2013 Oklahoma Statutes
Title 60 - Property


Download Title 60 - Property
Loading RTF...
<html> <head> <STYLE type="text/css"> body {padding-left:90pt;width:612pt} p {margin-top:0pt;margin-bottom:0pt} .cls0 {font-size:12pt;font-family:'Courier New', monospace;} .cls3 {margin-left:100pt;} .cls4 {margin-left:136pt;} .cls2 {text-align:center;} .cls1 {text-align:justify;} </STYLE> <title>&sect;60 1</title> </head> <body> <p><span class="cls0">&sect;601. Definition of property.&nbsp;</span></p> <p><span class="cls0">The ownership of a thing is the right of one or more persons to possess and use it to the exclusion of others. In this Chapter the thing of which there may be ownership is called property.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6586. &nbsp;</span></p> <p><span class="cls0">&sect;602. Ownership, what subject to.&nbsp;</span></p> <p><span class="cls0">There may be ownership of all inanimate things which are capable of appropriation, or of manual delivery; of all domestic animals; of all obligations; of such products of labor or skill, as the composition of an author, the good will of a business, trade marks and signs, and of rights created or granted by statute.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6587. &nbsp;</span></p> <p><span class="cls0">&sect;603. Wild animals may be owned, when.&nbsp;</span></p> <p><span class="cls0">Animals, wild by nature, are the subjects of ownership while living only when on the land of the person claiming them, or when tamed, or taken and held in possession, or disabled and immediately pursued.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6588. &nbsp;</span></p> <p><span class="cls0">&sect;60-4. Property classified.&nbsp;</span></p> <p><span class="cls0">Property is either:&nbsp;</span></p> <p><span class="cls0">1. Real or immovable; or&nbsp;</span></p> <p><span class="cls0">2. Personal or movable.&nbsp;</span></p> <p><span class="cls0">R.L.1910, &sect; 6589.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;605. Real property defined.&nbsp;</span></p> <p><span class="cls0">Real or immovable property consists of:&nbsp;</span></p> <p><span class="cls0">1. Land.&nbsp;</span></p> <p><span class="cls0">2. That which is affixed to land.&nbsp;</span></p> <p><span class="cls0">3. That which is incidental or appurtenant to land.&nbsp;</span></p> <p><span class="cls0">4. That which is immovable by law.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6590. &nbsp;</span></p> <p><span class="cls0">&sect;60-6. Land defined.&nbsp;</span></p> <p><span class="cls0">A. Land is the solid material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock or other substance, and includes any pore space.&nbsp;</span></p> <p><span class="cls0">B. 1. As used in this section, &ldquo;pore space&rdquo; means any interstitial space not occupied by soil or rock, within the solid material of the earth, and any cavity, hole, hollow or void space within the solid material of the earth.&nbsp;</span></p> <p><span class="cls0">2. As used in this section, pore space is real property and, until title to the pore space or rights, interests or estates in the pore space are separately transferred, pore space is property of the person or persons holding title to the land surface above it.&nbsp;</span></p> <p><span class="cls0">3. Notwithstanding the ownership of the pore space, nothing in this section shall alter or be construed to alter the ownership of, or rights associated with the oil or gas, as those terms are defined in Section 86.1 of Title 52 of the Oklahoma Statutes, that may be within the pore space.&nbsp;</span></p> <p><span class="cls0">R.L.1910, &sect; 6591. Amended by Laws 2011, c. 264, &sect; 6.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;607. Fixtures defined.&nbsp;</span></p> <p><span class="cls0">A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines or shrubs, or embedded in it, as in the case of walls, or permanently resting upon it, as in the case of buildings, or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts or screws. R.L. 1910 Sec. 6592.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6592. &nbsp;</span></p> <p><span class="cls0">&sect;608. Appurtenances defined.&nbsp;</span></p> <p><span class="cls0">A thing is deemed to be incidental or appurtenant to land when it is by right used with the land for its benefit, as in the case of a way or watercourse, or of a passage for light, air or heat, from or across the land of another. Sluice boxes, flumes, hose, pipes, railway tracks, cars, blacksmith shops, mills, and all other machinery or tools used in working or developing a mine, are to be deemed affixed to the mine. R.L. 1910 Sec. 6593.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6593. &nbsp;</span></p> <p><span class="cls0">&sect;609. Personal property defined.&nbsp;</span></p> <p><span class="cls0">Every kind of property that is not real is personal. R.L. 1910 Sec. 6594.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6594. &nbsp;</span></p> <p><span class="cls0">&sect;6021. Real property, what law governs.&nbsp;</span></p> <p><span class="cls0">Real property within this state is governed by the law of this state, except where the title is in the United States.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6595. &nbsp;</span></p> <p><span class="cls0">&sect;6022. Classification as to duration.&nbsp;</span></p> <p><span class="cls0">Estates in real property, in respect to the duration of their enjoyment, are either:&nbsp;</span></p> <p><span class="cls0">1. Estates of inheritance, or perpetual estates.&nbsp;</span></p> <p><span class="cls0">2. Estates for life.&nbsp;</span></p> <p><span class="cls0">3. Estates for years; or,&nbsp;</span></p> <p><span class="cls0">4. Estates at will.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6596. &nbsp;</span></p> <p><span class="cls0">&sect;6023. Estate in fee defined.&nbsp;</span></p> <p><span class="cls0">Every estate of inheritance is a fee, and every such estate, when not defeasible or conditional, is a fee simple or an absolute fee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6597. &nbsp;</span></p> <p><span class="cls0">&sect;6024. Estates tail abolished.&nbsp;</span></p> <p><span class="cls0">Estates tail are abolished; and every estate which would be at common law adjudged to be a fee tail is a fee simple, and if no valid remainder is limited thereon, is a fee simple absolute.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6598. &nbsp;</span></p> <p><span class="cls0">&sect;6025. Limitation of remainder in tail.&nbsp;</span></p> <p><span class="cls0">Where a remainder in fee is limited upon any estate, which would by the common law be adjudged a fee tail, such remainder is valid as a contingent limitation upon a fee, and vests in possession on the death of the first taker, without issue living at the time of his death.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6599. &nbsp;</span></p> <p><span class="cls0">&sect;6026. Certain estates defined.&nbsp;</span></p> <p><span class="cls0">Estates of inheritance and for life are called estates of freehold; estates for years are chattels real; and estates at will are chattel interests, but are not liable as such to sale on execution.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6600. &nbsp;</span></p> <p><span class="cls0">&sect;6027. Estate pour autre vie.&nbsp;</span></p> <p><span class="cls0">An estate during the life of a third person, whether limited to heirs or otherwise, is a freehold.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6601. &nbsp;</span></p> <p><span class="cls0">&sect;6028. Particular estate not necessary to remainder.&nbsp;</span></p> <p><span class="cls0">A future estate may be limited by the act of the party to commence in possession at a future day, either without the intervention of a precedent estate, or on the termination, by lapse of time, or otherwise, of a precedent estate, created at the same time.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6602. &nbsp;</span></p> <p><span class="cls0">&sect;6029. Reversion defined.&nbsp;</span></p> <p><span class="cls0">The reversion is the residue of an estate left, by operation of law, in the grantor, or his successors, or in the successors of a testator, commencing in possession on the determination of a particular estate granted or devised.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;6030. Remainder defined.&nbsp;</span></p> <p><span class="cls0">When a future estate, other than a reversion, is dependent on a precedent estate, it may be called a remainder, and may be created and transferred by that name.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;6031. Suspension of alienation.&nbsp;</span></p> <p><span class="cls0">The absolute power of alienation shall not be suspended, by any limitation or condition whatever, for a longer period than during the continuance of the lives of persons in being at the creation of the limitation or condition plus twentyone (21) years, except as provided in Section 34 of Title 60 of the Oklahoma Statutes.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6605; Laws 1977, c. 5, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;6032. Suspension of ownership limited.&nbsp;</span></p> <p><span class="cls0">The absolute ownership of a term of years cannot be suspended for a longer period than the absolute power of alienation can be suspended in respect to a fee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 266, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;6033. Suspension further defined.&nbsp;</span></p> <p><span class="cls0">The suspension of all power to alienate the subject of the trust, other than a power to exchange it for other property to be held upon the same trust, or to sell it and reinvest the proceeds to be held under the same trust, is a suspension of the power of alienation within the meaning of the second preceding section.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6607. &nbsp;</span></p> <p><span class="cls0">&sect;6034. Contingent remainder in fee, on prior remainder.&nbsp;</span></p> <p><span class="cls0">A contingent remainder in fee may be created on a prior remainder in fee, to take effect in the event that the persons to whom the first remainder is limited die under the age of twentyone (21) years, or upon any other contingency by which the estate of such persons may be determined before they attain majority.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6608. &nbsp;</span></p> <p><span class="cls0">&sect;6035. Future estates.&nbsp;</span></p> <p><span class="cls0">Subject to the rules of this chapter, a freehold estate, as well as an estate for years, may be created to commence at a future day; an estate for life may be created in a term of years, and a remainder limited thereon; a remainder of a freehold or an estate for years, either contingent or vested, may be created, expectant on the determination of a term of years; and a fee may be limited on a fee, upon a contingency, which if it should occur, must happen within the period prescribed herein.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6609. &nbsp;</span></p> <p><span class="cls0">&sect;6036. Certain limitations of estates void.&nbsp;</span></p> <p><span class="cls0">Successive estates for life cannot be limited, except to persons in being at the creation thereof, and all life estates subsequent to those of persons in being are void; and upon the death of those persons, the remainder, if valid in its creation, takes effect in the same manner as if no other life estate had been created.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6610. &nbsp;</span></p> <p><span class="cls0">&sect;60-36.1. Death of life tenant - Prima facie evidence.&nbsp;</span></p> <p><span class="cls0">In the event of the death of a life tenant leaving an estate subject to probate, a certified copy of Letters Testamentary or of Administration shall constitute prima facie evidence of the life tenant's death.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1992, c. 395, &sect; 14, eff. Sept. 1, 1992.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;6037. Remainder on successive lives must be in fee.&nbsp;</span></p> <p><span class="cls0">No remainder can be created upon successive estates for life, provided for in the preceding section, unless such remainder is in fee; nor can a remainder be created upon such estate in a term for years unless it is for the whole residue of such term.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6611. &nbsp;</span></p> <p><span class="cls0">&sect;6038. Contingent remainder on term of years.&nbsp;</span></p> <p><span class="cls0">A contingent remainder cannot be created on a term of years, unless the nature of the contingency on which it is limited is such that the remainder must vest an interest during the continuance or at the termination of lives in being at the creation of such remainder.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6612. &nbsp;</span></p> <p><span class="cls0">&sect;6039. Estate for life limited as remainder.&nbsp;</span></p> <p><span class="cls0">No estate for life can be limited as a remainder on a term of years, except to a person in being at the creation of such estate.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6613. &nbsp;</span></p> <p><span class="cls0">&sect;60-40. Conditional limitations.&nbsp;</span></p> <p><span class="cls0">A remainder may be limited on a contingency which, in case it should happen, will operate to abridge or determine the precedent estate; and every such remainder is to be deemed a conditional limitation.&nbsp;</span></p> <p><span class="cls0">R.L.1910, &sect; 6614.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;6041. Remainder in fee to heirs after life estate.&nbsp;</span></p> <p><span class="cls0">When a remainder is limited to the heirs, or heirs of the body, of a person to whom a life estate in the same property is given, the persons who, on the termination of the life estate, are the successors or heirs of the body of the owner for life, are entitled to take by virtue of the remainder so limited to them, and not as mere successors of the owner for life.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6615. &nbsp;</span></p> <p><span class="cls0">&sect;6042. Remainder not contingent.&nbsp;</span></p> <p><span class="cls0">When a remainder on an estate for life or for years is not limited on a contingency defeating or avoiding such precedent estate, it is to be deemed intended to take effect only on the death of the first taker, or the expiration, by lapse of time, of such term of years.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6616. &nbsp;</span></p> <p><span class="cls0">&sect;6043. Future estate after unexecuted power.&nbsp;</span></p> <p><span class="cls0">A general or special power of appointment does not prevent the vesting of a future estate, limited to take effect in case such power is not executed.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6617. &nbsp;</span></p> <p><span class="cls0">&sect;6044. Termination of estate at will.&nbsp;</span></p> <p><span class="cls0">A tenancy or other estate at will, however created, may be terminated by the landlord's giving notice to the tenant, in the manner prescribed by the next section, to remove from the premises within a period specified in the notice, of not less than one (1) month except as provided in the chapter on "Landlord and Tenant."&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6618. &nbsp;</span></p> <p><span class="cls0">&sect;6045. Notice of termination.&nbsp;</span></p> <p><span class="cls0">The notice prescribed by the last section must be in writing, and must be served by delivering the same to the tenant, or to some person of discretion residing on the premises; or if neither can, with reasonable diligence, be found, the notice may be served by affixing it on a conspicuous part of the premises, where it may be conveniently read.