
12091209 Service approved electronic equivalent of proof of return receipt
12101210 requested Form 3811 shall satisfy return receipt requested
12111211 documentation requirements.
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12631263 J. If a person claiming a special lien pursuant to this sect ion
12641264 fails to comply with any of the requirements of this section, any
12651265 interested party may proceed against t he person claiming such lien
12661266 for all damages arising therefrom, including conversion, if the
12671267 article of personal property has been sold. If the not ice or
12681268 notices required by this section shall be shown to be knowingly
12691269 false or fraudulent, the interested p arty shall be entitled to
12701270 treble damages. The prevailing party shall be entitled to all
12711271 costs, including reasonable attorney fees.
12721272 K. This section shall apply to all actions or proceedings that
12731273 commence on or after the effective date of this act.
12741274 SECTION 2. AMENDATORY 42 O.S. 2011, Section 91A, as last
12751275 amended by Section 1, C hapter 183, O.S.L. 2017 (42 O.S. Supp. 20 20,
12761276 Section 91A), is amended to read as follows:
12771277 Section 91A.
12781278 A. 1.
12791279 a. This section applies to all types of person al property
12801280 other than:
12811281 (1) farm equipment as defined in Section 91.2 of this
12821282 title, and
12831283 (2) “Section 91 Personal Property” as defined in
12841284 Section 91 of this title.
12851285 b. This section applies to any vehicle, all -terrain
12861286 vehicle, utility vehicle, manufacture d home,
12871287
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13381338 motorcycle, boat, outboard motor , or trailer that is
13391339 excluded from coverage under subsection A of Section
13401340 91 of this title because the personal property:
13411341 (1) does not have a certificate of title,
13421342 (2) has a certificate of title but does not have a n
13431343 active lien recorded on the certificate of title,
13441344 (3) has a certificate of title that is not issued b y
13451345 the Oklahoma Tax Commission or by a federally
13461346 recognized Indian tribe in the State of Oklahoma,
13471347 or
13481348 (4) is otherwise excluded by subparagraph b of
13491349 paragraph 1 of subsection A of Section 91 of this
13501350 title or subsection D of Section 91 of this
13511351 title.
13521352 c. If personal property has a certificate of title, or
13531353 would be required to have a certificate of title under
13541354 Oklahoma law, and is apparently covered both by this
13551355 section and by Sections 191 through 200 of this title,
13561356 the procedures set out in this section shall apply
13571357 instead of Sections 191 through 200 of this t itle. If
13581358 personal property without a certificate of title and
13591359 not required to be titled under Okla homa law is
13601360 covered both by this section and Sections 191 through
13611361 200 of this title, the procedures set ou t in Sections
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14131413 191 through 200 of this title shall a pply instead of
14141414 this section.
14151415 2. a. Any person who, while lawfully in possession of an
14161416 article of personal property to which this section
14171417 applies, renders any service to the owner thereof by
14181418 furnishing storage, rental space, material, labor or
14191419 skill for the protection, improvement, safekeeping,
14201420 towing, right to occupy space, storage or carriage
14211421 thereof, has a special lien thereon, dependent on
14221422 possession, for the compensation, if any, which is due
14231423 to such person from the owner for such service.
14241424 Charges owed under a contract primarily for the
14251425 purpose of storage or rental of space shall be accrued
14261426 only at the regular periodic rate for storage or
14271427 rental as provided in the contract, adjusted for
14281428 partial periods of storage or rental.
14291429 b. Except for Class class AA licensed wrecker towing
14301430 charges, the special lien shall be subordinate to any
14311431 perfected security inter est unless the claimant
14321432 complies with the requirements of this section.
