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TITLE 42 LIENS
42-141 Persons Entitled to Mechanics Liens, Priorities, Constructive
Notice
42-141.1 Duties of Court Clerk Transferred to County Clerk
42-142 Statement of Lien, Time for Filing, Mechanics’
Lien Journal
42-142.1 Notice to Owner
42-142.2 Notice Signed by Owner
42-142.3 Original Contractor, Laborer or Materialman
42-142.4 To Falsify Any Statement Regarding Liens a Felony
42-142.5 Satisfaction of Written Notice Requirement
42-143 Statement of Lien, Filing, Time Limits, Limitation
of Liability of Owner, Payments to Original Contractor
42-143.1 Notice to Lien to be Mailed to Owner by County Clerk
42-143.2 Notice to Owner of Leased or Rented Equipment, Time
Limits
42-143.3 Leased or Rented Equipment Liens Shall Not Apply
to Certain Property
42-143.4 Equipment Used for Production of Oil or Gas
42-144 Oil and Gas Liens
42-144.1 Statement of Lien Claim to Purchaser of Oil or Gas
42-144.2 Payments for Drilling Work and Other Payments Held
as Trust Funds for Payment of Lienable Claims, Misappropriation
is Embezzlement
42-145 Liens Upon Oil and Gas Leaseholds
42-146 Enforcement of Liens, Filing Notice of Lien, Time Limits,
Extent of Liens
42-147.1 Release of Lien, Deposit of Money, Release Bond,
Notices, Objections to Bond, Parties
42-148 Coal Miners’ Liens
42-149 Foreclosure Suit, Limitations
42-150 Statement of Lien, Time Limits
42-151 Lightning Rods
42-152 Amounts Paid Under Building Contracts are Trust Funds,
Construction Loan Funds are Trust Funds, Real Estate Sales
Funds are Trust Funds
42-153 Payment of Trust Funds for Valid Lienable Claims, Embezzlement
42-154 Execution of Lien Statements and Releases
42-161 Railroad Liens
42-162 Foreclosure Suit
42-163 Judgment on Lien
42-164 10-Day Notice Requirement
42-171 Lien Claims and Actions are Assignable
42-172 Enforcement Action, Limitations and Practice
42-173 Parties to Action, Original Contractor Shall Defend
Action, Costs
42-174 Consolidation of Actions
42-175 Judgment of Sale
42-176 Attorneys Fees
42-177 Petition to Remove Lien, Lien is Cancelled if No Action
to Foreclose in One Year, Affidavit that Lien is Cancelled
42-178 Pro Rata Payment
42-180 Rental Lien on Manufactured Home, Storage Charges,
Priorities, Notice
OKLAHOMA
STATE STATUTES
TITLE 42 LIENS
42-141 Persons Entitled to Mechanics Liens, Priorities, Constructive
Notice
Any person who shall, under oral or written contract with
the owner of any tract or piece of land, perform labor, furnish
material or lease or rent equipment used on said land for
the erection, alteration or repair of any building, improvement
or structure thereon or perform labor in putting up any fixtures,
machinery in, or attachment to, any such building, structure
or improvements; or who shall plant any tree, vines, plants
or hedge in or upon such land; or who shall build, alter,
repair or furnish labor, material or lease or rent equipment
used on said land for buildings, altering, or repairing any
fence or footwalk in or upon said land, or any sidewalk in
any street abutting such land, shall have a lien upon the
whole of said tract or piece of land, the buildings and appurtenances.
If the title to the land is not in the person with whom such
contract was made, the lien shall be allowed on the buildings
and improvements on such land separately from the real estate.
Such liens shall be preferred to all other liens or encumbrances
which may attach to or upon such land, buildings or improvements
or either of them subsequent to the commencement of such building,
the furnishing or putting up of such fixtures or machinery,
the planting of such trees, vines, plants or hedges, the building
of such fence, footwalk or sidewalks, or the making of any
such repairs or improvements; and such lien shall follow said
property and each and every part thereof, and be enforceable
against the said property wherever the same may be found,
and compliance with the provisions of this act shall constitute
constructive notice of the claimant’s lien to all purchasers
and encumbrancers of said property or any part thereof, subsequent
to the date of the furnishing of the first item of material
or the date of the performance of the first labor or the first
use of the rental equipment on said land.
42-141.1 Duties of Court Clerk Transferred
to County Clerk
On the effective date of this act, the records, funds and
powers and duties relating to the filing of mechanics’
and materialmen’s liens in the office of the court clerk
in each county of this state shall be transferred to the office
of the county clerk. The county clerk shall thereafter exercise
all such powers and duties formerly performed by the court
clerk relating to such liens.
