Can someone tell me/show me what the timing requirements are to process a release of lien on collateral covered by a Certificate of Title? 10 days? 7 days? 10 Business days? 7 Business days? TIA.

There was a new state law amendment that requires the secured party to release its security interest within 7 business days of satisfaction of the underlying debt, and either furnish or directly mail the release to the OTC and mail a copy to the last-known address of the debtor within that time period.

Effective 11/1/2015 the failure to furnish the release as required will still make the secured party liable to the debtor for a penalty of $100.00, BUT if written demand for release is received by the lienholder thereafter, the penalty shall increase to $100.00 per day for each additional business day not to exceed the lesser of $1,500.00 or the value of the vehicle plus any loss caused to the debtor for such failure. The higher penalty only applies when you have a written demand letter.

As a reminder, in the state of Oklahoma, a debtor only has 25 days to perfect a lien. If the borrower declares bankruptcy on the 26th day, the courts can declare the lien invalid. Bankruptcy law states 30 days, but remember, Oklahoma law says 25.

Thank you! That is exactly what I was looking for.

You are welcome! Paulie Loeffler had supplied that in an OBA Legal Briefs. Not sure if you are a member of the OBA, but they put out monthly Legal Briefs that have a lot of good information that is specific to Oklahoma. Paulie writes for it, and she is a wealth of knowledge