{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-1-9-615","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-1-9-615","heading":"Application of proceeds of disposition; liability for","body":"deficiency and right to surplus.\n\nAPPLICATION OF PROCEEDS OF DISPOSITION;\n\nLIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS\n\n(a) A secured party shall apply or pay over for application the\n\ncash proceeds of disposition pursuant to Section 1-9-610 of this\n\ntitle in the following order to:\n\n(1) the reasonable expenses of retaking, holding, preparing for\n\ndisposition, processing, and disposing, and, to the extent provided\n\nfor by agreement and not prohibited by law, reasonable attorney fees\n\nand legal expenses incurred by the secured party;\n\n(2) the satisfaction of obligations secured by the security\n\ninterest or agricultural lien under which the disposition is made;\n\n(3) the satisfaction of obligations secured by any subordinate\n\nsecurity interest in or other subordinate lien on the collateral if:\n\n(A) the secured party receives from the holder of the\n\nsubordinate security interest or other lien a signed\n\ndemand for proceeds before distribution of the\n\nproceeds is completed; and\n\n(B) in a case in which a consignor has an interest in the\n\ncollateral, the subordinate security interest or other\n\nlien is senior to the interest of the consignor; and\n\n(4) a secured party that is a consignor of the collateral if\n\nthe secured party receives from the consignor a signed demand for\n\nproceeds before distribution of the proceeds is completed.\n\n(b) If requested by a secured party, a holder of a subordinate\n\nsecurity interest or other lien shall furnish reasonable proof of\n\nthe interest or lien within a reasonable time. Unless the holder\n\ndoes so, the secured party need not comply with the holder's demand\n\nunder paragraph (3) of subsection (a) of this section.\n\n(c) A secured party need not apply or pay over for application\n\nnoncash proceeds of disposition pursuant to Section 1-9-610 of this\n\ntitle unless the failure to do so would be commercially\n\nunreasonable. A secured party that applies or pays over for\n\napplication noncash proceeds shall do so in a commercially\n\nreasonable manner.\n\n(d) If the security interest under which a disposition is made\n\nsecures payment or performance of an obligation, after making the\n\npayments and applications required by subsection (a) of this section\n\nand permitted by subsection (c) of this section:\n\n(1) unless paragraph (4) of subsection (a) of this section\n\nrequires the secured party to apply or pay over cash proceeds to a\n\nconsignor, the secured party shall account to and pay a debtor for\n\nany surplus; and\n\n(2) the obligor is liable for any deficiency.\n\n(e) If the underlying transaction is a sale of accounts,\n\ntangible chattel paper, payment intangibles, or promissory notes:\n\n(1) the debtor is not entitled to any surplus; and\n\n(2) the obligor is not liable for any deficiency.\n\n(f) The surplus or deficiency following a disposition is\n\ncalculated based on the amount of proceeds that would have been\n\nrealized in a disposition complying with this part to a transferee\n\nother than the secured party, a person related to the secured party,\n\nor a secondary obligor if:\n\n(1) the transferee in the disposition is the secured party, a\n\nperson related to the secured party, or a secondary obligor; and\n\n(2) the amount of proceeds of the disposition is significantly\n\nbelow the range of proceeds that a complying disposition to a person\n\nother than the secured party, a person related to the secured party,\n\nor a secondary obligor would have brought.\na secondary obligor if:\n\n(1) the transferee in the disposition is the secured party, a\n\nperson related to the secured party, or a secondary obligor; and\n\n(2) the amount of proceeds of the disposition is significantly\n\nbelow the range of proceeds that a complying disposition to a person\n\nother than the secured party, a person related to the secured party,\n\nor a secondary obligor would have brought.\n\n(g) A secured party that receives cash proceeds of a\n\ndisposition in good faith and without knowledge that the receipt\n\nviolates the rights of the holder of a security interest or other\n\nlien that is not subordinate to the security interest or\n\nagricultural lien under which the disposition is made:\n\n(1) takes the cash proceeds free of the security interest or\n\nother lien;\n\n(2) is not obligated to apply the proceeds of the disposition\n\nto the satisfaction of obligations secured by the security interest\n\nor other lien; and\n\n(3) is not obligated to account to or pay the holder of the\n\nsecurity interest or other lien for any surplus.","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":"a1eeee90fca4cc05fe72ee446da6f5c9fc56f88b2044138c26f4aee47618c300","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-1-9-614","next":"us-ok/okla.-stat.-tit.-12a-12a-1-9-616"},"notice":"GroundRules: Original legal text. Not legal advice."}