42-142 Statement of Lien, Time for
Filing, Mechanics’ Lien Journal
Any person claiming a lien as aforesaid shall file in the
office of the county clerk of the county in which the land
is situated a statement setting forth the amount claimed and
the items thereof as nearly as practicable, the names of the
owner, the contractor, the claimant, and a legal description
of the property subject to the lien, verified by affidavit.
Such statement shall be filed within four (4) months after
the date upon which material or equipment used on said land
was last furnished or labor last performed under contract
as aforesaid; and if the claim be for the planting of any
trees, vines, plants, or hedge, such statement shall be filed
within four (4) months from such planting. Immediately upon
the receipt of such statement the county clerk shall enter
a record of the same against the tract index and in a book
kept for that purpose, to be called the mechanics’ lien
journal, which shall be ruled off into separate columns, with
headings as follows: “When filed”, “Name
of owner”, “Name of claimant”, “Amount
claimed”, “Legal description of property”,
and “Remarks”, and the clerk shall make the proper
entry in each column.
42-142.1
Notice to Owner
No lien arising under the provisions of Sections 141 through
153 of this title which affects property presently occupied
as a dwelling by an owner shall be enforceable unless, prior
to the first performance of labor or the first furnishing
of materials by the lien claimant, the original contractor,
subcontractor, laborer, or materialman shall have provided
to one of the owners a written notice which shall include
substantially the following language:
NOTICE TO OWNER
YOU ARE HEREBY NOTIFIED THAT ANY PERSON PERFORMING LABOR ON
YOUR PROPERTY OR FURNISHING MATERIALS FOR THE CONSTRUCTION,
REPAIR, OR IMPROVEMENT OF YOUR PROPERTY WILL BE ENTITLED TO
A LIEN AGAINST YOUR PROPERTY IF HE IS NOT PAID IN FULL, EVEN
THOUGH YOU MAY HAVE PAID THE FULL CONTRACT PRICE TO YOUR CONTRACTOR.
THIS COULD RESULT IN YOUR PAYING FOR LABOR AND MATERIALS TWICE.
THIS LIEN CAN BE ENFORCED BY THE SALE OF YOUR PROPERTY. TO
AVOID THIS RESULT, YOU MAY DEMAND FROM YOUR CONTRACTOR LIEN
WAIVERS FROM ALL PERSONS PERFORMING LABOR OR FURNISHING MATERIALS
FOR THE WORK ON YOUR PROPERTY. YOU MAY WITHHOLD PAYMENT TO
THE CONTRACTOR IN THE AMOUNT OF ANY UNPAID CLAIMS FOR LABOR
OR MATERIALS. YOU ALSO HAVE THE RIGHT TO DEMAND FROM YOUR
CONTRACTOR A COMPLETE LIST OF ALL LABORERS AND MATERIAL SUPPLIERS
UNDER YOUR CONTRACT, AND THE RIGHT TO DETERMINE FROM THEM
IF THEY HAVE BEEN PAID FOR LABOR PERFORMED AND MATERIALS FURNISHED.
42-142.2
Notice Signed by Owner
In order to be effective, the notice, or a copy thereof, as
set forth in Section 1, must be dated and be signed by one
of the owners. A subcontractor, laborer or materialman furnishing
labor or materials to an original contractor or subcontractor
that has been furnished a copy of the above-described notice
by said original contractor or subcontractor bearing a date
and signature represented by said original contractor or subcontractor
to be that of an owner, shall be permitted to rely on said
representation and liens filed by said subcontractor, laborer
or materialman shall be enforceable notwithstanding any provisions
herein to the contrary.
42-142.3 Original Contractor, Laborer
or Materialman
Any person who performs labor directly for or furnishes material
directly to an owner of property used by the owner or a co-owner
as a dwelling, under circumstances which an owner is liable
directly to a laborer or supplier, shall not be deemed an
original contractor, laborer or materialman for purposes of
Sections 142.1 through 142.5 of this title.
42-142.4
To Falsify Any Statement Regarding Liens a Felony
Any original contractor who falsifies any statement regarding
liens on labor or material to any owner of a dwelling shall
be guilty of a felony.
42-142.5
Satisfaction of Written Notice Requirement
The written notice required in Section 1 of this act shall
be satisfied by furnishing one notice during the course of
construction or during the course of the business transaction
in which the labor or materials are furnished.
