OK
Oklahoma House Bill HB2776

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2776 Compare Versions

OldNewDifferences
1-An Act
2-ENROLLED HOUSE
1+
2+
3+SENATE FLOOR VERSION - HB2776 SFLR Page 1
4+(Bold face denotes Committee Amendments) 1
5+2
6+3
7+4
8+5
9+6
10+7
11+8
12+9
13+10
14+11
15+12
16+13
17+14
18+15
19+16
20+17
21+18
22+19
23+20
24+21
25+22
26+23
27+24
28+
29+SENATE FLOOR VERSION
30+April 2, 2024
31+
32+
33+ENGROSSED HOUSE
334 BILL NO. 2776 By: McCall of the House
435
536 and
637
738 Hall of the Senate
8-
9-
1039
1140
1241
1342
1443 An Act relating to the Uniform Commercial Code;
1544 amending 12A O.S. 2021, Sections 1 -201, 1-204, 1-301
1645 and 1-306, which relate to Gen eral Provisions of the
1746 Uniform Commercial Code; clarifying scope of certain
1847 definitions; adding definitions; providing statutory
1948 references; replacing certain term with new term;
2049 amending 12A O.S. 2021, Sections 2 -102, 2-106, 2-201,
2150 2-202, 2-203, 2-205 and 2-209, which relate to sales;
2251 deleting exception to the applicability of
2352 transactions in goods; providing for the
2453 applicability of hybrid transactions; providing
2554 exceptions to applicability provision; defining term;
2655 replacing certain term with new term; a dding signed
2756 records to certain exception; amending 12A O.S. 2021,
2857 Sections 2A-102, 2A-103, 2A-107, 2A-201, 2A-202, 2A-
2958 203, 2A-205 and 2A-208, which relate to leases;
3059 expanding scope of leases to include hybrid leases;
3160 providing guidelines for hybrid lease s; making
3261 Article 2A applicable if lease -of-goods aspects
3362 predominate; adding definition; replacing certain
3463 term with new term; amending 12A O.S. 2021, Sections
3564 3-104, 3-105, 3-401 and 3-604, which relate to
3665 negotiable instruments; expanding scope of certa in
3766 definitions; deleting certain requirements for when a
3867 signature may be made; affirming obligation of party
3968 to pay check despite its destruction; deleting
4069 certain defined term; amending 12A O.S. 2021,
4170 Sections 4A-103, 4A-201, 4A-202, 4A-203, 4A-207, 4A-
4271 208, 4A-210, 4A-211 and 4A-305, which relate to funds
4372 transfers; modifying scope of certain definitions;
4473 clarifying bank's obl igations concerning security
4574 procedures; requiring express agreement be evidenced
46-by a record; replacing certain term with new term; ENR. H. B. NO. 2776 Page 2
75+by a record; replacing certain term with new term ;
76+
77+SENATE FLOOR VERSION - HB2776 SFLR Page 2
78+(Bold face denotes Committee Amendments) 1
79+2
80+3
81+4
82+5
83+6
84+7
85+8
86+9
87+10
88+11
89+12
90+13
91+14
92+15
93+16
94+17
95+18
96+19
97+20
98+21
99+22
100+23
101+24
102+
47103 deleting references to electronically transmitted
48104 notices or communications; amending 12A O.S. 2021,
49105 Sections 5-104 and 5-116, which relate to letters of
50106 credit; providing for the issuance of letter of
51107 credit by signed record; deleting authentication
52108 requirements; deleting statutory reference;
53109 clarifying jurisdiction of bank's branches; amending
54110 12A O.S. 2021, Sections 7 -102 and 7-106, which relate
55111 to documents of title; deleting certain defined term;
56112 clarifying requirements for controlling electronic
57113 documents of title; providing for exclusivity of
58114 power; making power nonshareable and nonexclusive
59115 under certain circumstances; providing circumstances
60116 when a person has control of an electronic document
61117 of title; providing for the acknowledgment of control
62118 of electronic documents of title; amending 12A O.S.
63119 2021, Sections 8-102, 8-103, 8-106, 8-110 and 8-303,
64120 which relate to inves tment securities; modifying
65121 scope of certain definitions; providing statutory
66122 references; declaring certain accounts and records as
67123 not a financial asset; providing an exception;
68124 stating circumstances when a purchaser has control of
69125 a security entitlement; providing for the
70126 acknowledgment of control on behalf of a purchaser;
71127 declaring the law that governs jurisdiction;
72128 modifying scope of certain definition; amending 12A
73129 O.S. 2021, Sections 1 -9-102, 1-9-104, 1-9-105, 1-9-
74130 203, 1-9-204, 1-9-207, 1-9-208, 1-9-209, 1-9-210, 1-
75131 9-301, 1-9-304, 1-9-305, 1-9-310, 1-9-312, 1-9-313,
76132 1-9-314, 1-9-316, 1-9-317, 1-9-323, 1-9-324, 1-9-330,
77133 1-9-331, 1-9-332, 1-9-334, 1-9-341, 1-9-404, 1-9-406,
78134 1-9-408, 1-9-509, 1-9-513, 1-9-601, 1-9-605, 1-9-608,
79135 1-9-611, 1-9-613, 1-9-614, 1-9-615, 1-9-616, 1-9-619,
80136 1-9-620, 1-9-621, 1-9-624 and 1-9-628, which relate
81137 to secured transactions; modifying scope of certain
82138 definitions; deleting and adding definitions;
83139 providing statutory references; replacing certain
84140 term with new term; expanding requirements for
85141 secured parties to control deposit accounts;
86142 clarifying requirements for establishing control of
87143 electronic chattel paper; stating manner by which a
88144 system may satisfy certain requirements; providing
89145 for the exclusivity of power under certain
90146 circumstances; providing exceptions; presuming powers
91-to be exclusive under certain circumstance; providing ENR. H. B. NO. 2776 Page 3
147+to be exclusive under certain circumstance; providing
92148 control to purchaser if certain conditions are met;
93149 stating when a secured party has control of a
150+
151+SENATE FLOOR VERSION - HB2776 SFLR Page 3
152+(Bold face denotes Committee Amendments) 1
153+2
154+3
155+4
156+5
157+6
158+7
159+8
160+9
161+10
162+11
163+12
164+13
165+14
166+15
167+16
168+17
169+18
170+19
171+20
172+21
173+22
174+23
175+24
176+
94177 controllable electronic record, controllable account
95178 or controllable payment intangible; allowing person
96179 with specific control to deny acknowledgment of said
97180 control; modifying certain conditions to include
98181 controllable accounts, controllable electronic
99182 records, controllable payment intangibles and
100183 documents; providing statutory references; declaring
101184 chattel paper as collateral; providing for the
102185 attachment of security interests ; modifying
103186 procedures for responding to signed demand by a
104187 debtor; clarifying jurisdiction requirement;
105188 declaring bank's jur isdiction even if transaction
106189 bears no relation to bank's jurisdiction; providing
107190 additional exception to certain rules; providing
108191 guidelines for determining the jurisdiction of
109192 chattel paper; establishing rules for determining
110193 jurisdiction; providing circumstances when local law
111194 governs jurisdiction; stating that filing is required
112195 to perfect security interest; allowing perfection of
113196 a security interest by taking possession or control
114197 of collateral; providing time limitations; providing
115198 for perfection by possession and control of chattel
116199 paper; providing time limitations for perfected
117200 security interests; stating circumstances that all ow
118201 buyers of chattel paper, electronic documents,
119202 controllable electronic records, controllable
120203 accounts or controllable payment intangibles to take
121204 free of security interests; clarifying exceptions for
122205 buyers of goods; specifying when security interests
123206 have priority over conflicting security interests;
124207 specifying circumstances when a purchaser of chattel
125208 paper has priority ove r security interests in the
126209 chattel paper; declaring when purchaser of chattel
127210 paper or instrument has knowledge that purchase
128211 violates rights of the secured party; stating rights
129212 of holders and purchasers; modifying procedures for
130213 transferring money; clarifying references to
131214 promissory note; excepting certain provisions from
132215 controllable account or controllable payment
133216 intangible; stating duties of secured party; deleting
134217 certain forms; creating Notification of Disposition
135218 of Collateral form; providing ins tructions for form;
136-creating Notice of Plan to Sell Propert y form; ENR. H. B. NO. 2776 Page 4
219+creating Notice of Plan to Sell Property form;
137220 providing instructions for form; clarifying scope of
138221 certain definitions; making certain provisions
139222 inapplicable to limiting the liability of a secured
140223 party; creating new article for the Uniform
224+
225+SENATE FLOOR VERSION - HB2776 SFLR Page 4
226+(Bold face denotes Committee Amendments) 1
227+2
228+3
229+4
230+5
231+6
232+7
233+8
234+9
235+10
236+11
237+12
238+13
239+14
240+15
241+16
242+17
243+18
244+19
245+20
246+21
247+22
248+23
249+24
250+
141251 Commercial Code to be named Controllable Electronic
142252 Records; defining terms; declaring which article
143253 controls if conflict ex ists; providing applicability
144254 provision; stating rights of purchaser of
145255 controllable account, controllable payment
146256 intangible, and controllable electronic record;
147257 stating how qualifying purchaser acquires its rights;
148258 providing limitations on actions agains t qualified
149259 purchaser; providing restriction on notice of claims;
150260 declaring when a person has control of a controllable
151261 electronic record; stating exclusivity of powers
152262 under certain circumstances; declaring when powers
153263 are nonexclusive; making powers pres umptive under
154264 certain circumstances; providing additional
155265 circumstances for when a person has control of a
156266 controllable electronic record; providing procedures
157267 for account debtors discharging their obligations;
158268 providing restrictions on discharging obligat ions;
159269 making notifications ineffective under certain
160270 circumstances; requiring certain proof if requested
161271 by account debtor; providing circumstances that show
162272 reasonable proof has been furnished; prohibiting
163273 waiver or varying of rights; making provisions
164274 subject to other laws; providing jurisdiction for
165275 controllable electronic records; stating rules for
166276 determining jurisdiction; declaring governing laws
167277 for certain matters; defining term; providing for
168278 rights to be governed under certain applicable law;
169279 creating new article for the Uniform Commercial Code
170280 to be named Transitional Provisions for Uniform
171281 Commercial Code Amendments (2022); defining terms;
172282 providing for the termination of transactions;
173283 providing for the applicability of certain articles
174284 to transactions, liens, or other interests in
175285 property; declaring the validity of transactions,
176286 liens, or other interest in property o n and after
177287 certain date; making exception to applicability
178288 provision; declaring previously perfected security
179289 interest as perfecte d after certain date; providing
180290 guidelines for enforceable and perfected security
181-interest when requirements ther efor are not ENR. H. B. NO. 2776 Page 5
291+interest when requirements therefor are not
182292 satisfied; declaring status of enforceable security
183293 interest that is unperfected on certain date; stating
184294 certain actions as effec tive to perfect a security
185295 interest; providing for the effectiveness of
186296 financing statement for perfecting a security
187297 interest; providing for the sufficiency of taking an
298+
299+SENATE FLOOR VERSION - HB2776 SFLR Page 5
300+(Bold face denotes Committee Amendments) 1
301+2
302+3
303+4
304+5
305+6
306+7
307+8
308+9
309+10
310+11
311+12
312+13
313+14
314+15
315+16
316+17
317+18
318+19
319+20
320+21
321+22
322+23
323+24
324+
188325 action before certain date; providing guidelines for
189326 determining priority of claims t o collateral;
190327 providing statutory reference for determining
191328 priority of conflicting claims; stating which
192329 articles and statutes apply when determining
193330 priority; providing construing provision regarding
194331 digital currency; providing for codification; and
195332 providing an effective date.
196333
197334
198-SUBJECT: Uniform Commercial Code
335+
199336
200337 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
201-
202338 SECTION 1. AMENDATORY 12A O.S. 2021, Section 1 -201, is
203339 amended to read as follows:
204-
205340 Section 1-201.
206-
207341 General Definitions and Principles of Interpretat ion.
208-
209342 (a) Unless the context otherwise requires, words or phrases
210343 defined in this section, or in the additional definitions contained
211344 in other articles of the Uniform Commercial Code that apply to
212345 particular articles or parts thereof, have the meanings sta ted.
213-
214346 (b) Subject to definitions contained in other articles of the
215347 Uniform Commercial Code that apply to particular articles or parts
216348 thereof:
217-
218349 (1) "Action" in the sense of a judicial proceeding includes a
219350 recoupment, counterclaim, setoff, suit in equity, and any other
220351 proceedings in which rights are determined.
221-
222352 (2) "Aggrieved party" means a party entitled to pursue a
223353 remedy.
224354
355+SENATE FLOOR VERSION - HB2776 SFLR Page 6
356+(Bold face denotes Committee Amendments) 1
357+2
358+3
359+4
360+5
361+6
362+7
363+8
364+9
365+10
366+11
367+12
368+13
369+14
370+15
371+16
372+17
373+18
374+19
375+20
376+21
377+22
378+23
379+24
380+
225381 (3) "Agreement", as distinguished from "contract", means the
226-bargain of the parties in fact as found in their language or ENR. H. B. NO. 2776 Page 6
382+bargain of the parties in fact as found in their language or
227383 inferred from other circumstance s including course of performance,
228384 course of dealing, or usage of trade as provided in Section 1 -303 of
229385 this title.
230-
231386 (4) "Bank" means a person engaged in the business of banking
232387 and includes a savings bank, savings and loan associat ion, credit
233388 union, and trust company.
234-
235389 (5) "Bearer" means a person in control of a negotiable
236390 electronic document of title or a person in possession of an
237391 instrument, negotiable tangible document of title, or certificated
238392 security payable to bearer or endo rsed in blank.
239-
240393 (6) "Bill of lading" means a document of title evidencing the
241394 receipt of goods for shipment issued by a person engaged in the
242395 business of directly or indirectly transporting or forwarding goods.
243396 The term does not include a warehouse receip t.
244-
245397 (7) "Branch" includes a separately incorporated foreign branch
246398 of a bank.
247-
248399 (8) "Burden of establishing" means the burden of persuading the
249400 trier of fact that the existence of the fact is more probable than
250401 its nonexistence.
251-
252402 (9) "Buyer in ordinary cour se of business" means a person that
253403 buys goods in good faith, without knowledge that the sale violates
254404 the rights of another person in the goods, and in the ordinary
405+
406+SENATE FLOOR VERSION - HB2776 SFLR Page 7
407+(Bold face denotes Committee Amendments) 1
408+2
409+3
410+4
411+5
412+6
413+7
414+8
415+9
416+10
417+11
418+12
419+13
420+14
421+15
422+16
423+17
424+18
425+19
426+20
427+21
428+22
429+23
430+24
431+
255432 course from a person, other than a pawnbroker, in the business of
256433 selling goods of that ki nd. A person buys goods in the ordinary
257434 course if the sale to the person comports with the usual or
258435 customary practices in the kind of business in which the seller is
259436 engaged or with the seller's own usual or customary practices. A
260437 person that sells oil, gas, or other minerals at the wellhead or
261438 minehead is a person in the business of selling goods of that kind.
262439 A buyer in ordinary course of business may buy for cash, by exchange
263440 of other property, or on secured or unsecured credit, and may
264441 acquire goods or documents of title under a preexisting contract for
265442 sale. Only a buyer that takes possession of the goods or has a
266443 right to recover the goods from the seller under Article 2 may be a
267444 buyer in ordinary course of business. "Buyer in ordinary course of
268445 business" does not inclu de a person that acquires goods in a
269446 transfer in bulk or as security for or total or partial satisfaction
270447 of a money debt.
271- ENR. H. B. NO. 2776 Page 7
272448 (10) "Conspicuous", with reference to a term , means so written,
273449 displayed, or presented that , based on the totality of the
274450 circumstances, a reasonable person against whom it is to operate
275451 ought to have noticed it. Whether a term is "conspicuous" or not is
276452 a decision for the court. Conspicuous terms include the following:
277-
278453 (A) a heading in capitals equal to or g reater in size than
279454 the surrounding text, or in contrasting type, font, or
455+
456+SENATE FLOOR VERSION - HB2776 SFLR Page 8
457+(Bold face denotes Committee Amendments) 1
458+2
459+3
460+4
461+5
462+6
463+7
464+8
465+9
466+10
467+11
468+12
469+13
470+14
471+15
472+16
473+17
474+18
475+19
476+20
477+21
478+22
479+23
480+24
481+
280482 color to the surrounding text of same or lesser size;
281483 and
282-
283484 (B) language in the body of a record or display in larger
284485 type than the surrounding text of the same size, or
285486 set off from surrounding text of the same size by
286487 symbols or other marks that call attention to the
287488 language.
288-
289489 (11) "Consumer" means an individual who enters into a
290490 transaction primarily for personal, family, or household purposes.
291-
292491 (12) "Contract", as distinguished fr om "agreement", means th e
293492 total legal obligation that results from the parties' agreement as
294493 determined by the provisions of the Uniform Commercial Code as
295494 supplemented by any other applicable laws.
296-
297495 (13) "Creditor" includes a general creditor, a secured
298496 creditor, a lien creditor, and any representative of creditors,
299497 including an assignee for the benefit of creditors, a trustee in
300498 bankruptcy, a receiver in equity, and an executor or administrator
301499 of an insolvent debtor's or assignor's estate.
302-
303500 (14) "Defendant" includes a person in the position of defendant
304501 in a counterclaim, cross -claim, or third-party claim.
305-
306502 (15) "Delivery", with respect to an electronic document of
307503 title, means voluntary transfer of control and , with respect to an
308504 instrument, a tangible d ocument of title, or an authoritative
505+
506+SENATE FLOOR VERSION - HB2776 SFLR Page 9
507+(Bold face denotes Committee Amendments) 1
508+2
509+3
510+4
511+5
512+6
513+7
514+8
515+9
516+10
517+11
518+12
519+13
520+14
521+15
522+16
523+17
524+18
525+19
526+20
527+21
528+22
529+23
530+24
531+
309532 tangible copy of a record evidencing chattel paper, means voluntary
310533 transfer of possession.
311-
312534 (16) "Document of title" means a record that in the regular
313535 course of business or financing is treated as adequately evidenci ng
314536 that the person in po ssession or control of the record is entitled
315537 to receive, control, hold, and dispose of the record and the goods
316-the record covers and that purports to be issued by or addressed t o ENR. H. B. NO. 2776 Page 8
538+the record covers and that purports to be issued by or addressed to
317539 a bailee and to cover goods in the bailee's possess ion which are
318540 either identified or are fungible portions of an identified mass.
319541 The term includes a bill of lading, transport document, dock
320542 warrant, dock receipt, warehouse receipt, and order for delivery of
321543 goods. An electronic document of title means a document of title
322544 evidenced by a record consisting of information stored in an
323545 electronic medium. A tangible document of title means a document of
324546 title evidenced by a record consisting of information that is
325547 inscribed on a tangible medium.
326-
327548 (16A) "Electronic" means relating to technology having
328549 electrical, digital, magnetic, wireless, optical, electromagnetic,
329550 or similar capabilities.
330-
331551 (17) "Fault" means a default, breach, or wrongful act or
332552 omission.
333-
334553 (18) "Fungible goods" means:
335-
336554 (A) goods of which any unit, by nature or usag e of trade,
337555 is the equivalent of any other like unit; or
338556
557+SENATE FLOOR VERSION - HB2776 SFLR Page 10
558+(Bold face denotes Committee Amendments) 1
559+2
560+3
561+4
562+5
563+6
564+7
565+8
566+9
567+10
568+11
569+12
570+13
571+14
572+15
573+16
574+17
575+18
576+19
577+20
578+21
579+22
580+23
581+24
582+
339583 (B) goods that by agreement are treated as equivalent.
340-
341584 (19) "Genuine" means free of forgery or counterfeiting.
342-
343585 (20) "Good faith", except as otherwise provided in Article 5 o f
344586 this title, means honesty in fact and the observance of reasonable
345587 commercial standards of fair dealing.
346-
347588 (21) "Holder" means:
348-
349589 (A) the person in possession of a negotiable instrument
350590 that is payable either to bearer or to an identified
351591 person that is the person in possession;
352-
353592 (B) the person in possession of a document of title if the
354593 goods are deliverable either to bearer or to the order
355594 of the person in possession; or
356-
357595 (C) the person in control , other than pursuant to
358596 subsection (g) of Section 7 -106 of this title, of a
359597 negotiable electronic document of title.
360- ENR. H. B. NO. 2776 Page 9
361598 (22) "Insolvency proceeding" includes any assignment for the
362599 benefit of creditors or other proceeding intended to liquidate or
363600 rehabilitate the estate of the person involved.
364-
365601 (23) "Insolvent" means:
366-
367602 (A) having generally ceased to pay debts in the ordinary
368603 course of business other than as a result of bona fide
369604 dispute;
370-
371605 (B) being unable to pay debts as they become due; or
606+
607+SENATE FLOOR VERSION - HB2776 SFLR Page 11
608+(Bold face denotes Committee Amendments) 1
609+2
610+3
611+4
612+5
613+6
614+7
615+8
616+9
617+10
618+11
619+12
620+13
621+14
622+15
623+16
624+17
625+18
626+19
627+20
628+21
629+22
630+23
631+24
372632
373633 (C) being insolvent within the meaning of the federal
374634 bankruptcy law.
375-
376635 (24) "Money" means a medium of exchange that is authorized or
377636 adopted by a domestic or foreign government and is not in an
378637 electronic form. The term includes a monetary unit of account
379638 established by an intergovernmental organization or by agreement
380639 between two or more countries.
381-
382640 (25) "Organization" means a person other than an individual.
383-
384641 (26) "Party", as distinguished from "third party", means a
385642 person who has engaged in a transaction or made an agreement subject
386643 to the Uniform Commercial Code.
387-
388644 (27) "Person" means an individual, corporation, business trust,
389645 estate, trust, partnership, limited liability company, association,
390646 joint venture, government, governmental subdivision, agency, or
391647 instrumentality, public corporation, or any other legal or
392648 commercial entity. The term includes a p rotected series, however
393649 denominated, of an entity if the protected series is established
394650 under law other than the Uniform Commercial Code that limits, or
395651 limits if conditions specified under the law are satisfied, the
396652 ability of a creditor of the entity or of any other protected series
397653 of the entity to satisfy a claim from assets of the protected
398654 series.
399-
400655 (28) "Present value" means the amount as of a date certain of
401656 one or more sums payable in the future, discounted to the date
657+
658+SENATE FLOOR VERSION - HB2776 SFLR Page 12
659+(Bold face denotes Committee Amendments) 1
660+2
661+3
662+4
663+5
664+6
665+7
666+8
667+9
668+10
669+11
670+12
671+13
672+14
673+15
674+16
675+17
676+18
677+19
678+20
679+21
680+22
681+23
682+24
683+
402684 certain by use of either an interest rate specified by the parties
403685 if that rate is not manifestly unreasonable at the time the
404686 transaction is entered into or, if an interest rate is not so
405-specified, a commercially reasonable rate that takes into accoun t ENR. H. B. NO. 2776 Page 10
687+specified, a commercially reasonable rate that takes into account
406688 the facts and circumstances at the time the transaction is entered
407689 into.
408-
409690 (29) "Purchase" means taking by sale, discount, negotiation,
410691 mortgage, pledge, lien, security interest, issue or reissue, gift,
411692 or any other voluntary transaction creating an interest in property.
412-
413693 (30) "Purchaser" means a person who takes by purchase.
414-
415694 (31) "Record" means information that is inscribed on a tangible
416695 medium or that is stored in an electronic or other medium and is
417696 retrievable in perceivable form.
418-
419697 (32) "Remedy" means any re medial right to which an aggrieved
420698 party is entitled with or without resort to a tribunal.
421-
422699 (33) "Representative" means a person empowered to act for
423700 another, including an agent, an officer of a corporation or
424701 association, and a trustee, executor, or admin istrator of an estate.
425-
426702 (34) "Right" includes remedy.
427-
428703 (35) "Security interest" means an interest in personal property
429704 or fixtures which secures payment or performance of an obligation.
430705 "Security interest" includes any interest of a consignor and a buyer
431706 of accounts, chattel paper, a payment intangible, or a promissory
432707 note in a transaction that is subject to Article 9 of this title.
708+
709+SENATE FLOOR VERSION - HB2776 SFLR Page 13
710+(Bold face denotes Committee Amendments) 1
711+2
712+3
713+4
714+5
715+6
716+7
717+8
718+9
719+10
720+11
721+12
722+13
723+14
724+15
725+16
726+17
727+18
728+19
729+20
730+21
731+22
732+23
733+24
734+
433735 "Security interest" does not include the special property interest
434736 of a buyer of goods on identification of those goods to a contract
435737 for sale under Section 2-401 of this title, but a buyer may also
436738 acquire a "security interest" by complying with the provisions of
437739 Article 9 of this title. Except as otherwise provided in Section 2 -
438740 505 of this title, the right of a seller or le ssor of goods under
439741 Article 2 or 2A of this title to retain or acquire possession of the
440742 goods is not a "security interest", but a seller or lessor may also
441743 acquire a "security interest" by complying with Article 9 of this
442744 title. The retention or reservat ion of title by a seller of goods
443745 notwithstanding shipment or delivery to the buyer under Section 2 -
444746 401 of this title is limited in effect to a reservation of a
445747 "security interest". Whether a transaction in the form of a lease
446748 creates security interest is determined pursuant to Section 1 -203 of
447749 this title.
448-
449750 (36) "Send", in connection with any writing, a record, or
450-notice notification means: ENR. H. B. NO. 2776 Page 11
451-
751+notice notification means:
452752 (A) to deposit in the mail or, deliver for transmission ,
453753 or transmit by any other usual means of communication ,
454754 with postage or cost of trans mission provided for and
455755 properly addressed and, in the case of an instrument,
456756 to an address specified thereon or otherwise agreed,
457757 or if there be none, addressed to any address
458758 reasonable under the circumstances; or
459759
760+SENATE FLOOR VERSION - HB2776 SFLR Page 14
761+(Bold face denotes Committee Amendments) 1
762+2
763+3
764+4
765+5
766+6
767+7
768+8
769+9
770+10
771+11
772+12
773+13
774+14
775+15
776+16
777+17
778+18
779+19
780+20
781+21
782+22
783+23
784+24
785+
460786 (B) in any other way to cause to be received any record or
461787 notice within the time at which it would have arrived
462788 if properly sent to cause the record or notification
463789 to be received within the time it would have been
464790 received if properly sent under subparagraph (A) of
465791 this paragraph.
466-
467792 (37) "Signed" includes any symbol executed or adopted with
468793 present intention to adopt or accept a writing "Sign" means, with
469794 present intent to authenticate or adopt a record:
470-
471795 (A) execute or adopt a tangible symbol; or
472-
473796 (B) attach to or logical ly associate with the record an
474797 electronic symbol, sound, or process.
475-
476798 "Signed", "signing", and "signature" have corresponding meanings .
477-
478799 (38) "State" means a state of the United States, the District
479800 of Columbia, Puerto Rico, the United States Virgin Island s, or any
480801 territory or insular possession subject to the jurisdiction of the
481802 United States.
482-
483803 (39) "Surety" includes guarantor or other secondary obligor.
484-
485804 (40) "Term" means a portion of an agreement which relates to a
486805 particular matter.
487-
488806 (41) "Unauthorized signature" means a signature made without
489807 actual, implied or apparent authority. The term includes a forgery.
490-
491808 (42) "Warehouse receipt" means a document of title issued by a
492809 person engaged in the business of storing goods for hire.
493- ENR. H. B. NO. 2776 Page 12
810+
811+SENATE FLOOR VERSION - HB2776 SFLR Page 15
812+(Bold face denotes Committee Amendments) 1
813+2
814+3
815+4
816+5
817+6
818+7
819+8
820+9
821+10
822+11
823+12
824+13
825+14
826+15
827+16
828+17
829+18
830+19
831+20
832+21
833+22
834+23
835+24
836+
494837 (43) "Writing" includ es printing, typewriting , or any other
495838 intentional reduction to tangible form. "Written" has a
496839 corresponding meaning.
497-
498840 SECTION 2. AMENDATORY 12A O.S. 2021, Section 1 -204, is
499841 amended to read as follows:
500-
501842 Section 1-204.
502-
503843 "Value".
504-
505844 Except as otherwise provided in Articles 3, 4 and, 5, 6, and 12
506845 of the Uniform Commercial Code, a person gives value for rights if
507846 the person acquires them:
508-
509847 (1) in return for a binding commitment to extend credit or for
510848 the extension of immediately available credit, whether or not d rawn
511849 upon and whether or not a charge -back is provided for in the event
512850 of difficulties in collection;
513-
514851 (2) as security for, or in total or partial satisfaction of, a
515852 preexisting claim;
516-
517853 (3) by accepting delivery under a preexisting contract for
518854 purchase; or
519-
520855 (4) in return for any consideration sufficient to support a
521856 simple contract.
522-
523857 SECTION 3. AMENDATORY 12A O.S. 2021, Section 1 -301, is
524858 amended to read as follows:
525-
526859 Section 1-301. Territorial Applicability; Parties' Power to
527860 Choose Applicable Law.
861+
862+SENATE FLOOR VERSION - HB2776 SFLR Page 16
863+(Bold face denotes Committee Amendments) 1
864+2
865+3
866+4
867+5
868+6
869+7
870+8
871+9
872+10
873+11
874+12
875+13
876+14
877+15
878+16
879+17
880+18
881+19
882+20
883+21
884+22
885+23
886+24
528887
529888 (a) Except as provided hereafter in this section, when a
530889 transaction bears a reasonable relation to this state and also to
531890 another state or nation, the parties may agree that the law either
532891 of this state or of suc h other state or nation shall govern their
533892 rights and duties. Failing such agreement, this title applies to
534893 transactions bearing an appropriate relation to this state.
535-
536894 (b) To the extent that the Uniform Commercial Code governs a
537895 transaction, if one of th e following provisions o f the Uniform
538-Commercial Code specifies the applicable law, that prov ision governs ENR. H. B. NO. 2776 Page 13
896+Commercial Code specifies the applicable law, that provision governs
539897 and a contrary agreement is effective only to the extent permitted
540898 by the law so specified:
541-
542899 (1) Section 2-402 of this title;
543-
544900 (2) Sections 2A-105 and 2A-106 of this title;
545-
546901 (3) Section 4-102 of this title;
547-
548902 (4) Section 4A-507 of this title;
549-
550903 (5) Section 5-116 of this title;
551-
552904 (6) Section 8-110 of this title; and
553-
554905 (7) Sections 1-9-301 through 1-9-307 of this title; and
555-
556906 (8) Section 12-107 of this title.
557-
558907 SECTION 4. AMENDATORY 12A O.S. 2021, Section 1 -306, is
559908 amended to read as follows:
560-
561909 Section 1-306. Waiver or Renunciation of Claim or Right after
562910 Breach.
911+
912+SENATE FLOOR VERSION - HB2776 SFLR Page 17
913+(Bold face denotes Committee Amendments) 1
914+2
915+3
916+4
917+5
918+6
919+7
920+8
921+9
922+10
923+11
924+12
925+13
926+14
927+15
928+16
929+17
930+18
931+19
932+20
933+21
934+22
935+23
936+24
563937
564938 A claim or right arising out of an alleged breach may be
565939 discharged in whole or in part without consideration by agreement of
566940 the aggrieved party in an authenticated a signed record.
567-
568941 SECTION 5. AMENDATORY 12A O.S. 2021, Section 2 -102, is
569942 amended to read as follows:
570-
571943 Section 2-102. Scope; Certain Security and Other Transactions
572944 Excluded from this Article.
573-
574945 (a) Unless the context otherwise requires, and except as
575946 provided in subsection (c) of this section, this article applies to
576947 transactions in goods ; it does not apply to any transaction which
577948 although in the form of an unconditional contract to sell or present
578949 sale is intended to operate only as a security transaction nor does
579950 this article impair or repeal any statute regulating sales to
580951 consumers, farmers or other specified classes of buyers and, in the
581952 case of a hybrid transact ion, it applies to the extent provided in
582953 subsection (b) of this section.
583- ENR. H. B. NO. 2776 Page 14
584954 (b) In a hybrid transaction:
585-
586955 (1) If the sale-of-goods aspects do not predominate, only the
587956 provisions of this article which relate primarily to the sale -of-
588957 goods aspects of the transaction apply, and the provisions that
589958 relate primarily to the transaction as a whole do not apply.
590-
591959 (2) If the sale-of-goods aspects predominate, this article
592960 applies to the transaction but does not preclude application, in
961+
962+SENATE FLOOR VERSION - HB2776 SFLR Page 18
963+(Bold face denotes Committee Amendments) 1
964+2
965+3
966+4
967+5
968+6
969+7
970+8
971+9
972+10
973+11
974+12
975+13
976+14
977+15
978+16
979+17
980+18
981+19
982+20
983+21
984+22
985+23
986+24
987+
593988 appropriate circumstances, of other law to aspects of the
594989 transaction which do not relate to the sale of goods.
595-
596990 (c) This article does not:
597-
598991 (1) Apply to a transaction that, even though in the form of an
599992 unconditional contract to sell or present sale, operates o nly to
600993 create a security interest; or
601-
602994 (2) Impair or repeal a statute regulating sales to consumers,
603995 farmers, or other specified classes of buyers .
604-
605996 SECTION 6. AMENDATORY 12A O.S. 2021, Section 2 -106, is
606997 amended to read as follows:
607-
608998 Section 2-106. Definitions: "Contract"; "Agreement"; "Contract
609999 for Sale"; "Sale"; "Present Sale"; "Conforming" to Contract;
6101000 "Termination"; "Cancellation" ; "Hybrid Transaction" .
611-
6121001 (1) In this article , unless the context otherwise requires ,
6131002 "contract" and "agreement" are limited to those relating to the
6141003 present or future sale of goods. "Contract for sale" includes both
6151004 a present sale of goods and a contract to sell goods at a future
6161005 time but does not include a license of information. A "sale"
6171006 consists in the passing of title from the seller to the buyer for a
6181007 price (Section 2-401). A "present sale" means a sale which is
6191008 accomplished by the making of the contract.
620-
6211009 (2) Goods or conduct including any part of a performance are
6221010 "conforming" or conform to the c ontract when they are in accordance
6231011 with the obligations under the contract.
6241012
1013+SENATE FLOOR VERSION - HB2776 SFLR Page 19
1014+(Bold face denotes Committee Amendments) 1
1015+2
1016+3
1017+4
1018+5
1019+6
1020+7
1021+8
1022+9
1023+10
1024+11
1025+12
1026+13
1027+14
1028+15
1029+16
1030+17
1031+18
1032+19
1033+20
1034+21
1035+22
1036+23
1037+24
1038+
6251039 (3) "Termination" occurs when either party pursuant to a power
6261040 created by agreement or law puts an end to the contract otherwise
627-than for its breach. On "termination" all obligations which are ENR. H. B. NO. 2776 Page 15
1041+than for its breach. On "termination" all obliga tions which are
6281042 still executory on both sides are discharged but any right based on
6291043 prior breach or performance survives.
630-
6311044 (4) "Cancellation" occurs when either party puts an end to the
6321045 contract for breach by the other and its effect is the same as that
6331046 of "termination" except that the canceling party also retains any
6341047 remedy for breach of the whole contract or any unperformed balance.
635-
6361048 (5) "Hybrid transaction" means a single transaction involving a
6371049 sale of goods and:
638-
6391050 (a) the provision of services;
640-
6411051 (b) a lease of other goods; or
642-
6431052 (c) a sale, lease, or license of property other than
6441053 goods.
645-
6461054 SECTION 7. AMENDATORY 12A O.S. 2021, Section 2 -201, is
6471055 amended to read as follows:
648-
6491056 Section 2-201. (1) Except as otherwise provided in this
6501057 section, a contract for the sale of goods for the price of Five
6511058 Hundred Dollars ($500.00) or more is not enforceable by way of
6521059 action or defense unless there is some writing a record sufficient
6531060 to indicate that a contract for sale has been made between the
6541061 parties and signed by the part y against whom enforcement is sought
6551062 or by his the party's authorized agent or broker. A writing record
1063+
1064+SENATE FLOOR VERSION - HB2776 SFLR Page 20
1065+(Bold face denotes Committee Amendments) 1
1066+2
1067+3
1068+4
1069+5
1070+6
1071+7
1072+8
1073+9
1074+10
1075+11
1076+12
1077+13
1078+14
1079+15
1080+16
1081+17
1082+18
1083+19
1084+20
1085+21
1086+22
1087+23
1088+24
1089+
6561090 is not insufficient because it omits or incorrectly states a term
6571091 agreed upon but the contract is not enforceable under this pa ragraph
6581092 beyond the quantity of goods shown in such writing the record.
659-
6601093 (2) Between merchants if within a reasonable time a writing
6611094 record in confirmation of the contract and sufficient against the
6621095 sender is received and the party receiving it has reason t o know its
6631096 contents, it satisfies the requirements of subsection (1) against
6641097 such the party unless written notice in a record of objection to its
6651098 contents is given within ten (10) days after it is received.
666-
6671099 (3) A contract which does not satisfy the requir ements of
6681100 subsection (1) but which is valid in other respects is enforceable :
669-
6701101 (a) if the goods are to be specially manufactured for the
6711102 buyer and are not suitable for sale to others in the ordinary course
672-of the seller's business and the seller, before notice of ENR. H. B. NO. 2776 Page 16
1103+of the seller's business and the seller, before no tice of
6731104 repudiation is received and under circumstances which reasonably
6741105 indicate that the goods are for the buyer, has made either a
6751106 substantial beginning of their manufacture or commitments for their
6761107 procurement; or
677-
6781108 (b) if the party against whom enforce ment is sought admits
6791109 in his pleading, testimony or otherwise in court that a contract for
6801110 sale was made, but the contract is not enforceable under this
6811111 provision beyond the quantity of goods admitted; or
6821112
1113+SENATE FLOOR VERSION - HB2776 SFLR Page 21
1114+(Bold face denotes Committee Amendments) 1
1115+2
1116+3
1117+4
1118+5
1119+6
1120+7
1121+8
1122+9
1123+10
1124+11
1125+12
1126+13
1127+14
1128+15
1129+16
1130+17
1131+18
1132+19
1133+20
1134+21
1135+22
1136+23
1137+24
1138+
6831139 (c) with respect to goods for which payment has be en made
6841140 and accepted or which have been received and accepted (Section 2 -
6851141 606).
686-
6871142 SECTION 8. AMENDATORY 12A O.S. 2021, Section 2 -202, is
6881143 amended to read as follows:
689-
6901144 Section 2-202. Final Written Expression: Parol or Extrinsic
6911145 Evidence.
692-
6931146 Terms with respect to which the confirmatory memoranda of the
6941147 parties agree or which are otherwise set forth in a writing record
6951148 intended by the parties as a final expression of their agreement
6961149 with respect to such terms as are included therein may not be
6971150 contradicted by evide nce of any prior agreement or of a
6981151 contemporaneous oral agreement but may be explained or supplemented:
699-
7001152 (a) by course of performance, course of dealing or usage of
7011153 trade (Section 16 of this act); and
702-
7031154 (b) by evidence of consistent additional terms unless the court
7041155 finds the writing record to have been intended also as a complete
7051156 and exclusive statement of the terms of the agreement.
706-
7071157 SECTION 9. AMENDATORY 12A O.S. 2021, Section 2 -203, is
7081158 amended to read as f ollows:
709-
7101159 Section 2-203. The affixing of a seal to a writing record
7111160 evidencing a contract for sale or an offer to buy or sell goods does
7121161 not constitute the writing record a sealed instrument and the law
1162+
1163+SENATE FLOOR VERSION - HB2776 SFLR Page 22
1164+(Bold face denotes Committee Amendments) 1
1165+2
1166+3
1167+4
1168+5
1169+6
1170+7
1171+8
1172+9
1173+10
1174+11
1175+12
1176+13
1177+14
1178+15
1179+16
1180+17
1181+18
1182+19
1183+20
1184+21
1185+22
1186+23
1187+24
1188+
7131189 with respect to sealed instruments does not apply to s uch a contract
7141190 or offer.
715-
7161191 SECTION 10. AMENDATORY 12A O.S. 2021, Section 2 -205, is
717-amended to read as follows: ENR. H. B. NO. 2776 Page 17
718-
1192+amended to read as follows:
7191193 Section 2-205. An offer by a merchant to buy or sell goods in a
7201194 signed writing record which by its terms gives assurance that it
7211195 will be held open is not revocable, for lack of consideration,
7221196 during the time stated or if no time is stated for a reasonable
7231197 time, but in no event may such period of irrevocability exceed three
7241198 (3) months; but any such term of assurance on a form supplied by the
7251199 offeree must be separately signed by the offeror.
726-
7271200 SECTION 11. AMENDATORY 12A O.S. 2021, Section 2 -209, is
7281201 amended to read as follows:
729-
7301202 Section 2-209. (1) An agreement modifying a contract within
7311203 this article needs no consideration to be binding.
732-
7331204 (2) A signed agreement which excludes modification or
7341205 rescission except by a signed writing or other signed record cannot
7351206 be otherwise modified or rescinded, but except as between merchants
7361207 such a requirement on a form sup plied by the merchant must be
7371208 separately signed by the other party.
738-
7391209 (3) The requirements of the statute of frauds section of this
7401210 article (Section 2-201) must be satisfied if the contract as
7411211 modified is within its provisions.
7421212
1213+SENATE FLOOR VERSION - HB2776 SFLR Page 23
1214+(Bold face denotes Committee Amendments) 1
1215+2
1216+3
1217+4
1218+5
1219+6
1220+7
1221+8
1222+9
1223+10
1224+11
1225+12
1226+13
1227+14
1228+15
1229+16
1230+17
1231+18
1232+19
1233+20
1234+21
1235+22
1236+23
1237+24
1238+
7431239 (4) Although an attempt at m odification or rescissio n does not
7441240 satisfy the requirements of subsection (2) or (3) it can operate as
7451241 a waiver.
746-
7471242 (5) A party who has made a waiver affecting an executory
7481243 portion of the contract may retract the waiver by reasonable
7491244 notification received by the other party that strict performance
7501245 will be required of any term waived, unless the retraction would be
7511246 unjust in view of a material change of position in reliance on the
7521247 waiver.
753-
7541248 SECTION 12. AMENDATORY 12A O.S. 2021, Section 2 A-102, is
7551249 amended to read as follows:
756-
7571250 Section 2A-102.
758-
7591251 SCOPE
760-
7611252 (1) This article applies to any transaction, regardless of
762-form, that creates a lease of goods and, in the case of a hybrid ENR. H. B. NO. 2776 Page 18
1253+form, that creates a lease of goods and, in the case of a hybrid
7631254 lease, it applies to the extent provided in paragraph (2) of this
7641255 section.
765-
7661256 (2) In a hybrid lease:
767-
7681257 (a) if the lease-of-goods aspects do not predominate:
769-
7701258 (i) only the provisions of this article which relate
7711259 primarily to the lease -of-goods aspects of the
7721260 transaction apply, and the provisions that relate
7731261 primarily to the transac tion as a whole do not
7741262 apply;
7751263
1264+SENATE FLOOR VERSION - HB2776 SFLR Page 24
1265+(Bold face denotes Committee Amendments) 1
1266+2
1267+3
1268+4
1269+5
1270+6
1271+7
1272+8
1273+9
1274+10
1275+11
1276+12
1277+13
1278+14
1279+15
1280+16
1281+17
1282+18
1283+19
1284+20
1285+21
1286+22
1287+23
1288+24
1289+
7761290 (ii) Section 2A-209 of this title applies if the lease
7771291 is a finance lease; and
778-
7791292 (iii) Section 2A-407 of this title applies to the
7801293 promises of the lessee in a finance lease to the
7811294 extent the promises are consideration for the
7821295 right to possession and use of the leased goods;
7831296 and
784-
7851297 (b) if the lease-of-goods aspects predominate, this
7861298 article applies to the transaction, but does not
7871299 preclude application, in appropriate circumstances, of
7881300 other law to aspects of the lease which do not re late
7891301 to the lease of goods.
790-
7911302 SECTION 13. AMENDATORY 12A O.S. 2021, Section 2A -103, is
7921303 amended to read as follows:
793-
7941304 Section 2A-103.
795-
7961305 DEFINITIONS AND INDEX OF DEFINITIONS
797-
7981306 (1) In this article unless the context otherwise requires:
799-
8001307 (a) "Buyer in the ordinary course of business" means a
8011308 person who in good faith and without knowledge that
8021309 the sale to him or her is in violation of the
8031310 ownership rights or security interest or leasehold
8041311 interest of a third party in the goods, buys in the
8051312 ordinary course from a person in the business of
8061313 selling goods of that kind but does not include a
807-pawnbroker. "Buying" may be for cash or by exchange ENR. H. B. NO. 2776 Page 19
1314+
1315+SENATE FLOOR VERSION - HB2776 SFLR Page 25
1316+(Bold face denotes Committee Amendments) 1
1317+2
1318+3
1319+4
1320+5
1321+6
1322+7
1323+8
1324+9
1325+10
1326+11
1327+12
1328+13
1329+14
1330+15
1331+16
1332+17
1333+18
1334+19
1335+20
1336+21
1337+22
1338+23
1339+24
1340+
1341+pawnbroker. "Buying" may be for cash or by exchange
8081342 of other property or on secured or unsecured credit
8091343 and includes acquiring goods or documents of title
8101344 under a preexisting contract for sale but does not
8111345 include a transfer in bulk or as security for or in
8121346 total or partial satisfaction of a money debt.
813-
8141347 (b) "Cancellation" occurs when either party puts an end to
8151348 the lease contract for default by the other party.
816-
8171349 (c) "Commercial unit" mean s such a unit of goods as by
8181350 commercial usage is a single whole for purposes of
8191351 lease and division of which materially impairs its
8201352 character or value on the market or in use. A
8211353 commercial unit may be a single article, as a machine,
8221354 or a set of articles, as a suite of furniture or a
8231355 line of machinery, or a quantity, as a gross or
8241356 carload, or any other unit treated in use or in the
8251357 relevant market as a single whole.
826-
8271358 (d) "Conforming" goods or performance under a lease
8281359 contract means goods or performance that are in
8291360 accordance with the obligations under the lease
8301361 contract.
831-
8321362 (e) "Consumer lease" means a lease that a lessor regularly
8331363 engaged in the business of leasing or selling makes to
8341364 a lessee who is an individual and who takes under the
1365+
1366+SENATE FLOOR VERSION - HB2776 SFLR Page 26
1367+(Bold face denotes Committee Amendments) 1
1368+2
1369+3
1370+4
1371+5
1372+6
1373+7
1374+8
1375+9
1376+10
1377+11
1378+12
1379+13
1380+14
1381+15
1382+16
1383+17
1384+18
1385+19
1386+20
1387+21
1388+22
1389+23
1390+24
1391+
8351392 lease primarily for a personal, family, or household
8361393 purpose, if the total payments to be made under the
8371394 lease contract, excluding payments for options to
8381395 renew or buy, do not exceed Forty -five Thousand
8391396 Dollars ($45,000.00).
840-
8411397 (f) "Fault" means wrongful act , omission, breach, or
8421398 default.
843-
8441399 (g) "Finance lease" means a lease with respect to which:
845-
8461400 (i) the lessor does not select, manufacture or supply
8471401 the goods;
848-
8491402 (ii) the lessor acquires the goods or the right to
8501403 possession and use of the goods in connection
8511404 with the lease; and
852- ENR. H. B. NO. 2776 Page 20
8531405 (iii) one of the following occurs:
854-
8551406 (A) the lessee receives a copy of the contract
8561407 by which the lessor acquired the goods or
8571408 the right to possession and use of the goods
8581409 before signing the lease contract;
859-
8601410 (B) the lessee's approval of the cont ract by
8611411 which the lessor acquired the goods or the
8621412 right to possession and use of the goods is
8631413 a condition to effectiveness of the lease
8641414 contract;
1415+
1416+SENATE FLOOR VERSION - HB2776 SFLR Page 27
1417+(Bold face denotes Committee Amendments) 1
1418+2
1419+3
1420+4
1421+5
1422+6
1423+7
1424+8
1425+9
1426+10
1427+11
1428+12
1429+13
1430+14
1431+15
1432+16
1433+17
1434+18
1435+19
1436+20
1437+21
1438+22
1439+23
1440+24
8651441
8661442 (C) the lessee, before signing the lease
8671443 contract, receives an accurate and complete
8681444 statement designating th e promises and
8691445 warranties, and any disclaimers of
8701446 warranties, limitations or modifications of
8711447 remedies, or liquidated damages, including
8721448 those of a third party, such as the
8731449 manufacturer of the goods, provided to the
8741450 lessor by the person supplying the goods in
8751451 connection with or a s part of the contract
8761452 by which the lessor acquired the goods or
8771453 the right to possession and use of the
8781454 goods; or
879-
8801455 (D) if the lease is not a consumer lease, the
8811456 lessor, before the lessee signs the lease
8821457 contract, informs the lessee i n writing (a)
8831458 of the identity of the person supplying the
8841459 goods to the lessor, unless the lessee has
8851460 selected that person and directed the lessor
8861461 to acquire the goods or the right to
8871462 possession and use of the goods from that
8881463 person, (b) that the lessee is entitled
8891464 under this article to the promises and
8901465 warranties, including those of any third
1466+
1467+SENATE FLOOR VERSION - HB2776 SFLR Page 28
1468+(Bold face denotes Committee Amendments) 1
1469+2
1470+3
1471+4
1472+5
1473+6
1474+7
1475+8
1476+9
1477+10
1478+11
1479+12
1480+13
1481+14
1482+15
1483+16
1484+17
1485+18
1486+19
1487+20
1488+21
1489+22
1490+23
1491+24
1492+
8911493 party, provided to the lessor by the person
8921494 supplying the goods in connection with or as
8931495 part of the contract by which the lessor
8941496 acquired the goods or the right to
8951497 possession and use of the goods, and (c)
8961498 that the lessee may communicate with the
897-person supplying the goods to the lessor and ENR. H. B. NO. 2776 Page 21
1499+person supplying the goods to the lessor and
8981500 receive an accurate and complete statement
8991501 of those promises and warranties, including
9001502 any disclaimers and limitations of them or
9011503 of remedies.
902-
9031504 (h) "Goods" means all things that are movable at the time
9041505 of identification to the lease contract, or are
9051506 fixtures (Section 2A -309 of this title). The term
9061507 includes future goods, specially manufactured goods,
9071508 and the unborn young of animals. The term does not
9081509 include information, the money in which the price is
9091510 to be paid, investment securities under Article 8 of
9101511 the Uniform Commercial Code, minerals or the like,
9111512 including oil and gas, before extraction, or choses in
9121513 action.
913-
9141514 (i) "Hybrid lease" means a single transact ion involving a
9151515 lease of goods and:
916-
9171516 (i) the provision of services;
9181517
1518+SENATE FLOOR VERSION - HB2776 SFLR Page 29
1519+(Bold face denotes Committee Amendments) 1
1520+2
1521+3
1522+4
1523+5
1524+6
1525+7
1526+8
1527+9
1528+10
1529+11
1530+12
1531+13
1532+14
1533+15
1534+16
1535+17
1536+18
1537+19
1538+20
1539+21
1540+22
1541+23
1542+24
1543+
9191544 (ii) a sale of other goods; or
920-
9211545 (iii) a sale, lease, or license of property other than
9221546 goods.
923-
9241547 (j) "Installment lease contract" means a lease contract
9251548 that authorizes or requires the delivery of goods in
9261549 separate lots to be separately accepted, even though
9271550 the lease contract contains a clause "each delivery is
9281551 a separate lease" or its equivalent.
929-
9301552 (j)
931-
9321553 (k) "Lease" means a transfer of the right to possession
9331554 and use of goods for a term in return for
9341555 consideration, but a sale, including a sale on
9351556 approval or a sale or return, or retention or creation
9361557 of a security interest or license of information is
9371558 not a lease. Unless the context clearly indicates
9381559 otherwise, the term inc ludes a sublease.
939-
9401560 (k)
941- ENR. H. B. NO. 2776 Page 22
9421561 (l) "Lease agreement" means the bargain, with respect to
9431562 the lease, of the lessor and the lessee in fact as
9441563 found in their language or by implication from other
9451564 circumstances including course of dealing of usage of
9461565 trade or course of performance as provided in this
9471566 article. Unless the context clearly indicates
9481567 otherwise, the term includes a sublease agreement.
9491568
1569+SENATE FLOOR VERSION - HB2776 SFLR Page 30
1570+(Bold face denotes Committee Amendments) 1
1571+2
1572+3
1573+4
1574+5
1575+6
1576+7
1577+8
1578+9
1579+10
1580+11
1581+12
1582+13
1583+14
1584+15
1585+16
1586+17
1587+18
1588+19
1589+20
1590+21
1591+22
1592+23
1593+24
1594+
9501595 (l)
951-
9521596 (m) "Lease contract" means the total legal obligation that
9531597 results from the lease agreement as affected by this
9541598 article and any other applicable rules of law. Unless
9551599 the context clearly indicates otherwise, the term
9561600 includes a sublease contract.
957-
9581601 (m)
959-
9601602 (n) "Leasehold interest" means the interest of the lessor
9611603 or the lessee under a lease contract.
962-
9631604 (n)
964-
9651605 (o) "Lessee" means a person who acquires the right to
9661606 possession and use of goods under a lease. Unless the
9671607 context clearly indicates otherwise, the term includes
9681608 a sublessee.
