{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-1-9-207","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-1-9-207","heading":"Rights and duties of secured party having possession","body":"or control of collateral.\n\nRIGHTS AND DUTIES OF SECURED PARTY\n\nHAVING POSSESSION OR CONTROL OF COLLATERAL\n\n(a) Except as otherwise provided in subsection (d) of this\n\nsection, a secured party shall use reasonable care in the custody\n\nand preservation of collateral in the secured party's possession.\n\nIn the case of chattel paper or an instrument, reasonable care\n\nincludes taking necessary steps to preserve rights against prior\n\nparties unless otherwise agreed.\n\n(b) Except as otherwise provided in subsection (d) of this\n\nsection, if a secured party has possession of collateral:\n\n(1) reasonable expenses, including the cost of insurance and\n\npayment of taxes or other charges, incurred in the custody,\n\npreservation, use, or operation of the collateral are chargeable to\n\nthe debtor and are secured by the collateral;\n\n(2) the risk of accidental loss or damage is on the debtor to\n\nthe extent of a deficiency in any effective insurance coverage;\n\n(3) the secured party shall keep the collateral identifiable,\n\nbut fungible collateral may be commingled; and\n\n(4) the secured party may use or operate the collateral:\n\n(A) for the purpose of preserving the collateral or its\n\nvalue;\n\n(B) as permitted by an order of a court having competent\n\njurisdiction; or\n\n(C) except in the case of consumer goods, in the manner\n\nand to the extent agreed by the debtor.\n\n(c) Except as otherwise provided in subsection (d) of this\n\nsection, a secured party having possession of collateral or control\n\nof collateral under Section 7-106, 1-9-104, 1-9-105, 1-9-106, 1-9-\n\n107, or 1-9-107A of this title:\n\n(1) may hold as additional security any proceeds, except money\n\nor funds, received from the collateral;\n\n(2) shall apply money or funds received from the collateral to\n\nreduce the secured obligation, unless remitted to the debtor; and\n\n(3) may create a security interest in the collateral.\n\n(d) If the secured party is a buyer of accounts, chattel paper,\n\npayment intangibles, or promissory notes or a consignor:\n\n(1) subsection (a) of this section does not apply unless the\n\nsecured party is entitled under an agreement:\n\n(A) to charge back uncollected collateral; or\n\n(B) otherwise to full or limited recourse against the\n\ndebtor or a secondary obligor based on the nonpayment\n\nor other default of an account debtor or other obligor\n\non the collateral; and\n\n(2) subsections (b) and (c) of this section do not apply.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"6a32235e778296c875cf053f181f0b962798a7960bfba5ac6bca548b6fee1462","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-1-9-206","next":"us-ok/okla.-stat.-tit.-12a-12a-1-9-208"},"notice":"GroundRules: Original legal text. Not legal advice."}