14331433 Failure to comply with any re quirements of this
14341434 section shall result in denial o f any title
14351435 application and cause the special lien to be
14361436 subordinate to any perfected lien. Upon such denial,
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14881488 the applicant shall be entitled to one resubmission no
14891489 more than two resubmissions of the title application
14901490 within thirty (30) business days of r eceipt of the
14911491 denial, and proceed to comply with the requirements of
14921492 this section. “Failure to comply” includes, but is
14931493 not limited to:
14941494 (1) failure to timely provide additional
14951495 documentation supporting or verifying any entry
14961496 on submitted forms as requeste d by the Tax
14971497 Commission,
14981498 (2) failure to provide the documentation supporting
14991499 lawful possession as out lined in paragraph 3 of
15001500 subsection H of this section,
15011501 (3) claimant being other than the individual who
15021502 provided the service giving rise to the special
15031503 lien, as in subparagraph a of this paragraph,
15041504 (4) claimant not being in possession of the vehicle,
15051505 or
15061506 (5) notification and proceedings not accomplished in
15071507 accordance with subparagraph c of this paragraph,
15081508 and paragraph 3 of this subsection.
15091509 c. Any person claiming a lien under this section shall
15101510 request, within five (5) business days of performing
15111511 any service or work on the property, the Tax
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15631563 Commission or other appropriate license agency to
15641564 furnish the name and address of the current owner of
15651565 and any lienholder upon the property. The Motor
15661566 Vehicle Division of the Tax Commission or appropriate
15671567 license agency shall respond in person or by mail to
15681568 the lien claimant within ten (10) business days of the
15691569 receipt of the request for information. The Tax
15701570 Commission shall render assistance to ascertain
15711571 ownership, if needed. The lien claimant shall send,
15721572 within seven (7) business days of receipt of the
15731573 requested information from the Oklahoma Tax Commission
15741574 or other license agency, a notice of the location of
15751575 the property by certified mail with return receipt
15761576 requested, postage prepaid, to the owner and any
15771577 lienholder of the vehicle at the addresses furnished.
15781578 The lien claimant may charge Twenty Dollars ($20.00)
15791579 for processing plus the cost of postage if the notice
15801580 is timely sent pursuant to the requirements of this
15811581 subparagraph in addition to fees regulated by the
15821582 Oklahoma Corporation Commission for licensed wreckers.
15831583 If the lien claimant is unable to meet the time
15841584 requirements due to a lack of or an altered vehicle
15851585 identification number on the property, the lien
15861586 claimant shall proceed diligently to obtain the proper
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16381638 vehicle identification number and shall meet the time
16391639 requirements on the notice once the vehicle
16401640 identification number is known. If the lien claimant
16411641 is required to send additional notices because of
16421642 change of ownership or lienholder after it has timely
16431643 complied with the requirements of this subparagraph,
16441644 the lien claimant shall remain in compliance if such
16451645 additional notices are sent within the required time
16461646 periods from the date of discovery of the new owners
16471647 or lienholders. The notice shall be in wri ting and
16481648 shall contain, but not be limited to, the following:
16491649 (1) a statement that the notice is a Notice of
16501650 Possessory Lien,
16511651 (2) the complete legal name, phys ical and mailing
16521652 address, and telephone number of the claimant,
16531653 (3) the complete legal name, p hysical and mailing
16541654 address of the person who requested that the
16551655 claimant render service to the owner by
16561656 furnishing material, labor or skill, storage , or
16571657 rental space, or the date the property was
16581658 abandoned if the claimant did not render any
16591659 other service,
16601660 (4) a description of the article of personal
16611661 property, and the complete physical and mailing
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17131713 address of the location of the article of
17141714 personal property,
17151715 (5) the nature of the work, labor or service
17161716 performed, material furnished, or the storage or
17171717 rental arrangement, and the date thereof, and
17181718 written proof of authority to perform the work,
17191719 labor or service provided that, in the case of a
17201720 law enforcement directed t ow, the logbook entry
17211721 prescribed in OAC 595:25 -5-5 or the tow ticket as
17221722 defined by the Corpo ration Commission shall serve
17231723 as written proof of authority,
17241724 (6) the signature of the claimant which shal l be
17251725 notarized and, if applicable, the signature of
17261726 the claimant’s attorney. If the claimant is a
17271727 business, the name of the contact person
17281728 representing the business shall be shown. In
17291729 place of an original signature and notary seal, a
17301730 digital or electroni c signature or seal shall be
17311731 accepted, and
17321732 (7) an itemized statement describing the date or
17331733 dates the labor or services were performed and
17341734 material furnished and the charges claimed for
17351735 each item, the totals of which shall equal the
17361736 total compensation cla imed.
