On May 20, OKL LEG passed bill regarding active liens on vehicles.
OKL LEG passed bill HB 3618 regarding active liens on vehicles and exception for certificate of title transfers, amending OKL INS 47-1110 Perfection of security interest.
Bill Provisions
When active lien from commercial lender is in place on vehicle, motor license agents prohibited from transferring certificate of title on that vehicle until the lien is satisfied.
Except when title is transferred upon attestation by member indicating ownership to business entity from person who owns at 50% of business entity receiving title.
As part of transfer, business entity receiving title, individual transferring title and receiving business entity may be added as obligor to original note secured by collateral
Shall not be construed to require refinancing of original note and OKL should provide notification of transaction to lienholder 90 days prior to effectuating the title transfer.
Title transfer initiated cannot preclude lienholder from exercising all remedies available to it in accordance with agreement between lienholder, individual transferring title.
Business entity shall be prohibited from transferring title to another entity or person.
Business entities that may receive transfer limited to sole or general proprietorships, limited partnerships, limited liability companies, professional limited partnerships.
No individual may perform a transfer to any business entity engaging in illegal activity.
Legislative History
On Feb. 5, 2024, bill introduced in House; on May 18, 2024, bill passed in House.
On Mar. 18, 2024, bill introduced in Senate; on May 13, 2024, bill passed in Senate.
On May 14, 2024, bill sent to governor; on May 20, 2024, bill approved by governor.