969-
9701609 (o)
971-
9721610 (p) "Lessee in the ordinary course of business" means a
9731611 person who in good faith and without knowledge that
9741612 the lease to him or her is in violation of the
9751613 ownership rights or security interest or leasehold
9761614 interest of a third party in the goods leases in the
9771615 ordinary course from a person in the business of
9781616 selling or leasing goods of that kind but does not
9791617 include a pawnbroker. "Leasing" may be for cash or by
9801618 exchange of other property or on secured or unsecured
1619+
1620+SENATE FLOOR VERSION - HB2776 SFLR Page 31
1621+(Bold face denotes Committee Amendments) 1
1622+2
1623+3
1624+4
1625+5
1626+6
1627+7
1628+8
1629+9
1630+10
1631+11
1632+12
1633+13
1634+14
1635+15
1636+16
1637+17
1638+18
1639+19
1640+20
1641+21
1642+22
1643+23
1644+24
1645+
9811646 credit and includes acquiring goods or documents of
9821647 title under a preexisting lease contract but does not
9831648 include a transfer in bulk or as securit y for or in
9841649 total or partial satisfaction of a money debt.
985-
986-(p) ENR. H. B. NO. 2776 Page 23
987-
1650+(p)
9881651 (q) "Lessor" means a person who transfers the right to
9891652 possession and use of goods under a lease. Unless the
9901653 context clearly indicates otherwise, the term includes
9911654 a sublessor.
992-
9931655 (q)
994-
9951656 (r) "Lessor's residual interest" me ans the lessor's
9961657 interest in the goods after expiration, termination,
9971658 or cancellation of the lease contract.
998-
9991659 (r)
1000-
10011660 (s) "Lien" means a charge against or interest in goods to
10021661 secure payment of a debt or performance of an
10031662 obligation, but the term does not include a security
10041663 interest.
1005-
10061664 (s)
1007-
10081665 (t) "Lot" means a parcel or a single article that is the
10091666 subject matter of a separate lease or delivery,
10101667 whether or not it is sufficient to perform the lease
10111668 contract.
1012-
10131669 (t)
1670+
1671+SENATE FLOOR VERSION - HB2776 SFLR Page 32
1672+(Bold face denotes Committee Amendments) 1
1673+2
1674+3
1675+4
1676+5
1677+6
1678+7
1679+8
1680+9
1681+10
1682+11
1683+12
1684+13
1685+14
1686+15
1687+16
1688+17
1689+18
1690+19
1691+20
1692+21
1693+22
1694+23
1695+24
10141696
10151697 (u) "Merchant lessee" means a le ssee that is a merchant
10161698 with respect to goods of the kind subject to the
10171699 lease.
1018-
10191700 (u)
1020-
10211701 (v) "Present value" means the amount as of a date certain
10221702 of one or more sums payable in the future, discounted
10231703 to the date certain. The discount is determined by
10241704 the interest rate specified by the parties if the rate
10251705 was not manifestly unreasonable at the time the
10261706 transaction was entered into; otherwise, the discount
10271707 is determined by a commercially reasonable rate that
10281708 takes into account the facts and circumstances of each
10291709 case at the time the tr ansaction was entered into.
1030-
1031-(v) ENR. H. B. NO. 2776 Page 24
1032-
1710+(v)
10331711 (w) "Purchase" includes taking by sale, lease, mortgage,
10341712 security interest, pledge, gift, or any other
10351713 voluntary transaction creating an interest in goods.
1036-
10371714 (w)
1038-
10391715 (x) "Sublease" means a lease of goods th e right to
10401716 possession and use of which was acquired by the lessor
10411717 as a lessee under an existing lease.
1042-
10431718 (x)
1044-
10451719 (y) "Supplier" means a person from whom a lessor buys or
10461720 leases goods to be leased under a finance lease.
10471721
1722+SENATE FLOOR VERSION - HB2776 SFLR Page 33
1723+(Bold face denotes Committee Amendments) 1
1724+2
1725+3
1726+4
1727+5
1728+6
1729+7
1730+8
1731+9
1732+10
1733+11
1734+12
1735+13
1736+14
1737+15
1738+16
1739+17
1740+18
1741+19
1742+20
1743+21
1744+22
1745+23
1746+24
1747+
10481748 (y)
1049-
10501749 (z) "Supply contract" means a contract under which a
10511750 lessor buys or leases goods to be leased.
1052-
10531751 (z)
1054-
10551752 (aa) "Termination" occurs when either party pursuant to a
10561753 power created by agreement or law puts an end to the
10571754 lease contract otherwise than for default.
1058-
10591755 (2) Other definitions applying to this ar ticle and the sections
10601756 in which they appear are:
1061-
10621757 "Accessions". Subsection (1) of Section 2A -310 of this
10631758 title.
1064-
10651759 "Construction mortgage". Paragraph (d) of subsection (1)
10661760 of Section 2A-309 of this title.
1067-
10681761 "Encumbrance". Paragraph (e) of subsection (1) of Se ction
10691762 2A-309 of this title.
1070-
10711763 "Fixtures". Paragraph (a) of subsection (1) of Section 2A -
10721764 309 of this title.
1073-
10741765 "Fixture filing". Paragraph (b) of subsection (1) of
10751766 Section 2A-309 of this title.
1076- ENR. H. B. NO. 2776 Page 25
10771767 "Purchase money lease". Paragraph (c) of subsection (1) of
10781768 Section 2A-309 of this title.
1079-
10801769 (3) The following definitions in other articles apply to this
10811770 article:
10821771
1772+SENATE FLOOR VERSION - HB2776 SFLR Page 34
1773+(Bold face denotes Committee Amendments) 1
1774+2
1775+3
1776+4
1777+5
1778+6
1779+7
1780+8
1781+9
1782+10
1783+11
1784+12
1785+13
1786+14
1787+15
1788+16
1789+17
1790+18
1791+19
1792+20
1793+21
1794+22
1795+23
1796+24
1797+
10831798 "Account". Paragraph (2) of subsection (a) of Section 1 -9-
10841799 102 of this title.
1085-
10861800 "Between merchants". Subsection (3) of Section 2 -104 of
10871801 this title.
1088-
10891802 "Buyer". Paragraph (a) of subsection (1) of Section 2-103
10901803 of this title.
1091-
10921804 "Chattel paper". Paragraph (11) of subsection (a) of
10931805 Section 1-9-102 of this title.
1094-
10951806 "Consumer goods". Paragraph (23) of subsection (a) of
10961807 Section 1-9-102 of this title.
1097-
10981808 "Document". Paragraph ( 30) of subsection (a) of Section 1 -
10991809 9-102 of this title.
1100-
11011810 "Entrusting". Paragraph (3) of Section 2 -403 of this
11021811 title.
1103-
11041812 "General intangible". Paragraph (42) of subsection (a) of
11051813 Section 1-9-102 of this title.
1106-
11071814 "Instrument". Paragraph (47) of subsection (a) o f Section
11081815 1-9-102 of this title.
1109-
11101816 "Merchant". Subsection (1) of Section 2 -104 of this title.
1111-
11121817 "Mortgage". Paragraph (55) of subsection (a) of Section 1 -
11131818 9-102 of this title.
1114-
11151819 "Pursuant to commitment". Paragraph (69) of subsection (a)
11161820 of Section 1-9-102 of this title.
11171821
1822+SENATE FLOOR VERSION - HB2776 SFLR Page 35
1823+(Bold face denotes Committee Amendments) 1
1824+2
1825+3
1826+4
1827+5
1828+6
1829+7
1830+8
1831+9
1832+10
1833+11
1834+12
1835+13
1836+14
1837+15
1838+16
1839+17
1840+18
1841+19
1842+20
1843+21
1844+22
1845+23
1846+24
1847+
11181848 "Receipt". Subsection (c) of paragraph (1) of Section 2 -
11191849 103 of this title.
1120-
1121-"Sale". Paragraph (1) of Section 2 -106 of this title. ENR. H. B. NO. 2776 Page 26
1122-
1850+"Sale". Paragraph (1) of Section 2 -106 of this title.
11231851 "Sale on approval". Section 2 -326 of this title.
1124-
11251852 "Sale or return". Section 2 -326 of this title.
1126-
11271853 "Seller". Subparagraph (c) of paragraph (1) of Section 2-
11281854 103 of this title.
1129-
11301855 (4) In addition, Article 1 of this title, contains general
11311856 definitions and principles of construction and interpretation
11321857 applicable throughout this article.
1133-
11341858 SECTION 14. AMENDATORY 12A O.S. 2021, Section 2A -107, is
11351859 amended to read as follows:
1136-
11371860 Section 2A-107.
1138-
11391861 WAIVER OR RENUNCIATION OF CLAIM OR RIGHT AFTER DEFAULT
1140-
11411862 Any claim or right arising out of an alleged default or breach
11421863 of warranty may be discharged in whole or in part without
11431864 consideration by a written waiver or renunciation in a signed and
11441865 record delivered by the aggrieved party.
1145-
11461866 SECTION 15. AMENDATORY 12A O.S. 2021, Section 2A -201, is
11471867 amended to read as follows:
1148-
11491868 Section 2A-201.
1150-
11511869 STATUTE OF FRAUDS
1152-
11531870 (1) A lease contract is not enforceable by way of action or
11541871 defense unless:
1872+
1873+SENATE FLOOR VERSION - HB2776 SFLR Page 36
1874+(Bold face denotes Committee Amendments) 1
1875+2
1876+3
1877+4
1878+5
1879+6
1880+7
1881+8
1882+9
1883+10
1884+11
1885+12
1886+13
1887+14
1888+15
1889+16
1890+17
1891+18
1892+19
1893+20
1894+21
1895+22
1896+23
1897+24
11551898
11561899 (a) the total payments to be made under the lease
11571900 contract, excluding payments for options to renew or buy, are less
11581901 than One Thousand Dollars ($1,000.00); or
1159-
11601902 (b) there is a writing record, signed by the party
11611903 against whom enforcement is sought or by that party's authorized
11621904 agent, sufficient to indicate that a lease contract has been made
11631905 between the parties and to describe the goods leased and the lease
11641906 term.
1165- ENR. H. B. NO. 2776 Page 27
11661907 (2) Any description of leased goods or of the lease term is
11671908 sufficient and satisfies paragraph (b) of subsection (1) of this
11681909 section, whether or not it is specific, if it reasonably identifies
11691910 what is described.
1170-
11711911 (3) A writing record is not insufficient because it omits o r
11721912 incorrectly states a t erm agreed upon, but the lease contract is not
11731913 enforceable under paragraph (b) of subsection (1) of this section
11741914 beyond the lease term and the quantity of goods shown in the writing
11751915 record.
1176-
11771916 (4) A lease contract that does not satisf y the requirements of
11781917 subsection (1) of this section, but which is valid in other
11791918 respects, is enforceable:
1180-
11811919 (a) if the goods are to be specially manufactured or
11821920 obtained for the lessee and are not suitable for lease or sale to
11831921 others in the ordinary course of the lessor's busines s, and the
11841922 lessor, before notice of repudiation is received and under
1923+
1924+SENATE FLOOR VERSION - HB2776 SFLR Page 37
1925+(Bold face denotes Committee Amendments) 1
1926+2
1927+3
1928+4
1929+5
1930+6
1931+7
1932+8
1933+9
1934+10
1935+11
1936+12
1937+13
1938+14
1939+15
1940+16
1941+17
1942+18
1943+19
1944+20
1945+21
1946+22
1947+23
1948+24
1949+
11851950 circumstances that reasonably indicate that the goods are for the
11861951 lessee, has made either a substantial beginning of their manufacture
11871952 or commitments for their pr ocurement;
1188-
11891953 (b) if the party against whom enforcement is sought
11901954 admits in that party's pleading, testimony or otherwise in court
11911955 that a lease contract was made, but the lease contract is not
11921956 enforceable under this provision beyond the quantity of goods
11931957 admitted; or
1194-
11951958 (c) with respect to goods that have been received
11961959 and accepted by the lessee.
1197-
11981960 (5) The lease term under a lease contract referred to in
11991961 subsection (4) of this section is:
1200-
12011962 (a) if there is a writing record signed by the party
12021963 against whom enforcemen t is sought or by that party's authorized
12031964 agent specifying the lease term, the term so specified;
1204-
12051965 (b) if the party against whom enforcement is sought
12061966 admits in that party's pleading, testimony, or otherwise in court a
12071967 lease term, the term so admitted; or
1208-
12091968 (c) a reasonable lease te rm.
1210- ENR. H. B. NO. 2776 Page 28
12111969 SECTION 16. AMENDATORY 12A O.S. 2021, Section 2A -202, is
12121970 amended to read as follows:
1213-
12141971 Section 2A-202.
1215-
12161972 FINAL WRITTEN EXPRESSION; PAROL OR EXTRINSIC EVIDENCE
1973+
1974+SENATE FLOOR VERSION - HB2776 SFLR Page 38
1975+(Bold face denotes Committee Amendments) 1
1976+2
1977+3
1978+4
1979+5
1980+6
1981+7
1982+8
1983+9
1984+10
1985+11
1986+12
1987+13
1988+14
1989+15
1990+16
1991+17
1992+18
1993+19
1994+20
1995+21
1996+22
1997+23
1998+24
12171999
12182000 Terms with respect to which the confirmatory mem oranda of the
12192001 parties agree or which are otherwise set forth in a writing record
12202002 intended by the parties as a final expression of their agreement
12212003 with respect to such terms as are included therein may not be
12222004 contradicted by evidence of any prior agreement or of a
12232005 contemporaneous oral agreement but may be explained or supplemented:
1224-
12252006 (a) by course of dealing or usage of trade or by
12262007 course of performance; and
1227-
12282008 (b) by evidence of consistent additional terms
12292009 unless the court finds the writing record to have been intended also
12302010 as a complete and exclusive statement of the terms of the agreement.
1231-
12322011 SECTION 17. AMENDATORY 12A O.S. 2021, Section 2A -203, is
12332012 amended to read as follows:
1234-
12352013 Section 2A-203.
1236-
12372014 SEALS INOPERATIVE
1238-
12392015 The affixing of a seal to a writing record evidencing a lease
12402016 contract or an offer to enter into a lease contract does not render
12412017 the writing record a sealed instrument and the law with respect to
12422018 sealed instruments does not apply to the lease contract or offer.
1243-
12442019 SECTION 18. AMENDATORY 12A O.S. 2021, Section 2A -205, is
12452020 amended to read as follows:
1246-
12472021 Section 2A-205.
1248-
12492022 FIRM OFFERS
2023+
2024+SENATE FLOOR VERSION - HB2776 SFLR Page 39
2025+(Bold face denotes Committee Amendments) 1
2026+2
2027+3
2028+4
2029+5
2030+6
2031+7
2032+8
2033+9
2034+10
2035+11
2036+12
2037+13
2038+14
2039+15
2040+16
2041+17
2042+18
2043+19
2044+20
2045+21
2046+22
2047+23
2048+24
12502049
12512050 An offer by a merchant to lease goods to or from another person
12522051 in a signed writing record that by its terms gives assurance it will
12532052 be held open is not revocable, f or lack of consideration, during the
12542053 time stated or, if no time is stated, for a reasonable time, but in
1255-no event may the period of irrevocability excee d three (3) months. ENR. H. B. NO. 2776 Page 29
2054+no event may the period of irrevocability exceed three (3) months.
12562055 Any such term of assurance on a form supplied by the offere e must be
12572056 separately signed by the offeror.
1258-
12592057 SECTION 19. AMENDATORY 12A O.S. 2021, Section 2A -208, is
12602058 amended to read as follows:
1261-
12622059 Section 2A-208.
1263-
12642060 MODIFICATION, RESCISSION , AND WAIVER
1265-
12662061 (1) An agreement modifying a lease contract need s no
12672062 consideration to be binding.
1268-
12692063 (2) A signed lease agreement that excludes modification or
12702064 rescission except by a signed writing record may not be otherwise
12712065 modified or rescinded, but, except as between merchants, such a
12722066 requirement on a form supplied b y a merchant must be separately
12732067 signed by the other party.
1274-
12752068 (3) Although an attempt at modification or rescission does not
12762069 satisfy the requirements of subsection (2) of this section, it may
12772070 operate as a waiver.
1278-
12792071 (4) A party who has made a waiver affecting an executory
12802072 portion of a lease contract may retract the waiver by reasonable
12812073 notification received by the other party that strict performance
2074+
2075+SENATE FLOOR VERSION - HB2776 SFLR Page 40
2076+(Bold face denotes Committee Amendments) 1
2077+2
2078+3
2079+4
2080+5
2081+6
2082+7
2083+8
2084+9
2085+10
2086+11
2087+12
2088+13
2089+14
2090+15
2091+16
2092+17
2093+18
2094+19
2095+20
2096+21
2097+22
2098+23
2099+24
2100+
12822101 will be required of any term waived, unless the retraction would be
12832102 unjust in view of a material change of positi on in reliance on the
12842103 waiver.
1285-
12862104 SECTION 20. AMENDATORY 12A O.S. 2021, Section 3 -104, is
12872105 amended to read as follows:
1288-
12892106 Section 3-104.
1290-
12912107 NEGOTIABLE INSTRUMENT
1292-
12932108 (a) Except as provided in subsections (c) and (d) of this
12942109 section, "negotiable instrument" means an unc onditional promise or
12952110 order to pay a fixed amount of money, with or without interest or
12962111 other charges described in the promise or order, if it:
1297-
12982112 (1) is payable to bearer or to order at the time it is
12992113 issued or first comes into posses sion of a holder;
1300- ENR. H. B. NO. 2776 Page 30
13012114 (2) is payable on demand or at a definite time; and
1302-
13032115 (3) does not state any other undertaking or instruction by
13042116 the person promising or ordering payment to do any act
13052117 in addition to the payment of money, but the promise
13062118 or order may contain (i) an undertaking or power to
13072119 give, maintain, or protect collateral to secure
13082120 payment, (ii) an authorization or power to the holder
13092121 to confess judgment or realize on or dispose of
13102122 collateral, or (iii) a waiver of the benefit of any
13112123 law intended for the advantage or protection of an
13122124 obligor, (iv) a term that specifies the law that
2125+
2126+SENATE FLOOR VERSION - HB2776 SFLR Page 41
2127+(Bold face denotes Committee Amendments) 1
2128+2
2129+3
2130+4
2131+5
2132+6
2133+7
2134+8
2135+9
2136+10
2137+11
2138+12
2139+13
2140+14
2141+15
2142+16
2143+17
2144+18
2145+19
2146+20
2147+21
2148+22
2149+23
2150+24
2151+
13132152 governs the promise or order, or (v) an undertaking to
13142153 resolve in a specified forum a dispute concerning the
13152154 promise or order.
1316-
13172155 (b) "Instrument" means a negotiable instrument.
1318-
13192156 (c) An order that meets all of the requirements of subsection
13202157 (a) of this section, except paragraph (1), and otherwise falls
13212158 within the definition of "check" in subsection (f) of this section
13222159 is a negotiable instrument and a check.
1323-
13242160 (d) A promise or order other than a check is not an instrument
13252161 if, at the time it is issued or first comes into possession of a
13262162 holder, it contains a conspicuous statement, however expressed, to
13272163 the effect that the promise or order is not negotiable or is not an
13282164 instrument governed by this article.
1329-
13302165 (e) An instrument is a "note" if it is a promise and is a
13312166 "draft" if it is an order. If an instrument falls within the
13322167 definition of both "note" and "draft", a person entitled to enforce
13332168 the instrument may treat it as either.
1334-
13352169 (f) "Check" means (i) a draft, other than a documentary draft,
13362170 payable on demand and drawn on a bank or (ii) a cashier's check or
13372171 teller's check. An instrument may be a check even though it is
13382172 described on its face by another term, such as "money order".
1339-
13402173 (g) "Cashier's check" means a draft with respect to which the
13412174 drawer and drawee are the same bank or branches of the same bank.
13422175
2176+SENATE FLOOR VERSION - HB2776 SFLR Page 42
2177+(Bold face denotes Committee Amendments) 1
2178+2
2179+3
2180+4
2181+5
2182+6
2183+7
2184+8
2185+9
2186+10
2187+11
2188+12
2189+13
2190+14
2191+15
2192+16
2193+17
2194+18
2195+19
2196+20
2197+21
2198+22
2199+23
2200+24
2201+
13432202 (h) "Teller's check" means a draft drawn by a bank (i) on
13442203 another bank, or (ii) payable at or through a bank.
1345- ENR. H. B. NO. 2776 Page 31
13462204 (i) "Traveler's check " means an instrument that (i) is payable
13472205 on demand, (ii) is drawn on or payable at or through a bank, (iii)
13482206 is designated by the term "traveler's check" or by a substantially
13492207 similar term, and (iv) requires, as a condition to payment, a
13502208 countersignature by a person whose specime n signature appears on the
13512209 instrument.
1352-
13532210 (j) "Certificate of deposit" means an instrument containing an
13542211 acknowledgment by a bank that a sum of money has been received by
13552212 the bank and a promise by the bank to repay the sum of money. A
13562213 certificate of deposit is a note of the bank.
1357-
13582214 SECTION 21. AMENDATORY 12A O.S. 2021, Section 3 -105, is
13592215 amended to read as follows:
1360-
13612216 Section 3-105.
1362-
13632217 ISSUE OF INSTRUMENT
1364-
13652218 (a) "Issue" means the:
1366-
13672219 (1) The first delivery of an instrument by the maker or drawer,
13682220 whether to a holder or nonholder, for the purpose of giving rights
13692221 on the instrument to any person ; or
1370-
13712222 (2) If agreed by the payee, the first transmission by the
13722223 drawer to the payee of an image of an item and information derived
13732224 from the item that enables the depository bank to collect the item
13742225 by transferring or presenting under federal law an electronic check .
2226+
2227+SENATE FLOOR VERSION - HB2776 SFLR Page 43
2228+(Bold face denotes Committee Amendments) 1
2229+2
2230+3
2231+4
2232+5
2233+6
2234+7
2235+8
2236+9
2237+10
2238+11
2239+12
2240+13
2241+14
2242+15
2243+16
2244+17
2245+18
2246+19
2247+20
2248+21
2249+22
2250+23
2251+24
13752252
13762253 (b) An unissued instrument, or an unissued incomplete
13772254 instrument that is completed, is binding on the maker or drawer, bu t
13782255 nonissuance is a defen se. An instrument that is conditionally
13792256 issued or is issued for a special purpose is binding on the maker or
13802257 drawer, but failure of the condition or special purpose to be
13812258 fulfilled is a defense.
1382-
13832259 (c) "Issuer" applies to issued and unissued instruments and
13842260 means a maker or drawer of an instrument.
1385-
13862261 SECTION 22. AMENDATORY 12A O.S. 2021, Section 3 -401, is
13872262 amended to read as follows:
1388-
13892263 Section 3-401.
1390- ENR. H. B. NO. 2776 Page 32
13912264 SIGNATURE NECESSARY FOR LIABILITY ON INSTRUMENT
1392-
13932265 (a) A person is not liable on an instrum ent unless (i) the
13942266 person signed the instrument, or (ii) the person is represented by
13952267 an agent or representative who signed the instrument and the
13962268 signature is binding on the represented person under Section 3 -402
13972269 of this title.
1398-
13992270 (b) A signature may be made (i) manually or by means of a
14002271 device or machine, and (ii) by the use of any name, including a
14012272 trade or assumed name, or by a word, mark, or symbol executed or
14022273 adopted by a person with present intention to authenticate a
14032274 writing.
1404-
14052275 SECTION 23. AMENDATORY 12A O.S. 2021, Section 3 -604, is
14062276 amended to read as follows:
14072277
2278+SENATE FLOOR VERSION - HB2776 SFLR Page 44
2279+(Bold face denotes Committee Amendments) 1
2280+2
2281+3
2282+4
2283+5
2284+6
2285+7
2286+8
2287+9
2288+10
2289+11
2290+12
2291+13
2292+14
2293+15
2294+16
2295+17
2296+18
2297+19
2298+20
2299+21
2300+22
2301+23
2302+24
2303+
14082304 Section 3-604.
1409-
14102305 DISCHARGE BY CANCELLATION OR RENUNCIATION
1411-
14122306 (a) A person entitled to enforce an instrument, with or without
14132307 consideration, may dischar ge the obligation of a party to pay the
14142308 instrument (i) by an intentional voluntary act, such as surrender of
14152309 the instrument to the party, destruction, mutilation, or
14162310 cancellation of the instrument, cancellation or striking out of the
14172311 party's signature, or the addition of words to the instrument
14182312 indicating discharge, or (ii) by agreeing not to sue or otherwise
14192313 renouncing rights against the party by a signed record. The
14202314 obligation of a party to pay a check is not discharged solely by
14212315 destruction of the check in connection with a process in which
14222316 information is extracted from the check and an image of the check is
14232317 made and, subsequently, the information and image are transmitted
14242318 for payment.
1425-
14262319 (b) Cancellation or striking out of an indorsement pursuant to
14272320 subsection (a) of this sectio n does not affect the status and rights
14282321 of a party derived from the indorsement.
1429-
14302322 (c) As used in this section, "signed", with respect to a record
14312323 that is not a writing, includes the attachment to or logical
14322324 association with the reco rd of an electronic symbol, sound, or
14332325 process with the present intent to adopt or accept the record.
1434- ENR. H. B. NO. 2776 Page 33
14352326 SECTION 24. AMENDATORY 12A O.S. 2021, Section 4A -103, is
14362327 amended to read as follows:
14372328
2329+SENATE FLOOR VERSION - HB2776 SFLR Page 45
2330+(Bold face denotes Committee Amendments) 1
2331+2
2332+3
2333+4
2334+5
2335+6
2336+7
2337+8
2338+9
2339+10
2340+11
2341+12
2342+13
2343+14
2344+15
2345+16
2346+17
2347+18
2348+19
2349+20
2350+21
2351+22
2352+23
2353+24
2354+
14382355 Section 4A-103.
1439-
14402356 PAYMENT ORDER - DEFINITIONS
1441-
14422357 (a) In this Article article:
1443-
14442358 (1) "Payment order" means an instruction of a sender to a
14452359 receiving bank, transmitted orally , electronically, or in writing or
14462360 in a record, to pay, or to cause another bank to pay, a fixed or
14472361 determinable amount of money to a beneficiary if:
1448-
14492362 (i) the instruction does not state a condition to payment
14502363 to the beneficiary other than time of payment,
1451-
14522364 (ii) the receiving bank is to be reimbursed by debiting an
14532365 account of, or otherwise receiving payment from, the
14542366 sender, and
1455-
14562367 (iii) the instruction is transmitte d by the sender directly
14572368 to the receiving bank or to an agent, funds -transfer
14582369 system, or communication system for transmittal to the
14592370 receiving bank.
1460-
14612371 (2) "Beneficiary" means the person to be paid by the
14622372 beneficiary's bank.
1463-
14642373 (3) "Beneficiary's bank" means the bank identified in a payment
14652374 order in which an account of the beneficiary is to be credited
14662375 pursuant to the order or which otherwise is to make payment to the
14672376 beneficiary if the order does not provide for payment to an account.
1468-
14692377 (4) "Receiving bank" mea ns the bank to which the sender's
14702378 instruction is addressed.
14712379
2380+SENATE FLOOR VERSION - HB2776 SFLR Page 46
2381+(Bold face denotes Committee Amendments) 1
2382+2
2383+3
2384+4
2385+5
2386+6
2387+7
2388+8
2389+9
2390+10
2391+11
2392+12
2393+13
2394+14
2395+15
2396+16
2397+17
2398+18
2399+19
2400+20
2401+21
2402+22
2403+23
2404+24
2405+
14722406 (5) "Sender" means the person giving the instruction to the
14732407 receiving bank.
1474-
14752408 (b) If an instruction complying with paragraph (1) of
14762409 subsection (a) is to make more than one payment to a beneficiary,
14772410 the instruction is a separate payment order with respect to each
14782411 payment.
1479- ENR. H. B. NO. 2776 Page 34
14802412 (c) A payment order is issued when it is sent to the receiving
14812413 bank.
1482-
14832414 SECTION 25. AMENDATORY 12A O.S. 2021, Section 4A -201, is
14842415 amended to read as follows:
1485-
14862416 Section 4A-201.
1487-
14882417 SECURITY PROCEDURE
1489-
14902418 "Security procedure" means a procedure established by agreement
14912419 of a customer and a receiving bank for the purpose of (i) verifying
14922420 that a payment order or communication amending or canceling a
14932421 payment order is that of the customer, or (ii) detecting error in
14942422 the transmission or the content of the payment order or
14952423 communication. A security procedure may impose an obligation on the
14962424 receiving bank or the customer and may require the use of algorithms
14972425 or other codes, identif ying words or, numbers, symbols, sounds,
14982426 biometrics, encryption, callback procedures, or similar security
14992427 devices. Comparisons of a signature on a payment order or
15002428 communication with an authorized specimen signature of the customer
15012429 or requiring a payment order to be sent from a known email address,
2430+
2431+SENATE FLOOR VERSION - HB2776 SFLR Page 47
2432+(Bold face denotes Committee Amendments) 1
2433+2
2434+3
2435+4
2436+5
2437+6
2438+7
2439+8
2440+9
2441+10
2442+11
2443+12
2444+13
2445+14
2446+15
2447+16
2448+17
2449+18
2450+19
2451+20
2452+21
2453+22
2454+23
2455+24
2456+
15022457 IP address, or telephone number is not by itself a security
15032458 procedure.
1504-
15052459 SECTION 26. AMENDATORY 12A O.S. 2021, Section 4A -202, is
15062460 amended to read as follows:
1507-
15082461 Section 4A-202.
1509-
15102462 AUTHORIZED AND VERIFIED PAYMENT ORDERS
1511-
15122463 (a) A payment order received by the receiving bank is the
15132464 authorized order of the person identified as sender if that person
15142465 authorized the order or is otherwise bound by it under the law of
15152466 agency.
1516-
15172467 (b) If a bank and its customer have agreed that the
15182468 authenticity of payment orders issued to the bank in the name of the
15192469 customer as sender will be verified pursuant to a security
15202470 procedure, a payment order received by the receiving bank is
15212471 effective as the orde r of the customer, wheth er or not authorized,
15222472 if (i) the security procedure is a commercially reasonable method of
15232473 providing security against unauthorized payment orders, and (ii) the
1524-bank proves that it accepted the payment order in good faith and in ENR. H. B. NO. 2776 Page 35
2474+bank proves that it accepted the payment order in good faith and in
15252475 compliance with the bank's obligations under the security procedure
15262476 and any written agreement or instruction of the customer , evidenced
15272477 by a record, restricting acceptance of payment orders issued in the
15282478 name of the customer. The bank is not required to follo w an
15292479 instruction that violates a written an agreement with the customer ,
15302480 evidenced by a record, or notice of which is not received at a time
2481+
2482+SENATE FLOOR VERSION - HB2776 SFLR Page 48
2483+(Bold face denotes Committee Amendments) 1
2484+2
2485+3
2486+4
2487+5
2488+6
2489+7
2490+8
2491+9
2492+10
2493+11
2494+12
2495+13
2496+14
2497+15
2498+16
2499+17
2500+18
2501+19
2502+20
2503+21
2504+22
2505+23
2506+24
2507+
15312508 and in a manner affording the bank a reasonable opportunity to act
15322509 on it before the payment order is accepted.
1533-
15342510 (c) Commercial reasonableness of a security procedure is a
15352511 question of law to be determined by considering the wishes of the
15362512 customer expressed to the bank, the circumstances of the customer
15372513 known to the bank, including the size, type, and frequency of
15382514 payment orders normally issued by the customer to the bank,
15392515 alternative security procedures offered to the customer, and
15402516 security procedures in general use by customers and receiving banks
15412517 similarly situated. A security procedure is deemed to be
15422518 commercially reasonable if (i) the security procedure was chosen by
15432519 the customer after the bank offered, and the customer refused, a
15442520 security procedure that was commercially reasonable for that
15452521 customer, and (ii) the customer expressly agreed in writing a record
15462522 to be bound by any payment order , whether or not authorized, issued
15472523 in its name and accepted by the bank in compliance with the bank's
15482524 obligations under the security procedure chosen by the customer.
1549-
15502525 (d) The term "sender" in this Article article includes the
15512526 customer in whose name a payment order is issued if the order is the
15522527 authorized order of the customer under subsection (a), or it is
15532528 effective as the order of the customer under subsection (b).
1554-
15552529 (e) This section applies to amendments and cancellations of
15562530 payment orders to the same ex tent it applies to payment orders.
2531+
2532+SENATE FLOOR VERSION - HB2776 SFLR Page 49
2533+(Bold face denotes Committee Amendments) 1
2534+2
2535+3
2536+4
2537+5
2538+6
2539+7
2540+8
2541+9
2542+10
2543+11
2544+12
2545+13
2546+14
2547+15
2548+16
2549+17
2550+18
2551+19
2552+20
2553+21
2554+22
2555+23
2556+24
15572557
15582558 (f) Except as provided in this section and in paragraph (1) of
15592559 subsection (a) of Section 11 of this act rights and obligations
15602560 arising under this section or Section 11 of this act may not be
15612561 varied by agreement.
1562-
15632562 SECTION 27. AMENDATORY 12A O.S. 2021, Section 4A -203, is
15642563 amended to read as follows:
1565-
15662564 Section 4A-203.
1567-
15682565 UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS
1569- ENR. H. B. NO. 2776 Page 36
15702566 (a) If an accepted payment order is not, under subsection (a)
15712567 of Section 10 of this a ct, an authorized order of a customer
15722568 identified as sender, but is effective as an order of the customer
15732569 pursuant to subsection (b) of Section 10 of this act, the following
15742570 rules apply:
1575-
15762571 (1) By express written agreement evidenced by a record, the
15772572 receiving bank may limit the extent to which it is entitled to
15782573 enforce or retain payment of the payment order.
1579-
15802574 (2) The receiving bank is not entitled to enforce or retain
15812575 payment of the payment order if the customer proves that the order
15822576 was not caused, directly o r indirectly, by a person (i) entrusted at
15832577 any time with duties to act for the customer with respect to payment
15842578 orders or the security procedure, or (ii) who obtained access to
15852579 transmitting facilities of the customer or who obtained , from a
15862580 source controlled by the customer and without authority of the
15872581 receiving bank, information facilitating breach of the security
2582+
2583+SENATE FLOOR VERSION - HB2776 SFLR Page 50
2584+(Bold face denotes Committee Amendments) 1
2585+2
2586+3
2587+4
2588+5
2589+6
2590+7
2591+8
2592+9
2593+10
2594+11
2595+12
2596+13
2597+14
2598+15
2599+16
2600+17
2601+18
2602+19
2603+20
2604+21
2605+22
2606+23
2607+24
2608+
15882609 procedure, regardless of how the information was obtained or whether
15892610 the customer was at fault. Information includes an y access device,
15902611 computer software, or the like.
1591-
15922612 (b) This section applies to amendments of payment orders to the
15932613 same extent it applies to payment orders.
1594-
15952614 SECTION 28. AMENDATORY 12A O.S. 2021, Section 4A -207, is
15962615 amended to read as follows:
1597-
15982616 Section 4A-207.
1599-
16002617 MISDESCRIPTION OF BENEFICIARY
1601-
16022618 (a) Subject to subsection (b) of this section, if, in a payment
16032619 order received by the beneficiary's bank, the name, bank account
16042620 number, or other identification of the beneficiary refers to a
16052621 nonexistent or unidentifiable p erson or account, no person has
16062622 rights as a beneficiary of the order and acceptance of the order
16072623 cannot occur.
1608-
16092624 (b) If a payment order received by the beneficiary's bank
16102625 identifies the beneficiary both by name and by an identifying or
16112626 bank account number and the name and number identify different
16122627 persons, the following rules apply:
1613- ENR. H. B. NO. 2776 Page 37
16142628 (1) Except as otherwise provided in subsection (c) of this
16152629 section, if the beneficiary's bank does not know that the name and
16162630 number refer to different p ersons, it may rely on t he number as the
16172631 proper identification of the beneficiary of the order. The
2632+
2633+SENATE FLOOR VERSION - HB2776 SFLR Page 51
2634+(Bold face denotes Committee Amendments) 1
2635+2
2636+3
2637+4
2638+5
2639+6
2640+7
2641+8
2642+9
2643+10
2644+11
2645+12
2646+13
2647+14
2648+15
2649+16
2650+17
2651+18
2652+19
2653+20
2654+21
2655+22
2656+23
2657+24
2658+
16182659 beneficiary's bank need not determine whether the name and number
16192660 refer to the same person.
1620-
16212661 (2) If the beneficiary's bank pays the person identified by
16222662 name or knows that the name and number identify different persons,
16232663 no person has rights as beneficiary except the person paid by the
16242664 beneficiary's bank if that person was entitled to receive payment
16252665 from the originator of the funds transfer. If no person ha s rights
16262666 as beneficiary, acceptance of the order cannot occur.
1627-
16282667 (c) If (i) a payment order described in subsection (b) of this
16292668 section is accepted, (ii) the originator's payment order described
16302669 the beneficiary inconsistently by name and number, and (iii) t he
16312670 beneficiary's bank pays the person identified by number as permitted
16322671 by paragraph (1) of subsection (b) of this section, the following
16332672 rules apply:
1634-
16352673 (1) If the originator is a bank, the originator is obliged to
16362674 pay its order.
1637-
16382675 (2) If the originator is n ot a bank and proves tha t the person
16392676 identified by number was not entitled to receive payment from the
16402677 originator, the originator is not obliged to pay its order unless
16412678 the originator's bank proves that the originator, before acceptance
16422679 of the originator's order, had notice that payment of a payment
16432680 order issued by the originator might be made by the beneficiary's
16442681 bank on the basis of an identifying or bank account number even if
16452682 it identifies a person different from the named beneficiary. Proof
2683+
2684+SENATE FLOOR VERSION - HB2776 SFLR Page 52
2685+(Bold face denotes Committee Amendments) 1
2686+2
2687+3
2688+4
2689+5
2690+6
2691+7
2692+8
2693+9
2694+10
2695+11
2696+12
2697+13
2698+14
2699+15
2700+16
2701+17
2702+18
2703+19
2704+20
2705+21
2706+22
2707+23
2708+24
2709+
16462710 of notice may be made by any admis sible evidence. The originator's
16472711 bank satisfies the burden of proof if it proves that the originator,
16482712 before the payment order was accepted, signed a writing record
16492713 stating the information to which the notice relates.
1650-
16512714 (d) In a case governed by paragraph (1) of subsection (b) of
16522715 this section, if the beneficiary's bank rightfully pays the person
16532716 identified by number and that person was not entitled to receive
16542717 payment from the originator, the amount paid may be recovered from
16552718 that person to the extent allowe d by the law governing mistake and
16562719 restitution as follows:
1657- ENR. H. B. NO. 2776 Page 38
16582720 (1) If the originator is obliged to pay its payment order as
16592721 stated in subsection (c) of this section, the originator has the
16602722 right to recover.
1661-
16622723 (2) If the originator is no t a bank and is not obliged to pay
16632724 its payment order, the originator's bank has the right to recover.
1664-
16652725 SECTION 29. AMENDATORY 12A O.S. 2021, Section 4A -208, is
16662726 amended to read as follows:
1667-
16682727 Section 4A-208.
1669-
16702728 MISDESCRIPTION OF INTERMEDIA RY BANK OR BENEFICIARY'S BANK
1671-
16722729 (a) This subsection applies to a payment order identifying an
16732730 intermediary bank or the beneficiary's bank only by an identifying
16742731 number.
16752732
2733+SENATE FLOOR VERSION - HB2776 SFLR Page 53
2734+(Bold face denotes Committee Amendments) 1
2735+2
2736+3
2737+4
2738+5
2739+6
2740+7
2741+8
2742+9
2743+10
2744+11
2745+12
2746+13
2747+14
2748+15
2749+16
2750+17
2751+18
2752+19
2753+20
2754+21
2755+22
2756+23
2757+24
2758+
16762759 (1) The receiving bank may rely on the number as the proper
16772760 identification of the inter mediary or beneficiary's bank and need
16782761 not determine whether the number identifies a bank.
1679-
16802762 (2) The sender is obliged to compensate the receiving bank for
16812763 any loss and expenses incurred by the receiving bank as a result of
16822764 its reliance on the number in exe cuting or attempting to execute the
16832765 order.
1684-
16852766 (b) This subsection applies to a payment order identifying an
16862767 intermediary bank or the beneficiary's bank both by name and an
16872768 identifying number if the name and number identify different
16882769 persons.
1689-
16902770 (1) If the sender is a bank, the receiving bank may rely on the
16912771 number as the proper identification of the intermediary or
16922772 beneficiary's bank if the receiving bank, when it executes the
16932773 sender's order, does not know that the name and number identify
16942774 different persons. T he receiving bank need n ot determine whether
16952775 the name and number refer to the same person or whether the number
16962776 refers to a bank. The sender is obliged to compensate the receiving
16972777 bank for any loss and expenses incurred by the receiving bank as a
16982778 result of its reliance on the number in executing or attempting to
16992779 execute the order.
1700-
17012780 (2) If the sender is not a bank and the receiving bank proves
1702-that the sender, before the payment order was accepted, had n otice ENR. H. B. NO. 2776 Page 39
2781+that the sender, before the payment order was accepted, had notice
17032782 that the receiving bank might rely on the number as the proper
2783+
2784+SENATE FLOOR VERSION - HB2776 SFLR Page 54
2785+(Bold face denotes Committee Amendments) 1
2786+2
2787+3
2788+4
2789+5
2790+6
2791+7
2792+8
2793+9
2794+10
2795+11
2796+12
2797+13
2798+14
2799+15
2800+16
2801+17
2802+18
2803+19
2804+20
2805+21
2806+22
2807+23
2808+24
2809+
17042810 identification of the intermediary or beneficiary's bank even if it
17052811 identifies a person different from the bank identified by name, the
17062812 rights and obligations of the sender and the receiving bank are
17072813 governed by paragraph (1) of subsection ( b) of this section, as
17082814 though the sender were a bank. Proof of notice may be made by any
17092815 admissible evidence. The receiving bank satisfies the burden of
17102816 proof if it proves that the sender, before the payment order was
17112817 accepted, signed a writing record stating the information to which
17122818 the notice relates.
1713-
17142819 (3) Regardless of whether the sender is a bank, the receiving
17152820 bank may rely on the name as the proper identification of the
17162821 intermediary or beneficiary's bank if the receiving bank, at the
17172822 time it executes the sender's order, does not know that the name and
17182823 number identify different persons. The receiving bank need not
17192824 determine whether the name and number refer to the same person.
1720-
17212825 (4) If the receiving bank knows that the name and number
17222826 identify different persons, reliance on either the name or the
17232827 number in executing the sender's payment order is a breach of the
17242828 obligation stated in paragraph (1) of subsection (a) of Section 22
17252829 of this act.
1726-
17272830 SECTION 30. AMENDATORY 12A O.S. 2021, Section 4A-210, is
17282831 amended to read as follows:
1729-
17302832 Section 4A-210.
1731-
17322833 REJECTION OF PAYMENT ORDER
2834+
2835+SENATE FLOOR VERSION - HB2776 SFLR Page 55
2836+(Bold face denotes Committee Amendments) 1
2837+2
2838+3
2839+4
2840+5
2841+6
2842+7
2843+8
2844+9
2845+10
2846+11
2847+12
2848+13
2849+14
2850+15
2851+16
2852+17
2853+18
2854+19
2855+20
2856+21
2857+22
2858+23
2859+24
17332860
17342861 (a) A payment order is rejected by the receiving bank by a
17352862 notice of rejection transmitted to the sender orally ,
17362863 electronically, or in writing a record. A notice of rejection need
17372864 not use any particular words and is sufficient if it indicates that
17382865 the receiving bank is rejecting the order or will not execute or pay
17392866 the order. Rejection is effective when the notice is given if
17402867 transmission is by a means that is reaso nable in the circumstances.
17412868 If notice of rejection is given by a means that is not reasonable,
17422869 rejection is effective when the notice is received. If an agreement
17432870 of the sender and receiving bank establishes the means to be used to
17442871 reject a payment order , (i) any means complyin g with the agreement
17452872 is reasonable and (ii) any means not complying is not reasonable
17462873 unless no significant delay in receipt of the notice resulted from
1747-the use of the noncomplyi ng means. ENR. H. B. NO. 2776 Page 40
1748-
2874+the use of the noncomplying means.
17492875 (b) This subsection applies if a receiving bank other than the
17502876 beneficiary's bank fails to execute a payment order despite the
17512877 existence on the execution date of a withdrawable credit balance in
17522878 an authorized account of the sender sufficient to cover the order.
17532879 If the sender does not receive notic e of rejection of the or der on
17542880 the execution date and the authorized account of the sender does not
17552881 bear interest, the bank is obliged to pay interest to the sender on
17562882 the amount of the order for the number of days elapsing after the
17572883 execution date to the earlier of the day the order is canceled
17582884 pursuant to subsection (d) of Section 19 of this act or the day the
2885+
2886+SENATE FLOOR VERSION - HB2776 SFLR Page 56
2887+(Bold face denotes Committee Amendments) 1
2888+2
2889+3
2890+4
2891+5
2892+6
2893+7
2894+8
2895+9
2896+10
2897+11
2898+12
2899+13
2900+14
2901+15
2902+16
2903+17
2904+18
2905+19
2906+20
2907+21
2908+22
2909+23
2910+24
2911+
17592912 sender receives notice or learns that the order was not executed,
17602913 counting the final day of the period as an elapsed day. If the
17612914 withdrawable credit balance during that p eriod falls below the
17622915 amount of the order, the amount of interest is reduced accordingly.
1763-
17642916 (c) If a receiving bank suspends payments, all unaccepted
17652917 payment orders issued to it are deemed rejected at the time the bank
17662918 suspends payments.
1767-
17682919 (d) Acceptance of a payment order precludes a later rejection
17692920 of the order. Rejection of a payment order precludes a later
17702921 acceptance of the order.
1771-
17722922 SECTION 31. AMENDATORY 12A O.S. 2021, Section 4A -211, is
17732923 amended to read as follows:
1774-
17752924 Section 4A-211.
1776-
17772925 CANCELLATION AND AMENDMENT OF PAYMENT ORDER
1778-
17792926 (a) A communication of the sender of a payment order canceling
17802927 or amending the order may be transmitted to the receiving bank
17812928 orally, electronically, or in writing a record. If a security
17822929 procedure is in effect between the sender and the receiving bank,
17832930 the communication is not effective to cancel or amend the order
17842931 unless the communication is verified pursuant to the security
17852932 procedure or the bank agrees to the cancellation or amendment .
1786-
17872933 (b) Subject to subsec tion (a) of this section, a communication
17882934 by the sender canceling or amending a payment order is effective to
17892935 cancel or amend the order if notice of the communication is received
2936+
2937+SENATE FLOOR VERSION - HB2776 SFLR Page 57
2938+(Bold face denotes Committee Amendments) 1
2939+2
2940+3
2941+4
2942+5
2943+6
2944+7
2945+8
2946+9
2947+10
2948+11
2949+12
2950+13
2951+14
2952+15
2953+16
2954+17
2955+18
2956+19
2957+20
2958+21
2959+22
2960+23
2961+24
2962+
17902963 at a time and in a manner affording the receiving ban k a reasonable
17912964 opportunity to act on the communication before the bank accepts the
1792-payment order. ENR. H. B. NO. 2776 Page 41
1793-
2965+payment order.
17942966 (c) After a payment order has been accepted, cancellation or
17952967 amendment of the order is not effective unless the receiving bank
17962968 agrees or a funds-transfer system rule allows cancella tion or
17972969 amendment without agreement of the bank.
1798-
17992970 (1) With respect to a payment order accepted by a receiving
18002971 bank other than the beneficiary's bank, cancellation or amendment is
18012972 not effective unless a conforming cancellation or ame ndment of the
18022973 payment order issued by the receiving bank is also made.
1803-
18042974 (2) With respect to a payment order accepted by the
18052975 beneficiary's bank, cancellation or amendment is not effective
18062976 unless the order was issued in execution of an unauthorized payment
18072977 order, or because of a mi stake by a sender in the funds transfer
18082978 which resulted in the issuance of a payment order (i) that is a
18092979 duplicate of a payment order previously issued by the sender, (ii)
18102980 that orders payment to a beneficiary not entitled to receive payment
18112981 from the originator, or (iii) that orders payment in an amount
18122982 greater than the amount the beneficiary was entitled to receive from
18132983 the originator. If the payment order is canceled or amended, the
18142984 beneficiary's bank is entitled to recover from the beneficiary any
18152985 amount paid to the beneficiary to the extent allowed by the law
18162986 governing mistake and restitution.
18172987
2988+SENATE FLOOR VERSION - HB2776 SFLR Page 58
2989+(Bold face denotes Committee Amendments) 1
2990+2
2991+3
2992+4
2993+5
2994+6
2995+7
2996+8
2997+9
2998+10
2999+11
3000+12
3001+13
3002+14
3003+15
3004+16
3005+17
3006+18
3007+19
3008+20
3009+21
3010+22
3011+23
3012+24
3013+
18183014 (d) An unaccepted payment order is canceled by operation of law
18193015 at the close of the fifth funds -transfer business day of the
18203016 receiving bank after the execution date or payment date of the
18213017 order.
1822-
18233018 (e) A canceled payment order cannot be accepted. If an
18243019 accepted payment order is canceled, the acceptance is nullified and
18253020 no person has any right or obligation based on the acceptance.
18263021 Amendment of a payment order is dee med to be cancellation of the
18273022 original order at the time of amendment and issue of a new payment
18283023 order in the amended form at the same time.
1829-
18303024 (f) Unless otherwise provided in an agreement of the parties or
18313025 in a funds-transfer system rule, if the receiving bank, after
18323026 accepting a payment order, agrees to cancellation or amendment of
18333027 the order by the sender or is bound by a funds -transfer system rule
18343028 allowing cancellation or amendment without the bank's agreement, the
18353029 sender, whether or not cancellation or am endment is effective, is
1836-liable to the bank for any loss and expenses, incl uding reasonable ENR. H. B. NO. 2776 Page 42
3030+liable to the bank for any loss and expenses, including reasonable
18373031 attorney's attorney fees, incurred by the bank as a result of the
18383032 cancellation or amendment or attempted cancellation or amendment.
1839-
18403033 (g) A payment order is not revoked by the death or legal
18413034 incapacity of the sender unless the receiving bank knows of the
18423035 death or of an adjudication of incapacity by a court of competent
18433036 jurisdiction and has reasonable opportunity to act before acceptance
18443037 of the order.
18453038
3039+SENATE FLOOR VERSION - HB2776 SFLR Page 59
3040+(Bold face denotes Committee Amendments) 1
3041+2
3042+3
3043+4
3044+5
3045+6
3046+7
3047+8
3048+9
3049+10
3050+11
3051+12
3052+13
3053+14
3054+15
3055+16
3056+17
3057+18
3058+19
3059+20
3060+21
3061+22
3062+23
3063+24
3064+
18463065 (h) A funds-transfer system rule is not effective to the extent
18473066 it conflicts with paragraph (2) of subsection (c) of this section.
1848-
18493067 SECTION 32. AMENDATORY 12A O.S. 2021, Section 4A -305, is
18503068 amended to read as follows:
1851-
18523069 Section 4A-305.
1853-
18543070 LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO
18553071 EXECUTE PAYMENT ORDER
1856-
18573072 (a) If a funds transfer is completed but execution of a payment
18583073 order by the receiving bank in breach of Section 22 of this act
18593074 results in delay in payment to the benefi ciary, the bank is oblig ed
18603075 to pay interest to either the originator or the beneficiary of the
18613076 funds transfer for the period of delay caused by the improper
18623077 execution. Except as provided in subsection (c) of this section,
18633078 additional damages are not recover able.
1864-
18653079 (b) If execution of a payment order by a receiving bank in
18663080 breach of Section 22 of this act results in (i) noncompletion of the
18673081 funds transfer, (ii) failure to use an intermediary bank designated
18683082 by the originator, or (iii) issuance of a payment ord er that does
18693083 not comply with the terms of the payment order of the originator,
18703084 the bank is liable to the originator for its expenses in the funds
18713085 transfer and for incidental expenses and interest losses, to the
18723086 extent not covered by subsection (a) of this section, resulting from
18733087 the improper execution. Except as provided in subsection (c) of
18743088 this section, additional damages are not recoverable.
18753089
3090+SENATE FLOOR VERSION - HB2776 SFLR Page 60
3091+(Bold face denotes Committee Amendments) 1
3092+2
3093+3
3094+4
3095+5
3096+6
3097+7
3098+8
3099+9
3100+10
3101+11
3102+12
3103+13
3104+14
3105+15
3106+16
3107+17
3108+18
3109+19
3110+20
3111+21
3112+22
3113+23
3114+24
3115+
18763116 (c) In addition to the amounts payable under subsections (a)
18773117 and (b) of this section, damages, including consequ ential damages,
18783118 are recoverable to the extent provided in an express written
18793119 agreement of the receiving bank , evidenced by a record .
1880- ENR. H. B. NO. 2776 Page 43
18813120 (d) If a receiving bank fails to execute a payment order it was
18823121 obliged by express agreement to execute, the receiving ban k is
18833122 liable to the sender for its expenses in the transaction and for
18843123 incidental expenses and interest losses resulting from the failure
18853124 to execute. Additional damages, including consequential damages,
18863125 are recoverable to the extent provided in an express written
18873126 agreement of the receiving bank, evidenced by a record, but are not
18883127 otherwise recoverable.
