Any property owner or other interested party, including but not limited to mortgagees, contractors, subcontractors and others against whom a lien claim is filed under the provisions of the law relating to mechanics' and materialmen's liens, may at any time discharge the lien by depositing with the county clerk in whose office the lien claim has been filed either: An amount of money equal to one hundred twenty-five percent (125%) of the lien claim amount; or a corporate surety bond with a penal amount equal to one hundred twenty-five percent (125%) of the lien claim amount. Within three (3) business days after the deposit of money or bond is made, the county clerk shall serve upon the lien claimant, at the address shown on the lien claim, written notice setting forth: The number of the lien claim; the name of the lien claimant; the name of the property owner; the name of the alleged debtor, if someone other than the property owner; the property description shown on the lien claim; and the amount of cash deposited or, if a bond is filed, the names of the principal and surety and the bond penalty. The party seeking to discharge the lien shall prepare and deliver the notice to the county clerk and pay a fee in accordance with Section 32 of Title 28 of the Oklahoma Statutes. An abbreviated notice may be used if the same refers to and encloses a copy of the lien claim and either a copy of the cash receipt issued by the county clerk or a copy of the bond with the clerk's filing stamp thereon. The notice shall be mailed by registered or certified mail at the option of the county clerk.
If cash is deposited, the county clerk shall immediately show the lien released of record. If a bond is deposited, the lien claimant shall have ten (10) days after the notice is mailed within which to file a written objection with the county clerk. If a written objection is not timely filed the county clerk shall immediately show the lien released of record. If an objection is timely made, the county clerk shall set a hearing within ten (10) days thereafter and notify by ordinary mail both the lien claimant and the party making the deposit of the date and time thereof. The only grounds for objection shall be that: The surety is not authorized to transact business in this state; the bond is not properly signed; the penal amount is less than one hundred twenty-five percent (125%) of the claim; the power of attorney of the surety's attorney-in-fact does not authorize the execution; there is no power of attorney attached if the bond is executed by anyone other than the surety's president and attested by its secretary; or a cease and desist order has been issued against the surety either by the Insurance Commissioner or a court of competent jurisdiction. Within two (2) business days following the hearing the county clerk shall either sustain or overrule the objections and notify the parties of the county clerk's ruling by ordinary mail. If the objections are sustained, the ruling of the county clerk shall be conclusive for lien release purposes unless appealed within ten (10) days to the district court. If the objections are overruled, the county clerk shall immediately show the lien released of record.
The bond shall: Name the lien claimant as obligee and the party seeking the release as principal; be executed by both the principal and the surety; have a proper power of attorney attached if executed by an attorney-in-fact; be executed by a corporate surety authorized to transact business in this state; and be conditioned that the principal and surety will pay the full amount of the claim as established in any appropriate court proceeding, plus any court costs and attorney fees awarded the lien claimant, but in no event shall the liability of the principal or surety under the bond exceed the bond penalty. The preceding clause shall not limit the common law liability of the party who created the indebtedness upon which the lien claim is based. The conditions of any bond filed pursuant to this section shall be deemed to comply with the requirements hereof, regardless of the language or limitations set forth therein, if both the principal and surety intend that the bond be filed to secure a lien release under this section.
The cash deposit or bond, as the case may be, shall stand in lieu of the released lien, and the lien claimant must proceed against the substituted security in the same time and manner as is required for foreclosure of a lien claim. The cash deposit or bond shall stand liable for such principal, interest, court costs and attorney fees to the extent they could be awarded in a lien foreclosure proceeding.
The only proper parties to an action against the substituted security are: The party making the cash deposit; the bond principal and surety; the party primarily liable for the indebtedness giving rise to the lien claim; and anyone else who may be liable to the lien claimant for the same indebtedness. The party making the cash deposit and the bond principal and surety are necessary parties to an action against the substituted security, and by making a deposit or filing a bond the parties subject themselves to personal jurisdiction in the court where the action is properly filed and may be served with process as in other cases.
If the lien claimant fails to timely file a foreclosure action, upon application of the party making the deposit or filing the bond and the payment of a fee of Ten Dollars ($10.00), the county clerk shall return the cash to the party making the deposit or appropriately note on the bond that the same has been released. The clerk shall not incur liability to any lien claimant for an inadvertent release of cash or bond. At the end of five (5) years and after the county clerk has attempted written notification to the lien claimant at the address shown on the lien claim, if no foreclosure has been commenced by the lien claimant or such money has not been withdrawn upon application of the depositing party, the cash deposit plus all accrued interest shall be forfeited to the county general fund.
Nothing contained in this section shall preclude the lien claimant and other interested parties from entering into agreements for the substitution of a different form of security in lieu of the lien claim.
The county clerk shall invest the deposited cash in the manner provided for county treasurers in Section 348.1 of Title 62 of the Oklahoma Statutes. Any interest earned thereon shall become a part of the deposit and be either returned to the party making the deposit, if no action is filed, or paid in accordance with any final judgment rendered by the court in the action against the substituted security. If a district court judgment adverse to the depositing party is entered, in setting the amount of supersedeas bond the court shall take into consideration the existing cash deposit or bond.