42-143
Statement of Lien, Filing, Time Limits, Limitation of Liability
of Owner, Payments to Original Contractor
Any person who shall furnish any such material or lease or
rent equipment used on said land or perform such labor as
a subcontractor, or as an artisan or day laborer in the employ
of the contractor, may obtain a lien upon such land, or improvements,
or both, from the same time, in the same manner, and to the
same extent as the original contractor, for the amount due
him for such material, equipment and labor; and any artisan
or day laborer in the employ of, and any person furnishing
material or equipment used on said land to, such subcontractor
may obtain a lien upon such land, or improvements, or both,
for the same time, in the same manner, and to the same extent
as the subcontractor, for the amount due him for such material,
equipment used on said land and labor, by filing with the
county clerk of the county in which the land is situated,
within ninety (90) days after the date upon which material
or equipment used on said land was last furnished or labor
last performed under such subcontract, a statement, verified
by affidavit, setting forth the amount due from the contractor
to the claimant, and the items thereof, as nearly as practicable,
the name of the owner, the name of the contractor, the name
of the claimant, and a legal description of the property upon
which a lien is claimed. Immediately upon the filing of such
statement the county clerk shall enter a record of the same
against the tract index and in the journal provided for in
the preceding section, and in the manner therein specified.
Provided further, that the owner of any land affected by such
lien shall not thereby become liable to any claimant for any
greater amount than he contracted to pay the original contractor.
The risk of all payments made to the original contractor shall
be upon such owner until the expiration of the ninety (90)
days herein specified, and no owner shall be liable to an
action by such contractor until the expiration of said ninety
(90) days, and such owner may pay such subcontractor the amount
due him from such contractor for such labor, equipment used
on said land and material, and the amount so paid shall be
held and deemed a payment of said amount to the original contractor.
42-143.1
Notice to Lien to be Mailed to Owner by County Clerk
Within one (1) business day after the date of the filing of
the lien statement, provided for in Sections 142 and 143 of
this title, a notice of such lien shall be mailed by certified
mail return receipt requested to the owner of the property
on which the lien attaches. The claimant shall furnish to
the county clerk the last-known mailing address of the person
or persons against whom the claim is made and the owner of
the property. The notice shall be mailed by the county clerk.
The fee for preparing and mailing the notice of mechanics’
and materialmen’s lien and costs for each additional
page or exhibit shall be as provided for in Section 32 of
Title 28 of the Oklahoma Statutes and shall be paid by the
person filing such lien. Said fee shall be deposited into
the County Clerk’s Lien Fee Account, created pursuant
to the provisions of Section 265 of Title 19 of the Oklahoma
Statutes. The notice shall contain the date of filing; the
name and address of the following: The person claiming the
lien; the person against whom the claim is made and the owner
of the property; a legal description of the property; and
the amount claimed. Provided that, if with due diligence the
person against whom the claim is made or the owner of the
property cannot be found, the claimant after filing an affidavit
setting forth such facts may, within sixty (60) days of the
filing of the lien statement, serve a copy of such notice
upon the occupant of the property or the occupant of the improvements,
as the case may be, in a like manner as is provided for service
upon the owner thereof, or, if the same be unoccupied, he
may post such copy in a conspicuous place upon the property
or any improvements thereon.
42-143.2 Notice to Owner of Leased
or Rented Equipment, Time Limits
In order for a person to perfect a lien for leased or rented
equipment under the provisions of this act, the owner of the
leased or rented equipment must have given notice in writing
to the owner of the real property of the fact that the equipment
is in fact leased or rented. Such notice will be delivered
to the owner or the owner’s designated representative
within five (5) days after the leased or rented equipment
is first used on the subject property, and such notice shall
include that a lien may be filed on said property. Such notice
must be given at least sixty (60) days before filing such
lien. A copy of the notice certificate of service must be
filed with the lien and subject to proof as every other element
of the lien.
42-143.3
Leased or Rented Equipment Liens Shall Not Apply to Certain
Property
The provisions of this act as relating to leased or rented
equipment shall not apply to real property qualified for homestead
exemption or real property used for agricultural purposes
or real property used for the production of or growing of
agricultural products.
42-143.4 Equipment Used for Production
of Oil or Gas
The provisions of this act relating to leased or rented equipment
shall not apply to such equipment used for the development
or production of oil or gas, except insofar as is specifically
allowed by Section 144 of Title 42.