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17881788 The lien claimant shall not be required to send the
17891789 notice required in this subparagraph if the property
17901790 is released to an interested party bef ore the notice
17911791 is mailed and no additional charges or fees continue
17921792 to accrue. If a law enforcement agenc y has the
17931793 property towed to a law enforcement facility, the
17941794 person claiming a lien under this section shall not be
17951795 required to send notice until the p roperty is released
17961796 by law enforcement to the claimant or the date which
17971797 claimant starts charging storage, whichever is
17981798 earlier. A lien claimant shall have an extensi on of
17991799 ten (10) business days to send the notice required in
18001800 this subparagraph if a state of emergency has been
18011801 declared in the county in which the property is
18021802 located.
18031803 d. Subparagraphs b and c o f this paragraph shall not
18041804 apply to salvage pools as defined i n Section 591.2 of
18051805 Title 47 of the Oklahoma Statutes.
18061806 3. The lien may be foreclosed by a sale of such personal
18071807 property upon the notice and in the manner following: The notice
18081808 shall be in writing and shall contain, but not be limited to:
18091809 a. the names of the owner and any other known party or
18101810 parties who may claim any interest in the prope rty,
18111811
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18621862 b. a description of the property to be sold, including a
18631863 visual inspection or a photograph if the pr operty is a
18641864 motor vehicle, and the physical location of the
18651865 property,
18661866 c. the nature of the work, labor or service performed,
18671867 material furnished, or t he storage or rental
18681868 arrangement, and the date thereof, and written proof
18691869 of authority to perform the work , labor or service
18701870 provided. In the case of a law enforcement dir ected
18711871 tow, the logbook entry prescribed in OAC 595:25 -5-5 or
18721872 the tow ticket as defin ed by the Corporation
18731873 Commission, shall serve as written proof of authority,
18741874 d. the time and place of sal e,
18751875 e. the name, telephone number, physical address and
18761876 mailing address of the claimant, and agent or
18771877 attorney, if any, foreclosing such lien. If the
18781878 claimant is a business, then the name of the contact
18791879 person representing the business must be shown. In
18801880 place of an original signature and notary seal, a
18811881 digital or electronic signature or seal shall be
18821882 accepted, and
18831883 f. itemized charges which shall equa l the total
18841884 compensation claimed.
18851885
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19361936 4. a. Such Notice of Sale shall be posted in two public
19371937 places in the county where the property is to be sold
19381938 at least ten (10) days before t he time therein
19391939 specified for such sale, and a copy of the notice
19401940 shall be mailed to the owner and any other party
19411941 claiming any interest in the property, if known, at
19421942 their last-known post office address, by certified
19431943 mail, return receipt requested, at lea st ten (10) days
19441944 before the time therein specified for such sale. If
19451945 the item of personal property is a manufactured home,
19461946 notice shall also be sent by certified mail to the
19471947 county treasurer and to the county assessor of the
19481948 county where the manufactured home is located.
19491949 b. In the case of any item of personal property without a
19501950 certificate of title and not required to be titled
19511951 under Oklahoma law, a party who claims any interest in
19521952 the property shall inclu de all owners of the property;
19531953 any secured party wh o has an active financing
19541954 statement on file with the county clerk of Oklahoma
19551955 County listing one or more owners of the property by
19561956 legal name as debtors and indicating a collateral
19571957 description that would i nclude the property; and any
19581958 other person having an y interest in the personal
19591959 property, of whom the claimant has actual notice.
19601960
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20112011 c. In the case of personal property subject to this
20122012 section for which a certificate of title has been
20132013 issued by any jurisdiction , a party who claims any
20142014 interest in the property s hall include all owners of
20152015 the article of personal property as indicated by th e
20162016 certificate of title; lien debtors, if any, other than
20172017 the owners; any lienholder whose lien is noted on the
20182018 face of the certificate of title; and any other person
20192019 having any interest in the article of personal
20202020 property, of whom the claimant has actual n otice.
