The bill amends the Oklahoma Vehicle License and Registration Act, specifically focusing on the provisions related to security interests in vehicles. It modifies the process for perfecting a security interest, which now requires the delivery of a lien entry form, the existing certificate of title or application for a new title, and the manufacturer's certificate of origin to the Tax Commission or a motor license agent. Additionally, the bill clarifies that motor license agents are prohibited from transferring the title of a vehicle with an active lien, except under certain conditions, such as transfers to individuals included in the loan agreement or to a trust created by such individuals. Notably, the bill removes the previous stipulation regarding title transfers to business entities under specific conditions.

Furthermore, the bill introduces a new requirement for secured parties to provide a release of a security interest within seven business days after satisfaction of the lien, with penalties for non-compliance. It also allows for the issuance of a new certificate of title omitting the security interest upon the release. The bill includes provisions for manufactured homes permanently affixed to real estate, ensuring that the rights of prior lienholders are preserved even if the title is canceled. The effective date for these changes is set for November 1, 2025.

Statutes affected:
Introduced: 47-1110