Bill > SB565

This bill modifies Oklahoma's vehicle title and registration laws, primarily focusing on changes to how security interests (essentially liens) are handled during vehicle title transfers. The bill eliminates a provision that previously allowed title transfers to business entities when an individual owns at least 50% of the receiving business, removing the complex process that previously required notifications to lienholders and potential additions of transferring parties to the original loan. The bill also adjusts requirements for secured parties (lenders) when releasing security interests, maintaining existing penalties for failing to provide timely lien releases, which can be up to $1,500 or the vehicle's value. Additionally, the bill clarifies that the Tax Commission must accept lien release documents that simply identify the debtor, secured party, and vehicle with a signature, without requiring a specific form. The changes aim to streamline the title transfer and lien release process, making it more straightforward for vehicle owners and lenders. The bill will become effective on November 1, 2025, giving stakeholders time to prepare for the new regulations.

Transportation and Infrastructure

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb565&Session=2600