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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1848 By: Kerbs
AS INTRODUCED
An Act relating to the Uniform Commercial Code;
amending 12A O.S. 2021, Section 1 -9-320.6, as amended
by Section 1, Chapter 109, O.S.L. 20 22 (12A O.S.
Supp. 2022, Section 1-9-320.6) which relates to
central filing system for farm products; requiring
certain information related to identit y of debtors;
and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA:
SECTION 1. AMENDATORY 12 A O.S. 2021, Section 1 -9-320.6,
as amended by Section 1, Chap ter 109, O.S.L. 2022 (12A O.S. Supp.
2022, Section 1-9-320.6), is amended to read as follows:
Section 1-9-320.6 CENTRAL FILING SYSTEM R ELATING TO FARM
PRODUCTS
(1) The Secretary of State shall be responsible for developing
and implementing the central filing system. This responsibility
shall include obtaining the necessary certification for the system
from the United States Department o f Agriculture ("USDA"). The
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effective date for the implementation of the central filing system
was October 24, 1988.
(2) The Secretary of State may promulgate, in accordance with
the applicable provisions of the Administrative Procedures Act,
appropriate rules for the implementation and operation of the
central filing system.
(3) The Office of Management and Enterprise Services shall
assist the Secretary of State in developing and implementing the
central filing system.
(4) The central filing system sha ll conform to the following
requirements:
(a) The Secretary of State shall record the date and hour
of the filing of each effective financing statement;
(b) The Secretary of State shall compile all effective
financing statements into a master list:
(i) organized according to farm products;
(ii) arranged within each such product:
(A) in alphabetical order according to the last
name of the individual debtors or, in the
case of debtors doing business other than as
individuals, the first word in the name of
the debtors;
(B) in numerical order according to the Social
Security number of the individual debtors
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or, in the case of debtors doing business
other than as individuals, the Internal
Revenue Service taxpayer identification
number of the debtors;
(C) geographically by county produced; and
(D) by crop year; and
(iii) containing the information provided for in
subparagraph (iv) of paragraph (d) of Section 1 -
9-320.2 of this title;
(iv) portions of the master list shall be available in
hard copy, electronic for mats, or via Internet
download, and may be organized by other sorting
methods in addition to the methods listed above.
The lien search database shall allow for the
search of at least the last six (6) digits of a
Social Security number or shall create a uni que
identifying number for individuals in the
database.
(c) The Secretary of State shall maintain records of all
buyers of farm products, commission merchants, selling
agents and others who register with the Secretary of
State, on a form containing:
(i) the name and address of each registrant;
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(ii) the information on the farm product or products
that the registrant is requesting;
(iii) the name of each county where the product is
produced or to be produced, or a blanket code
covering all seventy -seven (77) counties of this
state; and
(iv) an authorized signature.
(d) (i) A copy of those portions of the master list
covering the information requested by a
registrant shall be distributed to such
registrants by the Secretary of State on or
before the last busine ss day of each month and
shall be presumed to have been receiv ed by the
third business day of the following month.
(ii) Registrants shall be deemed to be registered only
as to those portions of the master list for which
they register, and shall be deemed to h ave failed
to register and shall not be considered to be
registrants as to those portions for which they
do not register.
(iii) Registrants are subject only to se curity
interests shown on the portions of the master
list which they receive as a consequence of
registration with the Secretary of State.
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(iv) If a particular security interest is shown on the
master list, but was included since the last
regular distribution of portions of the master
list to registrants, registrants shall not be
subject to that security interest;
(e) The duration of the registration with the Secretary of
State of a buyer of farm products, commission
merchant, selling agent or other registr ant shall be
one (1) year from the effective date of the
registration with the Secretary of St ate.
(f) (i) Upon request, within twenty -four (24) hours of
any inquiry, for information, the Secretary of
State shall provide verbal confirmation of the
existence or nonexistence of any effective
financing statement on file. By the close of the
business day following the day on which the
request was received, wr itten confirmation of the
existence of an effective financing statement
will be provided to buyers of f arm products,
commission merchants, and selling agents who have
not registered, and others who request it.
(ii) The state or political subdivision shall not be
liable if a loss or claim results from any
confirmation of the existence or nonexistence of
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any effective financing statement on file in the
Office of the Secretary of State made in good
faith by an employee of the Office of the
Secretary of State a s required by the provisions
of this section.
(5) The filing in the office of the Secretary of State u nder
this section shall be in addition to the filing requirements
provided for in this article .
(6) A financing or continuation statement covering farm
products that has not lapsed and which was filed pursuant to this
title between December 23, 1986, and October 24, 1988, inclusive,
and for which no written notice was furnished as provided in Sect ion
1-9-320.7 of this title, shall become ineffective as to a buyer of
farm products, commission merchant or selling agent, unless the
secured party files an effe ctive financing statement in the office
of the Secretary of State.
(7) An effective financing statement shall not be deemed filed
in accordance with the provisions of this section until all fees
authorized by Section 111 of Title 28 of the Oklahoma Statut es
relating to the filing of the statement are tendered to the
Secretary of State.
(8) The secured party shall file a termination statement within
twenty (20) days after there is no outstanding secured obligation
or commitment to make advances, incur obl igations or otherwise give
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value. The secured party shall not be required to file a
termination statement if the debtor, in writing, addressed to the
secured party, requests that a termination not be filed. The
request shall be signed by the debtor or an authorized
representative and the request may be made at any time prior to the
expiration date of an effective financing statement set forth
herein. If the affected secured party fails to file a termination
statement as required by this subsection, the p arty shall be liable
to the Secretary of State for Five Hundred Dollars ($500.00). In
addition the affected secured party shall be liable to the debtor
for any loss caused to the debtor by the failure to terminate the
effective financing statement.
(9) The Attorney General shall be responsible for enforcing the
provisions of subsection (8) of thi s section on behalf of the
Secretary of State and is author ized to take appropriate actions to
collect any penalties owed to the Secretary of State pursuant to
subsection (8) of this section. When collected, the Attorney
General shall cause the penalty to be deposited into the Central
Filing System Revolving Fund created pursuant to Section 276.3 of
Title 62 of the Oklahoma Statutes.
SECTION 2. This act shall become effective November 1, 2023.
59-1-5723 MAH 01/12/23