1889-
18903128 (e) Reasonable attorney's attorney fees are recoverable if
18913129 demand for compensation under subsection (a) or (b) of this section
18923130 is made and refused before an action is brought on the claim. If a
18933131 claim is made for breach of an agreement under subsection (d) of
18943132 this section and the agreement does not provide for damages,
18953133 reasonable attorney's attorney fees are recoverable if demand for
18963134 compensation under subsec tion (d) of this section is made and
18973135 refused before an action is brought on the claim.
1898-
18993136 (f) Except as stated in this section, the liability of a
19003137 receiving bank under subsections (a) and (b) of this section may not
19013138 be varied by agreement.
19023139
3140+SENATE FLOOR VERSION - HB2776 SFLR Page 61
3141+(Bold face denotes Committee Amendments) 1
3142+2
3143+3
3144+4
3145+5
3146+6
3147+7
3148+8
3149+9
3150+10
3151+11
3152+12
3153+13
3154+14
3155+15
3156+16
3157+17
3158+18
3159+19
3160+20
3161+21
3162+22
3163+23
3164+24
3165+
19033166 SECTION 33. AMENDATORY 12A O.S. 2021, Section 5 -104, is
19043167 amended to read as follows:
1905-
19063168 Section 5-104.
1907-
19083169 Formal Requirements.
1909-
19103170 A letter of credit, confirmation, advice, transfer, amendment,
19113171 or cancellation may be issued in any form that is a signed record
19123172 and is authenticated:
1913-
19143173 (1) By a signature; or
1915-
19163174 (2) In accordance with the agreement of the parties or the
19173175 standard practice referred to in subsection (e) of
19183176 Section 5-108 of this title.
1919-
19203177 SECTION 34. AMENDATORY 12A O.S. 2021, Section 5 -116, is
19213178 amended to read as follows:
1922-
19233179 Section 5-116.
1924-
1925-Choice of Law and Forum. ENR. H. B. NO. 2776 Page 44
1926-
1927-(a) The liability of an issuer, nominated person, or adviser
1928-for action or omission is governed by t he law of the jurisdi ction
1929-chosen by an agreement in the form of a reco rd signed or otherwise
3180+Choice of Law and Forum.
3181+(a) The liability of an issuer, nominated person, or adviser for
3182+action or omission is governed by the law of the jurisdiction chosen
3183+by an agreement in the form of a record signe d or otherwise
19303184 authenticated by the affected parties in the manner provided in
19313185 Section 5-104 of this title or by a provision in the person's letter
19323186 of credit, confirmation, or other undertaking. The jurisdiction
19333187 whose law is chosen need not bear any relat ion to the transaction.
1934-
19353188 (b) Unless subsection (a) of this section applies, the
19363189 liability of an issuer, nominated person, or adviser for action or
3190+
3191+SENATE FLOOR VERSION - HB2776 SFLR Page 62
3192+(Bold face denotes Committee Amendments) 1
3193+2
3194+3
3195+4
3196+5
3197+6
3198+7
3199+8
3200+9
3201+10
3202+11
3203+12
3204+13
3205+14
3206+15
3207+16
3208+17
3209+18
3210+19
3211+20
3212+21
3213+22
3214+23
3215+24
3216+
19373217 omission is governed by the law of the jurisdiction in which the
19383218 person is located. The person is considered to be located at the
19393219 address indicated in the person's undertaking. If more than one
19403220 address is indicated, the person is considered to be located at the
19413221 address from which the person's undertaking was issued.
1942-
19433222 (c) For the purpose of jurisdiction, choice of law, and
19443223 recognition of interbranch letters of credit, but not enforcement of
19453224 a judgment, all branches of a bank are considered separate juridical
19463225 entities and a bank is considered to be located at the place where
19473226 its relevant branch is considered to be located under this
19483227 subsection (d) of this section.
1949-
19503228 (d) A branch of a bank is considered to be located at the
19513229 address indicated in the branch's undertaking. If more than one
19523230 address is indicated, the branch is considered to be located at the
19533231 address from which the undertaking was issued.
1954-
19553232 (c) (e) Except as otherwise provided in this subsection, the
19563233 liability of an issuer, nominated person, or adviser is governed by
19573234 any rules of custom or practice, such as the Uniform Customs and
19583235 Practice for Documentary C redits, to which the let ter of credit,
19593236 confirmation, or other undertaking is expressly made subject. If:
1960-
19613237 (1) This article would govern the liability of an issuer,
19623238 nominated person, or adviser under subsection (a) or
19633239 (b) of this section;
19643240
3241+SENATE FLOOR VERSION - HB2776 SFLR Page 63
3242+(Bold face denotes Committee Amendments) 1
3243+2
3244+3
3245+4
3246+5
3247+6
3248+7
3249+8
3250+9
3251+10
3252+11
3253+12
3254+13
3255+14
3256+15
3257+16
3258+17
3259+18
3260+19
3261+20
3262+21
3263+22
3264+23
3265+24
3266+
19653267 (2) The relevant undertaking incorporates rules of custom
19663268 or practice; and
1967-
19683269 (3) There is conflict between this article and those rules
19693270 as applied to that undertaking,
1970- ENR. H. B. NO. 2776 Page 45
19713271 those rules govern except to the extent of any conflict with the
19723272 nonvariable provisions specified in subsect ion (c) of Section 5 -103
19733273 of this title.
1974-
19753274 (d) (f) If there is conflict between this article and Article
19763275 3, 4, 4A, or 9 of this title, this article governs.
1977-
19783276 (e) (g) The forum for settling disputes arising out of an
19793277 undertaking within this article may be cho sen in the manner and with
19803278 the binding effect that governing law may be chosen in accordance
19813279 with subsection (a) of this section.
1982-
19833280 SECTION 35. AMENDATORY 12A O.S. 2021, Section 7 -102, is
19843281 amended to read as follows:
1985-
19863282 Section 7-102.
1987-
19883283 Definitions and Index of D efinitions.
1989-
19903284 (a) In this article, unless the context otherwise requires :
1991-
19923285 (1) "Bailee" means a person that by a warehouse receipt, bill
19933286 of lading or other document of title acknowledges possession of
19943287 goods and contracts to deliver t hem.
1995-
19963288 (2) "Carrier" means a person that issues a bill of lading.
1997-
19983289 (3) "Consignee" means a person named in a bill of lading to
19993290 which or to whose order the bill promises delivery.
20003291
3292+SENATE FLOOR VERSION - HB2776 SFLR Page 64
3293+(Bold face denotes Committee Amendments) 1
3294+2
3295+3
3296+4
3297+5
3298+6
3299+7
3300+8
3301+9
3302+10
3303+11
3304+12
3305+13
3306+14
3307+15
3308+16
3309+17
3310+18
3311+19
3312+20
3313+21
3314+22
3315+23
3316+24
3317+
20013318 (4) "Consignor" means the person named in a bill of lading as
20023319 the person from whom the goods have bee n received for shipment.
2003-
20043320 (5) "Delivery order" means a record that contains an order to
20053321 deliver goods directed to a warehouse, carrier, or other person that
20063322 in the ordinary course of business issues warehouse receipts or
20073323 bills of lading.
2008-
20093324 (6) "Good faith" means honesty in fact and the observance of
20103325 reasonable commercial standards of fair dealing.
2011-
20123326 (7) "Goods" means all things that are treated as movable for
20133327 the purposes of a contract of storage or transportation.
2014- ENR. H. B. NO. 2776 Page 46
20153328 (8) "Issuer" means a bailee that issues a d ocument of title or,
20163329 in the case of an unaccepted delivery order, the person that orders
20173330 the possessor of goods to deliver. The term includes a person for
20183331 which an agent or employee purports to act in issuing a document if
20193332 the agent or employee has real or apparent authority to issue
20203333 documents, even if the issuer did not receive any goods, the goods
20213334 were misdescribed, or in any other respect the agent or employee
20223335 violated the issuer's instructions.
2023-
20243336 (9) "Person entitled under the do cument" means the holder , in
20253337 the case of a negotiable document of title, or the person to which
20263338 delivery of the goods is to be made by the terms of, or pursuant to
20273339 instructions in a record under, a nonnegotiable document of title.
20283340
3341+SENATE FLOOR VERSION - HB2776 SFLR Page 65
3342+(Bold face denotes Committee Amendments) 1
3343+2
3344+3
3345+4
3346+5
3347+6
3348+7
3349+8
3350+9
3351+10
3352+11
3353+12
3354+13
3355+14
3356+15
3357+16
3358+17
3359+18
3360+19
3361+20
3362+21
3363+22
3364+23
3365+24
3366+
20293367 (10) "Record" means information that is inscribed on a tangible
20303368 medium or that is stored in an electronic or other medium and is
20313369 retrievable in perceivable form.
2032-
20333370 (11) "Sign" means, with present intent to authenticate or adopt
20343371 a record:
2035-
20363372 (A) to execute or adopt a tangible symbol; or
2037-
20383373 (B) to attach to or logically associate with the record an
20393374 electronic sound, symbol, or process.
2040-
20413375 (12) "Shipper" means a person that enters into a contract of
20423376 transportation with a carrier.
2043-
20443377 (13) (11) "Warehouse" means a person engaged in the business o f
20453378 storing goods for hire.
2046-
20473379 (b) Definitions in other articles applying to this article and
20483380 the sections in which they appear are:
2049-
20503381 (1) "Contract for sale", Section 2 -106.
2051-
20523382 (2) "Lessee in the ordinary course of business", Section 2A -
20533383 103.
2054-
20553384 (3) "Receipt" of go ods, Section 2-103.
2056-
20573385 (c) In addition Article 1 contains general definitions and
20583386 principles of construction and interpretation applicable throughout
2059-this article. ENR. H. B. NO. 2776 Page 47
2060-
3387+this article.
20613388 SECTION 36. AMENDATORY 12A O.S. 2021, Section 7 -106, is
20623389 amended to read as follows:
2063-
20643390 Section 7-106.
20653391
3392+SENATE FLOOR VERSION - HB2776 SFLR Page 66
3393+(Bold face denotes Committee Amendments) 1
3394+2
3395+3
3396+4
3397+5
3398+6
3399+7
3400+8
3401+9
3402+10
3403+11
3404+12
3405+13
3406+14
3407+15
3408+16
3409+17
3410+18
3411+19
3412+20
3413+21
3414+22
3415+23
3416+24
3417+
20663418 Control of Electronic Document of Title.
2067-
20683419 (a) A person has control of an electronic document of title if
20693420 a system employed for evidencing the transfer of interests in the
20703421 electronic document reliably establishes that person as the person
20713422 to which the electronic document was issued or transferred.
2072-
20733423 (b) A system satisfies subsection (a) of this section, and a
20743424 person is deemed to have has control of an electronic document of
20753425 title, if the document is created, stored, and assigned transferred
20763426 in such a manner that:
2077-
20783427 (1) a single authoritative copy of the document exists which
20793428 is unique, identifiable, and, except as otherwise provided in
20803429 paragraphs (4), (5), and (6) of this subsection, unalterable;
2081-
20823430 (2) the authoritative copy identifie s the person asserting
20833431 control as:
2084-
20853432 (A) the person to which the document was issued; or
2086-
20873433 (B) if the authoritative copy indicates that the document
20883434 has been transferred, the person to which the document
20893435 was most recently transferred;
2090-
20913436 (3) the authoritative co py is communicated to and maintained by
20923437 the person asserting control or its designated custodian;
2093-
20943438 (4) copies or amendments that add or change an identified
20953439 assignee transferee of the authoritative copy can be made only with
20963440 the consent of the person asser ting control;
20973441
3442+SENATE FLOOR VERSION - HB2776 SFLR Page 67
3443+(Bold face denotes Committee Amendments) 1
3444+2
3445+3
3446+4
3447+5
3448+6
3449+7
3450+8
3451+9
3452+10
3453+11
3454+12
3455+13
3456+14
3457+15
3458+16
3459+17
3460+18
3461+19
3462+20
3463+21
3464+22
3465+23
3466+24
3467+
20983468 (5) each copy of the authoritative copy and any copy of a copy
20993469 is readily identifiable as a copy that is not the authoritative
21003470 copy; and
2101-
21023471 (6) any amendment of the authoritative copy is readily
21033472 identifiable as authorized or unauthorized.
2104- ENR. H. B. NO. 2776 Page 48
21053473 (c) A system satisfies subsection (a) of this section, and a
21063474 person has control of an electronic document of title, if an
21073475 authoritative electronic copy of the document, a record attached to
21083476 or logically associated with the electronic copy, or a system in
21093477 which the electronic copy is recorded:
2110-
21113478 (1) enables the person readily to identify each electronic copy
21123479 as either an authoritative copy or a nonauthoritative copy;
2113-
21143480 (2) enables the person readily to identify itself in any way,
21153481 including by name, identifying nu mber, cryptographic key, office, or
21163482 account number, as the person to which each authoritative electronic
21173483 copy was issued or transferred; and
2118-
21193484 (3) gives the person exclusive power, subject to subsection (d)
21203485 of this section, to:
2121-
21223486 (A) prevent others from addin g or changing the person to
21233487 which each authoritative electronic copy has been
21243488 issued or transferred; and
2125-
21263489 (B) transfer control of each authoritative electronic
21273490 copy.
3491+
3492+SENATE FLOOR VERSION - HB2776 SFLR Page 68
3493+(Bold face denotes Committee Amendments) 1
3494+2
3495+3
3496+4
3497+5
3498+6
3499+7
3500+8
3501+9
3502+10
3503+11
3504+12
3505+13
3506+14
3507+15
3508+16
3509+17
3510+18
3511+19
3512+20
3513+21
3514+22
3515+23
3516+24
21283517
21293518 (d) Subject to subsection (e) of this section, a power is
21303519 exclusive under subparagraphs (A ) and (B) of paragraph (3) of
21313520 subsection (c) of this section even if:
2132-
21333521 (1) the authoritative electronic copy, a record attached to or
21343522 logically associated with the authoritative electronic copy, or a
21353523 system in which the authoritative electronic copy is rec orded limits
21363524 the use of the document of title or has a protocol that is
21373525 programmed to cause a change, including a transfer or loss of
21383526 control; or
2139-
21403527 (2) the power is shared with another person.
2141-
21423528 (e) A power of a person is not shared with another person under
21433529 paragraph (2) of subsection (d) of this section and the person's
21443530 power is not exclusive if:
2145-
21463531 (1) the person can exercise the power only if the power also is
21473532 exercised by the other person; and
2148-
2149-(2) the other person: ENR. H. B. NO. 2776 Page 49
2150-
3533+(2) the other person:
21513534 (A) can exercise the power without exerc ise of the power
21523535 by the person; or
2153-
21543536 (B) is the transferor to the person of an interest in the
21553537 document of title.
2156-
21573538 (f) If a person has the powers specified in subparagraphs (A)
21583539 and (B) of paragraph (3) of subsection (c) of this section, the
21593540 powers are presumed to be exclusive.
21603541
3542+SENATE FLOOR VERSION - HB2776 SFLR Page 69
3543+(Bold face denotes Committee Amendments) 1
3544+2
3545+3
3546+4
3547+5
3548+6
3549+7
3550+8
3551+9
3552+10
3553+11
3554+12
3555+13
3556+14
3557+15
3558+16
3559+17
3560+18
3561+19
3562+20
3563+21
3564+22
3565+23
3566+24
3567+
21613568 (g) A person has control of an electronic document of title if
21623569 another person, other than the transferor to the person of an
21633570 interest in the document:
2164-
21653571 (1) has control of the document and acknowledges that it has
21663572 control on behalf of t he person; or
2167-
21683573 (2) obtains control of the document after having acknowledged
21693574 that it will obtain control of the document on behalf of the person.
2170-
21713575 (h) A person that has control under this section is not
21723576 required to acknowledge that it has control on behalf of another
21733577 person.
2174-
21753578 (i) If a person acknowledges that it has or will obtain control
21763579 on behalf of another person, unless the person otherwise agrees or
21773580 law other than this article or Article 9 of this title otherwise
21783581 provides, the person does not owe any d uty to the other person and
21793582 is not required to confirm the acknowledgment to any other person.
2180-
21813583 SECTION 37. AMENDATORY 12A O.S. 2021, Section 8 -102, is
21823584 amended to read as follows:
2183-
21843585 Section 8-102.
2185-
21863586 Definitions.
2187-
21883587 (a) In this article:
2189-
21903588 (1) "Adverse claim" means a claim that a claimant has a
21913589 property interest in a financial asset and that it is
21923590 a violation of the rights of the claimant for another
3591+
3592+SENATE FLOOR VERSION - HB2776 SFLR Page 70
3593+(Bold face denotes Committee Amendments) 1
3594+2
3595+3
3596+4
3597+5
3598+6
3599+7
3600+8
3601+9
3602+10
3603+11
3604+12
3605+13
3606+14
3607+15
3608+16
3609+17
3610+18
3611+19
3612+20
3613+21
3614+22
3615+23
3616+24
3617+
21933618 person to hold, transfer or deal with the financial
2194-asset; ENR. H. B. NO. 2776 Page 50
2195-
3619+asset;
21963620 (2) "Bearer form", as applied to a certificated security,
21973621 means a form in which the security is payable to the
21983622 bearer of the security certificate according to its
21993623 term but not by reason of an indorsement;
2200-
22013624 (3) "Broker" means a person defined as a broker or dealer
22023625 under the federal securities laws, but without
22033626 excluding a bank acting in that capacity;
2204-
22053627 (4) "Certificated security" means a security that is
22063628 represented by a certificate;
2207-
22083629 (5) "Clearing corporation" means:
2209-
22103630 (i) a person that is registered as a "clearing
22113631 agency" under the federal secur ities laws;
2212-
22133632 (ii) a federal reserve bank; or
2214-
22153633 (iii) any other person that provides clearance or
22163634 settlement services with respect to financial
22173635 assets that would require it to register as a
22183636 clearing agency under the federal securities laws
22193637 but for an exclusion or exemption from the
22203638 registration requirement, if its activities as a
22213639 clearing corporation, including promulgation of
22223640 rules, are subject to regulation by a federal or
22233641 state governmental authority;
22243642
3643+SENATE FLOOR VERSION - HB2776 SFLR Page 71
3644+(Bold face denotes Committee Amendments) 1
3645+2
3646+3
3647+4
3648+5
3649+6
3650+7
3651+8
3652+9
3653+10
3654+11
3655+12
3656+13
3657+14
3658+15
3659+16
3660+17
3661+18
3662+19
3663+20
3664+21
3665+22
3666+23
3667+24
3668+
22253669 (6) "Communicate" means to:
2226-
22273670 (i) send a signed writing record; or
2228-
22293671 (ii) transmit information by any mechanism agreed upon
22303672 by the persons transmitting and receiving the
22313673 information;
2232-
22333674 (7) "Entitlement holder" means a person identified in the
22343675 records of a securities intermediary as the person
22353676 having a security entitle ment against the securities
22363677 intermediary. If a person acquires a security
22373678 entitlement by virtue of paragraph (2) or (3) of
22383679 subsection (b) of Section 8 -501 of this title, that
2239-person is the entitlement holder; ENR. H. B. NO. 2776 Page 51
2240-
3680+person is the entitlement holder;
22413681 (8) "Entitlement order" means a notification c ommunicated
22423682 to a securities intermediary directing transfer or
22433683 redemption of a financial asset to which the
22443684 entitlement holder has a security entitlement;
2245-
22463685 (9) "Financial asset", except as otherwise provided in
22473686 Section 8-103 of this title, means:
2248-
22493687 (i) a security;
2250-
22513688 (ii) an obligation of a person or a share,
22523689 participation or other interest in a person or in
22533690 property or an enterprise of a person, which is,
22543691 or is of a type, dealt in or traded on financial
22553692 markets, or which is recognized in any area in
3693+
3694+SENATE FLOOR VERSION - HB2776 SFLR Page 72
3695+(Bold face denotes Committee Amendments) 1
3696+2
3697+3
3698+4
3699+5
3700+6
3701+7
3702+8
3703+9
3704+10
3705+11
3706+12
3707+13
3708+14
3709+15
3710+16
3711+17
3712+18
3713+19
3714+20
3715+21
3716+22
3717+23
3718+24
3719+
22563720 which it is issued or dealt in as a medium for
22573721 investment; or
2258-
22593722 (iii) any property that is held by a securities
22603723 intermediary for another person in a securities
22613724 account if the securities intermediary has
22623725 expressly agreed with the other person that the
22633726 property is to be treated as a financial asset
22643727 under this article.
2265-
22663728 As context requires, the term means either the
22673729 interest itself or the means by which a person's claim
22683730 to it is evidenced, including a certificated or
22693731 uncertificated security, a security certificate, or a
22703732 security entitlement;
2271-
22723733 (10) "Good faith", for purposes of the obligation of good
22733734 faith in the performance or enforcement of contracts
22743735 or duties within this article, means honesty in fact
22753736 and the observance of reasonable commercial standards
22763737 of fair dealing;
2277-
22783738 (11) "Indorsement" means a signature that alone or
22793739 accompanied by other words is made on a security
22803740 certificate in registered form or on a separate
22813741 document for the purpose of assigning, transferring or
22823742 redeeming the security or granting a power to assign,
22833743 transfer, or redeem it;
2284- ENR. H. B. NO. 2776 Page 52
3744+
3745+SENATE FLOOR VERSION - HB2776 SFLR Page 73
3746+(Bold face denotes Committee Amendments) 1
3747+2
3748+3
3749+4
3750+5
3751+6
3752+7
3753+8
3754+9
3755+10
3756+11
3757+12
3758+13
3759+14
3760+15
3761+16
3762+17
3763+18
3764+19
3765+20
3766+21
3767+22
3768+23
3769+24
3770+
22853771 (12) "Instruction" means a notification communicated to the
22863772 issuer of an uncertificated security which directs
22873773 that the transfer of the security be registered or
22883774 that the security be redeemed;
2289-
22903775 (13) "Registered form", as applied to a c ertificate
22913776 security, means a form in which:
2292-
22933777 (i) the security certificate specifies a person
22943778 entitled to the security; and
2295-
22963779 (ii) a transfer of the security may be registered upon
22973780 books maintained for that purpose by or on behalf
22983781 of the issuer, or the securit y certificate so
22993782 states;
2300-
23013783 (14) "Securities intermediary" means:
2302-
23033784 (i) a clearing corporation; or
2304-
23053785 (ii) a person, including a bank or broker, that in the
23063786 ordinary course of its business maintains
23073787 securities accounts for others and is acting in
23083788 that capacity;
2309-
23103789 (15) "Security", except as otherwise provided in Section 8 -
23113790 103 of this title, means an obligation of an issuer or
23123791 a share, participation, or other interest in an issuer
23133792 or in property or an enterprise of an issuer:
2314-
23153793 (i) which is represented by a security cert ificate in
23163794 bearer or registered form, or the transfer of
3795+
3796+SENATE FLOOR VERSION - HB2776 SFLR Page 74
3797+(Bold face denotes Committee Amendments) 1
3798+2
3799+3
3800+4
3801+5
3802+6
3803+7
3804+8
3805+9
3806+10
3807+11
3808+12
3809+13
3810+14
3811+15
3812+16
3813+17
3814+18
3815+19
3816+20
3817+21
3818+22
3819+23
3820+24
3821+
23173822 which may be registered upon books maintained for
23183823 that purpose by or on behalf of the issuer;
2319-
23203824 (ii) which is one of a class or series or by its terms
23213825 is divisible into a class or series of shares,
23223826 participations, interests, or obligations; and
2323-
23243827 (iii) which:
2325-
23263828 (A) is, or is of a type, dealt in or traded on
23273829 securities exchanges or securities markets;
23283830 or
2329- ENR. H. B. NO. 2776 Page 53
23303831 (B) is a medium for investment and by its terms
23313832 expressly provides that it is a security
23323833 governed by this article;
2333-
23343834 (16) "Security certificate" means a certificate
23353835 representing a security;
2336-
23373836 (17) "Security entitlement" means the rights and property
23383837 interest of an entitlement holder with respect to a
23393838 financial asset specified in Part 5 of this article;
23403839 and
2341-
23423840 (18) "Uncertificated security" means a security that is not
23433841 represented by a certificate.
2344-
23453842 (b) Other The following definitions applying to in this article
23463843 and the sections in which they appear are other articles apply to
23473844 this article:
2348-
23493845 "Appropriate person". Sect ion 8-107.
23503846
3847+SENATE FLOOR VERSION - HB2776 SFLR Page 75
3848+(Bold face denotes Committee Amendments) 1
3849+2
3850+3
3851+4
3852+5
3853+6
3854+7
3855+8
3856+9
3857+10
3858+11
3859+12
3860+13
3861+14
3862+15
3863+16
3864+17
3865+18
3866+19
3867+20
3868+21
3869+22
3870+23
3871+24
3872+
23513873 "Control". Section 8-106.
2352-
23533874 "Controllable account". Section 1 -9-102.
2354-
23553875 "Controllable electronic record". Section 12 -102.
2356-
23573876 "Controllable payment intangible". Section 1 -9-102.
2358-
23593877 "Delivery". Section 8 -301.
2360-
23613878 "Investment company security". Section 8 -103.
2362-
23633879 "Issuer". Section 8 -201.
2364-
23653880 "Overissue". Section 8 -210.
2366-
23673881 "Protected purchaser". Section 8 -303.
2368-
23693882 "Securities account". Section 8 -501.
2370-
23713883 (c) In addition, Article 1 contains general definitions and
23723884 principles of construction and interpretation applicable thr oughout
23733885 this article.
2374- ENR. H. B. NO. 2776 Page 54
23753886 (d) The characterization of a person, business, or transaction
23763887 for purposes of this article does not determine the characterization
23773888 of the person, business, or transaction for purposes of any other
23783889 law, regulation, or rule.
2379-
23803890 SECTION 38. AMENDATORY 12A O.S. 2021, Section 8 -103, is
23813891 amended to read as follows:
2382-
23833892 Section 8-103. Rules for Determining Whether Certain
23843893 Obligations and Interests Are Securities or Financial Assets.
2385-
23863894 (a) A share or similar equity interest issued by a corporation,
23873895 business trust, joint stock company, or similar entity is a
23883896 security.
3897+
3898+SENATE FLOOR VERSION - HB2776 SFLR Page 76
3899+(Bold face denotes Committee Amendments) 1
3900+2
3901+3
3902+4
3903+5
3904+6
3905+7
3906+8
3907+9
3908+10
3909+11
3910+12
3911+13
3912+14
3913+15
3914+16
3915+17
3916+18
3917+19
3918+20
3919+21
3920+22
3921+23
3922+24
23893923
23903924 (b) An "investment company security" is a security.
23913925 "Investment company security" means a share or similar equity
23923926 interest issued by an entity that is register ed as an investment
23933927 company under the federal investment company laws, an interest in a
23943928 unit investment trust that is so registered, or a face -amount
23953929 certificate issued by a face -amount certificate company that is so
23963930 registered. Investment company securit y does not include an
23973931 insurance policy or endowment policy or annuity contract issued by
23983932 an insurance company.
2399-
24003933 (c) An interest in a partnership or limited liability company
24013934 is not a security unless it is dealt in or traded on securities
24023935 exchanges or in securities markets, its terms expressly provide that
24033936 it is a security governed by this article, or it is an investment
24043937 company security. However, an interest in a partnership or limited
24053938 liability company is a financial asset if it is held in a securities
24063939 account.
2407-
24083940 (d) A writing that is a security certificate is governed by
24093941 this article and not by Article 3 of this code, even though it also
24103942 meets the requirements of that article. However, a negotiable
24113943 instrument governed by Article 3 of this code is a financ ial asset
24123944 if it is held in a securities account.
2413-
24143945 (e) An option or similar obligation issued by a clearing
24153946 corporation to its participants is not a security, but is a
24163947 financial asset.
2417- ENR. H. B. NO. 2776 Page 55
3948+
3949+SENATE FLOOR VERSION - HB2776 SFLR Page 77
3950+(Bold face denotes Committee Amendments) 1
3951+2
3952+3
3953+4
3954+5
3955+6
3956+7
3957+8
3958+9
3959+10
3960+11
3961+12
3962+13
3963+14
3964+15
3965+16
3966+17
3967+18
3968+19
3969+20
3970+21
3971+22
3972+23
3973+24
3974+
24183975 (f) A commodity contract, as defined in paragraph (15) of
24193976 subsection (a) of Section 1-9-102 of this title, is not a security
24203977 or a financial asset.
2421-
24223978 (g) A document of title is not a financial asset unless
24233979 subparagraph (iii) of paragraph (9) of subsection (a) of Section 8 -
24243980 102 of this title applies.
2425-
24263981 (h) A controllable account, controllable electronic record, or
24273982 controllable payment intangible is not a financial asset unless
24283983 subparagraph (iii) of paragraph 9 of subsection (a) of Section 8 -102
24293984 of this title applies.
2430-
24313985 SECTION 39. AMENDATORY 12A O.S. 2021, Se ction 8-106, is
24323986 amended to read as follows:
2433-
24343987 Section 8-106.
2435-
24363988 Control.
2437-
24383989 (a) A purchaser has "control" of a certificated security in
24393990 bearer form if the certificated security is delivered to the
24403991 purchaser.
2441-
24423992 (b) A purchaser has "control" of a certificated securi ty in
24433993 registered form if the certificated security is delivered to the
24443994 purchaser, and:
2445-
24463995 (1) the certificate is indorsed to the purchaser or in
24473996 blank by an effective endorsement; or
3997+
3998+SENATE FLOOR VERSION - HB2776 SFLR Page 78
3999+(Bold face denotes Committee Amendments) 1
4000+2
4001+3
4002+4
4003+5
4004+6
4005+7
4006+8
4007+9
4008+10
4009+11
4010+12
4011+13
4012+14
4013+15
4014+16
4015+17
4016+18
4017+19
4018+20
4019+21
4020+22
4021+23
4022+24
24484023
24494024 (2) the certificate is registered in the name of the
24504025 purchaser, upon origina l issue or registration of
24514026 transfer by the issuer.
2452-
24534027 (c) A purchaser has "control" of an uncertificated security if:
2454-
24554028 (1) the uncertificated security is delivered to the
24564029 purchaser; or
2457-
24584030 (2) the issuer has agreed that it will comply with
24594031 instructions originated by the purchaser without
24604032 further consent by the registered owner.
2461-
2462-(d) A purchaser has "control" of a security entitlement if: ENR. H. B. NO. 2776 Page 56
2463-
4033+(d) A purchaser has "control" of a security entitlement if:
24644034 (1) the purchaser becomes the entitlement holder;
2465-
24664035 (2) the securities intermediary has agreed that it will
24674036 comply with entitlemen t orders originated by t he
24684037 purchaser without further consent by the entitlement
24694038 holder; or
2470-
24714039 (3) another person has control of the, other than the
24724040 transferor to the purchaser of an interest in the
24734041 security entitlement on behalf of the purchaser or,
24744042 having previously acquired control of the security
24754043 entitlement, acknowledges that it has control :
2476-
24774044 (A) has control of the security entitlement and
24784045 acknowledges that it has control on behalf of the
24794046 purchaser; or
4047+
4048+SENATE FLOOR VERSION - HB2776 SFLR Page 79
4049+(Bold face denotes Committee Amendments) 1
4050+2
4051+3
4052+4
4053+5
4054+6
4055+7
4056+8
4057+9
4058+10
4059+11
4060+12
4061+13
4062+14
4063+15
4064+16
4065+17
4066+18
4067+19
4068+20
4069+21
4070+22
4071+23
4072+24
24804073
24814074 (B) obtains control of the security entitlement after
24824075 having acknowledged that it will obtain control
24834076 of the security entitlement on behalf of the
24844077 purchaser.
2485-
24864078 (e) If an interest in a security entitlement is granted by the
24874079 entitlement holder to the entitlement holder's own securities
24884080 intermediary, the securitie s intermediary has control.
2489-
24904081 (f) A purchaser who has satisfied the requirements of
24914082 subsection (c) or (d) of this section has control even if the
24924083 registered owner in the case of subsection (c) of this section or
24934084 the entitlement holder in the case of subsect ion (d) of this section
24944085 retains the right to make substitutions for the uncertificated
24954086 security or security entitlement, to originate instructions or
24964087 entitlement orders to the issuer or securities intermediary, or
24974088 otherwise to deal with the uncertificated security or security
24984089 entitlement.
2499-
25004090 (g) An issuer or a securities intermediary may not enter into
25014091 an agreement of the kind described in paragraph (2) of subsection
25024092 (c) or paragraph (2) of subsection (d) of this section without the
25034093 consent of the registered owner or entitlement hol der, but an issuer
25044094 or a securities intermediary is not required to enter into such an
25054095 agreement even though the registered owner or entitlement holder so
25064096 directs. An issuer or securities intermediary that has entered into
2507-such an agreement is not required to confirm the existence of the ENR. H. B. NO. 2776 Page 57
4097+such an agreement is not required to confirm the existence of the
4098+
4099+SENATE FLOOR VERSION - HB2776 SFLR Page 80
4100+(Bold face denotes Committee Amendments) 1
4101+2
4102+3
4103+4
4104+5
4105+6
4106+7
4107+8
4108+9
4109+10
4110+11
4111+12
4112+13
4113+14
4114+15
4115+16
4116+17
4117+18
4118+19
4119+20
4120+21
4121+22
4122+23
4123+24
4124+
25084125 agreement to another party unless requested to do so by the
25094126 registered owner or entitlement holder.
2510-
25114127 (h) A person that has control under this section is not
25124128 required to acknowledge that it has contro l on behalf of a
25134129 purchaser.
2514-
25154130 (i) If a person acknowledges that it has or will obtain control
25164131 on behalf of a purchaser, unless the person otherwise agrees or law
25174132 other than this article or Article 9 of this title otherwise
25184133 provides, the person does not owe any duty to the purchaser and is
25194134 not required to confirm the acknowledgment to any other person.
2520-
25214135 SECTION 40. AMENDATORY 12A O.S. 2021, Section 8 -110, is
25224136 amended to read as follows:
2523-
25244137 Section 8-110.
2525-
25264138 Applicability; Choice of Law.
2527-
25284139 (a) The local law of the iss uer's jurisdiction, as specified in
25294140 subsection (d) of this section, governs:
2530-
25314141 (1) the validity of a security;
2532-
25334142 (2) the rights and duties of the issuer with respect to
25344143 registration of transfer;
2535-
25364144 (3) the effectiveness of registration of transfer by the
25374145 issuer;
2538-
25394146 (4) whether the issuer owes any duties to an adverse
25404147 claimant to a security; and
4148+
4149+SENATE FLOOR VERSION - HB2776 SFLR Page 81
4150+(Bold face denotes Committee Amendments) 1
4151+2
4152+3
4153+4
4154+5
4155+6
4156+7
4157+8
4158+9
4159+10
4160+11
4161+12
4162+13
4163+14
4164+15
4165+16
4166+17
4167+18
4168+19
4169+20
4170+21
4171+22
4172+23
4173+24
25414174
25424175 (5) whether an adverse claim can be asserted against a
25434176 person to whom transfer of a certificated or
25444177 uncertificated security is registered or a person w ho
25454178 obtains control of an uncertificated security.
2546-
25474179 (b) The local law of the securities intermediary's
25484180 jurisdiction, as specified in subsection (e) of this section,
25494181 governs:
2550-
25514182 (1) acquisition of a security entitlement from the
2552-securities intermediary; ENR. H. B. NO. 2776 Page 58
2553-
4183+securities intermediary;
25544184 (2) the rights and duties of the securities intermediary
25554185 and entitlement holder arising out of a security
25564186 entitlement;
2557-
25584187 (3) whether the securities intermediary owes any duties to
25594188 an adverse claimant to a security entitlement; and
2560-
25614189 (4) whether an adverse claim can b e asserted against a
25624190 person who acquires a security entitlement from the
25634191 securities intermediary or a person who purchases a
25644192 security entitlement or interest therein from an
25654193 entitlement holder.
2566-
25674194 (c) The local law of the jurisdiction in which a security
25684195 certificate is located at the time of delivery governs whether an
25694196 adverse claim can be asserted against a person to whom the security
25704197 certificate is delivered.
4198+
4199+SENATE FLOOR VERSION - HB2776 SFLR Page 82
4200+(Bold face denotes Committee Amendments) 1
4201+2
4202+3
4203+4
4204+5
4205+6
4206+7
4207+8
4208+9
4209+10
4210+11
4211+12
4212+13
4213+14
4214+15
4215+16
4216+17
4217+18
4218+19
4219+20
4220+21
4221+22
4222+23
4223+24
25714224
25724225 (d) "Issuer's jurisdiction" means the jurisdiction under which
25734226 the issuer of the security is organ ized or, if permitted by the law
25744227 of that jurisdiction, the law of another jurisdiction specified by
25754228 the issuer. An issuer organized under the law of this state may
25764229 specify the law of another jurisdiction as the law governing the
25774230 matters specified in parag raphs (2) through (5) of subsection (a) of
25784231 this section.
2579-
25804232 (e) The following rules determine a "securities intermediary's
25814233 jurisdiction" for purposes of this section:
2582-
25834234 (1) If an agreement between the securities intermediary
25844235 and its entitlement holder governin g the securities
25854236 account expressly provides that a particular
25864237 jurisdiction is the securities intermediary's
25874238 jurisdiction for purposes of this part, this article,
25884239 or this title, that jurisdiction is the securities
25894240 intermediary's jurisdiction;
2590-
25914241 (2) If paragraph (1) does not apply and an agreement
25924242 between the securities intermediary and its
25934243 entitlement holder governing the securities account
25944244 expressly provides that the agreement is governed by
25954245 the law of a particular jurisdiction, that
25964246 jurisdiction is the secur ities intermediary's
2597-jurisdiction. ENR. H. B. NO. 2776 Page 59
4247+jurisdiction.
4248+
4249+SENATE FLOOR VERSION - HB2776 SFLR Page 83
4250+(Bold face denotes Committee Amendments) 1
4251+2
4252+3
4253+4
4254+5
4255+6
4256+7
4257+8
4258+9
4259+10
4260+11
4261+12
4262+13
4263+14
4264+15
4265+16
4266+17
4267+18
4268+19
4269+20
4270+21
4271+22
4272+23
4273+24
25984274
25994275 (3) If neither paragraph (1) nor paragraph (2) of this
26004276 subsection applies and an agreement between the
26014277 securities intermediary and its entitlement holder
26024278 governing the securities account expressly provides
26034279 that the securities account is maintained at an office
26044280 in a particular jurisdiction, that jurisdiction is the
26054281 securities intermediary's jurisdiction;
2606-
26074282 (4) If none of the preceding paragraphs of this subsection
26084283 applies, the securities intermediary's jurisdiction is
26094284 the jurisdiction in which the o ffice identified in an
26104285 account statement as the office serving the
26114286 entitlement holder's account is located; and
2612-
26134287 (5) If none of the preceding paragraphs of this subsection
26144288 applies, the securities intermediary's jurisdiction is
26154289 the jurisdiction in which the chief executive office
26164290 of the securities intermediary is located.
2617-
26184291 (f) A securities intermediary's jurisdiction is not determined
26194292 by the physical location of certificates representing financial
26204293 assets, or by the jurisdiction in whic h is organized the issue r of
26214294 the financial asset with respect to which an entitlement holder has
26224295 a security entitlement, or by the location of facilities for data
26234296 processing or other recordkeeping concerning the account.
2624-
26254297 (g) The local law of the issuer's jurisdiction or the
26264298 securities intermediary's jurisdiction governs a matter or
4299+
4300+SENATE FLOOR VERSION - HB2776 SFLR Page 84
4301+(Bold face denotes Committee Amendments) 1
4302+2
4303+3
4304+4
4305+5
4306+6
4307+7
4308+8
4309+9
4310+10
4311+11
4312+12
4313+13
4314+14
4315+15
4316+16
4317+17
4318+18
4319+19
4320+20
4321+21
4322+22
4323+23
4324+24
4325+
26274326 transaction specified in subsection (a) or (b) of this section even
26284327 if the matter or transaction does not bear any relation to the
26294328 jurisdiction.
2630-
26314329 SECTION 41. AMENDATORY 12A O.S. 2021, Section 8-303, is
26324330 amended to read as follows:
2633-
26344331 Section 8-303.
2635-
26364332 Protected Purchaser.
2637-
26384333 (a) "Protected purchaser" means a purchaser of a certificated
26394334 or uncertificated security, or of an interest therein, who:
2640-
26414335 (1) gives value;
2642- ENR. H. B. NO. 2776 Page 60
26434336 (2) does not have notice of any adverse claim to the
26444337 security; and
2645-
26464338 (3) obtains control of the certificated or uncertificated
26474339 security.
2648-
26494340 (b) In addition to acquiring the rights of a purchaser, a A
26504341 protected purchaser also acquires its interest in the security free
26514342 of any adverse claim.
2652-
26534343 SECTION 42. AMENDATORY 12A O.S. 2021, Section 1 -9-102,
26544344 is amended to read as follows:
2655-
26564345 Section 1-9-102.
2657-
26584346 DEFINITIONS AND INDEX OF DEFINITIONS
2659-
26604347 (a) In this article:
4348+
4349+SENATE FLOOR VERSION - HB2776 SFLR Page 85
4350+(Bold face denotes Committee Amendments) 1
4351+2
4352+3
4353+4
4354+5
4355+6
4356+7
4357+8
4358+9
4359+10
4360+11
4361+12
4362+13
4363+14
4364+15
4365+16
4366+17
4367+18
4368+19
4369+20
4370+21
4371+22
4372+23
4373+24
26614374
26624375 (1) "Accession" means goods that are phys ically united with
26634376 other goods in such a manner that the identity of the original goods
26644377 is not lost.
2665-
26664378 (2) (A) "Account", except as used in "account for", "account
26674379 statement", "account to", "commodity account" in
26684380 paragraph (14) of this subsection, "customer account",
26694381 "deposit account" in paragraph (29) of this
26704382 subsection, "on account of", and "statement of
26714383 account", means a right to payment of a monetary
26724384 obligation, whether or not earned by performance:
2673-
26744385 (i) for property that has been or is to be sold,
26754386 leased, licensed, assigned, or otherwise disposed
26764387 of;
2677-
26784388 (ii) for services rendered or to be rendered;
2679-
26804389 (iii) for a policy of insurance issued or to be issued;
2681-
26824390 (iv) for a secondary obligation incurred or to be
26834391 incurred;
2684-
26854392 (v) for energy provided or to be provided;
2686- ENR. H. B. NO. 2776 Page 61
26874393 (vi) for the use or hire of a vessel under a charter
26884394 or other contract;
2689-
26904395 (vii) arising out of the use of a credit or charge card
26914396 or information contained on or for use with the
26924397 card; or
4398+
4399+SENATE FLOOR VERSION - HB2776 SFLR Page 86
4400+(Bold face denotes Committee Amendments) 1
4401+2
4402+3
4403+4
4404+5
4405+6
4406+7
4407+8
4408+9
4409+10
4410+11
4411+12
4412+13
4413+14
4414+15
4415+16
4416+17
4417+18
4418+19
4419+20
4420+21
4421+22
4422+23
4423+24
26934424
26944425 (viii) as winnings in a lottery or other game of chance
26954426 operated or sponsored by a state, governmental
26964427 unit of a state, or a person licensed or
26974428 authorized to operate the game by a state or
26984429 governmental unit of a state.
2699-
27004430 (B) The term includes controllable accounts and health-
27014431 care-insurance receivables.
2702-
27034432 (C) The term does not include :
2704-
27054433 (i) rights to payment evidenced by chattel paper or
27064434 an instrument;
2707-
27084435 (ii) commercial tort claims;
2709-
27104436 (iii) deposit accounts;
2711-
27124437 (iv) investment property;
2713-
27144438 (v) letter-of-credit rights or letters of credit; or
2715-
27164439 (vi) rights to payment for money or funds advanced or
27174440 sold, other than rights arising out of the use of
27184441 a credit or charge card or information contained
27194442 on or for use with the card ; or
2720-
27214443 (vii) rights to payment evidenced by an instrument .
2722-
27234444 (3) "Account debtor" means a person obligated on an account,
27244445 chattel paper, or general intangible . The term does not include
27254446 persons obligated to pay a negotiable instrument, even if the
27264447 negotiable instrument constitutes part of evidences chattel paper.
27274448
4449+SENATE FLOOR VERSION - HB2776 SFLR Page 87
4450+(Bold face denotes Committee Amendments) 1
4451+2
4452+3
4453+4
4454+5
4455+6
4456+7
4457+8
4458+9
4459+10
4460+11
4461+12
4462+13
4463+14
4464+15
4465+16
4466+17
4467+18
4468+19
4469+20
4470+21
4471+22
4472+23
4473+24
4474+
27284475 (4) "Accounting", except as used in "accounting for", means a
27294476 record:
2730-
2731-(A) authenticated signed by a secured party; ENR. H. B. NO. 2776 Page 62
2732-
4477+(A) authenticated signed by a secured party;
27334478 (B) indicating the aggregate unpaid secured obligations as
27344479 of a date not more than thirty -five (35) days earlier
27354480 or thirty-five (35) days later than the date of the
27364481 record; and
2737-
27384482 (C) identifying the components of the obligations in
27394483 reasonable detail.
2740-
27414484 (5) "Agricultural lien" means an interest in farm products:
2742-
27434485 (A) which secures payment or performance of an obligation
27444486 for:
2745-
27464487 (i) goods or services furnished in connection with a
27474488 debtor's farming operation; or
2748-
27494489 (ii) rent on real property leased by a debtor in
27504490 connection with its farming operation;
2751-
27524491 (B) which is created by statute in favor of a person that:
2753-
27544492 (i) in the ordinary course of its business furnished
27554493 goods or services to a debtor in connection with
27564494 a debtor's farming o peration; or
2757-
27584495 (ii) leased real property to a debtor in connection
27594496 with the debtor's farming operation; and
2760-
27614497 (C) whose effectiveness does not depend on the person's
27624498 possession of the personal property.
27634499
4500+SENATE FLOOR VERSION - HB2776 SFLR Page 88
4501+(Bold face denotes Committee Amendments) 1
4502+2
4503+3
4504+4
4505+5
4506+6
4507+7
4508+8
4509+9
4510+10
4511+11
4512+12
4513+13
4514+14
4515+15
4516+16
4517+17
4518+18
4519+19
4520+20
4521+21
4522+22
4523+23
4524+24
4525+
27644526 (6) "As-extracted collateral" means:
2765-
27664527 (A) oil, gas, or other minerals that are subject to a
27674528 security interest that:
2768-
27694529 (i) is created by a debtor having an interest in the
27704530 minerals before extraction; and
2771-
27724531 (ii) attaches to the minerals as extracted; or
2773-
27744532 (B) accounts arising out of the sale at the wellhead or
27754533 minehead of oil, gas, or other mi nerals in which the
2776-debtor had an interest before extraction. ENR. H. B. NO. 2776 Page 63
2777-
4534+debtor had an interest before extraction.
27784535 (7) "Authenticate" means:
2779-
27804536 (A) to sign; or
2781-
27824537 (B) with present intent to adopt or accept a record, to
27834538 attach to or logically associate with the record an
27844539 electronic sound, symbol, or process Reserved.
2785-
27864540 (7A) "Assignee", except as used in "assignee for benefit of
27874541 creditors", means a person:
2788-
27894542 (A) in whose favor a security interest that secures an
27904543 obligation is created or provided for under a security
27914544 agreement, whether or not the obligation is
27924545 outstanding; or
2793-
27944546 (B) to which an account, chattel paper, payment
27954547 intangible, or promissory note has been sold. The
27964548 term includes a person to which a security interest
27974549 has been transferred by a secured party.
27984550
4551+SENATE FLOOR VERSION - HB2776 SFLR Page 89
4552+(Bold face denotes Committee Amendments) 1
4553+2
4554+3
4555+4
4556+5
4557+6
4558+7
4559+8
4560+9
4561+10
4562+11
4563+12
4564+13
4565+14
4566+15
4567+16
4568+17
4569+18
4570+19
4571+20
4572+21
4573+22
4574+23
4575+24
4576+
27994577 (7B) "Assignor" means a person t hat:
2800-
28014578 (A) under a security agreement, creates or provides for a
28024579 security interest that secures an obligation; or
2803-
28044580 (B) sells an account, chattel paper, payment intangible,
28054581 or promissory note. The term includes a secured party
28064582 that has transferred a security interest to another
28074583 person.
2808-
28094584 (8) "Bank" means an organization that is engaged in the
28104585 business of banking. The term includes savings banks, savings and
28114586 loan associations, credit unions, and trust companies.
2812-
28134587 (9) "Cash proceeds" means proceeds that are mone y, checks,
28144588 deposit accounts, or the like.
2815-
28164589 (10) "Certificate of title" means a certificate of title with
28174590 respect to which a statute provides for the security interest in
28184591 question to be indicated on the certificate as a condition or result
28194592 of the security interest's obtaining prio rity over the rights of a
28204593 lien creditor with respect to the collateral. The term includes
2821-another record maintained as an alternative to a certifica te of ENR. H. B. NO. 2776 Page 64
4594+another record maintained as an alternative to a certificate of
28224595 title by the governmental unit that issues certificates of title if
28234596 a statute permits the security interest in question to be indicated
28244597 on the record as a condition or result of the security interest's
28254598 obtaining priority over the rights of a lien creditor with respect
28264599 to the collateral.
4600+
4601+SENATE FLOOR VERSION - HB2776 SFLR Page 90
4602+(Bold face denotes Committee Amendments) 1
4603+2
4604+3
4605+4
4606+5
4607+6
4608+7
4609+8
4610+9
4611+10
4612+11
4613+12
4614+13
4615+14
4616+15
4617+16
4618+17
4619+18
4620+19
4621+20
4622+21
4623+22
4624+23
4625+24
28274626
28284627 (11) "Chattel paper" means a record or records that evidence
28294628 both a monetary obligation and a security interest in specific
28304629 goods, a security interest in specific goods and software used in
28314630 the goods, a security interest in specific goods and license of
28324631 software used in the goods, a lease of specifi c goods, or a lease of
28334632 specific goods and license of software used in the goods. In this
28344633 paragraph, "monetary obligation" means a monetary obligation secured
28354634 by the goods or owed under a lease of goods and includes a monetary
28364635 obligation with respect to so ftware used in the goods :
2837-
28384636 (A) a right to payment of a monetary obligation secured by
28394637 specific goods, if the right to payment and security
28404638 agreement are evidenced by a record; or
2841-
28424639 (B) a right to payment of a monetary obligation owed by a
28434640 lessee under a lease agreement with respect to
28444641 specific goods and a monetary obligation owed by the
28454642 lessee in connection with the transaction giving rise
28464643 to the lease, if:
2847-
28484644 (i) the right to payment and lease agreement are
28494645 evidenced by a record; and
2850-
28514646 (ii) the predominant purpose of the transaction givi ng
28524647 rise to the lease was to give the lessee the
28534648 right to possession and use of the goods .
2854-
28554649 The term does not include charters or other contracts involving the
28564650 use or hire of a vessel. If a transaction is evidenced by records
4651+
4652+SENATE FLOOR VERSION - HB2776 SFLR Page 91
4653+(Bold face denotes Committee Amendments) 1
4654+2
4655+3
4656+4
4657+5
4658+6
4659+7
4660+8
4661+9
4662+10
4663+11
4664+12
4665+13
4666+14
4667+15
4668+16
4669+17
4670+18
4671+19
4672+20
4673+21
4674+22
4675+23
4676+24
4677+
28574678 that include an instrument or series of instruments, the group of
28584679 records taken together constitutes chattel paper a right to payment
28594680 arising out of a charter or other contract involving the use or hire
28604681 of a vessel or a right to payment arising out of the use of a credit
28614682 or charge card or information contained on or for use with the card .
2862-
28634683 (12) "Collateral" means the property subject to a security
28644684 interest or agricultural lien. The term includes:
2865-
2866-(A) proceeds to which a security interest attaches; ENR. H. B. NO. 2776 Page 65
2867-
4685+(A) proceeds to which a security interest attaches;
28684686 (B) accounts, chattel paper, payment intangibles, and
28694687 promissory notes that have been sold; and
2870-
28714688 (C) goods that are the subject of a consignment.
2872-
28734689 (13) "Commercial tort claim" means a claim arising in tort with
28744690 respect to which:
2875-
28764691 (A) the claimant is an organization; or
2877-
28784692 (B) the claimant is an indi vidual and the claim:
2879-
28804693 (i) arose in the course of the claimant's business or
28814694 profession; and
2882-
28834695 (ii) does not include damages arising out of personal
28844696 injury to or the death of an individual.
2885-
28864697 (14) "Commodity account" means an account ma intained by a
28874698 commodity intermediary in which a commodity contract is carried for
28884699 a commodity customer.
28894700
4701+SENATE FLOOR VERSION - HB2776 SFLR Page 92
4702+(Bold face denotes Committee Amendments) 1
4703+2
4704+3
4705+4
4706+5
4707+6
4708+7
4709+8
4710+9
4711+10
4712+11
4713+12
4714+13
4715+14
4716+15
4717+16
4718+17
4719+18
4720+19
4721+20
4722+21
4723+22
4724+23
4725+24
4726+
28904727 (15) "Commodity contract" means a commodity futures contract,
28914728 an option on a commodity futures contract, a commodity option, or
28924729 another contract if the contract or option is:
2893-
28944730 (A) traded on or subject to the rules of a board of trade
28954731 that has been designated as a contract market for such
28964732 a contract pursuant to federal commodities laws; or
2897-
28984733 (B) traded on a foreign commodity board of trade,
28994734 exchange, or market, and is carried on the books of a
29004735 commodity intermediary for a commodity customer.
