Okla. Stat. tit. 12A § 1-9-303

Current through Laws 2024, c. 453.

Section 1-9-303 - Law governing perfection and priority of security interests in goods covered by a certificate of title

(a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.

(b) Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.

(c) The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.

Okla. Stat. tit. 12A, § 1-9-303

Added by Laws 2000 , SB 1519, c. 371, § 23, eff. 7/1/2001.

Oklahoma Code Comment

This section governs choice of law issues where the collateral is goods covered by a certificate of title. Section 9-303(b) establishes when goods become subject to and cease to be subject to a certificate of title in a given state. This is essential because this is the point in time at which the choice of applicable law shifts under section 9-303(c) . These rules also resolve the conflict in existing Oklahoma case law evidenced by the two decisions of Garcia and Richardson. See Liberty National Bank and Trust Company of Oklahoma City v. Garcia, 686 p.2d 303 (Okla. Ct. App. 1984) (certificate of title lien entry perfection occurs upon proper submission of lien entry form); Security National Bank and Trust Company v. Richardson, 686 P.2d 293 (Okla. Ct. App. 1984) (perfection occurs only if and when the lien is notated on the face of the certificate of title). Garcia was correct (and Richardson incorrect) under prior law (see old section 9-303 and 47 Okla. Stat. section 1110), and this is confirmed by revised sections 9-303(b), 9-311, 9-308 , and 9-516(a) (submission to appropriate office constitutes perfection). These sections endorse the holding in Garcia and reject that of Richardson. See also Alvin C. Harrell, A Roadmap to Certificate of Title Issues in Revised Article 9, 53 Consumer Fin. L.Q. Rep. 202 (1999).

It should also be noted that the application of section 9-303 requires in addition that one consult applicable (non-UCC) certificate of title statutes. In Oklahoma those statutes included 47 Okla. Stat. Chap. 74, especially section 1110 ( vehicles and manufactured homes) and 63 Okla. Stat. Chap. 70, especially section 4013(boats) .