42-144 Oil and Gas Liens
Any person, corporation, or copartnership who shall, under
contract, expressed or implied, with the owner of any leasehold
for oil and gas purposes, or the owner of any gas pipeline
or oil pipeline, or with the trustee or agent of such owner,
perform labor or services, including written contracts for
the services of a geologist or petroleum engineer, or furnish
material, machinery, and oil well supplies used in the digging,
drilling, torpedoing, completing, operating, or repairing
of any oil or gas well, or who shall furnish any oil or gas
well supplies, or perform any labor in constructing or putting
together any of the machinery used in drilling, torpedoing,
operating, completing, or repairing of any gas well, or perform
any labor upon any oil well supplies, tools, and other articles
used in digging, drilling, torpedoing, operating, completing,
or repairing any oil or gas well, shall have a lien upon the
whole of such leasehold or oil pipeline, or gas pipeline,
or lease for oil and gas purposes, the buildings and appurtenances,
the proceeds from the sale of oil or gas produced therefrom
inuring to the working interest, exempting, however, any valid,
bona fide reservations of oil or gas payments or overriding
royalty interests executed in good faith and payable out of
such working interest, and upon the material and supplies
so furnished, and upon any oil well supplies, tools, and other
articles used in digging, drilling, torpedoing, operating,
completing, or repairing any oil or gas well, and upon the
oil or gas well for which they were furnished, and upon all
the other oil or gas well fixtures and appliances used in
the operating for oil and gas purposes upon the leasehold
for which said material and supplies were furnished or labor
or services performed. Such lien shall be preferred to all
other liens or encumbrances which may attach to or upon said
leasehold for gas and oil purposes and upon any oil or gas
pipeline, or such oil and gas wells and the material and machinery
so furnished and the leasehold for oil and gas purposes and
the fixtures and appliances thereon subsequent to the commencement
of or the furnishing or putting up of any such machinery or
supplies; and such lien shall follow said property and each
and every part thereof, and be enforceable against the said
property wherever the same may be found; and compliance with
the provisions of this article shall constitute constructive
notice of the lien claimant’s lien to all purchasers
and encumbrancers of said property or any part thereof, subsequent
to the date of the furnishing of the first item of material
or the date of the performance of the first labor or services.
42-144.1
Statement of Lien Claim to Purchaser of Oil or Gas
No lien claimed by virtue of this act, insofar as it may extend
to the proceeds from the sale of oil or gas produced from
such lease, shall be effective against any purchaser of such
oil or gas until a copy of the statement of lien claim required
to be filed by the provisions of this chapter has been delivered
to such purchaser by registered or certified mail.
42-144.2
Payments for Drilling Work and Other Payments Held as Trust
Funds for Payment of Lienable Claims, Misappropriation is
Embezzlement
A. Except as provided by subsection F of this section, the
amount payable under any oil and gas well drilling contract,
reworking contract, operating agreement, or monies payable
as a condition of participation in the drilling of an oil
and gas well under the terms of a pooling order issued by
the Oklahoma Corporation Commission shall, upon receipt by
any oil and gas well operator, contractor or subcontractor,
be held by such operator as trust funds for the payment of
all lienable claims due and owing by such operator, contractor
or subcontractor by reason of such drilling contract, reworking
contract, operating agreement, or force pooling order.
B. The trust funds created under subsection A of this section
shall be applied to the payment of said valid lienable claims
and no portion thereof shall be used for any other purpose
until all lienable claims due and owing or to become due and
owing shall have been paid.
C. Any person willfully and knowingly appropriating such trust
funds to a use not permitted by subsection A of this section,
upon conviction, shall be guilty of embezzlement.
D. If the party receiving any money under subsection A of
this section shall be a corporation, such corporation and
its managing officers shall be liable for the proper application
of such trust funds and subject to punishment under subsection
C of this section.
E. The existence of such trust funds shall not prohibit the
filing or enforcement of any labor, mechanic or materialmen’s
lien against the affected real property by any lien claimant,
nor shall the filing of such a lien release the holder of
such funds from the obligations created under this section.
F. The provisions of this section shall not be applicable
or affect payments owed to royalty owners by the operator
of an oil or gas well and shall not affect or alter the terms
or provisions of Section 87.1 of Title 52 of the Oklahoma
Statutes.
42-145
Liens Upon Oil and Gas Leaseholds
Any person, copartnership or corporation who shall furnish
such machinery or supplies to a subcontractor under a contractor,
or any person who shall perform such labor under a subcontract
with a contractor, or who, as an artisan or day laborer in
the employ of such contractor, shall perform any such labor,
may obtain a lien upon said leasehold for oil and gas purposes
or any gas pipeline or any oil pipeline from the same tank
and in the same manner and to the same extent as the original
contractor for the amount due him for such labor, as provided
in the preceding section.