2901-
29024736 (16) "Commodity customer" means a person for which a commodity
29034737 intermediary carries a commodity contract on its books.
2904-
29054738 (17) "Commodity intermediary" means a person that :
2906-
29074739 (A) is registered as a futures commission merchant under
29084740 federal commodities law; or
2909-
29104741 (B) in the ordinary course of its business provides
2911-clearance or settlement services for a board of trade ENR. H. B. NO. 2776 Page 66
4742+clearance or settlement services for a board of trade
29124743 that has been designated as a contract market pursuant
29134744 to federal commodities law.
2914-
29154745 (18) "Communicate" means:
2916-
29174746 (A) to send a written or other tangible record;
2918-
29194747 (B) to transmit a record by any means agreed upon by the
29204748 persons sending and receiving the record; or
4749+
4750+SENATE FLOOR VERSION - HB2776 SFLR Page 93
4751+(Bold face denotes Committee Amendments) 1
4752+2
4753+3
4754+4
4755+5
4756+6
4757+7
4758+8
4759+9
4760+10
4761+11
4762+12
4763+13
4764+14
4765+15
4766+16
4767+17
4768+18
4769+19
4770+20
4771+21
4772+22
4773+23
4774+24
29214775
29224776 (C) in the case of transmission of a record to or by a
29234777 filing office, to transmit a record by any means
29244778 prescribed by filing -office rule.
2925-
29264779 (19) "Consignee" means a merchant to which goods are delivered
29274780 in a consignment.
2928-
29294781 (20) "Consignment" means a transaction, regardless of its form,
29304782 in which a person delivers goo ds to a merchant for the purpose of
29314783 sale and:
2932-
29334784 (A) the merchant:
2934-
29354785 (i) deals in goods of that kind under a name other
29364786 than the name of the person making delivery;
2937-
29384787 (ii) is not an auctioneer; and
2939-
29404788 (iii) is not generally known by its creditors to be
29414789 substantially engaged in selling the goods of
29424790 others;
2943-
29444791 (B) with respect to each delivery, the aggregate value of
29454792 the goods is One Thousand Dollars ($1,000.00) or more
29464793 at the time of delivery;
2947-
29484794 (C) the goods are not consumer goods immediately before
29494795 delivery; and
2950-
29514796 (D) the transaction does not create a security interest
29524797 that secures an obligation.
2953-
29544798 (21) "Consignor" means a person that delivers goods to a
29554799 consignee in a consignment.
2956- ENR. H. B. NO. 2776 Page 67
4800+
4801+SENATE FLOOR VERSION - HB2776 SFLR Page 94
4802+(Bold face denotes Committee Amendments) 1
4803+2
4804+3
4805+4
4806+5
4807+6
4808+7
4809+8
4810+9
4811+10
4812+11
4813+12
4814+13
4815+14
4816+15
4817+16
4818+17
4819+18
4820+19
4821+20
4822+21
4823+22
4824+23
4825+24
4826+
29574827 (22) "Consumer debtor" means a debtor in a consumer
29584828 transaction.
2959-
29604829 (23) "Consumer goods" means goods that are used or bought for
29614830 use primarily for personal, family, or household purposes.
2962-
29634831 (24) "Consumer-goods transaction" means a consumer transaction
29644832 in which:
2965-
29664833 (A) an individual incurs an obligation primarily for
29674834 personal, family, or household purp oses; and
2968-
29694835 (B) a security interest in consumer goods secures the
29704836 obligation.
2971-
29724837 (25) "Consumer obligor" means an obligor who is an individual
29734838 and who incurred the obligation as part of a transaction entered
29744839 into primarily for personal, family, or household pu rposes.
2975-
29764840 (26) "Consumer transaction" means a transaction in which (i) an
29774841 individual incurs an obligation primarily for personal, family, or
29784842 household purposes, (ii) a security interest secures the obligation,
29794843 and (iii) the collateral is held or acquired pr imarily for personal,
29804844 family, or household purposes. The term includes consumer -goods
29814845 transactions.
2982-
29834846 (27) "Continuation statement" means an amendment of a financing
29844847 statement which:
2985-
29864848 (A) identifies, by its file number, the initial financing
29874849 statement to which it relates; and
4850+
4851+SENATE FLOOR VERSION - HB2776 SFLR Page 95
4852+(Bold face denotes Committee Amendments) 1
4853+2
4854+3
4855+4
4856+5
4857+6
4858+7
4859+8
4860+9
4861+10
4862+11
4863+12
4864+13
4865+14
4866+15
4867+16
4868+17
4869+18
4870+19
4871+20
4872+21
4873+22
4874+23
4875+24
29884876
29894877 (B) indicates that it is a continuation statement for, or
29904878 that it is filed to continue the effectiveness of, the
29914879 identified financing statement.
2992-
29934880 (27A) "Controllable account" means an account evidenced by a
29944881 controllable electronic recor d that provides that the account debtor
29954882 undertakes to pay the person that has control under Section 12 -105
29964883 of this title of the controllable electronic record.
2997-
29984884 (27B) "Controllable payment intangible" means a payment
29994885 intangible evidenced by a controllable electronic record that
3000-provides that the account debtor undertakes to pay the person that ENR. H. B. NO. 2776 Page 68
4886+provides that the account debtor undertakes to pay the person that
30014887 has control under Section 12 -105 of this title of the controllable
30024888 electronic record.
3003-
30044889 (28) "Debtor" means:
3005-
30064890 (A) a person having an interest, other than a security
30074891 interest or other lien, in the collateral, whether or
30084892 not the person is an obligor;
3009-
30104893 (B) a seller of accounts, chattel paper, payment
30114894 intangibles, or promissory notes; or
3012-
30134895 (C) a consignee.
3014-
30154896 (29) "Deposit account" means a demand, time, savings, passbook,
30164897 or similar account maintained w ith a bank as defined in paragraph
30174898 (8) of this subsection. The term does not include investment
30184899 property or a deposit account evidenced by an instrument.
30194900
4901+SENATE FLOOR VERSION - HB2776 SFLR Page 96
4902+(Bold face denotes Committee Amendments) 1
4903+2
4904+3
4905+4
4906+5
4907+6
4908+7
4909+8
4910+9
4911+10
4912+11
4913+12
4914+13
4915+14
4916+15
4917+16
4918+17
4919+18
4920+19
4921+20
4922+21
4923+22
4924+23
4925+24
4926+
30204927 (30) "Document" means a document of title or a receipt of the
30214928 type described in subsection (b) of Section 7 -201 of this title.
3022-
30234929 (31) "Electronic chattel paper" means chattel paper evidenced
30244930 by a record or records consisting of information stored in an
30254931 electronic medium Reserved.
3026-
30274932 (32) "Encumbrance" means a right, other than an own ership
30284933 interest, in real property. The term includes mortgages and other
30294934 liens on real property.
3030-
30314935 (33) "Equipment" means goods other than inventory, farm
30324936 products, or consumer goods.
3033-
30344937 (34) "Farm products" means goods, other than standing timber,
30354938 with respect to which the debtor is engaged in a farming operation
30364939 and which are:
3037-
30384940 (A) crops grown, growing, or to be grown, including:
3039-
30404941 (i) crops produced on trees, vines, and bushes; and
3041-
30424942 (ii) aquatic goods produced in aquacultural
30434943 operations;
3044- ENR. H. B. NO. 2776 Page 69
30454944 (B) livestock, born or unborn, including aquat ic goods
30464945 produced in aquacultural operations;
3047-
30484946 (C) supplies used or produced in a farming operation; or
3049-
30504947 (D) products of crops or livestock in their unmanufactured
30514948 states.
4949+
4950+SENATE FLOOR VERSION - HB2776 SFLR Page 97
4951+(Bold face denotes Committee Amendments) 1
4952+2
4953+3
4954+4
4955+5
4956+6
4957+7
4958+8
4959+9
4960+10
4961+11
4962+12
4963+13
4964+14
4965+15
4966+16
4967+17
4968+18
4969+19
4970+20
4971+21
4972+22
4973+23
4974+24
30524975
30534976 (35) "Farming operation" means raising, cultivating,
30544977 propagating, fattening, grazing, or any other farming, livestock, or
30554978 aquacultural operation.
3056-
30574979 (36) "File number" means the number assigned to an initial
30584980 financing statement pursuant to subsection (a) of Section 1 -9-519 of
30594981 this title.
3060-
30614982 (37) "Filing office" means an office designated in Se ction 1-9-
30624983 501 as the place to file a financing statement.
3063-
30644984 (38) "Filing-office rule" means a rule adopted pursuant to
30654985 Sections 1-9-526 and 1-9-526.1 of this title.
3066-
30674986 (39) "Financing statement" means a record or records composed
30684987 of an initial financing statement and any filed record relating to
30694988 the initial financing statement.
3070-
30714989 (40) "Fixture filing" means the filing of a financing statement
30724990 covering goods that are or are to become fixtures and satisfying
30734991 subsections (a) and (b) of Sect ion 1-9-502 of this title. The term
30744992 includes the filing of a financing statement covering goods of a
30754993 transmitting utility which are or are to become fixtures.
3076-
30774994 (41) "Fixtures" means goods that have become so related to
30784995 particular real property that an int erest in them arises under real
30794996 property law.
3080-
30814997 (42) "General intangible" means any personal property,
30824998 including things in action, other than accounts, chattel paper,
30834999 commercial tort claims, deposit accounts, documents, goods,
5000+
5001+SENATE FLOOR VERSION - HB2776 SFLR Page 98
5002+(Bold face denotes Committee Amendments) 1
5003+2
5004+3
5005+4
5006+5
5007+6
5008+7
5009+8
5010+9
5011+10
5012+11
5013+12
5014+13
5015+14
5016+15
5017+16
5018+17
5019+18
5020+19
5021+20
5022+21
5023+22
5024+23
5025+24
5026+
30845027 instruments, investment proper ty, letter-of-credit rights, letters
30855028 of credit, money, and oil, gas, or other minerals before extraction.
30865029 The term includes controllable electronic records, payment
30875030 intangibles and software.
3088- ENR. H. B. NO. 2776 Page 70
30895031 (43) "Good faith" means honesty in fact and the observance of
30905032 reasonable commercial standards of fair dealing.
3091-
30925033 (44) (A) "Goods" means all things that are movable when a
30935034 security interest attaches.
3094-
30955035 (B) The term includes:
3096-
30975036 (i) fixtures;
3098-
30995037 (ii) standing timber that is to be cut and removed
31005038 under a conveyance or contract for sale;
3101-
31025039 (iii) the unborn young of animals;
3103-
31045040 (iv) crops grown, growing, or to be grown, even if the
31055041 crops are produced on trees, vines, or bushes;
31065042 and
3107-
31085043 (v) manufactured homes.
3109-
31105044 (C) The term also includes a computer program embedded in
31115045 goods and any supporting i nformation provided in
31125046 connection with a transaction relating to the program
31135047 if:
3114-
31155048 (i) the program is associated with the goods in such
31165049 a manner that it customarily is considered part
31175050 of the goods; or
31185051
5052+SENATE FLOOR VERSION - HB2776 SFLR Page 99
5053+(Bold face denotes Committee Amendments) 1
5054+2
5055+3
5056+4
5057+5
5058+6
5059+7
5060+8
5061+9
5062+10
5063+11
5064+12
5065+13
5066+14
5067+15
5068+16
5069+17
5070+18
5071+19
5072+20
5073+21
5074+22
5075+23
5076+24
5077+
31195078 (ii) by becoming the owner of the goods, a person
31205079 acquires a right to use the pro gram in connection
31215080 with the goods.
3122-
31235081 (D) The term does not include a computer program which is
31245082 embedded in goods and that consist solely of the
31255083 medium in which the program is embedded.
3126-
31275084 (E) The term also does not include accounts, chat tel
31285085 paper, commercial tort claims, deposit accounts,
31295086 documents, general intangibles, instruments,
31305087 investment property, letter -of-credit rights, letters
31315088 of credit, money, or oil, gas, or other minerals
31325089 before extraction.
3133- ENR. H. B. NO. 2776 Page 71
31345090 (45) "Governmental unit" means a su bdivision, agency,
31355091 department, county, parish, municipality, or other unit of the
31365092 government of the United States, a state, or a foreign country. The
31375093 term includes an organization having a separate corporate existence
31385094 if the organization is eligible to is sue debt on which interest is
31395095 exempt from income taxation under the laws of the United States.
3140-
31415096 (46) "Health-care-insurance receivable" means an interest in or
31425097 claim under a policy of insurance which is a right to payment of a
31435098 monetary obligation for healt h-care goods or services provided or to
31445099 be provided.
3145-
31465100 (47) (A) "Instrument" means a negotiable instrument or any
31475101 other writing that evidences a right to the payment of
5102+
5103+SENATE FLOOR VERSION - HB2776 SFLR Page 100
5104+(Bold face denotes Committee Amendments) 1
5105+2
5106+3
5107+4
5108+5
5109+6
5110+7
5111+8
5112+9
5113+10
5114+11
5115+12
5116+13
5117+14
5118+15
5119+16
5120+17
5121+18
5122+19
5123+20
5124+21
5125+22
5126+23
5127+24
5128+
31485129 a monetary obligation, is not itself a security
31495130 agreement or lease, and is of a type that in ordinary
31505131 course of business is transferred by delivery with any
31515132 necessary endorsement or assignment.
3152-
31535133 (B) "Instrument" includes:
3154-
31555134 (i) an instrument as defined in subparagraph (A) of
31565135 this paragraph, whether the instrument is subject
31575136 to Section 3-104 of this title because it is n ot
31585137 payable to order; and
3159-
31605138 (ii) a writing that contains both an acknowledgment by
31615139 a bank as defined in paragraph (8) of this
31625140 subsection that a sum of money has been received
31635141 by the bank and its promise to repay the sum of
31645142 money, which is considered a certificate of
31655143 deposit by the bank issuing it, even if the
31665144 writing provides that it is nontransferable or
31675145 uses similar language.
3168-
31695146 (C) The term does not include:
3170-
31715147 (i) investment property;
3172-
31735148 (ii) letters of credit; or
3174-
31755149 (iii) writings that evidenc e a right to payment ari sing
31765150 out of the use of a credit or charge card or
31775151 information contained on or for use with the
3178-card; or ENR. H. B. NO. 2776 Page 72
5152+card; or
5153+
5154+SENATE FLOOR VERSION - HB2776 SFLR Page 101
5155+(Bold face denotes Committee Amendments) 1
5156+2
5157+3
5158+4
5159+5
5160+6
5161+7
5162+8
5163+9
5164+10
5165+11
5166+12
5167+13
5168+14
5169+15
5170+16
5171+17
5172+18
5173+19
5174+20
5175+21
5176+22
5177+23
5178+24
31795179
31805180 (iv) writings that evidence chattel paper .
3181-
31825181 (48) "Inventory" means goods, other than farm products, which:
3183-
31845182 (A) are leased by a person as lessor;
3185-
31865183 (B) are held by a person for sale or lease or to be
31875184 furnished under a contract of service;
3188-
31895185 (C) are furnished by a person under a contract of service;
31905186 or
3191-
31925187 (D) consist of raw materials, work in process, or
31935188 materials used or consumed in a busi ness.
3194-
31955189 (49) "Investment property" means a security, whether
31965190 certificated or uncertificated, security entitlement, securities
31975191 account, commodity contract, or commodity account.
3198-
31995192 (50) "Jurisdiction of organization", with respect to a
32005193 registered organization, means the jurisdiction under whose law the
32015194 organization is formed or organized.
3202-
32035195 (51) "Letter-of-credit right" means a right to payment or
32045196 performance under a letter of credit, whether or not the beneficiary
32055197 has demanded or is at the time entitled to dema nd payment or
32065198 performance. The term does not include the right of a beneficiary
32075199 to demand payment or performance under a letter of credit.
3208-
32095200 (52) "Lien creditor" means:
3210-
32115201 (A) a creditor that has acquired a lien on the property
32125202 involved by attachment, levy, o r the like;
32135203
5204+SENATE FLOOR VERSION - HB2776 SFLR Page 102
5205+(Bold face denotes Committee Amendments) 1
5206+2
5207+3
5208+4
5209+5
5210+6
5211+7
5212+8
5213+9
5214+10
5215+11
5216+12
5217+13
5218+14
5219+15
5220+16
5221+17
5222+18
5223+19
5224+20
5225+21
5226+22
5227+23
5228+24
5229+
32145230 (B) an assignee for benefit of creditors from the time of
32155231 assignment;
3216-
32175232 (C) a trustee in bankruptcy from the date of the filing of
32185233 the petition; or
3219-
32205234 (D) a receiver in equity from the time of appointment.
3221-
32225235 (53) (A) "Manufactured home" means a struct ure, transportable
3223-in one or more sections, which: ENR. H. B. NO. 2776 Page 73
3224-
5236+in one or more sections, which:
32255237 (i) in the traveling mode, is eight (8) body feet or
32265238 more in width or forty (40) body feet or more in
32275239 length, or, when erected on site, is three
32285240 hundred twenty (320) or more square feet;
3229-
32305241 (ii) is built on a permanent chassis;
3231-
32325242 (iii) is designed to be used as a dwelling with or
32335243 without a permanent foundation when connected to
32345244 the required utilities; and
3235-
32365245 (iv) includes the plumbing, heating, air -conditioning,
32375246 and electrical systems contained therein.
3238-
32395247 (B) The term includes any structure that meets all of the
32405248 requirements of this paragraph except the size
32415249 requirements and with respect to which the
32425250 manufacturer voluntarily files a certification
32435251 required by the United States Secretary of Housing and
32445252 Urban Development and complies with the standards
32455253 established under Title 42 of the United States Code.
32465254
5255+SENATE FLOOR VERSION - HB2776 SFLR Page 103
5256+(Bold face denotes Committee Amendments) 1
5257+2
5258+3
5259+4
5260+5
5261+6
5262+7
5263+8
5264+9
5265+10
5266+11
5267+12
5268+13
5269+14
5270+15
5271+16
5272+17
5273+18
5274+19
5275+20
5276+21
5277+22
5278+23
5279+24
5280+
32475281 (54) "Manufactured-home transaction" means a secured
32485282 transaction:
3249-
32505283 (A) that creates a purchase -money security interest in a
32515284 manufactured home, other than a manufactured home held
32525285 as inventory; or
3253-
32545286 (B) in which a manufactured home, other than a
32555287 manufactured home held as inventory, is the primary
32565288 collateral.
3257-
32585289 (54A) "Money" has the same meaning as in paragraph (24) of
32595290 subsection (b) of Section 1 -201 of this title, but does no t include
32605291 a deposit account.
3261-
32625292 (55) "Mortgage" means a consensual interest in real property,
32635293 including fixtures, which secures payment or performance of an
32645294 obligation.
3265-
32665295 (56) "New debtor" means a person that becomes bound as a debtor
32675296 under subsection (d) of Section 1-9-203 of this title by a security
3268-agreement previously entered into by another person. ENR. H. B. NO. 2776 Page 74
3269-
5297+agreement previously entered into by another person.
32705298 (57) (A) "New value" means:
3271-
32725299 (i) money;
3273-
32745300 (ii) money's worth in property, services, or new
32755301 credit; or
3276-
32775302 (iii) release by a transferee of an interest in
32785303 property previously transferred to the
32795304 transferee.
32805305
5306+SENATE FLOOR VERSION - HB2776 SFLR Page 104
5307+(Bold face denotes Committee Amendments) 1
5308+2
5309+3
5310+4
5311+5
5312+6
5313+7
5314+8
5315+9
5316+10
5317+11
5318+12
5319+13
5320+14
5321+15
5322+16
5323+17
5324+18
5325+19
5326+20
5327+21
5328+22
5329+23
5330+24
5331+
32815332 (B) The term does not include an obligation substituted
32825333 for another obligation.
3283-
32845334 (58) "Noncash proceeds" means proceeds other than cash
32855335 proceeds.
3286-
32875336 (59) (A) "Obligor" means a person that, with respect to an
32885337 obligation secured by a security int erest in or an
32895338 agricultural lien on the collateral:
3290-
32915339 (i) owes payment or other performance of the
32925340 obligation;
3293-
32945341 (ii) has provided property other than the collateral
32955342 to secure payment or other performance of the
32965343 obligation; or
3297-
32985344 (iii) is otherwise accountable in whole or in part for
32995345 payment or other performance of the obligation.
3300-
33015346 (B) The term does not include issuers or nominated persons
33025347 under a letter of credit.
3303-
33045348 (60) "Original debtor" means a person that, as debtor, entered
33055349 into a security agreement to which a new debtor has become bound
33065350 under subsection (d) of Section 1 -9-203 of this title.
3307-
33085351 (61) "Payment intangible" means a general intangible under
33095352 which the account debtor's principal obligation is a monetary
33105353 obligation. The term includes a controllable payment intangible.
3311-
33125354 (62) "Person related to", with respect to an individual, means:
3313- ENR. H. B. NO. 2776 Page 75
33145355 (A) the spouse of the individual;
5356+
5357+SENATE FLOOR VERSION - HB2776 SFLR Page 105
5358+(Bold face denotes Committee Amendments) 1
5359+2
5360+3
5361+4
5362+5
5363+6
5364+7
5365+8
5366+9
5367+10
5368+11
5369+12
5370+13
5371+14
5372+15
5373+16
5374+17
5375+18
5376+19
5377+20
5378+21
5379+22
5380+23
5381+24
33155382
33165383 (B) a brother, brother-in-law, sister, or sister -in-law of
33175384 the individual;
3318-
33195385 (C) an ancestor or lineal descendant of the individual or
33205386 the individual's spouse; or
3321-
33225387 (D) any other relative, by blood or marriage, of the
33235388 individual or the individual's spouse who shares the
33245389 same home with the individual.
3325-
33265390 (63) "Person related to", with respect to an organization,
33275391 means:
3328-
33295392 (A) a person directly or indirectly controlling,
33305393 controlled by, or under common control with the
33315394 organization;
3332-
33335395 (B) an officer or director of, or a person performing
33345396 similar functions with respect to, the organization;
3335-
33365397 (C) an officer or director of, or a person perf orming
33375398 similar functions with respect to, a person described
33385399 in subparagraph (A) of this paragraph;
3339-
33405400 (D) the spouse of an individual described in subparagraph
33415401 (A), (B), or (C) of this paragraph; or
3342-
33435402 (E) an individual who is related by blood or marriage to
33445403 an individual described in subparagraph (A), (B), (C),
33455404 or (D) of this paragraph and who shares the same home
33465405 with the individual.
3347-
33485406 (64) "Proceeds" means the following property:
5407+
5408+SENATE FLOOR VERSION - HB2776 SFLR Page 106
5409+(Bold face denotes Committee Amendments) 1
5410+2
5411+3
5412+4
5413+5
5414+6
5415+7
5416+8
5417+9
5418+10
5419+11
5420+12
5421+13
5422+14
5423+15
5424+16
5425+17
5426+18
5427+19
5428+20
5429+21
5430+22
5431+23
5432+24
33495433
33505434 (A) whatever is acquired upon the sale, lease, license,
33515435 exchange, or other dispos ition of collateral;
3352-
33535436 (B) whatever is collected on, or distributed on account
33545437 of, collateral;
3355-
33565438 (C) rights arising out of collateral;
3357- ENR. H. B. NO. 2776 Page 76
33585439 (D) to the extent of the value of collateral, claims
33595440 arising out of the loss, nonconformity, or
33605441 interference with the use of, defects or infringement
33615442 of rights in, or damage to, the collateral; or
3362-
33635443 (E) to the extent of the value of collateral and to the
33645444 extent payable to the debtor or the secured party,
33655445 insurance payable by reason of the loss or
33665446 nonconformity of, defects or infri ngement of rights
33675447 in, or damage to, the collateral.
3368-
33695448 (65) "Promissory note" means an instrument that evidences a
33705449 promise to pay a monetary obligation, does not evidence an order to
33715450 pay, and does not contain an acknowledgment by a bank that the bank
33725451 has received for deposit a sum of money or funds.
3373-
33745452 (66) "Proposal" means a record authenticated signed by a
33755453 secured party which includes the terms on which the secured party is
33765454 willing to accept collateral in full or partial satisfaction of the
33775455 obligation it secures pursuant to Sections 1-9-620, 1-9-621, and 1-
33785456 9-622 of this title.
33795457
5458+SENATE FLOOR VERSION - HB2776 SFLR Page 107
5459+(Bold face denotes Committee Amendments) 1
5460+2
5461+3
5462+4
5463+5
5464+6
5465+7
5466+8
5467+9
5468+10
5469+11
5470+12
5471+13
5472+14
5473+15
5474+16
5475+17
5476+18
5477+19
5478+20
5479+21
5480+22
5481+23
5482+24
5483+
33805484 (67) "Public-finance transaction" means a secured transaction
33815485 in connection with which:
3382-
33835486 (A) debt securities are issued;
3384-
33855487 (B) all or a portion of the securities issued have an
33865488 initial stated maturity of at least twenty (20) years;
33875489 and
3388-
33895490 (C) the debtor, obligor, secured party, account debtor or
33905491 other person obligated on collateral, assignor or
33915492 assignee of a secured obligation, or assignor or
33925493 assignee of a security interest is a state or a
33935494 governmental unit of a stat e.
3394-
33955495 (68) "Public organic record" means a record that is available
33965496 to the public for inspection and that is:
3397-
33985497 (A) a record consisting of the record initially filed with
33995498 or issued by a state or the United States to form or
34005499 organize an organization and any record filed with or
34015500 issued by the state or the United States which amends
3402-or restates the initial re cord; ENR. H. B. NO. 2776 Page 77
3403-
5501+or restates the initial record;
34045502 (B) an organic record of a business trust consisting of
34055503 the record initially filed with a state and any record
34065504 filed with the state which amends or rest ates the
34075505 initial record, if a statute of the state governing
34085506 business trusts requires that the record be filed with
34095507 the state; or
34105508
5509+SENATE FLOOR VERSION - HB2776 SFLR Page 108
5510+(Bold face denotes Committee Amendments) 1
5511+2
5512+3
5513+4
5514+5
5515+6
5516+7
5517+8
5518+9
5519+10
5520+11
5521+12
5522+13
5523+14
5524+15
5525+16
5526+17
5527+18
5528+19
5529+20
5530+21
5531+22
5532+23
5533+24
5534+
34115535 (C) a record consisting of legislation enacted by the
34125536 Legislature of a state or the Congress of the Un ited
34135537 States which forms or organizes an organization, any
34145538 record amending the legislation, and any record filed
34155539 with or issued by the state or United States which
34165540 amends or restates the name of the organization.
3417-
34185541 (69) "Pursuant to commitment", with respect to an advance made
34195542 or other value given by a secured party, means pursuant to the
34205543 secured party's obligation, whether or not a subsequent event of
34215544 default or other event not within the secured party's control has
34225545 relieved or may relieve the secured party from its obligation.
3423-
34245546 (70) "Record", except as used in "for record", "of record",
34255547 "record or legal title", and "record owner", means information that
34265548 is inscribed on a tangible medium or which is stored in an
34275549 electronic or other medium and is retrievable i n perceivable form.
3428-
34295550 (71) "Registered organization" means an organization formed or
34305551 organized solely under the law of a single state or the United
34315552 States by the filing of a public organic record with, the issuance
34325553 of a public organic record by, or the enac tment of legislation by
34335554 the state or United States. The term includes a business trust that
34345555 is formed or organized under the law of a single state if a statute
34355556 of the state governing business trusts requires that the business
34365557 trusts' organic record be fil ed with the state.
3437-
34385558 (72) "Secondary obligor" means an obligor to the extent that:
34395559
5560+SENATE FLOOR VERSION - HB2776 SFLR Page 109
5561+(Bold face denotes Committee Amendments) 1
5562+2
5563+3
5564+4
5565+5
5566+6
5567+7
5568+8
5569+9
5570+10
5571+11
5572+12
5573+13
5574+14
5575+15
5576+16
5577+17
5578+18
5579+19
5580+20
5581+21
5582+22
5583+23
5584+24
5585+
34405586 (A) the obligor's obligation is secondary; or
3441-
34425587 (B) the obligor has a right of recourse with respect to an
34435588 obligation secured by collateral against the debtor,
34445589 another obligor, or property of either.
3445-
34465590 (73) "Secured party" means:
3447- ENR. H. B. NO. 2776 Page 78
34485591 (A) a person in whose favor a security interest is created
34495592 or provided for under a security agreement, whether or
34505593 not any obligation to be secured is outstanding;
3451-
34525594 (B) a person that holds an agricultural lien;
3453-
34545595 (C) a consignor;
3455-
34565596 (D) a person to which accounts, chattel paper, payment
34575597 intangibles, or promissory notes have been sold;
3458-
34595598 (E) a trustee, indenture trustee, agent, collateral agent,
34605599 or other representative in whose favor a security
34615600 interest or agricult ural lien is created or provided
34625601 for; or
3463-
34645602 (F) a person that holds a security interest arising under
34655603 Section 2-401, 2-505, paragraph (3) of Section 2 -711,
34665604 paragraph (5) of Section 2A -508, 4-210, or 5-118 of
34675605 this title.
3468-
34695606 (74) "Security agreement" means an agr eement that creates or
34705607 provides for a security interest.
3471-
34725608 (75) "Send", in connection with a record or notification,
34735609 means:
5610+
5611+SENATE FLOOR VERSION - HB2776 SFLR Page 110
5612+(Bold face denotes Committee Amendments) 1
5613+2
5614+3
5615+4
5616+5
5617+6
5618+7
5619+8
5620+9
5621+10
5622+11
5623+12
5624+13
5625+14
5626+15
5627+16
5628+17
5629+18
5630+19
5631+20
5632+21
5633+22
5634+23
5635+24
34745636
34755637 (A) to deposit in the mail, deliver for transmission, or
34765638 transmit by any other usual means of communication,
34775639 with postage or cost of transmission provided for,
34785640 addressed to any address reasonable under the
34795641 circumstances; or
3480-
34815642 (B) to cause the record or notification to be received
34825643 within the time that it would have been received if
34835644 properly sent under subparagraph (A) of this paragraph
34845645 Reserved.
3485-
34865646 (76) "Software" means a computer program and any supporting
34875647 information provided in connection with a transaction relating to
34885648 the program. The term does not include a computer program that is
34895649 included in the definition of goods.
3490-
34915650 (77) "State" means a state of the United States, the District
3492-of Columbia, Puerto Rico, the United States Virgin Islands, or any ENR. H. B. NO. 2776 Page 79
5651+of Columbia, Puerto Rico, the United States Virgin Islands, or any
34935652 territory or insular possession subject to the jurisdiction of the
34945653 United States.
3495-
34965654 (78) "Supporting obligation" means a letter -of-credit right or
34975655 secondary obligation t hat supports the payment or performance of an
34985656 account, chattel paper, a document, a general intangible, an
34995657 instrument, or investment property.
3500-
35015658 (79) "Tangible chattel paper" means chattel paper evidenced by
35025659 a record or records consi sting of information that is inscribed on a
35035660 tangible medium Reserved.
35045661
5662+SENATE FLOOR VERSION - HB2776 SFLR Page 111
5663+(Bold face denotes Committee Amendments) 1
5664+2
5665+3
5666+4
5667+5
5668+6
5669+7
5670+8
5671+9
5672+10
5673+11
5674+12
5675+13
5676+14
5677+15
5678+16
5679+17
5680+18
5681+19
5682+20
5683+21
5684+22
5685+23
5686+24
5687+
35055688 (80) "Termination statement" means an amendment of a financing
35065689 statement which:
3507-
35085690 (A) identifies, by its file number, the initial financing
35095691 statement to which it relates; and
3510-
35115692 (B) indicates either that it is a te rmination statement or
35125693 that the identified financing statement is no longer
35135694 effective.
3514-
35155695 (81) "Transmitting utility" means a person primarily engaged in
35165696 the business of:
3517-
35185697 (A) operating a railroad, subway, street railway, or
35195698 trolley bus;
3520-
35215699 (B) transmitting communications electrically,
35225700 electromagnetically, or by light;
3523-
35245701 (C) transmitting goods by pipeline or sewer; or
3525-
35265702 (D) transmitting or producing and transmitting
35275703 electricity, steam, gas, or water.
3528-
35295704 (b) "Control" as provided in Section 7 -106 of this title and
35305705 the following definitions in other articles of this title apply to
35315706 this article:
3532-
35335707 "Applicant" - Section 5-102 of this title.
3534-
35355708 "Beneficiary" - Section 5-102 of this title.
3536-
3537-"Broker" - Section 8-102 of this title. ENR. H. B. NO. 2776 Page 80
3538-
5709+"Broker" - Section 8-102 of this title.
35395710 "Certificated security" - Section 8-102 of this title.
3540-
35415711 "Check" - Section 3-104 of this title.
35425712
5713+SENATE FLOOR VERSION - HB2776 SFLR Page 112
5714+(Bold face denotes Committee Amendments) 1
5715+2
5716+3
5717+4
5718+5
5719+6
5720+7
5721+8
5722+9
5723+10
5724+11
5725+12
5726+13
5727+14
5728+15
5729+16
5730+17
5731+18
5732+19
5733+20
5734+21
5735+22
5736+23
5737+24
5738+
35435739 "Clearing corporation" - Section 8-102 of this title.
3544-
35455740 "Contract for sale" - Section 2-106 of this title.
3546-
35475741 "Controllable electronic record" – Section 12-102 of this title.
3548-
35495742 "Customer" - Section 4-104 of this title.
3550-
35515743 "Entitlement holder" - Section 8-102 of this title.
3552-
35535744 "Financial asset" - Section 8-102 of this title.
3554-
35555745 "Holder in due course" - Section 3-302 of this title.
3556-
35575746 "Issuer" (with respect to a letter of credit or letter -of-credit
35585747 right)- Section 5-102 of this title.
3559-
35605748 "Issuer" – (with respect to a security) – Section 8-201 of this
35615749 title.
3562-
35635750 "Issuer" – (with respect to documents of title) – Section 7-102
35645751 of this title.
3565-
35665752 "Lease" - Section 2A-103 of this title.
3567-
35685753 "Lease agreement" - Section 2A-103 of this title.
3569-
35705754 "Lease contract" - Section 2A-103 of this title.
3571-
35725755 "Leasehold interest" - Section 2A-103 of this title.
3573-
35745756 "Lessee" - Section 2A-103 of this title.
3575-
35765757 "Lessee in ordinary course of business" - Section 2A-103 of this
35775758 title.
3578-
35795759 "Lessor" - Section 2A-103 of this title.
3580-
35815760 "Lessor's residual interest" - Section 2A-103 of this title.
3582- ENR. H. B. NO. 2776 Page 81
35835761 "Letter of credit" - Section 5-102 of this title.
3584-
35855762 "Merchant" - Section 2-104 of this title.
35865763
5764+SENATE FLOOR VERSION - HB2776 SFLR Page 113
5765+(Bold face denotes Committee Amendments) 1
5766+2
5767+3
5768+4
5769+5
5770+6
5771+7
5772+8
5773+9
5774+10
5775+11
5776+12
5777+13
5778+14
5779+15
5780+16
5781+17
5782+18
5783+19
5784+20
5785+21
5786+22
5787+23
5788+24
5789+
35875790 "Negotiable instrument" - Section 3-104 of this title.
3588-
35895791 "Nominated person" - Section 5-102 of this title.
3590-
35915792 "Note" - Section 3-104 of this title.
3592-
35935793 "Proceeds of a letter of credit" - Section 5-114 of this title.
3594-
35955794 "Protected purchaser" – Section 8-303 of this title.
3596-
35975795 "Prove" - Section 3-103 of this title.
3598-
35995796 "Qualifying purchaser" – Section 12-102 of this title.
3600-
36015797 "Sale" - Section 2-106 of this title.
3602-
36035798 "Securities account" - Section 8-501 of this title.
3604-
36055799 "Securities intermediary" - Section 8-102 of this title.
3606-
36075800 "Security" - Section 8-102 of this title.
3608-
36095801 "Security certificate" - Section 8-102 of this title.
3610-
36115802 "Security entitlement" - Section 8-102 of this title.
3612-
36135803 "Uncertificated security" - Section 8-102 of this title.
3614-
36155804 (c) Article 1 of this title contains general definitions and
36165805 principles of construction and interpretation applicable throughout
36175806 this article.
3618-
36195807 SECTION 43. AMENDATORY 12A O.S. 2021, Section 1 -9-104,
36205808 is amended to read as follows:
3621-
36225809 Section 1-9-104.
3623-
36245810 CONTROL OF DEPOSIT ACCOUNT
3625-
3626-
3627- ENR. H. B. NO. 2776 Page 82
36285811 (a) A secured party has control of a deposit account if:
3629-
36305812 (1) the secured party is the bank with which the deposi t
36315813 account is maintained;
5814+
5815+SENATE FLOOR VERSION - HB2776 SFLR Page 114
5816+(Bold face denotes Committee Amendments) 1
5817+2
5818+3
5819+4
5820+5
5821+6
5822+7
5823+8
5824+9
5825+10
5826+11
5827+12
5828+13
5829+14
5830+15
5831+16
5832+17
5833+18
5834+19
5835+20
5836+21
5837+22
5838+23
5839+24
36325840
36335841 (2) the debtor, secured party, and bank have agreed in an
36345842 authenticated a signed record that the bank will
36355843 comply with instructions originated by the secured
36365844 party directing disposition of the funds in the
36375845 deposit account without f urther consent by the debtor;
36385846 or
3639-
36405847 (3) the secured party becomes the bank's customer with
36415848 respect to the deposit account ; or
3642-
36435849 (4) another person, other than the debtor:
3644-
36455850 (A) has control of the deposit account and
36465851 acknowledges that it has control on behalf of t he
36475852 secured party; or
3648-
36495853 (B) obtains control of the deposit account after
36505854 having acknowledged that it will obtain control
36515855 of the deposit account on behalf of the secured
36525856 party.
3653-
36545857 (b) A secured party that has satisfied subsection (a) of this
36555858 section has control, even if the debtor retains the right to direct
36565859 the disposition of funds from the deposit account.
3657-
36585860 SECTION 44. AMENDATORY 12A O.S. 2021, Section 1 -9-105,
36595861 is amended to read as follows:
3660-
36615862 Section 1-9-105.
3662-
36635863 CONTROL OF ELECTRONIC COPY OF RECORD EVIDENCING CHATTEL PAPER
5864+
5865+SENATE FLOOR VERSION - HB2776 SFLR Page 115
5866+(Bold face denotes Committee Amendments) 1
5867+2
5868+3
5869+4
5870+5
5871+6
5872+7
5873+8
5874+9
5875+10
5876+11
5877+12
5878+13
5879+14
5880+15
5881+16
5882+17
5883+18
5884+19
5885+20
5886+21
5887+22
5888+23
5889+24
36645890
36655891 (a) A secured party purchaser has control of an authoritative
36665892 electronic copy of a record evidencing chattel paper if a system
36675893 employed for evidencing the transfer assignment of interests in the
36685894 chattel paper reliably esta blishes the secured party purchaser as
36695895 the person to which the chattel paper authoritative electronic copy
36705896 was assigned.
3671- ENR. H. B. NO. 2776 Page 83
36725897 (b) A system satisfies subsection (a) of this section , and a
36735898 secured party has control of electronic chattel paper, if the record
36745899 or records comprising evidencing the chattel paper are created,
36755900 stored, and assigned in such a manner that:
3676-
36775901 (1) a single authoritative copy of the record or records exists
36785902 which is unique, identifiable and, except as otherwise provided in
36795903 paragraphs (4), (5), and (6) of this section, unalterable;
3680-
36815904 (2) the authoritative copy identifies the secured party
36825905 purchaser as the assignee of the record or records;
3683-
36845906 (3) the authoritative copy is communicated to and maintained by
36855907 the secured party purchaser or its designated custodian;
3686-
36875908 (4) copies or amendments that add or change an identified
36885909 assignee of the authoritative copy can be made only with the consent
36895910 of the secured party purchaser;
3690-
36915911 (5) each copy of the authoritative copy and any copy of a copy
36925912 is readily identifiable as a copy that is not the authoritative
36935913 copy; and
36945914
5915+SENATE FLOOR VERSION - HB2776 SFLR Page 116
5916+(Bold face denotes Committee Amendments) 1
5917+2
5918+3
5919+4
5920+5
5921+6
5922+7
5923+8
5924+9
5925+10
5926+11
5927+12
5928+13
5929+14
5930+15
5931+16
5932+17
5933+18
5934+19
5935+20
5936+21
5937+22
5938+23
5939+24
5940+
36955941 (6) any amendment of the authoritative copy is readily
36965942 identifiable as authorized or unauthorized.
3697-
36985943 (c) A system satisfies subsection (a) of this section, and a
36995944 purchaser has control of an authoritat ive electronic copy of a
37005945 record evidencing chattel paper, if the electronic copy, a record
37015946 attached to or logically associated with the electronic copy, or a
37025947 system in which the electronic copy is recorded:
3703-
37045948 (1) enables the purchaser readily to identify ea ch electronic
37055949 copy as either an authoritative copy or a nonauthoritative copy;
3706-
37075950 (2) enables the purchaser readily to identify itself in any
37085951 way, including by name, identifying number, cryptographic key,
37095952 office, or account number, as the assignee of the aut horitative
37105953 electronic copy; and
3711-
37125954 (3) gives the purchaser exclusive power, subject to subsection
37135955 (d) of this section, to:
3714-
37155956 (A) prevent others from adding or changing an identified
3716-assignee of the authoritative electronic copy; and ENR. H. B. NO. 2776 Page 84
3717-
5957+assignee of the authoritative electronic copy; and
37185958 (B) transfer control of the authoritative electronic copy.
3719-
37205959 (d) Subject to subsection (e) of this section, a power is
37215960 exclusive under subparagraphs (A) and (B) of paragraph 3 of
37225961 subsection (c) of this section even if:
3723-
37245962 (1) the authoritative electronic copy, a record attached to or
37255963 logically associated with the authoritative electronic copy, or a
37265964 system in which the authoritative electronic copy is recorded limits
5965+
5966+SENATE FLOOR VERSION - HB2776 SFLR Page 117
5967+(Bold face denotes Committee Amendments) 1
5968+2
5969+3
5970+4
5971+5
5972+6
5973+7
5974+8
5975+9
5976+10
5977+11
5978+12
5979+13
5980+14
5981+15
5982+16
5983+17
5984+18
5985+19
5986+20
5987+21
5988+22
5989+23
5990+24
5991+
37275992 the use of the authoritative electronic copy or has a protocol
37285993 programmed to cause a change, including a transfer or loss of
37295994 control; or
3730-
37315995 (2) the power is shared with another person.
3732-
37335996 (e) A power of a purchaser is not shared with another person
37345997 under paragraph 2 of subsection (d) of this section and the
37355998 purchaser's power is not exclusive if:
3736-
37375999 (1) the purchaser can exercise th e power only if the powe r also
37386000 is exercised by the other person; and
3739-
37406001 (2) the other person:
3741-
37426002 (A) can exercise the power without exercise of the power
37436003 by the purchaser; or
3744-
37456004 (B) is the transferor to the purchaser of an interest in
37466005 the chattel paper.
3747-
37486006 (f) If a purchaser has the powers specified in subparagraphs
37496007 (A) and (B) of paragraph (3) of subsection (c) of this section, the
37506008 powers are presumed to be exclusive.
3751-
37526009 (g) A purchaser has control of an authoritative electronic copy
37536010 of a record evidencing chattel pap er if another person, ot her than
37546011 the transferor to the purchaser of an interest in the chattel paper:
3755-
37566012 (1) has control of the authoritative electronic copy and
37576013 acknowledges that it has control on behalf of the purchaser; or
37586014
6015+SENATE FLOOR VERSION - HB2776 SFLR Page 118
6016+(Bold face denotes Committee Amendments) 1
6017+2
6018+3
6019+4
6020+5
6021+6
6022+7
6023+8
6024+9
6025+10
6026+11
6027+12
6028+13
6029+14
6030+15
6031+16
6032+17
6033+18
6034+19
6035+20
6036+21
6037+22
6038+23
6039+24
6040+
37596041 (2) obtains control of the auth oritative electronic copy after
37606042 having acknowledged that it will obtain control of the electronic
3761-copy on behalf of the purchaser. ENR. H. B. NO. 2776 Page 85
3762-
6043+copy on behalf of the purchaser.
37636044 SECTION 45. NEW LAW A new section of law to be codified
37646045 in the Oklahoma Statutes as Section 1 -9-107A of Title 12A, unless
37656046 there is created a duplication in numbering, reads as follows:
3766-
37676047 CONTROL OF CONTROLLABLE ELECTRONIC RECORD, CONTROLLABLE ACCOUNT, OR
37686048 CONTROLLABLE PAYMENT INTANGIBLE
3769-
37706049 (a) A secured party has control of a controllable electronic
37716050 record as provided in Section 12 -105 of this title.
3772-
37736051 (b) A secured party has control of a controllable account or
37746052 controllable payment intangible if the secured party has control of
37756053 the controllable electronic record that evidences the controllable
37766054 account or controllable payment intangible .
3777-
37786055 SECTION 46. NEW LAW A new section of law to be codified
37796056 in the Oklahoma Statutes as Section 1 -9-107B of Title 12A, unless
37806057 there is created a duplication in numbering, reads as follows:
3781-
37826058 NO REQUIREMENT TO ACKN OWLEDGE OR CONFIRM; NO DUTIES
3783-
37846059 (a) A person that has control under Section 9 -104 or 9-105 of
37856060 this title is not required to acknowledge that it has control on
37866061 behalf of another person.
3787-
37886062 (b) If a person acknowledges that it has or will obtain control
37896063 on behalf of another person, un less the person otherwise agrees or
37906064 law other than this article otherwise provides, the person does not
6065+
6066+SENATE FLOOR VERSION - HB2776 SFLR Page 119
6067+(Bold face denotes Committee Amendments) 1
6068+2
6069+3
6070+4
6071+5
6072+6
6073+7
6074+8
6075+9
6076+10
6077+11
6078+12
6079+13
6080+14
6081+15
6082+16
6083+17
6084+18
6085+19
6086+20
6087+21
6088+22
6089+23
6090+24
6091+
37916092 owe any duty to the other person and is not required to confirm the
37926093 acknowledgment to any other person.
3793-
37946094 SECTION 47. AMENDATORY 12A O.S. 2021, Section 1 -9-203,
37956095 is amended to read as follows:
3796-
37976096 Section 1-9-203.
3798-
37996097 ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST;
3800-
38016098 PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES
3802-
38036099 (a) A security interest attaches to collateral when it becomes
38046100 enforceable against the debtor with respect to the collateral,
38056101 unless an agreement expressly postpones the time of attachment.
3806- ENR. H. B. NO. 2776 Page 86
38076102 (b) Except as otherwise provided in subsections (c) through (i)
38086103 of this section, a security interest is enforcea ble against the
38096104 debtor and third parties with respect to the collateral only if:
3810-
38116105 (1) value has been given;
3812-
38136106 (2) the debtor has rights in the collateral or the power to
38146107 transfer rights in the collateral to a secured party; and
3815-
38166108 (3) one of the following con ditions is met:
3817-
38186109 (A) the debtor has authenticated signed a security
38196110 agreement that provides a description of the
38206111 collateral and, if the security interest covers timber
38216112 to be cut, a description of the land concerned;
3822-
38236113 (B) the collateral is not a certificated security and is
38246114 in the possession of the secured party under Section
6115+
6116+SENATE FLOOR VERSION - HB2776 SFLR Page 120
6117+(Bold face denotes Committee Amendments) 1
6118+2
6119+3
6120+4
6121+5
6122+6
6123+7
6124+8
6125+9
6126+10
6127+11
6128+12
6129+13
6130+14
6131+15
6132+16
6133+17
6134+18
6135+19
6136+20
6137+21
6138+22
6139+23
6140+24
6141+
38256142 1-9-313 of this title pursuant to the debtor's
38266143 security agreement;
3827-
38286144 (C) the collateral is a certificated security in
38296145 registered form and the security certificate has been
38306146 delivered to the secured party under Sect ion 8-301 of
38316147 this title pursuant to the debtor's security
38326148 agreement; or
3833-
38346149 (D) the collateral is controllable accounts, controllable
38356150 electronic records, controllable payment intangibles,
38366151 deposit accounts, electronic chattel paper documents,
38376152 investment property, or letter-of-credit rights, or
38386153 electronic documents, and the secured party has
38396154 control under Section 7 -106, 1-9-104, 1-9-105, 1-9-
38406155 106, or 1-9-107, or 1-9-107A of this title pursuant to
38416156 the debtor's security agreement ; or
3842-
38436157 (E) the collateral is chattel pa per and the secured party
38446158 has possession and control under Section 1 -9-314A of
38456159 this title pursuant to the debtor's security
38466160 agreement.
3847-
38486161 (c) Subsection (b) of this section is subject to Section 4 -210
38496162 of this title on the security int erest of a collecting bank, Section
38506163 5-118 of this title on the security interest of a letter -of-credit
3851-issuer or nominated person, Section 1-9-110 of this title on a ENR. H. B. NO. 2776 Page 87
6164+issuer or nominated person, Section 1 -9-110 of this title on a
38526165 security interest arising under Article 2 or 2A of this title, and
6166+
6167+SENATE FLOOR VERSION - HB2776 SFLR Page 121
6168+(Bold face denotes Committee Amendments) 1
6169+2
6170+3
6171+4
6172+5
6173+6
6174+7
6175+8
6176+9
6177+10
6178+11
6179+12
6180+13
6181+14
6182+15
6183+16
6184+17
6185+18
6186+19
6187+20
6188+21
6189+22
6190+23
6191+24
6192+
38536193 Section 1-9-206 of this title on security inter ests in investment
38546194 property.
3855-
38566195 (d) A person becomes bound as debtor by a security agreement
38576196 entered into by another person if, by operation of law other than
38586197 this article or by contract:
3859-
38606198 (1) the security agreement becomes effective to create a
38616199 security interest in the person's property; or
3862-
38636200 (2) the person becomes generally obligated for the obligations
38646201 of the other person, including the obligation secured under the
38656202 security agreement, and acquires or succeeds to all or substantially
38666203 all of the assets of the other person.
3867-
38686204 (e) If a new debtor becomes bound as debtor by a security
38696205 agreement entered into by another person:
3870-
38716206 (1) the agreement satisfies paragraph (3) of subsection (b) of
38726207 this section with respect to existing or after -acquired property of
38736208 the new debtor to the extent the property is described in the
38746209 agreement; and
3875-
38766210 (2) another agreement is not necessary to make a security
38776211 interest in the property enforceable.
3878-
38796212 (f) The attachment of a security interest in collateral gives
38806213 the secured party the right s to proceeds provided by Section 1 -9-315
38816214 of this title and is also attachment of a security interest in a
38826215 supporting obligation for the collateral.
38836216
6217+SENATE FLOOR VERSION - HB2776 SFLR Page 122
6218+(Bold face denotes Committee Amendments) 1
6219+2
6220+3
6221+4
6222+5
6223+6
6224+7
6225+8
6226+9
6227+10
6228+11
6229+12
6230+13
6231+14
6232+15
6233+16
6234+17
6235+18
6236+19
6237+20
6238+21
6239+22
6240+23
6241+24
6242+
38846243 (g) The attachment of a security interest in a right to payment
38856244 or performance secured by a security interest or other lien on
38866245 personal or real property is also attachment of a security interest
38876246 in the security interest, mortgage, or other lien.
3888-
38896247 (h) The attachment of a security interest in a securities
38906248 account is also attachment of a s ecurity interest in the security
38916249 entitlements carried in the securities account.
3892-
38936250 (i) The attachment of a security interest in a commodity
38946251 account is also attachment of a security interest in the commodity
38956252 contracts carried in the commodity account.
3896- ENR. H. B. NO. 2776 Page 88
38976253 SECTION 48. AMENDATORY 12A O.S. 2021, Section 1 -9-204,
38986254 is amended to read as follows:
3899-
39006255 Section 1-9-204.
3901-
39026256 AFTER-ACQUIRED PROPERTY; FUTURE ADVANCES
3903-
39046257 (a) Except as otherwise provided in subsection (b) of this
39056258 section, a security agreement may create or provide for a security
39066259 interest in after-acquired collateral.
3907-
39086260 (b) A Subject to subsection (d) of this section, a security
39096261 interest does not attach under a term constituting an after -acquired
39106262 property clause to:
3911-
39126263 (1) consumer goods, other than a n accession when given as
39136264 additional security, unless the debtor acquires rights in them
39146265 within ten (10) days after the secured party gives value; or
3915-
39166266 (2) a commercial tort claim.
6267+
6268+SENATE FLOOR VERSION - HB2776 SFLR Page 123
6269+(Bold face denotes Committee Amendments) 1
6270+2
6271+3
6272+4
6273+5
6274+6
6275+7
6276+8
6277+9
6278+10
6279+11
6280+12
6281+13
6282+14
6283+15
6284+16
6285+17
6286+18
6287+19
6288+20
6289+21
6290+22
6291+23
6292+24
39176293
39186294 (c) A security agreement may provide that collateral secures,
39196295 or that accounts, chattel paper, paym ent intangibles, or promissory
39206296 notes are sold in connection with, future advances or other value,
39216297 whether or not the advances or value are given pursuant to
39226298 commitment.