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6619. &nbsp;</span></p> <p><span class="cls0">&sect;6046. Action after notice.&nbsp;</span></p> <p><span class="cls0">After the notice prescribed by the two preceding sections has been served in the manner therein directed, and the period specified by such notice has expired, but not before, the landlord may reenter or proceed according to law to recover possession.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6620. &nbsp;</span></p> <p><span class="cls0">&sect;6047. Reentry, notice of.&nbsp;</span></p> <p><span class="cls0">Whenever the right of reentry is given to a grantor or lessor in any grant or lease, or otherwise, such reentry may be made at any time after the right has accrued upon three (3) days' previous written notice of intention to reenter, served in the mode prescribed by Section 6619.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6621. &nbsp;</span></p> <p><span class="cls0">&sect;6048. Possession, action for.&nbsp;</span></p> <p><span class="cls0">An action for the possession of real property leased or granted, with a right of reentry, may be maintained at any time after the right to reenter has accrued, without the notice prescribed in the preceding section.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6622. &nbsp;</span></p> <p><span class="cls0">&sect;60-49. Easements attached to land.&nbsp;</span></p> <p><span class="cls0">The following land burdens or servitudes upon land, may be attached to other land as incidents or appurtenances, and are then called easements: &nbsp;</span></p> <p><span class="cls0">1. The right of pasture;&nbsp;</span></p> <p><span class="cls0">2. The right of fishing;&nbsp;</span></p> <p><span class="cls0">3. The right of taking game;&nbsp;</span></p> <p><span class="cls0">4. The right-of-way;&nbsp;</span></p> <p><span class="cls0">5. The right of taking water, wood, minerals, and other things;&nbsp;</span></p> <p><span class="cls0">6. The right of transacting business upon land;&nbsp;</span></p> <p><span class="cls0">7. The right of conducting lawful sports upon land;&nbsp;</span></p> <p><span class="cls0">8. The right of receiving air, light, or heat from or over, or discharging the same upon or over land;&nbsp;</span></p> <p><span class="cls0">9. The right of receiving water from or discharging the same upon land;&nbsp;</span></p> <p><span class="cls0">10. The right of flooding land;&nbsp;</span></p> <p><span class="cls0">11. The right of having water flow without diminution or disturbance of any kind;&nbsp;</span></p> <p><span class="cls0">12. The right of using a wall as a party wall;&nbsp;</span></p> <p><span class="cls0">13. The right of receiving more than natural support from adjacent land or things affixed thereto;&nbsp;</span></p> <p><span class="cls0">14. The right of having the whole of a division fence maintained by a coterminous owner;&nbsp;</span></p> <p><span class="cls0">15. The right of having public conveyances stopped, or of stopping the same on land;&nbsp;</span></p> <p><span class="cls0">16. The right of a seat in church;&nbsp;</span></p> <p><span class="cls0">17. The right of burial; and&nbsp;</span></p> <p><span class="cls0">18. The right to impose limitations or affirmative obligations relating to conservation pursuant to the Uniform Conservation Easement Act.&nbsp;</span></p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6623. Amended by Laws 1999, c. 384, &sect; 9, eff. Nov. 1, 1999&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.1. Short title.&nbsp;</span></p> <p class="cls2"><span class="cls0">SHORT TITLE&nbsp;</span></p> <p><span class="cls0">Sections 1 through 8 of this act shall be known and may be cited as the "Uniform Conservation Easement Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 1, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.2. Definitions.&nbsp;</span></p> <p class="cls2"><span class="cls0">DEFINITIONS&nbsp;</span></p> <p><span class="cls0">As used in this act:&nbsp;</span></p> <p><span class="cls0">1. "Conservation easement" means a nonpossessory interest of a holder in real property imposing limitations or affirmative obligations the purposes of which include, but are not limited to, retaining or protecting natural, scenic, or open-space values of real property, assuring its availability for agricultural, forest, recreational, or open-space use, protecting natural resources, maintaining or enhancing air or water quality, or preserving the historical, architectural, archaeological, or cultural aspects of real property; and&nbsp;</span></p> <p><span class="cls0">2. "Holder" means:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;a governmental body empowered to hold an interest in real property under the laws of this state or the United States, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;a charitable corporation, charitable association, or charitable trust, the purposes or powers of which include retaining or protecting the natural, scenic, or open-space values of real property, assuring the availability of real property for agricultural, forest, recreational, or open-space use, protecting natural resources, maintaining or enhancing air or water quality, or preserving the historical, architectural, archaeological, or cultural aspects of real property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 2, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.3. Creation, conveyance, acceptance, and duration.&nbsp;</span></p> <p class="cls2"><span class="cls0">CREATION, CONVEYANCE, ACCEPTANCE, AND DURATION&nbsp;</span></p> <p><span class="cls0">A. Except as otherwise provided in this act, a conservation easement may be created, conveyed, recorded, assigned, released, modified, terminated, or otherwise altered or affected in the same manner as other easements, provided however, nothing herein shall authorize any entity or individual to obtain a conservation easement by condemnation.&nbsp;</span></p> <p><span class="cls0">B. No right or duty in favor of or against a holder arises under a conservation easement before its acceptance by the holder and a recordation of the acceptance.&nbsp;</span></p> <p><span class="cls0">C. Except as provided in subsection B of Section 4 of this act, the term of a conservation easement shall be the term stated in the instrument creating it.&nbsp;</span></p> <p><span class="cls0">D. An interest in real property in existence at the time a conservation easement is created is not impaired by it unless the owner of the interest is a party to the conservation easement or consents to it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 3, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.4. Judicial Actions.&nbsp;</span></p> <p class="cls2"><span class="cls0">JUDICIAL ACTIONS&nbsp;</span></p> <p><span class="cls0">A. An action affecting a conservation easement may be brought by:&nbsp;</span></p> <p><span class="cls0">1. An owner of an interest in the real property burdened by the easement;&nbsp;</span></p> <p><span class="cls0">2. A holder of the easement; or&nbsp;</span></p> <p><span class="cls0">3. A person authorized by other law.&nbsp;</span></p> <p><span class="cls0">B. The Uniform Conservation Easement Act does not affect the power of a court to modify or terminate a conservation easement in accordance with the principles of law and equity.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 4, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.5. Validity.&nbsp;</span></p> <p class="cls2"><span class="cls0">VALIDITY&nbsp;</span></p> <p><span class="cls0">A conservation easement is valid even though:&nbsp;</span></p> <p><span class="cls0">1. It is not appurtenant to an interest in real property;&nbsp;</span></p> <p><span class="cls0">2. It can be or has been assigned to another holder;&nbsp;</span></p> <p><span class="cls0">3. It is not of a character that has been recognized traditionally at common law;&nbsp;</span></p> <p><span class="cls0">4. It imposes a negative burden;&nbsp;</span></p> <p><span class="cls0">5. It imposes affirmative obligations upon the owner of an interest in the burdened property or upon the holder;&nbsp;</span></p> <p><span class="cls0">6. The benefit does not touch or concern real property; or&nbsp;</span></p> <p><span class="cls0">7. There is no privity of estate or of contract.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 5, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.6. Applicability.&nbsp;</span></p> <p class="cls2"><span class="cls0">APPLICABILITY&nbsp;</span></p> <p><span class="cls0">A. The Uniform Conservation Easement Act applies to any interest created after November 1, 1999, which complies with the Uniform Conservation Easement Act, whether designated as a conservation easement or as a covenant, equitable servitude, restriction, easement, or otherwise.&nbsp;</span></p> <p><span class="cls0">B. The Uniform Conservation Easement Act applies to any interest created before November 1, 1999, if it would have been enforceable had it been created after November 1, 1999, unless retroactive application contravenes the constitution or laws of this state or the United States.&nbsp;</span></p> <p><span class="cls0">C. The Uniform Conservation Easement Act does not invalidate any interest, whether designated as a conservation or preservation easement or as a covenant, equitable servitude, restriction, easement, or otherwise, that is enforceable under other laws of this state.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 6, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.7. Uniformity of application and construction.&nbsp;</span></p> <p class="cls2"><span class="cls0">UNIFORMITY OF APPLICATION AND CONSTRUCTION&nbsp;</span></p> <p><span class="cls0">This act shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this act among states enacting it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 7, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.8. Additional Construction.&nbsp;</span></p> <p class="cls2"><span class="cls0">ADDITIONAL CONSTRUCTION&nbsp;</span></p> <p><span class="cls0">Unless the grantor of a conservation easement elects otherwise at the time of and in the same manner as the grant of the easement:&nbsp;</span></p> <p><span class="cls0">1. Nothing in this act shall be construed to impair the rights of a party with respect to the acquisition of rights-of-way, easements, or other property rights, whether through voluntary conveyance or eminent domain, upon or under which facilities, plant, system, or other improvements including, but not limited to, a pipeline for transmission, gathering, or transportation of hydrocarbons are to be constructed; and&nbsp;</span></p> <p><span class="cls0">2. The holder of a conservation easement must subordinate, without construction restrictions or other obligations, the conservation easement upon the request of any party owning any of the above rights-of-way, easements, or other property rights whether acquired prior or subsequent to the conservation easement.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 384, &sect; 8, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-49.11. Short title.&nbsp;</span></p> <p><span class="cls0">SHORT TITLE.&nbsp;</span></p> <p><span class="cls0">A. Sections 1 through 13 of this act shall be known and may be cited as the &ldquo;Uniform Environmental Covenants Act&rdquo;.&nbsp;</span></p> <p><span class="cls0">B. The provisions of the Uniform Environmental Covenants Act apply to real property in Oklahoma that otherwise qualifies under the provisions of the act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 1, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.12. Definitions.&nbsp;</span></p> <p><span class="cls0">DEFINITIONS.&nbsp;</span></p> <p><span class="cls0">In the Uniform Environmental Covenants Act:&nbsp;</span></p> <p><span class="cls0">1. &ldquo;Activity and use limitations&rdquo; means restrictions or obligations created under this act with respect to real property;&nbsp;</span></p> <p><span class="cls0">2. &ldquo;Agency&rdquo; means the Department of Environmental Quality or any other state or federal agency that determines or approves the environmental response project pursuant to which the environmental covenant is created;&nbsp;</span></p> <p><span class="cls0">3. &ldquo;Common interest community&rdquo; means a condominium, cooperative, or other real property with respect to which a person, by virtue of the person&rsquo;s ownership of a parcel of real property, is obligated to pay property taxes or insurance premiums, or for maintenance, or improvement of other real property described in a recorded covenant that creates the common interest community;&nbsp;</span></p> <p><span class="cls0">4. &ldquo;Environmental covenant&rdquo; means a servitude arising under an environmental response project that imposes activity and use limitations;&nbsp;</span></p> <p><span class="cls0">5. &ldquo;Environmental response project&rdquo; means a plan or work performed for environmental remediation of real property and conducted:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;under a federal or state program governing environmental remediation of real property, including remedial actions provided for in the Oklahoma Environmental Quality Code,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;incident to closure of a solid or hazardous waste management unit, if the closure is conducted with approval of an agency, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;under a state voluntary cleanup program authorized in the Oklahoma Brownfields Voluntary Redevelopment Act;&nbsp;</span></p> <p><span class="cls0">6. &ldquo;Holder&rdquo; means the grantee of an environmental covenant as specified in subsection A of Section 3 of this act;&nbsp;</span></p> <p><span class="cls0">7. &ldquo;Person&rdquo; means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity;&nbsp;</span></p> <p><span class="cls0">8. &ldquo;Record&rdquo;, used as a noun, means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and&nbsp;</span></p> <p><span class="cls0">9. &ldquo;State&rdquo; means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 2, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.13. Nature of rights - Subordination of interests.&nbsp;</span></p> <p><span class="cls0">NATURE OF RIGHTS; SUBORDINATION OF INTERESTS. &nbsp;</span></p> <p><span class="cls0">A. Any person, including a person that owns an interest in the real property, the agency, or a municipality or other unit of local government, may be a holder. An environmental covenant may identify more than one holder. The interest of a holder is an interest in real property.&nbsp;</span></p> <p><span class="cls0">B. A right of an agency under the Uniform Environmental Covenants Act or under an environmental covenant, other than a right as a holder, is not an interest in real property.&nbsp;</span></p> <p><span class="cls0">C. An agency is bound by any obligation it assumes in an environmental covenant, but an agency does not assume obligations merely by signing an environmental covenant. Any other person that signs an environmental covenant is bound by the obligations the person assumes in the covenant, but signing the covenant does not change obligations, rights, or protections granted or imposed under law other than the Uniform Environmental Covenants Act except as provided in the covenant.