Oklahoma 2023 Regular Session

Oklahoma House Bill HB2776 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB2776 HFLR Page 1
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31	28		STATE OF OKLAHOMA
32	29
33	30		1st Session of the 5 9th Legislature (2023)
34	31
35	32		HOUSE BILL 2776 By: McCall
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41	38		AS INTRODUCED
42	39
43	40		An Act relating to the Uniform Commercial Code;
44	41		amending 12A O.S. 2021, Sections 1-201, 1-204, 1-301
45	42		and 1-306, which relate to General Provisions of the
46	43		Uniform Commercial Code ; clarifying scope of certain
47	44		definitions; adding definitions; providing statutory
48	45		references; replacing certain term with new term;
49	46		amending 12A O.S. 2021, Section s 2-102, 2-106, 2-201,
50	47		2-202, 2-203, 2-205 and 2-209, which relate to sales;
51	48		deleting exception to the applicability of
52	49		transactions in goods; providing for the
53	50		applicability of hybrid transactions; providing
54	51		exceptions to applicability provision; defining term;
55	52		replacing certain term with new term; adding signed
56	53		records to certain exception; amending 12A O.S. 2021,
57	54		Sections 2A-102, 2A-103, 2A-107, 2A-201, 2A-202, 2A-
58	55		203, 2A-205 and 2A-208, which relate to leases;
59	56		expanding scope of leases to include hybrid leases;
60	57		providing guidelines for hybrid leases; making
61	58		Article 2A applicable if lease-of-goods aspects
62	59		predominate; adding definition; replacing certain
63	60		term with new term; amending 12A O.S. 2021, Sections
64	61		3-104, 3-105, 3-401 and 3-604, which relate to
65	62		negotiable instruments; expanding scope of certain
66	63		definitions; deleting certain requirements for when a
67	64		signature may be made; affirming obligation of party
68	65		to pay check despite its destruction; deleting
69	66		certain defined term; amending 12A O.S. 2021,
70	67		Sections 4A-103, 4A-201, 4A-202, 4A-203, 4A-207, 4A-
71	68		208, 4A-210, 4A-211 and 4A-305, which relate to funds
72	69		transfers; modifying scope of certain definitions;
73	70		clarifying bank's obligations concerning security
74	71		procedures; requiring express agreement be evidenced
75	72		by a record; replacing certain term with new term;
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77		-	HB2776 HFLR Page 2
78		-	BOLD FACE denotes Committee Amendments. 1
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103	73		deleting references to electronically transmitted
104	74		notices or communications; amending 12A O.S. 2021,
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105	101		Sections 5-104 and 5-116, which relate to letters of
106	102		credit; providing for the issuance of letter of
107	103		credit by signed record; deleting authentication
108	104		requirements; deleting statutory reference;
109	105		clarifying jurisdiction of bank's branches; amending
110	106		12A O.S. 2021, Section s 7-102 and 7-106, which relate
111	107		to documents of title; deleting certain defined term;
112	108		clarifying requirements for controlling electronic
113	109		documents of title; providing for exclusivity of
114	110		power; making power nonshareable and nonexclusive
115	111		under certain circumstances; providing circumstances
116	112		when a person has control of an electr onic document
117	113		of title; providing for the acknowledgment of control
118	114		of electronic documents of title; amending 12A O.S.
119	115		2021, Sections 8-102, 8-103, 8-106, 8-110 and 8-303,
120	116		which relate to investment securities; modifying
121	117		scope of certain definitions; providing statutory
122	118		references; declaring certain accounts and records as
123	119		not a financial asset; providing an exception;
124	120		stating circumstances when a purchaser has control of
125	121		a security entitlement; providing for the
126	122		acknowledgment of control on behalf of a purchaser;
127	123		declaring the law that governs jurisdiction;
128	124		modifying scope of certain definition; amending 12A
129	125		O.S. 2021, Sections 1-9-102, 1-9-104, 1-9-105, 1-9-
130	126		203, 1-9-204, 1-9-207, 1-9-208, 1-9-209, 1-9-210, 1-
131	127		9-301, 1-9-304, 1-9-305, 1-9-310, 1-9-312, 1-9-313,
132	128		1-9-314, 1-9-316, 1-9-317, 1-9-323, 1-9-324, 1-9-330,
133	129		1-9-331, 1-9-332, 1-9-334, 1-9-341, 1-9-404, 1-9-406,
134	130		1-9-408, 1-9-509, 1-9-513, 1-9-601, 1-9-605, 1-9-608,
135	131		1-9-611, 1-9-613, 1-9-614, 1-9-615, 1-9-616, 1-9-619,
136	132		1-9-620, 1-9-621, 1-9-624 and 1-9-628, which relate
137	133		to secured transactions; modifying scope of certain
138	134		definitions; deleting and adding definitions;
139	135		providing statutory references; replacing certain
140	136		term with new term; expanding requirements for
141	137		secured parties to control depo sit accounts;
142	138		clarifying requirements for establishing control of
143	139		electronic chattel paper; stating manner by which a
144	140		system may satisfy certain requirements; providing
145	141		for the exclusivity of power under certain
146	142		circumstances; providing exceptions; presuming powers
147	143		to be exclusive under certain circumstance ; providing
148	144		control to purchaser if certain conditions are met;
149	145		providing circumstances where a person has control of
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151		-	HB2776 HFLR Page 3
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177	146		electronic money; providing for exclusivity of powers
178	147		under certain circumstances; providing exceptions;
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179	174		presuming powers to be e xclusive under certain
180	175		circumstances; stating when a secured party has
181	176		control of a controlla ble electronic record ,
182	177		controllable account or controllable payme nt
183	178		intangible; allowing person with specific control to
184	179		deny acknowledgment of said control; modifying
185	180		certain conditions to include controllable accounts,
186	181		controllable electronic records, controllable payment
187	182		intangibles, documents and electr onic money;
188	183		providing statutory references; declaring chattel
189	184		paper as collateral; providing for the attachment of
190	185		security interests; modifying procedures for
191	186		responding to signed demand by a debtor; clarifying
192	187		jurisdiction requirement; declaring bank's
193	188		jurisdiction even if transaction bears no relation to
194	189		bank's jurisdiction; providing additional exception
195	190		to certain rules; providing guidelines for
196	191		determining the jurisdiction of chattel paper;
197	192		establishing rules for determining jurisdiction;
198	193		providing circumstances when local law governs
199	194		jurisdiction; stating that filing is required to
200	195		perfect security interest; allowing perfection of a
201	196		security interest by taking possession or control of
202	197		collateral; providing time limitation s; providing for
203	198		perfection by possession and control of chattel
204	199		paper; providing time limitations for perfected
205	200		security interests; stating circumstances that allow
206	201		buyers of chattel paper, electronic documents,
207	202		controllable electronic records, controllable
208	203		accounts or controllable payment inta ngibles to take
209	204		free of security interests; clarifying exception s for
210	205		buyers of goods; specifying when security interests
211	206		have priority over conflicting security interests;
212	207		specifying circumstances when a purchaser of chattel
213	208		paper has priority over security interests in the
214	209		chattel paper; declaring when purchaser of chattel
215	210		paper or instrument has knowledge that purchase
216	211		violates rights of the secured party; stating rights
217	212		of holders and purchasers; modifying procedures for
218	213		transferring money; clarifying reference s to
219	214		promissory note; excepting certain provisions from
220	215		controllable account or controllable payment
221	216		intangible; stating duties of secured party; deleting
222	217		certain forms; creating Notification of Disposition
223	218		of Collateral form; providing instructions for form;
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225		-	HB2776 HFLR Page 4
226		-	BOLD FACE denotes Committee Amendments. 1
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251	219		creating Notice of Plan to Sell Property form;
252	220		providing instructions for for m; clarifying scope of
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253	247		certain definitions; making certain provisions
254	248		inapplicable to limiting the liability of a secured
255	249		party; creating new article for the Uniform
256	250		Commercial Code to be named Controllable Electr onic
257	251		Records; defining terms; declaring which article
258	252		controls if conflict exists; providing applicability
259	253		provision; stating rights of pur chaser of
260	254		controllable account , controllable payment int angible
261	255		and controllable electronic record ; stating how
262	256		qualifying purchaser acquires its rights; providing
263	257		limitations on actions against qualified purchaser;
264	258		providing restriction on notice of claims; declaring
265	259		when a person has control of a controllable
266	260		electronic record; stating exclusivity of powers
267	261		under certain circumstan ces; declaring when powers
268	262		are nonexclusive; making powers presumptive under
269	263		certain circumstances; providing additional
270	264		circumstances for when a person has control of a
271	265		controllable electronic record; providing procedures
272	266		for account debtors discharging their obligations;
273	267		providing restrictions on dis charging obligations;
274	268		making notifications ineffective under certain
275	269		circumstances; requiring certain proof if requested
276	270		by account debtor; providing circumstances that show
277	271		reasonable proof has been furnished; prohibiting
278	272		waiver or varying of rights; making provisions
279	273		subject to other laws; providing jurisdiction for
280	274		controllable electronic records; stating rules for
281	275		determining jurisdiction; declaring governing laws
282	276		for certain matters; defining term; providing for
283	277		rights to be governed under certain applicable law;
284	278		creating new article for the Uniform Commercial Code
285	279		to be named Transitional Provisions for Uniform
286	280		Commercial Code Amendments (2022); defining terms;
287	281		providing for the termination of transactions;
288	282		providing for the applicability of certain articles
289	283		to transactions, liens or other interests in
290	284		property; declaring the validity of transactions,
291	285		liens or other interest in property on and after
292	286		certain date; making exception to applicability
293	287		provision; declaring previously perfected security
294	288		interest as perfected after certain date; providing
295	289		guidelines for enforceable and perfected security
296	290		interest when requirements ther efor are not
297	291		satisfied; declaring status of en forceable security
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299		-	HB2776 HFLR Page 5
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325	292		interest that is unperfecte d on certain date; stating
326	293		certain actions as ef fective to perfect a security
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327	320		interest; providing for the ef fectiveness of
328	321		financing statement for perfecting a security
329	322		interest; providing for the sufficiency of taking an
330	323		action before certain date; providing guidelines for
331	324		determining priority of claims to collateral;
332	325		providing statutory reference for determining
333	326		priority of conflicting claims; stating which
334	327		articles and statutes apply when determining
335	328		priority; providing for codification; and providing
336	329		an effective date.
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343	336		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
344	337		SECTION 1. AMENDATORY 12A O.S. 2021, Sect ion 1-201, is
345	338		amended to read as follows:
346	339		Section 1-201.
347	340		General Definitions and Principles of Interpretation.
348	341		(a) Unless the context otherwise requires , words or phrases
349	342		defined in this section, or in the additional definitions contained
350	343		in other articles of the Uniform Commercial Code that apply to
351	344		particular articles or parts thereof, have the meanings stated.
352	345		(b) Subject to definitions contained in other articles of the
353	346		Uniform Commercial Code that apply to particular articles or parts
354	347		thereof:
355	348		(1) "Action" in the sense of a judicial proceeding includes a
356	349		recoupment, counterclaim, setoff, suit in equity, and any other
357	350		proceedings in which rights are determined.
358	351
359		-	HB2776 HFLR Page 6
360		-	BOLD FACE denotes Committee Amendments. 1
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385	377		(2) "Aggrieved party" means a party entitled to pursue a
386	378		remedy.
387	379		(3) "Agreement", as distinguished from "contract", means the
388	380		bargain of the parties in fact as found in their language or
389	381		inferred from other circumstances including course of performance,
390	382		course of dealing, or usage of trade as provided in Section 1 -303 of
391	383		this title.
392	384		(4) "Bank" means a person engaged in the business of banking
393	385		and includes a savings bank, savings and loan association, credit
394	386		union, and trust company .
395	387		(5) "Bearer" means a person in control of a negotiable
396	388		electronic document of title or a person in possession of an
397	389		instrument, negotiable tangible document of title, or certificated
398	390		security payable to bearer or endorsed in blank.
399	391		(6) "Bill of lading" means a document of title evidencing the
400	392		receipt of goods for shipment issued by a person engaged in t he
401	393		business of directly or indirectly transporting or forwarding goods .
402	394		The term does not include a warehouse receipt.
403	395		(7) "Branch" includes a separately incorpor ated foreign branch
404	396		of a bank.
405	397		(8) "Burden of establishing " means the burden of persuading the
406	398		trier of fact that the existence of the fact is more probable than
407	399		its nonexistence.
408	400
409		-	HB2776 HFLR Page 7
410		-	BOLD FACE denotes Committee Amendments. 1
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435	426		(9) "Buyer in ordinary course of business " means a person that
436	427		buys goods in good faith, without knowledge that the sale violates
437	428		the rights of another person in the goods, and in the ordinary
438	429		course from a person, other than a pawnbroker, in the business of
439	430		selling goods of that kind. A person buys goods in the ordinary
440	431		course if the sale to the person comports with the usual or
441	432		customary practices in the kind of bus iness in which the seller is
442	433		engaged or with the seller 's own usual or customary practices. A
443	434		person that sells oil, gas, or other minerals at the wellhead or
444	435		minehead is a person in the business of selling goods of that kind.
445	436		A buyer in ordinary course of business may buy for cash, by exchange
446	437		of other property, or on secured or unsecured credit, and may
447	438		acquire goods or documents of title under a preexisting cont ract for
448	439		sale. Only a buyer that takes possession of the goods or has a
449	440		right to recover the goods from the seller under Article 2 may be a
450	441		buyer in ordinary course of business. "Buyer in ordinary course of
451	442		business" does not include a person that acquires goods in a
452	443		transfer in bulk or as security for or total or partial satisfaction
453	444		of a money debt.
454	445		(10) "Conspicuous", with reference to a term means so written,
455	446		displayed, or presented that, based on the totality of the
456	447		circumstances, a reasonable person against whom it is to operate
457	448		ought to have noticed it. Whether a term is "conspicuous" or not is
458	449		a decision for the court. Conspicuous terms include the following:
459	450
460		-	HB2776 HFLR Page 8
461		-	BOLD FACE denotes Committee Amendments. 1
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486	476		(A) a heading in capitals equal to or greater in size than
487	477		the surrounding text, or in contrasting type, font, or
488	478		color to the surrounding text of same or lesser size;
489	479		and
490	480		(B) language in the body of a record or display in l arger
491	481		type than the surrounding text of the same size, or
492	482		set off from surrounding tex t of the same size by
493	483		symbols or other marks that call attention to the
494	484		language.
495	485		(11) "Consumer" means an individual who enters int o a
496	486		transaction primarily for persona l, family, or household purposes.
497	487		(12) "Contract", as distinguished from "agreement", means the
498	488		total legal obligation that results from the parties' agreement as
499	489		determined by the provisions of the Uniform Commercial Code as
500	490		supplemented by any other applicable laws.
501	491		(13) "Creditor" includes a general creditor, a secured
502	492		creditor, a lien creditor, and any representative of creditors,
503	493		including an assignee for the benefit of creditors, a trustee in
504	494		bankruptcy, a receiv er in equity, and an executor or admi nistrator
505	495		of an insolvent debtor 's or assignor's estate.
506	496		(14) "Defendant" includes a person in the position of defenda nt
507	497		in a counterclaim, cross-claim, or third-party claim.
508	498		(15) "Delivery", with respect to an electronic document of
509	499		title, means voluntary transfer of control and , with respect to an
510	500
511		-	HB2776 HFLR Page 9
512		-	BOLD FACE denotes Committee Amendments. 1
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518	507		7
519	508		8
520	509		9
521	510		10
522	511		11
523	512		12
524	513		13
525	514		14
526	515		15
527	516		16
528	517		17
529	518		18
530	519		19
531	520		20
532	521		21
533	522		22
534	523		23
535	524		24
536	525
537	526		instrument, a tangible document of title, or an authoritative
538	527		tangible copy of a record evidencing chattel paper means voluntary
539	528		transfer of possession.
540	529		(16) "Document of title" means a record that in the regular
541	530		course of business or financing is treated as adequa tely evidencing
542	531		that the person in possession or control of the record is entitled
543	532		to receive, control, hold, and dispose of the record and the goods
544	533		the record covers and that purports to be issued by or addressed to
545	534		a bailee and to cover goods in the bai lee's possession which are
546	535		either identified or are fungible p ortions of an identified mass.
547	536		The term includes a bill of lading, transport document, dock
548	537		warrant, dock receipt, warehouse receipt, and order for delivery of
549	538		goods. An electronic document of title means a document of ti tle
550	539		evidenced by a record consist ing of information stored in an
551	540		electronic medium. A tangible document of title means a document of
552	541		title evidenced by a record consisting of information that is
553	542		inscribed on a tangible medium.
554	543		(16A) "Electronic" means relating to technology having
555	544		electrical, digital, magnetic, wireless, optical, electromagnetic ,
556	545		or similar capabilities.
557	546		(17) "Fault" means a default, breach, or wrongful act or
558	547		omission.
559	548		(18) "Fungible goods" means:
560	549
561		-	HB2776 HFLR Page 10
562		-	BOLD FACE denotes Committee Amendments. 1
	550	+	Req. No. 6221 Page 10 1
563	551		2
564	552		3
565	553		4
566	554		5
567	555		6
568	556		7
569	557		8
570	558		9
571	559		10
572	560		11
573	561		12
574	562		13
575	563		14
576	564		15
577	565		16
578	566		17
579	567		18
580	568		19
581	569		20
582	570		21
583	571		22
584	572		23
585	573		24
586	574
587	575		(A) goods of which any unit, by nature or usage of trade,
588	576		is the equivalent of any other like unit; or
589	577		(B) goods that by agreement are treated as equivalent.
590	578		(19) "Genuine" means free of forgery or counterfeiting.
591	579		(20) "Good faith", except as otherwise provided in Article 5 of
592	580		this title, means honesty in fact and the observance of reasonable
593	581		commercial standards of fair dealing .
594	582		(21) "Holder" means:
595	583		(A) the person in possession of a negotiable instrument
596	584		that is payable either to bearer or to an identified
597	585		person that is the person in possession;
598	586		(B) the person in possessi on of a document of title if the
599	587		goods are deliverable either to bearer or to the orde r
600	588		of the person in possession; or
601	589		(C) the person in control , other than pursuant to
602	590		subsection (g) of Section 7-106 of this title, of a
603	591		negotiable electronic document of title.
604	592		(22) "Insolvency proceeding" includes any assignment for the
605	593		benefit of creditors or other proceeding intended to liquidate or
606	594		rehabilitate the estat e of the person involved.
607	595		(23) "Insolvent" means:
608	596		(A) having generally ceased to pay debts in the ordinary
609	597		course of business other than as a result of bona fide
610	598		dispute;
611	599
612		-	HB2776 HFLR Page 11
613		-	BOLD FACE denotes Committee Amendments. 1
	600	+	Req. No. 6221 Page 11 1
614	601		2
615	602		3
616	603		4
617	604		5
618	605		6
619	606		7
620	607		8
621	608		9
622	609		10
623	610		11
624	611		12
625	612		13
626	613		14
627	614		15
628	615		16
629	616		17
630	617		18
631	618		19
632	619		20
633	620		21
634	621		22
635	622		23
636	623		24
637	624
638	625		(B) being unable to pay debts as they become due ; or
639	626		(C) being insolvent within the meaning of the federal
640	627		bankruptcy law.
641	628		(24) "Money" means a medium of exchange that is authorized or
642	629		adopted by a domestic or foreign government. The term includes a
643	630		monetary unit of account established by an intergovernmental
644	631		organization or by agreement betwee n two or more countries. The
645	632		term does not include an electronic re cord that is a medium of
646	633		exchange recorded and transferable in a system that existed and
647	634		operated for the medium of exchange before the medi um of exchange
648	635		was authorized or adopted by the government.
649	636		(25) "Organization" means a person other than an individual .
650	637		(26) "Party", as distinguished from "third party", means a
651	638		person who has engaged in a transaction or made an agreement subject
652	639		to the Uniform Commercial Code.
653	640		(27) "Person" means an individual, corporation, business trust,
654	641		estate, trust, partnership, limited liabili ty company, association,
655	642		joint venture, government, governmental subdivision, agency, or
656	643		instrumentality, public corporation, or any other legal or
657	644		commercial entity. The term includes a protected series, however
658	645		denominated, of an ent ity if the protected series is established
659	646		under law other than the Uniform Commercial Code that limits, or
660	647		limits if conditions specified un der the law are satisfied, the
661	648		ability of a creditor of the entity or of any other protected series
662	649
663		-	HB2776 HFLR Page 12
664		-	BOLD FACE denotes Committee Amendments. 1
	650	+	Req. No. 6221 Page 12 1
665	651		2
666	652		3
667	653		4
668	654		5
669	655		6
670	656		7
671	657		8
672	658		9
673	659		10
674	660		11
675	661		12
676	662		13
677	663		14
678	664		15
679	665		16
680	666		17
681	667		18
682	668		19
683	669		20
684	670		21
685	671		22
686	672		23
687	673		24
688	674
689	675		of the entity to satisfy a claim f rom assets of the protect ed
690	676		series.
691	677		(28) "Present value" means the amount as of a date certain of
692	678		one or more sums payable in the fu ture, discounted to the date
693	679		certain by use of either an interest rate specified by the parties
694	680		if that rate is not manifes tly unreasonable at the t ime the
695	681		transaction is entered into or, if an interest rate is not so
696	682		specified, a commercially reasonable r ate that takes into account
697	683		the facts and circumstances at the time the transaction is entered
698	684		into.
699	685		(29) "Purchase" means taking by sale, discount , negotiation,
700	686		mortgage, pledge, lien, security interest, issue or reissue, gift,
701	687		or any other voluntary tra nsaction creating an interest in property.
702	688		(30) "Purchaser" means a person who takes by purchase.
703	689		(31) "Record" means information that is inscribe d on a tangible
704	690		medium or that is stored in an electronic or other medium and is
705	691		retrievable in perceivable form.
706	692		(32) "Remedy" means any remedial right to which an aggrieved
707	693		party is entitled with or without resort to a tribunal.
708	694		(33) "Representative" means a person empowered to act for
709	695		another, including an agent, an officer of a corporation or
710	696		association, and a trustee, executor, or administrator of an estate.
711	697		(34) "Right" includes remedy.
712	698
713		-	HB2776 HFLR Page 13
714		-	BOLD FACE denotes Committee Amendments. 1
	699	+	Req. No. 6221 Page 13 1
715	700		2
716	701		3
717	702		4
718	703		5
719	704		6
720	705		7
721	706		8
722	707		9
723	708		10
724	709		11
725	710		12
726	711		13
727	712		14
728	713		15
729	714		16
730	715		17
731	716		18
732	717		19
733	718		20
734	719		21
735	720		22
736	721		23
737	722		24
738	723
739	724		(35) "Security interest" means an interest in personal prope rty
740	725		or fixtures which secures payment or performance of an obligation.
741	726		"Security interest" includes any interest of a consignor and a buyer
742	727		of accounts, chattel paper, a payment intangible, or a promissory
743	728		note in a transaction tha t is subject to Article 9 of this title.
744	729		"Security interest" does not include the special property interest
745	730		of a buyer of goods on i dentification of those goods to a contract
746	731		for sale under Section 2 -401 of this title, but a buyer may also
747	732		acquire a "security interest" by complying with the provisions of
748	733		Article 9 of this title. Except as otherwise provided in Section 2 -
749	734		505 of this title, the right of a seller or lessor of goods under
750	735		Article 2 or 2A of this title to retain or acquire possession of the
751	736		goods is not a "security interest", but a seller or lessor may also
752	737		acquire a "security interest" by complying with Article 9 of this
753	738		title. The retention or reservation of title by a seller of goods
754	739		notwithstanding shipment or delivery to the buyer under Section 2-
755	740		401 of this title is limited in effect to a reservation of a
756	741		"security interest". Whether a transaction in the form of a lease
757	742		creates security interest is determined pursuant to Section 1 -203 of
758	743		this title.
759	744		(36) "Send", in connection with any writing, a record, or
760	745		notice notification means:
761	746		(A) to deposit in the mail or, deliver for transmission ,
762	747		or transmit by any other usual means of communication ,
763	748
764		-	HB2776 HFLR Page 14
765		-	BOLD FACE denotes Committee Amendments. 1
	749	+	Req. No. 6221 Page 14 1
766	750		2
767	751		3
768	752		4
769	753		5
770	754		6
771	755		7
772	756		8
773	757		9
774	758		10
775	759		11
776	760		12
777	761		13
778	762		14
779	763		15
780	764		16
781	765		17
782	766		18
783	767		19
784	768		20
785	769		21
786	770		22
787	771		23
788	772		24
789	773
790	774		with postage or cost of transmission provided for and
791	775		properly addressed and , in the case of an instrument,
792	776		to an address specified thereon or otherwise agreed,
793	777		or if there be none, addressed to any address
794	778		reasonable under the c ircumstances; or
795	779		(B) in any other way to cause to be received any record or
796	780		notice within the time at which it would have a rrived
797	781		if properly sent to cause the record or notification
798	782		to be received within the time it would have been
799	783		received if properly se nt under subparagraph (A) of
800	784		this paragraph.
801	785		(37) "Signed" includes any symbol execut ed or adopted with
802	786		present intention to adopt or accept a writing "Sign" means, with
803	787		present intent to authenticate or adopt a re cord:
804	788		(A) execute or adopt a tangi ble symbol; or
805	789		(B) attach to or logically associate with the record an
806	790		electronic symbol, sou nd, or process.
807	791		"Signed", "signing", and "signature" have corresponding meanings.
808	792		(38) "State" means a state of the United States, the District
809	793		of Columbia, Puerto Rico, the United States Virgin Islands, or any
810	794		territory or insular possession subject to the jurisdiction of the
811	795		United States.
812	796		(39) "Surety" includes guarantor or other secondary obligor.
813	797
814		-	HB2776 HFLR Page 15
815		-	BOLD FACE denotes Committee Amendments. 1
	798	+	Req. No. 6221 Page 15 1
816	799		2
817	800		3
818	801		4
819	802		5
820	803		6
821	804		7
822	805		8
823	806		9
824	807		10
825	808		11
826	809		12
827	810		13
828	811		14
829	812		15
830	813		16
831	814		17
832	815		18
833	816		19
834	817		20
835	818		21
836	819		22
837	820		23
838	821		24
839	822
840	823		(40) "Term" means a portion of an agreement which relates to a
841	824		particular matter.
842	825		(41) "Unauthorized signature" means a signature made without
843	826		actual, implied or apparent authority. The term includes a forgery.
844	827		(42) "Warehouse receipt" means a document of title issued by a
845	828		person engaged in the business of storing goods for hire.
846	829		(43) "Writing" includes printing, typewriting, or any other
847	830		intentional reduction to tangib le form. "Written" has a
848	831		corresponding meaning.
849	832		SECTION 2. AMENDATORY 12 A O.S. 2021, Section 1 -204, is
850	833		amended to read as follows:
851	834		Section 1-204.
852	835		"Value".
853	836		Except as otherwise provided in Articles 3, 4 and, 5, 6, and 12
854	837		of the Uniform Commercial Code, a person gives value fo r rights if
855	838		the person acquires them:
856	839		(1) in return for a binding commitment to extend credit or for
857	840		the extension of immediately available credit, w hether or not drawn
858	841		upon and whether or not a charge -back is provided for in the eve nt
859	842		of difficulties in collection;
860	843		(2) as security for, or in total or partial satisfaction of, a
861	844		preexisting claim;
862	845		(3) by accepting delivery under a preexisting contract for
863	846		purchase; or
864	847
865		-	HB2776 HFLR Page 16
866		-	BOLD FACE denotes Committee Amendments. 1
	848	+	Req. No. 6221 Page 16 1
867	849		2
868	850		3
869	851		4
870	852		5
871	853		6
872	854		7
873	855		8
874	856		9
875	857		10
876	858		11
877	859		12
878	860		13
879	861		14
880	862		15
881	863		16
882	864		17
883	865		18
884	866		19
885	867		20
886	868		21
887	869		22
888	870		23
889	871		24
890	872
891	873		(4) in return for any consideration sufficient to support a
892	874		simple contract.
893	875		SECTION 3. AMENDATORY 12A O.S. 2021, Section 1-301, is
894	876		amended to read as follows:
895	877		Section 1-301. Territorial Applicability; Parties ' Power to
896	878		Choose Applicable Law.
897	879		(a) Except as provided hereafter in this section, when a
898	880		transaction bears a reasonable relation to this state and also to
899	881		another state or nation, the parties may agree that the law either
900	882		of this state or of such other state or nation shall govern their
901	883		rights and duties. Failing such agreement, this t itle applies to
902	884		transactions bearing an appropriate relation to this state.
903	885		(b) To the extent that the Uniform Commercial Code governs a
904	886		transaction, if one of the following provisions of the Uniform
905	887		Commercial Code specifies the applicable law, that prov ision governs
906	888		and a contrary agreement is effective only to the extent perm itted
907	889		by the law so specified :
908	890		(1) Section 2-402 of this title;
909	891		(2) Sections 2A-105 and 2A-106 of this title;
910	892		(3) Section 4-102 of this title;
911	893		(4) Section 4A-507 of this title;
912	894		(5) Section 5-116 of this title;
913	895		(6) Section 8-110 of this title; and
914	896		(7) Sections 1-9-301 through 1-9-307 of this title; and
915	897
916		-	HB2776 HFLR Page 17
917		-	BOLD FACE denotes Committee Amendments. 1
	898	+	Req. No. 6221 Page 17 1
918	899		2
919	900		3
920	901		4
921	902		5
922	903		6
923	904		7
924	905		8
925	906		9
926	907		10
927	908		11
928	909		12
929	910		13
930	911		14
931	912		15
932	913		16
933	914		17
934	915		18
935	916		19
936	917		20
937	918		21
938	919		22
939	920		23
940	921		24
941	922
942	923		(8) Section 12-107 of this title.
943	924		SECTION 4. AMENDATORY 12A O.S. 2021, Section 1-306, is
944	925		amended to read as follows:
945	926		Section 1-306. Waiver or Renunciation of Claim or Right after
946	927		Breach.
947	928		A claim or right arising out of an alleged breach may be
948	929		discharged in whole or in part without consideration by agreement of
949	930		the aggrieved party in an authenticated a signed record.
950	931		SECTION 5. AMENDATORY 12A O.S. 2021, Section 2 -102, is
951	932		amended to read as follows:
952	933		Section 2-102. (a) Unless the context otherwise requires, and
953	934		except as provided in subsecti on (c) of this section, this article
954	935		applies to transactions in goods; it does not apply to an y
955	936		transaction which although in the form of an uncondition al contract
956	937		to sell or present sale is intended to operate only as a security
957	938		transaction nor does this article impair o r repeal any statute
958	939		regulating sales to consumers, farmers or other specified classes of
959	940		buyers and, in the case of a hybrid transaction, i t applies to the
960	941		extent provided in subsection ( b) of this section.
961	942		(b) In a hybrid transacti on:
962	943		(1) If the sale-of-good aspects do not predominate, only the
963	944		provisions of this article which relate primarily to the sale -of-
964	945		good aspects of the transaction apply, and the provisions that
965	946		relate primarily to the transaction as a whole do not apply.
966	947
967		-	HB2776 HFLR Page 18
968		-	BOLD FACE denotes Committee Amendments. 1
	948	+	Req. No. 6221 Page 18 1
969	949		2
970	950		3
971	951		4
972	952		5
973	953		6
974	954		7
975	955		8
976	956		9
977	957		10
978	958		11
979	959		12
980	960		13
981	961		14
982	962		15
983	963		16
984	964		17
985	965		18
986	966		19
987	967		20
988	968		21
989	969		22
990	970		23
991	971		24
992	972
993	973		(2) If the sale-of-goods aspects predominate, this article
994	974		applies to the transaction but does not preclude application, in
995	975		appropriate circumstances , of other law to aspects of the
996	976		transaction which do not relate to the sale of goods.
997	977		(c) This article does not:
998	978		(1) Apply to a transaction that, even though in the form of an
999	979		unconditional contract to sell or present sale, operates only to
1000	980		create a security interes t; or
1001	981		(2) Impair or repeal a statute regulating sales to consumers,
1002	982		farmers, or other specified classes of buy ers.
1003	983		SECTION 6. AMENDATORY 12A O.S. 2021, Section 2-106, is
1004	984		amended to read as follows:
1005	985		Section 2-106. Definitions: "Contract"; "Agreement"; "Contract
1006	986		for Sale"; "Sale"; "Present Sale"; "Conforming" to Contract;
1007	987		"Termination"; "Cancellation"; "Hybrid Transaction".
1008	988		(1) In this article unless the context otherwise requires
1009	989		"contract" and "agreement" are limited to those relating to the
1010	990		present or future sale of goods. "Contract for sale" includes both
1011	991		a present sale of goods and a contract to sell goods at a future
1012	992		time but does not include a license of information . A "sale"
1013	993		consists in the passing of title from t he seller to the buyer for a
1014	994		price (Section 2-401). A "present sale" means a sale which is
1015	995		accomplished by the ma king of the contract.
1016	996
1017		-	HB2776 HFLR Page 19
1018		-	BOLD FACE denotes Committee Amendments. 1
	997	+	Req. No. 6221 Page 19 1
1019	998		2
1020	999		3
1021	1000		4
1022	1001		5
1023	1002		6
1024	1003		7
1025	1004		8
1026	1005		9
1027	1006		10
1028	1007		11
1029	1008		12
1030	1009		13
1031	1010		14
1032	1011		15
1033	1012		16
1034	1013		17
1035	1014		18
1036	1015		19
1037	1016		20
1038	1017		21
1039	1018		22
1040	1019		23
1041	1020		24
1042	1021
1043	1022		(2) Goods or conduct including any part of a performance are
1044	1023		"conforming" or conform to the contract when they are in a ccordance
1045	1024		with the obligations under the contract.
1046	1025		(3) "Termination" occurs when either party pursuant to a power
1047	1026		created by agreement or law puts an end to the contra ct otherwise
1048	1027		than for its breach. On "termination" all obligations which are
1049	1028		still executory on both sides are discharged but any right based on
1050	1029		prior breach or performance survives.
1051	1030		(4) "Cancellation" occurs when either party puts an end to the
1052	1031		contract for breach by the other and its effe ct is the same as that
1053	1032		of "termination" except that the canceling party also retains any
1054	1033		remedy for breach of the whole contract or any unperformed balance.
1055	1034		(5) "Hybrid transaction" means a single transaction involving a
1056	1035		sale of goods and:
1057	1036		(a) the provision of services;
1058	1037		(b) a lease of other goods; or
1059	1038		(c) a sale, lease, or license of property other than
1060	1039		goods.
1061	1040		SECTION 7. AMENDATORY 12A O.S. 2021, Section 2 -201, is
1062	1041		amended to read as follows:
1063	1042		Section 2-201. (1) Except as otherwise provided in this
1064	1043		section a contract for the sale of goods for the pr ice of Five
1065	1044		Hundred Dollars ($500.00) or more is not enforceable by way of
1066	1045		action or defense unless there is some writing a record sufficient
1067	1046
1068		-	HB2776 HFLR Page 20
1069		-	BOLD FACE denotes Committee Amendments. 1
	1047	+	Req. No. 6221 Page 20 1
1070	1048		2
1071	1049		3
1072	1050		4
1073	1051		5
1074	1052		6
1075	1053		7
1076	1054		8
1077	1055		9
1078	1056		10
1079	1057		11
1080	1058		12
1081	1059		13
1082	1060		14
1083	1061		15
1084	1062		16
1085	1063		17
1086	1064		18
1087	1065		19
1088	1066		20
1089	1067		21
1090	1068		22
1091	1069		23
1092	1070		24
1093	1071
1094	1072		to indicate that a contract for sale has been made between the
1095	1073		parties and signed by the party against whom enforc ement is sought
1096	1074		or by his the party's authorized agent or broker. A writing record
1097	1075		is not insufficient because it omits or incorr ectly states a term
1098	1076		agreed upon but the contract is not e nforceable under this paragraph
1099	1077		beyond the quantity of goo ds shown in such writing the record.
1100	1078		(2) Between merchants if within a reasonable time a writing
1101	1079		record in confirmation of the contract and sufficient against the
1102	1080		sender is received and the party r eceiving it has reason to know its
1103	1081		contents, it satisfies t he requirements of subsection ( 1) against
1104	1082		such the party unless written notice in a record of objection to its
1105	1083		contents is given within ten (10) days after it is received.
1106	1084		(3) A contract which does not satisfy the requirements of
1107	1085		subsection (1) but which i s valid in other respects is en forceable
1108	1086		(a) if the goods are to be specially manufactured for the
1109	1087		buyer and are not suitable for sale to others in the ordinary course
1110	1088		of the seller's business and the seller, before notice of
1111	1089		repudiation is received and u nder circumstances which reason ably
1112	1090		indicate that the goods are for the buyer, has made either a
1113	1091		substantial beginning of their manufacture or commitments for their
1114	1092		procurement; or
1115	1093		(b) if the party against whom enforcement is sought admits
1116	1094		in his pleading, testimony or otherwise in court that a contract for
1117	1095
1118		-	HB2776 HFLR Page 21
1119		-	BOLD FACE denotes Committee Amendments. 1
	1096	+	Req. No. 6221 Page 21 1
1120	1097		2
1121	1098		3
1122	1099		4
1123	1100		5
1124	1101		6
1125	1102		7
1126	1103		8
1127	1104		9
1128	1105		10
1129	1106		11
1130	1107		12
1131	1108		13
1132	1109		14
1133	1110		15
1134	1111		16
1135	1112		17
1136	1113		18
1137	1114		19
1138	1115		20
1139	1116		21
1140	1117		22
1141	1118		23
1142	1119		24
1143	1120
1144	1121		sale was made, but the contract is not enforceable under this
1145	1122		provision beyond the qu antity of goods admitted; or
1146	1123		(c) with respect to goods for which payment has been made
1147	1124		and accepted or which have be en received and accepted (Section 2-
1148	1125		606).
1149	1126		SECTION 8. AMENDATORY 12A O.S. 2021, Section 2 -202, is
1150	1127		amended to read as follows:
1151	1128		Section 2-202. Final Written Expression: Parol or Extrinsic
1152	1129		Evidence.
1153	1130		Terms with respect to which the conf irmatory memoranda of the
1154	1131		parties agree or which are otherwise set forth in a writing record
1155	1132		intended by the parties as a final expressio n of their agreement
1156	1133		with respect to such terms as are in cluded therein may not be
1157	1134		contradicted by evidence of any prio r agreement or of a
1158	1135		contemporaneous oral agreement but may be explained or supplemented:
1159	1136		(a) by course of performance, course of dealing or usage of
1160	1137		trade (Section 16 of this act); and
1161	1138		(b) by evidence of consistent additional terms unless the court
1162	1139		finds the writing record to have been intended also as a complete
1163	1140		and exclusive statement of the terms of the agree ment.
1164	1141		SECTION 9. AMENDATORY 12A O.S. 2021, Section 2 -203, is
1165	1142		amended to read as follows:
1166	1143		Section 2-203. The affixing of a seal to a writing record
1167	1144		evidencing a contract for sale or an offer to buy or sell goods does
1168	1145
1169		-	HB2776 HFLR Page 22
1170		-	BOLD FACE denotes Committee Amendments. 1
	1146	+	Req. No. 6221 Page 22 1
1171	1147		2
1172	1148		3
1173	1149		4
1174	1150		5
1175	1151		6
1176	1152		7
1177	1153		8
1178	1154		9
1179	1155		10
1180	1156		11
1181	1157		12
1182	1158		13
1183	1159		14
1184	1160		15
1185	1161		16
1186	1162		17
1187	1163		18
1188	1164		19
1189	1165		20
1190	1166		21
1191	1167		22
1192	1168		23
1193	1169		24
1194	1170
1195	1171		not constitute the writing record a sealed instrument and the law
1196	1172		with respect to sealed instrume nts does not apply to such a contract
1197	1173		or offer.
1198	1174		SECTION 10. AMENDATORY 12A O.S. 2021, Section 2 -205, is
1199	1175		amended to read as follows:
1200	1176		Section 2-205. An offer by a merchan t to buy or sell goods in a
1201	1177		signed writing record which by its terms gives assurance that it
1202	1178		will be held open is not revocable, for lack of consideration,
1203	1179		during the time stated or if no time is stated for a reason able
1204	1180		time, but in no event may such perio d of irrevocability excee d three
1205	1181		(3) months; but any such term of assurance on a form supplied by the
1206	1182		offeree must be separately signed by the offeror.
1207	1183		SECTION 11. AMENDATORY 12A O.S. 2021, Section 2-209, is
1208	1184		amended to read as follows:
1209	1185		Section 2-209. (1) An agreement modifying a contract wi thin
1210	1186		this article needs no consideration to be binding.
1211	1187		(2) A signed agreement which excludes modification or
1212	1188		rescission except by a signed writing or other signed record cannot
1213	1189		be otherwise modified or rescinded, but except as between merchants
1214	1190		such a requirement on a form supplied by the merchant must be
1215	1191		separately signed by the other party.
1216	1192		(3) The requirements of the statute o f frauds section of this
1217	1193		article (Section 2-201) must be satisfied if the contract as
1218	1194		modified is within its provisions.
1219	1195
1220		-	HB2776 HFLR Page 23
1221		-	BOLD FACE denotes Committee Amendments. 1
	1196	+	Req. No. 6221 Page 23 1
1222	1197		2
1223	1198		3
1224	1199		4
1225	1200		5
1226	1201		6
1227	1202		7
1228	1203		8
1229	1204		9
1230	1205		10
1231	1206		11
1232	1207		12
1233	1208		13
1234	1209		14
1235	1210		15
1236	1211		16
1237	1212		17
1238	1213		18
1239	1214		19
1240	1215		20
1241	1216		21
1242	1217		22
1243	1218		23
1244	1219		24
1245	1220
1246	1221		(4) Although an attempt at modification or rescission does not
1247	1222		satisfy the requirements of subsection (2) or (3) it can operate as
1248	1223		a waiver.
1249	1224		(5) A party who has made a waive r affecting an executo ry
1250	1225		portion of the contract m ay retract the waiver by reasonable
1251	1226		notification received by the other party that strict performance
1252	1227		will be required of any term waived, unless the retraction would b e
1253	1228		unjust in view of a material change of position in reliance on the
1254	1229		waiver.
1255	1230		SECTION 12. AMENDATORY 12A O.S. 2021, Section 2A-102, is
1256	1231		amended to read as follows:
1257	1232		Section 2A-102.
1258	1233		SCOPE
1259	1234		(1) This article applies to any tra nsaction, regardless of
1260	1235		form, that creates a lease of goods and, in the case of a hybrid
1261	1236		lease, it applies to the extent provided in subsection (2) of this
1262	1237		section.
1263	1238		(2) In a hybrid lease:
1264	1239		(a) if the lease-of-goods aspects do not predominate:
1265	1240		(i) only the provisions of this article which relate
1266	1241		primarily to the lease -of-goods aspects of the
1267	1242		transaction apply, and the provisions that relate
1268	1243		primarily to the transaction as a whole do not
1269	1244		apply;
1270	1245
1271		-	HB2776 HFLR Page 24
1272		-	BOLD FACE denotes Committee Amendments. 1
	1246	+	Req. No. 6221 Page 24 1
1273	1247		2
1274	1248		3
1275	1249		4
1276	1250		5
1277	1251		6
1278	1252		7
1279	1253		8
1280	1254		9
1281	1255		10
1282	1256		11
1283	1257		12
1284	1258		13
1285	1259		14
1286	1260		15
1287	1261		16
1288	1262		17
1289	1263		18
1290	1264		19
1291	1265		20
1292	1266		21
1293	1267		22
1294	1268		23
1295	1269		24
1296	1270
1297	1271		(ii) Section 2A-209 of this title applies if the lease
1298	1272		is a finance lease; and
1299	1273		(iii) Section 2A-407 of this title applies to the
1300	1274		promises of the lessee in a finance lease to the
1301	1275		extent the promises a re consideration for the
1302	1276		right to possession and use of the leased goods ;
1303	1277		and
1304	1278		(b) if the lease-of-goods aspects predominate, this
1305	1279		article applies to the transa ction, but does not
1306	1280		preclude application , in appropriate circum stances, of
1307	1281		other law to aspects of the lease which do not relate
1308	1282		to the lease of goods.
1309	1283		SECTION 13. AMENDATORY 12A O.S. 2021, Section 2A -103, is
1310	1284		amended to read as follows:
1311	1285		Section 2A-103.
1312	1286		DEFINITIONS AND INDEX OF DEFINITIONS
1313	1287
1314	1288		(1) In this article unless the context otherwise requires:
1315	1289		(a) "Buyer in the ordinary course of business " means a
1316	1290		person who in good faith and without knowledge that
1317	1291		the sale to him is in violation of the ownership
1318	1292		rights or security inte rest or leasehold in terest of a
1319	1293		third party in the goods, buys in the ordinary course
1320	1294		from a person in the business of selling goods of that
1321	1295		kind but does not include a pawnbroker. "Buying" may
1322	1296
1323		-	HB2776 HFLR Page 25
1324		-	BOLD FACE denotes Committee Amendments. 1
	1297	+	Req. No. 6221 Page 25 1
1325	1298		2
1326	1299		3
1327	1300		4
1328	1301		5
1329	1302		6
1330	1303		7
1331	1304		8
1332	1305		9
1333	1306		10
1334	1307		11
1335	1308		12
1336	1309		13
1337	1310		14
1338	1311		15
1339	1312		16
1340	1313		17
1341	1314		18
1342	1315		19
1343	1316		20
1344	1317		21
1345	1318		22
1346	1319		23
1347	1320		24
1348	1321
1349	1322		be for cash or by exchange of other property or on
1350	1323		secured or unsecured credit and includes acquiring
1351	1324		goods or documents of title under a preexisting
1352	1325		contract for sale but does not include a transf er in
1353	1326		bulk or as security for or in total or pa rtial
1354	1327		satisfaction of a money debt.
1355	1328		(b) "Cancellation" occurs when either party puts an end to
1356	1329		the lease contract for default by the other party.
1357	1330		(c) "Commercial unit" means such a unit of goods as by
1358	1331		commercial usage is a single who le for purposes of
1359	1332		lease and division of which materially impairs its
1360	1333		character or value on the market or in use. A
1361	1334		commercial unit may be a single article, as a machine,
1362	1335		or a set of articles, as a suite of furniture or a
1363	1336		line of machinery, or a quantity, as a gross or
1364	1337		carload, or any other unit treated in use or in the
1365	1338		relevant market as a single w hole.
1366	1339		(d) "Conforming" goods or performance under a lease
1367	1340		contract means goods or performance that are in
1368	1341		accordance with the obligation s under the lease
1369	1342		contract.
1370	1343		(e) "Consumer lease" means a lease that a lessor regularly
1371	1344		engaged in the business of leasin g or selling makes t o
1372	1345		a lessee who is an individual and who takes under the
1373	1346
1374		-	HB2776 HFLR Page 26
1375		-	BOLD FACE denotes Committee Amendments. 1
	1347	+	Req. No. 6221 Page 26 1
1376	1348		2
1377	1349		3
1378	1350		4
1379	1351		5
1380	1352		6
1381	1353		7
1382	1354		8
1383	1355		9
1384	1356		10
1385	1357		11
1386	1358		12
1387	1359		13
1388	1360		14
1389	1361		15
1390	1362		16
1391	1363		17
1392	1364		18
1393	1365		19
1394	1366		20
1395	1367		21
1396	1368		22
1397	1369		23
1398	1370		24
1399	1371
1400	1372		lease primarily for a personal, family, or household
1401	1373		purpose, if the total payments to be made under the
1402	1374		lease contract, excluding payments for options to
1403	1375		renew or buy, do not exce ed Forty-five Thousand
1404	1376		Dollars ($45,000.00).
1405	1377		(f) "Fault" means wrongful act, omission, breach, or
1406	1378		default.
1407	1379		(g) "Finance lease" means a lease with respect to whi ch:
1408	1380		(i) the lessor does not select, manufacture or supply
1409	1381		the goods;
1410	1382		(ii) the lessor acquires th e goods or the right to
1411	1383		possession and use of the goods in connection
1412	1384		with the lease; and
1413	1385		(iii) one of the following occurs:
1414	1386		(A) the lessee receives a copy of t he contract
1415	1387		by which the lessor acquired the goods or
1416	1388		the right to possession and use of the goo ds
1417	1389		before signing the lease contract;
1418	1390		(B) the lessee's approval of the contract by
1419	1391		which the lessor acquired the goods or the
1420	1392		right to possession and use of the goods is
1421	1393		a condition to effectiveness of the lease
1422	1394		contract;
1423	1395
1424		-	HB2776 HFLR Page 27
1425		-	BOLD FACE denotes Committee Amendments. 1
	1396	+	Req. No. 6221 Page 27 1
1426	1397		2
1427	1398		3
1428	1399		4
1429	1400		5
1430	1401		6
1431	1402		7
1432	1403		8
1433	1404		9
1434	1405		10
1435	1406		11
1436	1407		12
1437	1408		13
1438	1409		14
1439	1410		15
1440	1411		16
1441	1412		17
1442	1413		18
1443	1414		19
1444	1415		20
1445	1416		21
1446	1417		22
1447	1418		23
1448	1419		24
1449	1420
1450	1421		(C) the lessee, before signing the lease
1451	1422		contract, receives an accurate and complete
1452	1423		statement designating the promises and
1453	1424		warranties, and any disclaimers of
1454	1425		warranties, limitations or modifica tions of
1455	1426		remedies, or liquidated damages, including
1456	1427		those of a third party, such as the
1457	1428		manufacturer of the goods, p rovided to the
1458	1429		lessor by the person supplying the goods in
1459	1430		connection with or as part of the contract
1460	1431		by which the lessor acquired the goods or
1461	1432		the right to possession and use of the
1462	1433		goods; or
1463	1434		(D) if the lease is not a consumer lease, t he
1464	1435		lessor, before the lessee signs the lease
1465	1436		contract, informs the lessee in writing (a)
1466	1437		of the identity of the person supplying the
1467	1438		goods to the lessor, unless the lessee has
1468	1439		selected that person and directed the lessor
1469	1440		to acquire the goods or the right t o
1470	1441		possession and use of the goods from that
1471	1442		person, (b) that the lessee is entitled
1472	1443		under this article to the promises and
1473	1444		warranties, including those of any th ird
1474	1445
1475		-	HB2776 HFLR Page 28
1476		-	BOLD FACE denotes Committee Amendments. 1
	1446	+	Req. No. 6221 Page 28 1
1477	1447		2
1478	1448		3
1479	1449		4
1480	1450		5
1481	1451		6
1482	1452		7
1483	1453		8
1484	1454		9
1485	1455		10
1486	1456		11
1487	1457		12
1488	1458		13
1489	1459		14
1490	1460		15
1491	1461		16
1492	1462		17
1493	1463		18
1494	1464		19
1495	1465		20
1496	1466		21
1497	1467		22
1498	1468		23
1499	1469		24
1500	1470
1501	1471		party, provided to the lessor by the person
1502	1472		supplying the goods in connection with or as
1503	1473		part of the contract by which the lessor
1504	1474		acquired the goods or the right to
1505	1475		possession and use of the goods, and (c)
1506	1476		that the lessee may co mmunicate with the
1507	1477		person supplying the goods t o the lessor and
1508	1478		receive an accurate and complete statement
1509	1479		of those promises and warranties, including
1510	1480		any disclaimers and limitations of them or
1511	1481		of remedies.
1512	1482		(h) "Goods" means all things that are movable at the time
1513	1483		of identification to the lease contrac t, or are
1514	1484		fixtures (Section 2A -309 of this title). The term
1515	1485		includes future goods, specially manufactured goods,
1516	1486		and the unborn young of animals. The term does not
1517	1487		include information, the money in which the price is
1518	1488		to be paid, investment securities und er Article 8 of
1519	1489		the Uniform Commercial Code, minerals or the like,
1520	1490		including oil and gas, bef ore extraction, or choses in
1521	1491		action.
1522	1492		(i) "Hybrid lease" means a single transaction involving a
1523	1493		lease of goods and:
1524	1494		(i) the provision of serv ices;
1525	1495
1526		-	HB2776 HFLR Page 29
1527		-	BOLD FACE denotes Committee Amendments. 1
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1528	1497		2
1529	1498		3
1530	1499		4
1531	1500		5
1532	1501		6
1533	1502		7
1534	1503		8
1535	1504		9
1536	1505		10
1537	1506		11
1538	1507		12
1539	1508		13
1540	1509		14
1541	1510		15
1542	1511		16
1543	1512		17
1544	1513		18
1545	1514		19
1546	1515		20
1547	1516		21
1548	1517		22
1549	1518		23
1550	1519		24
1551	1520
1552	1521		(ii) a sale of other goods; or
1553	1522		(iii) a sale, lease, or license of property other than
1554	1523		goods.
1555	1524		(j) "Installment lease contract" means a lease contract
1556	1525		that authorizes or requires the delivery of goods in
1557	1526		separate lots to be separately accepted, even though
1558	1527		the lease contract contains a clause "each delivery is
1559	1528		a separate lease" or its equivalent.
1560	1529		(j)
1561	1530		(k) "Lease" means a transfer of the right to possession
1562	1531		and use of goods for a term in return for
1563	1532		consideration, but a sale, inc luding a sale on
1564	1533		approval or a sale or return, or retention or creation
1565	1534		of a security interest or license of information is
1566	1535		not a lease. Unless the context clearly indicates
1567	1536		otherwise, the term includes a sublease.
1568	1537		(k)
1569	1538		(l) "Lease agreement" means the bargain, with respect to
1570	1539		the lease, of the lessor and the lessee in fact as
1571	1540		found in their language or by implication from othe r
1572	1541		circumstances including course of dealing of usage of
1573	1542		trade or course of performance as provided in this
1574	1543		article. Unless the contex t clearly indicates
1575	1544		otherwise, the term includes a sublease agreement.
1576	1545
1577		-	HB2776 HFLR Page 30
1578		-	BOLD FACE denotes Committee Amendments. 1
	1546	+	Req. No. 6221 Page 30 1
1579	1547		2
1580	1548		3
1581	1549		4
1582	1550		5
1583	1551		6
1584	1552		7
1585	1553		8
1586	1554		9
1587	1555		10
1588	1556		11
1589	1557		12
1590	1558		13
1591	1559		14
1592	1560		15
1593	1561		16
1594	1562		17
1595	1563		18
1596	1564		19
1597	1565		20
1598	1566		21
1599	1567		22
1600	1568		23
1601	1569		24
1602	1570
1603	1571		(l)
1604	1572		(m) "Lease contract" means the total legal obli gation that
1605	1573		results from the lease agreement as affected by this
1606	1574		article and any other applicable rules of law. Unless
1607	1575		the context clearly indicates otherwise, the term
1608	1576		includes a sublease contract.
1609	1577		(m)
1610	1578		(n) "Leasehold interest" means the interest of the l essor
1611	1579		or the lessee under a lease contract.
1612	1580		(n)
1613	1581		(o) "Lessee" means a person who acquires the right to
1614	1582		possession and use of goods unde r a lease. Unless the
1615	1583		context clearly indicates otherwise, the term includes
1616	1584		a sublessee.
1617	1585		(o)
1618	1586		(p) "Lessee in the ordinary course of business" means a
1619	1587		person who in good faith and without knowledge that
1620	1588		the lease to him is in violation of the ownership
1621	1589		rights or security int erest or leasehold interest of a
1622	1590		third party in the goods leases in the ordinary course
1623	1591		from a person in the business of se lling or leasing
1624	1592		goods of that kind but does not include a pawnbroker.
1625	1593		"Leasing" may be for cash or by exchange of other
1626	1594		property or on secured or unsecured credit and
1627	1595
1628		-	HB2776 HFLR Page 31
1629		-	BOLD FACE denotes Committee Amendments. 1
	1596	+	Req. No. 6221 Page 31 1
1630	1597		2
1631	1598		3
1632	1599		4
1633	1600		5
1634	1601		6
1635	1602		7
1636	1603		8
1637	1604		9
1638	1605		10
1639	1606		11
1640	1607		12
1641	1608		13
1642	1609		14
1643	1610		15
1644	1611		16
1645	1612		17
1646	1613		18
1647	1614		19
1648	1615		20
1649	1616		21
1650	1617		22
1651	1618		23
1652	1619		24
1653	1620
1654	1621		includes acquiring goods or documents of title under a
1655	1622		preexisting lease contract but d oes not include a
1656	1623		transfer in bulk or as security for or in total or
1657	1624		partial satisfaction of a money debt.
1658	1625		(p)
1659	1626		(q) "Lessor" means a person who transfers the right to
1660	1627		possession and use of goods under a lease. Unless the
1661	1628		context clearly indicates otherwise, the term includes
1662	1629		a sublessor.
1663	1630		(q)
1664	1631		(r) "Lessor's residual interest" means the lessor's
1665	1632		interest in the goods a fter expiration, termina tion,
1666	1633		or cancellation of the lease contract.
1667	1634		(r)
1668	1635		(s) "Lien" means a charge against or interest in go ods to
1669	1636		secure payment of a debt or performance of an
1670	1637		obligation, but the term does not include a security
1671	1638		interest.
1672	1639		(s)
1673	1640		(t) "Lot" means a parcel or a single article that is the
1674	1641		subject matter of a separate lease or delivery,
1675	1642		whether or not it is sufficient to perform the lease
1676	1643		contract.
1677	1644		(t)
1678	1645
1679		-	HB2776 HFLR Page 32
1680		-	BOLD FACE denotes Committee Amendments. 1
	1646	+	Req. No. 6221 Page 32 1
1681	1647		2
1682	1648		3
1683	1649		4
1684	1650		5
1685	1651		6
1686	1652		7
1687	1653		8
1688	1654		9
1689	1655		10
1690	1656		11
1691	1657		12
1692	1658		13
1693	1659		14
1694	1660		15
1695	1661		16
1696	1662		17
1697	1663		18
1698	1664		19
1699	1665		20
1700	1666		21
1701	1667		22
1702	1668		23
1703	1669		24
1704	1670
1705	1671		(u) "Merchant lessee" means a lessee that is a merchant
1706	1672		with respect to goods of the kind subjec t to the
1707	1673		lease.
1708	1674		(u)
1709	1675		(v) "Present value" means the amount as of a date certain
1710	1676		of one or more sums payable in the future, dis counted
1711	1677		to the date certain. The discount is determined by
1712	1678		the interest rate specified by the parties if the rate
1713	1679		was not manifestly unreasonable at the ti me the
1714	1680		transaction was entered into; otherwise, the discount
1715	1681		is determined by a commercially reasona ble rate that
1716	1682		takes into account the facts and circumstances of each
1717	1683		case at the time the transaction was entered into.
1718	1684		(v)
1719	1685		(w) "Purchase" includes taking by sale, lease, mortgage,
1720	1686		security interest, pledge, gift, or any other
1721	1687		voluntary transaction creatin g an interest in goo ds.
1722	1688		(w)
1723	1689		(x) "Sublease" means a lease of goods the right to
1724	1690		possession and use of which was acquired by the lesso r
1725	1691		as a lessee under an e xisting lease.
1726	1692		(x)
1727	1693		(y) "Supplier" means a person from whom a lessor buys or
1728	1694		leases goods to be lease d under a finance le ase.
