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Oklahoma Legislature· HB 3799Second Reading referred to Rules

An act relating to motor vehicles, the official text

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1                       STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3799               By: Adams

4

5

6                       AS INTRODUCED

7   An Act relating to motor vehicles; amending 47 O.S.

    2021, Section 1110, as last amended by Section 1,

8   Chapter 403, O.S.L. 2025 (47 O.S. Supp. 2025, Section

    1110), which relates to perfection of security

9   interest; modifying provision to add to vehicle title

    the spouse of person with active loan; and providing

10  an effective date.

11

12

13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

14  SECTION 1.      AMENDATORY  47 O.S. 2021, Section 1110, as

15 last amended by Section 1, Chapter 403, O.S.L. 2025 (47 O.S. Supp.

16 2025, Section 1110), is amended to read as follows:

17  Section 1110. A. 1. Except for a security interest in

18 vehicles held by a dealer for sale or lease, a vehicle registered by

19 a federally recognized Indian tribe as provided in subsection G of

20 this section, and a vehicle being registered in this state which was

21 previously registered in another state and which title contains the

22 name of a secured party on the face of the other state certificate

23 or title, and except as otherwise provided in subsection B of

24 Section 1105 of this title, a security interest in a vehicle as to

    Req. No. 14366                                                Page 1
 1 which a certificate of title may be properly issued by Service
 2 Oklahoma shall be perfected only when a lien entry form, and the
 3 existing certificate of title, if any, or application for a
 4 certificate of title and manufacturer's certificate of origin
 5 containing the name and address of the secured party and the date of
 6 the security agreement and the required fee are delivered to Service
 7 Oklahoma or to a licensed operator. As used in this section, the
 8 term "dealer" shall be defined as provided in Section 1-112 of this
 9 title and the term "security interest" shall be defined as provided
10 in paragraph (35) of Section 1-201 of Title 12A of the Oklahoma
11 Statutes. When a vehicle title is presented to a licensed operator
12 for transferring or registering and the documents reflect a
13 lienholder, the licensed operator shall perfect the lien pursuant to
14 subsection G of Section 1105 of this title. For the purposes of
15 this section, the term "vehicle" shall not include special mobilized
16 machinery, machinery used in highway construction or road material
17 construction and rubber-tired road construction vehicles including
18 rubber-tired cranes. The filing and duration of perfection of a
19 security interest, pursuant to the provisions of Title 12A of the
20 Oklahoma Statutes, including, but not limited to, Section 1-9-311 of
21 Title 12A of the Oklahoma Statutes, shall not be applicable to
22 perfection of security interests in vehicles as to which a
23 certificate of title may be properly issued by Service Oklahoma,
24 except as to vehicles held by a dealer for sale or lease and except

Req. No. 14366  Page 2
1 as provided in subsection D of this section. In all other respects

2 Title 12A of the Oklahoma Statutes shall be applicable to such

3 security interests in vehicles as to which a certificate of title

4 may be properly issued by Service Oklahoma.

5   2. Whenever a person creates a security interest in a vehicle,

6 the person shall surrender to the secured party the certificate of

7 title or the signed application for a new certificate of title, on

8 the form prescribed by Service Oklahoma, and the manufacturer's

9 certificate of origin. The secured party shall deliver the lien

10 entry form and the required lien filing fee within forty-five (45)

11 days as provided hereafter with certificate of title or the

12 application for certificate of title and the manufacturer's

13 certificate of origin to Service Oklahoma or to a licensed operator.

14 If the lien entry form, the lien filing fee and the certificate of

15 title or application for certificate of title and the manufacturer's

16 certificate of origin are delivered to Service Oklahoma or to a

17 licensed operator within forty-five (45) days after the date of the

18 lien entry form, perfection of the security interest shall begin

19 from the date of the execution of the lien entry form, but

20 otherwise, perfection of the security interest shall begin from the

21 date of the delivery to Service Oklahoma or to a licensed operator.

22  3. a. For each security interest recorded on a certificate

23  of title or manufacturer's certificate of origin, such

24  person shall pay a fee of Ten Dollars ($10.00), which

    Req. No. 14366                                                  Page 3
1   shall be in addition to other fees provided for in the

2   Oklahoma Vehicle License and Registration Act. Upon

3   the receipt of the lien entry form and the required

4   fees with either the certificate of title or an

5   application for certificate of title and

6   manufacturer's certificate of origin, a licensed

7   operator shall, by placement of a clearly

8   distinguishing mark, record the date and number shown

9   in a conspicuous place on each of these instruments.

10  Of the ten-dollar fee, the licensed operator shall

11  retain Two Dollars ($2.00) for recording the security

12  interest lien.

13  b. It shall be unlawful for any person to solicit,

14  accept, or receive any gratuity or compensation for

15  acting as a messenger and for acting as the agent or

16  representative of another person in applying for the

17  recording of a security interest or for the

18  registration of a motor vehicle and obtaining the

19  license plates or for the issuance of a certificate of

20  title therefor unless Service Oklahoma has appointed

21  and approved the person to perform such acts; and

22  before acting as a messenger, any such person shall

23  furnish to Service Oklahoma a surety bond in such

24

    Req. No. 14366                                      Page 4
1          amount as Service Oklahoma shall determine

2          appropriate.

