Okla. Stat. tit. 12A § 1-9-709

Current through Laws 2024, c. 453.

Section 1-9-709 - Priority

(a) This act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before this act takes effect, former Article 9 determines priority.

(b) For purposes of subsection (a) of Section 1-9-322 of this title, the priority of a security interest that becomes enforceable under Section 1-9-203 of this title dates from the time this act takes effect if the security interest is perfected under this act by the filing of a financing statement before this act takes effect which would not have been effective to perfect the security interest under former Article 9 of this title. This subsection does not apply to conflicting security interests each of which is perfected by the filing of such a financing statement.

Okla. Stat. tit. 12A, § 1-9-709

Added by Laws 2000 , SB 1519, c. 371, § 143, eff. 7/1/2001.

Oklahoma Code Comment

Revised section 9-709 speaks to priority. If priority was fixed under old law, it governs. Otherwise, revised Article 9 governs. Section 9-709(b) provides a special rule to determine the priority of an interest that first becomes perfected or enforceable under revised Article 9. To illustrate, suppose in 1999 the first secured party (SP-1) took but did not perfect a security interest in accounts. Revised Article 9 became effective on July 1, 2001. On August 1, 2001, the second secured party (SP-2) perfected a security interest in the accounts. Revised Article 9 governs priority and SP-2 wins. If SP-2's security interest was created instead in 2000 and never was perfected, SP-1 would win under old Article 9. If SP-2 then properly filed on August 1, 2001, however, SP-2 will prevail under revised Article 9.

As another illustration suppose in 1999 SP-1 took a security interest in "instruments" and filed to perfect. In 2000 SP-2 took an interest in "accounts" and filed to perfect. After July 1, 2001, an account debtor evidences an overdue account with a note. SP-l as the earlier perfected interest would prevail, except under prior law his or her filing was not good for instruments and so under revised section 9-709(b) , SP-l's priority stems only from the effective date of revised Article 9 when filing suffices, and thus SP-2 prevails.

See also Oklahoma Comment to revised section 9-702 .