20212021 d. When the jurisdiction of titling for a vehicle, all -
20222022 terrain vehicle, motorcycle, boat, outboard motor, or
20232023 trailer that is five (5) model years old or newer, or
20242024 a manufactured home that is fifteen (15) model years
20252025 old or newer, cannot be determin ed by ordinary means,
20262026 the claimant, the agent of the claimant , or the
20272027 attorney of the claimant, shall requ est, in writing,
20282028 that the Oklahoma Tax Commission Motor Vehicle
20292029 Division ascertain the jurisdiction where the vehicle
20302030 or manufactured home is titled. The Oklahoma Tax
20312031 Commission Motor Vehicle Division shall, within
20322032 fourteen (14) days from the date the req uest is
20332033 received, provide information as to the jurisdiction
20342034 where the personal property is titled. If the
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20862086 Oklahoma Tax Commission Motor Vehicle Divi sion is
20872087 unable to provide the information, it shall provide
20882088 notice that the record is not available.
20892089 e. When personal property i s of a type that Oklahoma law
20902090 requires to be titled , the owner of record of that
20912091 property is unknown, and the jurisdiction of t itling
20922092 and owner of record cannot be determined by ordinary
20932093 means and also, if applicable, cannot be deter mined in
20942094 accordance with the preceding subparagraph, then the
20952095 special lien may be foreclosed by publication of a
20962096 legal notice in a legal newspaper in the county where
20972097 the personal property is located, as defined in
20982098 Section 106 of Title 25 of the Oklahoma S tatutes.
20992099 Such notice shall include the description of the
21002100 property by year, make, vehicle identification number
21012101 if available from the property, the n ame of the
21022102 individual who may be contacted for information, and
21032103 the telephone number of that person or the address
21042104 where the vehicle is located. The legal notice shall
21052105 be published once per week for three (3) consecutive
21062106 weeks. As soon as circumstances e xist as described in
21072107 the first sentence of this subparagraph, the first
21082108 date of publication may occur even if the special lien
21092109 has not accrued for over thirty (30) days. The first
21102110
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21612161 date available for public sale of the vehicle is the
21622162 day following publicat ion of the final notice, but no
21632163 fewer than thirty (30) days after the lien has
21642164 accrued. When the owner of record is unknown, the
21652165 Notice of Sale nevertheless must be completed and
21662166 mailed to any known interested party by certified
21672167 mail. For purposes of thi s paragraph, interested
21682168 parties shall include all persons described in
21692169 subparagraph b or subparagraph c of this paragraph,
21702170 whichever is applicable, with the exception of any
21712171 owner who is unknown. Except in circumstances
21722172 described in paragraph 7 of this su bsection that
21732173 provide for a shorter time period, the Notice of Sale
21742174 shall be posted in two public places i n the county
21752175 where the property is to be sold at least ten (10)
21762176 days before the time therein specified for such sale,
21772177 and the Notice of Sale shall not be mailed until at
21782178 least thirty (30) days after the lien has accrued.
21792179 5. The lienor or any other person may in good faith becom e a
21802180 purchaser of the property sold.
21812181 6. Proceedings for foreclosure under this act shall not be
21822182 commenced until thirty (30) d ays after the lien has accrued, except
21832183 as provided elsewhere in Oklahoma law.
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22352235 7. Notwithstanding any oth er provision of law, proce edings for
22362236 foreclosures for the storage of junk veh icles towed and stored
22372237 pursuant to Section 955 of Title 47 of the Oklahom a Statutes by
22382238 Class AA wreckers listed with the Motor Vehicle Division of the
22392239 Department of Public Safety, may be commenced five (5) days after
22402240 the lien has accrued. For purposes of this paragraph, “junk
22412241 vehicles” means any vehicle that is more than ten ( 10) years old if
22422242 the cost of a comparable vehicle would be less than Three Hundred
22432243 Dollars ($300.00) as qu oted in the latest edition of the National
22442244 Automobile Dealers Association Off icial Used Car Guide or latest
22452245 monthly edition of any other nationally re cognized published
22462246 guidebook, adjusting to the condition of the vehicle.
22472247 B. 1.
22482248 a. Any person who is indu ced by means of a check or other
22492249 form of written order for immediate payment o f money
22502250 to deliver up possession of an article of personal
22512251 property on which the person has a special lien
22522252 created by subsection A of this section, which check
22532253 or other written order is dishonored, or is n ot paid
22542254 when presented, shall have a lien for the a mount
22552255 thereof upon the personal property.