42-146 Enforcement of Liens, Filing
Notice of Lien, Time Limits, Extent of Liens
The liens created by Sections 144 and 145 of this title shall
be enforced pursuant to the provisions of Sections 171 through
178 of this title. Notice of the lien shall be given and the
materialman’s statement or the lien of any laborer shall
be filed, in the same manner as is provided for in Sections
141 through 143.4 of this title, except that the statement
required to be filed in the office of the county clerk pursuant
to Section 143 of this title as to liens created pursuant
to Sections 144 and 145 of this title shall be filed within
one hundred eighty (180) days after the date upon which material,
machinery or supplies were last furnished or labor or services
last performed under the relevant contract or subcontract,
whichever the case may be. A lien created pursuant to Sections
144 and 145 of this title shall affect only the oil and gas
leasehold estate and shall not constitute a lien against or
otherwise affect any other interest in the real property involved,
except if the owner of an oil, gas or other mineral interest
therein shall also own a working interest in a well located
thereon, such lien shall attach to said working interest.
42-147.1 Release of Lien, Deposit of
Money, Release Bond, Notices, Objections to Bond, Parties
Any property owner or other interested party, including but
not limited to mortgagees, contractors, subcontractors and
others against whom a lien claim is filed under the provisions
of the law relating to mechanics’ and materialmen’s
liens, may at any time discharge the lien by depositing with
the county clerk in whose office the lien claim has been filed
either: An amount of money equal to one hundred twenty-five
percent (125%) of the lien claim amount; or a corporate surety
bond with a penal amount equal to one hundred twenty-five
percent (125%) of the lien claim amount. Within three (3)
business days after the deposit of money or bond is made,
the county clerk shall serve upon the lien claimant, at the
address shown on the lien claim, written notice setting forth:
The number of the lien claim; the name of the lien claimant;
the name of the property owner; the name of the alleged debtor,
if someone other than the property owner; the property description
shown on the lien claim; and the amount of cash deposited
or, if a bond is filed, the names of the principal and surety
and the bond penalty. The party seeking to discharge the lien
shall prepare and deliver the notice to the county clerk and
pay a fee of Five Dollars ($5.00) to cover the cost of filing
and mailing. An abbreviated notice may be used if the same
refers to and encloses a copy of the lien claim and either
a copy of the cash receipt issued by the county clerk or a
copy of the bond with the clerk’s filing stamp thereon.
The notice shall be mailed by registered or certified mail
at the option of the county clerk.
If cash is deposited, the county clerk shall immediately show
the lien released of record. If a bond is deposited, the lien
claimant shall have ten (10) days after the notice is mailed
within which to file a written objection with the county clerk.
If a written objection is not timely filed the county clerk
shall immediately show the lien released of record. If an
objection is timely made, the county clerk shall set a hearing
within ten (10) days thereafter and notify by ordinary mail
both the lien claimant and the party making the deposit of
the date and time thereof. The only grounds for objection
shall be that: The surety is not authorized to transact business
in this state; the bond is not properly signed; the penal
amount is less than one hundred twenty-five percent (125%)
of the claim; the power of attorney of the surety’s
attorney-in-fact does not authorize the execution; there is
no power of attorney attached if the bond is executed by anyone
other than the surety’s president and attested by its
secretary; or a cease and desist order has been issued against
the surety either by the Insurance Commissioner or a court
of competent jurisdiction. Within two (2) business days following
the hearing the county clerk shall either sustain or overrule
the objections and notify the parties of his ruling by ordinary
mail. If the objections are sustained, the ruling of the county
clerk shall be conclusive for lien release purposes unless
appealed within ten (10) days to the district court. If the
objections are overruled, the county clerk shall immediately
show the lien released of record.
The bond shall: Name the lien claimant as obligee and the
party seeking the release as principal; be executed by both
the principal and the surety; have a proper power of attorney
attached if executed by an attorney-in-fact; be executed by
a corporate surety authorized to transact business in this
state; and be conditioned that the principal and surety will
pay the full amount of the claim as established in any appropriate
court proceeding, plus any court costs and attorney’s
fees awarded the lien claimant, but in no event shall the
liability of the principal or surety under the bond exceed
the bond penalty. The preceding clause shall not limit the
common law liability of the party who created the indebtedness
upon which the lien claim is based. The conditions of any
bond filed pursuant to this section shall be deemed to comply
with the requirements hereof, regardless of the language or
limitations set forth therein, if both the principal and surety
intend that the bond be filed to secure a lien release under
this section.
The cash deposit or bond, as the case may be, shall stand
in lieu of the released lien, and the lien claimant must proceed
against the substituted security in the same time and manner
as is required for foreclosure of a lien claim. The cash deposit
or bond shall stand liable for such principal, interest, court
costs and attorney’s fees to the extent they could be
awarded in a lien foreclosure proceeding.
