{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-1-9-408","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-1-9-408","heading":"Restrictions on assignment of promissory notes,","body":"health-care-insurance receivables, and certain general intangibles\n\nineffective.\n\nRESTRICTIONS ON ASSIGNMENT OF PROMISSORY\n\nNOTES, HEALTH-CARE-INSURANCE RECEIVABLES, AND\n\nCERTAIN GENERAL INTANGIBLES INEFFECTIVE\n\n(a) Except as otherwise provided in subsections (b) and (f) of\n\nthis section, a term in a promissory note or in an agreement between\n\nan account debtor and a debtor which relates to a health-care-\n\ninsurance receivable or a general intangible, including a contract,\n\npermit, license, or franchise, and which term prohibits, restricts,\n\nor requires the consent of the person obligated on the promissory\n\nnote or the account debtor to, the assignment or transfer of, or\n\ncreation, attachment, or perfection of a security interest in, the\n\npromissory note, health-care-insurance receivable, or general\n\nintangible, is ineffective to the extent that the term:\n\n(1) would impair the creation, attachment, or perfection of a\n\nsecurity interest; or\n\n(2) provides that the assignment or transfer or the creation,\n\nattachment, or perfection of the security interest may give rise to\n\na default, breach, right of recoupment, claim, defense, termination,\n\nright of termination, or remedy under the promissory note, health-\n\ncare-insurance receivable, or general intangible.\n\n(b) Subsection (a) of this section applies to a security\n\ninterest in a payment intangible or promissory note only if the\n\nsecurity interest arises out of a sale of the payment intangible or\n\npromissory note, other than a sale pursuant to a disposition under\n\nSection 1-9-610 of this title or an acceptance of collateral under\n\nSection 1-9-620 of this title.\n\n(c) Except as otherwise provided in subsection (f) of this\n\nsection, a rule of law, statute, or regulation, that prohibits,\n\nrestricts, or requires the consent of a government, governmental\n\nbody or official, person obligated on a promissory note, or account\n\ndebtor to the assignment or transfer of, or creation of a security\n\ninterest in, a promissory note, health-care-insurance receivable, or\n\ngeneral intangible, including a contract, permit, license, or\n\nfranchise between an account debtor and a debtor, is ineffective to\n\nthe extent that the rule of law, statute, or regulation:\n\n(1) would impair the creation, attachment, or perfection of a\n\nsecurity interest; or\n\n(2) provides that the assignment or transfer or the creation,\n\nattachment, or perfection of the security interest may give rise to\n\na default, breach, right of recoupment, claim, defense, termination,\n\nright of termination, or remedy under the promissory note, health-\n\ncare-insurance receivable, or general intangible.\n\n(d) To the extent that a term in a promissory note or in an\n\nagreement between an account debtor and a debtor which relates to a\n\nhealth-care-insurance receivable or general intangible or a rule of\n\nlaw, statute, or regulation described in subsection (c) of this\n\nsection would be effective under law other than this article but is\n\nineffective under subsection (a) or (c) of this section, the\n\ncreation, attachment, or perfection of a security interest in the\n\npromissory note, health-care-insurance receivable, or general\n\nintangible:\n\n(1) is not enforceable against the person obligated on the\n\npromissory note or the account debtor;\n\n(2) does not impose a duty or obligation on the person\n\nobligated on the promissory note or the account debtor;\n\n(3) does not require the person obligated on the promissory\n\nnote or the account debtor to recognize the security interest, pay\n\nor render performance to the secured party, or accept payment or\n\nperformance from the secured party;\nbligated on the\n\npromissory note or the account debtor;\n\n(2) does not impose a duty or obligation on the person\n\nobligated on the promissory note or the account debtor;\n\n(3) does not require the person obligated on the promissory\n\nnote or the account debtor to recognize the security interest, pay\n\nor render performance to the secured party, or accept payment or\n\nperformance from the secured party;\n\n(4) does not entitle the secured party to use or assign the\n\ndebtor's rights under the promissory note, health-care-insurance\n\nreceivable, or general intangible, including any related information\n\nor materials furnished to the debtor in the transaction giving rise\n\nto the promissory note, health-care-insurance receivable, or general\n\nintangible;\n\n(5) does not entitle the secured party to use, assign, possess,\n\nor have access to any trade secrets or confidential information of\n\nthe person obligated on the promissory note or the account debtor;\n\nand\n\n(6) does not entitle the secured party to enforce the security\n\ninterest in the promissory note, health-care-insurance receivable,\n\nor general intangible.\n\n(e) Subsections (a) and (c) of this section do not apply to the\n\nassignment or transfer of or creation of a security interest in:\n\n(1) a claim or right to receive compensation for injuries or\n\nsickness as described in 26 U.S.C., Section 104(a)(1) or (2), as\n\namended from time to time;\n\n(2) a claim or right to receive benefits under a special needs\n\ntrust as described in 42 U.S.C., Section 1396p(d)(4), as amended\n\nfrom time to time; or\n\n(3) a structured settlement payment right as defined in\n\nparagraph 16 of Section 3239 of Title 12 of the Oklahoma Statutes to\n\nthe extent of any conflict between the Uniform Commercial Code and\n\nthe Structured Settlement Protection Act of 2001.\n\n(f) This section does not apply to a security interest in an\n\nownership interest in a general partnership, limited partnership, or\n\nlimited liability company.\n\n(g) As used in this section, \"promissory note\" includes a\n\nnegotiable instrument that evidences chattel paper.","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":"0fcdf93c80c20c303bd8289919fa846b4a095f1f3b543d52c808e37ed83b26ca","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-1-9-407","next":"us-ok/okla.-stat.-tit.-12a-12a-1-9-409"},"notice":"GroundRules: Original legal text. Not legal advice."}