22562256 b. The person claiming such l ien shall, within thirty
22572257 (30) days from the date of dishonor of the check or
22582258 other written order for payme nt of money, file in the
22592259
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23102310 office of the county clerk of the county in which the
23112311 property is situated a sworn statement that:
23122312 (1) the check or other wr itten order for immediate
23132313 payment of money, copy thereof being attached,
23142314 was received for labor, material or supplies for
23152315 producing or repairing an article of personal
23162316 property, or for other specific property -related
23172317 services covered by this section,
23182318 (2) the check or other written order was not paid,
23192319 and
23202320 (3) the uttering of the check or other written order
23212321 constituted the means for induci ng the person,
23222322 one possessed of a special lien crea ted by
23232323 subsection A of this section upon the described
23242324 article of personal property, to deliver up the
23252325 article of personal property.
23262326 2. a. Any person who renders service to the owner of an
23272327 article of personal property by furnishing storage,
23282328 rental space, material, labor, or skill for the
23292329 protection, improvement, safekeepi ng, towing, right to
23302330 occupy space, storage , or carriage thereof shall have
23312331 a special lien on such property pursuant to this
23322332 section if such property is removed from the person ’s
23332333
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23842384 possession, without such person’s written consent or
23852385 without payment for such service.
23862386 b. The person claiming such lien shall, within five (5)
23872387 days of such nonauthorized removal, file in the office
23882388 of the county clerk of the county in which the
23892389 property is located, a sworn statement including:
23902390 (1) that services were rendered on or in relation to
23912391 the article of personal property by the person
23922392 claiming such lien,
23932393 (2) that the property was in the possession of the
23942394 person claiming the lien but such property was
23952395 removed without his or her written consent,
23962396 (3) an identifying descriptio n of the article of
23972397 personal property on or in relation to which the
23982398 service was rendered, and
23992399 (4) that the debt for the services rendered on or in
24002400 relation to the article of personal property was
24012401 not paid. Provided, if the unpaid total amount
24022402 of the debt for services rendered on or in
24032403 relation to the article of personal property is
24042404 unknown, an approximated amount of the debt due
24052405 and owing shall be included in the sworn
24062406 statement but such appro ximated debt may be
24072407 amended within thirty (30) days of such fi ling to
24082408
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24592459 reflect the actual amount of the debt due and
24602460 owing.
24612461 3. The enforcement of the lien shall be wit hin sixty (60) days
24622462 after filing the lien in the manner provided by law for enforcing
24632463 the lien of a security agreement and provided that the lien shal l
24642464 not affect the rights of innocent, intervening purchasers without
24652465 notice.
24662466 C. If the person who renders service to the owner of an article
24672467 of personal property to which this section applies rel inquishes or
24682468 loses possession of the article due to circumst ances described in
24692469 subparagraph a of paragraph 1 or subparagraph a of paragraph 2 of
24702470 subsection B of this section, the person claiming the lien s hall be
24712471 entitled to possession of the article until the amount due is paid,
24722472 unless the article is possessed by a person who became a bona fide
24732473 purchaser. Entitlement to possession shall be in accordance with
24742474 the following:
24752475 1. The claimant may take posses sion of an article pursuant to
24762476 this subsection only if the person obligated under the contract for
24772477 services has signed an acknowledgment of receipt of a notice that
24782478 the article may be subject to repossession. The no tice and
24792479 acknowledgment pursuant to this subsection shall be:
24802480 a. in writing and separate fr om the written contract for
24812481 services, or
24822482
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25332533 b. printed on the written contract for services, credit
25342534 agreement or other document which displays the notice
25352535 in bold-faced, capitalized and underlined type, or is
25362536 separated from surrounding written material so as t o
25372537 be conspicuous with a separate signature line;
25382538 2. The claimant may require the person obligated under the
25392539 contract for services to pay the costs of repossessio n as a
25402540 condition for reclaiming the article only to the extent of the
25412541 reasonable fair market v alue of the services required to take
25422542 possession of the article;
25432543 3. The claimant shall not transfer to a third party or to a
25442544 person who performs repossession se rvices, a check, money order, or
25452545 credit card transaction that is received as payment for servic es
25462546 with respect to an article and that is returned to t he claimant
25472547 because of insufficient funds or no funds, because the person
25482548 writing the check, issuing the m oney order, or credit cardholder has
25492549 no account or because the check, money order, or credit ca rd account
25502550 has been closed. A person violating this pa ragraph shall be guilty
25512551 of a misdemeanor; and
25522552 4. An article that is repossessed pursuant to this subsect ion
25532553 shall be promptly delivered to the locati on where the services were
25542554 performed. The article shall remain at the services location at all
25552555 times until the article is lawfully returned to the record owner or
25562556 a lienholder or is disposed of pursuant to this section.
