Okla. Stat. tit. 12A, § 12A-1-9-103: Purchase-money security interest; application of

payments; burden of establishing.

PURCHASE-MONEY SECURITY INTEREST; APPLICATION OF PAYMENTS;

BURDEN OF ESTABLISHING

(a) In this section:

(1) “purchase-money collateral” means goods or software that

secures a purchase-money obligation incurred with respect to that

collateral; and

(2) “purchase-money obligation” means an obligation of an

obligor incurred as all or part of the price of the collateral or

for value given to enable the debtor to acquire rights in or the use

of the collateral if the value is in fact so used.

(b) A security interest in goods is a purchase-money security

interest:

(1) to the extent that the goods are purchase-money collateral

with respect to that security interest;

(2) if the security interest is in inventory that is or was

purchase-money collateral, to the extent that the security interest

secures a purchase-money obligation incurred with respect to other

inventory in which the secured party holds or held a purchase-money

security interest; and

(3) to the extent that the security interest secures a

purchase-money obligation incurred with respect to software in which

the secured party holds or held a purchase-money security interest.

(c) A security interest in software is a purchase-money

security interest to the extent that the security interest also

secures a purchase-money obligation incurred with respect to goods

in which the secured party holds or held a purchase-money security

interest if:

(1) the debtor acquired its interest in the software in an

integrated transaction in which it acquired an interest in the

goods; and

(2) the debtor acquired its interest in the software for the

principal purpose of using the software in the goods.

(d) The security interest of a consignor in goods that are the

subject of a consignment is a purchase-money security interest in

inventory.

(e) In a transaction other than a consumer-goods transaction,

if the extent to which a security interest is a purchase-money

security interest depends on the application of a payment to a

particular obligation, the payment must be applied:

(1) in accordance with any reasonable method of application to

which the parties agree;

(2) in the absence of the parties’ agreement to a reasonable

method, in accordance with any intention of the obligor manifested

at or before the time of payment; or

(3) in the absence of an agreement to a reasonable method and a

timely manifestation of the obligor’s intention, in the following

order:

(A) to obligations that are not secured; and

(B) if more than one obligation is secured, to obligations

secured by purchase-money security interests in the

order in which those obligations were incurred.

(f) In a transaction other than a consumer-goods transaction, a

purchase-money security interest does not lose its status as such,

even if:

(1) the purchase-money collateral also secures an obligation

that is not a purchase-money obligation;

(2) collateral that is not purchase-money collateral also

secures the purchase-money obligation; or

(3) the purchase-money obligation has been renewed, refinanced,

consolidated, or restructured.

(g) In a transaction other than a consumer-goods transaction, a

secured party claiming a purchase-money security interest has the

burden of establishing the extent to which the security interest is

a purchase-money security interest.

(h) The limitation of the rules in subsections (e), (f), and

(g) of this section to transactions other than consumer-goods

transactions is intended to leave to the court the determination of

the proper rules in consumer-goods transactions. The court may not

infer from that limitation the nature of the proper rule in

consumer-goods transactions and may continue to apply established

approaches.