{"data":{"id":"us-ok/okla.-stat.-tit.-42-42-147.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 42, § 42-147.1","heading":"Discharge of lien","body":"\n\nAny property owner or other interested party, including but not\n\nlimited to mortgagees, contractors, subcontractors and others\n\nagainst whom a lien claim is filed under the provisions of the law\n\nrelating to mechanics' and materialmen's liens, may at any time\n\ndischarge the lien by depositing with the county clerk in whose\n\noffice the lien claim has been filed either: An amount of money\n\nequal to one hundred twenty-five percent (125%) of the lien claim\n\namount; or a corporate surety bond with a penal amount equal to one\n\nhundred twenty-five percent (125%) of the lien claim amount. Within\n\nthree (3) business days after the deposit of money or bond is made,\n\nthe county clerk shall serve upon the lien claimant, at the address\n\nshown on the lien claim, written notice setting forth: The number\n\nof the lien claim; the name of the lien claimant; the name of the\n\nproperty owner; the name of the alleged debtor, if someone other\n\nthan the property owner; the property description shown on the lien\n\nclaim; and the amount of cash deposited or, if a bond is filed, the\n\nnames of the principal and surety and the bond penalty. The party\n\nseeking to discharge the lien shall prepare and deliver the notice\n\nto the county clerk and pay a fee in accordance with Section 32 of\n\nTitle 28 of the Oklahoma Statutes. An abbreviated notice may be\n\nused if the same refers to and encloses a copy of the lien claim and\n\neither a copy of the cash receipt issued by the county clerk or a\n\ncopy of the bond with the clerk's filing stamp thereon. The notice\n\nshall be mailed by registered or certified mail at the option of the\n\ncounty clerk.\n\nIf cash is deposited, the county clerk shall immediately show\n\nthe lien released of record. If a bond is deposited, the lien\n\nclaimant shall have ten (10) days after the notice is mailed within\n\nwhich to file a written objection with the county clerk. If a\n\nwritten objection is not timely filed the county clerk shall\n\nimmediately show the lien released of record. If an objection is\n\ntimely made, the county clerk shall set a hearing within ten (10)\n\ndays thereafter and notify by ordinary mail both the lien claimant\n\nand the party making the deposit of the date and time thereof. The\n\nonly grounds for objection shall be that: The surety is not\n\nauthorized to transact business in this state; the bond is not\n\nproperly signed; the penal amount is less than one hundred twenty-\n\nfive percent (125%) of the claim; the power of attorney of the\n\nsurety's attorney-in-fact does not authorize the execution; there is\n\nno power of attorney attached if the bond is executed by anyone\n\nother than the surety's president and attested by its secretary; or\n\na cease and desist order has been issued against the surety either\n\nby the Insurance Commissioner or a court of competent jurisdiction.\n\nWithin two (2) business days following the hearing the county clerk\n\nshall either sustain or overrule the objections and notify the\n\nparties of the county clerk's ruling by ordinary mail. If the\n\nobjections are sustained, the ruling of the county clerk shall be\n\nconclusive for lien release purposes unless appealed within ten (10)\n\ndays to the district court. If the objections are overruled, the\n\ncounty clerk shall immediately show the lien released of record.\n\nThe bond shall: Name the lien claimant as obligee and the party\n\nseeking the release as principal; be executed by both the principal\n\nand the surety; have a proper power of attorney attached if executed\n\nby an attorney-in-fact; be executed by a corporate surety authorized\n\nto transact business in this state; and be conditioned that the\n\nprincipal and surety will pay the full amount of the claim as\n\nestablished in any appropriate court proceeding, plus any court\n\ncosts and attorney fees awarded the lien claimant, but in no event\n\nshall the liability of the principal or surety under the bond exceed\nby an attorney-in-fact; be executed by a corporate surety authorized\n\nto transact business in this state; and be conditioned that the\n\nprincipal and surety will pay the full amount of the claim as\n\nestablished in any appropriate court proceeding, plus any court\n\ncosts and attorney fees awarded the lien claimant, but in no event\n\nshall the liability of the principal or surety under the bond exceed\n\nthe bond penalty. The preceding clause shall not limit the common\n\nlaw liability of the party who created the indebtedness upon which\n\nthe lien claim is based. The conditions of any bond filed pursuant\n\nto this section shall be deemed to comply with the requirements\n\nhereof, regardless of the language or limitations set forth therein,\n\nif both the principal and surety intend that the bond be filed to\n\nsecure a lien release under this section.\n\nThe cash deposit or bond, as the case may be, shall stand in\n\nlieu of the released lien, and the lien claimant must proceed\n\nagainst the substituted security in the same time and manner as is\n\nrequired for foreclosure of a lien claim. The cash deposit or bond\n\nshall stand liable for such principal, interest, court costs and\n\nattorney fees to the extent they could be awarded in a lien\n\nforeclosure proceeding.\n\nThe only proper parties to an action against the substituted\n\nsecurity are: The party making the cash deposit; the bond principal\n\nand surety; the party primarily liable for the indebtedness giving\n\nrise to the lien claim; and anyone else who may be liable to the\n\nlien claimant for the same indebtedness. The party making the cash\n\ndeposit and the bond principal and surety are necessary parties to\n\nan action against the substituted security, and by making a deposit\n\nor filing a bond the parties subject themselves to personal\n\njurisdiction in the court where the action is properly filed and may\n\nbe served with process as in other cases.\n\nIf the lien claimant fails to timely file a foreclosure action,\n\nupon application of the party making the deposit or filing the bond\n\nand the payment of a fee of Ten Dollars ($10.00), the county clerk\n\nshall return the cash to the party making the deposit or\n\nappropriately note on the bond that the same has been released. The\n\nclerk shall not incur liability to any lien claimant for an\n\ninadvertent release of cash or bond. At the end of five (5) years\n\nand after the county clerk has attempted written notification to the\n\nlien claimant at the address shown on the lien claim, if no\n\nforeclosure has been commenced by the lien claimant or such money\n\nhas not been withdrawn upon application of the depositing party, the\n\ncash deposit plus all accrued interest shall be forfeited to the\n\ncounty general fund.\n\nNothing contained in this section shall preclude the lien\n\nclaimant and other interested parties from entering into agreements\n\nfor the substitution of a different form of security in lieu of the\n\nlien claim.\n\nThe county clerk shall invest the deposited cash in the manner\n\nprovided for county treasurers in Section 348.1 of Title 62 of the\n\nOklahoma Statutes. Any interest earned thereon shall become a part\n\nof the deposit and be either returned to the party making the\n\ndeposit, if no action is filed, or paid in accordance with any final\n\njudgment rendered by the court in the action against the substituted\n\nsecurity. If a district court judgment adverse to the depositing\n\nparty is entered, in setting the amount of supersedeas bond the\n\ncourt shall take into consideration the existing cash deposit or\n\nbond.","path":["OK Code","Title 42"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os42.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"af6495c1e063ed6fc6d9f78c94a68eefab40d7c713ca08a52c8d6aef6e93881f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-42-42-146","next":"us-ok/okla.-stat.-tit.-42-42-148"},"notice":"GroundRules: Original legal text. Not legal advice."}