3923-
39246299 (d) Subsection (b) of this section does not prevent a security
39256300 interest from attaching:
3926-
39276301 (1) to consumer goods as proceeds under subsection (a) of
39286302 Section 1-9-315 of this title or commingled goods under subsection
39296303 (c) of Section 1-9-336 of this title;
3930-
39316304 (2) to a commercial tort claim as proceeds under subsection (a)
39326305 of Section 1-9-315 of this title; or
3933-
39346306 (3) under an after-acquired property clause to property that is
39356307 proceeds of consumer goods or a commercial tort claim.
3936-
39376308 SECTION 49. AMENDATORY 12A O.S. 2021, Section 1 -9-207,
39386309 is amended to read a s follows:
3939-
39406310 Section 1-9-207.
3941- ENR. H. B. NO. 2776 Page 89
39426311 RIGHTS AND DUTIES OF SECURED PARTY
3943-
39446312 HAVING POSSESSION OR CONTROL OF COLLATERAL
3945-
39466313 (a) Except as otherwise provided in subsection (d) of this
39476314 section, a secured party shall use reasonable care in the custody
39486315 and preservation of coll ateral in the secured pa rty's possession.
39496316 In the case of chattel paper or an instrument, reasonable care
6317+
6318+SENATE FLOOR VERSION - HB2776 SFLR Page 124
6319+(Bold face denotes Committee Amendments) 1
6320+2
6321+3
6322+4
6323+5
6324+6
6325+7
6326+8
6327+9
6328+10
6329+11
6330+12
6331+13
6332+14
6333+15
6334+16
6335+17
6336+18
6337+19
6338+20
6339+21
6340+22
6341+23
6342+24
6343+
39506344 includes taking necessary steps to preserve rights against prior
39516345 parties unless otherwise agreed.
3952-
39536346 (b) Except as otherwise provided in subsection (d) of this
39546347 section, if a secured party has possession of collateral:
3955-
39566348 (1) reasonable expenses, including the cost of insurance and
39576349 payment of taxes or other charges, incurred in the custody,
39586350 preservation, use, or operation of the collateral are chargeable to
39596351 the debtor and are secur ed by the collateral;
3960-
39616352 (2) the risk of accidental loss or damage is on the debtor to
39626353 the extent of a deficiency in any effective insurance coverage;
3963-
39646354 (3) the secured party shall keep the collateral identifiable,
39656355 but fungible collate ral may be commingled; and
3966-
39676356 (4) the secured party may use or operate the collateral:
3968-
39696357 (A) for the purpose of preserving the collateral or its
39706358 value;
3971-
39726359 (B) as permitted by an order of a court having competent
39736360 jurisdiction; or
3974-
39756361 (C) except in the case of consumer goods, in the manner
39766362 and to the extent agreed by the debtor.
3977-
39786363 (c) Except as otherwise provided in subsection (d) of this
39796364 section, a secured party having possession of collateral or control
39806365 of collateral under Section 7 -106, 1-9-104, 1-9-105, 1-9-106, or 1-
39816366 9-107, or 1-9-107A of this title:
39826367
6368+SENATE FLOOR VERSION - HB2776 SFLR Page 125
6369+(Bold face denotes Committee Amendments) 1
6370+2
6371+3
6372+4
6373+5
6374+6
6375+7
6376+8
6377+9
6378+10
6379+11
6380+12
6381+13
6382+14
6383+15
6384+16
6385+17
6386+18
6387+19
6388+20
6389+21
6390+22
6391+23
6392+24
6393+
39836394 (1) may hold as additional security any proceeds, except money
39846395 or funds, received from the collateral;
3985- ENR. H. B. NO. 2776 Page 90
39866396 (2) shall apply money or funds received from the collateral to
39876397 reduce the secured obligation, unless remitted to the debtor; and
3988-
39896398 (3) may create a security interest in the collateral.
3990-
39916399 (d) If the secured party is a buyer of accounts, chattel paper,
39926400 payment intangibles, or promissory notes or a consignor:
3993-
39946401 (1) subsection (a) of this section does not apply unless the
39956402 secured party is entitled under an agreement:
3996-
39976403 (A) to charge back uncollected collateral; or
3998-
39996404 (B) otherwise to full or limited recourse against the
40006405 debtor or a secondary obligor based on the nonpayment
40016406 or other default of an account debtor or other obligor
40026407 on the collateral; and
4003-
40046408 (2) subsections (b) and (c) of this section do not apply.
4005-
40066409 SECTION 50. AMENDATORY 12A O.S. 2021, Section 1 -9-208,
40076410 is amended to read as follows:
4008-
40096411 Section 1-9-208.
4010-
40116412 ADDITIONAL DUTIES OF SECURED PARTY
4012-
40136413 HAVING CONTROL OF COLLATERAL
4014-
40156414 (a) This section applies to cases in which there is no
40166415 outstanding secured obligation and the secured party is not
40176416 committed to make advances, incur obligations, or otherwise give
40186417 value.
40196418
6419+SENATE FLOOR VERSION - HB2776 SFLR Page 126
6420+(Bold face denotes Committee Amendments) 1
6421+2
6422+3
6423+4
6424+5
6425+6
6426+7
6427+8
6428+9
6429+10
6430+11
6431+12
6432+13
6433+14
6434+15
6435+16
6436+17
6437+18
6438+19
6439+20
6440+21
6441+22
6442+23
6443+24
6444+
40206445 (b) Within ten (10) days after receiving an authenticated a
40216446 signed demand by the debtor:
4022-
40236447 (1) a secured party having control of a deposit account under
40246448 paragraph (2) of subsection (a) of Section 1 -9-104 of this title
40256449 shall send to the bank with which the deposit account is maintained
40266450 an authenticated statemen t a signed record that releases the bank
40276451 from any further obligation to comply with instructions originated
40286452 by the secured party;
4029- ENR. H. B. NO. 2776 Page 91
40306453 (2) a secured party having control of a deposit account under
40316454 paragraph (3) of subsection (a) of Section 1 -9-104 of this title
40326455 shall:
4033-
40346456 (A) pay the debtor the balance on deposit in the deposit
40356457 account; or
4036-
40376458 (B) transfer the balance on deposit into a deposit account
40386459 in the debtor's name;
4039-
40406460 (3) a secured party, other than a buyer, having control of
40416461 electronic chattel paper under Section 1-9-105 of this title shall:
4042-
40436462 (A) communicate the of an authoritative electronic copy of
40446463 the electronic a record evidencing chattel paper to
40456464 the debtor or its designated custodian;
4046-
40476465 (B) if the debtor designates a custodian that is the
40486466 designated custodian with which the authorita tive copy
40496467 of the electronic chattel paper is maintained for the
40506468 secured party, communicate to the custodian an
6469+
6470+SENATE FLOOR VERSION - HB2776 SFLR Page 127
6471+(Bold face denotes Committee Amendments) 1
6472+2
6473+3
6474+4
6475+5
6476+6
6477+7
6478+8
6479+9
6480+10
6481+11
6482+12
6483+13
6484+14
6485+15
6486+16
6487+17
6488+18
6489+19
6490+20
6491+21
6492+22
6493+23
6494+24
6495+
40516496 authenticated record releasing the designated
40526497 custodian from any further obligation to comply with
40536498 instructions originate d by the secured party and
40546499 instructing the custodian to comply with instructions
40556500 originated by the debtor; and
4056-
40576501 (C) take appropriate action to enable the debtor or its
40586502 designated custodian to make copies of or revisions to
40596503 the authoritative copy which add o r change an
40606504 identified assignee of the authoritative copy without
40616505 the consent of the secured party shall transfer
40626506 control of the electronic copy to the debtor or a
40636507 person designated by the debtor ;
4064-
40656508 (4) a secured party having control of investment property under
40666509 paragraph (2) of subsection (d) of Section 8 -106 of this title or
40676510 subsection (b) of Section 1 -9-106 of this title shall send to the
40686511 securities intermediary or commodity intermediary with which the
40696512 security entitlement or commodity contract is maintai ned an
40706513 authenticated a signed record that releases the securities
40716514 intermediary or commodity intermediary from any further obligation
40726515 to comply with entitlement orders or directions originated by the
40736516 secured party;
4074- ENR. H. B. NO. 2776 Page 92
40756517 (5) a secured party having control of a l etter-of-credit right
40766518 under Section 1-9-107 of this title shall send to each person having
40776519 an unfulfilled obligation to pay or deliver proceeds of the letter
6520+
6521+SENATE FLOOR VERSION - HB2776 SFLR Page 128
6522+(Bold face denotes Committee Amendments) 1
6523+2
6524+3
6525+4
6526+5
6527+6
6528+7
6529+8
6530+9
6531+10
6532+11
6533+12
6534+13
6535+14
6536+15
6537+16
6538+17
6539+18
6540+19
6541+20
6542+21
6543+22
6544+23
6545+24
6546+
40786547 of credit to the secured party an authenticated a signed release
40796548 from any further obligation to pa y or deliver proceeds of the letter
40806549 of credit to the secured party; and
4081-
40826550 (6) a secured party having control under Section 7-106 of this
40836551 title of an authoritative electronic copy of an electronic document
40846552 shall:
4085-
40866553 (A) give control of the electronic document t o the debtor
40876554 or its designated custodian;
4088-
40896555 (B) if the debtor designates a custodian that is the
40906556 designated custodian with which the authoritative copy
40916557 of the electronic document is maintained for the
40926558 secured party, communicate to the custodian an
40936559 authenticated record releasing the designated
40946560 custodian from any further obligation to comply with
40956561 instructions originated by the secured party and
40966562 instructing the custodian to comply with instructions
40976563 originated by the debtor; and
4098-
40996564 (C) take appropriate action to ena ble the debtor or its
41006565 designated custodian to make copies of or revisions to
41016566 the authoritative copy which add or change an
41026567 identified assignee of the authoritative copy without
41036568 the consent of the secured party transfer control of
41046569 the electronic copy to the debtor or a person
41056570 designated by the debtor; and
41066571
6572+SENATE FLOOR VERSION - HB2776 SFLR Page 129
6573+(Bold face denotes Committee Amendments) 1
6574+2
6575+3
6576+4
6577+5
6578+6
6579+7
6580+8
6581+9
6582+10
6583+11
6584+12
6585+13
6586+14
6587+15
6588+16
6589+17
6590+18
6591+19
6592+20
6593+21
6594+22
6595+23
6596+24
6597+
41076598 (7) a secured party having control under Section 12 -105 of this
41086599 title of a controllable electronic record, other than a buyer of a
41096600 controllable account or controllable payment intangible evidenced by
41106601 the controllable electronic record, shall transfer control of the
41116602 controllable electronic record to the debtor or a person designated
41126603 by the debtor.
4113-
41146604 SECTION 51. AMENDATORY 12A O.S. 2021, Section 1 -9-209,
41156605 is amended to read as follows:
4116-
41176606 Section 1-9-209.
4118-
4119-DUTIES OF SECURED PARTY IF ACCOUNT ENR. H. B. NO. 2776 Page 93
4120-
6607+DUTIES OF SECURED PARTY IF ACCOUNT
41216608 DEBTOR HAS BEEN NOTIFIED OF ASSIGNMENT
4122-
41236609 (a) Except as otherwise provided in subsection (c) of this
41246610 section, this section applies if:
4125-
41266611 (1) there is no outstanding secured obligation; and
4127-
41286612 (2) the secured party is not committed to make advances, incur
41296613 obligations, or otherwise give value.
4130-
41316614 (b) Within ten (10) days after receiving an authenticated a
41326615 signed demand by the debtor, a secured party shall send to an
41336616 account debtor that has received notification under subsection (a)
41346617 of Section 1-9-406 of this title or subsection (b) of Section 12 -106
41356618 of this title of an assignment to the secured party as assignee
41366619 under subsection (a) of Section 1 -9-406 of this title an
41376620 authenticated a signed record that releases the a ccount debtor from
41386621 any further obligation to the secured party.
41396622
6623+SENATE FLOOR VERSION - HB2776 SFLR Page 130
6624+(Bold face denotes Committee Amendments) 1
6625+2
6626+3
6627+4
6628+5
6629+6
6630+7
6631+8
6632+9
6633+10
6634+11
6635+12
6636+13
6637+14
6638+15
6639+16
6640+17
6641+18
6642+19
6643+20
6644+21
6645+22
6646+23
6647+24
6648+
41406649 (c) This section does not apply to an assignment constituting
41416650 the sale of an account, chattel paper, or payment intangible.
4142-
41436651 SECTION 52. AMENDATORY 12A O.S. 2021, Sect ion 1-9-210,
41446652 is amended to read as follows:
4145-
41466653 Section 1-9-210.
4147-
41486654 REQUEST FOR ACCOUNTING; REQUEST REGARDING
4149-
41506655 LIST OF COLLATERAL OR STATEMENT OF ACCOUNT
4151-
41526656 (a) In this section:
4153-
41546657 (1) "Request" means a record of a type described in paragraph
41556658 (2), (3), or (4) of this subsection.
4156-
41576659 (2) "Request for an accounting" means a record authenticated
41586660 signed by a debtor requesting that the recipient provide an
41596661 accounting of the unpaid obligations secured by collateral and
41606662 reasonably identifying the transaction or relationship that is the
41616663 subject of the request.
4162-
41636664 (3) "Request regarding a list of collateral" means a record
4164-authenticated signed by a debtor requesting that the recipient ENR. H. B. NO. 2776 Page 94
6665+authenticated signed by a debtor requesting that the recipient
41656666 approve or correct a list of what the debtor believes to be the
41666667 collateral securing an obligation an d reasonably identifying the
41676668 transaction or relationship that is the subject of the request.
4168-
41696669 (4) "Request regarding a statement of account" means a record
41706670 authenticated signed by a debtor requesting that the recipient
41716671 approve or correct a statement indica ting what the debtor bel ieves
41726672 to be the aggregate amount of unpaid obligations secured by
6673+
6674+SENATE FLOOR VERSION - HB2776 SFLR Page 131
6675+(Bold face denotes Committee Amendments) 1
6676+2
6677+3
6678+4
6679+5
6680+6
6681+7
6682+8
6683+9
6684+10
6685+11
6686+12
6687+13
6688+14
6689+15
6690+16
6691+17
6692+18
6693+19
6694+20
6695+21
6696+22
6697+23
6698+24
6699+
41736700 collateral as of a specified date and reasonably identifying the
41746701 transaction or relationship that is the subject of the request.
4175-
41766702 (b) Subject to subsections (c), (d), (e), and (f) of this
41776703 section, a secured party, other than a buyer of accounts, chattel
41786704 paper, payment intangibles, or promissory notes or a consignor,
41796705 shall comply with a request within fourteen (14) days after receipt:
4180-
41816706 (1) in the case of a request for a n accounting, by
41826707 authenticating signing and sending to the debtor an accounting; and
4183-
41846708 (2) in the case of a request regarding a list of collateral or
41856709 a request regarding a statement of account, by authenticating
41866710 signing and sending to the debtor an approval or correction.
4187-
41886711 (c) A secured party that claims a security interest in all of a
41896712 particular type of collateral owned by the debtor may comply with a
41906713 request regarding a list of collateral by sending to the debtor an
41916714 authenticated a signed record including a statement to that effe ct
41926715 within fourteen (14) days after receipt.
4193-
41946716 (d) A person that receives a request regarding a list of
41956717 collateral, claims no interest in the collateral when it receives
41966718 the request, and claimed an interest in the collateral at an ear lier
41976719 time shall comply with the request within fourteen (14) days after
41986720 receipt by sending to the debtor an authenticated a signed record:
4199-
42006721 (1) disclaiming any interest in the collateral; and
6722+
6723+SENATE FLOOR VERSION - HB2776 SFLR Page 132
6724+(Bold face denotes Committee Amendments) 1
6725+2
6726+3
6727+4
6728+5
6729+6
6730+7
6731+8
6732+9
6733+10
6734+11
6735+12
6736+13
6737+14
6738+15
6739+16
6740+17
6741+18
6742+19
6743+20
6744+21
6745+22
6746+23
6747+24
42016748
42026749 (2) if known to the recipient, providing the name and mailing
42036750 address of any assignee o f or successor to the recipient's interest
42046751 in the collateral.
4205-
42066752 (e) A person that receives a request for an accounting or a
42076753 request regarding a statement of account, claims no interest in the
42086754 obligations when it receives the request, and claimed an interest in
4209-the obligations at an earlier time shall comply with the request ENR. H. B. NO. 2776 Page 95
6755+the obligations at an earlier time shall comply with the request
42106756 within fourteen (14) days after receipt by sending to the debtor an
42116757 authenticated a signed record:
4212-
42136758 (1) disclaiming any interest in the obligations; and
4214-
42156759 (2) if known to the recipient, pr oviding the name and mailing
42166760 address of any assignee of or successor to the recipient's interest
42176761 in the obligations.
4218-
42196762 (f) A debtor is entitled without charge to one response to a
42206763 request under this section during any six -month period. The secured
42216764 party may require payment of a charge not exceeding Twenty -five
42226765 Dollars ($25.00) for each additional response.
4223-
42246766 SECTION 53. AMENDATORY 12A O.S. 2021, Section 1 -9-301,
42256767 is amended to read as follows:
4226-
42276768 Section 1-9-301.
4228-
42296769 LAW GOVERNING PERFECTION AND
4230-
42316770 PRIORITY OF SECURITY INTERESTS
4232-
42336771 Except as otherwise provided in Sections 1 -9-303 through 1-9-306
42346772 1-9-306B of this title, the following rules determine the law
6773+
6774+SENATE FLOOR VERSION - HB2776 SFLR Page 133
6775+(Bold face denotes Committee Amendments) 1
6776+2
6777+3
6778+4
6779+5
6780+6
6781+7
6782+8
6783+9
6784+10
6785+11
6786+12
6787+13
6788+14
6789+15
6790+16
6791+17
6792+18
6793+19
6794+20
6795+21
6796+22
6797+23
6798+24
6799+
42356800 governing perfection, the effect of perfection or nonperfection, and
42366801 the priority of a security interest in collateral:
4237-
42386802 (1) Except as otherwise provided in this section, while a
42396803 debtor is located in a jurisdiction, the local law of that
42406804 jurisdiction governs perfection, the effect of perfection or
42416805 nonperfection, and the prio rity of a security inter est in
42426806 collateral.
4243-
42446807 (2) While collateral is located in a jurisdiction, the local
42456808 law of that jurisdiction governs perfection, the effect of
42466809 perfection or nonperfection, and the priority of a possessory
42476810 security interest in that coll ateral.
4248-
42496811 (3) Except as otherwise provided in paragraph (4) of this
42506812 section, while tangible negotiable tangible documents, goods,
42516813 instruments, or money, or tangible chattel paper is are located in a
42526814 jurisdiction, the local law of that jurisdiction governs:
4253- ENR. H. B. NO. 2776 Page 96
42546815 (A) perfection of a security interest in the goods by
42556816 filing a fixture filing;
4256-
42576817 (B) perfection of a security interest in timber to be cut;
42586818 and
4259-
42606819 (C) the effect of perfection or nonperfection and the
42616820 priority of a nonpossessory security interest in the
42626821 collateral.
4263-
42646822 (4) The local law of the jurisdiction in which the wellhead or
42656823 minehead is located governs perfection, the effect of perfection or
6824+
6825+SENATE FLOOR VERSION - HB2776 SFLR Page 134
6826+(Bold face denotes Committee Amendments) 1
6827+2
6828+3
6829+4
6830+5
6831+6
6832+7
6833+8
6834+9
6835+10
6836+11
6837+12
6838+13
6839+14
6840+15
6841+16
6842+17
6843+18
6844+19
6845+20
6846+21
6847+22
6848+23
6849+24
6850+
42666851 nonperfection, and the priority of a security interest in as -
42676852 extracted collateral.
4268-
42696853 SECTION 54. AMENDATORY 12A O.S. 202 1, Section 1-9-304,
42706854 is amended to read as follows:
4271-
42726855 Section 1-9-304.
4273-
42746856 LAW GOVERNING PERFECTION AND PRIORITY OF
4275-
42766857 SECURITY INTERESTS IN DEPOSIT ACCOUNTS
4277-
42786858 (a) The local law of a bank's jurisdiction governs perfection,
42796859 the effect of perfec tion or nonperfection, and the priority of a
42806860 security interest in a deposit account maintained with that bank
42816861 even if the transaction does not bear any relation to the bank's
42826862 jurisdiction.
4283-
42846863 (b) The following rules determine a bank's jurisdiction for
42856864 purposes of this part:
4286-
42876865 (1) If an agreement between the bank and its customer governing
42886866 the deposit account expressly provides that a particular
42896867 jurisdiction is the bank's jurisdiction for purposes of this part,
42906868 this article, or the Uniform Commercial Code, that jurisdiction is
42916869 the bank's jurisdiction.
4292-
42936870 (2) If paragraph (1) of this subsection does not apply and an
42946871 agreement between the bank and its customer governing the deposit
42956872 account expressly provides that the agreement is governed by the law
42966873 of a particular jurisdiction, that juris diction is the bank's
42976874 jurisdiction.
4298- ENR. H. B. NO. 2776 Page 97
6875+
6876+SENATE FLOOR VERSION - HB2776 SFLR Page 135
6877+(Bold face denotes Committee Amendments) 1
6878+2
6879+3
6880+4
6881+5
6882+6
6883+7
6884+8
6885+9
6886+10
6887+11
6888+12
6889+13
6890+14
6891+15
6892+16
6893+17
6894+18
6895+19
6896+20
6897+21
6898+22
6899+23
6900+24
6901+
42996902 (3) If neither paragraph (1) nor paragraph (2) of this
43006903 subsection applies and an agreement between the bank and its
43016904 customer governing the deposit account expressly provides that the
43026905 deposit account is maintained at an office in a particular
43036906 jurisdiction, that jurisdiction is the bank's jurisdiction.
4304-
43056907 (4) If none of the preceding paragraphs of this subsection
43066908 applies, the bank's jurisdiction is the jurisdiction in which the
43076909 office identified in an account statement as th e office serving the
43086910 customer's account is located.
4309-
43106911 (5) If none of the preceding paragraphs applies, the bank's
43116912 jurisdiction is the jurisdiction in which the chief executive office
43126913 of the bank is located.
4313-
43146914 SECTION 55. AMENDATORY 12A O.S. 2021, Section 1 -9-305,
43156915 is amended to read as follows:
4316-
43176916 Section 1-9-305.
4318-
43196917 LAW GOVERNING PERFECTION AND PRIORITY
4320-
43216918 OF SECURITY INTERESTS IN INVESTMENT PROPERTY
4322-
43236919 (a) Except as otherwise provided in subsection (c) of this
43246920 section, the following rules apply:
4325-
43266921 (1) While a security certificate is located in a jurisdiction,
43276922 the local law of that jurisdiction governs perfection, the effect of
43286923 perfection or nonperfection, and the priority of a security interest
43296924 in the certificated security represented thereby.
43306925
6926+SENATE FLOOR VERSION - HB2776 SFLR Page 136
6927+(Bold face denotes Committee Amendments) 1
6928+2
6929+3
6930+4
6931+5
6932+6
6933+7
6934+8
6935+9
6936+10
6937+11
6938+12
6939+13
6940+14
6941+15
6942+16
6943+17
6944+18
6945+19
6946+20
6947+21
6948+22
6949+23
6950+24
6951+
43316952 (2) The local law of the issuer's jurisdiction as specified in
43326953 subsection (d) of Section 8 -110 of this title governs perfection,
43336954 the effect of perfection or nonperfection, and the priority of a
43346955 security interest in an uncertificated s ecurity.
4335-
43366956 (3) The local law of the securities intermediary's jurisdiction
43376957 as specified in subsection (e) of Section 8 -110 of this title
43386958 governs perfection, the effect of perfection or nonperfection, and
43396959 the priority of a security interest in a security ent itlement or
43406960 securities account.
4341-
43426961 (4) The local law of the commodity intermediary's jurisdiction
4343-governs perfection, the effect of perfection or nonperfection, and ENR. H. B. NO. 2776 Page 98
6962+governs perfection, the effect of perfection or nonperfection, and
43446963 the priority of a security interest in a commodity contract or
43456964 commodity account.
4346-
43476965 (5) Paragraphs (2), (3), and (4) o f this subsection apply even
43486966 if the transaction does not bear any relation to the jurisdiction.
4349-
43506967 (b) The following rules determine a commodity intermediary's
43516968 jurisdiction for purposes of this part:
4352-
43536969 (1) If an agreement between the c ommodity intermediary and
43546970 commodity customer governing the commodity account expressly
43556971 provides that a particular jurisdiction is the commodity
43566972 intermediary's jurisdiction for purposes of this part, this article,
43576973 or this title, that jurisdiction is the com modity intermediary's
43586974 jurisdiction.
43596975
6976+SENATE FLOOR VERSION - HB2776 SFLR Page 137
6977+(Bold face denotes Committee Amendments) 1
6978+2
6979+3
6980+4
6981+5
6982+6
6983+7
6984+8
6985+9
6986+10
6987+11
6988+12
6989+13
6990+14
6991+15
6992+16
6993+17
6994+18
6995+19
6996+20
6997+21
6998+22
6999+23
7000+24
7001+
43607002 (2) If paragraph (1) of this subsection does not apply and an
43617003 agreement between the commodity intermediary and commodity customer
43627004 governing the commodity account expressly provides that the
43637005 agreement is governed by the law of a particular jurisdiction, that
43647006 jurisdiction is the commodity intermediary's jurisdiction.
4365-
43667007 (3) If neither paragraph (1) nor paragraph (2) of this
43677008 subsection applies and an agreement between the commodity
43687009 intermediary and commodity customer governin g the commodity account
43697010 expressly provides that the commodity account is maintained at an
43707011 office in a particular jurisdiction, that jurisdiction is the
43717012 commodity intermediary's jurisdiction.
4372-
43737013 (4) If none of the preceding paragraphs of this section
43747014 applies, the commodity intermediary's jurisdiction is the
43757015 jurisdiction in which the office identified in an account statement
43767016 as the office serving the commodity customer's account is located.
4377-
43787017 (5) If none of the preceding paragraphs of this section
43797018 applies, the commodity intermediary's jurisdiction is the
43807019 jurisdiction in which the chief executive office of the commodity
43817020 intermediary is located.
4382-
43837021 (c) The local law of the jurisdiction in which the debtor is
43847022 located governs:
4385-
43867023 (1) perfection of a security interest in investment property by
43877024 filing;
4388- ENR. H. B. NO. 2776 Page 99
7025+
7026+SENATE FLOOR VERSION - HB2776 SFLR Page 138
7027+(Bold face denotes Committee Amendments) 1
7028+2
7029+3
7030+4
7031+5
7032+6
7033+7
7034+8
7035+9
7036+10
7037+11
7038+12
7039+13
7040+14
7041+15
7042+16
7043+17
7044+18
7045+19
7046+20
7047+21
7048+22
7049+23
7050+24
7051+
43897052 (2) automatic perfection of a security interest in investment
43907053 property created by a broker or securities intermediary; and
4391-
43927054 (3) automatic perfection of a security interest in a commodity
43937055 contract or commodity account created by a commodity intermed iary.
4394-
43957056 SECTION 56. NEW LAW A new section of law to be codified
43967057 in the Oklahoma Statutes as Section 1 -9-306A of Title 12A, unless
43977058 there is created a duplication in numbering, reads as follows:
4398-
43997059 LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN
44007060 CHATTEL PAPER
4401-
44027061 (a) Except as provided in subsection (d) of this section, if
44037062 chattel paper is evidenced only by an authoritative electronic copy
44047063 of the chattel paper or is evidenced by an authoritative electronic
44057064 copy and an authoritati ve tangible copy, the local law of the
44067065 chattel paper's jurisdiction governs perfection, the effect of
44077066 perfection or nonperfection, and the priority of a security interest
44087067 in the chattel paper, even if the transaction does not bear a ny
44097068 relation to the chattel paper's jurisdiction.
4410-
44117069 (b) The following rules determine the chattel paper's
44127070 jurisdiction under this section:
4413-
44147071 (1) If the authoritative electronic copy of the record
44157072 evidencing chattel paper, or a record attached to or logically
44167073 associated with the elec tronic copy and readily available for
44177074 review, expressly provides that a particular jurisdiction is the
44187075 chattel paper's jurisdiction for purposes of this part, this
7076+
7077+SENATE FLOOR VERSION - HB2776 SFLR Page 139
7078+(Bold face denotes Committee Amendments) 1
7079+2
7080+3
7081+4
7082+5
7083+6
7084+7
7085+8
7086+9
7087+10
7088+11
7089+12
7090+13
7091+14
7092+15
7093+16
7094+17
7095+18
7096+19
7097+20
7098+21
7099+22
7100+23
7101+24
7102+
44197103 article, or the Uniform Commercial Code, that jurisdiction is the
44207104 chattel paper's jurisdiction.
4421-
44227105 (2) If paragraph (1) of this subsection does not apply and the
44237106 rules of the system in which the authoritative electronic copy is
44247107 recorded are readily available for review and expressly provide that
44257108 a particular jurisdiction is the chattel paper's juri sdiction for
44267109 purposes of this part, this article, or the Uniform Commercial Code,
44277110 that jurisdiction is the chattel paper's jurisdiction.
4428-
44297111 (3) If paragraphs (1) and (2) of this subsection do not apply
44307112 and the authoritative electronic copy, or a record attached to or
44317113 logically associated with the electronic copy and readily available
4432-for review, expressly provides that the chattel pape r is governed by ENR. H. B. NO. 2776 Page 100
7114+for review, expressly provides that the chattel paper is governed by
44337115 the law of a particular jurisdiction, that jurisdiction is the
44347116 chattel paper's jurisd iction.
4435-
44367117 (4) If paragraphs (1), (2), and (3) of this subsection do not
44377118 apply and the rules of the system in which the authoritative
44387119 electronic copy is recorded are readily available for review and
44397120 expressly provide that the chattel paper or the system is g overned
44407121 by the law of a particular jurisdiction, that jurisdiction is the
44417122 chattel paper's jurisdiction.
4442-
44437123 (5) If paragraphs (1) through (4) of this subsection do not
44447124 apply, the chattel paper's jurisdiction is the jurisdiction in which
44457125 the debtor is located.
7126+
7127+SENATE FLOOR VERSION - HB2776 SFLR Page 140
7128+(Bold face denotes Committee Amendments) 1
7129+2
7130+3
7131+4
7132+5
7133+6
7134+7
7135+8
7136+9
7137+10
7138+11
7139+12
7140+13
7141+14
7142+15
7143+16
7144+17
7145+18
7146+19
7147+20
7148+21
7149+22
7150+23
7151+24
44467152
44477153 (c) If an authoritativ e tangible copy of a record evidences
44487154 chattel paper and the chattel paper is not evidenced by an
44497155 authoritative electronic copy, while the authoritative tangible copy
44507156 of the record evidencing chattel paper is located in a jurisdictio n,
44517157 the local law of that jurisdiction governs:
4452-
44537158 (1) perfection of a security interest in the chattel paper by
44547159 possession under Section 9 -314A of this title; and
4455-
44567160 (2) the effect of perfection or nonperfection and the priority
44577161 of a security interest in the c hattel paper.
4458-
44597162 (d) The local law of the jurisdiction in which the debtor is
44607163 located governs perfection of a security interest in chattel paper
44617164 by filing.
4462-
44637165 SECTION 57. NEW LAW A new section of law to be codified
44647166 in the Oklahoma Statute s as Section 1-9-306B of Title 12A, unless
44657167 there is created a duplication in numbering, reads as follows:
4466-
44677168 LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN
44687169 CONTROLLABLE ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, AND
44697170 CONTROLLABLE PAYMENT INTANG IBLES
4470-
44717171 (a) Except as provided in subsection (b) of this section, the
44727172 local law of the controllable electronic record's jurisdiction
44737173 specified in subsections (c) and (d) of Section 12 -107 of this title
44747174 governs perfection, the effect of perfection or nonperf ection, and
44757175 the priority of a security interest in a controllable electronic
4476-record and a security interest in a controllable account or ENR. H. B. NO. 2776 Page 101
7176+record and a security interest in a controllable account or
7177+
7178+SENATE FLOOR VERSION - HB2776 SFLR Page 141
7179+(Bold face denotes Committee Amendments) 1
7180+2
7181+3
7182+4
7183+5
7184+6
7185+7
7186+8
7187+9
7188+10
7189+11
7190+12
7191+13
7192+14
7193+15
7194+16
7195+17
7196+18
7197+19
7198+20
7199+21
7200+22
7201+23
7202+24
7203+
44777204 controllable payment intangible evidenced by the controllable
44787205 electronic record.
4479-
44807206 (b) The local law of the jurisdiction in which the debtor is
44817207 located governs:
4482-
44837208 (1) perfection of a security interest in a controllable
44847209 account, controllable electronic record, or controllable payment
44857210 intangible by filing; and
4486-
44877211 (2) automatic perfection of a security interest in a
44887212 controllable payment intangible created by a sale of the
44897213 controllable payment intangible.
4490-
44917214 SECTION 58. AMENDATORY 12A O.S. 2021, Section 1 -9-310,
44927215 is amended to read as follows:
4493-
44947216 Section 1-9-310.
4495-
44967217 WHEN FILING REQUIRED TO PERFECT SECURITY INTEREST O R
4497-
44987218 AGRICULTURAL LIEN; SEC URITY INTERESTS AND AGRICULTURAL
4499-
45007219 LIENS TO WHICH FILING PROVISIONS DO NOT APPLY
4501-
45027220 (a) Except as otherwise provided in subsection (b) of this
45037221 section and Section 1 -9-312 of this title, a financing statement
45047222 must be filed to perfect all security interests and agricultural
45057223 liens.
4506-
45077224 (b) The filing of a financing statement is not necessary to
45087225 perfect a security interest:
4509-
45107226 (1) that is perfected under subsection (d), (e), (f), or (g) of
45117227 Section 1-9-308 of this title;
45127228
7229+SENATE FLOOR VERSION - HB2776 SFLR Page 142
7230+(Bold face denotes Committee Amendments) 1
7231+2
7232+3
7233+4
7234+5
7235+6
7236+7
7237+8
7238+9
7239+10
7240+11
7241+12
7242+13
7243+14
7244+15
7245+16
7246+17
7247+18
7248+19
7249+20
7250+21
7251+22
7252+23
7253+24
7254+
45137255 (2) that is perfected und er Section 1-9-309 of this title when
45147256 it attaches;
4515-
45167257 (3) in property subject to a statute, regulation, or treaty
45177258 described in subsection (a) of Section 1 -9-311 of this title;
4518-
45197259 (4) in goods in possession of a bailee which is perfected under
45207260 paragraph (1) or (2) of subsection (d) of Section 1 -9-312 of this
4521-title; ENR. H. B. NO. 2776 Page 102
4522-
7261+title;
45237262 (5) in certificated securities, documents, goods, or
45247263 instruments which is perfected without filing, control, or
45257264 possession under subsection (e), (f), or (g) of Section 1 -9-312 of
45267265 this title;
4527-
45287266 (6) in collateral in the secure d party's possession under
45297267 Section 1-9-313 of this title;
4530-
45317268 (7) in a certificated security which is perfected by delivery
45327269 of the security certificate to the secured party under Section 1 -9-
45337270 313 of this title;
4534-
45357271 (8) in controllable accounts, controllable electronic records,
45367272 controllable payment intangibles, deposit accounts, electronic
45377273 chattel paper documents, investment property, or letter -of-credit
45387274 rights which is perfected by control under Section 1 -9-314 of this
45397275 title;
4540-
45417276 (9) in chattel paper which is perfect ed by possession and
45427277 control under Section 1 -9-314A of this title;
45437278
7279+SENATE FLOOR VERSION - HB2776 SFLR Page 143
7280+(Bold face denotes Committee Amendments) 1
7281+2
7282+3
7283+4
7284+5
7285+6
7286+7
7287+8
7288+9
7289+10
7290+11
7291+12
7292+13
7293+14
7294+15
7295+16
7296+17
7297+18
7298+19
7299+20
7300+21
7301+22
7302+23
7303+24
7304+
45447305 (10) in proceeds which is perfected under Section 1 -9-315 of
45457306 this title; or
4546-
45477307 (10) (11) that is perfected under Section 1 -9-316 of this
45487308 title.
4549-
45507309 (c) If a secured part y assigns a perfected security interest or
45517310 agricultural lien, a filing under this article is not required to
45527311 continue the perfected status of the security interest against
45537312 creditors of and transferees from the original debtor.
4554-
45557313 SECTION 59. AMENDATORY 12A O .S. 2021, Section 1-9-312,
45567314 is amended to read as follows:
4557-
45587315 Section 1-9-312.
4559-
45607316 PERFECTION OF SECURITY INTERESTS IN CHATTEL PAPER, CONTROLLABLE
45617317 ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, CONTROLLABLE PAYMENT
45627318 INTANGIBLES, DEPOSIT ACCOUNTS, DOCUMENTS, GOODS COVERED BY
45637319 DOCUMENTS, INSTRUMENTS, INVESTMENT PROPERTY, LETTER -OF-CREDIT
45647320 RIGHTS, AND MONEY; PERFECTION BY PERMISSIVE FILING; TEMPORARY
45657321 PERFECTION WITHOUT FILING OR TRANSFER OF POSSESSION
4566- ENR. H. B. NO. 2776 Page 103
45677322 (a) A security interest in chattel paper, negotiable documents
45687323 controllable accounts, controllable electronic records, controllable
45697324 payment intangibles, instruments, or investment property, or
45707325 negotiable documents may be perfected by filing.
4571-
45727326 (b) Except as otherwise provided in subsections (c) and (d) of
45737327 Section 1-9-315 of this title for proceeds:
45747328
7329+SENATE FLOOR VERSION - HB2776 SFLR Page 144
7330+(Bold face denotes Committee Amendments) 1
7331+2
7332+3
7333+4
7334+5
7335+6
7336+7
7337+8
7338+9
7339+10
7340+11
7341+12
7342+13
7343+14
7344+15
7345+16
7346+17
7347+18
7348+19
7349+20
7350+21
7351+22
7352+23
7353+24
7354+
45757355 (1) a security interest in a deposit account may be perfected
45767356 only by control under Section 1 -9-314 of this title;
4577-
45787357 (2) and except as otherwise provided in subsection (d) of
45797358 Section 1-9-308 of this title, a sec urity interest in a lett er-of-
45807359 credit right may be perfected only by control under Section 1 -9-314
45817360 of this title; and
4582-
45837361 (3) a security interest in money may be perfected only by the
45847362 secured party's taking possession under Section 1 -9-313 of this
45857363 title.
4586-
45877364 (c) While goods are in the possession of a bailee that has
45887365 issued a negotiable document covering the goods:
4589-
45907366 (1) a security interest in the goods may be perfected by
45917367 perfecting a security interest in the document; and
4592-
45937368 (2) a security interest perfected in the document has priority
45947369 over any security interest that becomes perfected in the goods by
45957370 another method during that time.
4596-
45977371 (d) While goods are in the possession of a bailee that has
45987372 issued a nonnegotiable document covering the goods, a security
45997373 interest in the goods may be perfected by:
4600-
46017374 (1) issuance of a document in the name of the secured party;
4602-
46037375 (2) the bailee's receipt of notification of the secured party's
46047376 interest; or
4605-
46067377 (3) filing as to the goods.
7378+
7379+SENATE FLOOR VERSION - HB2776 SFLR Page 145
7380+(Bold face denotes Committee Amendments) 1
7381+2
7382+3
7383+4
7384+5
7385+6
7386+7
7387+8
7388+9
7389+10
7390+11
7391+12
7392+13
7393+14
7394+15
7395+16
7396+17
7397+18
7398+19
7399+20
7400+21
7401+22
7402+23
7403+24
46077404
46087405 (e) A security interest in certificated securities, neg otiable
46097406 documents, or instruments is perfected without filing or the taking
4610-of possession or control for a period of twenty (20) days from the ENR. H. B. NO. 2776 Page 104
7407+of possession or control for a period of twenty (20) days from the
46117408 time it attaches to the extent that it arises for new value given
46127409 under an authenticated a signed security agreement.
4613-
46147410 (f) A perfected security interest in a negotiable document or
46157411 goods in possession of a bailee, other than one that has issued a
46167412 negotiable document for the goods, remains perfected for twenty (20)
46177413 days without filing if the secured party makes availa ble to the
46187414 debtor the goods or documents representing the goods for the purpose
46197415 of:
4620-
46217416 (1) ultimate sale or exchange; or
4622-
46237417 (2) loading, unloading, storing, shipping, transshipping,
46247418 manufacturing, processing, or otherwise dealing with them in a
46257419 manner preliminary to their sale or exchange.
4626-
46277420 (g) A perfected security interest in a certificated security or
46287421 instrument remains perfected for twenty (20) days without filing if
46297422 the secured party delivers the security certificate or instrument to
46307423 the debtor for the purp ose of:
4631-
46327424 (1) ultimate sale or exchange; or
4633-
46347425 (2) presentation, collection, enforcement, renewal, or
46357426 registration of transfer.
7427+
7428+SENATE FLOOR VERSION - HB2776 SFLR Page 146
7429+(Bold face denotes Committee Amendments) 1
7430+2
7431+3
7432+4
7433+5
7434+6
7435+7
7436+8
7437+9
7438+10
7439+11
7440+12
7441+13
7442+14
7443+15
7444+16
7445+17
7446+18
7447+19
7448+20
7449+21
7450+22
7451+23
7452+24
46367453
46377454 (h) After the twenty -day period specified in subsection (e),
46387455 (f), or (g) of this section expires, perfection depends upon
46397456 compliance with this article.
4640-
46417457 SECTION 60. AMENDATORY 12A O.S. 2021, Section 1 -9-313,
46427458 is amended to read as follows:
4643-
46447459 Section 1-9-313.
4645-
46467460 WHEN POSSESSION BY OR DELIVERY TO SECURED PARTY
4647-
46487461 PERFECTS SECURITY INTEREST WITHOUT FILING
4649-
46507462 (a) Except as otherwise provided in sub section (b) of this
46517463 section, a secured party may perfect a security interest in tangible
46527464 negotiable documents, goods, instruments, negotiable tangible
46537465 documents, or money, or tangible chattel paper by taking possession
4654-of the collateral. A secured party may perfect a security interest ENR. H. B. NO. 2776 Page 105
7466+of the collateral. A secured party may perfect a security interest
46557467 in certificated securities by taking delivery of the certificated
46567468 securities under Section 8 -301 of this title.
4657-
46587469 (b) With respect to goods covered by a certificate of title
46597470 issued by this state, a secu red party may perfect a security
46607471 interest in the goods by taking possession of the goods only in the
46617472 circumstances described in subsection (d) of Section 1 -9-316 of this
46627473 title.
4663-
46647474 (c) With respect to collateral other than certificated
46657475 securities and goods co vered by a document, a secured party takes
46667476 possession of collateral in the possession of a person other than
7477+
7478+SENATE FLOOR VERSION - HB2776 SFLR Page 147
7479+(Bold face denotes Committee Amendments) 1
7480+2
7481+3
7482+4
7483+5
7484+6
7485+7
7486+8
7487+9
7488+10
7489+11
7490+12
7491+13
7492+14
7493+15
7494+16
7495+17
7496+18
7497+19
7498+20
7499+21
7500+22
7501+23
7502+24
7503+
46677504 the debtor, the secured party, or a lessee of the collateral from
46687505 the debtor in the ordinary course of the debtor's business, when:
4669-
46707506 (1) the person in possession authenticates signs a record
46717507 acknowledging that it holds possession of the collateral for the
46727508 secured party's benefit; or
4673-
46747509 (2) the person takes possession of the collateral after having
46757510 authenticated signed a record acknowledging that it wil l hold
46767511 possession of collateral for the secured party's benefit.
4677-
46787512 (d) If perfection of a security interest depends upon
46797513 possession of the collateral by a secured party, perfection occurs
46807514 no not earlier than the time the secured party takes possession and
46817515 continues only while the secured party retains possession.
4682-
46837516 (e) A security interest in a certificated security in
46847517 registered form is perfected by delivery when delivery of the
46857518 certificated security occurs under Section 8 -301 of this title and
46867519 remains perfected by delivery until the debtor obtains possession of
46877520 the security certificate.
4688-
46897521 (f) A person in possession of collateral is not required to
46907522 acknowledge that it holds possession for a secured party's benefit.
4691-
46927523 (g) If a person acknowledges that it holds po ssession for the
46937524 secured party's benefit:
4694-
46957525 (1) the acknowledgment is effective under subsection (c) of
46967526 this section or subsection (a) of Section 8 -301 of this title, even
46977527 if the acknowledgment violates the rights of a debtor; and
4698- ENR. H. B. NO. 2776 Page 106
7528+
7529+SENATE FLOOR VERSION - HB2776 SFLR Page 148
7530+(Bold face denotes Committee Amendments) 1
7531+2
7532+3
7533+4
7534+5
7535+6
7536+7
7537+8
7538+9
7539+10
7540+11
7541+12
7542+13
7543+14
7544+15
7545+16
7546+17
7547+18
7548+19
7549+20
7550+21
7551+22
7552+23
7553+24
7554+
46997555 (2) unless the person oth erwise agrees or law other than this
47007556 article otherwise provides, the person does not owe any duty to the
47017557 secured party and is not required to confirm the acknowledgment to
47027558 another person.
4703-
47047559 (h) A secured party having possession of collateral does not
47057560 relinquish possession by deliv ering the collateral to a person other
47067561 than the debtor or a lessee of the collateral from the debtor in the
47077562 ordinary course of the debtor's business if the person was
47087563 instructed before the delivery or is instructed contemporaneously
47097564 with the delivery:
4710-
47117565 (1) to hold possession of the collateral for the secured
47127566 party's benefit; or
4713-
47147567 (2) to redeliver the collateral to the secured party.
4715-
47167568 (i) A secured party does not relinquish possession, even if a
47177569 delivery under subsection (h) of this se ction violates the right s of
47187570 a debtor. A person to which collateral is delivered under
47197571 subsection (h) of this section does not owe any duty to the secured
47207572 party and is not required to confirm the delivery to another person
47217573 unless the person otherwise agre es or law other than this article
47227574 otherwise provides.
4723-
47247575 SECTION 61. AMENDATORY 12A O.S. 2021, Section 1 -9-314,
47257576 is amended to read as follows:
4726-
47277577 Section 1-9-314.
4728-
47297578 PERFECTION BY CONTROL
7579+
7580+SENATE FLOOR VERSION - HB2776 SFLR Page 149
7581+(Bold face denotes Committee Amendments) 1
7582+2
7583+3
7584+4
7585+5
7586+6
7587+7
7588+8
7589+9
7590+10
7591+11
7592+12
7593+13
7594+14
7595+15
7596+16
7597+17
7598+18
7599+19
7600+20
7601+21
7602+22
7603+23
7604+24
47307605
47317606 (a) A security interest in investment property, dep osit
47327607 accounts, letter-of-credit rights, electronic chattel paper, or
47337608 electronic documents controllable accounts, controllable electronic
47347609 records, controllable payment intangibles, deposit accounts,
47357610 electronic documents, investment property, or letter -of-credit
47367611 rights may be perfected by control of the collateral under Section
47377612 7-106, 1-9-104, 1-9-105, 1-9-106, or 1-9-107, or 1-9-107A of this
47387613 title.
4739-
47407614 (b) A security interest in deposit accounts, electronic chattel
47417615 paper, letter-of-credit rights, or electronic documents controllable
47427616 accounts, controllable electronic records, controllable payment
4743-intangibles, deposit accounts, electronic documents, or letter-of- ENR. H. B. NO. 2776 Page 107
7617+intangibles, deposit accounts, electronic documents, or letter -of-
47447618 credit rights is perfected by control under Section 1 -9-104, 1-9-
47457619 105, or 1-9-107, or 1-9-107A of this title when not earlier than the
47467620 time the secured party obtains control and remains perfected by
47477621 control only while the secured party retains control.
4748-
47497622 (c) A security interest in investment property is perfected by
47507623 control under Section 1 -9-106 of this title from not earlier than
47517624 the time the secured party obtains control and remains perfected by
47527625 control until:
4753-
47547626 (1) the secured party does not have control; and
4755-
47567627 (2) one of the following occurs:
7628+
7629+SENATE FLOOR VERSION - HB2776 SFLR Page 150
7630+(Bold face denotes Committee Amendments) 1
7631+2
7632+3
7633+4
7634+5
7635+6
7636+7
7637+8
7638+9
7639+10
7640+11
7641+12
7642+13
7643+14
7644+15
7645+16
7646+17
7647+18
7648+19
7649+20
7650+21
7651+22
7652+23
7653+24
47577654
47587655 (A) if the collateral is a certificated security, the
47597656 debtor has or acquires possession of the security
47607657 certificate;
4761-
47627658 (B) if the collateral is an uncertificated security, the
47637659 issuer has registered or registers the debtor as the
47647660 registered owner; or
4765-
47667661 (C) if the collateral is a security entitlement, the
47677662 debtor is or becomes the entitlement holder.
4768-
47697663 SECTION 62. NEW LAW A new section of law to be codified
47707664 in the Oklahoma Statutes as Section 1 -9-314A of Title 12A, unless
47717665 there is created a duplication in numbering, reads as follows:
4772-
47737666 PERFECTION BY POSSESSION AND CONTROL OF CHATTEL PAPER
4774-
47757667 (a) A secured party may perfect a security interest in chattel
47767668 paper by taking possession of each authoritative tangible copy of
47777669 the record evidencing the chattel paper and obtaining control of
47787670 each authoritative electronic c opy of the electronic re cord
47797671 evidencing the chattel paper.
4780-
47817672 (b) A security interest is perfected under subsection (a) of
47827673 this section not earlier than the time the secured party takes
47837674 possession and obtains control and remains perfected under
47847675 subsection (a) of this section only while the secured party retains
47857676 possession and control.
4786- ENR. H. B. NO. 2776 Page 108
7677+
7678+SENATE FLOOR VERSION - HB2776 SFLR Page 151
7679+(Bold face denotes Committee Amendments) 1
7680+2
7681+3
7682+4
7683+5
7684+6
7685+7
7686+8
7687+9
7688+10
7689+11
7690+12
7691+13
7692+14
7693+15
7694+16
7695+17
7696+18
7697+19
7698+20
7699+21
7700+22
7701+23
7702+24
7703+
47877704 (c) Subsections (c) and (f) through (i) of Section 1 -9-313 of
47887705 this title apply to perfection by possession of an authoritative
47897706 tangible copy of a record evidencing chattel pape r.
4790-
47917707 SECTION 63. AMENDATORY 12A O.S. 2021, Section 1 -9-316,
47927708 is amended to read as follows:
4793-
47947709 Section 1-9-316.
4795-
47967710 EFFECT OF CHANGE IN GOVERNING LAW
4797-
47987711 (a) A security interest perfected pursuant to the law of the
47997712 jurisdiction designated in pa ragraph (1) of Section 1 -9-301 or,
48007713 subsection (c) of Section 1 -9-305, subsection (d) of Section 1 -9-
48017714 306A, or subsection (b) of Section 1 -9-306B of this title remains
48027715 perfected until the earliest of:
4803-
48047716 (1) the time perfection would have ceased under the law of that
48057717 jurisdiction;
4806-
48077718 (2) the expiration of four (4) months after a change of the
48087719 debtor's location to another jurisdiction; or
4809-
48107720 (3) the expiration of one (1) year after a transfer of
48117721 collateral to a person that thereby becomes a debtor and is located
48127722 in another jurisdiction.
4813-
48147723 (b) If a security interest described in subsection (a) of this
48157724 section becomes perfected under the law of the other jurisdiction
48167725 before the earliest time or event described in that subsection, it
48177726 remains perfected thereafter. If the security interest does not
48187727 become perfected under the law of the other jurisdiction before the
7728+
7729+SENATE FLOOR VERSION - HB2776 SFLR Page 152
7730+(Bold face denotes Committee Amendments) 1
7731+2
7732+3
7733+4
7734+5
7735+6
7736+7
7737+8
7738+9
7739+10
7740+11
7741+12
7742+13
7743+14
7744+15
7745+16
7746+17
7747+18
7748+19
7749+20
7750+21
7751+22
7752+23
7753+24
7754+
48197755 earliest time or event, it becomes unperfected and is deemed never
48207756 to have been perfected as against a purchaser of the collateral for
48217757 value.
4822-
48237758 (c) A possessory security interest in collateral, other than
48247759 goods covered by a certificate of title and as -extracted collateral
48257760 consisting of goods, remains continuously perfected if:
4826-
48277761 (1) the collateral is located in one jurisdiction and subject
48287762 to a security interest pe rfected under the law of that jurisdiction;
4829-
48307763 (2) thereafter the collateral is brought into another
4831-jurisdiction; and ENR. H. B. NO. 2776 Page 109
4832-
7764+jurisdiction; and
48337765 (3) upon entry into the other jurisdiction, the security
48347766 interest is perfected under the law of the other jurisdiction.
4835-
48367767 (d) Except as otherwise provided in subsection (e) of this
48377768 section, a security interest in goods covered by a certificate of
48387769 title which is perfected by any method under the law of another
48397770 jurisdiction when the goods become covered by a certificate of title
48407771 from this state remains perfected until the security interest would
48417772 have become unperfected under the law of the other jurisdiction had
48427773 the goods not become so covered.