&nbsp;</span></p> <p><span class="cls0">D. The following rules apply to interests in real property in existence at the time an environmental covenant is created or amended:&nbsp;</span></p> <p><span class="cls0">1. An interest that has priority under other law is not affected by an environmental covenant unless the person that owns the interest subordinates that interest to the covenant;&nbsp;</span></p> <p><span class="cls0">2. The Uniform Environmental Covenants Act does not require a person that owns a prior interest to subordinate that interest to an environmental covenant or to agree to be bound by the covenant;&nbsp;</span></p> <p><span class="cls0">3. A subordination agreement may be contained in an environmental covenant covering real property or in a separate record. If the environmental covenant covers commonly owned property in a common interest community, the record may be signed by any person authorized by the governing board of the owners&rsquo; association; and&nbsp;</span></p> <p><span class="cls0">4. An agreement by a person to subordinate a prior interest to an environmental covenant affects the priority of that person&rsquo;s interest but does not by itself impose any affirmative obligation on the person with respect to the environmental covenant.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 3, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.14. Contents of environmental covenant.&nbsp;</span></p> <p><span class="cls0">CONTENTS OF ENVIRONMENTAL COVENANT.&nbsp;</span></p> <p><span class="cls0">A. An environmental covenant must:&nbsp;</span></p> <p><span class="cls0">1. State that the instrument is an environmental covenant executed pursuant to the Uniform Environmental Covenants Act;&nbsp;</span></p> <p><span class="cls0">2. Contain a legally sufficient description of the real property subject to the covenant;&nbsp;</span></p> <p><span class="cls0">3. Describe the activity and use limitations on the real property;&nbsp;</span></p> <p><span class="cls0">4. Identify every holder;&nbsp;</span></p> <p><span class="cls0">5. Be signed by the agency, every holder, and every owner of the fee simple of the real property subject to the covenant; and&nbsp;</span></p> <p><span class="cls0">6. Identify the name and location of any administrative record for the environmental response project reflected in the environmental covenant.&nbsp;</span></p> <p><span class="cls0">B. In addition to the information required by subsection A of this section, an environmental covenant may contain other information, restrictions, and requirements agreed to by the persons who signed it, including any:&nbsp;</span></p> <p><span class="cls0">1. Requirements for notice following transfer of a specified interest in, or concerning proposed changes in use of, applications for building permits for, or proposals for any site work affecting the contamination on, the property subject to the covenant;&nbsp;</span></p> <p><span class="cls0">2. Requirements for periodic reporting describing compliance with the covenant;&nbsp;</span></p> <p><span class="cls0">3. Rights of access to the property granted in connection with implementation or enforcement of the covenant;&nbsp;</span></p> <p><span class="cls0">4. Brief narrative description of the contamination and remedy, including the contaminants of concern, the pathways of exposure, limits on exposure, and the location and extent of the contamination;&nbsp;</span></p> <p><span class="cls0">5. Limitation on amendment or termination of the covenant in addition to those contained in Sections 9 and 10 of this act; and&nbsp;</span></p> <p><span class="cls0">6. Rights of the holder in addition to its right to enforce the covenant pursuant to Section 11 of this act.&nbsp;</span></p> <p><span class="cls0">C. In addition to other conditions for its approval of an environmental covenant, the agency may require those persons specified by the agency who have interests in the real property to sign the covenant.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 4, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.15. Validity - Effective on other instruments.&nbsp;</span></p> <p><span class="cls0">VALIDITY; EFFECT ON OTHER INSTRUMENTS.&nbsp;</span></p> <p><span class="cls0">A. An environmental covenant that complies with the Uniform Environmental Covenants Act runs with the land.&nbsp;</span></p> <p><span class="cls0">B. An environmental covenant that is otherwise effective is valid and enforceable even if:&nbsp;</span></p> <p><span class="cls0">1. It is not appurtenant to an interest in real property;&nbsp;</span></p> <p><span class="cls0">2. It can be or has been assigned to a person other than the original holder;&nbsp;</span></p> <p><span class="cls0">3. It is not of a character that has been recognized traditionally at common law;&nbsp;</span></p> <p><span class="cls0">4. It imposes a negative burden;&nbsp;</span></p> <p><span class="cls0">5. It imposes an affirmative obligation on a person having an interest in real property or on the holder;&nbsp;</span></p> <p><span class="cls0">6. The benefit or burden does not touch or concern real property;&nbsp;</span></p> <p><span class="cls0">7. There is no privity of estate or contract;&nbsp;</span></p> <p><span class="cls0">8. The holder dies, ceases to exist, resigns, or is replaced; or&nbsp;</span></p> <p><span class="cls0">9. The owner of an interest subject to the environmental covenant and the holder are the same person.&nbsp;</span></p> <p><span class="cls0">C. An instrument that creates restrictions or obligations with respect to real property that would qualify as activity and use limitations except for the fact that the instrument was recorded before January 1, 2007, is not invalid or unenforceable because of any of the limitations on enforcement of interests described in subsection B of this section or because it was identified as an easement, servitude, deed restriction, or other interest. The Uniform Environmental Covenants Act does not apply in any other respect to such an instrument.&nbsp;</span></p> <p><span class="cls0">D. The Uniform Environmental Covenants Act does not invalidate or render unenforceable any interest, whether designated as an environmental covenant or other interest, that is otherwise enforceable under the law of this state.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 5, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.16. Relationship to other land-use law.&nbsp;</span></p> <p><span class="cls0">RELATIONSHIP TO OTHER LAND-USE LAW.&nbsp;</span></p> <p><span class="cls0">The Uniform Environmental Covenants Act does not authorize a use of real property that is otherwise prohibited by zoning, by law other than the Uniform Environmental Covenants Act regulating use of real property, or by a recorded instrument that has priority over the environmental covenant. An environmental covenant may prohibit or restrict uses of real property which are authorized by zoning or by law other than the Uniform Environmental Covenants Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 6, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.17. Notice.&nbsp;</span></p> <p><span class="cls0">NOTICE.&nbsp;</span></p> <p><span class="cls0">A. A copy of an environmental covenant shall be provided by the persons and in the manner required by the agency to:&nbsp;</span></p> <p><span class="cls0">1. Each person that signed the covenant;&nbsp;</span></p> <p><span class="cls0">2. Each person holding a recorded interest in the real property subject to the covenant;&nbsp;</span></p> <p><span class="cls0">3. Each person in possession of the real property subject to the covenant;&nbsp;</span></p> <p><span class="cls0">4. Each municipality or other unit of local government in which real property subject to the covenant is located; and&nbsp;</span></p> <p><span class="cls0">5. Any other person the agency requires.&nbsp;</span></p> <p><span class="cls0">B. The validity of a covenant is not affected by failure to provide a copy of the covenant as required under this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 7, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.18. Recording.&nbsp;</span></p> <p><span class="cls0">RECORDING.&nbsp;</span></p> <p><span class="cls0">A. An environmental covenant and any amendment or termination of the covenant must be recorded in every county in which any portion of the real property subject to the covenant is located. For purposes of indexing, a holder shall be treated as a grantee.&nbsp;</span></p> <p><span class="cls0">B. Except as otherwise provided in subsection C of Section 9 of this act, an environmental covenant is subject to the laws of this state governing recording and priority of interests in real property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 8, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.19. Duration - Amendment by court action.&nbsp;</span></p> <p><span class="cls0">DURATION; AMENDMENT BY COURT ACTION.&nbsp;</span></p> <p><span class="cls0">A. An environmental covenant is perpetual unless it is:&nbsp;</span></p> <p><span class="cls0">1. By its terms limited to a specific duration or terminated by the occurrence of a specific event;&nbsp;</span></p> <p><span class="cls0">2. Terminated by consent pursuant to Section 10 of this act;&nbsp;</span></p> <p><span class="cls0">3. Terminated pursuant to subsection B of this section;&nbsp;</span></p> <p><span class="cls0">4. Terminated by foreclosure of an interest that has priority over the environmental covenant; or&nbsp;</span></p> <p><span class="cls0">5. Terminated or modified in an eminent domain proceeding, but only if:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;the agency that signed the covenant is a party to the proceeding,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;all persons identified in subsections A and B of Section 10 of this act are given notice of the pendency of the proceeding, and&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;the court determines, after hearing, that the termination or modification will not adversely affect human health or the environment.&nbsp;</span></p> <p><span class="cls0">B. If the agency that signed an environmental covenant has determined that the intended benefits of the covenant can no longer be realized, a court, under the doctrine of changed circumstances, in an action in which all persons identified in subsections A and B of Section 10 of this act have been given notice, may terminate the covenant or reduce its burden on the real property subject to the covenant. The agency&rsquo;s determination or its failure to make a determination upon request is subject to review pursuant to the Administrative Procedures Act.&nbsp;</span></p> <p><span class="cls0">C. Except as otherwise provided in subsections A and B of this section, an environmental covenant may not be extinguished, limited, or impaired through issuance of a tax deed, foreclosure of a tax lien, or application of the doctrine of adverse possession, prescription, abandonment, waiver, lack of enforcement, or acquiescence, or a similar doctrine.&nbsp;</span></p> <p><span class="cls0">D. An environmental covenant may not be extinguished, limited, or impaired by application of the provisions of Sections 71 through 85 of Title 16 of the Oklahoma Statutes or the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 9, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.20. Amendment or termination by consent.&nbsp;</span></p> <p><span class="cls0">AMENDMENT OR TERMINATION BY CONSENT.&nbsp;</span></p> <p><span class="cls0">A. An environmental covenant may be amended or terminated by consent only if the amendment or termination is signed by:&nbsp;</span></p> <p><span class="cls0">1. The agency;&nbsp;</span></p> <p><span class="cls0">2. The current owner of the fee simple of the real property subject to the covenant;&nbsp;</span></p> <p><span class="cls0">3. Each person that originally signed the covenant, unless the person waived in a signed record the right to consent or a court finds that the person no longer exists or cannot be located or identified with the exercise of reasonable diligence; and&nbsp;</span></p> <p><span class="cls0">4. Except as otherwise provided in paragraph 2 of subsection D of this section, the holder.&nbsp;</span></p> <p><span class="cls0">B. If an interest in real property is subject to an environmental covenant, the interest is not affected by an amendment of the covenant unless the current owner of the interest consents to the amendment or has waived in a signed record the right to consent to amendments.&nbsp;</span></p> <p><span class="cls0">C. Except for an assignment undertaken pursuant to a governmental reorganization, assignment of an environmental covenant to a new holder is an amendment.&nbsp;</span></p> <p><span class="cls0">D. Except as otherwise provided in an environmental covenant:&nbsp;</span></p> <p><span class="cls0">1. A holder may not assign its interest without consent of the other parties; and&nbsp;</span></p> <p><span class="cls0">2. A holder may be removed and replaced by agreement of the other parties specified in subsection A of this section.&nbsp;</span></p> <p><span class="cls0">E. A court of competent jurisdiction may fill a vacancy in the position of holder.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 10, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.21. Enforcement of environmental covenant.&nbsp;</span></p> <p><span class="cls0">ENFORCEMENT OF ENVIRONMENTAL COVENANT.&nbsp;</span></p> <p><span class="cls0">A. A civil action for injunctive or other equitable relief for violation of an environmental covenant may be maintained by:&nbsp;</span></p> <p><span class="cls0">1. A party to the covenant;&nbsp;</span></p> <p><span class="cls0">2. The agency or, if it is not the agency, the Department of Environmental Quality;&nbsp;</span></p> <p><span class="cls0">3. Any person to whom the covenant expressly grants power to enforce;&nbsp;</span></p> <p><span class="cls0">4. A person whose interest in the real property or whose collateral or liability may be affected by the alleged violation of the covenant; or&nbsp;</span></p> <p><span class="cls0">5. A municipality or other unit of local government in which the real property subject to the covenant is located.&nbsp;</span></p> <p><span class="cls0">B. The Uniform Environmental Covenants Act does not limit the regulatory authority of the Department of Environmental Quality or other agency under law other than the Uniform Environmental Covenants Act with respect to an environmental response project including the authority of the Department of Environmental Quality provided in Sections 2-7-123 and 2-15-107 of Title 27A of the Oklahoma Statutes.&nbsp;</span></p> <p><span class="cls0">C. A person is not responsible for or subject to liability for environmental remediation solely because it has the right to enforce an environmental covenant.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 11, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.22. Uniformity of application and construction.&nbsp;</span></p> <p><span class="cls0">UNIFORMITY OF APPLICATION AND CONSTRUCTION.&nbsp;</span></p> <p><span class="cls0">In applying and construing the Uniform Environmental Covenants Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 12, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-49.23. Relation to Electronic Signatures in Global and National Commerce Act.&nbsp;</span></p> <p><span class="cls0">RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT.&nbsp;</span></p> <p><span class="cls0">The Uniform Environmental Covenants Act modifies, limits, or supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C., Section 7001 et seq.) but does not modify, limit, or supersede Section 101 of that act (15 U.S.C., Section 7001(a)) or authorize electronic delivery of any of the notices described in Section 103 of that act (15 U.S.C., Section 7003(b)).&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 182, &sect; 13, eff. Jan. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;6050. Easements not attached to land.