1729	1695
1730		-	HB2776 HFLR Page 33
1731		-	BOLD FACE denotes Committee Amendments. 1
	1696	+	Req. No. 6221 Page 33 1
1732	1697		2
1733	1698		3
1734	1699		4
1735	1700		5
1736	1701		6
1737	1702		7
1738	1703		8
1739	1704		9
1740	1705		10
1741	1706		11
1742	1707		12
1743	1708		13
1744	1709		14
1745	1710		15
1746	1711		16
1747	1712		17
1748	1713		18
1749	1714		19
1750	1715		20
1751	1716		21
1752	1717		22
1753	1718		23
1754	1719		24
1755	1720
1756	1721		(y)
1757	1722		(z) "Supply contract" means a contract under which a
1758	1723		lessor buys or leases goods to be leased.
1759	1724		(z)
1760	1725		(aa) "Termination" occurs when either party pursuant to a
1761	1726		power created by agreement or law puts an end to the
1762	1727		lease contract otherwise than for def ault.
1763	1728		(2) Other definitions applying to this article and the sections
1764	1729		in which they appear are:
1765	1730		"Accessions". Subsection (1) of Sectio n 2A-310 of this
1766	1731		title.
1767	1732		"Construction mortgage". Paragraph (d) of subsection (1)
1768	1733		of Section 2A-309 of this title.
1769	1734		"Encumbrance". Paragraph (e) of subsection (1) of Section
1770	1735		2A-309 of this title.
1771	1736		"Fixtures". Paragraph (a) of subse ction (1) of Section 2A -
1772	1737		309 of this title.
1773	1738		"Fixture filing". Paragraph (b) of subsection (1) of
1774	1739		Section 2A-309 of this title.
1775	1740		"Purchase money lease". Paragraph (c) of subsection (1) of
1776	1741		Section 2A-309 of this title.
1777	1742		(3) The following definitions in other articles apply to this
1778	1743		article:
1779	1744
1780		-	HB2776 HFLR Page 34
1781		-	BOLD FACE denotes Committee Amendments. 1
	1745	+	Req. No. 6221 Page 34 1
1782	1746		2
1783	1747		3
1784	1748		4
1785	1749		5
1786	1750		6
1787	1751		7
1788	1752		8
1789	1753		9
1790	1754		10
1791	1755		11
1792	1756		12
1793	1757		13
1794	1758		14
1795	1759		15
1796	1760		16
1797	1761		17
1798	1762		18
1799	1763		19
1800	1764		20
1801	1765		21
1802	1766		22
1803	1767		23
1804	1768		24
1805	1769
1806	1770		"Account". Paragraph (2) of subs ection (a) of Section 1 -9-
1807	1771		102 of this title.
1808	1772		"Between merchants". Subsection (3) of Section 2-104 of
1809	1773		this title.
1810	1774		"Buyer". Paragraph (a) of subsection (1) of Section 2 -103
1811	1775		of this title.
1812	1776		"Chattel paper". Paragraph (11) of subsection (a) of
1813	1777		Section 1-9-102 of this title.
1814	1778		"Consumer goods". Paragraph (23) of sub section (a) of
1815	1779		Section 1-9-102 of this title.
1816	1780		"Document". Paragraph (30) of subsection (a) of Section 1 -
1817	1781		9-102 of this title.
1818	1782		"Entrusting". Paragraph (3) of Section 2-403 of this
1819	1783		title.
1820	1784		"General intangible". Paragraph (42) of subsection (a) of
1821	1785		Section 1-9-102 of this title.
1822	1786		"Instrument". Paragraph (47) of subsection (a) of Section
1823	1787		1-9-102 of this title.
1824	1788		"Merchant". Subsection (1) of Section 2-104 of this title.
1825	1789		"Mortgage". Paragraph (55) of subs ection (a) of Section 1 -
1826	1790		9-102 of this title.
1827	1791		"Pursuant to commitment". Paragraph (69) of subsection (a)
1828	1792		of Section 1-9-102 of this title.
1829	1793
1830		-	HB2776 HFLR Page 35
1831		-	BOLD FACE denotes Committee Amendments. 1
	1794	+	Req. No. 6221 Page 35 1
1832	1795		2
1833	1796		3
1834	1797		4
1835	1798		5
1836	1799		6
1837	1800		7
1838	1801		8
1839	1802		9
1840	1803		10
1841	1804		11
1842	1805		12
1843	1806		13
1844	1807		14
1845	1808		15
1846	1809		16
1847	1810		17
1848	1811		18
1849	1812		19
1850	1813		20
1851	1814		21
1852	1815		22
1853	1816		23
1854	1817		24
1855	1818
1856	1819		"Receipt". Subsection (c) of paragraph (1) of Sect ion 2-
1857	1820		103 of this title.
1858	1821		"Sale". Paragraph (1) of Section 2 -106 of this title.
1859	1822		"Sale on approval". Section 2-326 of this title.
1860	1823		"Sale or return". Section 2-326 of this title.
1861	1824		"Seller". Subparagraph (c) of paragraph (1) of Section 2 -
1862	1825		103 of this title.
1863	1826		(4) In addition, Article 1 of this title, contains general
1864	1827		definitions and principles of construction and interpretation
1865	1828		applicable throughout t his article.
1866	1829		SECTION 14. AMENDATORY 12A O.S. 2021, Section 2A -107, is
1867	1830		amended to read as follows:
1868	1831		Section 2A-107.
1869	1832		WAIVER OR RENUNCIATION OF CLAIM OR RIGHT AFTER DEFAULT
1870	1833		Any claim or right arising out of an al leged default or breach
1871	1834		of warranty may be discharged in whole or in part without
1872	1835		consideration by a written waiver or renunciation in a signed and
1873	1836		record delivered by the aggrieved party.
1874	1837		SECTION 15. AMENDATORY 12A O.S. 2021, Section 2A-201, is
1875	1838		amended to read as follows:
1876	1839		Section 2A-201.
1877	1840		STATUTE OF FRAUDS
1878	1841		(1) A lease contract is not enforceable by way of action or
1879	1842		defense unless:
1880	1843
1881		-	HB2776 HFLR Page 36
1882		-	BOLD FACE denotes Committee Amendments. 1
	1844	+	Req. No. 6221 Page 36 1
1883	1845		2
1884	1846		3
1885	1847		4
1886	1848		5
1887	1849		6
1888	1850		7
1889	1851		8
1890	1852		9
1891	1853		10
1892	1854		11
1893	1855		12
1894	1856		13
1895	1857		14
1896	1858		15
1897	1859		16
1898	1860		17
1899	1861		18
1900	1862		19
1901	1863		20
1902	1864		21
1903	1865		22
1904	1866		23
1905	1867		24
1906	1868
1907	1869		(a) the total payments to be made under the lease
1908	1870		contract, excluding payments for options to renew or bu y, are less
1909	1871		than One Thousand Dollars ($1,000.00); or
1910	1872		(b) there is a writing record, signed by the party
1911	1873		against whom enforcement is sought or by that party 's authorized
1912	1874		agent, sufficient to ind icate that a lease contract has been made
1913	1875		between the parties and to describe the goods leased and the lease
1914	1876		term.
1915	1877		(2) Any description of leased goods or of th e lease term is
1916	1878		sufficient and satisfies paragraph (b) of subsection (1) of this
1917	1879		section, whether or not it is specific, if it reasonably identifies
1918	1880		what is described.
1919	1881		(3) A writing record is not insufficient because it omits or
1920	1882		incorrectly states a term agreed upon, but the lease contract is not
1921	1883		enforceable under paragraph (b) of subsection (1) of this section
1922	1884		beyond the lease term and the quantity of goods s hown in the writing
1923	1885		record.
1924	1886		(4) A lease contract that does not satisfy the requirements of
1925	1887		subsection (1) of this section, but which is valid in other
1926	1888		respects, is enforceable:
1927	1889		(a) if the goods are to be specially manufa ctured or
1928	1890		obtained for the lessee a nd are not suitable for lease or sale to
1929	1891		others in the ordinary course of the lessor 's business, and the
1930	1892		lessor, before notice of repudiation is received and under
1931	1893
1932		-	HB2776 HFLR Page 37
1933		-	BOLD FACE denotes Committee Amendments. 1
	1894	+	Req. No. 6221 Page 37 1
1934	1895		2
1935	1896		3
1936	1897		4
1937	1898		5
1938	1899		6
1939	1900		7
1940	1901		8
1941	1902		9
1942	1903		10
1943	1904		11
1944	1905		12
1945	1906		13
1946	1907		14
1947	1908		15
1948	1909		16
1949	1910		17
1950	1911		18
1951	1912		19
1952	1913		20
1953	1914		21
1954	1915		22
1955	1916		23
1956	1917		24
1957	1918
1958	1919		circumstances that reasonably indicate that the goods are for the
1959	1920		lessee, has made either a substantial beginning of their manufacture
1960	1921		or commitments for their procurement;
1961	1922		(b) if the party against whom enforcement is sought
1962	1923		admits in that party 's pleading, testimony or otherwise in co urt
1963	1924		that a lease contract w as made, but the lease contract is not
1964	1925		enforceable under this provision beyond the quantity of goods
1965	1926		admitted; or
1966	1927		(c) with respect to goods that have been received
1967	1928		and accepted by the lessee.
1968	1929		(5) The lease term under a lease con tract referred to in
1969	1930		subsection (4) of this section is:
1970	1931		(a) if there is a writing record signed by the party
1971	1932		against whom enforcement is sought or by that party 's authorized
1972	1933		agent specifying the lease term, the term so specified;
1973	1934		(b) if the party against w hom enforcement is sought
1974	1935		admits in that party's pleading, testimony, or otherwise in court a
1975	1936		lease term, the term so admitted; or
1976	1937		(c) a reasonable lease term.
1977	1938		SECTION 16. AMENDATORY 12A O.S. 2021, Sectio n 2A-202, is
1978	1939		amended to read as follows:
1979	1940		Section 2A-202.
1980	1941		FINAL WRITTEN EXPRESSION; PAROL OR EXTRINSIC EVIDENCE
1981	1942
1982		-	HB2776 HFLR Page 38
1983		-	BOLD FACE denotes Committee Amendments. 1
	1943	+	Req. No. 6221 Page 38 1
1984	1944		2
1985	1945		3
1986	1946		4
1987	1947		5
1988	1948		6
1989	1949		7
1990	1950		8
1991	1951		9
1992	1952		10
1993	1953		11
1994	1954		12
1995	1955		13
1996	1956		14
1997	1957		15
1998	1958		16
1999	1959		17
2000	1960		18
2001	1961		19
2002	1962		20
2003	1963		21
2004	1964		22
2005	1965		23
2006	1966		24
2007	1967
2008	1968		Terms with respect to which the confirmatory memoranda of the
2009	1969		parties agree or which are otherwise set forth in a writing record
2010	1970		intended by the parties as a final expression of their agreement
2011	1971		with respect to such terms as are includ ed therein may not be
2012	1972		contradicted by evidence of any prior agreement or of a
2013	1973		contemporaneous oral agreement but may be explained or s upplemented:
2014	1974		(a) by course of dealing or usage of trade or by
2015	1975		course of performance; and
2016	1976		(b) by evidence of consistent add itional terms
2017	1977		unless the court finds the writing record to have been intended also
2018	1978		as a complete and exclusive statement of the terms of the agreement.
2019	1979		SECTION 17. AMENDATORY 12A O.S. 2021, Section 2A -203, is
2020	1980		amended to read as follows:
2021	1981		Section 2A-203.
2022	1982		SEALS INOPERATIVE
2023	1983		The affixing of a seal to a writing record evidencing a lease
2024	1984		contract or an offer to enter into a lease contract does not render
2025	1985		the writing record a sealed instrument and the law with respect to
2026	1986		sealed instruments does not apply to the lease contract or offer.
2027	1987		SECTION 18. AMENDATORY 12A O.S. 2021, Section 2A -205, is
2028	1988		amended to read as follows:
2029	1989		Section 2A-205.
2030	1990		FIRM OFFERS
2031	1991
2032		-	HB2776 HFLR Page 39
2033		-	BOLD FACE denotes Committee Amendments. 1
	1992	+	Req. No. 6221 Page 39 1
2034	1993		2
2035	1994		3
2036	1995		4
2037	1996		5
2038	1997		6
2039	1998		7
2040	1999		8
2041	2000		9
2042	2001		10
2043	2002		11
2044	2003		12
2045	2004		13
2046	2005		14
2047	2006		15
2048	2007		16
2049	2008		17
2050	2009		18
2051	2010		19
2052	2011		20
2053	2012		21
2054	2013		22
2055	2014		23
2056	2015		24
2057	2016
2058	2017		An offer by a merchant to lease goods to or from another person
2059	2018		in a signed writing record that by its terms gives assurance it will
2060	2019		be held open is not revocable, for lack of consideration, during the
2061	2020		time stated or, if no time is stated, for a reasonable time, but in
2062	2021		no event may the period of irrevocability exceed three (3 ) months.
2063	2022		Any such term of assurance on a form supplied by the offeree must be
2064	2023		separately signed by the offeror.
2065	2024		SECTION 19. AMENDATORY 12A O.S. 2021, Section 2A -208, is
2066	2025		amended to read as follows:
2067	2026		Section 2A-208.
2068	2027		MODIFICATION, RESCISSION, AND WAIVER
2069	2028		(1) An agreement modifying a lease contract needs no
2070	2029		consideration to be binding.
2071	2030		(2) A signed lease agreemen t that excludes modification or
2072	2031		rescission except by a si gned writing record may not be otherwise
2073	2032		modified or rescinded, bu t, except as between merchants, such a
2074	2033		requirement on a form supplied by a merchant must be separately
2075	2034		signed by the other party.
2076	2035		(3) Although an attempt at modification or rescission does not
2077	2036		satisfy the requirements of subsection (2) of this section, it may
2078	2037		operate as a waiver.
2079	2038		(4) A party who has made a waiver affecting an executory
2080	2039		portion of a lease contract may retract the waive r by reasonable
2081	2040		notification received by the other party that st rict performance
2082	2041
2083		-	HB2776 HFLR Page 40
2084		-	BOLD FACE denotes Committee Amendments. 1
	2042	+	Req. No. 6221 Page 40 1
2085	2043		2
2086	2044		3
2087	2045		4
2088	2046		5
2089	2047		6
2090	2048		7
2091	2049		8
2092	2050		9
2093	2051		10
2094	2052		11
2095	2053		12
2096	2054		13
2097	2055		14
2098	2056		15
2099	2057		16
2100	2058		17
2101	2059		18
2102	2060		19
2103	2061		20
2104	2062		21
2105	2063		22
2106	2064		23
2107	2065		24
2108	2066
2109	2067		will be required of any term waived, unles s the retraction would be
2110	2068		unjust in view of a material change of position in reliance on the
2111	2069		waiver.
2112	2070		SECTION 20. AMENDATORY 12A O.S. 2021, Section 3 -104, is
2113	2071		amended to read as f ollows:
2114	2072		Section 3-104.
2115	2073		NEGOTIABLE INSTRUMENT
2116	2074		(a) Except as provided in subsections (c) and (d) of this
2117	2075		section, "negotiable instrument" means an unconditional promise or
2118	2076		order to pay a fixed amount of money, with or without int erest or
2119	2077		other charges described in the promise or order, if it:
2120	2078		(1) is payable to bearer or to order at the time it is
2121	2079		issued or first comes into possession of a holder;
2122	2080		(2) is payable on demand or at a definite time; and
2123	2081		(3) does not state any other unde rtaking or instruction by
2124	2082		the person promising or ordering payment to do any act
2125	2083		in addition to the paym ent of money, but the promise
2126	2084		or order may contain (i) an undertaking or power to
2127	2085		give, maintain, or protect collateral to secure
2128	2086		payment, (ii) an autho rization or power to the holder
2129	2087		to confess judgment or realize on or dispose of
2130	2088		collateral, or (iii) a waiver of the benefit of any
2131	2089		law intended for the advantage or protection of an
2132	2090		obligor, (iv) a term that specifies the law that
2133	2091
2134		-	HB2776 HFLR Page 41
2135		-	BOLD FACE denotes Committee Amendments. 1
	2092	+	Req. No. 6221 Page 41 1
2136	2093		2
2137	2094		3
2138	2095		4
2139	2096		5
2140	2097		6
2141	2098		7
2142	2099		8
2143	2100		9
2144	2101		10
2145	2102		11
2146	2103		12
2147	2104		13
2148	2105		14
2149	2106		15
2150	2107		16
2151	2108		17
2152	2109		18
2153	2110		19
2154	2111		20
2155	2112		21
2156	2113		22
2157	2114		23
2158	2115		24
2159	2116
2160	2117		governs the promise or o rder, or (v) an undertaki ng to
2161	2118		resolve in a specified forum a dispute concerning the
2162	2119		promise or order.
2163	2120		(b) "Instrument" means a negotiable instrument.
2164	2121		(c) An order that meets all of the requirements of subsection
2165	2122		(a) of this section, except paragraph (1) , and otherwise falls
2166	2123		within the definition of "check" in subsection (f) of this sec tion
2167	2124		is a negotiable instrument and a check.
2168	2125		(d) A promise or order other than a check is not an instrument
2169	2126		if, at the time it is issued or first comes into possession of a
2170	2127		holder, it contains a c onspicuous statement, however expressed, to
2171	2128		the effect that the promise or order is not negotiable or is not an
2172	2129		instrument governed by this article.
2173	2130		(e) An instrument is a "note" if it is a promise and is a
2174	2131		"draft" if it is an order. If an instrument fal ls within the
2175	2132		definition of both "note" and "draft", a person entitled to enfor ce
2176	2133		the instrument may treat it as either.
2177	2134		(f) "Check" means (i) a draft, oth er than a documentary draft,
2178	2135		payable on demand and drawn on a bank or (ii) a cashier's check or
2179	2136		teller's check. An instrument may be a check even though it is
2180	2137		described on its face by another term, such as "money order".
2181	2138		(g) "Cashier's check" means a draft with respect to which the
2182	2139		drawer and drawee are the same bank or branche s of the same bank.
2183	2140
2184		-	HB2776 HFLR Page 42
2185		-	BOLD FACE denotes Committee Amendments. 1
	2141	+	Req. No. 6221 Page 42 1
2186	2142		2
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2198	2154		14
2199	2155		15
2200	2156		16
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2202	2158		18
2203	2159		19
2204	2160		20
2205	2161		21
2206	2162		22
2207	2163		23
2208	2164		24
2209	2165
2210	2166		(h) "Teller's check" means a draft drawn by a bank (i) on
2211	2167		another bank, or (ii) pay able at or through a bank.
2212	2168		(i) "Traveler's check" means an instrument that ( i) is payable
2213	2169		on demand, (ii) is drawn on or payable at or through a bank, (iii)
2214	2170		is designated by the term "traveler's check" or by a substantially
2215	2171		similar term, and (iv) requires , as a condition to payment, a
2216	2172		countersignature by a person whose specimen si gnature appears on the
2217	2173		instrument.
2218	2174		(j) "Certificate of deposit " means an instrument containing an
2219	2175		acknowledgment by a bank that a sum of money has been receiv ed by
2220	2176		the bank and a promise by the bank to repay the sum of money. A
2221	2177		certificate of deposit is a note of the bank.
2222	2178		SECTION 21. AMENDATORY 12A O.S. 2021, Section 3 -105, is
2223	2179		amended to read as follows:
2224	2180		Section 3-105.
2225	2181		ISSUE OF INSTRUMENT
2226	2182		(a) "Issue" means:
2227	2183		(1) the first delivery of an instrument by the maker or
2228	2184		drawer, whether to a holder or nonholder, for the
2229	2185		purpose of giving rights on the instrument to any
2230	2186		person; or
2231	2187		(2) if agreed by the payee, the first transmission by the
2232	2188		drawer to the payee of an image of an item and
2233	2189		information derived from the item that enable s the
2234	2190
2235		-	HB2776 HFLR Page 43
2236		-	BOLD FACE denotes Committee Amendments. 1
	2191	+	Req. No. 6221 Page 43 1
2237	2192		2
2238	2193		3
2239	2194		4
2240	2195		5
2241	2196		6
2242	2197		7
2243	2198		8
2244	2199		9
2245	2200		10
2246	2201		11
2247	2202		12
2248	2203		13
2249	2204		14
2250	2205		15
2251	2206		16
2252	2207		17
2253	2208		18
2254	2209		19
2255	2210		20
2256	2211		21
2257	2212		22
2258	2213		23
2259	2214		24
2260	2215
2261	2216		depository bank to collect th e item by transferring or
2262	2217		presenting under federal law an electronic check.
2263	2218		(b) An unissued instr ument, or an unissued incomplete
2264	2219		instrument that is compl eted, is binding on the maker or drawer, but
2265	2220		nonissuance is a defense. An i nstrument that is conditi onally
2266	2221		issued or is issued for a special purpose is binding on the maker or
2267	2222		drawer, but failure of the condition or special purpose t o be
2268	2223		fulfilled is a defense.
2269	2224		(c) "Issuer" applies to issued and unissued instruments and
2270	2225		means a maker or drawer of an ins trument.
2271	2226		SECTION 22. AMENDATORY 12A O.S. 2021, Section 3-401, is
2272	2227		amended to read as follows:
2273	2228		Section 3-401.
2274	2229		SIGNATURE NECESSARY FOR LIABILITY ON INSTRUMENT
2275	2230		(a) A person is not liable on an instrument unless (i) the
2276	2231		person signed the instrument, or (ii) the person is represented by
2277	2232		an agent or representative who signed the ins trument and the
2278	2233		signature is binding on the repre sented person under Section 3-402
2279	2234		of this title.
2280	2235		(b) A signature may be made (i) manually or by means of a
2281	2236		device or machine, and (ii) by the use of any name, including a
2282	2237		trade or assumed name, or by a word , mark, or symbol executed or
2283	2238		adopted by a person with present intention to authenticate a
2284	2239		writing.
2285	2240
2286		-	HB2776 HFLR Page 44
2287		-	BOLD FACE denotes Committee Amendments. 1
	2241	+	Req. No. 6221 Page 44 1
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2290	2244		4
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2300	2254		14
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2302	2256		16
2303	2257		17
2304	2258		18
2305	2259		19
2306	2260		20
2307	2261		21
2308	2262		22
2309	2263		23
2310	2264		24
2311	2265
2312	2266		SECTION 23. AMENDATORY 12A O.S. 2021, Section 3 -604, is
2313	2267		amended to read as follows:
2314	2268		Section 3-604.
2315	2269		DISCHARGE BY CANCELLATION OR RENUNCIATION
2316	2270		(a) A person entitled to enforce an instrument, with or without
2317	2271		consideration, may discharge the obligatio n of a party to pay the
2318	2272		instrument (i) by an inten tional voluntary act, such as surrender of
2319	2273		the instrument to the party, destruction, mutilation, or
2320	2274		cancellation of the instrument, cancellation or striking out of the
2321	2275		party's signature, or the addition of words to the instrument
2322	2276		indicating discharge, or ( ii) by agreeing not to sue or otherwise
2323	2277		renouncing rights against the party by a signed record. The
2324	2278		obligation of a party to pay a check is not discharged solely by
2325	2279		destruction of the check in connection with a process in which
2326	2280		information is extracted from the check and an image of the check is
2327	2281		made and, subsequently, the information and image are tra nsmitted
2328	2282		for payment.
2329	2283		(b) Cancellation or striking out of an indorsement pursuant to
2330	2284		subsection (a) of th is section does not affect the status and rights
2331	2285		of a party derived from the indorsement.
2332	2286		(c) As used in this section, "signed", with respect to a record
2333	2287		that is not a writing, incl udes the attachment to or logical
2334	2288		association with the record of an electr onic symbol, sound, or
2335	2289		process with the present intent to adop t or accept the record.
2336	2290
2337		-	HB2776 HFLR Page 45
2338		-	BOLD FACE denotes Committee Amendments. 1
	2291	+	Req. No. 6221 Page 45 1
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2361	2314		24
2362	2315
2363	2316		SECTION 24. AMENDATORY 12A O.S. 2021, Section 4A-103, is
2364	2317		amended to read as follows:
2365	2318		Section 4A-103.
2366	2319		PAYMENT ORDER - DEFINITIONS
2367	2320		(a) In this Article:
2368	2321		(1) "Payment order" means an instruction of a se nder to a
2369	2322		receiving bank, transmitted orally, electronically, or in writing or
2370	2323		in a record, to pay, or to cause another bank to pay, a fixed or
2371	2324		determinable amount of money to a beneficiary if:
2372	2325		(i) the instruction does not state a condition to payment
2373	2326		to the beneficiary other than time of payment,
2374	2327		(ii) the receiving bank is to be reimbursed by debiting a n
2375	2328		account of, or otherwi se receiving payment from, the
2376	2329		sender, and
2377	2330		(iii) the instruction is transmit ted by the sender directly
2378	2331		to the receiving bank or to an agent, fund s-transfer
2379	2332		system, or communication system for transmittal to the
2380	2333		receiving bank.
2381	2334		(2) "Beneficiary" means the person to be paid by the
2382	2335		beneficiary's bank.
2383	2336		(3) "Beneficiary's bank" means the bank identified in a payment
2384	2337		order in which an account of the be neficiary is to be credited
2385	2338		pursuant to the order or which otherwise is to make payment to the
2386	2339		beneficiary if the order does not provide for payment to an account.
2387	2340
2388		-	HB2776 HFLR Page 46
2389		-	BOLD FACE denotes Committee Amendments. 1
	2341	+	Req. No. 6221 Page 46 1
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2410	2362		22
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2412	2364		24
2413	2365
2414	2366		(4) "Receiving bank" means the bank to which the sender's
2415	2367		instruction is addressed.
2416	2368		(5) "Sender" means the person giving the instruction to the
2417	2369		receiving bank.
2418	2370		(b) If an instruction complying with paragraph (1) of
2419	2371		subsection (a) is to make more than one payment to a benefici ary,
2420	2372		the instruction is a separate payment order with respect to each
2421	2373		payment.
2422	2374		(c) A payment order is issued when it is sent to the receiving
2423	2375		bank.
2424	2376		SECTION 25. AMENDATORY 1 2A O.S. 2021, Section 4A-201, is
2425	2377		amended to read as f ollows:
2426	2378		Section 4A-201.
2427	2379		SECURITY PROCEDURE
2428	2380		"Security procedure" means a procedure established by agreement
2429	2381		of a customer and a receiving bank for the purpo se of (i) verifying
2430	2382		that a payment order or comm unication amending or canceling a
2431	2383		payment order is that of the customer, or (ii) detecting error in
2432	2384		the transmission or the content of the payment order or
2433	2385		communication. A security procedure may impose an obligation on the
2434	2386		receiving bank or the customer and may require the use of algorithms
2435	2387		or other codes, identifying words or, numbers, symbols, sounds,
2436	2388		biometrics, encryption, callback proc edures, or similar security
2437	2389		devices. Comparisons of a signature on a payment order or
2438	2390
2439		-	HB2776 HFLR Page 47
2440		-	BOLD FACE denotes Committee Amendments. 1
	2391	+	Req. No. 6221 Page 47 1
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2448	2399		9
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2450	2401		11
2451	2402		12
2452	2403		13
2453	2404		14
2454	2405		15
2455	2406		16
2456	2407		17
2457	2408		18
2458	2409		19
2459	2410		20
2460	2411		21
2461	2412		22
2462	2413		23
2463	2414		24
2464	2415
2465	2416		communication with an authoriz ed specimen signature of the customer
2466	2417		or requiring a payment order to be sent from a known email address,
2467	2418		IP address, or telephone number is not by itself a security
2468	2419		procedure.
2469	2420		SECTION 26. AMENDATORY 12A O.S. 2021, Section 4A -202, is
2470	2421		amended to read as follows:
2471	2422		Section 4A-202.
2472	2423		AUTHORIZED AND VERIFIED PAYMENT ORDERS
2473	2424		(a) A payment order received by the receiving bank is the
2474	2425		authorized order of the person identified as sender if that person
2475	2426		authorized the order or is otherwise bound by it under the law of
2476	2427		agency.
2477	2428		(b) If a bank and its cust omer have agreed that the
2478	2429		authenticity of payment orders issued to the bank in the name of the
2479	2430		customer as sender will be verified pursuant to a security
2480	2431		procedure, a payment order received b y the receiving bank is
2481	2432		effective as the order of the customer, w hether or not authorized,
2482	2433		if (i) the security procedure is a commercially reasonable method of
2483	2434		providing security against unauthorized payment orders, and ( ii) the
2484	2435		bank proves that it accepte d the payment order in good faith and in
2485	2436		compliance with the bank's obligations under the security procedure
2486	2437		and any written agreement or instruction of the cust omer, evidenced
2487	2438		by a record, restricting acceptance of payme nt orders issued in the
2488	2439		name of the customer. The bank is not required to follow an
2489	2440
2490		-	HB2776 HFLR Page 48
2491		-	BOLD FACE denotes Committee Amendments. 1
	2441	+	Req. No. 6221 Page 48 1
2492	2442		2
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2505	2455		15
2506	2456		16
2507	2457		17
2508	2458		18
2509	2459		19
2510	2460		20
2511	2461		21
2512	2462		22
2513	2463		23
2514	2464		24
2515	2465
2516	2466		instruction that violates a written an agreement with the customer ,
2517	2467		evidenced by a record, or notice of which i s not received at a time
2518	2468		and in a manner affording the bank a reasonable opportunity to act
2519	2469		on it before the payment order is accepted.
2520	2470		(c) Commercial reasonab leness of a security procedure is a
2521	2471		question of law to be determined by considering the wishes o f the
2522	2472		customer expressed to the bank, the circumstances of t he customer
2523	2473		known to the bank, includi ng the size, type, and frequency of
2524	2474		payment orders normally is sued by the customer to the bank,
2525	2475		alternative security procedures offered to the customer, and
2526	2476		security procedures in general use by customers and receiving banks
2527	2477		similarly situated. A security procedure is deemed to be
2528	2478		commercially reasonable if (i) the security procedure was chosen by
2529	2479		the customer after the bank offered, and the customer refused, a
2530	2480		security procedure that was commercially reasonable for th at
2531	2481		customer, and (ii) the customer exp ressly agreed in writing a record
2532	2482		to be bound by any payment o rder, whether or not authorized, issued
2533	2483		in its name and accepted by the bank in compliance with the bank's
2534	2484		obligations under the security procedure chosen b y the customer.
2535	2485		(d) The term "sender" in this Article includes the customer in
2536	2486		whose name a payment order is issued if the order is the authorized
2537	2487		order of the customer under subsection (a), or i t is effective as
2538	2488		the order of the customer under subsection (b).
2539	2489
2540		-	HB2776 HFLR Page 49
2541		-	BOLD FACE denotes Committee Amendments. 1
	2490	+	Req. No. 6221 Page 49 1
2542	2491		2
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2555	2504		15
2556	2505		16
2557	2506		17
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2560	2509		20
2561	2510		21
2562	2511		22
2563	2512		23
2564	2513		24
2565	2514
2566	2515		(e) This section applies to ame ndments and cancellations of
2567	2516		payment orders to the same extent it applies to payment orders.
2568	2517		(f) Except as provide d in this section and in paragraph (1) of
2569	2518		subsection (a) of Section 11 of this act rights and obligatio ns
2570	2519		arising under this section or Secti on 11 of this act may not be
2571	2520		varied by agreement.
2572	2521		SECTION 27. AMENDATORY 12A O.S. 2021, Section 4A -203, is
2573	2522		amended to read as follows:
2574	2523		Section 4A-203.
2575	2524		UNENFORCEABILITY OF CERTA IN VERIFIED PAYMENT ORDERS
2576	2525		(a) If an accepted payment order is not, under subsection (a)
2577	2526		of Section 10 of this act, an authorized order of a customer
2578	2527		identified as sender, but is effective as an order of the customer
2579	2528		pursuant to subsection (b) of Section 10 of this act, the following
2580	2529		rules apply:
2581	2530		(1) By express written agreement evidenced by a record , the
2582	2531		receiving bank may limit the extent to which it is entitled to
2583	2532		enforce or retain payment of the payment order.
2584	2533		(2) The receiving bank is not entitled to enforce or retain
2585	2534		payment of the payment order if the cust omer proves that the order
2586	2535		was not caused, directly or i ndirectly, by a person (i) entrusted at
2587	2536		any time with duties to act f or the customer with respect to payment
2588	2537		orders or the security procedu re, or (ii) who obtained access to
2589	2538		transmitting facilities of the customer or who obtained, from a
2590	2539
2591		-	HB2776 HFLR Page 50
2592		-	BOLD FACE denotes Committee Amendments. 1
	2540	+	Req. No. 6221 Page 50 1
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2605	2553		14
2606	2554		15
2607	2555		16
2608	2556		17
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2612	2560		21
2613	2561		22
2614	2562		23
2615	2563		24
2616	2564
2617	2565		source controlled by the customer and without authority of the
2618	2566		receiving bank, informat ion facilitating breach of the security
2619	2567		procedure, regardless of how t he information was obtained or whether
2620	2568		the customer was at fa ult. Information includes any access device,
2621	2569		computer software, or the like.
2622	2570		(b) This section applies to amendments of paym ent orders to the
2623	2571		same extent it applies to payment orders.
2624	2572		SECTION 28. AMENDATORY 12A O.S. 2021, Section 4A-207, is
2625	2573		amended to read as follows:
2626	2574		Section 4A-207.
2627	2575		MISDESCRIPTION OF BENEFICIARY
2628	2576		(a) Subject to subsection (b) of this section, if, i n a payment
2629	2577		order received by the beneficiary 's bank, the name, bank acco unt
2630	2578		number, or other identification of the be neficiary refers to a
2631	2579		nonexistent or unidentifiable person or account, no person has
2632	2580		rights as a beneficiary of the order and acceptance o f the order
2633	2581		cannot occur.
2634	2582		(b) If a payment order received by the benefic iary's bank
2635	2583		identifies the beneficiary both b y name and by an identifying or
2636	2584		bank account number and the name and number identify different
2637	2585		persons, the following rules apply:
2638	2586		(1) Except as otherwise provided in subsection (c) of this
2639	2587		section, if the bene ficiary's bank does not know that the name an d
2640	2588		number refer to different persons, it may rely on the number as the
2641	2589
2642		-	HB2776 HFLR Page 51
2643		-	BOLD FACE denotes Committee Amendments. 1
	2590	+	Req. No. 6221 Page 51 1
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2664	2611		22
2665	2612		23
2666	2613		24
2667	2614
2668	2615		proper identification of the beneficiary of the order. The
2669	2616		beneficiary's bank need not determine whether the name and number
2670	2617		refer to the same person.
2671	2618		(2) If the beneficiary 's bank pays the person identified by
2672	2619		name or knows that the name and number identify different persons,
2673	2620		no person has rights as beneficiary except t he person paid by the
2674	2621		beneficiary's bank if that person was entitled to r eceive payment
2675	2622		from the originator of the fun ds transfer. If no person has rights
2676	2623		as beneficiary, acceptance of the order cannot occur.
2677	2624		(c) If (i) a payment order described in subse ction (b) of this
2678	2625		section is accepted, (ii) the originator 's payment order described
2679	2626		the beneficiary inconsistently by name and number, and (iii) the
2680	2627		beneficiary's bank pays the person identified by number as permitted
2681	2628		by paragraph (1) of subsection (b) of this section, the following
2682	2629		rules apply:
2683	2630		(1) If the originator is a ban k, the originator is obliged to
2684	2631		pay its order.
2685	2632		(2) If the originator is not a bank a nd proves that the person
2686	2633		identified by number was not entitled to receive payment from the
2687	2634		originator, the originator is not obliged to pay its order unless
2688	2635		the originator's bank proves that the originator, before a cceptance
2689	2636		of the originator's order, had notice that payment of a payment
2690	2637		order issued by the originator might be made by the beneficiary 's
2691	2638		bank on the basis of an identifying or bank account number even if
2692	2639
2693		-	HB2776 HFLR Page 52
2694		-	BOLD FACE denotes Committee Amendments. 1
	2640	+	Req. No. 6221 Page 52 1
2695	2641		2
2696	2642		3
2697	2643		4
2698	2644		5
2699	2645		6
2700	2646		7
2701	2647		8
2702	2648		9
2703	2649		10
2704	2650		11
2705	2651		12
2706	2652		13
2707	2653		14
2708	2654		15
2709	2655		16
2710	2656		17
2711	2657		18
2712	2658		19
2713	2659		20
2714	2660		21
2715	2661		22
2716	2662		23
2717	2663		24
2718	2664
2719	2665		it identifies a person different from the named b eneficiary. Proof
2720	2666		of notice may be made by any admissible evidence. The originator's
2721	2667		bank satisfies the burden of proof if it proves tha t the originator,
2722	2668		before the payment order was accepted, signed a writing record
2723	2669		stating the information to which the notice relates.
2724	2670		(d) In a case governed by paragraph (1) of subsection (b) of
2725	2671		this section, if the beneficiary 's bank rightfully pays the person
2726	2672		identified by number and that person was not entitled to receive
2727	2673		payment from the originator, the amount paid m ay be recovered from
2728	2674		that person to the extent allowed by the law governing mistake and
2729	2675		restitution as follows:
2730	2676		(1) If the originator is obliged to pay its payment order as
2731	2677		stated in subsection (c) of this sect ion, the originator has the
2732	2678		right to recover.
2733	2679		(2) If the originator is not a bank an d is not obliged to pay
2734	2680		its payment order, the originator's bank has the right to recover.
2735	2681		SECTION 29. AMENDATORY 12A O.S. 2021, Section 4A -208, is
2736	2682		amended to read as follows:
2737	2683		Section 4A-208.
2738	2684		MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY 'S BANK
2739	2685		(a) This subsection applies to a payment order identifying an
2740	2686		intermediary bank or the beneficiary 's bank only by an identi fying
2741	2687		number.
2742	2688
2743		-	HB2776 HFLR Page 53
2744		-	BOLD FACE denotes Committee Amendments. 1
	2689	+	Req. No. 6221 Page 53 1
2745	2690		2
2746	2691		3
2747	2692		4
2748	2693		5
2749	2694		6
2750	2695		7
2751	2696		8
2752	2697		9
2753	2698		10
2754	2699		11
2755	2700		12
2756	2701		13
2757	2702		14
2758	2703		15
2759	2704		16
2760	2705		17
2761	2706		18
2762	2707		19
2763	2708		20
2764	2709		21
2765	2710		22
2766	2711		23
2767	2712		24
2768	2713
2769	2714		(1) The receiving bank may rely on the num ber as the proper
2770	2715		identification of the intermediary or beneficiary 's bank and need
2771	2716		not determine whether the number identifies a bank.
2772	2717		(2) The sender is obliged to compensate the receiving bank for
2773	2718		any loss and expenses incu rred by the receiving bank as a result of
2774	2719		its reliance on the number in executing or attempting to e xecute the
2775	2720		order.
2776	2721		(b) This subsection applies to a payment order identifying an
2777	2722		intermediary bank or the beneficiary 's bank both by name and an
2778	2723		identifying number if the name and number identify different
2779	2724		persons.
2780	2725		(1) If the sender is a bank, the receivi ng bank may rely on the
2781	2726		number as the proper identification of the intermediary or
2782	2727		beneficiary's bank if the receiving bank, when it executes the
2783	2728		sender's order, does not know that the n ame and number identify
2784	2729		different persons. The receiving bank need no t determine whether
2785	2730		the name and number refer to the same person or whether the number
2786	2731		refers to a bank. The sender is obliged t o compensate the receiving
2787	2732		bank for any loss and expenses incurred by the receiving bank as a
2788	2733		result of its reliance on the num ber in executing or attempting to
2789	2734		execute the order.
2790	2735		(2) If the sender is not a bank and the receiving bank proves
2791	2736		that the sender, before the payment orde r was accepted, had notice
2792	2737		that the receiving bank might rely on the number as the proper
2793	2738
2794		-	HB2776 HFLR Page 54
2795		-	BOLD FACE denotes Committee Amendments. 1
	2739	+	Req. No. 6221 Page 54 1
2796	2740		2
2797	2741		3
2798	2742		4
2799	2743		5
2800	2744		6
2801	2745		7
2802	2746		8
2803	2747		9
2804	2748		10
2805	2749		11
2806	2750		12
2807	2751		13
2808	2752		14
2809	2753		15
2810	2754		16
2811	2755		17
2812	2756		18
2813	2757		19
2814	2758		20
2815	2759		21
2816	2760		22
2817	2761		23
2818	2762		24
2819	2763
2820	2764		identification of the intermed iary or beneficiary's bank even if it
2821	2765		identifies a person different from the bank identified by name, the
2822	2766		rights and obligations of the sender and the receiving bank are
2823	2767		governed by paragraph (1) of subsection (b) of this section, as
2824	2768		though the sender were a bank. Proof of notice may be made by any
2825	2769		admissible evidence. The receiving bank satisfies the burden of
2826	2770		proof if it proves that th e sender, before the payment o rder was
2827	2771		accepted, signed a writing record stating the information to which
2828	2772		the notice relates.
2829	2773		(3) Regardless of whether the sender is a bank, the receiving
2830	2774		bank may rely on the name as the proper identif ication of the
2831	2775		intermediary or beneficiary 's bank if the receiving bank, at the
2832	2776		time it executes the sender 's order, does not know that the name and
2833	2777		number identify different persons. The receiving bank need not
2834	2778		determine whether the name and number refer to the same person.
2835	2779		(4) If the receiving bank kn ows that the name and number
2836	2780		identify different persons, reliance on e ither the name or th e
2837	2781		number in executing the sender's payment order is a breach of the
2838	2782		obligation stated in paragraph (1) of subsection (a) of Section 22
2839	2783		of this act.
2840	2784		SECTION 30. AMENDATORY 12A O.S. 2021, Section 4A-210, is
2841	2785		amended to read as follows:
2842	2786		Section 4A-210.
2843	2787		REJECTION OF PAYMENT ORDER
2844	2788
2845		-	HB2776 HFLR Page 55
2846		-	BOLD FACE denotes Committee Amendments. 1
	2789	+	Req. No. 6221 Page 55 1
2847	2790		2
2848	2791		3
2849	2792		4
2850	2793		5
2851	2794		6
2852	2795		7
2853	2796		8
2854	2797		9
2855	2798		10
2856	2799		11
2857	2800		12
2858	2801		13
2859	2802		14
2860	2803		15
2861	2804		16
2862	2805		17
2863	2806		18
2864	2807		19
2865	2808		20
2866	2809		21
2867	2810		22
2868	2811		23
2869	2812		24
2870	2813
2871	2814		(a) A payment order is rejected by the receiving bank by a
2872	2815		notice of rejection transmitte d to the sender orally ,
2873	2816		electronically, or in writing a record. A notice of rejection need
2874	2817		not use any particular words and is sufficient if it indicates that
2875	2818		the receiving bank is rejecting the order or will not execute or pay
2876	2819		the order. Rejection is ef fective when the notice is given if
2877	2820		transmission is by a means that is reasonable in the circumstances.
2878	2821		If notice of rejection is given by a means that is not reasonable,
2879	2822		rejection is effective when the notice is received. If an agreement
2880	2823		of the sender and receiving bank establishes the means to be u sed to
2881	2824		reject a payment order, (i) any means complying with the agreement
2882	2825		is reasonable and (ii) any means not complying is not reasonable
2883	2826		unless no significant delay in receipt of the notice resulted from
2884	2827		the use of the noncomplying means.
2885	2828		(b) This subsection applies if a receiving bank other than the
2886	2829		beneficiary's bank fails to execute a payment order despite the
2887	2830		existence on the execution date of a withdrawable credit balance in
2888	2831		an authorized account of the sender sufficient to cover the order.
2889	2832		If the sender does not receive notice of rejection of the order on
2890	2833		the execution date and the authorized account of the sender does not
2891	2834		bear interest, the bank is obliged to pay interest to t he sender on
2892	2835		the amount of the order for the number of days elapsing aft er the
2893	2836		execution date to the earlier of the day the order is canceled
2894	2837		pursuant to subsection (d) of Section 19 of this act or the day the
2895	2838
2896		-	HB2776 HFLR Page 56
2897		-	BOLD FACE denotes Committee Amendments. 1
	2839	+	Req. No. 6221 Page 56 1
2898	2840		2
2899	2841		3
2900	2842		4
2901	2843		5
2902	2844		6
2903	2845		7
2904	2846		8
2905	2847		9
2906	2848		10
2907	2849		11
2908	2850		12
2909	2851		13
2910	2852		14
2911	2853		15
2912	2854		16
2913	2855		17
2914	2856		18
2915	2857		19
2916	2858		20
2917	2859		21
2918	2860		22
2919	2861		23
2920	2862		24
2921	2863
2922	2864		sender receives notice or learns that the orde r was not executed,
2923	2865		counting the final day of the period as an elapsed d ay. If the
2924	2866		withdrawable credit balance during that period falls below the
2925	2867		amount of the order, the amount of interest is reduced accordingly.
2926	2868		(c) If a receiving bank suspends payment s, all unaccepted
2927	2869		payment orders issued to it are deemed rejected at the time the bank
2928	2870		suspends payments.
2929	2871		(d) Acceptance of a payment order precludes a later rejection
2930	2872		of the order. Rejection of a payment order precludes a later
2931	2873		acceptance of the order.
2932	2874		SECTION 31. AMENDATORY 12A O.S. 2021, Section 4A-211, is
2933	2875		amended to read as follows:
2934	2876		Section 4A-211.
2935	2877		CANCELLATION AND AME NDMENT OF PAYMENT ORDER
2936	2878		(a) A communication of the se nder of a payment order canceling
2937	2879		or amending the order may be transmitted to th e receiving bank
2938	2880		orally, electronically, or in writing a record. If a security
2939	2881		procedure is in effe ct between the sender and the receiving bank,
2940	2882		the communication is not effec tive to cancel or amend the order
2941	2883		unless the communication is verified pursuant to the security
2942	2884		procedure or the bank agrees to the cancellation or amendment.
2943	2885		(b) Subject to subse ction (a) of this sect ion, a communication
2944	2886		by the sender canceling or amendi ng a payment order is effective to
2945	2887		cancel or amend the order if notice of the co mmunication is received
2946	2888
2947		-	HB2776 HFLR Page 57
2948		-	BOLD FACE denotes Committee Amendments. 1
	2889	+	Req. No. 6221 Page 57 1
2949	2890		2
2950	2891		3
2951	2892		4
2952	2893		5
2953	2894		6
2954	2895		7
2955	2896		8
2956	2897		9
2957	2898		10
2958	2899		11
2959	2900		12
2960	2901		13
2961	2902		14
2962	2903		15
2963	2904		16
2964	2905		17
2965	2906		18
2966	2907		19
2967	2908		20
2968	2909		21
2969	2910		22
2970	2911		23
2971	2912		24
2972	2913
2973	2914		at a time and in a manner affording the receiving bank a reasonable
2974	2915		opportunity to act on the comm unication before the bank accepts the
2975	2916		payment order.
2976	2917		(c) After a payment order has been accepted, cancellation or
2977	2918		amendment of the order is not effective unless the receiving bank
2978	2919		agrees or a funds-transfer system rule allows cancell ation or
2979	2920		amendment without agreement of the bank.
2980	2921		(1) With respect to a pay ment order accepted by a receiving
2981	2922		bank other than the beneficiary 's bank, cancellation or amendment is
2982	2923		not effective unless a conforming cancellation or amendment of the
2983	2924		payment order issued by the rec eiving bank is also made.
2984	2925		(2) With respect to a payme nt order accepted by the
2985	2926		beneficiary's bank, cancellation or amendment is not ef fective
2986	2927		unless the order was issued in execution of an unauthorized payment
2987	2928		order, or because of a m istake by a sender in the funds transfer
2988	2929		which resulted in the issuance of a payment order (i) that is a
2989	2930		duplicate of a payment order previously issued by t he sender, (ii)
2990	2931		that orders payment to a beneficiary not entitled to receive payment
2991	2932		from the originator, or (iii) that or ders payment in an amount
2992	2933		greater than the amount the beneficiary was entitled to receive from
2993	2934		the originator. If the payment order i s canceled or amended, the
2994	2935		beneficiary's bank is entitled to recover from the beneficiary any
2995	2936		amount paid to the beneficia ry to the extent allowed by the law
2996	2937		governing mistake and restitution.
2997	2938
2998		-	HB2776 HFLR Page 58
2999		-	BOLD FACE denotes Committee Amendments. 1
	2939	+	Req. No. 6221 Page 58 1
3000	2940		2
3001	2941		3
3002	2942		4
3003	2943		5
3004	2944		6
3005	2945		7
3006	2946		8
3007	2947		9
3008	2948		10
3009	2949		11
3010	2950		12
3011	2951		13
3012	2952		14
3013	2953		15
3014	2954		16
3015	2955		17
3016	2956		18
3017	2957		19
3018	2958		20
3019	2959		21
3020	2960		22
3021	2961		23
3022	2962		24
3023	2963
3024	2964		(d) An unaccepted payment order is canceled by operation of la w
3025	2965		at the close of the fifth funds-transfer business day of the
3026	2966		receiving bank after the execution da te or payment date of the
3027	2967		order.
3028	2968		(e) A canceled payment order cannot be acc epted. If an
3029	2969		accepted payment order is canceled, the acceptance is nullified an d
3030	2970		no person has any right or obligation based on the acceptance.
3031	2971		Amendment of a payment order is de emed to be cancellatio n of the
3032	2972		original order at the time of amendment and i ssue of a new payment
3033	2973		order in the amended form at the same time.
3034	2974		(f) Unless otherwise provided in an agreement of the parties or
3035	2975		in a funds-transfer system rule, if the receiving bank, after
3036	2976		accepting a payment order, agrees to cancellation or amendment of
3037	2977		the order by the sender or is bound by a funds -transfer system rule
3038	2978		allowing cancellation or amendment without the bank's agreement, the
3039	2979		sender, whether or not cancellation or a mendment is effective, is
3040	2980		liable to the bank for any loss and expenses, incl uding reasonable
3041	2981		attorney's fees, incurred by the bank as a result of the
3042	2982		cancellation or amendment or attempted cancellation or amendment.
3043	2983		(g) A payment order is not revoked by t he death or legal
3044	2984		incapacity of the sender unless the receiving bank knows o f the
3045	2985		death or of an adjudication of incapacity by a court of competent
3046	2986		jurisdiction and has reasonable opportunity to act before acceptance
3047	2987		of the order.
3048	2988
3049		-	HB2776 HFLR Page 59
3050		-	BOLD FACE denotes Committee Amendments. 1
	2989	+	Req. No. 6221 Page 59 1
3051	2990		2
3052	2991		3
3053	2992		4
3054	2993		5
3055	2994		6
3056	2995		7
3057	2996		8
3058	2997		9
3059	2998		10
3060	2999		11
3061	3000		12
3062	3001		13
3063	3002		14
3064	3003		15
3065	3004		16
3066	3005		17
3067	3006		18
3068	3007		19
3069	3008		20
3070	3009		21
3071	3010		22
3072	3011		23
3073	3012		24
3074	3013
3075	3014		(h) A funds-transfer system rule is not effect ive to the extent
3076	3015		it conflicts with paragraph (2) of s ubsection (c) of this section.
3077	3016		SECTION 32. AMENDATORY 12A O.S. 2021, Section 4A -305, is
3078	3017		amended to read as follows:
3079	3018		Section 4A-305.
3080	3019		LIABILITY FOR LATE OR I MPROPER EXECUTION OR FAILURE TO
3081	3020		EXECUTE PAYMENT ORDER
3082	3021		(a) If a funds transfer is completed but execution of a paymen t
3083	3022		order by the receiving bank in breach of Section 22 of this act
3084	3023		results in delay in p ayment to the beneficiary, the bank is obliged
3085	3024		to pay interest to eithe r the originator or the beneficiary of the
3086	3025		funds transfer for the period of delay caused by the im proper
3087	3026		execution. Except as provided in subsection (c) of this section,
3088	3027		additional damages are not recoverable.
3089	3028		(b) If execution of a pa yment order by a rec eiving bank in
3090	3029		breach of Section 22 of this act results in (i) noncompletion of the
3091	3030		funds transfer, (ii) failure to use an intermediary bank designated
3092	3031		by the originator, or (iii) issua nce of a payment order that does
3093	3032		not comply with the terms of the payme nt order of the originator,
3094	3033		the bank is liable to the originator for its expenses in the funds
3095	3034		transfer and for incidental expenses and interest losses, to the
3096	3035		extent not covered by sub section (a) of this section, resulting from
3097	3036		the improper execution. Ex cept as provided in subsection (c) of
3098	3037		this section, additional damages are not recoverable.
3099	3038
3100		-	HB2776 HFLR Page 60
3101		-	BOLD FACE denotes Committee Amendments. 1
	3039	+	Req. No. 6221 Page 60 1
3102	3040		2
3103	3041		3
3104	3042		4
3105	3043		5
3106	3044		6
3107	3045		7
3108	3046		8
3109	3047		9
3110	3048		10
3111	3049		11
3112	3050		12
3113	3051		13
3114	3052		14
3115	3053		15
3116	3054		16
3117	3055		17
3118	3056		18
3119	3057		19
3120	3058		20
3121	3059		21
3122	3060		22
3123	3061		23
3124	3062		24
3125	3063
3126	3064		(c) In addition to the amounts payable under subsections (a)
3127	3065		and (b) of this section, damage s, including consequential damages,
3128	3066		are recoverable to the extent provided in an express written
3129	3067		agreement of the receiving bank , evidenced by a record.
3130	3068		(d) If a receiving bank fails to execute a payment order it was
3131	3069		obliged by express agreement to execut e, the receiving bank is
3132	3070		liable to the sender for i ts expenses in the t ransaction and for
3133	3071		incidental expenses and interest losses resulting from the failure
3134	3072		to execute. Additional damages, incl uding consequential damages,
3135	3073		are recoverable to the extent pro vided in an express written
3136	3074		agreement of the receiv ing bank, evidenced by a record , but are not
3137	3075		otherwise recoverable.
3138	3076		(e) Reasonable attorney 's fees are recoverable if demand for
3139	3077		compensation under subsection (a) or (b) of this section is made and
3140	3078		refused before an action is brought on the clai m. If a claim is
3141	3079		made for breach of an agreement under subsection (d) of this section
3142	3080		and the agreement does not provide for damages, reasonable
3143	3081		attorney's fees are recoverabl e if demand for compensation under
3144	3082		subsection (d) of this section is made and re fused before an action
3145	3083		is brought on the claim.
3146	3084		(f) Except as stated in this section, the liability of a
3147	3085		receiving bank under subsections (a) and (b) of this section may not
3148	3086		be varied by agreement.
3149	3087
3150		-	HB2776 HFLR Page 61
3151		-	BOLD FACE denotes Committee Amendments. 1
	3088	+	Req. No. 6221 Page 61 1
3152	3089		2
3153	3090		3
3154	3091		4
3155	3092		5
3156	3093		6
3157	3094		7
3158	3095		8
3159	3096		9
3160	3097		10
3161	3098		11
3162	3099		12
3163	3100		13
3164	3101		14
3165	3102		15
3166	3103		16
3167	3104		17
3168	3105		18
3169	3106		19
3170	3107		20
3171	3108		21
3172	3109		22
3173	3110		23
3174	3111		24
3175	3112
3176	3113		SECTION 33. AMENDATORY 12A O.S . 2021, Section 5-104, is
3177	3114		amended to read as follows:
3178	3115		Section 5-104.
3179	3116		Formal Requirements.
3180	3117		A letter of credit, confirmation , advice, transfer, amendment,
3181	3118		or cancellation may be issued in any form that is a signed record
3182	3119		and is authenticated:
3183	3120		(1) By a signature; or
3184	3121		(2) In accordance with the agreement of the parties or the
3185	3122		standard practice referred to in subsection (e) of
3186	3123		Section 5-108 of this title.
3187	3124		SECTION 34. AMENDATORY 12A O.S. 2021, Section 5-116, is
3188	3125		amended to read as follows:
3189	3126		Section 5-116.
3190	3127		Choice of Law and Forum.
3191	3128		(a) The liability of an issuer, nominated person, or adviser for
3192	3129		action or omission is governed by the law of the jurisdi ction chosen
3193	3130		by an agreement in the form of a record sig ned or otherwise
3194	3131		authenticated by the affected parties in the manner provided in
3195	3132		Section 5-104 of this title or by a provision in the person 's letter
3196	3133		of credit, confirmation, or other undertaking. Th e jurisdiction
3197	3134		whose law is chosen need not bear any rel ation to the transaction.
3198	3135		(b) Unless subsection (a) of this sectio n applies, the
3199	3136		liability of an issuer, nominated person, or adviser for action or
3200	3137
3201		-	HB2776 HFLR Page 62
3202		-	BOLD FACE denotes Committee Amendments. 1
	3138	+	Req. No. 6221 Page 62 1
3203	3139		2
3204	3140		3
3205	3141		4
3206	3142		5
3207	3143		6
3208	3144		7
3209	3145		8
3210	3146		9
3211	3147		10
3212	3148		11
3213	3149		12
3214	3150		13
3215	3151		14
3216	3152		15
3217	3153		16
3218	3154		17
3219	3155		18
3220	3156		19
3221	3157		20
3222	3158		21
3223	3159		22
3224	3160		23
3225	3161		24
3226	3162
3227	3163		omission is governed by the law of the jurisdiction in which the
3228	3164		person is located. The person is consider ed to be located at the
3229	3165		address indicated in the person's undertaking. If more than one
3230	3166		address is indicated, the person is considered to be located at the
3231	3167		address from which the person 's undertaking was issued.
3232	3168		(c) For the purpose of jurisdiction, choic e of law, and
3233	3169		recognition of interbranch letters of credit, but not enforcement of
3234	3170		a judgment, all branches of a bank are considered separate juridical
3235	3171		entities and a bank is considered to be located at the place where
3236	3172		its relevant branch is considered to be located under this
3237	3173		subsection (d) of this section.
3238	3174		(d) A branch of a bank is considered to be located at the
3239	3175		address indicated in the branch's undertaking. If more than one
3240	3176		address is indicated, the branch is co nsidered to be located at the
3241	3177		address from which the undertaking was issued.
3242	3178		(c) (e) Except as otherwise provided in this subsection, the
3243	3179		liability of an issuer, nominated person, or adviser is governed by
3244	3180		any rules of custom or practice, such as the Unif orm Customs and
3245	3181		Practice for Documentary Credits, to which the letter of credit,
3246	3182		confirmation, or other undertaking is expressly made subject. If:
3247	3183		(1) This article would govern the liability of an issuer,
3248	3184		nominated person, or adviser under subsection (a) or
3249	3185		(b) of this section;
3250	3186
3251		-	HB2776 HFLR Page 63
3252		-	BOLD FACE denotes Committee Amendments. 1
	3187	+	Req. No. 6221 Page 63 1
3253	3188		2
3254	3189		3
3255	3190		4
3256	3191		5
3257	3192		6
3258	3193		7
3259	3194		8
3260	3195		9
3261	3196		10
3262	3197		11
3263	3198		12
3264	3199		13
3265	3200		14
3266	3201		15
3267	3202		16
3268	3203		17
3269	3204		18
3270	3205		19
3271	3206		20
3272	3207		21
3273	3208		22
3274	3209		23
3275	3210		24
3276	3211
3277	3212		(2) The relevant undertaking incorporates rules of custom
3278	3213		or practice; and
3279	3214		(3) There is conflict between this article and those rules
3280	3215		as applied to that undertaking,
3281	3216		those rules govern except to the extent of any conflict with the
3282	3217		nonvariable provisions specified in subse ction (c) of Section 5-103
3283	3218		of this title.
3284	3219		(d) (f) If there is conflict between this article and Article
3285	3220		3, 4, 4A, or 9 of this title, this article governs.
3286	3221		(e) (g) The forum for settling disputes arising out of an
3287	3222		undertaking within this article may be c hosen in the manner and with
3288	3223		the binding effect that governing law may be chosen in accordance
3289	3224		with subsection (a) of this section.
