Oklahoma § 46-4.1 - Mortgages securing extension of credit made primarily for

§ 46-4.1. Mortgages securing extension of credit made primarily for

agricultural purposes - Waiver of appraisement - Assignment of rents

and profits as additional security.

The provisions of this section shall only apply to mortgages

securing an extension of credit made primarily for an agricultural

purpose as defined in paragraph 4 of Section 1-301 of Title 14A of

the Oklahoma Statutes where the mortgagor is either a natural person

or a farm or ranching business corporation as defined in Section 951

of Title 18 of the Oklahoma Statutes. Every instrument

substantially the same as the above shall be deemed a good and valid

mortgage, with all contracts and covenants essential to protect the

rights of the holder thereof; but any further lawful contract

embodied therein shall be binding upon the parties thereto; and when

the words, "and waive the appraisement" are written or printed

therein, the premises mortgaged must be sold without appraisement,

in case of foreclosure and sale thereunder, and in such case no

order for such sale shall issue for six (6) months after the date of

judgment; likewise nothing in this title or in Sections 10 and 11 of

Title 42 of the Oklahoma Statutes shall be construed to prevent a

mortgagor, in a mortgage transaction not involving a consumer loan

as defined in Section 3-104 of Title 14A of the Oklahoma Statutes,

from mortgaging and assigning the rents and profits from the

mortgaged real property as additional security for the debts secured

by the mortgage, where such assignment (i) is made contemporaneously

with the execution of the mortgage, either as a provision therein or

by separate instrument, and (ii) covers a lease or leases then

existing or thereafter executed, including renewals or extension

thereof or substitutes therefor, which cover all or any part of the

mortgaged real property, and (iii) is an assignment not conditioned

upon a future default by the mortgagor, and (iv) provides for the

immediate collection by the mortgagee, or its successors, assigns or

agents, of the rents and profits so assigned as the same become due.

Any mortgagee taking an assignment of rents and profits as described

above shall have the obligation to account and pay to the mortgagor

regarding any rents and profits actually collected pursuant to such

assignment, which are not applied on the indebtedness owing to the

Oklahoma Statutes - Title 46. Mortgages

mortgagee; however, the mortgagee shall not be deemed to have other

fiduciary obligations to the mortgagor resulting from such

assignment or be deemed to be in possession of the mortgaged real

property, unless the mortgagee also enters into continued physical

possession of the mortgaged real property and exercises exclusive

operating control of the mortgaged real property.

Added by Laws 1986, c. 319, § 12, eff. Nov. 1, 1986. Amended by

Laws 1987, c. 107, § 1, eff. Nov. 1, 1987.