&nbsp;</span></p> <p><span class="cls0">The following land burdens or servitudes upon land may be granted and held, though not attached to land:&nbsp;</span></p> <p><span class="cls0">1. The right to pasture, and of fishing and taking game.&nbsp;</span></p> <p><span class="cls0">2. The right of seat in church.&nbsp;</span></p> <p><span class="cls0">3. The right of burial.&nbsp;</span></p> <p><span class="cls0">4. The right of taking rents and tolls.&nbsp;</span></p> <p><span class="cls0">5. The rightofway.&nbsp;</span></p> <p><span class="cls0">6. The right of taking water, wood, minerals, or other things. &nbsp;</span></p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6624. &nbsp;</span></p> <p><span class="cls0">&sect;6051. Dominant and servient tenements.&nbsp;</span></p> <p><span class="cls0">The land to which an easement is attached is called the dominant tenement; the land upon which a burden or servitude is laid is called the servient tenement. R.L. 1910 Sec. 6625.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6625. &nbsp;</span></p> <p><span class="cls0">&sect;6052. Servitude, who may create.&nbsp;</span></p> <p><span class="cls0">A servitude can be created only by one who has a vested estate in the servient tenement. R.L. 1910 Sec. 6626.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6626. &nbsp;</span></p> <p><span class="cls0">&sect;60-53. Servitude, who cannot hold.&nbsp;</span></p> <p><span class="cls0">A servitude thereon cannot be held by the owner of the servient tenement.&nbsp;</span></p> <p><span class="cls0">R.L. 1910, &sect; 6627.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;6054. Extent of servitude.&nbsp;</span></p> <p><span class="cls0">The extent of a servitude is determined by the terms of the grant, or the nature of the enjoyment by which it was acquired. R.L. 1910 Sec. 6628.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6628. &nbsp;</span></p> <p><span class="cls0">&sect;6055. Partition of servitude.&nbsp;</span></p> <p><span class="cls0">In case of partition of the dominant tenement, the burden must be apportioned according to the division of the dominant tenement, but not in such a way as to increase the burden upon the servient tenement. R.L. 1910 Sec. 6629.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6629. &nbsp;</span></p> <p><span class="cls0">&sect;6056. Rights of owner of future estate.&nbsp;</span></p> <p><span class="cls0">The owner of a future estate in a dominant tenement, may use easements attached thereto, for the purpose of viewing waste, demanding rent, or removing an obstruction to the enjoyment of such easements, although such tenement if occupied by a tenant. R.L. 1910 Sec. 6630.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6630. &nbsp;</span></p> <p><span class="cls0">&sect;6057. Action to enforce easement.&nbsp;</span></p> <p><span class="cls0">The owner of any estate in a dominant tenement, or the occupant of such tenement, may maintain an action for the enforcement of an easement attached thereto. R.L. 1910 Sec. 6631.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6631. &nbsp;</span></p> <p><span class="cls0">&sect;6058. Action for possession of servient tenement.&nbsp;</span></p> <p><span class="cls0">The owner in fee of a servient tenement may maintain an action for the possession of the land, against any one unlawfully possessed thereof, though a servitude exists thereon in favor of the public. R.L. 1910 Sec. 6632.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6632. &nbsp;</span></p> <p><span class="cls0">&sect;6059. Servitude extinguished, how.&nbsp;</span></p> <p><span class="cls0">A servitude is extinguished:&nbsp;</span></p> <p><span class="cls0">1. By the vesting of the right to the servitude and the right to the servient tenement in the same person.&nbsp;</span></p> <p><span class="cls0">2. By the destruction of the servient tenement.&nbsp;</span></p> <p><span class="cls0">3. By the performance of any act upon either tenement, by the owner of the servitude, or with his assent which is incompatible with its nature or exercise; or,&nbsp;</span></p> <p><span class="cls0">4. When the servitude was acquired by enjoyment, by disuse thereof by the owner of the servitude for the period prescribed for acquiring title by enjoyment. R.L. 1910 Sec. 6633.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6633. &nbsp;</span></p> <p><span class="cls0">&sect;6059.1. Abstracting easement with mortgage or bond indenture Restrictions.&nbsp;</span></p> <p><span class="cls0">If a mortgage or bond indenture describes or makes reference to a recorded easement, the abstractor shall identify the mortgage or bond indenture in the abstract of title, state that the land described in the abstract of title is subject to the mortgage or bond indenture, and give the date of the mortgage or bond indenture, the book and page of its recording and the book and page of the recording of the easement described in said mortgage. The abstractor shall not otherwise summarize, abstract or copy the mortgage or bond indenture in full unless authorized in writing by the owner, purchaser or lessee of the land.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1982, c. 109, &sect; 1, emerg. eff. April 6, 1982. &nbsp;</span></p> <p><span class="cls0">&sect;6059.2. Abstracting or copying mortgage or bond indenture without authorization Damages.&nbsp;</span></p> <p><span class="cls0">If any abstractor fails to obtain written authorization by the owner, purchaser or lessee of the land and subsequently summarizes, abstracts or copies the mortgage or bond indenture in full, he shall be liable for damages.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1982, c. 109, &sect; 2, emerg. eff. April 6, 1982. &nbsp;</span></p> <p><span class="cls0">&sect;6059.3. Application of act.&nbsp;</span></p> <p><span class="cls0">The provisions of this act shall be prospective in nature and shall not apply to any documents recorded prior to the effective date of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1982, c. 109, &sect; 3, emerg. eff. April 6, 1982. &nbsp;</span></p> <p><span class="cls0">&sect;6060. Ownership of water Use of running water.&nbsp;</span></p> <p><span class="cls0">A. The owner of the land owns water standing thereon, or flowing over or under its surface but not forming a definite stream. The use of groundwater shall be governed by the Oklahoma Groundwater Law. Water running in a definite stream, formed by nature over or under the surface, may be used by the owner of the land riparian to the stream for domestic uses as defined in Section 105.1 of Title 82 of the Oklahoma Statutes, but he may not prevent the natural flow of the stream, or of the natural spring from which it commences its definite course, nor pursue nor pollute the same, as such water then becomes public water and is subject to appropriation for the benefit and welfare of the people of the state, as provided by law; Provided however, that nothing contained herein shall prevent the owner of land from damming up or otherwise using the bed of a stream on his land for the collection or storage of waters in an amount not to exceed that which he owns, by virtue of the first sentence of this section so long as he provides for the continued natural flow of the stream in an amount equal to that which entered his land less the uses allowed for domestic uses and for valid appropriations made pursuant to Title 82 of the Oklahoma Statutes; provided further, that nothing contained herein shall be construed to limit the powers of the Oklahoma Water Resources Board to grant permission to build or alter structures on a stream pursuant to Title 82 of the Oklahoma Statutes to provide for the storage of additional water the use of which the landowner has or acquires by virtue of this act.&nbsp;</span></p> <p><span class="cls0">B. All rights to the use of water in a definite stream in this state are governed by this section and other laws in Title 82 of the Oklahoma Statutes, which laws are exclusive and supersede the common law.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1988, c. 203, &sect; 1, emerg. eff. June 10, 1988. &nbsp;</span></p> <p><span class="cls0">&sect;6061. Life lease rent.&nbsp;</span></p> <p><span class="cls0">Rent due upon a lease for life may be recovered in the same manner as upon a lease for years. R.L. 1910 Sec. 6635.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6635. &nbsp;</span></p> <p><span class="cls0">&sect;6062. Life lease rent, recovery after death.&nbsp;</span></p> <p><span class="cls0">Rent dependent on the life of a person may be recovered after as well as before his death. R.L. 1910 Sec. 6636.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6636. &nbsp;</span></p> <p><span class="cls0">&sect;6063. Action for injury to inheritance.&nbsp;</span></p> <p><span class="cls0">A person having an estate in fee, in remainder, or reversion, may maintain an action for any injury done to the inheritance, notwithstanding an intervening estate for life or years, and although, after its commission, his estate is transferred, and he has no interest in the property at the commencement of the action. R.L. 1910 Sec. 6637.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6637. &nbsp;</span></p> <p><span class="cls0">&sect;6064. Fee title covers what.&nbsp;</span></p> <p><span class="cls0">The owner of land in fee has the right to the surface and to everything permanently situated beneath or above it. R.L. 1910 Sec. 6638.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6638. &nbsp;</span></p> <p><span class="cls0">&sect;6066. Lateral and subjacent support, right to.&nbsp;</span></p> <p><span class="cls0">Each coterminous owner is entitled to the lateral and subjacent support which his land receives from the adjoining land, subject to the right of the owner of the adjoining land to make proper and usual excavations on the same for purposes of construction, on using ordinary care and skill, and taking reasonable precautions to sustain the land of the other, and giving previous reasonable notice to the other of his intention to make such excavations. R.L. 1910 Sec. 6641.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6641. &nbsp;</span></p> <p><span class="cls0">&sect;6067. Trees on land, ownership of.&nbsp;</span></p> <p><span class="cls0">Trees whose trunks stand wholly upon the land of one owner, belong exclusively to him, although their roots grow into the land of another. R.L. 1910 Sec. 6642.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6642. &nbsp;</span></p> <p><span class="cls0">&sect;6068. Trees on line, ownership of.&nbsp;</span></p> <p><span class="cls0">Trees whose trunks stand partly on the land of two or more coterminous owners belong to them in common. R.L. 1910 Sec. 6643.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6643. &nbsp;</span></p> <p><span class="cls0">&sect;6069. Duties of life tenant.&nbsp;</span></p> <p><span class="cls0">The owner of a life estate must keep the buildings and fences in repair from ordinary waste, and must pay the taxes and other annual charges, and a just proportion of extraordinary assessments benefiting the whole inheritance. R.L. 1910 Sec. 6644.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6644. &nbsp;</span></p> <p><span class="cls0">&sect;6070. Boundaries and fences.&nbsp;</span></p> <p><span class="cls0">Coterminous owners are mutually bound equally to maintain:&nbsp;</span></p> <p><span class="cls0">1. The boundaries and monuments between them.&nbsp;</span></p> <p><span class="cls0">2. The fences between them, unless one of them chooses to let his land lie open as a public common, in which case, if he afterwards encloses it, he must refund to the other a just proportion of the value, at that time, of any division fence made by the latter. R.L. 1910 Sec. 6645.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6645. &nbsp;</span></p> <p><span class="cls0">&sect;60-71. Appointment of trustee where there are contingent remainders.&nbsp;</span></p> <p><span class="cls0">In any case where, by will or deed or other instrument, title to real estate is in a tenant for life or other person having the right to the use thereof and income therefrom, with the remainder interest left to one or more contingent remaindermen, so that it is impossible to determine until the death of the life tenant or the future happening of some other determining event, what interest, if any, the various contingent remaindermen will take; the district court, upon the application of the life tenant, shall have jurisdiction and authority to appoint a trustee under proper bond, over said real estate, for the purpose of leasing the same for oil and gas developing purposes.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1939, p. 355, &sect; 1, emerg. eff. May 10, 1939.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-72. Trustee may make oil and gas leases and other mining leases.&nbsp;</span></p> <p><span class="cls0">Said trustee shall have the power and authority to make valid oil and gas leases and other mining leases, upon said lands, for a term not to exceed ten (10) years, and as long thereafter as oil, gas or other minerals may be produced in paying quantities, said leases to be executed and approved under the same procedure now followed in leasing lands for oil and gas purposes in guardianships and estates, the bonus and rentals therefrom to be paid to the life tenant or other person entitled thereto.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1939, p. 355, &sect; 2, emerg. eff. May 10, 1939.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-73. Trustee's authority to invest income from royalties - Payments to life tenant or other person.&nbsp;</span></p> <p><span class="cls0">Under proper court order the trustee shall be authorized to invest income from royalties pursuant to the provisions of the Oklahoma Uniform Prudent Investor Act, unless otherwise provided by law, which investments shall remain intact until the ultimate taker is determined and shall then be paid over to the ultimate taker and the trust closed. Income from investments shall be paid to the life tenant or other person entitled thereto.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1939, p. 355, &sect; 3, emerg. eff. May 10, 1939. Amended by Laws 1995, c. 351, &sect; 19, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-74. Joint tenancy and tenancy by entirety.&nbsp;</span></p> <p><span class="cls0">A joint interest is one owned by several persons in either real or personal property in equal shares, being a joint title created by a single instrument, will or transfer when expressly declared in the instrument, will or transfer to be a joint tenancy, or as between husband and wife a tenancy by entirety or joint tenancy as the grantor may elect, or when granting or devising to executors or trustees as joint tenants. A tenancy by entirety can only be created between husband and wife.&nbsp;</span></p> <p><span class="cls0">Such joint tenancy or tenancy by entirety may be created by transfer to persons as joint tenants or tenants by entirety from an owner or a joint owner to himself and one or more persons, or from tenants in common to themselves, or by coparceners in voluntary partition, and such estates may be created by or for persons who have elected to become bound under any community property act now in existence or which may hereafter be enacted. An adjudication of incompetency shall not operate to terminate such an estate.&nbsp;</span></p> <p><span class="cls0">Where a deed, transfer or conveyance grants an estate in joint tenancy or tenancy by entirety in the granting clause thereof, the granting clause shall control over the habendum clause containing language inconsistent to the granting clause.