3290	3225		SECTION 35. AMENDATORY 12A O.S. 2021, Section 7-102, is
3291	3226		amended to read as follows:
3292	3227		Section 7-102.
3293	3228		Definitions and Index of Definitions.
3294	3229		(a) In this article, unless the context otherwise requires
3295	3230		(1) "Bailee" means a person that by a warehouse receipt, bill
3296	3231		of lading or other document of title ack nowledges possession of
3297	3232		goods and contracts to deliver them.
3298	3233		(2) "Carrier" means a person that issues a bill of lading.
3299	3234		(3) "Consignee" means a person named in a bill of lading to
3300	3235		which or to whose order the bill promises delivery.
3301	3236
3302		-	HB2776 HFLR Page 64
3303		-	BOLD FACE denotes Committee Amendments. 1
	3237	+	Req. No. 6221 Page 64 1
3304	3238		2
3305	3239		3
3306	3240		4
3307	3241		5
3308	3242		6
3309	3243		7
3310	3244		8
3311	3245		9
3312	3246		10
3313	3247		11
3314	3248		12
3315	3249		13
3316	3250		14
3317	3251		15
3318	3252		16
3319	3253		17
3320	3254		18
3321	3255		19
3322	3256		20
3323	3257		21
3324	3258		22
3325	3259		23
3326	3260		24
3327	3261
3328	3262		(4) "Consignor" means the person named in a bil l of lading as
3329	3263		the person from whom the goods have been received for s hipment.
3330	3264		(5) "Delivery order" means a record that contains an order to
3331	3265		deliver goods directed to a warehouse, carrier, or other person that
3332	3266		in the ordinary course of business issues war ehouse receipts or
3333	3267		bills of lading.
3334	3268		(6) "Good faith" means honesty in fact and the observance of
3335	3269		reasonable commercial standards of fair dealing.
3336	3270		(7) "Goods" means all things that are treated as movable for
3337	3271		the purposes of a con tract of storage or transp ortation.
3338	3272		(8) "Issuer" means a bailee that issues a document of title or,
3339	3273		in the case of an unaccepted delivery order, the person that orders
3340	3274		the possessor of goods to deliver. The term includes a person for
3341	3275		which an agent or employee purports to act in issuing a document if
3342	3276		the agent or employee has real or apparent autho rity to issue
3343	3277		documents, even if the issuer did not receive any goods, the goods
3344	3278		were misdescribed, or in any other respect the agent or employee
3345	3279		violated the issuer's instructions.
3346	3280		(9) "Person entitled under the d ocument" means the holder, in
3347	3281		the case of a negotiable document of titl e, or the person to which
3348	3282		delivery of the goods is to be made by the terms of, or pursuan t to
3349	3283		instructions in a record under, a no nnegotiable document of ti tle.
3350	3284
3351		-	HB2776 HFLR Page 65
3352		-	BOLD FACE denotes Committee Amendments. 1
	3285	+	Req. No. 6221 Page 65 1
3353	3286		2
3354	3287		3
3355	3288		4
3356	3289		5
3357	3290		6
3358	3291		7
3359	3292		8
3360	3293		9
3361	3294		10
3362	3295		11
3363	3296		12
3364	3297		13
3365	3298		14
3366	3299		15
3367	3300		16
3368	3301		17
3369	3302		18
3370	3303		19
3371	3304		20
3372	3305		21
3373	3306		22
3374	3307		23
3375	3308		24
3376	3309
3377	3310		(10) "Record" means information that is inscribed on a tangible
3378	3311		medium or that is stored in an electronic or other medium and is
3379	3312		retrievable in perceivable form.
3380	3313		(11) "Sign" means, with present intent to authenticate or ado pt
3381	3314		a record:
3382	3315		(A) to execute or adopt a tangible symbol; or
3383	3316		(B) to attach to or logically associa te with the record an
3384	3317		electronic sound, symbol, or process.
3385	3318		(12) "Shipper" means a person that enters into a contract of
3386	3319		transportation with a carrier.
3387	3320		(13) (11) "Warehouse" means a person engaged in the business of
3388	3321		storing goods for hire.
3389	3322		(b) Definitions in other articles applying to this article and
3390	3323		the sections in which they appear are:
3391	3324		(1) "Contract for sale", Section 2-106.
3392	3325		(2) "Lessee in the ordinary c ourse of business", Section 2A-
3393	3326		103.
3394	3327		(3) "Receipt" of goods, Section 2-103.
3395	3328		(c) In addition Article 1 contains general defini tions and
3396	3329		principles of construction and interpretation applicable throughout
3397	3330		this article.
3398	3331		SECTION 36. AMENDATORY 12A O.S. 2021, S ection 7-106, is
3399	3332		amended to read as follows:
3400	3333		Section 7-106.
3401	3334
3402		-	HB2776 HFLR Page 66
3403		-	BOLD FACE denotes Committee Amendments. 1
	3335	+	Req. No. 6221 Page 66 1
3404	3336		2
3405	3337		3
3406	3338		4
3407	3339		5
3408	3340		6
3409	3341		7
3410	3342		8
3411	3343		9
3412	3344		10
3413	3345		11
3414	3346		12
3415	3347		13
3416	3348		14
3417	3349		15
3418	3350		16
3419	3351		17
3420	3352		18
3421	3353		19
3422	3354		20
3423	3355		21
3424	3356		22
3425	3357		23
3426	3358		24
3427	3359
3428	3360		Control of Electronic Document of Title.
3429	3361		(a) A person has control of an electronic document of title if
3430	3362		a system employed for evidencing the transfer of interests in the
3431	3363		electronic document reli ably establishes that person as the person
3432	3364		to which the electronic docu ment was issued or tran sferred.
3433	3365		(b) A system satisfies subsection (a) of this section, and a
3434	3366		person is deemed to have has control of an electronic document of
3435	3367		title, if the document is created, stored, and assigned transferred
3436	3368		in such a manner that:
3437	3369		(1) a single authoritative copy of the document exists which
3438	3370		is unique, identifiable, and, except as otherwise provided in
3439	3371		paragraphs (4), (5), and (6) o f this subsection, unalterable;
3440	3372		(2) the authoritative copy identifies the person asserting
3441	3373		control as:
3442	3374		(A) the person to which th e document was issued; or
3443	3375		(B) if the authoritative copy indicates that the document
3444	3376		has been transferred, the person to which the document
3445	3377		was most recently trans ferred;
3446	3378		(3) the authoritative copy is communicated to and maintained by
3447	3379		the person asserting control or its designated custodian ;
3448	3380		(4) copies or amendments that add or change an identified
3449	3381		assignee transferee of the authoritative copy can be made only wit h
3450	3382		the consent of the person asse rting control;
3451	3383
3452		-	HB2776 HFLR Page 67
3453		-	BOLD FACE denotes Committee Amendments. 1
	3384	+	Req. No. 6221 Page 67 1
3454	3385		2
3455	3386		3
3456	3387		4
3457	3388		5
3458	3389		6
3459	3390		7
3460	3391		8
3461	3392		9
3462	3393		10
3463	3394		11
3464	3395		12
3465	3396		13
3466	3397		14
3467	3398		15
3468	3399		16
3469	3400		17
3470	3401		18
3471	3402		19
3472	3403		20
3473	3404		21
3474	3405		22
3475	3406		23
3476	3407		24
3477	3408
3478	3409		(5) each copy of the auth oritative copy and an y copy of a copy
3479	3410		is readily identifiable as a copy that is not the authoritative
3480	3411		copy; and
3481	3412		(6) any amendment of the authoritative copy is readily
3482	3413		identifiable as authorized or unauthorized.
3483	3414		(c) A system satisfies subsection (a) of this section, and a
3484	3415		person has control of an electronic document of title, if an
3485	3416		authoritative electronic copy of the document, a record attached to
3486	3417		or logically associated with the elec tronic copy, or a system in
3487	3418		which the electronic copy is recorded:
3488	3419		(1) enables the person re adily to identify each electronic copy
3489	3420		as either an authoritative copy or a nonauthoritative copy;
3490	3421		(2) enables the person readily to identify itself in any way,
3491	3422		including by name, identify ing number, cryptographic key, office, or
3492	3423		account number, as the person to which each authoritative electronic
3493	3424		copy was issued or transferred; and
3494	3425		(3) gives the person exclusive power , subject to subsection (d)
3495	3426		of this section, to:
3496	3427		(A) prevent others from addi ng or changing the person to
3497	3428		which each authoritative electronic copy has been
3498	3429		issued or transferred; and
3499	3430		(B) transfer control of each authoritative electronic
3500	3431		copy.
3501	3432
3502		-	HB2776 HFLR Page 68
3503		-	BOLD FACE denotes Committee Amendments. 1
	3433	+	Req. No. 6221 Page 68 1
3504	3434		2
3505	3435		3
3506	3436		4
3507	3437		5
3508	3438		6
3509	3439		7
3510	3440		8
3511	3441		9
3512	3442		10
3513	3443		11
3514	3444		12
3515	3445		13
3516	3446		14
3517	3447		15
3518	3448		16
3519	3449		17
3520	3450		18
3521	3451		19
3522	3452		20
3523	3453		21
3524	3454		22
3525	3455		23
3526	3456		24
3527	3457
3528	3458		(d) Subject to subsection (e) of this section, a power is
3529	3459		exclusive under subparagraphs (A) and (B) of paragraph (3) of
3530	3460		subsection (c) of this section even if:
3531	3461		(1) the authoritative electronic copy, a record attached to or
3532	3462		logically associated with the authoritative electronic copy, or a
3533	3463		system in which the authoritative electronic copy is re corded limits
3534	3464		the use of the document of title or has a protocol that is
3535	3465		programmed to cause a change, including a transfer or loss of
3536	3466		control; or
3537	3467		(2) the power is shared with another person.
3538	3468		(e) A power of a person is not shared with another person under
3539	3469		paragraph (2) of subsection (d) of this section and the person's
3540	3470		power is not exclusive if:
3541	3471		(1) the person can exercise the power only if the power also is
3542	3472		exercised by the other person; and
3543	3473		(2) the other person:
3544	3474		(A) can exercise the power without exer cise of the power
3545	3475		by the person; or
3546	3476		(B) is the transferor to the person of an interest i n the
3547	3477		document of title.
3548	3478		(f) If a person has the powers specified in subparagraphs (A)
3549	3479		and (B) of paragraph (3) of subsection (c) of this section, the
3550	3480		powers are presumed to be exclusive.
3551	3481
3552		-	HB2776 HFLR Page 69
3553		-	BOLD FACE denotes Committee Amendments. 1
	3482	+	Req. No. 6221 Page 69 1
3554	3483		2
3555	3484		3
3556	3485		4
3557	3486		5
3558	3487		6
3559	3488		7
3560	3489		8
3561	3490		9
3562	3491		10
3563	3492		11
3564	3493		12
3565	3494		13
3566	3495		14
3567	3496		15
3568	3497		16
3569	3498		17
3570	3499		18
3571	3500		19
3572	3501		20
3573	3502		21
3574	3503		22
3575	3504		23
3576	3505		24
3577	3506
3578	3507		(g) A person has control of an electronic document of title if
3579	3508		another person, other than the transf eror to the person of an
3580	3509		interest in the document:
3581	3510		(1) has control of the document and acknowledge s that it has
3582	3511		control on behalf of the person; or
3583	3512		(2) obtains control of th e document after having acknowledged
3584	3513		that it will obtain control of the document on behalf of the person.
3585	3514		(h) A person that has control under this section is not
3586	3515		required to acknowledge that it has control on behal f of another
3587	3516		person.
3588	3517		(i) If a person acknowledges that it has or will obtain control
3589	3518		on behalf of another person, unless th e person otherwise agrees or
3590	3519		law other than this article or Article 9 of this title otherwise
3591	3520		provides, the person doe s not owe any duty to the other person and
3592	3521		is not required to confirm the acknowledgment to any other person.
3593	3522		SECTION 37. AMENDATORY 12A O.S. 2021, Section 8 -102, is
3594	3523		amended to read as follow s:
3595	3524		Section 8-102.
3596	3525		Definitions.
3597	3526		(a) In this article:
3598	3527		(1) "Adverse claim" means a claim that a c laimant has a
3599	3528		property interest in a financial asset and tha t it is
3600	3529		a violation of the rights of the claimant for another
3601	3530
3602		-	HB2776 HFLR Page 70
3603		-	BOLD FACE denotes Committee Amendments. 1
	3531	+	Req. No. 6221 Page 70 1
3604	3532		2
3605	3533		3
3606	3534		4
3607	3535		5
3608	3536		6
3609	3537		7
3610	3538		8
3611	3539		9
3612	3540		10
3613	3541		11
3614	3542		12
3615	3543		13
3616	3544		14
3617	3545		15
3618	3546		16
3619	3547		17
3620	3548		18
3621	3549		19
3622	3550		20
3623	3551		21
3624	3552		22
3625	3553		23
3626	3554		24
3627	3555
3628	3556		person to hold, transfer or deal with the financial
3629	3557		asset;
3630	3558		(2) "Bearer form", as applied to a certificated security,
3631	3559		means a form in which the security is payable to the
3632	3560		bearer of the security c ertificate according to its
3633	3561		term but not by reason of an indorsement;
3634	3562		(3) "Broker" means a person defined as a broker or dealer
3635	3563		under the federal secu rities laws, but without
3636	3564		excluding a bank acti ng in that capacity;
3637	3565		(4) "Certificated security" means a security that is
3638	3566		represented by a certificate;
3639	3567		(5) "Clearing corporation " means:
3640	3568		(i) a person that is registered as a "clearing
3641	3569		agency" under the federal securities laws;
3642	3570		(ii) a federal reserve bank; or
3643	3571		(iii) any other person that provides clearance or
3644	3572		settlement services with respect to financial
3645	3573		assets that would require it to regist er as a
3646	3574		clearing agency under the federal securities laws
3647	3575		but for an exclusion or exemption from the
3648	3576		registration requirement, if its activities as a
3649	3577		clearing corporation, includ ing promulgation of
3650	3578		rules, are subject to regulation by a federal or
3651	3579		state governmental authority;
3652	3580
3653		-	HB2776 HFLR Page 71
3654		-	BOLD FACE denotes Committee Amendments. 1
	3581	+	Req. No. 6221 Page 71 1
3655	3582		2
3656	3583		3
3657	3584		4
3658	3585		5
3659	3586		6
3660	3587		7
3661	3588		8
3662	3589		9
3663	3590		10
3664	3591		11
3665	3592		12
3666	3593		13
3667	3594		14
3668	3595		15
3669	3596		16
3670	3597		17
3671	3598		18
3672	3599		19
3673	3600		20
3674	3601		21
3675	3602		22
3676	3603		23
3677	3604		24
3678	3605
3679	3606		(6) "Communicate" means to:
3680	3607		(i) send a signed writing record; or
3681	3608		(ii) transmit information by any mechanism agreed upon
3682	3609		by the persons transmitting and recei ving the
3683	3610		information;
3684	3611		(7) "Entitlement holder" means a person identified in the
3685	3612		records of a securities intermediary as the person
3686	3613		having a security entitlement against the securities
3687	3614		intermediary. If a person acquires a security
3688	3615		entitlement by virtue of paragraph (2) or (3) of
3689	3616		subsection (b) of Section 8 -501 of this title, that
3690	3617		person is the entitlement holder;
3691	3618		(8) "Entitlement order" means a notification communicated
3692	3619		to a securities intermediary directing transfer or
3693	3620		redemption of a financial asset to wh ich the
3694	3621		entitlement holder has a security entitlement;
3695	3622		(9) "Financial asset", except as otherwise provided in
3696	3623		Section 8-103 of this title, means:
3697	3624		(i) a security;
3698	3625		(ii) an obligation of a person or a share,
3699	3626		participation or other interest in a person or in
3700	3627		property or an enterprise of a person, which is,
3701	3628		or is of a type, dealt in or traded on financial
3702	3629		markets, or which is recognized in any area in
3703	3630
3704		-	HB2776 HFLR Page 72
3705		-	BOLD FACE denotes Committee Amendments. 1
	3631	+	Req. No. 6221 Page 72 1
3706	3632		2
3707	3633		3
3708	3634		4
3709	3635		5
3710	3636		6
3711	3637		7
3712	3638		8
3713	3639		9
3714	3640		10
3715	3641		11
3716	3642		12
3717	3643		13
3718	3644		14
3719	3645		15
3720	3646		16
3721	3647		17
3722	3648		18
3723	3649		19
3724	3650		20
3725	3651		21
3726	3652		22
3727	3653		23
3728	3654		24
3729	3655
3730	3656		which it is issued or dealt in as a medium for
3731	3657		investment; or
3732	3658		(iii) any property that is held by a securities
3733	3659		intermediary for another person in a securities
3734	3660		account if the securitie s intermediary has
3735	3661		expressly agreed with the other person that the
3736	3662		property is to be treated as a financial asset
3737	3663		under this article.
3738	3664		As context requires, the term means either the
3739	3665		interest itself or the means by which a person 's claim
3740	3666		to it is evidenced, including a certificated or
3741	3667		uncertificated security, a se curity certificate, or a
3742	3668		security entitlement;
3743	3669		(10) "Good faith", for purposes of the obligation of good
3744	3670		faith in the performance or enforcement of contracts
3745	3671		or duties within this article, means honesty in fact
3746	3672		and the observance of reasonable commerci al standards
3747	3673		of fair dealing;
3748	3674		(11) "Indorsement" means a signature that alone or
3749	3675		accompanied by other words is made on a security
3750	3676		certificate in registered form or on a separate
3751	3677		document for the purpose of assigning, transferring or
3752	3678		redeeming the security or granting a power to assign,
3753	3679		transfer, or redeem it;
3754	3680
3755		-	HB2776 HFLR Page 73
3756		-	BOLD FACE denotes Committee Amendments. 1
	3681	+	Req. No. 6221 Page 73 1
3757	3682		2
3758	3683		3
3759	3684		4
3760	3685		5
3761	3686		6
3762	3687		7
3763	3688		8
3764	3689		9
3765	3690		10
3766	3691		11
3767	3692		12
3768	3693		13
3769	3694		14
3770	3695		15
3771	3696		16
3772	3697		17
3773	3698		18
3774	3699		19
3775	3700		20
3776	3701		21
3777	3702		22
3778	3703		23
3779	3704		24
3780	3705
3781	3706		(12) "Instruction" means a notification communicated to the
3782	3707		issuer of an uncertificated security which directs
3783	3708		that the transfer of the security be registered or
3784	3709		that the security be redeemed;
3785	3710		(13) "Registered form", as applied to a certificate
3786	3711		security, means a fo rm in which:
3787	3712		(i) the security certificate specifies a person
3788	3713		entitled to the security; and
3789	3714		(ii) a transfer of the secur ity may be registered upon
3790	3715		books maintained for that purpose by or on behalf
3791	3716		of the issuer, or the securi ty certificate so
3792	3717		states;
3793	3718		(14) "Securities intermediary" means:
3794	3719		(i) a clearing corporation; or
3795	3720		(ii) a person, including a bank or broker, tha t in the
3796	3721		ordinary course of its business maintains
3797	3722		securities accounts for others and is acting in
3798	3723		that capacity;
3799	3724		(15) "Security", except as otherwise provided in Section 8-
3800	3725		103 of this title, means an obligation of a n issuer or
3801	3726		a share, participation, or other interest in an issuer
3802	3727		or in property or an en terprise of an issuer:
3803	3728		(i) which is represented by a security cer tificate in
3804	3729		bearer or registered f orm, or the transfer of
3805	3730
3806		-	HB2776 HFLR Page 74
3807		-	BOLD FACE denotes Committee Amendments. 1
	3731	+	Req. No. 6221 Page 74 1
3808	3732		2
3809	3733		3
3810	3734		4
3811	3735		5
3812	3736		6
3813	3737		7
3814	3738		8
3815	3739		9
3816	3740		10
3817	3741		11
3818	3742		12
3819	3743		13
3820	3744		14
3821	3745		15
3822	3746		16
3823	3747		17
3824	3748		18
3825	3749		19
3826	3750		20
3827	3751		21
3828	3752		22
3829	3753		23
3830	3754		24
3831	3755
3832	3756		which may be registered upon books maintai ned for
3833	3757		that purpose by or on behalf of the issuer;
3834	3758		(ii) which is one of a class or serie s or by its terms
3835	3759		is divisible into a class or series of shares,
3836	3760		participations, interests, or obliga tions; and
3837	3761		(iii) which:
3838	3762		(A) is, or is of a type, dealt in or t raded on
3839	3763		securities exchanges or securities markets;
3840	3764		or
3841	3765		(B) is a medium for investment an d by its terms
3842	3766		expressly provides that it is a security
3843	3767		governed by this article;
3844	3768		(16) "Security certificate" means a certificate
3845	3769		representing a security;
3846	3770		(17) "Security entitlement" means the rights and property
3847	3771		interest of an entitlement holder w ith respect to a
3848	3772		financial asset specified in Part 5 of this article;
3849	3773		and
3850	3774		(18) "Uncertificated security" means a security that is not
3851	3775		represented by a certificate.
3852	3776		(b) Other The following definitions applying to in this article
3853	3777		and the sections in which they appear are other articles apply to
3854	3778		this article:
3855	3779		"Appropriate person". Section 8-107.
3856	3780
3857		-	HB2776 HFLR Page 75
3858		-	BOLD FACE denotes Committee Amendments. 1
	3781	+	Req. No. 6221 Page 75 1
3859	3782		2
3860	3783		3
3861	3784		4
3862	3785		5
3863	3786		6
3864	3787		7
3865	3788		8
3866	3789		9
3867	3790		10
3868	3791		11
3869	3792		12
3870	3793		13
3871	3794		14
3872	3795		15
3873	3796		16
3874	3797		17
3875	3798		18
3876	3799		19
3877	3800		20
3878	3801		21
3879	3802		22
3880	3803		23
3881	3804		24
3882	3805
3883	3806		"Control". Section 8-106.
3884	3807		"Controllable account". Section 1-9-102
3885	3808		"Controllable electronic record". Section 12-102
3886	3809		"Controllable payment intangible". Section 1-9-102
3887	3810		"Delivery". Section 8-301.
3888	3811		"Investment company security ". Section 8-103.
3889	3812		"Issuer". Section 8-201.
3890	3813		"Overissue". Section 8-210.
3891	3814		"Protected purchaser". Section 8-303.
3892	3815		"Securities account". Section 8-501.
3893	3816		(c) In addition, Article 1 contains genera l definitions and
3894	3817		principles of construction and interpretation applicable t hroughout
3895	3818		this article.
3896	3819		(d) The characterization of a person, business, or transaction
3897	3820		for purposes of this article does not determine the characterization
3898	3821		of the person, business , or transaction for purposes of any other
3899	3822		law, regulation, or rule.
3900	3823		SECTION 38. AMENDATORY 12A O.S. 2021, Section 8 -103, is
3901	3824		amended to read as follows:
3902	3825		Section 8-103. Rules for Determining Whether Certain
3903	3826		Obligations and Interests Are Securities or Financial Assets.
3904	3827		(a) A share or similar equity interest is sued by a corporation,
3905	3828		business trust, joint stock company, or similar entity is a
3906	3829		security.
3907	3830
3908		-	HB2776 HFLR Page 76
3909		-	BOLD FACE denotes Committee Amendments. 1
	3831	+	Req. No. 6221 Page 76 1
3910	3832		2
3911	3833		3
3912	3834		4
3913	3835		5
3914	3836		6
3915	3837		7
3916	3838		8
3917	3839		9
3918	3840		10
3919	3841		11
3920	3842		12
3921	3843		13
3922	3844		14
3923	3845		15
3924	3846		16
3925	3847		17
3926	3848		18
3927	3849		19
3928	3850		20
3929	3851		21
3930	3852		22
3931	3853		23
3932	3854		24
3933	3855
3934	3856		(b) An "investment company security " is a security.
3935	3857		"Investment company security" means a share or similar equity
3936	3858		interest issued by an entity that is registered as an investment
3937	3859		company under the federal investment company laws, an interest in a
3938	3860		unit investment trust that is so registered, or a face -amount
3939	3861		certificate issued by a face-amount certificate company that is so
3940	3862		registered. Investment company security does not include an
3941	3863		insurance policy or endowment policy or annuity contract issued by
3942	3864		an insurance company.
3943	3865		(c) An interest in a partnership or limited liability company
3944	3866		is not a security unless it is dealt in or traded on securities
3945	3867		exchanges or in secu rities markets, its terms express ly provide that
3946	3868		it is a security governed by this article, or it is an investment
3947	3869		company security. However, an interest in a part nership or limited
3948	3870		liability company is a financial asset if it is held in a securities
3949	3871		account.
3950	3872		(d) A writing that is a sec urity certificate is governed by
3951	3873		this article and not by Article 3 of this code, even though it also
3952	3874		meets the requirements of that article. However, a negotiable
3953	3875		instrument governed by A rticle 3 of this code is a financia l asset
3954	3876		if it is held in a securi ties account.
3955	3877		(e) An option or similar obligation issued by a clea ring
3956	3878		corporation to its participants is not a security, but is a
3957	3879		financial asset.
3958	3880
3959		-	HB2776 HFLR Page 77
3960		-	BOLD FACE denotes Committee Amendments. 1
	3881	+	Req. No. 6221 Page 77 1
3961	3882		2
3962	3883		3
3963	3884		4
3964	3885		5
3965	3886		6
3966	3887		7
3967	3888		8
3968	3889		9
3969	3890		10
3970	3891		11
3971	3892		12
3972	3893		13
3973	3894		14
3974	3895		15
3975	3896		16
3976	3897		17
3977	3898		18
3978	3899		19
3979	3900		20
3980	3901		21
3981	3902		22
3982	3903		23
3983	3904		24
3984	3905
3985	3906		(f) A commodity contract, as defined i n paragraph (15) of
3986	3907		subsection (a) of Section 1-9-102 of this title, is not a security
3987	3908		or a financial asset.
3988	3909		(g) A document of title i s not a financial asset unless
3989	3910		subparagraph (iii) of paragraph ( 9) of subsection (a) of Section 8-
3990	3911		102 of this title appli es.
3991	3912		(h) A controllable account, co ntrollable electronic record, or
3992	3913		controllable payment intangible is not a financial asset unless
3993	3914		subparagraph (iii) of paragraph 9 of subsection (a) of Section 8-102
3994	3915		of this title applies.
3995	3916		SECTION 39. AMENDATORY 12A O.S. 2021, Section 8-106, is
3996	3917		amended to read as follows:
3997	3918		Section 8-106.
3998	3919		Control.
3999	3920		(a) A purchaser has "control" of a certificated security in
4000	3921		bearer form if the certificated security is delivered to the
4001	3922		purchaser.
4002	3923		(b) A purchaser has "control" of a certificated se curity in
4003	3924		registered form if the certi ficated security is delivered to the
4004	3925		purchaser, and:
4005	3926		(1) the certificate is indorsed to the purchaser or in
4006	3927		blank by an effective endorsement; or
4007	3928
4008		-	HB2776 HFLR Page 78
4009		-	BOLD FACE denotes Committee Amendments. 1
	3929	+	Req. No. 6221 Page 78 1
4010	3930		2
4011	3931		3
4012	3932		4
4013	3933		5
4014	3934		6
4015	3935		7
4016	3936		8
4017	3937		9
4018	3938		10
4019	3939		11
4020	3940		12
4021	3941		13
4022	3942		14
4023	3943		15
4024	3944		16
4025	3945		17
4026	3946		18
4027	3947		19
4028	3948		20
4029	3949		21
4030	3950		22
4031	3951		23
4032	3952		24
4033	3953
4034	3954		(2) the certificate is registered in the name of the
4035	3955		purchaser, upon original issue or registration of
4036	3956		transfer by the issuer.
4037	3957		(c) A purchaser has "control" of an uncertificated security if:
4038	3958		(1) the uncertificated security is delivered to the
4039	3959		purchaser; or
4040	3960		(2) the issuer has agreed that it will comply with
4041	3961		instructions originated by the purchaser without
4042	3962		further consent by the registered owner.
4043	3963		(d) A purchaser has "control" of a security entitlement if:
4044	3964		(1) the purchaser becomes the entitlement holder;
4045	3965		(2) the securities intermediary has agreed that it will
4046	3966		comply with entitlement orders originated by the
4047	3967		purchaser without further consent by the ent itlement
4048	3968		holder; or
4049	3969		(3) another person has control of the, other than the
4050	3970		transferor to the purchaser of an interest in the
4051	3971		security entitlement on behalf of the purchaser or,
4052	3972		having previously acquired control of the s ecurity
4053	3973		entitlement, acknowledges tha t it has control:
4054	3974		(A) has control of the security entitlement and
4055	3975		acknowledges that it has control on behalf of the
4056	3976		purchaser; or
4057	3977
4058		-	HB2776 HFLR Page 79
4059		-	BOLD FACE denotes Committee Amendments. 1
	3978	+	Req. No. 6221 Page 79 1
4060	3979		2
4061	3980		3
4062	3981		4
4063	3982		5
4064	3983		6
4065	3984		7
4066	3985		8
4067	3986		9
4068	3987		10
4069	3988		11
4070	3989		12
4071	3990		13
4072	3991		14
4073	3992		15
4074	3993		16
4075	3994		17
4076	3995		18
4077	3996		19
4078	3997		20
4079	3998		21
4080	3999		22
4081	4000		23
4082	4001		24
4083	4002
4084	4003		(B) obtains control of the security entitlement after
4085	4004		having acknowledged that it will obtain control
4086	4005		of the security entitlement on behalf of the
4087	4006		purchaser.
4088	4007		(e) If an interest in a security entitlement is granted by the
4089	4008		entitlement holder to the entitlement holder's own securities
4090	4009		intermediary, the se curities intermediary has control.
4091	4010		(f) A purchaser who has satisfied the re quirements of
4092	4011		subsection (c) or (d) of this section has control even if the
4093	4012		registered owner in the case of subsection (c) of this section or
4094	4013		the entitlement holder in the case of subsection (d) of this section
4095	4014		retains the right to make substitutions for t he uncertificated
4096	4015		security or security entitlement, to originate instructions or
4097	4016		entitlement orders to the issuer or se curities intermediary, or
4098	4017		otherwise to deal with the uncertif icated security or security
4099	4018		entitlement.
4100	4019		(g) An issuer or a securities inte rmediary may not enter into
4101	4020		an agreement of the kind described in paragraph (2) of subsection
4102	4021		(c) or paragraph (2) of s ubsection (d) of this section without the
4103	4022		consent of the registered owner or entitlement holder, but an issuer
4104	4023		or a securities intermedia ry is not required to enter into such an
4105	4024		agreement even though the registered owner or entitlement holder so
4106	4025		directs. An issuer or securities intermediary that has entered into
4107	4026		such an agreement is not required to conf irm the existence of the
4108	4027
4109		-	HB2776 HFLR Page 80
4110		-	BOLD FACE denotes Committee Amendments. 1
	4028	+	Req. No. 6221 Page 80 1
4111	4029		2
4112	4030		3
4113	4031		4
4114	4032		5
4115	4033		6
4116	4034		7
4117	4035		8
4118	4036		9
4119	4037		10
4120	4038		11
4121	4039		12
4122	4040		13
4123	4041		14
4124	4042		15
4125	4043		16
4126	4044		17
4127	4045		18
4128	4046		19
4129	4047		20
4130	4048		21
4131	4049		22
4132	4050		23
4133	4051		24
4134	4052
4135	4053		agreement to another party unless requested to do so by the
4136	4054		registered owner or entitlement holder.
4137	4055		(h) A person that has control under this section is not
4138	4056		required to acknowledge tha t it has control on behalf of a
4139	4057		purchaser.
4140	4058		(i) If a person acknowledges that it has or will obtain control
4141	4059		on behalf of a purchaser, unless the person otherwise agrees or law
4142	4060		other than this article or Article 9 of this title otherwise
4143	4061		provides, the person does not owe any duty to the purchaser and is
4144	4062		not required to confirm the acknowledgment to any other person.
4145	4063		SECTION 40. AMENDATORY 12A O.S. 2021, Section 8 -110, is
4146	4064		amended to read as follows:
4147	4065		Section 8-110.
4148	4066		Applicability; Choice of Law.
4149	4067		(a) The local law of the issuer's jurisdiction, as specified in
4150	4068		subsection (d) of this section, governs:
4151	4069		(1) the validity of a security;
4152	4070		(2) the rights and duties of the issuer with respect to
4153	4071		registration of transfer;
4154	4072		(3) the effectiveness of registration of tr ansfer by the
4155	4073		issuer;
4156	4074		(4) whether the issuer owes any duties to an adverse
4157	4075		claimant to a security; and
4158	4076
4159		-	HB2776 HFLR Page 81
4160		-	BOLD FACE denotes Committee Amendments. 1
	4077	+	Req. No. 6221 Page 81 1
4161	4078		2
4162	4079		3
4163	4080		4
4164	4081		5
4165	4082		6
4166	4083		7
4167	4084		8
4168	4085		9
4169	4086		10
4170	4087		11
4171	4088		12
4172	4089		13
4173	4090		14
4174	4091		15
4175	4092		16
4176	4093		17
4177	4094		18
4178	4095		19
4179	4096		20
4180	4097		21
4181	4098		22
4182	4099		23
4183	4100		24
4184	4101
4185	4102		(5) whether an adverse claim can be asserted against a
4186	4103		person to whom transfer of a certificated or
4187	4104		uncertificated security is registered or a person who
4188	4105		obtains control of an uncertificated security.
4189	4106		(b) The local law of the securities intermediary 's
4190	4107		jurisdiction, as specified in subsectio n (e) of this section,
4191	4108		governs:
4192	4109		(1) acquisition of a security entitlement from the
4193	4110		securities intermediary;
4194	4111		(2) the rights and duties of the securities intermediary
4195	4112		and entitlement holder arising out of a security
4196	4113		entitlement;
4197	4114		(3) whether the securities in termediary owes any duties to
4198	4115		an adverse claimant to a security entitlement; and
4199	4116		(4) whether an adverse claim can be asserted against a
4200	4117		person who acquires a security entitlement f rom the
4201	4118		securities intermediary or a person who purchases a
4202	4119		security entitlement or interest therein from an
4203	4120		entitlement holder.
4204	4121		(c) The local law of the jurisdiction in which a security
4205	4122		certificate is located at the time of delivery governs whether an
4206	4123		adverse claim can be asserted against a person to whom the security
4207	4124		certificate is delivered.
4208	4125
4209		-	HB2776 HFLR Page 82
4210		-	BOLD FACE denotes Committee Amendments. 1
	4126	+	Req. No. 6221 Page 82 1
4211	4127		2
4212	4128		3
4213	4129		4
4214	4130		5
4215	4131		6
4216	4132		7
4217	4133		8
4218	4134		9
4219	4135		10
4220	4136		11
4221	4137		12
4222	4138		13
4223	4139		14
4224	4140		15
4225	4141		16
4226	4142		17
4227	4143		18
4228	4144		19
4229	4145		20
4230	4146		21
4231	4147		22
4232	4148		23
4233	4149		24
4234	4150
4235	4151		(d) "Issuer's jurisdiction" means the jurisdiction under which
4236	4152		the issuer of the security is organiz ed or, if permitted by the law
4237	4153		of that jurisdiction, the law of another jurisdiction specified by
4238	4154		the issuer. An issuer organized under th e law of this state may
4239	4155		specify the law of another jurisdiction as the law governing the
4240	4156		matters specified in paragra phs (2) through (5) of subsection (a) of
4241	4157		this section.
4242	4158		(e) The following rules determine a "securities intermediary's
4243	4159		jurisdiction" for purposes of this section:
4244	4160		(1) If an agreement between the securities intermediary
4245	4161		and its entitlement holder governing the securities
4246	4162		account expressly provides that a particular
4247	4163		jurisdiction is the securities intermed iary's
4248	4164		jurisdiction for purposes of this part, this article,
4249	4165		or this title, that jurisdiction is the securities
4250	4166		intermediary's jurisdiction;
4251	4167		(2) If paragraph (1) does not apply and an agreement
4252	4168		between the securities int ermediary and its
4253	4169		entitlement holder governing the securities account
4254	4170		expressly provides that the agreement is g overned by
4255	4171		the law of a particular jurisdiction, that
4256	4172		jurisdiction is the securit ies intermediary's
4257	4173		jurisdiction.
4258	4174
4259		-	HB2776 HFLR Page 83
4260		-	BOLD FACE denotes Committee Amendments. 1
	4175	+	Req. No. 6221 Page 83 1
4261	4176		2
4262	4177		3
4263	4178		4
4264	4179		5
4265	4180		6
4266	4181		7
4267	4182		8
4268	4183		9
4269	4184		10
4270	4185		11
4271	4186		12
4272	4187		13
4273	4188		14
4274	4189		15
4275	4190		16
4276	4191		17
4277	4192		18
4278	4193		19
4279	4194		20
4280	4195		21
4281	4196		22
4282	4197		23
4283	4198		24
4284	4199
4285	4200		(3) If neither paragraph (1) n or paragraph (2) of this
4286	4201		subsection applies and an agreement between the
4287	4202		securities intermediary and its entitle ment holder
4288	4203		governing the securities account expressly provides
4289	4204		that the securities account is maintained at an office
4290	4205		in a particular jurisdict ion, that jurisdiction is the
4291	4206		securities intermediary's jurisdiction;
4292	4207		(4) If none of the preceding paragraphs of this subsection
4293	4208		applies, the securities intermediary 's jurisdiction is
4294	4209		the jurisdiction in which the office identified in an
4295	4210		account statement as the office serving the
4296	4211		entitlement holder's account is located; and
4297	4212		(5) If none of the preceding paragraphs o f this subsection
4298	4213		applies, the securities intermediary 's jurisdiction is
4299	4214		the jurisdiction in which the chief executive office
4300	4215		of the securities intermediary is located.
4301	4216		(f) A securities intermediary's jurisdiction is no t determined
4302	4217		by the physical locatio n of certificates representing financial
4303	4218		assets, or by the jurisdiction in which is organized the issuer of
4304	4219		the financial asset with respect to which an entitlement holder has
4305	4220		a security entitlement, or by the location o f facilities for data
4306	4221		processing or other recordkeeping concerning the account.
4307	4222		(g) The local law of the issuer's jurisdiction or the
4308	4223		securities intermediary's jurisdiction govern s a matter or
4309	4224
4310		-	HB2776 HFLR Page 84
4311		-	BOLD FACE denotes Committee Amendments. 1
	4225	+	Req. No. 6221 Page 84 1
4312	4226		2
4313	4227		3
4314	4228		4
4315	4229		5
4316	4230		6
4317	4231		7
4318	4232		8
4319	4233		9
4320	4234		10
4321	4235		11
4322	4236		12
4323	4237		13
4324	4238		14
4325	4239		15
4326	4240		16
4327	4241		17
4328	4242		18
4329	4243		19
4330	4244		20
4331	4245		21
4332	4246		22
4333	4247		23
4334	4248		24
4335	4249
4336	4250		transaction specified in subsection (a) or (b) of this section even
4337	4251		if the matter or transaction does not b ear any relation to the
4338	4252		jurisdiction.
4339	4253		SECTION 41. AMENDATORY 12A O.S. 2021, Section 8-303, is
4340	4254		amended to read as follows:
4341	4255		Section 8-303.
4342	4256		Protected Purchaser.
4343	4257		(a) "Protected purchaser" means a purchaser of a cer tificated
4344	4258		or uncertificated security, or of an interest therein, who:
4345	4259		(1) gives value;
4346	4260		(2) does not have notice of any adverse claim to the
4347	4261		security; and
4348	4262		(3) obtains control of the certificat ed or uncertificated
4349	4263		security.
4350	4264		(b) In addition to acquiring the rights of a purchase r, a A
4351	4265		protected purchaser also acquires its interest in the security fr ee
4352	4266		of any adverse claim.
4353	4267		SECTION 42. AMENDATORY 12A O.S. 2021, Section 1 -9-102,
4354	4268		is amended to read as follows:
4355	4269		Section 1-9-102.
4356	4270		DEFINITIONS AND INDEX OF DEFINI TIONS
4357	4271		(a) In this article:
4358	4272
4359		-	HB2776 HFLR Page 85
4360		-	BOLD FACE denotes Committee Amendments. 1
	4273	+	Req. No. 6221 Page 85 1
4361	4274		2
4362	4275		3
4363	4276		4
4364	4277		5
4365	4278		6
4366	4279		7
4367	4280		8
4368	4281		9
4369	4282		10
4370	4283		11
4371	4284		12
4372	4285		13
4373	4286		14
4374	4287		15
4375	4288		16
4376	4289		17
4377	4290		18
4378	4291		19
4379	4292		20
4380	4293		21
4381	4294		22
4382	4295		23
4383	4296		24
4384	4297
4385	4298		(1) "Accession" means goods that are physic ally united with
4386	4299		other goods in such a manner that the identity of the original goods
4387	4300		is not lost.
4388	4301		(2) (A) "Account", except as used in "account for", "account
4389	4302		statement", "account to", "commodity account" in
4390	4303		paragraph (14) of this subsection, "customer account",
4391	4304		"deposit account" in paragraph (29) of this
4392	4305		subsection, "on account of", and "statement of
4393	4306		account", means a right to payment of a monetary
4394	4307		obligation, whether or not earned by p erformance:
4395	4308		(i) for property that has been or is to be sold,
4396	4309		leased, licensed, assigned, or otherwis e disposed
4397	4310		of;
4398	4311		(ii) for services rendered or to be rendered;
4399	4312		(iii) for a policy of insurance issued or to be issued;
4400	4313		(iv) for a secondary obligation incurre d or to be
4401	4314		incurred;
4402	4315		(v) for energy provided or to be provided;
4403	4316		(vi) for the use or hire of a vessel under a charter
4404	4317		or other contract;
4405	4318		(vii) arising out of the use of a credit or charge card
4406	4319		or information contained on or for use with the
4407	4320		card; or
4408	4321
4409		-	HB2776 HFLR Page 86
4410		-	BOLD FACE denotes Committee Amendments. 1
	4322	+	Req. No. 6221 Page 86 1
4411	4323		2
4412	4324		3
4413	4325		4
4414	4326		5
4415	4327		6
4416	4328		7
4417	4329		8
4418	4330		9
4419	4331		10
4420	4332		11
4421	4333		12
4422	4334		13
4423	4335		14
4424	4336		15
4425	4337		16
4426	4338		17
4427	4339		18
4428	4340		19
4429	4341		20
4430	4342		21
4431	4343		22
4432	4344		23
4433	4345		24
4434	4346
4435	4347		(viii) as winnings in a lottery or other game of chance
4436	4348		operated or sponsored by a state, governmental
4437	4349		unit of a state, or a person licensed or
4438	4350		authorized to operate the game by a state or
4439	4351		governmental unit of a state.
4440	4352		(B) The term includes controllable accounts and health-
4441	4353		care-insurance receivables.
4442	4354		(C) The term does not include:
4443	4355		(i) rights to payment evidence d by chattel paper or
4444	4356		an instrument chattel paper;
4445	4357		(ii) commercial tort claims;
4446	4358		(iii) deposit accounts;
4447	4359		(iv) investment property;
4448	4360		(v) letter-of-credit rights or letters of credit; or
4449	4361		(vi) rights to payment for money or funds a dvanced or
4450	4362		sold, other than rights arising out of the use of
4451	4363		a credit or charge card or information contained
4452	4364		on or for use with the card ; or
4453	4365		(vii) rights to payment evidenced by an instrument.
4454	4366		(3) "Account debtor" means a person obligated on an account,
4455	4367		chattel paper, or general int angible. The term does not include
4456	4368		persons obligated to pay a negotiable instrument, even if the
4457	4369		negotiable instrument constitutes part of evidences chattel paper.
4458	4370
4459		-	HB2776 HFLR Page 87
4460		-	BOLD FACE denotes Committee Amendments. 1
	4371	+	Req. No. 6221 Page 87 1
4461	4372		2
4462	4373		3
4463	4374		4
4464	4375		5
4465	4376		6
4466	4377		7
4467	4378		8
4468	4379		9
4469	4380		10
4470	4381		11
4471	4382		12
4472	4383		13
4473	4384		14
4474	4385		15
4475	4386		16
4476	4387		17
4477	4388		18
4478	4389		19
4479	4390		20
4480	4391		21
4481	4392		22
4482	4393		23
4483	4394		24
4484	4395
4485	4396		(4) "Accounting", except as used in "accounting for", means a
4486	4397		record:
4487	4398		(A) authenticated signed by a secured party;
4488	4399		(B) indicating the aggregate unpaid secured obligations as
4489	4400		of a date not more than thirty -five (35) days earlier
4490	4401		or thirty-five (35) days later than the date of the
4491	4402		record; and
4492	4403		(C) identifying the compo nents of the obligations in
4493	4404		reasonable detail.
4494	4405		(5) "Agricultural lien" means an interest in farm products:
4495	4406		(A) which secures payment or performance of an obligation
4496	4407		for:
4497	4408		(i) goods or services furnished in connection with a
4498	4409		debtor's farming operation; or
4499	4410		(ii) rent on real property lea sed by a debtor in
4500	4411		connection with its farming operation;
4501	4412		(B) which is created by statute in favor of a person that:
4502	4413		(i) in the ordinary course of its business furnished
4503	4414		goods or services to a debtor in connection with
4504	4415		a debtor's farming operation; or
4505	4416		(ii) leased real property to a debtor i n connection
4506	4417		with the debtor's farming operation; and
4507	4418		(C) whose effectiveness does not depend on the person 's
4508	4419		possession of the personal property.
4509	4420
4510		-	HB2776 HFLR Page 88
4511		-	BOLD FACE denotes Committee Amendments. 1
	4421	+	Req. No. 6221 Page 88 1
4512	4422		2
4513	4423		3
4514	4424		4
4515	4425		5
4516	4426		6
4517	4427		7
4518	4428		8
4519	4429		9
4520	4430		10
4521	4431		11
4522	4432		12
4523	4433		13
4524	4434		14
4525	4435		15
4526	4436		16
4527	4437		17
4528	4438		18
4529	4439		19
4530	4440		20
4531	4441		21
4532	4442		22
4533	4443		23
4534	4444		24
4535	4445
4536	4446		(6) "As-extracted collateral " means:
4537	4447		(A) oil, gas, or other minerals that are subject to a
4538	4448		security interest that:
4539	4449		(i) is created by a debtor having an interest in the
4540	4450		minerals before extraction; and
4541	4451		(ii) attaches to the minerals as extracted; or
4542	4452		(B) accounts arising out of the sale at the wellhead or
4543	4453		minehead of oil, gas, or o ther minerals in which the
4544	4454		debtor had an interest before extraction.
4545	4455		(7) "Authenticate" means:
4546	4456		(A) to sign; or
4547	4457		(B) with present intent to adopt or acc ept a record, to
4548	4458		attach to or logically associate with the record an
4549	4459		electronic sound, symbol, or process Reserved.
4550	4460		(7A) "Assignee", except as used in "assignee for benefit of
4551	4461		creditors", means a person:
4552	4462		(A) in whose favor a security interest that secures an
4553	4463		obligation is created or provided for under a security
4554	4464		agreement, whether or not the obligation is
4555	4465		outstanding; or
4556	4466		(B) to which an account, chattel paper, payment
4557	4467		intangible, or promissory note has been sold. The
4558	4468		term includes a person to which a securit y interest
4559	4469		has been transferred by a secured party.
4560	4470
4561		-	HB2776 HFLR Page 89
4562		-	BOLD FACE denotes Committee Amendments. 1
	4471	+	Req. No. 6221 Page 89 1
4563	4472		2
4564	4473		3
4565	4474		4
4566	4475		5
4567	4476		6
4568	4477		7
4569	4478		8
4570	4479		9
4571	4480		10
4572	4481		11
4573	4482		12
4574	4483		13
4575	4484		14
4576	4485		15
4577	4486		16
4578	4487		17
4579	4488		18
4580	4489		19
4581	4490		20
4582	4491		21
4583	4492		22
4584	4493		23
4585	4494		24
4586	4495
4587	4496		(7B) "Assignor" means a person that:
4588	4497		(A) under a security agreement creates or provides for a
4589	4498		security interest that secures an obligation; or
4590	4499		(B) sells an account, chattel paper, payment intangible,
4591	4500		or promissory note. The term includes a secured party
4592	4501		that has transferred a security interest to another
4593	4502		person.
4594	4503		(8) "Bank" means an organization that is engaged in the
4595	4504		business of banking. The term includes savings banks, savings and
4596	4505		loan associations, cr edit unions, and trust companies.
4597	4506		(9) "Cash proceeds" means proceeds that are money, checks,
4598	4507		deposit accounts, or the like.
4599	4508		(10) "Certificate of title" means a certificate of title with
4600	4509		respect to which a statute provides for the security interest in
4601	4510		question to be indicated on the certificate as a condition or result
4602	4511		of the security interest's obtaining priority over the rights of a
4603	4512		lien creditor with respect to the collateral. The term includes
4604	4513		another record maintained as an alternative to a certifica te of
4605	4514		title by the governmental unit that issues certificates of title i f
4606	4515		a statute permits the security interest in question to be indicated
4607	4516		on the record as a condition or result of the security interest 's
4608	4517		obtaining priority over the rights of a lien cre ditor with respect
4609	4518		to the collateral.
4610	4519
4611		-	HB2776 HFLR Page 90
4612		-	BOLD FACE denotes Committee Amendments. 1
	4520	+	Req. No. 6221 Page 90 1
4613	4521		2
4614	4522		3
4615	4523		4
4616	4524		5
4617	4525		6
4618	4526		7
4619	4527		8
4620	4528		9
4621	4529		10
4622	4530		11
4623	4531		12
4624	4532		13
4625	4533		14
4626	4534		15
4627	4535		16
4628	4536		17
4629	4537		18
4630	4538		19
4631	4539		20
4632	4540		21
4633	4541		22
4634	4542		23
4635	4543		24
4636	4544
4637	4545		(11) "Chattel paper" means a record or records that evidence
4638	4546		both a monetary obligation and a security interest in specific
4639	4547		goods, a security interest in specific goods and software used in
4640	4548		the goods, a security inter est in specific goods and license of
4641	4549		software used in the goods, a lease of specific goods, or a lease of
4642	4550		specific goods and license of software used in the goods. In this
4643	4551		paragraph, "monetary obligation" means a monetary obligation secured
4644	4552		by the goods or owed under a lease of goods and includes a monetary
4645	4553		obligation with respect to software used in the goods:
4646	4554		(A) a right to payment of a monetary obligation secured by
4647	4555		specific goods, if the right to payment and security
4648	4556		agreement are evidenced by a reco rd; or
4649	4557		(B) a right to payment of a monetary obligation owed by a
4650	4558		lessee under a lease agreement with respect to
4651	4559		specific goods and a monetary obligation owed by the
4652	4560		lessee in connection with the transaction giving rise
4653	4561		to the lease, if:
4654	4562		(i) the right to payment and lease agreement are
4655	4563		evidenced by a record; and
4656	4564		(ii) the predominant purpose of the transaction giving
4657	4565		rise to the lease was to give the lessee the
4658	4566		right to possession and use of the goods.
4659	4567		The term does not include charters or other contracts inv olving the
4660	4568		use or hire of a vessel. If a transaction is evidenced by reco rds
4661	4569
4662		-	HB2776 HFLR Page 91
4663		-	BOLD FACE denotes Committee Amendments. 1
	4570	+	Req. No. 6221 Page 91 1
4664	4571		2
4665	4572		3
4666	4573		4
4667	4574		5
4668	4575		6
4669	4576		7
4670	4577		8
4671	4578		9
4672	4579		10
4673	4580		11
4674	4581		12
4675	4582		13
4676	4583		14
4677	4584		15
4678	4585		16
4679	4586		17
4680	4587		18
4681	4588		19
4682	4589		20
4683	4590		21
4684	4591		22
4685	4592		23
4686	4593		24
4687	4594
4688	4595		that include an instrument or series of instruments, the group of
4689	4596		records taken together constitutes chattel paper a right to payment
4690	4597		arising out of a charter or other contract i nvolving the use or hire
4691	4598		of a vessel or a right to payment arising out of the use of a credit
4692	4599		or charge card or information contained on or for use with the card.
4693	4600		(12) "Collateral" means the property subject to a security
4694	4601		interest or agricultural lien. T he term includes:
4695	4602		(A) proceeds to which a security interest at taches;
4696	4603		(B) accounts, chattel paper, payment intangibles, and
4697	4604		promissory notes that have been sold; and
4698	4605		(C) goods that are the subject of a consignment.
4699	4606		(13) "Commercial tort claim " means a claim arising in tort with
4700	4607		respect to which:
4701	4608		(A) the claimant is an organization; or
4702	4609		(B) the claimant is an individual and the claim:
4703	4610		(i) arose in the course of the claimant's business or
4704	4611		profession; and
4705	4612		(ii) does not include damages arising out of personal
4706	4613		injury to or the death of an individual.
4707	4614		(14) "Commodity account" means an account maintained by a
4708	4615		commodity intermediary in which a commodity contract is carried for
4709	4616		a commodity customer.
4710	4617
4711		-	HB2776 HFLR Page 92
4712		-	BOLD FACE denotes Committee Amendments. 1
	4618	+	Req. No. 6221 Page 92 1
4713	4619		2
4714	4620		3
4715	4621		4
4716	4622		5
4717	4623		6
4718	4624		7
4719	4625		8
4720	4626		9
4721	4627		10
4722	4628		11
4723	4629		12
4724	4630		13
4725	4631		14
4726	4632		15
4727	4633		16
4728	4634		17
4729	4635		18
4730	4636		19
4731	4637		20
4732	4638		21
4733	4639		22
4734	4640		23
4735	4641		24
4736	4642
4737	4643		(15) "Commodity contract" means a commodity futures contract,
4738	4644		an option on a commodity futures contract, a commodity option, or
4739	4645		another contract if the contract or option is:
4740	4646		(A) traded on or subject to the rules of a board of trade
4741	4647		that has been designated as a contract market for such
4742	4648		a contract pursuant to federal com modities laws; or
4743	4649		(B) traded on a foreign commodity board of t rade,
4744	4650		exchange, or market, and is carried on the books of a
4745	4651		commodity intermediary for a commodity customer.
4746	4652		(16) "Commodity customer" means a person for which a commodity
4747	4653		intermediary carries a commodity contract on its books.
4748	4654		(17) "Commodity intermedia ry" means a person that:
4749	4655		(A) is registered as a futures commission merchant under
4750	4656		federal commodities law; or
4751	4657		(B) in the ordinary course of its business provides
4752	4658		clearance or settlement services for a board of trade
4753	4659		that has been designated as a contract m arket pursuant
4754	4660		to federal commodities law.
4755	4661		(18) "Communicate" means:
4756	4662		(A) to send a written or other tangible record;
4757	4663		(B) to transmit a record by any means agreed upon by the
4758	4664		persons sending and receiving the record; or
4759	4665
4760		-	HB2776 HFLR Page 93
4761		-	BOLD FACE denotes Committee Amendments. 1
	4666	+	Req. No. 6221 Page 93 1
4762	4667		2
4763	4668		3
4764	4669		4
4765	4670		5
4766	4671		6
4767	4672		7
4768	4673		8
4769	4674		9
4770	4675		10
4771	4676		11
4772	4677		12
4773	4678		13
4774	4679		14
4775	4680		15
4776	4681		16
4777	4682		17
4778	4683		18
4779	4684		19
4780	4685		20
4781	4686		21
4782	4687		22
4783	4688		23
4784	4689		24
4785	4690
4786	4691		(C) in the case of transmission of a record to or by a
4787	4692		filing office, to transmit a record by any means
4788	4693		prescribed by filing-office rule.
4789	4694		(19) "Consignee" means a merchant to which goods are delivered
4790	4695		in a consignment.
4791	4696		(20) "Consignment" means a transaction, regardless of its form,
4792	4697		in which a person delivers goods to a merchant for the purpose of
4793	4698		sale and:
4794	4699		(A) the merchant:
4795	4700		(i) deals in goods of that kind under a name other
4796	4701		than the name of the person making delivery;
4797	4702		(ii) is not an auctioneer; and
4798	4703		(iii) is not generally known by its credit ors to be
4799	4704		substantially engaged in selling the goods of
4800	4705		others;
4801	4706		(B) with respect to each delivery, the aggregate value of
4802	4707		the goods is One Thousand Dollars ($1,000.00) or more
4803	4708		at the time of delivery;
4804	4709		(C) the goods are not consumer goods immediately before
4805	4710		delivery; and
4806	4711		(D) the transaction does not create a security interest
4807	4712		that secures an obligation.
4808	4713		(21) "Consignor" means a person that delivers goods to a
4809	4714		consignee in a consignment.
4810	4715
4811		-	HB2776 HFLR Page 94
4812		-	BOLD FACE denotes Committee Amendments. 1
	4716	+	Req. No. 6221 Page 94 1
4813	4717		2
4814	4718		3
4815	4719		4
4816	4720		5
4817	4721		6
4818	4722		7
4819	4723		8
4820	4724		9
4821	4725		10
4822	4726		11
4823	4727		12
4824	4728		13
4825	4729		14
4826	4730		15
4827	4731		16
4828	4732		17
4829	4733		18
4830	4734		19
4831	4735		20
4832	4736		21
4833	4737		22
4834	4738		23
4835	4739		24
4836	4740
4837	4741		(22) "Consumer debtor" means a debtor in a consumer
4838	4742		transaction.
4839	4743		(23) "Consumer goods" means goods that are used or bought for
4840	4744		use primarily for personal, family, or household purposes.
4841	4745		(24) "Consumer-goods transaction" means a consumer transaction
4842	4746		in which:
4843	4747		(A) an individual incurs an obligation primarily for
4844	4748		personal, family, or household purposes; and
4845	4749		(B) a security interest in consumer goods secures the
4846	4750		obligation.
4847	4751		(25) "Consumer obligor" means an obligor who is an individual
4848	4752		and who incurred the obligation as part of a transaction entered
4849	4753		into primarily for personal, family, or household purposes.
4850	4754		(26) "Consumer transaction" means a transaction in which (i) an
4851	4755		individual incurs an obligation primarily for personal, family, or
4852	4756		household purposes, (ii) a secu rity interest secures the obligation,
4853	4757		and (iii) the collateral is held or acquired primarily for personal,
4854	4758		family, or household purposes. The term includes consumer-goods
4855	4759		transactions.
4856	4760		(27) "Continuation statement " means an amendment of a financing
4857	4761		statement which:
4858	4762		(A) identifies, by its file number, the initial fi nancing
4859	4763		statement to which it relates; and
4860	4764
4861		-	HB2776 HFLR Page 95
4862		-	BOLD FACE denotes Committee Amendments. 1
	4765	+	Req. No. 6221 Page 95 1
4863	4766		2
4864	4767		3
4865	4768		4
4866	4769		5
4867	4770		6
4868	4771		7
4869	4772		8
4870	4773		9
4871	4774		10
4872	4775		11
4873	4776		12
4874	4777		13
4875	4778		14
4876	4779		15
4877	4780		16
4878	4781		17
4879	4782		18
4880	4783		19
4881	4784		20
4882	4785		21
4883	4786		22
4884	4787		23
4885	4788		24
4886	4789
4887	4790		(B) indicates that it is a continuation statement for, or
4888	4791		that it is filed to continue the effectiveness of, the
4889	4792		identified financing statement.
4890	4793		(27A) "Controllable account" means an account evidenced by a
4891	4794		controllable electronic record that provides that the account debtor
4892	4795		undertakes to pay the person that has control under Section 12-105
4893	4796		of this title of the controllable electronic record.