25572557
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26082608 D. 1. This section applies if a v ehicle, all-terrain vehicle,
26092609 manufactured home, mot orcycle, boat, outboard motor , or trailer has
26102610 a certificate of title issued by the Tax Commission or by a
26112611 federally recognized Indian tribe in Oklahoma, but th ere is no
26122612 active lien recorded on the certific ate of title.
26132613 2. This section applies if a vehicle , all-terrain vehicle,
26142614 utility vehicle, motorcycle, boat, outboard motor or trailer has a
26152615 certificate of title issued by the Tax Commission or by a federally
26162616 recognized Indian tribe in Oklahoma, and there is an active lien
26172617 recorded on the certificate of ti tle, but the lien is over fifteen
26182618 (15) years old.
26192619 3. This section applies if personal property to which Section
26202620 91 of this title otherwise would apply has b een registered by the
26212621 Tax Commission or by a fed erally recognized Indian tribe in the
26222622 State of Oklahoma, and there is a lien of record but no certific ate
26232623 of title has been issued.
26242624 4. This section applies if personal property to which Section
26252625 91 of this title otherwise would apply has not been registere d by
26262626 either the Tax Commission or a federally recog nized Indian tribe in
26272627 the State of Oklahoma, and n o certificate of title has been issued,
26282628 but there is a lien of record.
26292629 5. This section applies to person al property that otherwise
26302630 would be covered by Sec tion 91 of this title, except that the
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26822682 services were rendered or the property was abandoned prior to
26832683 November 1, 2005.
26842684 6. This section applies to a vehicle, all -terrain vehicle,
26852685 utility vehicle, manufactu red home, motorcycle, boat, outboard
26862686 motor, or trailer for which ownership cannot be determined by
26872687 ordinary means or by the Oklahoma Tax Commission Mo tor Vehicle
26882688 Division, as provided in subparagraphs d and e of paragraph 4 of
26892689 subsection A of this section, as applicable.
26902690 7. This section applies to items o f personal property that are
26912691 not required by Oklaho ma law to be titled, and that do not have a
26922692 certificate of title.
26932693 8. This section applies to salvage pools as defined in Section
26942694 591.2 of Title 47 of t he Oklahoma Statutes.
26952695 9. This section applies to Class AA licensed wrecker services
26962696 taking possession of a vehicle pursuant to an agreement with, or at
26972697 the direction of, or dispatched by a state or local law enforcement
26982698 or government agency, or pursuant to the abandoned vehicle removal
26992699 provisions of Section 954A of Title 47 of the Oklahoma Statutes with
27002700 respect to all types of personal property, regar dless of whether
27012701 that personal property has a certificate of title.
27022702 10. For a vehicle abandoned at a sal vage pool, if the cost of
27032703 repairing the vehicle for saf e operation on the highway does not
27042704 exceed sixty percent (60%) of the fair market value of the vehicle
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27562756 as defined in Section 1111 of Title 47 of the Oklahoma Statutes, a
27572757 salvage title shall not be requ ired.
27582758 E. A person who knowingly makes a false statemen t of a material
27592759 fact regarding the furnishing of st orage, rental space, material,
27602760 labor or skill for the protection, improvement, safekeeping, towing,
27612761 right to occupy space, storage or carriage thereo f in a proceeding
27622762 under this section, or attempts to use or uses the provisions of
27632763 this section to foreclos e an owner or lienholder ’s interest in a
27642764 vehicle knowing that any of the statements made in the proceeding
27652765 are false, upon conviction, shall be guilt y of a felony.