&nbsp;</span></p> <p><span class="cls0">In the event of the death of a joint tenant or tenant by entirety, leaving estate subject to probate, a certified copy of letters testamentary or of administration shall constitute prima facie evidence of such death.&nbsp;</span></p> <p><span class="cls0">The provisions of this act shall apply to all estates in joint tenancy or tenancy by entirety in either real or personal property heretofore or hereafter created.&nbsp;</span></p> <p><span class="cls0">Nothing herein contained shall prevent execution, levy and sale of the interest of the judgment debtor in such estates and such sale shall constitute a severance.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1945, p. 213, &sect; 1, emerg. eff. May 7, 1945.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-74.1. Partial invalidity.&nbsp;</span></p> <p><span class="cls0">The provisions of this act shall be severable and if any section, subsection, sentence or clause of this act is for any reason held to be invalid such holding shall not affect the validity fo the remaining portions thereof.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1945, p. 213, &sect; 2, emerg. eff. May 7, 1945.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-75. Reformation of interests violating rule against perpetuities - Intent.&nbsp;</span></p> <p><span class="cls0">Any interest in real or personal property that would violate the rule against perpetuities shall be reformed, or construed within the limits of the rule, to give effect to the general intent of the creator of that interest whenever that general intent can be ascertained. This provision shall be liberally construed and applied to validate such interest to the fullest extent consistent with such ascertained intent.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1971, c. 139, &sect; 1, eff. Oct. 1, 1971.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-76. Construction in accordance with cy pres doctrine.&nbsp;</span></p> <p><span class="cls0">To effectuate the provisions hereof, all courts of this state are, within their otherwise jurisdictional limits, hereby granted the power to reform or construe interests in real or personal property, as provided in Section 1 hereof, in accordance with the doctrine of cy pres.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1971, c. 139, &sect; 2, eff. Oct. 1, 1971.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-77. Reformation of offending instruments.&nbsp;</span></p> <p><span class="cls0">If an instrument violates the rule against perpetuities, but can be reformed or construed in accordance with the provisions of this act, is shall not be declared totally invalid. Rather, the provisions thereof that do not offend the rule shall be enforced, and only the provisions thereof that do violate, or might violate, the rule shall be subject to reformation or construction under the doctrine of cy pres within the terms of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1971, c. 139, &sect; 3, eff. Oct. 1, 1971.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-78. Applicability to certain inter vivos instruments, wills and appointments.&nbsp;</span></p> <p><span class="cls0">This act shall apply to inter vivos instruments and wills taking effect after the act becomes effective, and to appointments made after the act becomes effective, including appointments by inter vivos instruments or wills under powers created before the act becomes effective. The act shall apply to both legal and equitable interests.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1971, c. 139, &sect; 4, eff. Oct. 1, 1971.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60121. Alien may not hold land Ownership of personalty.&nbsp;</span></p> <p><span class="cls0">No alien or any person who is not a citizen of the United States shall acquire title to or own land in the State of Oklahoma, except as hereinafter provided, but he shall have and enjoy in the State of Oklahoma such rights as to personal property as are, or shall be accorded a citizen of the United States under the laws of the nation to which such alien belongs, or by the treaties of such nation with the United States, except as the same may be affected by the provisions of this act or the Constitution of this state.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6646. &nbsp;</span></p> <p><span class="cls0">&sect;60122. Exceptions.&nbsp;</span></p> <p><span class="cls0">This article shall not apply to lands now owned in this state by aliens so long as they are held by the present owners, nor to any alien who is or shall take up bona fide residence in this state: and any alien who is or shall become a bona fide resident of the State of Oklahoma shall have the right to acquire and hold lands in this state upon the same terms as citizens of the State of Oklahoma during the continuance of such bona fide residence of such alien in this state: Provided, that if any such resident alien shall cease to be a bona fide inhabitant of this state, such alien shall have five (5) years from the time he ceased to be such bona fide resident in which to alienate such lands.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6647. &nbsp;</span></p> <p><span class="cls0">&sect;60123. Fiveyear limitation in certain cases.&nbsp;</span></p> <p><span class="cls0">All nonresident aliens who may hereinafter acquire real estate in Oklahoma by devise, descent or by purchase, where such purchase is made under any legal proceeding foreclosing liens in favor of such alien, may hold the same for five (5) years from the date of so acquiring such title.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6648. &nbsp;</span></p> <p><span class="cls0">&sect;60124. Escheat to state, unless conveyance made.&nbsp;</span></p> <p><span class="cls0">Any alien who shall hereafter hold lands in the State of Oklahoma in contravention of the provisions of this article, may nevertheless convey the fee simple title thereof at any time before the institution of escheat proceedings as hereinafter provided: Provided, however, that if any such conveyance shall be made by such alien either to an alien or a citizen of the United States in trust, and for the purpose and with the intention of evading the provisions of this article, or the provisions of the Constitution of this state, such conveyance shall be null and void, and any such lands so conveyed shall be forfeited and escheated to the state absolutely.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6649. &nbsp;</span></p> <p><span class="cls0">&sect;60125. Procedure to enforce escheat.&nbsp;</span></p> <p><span class="cls0">It shall be the duty of the Attorney General or the district attorney of the county where the land is situate, when he shall be informed or have reason to believe that any lands in the state are being held contrary to the provisions of this act, or the provisions of the Constitution of this state, to institute suit in behalf of the State of Oklahoma in the district court of the county in which said lands are situate, praying for the escheat of the same in behalf of the state, and proceed therein as in cases provided by law for escheats of lands or property where such property has no known owner: Provided, that before any such suit is instituted, the Attorney General, or district attorney aforesaid, as the case may be, shall give thirty (30) days' notice by registered letter of his intention to sue, directed to the owner of the lands, at his lastknown post office address or to the persons who last rendered the same for taxes, or to any known agents of the owner; proof of having mailed such registered letter shall be deemed and held prima facie evidence of the giving of such notice.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6650. &nbsp;</span></p> <p><span class="cls0">&sect;60126. Procedure Minors and incompetents as defendants.&nbsp;</span></p> <p><span class="cls0">In case the lands, at the time escheat proceedings are about to be commenced, are owned by minors, or by persons of unsound mind, such notice shall be addressed to the guardian of the said minors, or persons of unsound mind, and if there is no such guardian, the Attorney General of the state, or district attorney shall make application in the name of the state to the court and procure the appointment of a guardian ad litem to represent such minor, or person of unsound mind in such proceedings; thereafter the district attorney shall direct the clerk of such court to ascertain the residence or postoffice address of the next of kin of such minor, or person of unsound mind, and to transmit to such next of kin a copy of the petition or application to escheat such lands, and such minor or person of unsound mind shall have ninety (90) days after the mailing of such notice to appear and defend the action.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6651. &nbsp;</span></p> <p><span class="cls0">&sect;60127. Trial and judgment.&nbsp;</span></p> <p><span class="cls0">If it shall be determined upon the trial of any such escheat proceedings that lands are held contrary to the provisions of this article, or the Constitution of this state, the court trying said cause shall render judgment condemning such lands, and order the same to be sold under the order of court, at such time, terms, and conditions as to the court may seem best; the proceeds of such sale after deducting the cost of the proceeding, shall be paid to the clerk of the court rendering the judgment where the same shall remain for one (1) year from the date of such payment, subject to the order of the alien owner of such lands, his heirs and legal representatives, and if not claimed within the period of one (1) year, such clerk shall pay the same into the treasury of the state for the benefit of the available school fund of the State: Provided, that when any money shall have been paid to the State Treasurer as hereinabove provided, an alien or his heirs may procure the same to be returned by applying for and procuring an order from the court condemning the property showing that such judgment escheating said property was procured by fraud, or mistake, or that there was material irregularity in the proceedings; this application, however, must be made within two (2) years from the date such monies were turned over into the State Treasury; and in no event shall the state be liable or called on to refund any further sum than the actual cash transmitted and delivered to such Treasurer: Provided, further, that the defendant in such escheat proceedings may at any time before final judgment suggest and prove to the court, that he has conformed to, or complied with the law, under and by which they will be entitled to hold such estate; which, it being admitted or proved, said suit shall be dismissed on payment by defendant of the costs and reasonable attorney's fees, to be fixed by the court.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6652. &nbsp;</span></p> <p><span class="cls0">&sect;60131. Trusts of real property.&nbsp;</span></p> <p><span class="cls0">Uses and trusts, in relation to real property, are those only which are specified in this article.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6653. &nbsp;</span></p> <p><span class="cls0">&sect;60132. Former uses confirmed.&nbsp;</span></p> <p><span class="cls0">Every estate which is now held as a use, executed under any former statute of this state, is confirmed as a legal estate.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6654. &nbsp;</span></p> <p><span class="cls0">&sect;60136. Requisites of a trust.&nbsp;</span></p> <p><span class="cls0">No trust in relation to real property is valid, unless created or declared:&nbsp;</span></p> <p><span class="cls0">1. By a written instrument, subscribed by the grantor or by his agent thereto authorized by writing.&nbsp;</span></p> <p><span class="cls0">2. By the instrument under which the trustee claims the estate affected; or,&nbsp;</span></p> <p><span class="cls0">3. By operation of law.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6659. &nbsp;</span></p> <p><span class="cls0">&sect;60137. Trust presumed, when.&nbsp;</span></p> <p><span class="cls0">When a transfer of real property is made to one person, and the consideration therefor is paid by or for another, a trust is presumed to result in favor of the person by or for whom such payment is made.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6660. &nbsp;</span></p> <p><span class="cls0">&sect;60140. Surplus liable to creditors.&nbsp;</span></p> <p><span class="cls0">Where a trust is created to receive the rents and profits of real property, and no valid direction for accumulation is given, the surplus of such rents and profits, beyond the sum that may be necessary for the education and support of the person for whose benefit the trust is created, is liable to the claims of the creditors of such person, in the same manner as personal property which cannot be reached by execution.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6664. &nbsp;</span></p> <p><span class="cls0">&sect;60143. Realty passes subject to power.&nbsp;</span></p> <p><span class="cls0">In every case where a trust is valid as a power in trust, the real property to which the trust relates, remains in or passes by succession to the persons otherwise entitled, subject to the execution of the trust as a power in trust.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6667. &nbsp;</span></p> <p><span class="cls0">&sect;60156. Deeds and conveyances Works not giving notice of existence of trust Recorded written evidence.&nbsp;</span></p> <p><span class="cls0">A. The appearance of the words "trustee" or "as trustee" or "agent" following the names of the grantee in any deed of conveyance of land or other property, or an interest therein, heretofore or hereafter executed, without other language showing a trust, shall not be deemed to give notice to or put on inquiry any person dealing with said property that a trust exists, or that there are other beneficiaries of said conveyance except the grantee named therein, and such conveyance shall vest the title to such property in such grantee and a conveyance by such grantee, whether followed by the words "trustee" or "as trustee" or "agent" or not, shall vest title in his grantee free from any claims of all persons or corporations.&nbsp;</span></p> <p><span class="cls0">B. Subsection A of this section shall not apply if other written evidence is recorded, whether before or after the grantor's death, which establishes that an express trust does exist with respect to property which the grantor has conveyed by deed to his grantee followed by the words "trustee" or "as trustee" provided such other written evidence is recorded prior to conveyance of such property by such grantee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1988, c. 319, &sect; 4, eff. Nov. 1, 1988. &nbsp;</span></p> <p><span class="cls0">&sect;60157. Mortgages Words not giving notice of existence of trust.&nbsp;</span></p> <p><span class="cls0">The appearance of the words "trustee" or "as trustee" or "agent" following the name of the mortgagee in any mortgage on real estate or personal property heretofore or hereafter executed, without other language showing a trust, shall not be deemed to give notice to or put on inquiry any person dealing with said property or mortgage that a trust exists, or that there are other beneficiaries of said mortgage except the mortgagee named therein, and such mortgage shall vest full rights and ownership to such mortgage and lien created thereby in such mortgagee, and an assignment or release of said mortgage by such mortgagee, whether followed by the words "trustee" or "as trustee" or "agent" or not, shall vest full and complete title and ownership in said mortgage in the assignee, or shall constitute a full and complete release of said mortgage, free from any claims of all persons or corporations. This act shall not apply to any suits now pending.