4894	4797		(27B) "Controllable payment intangible " means a payment
4895	4798		intangible evidenced by a co ntrollable electronic record that
4896	4799		provides that the account debt or undertakes to pay the person that
4897	4800		has control under Section 12-105 of this title of the controllable
4898	4801		electronic record.
4899	4802		(28) "Debtor" means:
4900	4803		(A) a person having an interest, other than a security
4901	4804		interest or other lien, in the collateral, whether or
4902	4805		not the person is an obligo r;
4903	4806		(B) a seller of accounts, chattel paper, payment
4904	4807		intangibles, or promissory notes; or
4905	4808		(C) a consignee.
4906	4809		(29) "Deposit account" means a demand, time, savings, passb ook,
4907	4810		or similar account maintained with a bank as defined in para graph
4908	4811		(8) of this subsection. The term does not include investment
4909	4812		property or a deposit account evidenced by an instr ument.
4910	4813
4911		-	HB2776 HFLR Page 96
4912		-	BOLD FACE denotes Committee Amendments. 1
	4814	+	Req. No. 6221 Page 96 1
4913	4815		2
4914	4816		3
4915	4817		4
4916	4818		5
4917	4819		6
4918	4820		7
4919	4821		8
4920	4822		9
4921	4823		10
4922	4824		11
4923	4825		12
4924	4826		13
4925	4827		14
4926	4828		15
4927	4829		16
4928	4830		17
4929	4831		18
4930	4832		19
4931	4833		20
4932	4834		21
4933	4835		22
4934	4836		23
4935	4837		24
4936	4838
4937	4839		(30) "Document" means a document of title or a receipt of the
4938	4840		type described in subsection (b) of Section 7-201 of this title.
4939	4841		(31) "Electronic chattel p aper" means chattel paper evidenced
4940	4842		by a record or records consisting of information stored in an
4941	4843		electronic medium Reserved.
4942	4844		(31A) "Electronic money" means money in an electronic form.
4943	4845		(32) "Encumbrance" means a right, other tha n an ownership
4944	4846		interest, in real property. The term includes mortgages and other
4945	4847		liens on real property.
4946	4848		(33) "Equipment" means goods other than inventory, fa rm
4947	4849		products, or consumer goods.
4948	4850		(34) "Farm products" means goods, other than standing timber,
4949	4851		with respect to which the debtor is engaged in a farming operation
4950	4852		and which are:
4951	4853		(A) crops grown, growing, or to be gro wn, including:
4952	4854		(i) crops produced on tree s, vines, and bushes; and
4953	4855		(ii) aquatic goods produced in aquacultural
4954	4856		operations;
4955	4857		(B) livestock, born or unborn, including aquatic goods
4956	4858		produced in aquacultural operations;
4957	4859		(C) supplies used or produced in a farmin g operation; or
4958	4860		(D) products of crops or livestock in their unmanufacture d
4959	4861		states.
4960	4862
4961		-	HB2776 HFLR Page 97
4962		-	BOLD FACE denotes Committee Amendments. 1
	4863	+	Req. No. 6221 Page 97 1
4963	4864		2
4964	4865		3
4965	4866		4
4966	4867		5
4967	4868		6
4968	4869		7
4969	4870		8
4970	4871		9
4971	4872		10
4972	4873		11
4973	4874		12
4974	4875		13
4975	4876		14
4976	4877		15
4977	4878		16
4978	4879		17
4979	4880		18
4980	4881		19
4981	4882		20
4982	4883		21
4983	4884		22
4984	4885		23
4985	4886		24
4986	4887
4987	4888		(35) "Farming operation" means raising, cultivating,
4988	4889		propagating, fattening, g razing, or any other farming, livestock, or
4989	4890		aquacultural operation.
4990	4891		(36) "File number" means the number assigned to an initial
4991	4892		financing statement pursuant to subsect ion (a) of Section 1-9-519 of
4992	4893		this title.
4993	4894		(37) "Filing office" means an office designated in Section 1-9-
4994	4895		501 as the place to file a financing statement.
4995	4896		(38) "Filing-office rule" means a rule adopted pursuant to
4996	4897		Sections 1-9-526 and 1-9-526.1 of this title.
4997	4898		(39) "Financing statement" means a record or records compos ed
4998	4899		of an initial financing statement and any filed record relating to
4999	4900		the initial financing statement.
5000	4901		(40) "Fixture filing" means the filing of a financing st atement
5001	4902		covering goods that are or are to become fixtures and satisfying
5002	4903		subsections (a) and (b) of Section 1-9-502 of this title. The term
5003	4904		includes the filing of a financing statement covering goods of a
5004	4905		transmitting utility which are or are to become fi xtures.
5005	4906		(41) "Fixtures" means goods that have become so related to
5006	4907		particular real property tha t an interest in them ari ses under real
5007	4908		property law.
5008	4909		(42) "General intangible" means any personal property,
5009	4910		including things in action, other than accounts, c hattel paper,
5010	4911		commercial tort claims, deposit accounts, documents, goods,
5011	4912
5012		-	HB2776 HFLR Page 98
5013		-	BOLD FACE denotes Committee Amendments. 1
	4913	+	Req. No. 6221 Page 98 1
5014	4914		2
5015	4915		3
5016	4916		4
5017	4917		5
5018	4918		6
5019	4919		7
5020	4920		8
5021	4921		9
5022	4922		10
5023	4923		11
5024	4924		12
5025	4925		13
5026	4926		14
5027	4927		15
5028	4928		16
5029	4929		17
5030	4930		18
5031	4931		19
5032	4932		20
5033	4933		21
5034	4934		22
5035	4935		23
5036	4936		24
5037	4937
5038	4938		instruments, investmen t property, letter-of-credit rights, letters
5039	4939		of credit, money, and oil, gas, or other minerals before extraction.
5040	4940		The term includes controllable electronic records, payment
5041	4941		intangibles and software.
5042	4942		(43) "Good faith" means honesty in fact and the observa nce of
5043	4943		reasonable commercial standards of fair dealing.
5044	4944		(44) (A) "Goods" means all things that are movable when a
5045	4945		security interest attaches.
5046	4946		(B) The term includes:
5047	4947		(i) fixtures;
5048	4948		(ii) standing timber that is to be cut and removed
5049	4949		under a conveyance or cont ract for sale;
5050	4950		(iii) the unborn young of animals;
5051	4951		(iv) crops grown, growing, or to be grown, even if the
5052	4952		crops are produced on trees, vines, or bushes;
5053	4953		and
5054	4954		(v) manufactured homes.
5055	4955		(C) The term also includes a computer program embedded in
5056	4956		goods and any supporting information provid ed in
5057	4957		connection with a transaction relating to the program
5058	4958		if:
5059	4959		(i) the program is associated with the goods in such
5060	4960		a manner that it customarily is considered part
5061	4961		of the goods; or
5062	4962
5063		-	HB2776 HFLR Page 99
5064		-	BOLD FACE denotes Committee Amendments. 1
	4963	+	Req. No. 6221 Page 99 1
5065	4964		2
5066	4965		3
5067	4966		4
5068	4967		5
5069	4968		6
5070	4969		7
5071	4970		8
5072	4971		9
5073	4972		10
5074	4973		11
5075	4974		12
5076	4975		13
5077	4976		14
5078	4977		15
5079	4978		16
5080	4979		17
5081	4980		18
5082	4981		19
5083	4982		20
5084	4983		21
5085	4984		22
5086	4985		23
5087	4986		24
5088	4987
5089	4988		(ii) by becoming the owner of the goods, a person
5090	4989		acquires a right to use the program in connection
5091	4990		with the goods.
5092	4991		(D) The term does not include a computer program whi ch is
5093	4992		embedded in goods and that consist solely of the
5094	4993		medium in which the program is embedded.
5095	4994		(E) The term also does not include accoun ts, chattel
5096	4995		paper, commercial tort claims, deposit accounts,
5097	4996		documents, general intangibles, instruments,
5098	4997		investment property, letter-of-credit rights, letters
5099	4998		of credit, money, or oil, gas, o r other minerals
5100	4999		before extraction.
5101	5000		(45) "Governmental unit" means a subdivision, agency ,
5102	5001		department, county, parish, municipality, or other unit of the
5103	5002		government of the United Stat es, a state, or a foreign country. The
5104	5003		term includes an organization hav ing a separate corporate existence
5105	5004		if the organization is eligib le to issue debt on which interest is
5106	5005		exempt from income taxation under the laws of the United States.
5107	5006		(46) "Health-care-insurance receivable " means an interest in or
5108	5007		claim under a policy of insurance which is a right to payment of a
5109	5008		monetary obligation f or health-care goods or services provided or to
5110	5009		be provided.
5111	5010		(47) (A) "Instrument" means a negotiable instrument or any
5112	5011		other writing that evidences a right to the payment of
5113	5012
5114		-	HB2776 HFLR Page 100
5115		-	BOLD FACE denotes Committee Amendments. 1
	5013	+	Req. No. 6221 Page 100 1
5116	5014		2
5117	5015		3
5118	5016		4
5119	5017		5
5120	5018		6
5121	5019		7
5122	5020		8
5123	5021		9
5124	5022		10
5125	5023		11
5126	5024		12
5127	5025		13
5128	5026		14
5129	5027		15
5130	5028		16
5131	5029		17
5132	5030		18
5133	5031		19
5134	5032		20
5135	5033		21
5136	5034		22
5137	5035		23
5138	5036		24
5139	5037
5140	5038		a monetary obligation, is not itself a security
5141	5039		agreement or lease, and is of a t ype that in ordinary
5142	5040		course of business is transferred by delivery with any
5143	5041		necessary endorsement or assignment.
5144	5042		(B) "Instrument" includes:
5145	5043		(i) an instrument as defined in subparagraph (A) of
5146	5044		this paragraph, whether the instrument is subject
5147	5045		to Section 3-104 of this title because it is not
5148	5046		payable to order; and
5149	5047		(ii) a writing that contains both an acknowledgment by
5150	5048		a bank as defined in paragraph (8) of this
5151	5049		subsection that a sum of money has be en received
5152	5050		by the bank and its promise to repay the sum of
5153	5051		money, which is considered a certificate of
5154	5052		deposit by the bank issuing it, even if the
5155	5053		writing provides that it is nontran sferable or
5156	5054		uses similar language.
5157	5055		(C) The term does not include:
5158	5056		(i) investment property;
5159	5057		(ii) letters of credit; or
5160	5058		(iii) writings that evidence a right to paym ent arising
5161	5059		out of the use of a credit or charge card or
5162	5060		information contained on or for use w ith the
5163	5061		card; or
5164	5062
5165		-	HB2776 HFLR Page 101
5166		-	BOLD FACE denotes Committee Amendments. 1
	5063	+	Req. No. 6221 Page 101 1
5167	5064		2
5168	5065		3
5169	5066		4
5170	5067		5
5171	5068		6
5172	5069		7
5173	5070		8
5174	5071		9
5175	5072		10
5176	5073		11
5177	5074		12
5178	5075		13
5179	5076		14
5180	5077		15
5181	5078		16
5182	5079		17
5183	5080		18
5184	5081		19
5185	5082		20
5186	5083		21
5187	5084		22
5188	5085		23
5189	5086		24
5190	5087
5191	5088		(iv) writings that evidence chattel paper.
5192	5089		(48) "Inventory" means goods, other than farm products, which:
5193	5090		(A) are leased by a person as lessor;
5194	5091		(B) are held by a person for sale or lease or to be
5195	5092		furnished under a contract of service;
5196	5093		(C) are furnished by a person under a contra ct of service;
5197	5094		or
5198	5095		(D) consist of raw materials, work in process, or
5199	5096		materials used or consumed i n a business.
5200	5097		(49) "Investment property" means a security, whether
5201	5098		certificated or uncertificated, security entitlemen t, securities
5202	5099		account, commodity contract , or commodity account.
5203	5100		(50) "Jurisdiction of organization", with respect to a
5204	5101		registered organization, means the jurisd iction under whose law the
5205	5102		organization is formed or organi zed.
5206	5103		(51) "Letter-of-credit right" means a right to payment or
5207	5104		performance under a letter of credit, whethe r or not the beneficiary
5208	5105		has demanded or is at the time entitled to demand payment or
5209	5106		performance. The term does not include the right of a benefic iary
5210	5107		to demand payment or performan ce under a letter of credit.
5211	5108		(52) "Lien creditor" means:
5212	5109		(A) a creditor that has acquired a lien on the property
5213	5110		involved by attachment, levy, or the like;
5214	5111
5215		-	HB2776 HFLR Page 102
5216		-	BOLD FACE denotes Committee Amendments. 1
	5112	+	Req. No. 6221 Page 102 1
5217	5113		2
5218	5114		3
5219	5115		4
5220	5116		5
5221	5117		6
5222	5118		7
5223	5119		8
5224	5120		9
5225	5121		10
5226	5122		11
5227	5123		12
5228	5124		13
5229	5125		14
5230	5126		15
5231	5127		16
5232	5128		17
5233	5129		18
5234	5130		19
5235	5131		20
5236	5132		21
5237	5133		22
5238	5134		23
5239	5135		24
5240	5136
5241	5137		(B) an assignee for benefit of creditors from the time of
5242	5138		assignment;
5243	5139		(C) a trustee in bankruptcy f rom the date of the filing of
5244	5140		the petition; or
5245	5141		(D) a receiver in equity f rom the time of appointment.
5246	5142		(53) (A) "Manufactured home" means a structure, transportabl e
5247	5143		in one or more sections, which:
5248	5144		(i) in the traveling mode , is eight (8) body feet or
5249	5145		more in width or forty (40) body feet or more in
5250	5146		length, or, when erected on sit e, is three
5251	5147		hundred twenty (320) or more square feet;
5252	5148		(ii) is built on a permanent chassi s;
5253	5149		(iii) is designed to be used as a dwelling with or
5254	5150		without a permanent foundation when conn ected to
5255	5151		the required utilities; and
5256	5152		(iv) includes the plumbing, heating, air-conditioning,
5257	5153		and electrical systems contained therein.
5258	5154		(B) The term includes any st ructure that meets all of the
5259	5155		requirements of this paragrap h except the size
5260	5156		requirements and with respect to which the
5261	5157		manufacturer voluntarily files a certification
5262	5158		required by the United States Secretary of Housing and
5263	5159		Urban Development and complies wit h the standards
5264	5160		established under Title 42 of the United St ates Code.
5265	5161
5266		-	HB2776 HFLR Page 103
5267		-	BOLD FACE denotes Committee Amendments. 1
	5162	+	Req. No. 6221 Page 103 1
5268	5163		2
5269	5164		3
5270	5165		4
5271	5166		5
5272	5167		6
5273	5168		7
5274	5169		8
5275	5170		9
5276	5171		10
5277	5172		11
5278	5173		12
5279	5174		13
5280	5175		14
5281	5176		15
5282	5177		16
5283	5178		17
5284	5179		18
5285	5180		19
5286	5181		20
5287	5182		21
5288	5183		22
5289	5184		23
5290	5185		24
5291	5186
5292	5187		(54) "Manufactured-home transaction" means a secured
5293	5188		transaction:
5294	5189		(A) that creates a purchase -money security interest in a
5295	5190		manufactured home, other than a manuf actured home held
5296	5191		as inventory; or
5297	5192		(B) in which a manufactured home, other than a
5298	5193		manufactured home held as inventory, is the primary
5299	5194		collateral.
5300	5195		(54A) "Money" has the same meaning as in paragraph (24) of
5301	5196		subsection (b) of Section 1-201 of this title, but does no t include:
5302	5197		(A) a deposit account; or
5303	5198		(B) money in an electronic form that cannot be su bjected
5304	5199		to control under Section 9-105A of this title.
5305	5200		(55) "Mortgage" means a consensual interest in real property,
5306	5201		including fixtures, which secures payment or perf ormance of an
5307	5202		obligation.
5308	5203		(56) "New debtor" means a person that becomes bound as a debtor
5309	5204		under subsection (d) of Sect ion 1-9-203 of this title by a security
5310	5205		agreement previously entered into by another person.
5311	5206		(57) (A) "New value" means:
5312	5207		(i) money;
5313	5208		(ii) money's worth in property, services, o r new
5314	5209		credit; or
5315	5210
5316		-	HB2776 HFLR Page 104
5317		-	BOLD FACE denotes Committee Amendments. 1
	5211	+	Req. No. 6221 Page 104 1
5318	5212		2
5319	5213		3
5320	5214		4
5321	5215		5
5322	5216		6
5323	5217		7
5324	5218		8
5325	5219		9
5326	5220		10
5327	5221		11
5328	5222		12
5329	5223		13
5330	5224		14
5331	5225		15
5332	5226		16
5333	5227		17
5334	5228		18
5335	5229		19
5336	5230		20
5337	5231		21
5338	5232		22
5339	5233		23
5340	5234		24
5341	5235
5342	5236		(iii) release by a transferee of an interest in
5343	5237		property previously transferred to the
5344	5238		transferee.
5345	5239		(B) The term does not in clude an obligation substituted
5346	5240		for another obligation.
5347	5241		(58) "Noncash proceeds" means proceeds other than cash
5348	5242		proceeds.
5349	5243		(59) (A) "Obligor" means a person that, with respect to an
5350	5244		obligation secured by a security interest in or an
5351	5245		agricultural lien on the collateral:
5352	5246		(i) owes payment or other pe rformance of the
5353	5247		obligation;
5354	5248		(ii) has provided property other than the coll ateral
5355	5249		to secure payment or other performance of the
5356	5250		obligation; or
5357	5251		(iii) is otherwise accountable in whole or in part for
5358	5252		payment or other performance of the obligation.
5359	5253		(B) The term does not include issuers or nomina ted persons
5360	5254		under a letter of credit.
5361	5255		(60) "Original debtor" means a person that, as debtor, entered
5362	5256		into a security agreement to which a new debtor has become bound
5363	5257		under subsection (d) of Section 1-9-203 of this title.
5364	5258
5365		-	HB2776 HFLR Page 105
5366		-	BOLD FACE denotes Committee Amendments. 1
	5259	+	Req. No. 6221 Page 105 1
5367	5260		2
5368	5261		3
5369	5262		4
5370	5263		5
5371	5264		6
5372	5265		7
5373	5266		8
5374	5267		9
5375	5268		10
5376	5269		11
5377	5270		12
5378	5271		13
5379	5272		14
5380	5273		15
5381	5274		16
5382	5275		17
5383	5276		18
5384	5277		19
5385	5278		20
5386	5279		21
5387	5280		22
5388	5281		23
5389	5282		24
5390	5283
5391	5284		(61) "Payment intangible" means a general intangible under
5392	5285		which the account debtor's principal obligation is a monetary
5393	5286		obligation. The term includes a controllable payment intangible.
5394	5287		(62) "Person related to", with respect to an individual, means:
5395	5288		(A) the spouse of the individual;
5396	5289		(B) a brother, brother-in-law, sister, or sister-in-law of
5397	5290		the individual;
5398	5291		(C) an ancestor or lineal descendant of the ind ividual or
5399	5292		the individual's spouse; or
5400	5293		(D) any other relative, by blood or marriage, of the
5401	5294		individual or the individual's spouse who shares the
5402	5295		same home with the individual.
5403	5296		(63) "Person related to", with respect to an organization,
5404	5297		means:
5405	5298		(A) a person directly or indirectly controlling,
5406	5299		controlled by, or under common control with the
5407	5300		organization;
5408	5301		(B) an officer or director of, or a per son performing
5409	5302		similar functions with respect to, the organization;
5410	5303		(C) an officer or director of, or a person performi ng
5411	5304		similar functions with respect to, a person described
5412	5305		in subparagraph (A);
5413	5306		(D) the spouse of an individual described in subparagraph
5414	5307		(A), (B), or (C) of this paragraph; or
5415	5308
5416		-	HB2776 HFLR Page 106
5417		-	BOLD FACE denotes Committee Amendments. 1
	5309	+	Req. No. 6221 Page 106 1
5418	5310		2
5419	5311		3
5420	5312		4
5421	5313		5
5422	5314		6
5423	5315		7
5424	5316		8
5425	5317		9
5426	5318		10
5427	5319		11
5428	5320		12
5429	5321		13
5430	5322		14
5431	5323		15
5432	5324		16
5433	5325		17
5434	5326		18
5435	5327		19
5436	5328		20
5437	5329		21
5438	5330		22
5439	5331		23
5440	5332		24
5441	5333
5442	5334		(E) an individual who is related by blood or marriage to
5443	5335		an individual described in subparagraph (A), (B), (C),
5444	5336		or (D) of this paragraph and who shares the same home
5445	5337		with the individual.
5446	5338		(64) "Proceeds" means the following property:
5447	5339		(A) whatever is acquired upon the sale, lease, license,
5448	5340		exchange, or other disposition of collateral;
5449	5341		(B) whatever is collected on, or distributed on account
5450	5342		of, collateral;
5451	5343		(C) rights arising out of col lateral;
5452	5344		(D) to the extent of the val ue of collateral, claims
5453	5345		arising out of the loss, nonconformity, or
5454	5346		interference with the use of, defects or infringeme nt
5455	5347		of rights in, or damage to, the collateral; or
5456	5348		(E) to the extent of the value of collateral and t o the
5457	5349		extent payable to the debtor or the secured party,
5458	5350		insurance payable by reason of the loss or
5459	5351		nonconformity of, defects or infringement of rights
5460	5352		in, or damage to, the collateral.
5461	5353		(65) "Promissory note" means an instrument that evidences a
5462	5354		promise to pay a monetary obligation, does not evidence an order to
5463	5355		pay, and does not contain an acknowledgment by a bank that the bank
5464	5356		has received for deposit a su m of money or funds.
5465	5357
5466		-	HB2776 HFLR Page 107
5467		-	BOLD FACE denotes Committee Amendments. 1
	5358	+	Req. No. 6221 Page 107 1
5468	5359		2
5469	5360		3
5470	5361		4
5471	5362		5
5472	5363		6
5473	5364		7
5474	5365		8
5475	5366		9
5476	5367		10
5477	5368		11
5478	5369		12
5479	5370		13
5480	5371		14
5481	5372		15
5482	5373		16
5483	5374		17
5484	5375		18
5485	5376		19
5486	5377		20
5487	5378		21
5488	5379		22
5489	5380		23
5490	5381		24
5491	5382
5492	5383		(66) "Proposal" means a record authenticated signed by a
5493	5384		secured party which i ncludes the terms on which the secure d party is
5494	5385		willing to accept collatera l in full or partial satisfaction of the
5495	5386		obligation it secures pursuant to Sectio ns 1-9-620, 1-9-621, and 1-
5496	5387		9-622 of this title.
5497	5388		(67) "Public-finance transaction" means a secured transaction
5498	5389		in connection with which:
5499	5390		(A) debt securities are issued;
5500	5391		(B) all or a portion of the securities issued have an
5501	5392		initial stated maturity of at lea st twenty (20) years;
5502	5393		and
5503	5394		(C) the debtor, obligor, secured party, account debtor or
5504	5395		other person obligated on collateral, assignor or
5505	5396		assignee of a secured obligation, or assi gnor or
5506	5397		assignee of a security interest is a state or a
5507	5398		governmental unit of a st ate.
5508	5399		(68) "Public organic record" means a record that is a vailable
5509	5400		to the public for inspection and that is:
5510	5401		(A) a record consisting of the record initially filed with
5511	5402		or issued by a state or the United States to form or
5512	5403		organize an organization and any r ecord filed with or
5513	5404		issued by the state or the United State s which amends
5514	5405		or restates the initial re cord;
5515	5406
5516		-	HB2776 HFLR Page 108
5517		-	BOLD FACE denotes Committee Amendments. 1
	5407	+	Req. No. 6221 Page 108 1
5518	5408		2
5519	5409		3
5520	5410		4
5521	5411		5
5522	5412		6
5523	5413		7
5524	5414		8
5525	5415		9
5526	5416		10
5527	5417		11
5528	5418		12
5529	5419		13
5530	5420		14
5531	5421		15
5532	5422		16
5533	5423		17
5534	5424		18
5535	5425		19
5536	5426		20
5537	5427		21
5538	5428		22
5539	5429		23
5540	5430		24
5541	5431
5542	5432		(B) an organic record of a busi ness trust consisting of
5543	5433		the record initially filed with a state and any record
5544	5434		filed with the state which amends or re states the
5545	5435		initial record, if a statute of the state govern ing
5546	5436		business trusts requires that the rec ord be filed with
5547	5437		the state; or
5548	5438		(C) a record consisting of legislation enac ted by the
5549	5439		Legislature of a state or the Congress of the United
5550	5440		States which forms or organizes an organi zation, any
5551	5441		record amending the leg islation, and any record filed
5552	5442		with or issued by the state or United States wh ich
5553	5443		amends or restates the name of the organization.
5554	5444		(69) "Pursuant to commitment", with respect to an advance made
5555	5445		or other value given by a secured party, means pursuant to th e
5556	5446		secured party's obligation, whether or not a subsequent event of
5557	5447		default or other event not within the secured par ty's control has
5558	5448		relieved or may relieve the secured party from its obligation.
5559	5449		(70) "Record", except as used in "for record", "of record",
5560	5450		"record or legal title", and "record owner", means information that
5561	5451		is inscribed on a tangible medium or which is s tored in an
5562	5452		electronic or other medium and is retrievable in perceivable form.
5563	5453		(71) "Registered organization" means an organization formed or
5564	5454		organized solely under the law of a si ngle state or the United
5565	5455		States by the filing of a public organic record wi th, the issuance
5566	5456
5567		-	HB2776 HFLR Page 109
5568		-	BOLD FACE denotes Committee Amendments. 1
	5457	+	Req. No. 6221 Page 109 1
5569	5458		2
5570	5459		3
5571	5460		4
5572	5461		5
5573	5462		6
5574	5463		7
5575	5464		8
5576	5465		9
5577	5466		10
5578	5467		11
5579	5468		12
5580	5469		13
5581	5470		14
5582	5471		15
5583	5472		16
5584	5473		17
5585	5474		18
5586	5475		19
5587	5476		20
5588	5477		21
5589	5478		22
5590	5479		23
5591	5480		24
5592	5481
5593	5482		of a public organic record by, or the enactment of legislation b y
5594	5483		the state or United St ates. The term includes a business trust that
5595	5484		is formed or organized under the law of a single state if a statut e
5596	5485		of the state governing business trus ts requires that the business
5597	5486		trusts' organic record be filed with the state.
5598	5487		(72) "Secondary obligor" means an obligor to the extent that:
5599	5488		(A) the obligor's obligation is secondar y; or
5600	5489		(B) the obligor has a right of recourse with respect to an
5601	5490		obligation secured by collateral against the debtor,
5602	5491		another obligor, or property of either .
5603	5492		(73) "Secured party" means:
5604	5493		(A) a person in whose favor a security interest is created
5605	5494		or provided for under a security agreement, whe ther or
5606	5495		not any obligation to be secur ed is outstanding;
5607	5496		(B) a person that holds an agricultural lien;
5608	5497		(C) a consignor;
5609	5498		(D) a person to which accounts, chattel paper, payment
5610	5499		intangibles, or promissory notes have been s old;
5611	5500		(E) a trustee, indenture trustee , agent, collateral agent,
5612	5501		or other representative in whose favor a security
5613	5502		interest or agricultural lien is created o r provided
5614	5503		for; or
5615	5504		(F) a person that holds a security inter est arising under
5616	5505		Section 2-401, 2-505, paragraph (3) of Section 2-711,
5617	5506
5618		-	HB2776 HFLR Page 110
5619		-	BOLD FACE denotes Committee Amendments. 1
	5507	+	Req. No. 6221 Page 110 1
5620	5508		2
5621	5509		3
5622	5510		4
5623	5511		5
5624	5512		6
5625	5513		7
5626	5514		8
5627	5515		9
5628	5516		10
5629	5517		11
5630	5518		12
5631	5519		13
5632	5520		14
5633	5521		15
5634	5522		16
5635	5523		17
5636	5524		18
5637	5525		19
5638	5526		20
5639	5527		21
5640	5528		22
5641	5529		23
5642	5530		24
5643	5531
5644	5532		paragraph (5) of Section 2A -508, 4-210, or 5-118 of
5645	5533		this title.
5646	5534		(74) "Security agreement" means an agreement that creates or
5647	5535		provides for a security interest.
5648	5536		(75) "Send", in connection with a record or notification,
5649	5537		means:
5650	5538		(A) to deposit in the mail, deliver for transmission, or
5651	5539		transmit by any other usual means of communication,
5652	5540		with postage or cost of transmission provided for,
5653	5541		addressed to any address reasonable under the
5654	5542		circumstances; or
5655	5543		(B) to cause the record or noti fication to be received
5656	5544		within the time that it would have been received if
5657	5545		properly sent under subparagraph (A) of this paragraph
5658	5546		Reserved.
5659	5547		(76) "Software" means a computer program and an y supporting
5660	5548		information provided in connection with a transaction relating to
5661	5549		the program. The term do es not include a computer program that is
5662	5550		included in the definition of goods.
5663	5551		(77) "State" means a state of the Unite d States, the District
5664	5552		of Columbia, Puerto Rico, the United States Virgin Islands, or any
5665	5553		territory or insular possession subject to the jurisdiction of the
5666	5554		United States.
5667	5555
5668		-	HB2776 HFLR Page 111
5669		-	BOLD FACE denotes Committee Amendments. 1
	5556	+	Req. No. 6221 Page 111 1
5670	5557		2
5671	5558		3
5672	5559		4
5673	5560		5
5674	5561		6
5675	5562		7
5676	5563		8
5677	5564		9
5678	5565		10
5679	5566		11
5680	5567		12
5681	5568		13
5682	5569		14
5683	5570		15
5684	5571		16
5685	5572		17
5686	5573		18
5687	5574		19
5688	5575		20
5689	5576		21
5690	5577		22
5691	5578		23
5692	5579		24
5693	5580
5694	5581		(78) "Supporting obligation" means a letter-of-credit right or
5695	5582		secondary obligation that supports the payment or per formance of an
5696	5583		account, chattel paper, a document, a general intang ible, an
5697	5584		instrument, or investment pr operty.
5698	5585		(79) "Tangible chattel paper " means chattel paper evidenced by
5699	5586		a record or records consisting of information t hat is inscribed on a
5700	5587		tangible medium Reserved.
5701	5588		(79A) "Tangible money" means money in a tangible fo rm.
5702	5589		(80) "Termination statement" means an amendment of a financing
5703	5590		statement which:
5704	5591		(A) identifies, by its file number, the initial financing
5705	5592		statement to which it relates; and
5706	5593		(B) indicates either that it is a ter mination statement or
5707	5594		that the identified financing statement is no longer
5708	5595		effective.
5709	5596		(81) "Transmitting utility " means a person primarily engaged in
5710	5597		the business of:
5711	5598		(A) operating a railroad, sub way, street railway, or
5712	5599		trolley bus;
5713	5600		(B) transmitting communications electrically,
5714	5601		electromagnetically, or by light;
5715	5602		(C) transmitting goods by pipeline or sewer; or
5716	5603		(D) transmitting or producing and transmitting
5717	5604		electricity, steam, gas, or water.
5718	5605
5719		-	HB2776 HFLR Page 112
5720		-	BOLD FACE denotes Committee Amendments. 1
	5606	+	Req. No. 6221 Page 112 1
5721	5607		2
5722	5608		3
5723	5609		4
5724	5610		5
5725	5611		6
5726	5612		7
5727	5613		8
5728	5614		9
5729	5615		10
5730	5616		11
5731	5617		12
5732	5618		13
5733	5619		14
5734	5620		15
5735	5621		16
5736	5622		17
5737	5623		18
5738	5624		19
5739	5625		20
5740	5626		21
5741	5627		22
5742	5628		23
5743	5629		24
5744	5630
5745	5631		(b) "Control" as provided in Section 7 -106 of this title and
5746	5632		the following definitions in other articles o f this title apply to
5747	5633		this article:
5748	5634		"Applicant" - Section 5-102 of this title.
5749	5635		"Beneficiary" - Section 5-102 of this title.
5750	5636		"Broker" - Section 8-102 of this title.
5751	5637		"Certificated security " - Section 8-102 of this title.
5752	5638		"Check" - Section 3-104 of this title.
5753	5639		"Clearing corporation" - Section 8-102 of this title.
5754	5640		"Contract for sale" - Section 2-106 of this title.
5755	5641		"Controllable electronic re cord" – Section 12-102 of this title.
5756	5642		"Customer" - Section 4-104 of this title.
5757	5643		"Entitlement holder" - Section 8-102 of this title.
5758	5644		"Financial asset" - Section 8-102 of this title.
5759	5645		"Holder in due course" - Section 3-302 of this title.
5760	5646		"Issuer" (with respect to a letter of credit or letter-of-credit
5761	5647		right)- Section 5-102 of this title.
5762	5648		"Issuer" – (with respect to a security) – Section 8-201 of this
5763	5649		title.
5764	5650		"Issuer" – (with respect to documen ts of title) – Section 7-102
5765	5651		of this title.
5766	5652		"Lease" - Section 2A-103 of this title.
5767	5653		"Lease agreement" - Section 2A-103 of this title.
5768	5654		"Lease contract" - Section 2A-103 of this title.
5769	5655
5770		-	HB2776 HFLR Page 113
5771		-	BOLD FACE denotes Committee Amendments. 1
	5656	+	Req. No. 6221 Page 113 1
5772	5657		2
5773	5658		3
5774	5659		4
5775	5660		5
5776	5661		6
5777	5662		7
5778	5663		8
5779	5664		9
5780	5665		10
5781	5666		11
5782	5667		12
5783	5668		13
5784	5669		14
5785	5670		15
5786	5671		16
5787	5672		17
5788	5673		18
5789	5674		19
5790	5675		20
5791	5676		21
5792	5677		22
5793	5678		23
5794	5679		24
5795	5680
5796	5681		"Leasehold interest" - Section 2A-103 of this title.
5797	5682		"Lessee" - Section 2A-103 of this title.
5798	5683		"Lessee in ordinary course of business" - Section 2A-103 of this
5799	5684		title.
5800	5685		"Lessor" - Section 2A-103 of this title.
5801	5686		"Lessor's residual interest" - Section 2A-103 of this title.
5802	5687		"Letter of credit" - Section 5-102 of this title.
5803	5688		"Merchant" - Section 2-104 of this title.
5804	5689		"Negotiable instrument" - Section 3-104 of this title.
5805	5690		"Nominated person" - Section 5-102 of this title.
5806	5691		"Note" - Section 3-104 of this title.
5807	5692		"Proceeds of a letter of credit" - Section 5-114 of this title.
5808	5693		"Protected purchaser" – Section 8-303 of this title.
5809	5694		"Prove" - Section 3-103 of this title.
5810	5695		"Qualifying purchaser" – Section 12-102 of this title.
5811	5696		"Sale" - Section 2-106 of this title.
5812	5697		"Securities account" - Section 8-501 of this title.
5813	5698		"Securities intermediary" - Section 8-102 of this title.
5814	5699		"Security" - Section 8-102 of this title.
5815	5700		"Security certificate" - Section 8-102 of this title.
5816	5701		"Security entitlement " - Section 8-102 of this title.
5817	5702		"Uncertificated securit y" - Section 8-102 of this title.
5818	5703
5819		-	HB2776 HFLR Page 114
5820		-	BOLD FACE denotes Committee Amendments. 1
	5704	+	Req. No. 6221 Page 114 1
5821	5705		2
5822	5706		3
5823	5707		4
5824	5708		5
5825	5709		6
5826	5710		7
5827	5711		8
5828	5712		9
5829	5713		10
5830	5714		11
5831	5715		12
5832	5716		13
5833	5717		14
5834	5718		15
5835	5719		16
5836	5720		17
5837	5721		18
5838	5722		19
5839	5723		20
5840	5724		21
5841	5725		22
5842	5726		23
5843	5727		24
5844	5728
5845	5729		(c) Article 1 of this title contains gen eral definitions and
5846	5730		principles of construction an d interpretation applicable throughout
5847	5731		this article.
5848	5732		SECTION 43. AMENDATORY 12A O.S. 2021, Section 1-9-104,
5849	5733		is amended to read as follows:
5850	5734		Section 1-9-104.
5851	5735		CONTROL OF DEPOSIT ACCOUNT
5852	5736
5853	5737		(a) A secured party has control of a deposit account if:
5854	5738		(1) the secured party is the bank with which th e deposit
5855	5739		account is maintained;
5856	5740		(2) the debtor, secured party, and ban k have agreed in an
5857	5741		authenticated a signed record that the bank will
5858	5742		comply with instructions originated by the secured
5859	5743		party directing disposition of the f unds in the
5860	5744		deposit account without further consent by the debtor;
5861	5745		or
5862	5746		(3) the secured party becomes the bank's customer with
5863	5747		respect to the deposit account ; or
5864	5748		(4) another person, other than the debtor:
5865	5749		(A) has control of the deposit account and
5866	5750		acknowledges that it has control on behalf of the
5867	5751		secured party; or
5868	5752		(B) obtains control of the deposit account after
5869	5753		having acknowledged that it will obtain control
5870	5754
5871		-	HB2776 HFLR Page 115
5872		-	BOLD FACE denotes Committee Amendments. 1
	5755	+	Req. No. 6221 Page 115 1
5873	5756		2
5874	5757		3
5875	5758		4
5876	5759		5
5877	5760		6
5878	5761		7
5879	5762		8
5880	5763		9
5881	5764		10
5882	5765		11
5883	5766		12
5884	5767		13
5885	5768		14
5886	5769		15
5887	5770		16
5888	5771		17
5889	5772		18
5890	5773		19
5891	5774		20
5892	5775		21
5893	5776		22
5894	5777		23
5895	5778		24
5896	5779
5897	5780		of the deposit account on behalf of the secured
5898	5781		party.
5899	5782		(b) A secured party that has satisfied su bsection (a) of this
5900	5783		section has control, even if the debtor retains the right to direct
5901	5784		the disposition of funds from the deposit account.
5902	5785		SECTION 44. AMENDATORY 12A O.S. 2021, Section 1 -9-105,
5903	5786		is amended to read as follows:
5904	5787		Section 1-9-105.
5905	5788		CONTROL OF ELECTRONIC COPY OF RECORD EVIDENCING CHATTEL PAPER
5906	5789		(a) A secured party purchaser has control of an authoritative
5907	5790		electronic chattel paper copy of a record evidencing chattel paper
5908	5791		if a system employed for evidencing the transfer assignment of
5909	5792		interests in the chattel paper reliably establishes th e secured
5910	5793		party purchaser as the person to which the chattel paper
5911	5794		authoritative electronic copy was assigned.
5912	5795		(b) A system satisfies subsection (a) of this section , and a
5913	5796		secured party has control of electronic ch attel paper, if the record
5914	5797		or records comprising evidencing the chattel paper are created,
5915	5798		stored, and assigned in such a manner that:
5916	5799		(1) a single authoritative copy of the record or records exists
5917	5800		which is unique, identifiabl e and, except as otherwise p rovided in
5918	5801		paragraphs (4), (5), and (6) of this se ction, unalterable;
5919	5802		(2) the authoritative copy identifies the secured party
5920	5803		purchaser as the assignee of the record or records;
5921	5804
5922		-	HB2776 HFLR Page 116
5923		-	BOLD FACE denotes Committee Amendments. 1
	5805	+	Req. No. 6221 Page 116 1
5924	5806		2
5925	5807		3
5926	5808		4
5927	5809		5
5928	5810		6
5929	5811		7
5930	5812		8
5931	5813		9
5932	5814		10
5933	5815		11
5934	5816		12
5935	5817		13
5936	5818		14
5937	5819		15
5938	5820		16
5939	5821		17
5940	5822		18
5941	5823		19
5942	5824		20
5943	5825		21
5944	5826		22
5945	5827		23
5946	5828		24
5947	5829
5948	5830		(3) the authoritative copy is communicated to an d maintained by
5949	5831		the secured party purchaser or its designated custodian;
5950	5832		(4) copies or amendments that add or change an identified
5951	5833		assignee of the authoritative copy can be made on ly with the consent
5952	5834		of the secured party purchaser;
5953	5835		(5) each copy of the a uthoritative copy and any co py of a copy
5954	5836		is readily identifiable as a copy tha t is not the authoritative
5955	5837		copy; and
5956	5838		(6) any amendment of the authoritative copy is readily
5957	5839		identifiable as authorized or unauthorized.
5958	5840		(c) A system satisfies subsection (a) of this section, and a
5959	5841		purchaser has control of an authoritative electronic copy of a
5960	5842		record evidencing chattel paper, if the electronic copy, a record
5961	5843		attached to or logically associ ated with the electronic copy, or a
5962	5844		system in which the electronic copy is recorded:
5963	5845		(1) enables the purchaser readily to identify each electronic
5964	5846		copy as either an authoritative copy or a nonauthoritative copy;
5965	5847		(2) enables the purchaser readily to identify itself in any
5966	5848		way, including by name, identifying number, cryptograph ic key,
5967	5849		office, or account n umber, as the assignee of the authoritative
5968	5850		electronic copy; and
5969	5851		(3) gives the purchaser exclusive power, subject to subsection
5970	5852		(d) of this section, to:
5971	5853
5972		-	HB2776 HFLR Page 117
5973		-	BOLD FACE denotes Committee Amendments. 1
	5854	+	Req. No. 6221 Page 117 1
5974	5855		2
5975	5856		3
5976	5857		4
5977	5858		5
5978	5859		6
5979	5860		7
5980	5861		8
5981	5862		9
5982	5863		10
5983	5864		11
5984	5865		12
5985	5866		13
5986	5867		14
5987	5868		15
5988	5869		16
5989	5870		17
5990	5871		18
5991	5872		19
5992	5873		20
5993	5874		21
5994	5875		22
5995	5876		23
5996	5877		24
5997	5878
5998	5879		(A) prevent others from adding or changing an identified
5999	5880		assignee of the authoritative electronic copy; and
6000	5881		(B) transfer control of the authoritative electronic copy.
6001	5882		(d) Subject to subsection (e) of this section, a power is
6002	5883		exclusive under subparagraphs (A) and (B) of paragraph 3 of
6003	5884		subsection (c) of this section even if:
6004	5885		(1) the authoritative electronic copy, a record attached to or
6005	5886		logically associated with the authoritative electronic copy, or a
6006	5887		system in which the authoritative electronic copy is reco rded limits
6007	5888		the use of the authoritative electronic copy or has a protocol
6008	5889		programmed to cause a change, including a transfer or loss of
6009	5890		control; or
6010	5891		(2) the power is shared with another person.
6011	5892		(e) A power of a purchaser is not shared with another person
6012	5893		under paragraph 2 of subsection (d) of this section and the
6013	5894		purchaser's power is not exclusive if:
6014	5895		(1) the purchaser can exercise the power only if the power also
6015	5896		is exercised by the other pers on; and
6016	5897		(2) the other person:
6017	5898		(A) can exercise the power witho ut exercise of the power
6018	5899		by the purchaser; or
6019	5900		(B) is the transferor to the p urchaser of an interest in
6020	5901		the chattel paper.
6021	5902
6022		-	HB2776 HFLR Page 118
6023		-	BOLD FACE denotes Committee Amendments. 1
	5903	+	Req. No. 6221 Page 118 1
6024	5904		2
6025	5905		3
6026	5906		4
6027	5907		5
6028	5908		6
6029	5909		7
6030	5910		8
6031	5911		9
6032	5912		10
6033	5913		11
6034	5914		12
6035	5915		13
6036	5916		14
6037	5917		15
6038	5918		16
6039	5919		17
6040	5920		18
6041	5921		19
6042	5922		20
6043	5923		21
6044	5924		22
6045	5925		23
6046	5926		24
6047	5927
6048	5928		(f) If a purchaser has the powers specified in subparagraphs
6049	5929		(A) and (B) of paragraph (3) of subsection (c) of this section, the
6050	5930		powers are presumed to be exclusive.
6051	5931		(g) A purchaser has control of an authoritative electronic copy
6052	5932		of a record evidencing chattel paper if another person, other than
6053	5933		the transferor to the purchaser of an interest in the chattel paper :
6054	5934		(1) has control of the authoritative electronic copy and
6055	5935		acknowledges that it has control on beha lf of the purchaser; or
6056	5936		(2) obtains control of the authoritative electroni c copy after
6057	5937		having acknowledged that it will obtain control of the electronic
6058	5938		copy on behalf of the purc haser.
6059	5939		SECTION 45. NEW LAW A new section of law to be codified
6060	5940		in the Oklahoma Statutes as Section 1-9-105A of Title 12A, unless
6061	5941		there is created a duplication in numberin g, reads as follows:
6062	5942		CONTROL OF ELECTRONIC M ONEY
6063	5943		(a) A person has control of electronic money if:
6064	5944		(1) The electronic money, a record attached to or logically
6065	5945		associated with the electronic money, or a system in which the
6066	5946		electronic money is recorded gives the person:
6067	5947		(A) power to avail itself of substantially all the benefit
6068	5948		from the electronic money; and
6069	5949		(B) exclusive power, subject to subsection (b) of this
6070	5950		section, to:
6071	5951
6072		-	HB2776 HFLR Page 119
6073		-	BOLD FACE denotes Committee Amendments. 1
	5952	+	Req. No. 6221 Page 119 1
6074	5953		2
6075	5954		3
6076	5955		4
6077	5956		5
6078	5957		6
6079	5958		7
6080	5959		8
6081	5960		9
6082	5961		10
6083	5962		11
6084	5963		12
6085	5964		13
6086	5965		14
6087	5966		15
6088	5967		16
6089	5968		17
6090	5969		18
6091	5970		19
6092	5971		20
6093	5972		21
6094	5973		22
6095	5974		23
6096	5975		24
6097	5976
6098	5977		(i) prevent others from availing themselv es of
6099	5978		substantially all the benefit from the electronic
6100	5979		money; and
6101	5980		(ii) transfer control of the electronic money to
6102	5981		another person or cause another person to obtain
6103	5982		control of other electronic money as a result of
6104	5983		the transfer of the electronic money; and
6105	5984		(2) The electronic money, a record attached to or logi cally
6106	5985		associated with the electronic money, or a system in which the
6107	5986		electronic money is recorded enables the pers on readily to identify
6108	5987		itself in any way, including by name, identifying number,
6109	5988		cryptographic key, office, or account number , as having the powers
6110	5989		under paragraph (1) of this subsection.
6111	5990		(b) Subject to subsection (c) of this section, a power is
6112	5991		exclusive under divisions (i) and (ii) of subparagraph (B) of
6113	5992		paragraph (1) of subsection (a) of this section even if:
6114	5993		(1) The electronic money, a re cord attached to or logically
6115	5994		associated with the electronic money, or a system in which the
6116	5995		electronic money is r ecorded limits the us e of the electronic money
6117	5996		or has a protocol programmed to cause a c hange, including a transfer
6118	5997		or loss of control; or
6119	5998		(2) The power is shared with another person.
6120	5999
6121		-	HB2776 HFLR Page 120
6122		-	BOLD FACE denotes Committee Amendments. 1
	6000	+	Req. No. 6221 Page 120 1
6123	6001		2
6124	6002		3
6125	6003		4
6126	6004		5
6127	6005		6
6128	6006		7
6129	6007		8
6130	6008		9
6131	6009		10
6132	6010		11
6133	6011		12
6134	6012		13
6135	6013		14
6136	6014		15
6137	6015		16
6138	6016		17
6139	6017		18
6140	6018		19
6141	6019		20
6142	6020		21
6143	6021		22
6144	6022		23
6145	6023		24
6146	6024
6147	6025		(c) A power of a person is not shared with another person under
6148	6026		paragraph (2) of subsection (b) of this section and the person's
6149	6027		power is not exclusive if:
6150	6028		(1) The person can exercise the power only if the po wer also is
6151	6029		exercised by the other person; and
6152	6030		(2) The other person:
6153	6031		(A) can exercise the power without exercise of the power
6154	6032		by the person; or
6155	6033		(B) is the transferor to the p erson of an interest in the
6156	6034		electronic money.
6157	6035		(d) If a person has the powers specified in divisions (i) and
6158	6036		(ii) of subparagraph (B) of paragra ph (1) of subsection (a) of this
6159	6037		section, the powers are presumed to be exclusive.
6160	6038		(e) A person has control of electronic money if another person,
6161	6039		other than the transferor to the person of an interest in the
6162	6040		electronic money:
6163	6041		(1) has control of the electronic money and acknowledges that
6164	6042		it has control on behalf of the person; or
6165	6043		(2) obtains control of the electronic money after having
6166	6044		acknowledged that it will obtain control of the electronic money on
6167	6045		behalf of the person.
6168	6046		SECTION 46. NEW LAW A new s ection of law to be codified
6169	6047		in the Oklahoma Statutes as Section 1-9-107A of Title 12A, unless
6170	6048		there is created a duplic ation in numbering, reads as follows:
6171	6049
6172		-	HB2776 HFLR Page 121
6173		-	BOLD FACE denotes Committee Amendments. 1
	6050	+	Req. No. 6221 Page 121 1
6174	6051		2
6175	6052		3
6176	6053		4
6177	6054		5
6178	6055		6
6179	6056		7
6180	6057		8
6181	6058		9
6182	6059		10
6183	6060		11
6184	6061		12
6185	6062		13
6186	6063		14
6187	6064		15
6188	6065		16
6189	6066		17
6190	6067		18
6191	6068		19
6192	6069		20
6193	6070		21
6194	6071		22
6195	6072		23
6196	6073		24
6197	6074
6198	6075		CONTROL OF CONTROLLABLE ELECTRONIC RECORD , CONTROLLABLE ACCOUNT ,
6199	6076		OR CONTROLLABLE PAYMENT INTANGIBLE
6200	6077		(a) A secured party has contr ol of a controllable electronic
6201	6078		record as provided in Section 12 -105 of this title.
6202	6079		(b) A secured party has control of a controllable account or
6203	6080		controllable payment intangible if the sec ured party has control of
6204	6081		the controllable electronic record that ev idences the controllable
6205	6082		account or controllable payme nt intangible.
6206	6083		SECTION 47. NEW LAW A new section of law to be codified
6207	6084		in the Oklahoma Statutes as Section 1-9-107B of Title 12A, unless
6208	6085		there is created a duplication in numberin g, reads as follows:
6209	6086		NO REQUIREMENT TO ACKNOWLEDGE OR CON FIRM; NO DUTIES
6210	6087		(a) A person that has control under Section 9-104, 9-105, or 9-
6211	6088		105A of this title is not required to acknowledge that it has
6212	6089		control on behalf of another person.
6213	6090		(b) If a person acknowledges that it has or will obtain control
6214	6091		on behalf of another person, unless the perso n otherwise agrees or
6215	6092		law other than this article otherwise provides, t he person does not
6216	6093		owe any duty to the other person and is not required to conf irm the
6217	6094		acknowledgment to an y other person.
6218	6095		SECTION 48. AMENDATORY 12A O.S. 2021, Section 1-9-203,
6219	6096		is amended to read as follows:
6220	6097		Section 1-9-203.
6221	6098		ATTACHMENT AND ENFORCEABILITY OF SE CURITY INTEREST;
6222	6099
6223		-	HB2776 HFLR Page 122
6224		-	BOLD FACE denotes Committee Amendments. 1
	6100	+	Req. No. 6221 Page 122 1
6225	6101		2
6226	6102		3
6227	6103		4
6228	6104		5
6229	6105		6
6230	6106		7
6231	6107		8
6232	6108		9
6233	6109		10
6234	6110		11
6235	6111		12
6236	6112		13
6237	6113		14
6238	6114		15
6239	6115		16
6240	6116		17
6241	6117		18
6242	6118		19
6243	6119		20
6244	6120		21
6245	6121		22
6246	6122		23
6247	6123		24
6248	6124
6249	6125		PROCEEDS; SUPPORTING OBLIGATIONS ; FORMAL REQUISITES
6250	6126		(a) A security inter est attaches to collateral when it becomes
6251	6127		enforceable against th e debtor with respect to the c ollateral,
6252	6128		unless an agreement expressly postpones the time of attachme nt.
6253	6129		(b) Except as otherwise provided in subsect ions (c) through (i)
6254	6130		of this section, a se curity interest is enforceable against the
6255	6131		debtor and third parti es with respect to the collate ral only if:
6256	6132		(1) value has been given;
6257	6133		(2) the debtor has rights in t he collateral or the power to
6258	6134		transfer rights in the collateral to a secured party; and
6259	6135		(3) one of the following conditions is met:
6260	6136		(A) the debtor has authenticated signed a security
6261	6137		agreement that provides a description of the
6262	6138		collateral and, if the secu rity interest covers timber
6263	6139		to be cut, a descrip tion of the land concerned;
6264	6140		(B) the collateral is not a certificated security and is
6265	6141		in the possession of t he secured party under Section
6266	6142		1-9-313 of this title pursuant to the d ebtor's
6267	6143		security agreement;
6268	6144		(C) the collateral is a certificated security in
6269	6145		registered form and the security certificate has been
6270	6146		delivered to the secured party under Section 8 -301 of
6271	6147		this title pursuant to the debt or's security
6272	6148		agreement; or
6273	6149
6274		-	HB2776 HFLR Page 123
6275		-	BOLD FACE denotes Committee Amendments. 1
	6150	+	Req. No. 6221 Page 123 1
6276	6151		2
6277	6152		3
6278	6153		4
6279	6154		5
6280	6155		6
6281	6156		7
6282	6157		8
6283	6158		9
6284	6159		10
6285	6160		11
6286	6161		12
6287	6162		13
6288	6163		14
6289	6164		15
6290	6165		16
6291	6166		17
6292	6167		18
6293	6168		19
6294	6169		20
6295	6170		21
6296	6171		22
6297	6172		23
6298	6173		24
6299	6174
6300	6175		(D) the collateral is controllable accounts , controllable
6301	6176		electronic records, controllable payment intangibles,
6302	6177		deposit accounts, ele ctronic chattel paper documents,
6303	6178		electronic money, investment property, or letter-of-
6304	6179		credit rights, or electronic documents, and the
6305	6180		secured party has control under S ection 7-106, 1-9-
6306	6181		104, 1-9-105 1-9-105A, 1-9-106, or 1-9-107, or 1-9-
6307	6182		107A of this title pursuant to the debtor's security
6308	6183		agreement; or
6309	6184		(E) the collateral is chattel paper and the secur ed party
6310	6185		has possession and control und er Section 1-9-314A of
6311	6186		this title pursuant to the debtor's security
6312	6187		agreement.
6313	6188		(c) Subsection (b) of this section is sub ject to Section 4-210
6314	6189		of this title on the security interest of a collecting bank, Section
6315	6190		5-118 of this title on the security interest of a letter-of-credit
6316	6191		issuer or nominated person, Section 1 -9-110 of this title on a
6317	6192		security interest arising under Art icle 2 or 2A of this title , and
6318	6193		Section 1-9-206 of this title on s ecurity interests in investmen t
6319	6194		property.
6320	6195		(d) A person becomes bound as debtor by a security agreeme nt
6321	6196		entered into by another person if, by operat ion of law other than
6322	6197		this article or by c ontract:
6323	6198
6324		-	HB2776 HFLR Page 124
6325		-	BOLD FACE denotes Committee Amendments. 1
	6199	+	Req. No. 6221 Page 124 1
6326	6200		2
6327	6201		3
6328	6202		4
6329	6203		5
6330	6204		6
6331	6205		7
6332	6206		8
6333	6207		9
6334	6208		10
6335	6209		11
6336	6210		12
6337	6211		13
6338	6212		14
6339	6213		15
6340	6214		16
6341	6215		17
6342	6216		18
6343	6217		19
6344	6218		20
6345	6219		21
6346	6220		22
6347	6221		23
6348	6222		24
6349	6223
6350	6224		(1) the security agreement becomes effective to create a
6351	6225		security interest in the pers on's property; or
6352	6226		(2) the person becom es generally obligated for the o bligations
6353	6227		of the other person, including the o bligation secured under the
6354	6228		security agreement, and acquires or succ eeds to all or substantially
6355	6229		all of the assets of the other person.
6356	6230		(e) If a new debtor becomes bound as deb tor by a security
6357	6231		agreement entered into by another person:
6358	6232		(1) the agreement satisfies paragraph (3) of subsection (b) of
6359	6233		this section with respe ct to existing or after-acquired property of
6360	6234		the new debtor to the ext ent the property is described in the
6361	6235		agreement; and
6362	6236		(2) another agreement is not necessary to make a security
6363	6237		interest in the property enforceable.
6364	6238		(f) The attachment of a security int erest in collateral gives
6365	6239		the secured party the rights to proceeds pro vided by Section 1-9-315
6366	6240		of this title and is also attachment of a secu rity interest in a
6367	6241		supporting obligation for th e collateral.
6368	6242		(g) The attachment of a sec urity interest in a right to payment
6369	6243		or performance secured by a s ecurity interest or other lien on
6370	6244		personal or real property is also a ttachment of a security interest
6371	6245		in the security interest, mortgage, or other l ien.
6372	6246
6373		-	HB2776 HFLR Page 125
6374		-	BOLD FACE denotes Committee Amendments. 1
	6247	+	Req. No. 6221 Page 125 1
6375	6248		2
6376	6249		3
6377	6250		4
6378	6251		5
6379	6252		6
6380	6253		7
6381	6254		8
6382	6255		9
6383	6256		10
6384	6257		11
6385	6258		12
6386	6259		13
6387	6260		14
6388	6261		15
6389	6262		16
6390	6263		17
6391	6264		18
6392	6265		19
6393	6266		20
6394	6267		21
6395	6268		22
6396	6269		23
6397	6270		24
6398	6271
6399	6272		(h) The attachment of a security int erest in a securities
6400	6273		account is also attachment of a security int erest in the security
6401	6274		entitlements carried in the securities account.
6402	6275		(i) The attachment of a securi ty interest in a commodity
6403	6276		account is also atta chment of a security interest in the commo dity
6404	6277		contracts carried in the commodity account.
6405	6278		SECTION 49. AMENDATORY 12A O.S. 2021, Section 1-9-204,
6406	6279		is amended to read as follows:
6407	6280		Section 1-9-204.
6408	6281		AFTER-ACQUIRED PROPERTY; FUTURE ADVAN CES
6409	6282		(a) Except as otherwise provided in subsection (b) of this
6410	6283		section, a security agreement may create or provide for a security
6411	6284		interest in after-acquired collateral.
6412	6285		(b) A Subject to subsection (d) of this section, a security
6413	6286		interest does not attach u nder a term constituting an after -acquired
6414	6287		property clause to:
6415	6288		(1) consumer goods, other than an accession when given as
6416	6289		additional security, unless the debtor acquires rights in them
6417	6290		within ten (10) days after the secured party gives value; or
6418	6291		(2) a commercial tort claim.
6419	6292		(c) A security agreement may provide that co llateral secures,
6420	6293		or that accounts, chatte l paper, payment intangibles, or promissory
6421	6294		notes are sold in connection with, future advances or other value,
6422	6295
6423		-	HB2776 HFLR Page 126
6424		-	BOLD FACE denotes Committee Amendments. 1
	6296	+	Req. No. 6221 Page 126 1
6425	6297		2
6426	6298		3
6427	6299		4
6428	6300		5
6429	6301		6
6430	6302		7
6431	6303		8
6432	6304		9
6433	6305		10
6434	6306		11
6435	6307		12
6436	6308		13
6437	6309		14
6438	6310		15
6439	6311		16
6440	6312		17
6441	6313		18
6442	6314		19
6443	6315		20
6444	6316		21
6445	6317		22
6446	6318		23
6447	6319		24
6448	6320
6449	6321		whether or not the advances or value a re given pursuant to
6450	6322		commitment.