3   4. The certificate of title or the application for certificate

4 of title and manufacturer's certificate of origin with the record of

5 the date of receipt clearly marked thereon shall be returned to the

6 debtor together with a notice that the debtor is required to

7 register and pay all additional fees and taxes due within thirty

8 (30) days from the date of purchase of the vehicle.

9   5. Any person creating a security interest in a vehicle that

10 has been previously registered in the debtor's name and on which all

11 taxes due the state have been paid shall surrender the certificate

12 of ownership to the secured party. The secured party shall have the

13 duty to record the security interest as provided in this section and

14 shall, at the same time, obtain a new certificate of title which

15 shall show the secured interest on the face of the certificate of

16 title.

17  6. The lien entry form with the date and assigned number

18 thereof clearly marked thereon shall be returned to the secured

19 party. If the lien entry form is received and authenticated, as

20 herein provided, by a licensed operator, the licensed operator shall

21 make a report thereof to Service Oklahoma upon the forms and in the

22 manner as may be prescribed by Service Oklahoma.

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    Req. No. 14366                                                  Page 5
1   7. Service Oklahoma shall have the duty to record the lien upon

2 the face of the certificate of title issued at the time of

3 registering and paying all fees and taxes due on the vehicle.

4   8. When there is an active lien from a commercial lender in

5 place on a vehicle, licensed operators shall be prohibited from

6 transferring the certificate of title on that vehicle until the lien

7 is satisfied, except when the title is transferred:

8          a. to a person whose name is included on the loan for

9          which the lien is placed pursuant to an agreement by

10         the lender and any party to the title, and to the

11         spouse of a person whose name is included on the loan,

12         provided that the lienholder is notified of the

13         transfer and the transfer does not affect the

14         validity, priority, or enforceability of the lien,

15         b. to a trust created by a person whose name is included

16         on the loan for which the lien is placed, or

17         c. from a person who has died, upon the submission of a

18         death certificate.

19 The provisions of this paragraph shall not be construed to release

20 any lien or debt based solely upon a transfer of certificate of

21 title.

22  B. 1. A secured party shall, within seven (7) business days

23 after the satisfaction of the security interest, furnish directly or

24 by mail a release of a security interest to Service Oklahoma and

    Req. No. 14366                                                  Page 6
1 mail a copy thereof to the last-known address of the debtor. If the

2 security interest has been satisfied by payment from a licensed used

3 motor vehicle dealer to whom the motor vehicle has been transferred,

4 the secured party shall also, within seven (7) business days after

5 receipt of a written request from such licensed used motor vehicle

6 dealer, mail an additional copy of the release to the dealer. If

7 the secured party fails to furnish the release as required, the

8 secured party shall be liable to the debtor for a penalty of One

9 Hundred Dollars ($100.00). Following the seven (7) business days

10 after satisfaction of the lien and upon receipt by the lienholder of

11 written communication demanding the release of the lien, thereafter

12 the penalty shall increase to One Hundred Dollars ($100.00) per day

13 for each additional day beyond seven (7) business days until

14 accumulating to One Thousand Five Hundred Dollars ($1,500.00) or the

15 value of the vehicle, whichever is less, and, in addition, any loss

16 caused to the debtor by such failure.

17  2. Upon release of a security interest the owner may obtain a

18 new certificate of title omitting reference to the security

19 interest, by submitting to Service Oklahoma or to a licensed

20 operator:

21  a. a release signed by the secured party, an application

22            for new certificate of title, and the proper fees, or

23  b. by submitting to Service Oklahoma or the licensed

24            operator an affidavit, supported by such documentation

    Req. No. 14366                                                 Page 7
1               as Service Oklahoma may require, by the owner on a

2               form prescribed by Service Oklahoma stating that the

3               security interest has been satisfied and stating the

4               reasons why a release cannot be obtained, an

5               application for a new certificate of title and the

6               proper fees.

7 Upon receiving such affidavit that the security interest has been

8 satisfied, Service Oklahoma shall issue a new certificate of title

9 eliminating the satisfied security interest and the name and address

10 of the secured parties who have been paid and satisfied. Service

11 Oklahoma shall accept a release of a security interest in any form

12 that identifies the debtor, the secured party, and the vehicle, and

13 contains the signature of the secured party. Service Oklahoma shall

14 not require any particular form for the release of a security

15 interest.

16  The words "security interest" when used in the Oklahoma Vehicle

17 License and Registration Act do not include liens dependent upon

18 possession.

19  C. Service Oklahoma shall file and index certificates of title

20 so that at all times it will be possible to trace a certificate of

21 title to the vehicle designated therein, identify the lien entry

22 form, and the names and addresses of secured parties, or their

23 assignees, so that all or any part of such information may be made

24 readily available to those who make legitimate inquiry of Service

    Req. No. 14366                                                 Page 8
1 Oklahoma as to the existence or nonexistence of security interest in

2 the vehicle.