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 65, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60-161. Property in which trustee may invest - Judgment and care required.&nbsp;</span></p> <p><span class="cls0">Unless otherwise authorized, directed or restricted by order of court or by the will, trust agreement, or other document which is the source of the trust, the trustee may invest trust funds in any property, real, personal or mixed, in which an individual may invest the individual's own funds. In making investments, the trustee shall comply with the provisions of the Oklahoma Uniform Prudent Investor Act. The provisions of this section shall not be construed to authorize a trustee to buy or sell property and investments from or to the trustee personally or to commingle trust funds with the individual funds of the trustee.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1949, p. 412, &sect; 1. Amended by Laws 1995, c. 351, &sect; 20, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-162. Repealed by Laws 1995, c. 351, &sect; 27, eff. Nov. 1, 1995.&nbsp;</span></p> <p><span class="cls0">&sect;60163. Retention of property originally received.&nbsp;</span></p> <p><span class="cls0">A trustee may retain in trust any property originally received into the trust and any substitution therefor without liability for such retention.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1949, p. 413, &sect; 3. &nbsp;</span></p> <p><span class="cls0">&sect;60-164. Trust as furtherance of public function.&nbsp;</span></p> <p><span class="cls0">The uses and purposes of the said Oklahoma Ordinance Works Authority Trust are hereby declared to be in furtherance of a public function and purpose and vital to the public welfare of the people of Oklahoma, and all actions heretofore taken by said authority are hereby in all respects approved and ratified.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1961, p. 730, &sect; 1.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60165. Acquisition of property.&nbsp;</span></p> <p><span class="cls0">It is hereby declared to be the intention and desire of the State of Oklahoma that the Oklahoma Ordinance Works Authority, as an agency of the State of Oklahoma, continue its negotiations with the General Services Administration and complete the acquisition of said property for the use and benefit of the State of Oklahoma and its people.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60166. Appropriation.&nbsp;</span></p> <p><span class="cls0">It is hereby directed that the State Contingency and Emergency Fund Board allocate and pay over to the Oklahoma Ordinance Works Authority Trust the sum of One Thousand Dollars ($1,000.00) in aid of such acquisition, to be expended by said Oklahoma Ordinance Works Authority Trust for expenses necessarily incurred in the acquisition and operation of said property.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1961, p. 730, &sect; 3. &nbsp;</span></p> <p><span class="cls0">&sect;60-171. Trusts authorized - Powers of trustee.&nbsp;</span></p> <p><span class="cls0">Express trusts may be created in real or personal property or both, with power in the trustee, or a majority of the trustees, if there be more than one, to receive title to, hold, buy, sell, exchange, transfer and convey real and personal property for the use of such trust; to take, receive, invest or disburse the receipts, earnings, rents, profits or returns from the trust estate; to carry on and conduct any lawful business designated in the instrument of trust, generally to do any lawful act in relation to the trust property which any individual owning the same absolutely might do and to comply with the provisions of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1919, c. 16, p. 30, &sect; 1. Amended by Laws 1988, c. 117, &sect; 1, eff. Nov. 1, 1988; Laws 1989, c. 223, &sect; 3, eff. Nov. 1, 1989; Laws 1995, c. 351, &sect; 21, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-172. Express trust, how created - Duration - Specification of duration - Extension of term.&nbsp;</span></p> <p><span class="cls0">No such express trust shall be valid unless created first, by a written instrument subscribed by the grantor or grantors duly acknowledged, as conveyances of real estate are acknowledged, and recorded in the office of the county clerk of each county wherein is situated any real estate conveyed to such trustee, as well as in the county where the principal property is located or business conducted; or, second, by a will duly executed, as required by the law of the state. Such express trusts shall be limited in the duration thereof either to a definite period of not to exceed twenty-one (21) years, or to the period of the life or lives of the beneficiary or beneficiaries thereof in being at the time of the creation of the trust. The instrument creating the trust shall specify the period of duration thereof within the limitations herein provided. When such express trust has originally been created for a definite term of years by a writing other than a will, the time of the existence of such express trust may be extended for a period of not exceeding twenty-one (21) years at any one time, by a written instrument subscribed by all beneficiaries of such express trust, duly acknowledged as are conveyances of real estate, and recorded in the office of the county clerk of the county where is located the principal office of said trust, and in each county where is situated any real estate owned by such express trust. Provided the provisions of this section shall be applicable and limited to business trusts and shall have no application to personal trusts.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1919, c. 16, p. 30, &sect; 2, emerg. eff. March 22, 1919. Amended by Laws 1947, p. 364, &sect; 1, emerg. eff. May 16, 1947; Laws 1949, p. 412, &sect; 1.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60173. Succession of trustees.&nbsp;</span></p> <p><span class="cls0">Instruments creating express trusts may provide for succession to any trustee, in case of the death, resignation, removal, or incapacity of such trustee. In case of any such succession, the title to the trust property shall at once vest in the succeeding trustee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1919, c. 16, p. 30, &sect; 3. &nbsp;</span></p> <p><span class="cls0">&sect;60174. Liability of trustees and beneficiaries.&nbsp;</span></p> <p><span class="cls0">Liability to third persons for any act, omission, or obligation of a trustee or trustees of an express trust when acting in such capacity, shall extend to the whole of the trust estate held by such trustee or trustees, or so much thereof as may be necessary to discharge such liability, but no personal liability shall attach to the trustee or the beneficiaries of such trust for any such act, omission or liability.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1919, c. 16, p. 30, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60174.1. Private foundations Governing instrument deemed to contain certain provisions Amendment without judicial proceedings.&nbsp;</span></p> <p><span class="cls0">A. Notwithstanding any provision of Oklahoma law or in the governing instrument to the contrary, except as provided in subsection C hereof, the governing instrument of each trust which is a private foundation as described in Section 509 of the Federal Internal Revenue Code of 1954, including each nonexempt charitable trust described in Section 4947(a)(1) of the Code which is treated as a private foundation, and the governing instrument of each nonexempt splitinterest trust as described in Section 4947(a)(2) of the Code, but only to the extent that Section 508(e) of the Code is applicable to such nonexempt splitinterest trust under Section 4947(a)(2) of the Code, shall be deemed to contain the following provisions: "The trust shall make distributions at such time and in such manner as not to subject the trust to tax under Section 4942 of the Federal Internal Revenue Code; the trust shall not engage in any act of selfdealing which would subject it to tax under Section 4941 of the Code; the trust shall not retain any excess business holdings which would subject it to tax under Section 4943 of the Code; the trust shall not make any investments which would subject it to tax under Section 4944 of the Code; and the trust shall not make any taxable expenditures which would subject it to tax under Section 4945 of the Code." With respect to any such trust created prior to January 1, 1970, this subsection A shall apply only for its taxable years beginning on or after January 1, 1972.&nbsp;</span></p> <p><span class="cls0">B. The trustee of any trust described in subsection A hereof, with the consent of the trustor, if then living and competent to give consent, may, without judicial proceedings, amend the governing instrument to expressly include the provisions required by Section 508(e) of the Code by executing a written amendment to the trust and filing a duplicate original of such amendment with the Secretary of State of the State of Oklahoma.&nbsp;</span></p> <p><span class="cls0">C. The trustee of any trust described in subsection A hereof, with the consent of the trustor, if then living and competent to give consent, may, without judicial proceedings, amend such trust to expressly exclude the application of subsection A by executing a written amendment to the trust and filing a duplicate original of such amendment with the Secretary of State of the State of Oklahoma, and, upon the filing of such amendment, subsection A shall not apply to such trust.&nbsp;</span></p> <p><span class="cls0">D. All references in this section to the "Code" are to the Federal Internal Revenue Code of 1954, and all references in this section to specific sections of this Code include corresponding provisions of any subsequent federal tax laws.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 303, &sect; 1, emerg. eff. June 17, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60174.2. Articles of incorporation deemed to contain certain provisions Amendment.&nbsp;</span></p> <p><span class="cls0">A. Notwithstanding any provisions of Oklahoma law or in the articles of incorporation to the contrary, except as provided in subsection B hereof, the articles of incorporation of each corporation which is a private foundation as described in Section 509 of the Federal Internal Revenue Code of 1954 shall be deemed to contain the following provisions: "The corporation shall make distributions at such time and in such manner as not to subject it to tax under Section 4942 of the Federal Internal Revenue Code; the corporation shall not engage in any act of selfdealing which would subject it to tax under Section 4941 of the Code; the corporation shall not retain any excess business holdings which would subject it to tax under Section 4943 of the Code; the corporation shall not make any investments which would subject it to tax under Section 4944 of the Code; and the corporation shall not make any taxable expenditures which would subject it to tax under Section 4945 of the Code." With respect to any such corporation organized prior to January 1, 1970, this subsection A shall apply only for its taxable years beginning on or after January 1, 1972.&nbsp;</span></p> <p><span class="cls0">B. The articles of incorporation of any corporation described in subsection A hereof may be amended to expressly exclude the application of subsection A, and, in the event of such amendment, subsection A shall not apply to such corporation.&nbsp;</span></p> <p><span class="cls0">C. All references in this section to the "Code" are to the Federal Internal Revenue Code of 1954, and all references in this section to specific sections of the Code include corresponding provisions of any subsequent federal tax laws.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 303, &sect; 2, emerg. eff. June 17, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60175. Trust for benefit of spouse revoked upon death of maker Annulment or divorce Exemptions.&nbsp;</span></p> <p><span class="cls0">A. If, after making an express trust, the trustor is divorced, all provisions in such express trust in favor of the trustor's former spouse, which are to take effect upon the death of the trustor, are thereby revoked. Annulment of the trustor's marriage shall have the same effect as a divorce. In the event of either divorce or annulment, the trustor's former spouse shall be treated for all purposes under the express trust, as having predeceased the trustor. For purposes of this section, "express trust" shall include a "Totten Trust" as described in Section 902 of Title 6 of the Oklahoma Statutes and shall not include a "business trust".&nbsp;</span></p> <p><span class="cls0">B. Subsection A of this section shall not apply:&nbsp;</span></p> <p><span class="cls0">1. If the decree of divorce or annulment is vacated;&nbsp;</span></p> <p><span class="cls0">2. If the trustor had remarried said former spouse and was married to said spouse at the time of the trustor's death;&nbsp;</span></p> <p><span class="cls0">3. If the decree of divorce or annulment contains a provision expressing an intention contrary to subsection A of this section;&nbsp;</span></p> <p><span class="cls0">4. If the trustor makes the express trust subsequent to the divorce or annulment;&nbsp;</span></p> <p><span class="cls0">5. To the extent, if any, the express trust contains a provision expressing an intention contrary to subsection A of this section; or&nbsp;</span></p> <p><span class="cls0">6. If prior to the death of the trustor and subsequent to the divorce or annulment, the trustor executes an amendment to said express trust which is not revoked or held invalid.&nbsp;</span></p> <p><span class="cls0">C. This section shall apply to any express trust, the trustor of which dies on or after November 1, 1987.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1987, c. 201, &sect; 3, eff. Nov. 1, 1987. &nbsp;</span></p> <p><span class="cls0">&sect;60175.1. Citation of Act.&nbsp;</span></p> <p><span class="cls0">This act may be cited as the Oklahoma Trust Act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60175.2. Purposes of trust.&nbsp;</span></p> <p><span class="cls0">A trust in relation to real and personal property, or either of them, may be created for any purpose or purposes for which a contract may be made.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 250, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60-175.3. Definitions of terms used.&nbsp;</span></p> <p><span class="cls0">As used in this act unless the context or subject matter otherwise requires:&nbsp;</span></p> <p><span class="cls0">A. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, an unincorporated organization, or two or more persons having a joint or common interest.&nbsp;</span></p> <p><span class="cls0">B. "Trustor" means the maker, creator, donor, settlor, grantor, of a trust and the testator or testatrix of a will containing trust provisions.&nbsp;</span></p> <p><span class="cls0">C. "Trustee" includes trustees, a corporate trustee and the judicially ordered successor of the corporate trustee in the event of assumption by a financial institution of fiduciary accounts for all trusts of the corporate trustee in existence on the date of the assumption, including testamentary trusts which come into existence after the date of assumption, as well as a natural person and a successor or substitute trustee. Provided, a successor in interest shall include a judicially ordered successor in the event of an assumption by a financial institution of fiduciary accounts for all trusts in existence on the date of the assumption, together with those testamentary trusts which come into existence after the date of assumption.