6451	6323		(d) Subsection (b) of this section does not prevent a security
6452	6324		interest from attaching:
6453	6325		(1) to consumer goods as proceeds under subsection (a) of
6454	6326		Section 1-9-315 of this title or commingled goods under subsection
6455	6327		(c) of Section 1-9-336 of this title;
6456	6328		(2) to a commercial tort claim as procee ds under subsection (a)
6457	6329		of Section 1-9-315 of this title; or
6458	6330		(3) under an after-acquired property clause to property that is
6459	6331		proceeds of consumer goods or a commercial tort claim.
6460	6332		SECTION 50. AMENDATORY 12A O.S. 202 1, Section 1-9-207,
6461	6333		is amended to read as follows :
6462	6334		Section 1-9-207.
6463	6335		RIGHTS AND DUTIES OF SECURED PARTY
6464	6336		HAVING POSSESSION OR CONTROL OF COLLATERAL
6465	6337		(a) Except as otherwise provided in subsection (d) of this
6466	6338		section, a secured party shall use reasonable car e in the custody
6467	6339		and preservation of collateral i n the secured party's possession.
6468	6340		In the case of chattel paper or an in strument, reasonable c are
6469	6341		includes taking necessary steps to preserve rights against prior
6470	6342		parties unless otherwise agreed.
6471	6343		(b) Except as otherwise provided in subsection (d) of this
6472	6344		section, if a secured party has posses sion of collateral:
6473	6345
6474		-	HB2776 HFLR Page 127
6475		-	BOLD FACE denotes Committee Amendments. 1
	6346	+	Req. No. 6221 Page 127 1
6476	6347		2
6477	6348		3
6478	6349		4
6479	6350		5
6480	6351		6
6481	6352		7
6482	6353		8
6483	6354		9
6484	6355		10
6485	6356		11
6486	6357		12
6487	6358		13
6488	6359		14
6489	6360		15
6490	6361		16
6491	6362		17
6492	6363		18
6493	6364		19
6494	6365		20
6495	6366		21
6496	6367		22
6497	6368		23
6498	6369		24
6499	6370
6500	6371		(1) reasonable expenses, including the cost of insurance and
6501	6372		payment of taxes or other charges, incurred in the c ustody,
6502	6373		preservation, use, or opera tion of the collater al are chargeable to
6503	6374		the debtor and are secured by the collateral;
6504	6375		(2) the risk of accidental loss o r damage is on the deb tor to
6505	6376		the extent of a deficiency in any effective insurance coverage;
6506	6377		(3) the secured party shall keep the coll ateral identifiable,
6507	6378		but fungible collateral may be commingled; and
6508	6379		(4) the secured party may use or operate the collate ral:
6509	6380		(A) for the purpose of preserving the collateral or its
6510	6381		value;
6511	6382		(B) as permitted by an order of a court having competent
6512	6383		jurisdiction; or
6513	6384		(C) except in the case of consumer goods, in the manner
6514	6385		and to the extent agreed by the debtor.
6515	6386		(c) Except as otherwise provided in sub section (d) of this
6516	6387		section, a secured party having possession of collateral o r control
6517	6388		of collateral under Secti on 7-106, 1-9-104, 1-9-105, 1-9-905A, 1-9-
6518	6389		106, or 1-9-107, or 1-9-107A of this title:
6519	6390		(1) may hold as additional securi ty any proceeds, except money
6520	6391		or funds, received from the collateral;
6521	6392		(2) shall apply money or fund s received from the collateral to
6522	6393		reduce the secured ob ligation, unless remitted to the debtor; and
6523	6394		(3) may create a secu rity interest in the collateral.
6524	6395
6525		-	HB2776 HFLR Page 128
6526		-	BOLD FACE denotes Committee Amendments. 1
	6396	+	Req. No. 6221 Page 128 1
6527	6397		2
6528	6398		3
6529	6399		4
6530	6400		5
6531	6401		6
6532	6402		7
6533	6403		8
6534	6404		9
6535	6405		10
6536	6406		11
6537	6407		12
6538	6408		13
6539	6409		14
6540	6410		15
6541	6411		16
6542	6412		17
6543	6413		18
6544	6414		19
6545	6415		20
6546	6416		21
6547	6417		22
6548	6418		23
6549	6419		24
6550	6420
6551	6421		(d) If the secured party is a buyer of accounts, chattel paper,
6552	6422		payment intangibles, or promissory n otes or a consignor:
6553	6423		(1) subsection (a) of this sectio n does not apply unless the
6554	6424		secured party is entitled under an agre ement:
6555	6425		(A) to charge back uncollec ted collateral; or
6556	6426		(B) otherwise to full or limited recourse against the
6557	6427		debtor or a secondary oblig or based on the nonpayment
6558	6428		or other default of an account debtor or other obligor
6559	6429		on the collateral; and
6560	6430		(2) subsections (b) and (c) of this section do not apply.
6561	6431		SECTION 51. AMENDATORY 12A O.S. 2021, Section 1 -9-208,
6562	6432		is amended to read as follows:
6563	6433		Section 1-9-208.
6564	6434		ADDITIONAL DUTIES OF SECURED PARTY
6565	6435		HAVING CONTROL OF COLLATERAL
6566	6436		(a) This section appl ies to cases in which there is no
6567	6437		outstanding secured ob ligation and the secured party is not
6568	6438		committed to make advances, incur obligations, or otherwise give
6569	6439		value.
6570	6440		(b) Within ten (10) days after receiving an authenticated a
6571	6441		signed demand by the debtor:
6572	6442		(1) a secured party having control of a deposit account under
6573	6443		paragraph (2) of subsection (a) of Section 1-9-104 of this title
6574	6444		shall send to the bank with which the deposit acc ount is maintained
6575	6445
6576		-	HB2776 HFLR Page 129
6577		-	BOLD FACE denotes Committee Amendments. 1
	6446	+	Req. No. 6221 Page 129 1
6578	6447		2
6579	6448		3
6580	6449		4
6581	6450		5
6582	6451		6
6583	6452		7
6584	6453		8
6585	6454		9
6586	6455		10
6587	6456		11
6588	6457		12
6589	6458		13
6590	6459		14
6591	6460		15
6592	6461		16
6593	6462		17
6594	6463		18
6595	6464		19
6596	6465		20
6597	6466		21
6598	6467		22
6599	6468		23
6600	6469		24
6601	6470
6602	6471		an authenticated statement a signed record that releases the bank
6603	6472		from any further obligation to comply with instruc tions originated
6604	6473		by the secured party;
6605	6474		(2) a secured party having control of a deposit account under
6606	6475		paragraph (3) of subsection (a) of Section 1-9-104 of this title
6607	6476		shall:
6608	6477		(A) pay the debtor the bal ance on deposit in the deposit
6609	6478		account; or
6610	6479		(B) transfer the balance on deposit into a deposit account
6611	6480		in the debtor's name;
6612	6481		(3) a secured party, other than a buyer, having cont rol of
6613	6482		electronic chattel paper under Section 1-9-105 of this title shall:
6614	6483		(A) communicate the of an authoritative electronic copy of
6615	6484		the electronic a record evidencing chattel paper to
6616	6485		the debtor or its designated custodian;
6617	6486		(B) if the debtor designates a custodian that is the
6618	6487		designated custodian with which the authoritative copy
6619	6488		of the electronic chattel paper is maintained for the
6620	6489		secured party, communicate to the custodian an
6621	6490		authenticated record releasing the designated
6622	6491		custodian from any further obli gation to comply with
6623	6492		instructions originated by the secured party and
6624	6493		instructing the custodian to comply with instructions
6625	6494		originated by the debtor; and
6626	6495
6627		-	HB2776 HFLR Page 130
6628		-	BOLD FACE denotes Committee Amendments. 1
	6496	+	Req. No. 6221 Page 130 1
6629	6497		2
6630	6498		3
6631	6499		4
6632	6500		5
6633	6501		6
6634	6502		7
6635	6503		8
6636	6504		9
6637	6505		10
6638	6506		11
6639	6507		12
6640	6508		13
6641	6509		14
6642	6510		15
6643	6511		16
6644	6512		17
6645	6513		18
6646	6514		19
6647	6515		20
6648	6516		21
6649	6517		22
6650	6518		23
6651	6519		24
6652	6520
6653	6521		(C) take appropriate action to enable the debtor or its
6654	6522		designated custodian to make copies of or rev isions to
6655	6523		the authoritative copy which add or change an
6656	6524		identified assignee of the authoritative copy without
6657	6525		the consent of the secure d party shall transfer
6658	6526		control of the electronic copy to the debtor or a
6659	6527		person designated by the debtor;
6660	6528		(4) a secured party having control of investment prope rty under
6661	6529		paragraph (2) of subsection (d) of Section 8-106 of this title or
6662	6530		subsection (b) of Section 1-9-106 of this title shall send to the
6663	6531		securities intermediary or commodity intermediary with which th e
6664	6532		security entitlement or commodity contract is mai ntained an
6665	6533		authenticated a signed record that releases the securities
6666	6534		intermediary or commodity intermediary from any further obligation
6667	6535		to comply with entitlement orders or directions o riginated by the
6668	6536		secured party;
6669	6537		(5) a secured party having control of a letter-of-credit right
6670	6538		under Section 1-9-107 of this title shall send to each per son having
6671	6539		an unfulfilled obligation to pay or deliver proceeds of the letter
6672	6540		of credit to the secured party an authenticated a signed release
6673	6541		from any further obligation t o pay or deliver proceeds of the letter
6674	6542		of credit to the secured party; and
6675	6543
6676		-	HB2776 HFLR Page 131
6677		-	BOLD FACE denotes Committee Amendments. 1
	6544	+	Req. No. 6221 Page 131 1
6678	6545		2
6679	6546		3
6680	6547		4
6681	6548		5
6682	6549		6
6683	6550		7
6684	6551		8
6685	6552		9
6686	6553		10
6687	6554		11
6688	6555		12
6689	6556		13
6690	6557		14
6691	6558		15
6692	6559		16
6693	6560		17
6694	6561		18
6695	6562		19
6696	6563		20
6697	6564		21
6698	6565		22
6699	6566		23
6700	6567		24
6701	6568
6702	6569		(6) a secured party having control under Section 7-106 of this
6703	6570		title of an authoritative electronic copy of an electronic document
6704	6571		shall:
6705	6572		(A) give control of the electronic docume nt to the debtor
6706	6573		or its designated cust odian;
6707	6574		(B) if the debtor designates a custodi an that is the
6708	6575		designated custodian with which the authoritative copy
6709	6576		of the electronic document is maintained for the
6710	6577		secured party, communicate to the custodian an
6711	6578		authenticated record releasing the designated
6712	6579		custodian from any further obligation to com ply with
6713	6580		instructions originated by the secured party and
6714	6581		instructing the custodian to comply with instructions
6715	6582		originated by the debtor; and
6716	6583		(C) take appropriate action to enable the debtor or its
6717	6584		designated custodian to make copies of or revisions to
6718	6585		the authoritative copy which add or change an
6719	6586		identified assignee of the authoritative copy without
6720	6587		the consent of the secur ed party shall transfer
6721	6588		control of the electronic copy to the debtor or a
6722	6589		person designated by the debtor;
6723	6590		(7) a secured party having control under Section 1-9-105A of
6724	6591		this title of electronic money shall transfer control of the
6725	6592
6726		-	HB2776 HFLR Page 132
6727		-	BOLD FACE denotes Committee Amendments. 1
	6593	+	Req. No. 6221 Page 132 1
6728	6594		2
6729	6595		3
6730	6596		4
6731	6597		5
6732	6598		6
6733	6599		7
6734	6600		8
6735	6601		9
6736	6602		10
6737	6603		11
6738	6604		12
6739	6605		13
6740	6606		14
6741	6607		15
6742	6608		16
6743	6609		17
6744	6610		18
6745	6611		19
6746	6612		20
6747	6613		21
6748	6614		22
6749	6615		23
6750	6616		24
6751	6617
6752	6618		electronic money to the debtor or a person designated by the debtor;
6753	6619		and
6754	6620		(8) a secured party having control under Section 12-105 of this
6755	6621		title of a controllable electronic record, other than a buyer of a
6756	6622		controllable account or controllable payment intangible evidenced by
6757	6623		the controllable electronic record, shall transfer control of the
6758	6624		controllable electronic record to the debtor or a person designated
6759	6625		by the debtor.
6760	6626		SECTION 52. AMENDATORY 12A O.S. 2021, Section 1 -9-209,
6761	6627		is amended to read as follo ws:
6762	6628		Section 1-9-209.
6763	6629		DUTIES OF SECURED PARTY IF AC COUNT
6764	6630		DEBTOR HAS BEEN NOTIFIED OF ASSIGNMENT
6765	6631		(a) Except as otherwise provided in subsection ( c) of this
6766	6632		section, this section applies if:
6767	6633		(1) there is no outstanding secured obligation; and
6768	6634		(2) the secured party is not commit ted to make advances, incur
6769	6635		obligations, or otherwise give value.
6770	6636		(b) Within ten (10) days after receiving an authenticated a
6771	6637		signed demand by the debtor, a secured party s hall send to an
6772	6638		account debtor that has received notificatio n under subsection (a)
6773	6639		of Section 1-9-406 of this title or subsection (b) of Section 12-106
6774	6640		of this title of an assignment to the secured party a s assignee
6775	6641		under subsection (a) of Section 1-9-406 of this title an
6776	6642
6777		-	HB2776 HFLR Page 133
6778		-	BOLD FACE denotes Committee Amendments. 1
	6643	+	Req. No. 6221 Page 133 1
6779	6644		2
6780	6645		3
6781	6646		4
6782	6647		5
6783	6648		6
6784	6649		7
6785	6650		8
6786	6651		9
6787	6652		10
6788	6653		11
6789	6654		12
6790	6655		13
6791	6656		14
6792	6657		15
6793	6658		16
6794	6659		17
6795	6660		18
6796	6661		19
6797	6662		20
6798	6663		21
6799	6664		22
6800	6665		23
6801	6666		24
6802	6667
6803	6668		authenticated a signed record that releases the account debtor fro m
6804	6669		any further obligation to the secured party.
6805	6670		(c) This section does not apply to an assignment constituting
6806	6671		the sale of an account, chattel paper, or payment intangible.
6807	6672		SECTION 53. AMENDATORY 12A O.S. 2021, Section 1 -9-210,
6808	6673		is amended to read as follows:
6809	6674		Section 1-9-210.
6810	6675		REQUEST FOR ACCOUNTING; REQUEST REGARDING
6811	6676		LIST OF COLLATERAL OR STATEMENT OF ACCOUN T
6812	6677		(a) In this section:
6813	6678		(1) "Request" means a record of a type describ ed in paragraph
6814	6679		(2), (3), or (4) of this subsection.
6815	6680		(2) "Request for an accounting " means a record authenticated
6816	6681		signed by a debtor requesting that the recipient provide an
6817	6682		accounting of the unpaid obligations secured by collateral and
6818	6683		reasonably identifyi ng the transaction or relationship that is the
6819	6684		subject of the request.
6820	6685		(3) "Request regarding a list of collateral" means a record
6821	6686		authenticated signed by a debtor requesting that t he recipient
6822	6687		approve or correct a list of what the debtor believes to be t he
6823	6688		collateral securing an obligation and reasonably iden tifying the
6824	6689		transaction or relationship that is the subject of the request.
6825	6690		(4) "Request regarding a statement of account " means a record
6826	6691		authenticated signed by a debtor requesting that the recipien t
6827	6692
6828		-	HB2776 HFLR Page 134
6829		-	BOLD FACE denotes Committee Amendments. 1
	6693	+	Req. No. 6221 Page 134 1
6830	6694		2
6831	6695		3
6832	6696		4
6833	6697		5
6834	6698		6
6835	6699		7
6836	6700		8
6837	6701		9
6838	6702		10
6839	6703		11
6840	6704		12
6841	6705		13
6842	6706		14
6843	6707		15
6844	6708		16
6845	6709		17
6846	6710		18
6847	6711		19
6848	6712		20
6849	6713		21
6850	6714		22
6851	6715		23
6852	6716		24
6853	6717
6854	6718		approve or correct a statement indicating what the deb tor believes
6855	6719		to be the aggregate amount of unpaid obligations secured by
6856	6720		collateral as of a specified date and reasonably iden tifying the
6857	6721		transaction or relationship that is th e subject of the request .
6858	6722		(b) Subject to subsections (c), (d), (e), and (f) of this
6859	6723		section, a secured pa rty, other than a buyer of accounts, chattel
6860	6724		paper, payment intangibles, or promissory notes or a co nsignor,
6861	6725		shall comply with a request within fourte en (14) days after recei pt:
6862	6726		(1) in the case of a request for an accounting, by
6863	6727		authenticating signing and sending to the debtor an accounting; and
6864	6728		(2) in the case of a request regarding a list of collater al or
6865	6729		a request regarding a statement of account, by authenticating
6866	6730		signing and sending to the debtor an appr oval or correction.
6867	6731		(c) A secured party that c laims a security interest in all of a
6868	6732		particular type of collateral owned by the debtor may comply w ith a
6869	6733		request regarding a list of collateral by se nding to the debtor an
6870	6734		authenticated a signed record including a sta tement to that effect
6871	6735		within fourteen (14) days after receipt.
6872	6736		(d) A person that receives a request regarding a list of
6873	6737		collateral, claims no interest in the collateral when it receives
6874	6738		the request, and claimed an interest in the collateral at an earlier
6875	6739		time shall comply with the request wit hin fourteen (14) days after
6876	6740		receipt by sending to the debtor an authenticated a signed record:
6877	6741		(1) disclaiming any interest in the collateral; and
6878	6742
6879		-	HB2776 HFLR Page 135
6880		-	BOLD FACE denotes Committee Amendments. 1
	6743	+	Req. No. 6221 Page 135 1
6881	6744		2
6882	6745		3
6883	6746		4
6884	6747		5
6885	6748		6
6886	6749		7
6887	6750		8
6888	6751		9
6889	6752		10
6890	6753		11
6891	6754		12
6892	6755		13
6893	6756		14
6894	6757		15
6895	6758		16
6896	6759		17
6897	6760		18
6898	6761		19
6899	6762		20
6900	6763		21
6901	6764		22
6902	6765		23
6903	6766		24
6904	6767
6905	6768		(2) if known to the reci pient, providing the name and mailing
6906	6769		address of any assignee of or successor to t he recipient's interest
6907	6770		in the collateral.
6908	6771		(e) A person that receives a request for an accounting o r a
6909	6772		request regarding a statement of account, clai ms no interest in the
6910	6773		obligations when it receives the request, and claimed a n interest in
6911	6774		the obligations at an earlier time shall comply with the request
6912	6775		within fourteen (14) days after receipt by sending to the debtor an
6913	6776		authenticated a signed record:
6914	6777		(1) disclaiming any inte rest in the obligations; and
6915	6778		(2) if known to the recipi ent, providing the name an d mailing
6916	6779		address of any assignee of or successor to the recipient's interest
6917	6780		in the obligations.
6918	6781		(f) A debtor is entitled without charge to one resp onse to a
6919	6782		request under this section during any six -month period. The secured
6920	6783		party may require payment o f a charge not exceeding Twenty-five
6921	6784		Dollars ($25.00) for each additional response.
6922	6785		SECTION 54. AMENDATORY 12A O.S. 2021, Section 1 -9-301,
6923	6786		is amended to read as follows:
6924	6787		Section 1-9-301.
6925	6788		LAW GOVERNING PERFECTION AND
6926	6789		PRIORITY OF SECURITY INTERESTS
6927	6790		Except as otherwise provided in Sections 1-9-303 through 1-9-306
6928	6791		1-9-306B of this title, the following rules determine the law
6929	6792
6930		-	HB2776 HFLR Page 136
6931		-	BOLD FACE denotes Committee Amendments. 1
	6793	+	Req. No. 6221 Page 136 1
6932	6794		2
6933	6795		3
6934	6796		4
6935	6797		5
6936	6798		6
6937	6799		7
6938	6800		8
6939	6801		9
6940	6802		10
6941	6803		11
6942	6804		12
6943	6805		13
6944	6806		14
6945	6807		15
6946	6808		16
6947	6809		17
6948	6810		18
6949	6811		19
6950	6812		20
6951	6813		21
6952	6814		22
6953	6815		23
6954	6816		24
6955	6817
6956	6818		governing perfection, the effect of perfection or nonperfection, and
6957	6819		the priority of a security interest in collateral:
6958	6820		(1) Except as otherwise provided in this section, while a
6959	6821		debtor is located in a juris diction, the local law of that
6960	6822		jurisdiction governs perfection, the effect of perfection or
6961	6823		nonperfection, and the priority of a securit y interest in
6962	6824		collateral.
6963	6825		(2) While collateral is located in a jurisdiction, the local
6964	6826		law of that jurisdiction governs perfection, the effect of
6965	6827		perfection or nonperfec tion, and the priority of a possessory
6966	6828		security interest in that collateral.
6967	6829		(3) Except as otherwise provided in paragraph (4) of this
6968	6830		section, while tangible negotiable tangible documents, goods,
6969	6831		instruments, or tangible money, or tangible chattel paper is located
6970	6832		in a jurisdiction, the local law of that jurisdiction governs:
6971	6833		(A) perfection of a security interest in the goods by
6972	6834		filing a fixture filing;
6973	6835		(B) perfection of a security interest in timber to be cut;
6974	6836		and
6975	6837		(C) the effect of perfection or nonperfection and the
6976	6838		priority of a nonpossessory security interest in the
6977	6839		collateral.
6978	6840		(4) The local law of the jurisdiction in which the wellhead or
6979	6841		minehead is located governs perfection, the effect of perfectio n or
6980	6842
6981		-	HB2776 HFLR Page 137
6982		-	BOLD FACE denotes Committee Amendments. 1
	6843	+	Req. No. 6221 Page 137 1
6983	6844		2
6984	6845		3
6985	6846		4
6986	6847		5
6987	6848		6
6988	6849		7
6989	6850		8
6990	6851		9
6991	6852		10
6992	6853		11
6993	6854		12
6994	6855		13
6995	6856		14
6996	6857		15
6997	6858		16
6998	6859		17
6999	6860		18
7000	6861		19
7001	6862		20
7002	6863		21
7003	6864		22
7004	6865		23
7005	6866		24
7006	6867
7007	6868		nonperfection, and the priority of a security interest in as -
7008	6869		extracted collateral.
7009	6870		SECTION 55. AMENDATORY 12A O.S. 2021, Section 1-9-304,
7010	6871		is amended to read as follows:
7011	6872		Section 1-9-304.
7012	6873		LAW GOVERNING PERFECTION AND PRIORITY OF
7013	6874		SECURITY INTERESTS IN DEPOSIT ACCOUNTS
7014	6875		(a) The local law of a bank's jurisdiction governs perfection,
7015	6876		the effect of perfection or nonperfection, and the priority of a
7016	6877		security interest in a deposit account maintained with that bank
7017	6878		even if the transaction do es not bear any relation to the bank's
7018	6879		jurisdiction.
7019	6880		(b) The following rules determine a bank 's jurisdiction for
7020	6881		purposes of this part:
7021	6882		(1) If an agreement between the bank and its customer governing
7022	6883		the deposit account expressly provides that a particul ar
7023	6884		jurisdiction is the bank's jurisdiction for purposes of this part,
7024	6885		this article, or the Uniform Commercial Code, that jurisdictio n is
7025	6886		the bank's jurisdiction.
7026	6887		(2) If paragraph (1) of this subsection does not apply and an
7027	6888		agreement between the bank and its customer governing the deposit
7028	6889		account expressly provides that the agreement is governed by the law
7029	6890		of a particular jurisdiction , that jurisdiction is the bank's
7030	6891		jurisdiction.
7031	6892
7032		-	HB2776 HFLR Page 138
7033		-	BOLD FACE denotes Committee Amendments. 1
	6893	+	Req. No. 6221 Page 138 1
7034	6894		2
7035	6895		3
7036	6896		4
7037	6897		5
7038	6898		6
7039	6899		7
7040	6900		8
7041	6901		9
7042	6902		10
7043	6903		11
7044	6904		12
7045	6905		13
7046	6906		14
7047	6907		15
7048	6908		16
7049	6909		17
7050	6910		18
7051	6911		19
7052	6912		20
7053	6913		21
7054	6914		22
7055	6915		23
7056	6916		24
7057	6917
7058	6918		(3) If neither paragraph (1) nor paragraph (2) of this
7059	6919		subsection applies a nd an agreement between the bank and its
7060	6920		customer governing the deposit account expressly provides that the
7061	6921		deposit account is maint ained at an office in a particular
7062	6922		jurisdiction, that jurisdiction is the bank's jurisdiction.
7063	6923		(4) If none of the preceding paragraphs of this subsection
7064	6924		applies, the bank's jurisdiction is the jurisdiction in which the
7065	6925		office identified in an account sta tement as the office serving the
7066	6926		customer's account is located.
7067	6927		(5) If none of the preceding paragraphs applies, the bank 's
7068	6928		jurisdiction is the jurisdiction in which the chief executive office
7069	6929		of the bank is located.
7070	6930		SECTION 56. AMENDATORY 12A O.S. 2021, Section 1-9-305,
7071	6931		is amended to read as follows:
7072	6932		Section 1-9-305.
7073	6933		LAW GOVERNING PERFECTION AND PRIOR ITY
7074	6934		OF SECURITY INTERESTS IN INVESTMENT PROPERTY
7075	6935		(a) Except as otherwise provided in subsection (c) of this
7076	6936		section, the following rules apply:
7077	6937		(1) While a security certificate is located in a jurisdiction,
7078	6938		the local law of that jurisdiction governs perf ection, the effect of
7079	6939		perfection or nonperfection, an d the priority of a security interest
7080	6940		in the certificated security re presented thereby.
7081	6941
7082		-	HB2776 HFLR Page 139
7083		-	BOLD FACE denotes Committee Amendments. 1
	6942	+	Req. No. 6221 Page 139 1
7084	6943		2
7085	6944		3
7086	6945		4
7087	6946		5
7088	6947		6
7089	6948		7
7090	6949		8
7091	6950		9
7092	6951		10
7093	6952		11
7094	6953		12
7095	6954		13
7096	6955		14
7097	6956		15
7098	6957		16
7099	6958		17
7100	6959		18
7101	6960		19
7102	6961		20
7103	6962		21
7104	6963		22
7105	6964		23
7106	6965		24
7107	6966
7108	6967		(2) The local law of the issuer's jurisdiction as specified in
7109	6968		subsection (d) of Section 8 -110 of this title gover ns perfection,
7110	6969		the effect of perfection or nonperfect ion, and the priority of a
7111	6970		security interest in an uncertificated sec urity.
7112	6971		(3) The local law of the s ecurities intermediary's jurisdiction
7113	6972		as specified in subsection (e) of Section 8 -110 of this title
7114	6973		governs perfection, the effect of perfection or nonpe rfection, and
7115	6974		the priority of a security interest in a security entit lement or
7116	6975		securities account.
7117	6976		(4) The local law of the commodity intermediary's jurisdiction
7118	6977		governs perfection, the effect of perfec tion or nonperfection, and
7119	6978		the priority of a security interest in a commodity contract or
7120	6979		commodity account.
7121	6980		(5) Paragraphs (2), (3 ), and (4) of this subsection apply even
7122	6981		if the transaction does not bear any relation to the jurisdiction.
7123	6982		(b) The following rules determine a commodity intermediary's
7124	6983		jurisdiction for purposes of this part:
7125	6984		(1) If an agreement between the commodity int ermediary and
7126	6985		commodity customer governing the commodity account expressly
7127	6986		provides that a particular jurisdiction is the commodity
7128	6987		intermediary's jurisdiction for purposes of this part, this arti cle,
7129	6988		or this title, that jurisdiction is the commodity inter mediary's
7130	6989		jurisdiction.
7131	6990
7132		-	HB2776 HFLR Page 140
7133		-	BOLD FACE denotes Committee Amendments. 1
	6991	+	Req. No. 6221 Page 140 1
7134	6992		2
7135	6993		3
7136	6994		4
7137	6995		5
7138	6996		6
7139	6997		7
7140	6998		8
7141	6999		9
7142	7000		10
7143	7001		11
7144	7002		12
7145	7003		13
7146	7004		14
7147	7005		15
7148	7006		16
7149	7007		17
7150	7008		18
7151	7009		19
7152	7010		20
7153	7011		21
7154	7012		22
7155	7013		23
7156	7014		24
7157	7015
7158	7016		(2) If paragraph (1) of this subsection does not apply and an
7159	7017		agreement between the commodity in termediary and commodity customer
7160	7018		governing the commodity account expressly provides that the
7161	7019		agreement is governed by the law of a par ticular jurisdiction, th at
7162	7020		jurisdiction is the commodity intermediary's jurisdiction.
7163	7021		(3) If neither paragraph (1) nor p aragraph (2) of this
7164	7022		subsection applies and an agreement between the commod ity
7165	7023		intermediary and commodity customer governing the commod ity account
7166	7024		expressly provides that the commodity account is maintained at an
7167	7025		office in a particular jurisdiction, that j urisdiction is the
7168	7026		commodity intermediary's jurisdiction.
7169	7027		(4) If none of the preceding paragraphs of this section
7170	7028		applies, the commodi ty intermediary's jurisdiction is the
7171	7029		jurisdiction in which the office identified in an account statement
7172	7030		as the office serving the commodity customer's account is located.
7173	7031		(5) If none of the pre ceding paragraphs of this section
7174	7032		applies, the commodity int ermediary's jurisdiction is the
7175	7033		jurisdiction in which the chief executive office of the commodity
7176	7034		intermediary is located .
7177	7035		(c) The local law of the jurisdiction in which the debtor is
7178	7036		located governs:
7179	7037		(1) perfection of a security interest in investment p roperty by
7180	7038		filing;
7181	7039
7182		-	HB2776 HFLR Page 141
7183		-	BOLD FACE denotes Committee Amendments. 1
	7040	+	Req. No. 6221 Page 141 1
7184	7041		2
7185	7042		3
7186	7043		4
7187	7044		5
7188	7045		6
7189	7046		7
7190	7047		8
7191	7048		9
7192	7049		10
7193	7050		11
7194	7051		12
7195	7052		13
7196	7053		14
7197	7054		15
7198	7055		16
7199	7056		17
7200	7057		18
7201	7058		19
7202	7059		20
7203	7060		21
7204	7061		22
7205	7062		23
7206	7063		24
7207	7064
7208	7065		(2) automatic perfection of a security interest in investment
7209	7066		property created by a broker or securit ies intermediary; and
7210	7067		(3) automatic perfection of a security interest in a commodity
7211	7068		contract or commodity account created by a commod ity intermediary.
7212	7069		SECTION 57. NEW LAW A new section of law to be codified
7213	7070		in the Oklahoma Statutes as Section 1-9-306A of Title 12A, unless
7214	7071		there is created a duplication in numbering, reads as follows:
7215	7072		LAW GOVERNING PERFECTION AND PR IORITY OF SECURITY INTERESTS IN
7216	7073		CHATTEL PAPER
7217	7074		(a) Except as provided in sub section (d) of this section, if
7218	7075		chattel paper is evidenced only b y an authoritative electronic co py
7219	7076		of the chattel paper or is evidenced by an authoritative electronic
7220	7077		copy and an authoritative tangible copy, the local l aw of the
7221	7078		chattel paper's jurisdiction governs perfection, the effect of
7222	7079		perfection or nonperfection, and the priority of a security interest
7223	7080		in the chattel paper, even if the transaction does not bear any
7224	7081		relation to the chattel paper's jurisdiction.
7225	7082		(b) The following rules determine the c hattel paper's
7226	7083		jurisdiction under this section:
7227	7084		(1) If the authoritative electronic copy of the r ecord
7228	7085		evidencing chattel pa per, or a record attached to or logically
7229	7086		associated with the electronic copy and readily avail able for
7230	7087		review, expressly provides that a particular jurisdiction is the
7231	7088		chattel paper's jurisdiction for purposes of this part, this
7232	7089
7233		-	HB2776 HFLR Page 142
7234		-	BOLD FACE denotes Committee Amendments. 1
	7090	+	Req. No. 6221 Page 142 1
7235	7091		2
7236	7092		3
7237	7093		4
7238	7094		5
7239	7095		6
7240	7096		7
7241	7097		8
7242	7098		9
7243	7099		10
7244	7100		11
7245	7101		12
7246	7102		13
7247	7103		14
7248	7104		15
7249	7105		16
7250	7106		17
7251	7107		18
7252	7108		19
7253	7109		20
7254	7110		21
7255	7111		22
7256	7112		23
7257	7113		24
7258	7114
7259	7115		article, or the Uniform Commercial Code, that jurisdiction is the
7260	7116		chattel paper's jurisdiction.
7261	7117		(2) If paragraph (1) of this subsection does not apply and t he
7262	7118		rules of the system in which the authoritative electronic copy is
7263	7119		recorded are readily availabl e for review and expressly provide that
7264	7120		a particular jurisdiction is the chattel paper's jurisdiction for
7265	7121		purposes of this part, this article, or the Uniform Commercial Code,
7266	7122		that jurisdiction is the chattel paper 's jurisdiction.
7267	7123		(3) If paragraphs (1) and (2) of this subsection do not apply
7268	7124		and the authoritative electronic copy, or a rec ord attached to or
7269	7125		logically associated with the electronic copy and readi ly available
7270	7126		for review, expressly provides that the chattel pape r is governed by
7271	7127		the law of a particular jurisdiction, that jurisdiction is the
7272	7128		chattel paper's jurisdiction.
7273	7129		(4) If paragraphs (1), (2), and (3) of this subsection do not
7274	7130		apply and the rules of the system in which the authoritative
7275	7131		electronic copy is rec orded are readily available for r eview and
7276	7132		expressly provide that the chattel paper or the system is governed
7277	7133		by the law of a particula r jurisdiction, that jurisdiction is the
7278	7134		chattel paper's jurisdiction.
7279	7135		(5) If paragraphs (1) through (4) of this subsection do not
7280	7136		apply, the chattel pap er's jurisdiction is the ju risdiction in which
7281	7137		the debtor is located.
7282	7138
7283		-	HB2776 HFLR Page 143
7284		-	BOLD FACE denotes Committee Amendments. 1
	7139	+	Req. No. 6221 Page 143 1
7285	7140		2
7286	7141		3
7287	7142		4
7288	7143		5
7289	7144		6
7290	7145		7
7291	7146		8
7292	7147		9
7293	7148		10
7294	7149		11
7295	7150		12
7296	7151		13
7297	7152		14
7298	7153		15
7299	7154		16
7300	7155		17
7301	7156		18
7302	7157		19
7303	7158		20
7304	7159		21
7305	7160		22
7306	7161		23
7307	7162		24
7308	7163
7309	7164		(c) If an authoritative tangible copy of a record e vidences
7310	7165		chattel paper and the chatt el paper is not evidenced by an
7311	7166		authoritative electronic copy, wh ile the authoritative tangible c opy
7312	7167		of the record evidencin g chattel paper is located in a jurisdiction,
7313	7168		the local law of that jurisdiction governs:
7314	7169		(1) perfection of a security interest in the chattel paper by
7315	7170		possession under Section 9-314A of this title; and
7316	7171		(2) the effect of perfec tion or nonperfection and t he priority
7317	7172		of a security interest in the chatt el paper.
7318	7173		(d) The local law of the jurisdiction in which the debtor is
7319	7174		located governs perfection of a security interest in chattel paper
7320	7175		by filing.
7321	7176		SECTION 58. NEW LAW A new section o f law to be codified
7322	7177		in the Oklahoma Statutes as Section 1-9-306B of Title 12A, unless
7323	7178		there is created a duplication in numbering, r eads as follows:
7324	7179		LAW GOVERNING PERFECTION AND PRIORITY OF SECURIT Y INTERESTS IN
7325	7180		CONTROLLABLE ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, AND
7326	7181		CONTROLLABLE PAYMENT INTANGIBLES
7327	7182		(a) Except as provided in subsection (b) of this section, the
7328	7183		local law of the controllable electronic re cord's jurisdiction
7329	7184		specified in subsections (c) and (d) of Section 12-107 of this title
7330	7185		governs perfection, the effect of perfection or nonperfection, and
7331	7186		the priority of a security interest in a controllable electronic
7332	7187		record and a security interest in a controllable account or
7333	7188
7334		-	HB2776 HFLR Page 144
7335		-	BOLD FACE denotes Committee Amendments. 1
	7189	+	Req. No. 6221 Page 144 1
7336	7190		2
7337	7191		3
7338	7192		4
7339	7193		5
7340	7194		6
7341	7195		7
7342	7196		8
7343	7197		9
7344	7198		10
7345	7199		11
7346	7200		12
7347	7201		13
7348	7202		14
7349	7203		15
7350	7204		16
7351	7205		17
7352	7206		18
7353	7207		19
7354	7208		20
7355	7209		21
7356	7210		22
7357	7211		23
7358	7212		24
7359	7213
7360	7214		controllable payment intangible evidenced by the controllable
7361	7215		electronic record.
7362	7216		(b) The local law of the jurisdiction in which the debtor is
7363	7217		located governs:
7364	7218		(1) perfection of a security interest in a controllable
7365	7219		account, controllable electronic record, or controllable payment
7366	7220		intangible by filing; and
7367	7221		(2) automatic perfection of a security interest in a
7368	7222		controllable payment intangible created by a sale of the
7369	7223		controllable payment intangible.
7370	7224		SECTION 59. AMENDATORY 12A O.S. 2021, Section 1 -9-310,
7371	7225		is amended to read as follows:
7372	7226		Section 1-9-310.
7373	7227		WHEN FILING REQUIRED TO PERFECT SECURITY INTEREST OR
7374	7228		AGRICULTURAL LIEN; SECURITY INTERESTS AND AGRICULTU RAL
7375	7229		LIENS TO WHICH FILING PROVIS IONS DO NOT APPLY
7376	7230		(a) Except as otherwise provided in subsection (b) of this
7377	7231		section and Section 1 -9-312 of this title, a financing statement
7378	7232		must be filed to perfect all security interests and agricultural
7379	7233		liens.
7380	7234		(b) The filing of a financing statement is not necessary to
7381	7235		perfect a security interest:
7382	7236		(1) that is perfect ed under subsection (d), (e), (f), or (g) of
7383	7237		Section 1-9-308 of this title;
7384	7238
7385		-	HB2776 HFLR Page 145
7386		-	BOLD FACE denotes Committee Amendments. 1
	7239	+	Req. No. 6221 Page 145 1
7387	7240		2
7388	7241		3
7389	7242		4
7390	7243		5
7391	7244		6
7392	7245		7
7393	7246		8
7394	7247		9
7395	7248		10
7396	7249		11
7397	7250		12
7398	7251		13
7399	7252		14
7400	7253		15
7401	7254		16
7402	7255		17
7403	7256		18
7404	7257		19
7405	7258		20
7406	7259		21
7407	7260		22
7408	7261		23
7409	7262		24
7410	7263
7411	7264		(2) that is perfected under Section 1-9-309 of this title when
7412	7265		it attaches;
7413	7266		(3) in property subject to a sta tute, regulation, or treaty
7414	7267		described in subsection (a) of Section 1 -9-311 of this title;
7415	7268		(4) in goods in possession of a bailee which is perfected under
7416	7269		paragraph (1) or (2) of subsection (d) of Section 1-9-312 of this
7417	7270		title;
7418	7271		(5) in certificated securit ies, documents, goods, or
7419	7272		instruments which is perfected without filin g, control, or
7420	7273		possession under subsection (e), (f), or (g) of Section 1 -9-312 of
7421	7274		this title;
7422	7275		(6) in collateral in the secured party's possession under
7423	7276		Section 1-9-313 of this title;
7424	7277		(7) in a certificated securi ty which is perfected by delivery
7425	7278		of the security certificate to the secured party under Section 1 -9-
7426	7279		313 of this title;
7427	7280		(8) in controllable accounts, controllable electronic records,
7428	7281		controllable payment intangibles, deposit accounts, electronic
7429	7282		chattel paper documents, investment property, or letter-of-credit
7430	7283		rights which is perfected by control under Section 1 -9-314 of this
7431	7284		title;
7432	7285		(9) in chattel paper which is perfected by possession and
7433	7286		control under Section 1-9-314A of this title;
7434	7287
7435		-	HB2776 HFLR Page 146
7436		-	BOLD FACE denotes Committee Amendments. 1
	7288	+	Req. No. 6221 Page 146 1
7437	7289		2
7438	7290		3
7439	7291		4
7440	7292		5
7441	7293		6
7442	7294		7
7443	7295		8
7444	7296		9
7445	7297		10
7446	7298		11
7447	7299		12
7448	7300		13
7449	7301		14
7450	7302		15
7451	7303		16
7452	7304		17
7453	7305		18
7454	7306		19
7455	7307		20
7456	7308		21
7457	7309		22
7458	7310		23
7459	7311		24
7460	7312
7461	7313		(10) in proceeds which is per fected under Section 1 -9-315 of
7462	7314		this title; or
7463	7315		(10) (11) that is perfected under Section 1 -9-316 of this
7464	7316		title.
7465	7317		(c) If a secured party assigns a perfected security interest or
7466	7318		agricultural lien, a filing under this article is n ot required to
7467	7319		continue the perfected status of the security interest against
7468	7320		creditors of and transferees from the original debtor.
7469	7321		SECTION 60. AMENDATORY 12A O.S. 2021, Section 1 -9-312,
7470	7322		is amended to read as follows:
7471	7323		Section 1-9-312.
7472	7324		PERFECTION OF SECURITY INTERESTS IN CHATTEL PAPER, CONTROLLABLE
7473	7325		ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, CONTROLLABLE PAYMENT
7474	7326		INTANGIBLES, DEPOSIT ACCOUNTS, DOCUMENTS, GOODS COVERED BY
7475	7327		DOCUMENTS, INSTRUMENTS, INVESTMENT PROPERTY, LETTER-OF-CREDIT
7476	7328		RIGHTS, AND MONEY; PERFECTION BY PERMISSIVE FILING; TEMPORARY
7477	7329		PERFECTION WITHOUT FILING OR TRANSFER OF POSSESSION
7478	7330		(a) A security interest in cha ttel paper, negotiable documents
7479	7331		controllable accounts, contr ollable electronic records, controllable
7480	7332		payment intangibles, instruments, or investment property, or
7481	7333		negotiable documents may be perfected by fili ng.
7482	7334		(b) Except as otherwise provided in subsect ions (c) and (d) of
7483	7335		Section 1-9-315 of this title for proceed s:
7484	7336
7485		-	HB2776 HFLR Page 147
7486		-	BOLD FACE denotes Committee Amendments. 1
	7337	+	Req. No. 6221 Page 147 1
7487	7338		2
7488	7339		3
7489	7340		4
7490	7341		5
7491	7342		6
7492	7343		7
7493	7344		8
7494	7345		9
7495	7346		10
7496	7347		11
7497	7348		12
7498	7349		13
7499	7350		14
7500	7351		15
7501	7352		16
7502	7353		17
7503	7354		18
7504	7355		19
7505	7356		20
7506	7357		21
7507	7358		22
7508	7359		23
7509	7360		24
7510	7361
7511	7362		(1) a security interest in a deposit account may be perfected
7512	7363		only by control under Section 1-9-314 of this title;
7513	7364		(2) and except as otherwise provided in subsection (d) of
7514	7365		Section 1-9-308 of this title, a security interest in a letter-of-
7515	7366		credit right may be perfected only by control under Section 1 -9-314
7516	7367		of this title; and
7517	7368		(3) a security interest in tangible money may be perfected only
7518	7369		by the secured party's taking possession under Section 1 -9-313 of
7519	7370		this title; and
7520	7371		(4) a security interest in electronic money may be perfected
7521	7372		only by control under Section 1-9-314 of this title.
7522	7373		(c) While goods are in the possession of a bailee that has
7523	7374		issued a negotiable document c overing the goods:
7524	7375		(1) a security interest in the goods may be perfected by
7525	7376		perfecting a security interest in the document; and
7526	7377		(2) a security interest perfected in the doc ument has priority
7527	7378		over any security interest that becom es perfected in the goods by
7528	7379		another method during that time .
7529	7380		(d) While goods are in the possession of a bailee that has
7530	7381		issued a nonnegotiable document covering the goods, a security
7531	7382		interest in the goods may be perfected by:
7532	7383		(1) issuance of a document in the name of the secured party;
7533	7384		(2) the bailee's receipt of notification of the secured party's
7534	7385		interest; or
7535	7386
7536		-	HB2776 HFLR Page 148
7537		-	BOLD FACE denotes Committee Amendments. 1
	7387	+	Req. No. 6221 Page 148 1
7538	7388		2
7539	7389		3
7540	7390		4
7541	7391		5
7542	7392		6
7543	7393		7
7544	7394		8
7545	7395		9
7546	7396		10
7547	7397		11
7548	7398		12
7549	7399		13
7550	7400		14
7551	7401		15
7552	7402		16
7553	7403		17
7554	7404		18
7555	7405		19
7556	7406		20
7557	7407		21
7558	7408		22
7559	7409		23
7560	7410		24
7561	7411
7562	7412		(3) filing as to the goods.
7563	7413		(e) A security interest in certificated securities, negoti able
7564	7414		documents, or instruments is perfected without fili ng or the taking
7565	7415		of possession or control for a period of twenty (20) days from the
7566	7416		time it attaches to the extent that it arises for new value given
7567	7417		under an authenticated a signed security agreement.
7568	7418		(f) A perfected security interest in a negotiable doc ument or
7569	7419		goods in possession of a bailee, other than one tha t has issued a
7570	7420		negotiable document for t he goods, remains perf ected for twenty (20)
7571	7421		days without filing if the secured party makes available to the
7572	7422		debtor the goods or documents representing the g oods for the purpose
7573	7423		of:
7574	7424		(1) ultimate sale or exchange; or
7575	7425		(2) loading, unloading, storing, shippi ng, transshipping,
7576	7426		manufacturing, processing, or otherwise dealing with them in a
7577	7427		manner preliminary to their sale or exchange.
7578	7428		(g) A perfected security in terest in a certificated s ecurity or
7579	7429		instrument remains perf ected for twenty (20) days without filin g if
7580	7430		the secured party delivers the security certificate or instrument to
7581	7431		the debtor for the purpose of:
7582	7432		(1) ultimate sale or exchange; or
7583	7433		(2) presentation, collection, enforcement , renewal, or
7584	7434		registration of tran sfer.
7585	7435
7586		-	HB2776 HFLR Page 149
7587		-	BOLD FACE denotes Committee Amendments. 1
	7436	+	Req. No. 6221 Page 149 1
7588	7437		2
7589	7438		3
7590	7439		4
7591	7440		5
7592	7441		6
7593	7442		7
7594	7443		8
7595	7444		9
7596	7445		10
7597	7446		11
7598	7447		12
7599	7448		13
7600	7449		14
7601	7450		15
7602	7451		16
7603	7452		17
7604	7453		18
7605	7454		19
7606	7455		20
7607	7456		21
7608	7457		22
7609	7458		23
7610	7459		24
7611	7460
7612	7461		(h) After the twenty-day period specified in subsection (e),
7613	7462		(f), or (g) of this section expires, perfection depends upon
7614	7463		compliance with this article.
7615	7464		SECTION 61. AMENDATORY 12A O.S. 202 1, Section 1-9-313,
7616	7465		is amended to read as follows:
7617	7466		Section 1-9-313.
7618	7467		WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY
7619	7468		PERFECTS SECURITY INTEREST WITHOUT FILING
7620	7469		(a) Except as otherwise provided in subse ction (b) of this
7621	7470		section, a secured party may perfect a security interest in tangible
7622	7471		negotiable documents, goods, instruments, negotiable tangible
7623	7472		documents, or tangible money, or tangible chattel paper by taking
7624	7473		possession of the collateral. A secured party may perfect a
7625	7474		security interest in certificated s ecurities by taking delivery of
7626	7475		the certificated securi ties under Section 8-301 of this title.
7627	7476		(b) With respect to goods covered by a certificate of title
7628	7477		issued by this state, a secured party may per fect a security
7629	7478		interest in the goods by taking possess ion of the goods only in the
7630	7479		circumstances described in subsection (d) of Section 1-9-316 of this
7631	7480		title.
7632	7481		(c) With respect to collateral other than certificated
7633	7482		securities and goods covered by a document, a secured party takes
7634	7483		possession of collateral in t he possession of a person other than
7635	7484
7636		-	HB2776 HFLR Page 150
7637		-	BOLD FACE denotes Committee Amendments. 1
	7485	+	Req. No. 6221 Page 150 1
7638	7486		2
7639	7487		3
7640	7488		4
7641	7489		5
7642	7490		6
7643	7491		7
7644	7492		8
7645	7493		9
7646	7494		10
7647	7495		11
7648	7496		12
7649	7497		13
7650	7498		14
7651	7499		15
7652	7500		16
7653	7501		17
7654	7502		18
7655	7503		19
7656	7504		20
7657	7505		21
7658	7506		22
7659	7507		23
7660	7508		24
7661	7509
7662	7510		the debtor, the secured party, or a lessee of the collateral fr om
7663	7511		the debtor in the ordinary course of the debtor's business, when:
7664	7512		(1) the person in possession authenticates signs a record
7665	7513		acknowledging that it holds possession of the collateral for the
7666	7514		secured party's benefit; or
7667	7515		(2) the person takes possession of the collateral after having
7668	7516		authenticated signed a record acknowledging that it will hold
7669	7517		possession of collateral for the secured party 's benefit.
7670	7518		(d) If perfection of a security interest depends upon
7671	7519		possession of the collateral by a secured party, per fection occurs
7672	7520		no not earlier than the time the secured party takes possessio n and
7673	7521		continues only while the secured party retains possession.
7674	7522		(e) A security interest in a certif icated security in
7675	7523		registered form is perfected by delivery when delivery of t he
7676	7524		certificated security occurs under Section 8-301 of this title and
7677	7525		remains perfected by delivery u ntil the debtor obtains possession of
7678	7526		the security certificate.
7679	7527		(f) A person in possession of collateral is n ot required to
7680	7528		acknowledge that it holds poss ession for a secured party's benefit.
7681	7529		(g) If a person acknowledges that it h olds possession for the
7682	7530		secured party's benefit:
7683	7531		(1) the acknowledgment is eff ective under subsectio n (c) of
7684	7532		this section or subsecti on (a) of Section 8-301 of this title, even
7685	7533		if the acknowledgment violates the rights of a debtor; and
7686	7534
7687		-	HB2776 HFLR Page 151
7688		-	BOLD FACE denotes Committee Amendments. 1
	7535	+	Req. No. 6221 Page 151 1
7689	7536		2
7690	7537		3
7691	7538		4
7692	7539		5
7693	7540		6
7694	7541		7
7695	7542		8
7696	7543		9
7697	7544		10
7698	7545		11
7699	7546		12
7700	7547		13
7701	7548		14
7702	7549		15
7703	7550		16
7704	7551		17
7705	7552		18
7706	7553		19
7707	7554		20
7708	7555		21
7709	7556		22
7710	7557		23
7711	7558		24
7712	7559
7713	7560		(2) unless the person otherwise agrees or law other than this
7714	7561		article otherwise provides, the per son does not owe any d uty to the
7715	7562		secured party and is n ot required to confirm the acknowledgment to
7716	7563		another person.
7717	7564		(h) A secured party having possession of collateral does not
7718	7565		relinquish possession b y delivering the collateral to a person other
7719	7566		than the debtor or a lessee of the collateral from the debtor in the
7720	7567		ordinary course of the debtor's business if the person was
7721	7568		instructed before the delivery or is instructed contempora neously
7722	7569		with the delivery:
7723	7570		(1) to hold possession of the collateral for the se cured
7724	7571		party's benefit; or
7725	7572		(2) to redeliver the collate ral to the secured party.
7726	7573		(i) A secured party does not relinquish possession, even if a
7727	7574		delivery under subsection (h) of this section violates the rights of
7728	7575		a debtor. A person to which collateral is delivered under
7729	7576		subsection (h) of this section does not owe any duty to the secured
7730	7577		party and is not required to confirm the delivery to another person
7731	7578		unless the person otherwi se agrees or law other t han this article
7732	7579		otherwise provides.
7733	7580		SECTION 62. AMENDATORY 12A O.S. 2021, Section 1 -9-314,
7734	7581		is amended to read as follows:
7735	7582		Section 1-9-314.
7736	7583		PERFECTION BY CONTROL
7737	7584
7738		-	HB2776 HFLR Page 152
7739		-	BOLD FACE denotes Committee Amendments. 1
	7585	+	Req. No. 6221 Page 152 1
7740	7586		2
7741	7587		3
7742	7588		4
7743	7589		5
7744	7590		6
7745	7591		7
7746	7592		8
7747	7593		9
7748	7594		10
7749	7595		11
7750	7596		12
7751	7597		13
7752	7598		14
7753	7599		15
7754	7600		16
7755	7601		17
7756	7602		18
7757	7603		19
7758	7604		20
7759	7605		21
7760	7606		22
7761	7607		23
7762	7608		24
7763	7609
7764	7610		(a) A security interest in investment property, deposit
7765	7611		accounts, letter-of-credit rights, electronic chattel paper , or
7766	7612		electronic documents controllable accounts, controllable e lectronic
7767	7613		records, controllable payment intangibles, deposit accounts,
7768	7614		electronic documents, electronic money, investment property, or
7769	7615		letter-of-credit rights may be perfected by control of the
7770	7616		collateral under Section 7-106, 1-9-104, 1-9-105 1-9-105A, 1-9-106,
7771	7617		or 1-9-107, or 1-9-107A of this title.
7772	7618		(b) A security interest in deposit accounts, electronic chattel
7773	7619		paper, letter-of-credit rights, or electronic documents controllable
7774	7620		accounts, controllable electron ic records, controllable payment
7775	7621		intangibles, deposit accounts, electronic documents, elect ronic
7776	7622		money, or letter-of-credit rights is perfected by control under
7777	7623		Section 1-9-104, 1-9-105 1-9-105A, or 1-9-107, or 1-9-107A of this
7778	7624		title when not earlier than the time the secured party obtains
7779	7625		control and remains perfected by control only while the secured
7780	7626		party retains control.
7781	7627		(c) A security interest in investment proper ty is perfected by
7782	7628		control under Section 1-9-106 of this title from not earlier than
7783	7629		the time the secured party obtains control and rem ains perfected by
7784	7630		control until:
7785	7631		(1) the secured party does not have control; and
7786	7632		(2) one of the following occurs:
7787	7633
7788		-	HB2776 HFLR Page 153
7789		-	BOLD FACE denotes Committee Amendments. 1
	7634	+	Req. No. 6221 Page 153 1
7790	7635		2
7791	7636		3
7792	7637		4
7793	7638		5
7794	7639		6
7795	7640		7
7796	7641		8
7797	7642		9
7798	7643		10
7799	7644		11
7800	7645		12
7801	7646		13
7802	7647		14
7803	7648		15
7804	7649		16
7805	7650		17
7806	7651		18
7807	7652		19
7808	7653		20
7809	7654		21
7810	7655		22
7811	7656		23
7812	7657		24
7813	7658
7814	7659		(A) if the collateral is a ce rtificated security, the
7815	7660		debtor has or acquires possession of th e security
7816	7661		certificate;
7817	7662		(B) if the collateral is an uncertificated security, the
7818	7663		issuer has registered or registers the debtor as the
7819	7664		registered owner; or
7820	7665		(C) if the collateral is a security e ntitlement, the
7821	7666		debtor is or becomes the entitlement holder.
7822	7667		SECTION 63. NEW LAW A new section of law to be codified
7823	7668		in the Oklahoma Statutes as Section 1-9-314A of Title 12A, unless
7824	7669		there is created a duplication in numbering, reads as follows:
7825	7670		PERFECTION BY POSSESSION AND CONTROL OF CHATT EL PAPER
7826	7671		(a) A secured party may perfect a security interest in chattel
7827	7672		paper by taking possession of each authoritative tangible copy of
7828	7673		the record evidencing the chattel paper and obtaining control of
7829	7674		each authoritative electronic copy of the electronic record
7830	7675		evidencing the chattel paper.
7831	7676		(b) A security interest is perfected under subsection (a) of
7832	7677		this section not earlier than the time the secured party takes
7833	7678		possession and obtains control and remains perfected under
7834	7679		subsection (a) of this section only while the secured party retains
7835	7680		possession and control.
7836	7681
7837		-	HB2776 HFLR Page 154
7838		-	BOLD FACE denotes Committee Amendments. 1
	7682	+	Req. No. 6221 Page 154 1
7839	7683		2
7840	7684		3
7841	7685		4
7842	7686		5
7843	7687		6
7844	7688		7
7845	7689		8
7846	7690		9
7847	7691		10
7848	7692		11
7849	7693		12
7850	7694		13
7851	7695		14
7852	7696		15
7853	7697		16
7854	7698		17
7855	7699		18
7856	7700		19
7857	7701		20
7858	7702		21
7859	7703		22
7860	7704		23
7861	7705		24
7862	7706
7863	7707		(c) Subsections (c) and (f) through (i) of Section 1-9-313 of
7864	7708		this title apply to perfection by possession of an authoritative
7865	7709		tangible copy of a record evidencing chattel paper.
7866	7710		SECTION 64. AMENDATORY 12A O.S. 2021, Section 1 -9-316,
7867	7711		is amended to read as follows:
7868	7712		Section 1-9-316.
7869	7713		EFFECT OF CHANGE IN GOVERNING LAW
7870	7714		(a) A security interest pe rfected pursuant to the l aw of the
7871	7715		jurisdiction designated in paragraph (1) of Section 1 -9-301 or,
7872	7716		subsection (c) of Section 1 -9-305, subsection (d) of Section 1 -9-
7873	7717		306A, or subsection (b) of Section 1-9-306B of this title remains
7874	7718		perfected until the earlie st of:
7875	7719		(1) the time perfection would have ceased under the law of that
7876	7720		jurisdiction;
7877	7721		(2) the expiration of four (4) months after a change of the
7878	7722		debtor's location to another jurisdiction; or
7879	7723		(3) the expiration of one (1) year after a transfer of
7880	7724		collateral to a person that ther eby becomes a debtor and is located
7881	7725		in another jurisdiction.
7882	7726		(b) If a security interest described in subsection (a) of this
7883	7727		section becomes perfected under the law of the other jurisdiction
7884	7728		before the earliest time or event descri bed in that subsection, i t
7885	7729		remains perfected thereafter. If the security interest does not
7886	7730		become perfected under the law of the other jurisdiction before the
7887	7731
7888		-	HB2776 HFLR Page 155
7889		-	BOLD FACE denotes Committee Amendments. 1
	7732	+	Req. No. 6221 Page 155 1
7890	7733		2
7891	7734		3
7892	7735		4
7893	7736		5
7894	7737		6
7895	7738		7
7896	7739		8
7897	7740		9
7898	7741		10
7899	7742		11
7900	7743		12
7901	7744		13
7902	7745		14
7903	7746		15
7904	7747		16
7905	7748		17
7906	7749		18
7907	7750		19
7908	7751		20
7909	7752		21
7910	7753		22
7911	7754		23
7912	7755		24
7913	7756
7914	7757		earliest time or event, it becomes unperfected and is deemed never
7915	7758		to have been perfected as aga inst a purchaser of the c ollateral for
7916	7759		value.
7917	7760		(c) A possessory security interest in col lateral, other than
7918	7761		goods covered by a certificate of title and as -extracted collateral
7919	7762		consisting of goods, remains continuously perfected if:
7920	7763		(1) the collateral is l ocated in one jurisdictio n and subject
7921	7764		to a security interest perfected under the law of that jurisdiction;
7922	7765		(2) thereafter the collateral is brought into another
7923	7766		jurisdiction; and
7924	7767		(3) upon entry into the other jurisdiction, the security
7925	7768		interest is perfected under the law of the other jurisdiction.