4843-
48447774 (e) A security interest described in subsection (d) of this
48457775 section becomes unperfected as against a purchaser of the goods for
48467776 value and is deemed never to have been perfected as against a
48477777 purchaser of the goods for value if the applicable requirements for
7778+
7779+SENATE FLOOR VERSION - HB2776 SFLR Page 153
7780+(Bold face denotes Committee Amendments) 1
7781+2
7782+3
7783+4
7784+5
7785+6
7786+7
7787+8
7788+9
7789+10
7790+11
7791+12
7792+13
7793+14
7794+15
7795+16
7796+17
7797+18
7798+19
7799+20
7800+21
7801+22
7802+23
7803+24
7804+
48487805 perfection under subsection (b) of Section 1 -9-311 or Section 1-9-
48497806 313 of this title are not satisfi ed before the earlier of :
4850-
48517807 (1) the time the security interest would have become
48527808 unperfected under the law of the other jurisdiction had the goods
48537809 not become covered by a certificate of title from this state; or
4854-
48557810 (2) the expiration of four (4) months after the goods had
48567811 become so covered.
4857-
48587812 (f) A security interest in chattel paper, controllable
48597813 accounts, controllable electronic records, controllable payment
48607814 intangibles, deposit accounts, letter -of-credit rights, or
48617815 investment property which is perfected under the law of the chattel
48627816 paper's jurisdiction, the controllable electronic records'
48637817 jurisdiction, the bank's jurisdiction, the issuer's jurisdiction, a
48647818 nominated person's jurisdiction, the securities intermediary's
48657819 jurisdiction, or the commodity intermediar y's jurisdiction, as
48667820 applicable, remains perfected until the earlier of:
4867-
48687821 (1) the time the security interest would have become
48697822 unperfected under the law of that jurisdiction; or
4870-
48717823 (2) the expiration of four (4) months after a change of the
48727824 applicable jurisdiction to another jurisd iction.
4873-
48747825 (g) If a security interest described in subsection (f) of this
48757826 section becomes perfected under the law of the other jurisdiction
4876-before the earlier of the time or the end of the period described in ENR. H. B. NO. 2776 Page 110
7827+before the earlier of the time or the end of the period described in
48777828 that subsection, it remai ns perfected thereafter. If the security
7829+
7830+SENATE FLOOR VERSION - HB2776 SFLR Page 154
7831+(Bold face denotes Committee Amendments) 1
7832+2
7833+3
7834+4
7835+5
7836+6
7837+7
7838+8
7839+9
7840+10
7841+11
7842+12
7843+13
7844+14
7845+15
7846+16
7847+17
7848+18
7849+19
7850+20
7851+21
7852+22
7853+23
7854+24
7855+
48787856 interest does not become perfected under the law of the other
48797857 jurisdiction before the earlier of that time or the end of that
48807858 period, it becomes unperfected and is deemed never to have been
48817859 perfected as against a p urchaser of the collater al for value.
4882-
48837860 (h) The following rules apply to collateral to which a security
48847861 interest attaches within four (4) months after the debtor changes
48857862 its location to another jurisdiction:
4886-
48877863 (1) a financing statement filed before the chang e pursuant to
48887864 the law of the jurisdiction designated in subsection (1) of Section
48897865 1-9-301 of this title or subsection (c) of 1 -9-305 of this title is
48907866 effective to perfect a security interest in the collateral if the
48917867 financing statement would have been effe ctive to perfect a secur ity
48927868 interest in the collateral if the debtor had not changed its
48937869 location.
4894-
48957870 (2) if a security interest that is perfected by a financing
48967871 statement that is effective under paragraph (1) of this subsection
48977872 becomes perfected under the l aw of the other jurisdiction before the
48987873 earlier of the time the financing statement would have become
48997874 ineffective under the law of the jurisdiction designated in
49007875 subsection (1) of Section 1 -9-301 of this title or subsection (c) of
49017876 Section 1-9-305 of this title or the expiration o f the four-month
49027877 period, it remains perfected thereafter. If the security interest
49037878 does not become perfected under the law of the other jurisdiction
49047879 before the earlier time or event, it becomes unperfected and is
7880+
7881+SENATE FLOOR VERSION - HB2776 SFLR Page 155
7882+(Bold face denotes Committee Amendments) 1
7883+2
7884+3
7885+4
7886+5
7887+6
7888+7
7889+8
7890+9
7891+10
7892+11
7893+12
7894+13
7895+14
7896+15
7897+16
7898+17
7899+18
7900+19
7901+20
7902+21
7903+22
7904+23
7905+24
7906+
49057907 deemed never to have been perfected as against a purchaser of the
49067908 collateral for value.
4907-
49087909 (i) If a financing statement naming an original debtor is filed
49097910 pursuant to the law of the jurisdiction designated in subsection (1)
49107911 of Section 1-9-301 of this title or subsection (c) o f Section 1-9-
49117912 305 of this title and the new debtor is located in another
49127913 jurisdiction, the following rules apply:
4913-
49147914 (1) the financing statement is effective to perfect a security
49157915 interest in collateral in which the new debtor has or acquires
49167916 rights before or within four (4) months after the new debtor becomes
49177917 bound under subsection (d) of Section 1 -9-203 of this title, if the
49187918 financing statement would have been effective to perfect a security
49197919 interest in the collateral if the collateral had been acquired by
49207920 the original debtor.
4921- ENR. H. B. NO. 2776 Page 111
49227921 (2) a security interest that is perfected by the financing
49237922 statement and which becomes perfected under the law of the other
49247923 jurisdiction before the earlier of the expiration of the four -month
49257924 period or the time the financing statement would have become
49267925 ineffective under the law of the jurisdiction designated in
49277926 subsection (1) of Section 1 -9-301 of this title or subsection (c) of
49287927 Section 1-9-305 of this title remains perfected thereafter. A
49297928 security interest that is perfected by the fi nancing statement but
49307929 which does not become perfected under the law of the other
49317930 jurisdiction before the earlier time or event becomes unperfected
7931+
7932+SENATE FLOOR VERSION - HB2776 SFLR Page 156
7933+(Bold face denotes Committee Amendments) 1
7934+2
7935+3
7936+4
7937+5
7938+6
7939+7
7940+8
7941+9
7942+10
7943+11
7944+12
7945+13
7946+14
7947+15
7948+16
7949+17
7950+18
7951+19
7952+20
7953+21
7954+22
7955+23
7956+24
7957+
49327958 and is deemed never to have been perfected as against a purchaser of
49337959 the collateral for value.
4934-
49357960 SECTION 64. AMENDATORY 12A O.S. 2021, Section 1 -9-317,
49367961 is amended to read as follows:
4937-
49387962 Section 1-9-317.
4939-
49407963 INTERESTS THAT TAKE PRIORITY OVER OR TAKE FREE
4941-
49427964 OF SECURITY INTEREST OR AGRICULTURAL LIEN
4943-
49447965 (a) A security interest or agricultural lien is subo rdinate to
49457966 the rights of:
4946-
49477967 (1) a person entitled to priority under Section 1 -9-322 of this
49487968 title; and
4949-
49507969 (2) except as otherwise provided in subsection (e) of this
49517970 section, a person that becomes a lien creditor before the earlier of
49527971 the time:
4953-
49547972 (A) the security interest or agricultural lien is
49557973 perfected; or
4956-
49577974 (B) one of the conditions specified in paragraph (3) of
49587975 subsection (b) of Section 1 -9-203 of this title is met
49597976 and a financing statement covering the collateral is
49607977 filed.
4961-
49627978 (b) Except as otherwise provided in subsection (e) of this
49637979 section, a buyer, other than a secured party, of tangible chattel
49647980 paper, tangible documents, goods, instruments, tangible documents,
49657981 or a certificated security takes free of a security interest or
4966-agricultural lien if t he buyer gives value and receives delivery of ENR. H. B. NO. 2776 Page 112
7982+
7983+SENATE FLOOR VERSION - HB2776 SFLR Page 157
7984+(Bold face denotes Committee Amendments) 1
7985+2
7986+3
7987+4
7988+5
7989+6
7990+7
7991+8
7992+9
7993+10
7994+11
7995+12
7996+13
7997+14
7998+15
7999+16
8000+17
8001+18
8002+19
8003+20
8004+21
8005+22
8006+23
8007+24
8008+
8009+agricultural lien if the buyer give s value and receives delivery of
49678010 the collateral without knowledge of the security interest or
49688011 agricultural lien and before it is perfected.
4969-
49708012 (c) Except as otherwise provided in subsection (e) of this
49718013 section, a lessee of goods takes free of a security inte rest or
49728014 agricultural lien if the lessee gives value and receives delivery of
49738015 the collateral without knowledge of the security interest or
49748016 agricultural lien and before it is perfected.
4975-
49768017 (d) A Subject to subsections (f) through (i) of this section, a
49778018 licensee of a general intangible or a buyer, other than a secured
49788019 party, of collateral other than tangible chattel paper, tangible
49798020 documents, goods, instruments, tangible documents, or a certificated
49808021 security takes free of a security interest if the licensee or b uyer
49818022 gives value without knowledge of the security interest and before it
49828023 is perfected.
4983-
49848024 (e) Except as otherwise provided in Sections 1 -9-320 and 1-9-
49858025 321 of this title, if a person files a financing statement with
49868026 respect to a purchase -money security inter est before or within
49878027 twenty (20) days after the debtor receives delivery of the
49888028 collateral, the security interest takes priority over the rights of
49898029 a buyer, lessee, or lien creditor which arise between the time the
49908030 security interest attaches and the time o f filing.
49918031
8032+SENATE FLOOR VERSION - HB2776 SFLR Page 158
8033+(Bold face denotes Committee Amendments) 1
8034+2
8035+3
8036+4
8037+5
8038+6
8039+7
8040+8
8041+9
8042+10
8043+11
8044+12
8045+13
8046+14
8047+15
8048+16
8049+17
8050+18
8051+19
8052+20
8053+21
8054+22
8055+23
8056+24
8057+
49928058 (f) A buyer, other than a secured party, of chattel paper takes
49938059 free of a security interest if, without knowledge of the security
49948060 interest and before it is perfected, the buyer gives value and:
4995-
49968061 (1) receives delivery of each authoritative tangib le copy of
49978062 the record evidencing the chattel paper; and
4998-
49998063 (2) if each authoritative electronic copy of the record
50008064 evidencing the chattel paper can be subjected to control under
50018065 Section 1-9-105 of this title, obtains control of each authoritative
50028066 electronic copy.
5003-
50048067 (g) A buyer of an electronic document takes free of a security
50058068 interest if, without knowledge of the security interest and before
50068069 it is perfected, the buyer gives value and, if each authoritative
50078070 electronic copy of the document can be subjected to c ontrol under
50088071 Section 7-106 of this title, obtains control of each authoritative
50098072 electronic copy.
5010- ENR. H. B. NO. 2776 Page 113
50118073 (h) A buyer of a controllable electronic record takes free of a
50128074 security interest if, without knowledge of the security interest and
50138075 before it is perfected, t he buyer gives value and obtains control of
50148076 the controllable electronic record.
5015-
50168077 (i) A buyer, other than a secured party, of a controllable
50178078 account or a controllable payment intangible takes free of a
50188079 security interest if, without knowledge of the security interest and
50198080 before it is perfected, the buyer gives value and obtains control of
50208081 the controllable account or controllable payment intangible.
50218082
8083+SENATE FLOOR VERSION - HB2776 SFLR Page 159
8084+(Bold face denotes Committee Amendments) 1
8085+2
8086+3
8087+4
8088+5
8089+6
8090+7
8091+8
8092+9
8093+10
8094+11
8095+12
8096+13
8097+14
8098+15
8099+16
8100+17
8101+18
8102+19
8103+20
8104+21
8105+22
8106+23
8107+24
8108+
50228109 SECTION 65. AMENDATORY 12A O.S. 2021, Section 1 -9-323,
50238110 is amended to read as follows:
5024-
50258111 Section 1-9-323.
5026-
50278112 FUTURE ADVANCES
5028-
50298113 (a) Except as otherwise provided in subsection (c) of this
50308114 section, for purposes of determining the priority of a perfected
50318115 security interest under paragraph (1) of subsection (a) of Section
50328116 1-9-322 of this title, perfectio n of the security interest dates
50338117 from the time an advance is made to the extent that the security
50348118 interest secures an advance that:
5035-
50368119 (1) is made while the security interest is perfected only:
5037-
50388120 (A) under Section 1-9-309 of this title when it attaches;
50398121 or
5040-
50418122 (B) temporarily under subse ction (e), (f), or (g) of
50428123 Section 1-9-312 of this title; and
5043-
50448124 (2) is not made pursuant to a commitment entered into before or
50458125 while the security interest is perfected by a method other than
50468126 under Section 1-9-309 or subsection (e), ( f), or (g) of Section 1 -9-
50478127 312 of this title.
5048-
50498128 (b) Except as otherwise provided in subsection (c) of this
50508129 section, a security interest is subordinate to the rights of a
50518130 person that becomes a lien creditor to the extent that the security
50528131 interest secures an advance made more than f orty-five (45) days
50538132 after the person becomes a lien creditor unless the advance is made:
50548133
5055-(1) without knowledge of the lien; or ENR. H. B. NO. 2776 Page 114
5056-
8134+SENATE FLOOR VERSION - HB2776 SFLR Page 160
8135+(Bold face denotes Committee Amendments) 1
8136+2
8137+3
8138+4
8139+5
8140+6
8141+7
8142+8
8143+9
8144+10
8145+11
8146+12
8147+13
8148+14
8149+15
8150+16
8151+17
8152+18
8153+19
8154+20
8155+21
8156+22
8157+23
8158+24
8159+
8160+(1) without knowledge of the lien; or
50578161 (2) pursuant to a commitment entered into without knowledge of
50588162 the lien.
5059-
50608163 (c) Subsections (a) and (b) o f this section do not apply to a
50618164 security interest held by a secured party that is a buyer of
50628165 accounts, chattel paper, payment intangibles, or promissory notes or
50638166 a consignor.
5064-
50658167 (d) Except as otherwise provided in subsection (e) of this
50668168 section, a buyer of goods other than a buyer in ordinary course of
50678169 business takes free of a security interest to the extent that it
50688170 secures advances made after the earlier of:
5069-
50708171 (1) the time the secured party acquires knowledge of the
50718172 buyer's purchase; or
5072-
50738173 (2) forty-five (45) days after the purchase.
5074-
50758174 (e) Subsection (d) of this section does not apply if the
50768175 advance is made pursuant to a commitment entered into without
50778176 knowledge of the buyer's purchase and before the expiration of the
50788177 forty-five-day period.
5079-
50808178 (f) Except as otherw ise provided in subsecti on (g) of this
50818179 section, a lessee of goods , other than a lessee in ordinary course
50828180 of business, takes the leasehold interest free of a security
50838181 interest to the extent that it secures advances made after the
50848182 earlier of:
50858183
8184+SENATE FLOOR VERSION - HB2776 SFLR Page 161
8185+(Bold face denotes Committee Amendments) 1
8186+2
8187+3
8188+4
8189+5
8190+6
8191+7
8192+8
8193+9
8194+10
8195+11
8196+12
8197+13
8198+14
8199+15
8200+16
8201+17
8202+18
8203+19
8204+20
8205+21
8206+22
8207+23
8208+24
8209+
50868210 (1) the time the secured party acquires knowledge of the lease;
50878211 or
5088-
50898212 (2) Forty-five (45) days after the lease contract becomes
50908213 enforceable.
5091-
50928214 (g) Subsection (f) of this section does not apply if the
50938215 advance is made pursuant to a commitment entered into without
50948216 knowledge of the lease and before the expiration of the forty -five-
50958217 day period.
5096-
50978218 SECTION 66. AMENDATORY 12A O.S. 2021, Section 1 -9-324,
50988219 is amended to read as follows:
5099-
5100-Section 1-9-324. ENR. H. B. NO. 2776 Page 115
5101-
8220+Section 1-9-324.
51028221 PRIORITY OF PURCHASE -MONEY SECURITY INTERESTS
5103-
51048222 (a) Except as otherwise provided in subsection (g) of this
51058223 section, a perfected purchase -money security interest in goods other
51068224 than inventory or livestock has priority over a conflicting security
51078225 interest in the same goods, and, except as otherwise provided in
51088226 Section 1-9-327 of this title, a perfected security interest in its
51098227 identifiable proceeds also has priority, if the purchase -money
51108228 security interest is perfected when the debtor receives possession
51118229 of the collateral or within twenty (20) days thereafter.
5112-
51138230 (b) Subject to subsection (c) of this section and except as
51148231 otherwise provided in subsection (g) of this section, a perfected
51158232 purchase-money security interest in inventory has priority over a
51168233 conflicting security interest in the same inventory, has priority
8234+
8235+SENATE FLOOR VERSION - HB2776 SFLR Page 162
8236+(Bold face denotes Committee Amendments) 1
8237+2
8238+3
8239+4
8240+5
8241+6
8242+7
8243+8
8244+9
8245+10
8246+11
8247+12
8248+13
8249+14
8250+15
8251+16
8252+17
8253+18
8254+19
8255+20
8256+21
8257+22
8258+23
8259+24
8260+
51178261 over a conflicting security interest in chattel paper or an
51188262 instrument constituting proceeds of the inventory and in proceeds of
51198263 the chattel paper, if so provided in Section 1 -9-330 of this title,
51208264 and, except as otherwise provided in Section 1 -9-327 of this title,
51218265 also has priority in identifiable cash proceeds of the inventory to
51228266 the extent the identifiable cash proceeds are received on or before
51238267 the delivery of the inventory to a buyer, if:
5124-
51258268 (1) the purchase-money security interest is perfected when the
51268269 debtor receives possession of the inventory;
5127-
51288270 (2) the purchase-money secured party sends an authenticated a
51298271 signed notification to the holder of the conflicting security
51308272 interest;
5131-
51328273 (3) the holder of the conflicting security interest receives
51338274 the notification within five (5) years before the debtor receives
51348275 possession of the inventory; and
5135-
51368276 (4) the notification states that the person sending the
51378277 notification has or expects to acquire a purchase -money security
51388278 interest in inventory of the debtor and describes the inventory.
5139-
51408279 (c) Paragraphs (2) through (4) of subsection (b) of this
51418280 section apply only if the holder of the conflicting security
51428281 interest had filed a financing statement covering the same types of
51438282 inventory:
5144- ENR. H. B. NO. 2776 Page 116
51458283 (1) if the purchase -money security interest is perfected by
51468284 filing, before the date of the filing; or
8285+
8286+SENATE FLOOR VERSION - HB2776 SFLR Page 163
8287+(Bold face denotes Committee Amendments) 1
8288+2
8289+3
8290+4
8291+5
8292+6
8293+7
8294+8
8295+9
8296+10
8297+11
8298+12
8299+13
8300+14
8301+15
8302+16
8303+17
8304+18
8305+19
8306+20
8307+21
8308+22
8309+23
8310+24
51478311
51488312 (2) if the purchase -money security interest is temporarily
51498313 perfected without filing or possession under subsection (f) of
51508314 Section 1-9-312 of this title, before the beginning of the twenty -
51518315 day period thereunder.
5152-
51538316 (d) Subject to subsection (e) of this section and except as
51548317 otherwise provided in subsection (g) of this section, a perfected
51558318 purchase-money security interest in livestock that are farm products
51568319 has priority over a conflicting security interes t in the same
51578320 livestock, and, except as otherwise provided in Section 1 -9-327 of
51588321 this title, a perfected security interest in their identifiable
51598322 proceeds and identifiable products in their unmanufactured states
51608323 also has priority, if:
5161-
51628324 (1) the purchase-money security interest is p erfected when the
51638325 debtor receives possession of the livestock;
5164-
51658326 (2) the purchase-money secured party sends an authenticated a
51668327 signed notification to the holder of the conflicting security
51678328 interest;
5168-
51698329 (3) the holder of the conflicting security interest receives
51708330 the notification within six (6) months before the debtor receives
51718331 possession of the livestock; and
5172-
51738332 (4) the notification states that the person sending the
51748333 notification has or expects to acquire a purchase -money security
51758334 interest in livestock of the de btor and describes the livestock.
8335+
8336+SENATE FLOOR VERSION - HB2776 SFLR Page 164
8337+(Bold face denotes Committee Amendments) 1
8338+2
8339+3
8340+4
8341+5
8342+6
8343+7
8344+8
8345+9
8346+10
8347+11
8348+12
8349+13
8350+14
8351+15
8352+16
8353+17
8354+18
8355+19
8356+20
8357+21
8358+22
8359+23
8360+24
51768361
51778362 (e) Paragraphs (2) through (4) of subsection (d) of this
51788363 section applies only if the holder of the conflicting security
51798364 interest had filed a financing statement covering the same types of
51808365 livestock:
5181-
51828366 (1) if the purchase -money security interest is perfected by
51838367 filing, before the date of the filing; or
5184-
51858368 (2) if the purchase -money security interest is temporarily
51868369 perfected without filing or possession under subsection (f) of
51878370 Section 1-9-312 of this title, before the beginning of the twenty-
51888371 day period thereunder.
5189- ENR. H. B. NO. 2776 Page 117
51908372 (f) Except as otherwise provided in subsection (g) of this
51918373 section, a perfected purchase -money security interest in software
51928374 has priority over a conflicting security interest in the same
51938375 collateral, and, except as otherwise provided in Section 1 -9-327 of
51948376 this title, a perfected security interest in its identifiable
51958377 proceeds also has priority, to the extent that the purchase -money
51968378 security interest in the goods in which the software was acquired
51978379 for use has priority in t he goods and proceeds of the goods under
51988380 this section.
5199-
52008381 (g) If more than one security interest qualifies for priority
52018382 in the same collateral under subsection (a), (b), (d), or (f) of
52028383 this section:
5203-
52048384 (1) a security interest securing a n obligation incurred as all
52058385 or part of the price of the collateral has priority over a security
8386+
8387+SENATE FLOOR VERSION - HB2776 SFLR Page 165
8388+(Bold face denotes Committee Amendments) 1
8389+2
8390+3
8391+4
8392+5
8393+6
8394+7
8395+8
8396+9
8397+10
8398+11
8399+12
8400+13
8401+14
8402+15
8403+16
8404+17
8405+18
8406+19
8407+20
8408+21
8409+22
8410+23
8411+24
8412+
52068413 interest securing an obligation incurred for value given to enable
52078414 the debtor to acquire rights in or the use of collateral; and
5208-
52098415 (2) in all other cases, subse ction (a) of Section 1 -9-322 of
52108416 this title applies to the qualifying security interests.
5211-
52128417 SECTION 67. NEW LAW A new section of law to be codified
52138418 in the Oklahoma Statutes as Section 1 -9-326A of Title 12A, unless
52148419 there is created a dup lication in numbering, reads as follows:
5215-
52168420 PRIORITY OF SECURITY INTEREST IN CONTROLLABLE ACCOUNT, CONTROLLABLE
52178421 ELECTRONIC RECORD, AND CONTROLLABLE PAYMENT INTANGIBLE
5218-
52198422 A security interest in a controllable account, controllable
52208423 electronic record, or controllab le payment intangible he ld by a
52218424 secured party having control of the account, electronic record, or
52228425 payment intangible has priority over a conflicting security interest
52238426 held by a secured party that does not have control.
5224-
52258427 SECTION 68. AMENDATORY 12A O.S. 2021, Section 1 -9-330,
52268428 is amended to read as follows:
5227-
52288429 Section 1-9-330.
5229-
52308430 PRIORITY OF PURCHASER OF CHATTEL PAPER OR INSTRUMENT
5231-
52328431 (a) A purchaser of chattel paper has priority over a security
52338432 interest in the chattel paper which is claimed m erely as proceeds of
5234-inventory subject to a security interest if: ENR. H. B. NO. 2776 Page 118
5235-
8433+inventory subject to a security interest if:
52368434 (1) in good faith and in the ordinary course of the purchaser's
52378435 business, the purchaser gives new value and, takes possession of
52388436 each authoritative tangible copy of the record evidencing the
8437+
8438+SENATE FLOOR VERSION - HB2776 SFLR Page 166
8439+(Bold face denotes Committee Amendments) 1
8440+2
8441+3
8442+4
8443+5
8444+6
8445+7
8446+8
8447+9
8448+10
8449+11
8450+12
8451+13
8452+14
8453+15
8454+16
8455+17
8456+18
8457+19
8458+20
8459+21
8460+22
8461+23
8462+24
8463+
52398464 chattel paper or, and obtains control of under Section 1-9-105 of
52408465 this title of each authoritative electronic copy of the record
52418466 evidencing the chattel paper under Section 1-9-105 of this title;
52428467 and
5243-
52448468 (2) the authoritative copies of the record evidencing the
52458469 chattel paper does do not indicate that it the chattel paper has
52468470 been assigned to an identified assignee other than the purchaser.
5247-
52488471 (b) A purchaser of chattel paper has priority over a security
52498472 interest in the chattel paper which is claimed other than merely as
52508473 proceeds of inventory subject to a security interest if the
52518474 purchaser gives new value and, takes possession of each
52528475 authoritative tangible copy of the record evidencing the chattel
52538476 paper or, and obtains control of under Section 1-9-105 of this title
52548477 of each authoritativ e electronic copy of the record evidencing the
52558478 chattel paper under Section 1-9-105 of this title in good faith, in
52568479 the ordinary course of the purchaser's business, and without
52578480 knowledge that the purchase violates the rights of the s ecured
52588481 party.
5259-
52608482 (c) Except as otherwise provided in Section 1 -9-327 of this
52618483 title, a purchaser having priority in chattel paper under subsection
52628484 (a) or (b) of this section also has priority in proceeds of the
52638485 chattel paper to the extent that:
5264-
52658486 (1) Section 1-9-322 of this title pro vides for priority in the
52668487 proceeds; or
8488+
8489+SENATE FLOOR VERSION - HB2776 SFLR Page 167
8490+(Bold face denotes Committee Amendments) 1
8491+2
8492+3
8493+4
8494+5
8495+6
8496+7
8497+8
8498+9
8499+10
8500+11
8501+12
8502+13
8503+14
8504+15
8505+16
8506+17
8507+18
8508+19
8509+20
8510+21
8511+22
8512+23
8513+24
52678514
52688515 (2) the proceeds consist of the specific goods covered by the
52698516 chattel paper or cash proceeds of the specific goods, even if the
52708517 purchaser's security interest in the proceeds is unperfected.
5271-
52728518 (d) Except as otherwise provided in subsection (a) of Section
52738519 1-9-331 of this title, a purchaser of an instrument has priority
52748520 over a security interest in the instrument perfected by a method
52758521 other than possession if the purchaser gives value and takes
52768522 possession of the instrument in good faith and without knowledge
52778523 that the purchase violates the rights of the secured party.
5278- ENR. H. B. NO. 2776 Page 119
52798524 (e) For purposes of subsections (a) and (b) of this section,
52808525 the holder of a purchase -money security interest in inventory gives
52818526 new value for chattel paper constituting proceeds of the inventory.
5282-
52838527 (f) For purposes of subsections (b) and (d) of this section, if
52848528 the authoritative copies of the record evidencing chattel paper or
52858529 an instrument indicates indicate that it the chattel paper or
52868530 instrument has been assigned to an identified secured party other
52878531 than the purchaser, a purchaser of the chattel paper or instrument
52888532 has knowledge that the purchase violates the rights of the secured
52898533 party.
5290-
52918534 SECTION 69. AMENDATORY 12A O.S. 2021, Section 1 -9-331,
52928535 is amended to read as follows:
5293-
52948536 Section 1-9-331.
5295-
52968537 PRIORITY OF RIGHTS OF PURCHASERS OF INSTRUMENTS CONTROLLABLE
52978538 ACCOUNTS, CONTROLLABLE ELECTRONIC RECORDS, CONTROLLABLE PAYMENT
8539+
8540+SENATE FLOOR VERSION - HB2776 SFLR Page 168
8541+(Bold face denotes Committee Amendments) 1
8542+2
8543+3
8544+4
8545+5
8546+6
8547+7
8548+8
8549+9
8550+10
8551+11
8552+12
8553+13
8554+14
8555+15
8556+16
8557+17
8558+18
8559+19
8560+20
8561+21
8562+22
8563+23
8564+24
8565+
52988566 INTANGIBLES, DOCUMENTS, INSTRUMENTS, AND SECURITIES UNDER OTHER
52998567 ARTICLES; PRIORITY OF INTERESTS IN FINANCIAL ASSETS AND SECURITY
53008568 ENTITLEMENTS AND PROTECTION AGAINST ASSERTION OF CLAIM UNDER ARTICLE
53018569 ARTICLES 8 AND 12
5302-
53038570 (a) This article does not limit the rights of a holder in due
53048571 course of a negotiable instr ument, a holder to which a negotiable
53058572 document of title has been duly negotiated, or a protected purchaser
53068573 of a security, or a qualifying purchaser of a controllable account,
53078574 controllable electronic record, or controllable payment intangible .
53088575 These holders or purchasers take pri ority over an earlier security
53098576 interest, even if perfected, to the extent provided in Articles 3,
53108577 7, and 8, and 12 of this title.
5311-
53128578 (b) This article does not limit the rights of or impose
53138579 liability on a person to the extent that the person is protected
53148580 against the assertion of a claim under Article 8 or 12 of this
53158581 title.
5316-
53178582 (c) Filing under this article does not constitute notice of a
53188583 claim or defense to the holders, or purchasers, or persons described
53198584 in subsections (a) and (b) of this section.
5320-
53218585 SECTION 70. AMENDATORY 12A O.S. 2021, Section 1 -9-332,
53228586 is amended to read as follows:
5323- ENR. H. B. NO. 2776 Page 120
53248587 Section 1-9-332.
5325-
53268588 TRANSFER OF MONEY; TRANSFER OF FUNDS FROM DEPOSIT ACCOUNT
8589+
8590+SENATE FLOOR VERSION - HB2776 SFLR Page 169
8591+(Bold face denotes Committee Amendments) 1
8592+2
8593+3
8594+4
8595+5
8596+6
8597+7
8598+8
8599+9
8600+10
8601+11
8602+12
8603+13
8604+14
8605+15
8606+16
8607+17
8608+18
8609+19
8610+20
8611+21
8612+22
8613+23
8614+24
53278615
53288616 (a) A transferee of money takes the money free of a securit y
53298617 interest unless if the transferee acts receives possession of the
53308618 money without acting in collusion with the debtor in violating the
53318619 rights of the secured party.
5332-
53338620 (b) A transferee of funds from a deposit account takes the
53348621 funds free of a security interes t in the deposit account unless if
53358622 the transferee acts receives the funds without acting in collusion
53368623 with the debtor in violating the rights of the secured party.
5337-
53388624 SECTION 71. AMENDATORY 12A O.S. 2021, Section 1 -9-334,
53398625 is amended to read as follows:
5340-
53418626 Section 1-9-334.
5342-
53438627 PRIORITY OF SECURITY INTERESTS IN FIXTURES AND CROPS
5344-
53458628 (a) A security interest under this article may be created in
53468629 goods that are fixtures or may continue in goods that become
53478630 fixtures. A security interest does not exis t under this article in
53488631 ordinary building materials incorporated into an improvement on
53498632 land.
5350-
53518633 (b) This article does not prevent creation of an encumbrance
53528634 upon fixtures under real property law.
5353-
53548635 (c) In cases not governed by subsections (d) through (h) of
53558636 this section, a security interest in fixtures is subordinate to a
53568637 conflicting interest of an encumbrancer or owner of the related real
53578638 property other than the debtor.
8639+
8640+SENATE FLOOR VERSION - HB2776 SFLR Page 170
8641+(Bold face denotes Committee Amendments) 1
8642+2
8643+3
8644+4
8645+5
8646+6
8647+7
8648+8
8649+9
8650+10
8651+11
8652+12
8653+13
8654+14
8655+15
8656+16
8657+17
8658+18
8659+19
8660+20
8661+21
8662+22
8663+23
8664+24
53588665
53598666 (d) Except as otherwise provided in subsection (h) of this
53608667 section, a perfected security interest in fixtures ha s priority over
53618668 a conflicting interest of an encumbrancer or owner of the real
53628669 property if the debtor has an interest of record in or is in
53638670 possession of the real property and:
5364-
53658671 (1) the security interest is a purchase -money security
53668672 interest;
5367- ENR. H. B. NO. 2776 Page 121
53688673 (2) the interest of the encumbrancer or owner arises before the
53698674 goods become fixtures; and
5370-
53718675 (3) the security interest is perfected by a fixture filing
53728676 before the goods become fixtures or within twenty (20) days
53738677 thereafter.
5374-
53758678 (e) A perfected secu rity interest in fixture s has priority over
53768679 a conflicting interest of an encumbrancer or owner of the real
53778680 property if:
5378-
53798681 (1) the debtor has an interest of record in the real property
53808682 or is in possession of the real property and the security interest:
5381-
53828683 (A) is perfected by a fixture filing before the interest
53838684 of the encumbrancer or owner is of record; and
5384-
53858685 (B) has priority over any conflicting interest of a
53868686 predecessor in title of the encumbrancer or owner;
5387-
53888687 (2) before the goods become fixtures, the security in terest is
53898688 perfected by any method permitted by this article and the fixtures
53908689 are readily removable:
53918690
8691+SENATE FLOOR VERSION - HB2776 SFLR Page 171
8692+(Bold face denotes Committee Amendments) 1
8693+2
8694+3
8695+4
8696+5
8697+6
8698+7
8699+8
8700+9
8701+10
8702+11
8703+12
8704+13
8705+14
8706+15
8707+16
8708+17
8709+18
8710+19
8711+20
8712+21
8713+22
8714+23
8715+24
8716+
53928717 (A) factory or office machines;
5393-
53948718 (B) equipment that is not primarily used or leased for use
53958719 in the operation of the real property; or
5396-
53978720 (C) replacements of domestic appliances that are consumer
53988721 goods;
5399-
54008722 (3) the conflicting interest is a lien on the real property
54018723 obtained by legal or equitable proceedings after the security
54028724 interest was perfected by any method permitted by this article; or
5403-
54048725 (4) the security intere st is:
5405-
54068726 (A) created in a manufactured home in a manufactured -home
54078727 transaction; and
5408-
54098728 (B) perfected pursuant to a statute described in paragraph
54108729 (2) of subsection (a) of Section 1 -9-311 of this
54118730 title.
5412- ENR. H. B. NO. 2776 Page 122
54138731 (f) A security interest in fixtures, whether or not perfec ted,
54148732 has priority over a conflicting interest of an encumbrancer or owner
54158733 of the real property if:
5416-
54178734 (1) the encumbrancer or owner has, in an authenticated a signed
54188735 record, consented to the security interest or disclaimed an interest
54198736 in the goods as fixture s; or
5420-
54218737 (2) the debtor has a right to remove the goods as against the
54228738 encumbrancer or owner.
5423-
54248739 (g) The priority of the security interest under paragraph (2)
54258740 of subsection (f) of this section continues for a reasonable time if
8741+
8742+SENATE FLOOR VERSION - HB2776 SFLR Page 172
8743+(Bold face denotes Committee Amendments) 1
8744+2
8745+3
8746+4
8747+5
8748+6
8749+7
8750+8
8751+9
8752+10
8753+11
8754+12
8755+13
8756+14
8757+15
8758+16
8759+17
8760+18
8761+19
8762+20
8763+21
8764+22
8765+23
8766+24
8767+
54268768 the debtor's right to remove the goods as against the encumbrancer
54278769 or owner terminates.
5428-
54298770 (h) A mortgage is a construction mortgage to the extent that it
54308771 secures an obligation incurred for the construction of an
54318772 improvement on land, including the acquisition cost of the land, if
54328773 a recorded record of the mortgage so indicates. Except as otherwise
54338774 provided in subsections (e) and (f) of this section, a security
54348775 interest in fixtures is subordinate to a construction mortgage if a
54358776 record of the mortgage is recorded before the goods become fixtu res
54368777 and the goods become fixtures before the completion of the
54378778 construction. A mortgage has this priority to the same extent as a
54388779 construction mortgage to the extent that it is given to refinance a
54398780 construction mortgage.
5440-
54418781 (i) A perfected security interest in crops growing on rea l
54428782 property has priority over a conflicting interest of an encumbrancer
54438783 or owner of the real property if the debtor has an interest of
54448784 record in or is in possession of the real property.
5445-
54468785 (j) Subsection (i) of this section prevails o ver any
54478786 inconsistent provisions of other statutes of this state.
5448-
54498787 SECTION 72. AMENDATORY 12A O.S. 2021, Section 1 -9-341,
54508788 is amended to read as follows:
5451-
54528789 Section 1-9-341.
5453-
54548790 BANK'S RIGHTS AND DUTIES WITH RESPECT TO DEPOSIT ACCOUNT
54558791
8792+SENATE FLOOR VERSION - HB2776 SFLR Page 173
8793+(Bold face denotes Committee Amendments) 1
8794+2
8795+3
8796+4
8797+5
8798+6
8799+7
8800+8
8801+9
8802+10
8803+11
8804+12
8805+13
8806+14
8807+15
8808+16
8809+17
8810+18
8811+19
8812+20
8813+21
8814+22
8815+23
8816+24
8817+
54568818 Except as otherwise provided i n subsection (c) of Section 1 -9-
5457-340 of this title, and unless the bank otherwise agrees in an ENR. H. B. NO. 2776 Page 123
8819+340 of this title, and unless the bank otherwise agrees in an
54588820 authenticated a signed record, a bank's rights and duties with
54598821 respect to a deposit account maintained with the bank are not
54608822 terminated, suspended, or modified by:
5461-
54628823 (1) the creation, attachment, or perfection of a security
54638824 interest in the deposit account;
5464-
54658825 (2) the bank's knowledge of the security interest; or
5466-
54678826 (3) the bank's receipt of instructions from the secured party.
5468-
54698827 SECTION 73. AMENDATORY 12A O.S. 2021, Section 1 -9-404,
54708828 is amended to read as follows:
5471-
54728829 Section 1-9-404.
5473-
54748830 RIGHTS ACQUIRED BY ASSIGNEE;
5475-
54768831 CLAIMS AND DEFENSES AGAINST ASSIGNEE
5477-
54788832 (a) Unless an account debtor has made an enforceable agreement
54798833 not to assert defenses or claims, and subject to subsections (b)
54808834 through (e) of this section, the rights of an assignee are subject
54818835 to:
5482-
54838836 (1) all terms of the agreement between the account debtor and
54848837 assignor and any defense or claim in recoupment arising from the
54858838 transaction that gave rise to the contract; and
5486-
54878839 (2) any other defense or claim of the account debtor against
54888840 the assignor which accrues before the account debtor receives a
8841+
8842+SENATE FLOOR VERSION - HB2776 SFLR Page 174
8843+(Bold face denotes Committee Amendments) 1
8844+2
8845+3
8846+4
8847+5
8848+6
8849+7
8850+8
8851+9
8852+10
8853+11
8854+12
8855+13
8856+14
8857+15
8858+16
8859+17
8860+18
8861+19
8862+20
8863+21
8864+22
8865+23
8866+24
8867+
54898868 notification of the assignment authenticated signed by the assignor
54908869 or the assignee.
5491-
54928870 (b) Subject to subsection (c) of this section and except as
54938871 otherwise provided in subsection (d) of this section, the claim of
54948872 an account debtor against an assignor may be asserted against an
54958873 assignee under subsection (a) of this section only to reduce the
54968874 amount the account debtor ow es.
5497-
54988875 (c) This section is subject to law other than this article
54998876 which establishes a different rule for an account debtor who is an
55008877 individual and who incurred the obligation primarily for personal,
55018878 family, or household purposes.
5502- ENR. H. B. NO. 2776 Page 124
55038879 (d) In a consumer transaction, if a record evidences the
55048880 account debtor's obligation, law other than this article requires
55058881 that the record include a statement to the effect that the account
55068882 debtor's recovery against an assignee with respect to claims and
55078883 defenses against the assign or may not exceed amounts paid by the
55088884 account debtor under the record, and the record does not include
55098885 such a statement, the extent to which a claim of an account debtor
55108886 against the assignor may be asserted against an assignee is
55118887 determined as if the record included such a statement.
5512-
55138888 (e) This section does not apply to an assignment of a health -
55148889 care-insurance receivable.
5515-
55168890 SECTION 74. AMENDATORY 12A O.S. 2021, Section 1 -9-406,
55178891 is amended to read as follows:
55188892
8893+SENATE FLOOR VERSION - HB2776 SFLR Page 175
8894+(Bold face denotes Committee Amendments) 1
8895+2
8896+3
8897+4
8898+5
8899+6
8900+7
8901+8
8902+9
8903+10
8904+11
8905+12
8906+13
8907+14
8908+15
8909+16
8910+17
8911+18
8912+19
8913+20
8914+21
8915+22
8916+23
8917+24
8918+
55198919 Section 1-9-406.
5520-
55218920 DISCHARGE OF ACCOUNT DEBTOR; NOTIFICATION OF ASSIGNMENT;
5522-
55238921 IDENTIFICATION AND PROOF OF ASSIGNMENT; RESTRICTIONS ON
5524-
55258922 ASSIGNMENT OF ACCOUNTS, CHATTEL PAPER, PAYMENT
5526-
55278923 INTANGIBLES, AND PROMISSORY NOTES INEFFECTIVE
5528-
55298924 (a) Subject to subsections (b) thro ugh (i) (k) of this section,
55308925 an account debtor on an account, chattel paper, or a payment
55318926 intangible may discharge its obligation by paying the assignor
55328927 until, but not after, the account debtor receives a notification,
55338928 authenticated signed by the assignor or the assignee, that th e
55348929 amount due or to become due has been assigned and that payment is to
55358930 be made to the assignee. After receipt of the notification, the
55368931 account debtor may discharge its obligation by paying the assignee
55378932 and may not discharge the obl igation by paying the assignor.
5538-
55398933 (b) Subject to subsection subsections (h) and (k) of this
55408934 section, notification is ineffective under subsection (a) of this
55418935 section:
5542-
55438936 (1) if it does not reasonably identify the rights assigned;
5544-
55458937 (2) to the extent that an ag reement between an accou nt debtor
5546-and a seller of a payment intangible limits the account debtor's ENR. H. B. NO. 2776 Page 125
8938+and a seller of a payment intangible limits the account debtor's
55478939 duty to pay a person other than the seller and the limitation is
55488940 effective under law other than this article; or
8941+
8942+SENATE FLOOR VERSION - HB2776 SFLR Page 176
8943+(Bold face denotes Committee Amendments) 1
8944+2
8945+3
8946+4
8947+5
8948+6
8949+7
8950+8
8951+9
8952+10
8953+11
8954+12
8955+13
8956+14
8957+15
8958+16
8959+17
8960+18
8961+19
8962+20
8963+21
8964+22
8965+23
8966+24
55498967
55508968 (3) at the option of an account debtor, if the notification
55518969 notifies the account debtor to make less than the full amount of any
55528970 installment or other periodic payment to the assignee, even if:
5553-
55548971 (A) only a portion of the account, chattel paper, or
55558972 general intangible has been assigned to that assignee ;
5556-
55578973 (B) a portion has been assigned to another assignee; or
5558-
55598974 (C) the account debtor knows that the assignment to that
55608975 assignee is limited.
5561-
55628976 (c) Subject to subsection subsections (h) and (k) of this
55638977 section, if requested by the account debtor, an assignee shal l
55648978 seasonably furnish reasonable proof that the assignment has been
55658979 made. Unless the assignee complies, the account debtor may
55668980 discharge its obligation by paying the assignor, even if the account
55678981 debtor has received a notification under subsection (a) of t his
55688982 section.
5569-
55708983 (d) (1) In this subsection, "promissory note" includes a
55718984 negotiable instrument that evidences chattel paper. Except as
55728985 otherwise provided in paragraph (2) of this subsection and
55738986 subsection subsections (e) and (j) of this section and Section s 2A-
55748987 303 and 1-9-407 of this title, and subject to subsection (h) of this
55758988 section, a term in an agreement between an account debtor and an
55768989 assignor or in a promissory note is ineffective to the extent that
55778990 it:
55788991
8992+SENATE FLOOR VERSION - HB2776 SFLR Page 177
8993+(Bold face denotes Committee Amendments) 1
8994+2
8995+3
8996+4
8997+5
8998+6
8999+7
9000+8
9001+9
9002+10
9003+11
9004+12
9005+13
9006+14
9007+15
9008+16
9009+17
9010+18
9011+19
9012+20
9013+21
9014+22
9015+23
9016+24
9017+
55799018 (A) prohibits, restricts, or requires the cons ent of the
55809019 account debtor or person obligated on the promissory
55819020 note to the assignment or transfer of, or the
55829021 creation, attachment, perfection, or enforcement of a
55839022 security interest in, the account, chattel paper,
55849023 payment intangible, or promissory note; or
5585-
55869024 (B) provides that the assignment or transfer or the
55879025 creation, attachment, perfection, or enforcement of
55889026 the security interest may give rise to a default,
55899027 breach, right of recoupment, claim, defense,
5590-termination, right of termination, or remedy under the ENR. H. B. NO. 2776 Page 126
9028+termination, right of termination, or remedy under the
55919029 account, chattel paper, p ayment intangible, or
55929030 promissory note.
5593-
55949031 (2) This subsection does not apply to the assignment or
55959032 transfer of or creation of a security interest in the following:
5596-
55979033 (A) a claim or right to receive compensation for injuries
55989034 or sickness as described in 26 U.S.C., Section 104
55999035 (a)(1) or (2), as amended from time to time;
5600-
56019036 (B) a claim or right to receive benefits under a special
56029037 needs trust as described in 42 U.S.C., Section
56039038 1396p(d)(4), as amended from time to time; or
5604-
56059039 (C) a structured settlement payment right as de fined in
56069040 paragraph 16 of Section 3239 of Title 12 of the
56079041 Oklahoma Statutes to the extent of any conflict
9042+
9043+SENATE FLOOR VERSION - HB2776 SFLR Page 178
9044+(Bold face denotes Committee Amendments) 1
9045+2
9046+3
9047+4
9048+5
9049+6
9050+7
9051+8
9052+9
9053+10
9054+11
9055+12
9056+13
9057+14
9058+15
9059+16
9060+17
9061+18
9062+19
9063+20
9064+21
9065+22
9066+23
9067+24
9068+
56089069 between the Uniform Commercial Code and the Structured
56099070 Settlement Protection Act of 2001.
5610-
56119071 (e) Subsection (d) of this section d oes not apply to the sale
56129072 of a payment intangible or promissory note, other than a sale
56139073 pursuant to a disposition under Section 1 -9-610 of this title or an
56149074 acceptance of collateral under Section 1 -9-620 of this title.
5615-
56169075 (f) Except as otherwise provided in subsection (j) of this
56179076 section and Sections 2A-303 and 1-9-407 of this title and subject to
56189077 subsections (h) and (i) of this section, a rule of law, statute, or
56199078 regulation, that prohibits, restricts, or requires the consent of a
56209079 government, governmental body or official, or account debtor to the
56219080 assignment or transfer of, or creation of a security interest in, an
56229081 account or chattel paper is ineffective to the extent that the rule
56239082 of law, statute, or regulation:
5624-
56259083 (1) prohibits, restricts, or requires the conse nt of the
56269084 government, governmental body or official, or account debtor to the
56279085 assignment or transfer of, or the creation, attachment, perfection,
56289086 or enforcement of a security interest in, the account or chattel
56299087 paper; or
5630-
56319088 (2) provides that the assignment o r transfer or the creation,
56329089 attachment, perfection, or enforcement of the security interest may
56339090 give rise to a default, breach, right of recoupment, claim, defense,
56349091 termination, right of termination, or remedy under the account or
5635-chattel paper. ENR. H. B. NO. 2776 Page 127
9092+chattel paper.
9093+
9094+SENATE FLOOR VERSION - HB2776 SFLR Page 179
9095+(Bold face denotes Committee Amendments) 1
9096+2
9097+3
9098+4
9099+5
9100+6
9101+7
9102+8
9103+9
9104+10
9105+11
9106+12
9107+13
9108+14
9109+15
9110+16
9111+17
9112+18
9113+19
9114+20
9115+21
9116+22
9117+23
9118+24
56369119
56379120 (g) Subject to subsection subsections (h) and (k) of this
56389121 section, an account debtor may not waive or vary its option under
56399122 paragraph (3) of subsection (b) of this section.
5640-
56419123 (h) This section is subject to law other than this article
56429124 which establishes a different ru le for an account debtor who is an
56439125 individual and who incurred the obligation primarily for personal,
56449126 family, or household purposes.
5645-
56469127 (i) This section does not apply to an assignment of a health -
56479128 care-insurance receivable.
5648-
56499129 (j) Subsections (d) and (f) of th is section do not apply to a
56509130 security interest in an ownership interest in a general partnership,
56519131 limited partnership, or limited liability company.
5652-
56539132 (k) Subsections (a), (b), (c), and (g) of this section do not
56549133 apply to a controllable account or controlla ble payment intangible.
5655-
56569134 SECTION 75. AMENDATORY 12A O.S. 2021, Section 1 -9-408,
56579135 is amended to read as follows:
5658-
56599136 Section 1-9-408.
5660-
56619137 RESTRICTIONS ON ASSIGNMENT OF PROMISSORY
5662-
56639138 NOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND
5664-
56659139 CERTAIN GENERAL INTANGIBLES INEFFECTIVE
5666-
56679140 (a) Except as otherwise provided in subsection subsections (b)
56689141 and (f) of this section, a term in a promissory note or in an
56699142 agreement between an account debtor and a debtor which relates to a
56709143 health-care-insurance receivable or a g eneral intangible, including
9144+
9145+SENATE FLOOR VERSION - HB2776 SFLR Page 180
9146+(Bold face denotes Committee Amendments) 1
9147+2
9148+3
9149+4
9150+5
9151+6
9152+7
9153+8
9154+9
9155+10
9156+11
9157+12
9158+13
9159+14
9160+15
9161+16
9162+17
9163+18
9164+19
9165+20
9166+21
9167+22
9168+23
9169+24
9170+
56719171 a contract, permit, license, or franchise, and which term prohibits,
56729172 restricts, or requires the consent of the person obligated on the
56739173 promissory note or the account debtor to, the assignment or transfer
56749174 of, or creation, attach ment, or perfection of a security interest
56759175 in, the promissory note, health -care-insurance receivable, or
56769176 general intangible, is ineffective to the extent that the term:
5677-
56789177 (1) would impair the creation, attachment, or perfection of a
56799178 security interest; or
5680- ENR. H. B. NO. 2776 Page 128
56819179 (2) provides that the assignment or transfer or the creation,
56829180 attachment, or perfection of the security interest may give rise to
56839181 a default, breach, right of recoupment, claim, defense, termination,
56849182 right of termination, or remedy under the promissory note, health-
56859183 care-insurance receivable, or general intangible.
5686-
56879184 (b) Subsection (a) of this section applies to a security
56889185 interest in a payment intangible or promissory note only if the
56899186 security interest arises out of a sale of the payment intangible or
56909187 promissory note, other than a sale pursuant to a disposition under
56919188 Section 1-9-610 of this title or an acceptance of collateral under
56929189 Section 1-9-620 of this title.
5693-
56949190 (c) A Except as otherwise provided in subsection (f) of this
56959191 section, a rule of law, statute, or r egulation, that prohibit s,
56969192 restricts, or requires the consent of a government, governmental
56979193 body or official, person obligated on a promissory note, or account
56989194 debtor to the assignment or transfer of, or creation of a security
9195+
9196+SENATE FLOOR VERSION - HB2776 SFLR Page 181
9197+(Bold face denotes Committee Amendments) 1
9198+2
9199+3
9200+4
9201+5
9202+6
9203+7
9204+8
9205+9
9206+10
9207+11
9208+12
9209+13
9210+14
9211+15
9212+16
9213+17
9214+18
9215+19
9216+20
9217+21
9218+22
9219+23
9220+24
9221+
56999222 interest in, a promissory not e, health-care-insurance receivable, or
57009223 general intangible, including a contract, permit, license, or
57019224 franchise between an account debtor and a debtor, is ineffective to
57029225 the extent that the rule of law, statute, or regulation:
5703-
57049226 (1) would impair the creatio n, attachment, or perfec tion of a
57059227 security interest; or
5706-
57079228 (2) provides that the assignment or transfer or the creation,
57089229 attachment, or perfection of the security interest may give rise to
57099230 a default, breach, right of recoupment, claim, defense, termination,
57109231 right of termination, or remedy under the promissory note, health -
57119232 care-insurance receivable, or general intangible.
5712-
57139233 (d) To the extent that a term in a promissory note or in an
57149234 agreement between an account debtor and a debtor which relates to a
57159235 health-care-insurance receivable or general intangible or a rule of
57169236 law, statute, or regulation described in subsection (c) of this
57179237 section would be effective under law other than this article but is
57189238 ineffective under subsection (a) or (c) of this section, the
57199239 creation, attachment, or perfection of a security interest in the
57209240 promissory note, health -care-insurance receivable, or general
57219241 intangible:
5722-
57239242 (1) is not enforceable against the person obligated on the
57249243 promissory note or the account debtor;
5725- ENR. H. B. NO. 2776 Page 129
57269244 (2) does not impose a duty or obligation on th e person
57279245 obligated on the promissory note or the account debtor;
9246+
9247+SENATE FLOOR VERSION - HB2776 SFLR Page 182
9248+(Bold face denotes Committee Amendments) 1
9249+2
9250+3
9251+4
9252+5
9253+6
9254+7
9255+8
9256+9
9257+10
9258+11
9259+12
9260+13
9261+14
9262+15
9263+16
9264+17
9265+18
9266+19
9267+20
9268+21
9269+22
9270+23
9271+24
57289272
57299273 (3) does not require the person obligated on the promissory
57309274 note or the account debtor to recognize the security interest, pay
57319275 or render performance to the secured pa rty, or accept payment or
57329276 performance from the secured party;
5733-
57349277 (4) does not entitle the secured party to use or assign the
57359278 debtor's rights under the promissory note, health -care-insurance
57369279 receivable, or general intangible, including any related information
57379280 or materials furnished to the debtor in the transaction giving rise
57389281 to the promissory note, health -care-insurance receivable, or general
57399282 intangible;
5740-
57419283 (5) does not entitle the secured party to use, assign, possess,
57429284 or have access to any trade secrets or co nfidential information of
57439285 the person obligated on the promissory note or the account debtor;
57449286 and
5745-
57469287 (6) does not entitle the secured party to enforce the security
57479288 interest in the promissory note, health -care-insurance receivable,
57489289 or general intangible.