&nbsp;</span></p> <p><span class="cls0">D. "Relative" means a spouse, ancestor, descendant, brother, or sister, by blood or adoption.&nbsp;</span></p> <p><span class="cls0">E. "Affiliate" means any person directly or indirectly controlling or controlled by another person, or any person under direct or indirect common control with another person. It includes, but is not limited to, any person with whom a trustee has an express or implied agreement regarding the purchase of trust investments by each from the other, directly or indirectly, except a broker or stock exchange. It does not include a bank, trust company or affiliate of a bank or trust company which is providing services to an investment company or trust as investment advisor, sponsor, distributor, custodian, transfer agent, administrator, registrar or otherwise.&nbsp;</span></p> <p><span class="cls0">F. "Trust" means an express trust only, and does not include so called "business trusts".&nbsp;</span></p> <p><span class="cls0">G. "Principal" means any real or personal property which has been so set aside or limited by the owner thereof, or a person thereto, legally empowered that it and any substitutions for it are eventually to be conveyed, delivered, or paid to a person, while the return therefrom, or use thereof, or any part of such return or use is in the meantime to be taken or received by or held for accumulation for the same or another person.&nbsp;</span></p> <p><span class="cls0">H. "Income" means the return derived from principal.&nbsp;</span></p> <p><span class="cls0">I. "Tenant" means the person to whom income is presently or currently payable, or for whom it is accumulated or who is entitled to the beneficial use of the principal presently and for a time prior to its distribution.&nbsp;</span></p> <p><span class="cls0">J. "Remainderman" means the person ultimately entitled to the principal, whether named or designated by the terms of the transaction by which the principal was established or determined by operation of law.&nbsp;</span></p> <p><span class="cls0">K. "Beneficiary" means any person entitled to receive from a trust any benefit of whatsoever kind or character.&nbsp;</span></p> <p><span class="cls0">L. "Trustee's compensation," as used in this act, means the normal, recurring fee of the trustee for services in the management and administration of the trust estate, irrespective of the manner of computation of such fee. "Trustee's commission," as used in this act, means the fee of the trustee for services rendered, other than in the normal management and administration of the trust estate, and includes extraordinary services, remuneration of the trustee for acceptance, distribution, termination, and all other fees of similar nature, as distinguished from regularly recurring compensation for management and supervision of the trust estate by the trustee.&nbsp;</span></p> <p><span class="cls0">M. "Trustee advisor" means a person appointed by the terms of the trust instrument to act as an advisor to the trustee with regard to all or some of the matters relating to the property of the trust. Unless otherwise provided by the terms of the trust instrument, if a trustee advisor is appointed, the property and management of the trust and the exercise of all powers and discretionary acts exercisable by the trustee remain vested in the trustee as fully and effectively as if an advisor were not appointed, the trustee is not required to follow the advice of the trustee advisor, and the trustee advisor is not liable as or considered to be a trustee of the trust or a fiduciary when acting as an advisor to the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 250, &sect; 3. Amended by Laws 1988, c. 319, &sect; 5, eff. Nov. 1, 1988; Laws 1990, c. 260, &sect; 34, operative July 1, 1990; Laws 2012, c. 135, &sect; 1, eff. Nov. 1, 2012.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60175.4. Legal estate of person in possession and entitled to rents and profits.&nbsp;</span></p> <p><span class="cls0">Every person who, by virtue of any transfer or devise, is entitled to the actual possession of real property, and the receipts of the rents and profits thereof, is deemed to have a legal estate therein, of the same quality and duration, and subject to the same conditions as his beneficial interest.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 251, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60175.5. Trustee's title, when not divested by preceding section.&nbsp;</span></p> <p><span class="cls0">The last preceding section does not divest the estate of any trustee in a trust heretofore existing, where the title of such trustee is not merely nominal, but is connected with some power of actual disposition or management in relation to the real property, which is the subject of the trust.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 251, &sect; 5. &nbsp;</span></p> <p><span class="cls0">&sect;60175.6. Manner of creating trust Beneficiary as cotrustee.&nbsp;</span></p> <p><span class="cls0">A trust may be created by:&nbsp;</span></p> <p><span class="cls0">A. A declaration by the owner of property that he holds it as trustee for another person, or for himself and another person or persons; or&nbsp;</span></p> <p><span class="cls0">B. A transfer inter vivos by the owner of property to another person as trustee for the transferor or for a third person; or&nbsp;</span></p> <p><span class="cls0">C. A transfer by will by the owner of property to another person as trustee for a third person; or&nbsp;</span></p> <p><span class="cls0">D. An appointment by one person having a power of appointment to another person as trustee for the donee of the power or for a third person; or&nbsp;</span></p> <p><span class="cls0">E. A promise by one person to another person whose rights thereunder are to be held in trust for a third person; or&nbsp;</span></p> <p><span class="cls0">F. A beneficiary may be a cotrustee and the legal and equitable title to the trust estate shall not merge by reason thereof. Provided, however, that no trust in relation to real property shall be valid, unless created or declared:&nbsp;</span></p> <p><span class="cls0">1. By a written instrument subscribed by the trustor or by his agent thereto authorized by writing;&nbsp;</span></p> <p><span class="cls0">2. By the instrument under which the trustee claims the estate affected.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 251, &sect; 6. &nbsp;</span></p> <p><span class="cls0">&sect;60175.6a. Acquiring and holding real property in name of express trust Transfer Memorandum Presumption for conveyance by trustee.&nbsp;</span></p> <p><span class="cls0">Any estate in real property may be acquired and held in the name of an express private trust which is a legal entity. Where real property is so acquired, any conveyance, assignment or other transfer shall be made in the name of such trust by the trustee or trustees of said trust. When real property is transferred or acquired in the name of the trust after the effective date of this act, the trustee shall file a memorandum of trust with the county clerk in which the real property is located. The memorandum of trust shall include the date of creation and the name of the trustee or trustees of the trust.&nbsp;</span></p> <p><span class="cls0">Any person or persons making such conveyances and executing instruments while purporting to be the trustee or trustees of such trusts shall be presumed to be acting in the capacity indicated and within the scope of their authority in any action to set aside such conveyance brought against a bona fide purchaser for value.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60175.6b. Time limit for challenges to validity of prior conveyances.&nbsp;</span></p> <p><span class="cls0">Any conveyance made and filed of record prior to the effective date of this act placing real property or any interest therein in a trust naming the trust itself as the grantee shall be valid for all purposes unless any person claiming adversely to such trust or to its successors shall file an affidavit setting forth the basis of such in the office of the county clerk of the county or counties wherein said property is located within one (1) year from the effective date of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60175.7. Rights of transferee of trust property for value and without notice.&nbsp;</span></p> <p><span class="cls0">If the trustee in breach of trust transfers trust property to, or creates a legal interest in the subject matter of the trust in, a person who takes for value and without notice of breach of the trust, actual or constructive under the recording act, and who is not knowingly taking part in an illegal transaction, the latter holds the interest so transferred or created free of the trust and is under no liability to the beneficiary.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 251, &sect; 7. &nbsp;</span></p> <p><span class="cls0">&sect;60175.8. Transferor of money or property not responsible for application by trustee.&nbsp;</span></p> <p><span class="cls0">A person who, with or without knowledge of the trust, in good faith pays or transfers to a trustee any money or other property which the trustee as such is authorized to receive, is not responsible for the proper application thereof by the trustee; and any right or title acquired from the trustee in consideration of such payment or transfer is not invalid in consequence of a misapplication by the trustee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 251, &sect; 8. &nbsp;</span></p> <p><span class="cls0">&sect;60175.9. Trustee lending funds to self, affiliate, etc.&nbsp;</span></p> <p><span class="cls0">Except as provided in Section 10, no corporate trustee shall lend trust funds to itself or an affiliate, or to any director, officer, or employee of itself or of an affiliate; nor shall any noncorporate trustee lend trust funds to himself, or to his relative, employer, employee, partner, or other business associate.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 9. &nbsp;</span></p> <p><span class="cls0">&sect;60175.10. Deposits by corporate trustee with itself Security.&nbsp;</span></p> <p><span class="cls0">A corporate trustee may deposit with itself trust funds in checking and savings accounts, savings certificates, certificates of deposit, and any other type of demand or time deposit, provided it maintains under control of its trust department, if it has a trust department separate from its banking department, as security for such deposit a separate fund consisting of securities legal for trust investments which have at all times during the deposit a total market value exceeding the amount of the deposit. No such security shall be required to the extent said deposit is guaranteed by or under state or federal law.&nbsp;</span></p> <p><span class="cls0">The separate fund of securities shall be marked as such. Withdrawals from or additions to it may be made from time to time, as long as the required value is maintained. The income of such securities shall belong to the corporate trustee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 10; Laws 1981, c. 143, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60175.11. Trustee buying from, or selling to, self, affiliate, etc.&nbsp;</span></p> <p><span class="cls0">No trustee shall directly or indirectly buy or sell any property for the trust from or to itself or an affiliate; or from or to a director, officer, or employee of such trustee or of an affiliate; or from or to himself, a relative, employer, partner, or other business associate; provided a national banking association or a state bank and trust company performing trust functions, where acting as executor, administrator, guardian, or trustee, may sell stock of itself to one or more of its officers, stockholders, or directors upon a court of competent jurisdiction finding that such sale will be for the best interest of the trust estate and making an order for such sale.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 11. &nbsp;</span></p> <p><span class="cls0">&sect;60-175.11a. Trust powers.&nbsp;</span></p> <p><span class="cls0">A national banking association, a credit union, a state-chartered corporation, including a state-chartered bank or trust company, or a state or federal savings and loan association that has the right to exercise trust powers and that is serving as trustee, may:&nbsp;</span></p> <p><span class="cls0">1. Employ an affiliate or division within a financial institution to provide brokerage, investment, administrative, custodial, or other account services for the trust and charge the trust for the services; and&nbsp;</span></p> <p><span class="cls0">2. Receive compensation, directly or indirectly, for the services performed by the affiliate or division within the financial institution, whether in the form of shared commissions, fees, or otherwise, provided that any amount charged by the affiliate or division for the services is disclosed and does not exceed the customary or prevailing amount that is charged by the affiliate or division, or a comparable entity, for comparable services rendered to a person other than the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2006, c. 325, &sect; 1, eff. Nov. 1, 2006.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60175.12. Trustee selling to self as trustee of another trust.&nbsp;</span></p> <p><span class="cls0">No trustee shall as trustee of one trust sell property to himself as trustee of another trust, except bonds, notes, and obligations fully guaranteed as to both principal and interest, by the United States of America, which may be so sold at the current market price.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 12. &nbsp;</span></p> <p><span class="cls0">&sect;60175.13. Trustee purchasing stock, bond or securities of self, affiliate, etc.&nbsp;</span></p> <p><span class="cls0">No corporate trustee shall purchase for a trust, shares of its own stock, or its bonds, or other securities, or the stock, bonds or other securites of an affiliate.&nbsp;</span></p> <p><span class="cls0">This section shall not prohibit the exercise of stock rights issued in connection with shares of the trustee bank or its affiliates owned in a fiduciary capacity, nor payments for the rounding out of fractional shares received in connection with the stock dividends issued by the trustee bank or its affiliates; provided that,&nbsp;</span></p> <p><span class="cls0">(1) in the election of directors, shares of its own stock held by a bank as sole trustee, whether registered in its own name as such trustee or in the name of its nominee, shall not be voted by the registered owner unless under the terms of the trust the manner in which such shares shall be voted may be determined by a donor or beneficiary of the trust and unless such donor or beneficiary actually directs how such shares shall be voted,&nbsp;</span></p> <p><span class="cls0">(2) shares of its own stock held by a bank and one or more persons as trustees may be voted by such other person or persons, as trustees, in the same manner as if he or they were the sole trustee. No noncorporate trustee shall purchase for a trust the stock, bonds, or other securities of a corporation with which he is connected as director, owner, manager, or in executive capacity.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 13; Laws 1968, c. 15, &sect; 3, emerg. eff. Feb. 19, 1968. &nbsp;</span></p> <p><span class="cls0">&sect;60175.14. Trustee voting corporate stock.&nbsp;</span></p> <p><span class="cls0">A trustee owning corporate stock may vote it by proxy, with or without power of substitution, but shall be liable for any loss resulting to the beneficiaries from a failure to use reasonable care in deciding how to vote the stock and in voting it.