Added by Laws 1982, c. 332, § 1, eff. Oct. 1, 1982. Amended by Laws 2003, c. 184, § 4, eff. Nov. 1, 2003; Laws 2007, c. 100, § 6, eff. Nov. 1, 2007; Laws 2019, c. 328, § 1, eff. Nov. 1, 2019.
NOTE: Laws 2007, c. 132, § 7 repealed by Laws 2008, c. 3, § 23, emerg. eff. Feb. 28, 2008.
Structure Oklahoma Statutes
§42-4. Special lien - Prior lien.
§42-8. Lien on future interest.
§42-9. Lien to take immediate effect.
§42-10. Lien transfers no title.
§42-11. Contracts for forfeiture of property and restraining redemption.
§42-12. Lien does not imply obligation.
§42-13. Extent of lien limited.
§42-14. Holder of lien not entitled to compensation.
§42-15. Priority of liens according to date.
§42-16. Priority of mortgage for price of realty.
§42-17. Order of resort for payment of prior liens.
§42-18. Persons entitled to redeem lien - Federal right of first refusal - Rule of construction.
§42-19. Holder of inferior lien - Redemption.
§42-20. Redemption - How made.
§42-21. Lien is an accessory obligation.
§42-22. Sale or conversion of property extinguishes lien.
§42-24. Partial performance as extinguishing lien.
§42-25. Voluntary restoration as extinguishing lien.
§42-26. Vendor's lien for price of realty.
§42-27. Waiver of vendor's lien.
§42-28. Validity of liens of vendors and purchasers.
§42-30. Lien of purchaser of real property.
§42-33. Special lien of officer levying attachment or execution.
§42-43. Hospital liens in personal injury cases - Priority - Exception.
§42-44. Filing of notice of lien - Enforcement by civil action.
§42-45. Insurance agent's lien.
§42-47. Provider of seed, chemicals, pesticides, herbicides or fertilizer - Agricultural lien.
§42-49. Ambulance service provider liens.
§42-90. Notice preparers to register and submit annual fee.
§42-91.1. Abandoned vehicle auctions – Exemption from fees and taxes.
§42-91.2. Liens on farm equipment.
§42-92. Laborer's lien on products of labor.
§42-98. Filing of statement of lien with county clerk - Innocent purchasers.
§42-99. Priority of mortgage liens.
§42-100. Foreclosure of liens.
§42-101. Sale, disposal or removal of property covered by lien - Punishment.
§42-102. Discharge of lien when satisfied.
§42-104. Enforcement and foreclosure of liens on farm equipment.
§42-111. Persons entitled to liens - Commencement of lien.
§42-112. Filing statement of lien in office of county clerk - Right to lien as against purchaser.
§42-113. Priority of mortgage liens - Liability of mortgagee consenting in writing.
§42-114. Statement furnished owner by thresher - Forfeiture on failure to comply.
§42-116. Sale for purpose of paying threshing or combining bill.
§42-117. Selling in violation of lien.
§42-118. Satisfaction of lien - Discharge - Record - Duty of holders.
§42-120. Statement to be furnished owner or person in charge - False statements as to law.
§42-121. Removal of grain or seed with fraudulent intent - Fraudulent appropriation.
§42-131. Lien provided for work.
§42-132. Procedure to perfect lien.
§42-141. Right to lien - Priority - Enforceablility against property - Constructive notice.
§42-141.1. Transfer of records, funds, and powers and duties to county clerk.
§42-142. Statement to be filed.
§42-142.4. Fraudulent statement - Felony.
§42-142.6. Pre-lien notice - Requirements – Affidavit - Penalties.
§42-143. Lien by or through subcontractor.
§42-143.1. Notice - Filing of lien statement - Fees.
§42-143.3. Leased or rented equipment - Exemption from act.
§42-143.4. Leased or rented equipment - Property used for production of oil or gas.
§42-144. Oil and gas well liens.
§42-144.1. Effectiveness of lien against purchaser - Delivery of copy of statement of lien.
§42-144.2. Trust funds for payment of lienable claims.
§42-145. Oil and gas well lien by or through subcontractor.
§42-146. Enforcement of lien on oil and gas wells.
§42-148. Lien on mining property for work thereon.
§42-149. Suit within one year.
§42-151. Lightning rods not included herein.
§42-153. Payment of lienable claims.
§42-161. Right to lien against railroads.
§42-174. Consolidation of actions and stay of trial.
§42-175. Sale of property after judgment.
§42-177. Suit by owner to determine lien and cancellation of lien on docket.
§42-178. Proceeds insufficient.
§42-180. Liens against manufactured homes – Repossession - Notice.
§42-193. Applicability of Article 7 of Commercial Code.
§42-194. Duty of care - Disclosure.
§42-195. Default by occupant - Prevention of access - Liability for damage to property.
§42-196. Lien - Date of attachment - Disclosure of other lienholders.
§42-197. Priority - Enforcement - Notice - Sale of property.
§42-197.1. Abandonment or surrender – Possession – Disposal – Notice.
§42-198. Residential use prohibited.
§42-199. Other rights not impaired or affected.
§42-203. Real estate broker lien - Attachment.
§42-204. Notice of lien - Mailing.
§42-205. Suit to enforce lien - Extinguishment of lien.