5749-
57509290 (e) Subsections (a) and (c) of this section do not apply to the
57519291 assignment or transfer of or creation of a security interest in:
5752-
57539292 (1) a claim or right to receive compensation for injuries or
57549293 sickness as described in 26 U.S.C., Section 104(a)(1) or (2), as
57559294 amended from time to time;
57569295
9296+SENATE FLOOR VERSION - HB2776 SFLR Page 183
9297+(Bold face denotes Committee Amendments) 1
9298+2
9299+3
9300+4
9301+5
9302+6
9303+7
9304+8
9305+9
9306+10
9307+11
9308+12
9309+13
9310+14
9311+15
9312+16
9313+17
9314+18
9315+19
9316+20
9317+21
9318+22
9319+23
9320+24
9321+
57579322 (2) a claim or right to receive benefits under a special needs
57589323 trust as described in 42 U.S.C., Section 1396p(d)(4), as amended
57599324 from time to time; or
5760-
57619325 (3) a structured settlement payment right as defined in
57629326 paragraph 16 of Section 3 239 of Title 12 of the O klahoma Statutes to
57639327 the extent of any conflict between the Uniform Commercial Code and
57649328 the Structured Settlement Protection Act of 2001.
5765-
57669329 (f) This section does not apply to a security interest in an
57679330 ownership interest in a general p artnership, limited partnership, or
57689331 limited liability company.
5769- ENR. H. B. NO. 2776 Page 130
57709332 (g) As used in this section, "promissory note" includes a
57719333 negotiable instrument that evidences chattel paper.
5772-
57739334 SECTION 76. AMENDATORY 12A O.S. 2021, Section 1 -9-509,
57749335 is amended to read as foll ows:
5775-
57769336 Section 1-9-509.
5777-
57789337 PERSONS ENTITLED TO FILE A RECORD
5779-
57809338 (a) A person may file an initial financing statement, amendment
57819339 that adds collateral covered by a financing statement, or amendment
57829340 that adds a debtor to a financing statement only if:
5783-
57849341 (1) the debtor authorizes the filing in an authenticated a
57859342 signed record; or
5786-
57879343 (2) the person holds an agricultural lien that has become
57889344 effective at the time of filing and the financing statement covers
57899345 only collateral in which the person holds an agricultural lien.
57909346
9347+SENATE FLOOR VERSION - HB2776 SFLR Page 184
9348+(Bold face denotes Committee Amendments) 1
9349+2
9350+3
9351+4
9352+5
9353+6
9354+7
9355+8
9356+9
9357+10
9358+11
9359+12
9360+13
9361+14
9362+15
9363+16
9364+17
9365+18
9366+19
9367+20
9368+21
9369+22
9370+23
9371+24
9372+
57919373 (b) By authenticating signing or becoming bound as a debtor by
57929374 a security agreement, a debtor or new debtor authorizes the filing
57939375 of an initial financing statement, and an amendment, covering:
5794-
57959376 (1) the collateral described in the sec urity agreement; and
5796-
57979377 (2) property that becomes collateral under paragraph (2) of
57989378 subsection (a) of Section 1 -9-315 of this title, whether or not the
57999379 security agreement expressly covers proceeds.
5800-
58019380 (c) By acquiring collateral in which a security interest or
58029381 agricultural lien conti nues under paragraph (1) of subsection (a) of
58039382 Section 1-9-315 of this title, a debtor authorizes the filing of an
58049383 initial financing statement, and an amendment, covering the
58059384 collateral and property that becomes collateral under para graph (2)
58069385 of subsection (a) of Section 1 -9-315 of this title.
5807-
58089386 (d) A person may file an amendment other than an amendment that
58099387 adds collateral covered by a financing statement or an amendment
58109388 that adds a debtor to a financing statement only if:
5811-
58129389 (1) the secured party of record au thorizes the filing; or
5813- ENR. H. B. NO. 2776 Page 131
58149390 (2) the amendment is a termination statement for a financing
58159391 statement for which the secured party of record has failed to file
58169392 or send a termination statement as required by subsection (a) or (c)
58179393 of Section 1-9-513 of this title, the debtor authorizes the filing,
58189394 and the termination statement indicates that the debtor authorized
58199395 it to be filed.
58209396
9397+SENATE FLOOR VERSION - HB2776 SFLR Page 185
9398+(Bold face denotes Committee Amendments) 1
9399+2
9400+3
9401+4
9402+5
9403+6
9404+7
9405+8
9406+9
9407+10
9408+11
9409+12
9410+13
9411+14
9412+15
9413+16
9414+17
9415+18
9416+19
9417+20
9418+21
9419+22
9420+23
9421+24
9422+
58219423 (e) If there is more than one secured party of record for a
58229424 financing statement, each secured party of record may authorize the
58239425 filing of an amendment under subsection (d) of this section.
5824-
58259426 SECTION 77. AMENDATORY 12A O.S. 2021, Section 1 -9-513,
58269427 is amended to read as follows:
5827-
58289428 Section 1-9-513.
5829-
58309429 TERMINATION STATEMENT
5831-
58329430 (a) A secured party shall caus e the secured party of record for
58339431 a financing statement to file a termination statement for the
58349432 financing statement if the financing statement covers consumer goods
58359433 and:
5836-
58379434 (1) there is no obligation secured by the collateral covered by
58389435 the financing stateme nt and no commitment to make an advance, incur
58399436 an obligation, or otherwise give value; or
5840-
58419437 (2) the debtor did not authorize the filing of the initial
58429438 financing statement.
5843-
58449439 (b) To comply with subsection (a) of this section, a secured
58459440 party shall cause the s ecured party of record to file the
58469441 termination statement:
5847-
58489442 (1) within one (1) month after there is no obligation secured
58499443 by the collateral covered by the financing statement and no
58509444 commitment to make an advance, incur an obligation, or otherwise
58519445 give value; or
58529446
9447+SENATE FLOOR VERSION - HB2776 SFLR Page 186
9448+(Bold face denotes Committee Amendments) 1
9449+2
9450+3
9451+4
9452+5
9453+6
9454+7
9455+8
9456+9
9457+10
9458+11
9459+12
9460+13
9461+14
9462+15
9463+16
9464+17
9465+18
9466+19
9467+20
9468+21
9469+22
9470+23
9471+24
9472+
58539473 (2) if earlier, within twenty (20) days after the secured party
58549474 receives an authenticated a signed demand from a debtor.
5855-
58569475 (c) In cases not governed by subsection (a) of this section,
58579476 within twenty (20) days after a secured party receives an
5858-authenticated a signed demand from a debtor, the secured party shall ENR. H. B. NO. 2776 Page 132
9477+authenticated a signed demand from a debtor, the secured party shall
58599478 cause the secured party of record for a financing statement to send
58609479 to the debtor a termination statement for the financing statement or
58619480 file the termination statement in the filing office if:
5862-
58639481 (1) except in the case of a financing statement covering
58649482 accounts or chattel paper that has been sold or goods that are the
58659483 subject of a consignment, there is no obligation secured by the
58669484 collateral covered by the financing statement and no commitment to
58679485 make an advance, incur an obligation, or otherwise give value;
5868-
58699486 (2) the financing statement covers accounts or chattel paper
58709487 that has been sold but as to which the account debtor or other
58719488 person obligated has discharged its obligation;
5872-
58739489 (3) the financing stat ement covers goods that were the subject
58749490 of a consignment to the debtor but are not in the debtor's
58759491 possession; or
5876-
58779492 (4) the debtor did not authorize the filing of the initial
58789493 financing statement.
5879-
58809494 (d) Except as otherwise provided in Section 1 -9-510 of this
58819495 title, upon the filing of a termination statement with the filing
58829496 office, the financing statement to which the termination statement
9497+
9498+SENATE FLOOR VERSION - HB2776 SFLR Page 187
9499+(Bold face denotes Committee Amendments) 1
9500+2
9501+3
9502+4
9503+5
9504+6
9505+7
9506+8
9507+9
9508+10
9509+11
9510+12
9511+13
9512+14
9513+15
9514+16
9515+17
9516+18
9517+19
9518+20
9519+21
9520+22
9521+23
9522+24
9523+
58839524 relates ceases to be effective. Except as otherwise provided in
58849525 Section 1-9-510 of this title, for purposes of subsection (g) of
58859526 Section 1-9-519, subsection (a) of Section 1 -9-522, and subsection
58869527 (c) of Section 1-9-523 of this title, the filing with the filing
58879528 office of a termination statement relating to a financing statement
58889529 that indicates that the debtor is a transmitting utility also causes
58899530 the effectiveness of the financing statement to lapse.
5890-
58919531 SECTION 78. AMENDATORY 12A O.S. 2021, Section 1 -9-601,
58929532 is amended to read as follows:
5893-
58949533 Section 1-9-601.
5895-
58969534 RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT;
5897-
58989535 CONSIGNOR OR BUYER OF ACCOUNTS, CHATTEL PAPER,
5899-
59009536 PAYMENT INTANGIBLES, OR PROMISSORY NOTES
5901-
59029537 (a) After default, a secured party has the rights provided in
5903-this part and, except as otherwise p rovided in Section 1-9-602 of ENR. H. B. NO. 2776 Page 133
9538+this part and, except as otherwise provided in Section 1 -9-602 of
59049539 this title, those provided by agreement of the parties. A secured
59059540 party:
5906-
59079541 (1) may reduce a claim to judgment, foreclose, or otherwise
59089542 enforce the claim, security interest, or agricultural lien by any
59099543 available judicial procedure, but Section 686 of Title 12 of the
59109544 Oklahoma Statutes, shall not apply to the enforcement of a cl aim,
59119545 security interest, or agricultural lien under this article except as
59129546 provided in Section 1 -9-604 of this title where the procedure is in
9547+
9548+SENATE FLOOR VERSION - HB2776 SFLR Page 188
9549+(Bold face denotes Committee Amendments) 1
9550+2
9551+3
9552+4
9553+5
9554+6
9555+7
9556+8
9557+9
9558+10
9559+11
9560+12
9561+13
9562+14
9563+15
9564+16
9565+17
9566+18
9567+19
9568+20
9569+21
9570+22
9571+23
9572+24
9573+
59139574 accordance with the rights of the parties with respect to real
59149575 property; and
5915-
59169576 (2) if the collateral is documents, may proceed either as to
59179577 the documents or as to the goods they cover.
5918-
59199578 (b) A secured party in possession of collateral or control of
59209579 collateral under Section 7 -106, 1-9-104, 1-9-105, 1-9-106, or 1-9-
59219580 107, or 1-9-107A of this title has the rights and duties provided in
59229581 Section 1-9-207 of this title.
5923-
59249582 (c) The rights under subsections (a) and (b) of this section
59259583 are cumulative and may be exercised simultaneously.
5926-
59279584 (d) Except as otherwise provided in subsection (g) of this
59289585 section and Section 1-9-605 of this title, after default, a debtor
59299586 and an obligor have the rights provided in this part and by
59309587 agreement of the parties.
5931-
59329588 (e) If a secured party has reduced its claim to judgment, the
59339589 lien of any levy that may be made upon the collateral b y virtue of
59349590 an execution based upon the judgment relates back to the earliest
59359591 of:
5936-
59379592 (1) the date of perfection of the security interest or
59389593 agricultural lien in the collateral;
5939-
59409594 (2) the date of filing a financing statement covering the
59419595 collateral; or
5942-
59439596 (3) any date specified in a statute under which the
59449597 agricultural lien was created.
59459598
9599+SENATE FLOOR VERSION - HB2776 SFLR Page 189
9600+(Bold face denotes Committee Amendments) 1
9601+2
9602+3
9603+4
9604+5
9605+6
9606+7
9607+8
9608+9
9609+10
9610+11
9611+12
9612+13
9613+14
9614+15
9615+16
9616+17
9617+18
9618+19
9619+20
9620+21
9621+22
9622+23
9623+24
9624+
59469625 (f) A sale pursuant to an execution is a foreclosure of the
59479626 security interest or agricultural lien by judicial procedure within
5948-the meaning of this section. A secured party may purchase at the ENR. H. B. NO. 2776 Page 134
9627+the meaning of this section. A secured party may purchase at the
59499628 sale and thereafter hold the collateral free of any other
59509629 requirements of this article.
5951-
59529630 (g) Except as otherwise provided in subsection (c) of Section
59539631 1-9-607 of this title, this part imposes no duties upon a secured
59549632 party that is a consign or or is a buyer of accounts, chattel paper,
59559633 payment intangibles, or promissory notes.
5956-
59579634 SECTION 79. AMENDATORY 12A O.S. 2021, Section 1 -9-605,
59589635 is amended to read as follows:
5959-
59609636 Section 1-9-605.
5961-
59629637 UNKNOWN DEBTOR OR SECONDARY OBLIGOR
5963-
59649638 A (a) Except as provided in subsection (b) of this section, a
59659639 secured party does not owe a duty based on its status as secured
59669640 party:
5967-
59689641 (1) to a person that is a debtor or obligor, unless the secured
59699642 party knows:
5970-
59719643 (A) that the person is a debtor or obligor;
5972-
59739644 (B) the identity of the person; and
5974-
59759645 (C) how to communicate with the person; or
5976-
59779646 (2) to a secured party or lienholder that has filed a financing
59789647 statement against a person, unless the secured party knows:
5979-
59809648 (A) that the person is a debtor; and
59819649
9650+SENATE FLOOR VERSION - HB2776 SFLR Page 190
9651+(Bold face denotes Committee Amendments) 1
9652+2
9653+3
9654+4
9655+5
9656+6
9657+7
9658+8
9659+9
9660+10
9661+11
9662+12
9663+13
9664+14
9665+15
9666+16
9667+17
9668+18
9669+19
9670+20
9671+21
9672+22
9673+23
9674+24
9675+
59829676 (B) the identity of the person.
5983-
59849677 (b) A secured party owes a duty based on its status as a
59859678 secured party to a person if, at the time the secured party obtains
59869679 control of collateral that is a controllable account, controllable
59879680 electronic record, or controllable payment intangi ble or at the time
59889681 the security interest attaches to the collateral, whichever is
59899682 later:
5990-
59919683 (1) the person is a debtor or obligor; and
5992- ENR. H. B. NO. 2776 Page 135
59939684 (2) the secured party knows that the information in
59949685 subparagraph (A), (B), or (C) of paragraph (1) of subsection (a) of
59959686 this section relating to t he person is not provided by the
59969687 collateral, a record attached to or logically associated with the
59979688 collateral, or the system in which the collateral is recorded.
5998-
59999689 SECTION 80. AMENDATORY 12A O.S. 2021, Section 1-9-608,
60009690 is amended to read as follows:
6001-
60029691 Section 1-9-608.
6003-
60049692 APPLICATION OF PROCEEDS OF COLLECTION OR ENFORCEMENT;
6005-
60069693 LIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS
6007-
60089694 (a) If a security interest or agricultural lien secures payment
60099695 or performance of an obligation, the following rules appl y:
6010-
60119696 (1) A secured party shall apply or pay over for application the
60129697 cash proceeds of collection or enforcement under this section in the
60139698 following order to:
9699+
9700+SENATE FLOOR VERSION - HB2776 SFLR Page 191
9701+(Bold face denotes Committee Amendments) 1
9702+2
9703+3
9704+4
9705+5
9706+6
9707+7
9708+8
9709+9
9710+10
9711+11
9712+12
9713+13
9714+14
9715+15
9716+16
9717+17
9718+18
9719+19
9720+20
9721+21
9722+22
9723+23
9724+24
60149725
60159726 (A) the reasonable expenses of collection and enforcement
60169727 and, to the extent provided for by agreement and not
60179728 prohibited by law, reasonable attorney's attorney fees
60189729 and legal expenses incurred by the secured party;
6019-
60209730 (B) the satisfaction of obligations secured by the
60219731 security interest or agricultural lien under which the
60229732 collection or enforcement is made ; and
6023-
60249733 (C) the satisfaction of obligations secured by any
60259734 subordinate security interest in or other lien on the
60269735 collateral subject to the security interest or
60279736 agricultural lien under which the collection or
60289737 enforcement is made if the secured party receives an
60299738 authenticated a signed demand for proceeds before
60309739 distribution of the proceeds is completed.
6031-
60329740 (2) If requested by a secured party, a holder of a subordinate
60339741 security interest or other lien shall furnish reasonable proof of
60349742 the interest or lien within a reasonable time. Unless the holder
60359743 complies, the secured party need not comply with the holder's demand
60369744 under subparagraph (C) of paragraph (1) of this subsection.
6037- ENR. H. B. NO. 2776 Page 136
60389745 (3) A secured party need not apply or pay over for application
60399746 noncash proceeds of collection and enforcement under this section
60409747 unless the failure to do so would be commercially unreasonable. A
60419748 secured party that applies or pays over for application noncash
60429749 proceeds shall do so in a commercially reasonable manner.
60439750
9751+SENATE FLOOR VERSION - HB2776 SFLR Page 192
9752+(Bold face denotes Committee Amendments) 1
9753+2
9754+3
9755+4
9756+5
9757+6
9758+7
9759+8
9760+9
9761+10
9762+11
9763+12
9764+13
9765+14
9766+15
9767+16
9768+17
9769+18
9770+19
9771+20
9772+21
9773+22
9774+23
9775+24
9776+
60449777 (4) A secured party shall a ccount to and pay a debtor for any
60459778 surplus, and the obligor is liable for any deficiency.
6046-
60479779 (b) If the underlying transaction is a sale of accounts,
60489780 chattel paper, payment intangibles, or promissory notes, the debtor
60499781 is not entitled to any surplus, and the obligor is not liable for
60509782 any deficiency.
6051-
60529783 SECTION 81. AMENDATORY 12A O.S. 2021, Section 1 -9-611,
60539784 is amended to read as follows:
6054-
60559785 Section 1-9-611.
6056-
60579786 NOTIFICATION BEFORE DISPOSITION OF COLLATERAL
6058-
60599787 (a) In this section, "notification date " means the earlier of
60609788 the date on which:
6061-
60629789 (1) a secured party sends to the debtor and any secondary
60639790 obligor an authenticated a signed notification of disposition; or
6064-
60659791 (2) the debtor and any secondary obligor waive the right to
60669792 notification.
6067-
60689793 (b) Except as otherwise provided in subsection (d) of this
60699794 section, a secured party that disposes of collateral under Section
60709795 1-9-610 of this title shall send to the persons specified in
60719796 subsection (c) of this section a reasonable authenticated signed
60729797 notification of disposition.
6073-
60749798 (c) To comply with subsection (b) of this section, the secured
60759799 party shall send an authenticated a signed notification of
60769800 disposition to:
60779801
9802+SENATE FLOOR VERSION - HB2776 SFLR Page 193
9803+(Bold face denotes Committee Amendments) 1
9804+2
9805+3
9806+4
9807+5
9808+6
9809+7
9810+8
9811+9
9812+10
9813+11
9814+12
9815+13
9816+14
9817+15
9818+16
9819+17
9820+18
9821+19
9822+20
9823+21
9824+22
9825+23
9826+24
9827+
60789828 (1) the debtor;
6079-
60809829 (2) any secondary obligor; and
6081-
6082-(3) if the collateral is other than consumer g oods: ENR. H. B. NO. 2776 Page 137
6083-
9830+(3) if the collateral is other than consumer goods:
60849831 (A) any other person from which the secured party has
60859832 received, before the notification date, an
60869833 authenticated a signed notification of a claim of an
60879834 interest in the collateral;
6088-
60899835 (B) any other secured party or lienholder that, ten (10)
60909836 days before the notifica tion date, held a security
60919837 interest in or other lien on the collateral perfected
60929838 by the filing of a financing statement that:
6093-
60949839 (i) identified the collateral;
6095-
60969840 (ii) was indexed under the debtor's name as of that
60979841 date; and
6098-
60999842 (iii) was filed in the office in which to file a
61009843 financing statement against the debtor covering
61019844 the collateral as of that date; and
6102-
61039845 (C) any other secured party that, ten (10) days before the
61049846 notification date, held a security interest in the
61059847 collateral perfected by co mpliance with a statute,
61069848 regulation, or treaty described in subsection (a) of
61079849 Section 1-9-311 of this title.
61089850
9851+SENATE FLOOR VERSION - HB2776 SFLR Page 194
9852+(Bold face denotes Committee Amendments) 1
9853+2
9854+3
9855+4
9856+5
9857+6
9858+7
9859+8
9860+9
9861+10
9862+11
9863+12
9864+13
9865+14
9866+15
9867+16
9868+17
9869+18
9870+19
9871+20
9872+21
9873+22
9874+23
9875+24
9876+
61099877 (d) Subsection (b) of this section does not apply if the
61109878 collateral is perishable or threatens to decline speedily in value
61119879 or is of a type custom arily sold on a recognized market.
6112-
61139880 (e) A secured party complies with the requirement for
61149881 notification prescribed by subparagraph (B) of paragraph (3) of
61159882 subsection (c) of this section if:
6116-
61179883 (1) not later than twenty (20) days or earlier than thirty (30)
61189884 days before the notificati on date, the secured party requests, in a
61199885 commercially reasonable manner, information concerning financing
61209886 statements indexed under the debtor's name in the office indicated
61219887 in subparagraph (B) of paragraph (3) of subsection (c) of this
61229888 section; and
6123-
61249889 (2) before the notification date, the secured party:
6125-
61269890 (A) did not receive a response to the request for
6127-information; or ENR. H. B. NO. 2776 Page 138
6128-
9891+information; or
61299892 (B) received a response to the request for information and
61309893 sent an authenticated a signed notification of
61319894 disposition to each secured party or other lienholder
61329895 named in that response whose financing statement
61339896 covered the collateral.
6134-
61359897 SECTION 82. AMENDATORY 12A O.S. 2021, Section 1 -9-613,
61369898 is amended to read as follows:
6137-
61389899 Section 1-9-613.
6139-
61409900 CONTENTS AND FORM OF NOTIFICATION
61419901
9902+SENATE FLOOR VERSION - HB2776 SFLR Page 195
9903+(Bold face denotes Committee Amendments) 1
9904+2
9905+3
9906+4
9907+5
9908+6
9909+7
9910+8
9911+9
9912+10
9913+11
9914+12
9915+13
9916+14
9917+15
9918+16
9919+17
9920+18
9921+19
9922+20
9923+21
9924+22
9925+23
9926+24
9927+
61429928 BEFORE DISPOSITION OF COLLATERAL: GENERAL
6143-
61449929 (a) Except in a consumer -goods transaction, the following rules
61459930 apply:
6146-
61479931 (1) The contents of a notification of disposition are
61489932 sufficient if the notification:
6149-
61509933 (A) describes the debtor and the secured party;
6151-
61529934 (B) describes the collateral that is the subject of the
61539935 intended disposition;
6154-
61559936 (C) states the method of intended disposition;
6156-
61579937 (D) states that the debtor is entitled to an accounting of
61589938 the unpaid indebtedness and states the charge, if any,
61599939 for an accounting; and
6160-
61619940 (E) states the time and place of a public disposition or
61629941 the time after which any other disposition is to be
61639942 made.
6164-
61659943 (2) Whether the contents of a notification that lacks any of
61669944 the information specified in paragraph (1) of this section are
61679945 nevertheless sufficient is a question of fact.
6168-
61699946 (3) The contents of a notification providing substantially the
61709947 information specified in paragraph (1) of this section are
61719948 sufficient, even if the notification includes:
6172- ENR. H. B. NO. 2776 Page 139
61739949 (A) information not specified by t hat paragraph; or
6174-
61759950 (B) minor errors that are not seriously misleading.
6176-
61779951 (4) A particular phrasing of the notification is not required.
9952+
9953+SENATE FLOOR VERSION - HB2776 SFLR Page 196
9954+(Bold face denotes Committee Amendments) 1
9955+2
9956+3
9957+4
9958+5
9959+6
9960+7
9961+8
9962+9
9963+10
9964+11
9965+12
9966+13
9967+14
9968+15
9969+16
9970+17
9971+18
9972+19
9973+20
9974+21
9975+22
9976+23
9977+24
61789978
61799979 (5) The following form of notification and the form appearing
61809980 in paragraph (3) of subsection (a) of Section 1-9-614 of this title,
61819981 when completed in accordance with the instructions in subsection (b)
61829982 of this section and subsection (b) of Section 1 -9-614 of this title,
61839983 each provides sufficient information:
6184-
61859984 NOTIFICATION OF DISPOSITION OF COLLATERAL
6186-
61879985 To: [Name of debtor, obligor , or other person to which the
61889986 notification is sent]
6189-
61909987 ____________________________________________________
6191-
61929988 ____________________________________________________
6193-
61949989 From: [Name, address, and telephone number of secured party]
6195-
61969990 ____________________________________ ________________
6197-
61989991 ____________________________________________________
6199-
62009992 Name of Debtor(s):
6201-
62029993 [Include only if debtor(s) are not an addressee]
6203-
62049994 ____________________________________________________
6205-
62069995 [For a public disposition:]
6207-
62089996 We will sell [or lease or license, as applicable] the [describe
62099997 collateral] __________________ [to the highest qualified bidder] in
62109998 public as follows:
6211-
62129999 Day and Date: _________________
6213-
621410000 Time: _________________
6215-
621610001 Place: _________________
6217- ENR. H. B. NO. 2776 Page 140
621810002 [For a private disposition:]
10003+
10004+SENATE FLOOR VERSION - HB2776 SFLR Page 197
10005+(Bold face denotes Committee Amendments) 1
10006+2
10007+3
10008+4
10009+5
10010+6
10011+7
10012+8
10013+9
10014+10
10015+11
10016+12
10017+13
10018+14
10019+15
10020+16
10021+17
10022+18
10023+19
10024+20
10025+21
10026+22
10027+23
10028+24
621910029
622010030 We will sell [or lease or license, as applicable] the [describe
622110031 collateral] __________________ privately sometime after [day and
622210032 date] ________________.
6223-
622410033 You are entitled to an accounting of the unpaid indebtedness
622510034 secured by the property that we intend to sell [or lease or license,
622610035 as applicable] [for a charge of $_____________ ]. You may request
622710036 an accounting by calling us at [telephone number] ________________.
6228-
622910037 [End of Form]
6230-
623110038 NOTIFICATION OF DISPOSITION OF COLLATERAL
6232-
623310039 To: (Name of debtor, obligor, or other person to which the
623410040 notification is sent)
6235-
623610041 From: (Name, address, and telephone number of secured party)
6237-
623810042 {1} Name of any debtor that is not an addressee: (Name of each
623910043 debtor)
6240-
624110044 {2} We will sell (describe collateral) (to the highest qualified
624210045 bidder) at public sale. A sale could i nclude a lease or license.
624310046 The sale will be held as follows:
6244-
624510047 (Date)
6246-
624710048 (Time)
6248-
624910049 (Place)
6250-
625110050 {3} We will sell (describe collateral) at private sale sometime
625210051 after (date). A sale could include a lease or license.
10052+
10053+SENATE FLOOR VERSION - HB2776 SFLR Page 198
10054+(Bold face denotes Committee Amendments) 1
10055+2
10056+3
10057+4
10058+5
10059+6
10060+7
10061+8
10062+9
10063+10
10064+11
10065+12
10066+13
10067+14
10068+15
10069+16
10070+17
10071+18
10072+19
10073+20
10074+21
10075+22
10076+23
10077+24
625310078
625410079 {4} You are entitled to an accounting of the unpa id indebtedness
625510080 secured by the property that we intend to sell or, as applicable,
625610081 lease or license.
6257-
625810082 {5} If you request an accounting, you must pay a charge of $
625910083 (amount).
6260-
626110084 {6} You may request an accounting by calling us at (telephone
6262-number). ENR. H. B. NO. 2776 Page 141
6263-
10085+number).
626410086 [End of Form]
6265-
626610087 (b) The following instructions apply to the form of
626710088 notification in paragraph (5) of subsection (a) of this section:
6268-
626910089 (1) The instructions in this paragraph refer to the numbers in
627010090 braces before items in the form of notification in paragraph (5) of
627110091 subsection (a) of this section . Do not include the numbers or
627210092 braces in the notification. The numbers and braces are used only
627310093 for the purpose of these instructions.
6274-
627510094 (2) Include and complete item {1} only if there is a debtor
627610095 that is not an addressee of the n otification and list the name or
627710096 names.
6278-
627910097 (3) Include and complete either item {2}, if the notification
628010098 relates to a public disposition of the collateral, or item {3}, if
628110099 the notification relates to a private disposition of the collateral.
628210100 If item {2} is included, include the wor ds "to the highest qualified
628310101 bidder" only if applicable.
6284-
628510102 (4) Include and complete items {4} and {6}.
10103+
10104+SENATE FLOOR VERSION - HB2776 SFLR Page 199
10105+(Bold face denotes Committee Amendments) 1
10106+2
10107+3
10108+4
10109+5
10110+6
10111+7
10112+8
10113+9
10114+10
10115+11
10116+12
10117+13
10118+14
10119+15
10120+16
10121+17
10122+18
10123+19
10124+20
10125+21
10126+22
10127+23
10128+24
628610129
628710130 (5) Include and complete item {5} only if the sender will
628810131 charge the recipient for an accounting.
6289-
629010132 SECTION 83. AMENDATORY 12A O.S. 2021, Section 1 -9-614,
629110133 is amended to read as follows:
6292-
629310134 Section 1-9-614.
6294-
629510135 CONTENTS AND FORM OF NOTIFICATION BEFORE
6296-
629710136 DISPOSITION OF COLLATERAL: CONSUMER -GOODS TRANSACTION
6298-
629910137 (a) In a consumer-goods transaction, the following rules apply :
6300-
630110138 (1) A notification of disposition must provide the following
630210139 information:
6303-
630410140 (A) the information specified in paragraph (1) of
630510141 subsection (a) of Section 1-9-613 of this title;
6306- ENR. H. B. NO. 2776 Page 142
630710142 (B) a description of any liability for a deficiency of the
630810143 person to which the n otification is sent;
6309-
631010144 (C) a telephone number from which the amount that must be
631110145 paid to the secured party to redeem the collateral
631210146 under Section 1-9-623 of this title is available; and
6313-
631410147 (D) a telephone number or mailing address from which
631510148 additional information concerning the dispo sition and
631610149 the obligation secured is available.
6317-
631810150 (2) A particular phrasing of the notification is not required.
6319-
632010151 (3) The following form of notification, when completed in
632110152 accordance with the instructions in subsection (b) of this se ction,
632210153 provides sufficient information:
632310154
10155+SENATE FLOOR VERSION - HB2776 SFLR Page 200
10156+(Bold face denotes Committee Amendments) 1
10157+2
10158+3
10159+4
10160+5
10161+6
10162+7
10163+8
10164+9
10165+10
10166+11
10167+12
10168+13
10169+14
10170+15
10171+16
10172+17
10173+18
10174+19
10175+20
10176+21
10177+22
10178+23
10179+24
10180+
632410181 [Name and address of secured party]
6325-
632610182 ______________________________________________
6327-
632810183 [Date]
6329-
633010184 _________________
6331-
633210185 NOTICE OF OUR PLAN TO SELL PROPERTY
6333-
633410186 [Name and address of any obligor who is also a debtor]
6335-
633610187 _________________________________________ _______________________
6337-
633810188 Subject: [Identification of Transaction]
6339-
634010189 ________________________________________________________________
6341-
634210190 We have your [describe collateral] ________________________,
634310191 because you broke promises in our agreeme nt.
6344-
634510192 [For a public disposition:]
6346-
634710193 We will sell [describe collateral] _______________________ at public
634810194 sale. A sale could include a lease or license. The sale will be
634910195 held as follows:
6350-
6351-Date: _________________________ ENR. H. B. NO. 2776 Page 143
6352-
10196+Date: _________________________
635310197 Time: _________________________
6354-
635510198 Place: _______________________ __
6356-
635710199 You may attend the sale and bring bidders if you want.
6358-
635910200 [For a private disposition:]
6360-
636110201 We will sell [describe collateral] ______________________ at
636210202 private sale sometime after [date] _________________. A sale could
636310203 include a lease or license.
10204+
10205+SENATE FLOOR VERSION - HB2776 SFLR Page 201
10206+(Bold face denotes Committee Amendments) 1
10207+2
10208+3
10209+4
10210+5
10211+6
10212+7
10213+8
10214+9
10215+10
10216+11
10217+12
10218+13
10219+14
10220+15
10221+16
10222+17
10223+18
10224+19
10225+20
10226+21
10227+22
10228+23
10229+24
636410230
636510231 The money that we get from the sale (after paying our costs)
636610232 will reduce the amount you owe. If we get less money than you owe,
636710233 you [will or will not, as applicable] _______________________ still
636810234 owe us the difference. If we get more money th an you owe, you will
636910235 get the extra money, unless we must pay it to someone else.
6370-
637110236 You can get the property back at any time before we sell it by
637210237 paying us the full amount you owe (not just the past due payments),
637310238 including our expenses. To learn the exact amount you must pay,
637410239 call us at [telephone number] _________________.
6375-
637610240 If you want us to explain to you in writing how we have figured
637710241 the amount that you owe us, you may call us at [telephone number]
637810242 _______________ [or write us at [secured party's address ]
637910243 ______________________ __] and request a written explanation. [We
638010244 will charge you $_______________ for the explanation if we sent you
638110245 another written explanation of the amount you owe us within the last
638210246 six months.]
6383-
638410247 If you need more information about the sale call us at
638510248 [telephone number]__________________] [or write us at [secured
638610249 party's address]_________________________________].
6387-
638810250 We are sending this notice to the following other people who
638910251 have an interest in [describe collateral] _____________________ or
639010252 who owe money under your agreement:
6391-
639210253 [Names of all other debtors and obligors, if any]
6393-
639410254 ____________________________________________________________
639510255
6396-[End of Form] ENR. H. B. NO. 2776 Page 144
6397-
10256+SENATE FLOOR VERSION - HB2776 SFLR Page 202
10257+(Bold face denotes Committee Amendments) 1
10258+2
10259+3
10260+4
10261+5
10262+6
10263+7
10264+8
10265+9
10266+10
10267+11
10268+12
10269+13
10270+14
10271+15
10272+16
10273+17
10274+18
10275+19
10276+20
10277+21
10278+22
10279+23
10280+24
10281+
10282+[End of Form]
639810283 (Name and address of secured party)
6399-
640010284 (Date)
6401-
640210285 NOTICE OF OUR PLAN TO SELL PROPERTY
6403-
640410286 (Name and address of any obligor who is also a debtor)
6405-
640610287 Subject: (Identify transaction)
6407-
640810288 We have your (describe collateral), because you broke promises
640910289 in our agreement.
6410-
641110290 {1} We will sell (describe collateral) at public sale. A sale
641210291 could include a lease or license. T he sale will be held as follows:
6413-
641410292 (Date)
6415-
641610293 (Time)
6417-
641810294 (Place)
6419-
642010295 You may attend the sale and bring bidders if you want.
6421-
642210296 {2} We will sell (describe collateral) at private sale sometime
642310297 after (date). A sale could include a lease or license.
6424-
642510298 {3} The money that we get from the sale, after paying our costs,
642610299 will reduce the amount you owe. If we get less money than you owe,
642710300 you (will or will not, as applicable) still owe us the difference.
642810301 If we get more money than you owe, you will get the extra money,
642910302 unless we must pay it to someone else.
6430-
643110303 {4} You can get the property back at any time before we sell it
643210304 by paying us the full amount you owe, not just the past due
10305+
10306+SENATE FLOOR VERSION - HB2776 SFLR Page 203
10307+(Bold face denotes Committee Amendments) 1
10308+2
10309+3
10310+4
10311+5
10312+6
10313+7
10314+8
10315+9
10316+10
10317+11
10318+12
10319+13
10320+14
10321+15
10322+16
10323+17
10324+18
10325+19
10326+20
10327+21
10328+22
10329+23
10330+24
10331+
643310332 payments, including our expenses. To learn the exact amount you
643410333 must pay, call us at (telephone number).
6435-
643610334 {5} If you want us to explain to you in (writing) (writing or in
643710335 (description of electronic record)) (description of electronic
643810336 record) how we have figured the amount that you owe us, {6} Call us
643910337 at (telephone number) (or) (write us at (secured party's addres s))
644010338 (or contact us by (d escription of electronic communication method))
6441-{7} and request (a written exp lanation) (a written explanation or an ENR. H. B. NO. 2776 Page 145
10339+{7} and request (a written explanation) (a written explanation or an
644210340 explanation in (description of electronic record)) (an explanation
644310341 in (description of electronic record)).
6444-
644510342 {8} We will charge you $ (amount) for the explanation if we sent
644610343 you another written explanation of the amount you owe us within the
644710344 last six months.
6448-
644910345 {9} If you need more information about the sale (call us at
645010346 (telephone number)) (or) (write us at (secured party's address)) (or
645110347 contact us by (description of electronic communication method)).
6452-
645310348 {10} We are sending this notice to the following other people
645410349 who have an interest in (describe collateral) or who owe money under
645510350 your agreement:
6456-
645710351 (Names of all other debtors and obligors, if any)
6458-
645910352 [End of Form]
6460-
646110353 (4) A notification in the form of paragraph (3) of this section
646210354 subsection is sufficient, even if additional information appears at
646310355 the end of the form.
10356+
10357+SENATE FLOOR VERSION - HB2776 SFLR Page 204
10358+(Bold face denotes Committee Amendments) 1
10359+2
10360+3
10361+4
10362+5
10363+6
10364+7
10365+8
10366+9
10367+10
10368+11
10369+12
10370+13
10371+14
10372+15
10373+16
10374+17
10375+18
10376+19
10377+20
10378+21
10379+22
10380+23
10381+24
646410382
646510383 (5) A notification in the form of paragraph (3) of this section
646610384 subsection is sufficient, even if it includes errors in information
646710385 not required by paragraph (1) of this section subsection, unless the
646810386 error is misleading with respect to rights arising under this
646910387 article.
6470-
647110388 (6) If a notification under this section is not in the form of
647210389 paragraph (3) of this section subsection, law other than this
647310390 article determines the effect of including information not required
647410391 by paragraph (1) of this section subsection.
6475-
647610392 (b) The following instructions apply to the form of
647710393 notification in paragraph (3) of subs ection (a) of this section:
6478-
647910394 (1) The instructions in this subsection refer to the numbers in
648010395 braces before items in the form of notification in paragraph (3) of
648110396 subsection (a) of this section. Do not include the numbers or
648210397 braces in the notification. The numbers and braces are used only
648310398 for the purpose of these instructions.
6484- ENR. H. B. NO. 2776 Page 146
648510399 (2) Include and complete either item {1}, if the notification
648610400 relates to a public disposition of the collateral, or item {2}, if
648710401 the notification relates to a private disposition of the collateral.
6488-
648910402 (3) Include and complete items {3}, {4}, {5}, {6}, and {7}.
6490-
649110403 (4) In item {5}, include and complete any one of the three
649210404 alternative methods for the explanation — writing, writing or
649310405 electronic record, or electronic record.
10406+
10407+SENATE FLOOR VERSION - HB2776 SFLR Page 205
10408+(Bold face denotes Committee Amendments) 1
10409+2
10410+3
10411+4
10412+5
10413+6
10414+7
10415+8
10416+9
10417+10
10418+11
10419+12
10420+13
10421+14
10422+15
10423+16
10424+17
10425+18
10426+19
10427+20
10428+21
10429+22
10430+23
10431+24
649410432
649510433 (5) In item {6}, include the telephone number. In addition,
649610434 the sender may include and complete either or both of the two
649710435 additional alternative methods of communication - writing or
649810436 electronic communication - for the recipient of the notificatio n to
649910437 communicate with the sender. Neither of the two additional methods
650010438 of communication is required to be included.
6501-
650210439 (6) In item {7}, include and complete the method or methods for
650310440 the explanation — writing, writing or electronic record, or
650410441 electronic record — included in item {5}.
6505-
650610442 (7) Include and complete item {8} only if a written explanation
650710443 is included in item {5} as a method for communicating the
650810444 explanation and the sender will charge the recipient for another
650910445 written explanation.
6510-
651110446 (8) In item {9}, include either the telep hone number or the
651210447 address or both the telephone number and the address. In addition,
651310448 the sender may include and complete the additional method of
651410449 communication - electronic communication - for the recipient of the
651510450 notification to communicate with the sender. The additional method
651610451 of electronic communication is not required to be included.
6517-
651810452 (9) If item {10} does not apply, insert "None" after
651910453 "agreement:".
6520-
652110454 SECTION 84. AMENDATORY 12A O.S. 2021, Section 1 -9-615,
652210455 is amended to read a s follows:
6523-
652410456 Section 1-9-615.
652510457
10458+SENATE FLOOR VERSION - HB2776 SFLR Page 206
10459+(Bold face denotes Committee Amendments) 1
10460+2
10461+3
10462+4
10463+5
10464+6
10465+7
10466+8
10467+9
10468+10
10469+11
10470+12
10471+13
10472+14
10473+15
10474+16
10475+17
10476+18
10477+19
10478+20
10479+21
10480+22
10481+23
10482+24
10483+
652610484 APPLICATION OF PROCEEDS OF DISPOSITION;
6527-
652810485 LIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS
6529- ENR. H. B. NO. 2776 Page 147
653010486 (a) A secured party shall apply or pay over for application the
653110487 cash proceeds of disposition pursuant to Section 1 -9-610 of this
653210488 title in the following order to:
6533-
653410489 (1) the reasonable expenses of retaking, holding, preparing for
653510490 disposition, processing, and disposing, and, to the extent provided
653610491 for by agreement and not prohibited by law, reasonable attorney's
653710492 attorney fees and legal expenses inc urred by the secured party;
6538-
653910493 (2) the satisfaction of obligations secured by the security
654010494 interest or agricultural lien under which the disposition is made;
6541-
654210495 (3) the satisfaction of obligations secured by any subordinate
654310496 security interest in or other subordinate lien on the collateral if:
6544-
654510497 (A) the secured party receives from the holder of the
654610498 subordinate security interest or other lien an
654710499 authenticated a signed demand for proceeds before
654810500 distribution of the proceeds is completed; and
6549-
655010501 (B) in a case in which a consignor has an interest in the
655110502 collateral, the subordinate security interest or other
655210503 lien is senior to the interest of the consignor; and
6553-
655410504 (4) a secured party that is a consignor of the collateral if
655510505 the secured party receives fr om the consignor an authenticated a
655610506 signed demand for proceeds before distribution of the proceeds is
655710507 completed.
10508+
10509+SENATE FLOOR VERSION - HB2776 SFLR Page 207
10510+(Bold face denotes Committee Amendments) 1
10511+2
10512+3
10513+4
10514+5
10515+6
10516+7
10517+8
10518+9
10519+10
10520+11
10521+12
10522+13
10523+14
10524+15
10525+16
10526+17
10527+18
10528+19
10529+20
10530+21
10531+22
10532+23
10533+24
655810534
655910535 (b) If requested by a secured party, a holder of a subordinate
656010536 security interest or other lien shall furnish reasonable proof of
656110537 the interest or lien within a reasona ble time. Unless the holder
656210538 does so, the secured party need not comply with the holder's demand
656310539 under paragraph (3) of subsection (a) of this section.
6564-
656510540 (c) A secured party need not apply or pay over for application
656610541 noncash proceeds of disposition pursuant to Section 1 -9-610 of this
656710542 title unless the failure to do so would be commercially
656810543 unreasonable. A secured party that applies or pays over for
656910544 application noncash proceeds shall do so in a commercially
657010545 reasonable manner.
6571-
657210546 (d) If the security interest und er which a disposition is made
6573-secures payment or performance of an obligation, after maki ng the ENR. H. B. NO. 2776 Page 148
10547+secures payment or performance of an obligation, after making the
657410548 payments and applications required by subsection (a) of this section
657510549 and permitted by subsection (c) of this section:
6576-
657710550 (1) unless paragraph (4) of subsection (a) of this section
657810551 requires the secured party to apply or pay over cash proceeds to a
657910552 consignor, the secured party shall account to and pay a debtor for
658010553 any surplus; and
6581-
658210554 (2) the obligor is liable for any deficiency.
6583-
658410555 (e) If the underlying transaction is a sale of accounts,
658510556 tangible chattel paper, payment intangibles, or promissory notes:
6586-
658710557 (1) the debtor is not entitled to any surplus; and
6588-
658910558 (2) the obligor is not liable for any deficiency.
10559+
10560+SENATE FLOOR VERSION - HB2776 SFLR Page 208
10561+(Bold face denotes Committee Amendments) 1
10562+2
10563+3
10564+4
10565+5
10566+6
10567+7
10568+8
10569+9
10570+10
10571+11
10572+12
10573+13
10574+14
10575+15
10576+16
10577+17
10578+18
10579+19
10580+20
10581+21
10582+22
10583+23
10584+24
659010585
659110586 (f) The surplus or deficiency following a d isposition is
659210587 calculated based on the amount of proceeds that would have been
659310588 realized in a disposition complying with this part to a transferee
659410589 other than the secured party, a person related to the secured party,
659510590 or a secondary obligor if:
6596-
659710591 (1) the transferee in the disposition is the secured party, a
659810592 person related to the secured party, or a secondary obligor; and
6599-
660010593 (2) the amount of proceeds of the disposition is significantly
660110594 below the range of proceeds that a complying disposition to a person
660210595 other than the secured party, a person related to the secured party,
660310596 or a secondary obligor would have brought.
6604-
660510597 (g) A secured party that receives cash proceeds of a
660610598 disposition in good faith and without knowledge that the receipt
660710599 violates the rights of the holder o f a security interest or other
660810600 lien that is not subordinate to the security interest or
660910601 agricultural lien under which the disposition is made:
6610-
661110602 (1) takes the cash proceeds free of the security interest or
661210603 other lien;
6613-
661410604 (2) is not obligated to apply the proc eeds of the disposition
661510605 to the satisfaction of obligations secured by the security interest
661610606 or other lien; and
6617- ENR. H. B. NO. 2776 Page 149
661810607 (3) is not obligated to account to or pay the holder of the
661910608 security interest or other lien for any surplus.
662010609
10610+SENATE FLOOR VERSION - HB2776 SFLR Page 209
10611+(Bold face denotes Committee Amendments) 1
10612+2
10613+3
10614+4
10615+5
10616+6
10617+7
10618+8
10619+9
10620+10
10621+11
10622+12
10623+13
10624+14
10625+15
10626+16
10627+17
10628+18
10629+19
10630+20
10631+21
10632+22
10633+23
10634+24
10635+
662110636 SECTION 85. AMENDATORY 12A O.S. 20 21, Section 1-9-616,
662210637 is amended to read as follows:
6623-
662410638 Section 1-9-616.
6625-
662610639 EXPLANATION OF CALCULATION OF SURPLUS OR DEFICIENCY
6627-
662810640 (a) In this section:
6629-
663010641 (1) "Explanation" means a writing record that:
6631-
663210642 (A) states the amount of the surplus or d eficiency;
6633-
663410643 (B) provides an explanation in accordance with subsection
663510644 (c) of this section of how the secured party
663610645 calculated the surplus or deficiency;
6637-
663810646 (C) states, if applicable, that future debits, credits,
663910647 charges, including additional credit service cha rges
664010648 or interest, rebates, and expenses may affect the
664110649 amount of the surplus or deficiency; and
6642-
664310650 (D) provides a telephone number or mailing address from
664410651 which additional information concerning the
664510652 transaction is available.
6646-
664710653 (2) "Request" means a record:
6648-
664910654 (A) authenticated signed by a debtor or consumer obligor;
6650-
665110655 (B) requesting that the recipient provide an explanation;
665210656 and
6653-
665410657 (C) sent after disposition of the collateral under Section
665510658 1-9-610 of this title.
10659+
10660+SENATE FLOOR VERSION - HB2776 SFLR Page 210
10661+(Bold face denotes Committee Amendments) 1
10662+2
10663+3
10664+4
10665+5
10666+6
10667+7
10668+8
10669+9
10670+10
10671+11
10672+12
10673+13
10674+14
10675+15
10676+16
10677+17
10678+18
10679+19
10680+20
10681+21
10682+22
10683+23
10684+24
665610685
665710686 (b) In a consumer-goods transaction in which the debtor is
665810687 entitled to a surplus or a consumer obligor is liable for a
665910688 deficiency under Section 1 -9-615 of this title, the secured party
666010689 shall:
6661- ENR. H. B. NO. 2776 Page 150
666210690 (1) send an explanation to the debtor or consumer obligor, as
666310691 applicable, after the disposition and:
6664-
666510692 (A) before or when the secured party accounts to the
666610693 debtor and pays any surplus or first makes written
666710694 demand in a record on the consumer obligor after the
666810695 disposition for payment of the deficiency; and
6669-
667010696 (B) within fourteen (14) days after receipt of a request;
667110697 or
6672-
667310698 (2) in the case of a consumer ob ligor who is liable for a
667410699 deficiency, within fourteen (14) days after receipt of a request,
667510700 send to the consumer obligor a record waiving the secured party's
667610701 right to a deficiency.
6677-
667810702 (c) To comply with subparagraph (B) of paragraph ( 1) of
667910703 subsection (a) of this section, a writing an explanation must
668010704 provide the following information in the following order:
6681-
668210705 (1) the aggregate amount of obligations secured by the security
668310706 interest under which the disposition was made, and, if the amount
668410707 reflects a rebate of un earned interest or credit service charge, an
668510708 indication of that fact, calculated as of a specified date:
668610709
10710+SENATE FLOOR VERSION - HB2776 SFLR Page 211
10711+(Bold face denotes Committee Amendments) 1
10712+2
10713+3
10714+4
10715+5
10716+6
10717+7
10718+8
10719+9
10720+10
10721+11
10722+12
10723+13
10724+14
10725+15
10726+16
10727+17
10728+18
10729+19
10730+20
10731+21
10732+22
10733+23
10734+24
10735+
668710736 (A) if the secured party takes or receives possession of
668810737 the collateral after default, not more than thirty -
668910738 five (35) days before the secured party takes or
669010739 receives possession; or
6691-
669210740 (B) if the secured party takes or receives possession of
669310741 the collateral before default or does not take
669410742 possession of the collateral, not more than thirty -
669510743 five (35) days before the disposition;
6696-
669710744 (2) the amount of proceeds of t he disposition;
6698-
669910745 (3) the aggregate amount of the obligations after deducting the
670010746 amount of proceeds;
6701-
670210747 (4) the amount, in the aggregate or by type, and types of
670310748 expenses, including expenses of retaking, holding, preparing for
670410749 disposition, processing, and disposing of the collateral, and
670510750 attorney's attorney fees secured by the collateral which are known
6706-to the secured party and relate to the current disposition; ENR. H. B. NO. 2776 Page 151
6707-
10751+to the secured party and relate to the current disposition;
670810752 (5) the amount, in the aggregate or by type, and types of
670910753 credits, including rebates of interest or credit service charges, to
671010754 which the obligor is known to be entitled and which are not
671110755 reflected in the amount in paragraph (1) of this subsection; and
6712-
671310756 (6) the amount of the surplus or deficiency.
6714-
671510757 (d) A particular phrasing of t he explanation is not required.
671610758 An explanation complying substantially with the requirements of
10759+
10760+SENATE FLOOR VERSION - HB2776 SFLR Page 212
10761+(Bold face denotes Committee Amendments) 1
10762+2
10763+3
10764+4
10765+5
10766+6
10767+7
10768+8
10769+9
10770+10
10771+11
10772+12
10773+13
10774+14
10775+15
10776+16
10777+17
10778+18
10779+19
10780+20
10781+21
10782+22
10783+23
10784+24
10785+
671710786 subsection (a) of this section is sufficient, even if it includes
671810787 minor errors that are not seriously misleading.
6719-
672010788 (e) A debtor or consumer obligor is entitled without charge to
672110789 one response to a request under this section during any six -month
672210790 period in which the secured party did not send to the debtor or
672310791 consumer obligor an explanation pursuant to paragraph (1) of
672410792 subsection (b) of this section. The secured p arty may require
672510793 payment of a charge not exceeding Twenty -five Dollars ($25.00) for
672610794 each additional response.
6727-
672810795 SECTION 86. AMENDATORY 12A O.S. 2021, Section 1 -9-619,
672910796 is amended to read as follows:
6730-
673110797 Section 1-9-619.
6732-
673310798 TRANSFER OF RECORD OR LEGAL TITLE
6734-
673510799 (a) In this section, "transfer statement" means a record
673610800 authenticated signed by a secured party stating:
6737-
673810801 (1) that the debtor has defaulted in connection with an
673910802 obligation secured by specified collateral;
6740-
674110803 (2) that the secured party has exercised its post-default
674210804 remedies with respect to the collateral;
6743-
674410805 (3) that, by reason of the exercise, a transferee has acquired
674510806 the rights of the debtor in the collateral; and
6746-
674710807 (4) the name and mailing address of the secured party, debtor,
674810808 and transferee.