7926	7769		(d) Except as otherwise provided in subse ction (e) of this
7927	7770		section, a security interest in goods covered by a certificate of
7928	7771		title which is perfected by any method under the law of another
7929	7772		jurisdiction when th e goods become covered by a certificate of title
7930	7773		from this state remains perfected until the security interest would
7931	7774		have become unperfected under the law of the other jurisdic tion had
7932	7775		the goods not become so covered.
7933	7776		(e) A security interest described in subsection (d) of this
7934	7777		section becomes unperfected as against a purchaser of the goods f or
7935	7778		value and is deemed never to have been perfected as against a
7936	7779		purchaser of the goods for value if the applicable requirements for
7937	7780
7938		-	HB2776 HFLR Page 156
7939		-	BOLD FACE denotes Committee Amendments. 1
	7781	+	Req. No. 6221 Page 156 1
7940	7782		2
7941	7783		3
7942	7784		4
7943	7785		5
7944	7786		6
7945	7787		7
7946	7788		8
7947	7789		9
7948	7790		10
7949	7791		11
7950	7792		12
7951	7793		13
7952	7794		14
7953	7795		15
7954	7796		16
7955	7797		17
7956	7798		18
7957	7799		19
7958	7800		20
7959	7801		21
7960	7802		22
7961	7803		23
7962	7804		24
7963	7805
7964	7806		perfection under subsection (b) of Section 1-9-311 or Section 1-9-
7965	7807		313 of this title are not satisfied before the earlier of :
7966	7808		(1) the time the security interest would have become
7967	7809		unperfected under the law of the other jurisdiction had the goods
7968	7810		not become covered by a certificate of title f rom this state; or
7969	7811		(2) the expiration of four (4) months after the goods had
7970	7812		become so covered.
7971	7813		(f) A security interest in chattel paper, controllable
7972	7814		accounts, controllable electronic records, controllable payment
7973	7815		intangibles, deposit accounts, letter -of-credit rights, or
7974	7816		investment property which is perfected under the law of the chattel
7975	7817		paper's jurisdiction, the controllable electronic record 's
7976	7818		jurisdiction, the bank's jurisdiction, the issuer's jurisdiction, a
7977	7819		nominated person's jurisdiction, the secu rities intermediary's
7978	7820		jurisdiction, or the commodity intermediary's jurisdiction, as
7979	7821		applicable, remains perfected until the earlier of:
7980	7822		(1) the time the security interest wou ld have become
7981	7823		unperfected under the law of that jurisdiction; or
7982	7824		(2) the expiration of four (4) months after a change of the
7983	7825		applicable jurisdiction to another jurisd iction.
7984	7826		(g) If a security interest described in subsection (f) of this
7985	7827		section becomes perfected under the law of the other jurisdiction
7986	7828		before the earlier of the time or the end of the period described in
7987	7829		that subsection, it remains perfected thereafter. If the security
7988	7830
7989		-	HB2776 HFLR Page 157
7990		-	BOLD FACE denotes Committee Amendments. 1
	7831	+	Req. No. 6221 Page 157 1
7991	7832		2
7992	7833		3
7993	7834		4
7994	7835		5
7995	7836		6
7996	7837		7
7997	7838		8
7998	7839		9
7999	7840		10
8000	7841		11
8001	7842		12
8002	7843		13
8003	7844		14
8004	7845		15
8005	7846		16
8006	7847		17
8007	7848		18
8008	7849		19
8009	7850		20
8010	7851		21
8011	7852		22
8012	7853		23
8013	7854		24
8014	7855
8015	7856		interest does not become perfected under the law of the other
8016	7857		jurisdiction before the earlier of that time or the end of that
8017	7858		period, it becomes unper fected and is deemed neve r to have been
8018	7859		perfected as against a purchaser of the collater al for value.
8019	7860		(h) The following rules apply to collateral to whic h a security
8020	7861		interest attaches within four (4) months after the debtor changes
8021	7862		its location to another jurisdiction:
8022	7863		(1) a financing statement filed before the change pursuant to
8023	7864		the law of the jurisdiction designated in subsection (1) of Section
8024	7865		1-9-301 of this title or subse ction (c) of 1-9-305 of this title is
8025	7866		effective to perfect a security interest i n the collateral if the
8026	7867		financing statement would have been effective to perfect a secur ity
8027	7868		interest in the collateral if the debtor had not changed its
8028	7869		location.
8029	7870		(2) if a security interest that is perfected by a financing
8030	7871		statement that is effective unde r paragraph (1) of this s ubsection
8031	7872		becomes perfected under the law of the other jurisdic tion before the
8032	7873		earlier of the time the financing statement would have become
8033	7874		ineffective under the law of the jurisdiction designated in
8034	7875		subsection (1) of Section 1 -9-301 of this title or subs ection (c) of
8035	7876		Section 1-9-305 of this title or the expiration o f the four-month
8036	7877		period, it remains perfected thereafter. If the security interest
8037	7878		does not become perfected under the law of the other jurisdiction
8038	7879		before the earlier time or event, it becomes unperfected and is
8039	7880
8040		-	HB2776 HFLR Page 158
8041		-	BOLD FACE denotes Committee Amendments. 1
	7881	+	Req. No. 6221 Page 158 1
8042	7882		2
8043	7883		3
8044	7884		4
8045	7885		5
8046	7886		6
8047	7887		7
8048	7888		8
8049	7889		9
8050	7890		10
8051	7891		11
8052	7892		12
8053	7893		13
8054	7894		14
8055	7895		15
8056	7896		16
8057	7897		17
8058	7898		18
8059	7899		19
8060	7900		20
8061	7901		21
8062	7902		22
8063	7903		23
8064	7904		24
8065	7905
8066	7906		deemed never to have been perfected as aga inst a purchaser of the
8067	7907		collateral for value.
8068	7908		(i) If a financing statement naming an or iginal debtor is filed
8069	7909		pursuant to the law of the jurisdiction designated in sub section (1)
8070	7910		of Section 1-9-301 of this title or subsection (c) of Section 1-9-
8071	7911		305 of this title and the new debtor is located in another
8072	7912		jurisdiction, the following rules apply :
8073	7913		(1) the financing statement is effective to perfect a security
8074	7914		interest in collateral in which the new debtor has or acquires
8075	7915		rights before or within four (4) months after the new debtor becomes
8076	7916		bound under subsection (d) of Sectio n 1-9-203 of this title, if the
8077	7917		financing statement would have been effective to perfect a security
8078	7918		interest in the collateral if the collateral had been acquired by
8079	7919		the original debtor.
8080	7920		(2) a security interest that is perfected by the financing
8081	7921		statement and which becomes per fected under the law of the other
8082	7922		jurisdiction before the earlier of the expirat ion of the four-month
8083	7923		period or the time the financing statement would have become
8084	7924		ineffective under the law of the jurisdiction designated in
8085	7925		subsection (1) of Section 1-9-301 of this title or subsection (c) of
8086	7926		Section 1-9-305 of this title remains perfec ted thereafter. A
8087	7927		security interest that is perfected by the financing statement but
8088	7928		which does not become perfected under the law of the other
8089	7929		jurisdiction before the earlier time or event becomes unperfected
8090	7930
8091		-	HB2776 HFLR Page 159
8092		-	BOLD FACE denotes Committee Amendments. 1
	7931	+	Req. No. 6221 Page 159 1
8093	7932		2
8094	7933		3
8095	7934		4
8096	7935		5
8097	7936		6
8098	7937		7
8099	7938		8
8100	7939		9
8101	7940		10
8102	7941		11
8103	7942		12
8104	7943		13
8105	7944		14
8106	7945		15
8107	7946		16
8108	7947		17
8109	7948		18
8110	7949		19
8111	7950		20
8112	7951		21
8113	7952		22
8114	7953		23
8115	7954		24
8116	7955
8117	7956		and is deemed never to have been perfected as against a purchaser of
8118	7957		the collateral for value.
8119	7958		SECTION 65. AMENDATORY 12A O.S. 2021, Section 1 -9-317,
8120	7959		is amended to read as fol lows:
8121	7960		Section 1-9-317.
8122	7961		INTERESTS THAT TAKE PRIORITY OVER OR TAKE FREE
8123	7962		OF SECURITY INTEREST OR AGRICUL TURAL LIEN
8124	7963		(a) A security interest or agricultural lien is subordinate to
8125	7964		the rights of:
8126	7965		(1) a person entitled to priority under Section 1 -9-322 of this
8127	7966		title; and
8128	7967		(2) except as otherwise provided in subsection (e) of this
8129	7968		section, a person that becomes a lien creditor before t he earlier of
8130	7969		the time:
8131	7970		(A) the security interest or agricultural lien is
8132	7971		perfected; or
8133	7972		(B) one of the conditions specified in paragraph (3) of
8134	7973		subsection (b) of Section 1-9-203 of this title is met
8135	7974		and a financing statement coveri ng the collateral is
8136	7975		filed.
8137	7976		(b) Except as otherwis e provided in subsection (e) of this
8138	7977		section, a buyer, other than a secured party , of tangible chattel
8139	7978		paper, tangible documents, goods, instruments, tangible documents,
8140	7979		or a certificated security takes fr ee of a security interest or
8141	7980
8142		-	HB2776 HFLR Page 160
8143		-	BOLD FACE denotes Committee Amendments. 1
	7981	+	Req. No. 6221 Page 160 1
8144	7982		2
8145	7983		3
8146	7984		4
8147	7985		5
8148	7986		6
8149	7987		7
8150	7988		8
8151	7989		9
8152	7990		10
8153	7991		11
8154	7992		12
8155	7993		13
8156	7994		14
8157	7995		15
8158	7996		16
8159	7997		17
8160	7998		18
8161	7999		19
8162	8000		20
8163	8001		21
8164	8002		22
8165	8003		23
8166	8004		24
8167	8005
8168	8006		agricultural lien if t he buyer gives value and receives deliver y of
8169	8007		the collateral without knowledge of the security interest or
8170	8008		agricultural lien and b efore it is perfected.
8171	8009		(c) Except as otherwise p rovided in subsection (e) of this
8172	8010		section, a lessee of goods takes free of a security interest or
8173	8011		agricultural lien if the lessee gives value and receives delivery of
8174	8012		the collateral without knowledge of the security interest or
8175	8013		agricultural lien and before it is perfected.
8176	8014		(d) A Subject to subsections (f) through (i) of this section, a
8177	8015		licensee of a general intangible or a buyer, other than a secured
8178	8016		party, of collateral other than tangible chattel paper, ta ngible
8179	8017		documents electronic money, goods, instruments, tangible documents,
8180	8018		or a certificated securit y takes free of a security interest if the
8181	8019		licensee or buyer gives value without knowledge of the security
8182	8020		interest and before it is perfected.
8183	8021		(e) Except as otherwise provided in Sections 1-9-320 and 1-9-
8184	8022		321 of this title, if a p erson files a financing statement with
8185	8023		respect to a purchase-money security interest before or within
8186	8024		twenty (20) days after the debtor receives delivery of the
8187	8025		collateral, the secu rity interest takes priority over the rights of
8188	8026		a buyer, lessee, or lien cr editor which arise betwee n the time the
8189	8027		security interest attaches and the tim e of filing.
8190	8028
8191		-	HB2776 HFLR Page 161
8192		-	BOLD FACE denotes Committee Amendments. 1
	8029	+	Req. No. 6221 Page 161 1
8193	8030		2
8194	8031		3
8195	8032		4
8196	8033		5
8197	8034		6
8198	8035		7
8199	8036		8
8200	8037		9
8201	8038		10
8202	8039		11
8203	8040		12
8204	8041		13
8205	8042		14
8206	8043		15
8207	8044		16
8208	8045		17
8209	8046		18
8210	8047		19
8211	8048		20
8212	8049		21
8213	8050		22
8214	8051		23
8215	8052		24
8216	8053
8217	8054		(f) A buyer, other than a secured party, of chattel paper takes
8218	8055		free of a security intere st if, without knowledge of the security
8219	8056		interest and before it is perfecte d, the buyer gives value and:
8220	8057		(1) receives delivery of each authoritative tang ible copy of
8221	8058		the record evidencing the chattel paper; and
8222	8059		(2) if each authoritative electronic copy o f the record
8223	8060		evidencing the chattel paper can be subjected to control under
8224	8061		Section 1-9-105 of this title, obtains control of ea ch authoritative
8225	8062		electronic copy.
8226	8063		(g) A buyer of an electronic document takes free of a security
8227	8064		interest if, without knowledge of the security interest and before
8228	8065		it is perfected, the buyer gives value and, if each authoritative
8229	8066		electronic copy of the do cument can be subjected to control under
8230	8067		Section 7-106 of this title, obtains control of each authoritative
8231	8068		electronic copy.
8232	8069		(h) A buyer of a controllable electronic record takes free of a
8233	8070		security interest if, without knowledg e of the security interest a nd
8234	8071		before it is perfected, the buyer gives value and obtains control of
8235	8072		the controllable electronic record.
8236	8073		(i) A buyer, other than a secured party, of a controllable
8237	8074		account or a controllable payment i ntangible takes free of a
8238	8075		security interest if, witho ut knowledge of the securit y interest and
8239	8076		before it is perfected, the buyer gives value and obtains control of
8240	8077		the controllable account or controllable payment intangible.
8241	8078
8242		-	HB2776 HFLR Page 162
8243		-	BOLD FACE denotes Committee Amendments. 1
	8079	+	Req. No. 6221 Page 162 1
8244	8080		2
8245	8081		3
8246	8082		4
8247	8083		5
8248	8084		6
8249	8085		7
8250	8086		8
8251	8087		9
8252	8088		10
8253	8089		11
8254	8090		12
8255	8091		13
8256	8092		14
8257	8093		15
8258	8094		16
8259	8095		17
8260	8096		18
8261	8097		19
8262	8098		20
8263	8099		21
8264	8100		22
8265	8101		23
8266	8102		24
8267	8103
8268	8104		SECTION 66. AMENDATORY 12A O.S. 2021, Section 1-9-323,
8269	8105		is amended to read as follows:
8270	8106		Section 1-9-323.
8271	8107		FUTURE ADVANCES
8272	8108		(a) Except as other wise provided in subsection (c) of this
8273	8109		section, for purposes of determining the priority of a perfected
8274	8110		security interest under paragraph (1) of subsection (a) of Section
8275	8111		1-9-322 of this title, perfection of the security interest dates
8276	8112		from the time an advance is made to the extent that the security
8277	8113		interest secures an advance that:
8278	8114		(1) is made while the security interest is perfected only:
8279	8115		(A) under Section 1-9-309 of this title when it attaches;
8280	8116		or
8281	8117		(B) temporarily under subsection (e), (f), or (g) of
8282	8118		Section 1-9-312 of this title; and
8283	8119		(2) is not made pursuant to a commitment entered into before or
8284	8120		while the security inte rest is perfected by a method other than
8285	8121		under Section 1-9-309 or subsection (e), (f), or (g) of Section 1 -9-
8286	8122		312 of this title.
8287	8123		(b) Except as otherwise provided in subsection (c) of this
8288	8124		section, a security interest is subordinate to the rights of a
8289	8125		person that becomes a lien creditor to the extent that the security
8290	8126		interest secures an advance made more than forty -five (45) days
8291	8127		after the person becomes a lien creditor unless the adva nce is made:
8292	8128
8293		-	HB2776 HFLR Page 163
8294		-	BOLD FACE denotes Committee Amendments. 1
	8129	+	Req. No. 6221 Page 163 1
8295	8130		2
8296	8131		3
8297	8132		4
8298	8133		5
8299	8134		6
8300	8135		7
8301	8136		8
8302	8137		9
8303	8138		10
8304	8139		11
8305	8140		12
8306	8141		13
8307	8142		14
8308	8143		15
8309	8144		16
8310	8145		17
8311	8146		18
8312	8147		19
8313	8148		20
8314	8149		21
8315	8150		22
8316	8151		23
8317	8152		24
8318	8153
8319	8154		(1) without knowledge of the lien; or
8320	8155		(2) pursuant to a co mmitment entered into without knowledge of
8321	8156		the lien.
8322	8157		(c) Subsections (a) and (b) of this section do not apply to a
8323	8158		security interest held by a secured party that is a buyer of
8324	8159		accounts, chattel paper, payment intangibles, or promissory notes or
8325	8160		a consignor.
8326	8161		(d) Except as otherwise provided in subsection (e) of this
8327	8162		section, a buyer of goods other than a buyer in ordinary course of
8328	8163		business takes free of a security interest to the ext ent that it
8329	8164		secures advances made after the earlier of:
8330	8165		(1) the time the secured party acquires knowledge of the
8331	8166		buyer's purchase; or
8332	8167		(2) forty-five (45) days after the purchase.
8333	8168		(e) Subsection (d) of this section does not apply if the
8334	8169		advance is made pursuant to a commitment entered into without
8335	8170		knowledge of the buyer 's purchase and before the expiration of the
8336	8171		forty-five-day period.
8337	8172		(f) Except as otherwise provided in subsection (g) of this
8338	8173		section, a lessee of goods, other than a lessee in ordinary c ourse
8339	8174		of business, takes the leasehold interest free of a security
8340	8175		interest to the extent that it secures advances made after t he
8341	8176		earlier of:
8342	8177
8343		-	HB2776 HFLR Page 164
8344		-	BOLD FACE denotes Committee Amendments. 1
	8178	+	Req. No. 6221 Page 164 1
8345	8179		2
8346	8180		3
8347	8181		4
8348	8182		5
8349	8183		6
8350	8184		7
8351	8185		8
8352	8186		9
8353	8187		10
8354	8188		11
8355	8189		12
8356	8190		13
8357	8191		14
8358	8192		15
8359	8193		16
8360	8194		17
8361	8195		18
8362	8196		19
8363	8197		20
8364	8198		21
8365	8199		22
8366	8200		23
8367	8201		24
8368	8202
8369	8203		(1) the time the secured party acquires knowledge of the lease;
8370	8204		or
8371	8205		(2) Forty-five (45) days after the lease cont ract becomes
8372	8206		enforceable.
8373	8207		(g) Subsection (f) of this section does not ap ply if the
8374	8208		advance is made pursuant to a commitment en tered into without
8375	8209		knowledge of the lease and before the expiration of the forty -five-
8376	8210		day period.
8377	8211		SECTION 67. AMENDATORY 12A O.S. 2021, Section 1-9-324,
8378	8212		is amended to read as foll ows:
8379	8213		Section 1-9-324.
8380	8214		PRIORITY OF PURCHASE-MONEY SECURITY INTERESTS
8381	8215		(a) Except as otherwise provided in subsection (g) of this
8382	8216		section, a perfected purchase -money security interest in goods other
8383	8217		than inventory or livestock has priority over a conflicting security
8384	8218		interest in the same goods, and, except a s otherwise provided in
8385	8219		Section 1-9-327 of this title, a perfected security interest in its
8386	8220		identifiable proceeds also has priorit y, if the purchase-money
8387	8221		security interest is perfected when the debtor rec eives possession
8388	8222		of the collateral or within twenty (20) days thereafter.
8389	8223		(b) Subject to subsection (c) of this section and except as
8390	8224		otherwise provided in subsection (g) of this s ection, a perfected
8391	8225		purchase-money security interest in inventory has prior ity over a
8392	8226		conflicting security interest in the sam e inventory, has priority
8393	8227
8394		-	HB2776 HFLR Page 165
8395		-	BOLD FACE denotes Committee Amendments. 1
	8228	+	Req. No. 6221 Page 165 1
8396	8229		2
8397	8230		3
8398	8231		4
8399	8232		5
8400	8233		6
8401	8234		7
8402	8235		8
8403	8236		9
8404	8237		10
8405	8238		11
8406	8239		12
8407	8240		13
8408	8241		14
8409	8242		15
8410	8243		16
8411	8244		17
8412	8245		18
8413	8246		19
8414	8247		20
8415	8248		21
8416	8249		22
8417	8250		23
8418	8251		24
8419	8252
8420	8253		over a conflicting security interest in chattel paper or an
8421	8254		instrument constituting proceeds of the inve ntory and in proceeds of
8422	8255		the chattel paper, if so provided in Section 1 -9-330 of this title,
8423	8256		and, except as otherwise provided in Section 1-9-327 of this title,
8424	8257		also has priority in identifiable cash proceeds of the inventory to
8425	8258		the extent the identifiable cash proceeds are received on or before
8426	8259		the delivery of the inventory to a buyer, if:
8427	8260		(1) the purchase-money security intere st is perfected when the
8428	8261		debtor receives possession of the inventory;
8429	8262		(2) the purchase-money secured party sends an authenticated a
8430	8263		signed notification to the holder of the conflicting security
8431	8264		interest;
8432	8265		(3) the holder of the co nflicting security interes t receives
8433	8266		the notification within five (5) years before the debtor receives
8434	8267		possession of the inventory; and
8435	8268		(4) the notificatio n states that the person sending the
8436	8269		notification has or expects to acquire a purchase-money security
8437	8270		interest in inventory of the debtor and describes the inventory.
8438	8271		(c) Paragraphs (2) through (4) of subsection (b) of this
8439	8272		section apply only if the holde r of the conflicting security
8440	8273		interest had filed a financing statement cove ring the same types of
8441	8274		inventory:
8442	8275		(1) if the purchase-money security interes t is perfected by
8443	8276		filing, before the date of the filing; or
8444	8277
8445		-	HB2776 HFLR Page 166
8446		-	BOLD FACE denotes Committee Amendments. 1
	8278	+	Req. No. 6221 Page 166 1
8447	8279		2
8448	8280		3
8449	8281		4
8450	8282		5
8451	8283		6
8452	8284		7
8453	8285		8
8454	8286		9
8455	8287		10
8456	8288		11
8457	8289		12
8458	8290		13
8459	8291		14
8460	8292		15
8461	8293		16
8462	8294		17
8463	8295		18
8464	8296		19
8465	8297		20
8466	8298		21
8467	8299		22
8468	8300		23
8469	8301		24
8470	8302
8471	8303		(2) if the purchase -money security interest is temporarily
8472	8304		perfected without filing or possession under subsection (f) of
8473	8305		Section 1-9-312 of this title, before the begin ning of the twenty-
8474	8306		day period thereunder.
8475	8307		(d) Subject to subsection (e) of this section and except as
8476	8308		otherwise provided in subse ction (g) of this section, a perfected
8477	8309		purchase-money security interest in livestock that are farm p roducts
8478	8310		has priority over a conflicting security int erest in the same
8479	8311		livestock, and, except as otherwise provided in Section 1 -9-327 of
8480	8312		this title, a perfected security interest in their identifiable
8481	8313		proceeds and identifiable prod ucts in their unmanufactu red states
8482	8314		also has priority, if:
8483	8315		(1) the purchase-money security interest is perfected when the
8484	8316		debtor receives possession of the livestock;
8485	8317		(2) the purchase-money secured party sends an authenticated a
8486	8318		signed notification to the holder of the conflicti ng security
8487	8319		interest;
8488	8320		(3) the holder of the conflic ting security interest receives
8489	8321		the notification within six (6) months before the debtor receives
8490	8322		possession of the livestock; and
8491	8323		(4) the notification states that the person sen ding the
8492	8324		notification has or expects to acquire a p urchase-money security
8493	8325		interest in livestock of the debtor and describes the livestock.
8494	8326
8495		-	HB2776 HFLR Page 167
8496		-	BOLD FACE denotes Committee Amendments. 1
	8327	+	Req. No. 6221 Page 167 1
8497	8328		2
8498	8329		3
8499	8330		4
8500	8331		5
8501	8332		6
8502	8333		7
8503	8334		8
8504	8335		9
8505	8336		10
8506	8337		11
8507	8338		12
8508	8339		13
8509	8340		14
8510	8341		15
8511	8342		16
8512	8343		17
8513	8344		18
8514	8345		19
8515	8346		20
8516	8347		21
8517	8348		22
8518	8349		23
8519	8350		24
8520	8351
8521	8352		(e) Paragraphs (2) through (4) of subsect ion (d) of this
8522	8353		section applies only if the holder of the conflicting secur ity
8523	8354		interest had filed a financing statement coveri ng the same types of
8524	8355		livestock:
8525	8356		(1) if the purchase -money security interest is perfected by
8526	8357		filing, before the date of the filing ; or
8527	8358		(2) if the purchase-money security interest is temporarily
8528	8359		perfected without filing or possess ion under subsection (f) o f
8529	8360		Section 1-9-312 of this title, before the beginning of the twenty -
8530	8361		day period thereunder.
8531	8362		(f) Except as otherwise provided in su bsection (g) of this
8532	8363		section, a perfected purchase-money security interest in software
8533	8364		has priority over a conflicting securit y interest in the same
8534	8365		collateral, and, except as otherwise provided in Section 1 -9-327 of
8535	8366		this title, a perfected security intere st in its identifiable
8536	8367		proceeds also has priority, to the extent that the p urchase-money
8537	8368		security interest in the goods in whi ch the software was acquir ed
8538	8369		for use has priority in the goods and proceeds of the goods under
8539	8370		this section.
8540	8371		(g) If more than one security interest qualifies for priority
8541	8372		in the same collateral under subs ection (a), (b), (d), or (f) of
8542	8373		this section:
8543	8374		(1) a security interest securi ng an obligation incurred as all
8544	8375		or part of the price of the collateral has priority over a security
8545	8376
8546		-	HB2776 HFLR Page 168
8547		-	BOLD FACE denotes Committee Amendments. 1
	8377	+	Req. No. 6221 Page 168 1
8548	8378		2
8549	8379		3
8550	8380		4
8551	8381		5
8552	8382		6
8553	8383		7
8554	8384		8
8555	8385		9
8556	8386		10
8557	8387		11
8558	8388		12
8559	8389		13
8560	8390		14
8561	8391		15
8562	8392		16
8563	8393		17
8564	8394		18
8565	8395		19
8566	8396		20
8567	8397		21
8568	8398		22
8569	8399		23
8570	8400		24
8571	8401
8572	8402		interest securing an obligation incurred for value given to enable
8573	8403		the debtor to acquire rights in or t he use of collateral; and
8574	8404		(2) in all other cases, s ubsection (a) of Section 1 -9-322 of
8575	8405		this title applies to the qualifying security interests.
8576	8406		SECTION 68. NEW LAW A new section of law to be codified
8577	8407		in the Oklahoma Statutes as Section 1-9-326A of Title 12A, unless
8578	8408		there is created a duplication in numbering, reads as follows:
8579	8409		PRIORITY OF SECURITY INTEREST IN CONTROLLABLE ACCOUNT,
8580	8410		CONTROLLABLE ELECTRONIC RECORD, AND CONTROLLABLE PAYMENT INTANGIBLE
8581	8411		A security interest in a controllable account, controllable
8582	8412		electronic record, or controllable payment intangible held by a
8583	8413		secured party having control of the account, electronic reco rd, or
8584	8414		payment intangible has priority over a conflicting se curity interest
8585	8415		held by a secured party that does not have control.
8586	8416		SECTION 69. AMENDATORY 12A O.S. 2021, Section 1 -9-330,
8587	8417		is amended to read as follows:
8588	8418		Section 1-9-330.
8589	8419		PRIORITY OF PURCHASER OF CHATTEL PAPER OR INSTRUMENT
8590	8420		(a) A purchaser of chattel paper has priority over a security
8591	8421		interest in the chattel paper which is claimed merely as proceeds of
8592	8422		inventory subject to a security interest if:
8593	8423		(1) in good faith and in the ordinary course of the purchaser's
8594	8424		business, the purchaser gives new value and, takes possession of
8595	8425		each authoritative tangible copy of the record evidencing the
8596	8426
8597		-	HB2776 HFLR Page 169
8598		-	BOLD FACE denotes Committee Amendments. 1
	8427	+	Req. No. 6221 Page 169 1
8599	8428		2
8600	8429		3
8601	8430		4
8602	8431		5
8603	8432		6
8604	8433		7
8605	8434		8
8606	8435		9
8607	8436		10
8608	8437		11
8609	8438		12
8610	8439		13
8611	8440		14
8612	8441		15
8613	8442		16
8614	8443		17
8615	8444		18
8616	8445		19
8617	8446		20
8618	8447		21
8619	8448		22
8620	8449		23
8621	8450		24
8622	8451
8623	8452		chattel paper or, and obtains control of under Section 1-9-105 of
8624	8453		this title of each authoritative electronic copy of the record
8625	8454		evidencing the chattel paper under Section 1-9-105 of this title;
8626	8455		and
8627	8456		(2) the chattel paper does authoritative copies of the record
8628	8457		evidencing the chattel paper do not indicate that it the chattel
8629	8458		paper has been assigned to an identified assignee other than the
8630	8459		purchaser.
8631	8460		(b) A purchaser of chattel paper has priority over a security
8632	8461		interest in the chattel paper which is claimed other than merely as
8633	8462		proceeds of inventory subject to a security interest if the
8634	8463		purchaser gives new value and, takes possession of each
8635	8464		authoritative tangible copy of the reco rd evidencing the chattel
8636	8465		paper or, and obtains control of under Section 1-9-105 of this title
8637	8466		of each authoritative electronic copy of the record evidencing the
8638	8467		chattel paper under Section 1-9-105 of this title in good faith, in
8639	8468		the ordinary course of t he purchaser's business, and without
8640	8469		knowledge that the purchase violates the rights of the secured
8641	8470		party.
8642	8471		(c) Except as otherwise provided in Section 1-9-327 of this
8643	8472		title, a purchaser having priority in chattel paper under subsection
8644	8473		(a) or (b) of this section also has priority in proceeds of the
8645	8474		chattel paper to the extent that:
8646	8475
8647		-	HB2776 HFLR Page 170
8648		-	BOLD FACE denotes Committee Amendments. 1
	8476	+	Req. No. 6221 Page 170 1
8649	8477		2
8650	8478		3
8651	8479		4
8652	8480		5
8653	8481		6
8654	8482		7
8655	8483		8
8656	8484		9
8657	8485		10
8658	8486		11
8659	8487		12
8660	8488		13
8661	8489		14
8662	8490		15
8663	8491		16
8664	8492		17
8665	8493		18
8666	8494		19
8667	8495		20
8668	8496		21
8669	8497		22
8670	8498		23
8671	8499		24
8672	8500
8673	8501		(1) Section 1-9-322 of this title provide s for priority in the
8674	8502		proceeds; or
8675	8503		(2) the proceeds consist of the specific goods covered by the
8676	8504		chattel paper or cash proceeds of the specific goods, even if the
8677	8505		purchaser's security interest in the proceeds is unperfected.
8678	8506		(d) Except as otherwise provi ded in subsection (a) of Section
8679	8507		1-9-331 of this title, a purchaser of an instrument has priority
8680	8508		over a security interest in the instr ument perfected by a method
8681	8509		other than possession if the purchaser gives value and takes
8682	8510		possession of the instrument in good faith and without knowledge
8683	8511		that the purchase violates the rights of the secured party.
8684	8512		(e) For purposes of subsections (a) and ( b) of this section,
8685	8513		the holder of a purchase-money security interest in inventory gives
8686	8514		new value for chattel paper const ituting proceeds of the inventory.
8687	8515		(f) For purposes of subsections (b) and (d) of this section, if
8688	8516		the authoritative copies of the record evidencing chattel paper or
8689	8517		an instrument indicates indicate that it the chattel paper or
8690	8518		instrument has been assigned to an identified secured party other
8691	8519		than the purchaser, a purchaser of the chattel paper or instrument
8692	8520		has knowledge that the purchase vi olates the rights of the secured
8693	8521		party.
8694	8522		SECTION 70. AMENDATORY 12A O.S. 2021, Section 1 -9-331,
8695	8523		is amended to read as follows:
8696	8524		Section 1-9-331.
8697	8525
8698		-	HB2776 HFLR Page 171
8699		-	BOLD FACE denotes Committee Amendments. 1
	8526	+	Req. No. 6221 Page 171 1
8700	8527		2
8701	8528		3
8702	8529		4
8703	8530		5
8704	8531		6
8705	8532		7
8706	8533		8
8707	8534		9
8708	8535		10
8709	8536		11
8710	8537		12
8711	8538		13
8712	8539		14
8713	8540		15
8714	8541		16
8715	8542		17
8716	8543		18
8717	8544		19
8718	8545		20
8719	8546		21
8720	8547		22
8721	8548		23
8722	8549		24
8723	8550
8724	8551		PRIORITY OF RIGHTS OF PURCHASERS OF INSTRUMENTS CONTROLLABLE
8725	8552		ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, CO NTROLLABLE PAYMENT
8726	8553		INTANGIBLES, DOCUMENTS, INSTRUMENTS, AND SECURITIES UNDER OTHER
8727	8554		ARTICLES; PRIORITY OF INTERESTS IN FINANCIAL ASSETS AND SECURITY
8728	8555		ENTITLEMENTS AND PROTECTION AGAINST ASSERTION OF CLAIM UNDER ARTICLE
8729	8556		ARTICLES 8 AND 12
8730	8557		(a) This article doe s not limit the rights of a hol der in due
8731	8558		course of a negotiable instrument, a holder to which a n egotiable
8732	8559		document of title has been duly negotia ted, or a protected purchaser
8733	8560		of a security, or a qualifying pur chaser of a controllable account,
8734	8561		controllable electronic record, or control lable payment intangible.
8735	8562		These holders or purchasers take priorit y over an earlier security
8736	8563		interest, even if perf ected, to the extent provided in Articles 3,
8737	8564		7, and 8, and 12 of this title.
8738	8565		(b) This article does not limit the rights of or impose
8739	8566		liability on a person to the extent that the person is protected
8740	8567		against the assertion of a claim under Article 8 or 12 of this
8741	8568		title.
8742	8569		(c) Filing under this article does not constitute notice of a
8743	8570		claim or defense to the h olders, or purchasers, or persons descr ibed
8744	8571		in subsections (a) and (b) of this section.
8745	8572		SECTION 71. AMENDATORY 12A O.S. 2021, Section 1-9-332,
8746	8573		is amended to read as follows:
8747	8574		Section 1-9-332.
8748	8575
8749		-	HB2776 HFLR Page 172
8750		-	BOLD FACE denotes Committee Amendments. 1
	8576	+	Req. No. 6221 Page 172 1
8751	8577		2
8752	8578		3
8753	8579		4
8754	8580		5
8755	8581		6
8756	8582		7
8757	8583		8
8758	8584		9
8759	8585		10
8760	8586		11
8761	8587		12
8762	8588		13
8763	8589		14
8764	8590		15
8765	8591		16
8766	8592		17
8767	8593		18
8768	8594		19
8769	8595		20
8770	8596		21
8771	8597		22
8772	8598		23
8773	8599		24
8774	8600
8775	8601		TRANSFER OF MONEY; TRANSFER OF FUNDS FROM DEPOSI T ACCOUNT
8776	8602		(a) A transferee of tangible money takes the money free of a
8777	8603		security interest unless if the transferee acts receives possession
8778	8604		of the money without acting in collusion with the deb tor in
8779	8605		violating the rights of the secured party.
8780	8606		(b) A transferee of funds from a deposit ac count takes the
8781	8607		funds free of a security interest in the deposit ac count unless if
8782	8608		the transferee acts receives the funds without acting in collusion
8783	8609		with the debtor in violating the rights of the se cured party.
8784	8610		(c) A transferee of electronic money takes the money free of a
8785	8611		security interest if the transferee obtains control of the money
8786	8612		without acting in collusion with the debtor in violating the rights
8787	8613		of the secured party.
8788	8614		SECTION 72. AMENDATORY 12 A O.S. 2021, Section 1 -9-334,
8789	8615		is amended to read as follows:
8790	8616		Section 1-9-334.
8791	8617		PRIORITY OF SECURITY INTERESTS IN FIXTURES AND CROPS
8792	8618		(a) A security interest under this article may be created in
8793	8619		goods that are fixtures or may continue in goods that become
8794	8620		fixtures. A security interest do es not exist under this article in
8795	8621		ordinary building materials inco rporated into an improvement on
8796	8622		land.
8797	8623		(b) This article does not prevent creation of an encumbrance
8798	8624		upon fixtures under real property law.
8799	8625
8800		-	HB2776 HFLR Page 173
8801		-	BOLD FACE denotes Committee Amendments. 1
	8626	+	Req. No. 6221 Page 173 1
8802	8627		2
8803	8628		3
8804	8629		4
8805	8630		5
8806	8631		6
8807	8632		7
8808	8633		8
8809	8634		9
8810	8635		10
8811	8636		11
8812	8637		12
8813	8638		13
8814	8639		14
8815	8640		15
8816	8641		16
8817	8642		17
8818	8643		18
8819	8644		19
8820	8645		20
8821	8646		21
8822	8647		22
8823	8648		23
8824	8649		24
8825	8650
8826	8651		(c) In cases not governed by subsections (d) thro ugh (h) of
8827	8652		this section, a security interest in fixtures is subordi nate to a
8828	8653		conflicting interest of an encumbranc er or owner of the related real
8829	8654		property other than the d ebtor.
8830	8655		(d) Except as otherwise provided in subsection (h) of this
8831	8656		section, a perfected security interest in fixtures has priority over
8832	8657		a conflicting interest of an encumbrancer or owner of the real
8833	8658		property if the debtor has an interest of record in or is in
8834	8659		possession of the real property and:
8835	8660		(1) the security interest is a purchase-money security
8836	8661		interest;
8837	8662		(2) the interest of the encumbrancer or owne r arises before the
8838	8663		goods become fixtures; and
8839	8664		(3) the security interest is perfected by a fixture fili ng
8840	8665		before the goods become fixtures or within twenty ( 20) days
8841	8666		thereafter.
8842	8667		(e) A perfected security interest in fixtures has priority over
8843	8668		a conflicting interest of an encumbrancer or owner of the r eal
8844	8669		property if:
8845	8670		(1) the debtor has an interest of recor d in the real property
8846	8671		or is in possession of the real property and the security inte rest:
8847	8672		(A) is perfected by a fixture filing before the interest
8848	8673		of the encumbrancer or owner is of record; and
8849	8674
8850		-	HB2776 HFLR Page 174
8851		-	BOLD FACE denotes Committee Amendments. 1
	8675	+	Req. No. 6221 Page 174 1
8852	8676		2
8853	8677		3
8854	8678		4
8855	8679		5
8856	8680		6
8857	8681		7
8858	8682		8
8859	8683		9
8860	8684		10
8861	8685		11
8862	8686		12
8863	8687		13
8864	8688		14
8865	8689		15
8866	8690		16
8867	8691		17
8868	8692		18
8869	8693		19
8870	8694		20
8871	8695		21
8872	8696		22
8873	8697		23
8874	8698		24
8875	8699
8876	8700		(B) has priority over any conflicting interest of a
8877	8701		predecessor in title of the encumbrancer or owner;
8878	8702		(2) before the goods become fixtures, the security interest is
8879	8703		perfected by any method permitted by this arti cle and the fixtures
8880	8704		are readily removable:
8881	8705		(A) factory or office machines;
8882	8706		(B) equipment that is not pr imarily used or leased for use
8883	8707		in the operation of the real property; or
8884	8708		(C) replacements of domestic appliances that are consumer
8885	8709		goods;
8886	8710		(3) the conflicting interest is a lien on the real property
8887	8711		obtained by legal or equitable proceedings after the secu rity
8888	8712		interest was perfected by any method permitted by this article; or
8889	8713		(4) the security interest is:
8890	8714		(A) created in a manufactured home in a manufactu red-home
8891	8715		transaction; and
8892	8716		(B) perfected pursuant to a statute described in paragraph
8893	8717		(2) of subsection (a) of Section 1-9-311 of this
8894	8718		title.
8895	8719		(f) A security interest in fixtures, whether or not perfected,
8896	8720		has priority over a conflicting interest of an encu mbrancer or owner
8897	8721		of the real property if:
8898	8722
8899		-	HB2776 HFLR Page 175
8900		-	BOLD FACE denotes Committee Amendments. 1
	8723	+	Req. No. 6221 Page 175 1
8901	8724		2
8902	8725		3
8903	8726		4
8904	8727		5
8905	8728		6
8906	8729		7
8907	8730		8
8908	8731		9
8909	8732		10
8910	8733		11
8911	8734		12
8912	8735		13
8913	8736		14
8914	8737		15
8915	8738		16
8916	8739		17
8917	8740		18
8918	8741		19
8919	8742		20
8920	8743		21
8921	8744		22
8922	8745		23
8923	8746		24
8924	8747
8925	8748		(1) the encumbrancer or owner has, in an authenticated a signed
8926	8749		record, consented to the security interest or disc laimed an interest
8927	8750		in the goods as fixtures; or
8928	8751		(2) the debtor has a right to remove the goods as against the
8929	8752		encumbrancer or owner.
8930	8753		(g) The priority of the security interest under paragraph (2)
8931	8754		of subsection (f) of this section continues for a reasonabl e time if
8932	8755		the debtor's right to remove the goods as against the enc umbrancer
8933	8756		or owner terminates.
8934	8757		(h) A mortgage is a construction mortgage to t he extent that it
8935	8758		secures an obligation incurred for the construction of an
8936	8759		improvement on land, including the acquisition cost of the land, if
8937	8760		a recorded record of the mortgage so indicates. Except as otherw ise
8938	8761		provided in subsections (e) and (f) of this section, a security
8939	8762		interest in fixtures is subordinate to a construction mortgage if a
8940	8763		record of the mortgage is recorded before the goods become fixtures
8941	8764		and the goods become fixtures before the completion of the
8942	8765		construction. A mortgage has this prior ity to the same extent as a
8943	8766		construction mortgage to the extent that it is given to refinance a
8944	8767		construction mortgage.
8945	8768		(i) A perfected security interest in crops growing on real
8946	8769		property has priority over a c onflicting interest of an encumbrancer
8947	8770		or owner of the real property if the debtor has an interest of
8948	8771		record in or is in possession of the real property.
8949	8772
8950		-	HB2776 HFLR Page 176
8951		-	BOLD FACE denotes Committee Amendments. 1
	8773	+	Req. No. 6221 Page 176 1
8952	8774		2
8953	8775		3
8954	8776		4
8955	8777		5
8956	8778		6
8957	8779		7
8958	8780		8
8959	8781		9
8960	8782		10
8961	8783		11
8962	8784		12
8963	8785		13
8964	8786		14
8965	8787		15
8966	8788		16
8967	8789		17
8968	8790		18
8969	8791		19
8970	8792		20
8971	8793		21
8972	8794		22
8973	8795		23
8974	8796		24
8975	8797
8976	8798		(j) Subsection (i) of this section prevails over any
8977	8799		inconsistent provisions of other statutes of thi s state.
8978	8800		SECTION 73. AMENDATORY 12A O.S. 2021, Section 1-9-341,
8979	8801		is amended to read as follows:
8980	8802		Section 1-9-341.
8981	8803		BANK'S RIGHTS AND DUTIES WITH RESPECT TO DEPOSIT ACCOUNT
8982	8804		Except as otherwise provided in subsection (c) of Section 1 -9-
8983	8805		340 of this title, and unless the bank otherwi se agrees in an
8984	8806		authenticated a signed record, a bank's rights and duties with
8985	8807		respect to a deposit account main tained with the bank are not
8986	8808		terminated, suspended, or modified by:
8987	8809		(1) the creation, attachment, or perfection of a security
8988	8810		interest in the deposit account;
8989	8811		(2) the bank's knowledge of the security interest; or
8990	8812		(3) the bank's receipt of instructions f rom the secured party.
8991	8813		SECTION 74. AMENDATORY 12A O.S. 2021, Section 1-9-404,
8992	8814		is amended to read as follows:
8993	8815		Section 1-9-404.
8994	8816		RIGHTS ACQUIRED BY ASSIGNEE;
8995	8817		CLAIMS AND DEFENSES AGAINST A SSIGNEE
8996	8818		(a) Unless an account debtor has made an enforceable agreement
8997	8819		not to assert defenses or claims, and subje ct to subsections (b)
8998	8820		through (e) of this section, the rights of an assignee are subject
8999	8821		to:
9000	8822
9001		-	HB2776 HFLR Page 177
9002		-	BOLD FACE denotes Committee Amendments. 1
	8823	+	Req. No. 6221 Page 177 1
9003	8824		2
9004	8825		3
9005	8826		4
9006	8827		5
9007	8828		6
9008	8829		7
9009	8830		8
9010	8831		9
9011	8832		10
9012	8833		11
9013	8834		12
9014	8835		13
9015	8836		14
9016	8837		15
9017	8838		16
9018	8839		17
9019	8840		18
9020	8841		19
9021	8842		20
9022	8843		21
9023	8844		22
9024	8845		23
9025	8846		24
9026	8847
9027	8848		(1) all terms of the agreement between the acc ount debtor and
9028	8849		assignor and any defense or claim in recoupment arising from th e
9029	8850		transaction that gave rise to the c ontract; and
9030	8851		(2) any other defense or claim of the account debtor against
9031	8852		the assignor which accrues before the account debtor receives a
9032	8853		notification of the assignment authenticated signed by the assignor
9033	8854		or the assignee.
9034	8855		(b) Subject to subsection (c) of this section and except as
9035	8856		otherwise provided in subsection (d) of this se ction, the claim of
9036	8857		an account debtor against an assignor may be asserted against an
9037	8858		assignee under subsection (a) of this section only to redu ce the
9038	8859		amount the account debtor owes.
9039	8860		(c) This section is subject to law other than this article
9040	8861		which establishes a different rule for an account debtor who is an
9041	8862		individual and who incurred the obligation primarily for personal,
9042	8863		family, or household pu rposes.
9043	8864		(d) In a consumer transaction, if a record evidences the
9044	8865		account debtor's obligation, law other than thi s article requires
9045	8866		that the record include a statement to the ef fect that the account
9046	8867		debtor's recovery against an assignee with respect to cla ims and
9047	8868		defenses against the assignor may no t exceed amounts paid by the
9048	8869		account debtor under the record, and the record does not include
9049	8870		such a statement, the extent to which a claim of an account debtor
9050	8871
9051		-	HB2776 HFLR Page 178
9052		-	BOLD FACE denotes Committee Amendments. 1
	8872	+	Req. No. 6221 Page 178 1
9053	8873		2
9054	8874		3
9055	8875		4
9056	8876		5
9057	8877		6
9058	8878		7
9059	8879		8
9060	8880		9
9061	8881		10
9062	8882		11
9063	8883		12
9064	8884		13
9065	8885		14
9066	8886		15
9067	8887		16
9068	8888		17
9069	8889		18
9070	8890		19
9071	8891		20
9072	8892		21
9073	8893		22
9074	8894		23
9075	8895		24
9076	8896
9077	8897		against the assignor may be asserted against an ass ignee is
9078	8898		determined as if the record include d such a statement.
9079	8899		(e) This section does not apply to an assignment of a health-
9080	8900		care-insurance receivable.
9081	8901		SECTION 75. AMENDATORY 12A O.S. 2021, Section 1 -9-406,
9082	8902		is amended to read as f ollows:
9083	8903		Section 1-9-406.
9084	8904		DISCHARGE OF ACCOUNT DEBTOR; NOTI FICATION OF ASSIGNMENT;
9085	8905		IDENTIFICATION AND PROOF OF ASS IGNMENT; RESTRICTIONS ON
9086	8906		ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT
9087	8907		INTANGIBLES, AND PROMISSORY NOTES INEFFE CTIVE
9088	8908		(a) Subject to subsectio ns (b) through (i) (k) of this section,
9089	8909		an account debtor on a n account, chattel paper, or a payment
9090	8910		intangible may discharge its obligation by paying the assignor
9091	8911		until, but not after, the account debtor receives a notificat ion,
9092	8912		authenticated signed by the assignor or the assignee, that the
9093	8913		amount due or to become du e has been assigned and that payment is to
9094	8914		be made to the assignee. After receipt of the notification, the
9095	8915		account debtor may discharge its obligation by paying the assignee
9096	8916		and may not discharge the obligation by paying the assignor.
9097	8917		(b) Subject to subsection subsections (h) and (k) of this
9098	8918		section, notification is ineffective under subsection (a) of this
9099	8919		section:
9100	8920		(1) if it does not reasonably identify the righ ts assigned;
9101	8921
9102		-	HB2776 HFLR Page 179
9103		-	BOLD FACE denotes Committee Amendments. 1
	8922	+	Req. No. 6221 Page 179 1
9104	8923		2
9105	8924		3
9106	8925		4
9107	8926		5
9108	8927		6
9109	8928		7
9110	8929		8
9111	8930		9
9112	8931		10
9113	8932		11
9114	8933		12
9115	8934		13
9116	8935		14
9117	8936		15
9118	8937		16
9119	8938		17
9120	8939		18
9121	8940		19
9122	8941		20
9123	8942		21
9124	8943		22
9125	8944		23
9126	8945		24
9127	8946
9128	8947		(2) to the extent that an agreement between an account debtor
9129	8948		and a seller of a payment intangible limits the account debtor's
9130	8949		duty to pay a person other than the seller and the limitation is
9131	8950		effective under law other than this article; or
9132	8951		(3) at the option of an acco unt debtor, if the notification
9133	8952		notifies the account debtor to make less than the full amount of any
9134	8953		installment or other periodic payment to the assignee, even if:
9135	8954		(A) only a portion of the account, chattel paper, or
9136	8955		general intangible has been assigned t o that assignee;
9137	8956		(B) a portion has been assigned to another assigne e; or
9138	8957		(C) the account debtor knows that the as signment to that
9139	8958		assignee is limited.
9140	8959		(c) Subject to subsection subsections (h) and (k) of this
9141	8960		section, if requested by the account debtor, a n assignee shall
9142	8961		seasonably furnish reasonable proof that the assig nment has been
9143	8962		made. Unless the assignee comp lies, the account debtor may
9144	8963		discharge its obligation by paying the assignor, even if the account
9145	8964		debtor has received a notification under subs ection (a) of this
9146	8965		section.
9147	8966		(d) (1) In this subsection, "promissory note" includes a
9148	8967		negotiable instrument that evidences chattel paper. Except as
9149	8968		otherwise provided in paragraph (2) of this subsection and
9150	8969		subsection subsections (e) and (j) of this section and Sections 2A -
9151	8970		303 and 1-9-407 of this title, and subject to subsection (h) of thi s
9152	8971
9153		-	HB2776 HFLR Page 180
9154		-	BOLD FACE denotes Committee Amendments. 1
	8972	+	Req. No. 6221 Page 180 1
9155	8973		2
9156	8974		3
9157	8975		4
9158	8976		5
9159	8977		6
9160	8978		7
9161	8979		8
9162	8980		9
9163	8981		10
9164	8982		11
9165	8983		12
9166	8984		13
9167	8985		14
9168	8986		15
9169	8987		16
9170	8988		17
9171	8989		18
9172	8990		19
9173	8991		20
9174	8992		21
9175	8993		22
9176	8994		23
9177	8995		24
9178	8996
9179	8997		section, a term in an agreement between an account debtor and an
9180	8998		assignor or in a promissory note is ineffective to the extent that
9181	8999		it:
9182	9000		(A) prohibits, restricts, or requires the consent o f the
9183	9001		account debtor or person obligated on the promissory
9184	9002		note to the assignment or transfer of, or the
9185	9003		creation, attachment, perfection, or enforcemen t of a
9186	9004		security interest in, the account, chattel paper,
9187	9005		payment intangible, or promissory note; or
9188	9006		(B) provides that the assignment or transfer or the
9189	9007		creation, attachment, perfection, or enforcement of
9190	9008		the security interest may give rise to a default,
9191	9009		breach, right of recoupment, claim, defense,
9192	9010		termination, right of termination, or remedy under the
9193	9011		account, chattel paper, payment intangible, or
9194	9012		promissory note.
9195	9013		(2) This subsection does not apply to the assignme nt or
9196	9014		transfer of or creation of a security interest in the following:
9197	9015		(A) a claim or right to recei ve compensation for injuries
9198	9016		or sickness as described in 26 U.S.C., Section 104
9199	9017		(a)(1) or (2), as amended from tim e to time;
9200	9018		(B) a claim or right to receive benefits under a special
9201	9019		needs trust as described in 42 U.S.C., Section
9202	9020		1396p(d)(4), as amended fro m time to time; or
9203	9021
9204		-	HB2776 HFLR Page 181
9205		-	BOLD FACE denotes Committee Amendments. 1
	9022	+	Req. No. 6221 Page 181 1
9206	9023		2
9207	9024		3
9208	9025		4
9209	9026		5
9210	9027		6
9211	9028		7
9212	9029		8
9213	9030		9
9214	9031		10
9215	9032		11
9216	9033		12
9217	9034		13
9218	9035		14
9219	9036		15
9220	9037		16
9221	9038		17
9222	9039		18
9223	9040		19
9224	9041		20
9225	9042		21
9226	9043		22
9227	9044		23
9228	9045		24
9229	9046
9230	9047		(C) a structured settlement payment right as defined in
9231	9048		paragraph 16 of Section 3239 of Title 1 2 of the
9232	9049		Oklahoma Statutes to the extent o f any conflict
9233	9050		between the Uniform Commerci al Code and the Structured
9234	9051		Settlement Protection Act of 2 001.
9235	9052		(e) Subsection (d) of this section does n ot apply to the sale
9236	9053		of a payment intangible or promissory note, ot her than a sale
9237	9054		pursuant to a disposition under Section 1-9-610 of this title or an
9238	9055		acceptance of collateral under Section 1 -9-620 of this title.
9239	9056		(f) Except as otherwise provided in subsection (j) of this
9240	9057		section and Sections 2A-303 and 1-9-407 of this title and subject to
9241	9058		subsections (h) and (i) of this section, a rule of law, statut e, or
9242	9059		regulation, that prohibits, restr icts, or requires the consent of a
9243	9060		government, governmental bod y or official, or account debtor to the
9244	9061		assignment or transfer of, or creation of a security interest in, an
9245	9062		account or chattel paper is ineffective to th e extent that the rule
9246	9063		of law, statute, or regulation:
9247	9064		(1) prohibits, restricts, or requires the cons ent of the
9248	9065		government, governmental body or official, or account debtor to the
9249	9066		assignment or transfer of, or the creation, attachment, perfection,
9250	9067		or enforcement of a security interest in, the account or chattel
9251	9068		paper; or
9252	9069		(2) provides that the assignment or transfer or the creation,
9253	9070		attachment, perfection, or enforcement of the security interest may
9254	9071
9255		-	HB2776 HFLR Page 182
9256		-	BOLD FACE denotes Committee Amendments. 1
	9072	+	Req. No. 6221 Page 182 1
9257	9073		2
9258	9074		3
9259	9075		4
9260	9076		5
9261	9077		6
9262	9078		7
9263	9079		8
9264	9080		9
9265	9081		10
9266	9082		11
9267	9083		12
9268	9084		13
9269	9085		14
9270	9086		15
9271	9087		16
9272	9088		17
9273	9089		18
9274	9090		19
9275	9091		20
9276	9092		21
9277	9093		22
9278	9094		23
9279	9095		24
9280	9096
9281	9097		give rise to a default, breach, right of recoupment, clai m, defense,
9282	9098		termination, right of termi nation, or remedy unde r the account or
9283	9099		chattel paper.
9284	9100		(g) Subject to subsection subsections (h) and (k) of this
9285	9101		section, an account debtor may not waive or vary its optio n under
9286	9102		paragraph (3) of subsection (b) of thi s section.
9287	9103		(h) This section is subject to law other than thi s article
9288	9104		which establishes a different rule for an account d ebtor who is an
9289	9105		individual and who incurred the obligation primarily for personal,
9290	9106		family, or household purposes.
9291	9107		(i) This section do es not apply to an assignment of a heal th-
9292	9108		care-insurance receivable.
9293	9109		(j) Subsections (d) and (f) of this section do not apply to a
9294	9110		security interest in an ownership interest in a ge neral partnership,
9295	9111		limited partnership, or limited liability company .
9296	9112		(k) Subsections (a), (b), (c), and (g) of this section do not
9297	9113		apply to a controllable account or controllable payment intangible.
9298	9114		SECTION 76. AMENDATORY 12A O.S. 2021, Section 1-9-408,
9299	9115		is amended to read as follows:
9300	9116		Section 1-9-408.
9301	9117		RESTRICTIONS ON ASSIGNMENT OF PROMISSORY
9302	9118		NOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND
9303	9119		CERTAIN GENERAL INTANGIBL ES INEFFECTIVE
9304	9120
9305		-	HB2776 HFLR Page 183
9306		-	BOLD FACE denotes Committee Amendments. 1
	9121	+	Req. No. 6221 Page 183 1
9307	9122		2
9308	9123		3
9309	9124		4
9310	9125		5
9311	9126		6
9312	9127		7
9313	9128		8
9314	9129		9
9315	9130		10
9316	9131		11
9317	9132		12
9318	9133		13
9319	9134		14
9320	9135		15
9321	9136		16
9322	9137		17
9323	9138		18
9324	9139		19
9325	9140		20
9326	9141		21
9327	9142		22
9328	9143		23
9329	9144		24
9330	9145
9331	9146		(a) Except as otherwise provided in subsection subsections (b)
9332	9147		and (f) of this section, a term in a promissory note or in an
9333	9148		agreement between an account debtor and a debtor which relates to a
9334	9149		health-care-insurance receivable or a general intangible, including
9335	9150		a contract, permit, licen se, or franchise, and which term prohibits,
9336	9151		restricts, or requires the consent of the person obligated on the
9337	9152		promissory note or the account debtor to, the assignme nt or transfer
9338	9153		of, or creation, attachment, or perfection of a sec urity interest
9339	9154		in, the promissory note, health-care-insurance receivable , or
9340	9155		general intangible, is ineffective to the extent that the term:
9341	9156		(1) would impair the creation, attachment, or pe rfection of a
9342	9157		security interest; or
9343	9158		(2) provides that the assignm ent or transfer or the cre ation,
9344	9159		attachment, or perfection of the securi ty interest may give rise to
9345	9160		a default, breach, right of recoupment, claim, defense, termination,
9346	9161		right of termination , or remedy under the promissory note, health-
9347	9162		care-insurance receivable, or general intangib le.
9348	9163		(b) Subsection (a) of this section applie s to a security
9349	9164		interest in a payment intangible or promissory note only if the
9350	9165		security interest arises out of a sale of the payment intangible or
9351	9166		promissory note, other than a sale p ursuant to a disposition u nder
9352	9167		Section 1-9-610 of this title or an accep tance of collateral under
9353	9168		Section 1-9-620 of this title.
9354	9169
9355		-	HB2776 HFLR Page 184
9356		-	BOLD FACE denotes Committee Amendments. 1
	9170	+	Req. No. 6221 Page 184 1
9357	9171		2
9358	9172		3
9359	9173		4
9360	9174		5
9361	9175		6
9362	9176		7
9363	9177		8
9364	9178		9
9365	9179		10
9366	9180		11
9367	9181		12
9368	9182		13
9369	9183		14
9370	9184		15
9371	9185		16
9372	9186		17
9373	9187		18
9374	9188		19
9375	9189		20
9376	9190		21
9377	9191		22
9378	9192		23
9379	9193		24
9380	9194
9381	9195		(c) A Except as otherwise provided in subsection (f) of this
9382	9196		section, a rule of law, statute, or regulation, that prohibits,
9383	9197		restricts, or requires the consent of a government, governmental
9384	9198		body or official, perso n obligated on a promissory note, or account
9385	9199		debtor to the assignment or transfer of, or creation of a security
9386	9200		interest in, a promissory note, health -care-insurance receivable , or
9387	9201		general intangible, including a contract, permit, lice nse, or
9388	9202		franchise between an account debtor and a debtor, is ineffective to
9389	9203		the extent that the rule of law, statute, or reg ulation:
9390	9204		(1) would impair the creation, attachment, or perfection of a
9391	9205		security interest; or
9392	9206		(2) provides that the assignment or t ransfer or the creati on,
9393	9207		attachment, or perfection of the security inter est may give rise to
9394	9208		a default, breach, right of rec oupment, claim, defense, termination,
9395	9209		right of termination, or remedy und er the promissory note, health-
9396	9210		care-insurance receivable, o r general intangible.