27662766 F. Upon receipt of notice of legal proce edings, the Tax
27672767 Commission shall cause the sale pro cess to be put on hold until
27682768 notice of resolution of court proceedings is received from the
27692769 court. If such notice of commencement of court proceedi ngs is not
27702770 filed with the Tax Commission, the possessory lien sale process may
27712771 continue.
27722772 G. No possessory lien sale shall be held on a Sunday.
27732773 H. For purposes of this section:
27742774 1. “Possession” includes actual possession and constructive
27752775 possession;
27762776 2. “Constructive possession ” means possession by a person who ,
27772777 although not in actual possession, does not have an intention to
27782778 abandon property, know ingly has both power and the intention at a
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28302830 given time to exercise dominion or control over the property, and
28312831 who holds claim to such thing by virtue of some legal rig ht;
28322832 3. “Lawfully in possession” means a person has documentation
28332833 from the owner or the owner’s authorized agent, or an insurance
28342834 company or its authorized agent, authorizing the furnishing of
28352835 material, labor or storage, or that the property was authorized to
28362836 be towed to a repair facility.
28372837 Class AA wrecker services taking possession of a veh icle
28382838 pursuant to an agreement with, or at the direction of, or dispatched
28392839 by, a state or local law enforce ment or government agency, or
28402840 pursuant to the abandoned vehicle removal provisions of Section 954A
28412841 of Title 47 of the Oklahoma Statutes, shall be cons idered lawfully
28422842 in possession of the vehicle. If the person lacks such
28432843 documentation, the procedures esta blished by this section shall not
28442844 apply; and
28452845 4. “Itemized charges” means total parts, total labor, total
28462846 towing fees, total storage fees, total proc essing fees and totals of
28472847 any other fee groups, the sum total of which shall equal the
28482848 compensation claimed.
28492849 I. For purposes of this section, the United States Postal
28502850 Service approved electronic equivalent of proof of re turn receipt
28512851 requested Form 3811 s hall satisfy return receipt requested
28522852 documentation requirements.
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29042904 J. If a person claiming a special lien pursuant to this section
29052905 fails to comply with any of the requirem ents of this section, any
29062906 interested party may proc eed against the person claiming s uch lien
29072907 for all damages arising therefrom, including conversion, if the
29082908 article of personal property has been sold. If the notice or
29092909 notices required by this section shal l be shown to be knowingly
29102910 false or fraudulent, the interested party shall be entitl ed to
29112911 treble damages. The prevailing party shall be entitled to all
29122912 costs, including reasonable attorney fees.
29132913 K. Any interested party shall be permitted to visually insp ect
29142914 and verify the services rendered by the claiman t prior to the sale
29152915 of the article of property during normal business hours. If the
29162916 claimant fails to allow any interested party to inspe ct the
29172917 property, the interested party shall mail a request for insp ection
29182918 by certified mail, return receipt requested, to the claimant.
29192919 Within three (3) business days of receipt of the request for
29202920 inspection, the claimant shall mail a photograph of the pr operty, by
29212921 certified mail, return receipt requested, and a date of inspection
29222922 within five (5) business days from the d ate of the notice to
29232923 inspect. The lienholder shall be allowed to retrieve the property
29242924 without being required to bring the title into the lienholder’s
29252925 name, if the lienholder provides proof it is a lienho lder and any
29262926 payment due the claimant for lawful ch arges where the claimant has
29272927 complied with this section. Upon the release of personal property
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29792979 to an insurer or representative of the ins urer, wrecker operators
29802980 shall be exempt from all liability and shal l be held harmless for
29812981 any losses or claims of loss . In the event any law enforcem ent
29822982 agency places a hold on the property, the party wanting to inspect
29832983 or photograph the property shall ob tain permission from the law
29842984 enforcement agency that placed the hol d on the property before
29852985 inspecting or photographin g.
29862986 L. This section shall apply to all actions or proceedings that
29872987 commence on or after the effective date of this act.
29882988 SECTION 3. This act shall become effective November 1, 20 21.
29892989
29902990 58-1-1298 TEK 1/21/2021 7:48:27 PM