674910809
10810+SENATE FLOOR VERSION - HB2776 SFLR Page 213
10811+(Bold face denotes Committee Amendments) 1
10812+2
10813+3
10814+4
10815+5
10816+6
10817+7
10818+8
10819+9
10820+10
10821+11
10822+12
10823+13
10824+14
10825+15
10826+16
10827+17
10828+18
10829+19
10830+20
10831+21
10832+22
10833+23
10834+24
10835+
675010836 (b) A transfer stat ement entitles the transferee to the
6751-transfer of record of all rights of the debtor in the collateral ENR. H. B. NO. 2776 Page 152
10837+transfer of record of all rights of the debtor in the collateral
675210838 specified in the statement in any official filing, recording,
675310839 registration, or certificate -of-title system covering the
675410840 collateral. If a transfer statement is presented with the
675510841 applicable fee and request form to the official or office
675610842 responsible for maintaining the system, the official or office
675710843 shall:
6758-
675910844 (1) accept the transfer statement;
6760-
676110845 (2) promptly amend its records to reflect the transfer; and
6762-
676310846 (3) if applicable, issue a new appropriate certificate of title
676410847 in the name of the transferee.
6765-
676610848 (c) A transfer of the record or legal title to collateral to a
676710849 secured party under subsection (b) of this section or otherwise is
676810850 not of itself a disposition of collateral under this article and
676910851 does not of itself relieve the secured party of its duties under
677010852 this article.
6771-
677210853 SECTION 87. AMENDATORY 12A O.S. 2021, Section 1 -9-620,
677310854 is amended to read as follows:
6774-
677510855 Section 1-9-620.
6776-
677710856 ACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION
6778-
677910857 OF OBLIGATION; COMPULSORY DISPOSITION OF COLLATERAL
10858+
10859+SENATE FLOOR VERSION - HB2776 SFLR Page 214
10860+(Bold face denotes Committee Amendments) 1
10861+2
10862+3
10863+4
10864+5
10865+6
10866+7
10867+8
10868+9
10869+10
10870+11
10871+12
10872+13
10873+14
10874+15
10875+16
10876+17
10877+18
10878+19
10879+20
10880+21
10881+22
10882+23
10883+24
678010884
678110885 (a) Except as otherwise provided in subsection (g) of this
678210886 section, a secured party may accept collateral in full or partial
678310887 satisfaction of the obligation it secures only if:
6784-
678510888 (1) the debtor consents to the acceptance under subsection (c)
678610889 of this section;
6787-
678810890 (2) the secured party does not receive, within the time set
678910891 forth in subsection (d) of this section, a notification of objection
679010892 to the proposal authenticated signed by:
6791-
679210893 (A) a person to which the secured party was required to
679310894 send a proposal under Section 1 -9-621 of this title;
679410895 or
6795- ENR. H. B. NO. 2776 Page 153
679610896 (B) any other person, other than the debtor, holding an
679710897 interest in the collateral subordinate to the security
679810898 interest that is the subject of the proposal;
6799-
680010899 (3) if the collateral is consumer goods, the collateral is not
680110900 in the possession of the debtor when the debtor consents to the
680210901 acceptance; and
6803-
680410902 (4) subsection (e) of this section does not require the secured
680510903 party to dispose of the col lateral or the debtor waives the
680610904 requirement pursuant to Section 1 -9-624 of this title.
6807-
680810905 (b) A purported or apparent acceptance of collateral under this
680910906 section is ineffective unless:
6810-
681110907 (1) the secured party consents to the acceptanc e in an
681210908 authenticated a signed record or sends a proposal to the debtor; and
681310909
10910+SENATE FLOOR VERSION - HB2776 SFLR Page 215
10911+(Bold face denotes Committee Amendments) 1
10912+2
10913+3
10914+4
10915+5
10916+6
10917+7
10918+8
10919+9
10920+10
10921+11
10922+12
10923+13
10924+14
10925+15
10926+16
10927+17
10928+18
10929+19
10930+20
10931+21
10932+22
10933+23
10934+24
10935+
681410936 (2) the conditions of subsection (a) of this section are met.
6815-
681610937 (c) For purposes of this section:
6817-
681810938 (1) a debtor consents to an acceptance of collateral in partial
681910939 satisfaction of the obligation it secure s only if the debtor agrees
682010940 to the terms of the acceptance in a record authenticated signed
682110941 after default; and
6822-
682310942 (2) a debtor consents to an acceptance of collateral in full
682410943 satisfaction of the obligation it secures only if the debto r agrees
682510944 to the terms of the acceptance in a record authenticated signed
682610945 after default or the secured party:
6827-
682810946 (A) sends to the debtor after default a proposal that is
682910947 unconditional or subject only to a condition that
683010948 collateral not in the possession of the secured party
683110949 be preserved or maintained;
6832-
683310950 (B) in the proposal, proposes to accept collateral in full
683410951 satisfaction of the obligation it secures; and
6835-
683610952 (C) does not receive a notification of objection
683710953 authenticated signed by the debtor within twenty (20)
683810954 days after the proposal is sent.
6839- ENR. H. B. NO. 2776 Page 154
684010955 (d) To be effective under paragraph (2) of subsection (a) of
684110956 this section, a notification of objection must be received by the
684210957 secured party:
684310958
10959+SENATE FLOOR VERSION - HB2776 SFLR Page 216
10960+(Bold face denotes Committee Amendments) 1
10961+2
10962+3
10963+4
10964+5
10965+6
10966+7
10967+8
10968+9
10969+10
10970+11
10971+12
10972+13
10973+14
10974+15
10975+16
10976+17
10977+18
10978+19
10979+20
10980+21
10981+22
10982+23
10983+24
10984+
684410985 (1) in the case of a person to which the proposal was sent
684510986 pursuant to Section 1 -9-621 of this title, within twenty (20) days
684610987 after notification was sent to that person; and
6847-
684810988 (2) in other cases:
6849-
685010989 (A) within twenty (20) days after the last notification
685110990 was sent pursuant to Section 1 -9-621 of this title; or
6852-
685310991 (B) if a notification was not sent , before the debtor
685410992 consents to the acceptance under subsection (c) of
685510993 this section.
6856-
685710994 (e) A secured party that has taken possession of collateral
685810995 shall dispose of the collateral pursuant to Section 1 -9-610 of this
685910996 title within the time specified in subsect ion (f) of this section
686010997 if:
6861-
686210998 (1) Sixty percent (60%) of the cash price has been paid in the
686310999 case of a purchase-money security interest in consumer goods; or
6864-
686511000 (2) Sixty percent (60%) of the principal amount of the
686611001 obligation secured has been paid in the cas e of a non-purchase-money
686711002 security interest in consumer goods.
6868-
686911003 (f) To comply with subsection (e) of this section, the secured
687011004 party shall dispose of the collateral:
6871-
687211005 (1) within ninety (90) days after taking possession; or
6873-
687411006 (2) within any longer period to which the debtor and all
687511007 secondary obligors have agreed in an agreement to that effect
687611008 entered into and authenticated signed after default.
687711009
11010+SENATE FLOOR VERSION - HB2776 SFLR Page 217
11011+(Bold face denotes Committee Amendments) 1
11012+2
11013+3
11014+4
11015+5
11016+6
11017+7
11018+8
11019+9
11020+10
11021+11
11022+12
11023+13
11024+14
11025+15
11026+16
11027+17
11028+18
11029+19
11030+20
11031+21
11032+22
11033+23
11034+24
11035+
687811036 (g) In a consumer transaction, a secured party may not accept
687911037 collateral in partial satisfaction of the obligation it secures.
6880-
688111038 SECTION 88. AMENDATORY 12A O.S. 2021, Section 1 -9-621,
688211039 is amended to read as follows:
6883-
6884-Section 1-9-621. ENR. H. B. NO. 2776 Page 155
6885-
11040+Section 1-9-621.
688611041 NOTIFICATION OF PROPOSAL TO ACCEPT COLLATERAL
6887-
688811042 (a) A secured party that desires to accept collateral in full
688911043 or partial satisfaction of the obligation it secures shall send its
689011044 proposal to:
6891-
689211045 (1) any person from which the secured party has received,
689311046 before the debtor consented to the acceptance, an authenticated a
689411047 signed notification of a claim of an interest in the coll ateral;
6895-
689611048 (2) any other secured party or lienholder that, ten (10) days
689711049 before the debtor consented to the acceptance, held a security
689811050 interest in or other lien on the collateral perfected by the filing
689911051 of a financing statement that:
6900-
690111052 (A) identified the collateral;
6902-
690311053 (B) was indexed under the debtor's name as of that date;
690411054 and
6905-
690611055 (C) was filed in the office or offices in which a
690711056 financing statement against the debtor covering the
690811057 collateral as of that date would have been filed; and
6909-
691011058 (3) any other secured party th at, ten (10) days before the
691111059 debtor consented to the acceptance, held a security interest in the
11060+
11061+SENATE FLOOR VERSION - HB2776 SFLR Page 218
11062+(Bold face denotes Committee Amendments) 1
11063+2
11064+3
11065+4
11066+5
11067+6
11068+7
11069+8
11070+9
11071+10
11072+11
11073+12
11074+13
11075+14
11076+15
11077+16
11078+17
11079+18
11080+19
11081+20
11082+21
11083+22
11084+23
11085+24
11086+
691211087 collateral perfected by compliance with a statute, regulation, or
691311088 treaty described in subsection (a) of Section 1 -9-311 of this title.
6914-
691511089 (b) A secured party tha t desires to accept coll ateral in
691611090 partial satisfaction of the obligation it secures shall send its
691711091 proposal to any secondary obligor in addition to the persons
691811092 described in subsection (a) of this section.
6919-
692011093 SECTION 89. AMENDATORY 12A O.S. 2021, Section 1 -9-624,
692111094 is amended to read as follows:
6922-
692311095 Section 1-9-624.
6924-
692511096 WAIVER
6926-
692711097 (a) A debtor or secondary obligor may waive the right to
6928-notification of disposition of c ollateral under Section 1-9-611 of ENR. H. B. NO. 2776 Page 156
11098+notification of disposition of collateral under Section 1 -9-611 of
692911099 this title only by an agreement to that effect entered into and
693011100 authenticated signed after default.
6931-
693211101 (b) A debtor may waive the right to require disposition of
693311102 collateral under subsection (e) of Section 1 -9-620 of this title
693411103 only by agreement to that effect entered into and authenticated
693511104 signed after default.
6936-
693711105 (c) Except in a consumer -goods transaction, a debtor or
693811106 secondary obligor may waive the right to redeem collateral under
693911107 Section 1-9-623 of this title only by an agreement to that effect
694011108 entered into and authenticated signed after default.
6941-
694211109 SECTION 90. AMENDATORY 12A O.S. 2021, Section 1 -9-628,
694311110 is amended to read as follows:
694411111
11112+SENATE FLOOR VERSION - HB2776 SFLR Page 219
11113+(Bold face denotes Committee Amendments) 1
11114+2
11115+3
11116+4
11117+5
11118+6
11119+7
11120+8
11121+9
11122+10
11123+11
11124+12
11125+13
11126+14
11127+15
11128+16
11129+17
11130+18
11131+19
11132+20
11133+21
11134+22
11135+23
11136+24
11137+
694511138 Section 1-9-628.
6946-
694711139 NONLIABILITY AND LIMITATION ON LIABILITY
6948-
694911140 OF SECURED PARTY; LIABILITY OF SECONDARY OBLIGOR
6950-
695111141 (a) Unless Subject to subsection (f) of this section, unless a
695211142 secured party knows that a person is a debtor or obligor, knows the
695311143 identity of the person, and knows how to communicate with the
695411144 person:
6955-
695611145 (1) the secured party is not liable to the person, or to a
695711146 secured party or lienholder that has fi led a financing statemen t
695811147 against the person, for failure to comply with this article; and
6959-
696011148 (2) the secured party's failure to comply with this article
696111149 does not affect the liability of the person for a deficiency.
6962-
696311150 (b) A Subject to subsection (f) of this s ection, a secured
696411151 party is not liable because of its status as secured party:
6965-
696611152 (1) to a person that is a debtor or obligor, unless the secured
696711153 party knows:
6968-
696911154 (A) that the person is a debtor or obligor;
6970-
697111155 (B) the identity of the person; and
6972-
6973-(C) how to communicate with the person; or ENR. H. B. NO. 2776 Page 157
6974-
11156+(C) how to communicate with the person; or
697511157 (2) to a secured party or lienholder that has filed a financing
697611158 statement against a person, unless the secured party knows:
6977-
697811159 (A) that the person is a debtor; and
6979-
698011160 (B) the identity of the person.
11161+
11162+SENATE FLOOR VERSION - HB2776 SFLR Page 220
11163+(Bold face denotes Committee Amendments) 1
11164+2
11165+3
11166+4
11167+5
11168+6
11169+7
11170+8
11171+9
11172+10
11173+11
11174+12
11175+13
11176+14
11177+15
11178+16
11179+17
11180+18
11181+19
11182+20
11183+21
11184+22
11185+23
11186+24
698111187
698211188 (c) A secured party is not liable to a ny person, and a person's
698311189 liability for a deficiency is not affected, because of any act or
698411190 omission arising out of the secured party's reasonable belief that a
698511191 transaction is not a consumer -goods transaction or a consumer
698611192 transaction or that goods are not consumer goods, if the secured
698711193 party's belief is based on its reasonable reliance on:
6988-
698911194 (1) a debtor's representation concerning the purpose for which
699011195 collateral was to be used, acquired, or held; or
6991-
699211196 (2) an obligor's representation concerning the purpose for
699311197 which a secured obligation was incurred.
6994-
699511198 (d) A secured party is not liable to any person under paragraph
699611199 (2) of subsection (c) of Section 1 -9-625 of this title for its
699711200 failure to comply with Section 1 -9-616 of this title.
6998-
699911201 (e) A secured party is not l iable under paragraph (2 ) of
700011202 subsection (c) of Section 1 -9-625 of this title more than once with
700111203 respect to any one secured obligation.
7002-
700311204 (f) Subsections (a) and (b) of this section do not apply to
700411205 limit the liability of a secured party to a person if, at t he time
700511206 the secured party obtains control of collateral that is a
700611207 controllable account, controllable electronic record, or
700711208 controllable payment intangible or at the time the security interest
700811209 attaches to the collateral, whichever is later:
7009-
701011210 (1) the person is a debtor or obligor; and
11211+
11212+SENATE FLOOR VERSION - HB2776 SFLR Page 221
11213+(Bold face denotes Committee Amendments) 1
11214+2
11215+3
11216+4
11217+5
11218+6
11219+7
11220+8
11221+9
11222+10
11223+11
11224+12
11225+13
11226+14
11227+15
11228+16
11229+17
11230+18
11231+19
11232+20
11233+21
11234+22
11235+23
11236+24
701111237
701211238 (2) the secured party knows that the information in
701311239 subparagraph (A), (B), or (C) of paragraph (1) of subsection (b) of
701411240 this section relating to the person is not provided by the
701511241 collateral, a record attached to or logically as sociated with the
701611242 collateral, or the system in which the collateral is recorded.
7017- ENR. H. B. NO. 2776 Page 158
701811243 SECTION 91. NEW LAW A new section of law to be codified
701911244 in the Oklahoma Statutes as Section 12 -101 of Title 12A, unless
702011245 there is created a duplication i n numbering, reads as fo llows:
7021-
702211246 SHORT TITLE
7023-
702411247 This article, Sections 92 through 97 of this act, may be cited
702511248 as Uniform Commercial Code – Controllable Electronic Records.
7026-
702711249 SECTION 92. NEW LAW A new section of law to be codified
702811250 in the Oklahoma Statutes as Section 12 -102 of Title 12A, unless
702911251 there is created a duplication in numbering, reads as follows:
7030-
703111252 DEFINITIONS
7032-
703311253 (a) In this article, unless the context otherwise requires:
7034-
703511254 (1) "Controllable electronic record" means a record stored in
703611255 an electronic medium that can be subjected to control under Section
703711256 12-105 of this title. The term does not include a controllable
703811257 account, a controllable payment intangible, a deposit account, an
703911258 electronic copy of a record evidencing chattel paper, an ele ctronic
704011259 document of title, investment property, a transferable record, or an
704111260 electronic record that is a medium of exchange currently authorized
704211261 or adopted by a domestic or foreign government and is not a medium
11262+
11263+SENATE FLOOR VERSION - HB2776 SFLR Page 222
11264+(Bold face denotes Committee Amendments) 1
11265+2
11266+3
11267+4
11268+5
11269+6
11270+7
11271+8
11272+9
11273+10
11274+11
11275+12
11276+13
11277+14
11278+15
11279+16
11280+17
11281+18
11282+19
11283+20
11284+21
11285+22
11286+23
11287+24
11288+
704311289 of exchange that was recorded and transferab le in a system that
704411290 existed and operated for the medium of exchange before the medium of
704511291 exchange was authorized or adopted by the government.
7046-
704711292 (2) "Qualifying purchaser" means a purchaser of a controllable
704811293 electronic record or an interest in a controllabl e electronic record
704911294 that obtains control of the controllable electronic record for
705011295 value, in good faith, and without notice of a claim of a property
705111296 right in the controllable electronic record.
7052-
705311297 (3) "Transferable record" has the meaning provided for that
705411298 term in:
7055-
705611299 (A) Section 201(a)(1) of the Electronic Signatures in
705711300 Global and National Commerce Act, 15 U.S.C., Section
705811301 7021(a)(1); or
7059-
706011302 (B) Subsection (a) of Section 15 -116 of Title 12A of the
706111303 Oklahoma Statutes.
7062- ENR. H. B. NO. 2776 Page 159
706311304 (4) "Value" has the same meaning as provided in s ubsection (a)
706411305 of Section 3-303 of this title, as if references in that subsection
706511306 to an "instrument" were references to a controllable account,
706611307 controllable electronic record, or controllable payment intangible.
7067-
706811308 (b) The definitions in Article 9 of this ti tle of "account
706911309 debtor", "controllable account", "controllable payment intangible",
707011310 "chattel paper", "deposit account", and "investment property" apply
707111311 to this article.
707211312
11313+SENATE FLOOR VERSION - HB2776 SFLR Page 223
11314+(Bold face denotes Committee Amendments) 1
11315+2
11316+3
11317+4
11318+5
11319+6
11320+7
11321+8
11322+9
11323+10
11324+11
11325+12
11326+13
11327+14
11328+15
11329+16
11330+17
11331+18
11332+19
11333+20
11334+21
11335+22
11336+23
11337+24
11338+
707311339 (c) Article 1 of this title contains general definitions and
707411340 principles of constructio n and interpretation applicable throughout
707511341 this article.
7076-
707711342 SECTION 93. NEW LAW A new section of law to be codified
707811343 in the Oklahoma Statutes as Section 12 -103 of Title 12A, unless
707911344 there is created a duplication in numbering, reads as fo llows:
7080-
708111345 RELATION TO ARTICLE 9 AND CONSUMER LAWS
7082-
708311346 (a) If there is conflict between this article and Article 9 of
708411347 this title, Article 9 of this title governs.
7085-
708611348 (b) A transaction subject to this article is subject to any
708711349 applicable rule of law that establishes a different rule for
708811350 consumers, any other statute or regulation that regulates the rates,
708911351 charges, agreements, and practices for loans, credit sales, or other
709011352 extensions of credit, and the Oklahoma Consumer Protection Act.
7091-
709211353 SECTION 94. NEW LAW A new section of law to be codified
709311354 in the Oklahoma Statutes as Section 12 -104 of Title 12A, unless
709411355 there is created a duplication in numbering, reads as follows:
7095-
709611356 RIGHTS IN CONTROLLABLE ACCOUNT, CONTROLLABLE ELECTRONIC RECORD, AND
709711357 CONTROLLABLE PAYMENT INTANGIBLE
7098-
709911358 (a) This section applies to the acquisition and purchase of
710011359 rights in a controllable account or controllable payment intangible,
710111360 including the rights and benefits under subsections (c), (d), (e),
710211361 (g), and (h) of this section of a purchas er and qualifying
11362+
11363+SENATE FLOOR VERSION - HB2776 SFLR Page 224
11364+(Bold face denotes Committee Amendments) 1
11365+2
11366+3
11367+4
11368+5
11369+6
11370+7
11371+8
11372+9
11373+10
11374+11
11375+12
11376+13
11377+14
11378+15
11379+16
11380+17
11381+18
11382+19
11383+20
11384+21
11385+22
11386+23
11387+24
11388+
710311389 purchaser, in the same manner this section applies to a controllable
710411390 electronic record.
7105-
710611391 (b) To determine whether a purchaser of a controllable account
7107-or a controllable payment intangible is a qualifying purchaser, the ENR. H. B. NO. 2776 Page 160
11392+or a controllable payment intangible is a qualifying purchaser, the
710811393 purchaser obtains control of the account or payment intangible if it
710911394 obtains control of the controllable electronic record that evidences
711011395 the account or payment intangible.
7111-
711211396 (c) Except as provided in this section, law other than this
711311397 article determines whether a person acqu ires a right in a
711411398 controllable electronic record and the right the person acquires.
7115-
711611399 (d) A purchaser of a controllable electronic record acquires
711711400 all rights in the controllable electronic record that the transferor
711811401 had or had power to transfer, except that a purchaser of a limited
711911402 interest in a controllable electronic record acquires rights only to
712011403 the extent of the interest purchased.
7121-
712211404 (e) A qualifying purchaser acquires its rights in the
712311405 controllable electronic record free of a claim of a property right
712411406 in the controllable elect ronic record.
7125-
712611407 (f) Except as provided in subsections (a) and (e) of this
712711408 section for a controllable account and a controllable payment
712811409 intangible or law other than this article, a qualifying purchaser
712911410 takes a right to payment, right to performance, or other interest in
713011411 property evidenced by the controllable electronic record subject to
11412+
11413+SENATE FLOOR VERSION - HB2776 SFLR Page 225
11414+(Bold face denotes Committee Amendments) 1
11415+2
11416+3
11417+4
11418+5
11419+6
11420+7
11421+8
11422+9
11423+10
11424+11
11425+12
11426+13
11427+14
11428+15
11429+16
11430+17
11431+18
11432+19
11433+20
11434+21
11435+22
11436+23
11437+24
11438+
713111439 a claim of a property right in the right to payment, right to
713211440 performance, or other interest in property.
7133-
713411441 (g) An action may not be asserted against a qualifying
713511442 purchaser based on both a purchase by the qualifying purchaser of a
713611443 controllable electronic record and a claim of a property right in
713711444 another controllable electronic record, whether the action is framed
713811445 in conversion, replevin, constructive tru st, equitable lien, or
713911446 other theory.
7140-
714111447 (h) Filing of a financing statement under Article 9 of this
714211448 title is not notice of a claim of a property right in a controllable
714311449 electronic record.
7144-
714511450 SECTION 95. NEW LAW A new section of law to be codified
714611451 in the Oklahoma Statutes as Section 12 -105 of Title 12A, unless
714711452 there is created a duplication in numbering, reads as follows:
7148-
714911453 CONTROL OF CONTROLLABLE ELECTRONIC RECORD
7150-
715111454 (a) A person has control of a controllable electronic record if
7152-the electronic record, a record attached to or logically associated ENR. H. B. NO. 2776 Page 161
11455+the electronic record, a record attached to or logically associated
715311456 with the electronic record, or a system in which the electronic
715411457 record is recorded:
7155-
715611458 (1) gives the person:
7157-
715811459 (A) power to avail itself of substantially all the benefit
715911460 from the electronic record; and
7160-
716111461 (B) exclusive power, subjec t to subsection (b) of this
716211462 section, to:
11463+
11464+SENATE FLOOR VERSION - HB2776 SFLR Page 226
11465+(Bold face denotes Committee Amendments) 1
11466+2
11467+3
11468+4
11469+5
11470+6
11471+7
11472+8
11473+9
11474+10
11475+11
11476+12
11477+13
11478+14
11479+15
11480+16
11481+17
11482+18
11483+19
11484+20
11485+21
11486+22
11487+23
11488+24
716311489
716411490 (i) prevent others from availing themselves of
716511491 substantially all the benefit from the electronic
716611492 record; and
7167-
716811493 (ii) transfer control of the electronic record to
716911494 another person or cause another person to obtain
717011495 control of another controllable electronic record
717111496 as a result of the transfer of the electronic
717211497 record; and
7173-
717411498 (2) enables the person readily to identify itself in any way,
717511499 including by name, identifying number, cryptographic key, office, or
717611500 account number, as havi ng the powers specified in paragraph (1) of
717711501 this subsection.
7178-
717911502 (b) Subject to subsection (c) of this section, a power is
718011503 exclusive under divisions (i) and (ii) of subparagraph (B) of
718111504 paragraph (1) of subsection (a) of this section ev en if:
7182-
718311505 (1) the controllable electronic record, a record attached to or
718411506 logically associated with the electronic record, or a system in
718511507 which the electronic record is recorded limits the use of the
718611508 electronic record or has a protocol programmed to cause a change,
718711509 including a transfer or loss of control or a modification of
718811510 benefits afforded by the electronic record; or
7189-
719011511 (2) the power is shared with another person.
11512+
11513+SENATE FLOOR VERSION - HB2776 SFLR Page 227
11514+(Bold face denotes Committee Amendments) 1
11515+2
11516+3
11517+4
11518+5
11519+6
11520+7
11521+8
11522+9
11523+10
11524+11
11525+12
11526+13
11527+14
11528+15
11529+16
11530+17
11531+18
11532+19
11533+20
11534+21
11535+22
11536+23
11537+24
719111538
719211539 (c) A power of a person is not shared with another person under
719311540 paragraph (2) of subsection ( b) of this section and the person's
719411541 power is not exclusive if:
7195-
719611542 (1) the person can exercise the power only if the power also is
7197-exercised by the other person; and ENR. H. B. NO. 2776 Page 162
7198-
11543+exercised by the other person; and
719911544 (2) the other person:
7200-
720111545 (A) can exercise the power without exercise of the power
720211546 by the person; or
7203-
720411547 (B) is the transferor to the person of an interest in the
720511548 controllable electronic record or a controllable
720611549 account or controllable payment intangible evidenced
720711550 by the controllable electronic record.
7208-
720911551 (d) If a person has the powers specified in divisio ns (i) and
721011552 (ii) of subparagraph (B) of paragraph (1) of subsection (a) of this
721111553 section, the powers are presumed to be exclusive.
7212-
721311554 (e) A person has control of a controllable electronic record if
721411555 another person, other than the transferor to the person of an
721511556 interest in the controll able electronic record or a controllable
721611557 account or controllable payment intangible evidenced by the
721711558 controllable electronic record:
7218-
721911559 (1) has control of the electronic record and acknowledges that
722011560 it has control on behalf of the per son; or
11561+
11562+SENATE FLOOR VERSION - HB2776 SFLR Page 228
11563+(Bold face denotes Committee Amendments) 1
11564+2
11565+3
11566+4
11567+5
11568+6
11569+7
11570+8
11571+9
11572+10
11573+11
11574+12
11575+13
11576+14
11577+15
11578+16
11579+17
11580+18
11581+19
11582+20
11583+21
11584+22
11585+23
11586+24
722111587
722211588 (2) obtains control of the electronic record after having
722311589 acknowledged that it will obtain control of the electronic record on
722411590 behalf of the person.
7225-
722611591 (f) A person that has control under this section is not
722711592 required to acknowledge that it has contr ol on behalf of another
722811593 person.
7229-
723011594 (g) If a person acknowledges that it has or will obtain control
723111595 on behalf of another person, unless the person otherwise agrees or
723211596 law other than this article or Article 9 of this title otherwise
723311597 provides, the person does n ot owe any duty to the other person and
723411598 is not required to confirm the acknowledgment to any other person.
7235-
723611599 SECTION 96. NEW LAW A new section of law to be codified
723711600 in the Oklahoma Statutes as Section 12 -106 of Title 12A, unless
723811601 there is created a duplication in numbering, reads as follows:
7239-
724011602 DISCHARGE OF ACCOUNT DEBTOR ON CONTROLLABLE ACCOUNT OR CONTROLLABLE
724111603 PAYMENT INTANGIBLE
7242- ENR. H. B. NO. 2776 Page 163
724311604 (a) An account debtor on a controllable account or controllable
724411605 payment intangible may discharge its obligation by paying:
7245-
724611606 (1) the person having control of the controllable electronic
724711607 record that evidences the controllable account or controllable
724811608 payment intangible; or
7249-
725011609 (2) except as provided in subsection (b) of this section, a
725111610 person that formerly had control of the controllable electr onic
725211611 record.
11612+
11613+SENATE FLOOR VERSION - HB2776 SFLR Page 229
11614+(Bold face denotes Committee Amendments) 1
11615+2
11616+3
11617+4
11618+5
11619+6
11620+7
11621+8
11622+9
11623+10
11624+11
11625+12
11626+13
11627+14
11628+15
11629+16
11630+17
11631+18
11632+19
11633+20
11634+21
11635+22
11636+23
11637+24
725311638
725411639 (b) Subject to subsection (d) of this section, the account
725511640 debtor may not discharge its obligation by paying a person that
725611641 formerly had control of the controllable electronic record if the
725711642 account debtor receives a not ification that:
7258-
725911643 (1) is signed by a person that formerly had control or the
726011644 person to which control was transferred;
7261-
726211645 (2) reasonably identifies the controllable account or
726311646 controllable payment intangible;
7264-
726511647 (3) notifies the account debtor that control of th e
726611648 controllable electroni c record that evidences the controllable
726711649 account or controllable payment intangible was transferred;
7268-
726911650 (4) identifies the transferee, in any reasonable way, including
727011651 by name, identifying number, cryptographic key, office, or account
727111652 number; and
7272-
727311653 (5) provides a commercially reasonable method by which the
727411654 account debtor is to pay the transferee.
7275-
727611655 (c) After receipt of a notification that complies with
727711656 subsection (b) of this section, the account debtor may discharge its
727811657 obligation by paying in accordance with t he notification and may not
727911658 discharge the obligation by paying a person that formerly had
728011659 control.
7281-
728211660 (d) Subject to subsection (h) of this section, notification is
728311661 ineffective under subsection (b) of this section:
728411662
11663+SENATE FLOOR VERSION - HB2776 SFLR Page 230
11664+(Bold face denotes Committee Amendments) 1
11665+2
11666+3
11667+4
11668+5
11669+6
11670+7
11671+8
11672+9
11673+10
11674+11
11675+12
11676+13
11677+14
11678+15
11679+16
11680+17
11681+18
11682+19
11683+20
11684+21
11685+22
11686+23
11687+24
11688+
728511689 (1) unless, before the notification is sent, the account debtor
728611690 and the person that, at that time, had control of the controllable
7287-electronic record that evidences the controllable account or ENR. H. B. NO. 2776 Page 164
11691+electronic record that evidences the controllable account or
728811692 controllable payment intangible agree in a signed record to a
728911693 commercially reasona ble method by which a pe rson may furnish
729011694 reasonable proof that control has been transferred;
7291-
729211695 (2) to the extent an agreement between the account debtor and
729311696 seller of a payment intangible limits the account debtor's duty to
729411697 pay a person other than the selle r and the limitation is effective
729511698 under law other than this article; or
7296-
729711699 (3) at the option of the account debtor, if the notification
729811700 notifies the account debtor to:
7299-
730011701 (A) divide a payment;
7301-
730211702 (B) make less than the full amount of an installment or
730311703 other periodic payment; or
7304-
730511704 (C) pay any part of a payment by more than one method or
730611705 to more than one person.
7307-
730811706 (e) Subject to subsection (h) of this section, if requested by
730911707 the account debtor, the person giving the notification under
731011708 subsection (b) of this section sea sonably shall furnish reasonable
731111709 proof, using the method in the agreement referred to in paragraph
731211710 (1) of subsection (d) of this section, that control of the
731311711 controllable electronic record has been transferred. Unless the
731411712 person complies with the request, the account debtor may discharge
11713+
11714+SENATE FLOOR VERSION - HB2776 SFLR Page 231
11715+(Bold face denotes Committee Amendments) 1
11716+2
11717+3
11718+4
11719+5
11720+6
11721+7
11722+8
11723+9
11724+10
11725+11
11726+12
11727+13
11728+14
11729+15
11730+16
11731+17
11732+18
11733+19
11734+20
11735+21
11736+22
11737+23
11738+24
11739+
731511740 its obligation by paying a person that formerly had control, even if
731611741 the account debtor has received a notification under subsection (b)
731711742 of this section.
7318-
731911743 (f) A person furnishes reasonable proof under subsection (e) of
732011744 this section that control has been transferred if the person
732111745 demonstrates, using the method in the agreement referred to in
732211746 paragraph 1 of subsection (d) of this section, that the transferee
732311747 has the power to:
7324-
732511748 (1) avail itself of substantially all the benefit from the
732611749 controllable electronic record;
7327-
732811750 (2) prevent others from availing themselves of substantially
732911751 all the benefit from the controllable electronic record; and
7330-
733111752 (3) transfer the powers specified in paragraphs (1) and (2) of
7332-this subsection to another person. ENR. H. B. NO. 2776 Page 165
7333-
11753+this subsection to another person.
733411754 (g) Subject to subsection (h) of this section, an account
733511755 debtor may not waive or vary its rights under paragraph (1) of
733611756 subsection (d) and subsection (e) of this section or its option
733711757 under paragraph (3) of subsection (d) of this section.
7338-
733911758 (h) This section is subject to law other than this article
734011759 which establishes a different rule for an account debtor who is an
734111760 individual and who incurred the obligation primarily for personal,
734211761 family, or household purposes.
734311762
11763+SENATE FLOOR VERSION - HB2776 SFLR Page 232
11764+(Bold face denotes Committee Amendments) 1
11765+2
11766+3
11767+4
11768+5
11769+6
11770+7
11771+8
11772+9
11773+10
11774+11
11775+12
11776+13
11777+14
11778+15
11779+16
11780+17
11781+18
11782+19
11783+20
11784+21
11785+22
11786+23
11787+24
11788+
734411789 SECTION 97. NEW LAW A new section of law to be codified
734511790 in the Oklahoma Statutes as Section 12 -107 of Title 12A, unless
734611791 there is created a duplication in numbering, reads as follows:
7347-
734811792 GOVERNING LAW
7349-
735011793 (a) Except as provided in subsection (b) of this section, the
735111794 local law of a controllable electro nic record's jurisdiction governs
735211795 a matter covered by this article.
7353-
735411796 (b) For a controllable electronic record that evidences a
735511797 controllable account or controllable payment intangible, the local
735611798 law of the controllable electronic rec ord's jurisdiction governs a
735711799 matter covered by Section 12 -106 of this title unless an effective
735811800 agreement determines that the local law of another jurisdiction
735911801 governs.
7360-
736111802 (c) The following rules determine a controllable electronic
736211803 record's jurisdiction unde r this section:
7363-
736411804 (1) If the controllable electronic record, or a record attached
736511805 to or logically associated with the controllable electronic record
736611806 and readily available for review, expressly provides that a
736711807 particular jurisdiction is the controllable elec tronic record's
736811808 jurisdiction for purposes of this article or the Uniform Commercial
736911809 Code, that jurisdiction is the controllable electronic record's
737011810 jurisdiction.
7371-
737211811 (2) If paragraph (1) of this subsection does not apply and the
737311812 rules of the system in which t he controllable electron ic record is
11813+
11814+SENATE FLOOR VERSION - HB2776 SFLR Page 233
11815+(Bold face denotes Committee Amendments) 1
11816+2
11817+3
11818+4
11819+5
11820+6
11821+7
11822+8
11823+9
11824+10
11825+11
11826+12
11827+13
11828+14
11829+15
11830+16
11831+17
11832+18
11833+19
11834+20
11835+21
11836+22
11837+23
11838+24
11839+
737411840 recorded are readily available for review and expressly provide that
737511841 a particular jurisdiction is the controllable electronic record's
7376-jurisdiction for purposes of this article or the Uniform Commercial ENR. H. B. NO. 2776 Page 166
11842+jurisdiction for purposes of this article or the Uniform Commercial
737711843 Code, that jurisdiction is the controllable electronic record's
737811844 jurisdiction.
7379-
738011845 (3) If paragraphs (1) and (2) of this subsection do not apply
738111846 and the controllable electronic record, or a record attached to or
738211847 logically associated with the controllable electronic record and
738311848 readily available for r eview, expressly provides that the
738411849 controllable electronic record is governed by the law of a
738511850 particular jurisdiction, that jurisdiction is the controllable
738611851 electronic record's jurisdiction.
7387-
738811852 (4) If paragraphs (1), (2), and (3) of t his subsection do not
738911853 apply and the rules of the system in which the controllable
739011854 electronic record is recorded are readily available for review and
739111855 expressly provide that the controllable electronic record or the
739211856 system is governed by the law of a particu lar jurisdiction, that
739311857 jurisdiction is the controllable electronic record's jurisdiction.
7394-
739511858 (5) If paragraphs (1) through (4) of this subsection do not
739611859 apply, the controllable electronic record's jurisdiction is the
739711860 District of Columbia.
7398-
739911861 (d) If paragraph (5) of subsection (c) of this section applies
740011862 and Article 12 is not in effect in the District of Columbia without
740111863 material modification, the governing law for a matter covered by
11864+
11865+SENATE FLOOR VERSION - HB2776 SFLR Page 234
11866+(Bold face denotes Committee Amendments) 1
11867+2
11868+3
11869+4
11870+5
11871+6
11872+7
11873+8
11874+9
11875+10
11876+11
11877+12
11878+13
11879+14
11880+15
11881+16
11882+17
11883+18
11884+19
11885+20
11886+21
11887+22
11888+23
11889+24
11890+
740211891 this article is the law of the District of Columbia as though
740311892 Article 12 were in effect in the Distric t of Columbia without
740411893 material modification. In this subsection, "Article 12" means
740511894 Article 12 of Uniform Commercial Code Amendments (2022).
7406-
740711895 (e) To the extent subsections (a) and (b) of this section
740811896 provide that the local law of t he controllable electronic record's
740911897 jurisdiction governs a matter covered by this article, that law
741011898 governs even if the matter or a transaction to which the matter
741111899 relates does not bear any relation to the controllable electronic
741211900 record's jurisdiction.
7413-
741411901 (f) The rights acquired un der Section 12-104 of this title by a
741511902 purchaser or qualifying purchaser are governed by the law applicable
741611903 under this section at the time of purchase.
7417-
741811904 SECTION 98. NEW LAW A new section of law to be codified
741911905 in the Oklahoma Statutes as Article A, Part 1, Section A -101 of
742011906 Title 12A, unless there is created a duplication in numbering, reads
7421-as follows: ENR. H. B. NO. 2776 Page 167
7422-
11907+as follows:
742311908 SHORT TITLE
7424-
742511909 This article, Sections 99 through 106 of this act, may be cited
742611910 as Uniform Commercial Code - Transitional Provisions for Unif orm
742711911 Commercial Code Amendments (2022).
7428-
742911912 SECTION 99. NEW LAW A new section of law to be codified
743011913 in the Oklahoma Statutes as Article A, Part 1, Section A -102 of
11914+
11915+SENATE FLOOR VERSION - HB2776 SFLR Page 235
11916+(Bold face denotes Committee Amendments) 1
11917+2
11918+3
11919+4
11920+5
11921+6
11922+7
11923+8
11924+9
11925+10
11926+11
11927+12
11928+13
11929+14
11930+15
11931+16
11932+17
11933+18
11934+19
11935+20
11936+21
11937+22
11938+23
11939+24
11940+
743111941 Title 12A, unless there is created a duplication i n numbering, reads
743211942 as follows:
7433-
743411943 DEFINITIONS
7435-
743611944 (a) As used in this article:
7437-
743811945 (1) "Adjustment date" means July 1, 2025, or the date that is
743911946 one (1) year after the effective date of this act, whichever is
744011947 later;
7441-
744211948 (2) "Article 12" means Article 12 of the Uniform Commercial
744311949 Code; and
7444-
744511950 (3) "Article 12 property" means a controllable account,
744611951 controllable electronic record, or controllable payment intangible.
7447-
744811952 (b) The following definitions in other articles of the Uniform
744911953 Commercial Code apply to this article:
7450-
745111954 "Controllable account", Section 1 -9-102 of this title.
7452-
745311955 "Controllable electronic record", Section 12 -102 of this title.
7454-
745511956 "Controllable payment intangible", Section 1 -9-102 of this
745611957 title.
7457-
745811958 "Financing statement", Section 1 -9-102 of this title.
7459-
746011959 (c) Article 1 of this title contains general d efinitions and
746111960 principles of construction and interpretation applicable throughout
746211961 this article.
7463-
746411962 SECTION 100. NEW LAW A new section of law to be codified
7465-in the Oklahoma Statutes as Article A, Part 2, Section A-201 of ENR. H. B. NO. 2776 Page 168
11963+in the Oklahoma Statutes as Article A, Part 2, Section A -201 of
11964+
11965+SENATE FLOOR VERSION - HB2776 SFLR Page 236
11966+(Bold face denotes Committee Amendments) 1
11967+2
11968+3
11969+4
11970+5
11971+6
11972+7
11973+8
11974+9
11975+10
11976+11
11977+12
11978+13
11979+14
11980+15
11981+16
11982+17
11983+18
11984+19
11985+20
11986+21
11987+22
11988+23
11989+24
11990+
746611991 Title 12A, unless there is created a duplication in numbering, reads
746711992 as follows:
7468-
746911993 SAVINGS CLAUSE
7470-
747111994 Except as provided in Part 3 of Article A of this title, a
747211995 transaction validly entered into before the effective date of this
747311996 act and the rights, duties , and interests flowing from the
747411997 transaction remain valid thereafter and may be terminated,
747511998 completed, consummated, or enforced as required or permitted by law
747611999 other than the Uniform Commercial Code or, if applicable, the
747712000 Uniform Commercial Code, as though this act had not taken effect.
7478-
747912001 SECTION 101. NEW LAW A new section of law to be codified
748012002 in the Oklahoma Statutes as Article A, Part 3, Section A -301 of
748112003 Title 12A, unless there is created a duplication in numbering, reads
748212004 as follows:
7483-
748412005 SAVINGS CLAUSE
7485-
748612006 (a) Except as provided in this part, Article 9 of this title as
748712007 amended by this act and Article 12 of this title apply to a
748812008 transaction, lien, or other interest in property, even if the
748912009 transaction, lien, or interest was entered into, creat ed, or
749012010 acquired before the effective date of this act.
7491-
749212011 (b) Except as provided in subsection (c) of this section and
749312012 Sections A-302 through A-306 of this title:
7494-
749512013 (1) a transaction, lien, or interest in property that was
749612014 validly entered into, created, or tr ansferred before the eff ective
12015+
12016+SENATE FLOOR VERSION - HB2776 SFLR Page 237
12017+(Bold face denotes Committee Amendments) 1
12018+2
12019+3
12020+4
12021+5
12022+6
12023+7
12024+8
12025+9
12026+10
12027+11
12028+12
12029+13
12030+14
12031+15
12032+16
12033+17
12034+18
12035+19
12036+20
12037+21
12038+22
12039+23
12040+24
12041+
749712042 date of this act and was not governed by the Uniform Commercial
749812043 Code, but would be subject to Article 9 of this title as amended by
749912044 this act or Article 12 of this title if it had been entered into,
750012045 created, or transferred on or after the effective date of this act,
750112046 including the rights, duties, and interests flowing from the
750212047 transaction, lien, or interest, remains valid on and after the
750312048 effective date of this act; and
7504-
750512049 (2) the transaction, lien, or interest may be terminated,
750612050 completed, consummated, and enforced as required or permitted by
750712051 this act or by the law that would apply if this act had not taken
750812052 effect.
7509- ENR. H. B. NO. 2776 Page 169
751012053 (c) This act does not affect an action, case, or proceeding
751112054 commenced before the effective date of this act.
7512-
751312055 SECTION 102. NEW LAW A new section of law to be codified
751412056 in the Oklahoma Statutes as Section A -302 of Title 12A, unless there
751512057 is created a duplication in numbering, reads as follows:
7516-
751712058 SECURITY INTEREST PERFECTED BEFORE EFFECTIVE DATE
7518-
751912059 (a) A security interest that is enforceable and perfected
752012060 immediately before the effective date of this act is a perfected
752112061 security interest under this act if, on the effective date of this
752212062 act, the requirements for enforceability and perfection under this
752312063 act are satisfied without further action.
7524-
752512064 (b) If a security interest is enforceable and perfected
752612065 immediately before the effective date of this act, but the
12066+
12067+SENATE FLOOR VERSION - HB2776 SFLR Page 238
12068+(Bold face denotes Committee Amendments) 1
12069+2
12070+3
12071+4
12072+5
12073+6
12074+7
12075+8
12076+9
12077+10
12078+11
12079+12
12080+13
12081+14
12082+15
12083+16
12084+17
12085+18
12086+19
12087+20
12088+21
12089+22
12090+23
12091+24
12092+
752712093 requirements for enforceability or perfection under this act are not
752812094 satisfied on the effective date of this act, the security i nterest:
7529-
753012095 (1) is a perfected security interest until the earlier of the
753112096 time perfection would have ceased under the law in effect
753212097 immediately before the effective date of this act or the adjustment
753312098 date;
7534-
753512099 (2) remains enforceable thereafter only if the security
753612100 interest satisfies the requirements for enforceability under Section
753712101 1-9-203 of this title, as amended by this act, before the adjustment
753812102 date; and
7539-
754012103 (3) remains perfected thereafter only if the requirement s for
754112104 perfection under this act are satisfied before the time specified in
754212105 paragraph (1) of this subsection.
7543-
754412106 SECTION 103. NEW LAW A new section of law to be codified
754512107 in the Oklahoma Statutes as Section A -303 of Title 12A, unless there
754612108 is created a duplication in numbering, reads as follows:
7547-
754812109 SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE DATE
7549-
755012110 A security interest that is enforceable immediately before the
755112111 effective date of this act but is unperfected at that time:
7552-
755312112 (1) Remains an enforce able security interest u ntil the
7554-adjustment date; ENR. H. B. NO. 2776 Page 170
7555-
12113+adjustment date;
755612114 (2) Remains enforceable thereafter if the security interest
755712115 becomes enforceable under Section 1 -9-203 of this title, as amended
12116+
12117+SENATE FLOOR VERSION - HB2776 SFLR Page 239
12118+(Bold face denotes Committee Amendments) 1
12119+2
12120+3
12121+4
12122+5
12123+6
12124+7
12125+8
12126+9
12127+10
12128+11
12129+12
12130+13
12131+14
12132+15
12133+16
12134+17
12135+18
12136+19
12137+20
12138+21
12139+22
12140+23
12141+24
12142+
755812143 by this act, on the effective date of this act or before the
755912144 adjustment date; and
7560-
756112145 (3) Becomes perfected:
7562-
756312146 (A) without further action, on the effective date of this
756412147 act if the requirements for perfection under this act
756512148 are satisfied before or at that time; or
7566-
756712149 (B) when the requirements for perfection are satisfied if
756812150 the requirements are satisfied after tha t time.
7569-
757012151 SECTION 104. NEW LAW A new section of law to be codified
757112152 in the Oklahoma Statutes as Section A -304 of Title 12A, unless there
757212153 is created a duplication in numbering, reads as follows:
7573-
757412154 EFFECTIVENESS OF ACTIONS TAKEN BEFORE EFFECTIVE DATE
7575-
757612155 (a) If action, other than the filing of a financing statement,
757712156 is taken before the effective date of this act and the action would
757812157 have resulted in perfection of the security interest had the
757912158 security interest become enfo rceable before the effec tive date of
758012159 this act, the action is effective to perfect a security interest
758112160 that attaches under this act before the adjustment date. An
758212161 attached security interest becomes unperfected on the adjustment
758312162 date unless the security int erest becomes a perfected security
758412163 interest under this act before the adjustment date.
7585-
758612164 (b) The filing of a financing statement before the effective
758712165 date of this act is effective to perfect a security interest on the
12166+
12167+SENATE FLOOR VERSION - HB2776 SFLR Page 240
12168+(Bold face denotes Committee Amendments) 1
12169+2
12170+3
12171+4
12172+5
12173+6
12174+7
12175+8
12176+9
12177+10
12178+11
12179+12
12180+13
12181+14
12182+15
12183+16
12184+17
12185+18
12186+19
12187+20
12188+21
12189+22
12190+23
12191+24
12192+
758812193 effective date of this act to the exten t the filing would satis fy
758912194 the requirements for perfection under this act.
7590-
759112195 (c) The taking of an action before the effective date of this
759212196 act is sufficient for the enforceability of a security interest on
759312197 the effective date of this act if the action would satisfy the
759412198 requirements for enforceability under this act.
7595-
759612199 SECTION 105. NEW LAW A new section of law to be codified
759712200 in the Oklahoma Statutes as Section A -305 of Title 12A, unless there
759812201 is created a duplication in numbering, reads as follows:
7599- ENR. H. B. NO. 2776 Page 171
760012202 PRIORITY
7601-
760212203 (a) Subject to subsections (b) and (c) of this section, this
760312204 act determines the priority of conflicting claims to collateral.
7604-
760512205 (b) Subject to subsection (c) of this section, if the
760612206 priorities of claims to collateral were established befo re the
760712207 effective date of this act, Article 9 of this title as in effect
760812208 before the effective date of this act determines priority.
7609-
761012209 (c) On the adjustment date, to the extent the priorities
761112210 determined by Article 9 of this title as amended by this act modify
761212211 the priorities establis hed before the effective date of this act,
761312212 the priorities of claims to Article 12 of this title and property
761412213 established before the effective date of this act cease to apply.
7615-
761612214 SECTION 106. NEW LAW A new section of law to be codified
761712215 in the Oklahoma Statutes as Section A -306 of Title 12A, unless there
761812216 is created a duplication in numbering, reads as follows:
761912217
12218+SENATE FLOOR VERSION - HB2776 SFLR Page 241
12219+(Bold face denotes Committee Amendments) 1
12220+2
12221+3
12222+4
12223+5
12224+6
12225+7
12226+8
12227+9
12228+10
12229+11
12230+12
12231+13
12232+14
12233+15
12234+16
12235+17
12236+18
12237+19
12238+20
12239+21
12240+22
12241+23
12242+24
12243+
762012244 PRIORITY OF CLAIMS WHEN PRIORITY RULES OF ARTICLE 9 DO NOT APPLY
7621-
762212245 (a) Subject to subsections (b) and (c) of this section, Article
762312246 12 of this title determines the priority of conflicting claims to
762412247 Article 12 property when the priority rules of Article 9 of this
762512248 title as amended by this act do not apply.
7626-
762712249 (b) Subject to subsection (c) of this section, when the
762812250 priority rules of Article 9 of this title as amended by this act do
762912251 not apply and the priorities of claims to Article 12 property were
763012252 established before the effective date of this act, law other than
763112253 Article 12 of this title determines priority.
7632-
763312254 (c) When the priority rules of Arti cle 9 of this title as
763412255 amended by this act do not apply, to the extent the priorities
763512256 determined by this act modify the priorities established before the
763612257 effective date of this act, the priorities of claims to Article 12
763712258 property established before the effective date of this act cease to
763812259 apply on the adjustment date.
7639-
764012260 SECTION 107. NEW LAW A new section of law to be codified
764112261 in the Oklahoma Statutes as Article A, Part 4, Section A -401 of
764212262 Title 12A, unless there is a duplication in number ing, reads as
764312263 follows:
7644- ENR. H. B. NO. 2776 Page 172
764512264 Nothing in this act may be construed to support, endorse,
764612265 create, or implement a national digital currency.
764712266
12267+
12268+
12269+SENATE FLOOR VERSION - HB2776 SFLR Page 242
12270+(Bold face denotes Committee Amendments) 1
12271+2
12272+3
12273+4
12274+5
12275+6
12276+7
12277+8
12278+9
12279+10
12280+11
12281+12
12282+13
12283+14
12284+15
12285+16
12286+17
12287+18
12288+19
12289+20
12290+21
12291+22
12292+23
12293+24
12294+
764812295 SECTION 108. This act shall become effective November 1, 2024.
7649- ENR. H. B. NO. 2776 Page 173
7650-Passed the House of Representative s the 11th day of March, 2024.
7651-
7652-
7653-
7654-
7655- Presiding Officer of the House
7656- of Representatives
7657-
7658-
7659-
7660-Passed the Senate the 15th day of April, 2024.
7661-
7662-
7663-
7664-
7665- Presiding Officer of the Senate
7666-
7667-
7668-OFFICE OF THE GOVERNOR
7669-Received by the Office of the Governor this ____________________
7670-day of ___________________, 20_______, at _______ o'clock _______ M.
7671-By: _________________________________
7672-Approved by the Governor of the State of Oklahoma this _____ ____
7673-day of ___________________, 20_______, at _______ o'clock _______ M.
7674-
7675-
7676- _________________________________
7677- Governor of the State of Oklahoma
7678-
7679-OFFICE OF THE SECRETARY OF STATE
7680-Received by the Office of the Secretary of State this __________
7681-day of ___________________, 20_______, at _______ o'clock _______ M.
7682-By: _________________________________
7683-
12296+COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
12297+April 2, 2024 - DO PASS