Oklahoma HB 3618: Motor vehicles; perfection of security interest; exception for certificate of title transfers; notice; effective date.

Bill Text

HB3618 FULLPCS1 Erick Harris-JBH
2/26/2024 5:51:57 pm
AMEND TITLE TO CONFORM TO AMENDMENTS

Amendment submitted by: Erick Harris
Adopted: _____________________________

______________________________________
Reading Clerk

COMMITTEE AMENDMENT
HOUSE OF REPRESENTATIVES
State of Oklahoma

SPEAKER:

CHAIR:

I move to amend HB3618
Of the printed Bill
Page Section Lines
Of the Engrossed Bill

By striking the Title, the Enacting Clause, the entire bill, and by
inserting in lieu thereof the following language:

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STATE OF OKLAHOMA

2nd Session of the 59th Legislature (2024)

PROPOSED COMMITTEE
SUBSTITUTE
FOR
HOUSE BILL NO. 3618 By: Harris

PROPOSED COMMITTEE SUBSTITUTE

An Act relating to motor vehicles; amending 47 O.S.
2021, Section 1110, as amended by Section 1, Chapter
204, O.S.L. 2022 (47 O.S. Supp. 2023, Section 1110),
which relates to perfection of security interest;
adding certain exception for certificate of title
transfers; requiring certain notice be given; and
providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 1110, as
amended by Section 1, Chapter 204, O.S.L. 2022 (47 O.S. Supp. 2023,
Section 1110), is amended to read as follows:
Section 1110. A. 1. Except for a security interest in
vehicles held by a dealer for sale or lease, a vehicle registered by
a federally recognized Indian tribe as provided in subsection G of
this section, and a vehicle being registered in this state which was
previously registered in another state and which title contains the
name of a secured party on the face of the other state certificate

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or title, and except as otherwise provided in subsection B of
Section 1105 of this title, a security interest in a vehicle as to
which a certificate of title may be properly issued by the Oklahoma
Tax Commission shall be perfected only when a lien entry form, and
the existing certificate of title, if any, or application for a
certificate of title and manufacturer's certificate of origin
containing the name and address of the secured party and the date of
the security agreement and the required fee are delivered to the Tax
Commission or to a motor license agent. As used in this section,
the term "dealer" shall be defined as provided in Section 1-112 of
this title and the term "security interest" shall be defined as
provided in paragraph (35) of Section 1-201 of Title 12A of the
Oklahoma Statutes. When a vehicle title is presented to a motor
license agent for transferring or registering and the documents
reflect a lienholder, the motor license agent shall perfect the lien
pursuant to subsection G of Section 1105 of this title. For the
purposes of this section, the term "vehicle" shall not include
special mobilized machinery, machinery used in highway construction
or road material construction, and rubber-tired road construction
vehicles including rubber-tired cranes. The filing and duration of
perfection of a security interest, pursuant to the provisions of
Title 12A of the Oklahoma Statutes including, but not limited to,
Section 1-9-311 of Title 12A of the Oklahoma Statutes, shall not be
applicable to perfection of security interests in vehicles as to

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which a certificate of title may be properly issued by the Tax
Commission, except as to vehicles held by a dealer for sale or lease
and except as provided in subsection D of this section. In all
other respects Title 12A of the Oklahoma Statutes shall be
applicable to such security interests in vehicles as to which a
certificate of title may be properly issued by the Tax Commission.
2. Whenever a person creates a security interest in a vehicle,
the person shall surrender to the secured party the certificate of
title or the signed application for a new certificate of title, on
the form prescribed by the Tax Commission, and the manufacturer's
certificate of origin. The secured party shall deliver the lien
entry form and the required lien filing fee within twenty-five (25)
days as provided hereafter with certificate of title or the
application for certificate of title and the manufacturer's
certificate of origin to the Tax Commission or to a motor license
agent. If the lien entry form, the lien filing fee and the
certificate of title or application for certificate of title and the
manufacturer's certificate of origin are delivered to the Tax
Commission or to a motor license agent within twenty-five (25) days
after the date of the lien entry form, perfection of the security
interest shall begin from the date of the execution of the lien
entry form, but otherwise, perfection of the security interest shall
begin from the date of the delivery to the Tax Commission or to a
motor license agent.

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