Okla. Stat. tit. 12A § 2A-525

Current through Laws 2024, c. 453.

Section 2A-525 - Lessor's right to possession of goods

(1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods.

(2) After a default by the lessee under the lease contract of the type described in subsection (1) of Section 2A-523 or paragraph (a) of subsection (3) of Section 2A-523 of this title or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (Section 2A-527 of this title).

(3) The lessor may proceed under subsection (2) of this section without judicial process if it can be done without breach of the peace or the lessor may proceed by action.

Okla. Stat. tit. 12A, § 2A-525

Added by Laws 1988, HB 1683, c. 86, § 72, eff. 11/1/1988; Amended by Laws 1991, SB 25, c. 117, § 21, eff. 1/1/1992.

Oklahoma Code Comment

Subsection (2) recognizes the right of a lessor as owner to retake the goods upon default whether or not this right is stipulated in the lease. However, this right, as well as a right to take possession of articles in the leased property or accessions to it and to accelerate future rent not yet due upon any default are desirable and standard boilerplate in leases as they are in security agreements.

Subsection (3) reads much like 12A Oklahoma Statutes § 9-503. Accordingly, the Article 9 jurisprudence as to what constitutes a proper repossession is equally applicable. See, e.g., Kroeger v. Ogsden, 429 P.2d 781 (Okla.1967) and Mitchell v. Ford Motor Credit Co., 688 P.2d 42 (Okla.1984). Presumably the damage for any conversion resulting from an improper repossession is the value of the lost use of the goods for the period of deprival, the "property" under 23 Oklahoma Statutes § 64 being in the leasehold interest. It also would seem that the constitutional consideration is the same concerning the right to repossess. See Helfinstine v. Martin, 561 P.2d 951 (Okla.1977). To proceed by "action" instead of by repossession, a lessor would utilize 12 Oklahoma Statutes § 1571 et seq. on replevin. Compare Oliver v. Leslie, 248 P.2d 624 (Okla.1952).

Section 2A-532 added by the 1991 amendments also protects the lessor's residual.