9397	9211		(d) To the extent that a term in a promissory not e or in an
9398	9212		agreement between an account debtor and a debtor which relates to a
9399	9213		health-care-insurance receivable or general in tangible or a rule of
9400	9214		law, statute, or regulation described in subsection (c) of this
9401	9215		section would be effective under law other th an this article but is
9402	9216		ineffective under subsection (a) or (c) of this section, the
9403	9217		creation, attachment, or perfection of a security interest in the
9404	9218
9405		-	HB2776 HFLR Page 185
9406		-	BOLD FACE denotes Committee Amendments. 1
	9219	+	Req. No. 6221 Page 185 1
9407	9220		2
9408	9221		3
9409	9222		4
9410	9223		5
9411	9224		6
9412	9225		7
9413	9226		8
9414	9227		9
9415	9228		10
9416	9229		11
9417	9230		12
9418	9231		13
9419	9232		14
9420	9233		15
9421	9234		16
9422	9235		17
9423	9236		18
9424	9237		19
9425	9238		20
9426	9239		21
9427	9240		22
9428	9241		23
9429	9242		24
9430	9243
9431	9244		promissory note, health-care-insurance receivable, or g eneral
9432	9245		intangible:
9433	9246		(1) is not enforceable against the person obligated on the
9434	9247		promissory note or the a ccount debtor;
9435	9248		(2) does not impose a duty or obligation on the person
9436	9249		obligated on the promissory note or the account debtor;
9437	9250		(3) does not require the person obligated on the promissory
9438	9251		note or the account debtor to recognize the security interest, pay
9439	9252		or render performance to the secured party, or accept payment or
9440	9253		performance from the secured party;
9441	9254		(4) does not entitle the secure d party to use or ass ign the
9442	9255		debtor's rights under the promissory note, health-care-insurance
9443	9256		receivable, or general intangi ble, including any related information
9444	9257		or materials furnished to the debt or in the transaction giving rise
9445	9258		to the promissory note, h ealth-care-insurance receivable, or general
9446	9259		intangible;
9447	9260		(5) does not entitle the secured party to use, assign, possess,
9448	9261		or have access to any trade secrets or confidential information of
9449	9262		the person obligated on the promissory note or the account debtor;
9450	9263		and
9451	9264		(6) does not entitle the secured party to enforce the security
9452	9265		interest in the promissory note, health -care-insurance receivable,
9453	9266		or general intangible.
9454	9267
9455		-	HB2776 HFLR Page 186
9456		-	BOLD FACE denotes Committee Amendments. 1
	9268	+	Req. No. 6221 Page 186 1
9457	9269		2
9458	9270		3
9459	9271		4
9460	9272		5
9461	9273		6
9462	9274		7
9463	9275		8
9464	9276		9
9465	9277		10
9466	9278		11
9467	9279		12
9468	9280		13
9469	9281		14
9470	9282		15
9471	9283		16
9472	9284		17
9473	9285		18
9474	9286		19
9475	9287		20
9476	9288		21
9477	9289		22
9478	9290		23
9479	9291		24
9480	9292
9481	9293		(e) Subsections (a) and (c) of this sec tion do not apply to the
9482	9294		assignment or transfer of or creat ion of a security int erest in:
9483	9295		(1) a claim or right to receive compensa tion for injuries or
9484	9296		sickness as described in 26 U.S .C., Section 104(a)(1) or (2), as
9485	9297		amended from time to time;
9486	9298		(2) a claim or right to receive benefits under a special needs
9487	9299		trust as described in 42 U.S .C., Section 1396p(d)(4), as amended
9488	9300		from time to time; or
9489	9301		(3) a structured settlement payment right a s defined in
9490	9302		paragraph 16 of Section 3239 of Title 12 of the Oklahoma Sta tutes to
9491	9303		the extent of any conflict between the Uniform Com mercial Code and
9492	9304		the Structured Settlement Protection Act of 2001.
9493	9305		(f) This section does not apply to a security interest i n an
9494	9306		ownership interest in a ge neral partnership, limited partnership, or
9495	9307		limited liability company.
9496	9308		(g) As used in this section, "promissory note" includes a
9497	9309		negotiable instrument that evidences chatt el paper.
9498	9310		SECTION 77. AMENDATORY 12A O.S. 2021, Section 1-9-509,
9499	9311		is amended to read as follows:
9500	9312		Section 1-9-509.
9501	9313		PERSONS ENTITLED TO FILE A RECORD
9502	9314		(a) A person may file an initial f inancing statement, amendment
9503	9315		that adds collateral covered by a fina ncing statement, or amendment
9504	9316		that adds a debtor to a financing statement only if:
9505	9317
9506		-	HB2776 HFLR Page 187
9507		-	BOLD FACE denotes Committee Amendments. 1
	9318	+	Req. No. 6221 Page 187 1
9508	9319		2
9509	9320		3
9510	9321		4
9511	9322		5
9512	9323		6
9513	9324		7
9514	9325		8
9515	9326		9
9516	9327		10
9517	9328		11
9518	9329		12
9519	9330		13
9520	9331		14
9521	9332		15
9522	9333		16
9523	9334		17
9524	9335		18
9525	9336		19
9526	9337		20
9527	9338		21
9528	9339		22
9529	9340		23
9530	9341		24
9531	9342
9532	9343		(1) the debtor auth orizes the filing in an authenticated a
9533	9344		signed record; or
9534	9345		(2) the person holds an ag ricultural lien that has become
9535	9346		effective at the time of filing and the financing statement covers
9536	9347		only collateral in which the person holds an a gricultural lien.
9537	9348		(b) By authenticating signing or becoming bound as a debtor by
9538	9349		a security agreement, a debto r or new debtor authorizes the filing
9539	9350		of an initial financing statem ent, and an amendment, covering:
9540	9351		(1) the collateral described in the security agreem ent; and
9541	9352		(2) property that becomes collateral under paragraph (2) of
9542	9353		subsection (a) of Section 1 -9-315 of this title, whether or not the
9543	9354		security agreement expressly cove rs proceeds.
9544	9355		(c) By acquiring collateral in which a security interest or
9545	9356		agricultural lien continues under paragraph (1) of subsection (a) of
9546	9357		Section 1-9-315 of this title, a debtor autho rizes the filing of an
9547	9358		initial financing statement, and an amendment , covering the
9548	9359		collateral and property that becomes collateral under paragraph (2)
9549	9360		of subsection (a) of Section 1-9-315 of this title.
9550	9361		(d) A person may file an amendment other than an ame ndment that
9551	9362		adds collateral covered by a financing statement or an a mendment
9552	9363		that adds a debtor to a financing statement only if:
9553	9364		(1) the secured party of record authorizes the filing; or
9554	9365		(2) the amendment is a termination statement for a financing
9555	9366		statement for which the secured party of record has failed to file
9556	9367
9557		-	HB2776 HFLR Page 188
9558		-	BOLD FACE denotes Committee Amendments. 1
	9368	+	Req. No. 6221 Page 188 1
9559	9369		2
9560	9370		3
9561	9371		4
9562	9372		5
9563	9373		6
9564	9374		7
9565	9375		8
9566	9376		9
9567	9377		10
9568	9378		11
9569	9379		12
9570	9380		13
9571	9381		14
9572	9382		15
9573	9383		16
9574	9384		17
9575	9385		18
9576	9386		19
9577	9387		20
9578	9388		21
9579	9389		22
9580	9390		23
9581	9391		24
9582	9392
9583	9393		or send a termination statement as req uired by subsection (a) or (c)
9584	9394		of Section 1-9-513 of this title, the debtor authorizes the filing,
9585	9395		and the termination statement indicates that the debtor a uthorized
9586	9396		it to be filed.
9587	9397		(e) If there is more than one secured par ty of record for a
9588	9398		financing statement, each secured party of record may authorize th e
9589	9399		filing of an amendment under subsection (d) of this section.
9590	9400		SECTION 78. AMENDATORY 12A O.S. 2021, Section 1 -9-513,
9591	9401		is amended to read as follows:
9592	9402		Section 1-9-513.
9593	9403		TERMINATION STATEMENT
9594	9404		(a) A secured party shall cause the secured party of record for
9595	9405		a financing statement to file a terminat ion statement for the
9596	9406		financing statement if the financing statement covers consumer goods
9597	9407		and:
9598	9408		(1) there is no obligation secured by the co llateral covered by
9599	9409		the financing statement and no commitment to make a n advance, incur
9600	9410		an obligation, or otherwise give value; or
9601	9411		(2) the debtor did not a uthorize the filing of the initial
9602	9412		financing statement.
9603	9413		(b) To comply with subsection (a) of this s ection, a secured
9604	9414		party shall cause the secured party of record to file the
9605	9415		termination statement:
9606	9416
9607		-	HB2776 HFLR Page 189
9608		-	BOLD FACE denotes Committee Amendments. 1
	9417	+	Req. No. 6221 Page 189 1
9609	9418		2
9610	9419		3
9611	9420		4
9612	9421		5
9613	9422		6
9614	9423		7
9615	9424		8
9616	9425		9
9617	9426		10
9618	9427		11
9619	9428		12
9620	9429		13
9621	9430		14
9622	9431		15
9623	9432		16
9624	9433		17
9625	9434		18
9626	9435		19
9627	9436		20
9628	9437		21
9629	9438		22
9630	9439		23
9631	9440		24
9632	9441
9633	9442		(1) within one (1) month after there is no obligation se cured
9634	9443		by the collateral covered by the financing statement and no
9635	9444		commitment to make an advance, inc ur an obligation, or otherwise
9636	9445		give value; or
9637	9446		(2) if earlier, within t wenty (20) days after the secured party
9638	9447		receives an authenticated a signed demand from a debtor.
9639	9448		(c) In cases not governed by subsection (a) o f this section,
9640	9449		within twenty (20) days af ter a secured party receives an
9641	9450		authenticated a signed demand from a debtor, the secured party shall
9642	9451		cause the secured party of record for a financing state ment to send
9643	9452		to the debtor a termination statement for the financin g statement or
9644	9453		file the termination statement in the filing office if:
9645	9454		(1) except in the case of a fina ncing statement covering
9646	9455		accounts or chattel paper that has been sold or goods that a re the
9647	9456		subject of a consignment, there is no obligation secured by the
9648	9457		collateral covered by the fin ancing statement and no commitment to
9649	9458		make an advance, incur an obligat ion, or otherwise give value;
9650	9459		(2) the financing statement covers accounts or chattel paper
9651	9460		that has been sold but as to which the account debtor or oth er
9652	9461		person obligated has discharge d its obligation;
9653	9462		(3) the financing statement covers goods that were t he subject
9654	9463		of a consignment to the debtor bu t are not in the debtor 's
9655	9464		possession; or
9656	9465
9657		-	HB2776 HFLR Page 190
9658		-	BOLD FACE denotes Committee Amendments. 1
	9466	+	Req. No. 6221 Page 190 1
9659	9467		2
9660	9468		3
9661	9469		4
9662	9470		5
9663	9471		6
9664	9472		7
9665	9473		8
9666	9474		9
9667	9475		10
9668	9476		11
9669	9477		12
9670	9478		13
9671	9479		14
9672	9480		15
9673	9481		16
9674	9482		17
9675	9483		18
9676	9484		19
9677	9485		20
9678	9486		21
9679	9487		22
9680	9488		23
9681	9489		24
9682	9490
9683	9491		(4) the debtor did not authorize the filing of the initial
9684	9492		financing statement.
9685	9493		(d) Except as otherwise provided in Section 1-9-510 of this
9686	9494		title, upon the filing of a t ermination statement with the filing
9687	9495		office, the financing statement to which the ter mination statement
9688	9496		relates ceases to be effective. Except as other wise provided in
9689	9497		Section 1-9-510 of this title, for purposes of subsection (g) of
9690	9498		Section 1-9-519, subsection (a) of Section 1-9-522, and subsection
9691	9499		(c) of Section 1-9-523 of this title, th e filing with the filing
9692	9500		office of a termination statement relating to a financing statement
9693	9501		that indicates that the debtor is a transmitting utility also causes
9694	9502		the effectiveness of the financing statement to lapse .
9695	9503		SECTION 79. AMENDATORY 12A O.S. 2021, Section 1 -9-601,
9696	9504		is amended to read as follows:
9697	9505		Section 1-9-601.
9698	9506		RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT;
9699	9507		CONSIGNOR OR BUYER OF ACCOUNTS, CHATTE L PAPER,
9700	9508		PAYMENT INTANGIBLES, OR PROMISSORY NOTES
9701	9509		(a) After default, a secured party has the rights provided in
9702	9510		this part and, except as otherwise provided in Section 1-9-602 of
9703	9511		this title, those provided by agreement of the parties. A secured
9704	9512		party:
9705	9513		(1) may reduce a claim to judgment, foreclose, or otherwise
9706	9514		enforce the claim, security interest, or agricultural lien by any
9707	9515
9708		-	HB2776 HFLR Page 191
9709		-	BOLD FACE denotes Committee Amendments. 1
	9516	+	Req. No. 6221 Page 191 1
9710	9517		2
9711	9518		3
9712	9519		4
9713	9520		5
9714	9521		6
9715	9522		7
9716	9523		8
9717	9524		9
9718	9525		10
9719	9526		11
9720	9527		12
9721	9528		13
9722	9529		14
9723	9530		15
9724	9531		16
9725	9532		17
9726	9533		18
9727	9534		19
9728	9535		20
9729	9536		21
9730	9537		22
9731	9538		23
9732	9539		24
9733	9540
9734	9541		available judicial procedure, but Se ction 686 of Title 12 of the
9735	9542		Oklahoma Statutes, shall not apply to the enforcement of a claim,
9736	9543		security interest, or agricultural lien under this article except as
9737	9544		provided in Section 1-9-604 of this title where the procedure is in
9738	9545		accordance with the righ ts of the parties with respect to real
9739	9546		property; and
9740	9547		(2) if the collateral is documents, may pr oceed either as to
9741	9548		the documents or as to the goods they cover.
9742	9549		(b) A secured party in possession of collateral or control of
9743	9550		collateral under Section 7-106, 1-9-104, 1-9-105, 1-9-105A, 1-9-106,
9744	9551		or 1-9-107, or 1-9-107A of this title has the rights and dut ies
9745	9552		provided in Section 1 -9-207 of this title.
9746	9553		(c) The rights under subsections (a) and (b) of this section
9747	9554		are cumulative and may be exercised simultaneously.
9748	9555		(d) Except as otherwise provided in subsection (g) of this
9749	9556		section and Section 1 -9-605 of this title, after default, a debtor
9750	9557		and an obligor have the rights provided in this part and by
9751	9558		agreement of the parties.
9752	9559		(e) If a secured party has reduced its cl aim to judgment, the
9753	9560		lien of any levy that may be made upon the collateral by virtue of
9754	9561		an execution based upon the judgment relates ba ck to the earliest
9755	9562		of:
9756	9563		(1) the date of perfec tion of the security interest or
9757	9564		agricultural lien in the collateral;
9758	9565
9759		-	HB2776 HFLR Page 192
9760		-	BOLD FACE denotes Committee Amendments. 1
	9566	+	Req. No. 6221 Page 192 1
9761	9567		2
9762	9568		3
9763	9569		4
9764	9570		5
9765	9571		6
9766	9572		7
9767	9573		8
9768	9574		9
9769	9575		10
9770	9576		11
9771	9577		12
9772	9578		13
9773	9579		14
9774	9580		15
9775	9581		16
9776	9582		17
9777	9583		18
9778	9584		19
9779	9585		20
9780	9586		21
9781	9587		22
9782	9588		23
9783	9589		24
9784	9590
9785	9591		(2) the date of filing a financing statement covering the
9786	9592		collateral; or
9787	9593		(3) any date specified in a statute under which the
9788	9594		agricultural lien was created.
9789	9595		(f) A sale pursuant to an e xecution is a foreclosure of the
9790	9596		security interest or agricultural lien by judicial procedure within
9791	9597		the meaning of this section. A secured party may purchase at the
9792	9598		sale and thereafter hold the collateral fre e of any other
9793	9599		requirements of this article.
9794	9600		(g) Except as otherwise provided in subsection (c) of Section
9795	9601		1-9-607 of this title, this part imposes no duties upon a secured
9796	9602		party that is a consignor or is a buyer of accounts, chattel paper,
9797	9603		payment intangibles, or promissory notes.
9798	9604		SECTION 80. AMENDATORY 12A O.S. 2021, Section 1 -9-605,
9799	9605		is amended to read as follows:
9800	9606		Section 1-9-605.
9801	9607		UNKNOWN DEBTOR OR SECONDARY OBLIGOR
9802	9608		A (a) Except as provided in subsection (b) of this section, a
9803	9609		secured party does not owe a duty based on its status as secured
9804	9610		party:
9805	9611		(1) to a person that is a debtor or obligor, unless the secured
9806	9612		party knows:
9807	9613		(A) that the person is a debtor or obligor;
9808	9614		(B) the identity of the person; and
9809	9615
9810		-	HB2776 HFLR Page 193
9811		-	BOLD FACE denotes Committee Amendments. 1
	9616	+	Req. No. 6221 Page 193 1
9812	9617		2
9813	9618		3
9814	9619		4
9815	9620		5
9816	9621		6
9817	9622		7
9818	9623		8
9819	9624		9
9820	9625		10
9821	9626		11
9822	9627		12
9823	9628		13
9824	9629		14
9825	9630		15
9826	9631		16
9827	9632		17
9828	9633		18
9829	9634		19
9830	9635		20
9831	9636		21
9832	9637		22
9833	9638		23
9834	9639		24
9835	9640
9836	9641		(C) how to communicate with the person; or
9837	9642		(2) to a secured party or lie nholder that has filed a financing
9838	9643		statement against a person, unless the secured party knows:
9839	9644		(A) that the person is a debtor; and
9840	9645		(B) the identity of the person.
9841	9646		(b) A secured party owes a duty based on its stat us as a
9842	9647		secured party to a person if, at the time the secured party obtains
9843	9648		control of collateral that is a controllable account, controllable
9844	9649		electronic record, or controllable payment intangible or at the time
9845	9650		the security interest attaches to the collateral, whichever is
9846	9651		later:
9847	9652		(1) the person is a debtor or obligor; and
9848	9653		(2) the secured party knows that the information in
9849	9654		subparagraph (A), (B), or (C) of paragraph (1) of subsection (a) of
9850	9655		this section relating to the person is not provided by the
9851	9656		collateral, a record attached to or logically as sociated with the
9852	9657		collateral, or the system in which the collateral is recorded .
9853	9658		SECTION 81. AMENDATORY 12A O.S. 2021, Section 1 -9-608,
9854	9659		is amended to read as follows:
9855	9660		Section 1-9-608.
9856	9661		APPLICATION OF PROCEEDS OF COLLECTION OR ENFORC EMENT;
9857	9662		LIABILITY FOR DEFICIENCY AND RIG HT TO SURPLUS
9858	9663		(a) If a security interest or agricult ural lien secures payment
9859	9664		or performance of an obligation, the following rules apply:
9860	9665
9861		-	HB2776 HFLR Page 194
9862		-	BOLD FACE denotes Committee Amendments. 1
	9666	+	Req. No. 6221 Page 194 1
9863	9667		2
9864	9668		3
9865	9669		4
9866	9670		5
9867	9671		6
9868	9672		7
9869	9673		8
9870	9674		9
9871	9675		10
9872	9676		11
9873	9677		12
9874	9678		13
9875	9679		14
9876	9680		15
9877	9681		16
9878	9682		17
9879	9683		18
9880	9684		19
9881	9685		20
9882	9686		21
9883	9687		22
9884	9688		23
9885	9689		24
9886	9690
9887	9691		(1) A secured party shall apply or pay over for application the
9888	9692		cash proceeds of collection or enforcement under th is section in the
9889	9693		following order to:
9890	9694		(A) the reasonable expenses of collection and enforcement
9891	9695		and, to the extent pr ovided for by agreement and not
9892	9696		prohibited by law, reasona ble attorney's fees and
9893	9697		legal expenses incurred by the secured party;
9894	9698		(B) the satisfaction of obligations secured by the
9895	9699		security interest or agricultural lien under which the
9896	9700		collection or enforcem ent is made; and
9897	9701		(C) the satisfaction of obligations secur ed by any
9898	9702		subordinate security interest in or other lien on the
9899	9703		collateral subject to the security interest or
9900	9704		agricultural lien under which the collection or
9901	9705		enforcement is made if the secured part y receives an
9902	9706		authenticated a signed demand for proceeds b efore
9903	9707		distribution of the proceeds is compl eted.
9904	9708		(2) If requested by a secured p arty, a holder of a subordinate
9905	9709		security interest or other lie n shall furnish reasonable proof of
9906	9710		the interest or lien within a reasonable time. Unless the holder
9907	9711		complies, the secured party need not comply with the h older's demand
9908	9712		under subparagraph (C) of paragraph (1) of this subsection.
9909	9713		(3) A secured party need not apply or pay over for application
9910	9714		noncash proceeds of collection and enforcement under this section
9911	9715
9912		-	HB2776 HFLR Page 195
9913		-	BOLD FACE denotes Committee Amendments. 1
	9716	+	Req. No. 6221 Page 195 1
9914	9717		2
9915	9718		3
9916	9719		4
9917	9720		5
9918	9721		6
9919	9722		7
9920	9723		8
9921	9724		9
9922	9725		10
9923	9726		11
9924	9727		12
9925	9728		13
9926	9729		14
9927	9730		15
9928	9731		16
9929	9732		17
9930	9733		18
9931	9734		19
9932	9735		20
9933	9736		21
9934	9737		22
9935	9738		23
9936	9739		24
9937	9740
9938	9741		unless the failure to do so would be commercially u nreasonable. A
9939	9742		secured party that app lies or pays over for application noncash
9940	9743		proceeds shall do so in a commercially reasonable manner.
9941	9744		(4) A secured party shall account to and pay a debtor for any
9942	9745		surplus, and the obligor is liable for any deficiency.
9943	9746		(b) If the underlying transaction is a sale of accounts,
9944	9747		chattel paper, payment intangibles, or pro missory notes, the debtor
9945	9748		is not entitled to any surplu s, and the obligor is not liable for
9946	9749		any deficiency.
9947	9750		SECTION 82. AMENDATORY 12A O.S. 2021, Section 1-9-611,
9948	9751		is amended to read as follows:
9949	9752		Section 1-9-611.
9950	9753		NOTIFICATION BEFORE DISPOSITION OF COLLATERAL
9951	9754		(a) In this section, "notification date" means the earlier of
9952	9755		the date on which:
9953	9756		(1) a secured party sends to the debtor and any secondary
9954	9757		obligor an authenticated a signed notification of disposition; or
9955	9758		(2) the debtor and any secondary obligor waive the right to
9956	9759		notification.
9957	9760		(b) Except as otherwise provided in subsection (d) of this
9958	9761		section, a secured party that disposes of collateral under Section
9959	9762		1-9-610 of this title shall send to the persons specified in
9960	9763		subsection (c) of this section a reasonable authenticated signed
9961	9764		notification of dispos ition.
9962	9765
9963		-	HB2776 HFLR Page 196
9964		-	BOLD FACE denotes Committee Amendments. 1
	9766	+	Req. No. 6221 Page 196 1
9965	9767		2
9966	9768		3
9967	9769		4
9968	9770		5
9969	9771		6
9970	9772		7
9971	9773		8
9972	9774		9
9973	9775		10
9974	9776		11
9975	9777		12
9976	9778		13
9977	9779		14
9978	9780		15
9979	9781		16
9980	9782		17
9981	9783		18
9982	9784		19
9983	9785		20
9984	9786		21
9985	9787		22
9986	9788		23
9987	9789		24
9988	9790
9989	9791		(c) To comply with subsection (b) of this section, the sec ured
9990	9792		party shall send an authenticated a signed notification of
9991	9793		disposition to:
9992	9794		(1) the debtor;
9993	9795		(2) any secondary obligor; and
9994	9796		(3) if the collateral is other than consumer goods:
9995	9797		(A) any other person from which the secured party has
9996	9798		received, before the notification date, an
9997	9799		authenticated a signed notification of a claim of an
9998	9800		interest in the collateral;
9999	9801		(B) any other secured party or lienholder that, ten (10)
10000	9802		days before the notification date, held a security
10001	9803		interest in or other lien on the collateral perfected
10002	9804		by the filing of a financing statement that:
10003	9805		(i) identified the collateral;
10004	9806		(ii) was indexed under the d ebtor's name as of that
10005	9807		date; and
10006	9808		(iii) was filed in the office in which to file a
10007	9809		financing statement against the d ebtor covering
10008	9810		the collateral as of that date; and
10009	9811		(C) any other secured party that, ten (10) d ays before the
10010	9812		notification date, held a secu rity interest in the
10011	9813		collateral perfected by compliance with a statute,
10012	9814
10013		-	HB2776 HFLR Page 197
10014		-	BOLD FACE denotes Committee Amendments. 1
	9815	+	Req. No. 6221 Page 197 1
10015	9816		2
10016	9817		3
10017	9818		4
10018	9819		5
10019	9820		6
10020	9821		7
10021	9822		8
10022	9823		9
10023	9824		10
10024	9825		11
10025	9826		12
10026	9827		13
10027	9828		14
10028	9829		15
10029	9830		16
10030	9831		17
10031	9832		18
10032	9833		19
10033	9834		20
10034	9835		21
10035	9836		22
10036	9837		23
10037	9838		24
10038	9839
10039	9840		regulation, or treaty described in subsectio n (a) of
10040	9841		Section 1-9-311 of this title.
10041	9842		(d) Subsection (b) of this section does not apply if t he
10042	9843		collateral is perishable or threatens to d ecline speedily in value
10043	9844		or is of a type customarily sold on a recognized m arket.
10044	9845		(e) A secured party complies with the requirement for
10045	9846		notification prescribed by subparagraph (B) of paragraph (3) of
10046	9847		subsection (c) of this section if:
10047	9848		(1) not later than twenty (20) days or earlier than thirty (30)
10048	9849		days before the notification date, the secured party requests, in a
10049	9850		commercially reasonable man ner, information concerning financing
10050	9851		statements indexed under the deb tor's name in the office indicated
10051	9852		in subparagraph (B) of paragraph (3) of subsection (c) of this
10052	9853		section; and
10053	9854		(2) before the notification date, the secured par ty:
10054	9855		(A) did not receive a response to the request for
10055	9856		information; or
10056	9857		(B) received a response t o the request for information and
10057	9858		sent an authenticated a signed notification of
10058	9859		disposition to each secured party or ot her lienholder
10059	9860		named in that response who se financing statement
10060	9861		covered the collateral.
10061	9862		SECTION 83. AMENDATORY 12A O.S. 2021, Section 1-9-613,
10062	9863		is amended to read as follows:
10063	9864
10064		-	HB2776 HFLR Page 198
10065		-	BOLD FACE denotes Committee Amendments. 1
	9865	+	Req. No. 6221 Page 198 1
10066	9866		2
10067	9867		3
10068	9868		4
10069	9869		5
10070	9870		6
10071	9871		7
10072	9872		8
10073	9873		9
10074	9874		10
10075	9875		11
10076	9876		12
10077	9877		13
10078	9878		14
10079	9879		15
10080	9880		16
10081	9881		17
10082	9882		18
10083	9883		19
10084	9884		20
10085	9885		21
10086	9886		22
10087	9887		23
10088	9888		24
10089	9889
10090	9890		Section 1-9-613.
10091	9891		CONTENTS AND FORM OF NOTIFICATION
10092	9892		BEFORE DISPOSITION OF COLLATERAL: GENERAL
10093	9893		(a) Except in a consumer-goods transaction, the following rules
10094	9894		apply:
10095	9895		(1) The contents of a notification of disposition are
10096	9896		sufficient if the noti fication:
10097	9897		(A) describes the debtor and the secured party;
10098	9898		(B) describes the collateral that is the subject of the
10099	9899		intended disposition;
10100	9900		(C) states the method of intended disposition;
10101	9901		(D) states that the debtor is entitled to an accounting of
10102	9902		the unpaid indebtedness and states the charge, if any,
10103	9903		for an accounting; and
10104	9904		(E) states the time and place of a public dispositio n or
10105	9905		the time after which any other dis position is to be
10106	9906		made.
10107	9907		(2) Whether the contents of a notification that lacks any of
10108	9908		the information specified in paragraph (1) of this section are
10109	9909		nevertheless sufficient is a question of fact.
10110	9910		(3) The contents of a notification providing substantially the
10111	9911		information specified in paragraph (1) of this section are
10112	9912		sufficient, even if the notification i ncludes:
10113	9913		(A) information not specified by that paragraph; or
10114	9914
10115		-	HB2776 HFLR Page 199
10116		-	BOLD FACE denotes Committee Amendments. 1
	9915	+	Req. No. 6221 Page 199 1
10117	9916		2
10118	9917		3
10119	9918		4
10120	9919		5
10121	9920		6
10122	9921		7
10123	9922		8
10124	9923		9
10125	9924		10
10126	9925		11
10127	9926		12
10128	9927		13
10129	9928		14
10130	9929		15
10131	9930		16
10132	9931		17
10133	9932		18
10134	9933		19
10135	9934		20
10136	9935		21
10137	9936		22
10138	9937		23
10139	9938		24
10140	9939
10141	9940		(B) minor errors that are not seriously misleading.
10142	9941		(4) A particular phrasing of the notifica tion is not required.
10143	9942		(5) The following f orm of notification and the form appearing
10144	9943		in paragraph (3) of subsection (a) of Section 1-9-614 of this title,
10145	9944		when completed in accordance with the instructions in subsection (b)
10146	9945		of this section and subsection (b) of Section 1-9-614 of this title,
10147	9946		each provides sufficient information:
10148	9947		NOTIFICATION OF DISPOSITION OF COLLATERAL
10149	9948		To: [Name of debtor, obligor, or other person to which the
10150	9949		notification is sent]
10151	9950		_________________________________ ___________________
10152	9951		________________________________________________ ____
10153	9952		From: [Name, address, and telephone number of secured party]
10154	9953		____________________________________________________
10155	9954		____________________________________________________
10156	9955		Name of Debtor(s):
10157	9956		[Include only if debtor(s) are not an addressee]
10158	9957		____________________________________________________
10159	9958		[For a public disposition:]
10160	9959		We will sell [or lease or license, as applicable] the [des cribe
10161	9960		collateral] __________________ [to the highest qualified bi dder] in
10162	9961		public as follows:
10163	9962		Day and Date: _________________
10164	9963		Time: _________________
10165	9964
10166		-	HB2776 HFLR Page 200
10167		-	BOLD FACE denotes Committee Amendments. 1
	9965	+	Req. No. 6221 Page 200 1
10168	9966		2
10169	9967		3
10170	9968		4
10171	9969		5
10172	9970		6
10173	9971		7
10174	9972		8
10175	9973		9
10176	9974		10
10177	9975		11
10178	9976		12
10179	9977		13
10180	9978		14
10181	9979		15
10182	9980		16
10183	9981		17
10184	9982		18
10185	9983		19
10186	9984		20
10187	9985		21
10188	9986		22
10189	9987		23
10190	9988		24
10191	9989
10192	9990		Place: _________________
10193	9991		[For a private disposition:]
10194	9992		We will sell [or lease or license, as applicabl e] the [describe
10195	9993		collateral] __________________ privately sometim e after [day and
10196	9994		date] ________________.
10197	9995		You are entitled to an acco unting of the unpaid indebtedness
10198	9996		secured by the property that we intend to sell [or lease or license,
10199	9997		as applicable] [for a charge of $_____________ ]. You may request
10200	9998		an accounting by calling us at [telephone number] ________________.
10201	9999		[End of Form]
10202	10000		NOTIFICATION OF DISPOSITION OF COLLATERAL
10203	10001		To: (Name of debtor, obligor, or other person to which the
10204	10002		notification is sent)
10205	10003		From: (Name, address, and telephone number of secured party)
10206	10004		{1} Name of any debtor that is not an addressee: (Name of each
10207	10005		debtor)
10208	10006		{2} We will sell (describe collateral) (to the highest qualified
10209	10007		bidder) at public sale. A sale could include a lease or lic ense.
10210	10008		The sale will be held as follows:
10211	10009		(Date)
10212	10010		(Time)
10213	10011		(Place)
10214	10012		{3} We will sell (describe collateral) at private sale sometime
10215	10013		after (date). A sale could include a lease or license.
10216	10014
10217		-	HB2776 HFLR Page 201
10218		-	BOLD FACE denotes Committee Amendments. 1
	10015	+	Req. No. 6221 Page 201 1
10219	10016		2
10220	10017		3
10221	10018		4
10222	10019		5
10223	10020		6
10224	10021		7
10225	10022		8
10226	10023		9
10227	10024		10
10228	10025		11
10229	10026		12
10230	10027		13
10231	10028		14
10232	10029		15
10233	10030		16
10234	10031		17
10235	10032		18
10236	10033		19
10237	10034		20
10238	10035		21
10239	10036		22
10240	10037		23
10241	10038		24
10242	10039
10243	10040		{4} You are entitled to an accounting of the unpaid indebtedness
10244	10041		secured by the property that we intend to sell or, as applicable,
10245	10042		lease or license.
10246	10043		{5} If you request an accounting, you must pay a charge of $
10247	10044		(amount).
10248	10045		{6} You may request an acco unting by calling us at (telephone
10249	10046		number).
10250	10047		[End of Form]
10251	10048		(b) The following instructions apply to the form of
10252	10049		notification in paragraph (5) of subsection (a) of this section:
10253	10050		(1) The instructions in this paragraph refer to the numbers in
10254	10051		braces before items in the form of notification in paragraph (5) of
10255	10052		subsection (a) of this section. Do not include the numbers or
10256	10053		braces in the notification. The numbers and braces are used only
10257	10054		for the purpose of these instructions.
10258	10055		(2) Include and complete item {1} o nly if there is a debtor
10259	10056		that is not an addressee of the notification and list the name or
10260	10057		names.
10261	10058		(3) Include and complete either item {2}, if the notifi cation
10262	10059		relates to a public disposition of the collateral, or item {3}, if
10263	10060		the notification relates to a private disposition of the collateral.
10264	10061		If item {2} is included, includ e the words "to the highest qualified
10265	10062		bidder" only if applicable.
10266	10063		(4) Include and complete items {4} and {6}.
10267	10064
10268		-	HB2776 HFLR Page 202
10269		-	BOLD FACE denotes Committee Amendments. 1
	10065	+	Req. No. 6221 Page 202 1
10270	10066		2
10271	10067		3
10272	10068		4
10273	10069		5
10274	10070		6
10275	10071		7
10276	10072		8
10277	10073		9
10278	10074		10
10279	10075		11
10280	10076		12
10281	10077		13
10282	10078		14
10283	10079		15
10284	10080		16
10285	10081		17
10286	10082		18
10287	10083		19
10288	10084		20
10289	10085		21
10290	10086		22
10291	10087		23
10292	10088		24
10293	10089
10294	10090		(5) Include and complete item {5} only if the sender will
10295	10091		charge the recipient for an accoun ting.
10296	10092		SECTION 84. AMENDATORY 12A O.S. 2021, Section 1 -9-614,
10297	10093		is amended to read as follows:
10298	10094		Section 1-9-614.
10299	10095		CONTENTS AND FORM OF NOTIFICATION BEFORE
10300	10096		DISPOSITION OF COLLATERAL: CONSUMER-GOODS TRANSACTION
10301	10097		(a) In a consumer-goods transaction, the following rules apply:
10302	10098		(1) A notification of disposition must provide the following
10303	10099		information:
10304	10100		(A) the information specified in paragraph (1) of
10305	10101		subsection (a) of Section 1-9-613 of this title;
10306	10102		(B) a description of any liability for a deficiency of the
10307	10103		person to which the notifica tion is sent;
10308	10104		(C) a telephone number from which the amount that must be
10309	10105		paid to the secured party to redeem the collateral
10310	10106		under Section 1-9-623 of this title is available; and
10311	10107		(D) a telephone number or mailing address from which
10312	10108		additional information con cerning the disposition and
10313	10109		the obligation secured is available.
10314	10110		(2) A particular phrasing of the notification is not required.
10315	10111		(3) The following form of notification, when completed in
10316	10112		accordance with the instructions in subsection (b) of this section,
10317	10113		provides sufficient information:
10318	10114
10319		-	HB2776 HFLR Page 203
10320		-	BOLD FACE denotes Committee Amendments. 1
	10115	+	Req. No. 6221 Page 203 1
10321	10116		2
10322	10117		3
10323	10118		4
10324	10119		5
10325	10120		6
10326	10121		7
10327	10122		8
10328	10123		9
10329	10124		10
10330	10125		11
10331	10126		12
10332	10127		13
10333	10128		14
10334	10129		15
10335	10130		16
10336	10131		17
10337	10132		18
10338	10133		19
10339	10134		20
10340	10135		21
10341	10136		22
10342	10137		23
10343	10138		24
10344	10139
10345	10140		[Name and address of secured party]
10346	10141		_______________________ _______________________
10347	10142		[Date]
10348	10143		_________________
10349	10144		NOTICE OF OUR PLAN TO SELL PROPERTY
10350	10145		[Name and address of any obligor who is also a debtor]
10351	10146		________________________________________________________________
10352	10147		Subject: [Identification of T ransaction]
10353	10148		____________________________________________________________ ____
10354	10149		We have your [describe collateral] __________ ______________,
10355	10150		because you broke promises in our agreement.
10356	10151		[For a public disposition:]
10357	10152		We will sell [describe collateral] __________ _____________ at publi c
10358	10153		sale. A sale could include a lease or license. The sale will be
10359	10154		held as follows:
10360	10155		Date: _________________________
10361	10156		Time: _________________________
10362	10157		Place: _________________________
10363	10158		You may attend the sale and bring bidders if you w ant.
10364	10159		[For a private disposition:]
10365	10160		We will sell [describe collateral] ___ ___________________ at
10366	10161		private sale sometime after [date] _________________. A sale could
10367	10162		include a lease or license.
10368	10163
10369		-	HB2776 HFLR Page 204
10370		-	BOLD FACE denotes Committee Amendments. 1
	10164	+	Req. No. 6221 Page 204 1
10371	10165		2
10372	10166		3
10373	10167		4
10374	10168		5
10375	10169		6
10376	10170		7
10377	10171		8
10378	10172		9
10379	10173		10
10380	10174		11
10381	10175		12
10382	10176		13
10383	10177		14
10384	10178		15
10385	10179		16
10386	10180		17
10387	10181		18
10388	10182		19
10389	10183		20
10390	10184		21
10391	10185		22
10392	10186		23
10393	10187		24
10394	10188
10395	10189		The money that we get from the sale (after paying our costs)
10396	10190		will reduce the amount you owe. If we get less money than you owe,
10397	10191		you [will or will not, as applicable] ____________________ ___ still
10398	10192		owe us the difference. If we get more money than you owe, you will
10399	10193		get the extra money, unless we must pay it to someone el se.
10400	10194		You can get the property back at any time before we sell it by
10401	10195		paying us the full amount you owe (not just the past du e payments),
10402	10196		including our expenses. To learn the exact amount you must pay,
10403	10197		call us at [telephone number] _________________.
10404	10198		If you want us to explain to you in writing how we have figured
10405	10199		the amount that you owe us, you may call us at [telephone number]
10406	10200		_______________ [or write us at [secured party's address]
10407	10201		________________________] and request a written explanation. [We
10408	10202		will charge you $______________ _ for the explanation if we sent you
10409	10203		another written explanation of the amount you owe us within the last
10410	10204		six months.]
10411	10205		If you need more information about the sale call us at
10412	10206		[telephone number]__________________] [or write us at [secur ed
10413	10207		party's address]_________________________________].
10414	10208		We are sending this notice to the following other people who
10415	10209		have an interest in [describe collateral] _____________________ or
10416	10210		who owe money under your agreement:
10417	10211		[Names of all other debtors and oblig ors, if any]
10418	10212		___________________________________________________________ _
10419	10213
10420		-	HB2776 HFLR Page 205
10421		-	BOLD FACE denotes Committee Amendments. 1
	10214	+	Req. No. 6221 Page 205 1
10422	10215		2
10423	10216		3
10424	10217		4
10425	10218		5
10426	10219		6
10427	10220		7
10428	10221		8
10429	10222		9
10430	10223		10
10431	10224		11
10432	10225		12
10433	10226		13
10434	10227		14
10435	10228		15
10436	10229		16
10437	10230		17
10438	10231		18
10439	10232		19
10440	10233		20
10441	10234		21
10442	10235		22
10443	10236		23
10444	10237		24
10445	10238
10446	10239		[End of Form]
10447	10240		(Name and address of secured party)
10448	10241		(Date)
10449	10242		NOTICE OF OUR PLAN TO SELL PROPERTY
10450	10243		(Name and address of any obligor who is also a debtor)
10451	10244		Subject: (Identify transaction)
10452	10245		We have your (describe collateral), because you broke promises
10453	10246		in our agreement.
10454	10247		{1} We will sell (describe collateral) at public sale. A sale
10455	10248		could include a lease or license. The sale will be held as follows:
10456	10249		(Date)
10457	10250		(Time)
10458	10251		(Place)
10459	10252		You may attend the sale and bring bidders if you want.
10460	10253		{2} We will sell (describe collateral) at private sale sometime
10461	10254		after (date). A sale could include a lease or license.
10462	10255		{3} The money that we get from the sale, after paying our costs,
10463	10256		will reduce the amount you owe. If we get less money than y ou owe,
10464	10257		you (will or will not, as applicable) stil l owe us the difference.
10465	10258		If we get more money tha n you owe, you will get the extra money,
10466	10259		unless we must pay it to someone else.
10467	10260		{4} You can get the property back at any time before we sell it
10468	10261		by paying us the full amount you owe, not just the past due
10469	10262
10470		-	HB2776 HFLR Page 206
10471		-	BOLD FACE denotes Committee Amendments. 1
	10263	+	Req. No. 6221 Page 206 1
10472	10264		2
10473	10265		3
10474	10266		4
10475	10267		5
10476	10268		6
10477	10269		7
10478	10270		8
10479	10271		9
10480	10272		10
10481	10273		11
10482	10274		12
10483	10275		13
10484	10276		14
10485	10277		15
10486	10278		16
10487	10279		17
10488	10280		18
10489	10281		19
10490	10282		20
10491	10283		21
10492	10284		22
10493	10285		23
10494	10286		24
10495	10287
10496	10288		payments, including our expenses. To learn the exact amount you
10497	10289		must pay, call us at (telephone number).
10498	10290		{5} If you want us to explain to you in (writing) (writing or in
10499	10291		(description of electronic record) (description of electronic
10500	10292		record) how we have figu red the amount that you owe us, {6} Call us
10501	10293		at (telephone number) (or) (write us at (secured party's address))
10502	10294		(or contact us by (description of electronic communication method))
10503	10295		{7} and request (a written exp lanation) (a written explanation or an
10504	10296		explanation in (description of electronic record)) (an explana tion
10505	10297		in (description of electronic record)).
10506	10298		{8} We will charge you $ (amount) for the explanation if we sent
10507	10299		you another written explanation of the amount you owe us within the
10508	10300		last six months.
10509	10301		{9} If you need more information about the sale (call us at
10510	10302		(telephone number)) (or) (write us at (secured party's address)) (or
10511	10303		contact us by (description of electronic communication method)).
10512	10304		{10} We are sending this notice to the following other people
10513	10305		who have an interest in (describe collateral) or who owe mone y under
10514	10306		your agreement:
10515	10307		(Names of all other debtors and obligors, if any)
10516	10308		[End of Form]
10517	10309		(4) A notification in the form of paragraph (3) of this section
10518	10310		subsection is sufficient, even if additional information appears at
10519	10311		the end of the form.
10520	10312
10521		-	HB2776 HFLR Page 207
10522		-	BOLD FACE denotes Committee Amendments. 1
	10313	+	Req. No. 6221 Page 207 1
10523	10314		2
10524	10315		3
10525	10316		4
10526	10317		5
10527	10318		6
10528	10319		7
10529	10320		8
10530	10321		9
10531	10322		10
10532	10323		11
10533	10324		12
10534	10325		13
10535	10326		14
10536	10327		15
10537	10328		16
10538	10329		17
10539	10330		18
10540	10331		19
10541	10332		20
10542	10333		21
10543	10334		22
10544	10335		23
10545	10336		24
10546	10337
10547	10338		(5) A notification in th e form of paragraph (3) of this section
10548	10339		subsection is sufficient, even if it includes errors in information
10549	10340		not required by paragraph (1) of this section subsection, unless the
10550	10341		error is misleading with respect to rights arising under this
10551	10342		article.
10552	10343		(6) If a notification under t his section is not in the form of
10553	10344		paragraph (3) of this section subsection, law other than this
10554	10345		article determines the effect of inc luding information not required
10555	10346		by paragraph (1) of this section subsection.
10556	10347		(b) The following instructions apply to the form of
10557	10348		notification in paragraph (3) subsection (a) of this section:
10558	10349		(1) The instructions in this subsection refer to the numbers in
10559	10350		braces before items in the form of notif ication in paragraph (3) of
10560	10351		subsection (a) of this section. Do not include the numbers or
10561	10352		braces in the notification. The numbers and braces are used only
10562	10353		for the purpose of these instructions.
10563	10354		(2) Include and complete either item {1}, if the notification
10564	10355		relates to a public disposition of the co llateral, or item {2}, if
10565	10356		the notification relates to a private disposition of the collateral.
10566	10357		(3) Include and complete items {3}, {4}, {5}, {6}, and {7}.
10567	10358		(4) In item {5}, include and complete any one of the three
10568	10359		alternative methods for the explanation — writing, writing or
10569	10360		electronic record, or el ectronic record.
10570	10361
10571		-	HB2776 HFLR Page 208
10572		-	BOLD FACE denotes Committee Amendments. 1
	10362	+	Req. No. 6221 Page 208 1
10573	10363		2
10574	10364		3
10575	10365		4
10576	10366		5
10577	10367		6
10578	10368		7
10579	10369		8
10580	10370		9
10581	10371		10
10582	10372		11
10583	10373		12
10584	10374		13
10585	10375		14
10586	10376		15
10587	10377		16
10588	10378		17
10589	10379		18
10590	10380		19
10591	10381		20
10592	10382		21
10593	10383		22
10594	10384		23
10595	10385		24
10596	10386
10597	10387		(5) In item {6}, include the telephone number. In addition,
10598	10388		the sender may include and complete either or both of the two
10599	10389		additional alternative methods of communication - writing or
10600	10390		electronic communication - for the recipient of the notifi cation to
10601	10391		communicate with the sender. Neither of the two additional methods
10602	10392		of communication is required to be included .
10603	10393		(6) In item {7}, include and complete the method or methods for
10604	10394		the explanation — writing, writing or electronic record, or
10605	10395		electronic record — included in item {5}.
10606	10396		(7) Include and complete item {8} only if a written explanation
10607	10397		is included in item {5 } as a method for communicating the
10608	10398		explanation and the sender will charge the recipient for an other
10609	10399		written explanation.
10610	10400		(8) In item {9}, include either the telephone number or the
10611	10401		address or both the telephone number and the address. In addition,
10612	10402		the sender may include and complete the additional method of
10613	10403		communication - electronic communication - for the recipient of the
10614	10404		notification to communicate with the sender. The additional method
10615	10405		of electronic communication is not required to be included.
10616	10406		(9) If item {10} does not apply, insert "None" after
10617	10407		"agreement:".
10618	10408		SECTION 85. AMENDATORY 12A O.S. 2021, Section 1-9-615,
10619	10409		is amended to read as follows:
10620	10410		Section 1-9-615.
10621	10411
10622		-	HB2776 HFLR Page 209
10623		-	BOLD FACE denotes Committee Amendments. 1
	10412	+	Req. No. 6221 Page 209 1
10624	10413		2
10625	10414		3
10626	10415		4
10627	10416		5
10628	10417		6
10629	10418		7
10630	10419		8
10631	10420		9
10632	10421		10
10633	10422		11
10634	10423		12
10635	10424		13
10636	10425		14
10637	10426		15
10638	10427		16
10639	10428		17
10640	10429		18
10641	10430		19
10642	10431		20
10643	10432		21
10644	10433		22
10645	10434		23
10646	10435		24
10647	10436
10648	10437		APPLICATION OF PROCEEDS OF DISPOSITION;
10649	10438		LIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS
10650	10439		(a) A secured party shall apply or pay o ver for application the
10651	10440		cash proceeds of disposition pursuant to Section 1-9-610 of this
10652	10441		title in the following order to:
10653	10442		(1) the reasonable expenses of retaking, holding, preparing for
10654	10443		disposition, processing, and disposing, and, to the extent provided
10655	10444		for by agreement and not pr ohibited by law, reasonable attorney's
10656	10445		fees and legal expenses incurred by the secured party;
10657	10446		(2) the satisfaction of ob ligations secured by the security
10658	10447		interest or agricultural lien under which the disposition is made;
10659	10448		(3) the satisfaction of obligatio ns secured by any subordinate
10660	10449		security interest in or other subordinate lien on the collateral if:
10661	10450		(A) the secured party receives from the holder of the
10662	10451		subordinate security interest or other lien an
10663	10452		authenticated a signed demand for proceeds before
10664	10453		distribution of the proceeds is completed; and
10665	10454		(B) in a case in which a consignor has an interest in the
10666	10455		collateral, the subord inate security interest or other
10667	10456		lien is senior to the interest of the consignor; and
10668	10457		(4) a secured party th at is a consignor of the collateral if
10669	10458		the secured party receives from the consignor an authenticated a
10670	10459		signed demand for proceeds before distribut ion of the proceeds is
10671	10460		completed.
10672	10461
10673		-	HB2776 HFLR Page 210
10674		-	BOLD FACE denotes Committee Amendments. 1
	10462	+	Req. No. 6221 Page 210 1
10675	10463		2
10676	10464		3
10677	10465		4
10678	10466		5
10679	10467		6
10680	10468		7
10681	10469		8
10682	10470		9
10683	10471		10
10684	10472		11
10685	10473		12
10686	10474		13
10687	10475		14
10688	10476		15
10689	10477		16
10690	10478		17
10691	10479		18
10692	10480		19
10693	10481		20
10694	10482		21
10695	10483		22
10696	10484		23
10697	10485		24
10698	10486
10699	10487		(b) If requested by a secured party, a holder of a subordinate
10700	10488		security interest or other lien shall furnish re asonable proof of
10701	10489		the interest or lien within a reasonable time. Unless the holder
10702	10490		does so, the secured party need not comply with the holder 's demand
10703	10491		under paragraph (3) of subsection (a) of this section.
10704	10492		(c) A secured party need not apply or pay over f or application
10705	10493		noncash proceeds of disposition pursuant to Section 1-9-610 of this
10706	10494		title unless the failure to do so would be commercially
10707	10495		unreasonable. A secured party that applies or pays over for
10708	10496		application noncash proceeds shall do so in a commercial ly
10709	10497		reasonable manner.
10710	10498		(d) If the security interest under which a disposition is made
10711	10499		secures payment or perfo rmance of an obligation, after making the
10712	10500		payments and applications required by subsection (a) of this sectio n
10713	10501		and permitted by subsection (c) of this section:
10714	10502		(1) unless paragraph (4) of subsection (a) of this section
10715	10503		requires the secured party to apply or pay over cash proceeds to a
10716	10504		consignor, the secured party shall account to and pay a debtor for
10717	10505		any surplus; and
10718	10506		(2) the obligor is liable for any deficiency.
10719	10507		(e) If the underlying transaction is a sale of accounts,
10720	10508		tangible chattel paper, payment int angibles, or promissory notes:
10721	10509		(1) the debtor is not entitled to any surplus; and
10722	10510		(2) the obligor is not li able for any deficiency.
10723	10511
10724		-	HB2776 HFLR Page 211
10725		-	BOLD FACE denotes Committee Amendments. 1
	10512	+	Req. No. 6221 Page 211 1
10726	10513		2
10727	10514		3
10728	10515		4
10729	10516		5
10730	10517		6
10731	10518		7
10732	10519		8
10733	10520		9
10734	10521		10
10735	10522		11
10736	10523		12
10737	10524		13
10738	10525		14
10739	10526		15
10740	10527		16
10741	10528		17
10742	10529		18
10743	10530		19
10744	10531		20
10745	10532		21
10746	10533		22
10747	10534		23
10748	10535		24
10749	10536
10750	10537		(f) The surplus or deficiency following a disposition is
10751	10538		calculated based on the amount of proceeds that would have been
10752	10539		realized in a disposition complying with this part to a transferee
10753	10540		other than the secured party, a person rel ated to the secured party,
10754	10541		or a secondary obligor if:
10755	10542		(1) the transferee in the disposition is the secured party, a
10756	10543		person related to the secured party, or a secondary obligor; and
10757	10544		(2) the amount of proceeds of the disposition is significantly
10758	10545		below the range of proceeds that a complying di sposition to a person
10759	10546		other than the secured party, a person related to the secured party,
10760	10547		or a secondary obligor would have brought.
10761	10548		(g) A secured party t hat receives cash proceeds of a
10762	10549		disposition in good faith and w ithout knowledge that the receipt
10763	10550		violates the rights of the holder of a security interest or other
10764	10551		lien that is not subordinate to the security in terest or
10765	10552		agricultural lien under which the di sposition is made:
10766	10553		(1) takes the cash proceeds free of the sec urity interest or
10767	10554		other lien;
10768	10555		(2) is not obligated to apply the proceeds of the disposition
10769	10556		to the satisfaction of obligations secured by the secu rity interest
10770	10557		or other lien; and
10771	10558		(3) is not obligated to account to or pay the holder of the
10772	10559		security interest or other lien for any surplus.
10773	10560
10774		-	HB2776 HFLR Page 212
10775		-	BOLD FACE denotes Committee Amendments. 1
	10561	+	Req. No. 6221 Page 212 1
10776	10562		2
10777	10563		3
10778	10564		4
10779	10565		5
10780	10566		6
10781	10567		7
10782	10568		8
10783	10569		9
10784	10570		10
10785	10571		11
10786	10572		12
10787	10573		13
10788	10574		14
10789	10575		15
10790	10576		16
10791	10577		17
10792	10578		18
10793	10579		19
10794	10580		20
10795	10581		21
10796	10582		22
10797	10583		23
10798	10584		24
10799	10585
10800	10586		SECTION 86. AMENDATORY 12A O.S. 2021, Section 1-9-616,
10801	10587		is amended to read as follows:
10802	10588		Section 1-9-616.
10803	10589		EXPLANATION OF CALCULATION O F SURPLUS OR DEFICIENCY
10804	10590		(a) In this section:
10805	10591		(1) "Explanation" means a writing record that:
10806	10592		(A) states the amount of the surplus or deficiency;
10807	10593		(B) provides an explanation in accordance with subsection
10808	10594		(c) of this section of how the secured party
10809	10595		calculated the surplus or deficiency;
10810	10596		(C) states, if applicable, that fu ture debits, credits,
10811	10597		charges, including additional credit service charges
10812	10598		or interest, rebates, and expenses may affect the
10813	10599		amount of the surplus o r deficiency; and
10814	10600		(D) provides a telephone number or mailing address from
10815	10601		which additional information conce rning the
10816	10602		transaction is available.
10817	10603		(2) "Request" means a record:
10818	10604		(A) authenticated signed by a debtor or consumer obligor;
10819	10605		(B) requesting that the recipient provide an explanation;
10820	10606		and
10821	10607		(C) sent after disposition of the collateral under Section
10822	10608		1-9-610 of this title.
10823	10609
10824		-	HB2776 HFLR Page 213
10825		-	BOLD FACE denotes Committee Amendments. 1
	10610	+	Req. No. 6221 Page 213 1
10826	10611		2
10827	10612		3
10828	10613		4
10829	10614		5
10830	10615		6
10831	10616		7
10832	10617		8
10833	10618		9
10834	10619		10
10835	10620		11
10836	10621		12
10837	10622		13
10838	10623		14
10839	10624		15
10840	10625		16
10841	10626		17
10842	10627		18
10843	10628		19
10844	10629		20
10845	10630		21
10846	10631		22
10847	10632		23
10848	10633		24
10849	10634
10850	10635		(b) In a consumer-goods transaction in which the debtor is
10851	10636		entitled to a surplus or a consumer obligor is liable for a
10852	10637		deficiency under Section 1-9-615 of this title, the secur ed party
10853	10638		shall:
10854	10639		(1) send an explanation to the debtor or consumer obligor, as
10855	10640		applicable, after the dis position and:
10856	10641		(A) before or when the secured party accounts to the
10857	10642		debtor and pays any surplus or first makes written
10858	10643		demand in a record on the consumer obligor after the
10859	10644		disposition for payment of the deficiency; and
10860	10645		(B) within fourteen (14) days after re ceipt of a request;
10861	10646		or
10862	10647		(2) in the case of a consumer obligor who is liable for a
10863	10648		deficiency, within fourteen (14) days after receipt of a request,
10864	10649		send to the consumer obligor a record waiving the secured party 's
10865	10650		right to a deficiency.
10866	10651		(c) To comply with subparagraph (B) of paragraph (1) of
10867	10652		subsection (a) of this section, a writing an explanation must
10868	10653		provide the following information in the following o rder:
10869	10654		(1) the aggregate amount of obligations secured by the secu rity
10870	10655		interest under which the disposit ion was made, and, if the amount
10871	10656		reflects a rebate of unearned interest or credit service charge, an
10872	10657		indication of that fact, calculated as of a specifi ed date:
10873	10658
10874		-	HB2776 HFLR Page 214
10875		-	BOLD FACE denotes Committee Amendments. 1
	10659	+	Req. No. 6221 Page 214 1
10876	10660		2
10877	10661		3
10878	10662		4
10879	10663		5
10880	10664		6
10881	10665		7
10882	10666		8
10883	10667		9
10884	10668		10
10885	10669		11
10886	10670		12
10887	10671		13
10888	10672		14
10889	10673		15
10890	10674		16
10891	10675		17
10892	10676		18
10893	10677		19
10894	10678		20
10895	10679		21
10896	10680		22
10897	10681		23
10898	10682		24
10899	10683
10900	10684		(A) if the secured party takes or receives possession of
10901	10685		the collateral after default, not more than thirty-
10902	10686		five (35) days before the secured party takes or
10903	10687		receives possession; or
10904	10688		(B) if the secured party takes or receives possession of
10905	10689		the collateral before default or does not take
10906	10690		possession of the collateral , not more than thirty -
10907	10691		five (35) days before the disposition;
10908	10692		(2) the amount of proceeds of the disposition;
10909	10693		(3) the aggregate amount of the obligations after deducting the
10910	10694		amount of proceeds;
10911	10695		(4) the amount, in the aggregate or by type, and types of
10912	10696		expenses, including expenses of retaking , holding, preparing for
10913	10697		disposition, processing, and disposing of the collateral, and
10914	10698		attorney's fees secured by the collateral which are known to the
10915	10699		secured party and relate to the current disposition;
10916	10700		(5) the amount, in the aggregate or by type, and t ypes of
10917	10701		credits, including rebates of interest or credit service charges, to
10918	10702		which the obligor is known to be entitled and which are not
10919	10703		reflected in the amount in paragraph (1) of this subsection; and
10920	10704		(6) the amount of the surplus or deficiency.