The only proper parties to an action against the substituted
security are: The party making the cash deposit; the bond
principal and surety; the party primarily liable for the indebtedness
giving rise to the lien claim; and anyone else who may be
liable to the lien claimant for the same indebtedness. The
party making the cash deposit and the bond principal and surety
are necessary parties to an action against the substituted
security, and by making a deposit or filing a bond the parties
subject themselves to personal jurisdiction in the court where
the action is properly filed and may be served with process
as in other cases.
If the lien claimant fails to timely file a foreclosure action,
upon application of the party making the deposit or filing
the bond and the payment of a fee of Ten Dollars ($10.00),
the county clerk shall return the cash to the party making
the deposit or appropriately note on the bond that the same
has been released. The clerk shall not incur liability to
any lien claimant for an inadvertent release of cash or bond.
Nothing contained in this section shall preclude the lien
claimant and other interested parties from entering into agreements
for the substitution of a different form of security in lieu
of the lien claim.
The county clerk shall invest the deposited cash in the manner
provided for county treasurers in Section 348.1 of Title 62
of the Oklahoma Statutes. Any interest earned thereon shall
become a part of the deposit and be either returned to the
party making the deposit, if no action is filed, or paid in
accordance with any final judgment rendered by the court in
the action against the substituted security. If a district
court judgment adverse to the depositing party is entered,
in setting the amount of supersedeas bond the court shall
take into consideration the existing cash deposit or bond.
42-148 Coal Miners’ Liens
All miners and other employees engaged in the work of developing
and opening up coal mines, sinking of shafts, or construction
of slopes or drifts, the driving of entries, mining in coal,
and every mechanic, builder, artisan, workman, laborer or
other person who performs any work or labor in and about such
mines, shall have as security for such work and labor performed,
a lien therefore upon the buildings, machinery, equipment,
inside or outside, income, franchises, leases or subleases
and all other appurtenances and all property of the person,
owner, agent, firm or corporation owning, constructing or
operating such mine or mines, and all property in their possession
or under their control, or permitted by the owner to be used
in the construction or operation thereof, superior or paramount,
whether prior in time or not, to that of all persons interested
in such mines as managers, lessees, sublessees, operators,
mortgagees, trustees and beneficiaries under trust, or owners.
42-149
Foreclosure Suit, Limitations
The lien provided for in the preceding section shall not be
effective unless suit shall be brought within one (1) year
after it accrued.
42-150 Statement of Lien, Time Limits
Any person claiming a lien as aforesaid shall file in the
office of the county clerk of the county in which the land
or property is situated, a statement setting forth the amount
claimed and the items thereof, as nearly as practicable, the
names of the managers, lessees, sublessees, operators, mortgagees,
trustees and beneficiaries under trusts, or owners, the contractor,
the claimant and the legal description of the property, subject
to such lien and verified by affidavit. Such statement shall
be filed within forty-five (45) days after the date upon which
such labor was last performed. Upon receipt of such lien statement,
the clerk shall enter same against the tract index and in
a record kept for that purpose, to be called the mechanics’
lien journal. Except as provided herein, the provisions of
Sections 92 through 96 and 141 through 147 of this title shall
apply with reference to the liens herein created.
42-151 Lightning Rods
The erecting and constructing of a lightning rod or rods on
any buildings shall not be considered such an improvement
fixture or attachment, as to come under the provisions of
this chapter.
42-152 Amounts Paid Under Building
Contracts are Trust Funds, Construction Loan Funds are Trust
Funds, Real Estate Sales Funds are Trust Funds
(1) The amount payable under any building or remodeling contract
shall, upon receipt by any contractor or subcontractor, be
held as trust funds for the payment of all lienable claims
due and owing or to become due and owing by such contractors
or subcontractors by reason of such building or remodeling
contract.
(2) The monies received under any mortgage given for the purpose
of construction or remodeling any structure shall upon receipt
by the mortgagor be held as trust funds for the payment of
all valid lienable claims due and owing or to become due and
owing by such mortgagor by reason of such building or remodeling
contract.
(3) The amount received by any vendor of real property under
a warranty deed shall, upon receipt by the vendor, be held
as trust funds for the payment of all valid lienable claims
due and owing or to become due and owing by such vendor or
his predecessors in title by reason of any improvements made
upon such property within four (4) months prior to the delivery
of said deed.
42-153
Payment of Trust Funds for Valid Lienable Claims, Embezzlement
(1) The trust funds created under Section 152 of this title
shall be applied to the payment of said valid lienable claims
and no portion thereof shall be used for any other purpose
until all lienable claims due and owing or to become due and
owing shall have been paid.
(2) Any person willfully and knowingly appropriating such
trust funds to a use not permitted by subsection (1) of this
section, upon conviction, shall be guilty of embezzlement
and shall be punished by imprisonment in the State Penitentiary
for a period not to exceed five (5) years or by a fine not
to exceed Ten Thousand Dollars ($10,000.00), or by both such
imprisonment and fine.
