Okla. Stat. tit. 12A § 1-9-605

Current through Laws 2024, c. 453.

Section 1-9-605 - [Effective Until 11/1/2024] Unknown debtor or secondary obligor

A secured party does not owe a duty based on its status as secured party:

(1) to a person that is a debtor or obligor, unless the secured party knows:

(A) that the person is a debtor or obligor;

(B) the identity of the person; and

(C) how to communicate with the person; or

(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

(A) that the person is a debtor; and

(B) the identity of the person.

Okla. Stat. tit. 12A, § 1-9-605

Added by Laws 2000 , SB 1519, c. 371, § 112, eff. 7/1/2001.

Oklahoma Code Comment

Revised section 9-605 is entirely new to Article 9 and affords protection in connection with violations involving parties unknown to the secured party.

An issue that may arise under this section is whether the secured party must take steps to acquire the requisite knowledge before it can claim the protection afforded by this section. Undoubtedly, the unwaivable obligation of the secured party to act in good faith prevents the secured party from burying its head in the sand, but the extent to which a secured party must take affirmative steps to acquire the requisite knowledge remains unclear in this age of electronic record-keeping and on-line information. Oklahoma cases like Georgia-Pacific Corp. v. Lumber Products Co., 590 P.2d 661 (Okla. 1979) and Smiley v. Wheeler, 602 P.2d 209 (Okla. 1979) demonstrate that a transferee of collateral is not insulated from debt liability, and that efforts by a transferee an assignee to avoid detection by the secured party should not be rewarded. This new provision assists that result.

This section is set out more than once due to postponed, multiple, or conflicting amendments.