10921	10705		(d) A particular phrasing of the explanation is not required.
10922	10706		An explanation complying substantially wi th the requirements of
10923	10707
10924		-	HB2776 HFLR Page 215
10925		-	BOLD FACE denotes Committee Amendments. 1
	10708	+	Req. No. 6221 Page 215 1
10926	10709		2
10927	10710		3
10928	10711		4
10929	10712		5
10930	10713		6
10931	10714		7
10932	10715		8
10933	10716		9
10934	10717		10
10935	10718		11
10936	10719		12
10937	10720		13
10938	10721		14
10939	10722		15
10940	10723		16
10941	10724		17
10942	10725		18
10943	10726		19
10944	10727		20
10945	10728		21
10946	10729		22
10947	10730		23
10948	10731		24
10949	10732
10950	10733		subsection (a) of this section i s sufficient, even if it includes
10951	10734		minor errors that are not seriou sly misleading.
10952	10735		(e) A debtor or consu mer obligor is entitled without charge to
10953	10736		one response to a request under this section during any six-month
10954	10737		period in which the secured party did not se nd to the debtor or
10955	10738		consumer obligor an explanation pursuant to pa ragraph (1) of
10956	10739		subsection (b) of this section. The secured party may require
10957	10740		payment of a charge not exceeding Twenty-five Dollars ($25.00) for
10958	10741		each additional response.
10959	10742		SECTION 87. AMENDATORY 12A O.S. 2021, Section 1 -9-619,
10960	10743		is amended to read as follows:
10961	10744		Section 1-9-619.
10962	10745		TRANSFER OF RECORD OR LEGAL TITLE
10963	10746		(a) In this section, "transfer statement" means a record
10964	10747		authenticated signed by a secured party stating:
10965	10748		(1) that the debtor has defaulted in connection with an
10966	10749		obligation secured by specified collateral ;
10967	10750		(2) that the secured party has exercised its post-default
10968	10751		remedies with respect to the collateral;
10969	10752		(3) that, by reason of the exercise, a transferee has acquired
10970	10753		the rights of the debtor in the collateral; and
10971	10754		(4) the name and mailing address of the s ecured party, debtor,
10972	10755		and transferee.
10973	10756
10974		-	HB2776 HFLR Page 216
10975		-	BOLD FACE denotes Committee Amendments. 1
	10757	+	Req. No. 6221 Page 216 1
10976	10758		2
10977	10759		3
10978	10760		4
10979	10761		5
10980	10762		6
10981	10763		7
10982	10764		8
10983	10765		9
10984	10766		10
10985	10767		11
10986	10768		12
10987	10769		13
10988	10770		14
10989	10771		15
10990	10772		16
10991	10773		17
10992	10774		18
10993	10775		19
10994	10776		20
10995	10777		21
10996	10778		22
10997	10779		23
10998	10780		24
10999	10781
11000	10782		(b) A transfer statement entitles the transferee to the
11001	10783		transfer of record of all rights of the debtor in the collateral
11002	10784		specified in the statement in any official filing, recording,
11003	10785		registration, or certificate -of-title system covering the
11004	10786		collateral. If a transfer statement is presented with the
11005	10787		applicable fee and re quest form to the official or office
11006	10788		responsible for maintainin g the system, the official or office
11007	10789		shall:
11008	10790		(1) accept the transfer statement;
11009	10791		(2) promptly amend its records to reflect the transfer; and
11010	10792		(3) if applicable, issue a new appropriate certific ate of title
11011	10793		in the name of the transferee.
11012	10794		(c) A transfer of the record or legal title to collateral to a
11013	10795		secured party under subsection (b) of this s ection or otherwise is
11014	10796		not of itself a disposition of collateral under this article and
11015	10797		does not of itself relieve the secured party of its duties under
11016	10798		this article.
11017	10799		SECTION 88. AMENDATORY 12A O.S. 2021 , Section 1-9-620,
11018	10800		is amended to read a s follows:
11019	10801		Section 1-9-620.
11020	10802		ACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION
11021	10803		OF OBLIGATION; COMPULSORY DISPOSITION OF COLLATERAL
11022	10804
11023		-	HB2776 HFLR Page 217
11024		-	BOLD FACE denotes Committee Amendments. 1
	10805	+	Req. No. 6221 Page 217 1
11025	10806		2
11026	10807		3
11027	10808		4
11028	10809		5
11029	10810		6
11030	10811		7
11031	10812		8
11032	10813		9
11033	10814		10
11034	10815		11
11035	10816		12
11036	10817		13
11037	10818		14
11038	10819		15
11039	10820		16
11040	10821		17
11041	10822		18
11042	10823		19
11043	10824		20
11044	10825		21
11045	10826		22
11046	10827		23
11047	10828		24
11048	10829
11049	10830		(a) Except as otherwise provided in subsection (g) of this
11050	10831		section, a secured party may accept collateral in full or p artial
11051	10832		satisfaction of the obligation it secures only if:
11052	10833		(1) the debtor consents to the acceptance under sub section (c)
11053	10834		of this section;
11054	10835		(2) the secured party does not receive, within t he time set
11055	10836		forth in subsection (d) of this section, a notification of objection
11056	10837		to the proposal authenticated signed by:
11057	10838		(A) a person to which the secured party was required to
11058	10839		send a proposal under Section 1 -9-621 of this title;
11059	10840		or
11060	10841		(B) any other person, other than the debtor, holdi ng an
11061	10842		interest in the collateral subordi nate to the security
11062	10843		interest that is the subject of the proposal;
11063	10844		(3) if the collateral is consumer goods, t he collateral is not
11064	10845		in the possession of the debtor when the debtor consents to the
11065	10846		acceptance; and
11066	10847		(4) subsection (e) of this section does not require the secured
11067	10848		party to dispose of the collateral or the debtor waives the
11068	10849		requirement pursuant to Sectio n 1-9-624 of this title.
11069	10850		(b) A purported or a pparent acceptance of collateral under this
11070	10851		section is ineffective unless:
11071	10852		(1) the secured party co nsents to the acceptance in an
11072	10853		authenticated a signed record or sends a proposal to the debtor; and
11073	10854
11074		-	HB2776 HFLR Page 218
11075		-	BOLD FACE denotes Committee Amendments. 1
	10855	+	Req. No. 6221 Page 218 1
11076	10856		2
11077	10857		3
11078	10858		4
11079	10859		5
11080	10860		6
11081	10861		7
11082	10862		8
11083	10863		9
11084	10864		10
11085	10865		11
11086	10866		12
11087	10867		13
11088	10868		14
11089	10869		15
11090	10870		16
11091	10871		17
11092	10872		18
11093	10873		19
11094	10874		20
11095	10875		21
11096	10876		22
11097	10877		23
11098	10878		24
11099	10879
11100	10880		(2) the conditions of subsection (a) of this section ar e met.
11101	10881		(c) For purposes of this section:
11102	10882		(1) a debtor consents to an acceptance of collateral in p artial
11103	10883		satisfaction of the obligation it secures only if the debtor agrees
11104	10884		to the terms of the acceptance in a record authenticated signed
11105	10885		after default; and
11106	10886		(2) a debtor consents to an acceptance of collateral in f ull
11107	10887		satisfaction of the obligation it se cures only if the debtor agrees
11108	10888		to the terms of the acceptance in a record authenticated signed
11109	10889		after default or the secured party:
11110	10890		(A) sends to the debtor after default a proposal that is
11111	10891		unconditional or subject on ly to a condition that
11112	10892		collateral not in the possession of the secured party
11113	10893		be preserved or maintained;
11114	10894		(B) in the proposal, proposes to accept colla teral in full
11115	10895		satisfaction of the obligation i t secures; and
11116	10896		(C) does not receive a notification of object ion
11117	10897		authenticated signed by the debtor within twenty (20)
11118	10898		days after the proposal is sent.
11119	10899		(d) To be effective under paragraph (2) of subsection (a) of
11120	10900		this section, a notification of objection m ust be received by the
11121	10901		secured party:
11122	10902
11123		-	HB2776 HFLR Page 219
11124		-	BOLD FACE denotes Committee Amendments. 1
	10903	+	Req. No. 6221 Page 219 1
11125	10904		2
11126	10905		3
11127	10906		4
11128	10907		5
11129	10908		6
11130	10909		7
11131	10910		8
11132	10911		9
11133	10912		10
11134	10913		11
11135	10914		12
11136	10915		13
11137	10916		14
11138	10917		15
11139	10918		16
11140	10919		17
11141	10920		18
11142	10921		19
11143	10922		20
11144	10923		21
11145	10924		22
11146	10925		23
11147	10926		24
11148	10927
11149	10928		(1) in the case of a person to which the proposal was sent
11150	10929		pursuant to Section 1-9-621 of this title, within twenty (20) days
11151	10930		after notification was sent to that person; a nd
11152	10931		(2) in other cases:
11153	10932		(A) within twenty (20) days after the last notificatio n
11154	10933		was sent pursuant to Secti on 1-9-621 of this title; or
11155	10934		(B) if a notification was not sent, before the debtor
11156	10935		consents to the acceptance under subsection (c) of
11157	10936		this section.
11158	10937		(e) A secured party that has taken possession o f collateral
11159	10938		shall dispose of the collateral pursuant to Sec tion 1-9-610 of this
11160	10939		title within the time specified in subsection (f) of this section
11161	10940		if:
11162	10941		(1) Sixty percent (60%) of the cash price has been paid in the
11163	10942		case of a purchase-money security interes t in consumer goods; or
11164	10943		(2) Sixty percent (60%) of the prin cipal amount of the
11165	10944		obligation secured h as been paid in the case of a non-purchase-money
11166	10945		security interest in consumer goods.
11167	10946		(f) To comply with subs ection (e) of this section, the secured
11168	10947		party shall dispose of the collateral:
11169	10948		(1) within ninety (90) day s after taking possession; or
11170	10949		(2) within any longer period to which the debtor and all
11171	10950		secondary obligors have agreed in an agreement to that effect
11172	10951		entered into and authenticated signed after default.
11173	10952
11174		-	HB2776 HFLR Page 220
11175		-	BOLD FACE denotes Committee Amendments. 1
	10953	+	Req. No. 6221 Page 220 1
11176	10954		2
11177	10955		3
11178	10956		4
11179	10957		5
11180	10958		6
11181	10959		7
11182	10960		8
11183	10961		9
11184	10962		10
11185	10963		11
11186	10964		12
11187	10965		13
11188	10966		14
11189	10967		15
11190	10968		16
11191	10969		17
11192	10970		18
11193	10971		19
11194	10972		20
11195	10973		21
11196	10974		22
11197	10975		23
11198	10976		24
11199	10977
11200	10978		(g) In a consumer transa ction, a secured party may not accept
11201	10979		collateral in partial satisfac tion of the obligation it secures.
11202	10980		SECTION 89. AMENDATORY 12A O.S. 2021, Section 1 -9-621,
11203	10981		is amended to read as follows:
11204	10982		Section 1-9-621.
11205	10983		NOTIFICATION OF PROPOSAL TO ACCEPT COLLATERAL
11206	10984		(a) A secured party that desires to accept c ollateral in full
11207	10985		or partial satisfaction of the obligation it secures shall send its
11208	10986		proposal to:
11209	10987		(1) any person from which the sec ured party has received,
11210	10988		before the debtor consented to the acceptance, an authenticated a
11211	10989		signed notification of a claim o f an interest in the collateral;
11212	10990		(2) any other secured party or lienholder that, ten (10) days
11213	10991		before the debtor consented to the ac ceptance, held a security
11214	10992		interest in or other lien on the collateral perfected by th e filing
11215	10993		of a financing statement that :
11216	10994		(A) identified the collateral;
11217	10995		(B) was indexed under the debtor's name as of that date;
11218	10996		and
11219	10997		(C) was filed in the office or offices in which a
11220	10998		financing statement against the debtor covering the
11221	10999		collateral as of that date would have been filed; and
11222	11000		(3) any other secured party that, ten (10) days before the
11223	11001		debtor consented to the acceptance, held a security inter est in the
11224	11002
11225		-	HB2776 HFLR Page 221
11226		-	BOLD FACE denotes Committee Amendments. 1
	11003	+	Req. No. 6221 Page 221 1
11227	11004		2
11228	11005		3
11229	11006		4
11230	11007		5
11231	11008		6
11232	11009		7
11233	11010		8
11234	11011		9
11235	11012		10
11236	11013		11
11237	11014		12
11238	11015		13
11239	11016		14
11240	11017		15
11241	11018		16
11242	11019		17
11243	11020		18
11244	11021		19
11245	11022		20
11246	11023		21
11247	11024		22
11248	11025		23
11249	11026		24
11250	11027
11251	11028		collateral perfected by compliance w ith a statute, regulation, or
11252	11029		treaty described in subsection (a) of Section 1-9-311 of this title.
11253	11030		(b) A secured party that desires to accept collateral in
11254	11031		partial satisfaction of the obligation it secures sh all send its
11255	11032		proposal to any secondary obligor in addition to the persons
11256	11033		described in subsection (a) of th is section.
11257	11034		SECTION 90. AMENDATORY 12A O.S. 2021, Section 1-9-624,
11258	11035		is amended to read as follows:
11259	11036		Section 1-9-624.
11260	11037		WAIVER
11261	11038		(a) A debtor or secondary obligor may waive the right to
11262	11039		notification of disposition of c ollateral under Section 1-9-611 of
11263	11040		this title only by an ag reement to that effect entered into and
11264	11041		authenticated signed after default.
11265	11042		(b) A debtor may waive the right to require disposition of
11266	11043		collateral under sub section (e) of Section 1-9-620 of this title
11267	11044		only by agreement to that effect entered into and authenticated
11268	11045		signed after default.
11269	11046		(c) Except in a consumer-goods transaction, a debtor or
11270	11047		secondary obligor may waive the right to redeem collateral under
11271	11048		Section 1-9-623 of this title only by an agr eement to that effect
11272	11049		entered into and authenticated signed after default.
11273	11050		SECTION 91. AMENDATORY 12A O.S. 2021, Section 1 -9-628,
11274	11051		is amended to read as follows:
11275	11052
11276		-	HB2776 HFLR Page 222
11277		-	BOLD FACE denotes Committee Amendments. 1
	11053	+	Req. No. 6221 Page 222 1
11278	11054		2
11279	11055		3
11280	11056		4
11281	11057		5
11282	11058		6
11283	11059		7
11284	11060		8
11285	11061		9
11286	11062		10
11287	11063		11
11288	11064		12
11289	11065		13
11290	11066		14
11291	11067		15
11292	11068		16
11293	11069		17
11294	11070		18
11295	11071		19
11296	11072		20
11297	11073		21
11298	11074		22
11299	11075		23
11300	11076		24
11301	11077
11302	11078		Section 1-9-628.
11303	11079		NONLIABILITY AND LIMITATION ON LIABILITY
11304	11080		OF SECURED PARTY; LIABILITY OF SECONDARY OBLIGOR
11305	11081		(a) Unless Subject to subsection (f) of this section, unless a
11306	11082		secured party knows that a person is a debtor or obligor, knows the
11307	11083		identity of the person, and kn ows how to communicate with the
11308	11084		person:
11309	11085		(1) the secured party is not liab le to the person, or to a
11310	11086		secured party or lienholder that has filed a financing statement
11311	11087		against the person, for failure to com ply with this article; and
11312	11088		(2) the secured party 's failure to comply with this article
11313	11089		does not affect the liability of the pe rson for a deficiency.
11314	11090		(b) A Subject to subsection (f) of this section, a secured
11315	11091		party is not liable because of its status as secured party:
11316	11092		(1) to a person that is a debtor or obligor, unless the secured
11317	11093		party knows:
11318	11094		(A) that the person is a debtor or obligor;
11319	11095		(B) the identity of the person; a nd
11320	11096		(C) how to communicate with the person; or
11321	11097		(2) to a secured party or lienholder that has filed a financing
11322	11098		statement against a person, unless the secured party knows:
11323	11099		(A) that the person is a debtor; and
11324	11100		(B) the identity of the person.
11325	11101
11326		-	HB2776 HFLR Page 223
11327		-	BOLD FACE denotes Committee Amendments. 1
	11102	+	Req. No. 6221 Page 223 1
11328	11103		2
11329	11104		3
11330	11105		4
11331	11106		5
11332	11107		6
11333	11108		7
11334	11109		8
11335	11110		9
11336	11111		10
11337	11112		11
11338	11113		12
11339	11114		13
11340	11115		14
11341	11116		15
11342	11117		16
11343	11118		17
11344	11119		18
11345	11120		19
11346	11121		20
11347	11122		21
11348	11123		22
11349	11124		23
11350	11125		24
11351	11126
11352	11127		(c) A secured party is not liable to any person, and a person's
11353	11128		liability for a deficiency is not affected, because of any ac t or
11354	11129		omission arising out of the secured party's reasonable belief that a
11355	11130		transaction is not a consumer -goods transaction or a consumer
11356	11131		transaction or that goods are not consumer goods, if the secured
11357	11132		party's belief is based on its reasonable reliance on:
11358	11133		(1) a debtor's representation concerning the purpose for which
11359	11134		collateral was to be used, acquired, or held; or
11360	11135		(2) an obligor's representation concerning the purpose for
11361	11136		which a secured obligation was incurred.
11362	11137		(d) A secured party is not liable to any person under paragraph
11363	11138		(2) of subsection (c) of Section 1-9-625 of this title for its
11364	11139		failure to comply with Section 1-9-616 of this title.
11365	11140		(e) A secured party is not liable under paragraph (2) of
11366	11141		subsection (c) of Section 1-9-625 of this title more than once with
11367	11142		respect to any one secured obligation.
11368	11143		(f) Subsections (a) and (b) of this section do not apply to
11369	11144		limit the liability of a secured par ty to a person if, at the time
11370	11145		the secured party obtains control of collateral that is a
11371	11146		controllable account, controllable electronic reco rd, or
11372	11147		controllable payment intangible or at the time the security interes t
11373	11148		attaches to the collateral, whichever is later:
11374	11149		(1) the person is a debtor or obligor; and
11375	11150
11376		-	HB2776 HFLR Page 224
11377		-	BOLD FACE denotes Committee Amendments. 1
	11151	+	Req. No. 6221 Page 224 1
11378	11152		2
11379	11153		3
11380	11154		4
11381	11155		5
11382	11156		6
11383	11157		7
11384	11158		8
11385	11159		9
11386	11160		10
11387	11161		11
11388	11162		12
11389	11163		13
11390	11164		14
11391	11165		15
11392	11166		16
11393	11167		17
11394	11168		18
11395	11169		19
11396	11170		20
11397	11171		21
11398	11172		22
11399	11173		23
11400	11174		24
11401	11175
11402	11176		(2) the secured party knows that the i nformation in
11403	11177		subparagraph (A), (B), or (C) of paragra ph (1) of subsection (b) of
11404	11178		this section relating to the person is not pro vided by the
11405	11179		collateral, a record atta ched to or logically associated with the
11406	11180		collateral, or the system in which the collateral is recorded.
11407	11181		SECTION 92. NEW LAW A new sec tion of law to be codified
11408	11182		in the Oklahoma Statutes as Section 12-101 of Title 12A, unless
11409	11183		there is created a duplication in numbering, reads as follows:
11410	11184		SHORT TITLE
11411	11185		This article, Sections 93 through 98 of this act, may be cited
11412	11186		as Uniform Commercial Code – Controllable Electronic Records.
11413	11187		SECTION 93. NEW LAW A new section o f law to be codified
11414	11188		in the Oklahoma Statutes as Section 12-102 of Title 12A, unless
11415	11189		there is created a duplication in numbering, reads as follows:
11416	11190		DEFINITIONS
11417	11191		(a) In this article, unless the context otherwise requires:
11418	11192		(1) "Controllable electronic record " means a record stored in
11419	11193		an electronic medium that can be subjected to control under Section
11420	11194		12-105 of this title. The term does not include a controllable
11421	11195		account, a controllable payment intangible, a depo sit account, an
11422	11196		electronic copy of a record evidencing chattel paper, an electronic
11423	11197		document of title, electronic money, investment property, or a
11424	11198		transferable record.
11425	11199
11426		-	HB2776 HFLR Page 225
11427		-	BOLD FACE denotes Committee Amendments. 1
	11200	+	Req. No. 6221 Page 225 1
11428	11201		2
11429	11202		3
11430	11203		4
11431	11204		5
11432	11205		6
11433	11206		7
11434	11207		8
11435	11208		9
11436	11209		10
11437	11210		11
11438	11211		12
11439	11212		13
11440	11213		14
11441	11214		15
11442	11215		16
11443	11216		17
11444	11217		18
11445	11218		19
11446	11219		20
11447	11220		21
11448	11221		22
11449	11222		23
11450	11223		24
11451	11224
11452	11225		(2) "Qualifying purchaser" means a purchaser of a controllable
11453	11226		electronic record or an interest in a controllable electronic record
11454	11227		that obtains control of the controllable electronic record for
11455	11228		value, in good faith, and without notice of a claim of a property
11456	11229		right in the controllable electroni c record.
11457	11230		(3) "Transferable record" has the meaning provided for that
11458	11231		term in:
11459	11232		(A) Section 201(a)(1) of the Electronic Signatures in
11460	11233		Global and National Commerce Act, 15 U.S.C., Section
11461	11234		7021(a)(1); or
11462	11235		(B) Subsection (a) of Section 15 -116 of Title 12A of the
11463	11236		Oklahoma Statutes.
11464	11237		(4) "Value" has the same meaning as provided in subsection (a)
11465	11238		of Section 3-303 of this title, as if references in that subsection
11466	11239		to an "instrument" were references to a controllable account,
11467	11240		controllable electronic record, or contr ollable payment intangible.
11468	11241		(b) The definitions in Article 9 of this title of "account
11469	11242		debtor", "controllable account", "controllable payment intangible",
11470	11243		"chattel paper", "deposit account", "electronic money", and
11471	11244		"investment property" apply to this article.
11472	11245		(c) Article 1 of this title contains general definitions and
11473	11246		principles of construction and interpretat ion applicable throu ghout
11474	11247		this article.
11475	11248
11476		-	HB2776 HFLR Page 226
11477		-	BOLD FACE denotes Committee Amendments. 1
	11249	+	Req. No. 6221 Page 226 1
11478	11250		2
11479	11251		3
11480	11252		4
11481	11253		5
11482	11254		6
11483	11255		7
11484	11256		8
11485	11257		9
11486	11258		10
11487	11259		11
11488	11260		12
11489	11261		13
11490	11262		14
11491	11263		15
11492	11264		16
11493	11265		17
11494	11266		18
11495	11267		19
11496	11268		20
11497	11269		21
11498	11270		22
11499	11271		23
11500	11272		24
11501	11273
11502	11274		SECTION 94. NEW LAW A new section of law to be codified
11503	11275		in the Oklahoma Statutes as Section 12-103 of Title 12A, unless
11504	11276		there is created a duplication in numbering, reads as follows:
11505	11277		RELATION TO ARTICLE 9 AND CONSUMER LAWS
11506	11278		(a) If there is conflict betw een this article and Article 9 of
11507	11279		this title, Article 9 of this title governs.
11508	11280		(b) A transaction subject to this article is subject to a ny
11509	11281		applicable rule of law tha t establishes a different rule for
11510	11282		consumers, any other statute or regulation that regulates the r ates,
11511	11283		charges, agreements, and practices for loans, credit sales, or other
11512	11284		extensions of credit, and the Oklahoma Consumer Protection Act .
11513	11285		SECTION 95. NEW LAW A new section of law to be codified
11514	11286		in the Oklahoma Statute s as Section 12-104 of Title 12A, unless
11515	11287		there is created a duplication in numberin g, reads as follows:
11516	11288		RIGHTS IN CONTROLLABLE ACCOUNT, CONTROLLABLE ELECTRONIC RECORD,
11517	11289		AND CONTROLLABLE PAYMENT INTANGIBLE
11518	11290		(a) This section applies to the acquisition and purchase of
11519	11291		rights in a controllable account or controllable payment intangible,
11520	11292		including the rights and benefits under subsections (c), (d), (e ),
11521	11293		(g), and (h) of this section of a purchaser and qualifying
11522	11294		purchaser, in the same mann er this section applies to a controllable
11523	11295		electronic record.
11524	11296		(b) To determine whether a purchaser of a controllable account
11525	11297		or a controllable payment intangible is a qualifying purchaser, the
11526	11298
11527		-	HB2776 HFLR Page 227
11528		-	BOLD FACE denotes Committee Amendments. 1
	11299	+	Req. No. 6221 Page 227 1
11529	11300		2
11530	11301		3
11531	11302		4
11532	11303		5
11533	11304		6
11534	11305		7
11535	11306		8
11536	11307		9
11537	11308		10
11538	11309		11
11539	11310		12
11540	11311		13
11541	11312		14
11542	11313		15
11543	11314		16
11544	11315		17
11545	11316		18
11546	11317		19
11547	11318		20
11548	11319		21
11549	11320		22
11550	11321		23
11551	11322		24
11552	11323
11553	11324		purchaser obtains control of the account or payment intangibl e if it
11554	11325		obtains control of the controllable electronic record that e vidences
11555	11326		the account or payment intangible.
11556	11327		(c) Except as provided in this section, law other than this
11557	11328		article determines whether a perso n acquires a right in a
11558	11329		controllable electronic record and the right the person acquires.
11559	11330		(d) A purchaser of a con trollable electronic record acquires
11560	11331		all rights in the controllable electronic record that the trans feror
11561	11332		had or had power to transfer, exce pt that a purchaser of a limited
11562	11333		interest in a controllable electronic record acquires rights only to
11563	11334		the extent of the interest purchased.
11564	11335		(e) A qualifying purchaser acquires its rights in the
11565	11336		controllable electro nic record free of a claim of a property right
11566	11337		in the controllable electronic record.
11567	11338		(f) Except as provided in subsections (a) and (e) of this
11568	11339		section for a controllable account and a controllable payment
11569	11340		intangible or law other than this article, a qua lifying purchaser
11570	11341		takes a right to payme nt, right to performance, or other interest in
11571	11342		property evidenced by the controllable electronic record subject to
11572	11343		a claim of a property right in the right to payment, right to
11573	11344		performance, or other interest in prope rty.
11574	11345		(g) An action may not be asserted against a qualifying
11575	11346		purchaser based on both a purchase by the qualifying purchaser of a
11576	11347		controllable electronic re cord and a claim of a property right in
11577	11348
11578		-	HB2776 HFLR Page 228
11579		-	BOLD FACE denotes Committee Amendments. 1
	11349	+	Req. No. 6221 Page 228 1
11580	11350		2
11581	11351		3
11582	11352		4
11583	11353		5
11584	11354		6
11585	11355		7
11586	11356		8
11587	11357		9
11588	11358		10
11589	11359		11
11590	11360		12
11591	11361		13
11592	11362		14
11593	11363		15
11594	11364		16
11595	11365		17
11596	11366		18
11597	11367		19
11598	11368		20
11599	11369		21
11600	11370		22
11601	11371		23
11602	11372		24
11603	11373
11604	11374		another controllable electronic record, whether the action i s framed
11605	11375		in conversion, replevin, constr uctive trust, equitable lien, or
11606	11376		other theory.
11607	11377		(h) Filing of a financing statement under Article 9 of this
11608	11378		title is not notice of a claim of a property r ight in a controllable
11609	11379		electronic record.
11610	11380		SECTION 96. NEW LAW A new section of law to be codified
11611	11381		in the Oklahoma Statutes as S ection 12-105 of Title 12A, unless
11612	11382		there is created a duplication in numbering, reads as follows:
11613	11383		CONTROL OF CONTROLLABLE ELEC TRONIC RECORD
11614	11384		(a) A person has control of a controllable electronic record if
11615	11385		the electronic record, a record attached to or logically associated
11616	11386		with the electronic recor d, or a system in which the electronic
11617	11387		record is recorded:
11618	11388		(1) gives the person:
11619	11389		(A) power to avail itself of substantially all the benefit
11620	11390		from the electronic record; and
11621	11391		(B) exclusive power, subject to subsection (b) of this
11622	11392		section, to:
11623	11393		(i) prevent others from availing themselves of
11624	11394		substantially all the benefit from th e electronic
11625	11395		record; and
11626	11396		(ii) transfer control of the electronic record to
11627	11397		another person or cause a nother person to obtain
11628	11398
11629		-	HB2776 HFLR Page 229
11630		-	BOLD FACE denotes Committee Amendments. 1
	11399	+	Req. No. 6221 Page 229 1
11631	11400		2
11632	11401		3
11633	11402		4
11634	11403		5
11635	11404		6
11636	11405		7
11637	11406		8
11638	11407		9
11639	11408		10
11640	11409		11
11641	11410		12
11642	11411		13
11643	11412		14
11644	11413		15
11645	11414		16
11646	11415		17
11647	11416		18
11648	11417		19
11649	11418		20
11650	11419		21
11651	11420		22
11652	11421		23
11653	11422		24
11654	11423
11655	11424		control of another controllable electronic record
11656	11425		as a result of the transfer of the electronic
11657	11426		record; and
11658	11427		(2) enables the person r eadily to identify itself in any way,
11659	11428		including by name, identifying number, cryptographic key, offi ce, or
11660	11429		account number, as having the powers specified in paragraph (1) of
11661	11430		this subsection.
11662	11431		(b) Subject to subsection (c) of this section, a power is
11663	11432		exclusive under divisions (i) and (ii) of subparagraph (B) of
11664	11433		paragraph (1) of subsection (a) of this section even if:
11665	11434		(1) the controllable electronic record, a record attached to or
11666	11435		logically associated with the electronic recor d, or a system in
11667	11436		which the electronic record is recorded limits the use of the
11668	11437		electronic record or has a protocol programmed to cause a change,
11669	11438		including a transfer or loss of control or a modification of
11670	11439		benefits afforded by the electronic record; or
11671	11440		(2) the power is shared with another pe rson.
11672	11441		(c) A power of a person is not shared with another person under
11673	11442		paragraph (2) of subsection (b) of this section and the person's
11674	11443		power is not exclusive if:
11675	11444		(1) the person can exerci se the power only if the powe r also is
11676	11445		exercised by the other person ; and
11677	11446		(2) the other person:
11678	11447
11679		-	HB2776 HFLR Page 230
11680		-	BOLD FACE denotes Committee Amendments. 1
	11448	+	Req. No. 6221 Page 230 1
11681	11449		2
11682	11450		3
11683	11451		4
11684	11452		5
11685	11453		6
11686	11454		7
11687	11455		8
11688	11456		9
11689	11457		10
11690	11458		11
11691	11459		12
11692	11460		13
11693	11461		14
11694	11462		15
11695	11463		16
11696	11464		17
11697	11465		18
11698	11466		19
11699	11467		20
11700	11468		21
11701	11469		22
11702	11470		23
11703	11471		24
11704	11472
11705	11473		(A) can exercise the power without exercise of the power
11706	11474		by the person; or
11707	11475		(B) is the transferor to the person o f an interest in the
11708	11476		controllable electronic rec ord or a controllable
11709	11477		account or controllable payment intangible evi denced
11710	11478		by the controllable electronic record.
11711	11479		(d) If a person has the powers specified in divisions (i) and
11712	11480		(ii) of subparagraph (B) of paragraph (1) of subsection (a) of this
11713	11481		section, the powers are presumed to be exclusive.
11714	11482		(e) A person has control of a controllable electronic record if
11715	11483		another person, other than the transferor to the person of an
11716	11484		interest in the controllable electronic re cord or a controllable
11717	11485		account or controllable p ayment intangible evidenced by the
11718	11486		controllable electronic record:
11719	11487		(1) has control of the electronic record and acknowledg es that
11720	11488		it has control on behalf of the person ; or
11721	11489		(2) obtains control of the electron ic record after having
11722	11490		acknowledged that it will obtain control of the ele ctronic record on
11723	11491		behalf of the person.
11724	11492		(f) A person that has control under this section is no t
11725	11493		required to acknowledge that it has control o n behalf of another
11726	11494		person.
11727	11495		(g) If a person acknowledges that it has or will obtain co ntrol
11728	11496		on behalf of another person, unless the person otherwise agre es or
11729	11497
11730		-	HB2776 HFLR Page 231
11731		-	BOLD FACE denotes Committee Amendments. 1
	11498	+	Req. No. 6221 Page 231 1
11732	11499		2
11733	11500		3
11734	11501		4
11735	11502		5
11736	11503		6
11737	11504		7
11738	11505		8
11739	11506		9
11740	11507		10
11741	11508		11
11742	11509		12
11743	11510		13
11744	11511		14
11745	11512		15
11746	11513		16
11747	11514		17
11748	11515		18
11749	11516		19
11750	11517		20
11751	11518		21
11752	11519		22
11753	11520		23
11754	11521		24
11755	11522
11756	11523		law other than this article or Article 9 of this title otherwise
11757	11524		provides, the person does not o we any duty to the other person and
11758	11525		is not required to confirm the acknowledgment to an y other person.
11759	11526		SECTION 97. NEW LAW A new se ction of law to be codified
11760	11527		in the Oklahoma Statutes as Section 12-106 of Title 12A, unless
11761	11528		there is created a duplication in numbering, rea ds as follows:
11762	11529		DISCHARGE OF ACCOUNT DEBTOR ON CONTROLLABLE ACCOUNT OR
11763	11530		CONTROLLABLE PAYMENT INTANGIBLE
11764	11531		(a) An account debtor on a controllable account or controllable
11765	11532		payment intangible may discharge its obligation by paying:
11766	11533		(1) the person having control o f the controllable electronic
11767	11534		record that evidences the controllable accou nt or controllable
11768	11535		payment intangible; or
11769	11536		(2) except as provided in subsection (b) of this section, a
11770	11537		person that formerly had control of the controllable electronic
11771	11538		record.
11772	11539		(b) Subject to subsection (d) of this section, the account
11773	11540		debtor may not discharge its obligation by paying a person that
11774	11541		formerly had control of the controllable electronic record if the
11775	11542		account debtor receives a notification that:
11776	11543		(1) is signed by a person that formerly had control or the
11777	11544		person to which control was transferred ;
11778	11545		(2) reasonably identifies the controllable acc ount or
11779	11546		controllable payment intangible ;
11780	11547
11781		-	HB2776 HFLR Page 232
11782		-	BOLD FACE denotes Committee Amendments. 1
	11548	+	Req. No. 6221 Page 232 1
11783	11549		2
11784	11550		3
11785	11551		4
11786	11552		5
11787	11553		6
11788	11554		7
11789	11555		8
11790	11556		9
11791	11557		10
11792	11558		11
11793	11559		12
11794	11560		13
11795	11561		14
11796	11562		15
11797	11563		16
11798	11564		17
11799	11565		18
11800	11566		19
11801	11567		20
11802	11568		21
11803	11569		22
11804	11570		23
11805	11571		24
11806	11572
11807	11573		(3) notifies the account debtor that co ntrol of the
11808	11574		controllable electronic record that evidences the controllable
11809	11575		account or controllable payment intangible was transf erred;
11810	11576		(4) identifies the transferee, in any reasonable way, including
11811	11577		by name, identifying number, cryptographic key, office, or account
11812	11578		number; and
11813	11579		(5) provides a commercially reasonable method by which the
11814	11580		account debtor is to pay the transferee.
11815	11581		(c) After receipt of a notification that complies with
11816	11582		subsection (b) of this section, the account debtor may discharge its
11817	11583		obligation by paying in accordance with the notification and may not
11818	11584		discharge the obligation by paying a person th at formerly had
11819	11585		control.
11820	11586		(d) Subject to subsection (h) of this section, notification is
11821	11587		ineffective under subsection (b) of this section:
11822	11588		(1) unless, before the notification is sent, the account debtor
11823	11589		and the person that, at that time, had control of the controllable
11824	11590		electronic record that evidences the controllable a ccount or
11825	11591		controllable payment intangible agree in a signed record to a
11826	11592		commercially reasonable method by which a person may furnish
11827	11593		reasonable proof that control has been transferred;
11828	11594		(2) to the extent an agreement between the account debtor and
11829	11595		seller of a payment intangible limits the account debtor 's duty to
11830	11596
11831		-	HB2776 HFLR Page 233
11832		-	BOLD FACE denotes Committee Amendments. 1
	11597	+	Req. No. 6221 Page 233 1
11833	11598		2
11834	11599		3
11835	11600		4
11836	11601		5
11837	11602		6
11838	11603		7
11839	11604		8
11840	11605		9
11841	11606		10
11842	11607		11
11843	11608		12
11844	11609		13
11845	11610		14
11846	11611		15
11847	11612		16
11848	11613		17
11849	11614		18
11850	11615		19
11851	11616		20
11852	11617		21
11853	11618		22
11854	11619		23
11855	11620		24
11856	11621
11857	11622		pay a person other than the seller and the limitation is effective
11858	11623		under law other than this article; or
11859	11624		(3) at the option of the account debtor, if the notification
11860	11625		notifies the account debtor to :
11861	11626		(A) divide a payment;
11862	11627		(B) make less than the full amount of an installment or
11863	11628		other periodic payment; or
11864	11629		(C) pay any part of a payment by more than one method or
11865	11630		to more than one person .
11866	11631		(e) Subject to subsection (h) of this section, if requested by
11867	11632		the account debtor, the person giving the notification under
11868	11633		subsection (b) of this section seasonably shall furnish reasonable
11869	11634		proof, using the method in the agreement referred to in paragraph
11870	11635		(1) of subsection (d) of this section, that control of the
11871	11636		controllable electronic record has been transferred . Unless the
11872	11637		person complies with t he request, the account debtor may discharge
11873	11638		its obligation by paying a person that formerly had control, even i f
11874	11639		the account debtor has received a n otification under subsecti on (b)
11875	11640		of this section.
11876	11641		(f) A person furnishes reasonable proof under subsection (e) of
11877	11642		this section that control has been transferred if the person
11878	11643		demonstrates, using the method in the agreement referred to in
11879	11644		paragraph 1 of subsection (d) of this section, that the transferee
11880	11645		has the power to:
11881	11646
11882		-	HB2776 HFLR Page 234
11883		-	BOLD FACE denotes Committee Amendments. 1
	11647	+	Req. No. 6221 Page 234 1
11884	11648		2
11885	11649		3
11886	11650		4
11887	11651		5
11888	11652		6
11889	11653		7
11890	11654		8
11891	11655		9
11892	11656		10
11893	11657		11
11894	11658		12
11895	11659		13
11896	11660		14
11897	11661		15
11898	11662		16
11899	11663		17
11900	11664		18
11901	11665		19
11902	11666		20
11903	11667		21
11904	11668		22
11905	11669		23
11906	11670		24
11907	11671
11908	11672		(1) avail itself of substan tially all the benefit from the
11909	11673		controllable electronic record;
11910	11674		(2) prevent others from availing themselves of substantially
11911	11675		all the benefit from the controllabl e electronic record; and
11912	11676		(3) transfer the powers specified in paragraphs (1) and (2) of
11913	11677		this subsection to another person.
11914	11678		(g) Subject to subsection (h) of this section, an account
11915	11679		debtor may not waive or vary its rights under paragraph (1) of
11916	11680		subsection (d) and subsection (e) of this section or its option
11917	11681		under paragraph (3) of subsection (d) of this section.
11918	11682		(h) This section is subject to law other than this article
11919	11683		which establishes a different rule for an account d ebtor who is an
11920	11684		individual and who in curred the obligation p rimarily for personal,
11921	11685		family, or household purposes .
11922	11686		SECTION 98. NEW LAW A new section of law to be codified
11923	11687		in the Oklahoma Statutes as Section 12-107 of Title 12A, unless
11924	11688		there is created a duplication in nu mbering, reads as follo ws:
11925	11689		GOVERNING LAW
11926	11690		(a) Except as provided in subsection (b) of this section, the
11927	11691		local law of a controllable electronic record's jurisdiction governs
11928	11692		a matter covered by this article.
11929	11693		(b) For a controllable el ectronic record that evidences a
11930	11694		controllable account or controllable payment intangi ble, the local
11931	11695		law of the controllable electronic record 's jurisdiction governs a
11932	11696
11933		-	HB2776 HFLR Page 235
11934		-	BOLD FACE denotes Committee Amendments. 1
	11697	+	Req. No. 6221 Page 235 1
11935	11698		2
11936	11699		3
11937	11700		4
11938	11701		5
11939	11702		6
11940	11703		7
11941	11704		8
11942	11705		9
11943	11706		10
11944	11707		11
11945	11708		12
11946	11709		13
11947	11710		14
11948	11711		15
11949	11712		16
11950	11713		17
11951	11714		18
11952	11715		19
11953	11716		20
11954	11717		21
11955	11718		22
11956	11719		23
11957	11720		24
11958	11721
11959	11722		matter covered by Section 12 -106 of this title unless an effective
11960	11723		agreement determines that the local law of another jurisdic tion
11961	11724		governs.
11962	11725		(c) The following rules determine a controllable electronic
11963	11726		record's jurisdiction under this section:
11964	11727		(1) If the controllable electronic record , or a record attached
11965	11728		to or logically associated with the c ontrollable electronic record
11966	11729		and readily available for review, expressly provides tha t a
11967	11730		particular jurisdiction is the controllable electro nic record's
11968	11731		jurisdiction for purposes of this article or the Uniform Commercial
11969	11732		Code, that jurisdiction is the con trollable electronic record 's
11970	11733		jurisdiction.
11971	11734		(2) If paragraph (1) of this subsection does not apply and the
11972	11735		rules of the system in which the controllable electronic record is
11973	11736		recorded are readily available for review an d expressly provide that
11974	11737		a particular jurisdiction is the controllable elect ronic record's
11975	11738		jurisdiction for purposes of this article or the Uniform Commercial
11976	11739		Code, that jurisdiction is the controllable electronic record's
11977	11740		jurisdiction.
11978	11741		(3) If paragraphs (1) and (2) of this subsection do not apply
11979	11742		and the controllable electronic r ecord, or a record attached to or
11980	11743		logically associated with the controllable electronic record and
11981	11744		readily available for review, expressly provides that the
11982	11745		controllable electronic record is governed by the law of a
11983	11746
11984		-	HB2776 HFLR Page 236
11985		-	BOLD FACE denotes Committee Amendments. 1
	11747	+	Req. No. 6221 Page 236 1
11986	11748		2
11987	11749		3
11988	11750		4
11989	11751		5
11990	11752		6
11991	11753		7
11992	11754		8
11993	11755		9
11994	11756		10
11995	11757		11
11996	11758		12
11997	11759		13
11998	11760		14
11999	11761		15
12000	11762		16
12001	11763		17
12002	11764		18
12003	11765		19
12004	11766		20
12005	11767		21
12006	11768		22
12007	11769		23
12008	11770		24
12009	11771
12010	11772		particular jurisdiction, that jurisdicti on is the controllable
12011	11773		electronic record's jurisdiction.
12012	11774		(4) If paragraphs (1), (2), and (3) of this subsection do not
12013	11775		apply and the rules of the system in which the controllable
12014	11776		electronic record is recorded are re adily available for review and
12015	11777		expressly provide that the controllable electronic record or the
12016	11778		system is governed by the law of a particular jurisdiction, that
12017	11779		jurisdiction is the controllable electronic record's jurisdiction.
12018	11780		(5) If paragraphs (1) through (4) of this subsection do not
12019	11781		apply, the controllable electronic record's jurisdiction is the
12020	11782		District of Columbia .
12021	11783		(d) If paragraph (5) of subsection (c) of this section applies
12022	11784		and Article 12 is not in effect in the District of Columbia without
12023	11785		material modification, the governing law for a matter covered by
12024	11786		this article is the law of the District of Columbia as though
12025	11787		Article 12 were in effect in the District of Columbia without
12026	11788		material modification. In this subsection, "Article 12" means
12027	11789		Article 12 of Uniform Commercial Code Amendments (2022).
12028	11790		(e) To the extent subsections (a) and (b) of this section
12029	11791		provide that the local law of the controllable electronic record's
12030	11792		jurisdiction governs a matter covered by this article, that law
12031	11793		governs even if the matter or a transaction to which the matter
12032	11794		relates does not bear any relation to the c ontrollable electronic
12033	11795		record's jurisdiction.
12034	11796
12035		-	HB2776 HFLR Page 237
12036		-	BOLD FACE denotes Committee Amendments. 1
	11797	+	Req. No. 6221 Page 237 1
12037	11798		2
12038	11799		3
12039	11800		4
12040	11801		5
12041	11802		6
12042	11803		7
12043	11804		8
12044	11805		9
12045	11806		10
12046	11807		11
12047	11808		12
12048	11809		13
12049	11810		14
12050	11811		15
12051	11812		16
12052	11813		17
12053	11814		18
12054	11815		19
12055	11816		20
12056	11817		21
12057	11818		22
12058	11819		23
12059	11820		24
12060	11821
12061	11822		(f) The rights acquired under Section 12-104 of this title by a
12062	11823		purchaser or qualifyin g purchaser are governed by the la w applicable
12063	11824		under this section at the ti me of purchase.
12064	11825		SECTION 99. NEW LAW A new section of law to be codified
12065	11826		in the Oklahoma Statutes as Article A, Part 1, Section A-101 of
12066	11827		Title 12A, unless there is created a dupl ication in numbering, reads
12067	11828		as follows:
12068	11829		SHORT TITLE
12069	11830		This article, Sections 99 through 107 of this act, may be cited
12070	11831		as Uniform Commercial Code - Transitional Provisions fo r Uniform
12071	11832		Commercial Code Amendments (2022).
12072	11833		SECTION 100. NEW LAW A new section of law to be codified
12073	11834		in the Oklahoma Statutes as Article A, Part 1, Section A-102 of
12074	11835		Title 12A, unless there is created a duplication in numbering, reads
12075	11836		as follows:
12076	11837		DEFINITIONS
12077	11838		(a) As used in this article:
12078	11839		(1) "Adjustment date" means July 1, 2025, or the date that is
12079	11840		one (1) year after the effective date of this act, whichever is
12080	11841		later;
12081	11842		(2) "Article 12" means Article 12 of the Uniform Commercial
12082	11843		Code; and
12083	11844		(3) "Article 12 property" means a controllable account,
12084	11845		controllable electronic record, or controllable payment int angible.
12085	11846
12086		-	HB2776 HFLR Page 238
12087		-	BOLD FACE denotes Committee Amendments. 1
	11847	+	Req. No. 6221 Page 238 1
12088	11848		2
12089	11849		3
12090	11850		4
12091	11851		5
12092	11852		6
12093	11853		7
12094	11854		8
12095	11855		9
12096	11856		10
12097	11857		11
12098	11858		12
12099	11859		13
12100	11860		14
12101	11861		15
12102	11862		16
12103	11863		17
12104	11864		18
12105	11865		19
12106	11866		20
12107	11867		21
12108	11868		22
12109	11869		23
12110	11870		24
12111	11871
12112	11872		(b) The following definitions in other articles of the Uniform
12113	11873		Commercial Code apply to this article:
12114	11874		"Controllable account", Section 1-9-102 of this title.
12115	11875		"Controllable electronic record", Section 12-102 of this title.
12116	11876		"Controllable payment intangible", Section 1-9-102 of this
12117	11877		title.
12118	11878		"Electronic money", Section 1-9-102 of this title.
12119	11879		"Financing statement", Section 1-9-102 of this title.
12120	11880		(c) Article 1 of this title contains general definitions and
12121	11881		principles of construction a nd interpretation applicable throughout
12122	11882		this article.
12123	11883		SECTION 101. NEW LAW A new section of law to be codified
12124	11884		in the Oklahoma Statutes as Article A, Part 2, Section A-201 of
12125	11885		Title 12A, unless there is created a duplication in numbering, reads
12126	11886		as follows:
12127	11887		SAVINGS CLAUSE
12128	11888		Except as provided in Part 3 of Article A of this title, a
12129	11889		transaction validly entered into before the effective date of this
12130	11890		act and the rights, duties, and interests flowi ng from the
12131	11891		transaction remain valid thereafter and may be terminated,
12132	11892		completed, consummate d, or enforced as required or permi tted by law
12133	11893		other than the Uniform Commercial Code or, if applicable, the
12134	11894		Uniform Commercial Code, as though this act had not taken effect.
12135	11895
12136		-	HB2776 HFLR Page 239
12137		-	BOLD FACE denotes Committee Amendments. 1
	11896	+	Req. No. 6221 Page 239 1
12138	11897		2
12139	11898		3
12140	11899		4
12141	11900		5
12142	11901		6
12143	11902		7
12144	11903		8
12145	11904		9
12146	11905		10
12147	11906		11
12148	11907		12
12149	11908		13
12150	11909		14
12151	11910		15
12152	11911		16
12153	11912		17
12154	11913		18
12155	11914		19
12156	11915		20
12157	11916		21
12158	11917		22
12159	11918		23
12160	11919		24
12161	11920
12162	11921		SECTION 102. NEW LAW A new section of law to be codified
12163	11922		in the Oklahoma Statutes as Article A, Part 3, Section A-301 of
12164	11923		Title 12A, unless there is created a duplication in numbering, reads
12165	11924		as follows:
12166	11925		SAVINGS CLAUSE
12167	11926		(a) Except as provided in this part, Ar ticle 9 of this title as
12168	11927		amended by this act and Article 12 of this title apply to a
12169	11928		transaction, lien, o r other interest in property, even if the
12170	11929		transaction, lien, or interest was entered into, created, or
12171	11930		acquired before the effective date of this act.
12172	11931		(b) Except as provided in subsection (c) of this section and
12173	11932		Sections A-302 through A-306 of this title:
12174	11933		(1) a transaction, lien, or interest in property that was
12175	11934		validly entered into, created, or transferred befo re the effective
12176	11935		date of this act and was not governed by the Uniform Commercial
12177	11936		Code, but would be subject to Article 9 of this title as amended by
12178	11937		this act or Article 12 of this title if it had been entered into,
12179	11938		created, or transferred on or after the effective date of this act,
12180	11939		including the rights, duties, and interests flowing from the
12181	11940		transaction, lien, or interest, remains valid on and after the
12182	11941		effective date of this act; and
12183	11942		(2) the transaction, lien, or interest may be terminated,
12184	11943		completed, consummated, and enforced as requi red or permitted by
12185	11944
12186		-	HB2776 HFLR Page 240
12187		-	BOLD FACE denotes Committee Amendments. 1
	11945	+	Req. No. 6221 Page 240 1
12188	11946		2
12189	11947		3
12190	11948		4
12191	11949		5
12192	11950		6
12193	11951		7
12194	11952		8
12195	11953		9
12196	11954		10
12197	11955		11
12198	11956		12
12199	11957		13
12200	11958		14
12201	11959		15
12202	11960		16
12203	11961		17
12204	11962		18
12205	11963		19
12206	11964		20
12207	11965		21
12208	11966		22
12209	11967		23
12210	11968		24
12211	11969
12212	11970		this act or by the law that would apply if this act had not taken
12213	11971		effect.
12214	11972		(c) This act does not affect an action, case, or proc eeding
12215	11973		commenced before the effective date of this act.
12216	11974		SECTION 103. NEW LAW A new section of law to be codified
12217	11975		in the Oklahoma Statutes as Section A-302 of Title 12A, unless there
12218	11976		is created a duplication in numbering, reads as foll ows:
12219	11977		SECURITY INTEREST PERFECTED BEFORE EFFECTIVE DATE
12220	11978		(a) A security interest that is enforceable and perfected
12221	11979		immediately before the effective date of this act is a perfected
12222	11980		security interest under this act if, on the effective date o f this
12223	11981		act, the requirements for enforceability a nd perfection under this
12224	11982		act are satisfied without further action.
12225	11983		(b) If a security interest is en forceable and perfected
12226	11984		immediately before the effective date of this act, but the
12227	11985		requirements for enforce ability or perfection under this act are not
12228	11986		satisfied on the effective date of this act, the security interest:
12229	11987		(1) is a perfected security interes t until the earlier of the
12230	11988		time perfection would have ceased under the law in effect
12231	11989		immediately before the effective date of this act or the adjustment
12232	11990		date;
12233	11991		(2) remains enforceable thereafter only if the security
12234	11992		interest satisfies the requirements for enforceability under Section
12235	11993
12236		-	HB2776 HFLR Page 241
12237		-	BOLD FACE denotes Committee Amendments. 1
	11994	+	Req. No. 6221 Page 241 1
12238	11995		2
12239	11996		3
12240	11997		4
12241	11998		5
12242	11999		6
12243	12000		7
12244	12001		8
12245	12002		9
12246	12003		10
12247	12004		11
12248	12005		12
12249	12006		13
12250	12007		14
12251	12008		15
12252	12009		16
12253	12010		17
12254	12011		18
12255	12012		19
12256	12013		20
12257	12014		21
12258	12015		22
12259	12016		23
12260	12017		24
12261	12018
12262	12019		1-9-203 of this title, as amended by this act, before the adjustment
12263	12020		date; and
12264	12021		(3) remains perfected thereafter only if the requi rements for
12265	12022		perfection under this act are satisfied before the time specified in
12266	12023		paragraph (1) of this subsection.
12267	12024		SECTION 104. NEW LAW A new section of law to be codi fied
12268	12025		in the Oklahoma Statutes as Sectio n A-303 of Title 12A, unless there
12269	12026		is created a duplication in numbering, reads as follows:
12270	12027		SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE DATE
12271	12028		A security interest that is enforceable immediately before the
12272	12029		effective date of this act but is unperfected at that time:
12273	12030		(1) Remains an enforceable security inte rest until the
12274	12031		adjustment date;
12275	12032		(2) Remains enforceable thereafter if the security interest
12276	12033		becomes enforceable under Section 1-9-203 of this title, as amended
12277	12034		by this act, on the effective date of this act or before the
12278	12035		adjustment date; and
12279	12036		(3) Becomes perfected:
12280	12037		(A) without further action, on the effective date of this
12281	12038		act if the requirements fo r perfection under this act
12282	12039		are satisfied before or at that time; or
12283	12040		(B) when the requirements for perfection are satisfied if
12284	12041		the requirements are satisfied after that time.
12285	12042
12286		-	HB2776 HFLR Page 242
12287		-	BOLD FACE denotes Committee Amendments. 1
	12043	+	Req. No. 6221 Page 242 1
12288	12044		2
12289	12045		3
12290	12046		4
12291	12047		5
12292	12048		6
12293	12049		7
12294	12050		8
12295	12051		9
12296	12052		10
12297	12053		11
12298	12054		12
12299	12055		13
12300	12056		14
12301	12057		15
12302	12058		16
12303	12059		17
12304	12060		18
12305	12061		19
12306	12062		20
12307	12063		21
12308	12064		22
12309	12065		23
12310	12066		24
12311	12067
12312	12068		SECTION 105. NEW LAW A new section of law to be codified
12313	12069		in the Oklahoma Statutes as Secti on A-304 of Title 12A, unless there
12314	12070		is created a duplication in numbering, reads as follows:
12315	12071		EFFECTIVENESS OF ACTION S TAKEN BEFORE EFFECTIVE DATE
12316	12072		(a) If action, other than the fili ng of a financing statement,
12317	12073		is taken before the effective date of this act and the action would
12318	12074		have resulted in perfection of the security interest had the
12319	12075		security interest become enforceable before the effective date of
12320	12076		this act, the action is effectiv e to perfect a security interest
12321	12077		that attaches under this act before the adjustment date. An
12322	12078		attached security interest becomes unperfected on the adjustment
12323	12079		date unless the security interest becomes a perfected security
12324	12080		interest under this act before the adjustment date.
12325	12081		(b) The filing of a financing statement before the effective
12326	12082		date of this act is effective to perfect a secur ity interest on the
12327	12083		effective date of this act to the extent the filing would satisfy
12328	12084		the requirements for perfection under this act.
12329	12085		(c) The taking of an action before the effective date of this
12330	12086		act is sufficient for the enfor ceability of a security i nterest on
12331	12087		the effective date of this act if the action would satisfy the
12332	12088		requirements for enforceability und er this act.
12333	12089		SECTION 106. NEW LAW A new sect ion of law to be codified
12334	12090		in the Oklahoma Statutes as Se ction A-305 of Title 12A, unless there
12335	12091		is created a duplication in numbering, reads as follows:
12336	12092
12337		-	HB2776 HFLR Page 243
12338		-	BOLD FACE denotes Committee Amendments. 1
	12093	+	Req. No. 6221 Page 243 1
12339	12094		2
12340	12095		3
12341	12096		4
12342	12097		5
12343	12098		6
12344	12099		7
12345	12100		8
12346	12101		9
12347	12102		10
12348	12103		11
12349	12104		12
12350	12105		13
12351	12106		14
12352	12107		15
12353	12108		16
12354	12109		17
12355	12110		18
12356	12111		19
12357	12112		20
12358	12113		21
12359	12114		22
12360	12115		23
12361	12116		24
12362	12117
12363	12118		PRIORITY
12364	12119		(a) Subject to subsections (b) an d (c) of this section, this
12365	12120		act determines the priority of co nflicting claims to collateral.
12366	12121		(b) Subject to subsection (c) of this section, if the
12367	12122		priorities of claims to collateral were established before the
12368	12123		effective date of this act, Article 9 of this title as in effect
12369	12124		before the effective date of this act determines priority.
12370	12125		(c) On the adjustment date, to the extent the prio rities
12371	12126		determined by Article 9 of this title as amended by this act modify
12372	12127		the priorities established before the effective date of this act the
12373	12128		priorities of claims to Article 12 of this title, property and
12374	12129		electronic money established before the effective date of this act
12375	12130		cease to apply.
12376	12131		SECTION 107. NEW LAW A n ew section of law to be codified
12377	12132		in the Oklahoma Statutes as Se ction A-306 of Title 12A, unless there
12378	12133		is created a duplication in numbering, reads as follows:
12379	12134		PRIORITY OF CLAIMS WHEN PRIORITY RULES OF ARTICLE 9 DO NOT A PPLY
12380	12135		(a) Subject to subsections (b) and (c) of this section, Article
12381	12136		12 of this title determines the priority of conflicting claims to
12382	12137		Article 12 property when the priority rule s of Article 9 of this
12383	12138		title as amended by this act do not apply.
12384	12139		(b) Subject to subsection (c) of this section, when the
12385	12140		priority rules of Article 9 of this title as amended by this act do
12386	12141		not apply and the priorities of claims to Article 12 property were
12387	12142
12388		-	HB2776 HFLR Page 244
12389		-	BOLD FACE denotes Committee Amendments. 1
	12143	+	Req. No. 6221 Page 244 1
12390	12144		2
12391	12145		3
12392	12146		4
12393	12147		5
12394	12148		6
12395	12149		7
12396	12150		8
12397	12151		9
12398	12152		10
12399	12153		11
12400	12154		12
12401	12155		13
12402	12156		14
12403	12157		15
12404	12158		16
12405	12159		17
12406	12160		18
12407	12161		19
12408	12162		20
12409	12163		21
12410	12164		22
12411	12165		23
12412	12166		24
12413	12167
12414	12168		established before the effective date of thi s act, law other than
12415	12169		Article 12 of this title determines priority.
12416	12170		(c) When the priority rules of Article 9 of this title as
12417	12171		amended by this act do not apply, to the extent t he priorities
12418	12172		determined by this act modify the prioritie s established before the
12419	12173		effective date of this act, the priorities of claims to Article 12
12420	12174		property established before the effective date of this act cease to
12421	12175		apply on the adjustment date.
12422	12176		SECTION 108. This act shall become effective November 1, 2023.
12423	12177
12424		-	~~COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 02~~/21/~~2023 - DO PASS.~~
	12178	+	59-1-6221 GRS 01/18/23