(3) If the party receiving any money under Section 152 of
this title shall be a corporation, such corporation and its
managing officers shall be liable for the proper application
of such trust funds and subject to punishment under subsection
(2) of this section.
(4) The existence of such trust funds shall not prohibit the
filing or enforcement of a labor, mechanic or materialmen’s
lien against the affected real property by any lien claimant,
nor shall the filing of such a lien release the holder of
such funds from the obligations created under this section
or Section 152 of this title.
42-154 Execution of Lien Statements and Releases
Any lien statement authorized by the provisions of Sections
141 through 164 of Title 42 of the Oklahoma Statutes when
executed on behalf of a corporation may be signed and verified
by any officer or agent of said corporation without the necessity
of attestation, seal, or acknowledgment and any release of
such lien when executed on behalf of a corporation may be
signed by any officer or agent of such corporation without
the necessity of attestation, seal, or acknowledgment. With
respect to the execution and release of lien statements in
accordance with this section the provisions of Sections 15,
93, 94 and 95 of Title 16 of the Oklahoma Statutes shall not
apply.
42-161 Railroad Liens
Every mechanic, builder, artisan, workman, laborer, or other
person, who shall do or perform any work or labor upon, or
furnish any materials, machinery, fixtures or other thing
towards the equipment, or to facilitate the operation of any
railroad, shall have a lien therefore upon the roadbed, buildings,
equipments, income, franchises, and all other appurtenances
of said railroad, superior and paramount, whether prior in
time or not, to that of all persons interested in said railroad
as managers, lessees, mortgagees, trustees beneficiaries under
trusts or owners.
42-162 Foreclosure Suit
The lien mentioned in the preceding section shall not be effectual
unless suit shall be brought upon the claim within one (1)
year after it accrued.
42-163
Judgment on Lien
The said lien shall be mentioned in the judgment rendered
for the claimant in an ordinary suit for the claim, and may
be enforced by ordinary levy and sale under final or other
process at law or equity.
42-164 10-Day Notice Requirement
A notice of ten (10) days shall be given to the railroad of
the existence of a claim or the intended lien which is contemplated
under this article.
42-171
Lien Claims and Actions are Assignable
All claims for liens and rights of action to recover therefore
hereunder shall be assignable so as to vest in the assignee
all rights and remedies herein given, subject to all defenses
thereto that might be made if such assignment had not been
made. Where a statement has been filed and recorded as provided
in Section 142 of this title, such assignment may be made
by an entry, on the same page of the mechanics’ lien
journal containing the record of the lien, signed by the claimant
or his lawful representative, and attested by the county clerk;
or such assignment may be made by a separate instrument in
writing.
42-172 Enforcement Action, Limitations
and Practice
Any lien provided for by this chapter may be enforced by civil
action in the district court of the county in which the land
is situated, and such action shall be brought within one (1)
year from the time of the filing of said lien with the county
clerk. The practice, pleading and proceedings in such action
shall conform to the rules prescribed by the code of civil
procedure as far as the same may be applicable; and in case
of action brought, any lien statement may be amended by leave
of court in furtherance of justice as pleadings may be in
any matter, except as to the amount claimed.
42-173
Parties to Action, Original Contractor Shall Defend Action,
Costs
In such actions all persons whose liens are filed as herein
provided shall be made parties, and issues shall be made and
trials had as in other cases. Where such action is brought
by a subcontractor, or other person not the original contractor,
such original contractor shall be made a party defendant,
and shall at his own expense defend against the claim of every
subcontractor, or other person claiming a lien under this
chapter, and if he fails to make such defense the owner may
make the same at the expense of such contractor; and until
all such claims, costs and expenses are finally adjudicated,
and defeated or satisfied, the owner shall be entitled to
retain from the contractor the amount thereof, and such costs
and expenses as he may be required to pay: Provided, that
if the sheriff of the county in which such action is pending
shall make return that he is unable to find such original
contractor, the court may proceed to adjudicate the liens
upon the land and render judgment to enforce the same with
costs.
42-174
Consolidation of Actions
If several actions brought to enforce the liens herein provided
for are pending at the time, the court may order them to be
consolidated; and in any action brought to enforce a lien,
if the building or other improvement is still in course of
construction, the court, on application of any party engaged
in furnishing labor or materials for such building or improvement,
may stay the trial thereof for a reasonable time to permit
the filing of a lien statement by such party as herein provided.