3   D. 1. Any security interest in a vehicle properly perfected

4 prior to July 1, 1979, may be continued as to its effectiveness or

5 duration as provided by Sections 1-9-510 and 1-9-515 of Title 12A of

6 the Oklahoma Statutes, or may be terminated, assigned, or released

7 as provided by Sections 1-9-512, 1-9-513, and 1-9-514 of Title 12A

8 of the Oklahoma Statutes, as fully as if this section had not been

9 enacted, or, at the option of the secured party, may also be

10 perfected under this section, and, if so perfected, the time of

11 perfection under this section shall be the date the security

12 interest was originally perfected under the prior law.

13  2. Upon request of the secured party, the debtor or any other

14 holder of the certificate of title shall surrender the certificate

15 of title to the secured party and shall do such other acts as may be

16 required to perfect the security interest under this section.

17  E. If a manufactured home is permanently affixed to real

18 estate, an Oklahoma certificate of title may be surrendered to

19 Service Oklahoma or a licensed operator for cancellation. When the

20 document of title is surrendered, the owner shall provide the legal

21 description or the appropriate tract or parcel number of the real

22 estate and other information as may be required on a form provided

23 by Service Oklahoma. Service Oklahoma may not cancel a document of

24 title if a lien has been registered or recorded. Service Oklahoma

    Req. No. 14366                                                  Page 9
 1 or the licensed operator shall notify the owner and any lienholder
 2 that the title has been surrendered to Service Oklahoma and that
 3 Service Oklahoma may not cancel the title until the lien is
 4 released. Such notification shall include a description of the lien
 5 and such notification to the owner shall be accompanied by the
 6 return of title surrendered. Permanent attachment to real estate
 7 does not affect the validity of a lien recorded or registered with
 8 Service Oklahoma before the document of title is canceled pursuant
 9 to this section. The rights of a prior lienholder pursuant to a
10 security agreement or the provisions of a credit transaction and the
11 rights of the state pursuant to a tax lien are preserved. Service
12 Oklahoma or the licensed operator shall forward the information to
13 the county assessor of the county where the real estate is located
14 and indicate whether the original document of title has been
15 canceled. A fee of Five Dollars ($5.00) shall accompany the
16 application for cancellation of title. When the fee is paid by a
17 person making an application directly with Service Oklahoma, the fee
18 shall be deposited in the Oklahoma Tax Commission Fund. Beginning
19 January 1, 2023, the fee shall be deposited in the Service Oklahoma
20 Revolving Fund. A fee paid to a licensed operator shall be retained
21 by the licensed operator. The owner of a manufactured home upon
22 which the document of title has been properly surrendered may apply
23 to Service Oklahoma for issuance of a new original certificate of
24 title upon submission of:

Req. No. 14366  Page 10
1  1. An attestation from the homeowner indicating ownership of

2 the manufactured home and the nonexistence of any security interest

3 or lien of record in the manufactured home; and

4  2. A title opinion by a licensed attorney, determining that the

5 owner of the manufactured home has marketable title to the real

6 property upon which the manufactured home is located and that no

7 documents filed of record in the county clerk's office concerning

8 the real property contain a mortgage, recorded financial statement,

9 judgment, or lien of record. Persons or entities to whom the title

10 opinion is addressed may rely on the title opinion. A security

11 interest in a manufactured home perfected pursuant to this section

12 shall have priority over a conflicting interest of a mortgagee or

13 other lien encumbrancer, or the owner of the real property upon

14 which the manufactured home became affixed or otherwise permanently

15 attached. The holder of the security interest in the manufactured

16 home, upon default, may remove the manufactured home from such real

17 property. The holder of the security interest in the manufactured

18 home shall reimburse the owner of the real property who is not the

19 debtor and who has not otherwise agreed to access the real property

20 for the cost of repair of any physical injury to the real property,

21 but shall not be liable for any diminution in value to the real

22 property caused by the removal of the manufactured home, trespass,

23 or any other damages caused by the removal. The debtor shall notify

24 the holder of the security interest in the manufactured home of the

   Req. No. 14366                                  Page 11
1 street address, if any, and the legal description of the real

2 property upon which the manufactured home is affixed or otherwise

3 permanently attached and shall sign such other documents, including

4 any appropriate mortgage, as may reasonably be requested by the

5 holder of such security interest.

6   F. In the case of motor vehicles or trailers, notwithstanding

7 any other provision of law, a transaction does not create a sale or

8 security interest merely because it provides that the rental price

9 is permitted or required to be adjusted under the agreement either

10 upward or downward by reference to the amount realized upon sale or

11 other disposition of the motor vehicle or trailer.

12  G. A security interest in vehicles registered by a federally

13 recognized Indian tribe shall be deemed valid under Oklahoma law if

14 validly perfected under the applicable tribal law and the lien is

15 noted on the face of the tribal certificate of title.

16  SECTION 2. This act shall become effective November 1, 2026.

17

18  60-2-14366      JBH  12/09/25

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    Req. No. 14366                                               Page 12
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