42-175
Judgment of Sale
In all cases where judgment may be rendered in favor of any
person or persons to enforce a lien under the provisions of
this chapter, the real estate or other property shall be ordered
to be sold as in other cases of sales of real estate, such
sales to be without prejudice to the rights of any prior encumbrancer,
owner or other person not a party to the action.
42-176 Attorneys Fees
In an action brought to enforce any lien the party for whom
judgment is rendered shall be entitled to recover a reasonable
attorney’s fee, to be fixed by the court, which shall
be taxed as costs in the action.
42-177 Petition to Remove Lien, Lien
is Cancelled if No Action to Foreclose in One Year, Affidavit
that Lien is Cancelled
If any lien shall be filed under the provisions of this chapter,
and no action to foreclose such lien shall have been commenced,
the owner of the land may file his petition in the district
court of the county in which said land is situated, making
said lien claimants defendants therein, and praying for an
adjudication of said lien so claimed, and if such lien claimant
shall fail to establish his lien, the court may tax against
said claimant the whole, or such portion of the costs of such
action as may be just. Provided, that if no action to foreclose
or adjudicate any lien filed under the provisions of this
chapter shall be instituted within one (1) year from the filing
of said lien, the lien is canceled by limitation of law. If
a lien is canceled by limitation of law, the owner of the
land may file an affidavit attesting to the cancellation with
the county clerk of the county in which the land is located.
Upon receipt of the affidavit, the county clerk shall attach
the affidavit to the original lien document in the lien docket
file and enter a notation of the filing in the mechanics’
lien journal. The affidavit shall be on a form prescribed
by the Office of the Administrative Director of the Courts.
42-178
Pro Rata Payment
If
the proceeds of the sale be insufficient to pay all the claimants,
then the court shall order them to be paid in proportion to
the amount due each.
42-180
Rental Lien on Manufactured Home, Storage Charges, Priorities,
Notice
A.
The owner of real property upon which a manufactured home
is located shall have a possessory lien to secure accrued
storage or rental charges pursuant to a contract with the
owner of the real property and the consumer.
B.
Except as provided in this section, any lien or charge against
a manufactured home for accrued storage or rental charges
on the manufactured home upon the real property on which the
manufactured home is or has been located is subordinate to
the rights of a creditor with a perfected security interest
or lien which is recorded on the document of title issued
on the manufactured home.
C.
The maximum storage charge which is not subordinated, and
which is secured by the possessory lien, is a daily rate equal
to one-thirtieth (1/30) of the amount of the monthly payment
last paid by the consumer, or if no payment has been made,
the payment required pursuant to contract between the owner
of the real property and the consumer, beginning on the date
determined by this subsection, not to exceed thirty (30) days.
D.
That portion of the possessory lien of the owner of the real
property occurring after notice under this section shall have
priority over a creditor with a perfected security interest
ten (10) days from and after the date the owner of the real
property or his agent shall have given the secured creditor
notice that the manufactured home is abandoned or voluntarily
surrendered by the consumer.
E.
For the purposes of this section, a consumer abandons or voluntarily
surrenders a manufactured home by:
1.
The owner of the real property discovering or being notified
of the intention to abandon or surrender; or
2.
Failure to pay storage or rental charges when due.
F.
Notice required by this section shall be mailed by certified
mail, return receipt requested to the secured creditor of
record on the document of title and to the mailing address
listed therein. Notice by mail shall be effective on the date
mailed.
G.
Unless the owner of the real property has a possessory lien
which has priority pursuant to this section, it shall be unlawful
for the owner of the real property to refuse to allow the
creditor to repossess and move the manufactured home. In the
event that the owner of the real property refuses to allow
the creditor to repossess and move the home, then the owner
of the real property shall be liable to the creditor for each
day that the owner of the real property unlawfully maintains
possession of the home, at a daily rate equal to one-thirtieth
(1/30) of the monthly payment last paid by the consumer, or
if no payment has been made, the payment required pursuant
to the contract between the secured creditor and the consumer.
The prevailing party shall be entitled to reasonable attorneys
fees and costs.
H.
The owner of the real property, pursuant to a possessory lien
which has priority pursuant to this section, is entitled to
recover the storage charges as set forth in this section.
If the owner of the real property is required to retain legal
counsel to recover the amounts subject to the possessory lien,
such owner is entitled to recover reasonable attorneys fees
and court costs incurred.
I.
Upon receipt of notice of bankruptcy, the secured creditor
shall, within five (5) days after receipt thereof, notify
the owner of the real estate by certified mail, return receipt
requested, of said bankruptcy. Failure of the secured creditor
to notify said owner of the real estate will cause said creditor
to be held liable for any storage charges not paid by the
trustee in bankruptcy. |