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 14. &nbsp;</span></p> <p><span class="cls0">&sect;60175.15. Trustee owning stock in name of nominee Exemption.&nbsp;</span></p> <p><span class="cls0">A trustee owning stock may hold it in the name of a nominee, without mention of the trust in the stock certificate or stock registration book; provided that:&nbsp;</span></p> <p><span class="cls0">A. The trust records and all reports or accounts rendered by the trustee, clearly show the ownership of the stock by the trustee, and the facts regarding its holdings;&nbsp;</span></p> <p><span class="cls0">B. The nominee deposits with the trustee a signed statement showing the trust ownership, endorses the stock certificate in blank, and does not have possession of the stock certificate or access thereto except under the immediate supervision of the trustee. The trustee shall be personally liable for any loss to the trust resulting from any wrongful or negligent act of such nominee in connection with stock so held; and&nbsp;</span></p> <p><span class="cls0">C. The provisions of this section shall not apply to a bank, trust company or national banking association.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 252, &sect; 15; Laws 1975, c. 123, &sect; 2, emerg. eff. May 13, 1975. &nbsp;</span></p> <p><span class="cls0">&sect;60175.16. Powers of trustee attached to office.&nbsp;</span></p> <p><span class="cls0">Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order, all powers of a trustee shall be attached to the office and shall not be personal.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 253, &sect; 16. &nbsp;</span></p> <p><span class="cls0">&sect;60175.17. Cotrustees Powers and liabilities.&nbsp;</span></p> <p><span class="cls0">Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order:&nbsp;</span></p> <p><span class="cls0">A. Any power vested in three or more trustees may be exercised by a majority of the trustees; but no trustee who has not joined in exercising a power shall be liable to the beneficiaries or to others for the consequences of the exercise, nor shall a dissenting trustee be liable for the consequences of an act in which the trustee joins at the direction of the majority trustees, if the trustee expressed his dissent in writing to any of the cotrustees at or before the time of the joinder.&nbsp;</span></p> <p><span class="cls0">B. Where two or more trustees are appointed by will or a voluntary trust to execute a trust and one or more of them die, the survivor may execute the trust and may exercise the discretionary powers given to the trustees jointly, unless the terms of the will or agreement express a contrary opinion.&nbsp;</span></p> <p><span class="cls0">C. Any cotrustee may give a power of attorney to another trustee or authorize a cotrustee to perform any act in the administration of the trust, but the trustee giving a power of attorney or authorizing an act to be performed by the cotrustee shall have the same liability and responsibility as if the trustee had performed the act done pursuant to the authorization.&nbsp;</span></p> <p><span class="cls0">D. Nothing in this section shall excuse a cotrustee from liability for inactivity in the administration of the trust, nor for failure to attempt to prevent a breach of trust.&nbsp;</span></p> <p><span class="cls0">E. Where two or more trustees, none of whom is the settlor, have the power as trustees to make discretionary distributions of either principal or income to or for the benefit of one of them, the trustee beneficiary may only make such discretionary distributions which provide for the health, education, or maintenance of the trustee beneficiary or to support the trustee beneficiary in an accustomed manner of living. The provisions of this subsection shall apply to any trust created under a document executed on or before the effective date of this act unless:&nbsp;</span></p> <p><span class="cls0">1. The trust is revocable or amendable and the settlor revokes or amends the trust at any time to provide otherwise; or&nbsp;</span></p> <p><span class="cls0">2. The trust is irrevocable and all parties in interest elect affirmatively not to be subject to this subsection. Such election must be made on or before the later of three (3) years after the effective date of this act, or three (3) years after the date on which the trust becomes irrevocable.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 253, &sect; 17. Amended by Laws 2001, c. 374, &sect; 1, eff. Nov. 1, 2001.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60175.18. Action on trustee contract Personal liability of trustee Trustee as general or limited partner.&nbsp;</span></p> <p><span class="cls0">Whenever a trustee shall make a contract which is within his powers as trustee, or a predecessor trustee shall have made such a contract, and a cause of action arises thereon:&nbsp;</span></p> <p><span class="cls0">1. The party in whose favor the cause of action has accrued may sue the trustee in his representative capacity, and any judgment rendered in such action in favor of the plaintiff shall be collectible by execution out of the trust property. In such an action the plaintiff need not prove that the trustee could have secured reimbursement from the trust fund if he had paid the plaintiff's claim.&nbsp;</span></p> <p><span class="cls0">2. No judgment shall be rendered in favor of the plaintiff in such action unless he proves that within thirty (30) days after the beginning of such action, or within such other time as the court may fix, and more than thirty (30) days prior to obtaining the judgment, he notified each of the beneficiaries known to the trustee who then had a present or contingent interest, or in the case of a charitable trust the Attorney General and any corporation which is a beneficiary or agency in the performance of such charitable trust, of the existence and nature of the action. Such notice shall be given by mailing copies thereof in postpaid envelopes addressed to the parties to be notified at their lastknown addresses. The trustee shall furnish the plaintiff a list of the parties to be notified, and their addresses, within ten (10) days after written demand therefor, and notification of the persons on such list shall constitute compliance with the duty placed on the plaintiff by this section. Any beneficiary, or in the case of charitable trusts, the Attorney General and any corporation which is a beneficiary or agency in the performance of such charitable trust, may intervene in such action and contest the right of the plaintiff to recover. If any beneficiary is a minor or has been adjudged incompetent, the court shall appoint a guardian ad litem, whose duty it shall be to defend such action.&nbsp;</span></p> <p><span class="cls0">3. The plaintiff may also hold the trustee who made the contract personally liable on such contract, if the contract does not exclude such personal liability. The addition of the word "trustee" or the words "as trustee" after the signature of a trustee to a contract shall be deemed prima facie evidence of an intent to exclude the trustee from personal liability.&nbsp;</span></p> <p><span class="cls0">4. If a decedent was a partner in a general partnership and the articles of partnership so provide, on the death of a partner, his or her trustee shall be entitled to the place of the deceased partner in the partnership. Likewise, any other trustee contracting to enter into a general partnership in its capacity as trustee shall have its liability limited to the trust assets contributed to the partnership and the other assets of that trust under the control and management of the contract. A trustee so entering the partnership shall be liable to third persons only to the extent of the decedent's capital in the partnership and the funds of the trust under the control and management of the trustee. This paragraph does not exonerate a trustee from liability for negligence.&nbsp;</span></p> <p><span class="cls0">5. Unless otherwise authorized, directed or restricted by order of court or by the instrument creating the trust, a trustee may contract to enter into a limited partnership pursuant to the Limited Partnership Act and may contribute to the partnership the assets designated by the instrument creating the trust. The trustee shall be liable only to the extent of the assets contributed by the trustee pursuant to the instrument creating the trust, notwithstanding the occurrence of any act or event which would otherwise have the effect of changing the limited partnership into a general partnership. This paragraph does not exonerate a trustee from liability for negligence.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 253, &sect; 18; Laws 1981, c. 196, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60175.19. Torts of trustee Exoneration or reimbursement.&nbsp;</span></p> <p><span class="cls0">A trustee who has incurred personal liability for a tort committed in the administration of the trust is entitled to exoneration therefor from the trust property;&nbsp;</span></p> <p><span class="cls0">A. If he has not discharged the claim, or to be reimbursed therefor out of trust funds if he has paid the claim; if&nbsp;</span></p> <p><span class="cls0">1. The tort was a common incident of the kind of business activity in which the trustee was properly engaged for the trust; or 2. Although the tort was not a common incident of such activity, if neither the trustee nor any officer or employee of the trustee was guilty of actionable negligence in incurring the liability.&nbsp;</span></p> <p><span class="cls0">B. If a trustee commits a tort which increases the value of the trust property, he shall be entitled to exoneration or reimbursement with respect thereto to the extent of such increase in value, even though he would not otherwise be entitled to exoneration or reimbursement.&nbsp;</span></p> <p><span class="cls0">Where the trust instrument reserves to the trustor or vests in an advisory or investment committee or any other person, including a cotrustee, authority to direct the making or retention of investments, the excluded trustee or trustees shall not be liable as a trustee for any loss resulting from the making or retention of any investment pursuant to such mandatory direction, except to the extent the excluded trustee is negligent in carrying out the execution of the directed investment or other directed action, and nothing herein shall relieve any trustee having custody of any asset from liability for exercising due diligence in the safekeeping thereof.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 254, &sect; 19; Laws 1968, c. 15, &sect; 4, emerg. eff. Feb. 19, 1968. &nbsp;</span></p> <p><span class="cls0">&sect;60175.20. Actions for trustee's torts Personal liability of trustee.&nbsp;</span></p> <p><span class="cls0">Where a trustee or his predecessor has incurred personal liability for a tort committed in the course of his administration:&nbsp;</span></p> <p><span class="cls0">A. The trustee in his representative capacity may be sued and collection had from the trust property, if the court shall determine in such action:&nbsp;</span></p> <p><span class="cls0">1. That the tort was a common incident of the kind of business activity in which the trustee or his predecessor was properly engaged for the trust; or&nbsp;</span></p> <p><span class="cls0">2. That although the tort was not a common incident of such activity neither the trustee nor his predecessor, nor any officer or employee of the trustee or his predecessor, was guilty of actionable negligence in incurring the liability; or&nbsp;</span></p> <p><span class="cls0">3. That although the tort did not fall within Classes 1 or 2 above, it increased the value of the trust property. If the tort is within Classes 1 or 2 above, collection may be had of the full amount of damage proved; and if the tort is within Class 3 above, collection may be had only to the extent of the permanent increase in the value of the trust property.&nbsp;</span></p> <p><span class="cls0">B. In an action against the trustee in his representative capacity under this section the plaintiff need not prove that the trustee could have secured reimbursement from the trust fund if he had paid the plaintiff's claim.&nbsp;</span></p> <p><span class="cls0">C. No judgment shall be rendered in favor of the plaintiff in such action unless he proves that within thirty (30) days after the beginning of the action, or within such other period as the court may fix, and more than thirty (30) days prior to obtaining the judgment, he notified each of the beneficiaries known to the trustee who then had a present or contingent interest of the existence and nature of the action. Such notice shall be given by mailing copies thereof in postpaid envelopes addressed to such beneficiaries at their last known addresses. The trustee shall furnish the plaintiff a list of such beneficiaries and their addresses, within ten (10) days after written demand therefor, and notification of the persons on such list shall constitute compliance with the duty placed on the plaintiff by this action. Any beneficiary may intervene in such action and contest the right of the plaintiff to recover. If any beneficiary is a minor or has been adjudged incompetent, the court shall appoint a guardian ad litem, whose duty it shall be to defend such action.&nbsp;</span></p> <p><span class="cls0">D. The trustee may also be held personally liable for any tort committed by him, or his agents or employees in the course of their employments, subject to the rights of exoneration or reimbursement provided in Section 19 of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 254, &sect; 20. &nbsp;</span></p> <p><span class="cls0">&sect;60175.21. Duties, restrictions or liabilities of trustee Trustor may relieve trustee or add others.&nbsp;</span></p> <p><span class="cls0">The trustor of any trust affected by this act may, by provisions in the instrument creating the trust, or by an amendment of the trust if the trustor reserved the power to amend the trust, relieve his trustee from any or all of the duties, restrictions, and liabilities which would otherwise be imposed upon him by this act; or alter or deny to his trustee any or all of the privileges and powers conferred upon the trustee by this act; or add duties, restrictions, liabilities, privileges, or powers to those imposed or granted by this act; but no act of the trustor shall relieve a corporate trustee from the duties, restrictions, and liabilities imposed upon it by Sections 9, 10, and 11 of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 255, &sect; 21. &nbsp;</span></p> <p><span class="cls0">&sect;60-175.22. Repealed by Laws 1999, c. 419, &sect; 4, emerg. eff. June 10, 1999.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.23. Jurisdiction of district court regarding trusts - Venue - Parties - Applicable statutes.&nbsp;</span></p> <p><span class="cls0">A. The district court shall have original jurisdiction to construe the provisions of any trust instrument; to determine the law applicable thereto; the powers, duties, and liability of trustee; the existence or nonexistence of facts affecting the administration of the trust estate; to require accounting by trustees; to surcharge trustee; and in its discretion to supervise the administration of trusts; and all actions hereunder are declared to be proceedings in rem.&nbsp;</span></p> <p><span class="cls0">B. The venue of such actions shall be in the county where the trustees or any cotrustee resides. Upon obtaining jurisdiction the same shall not be divested by the removal of the trustee from the county where the action is commenced.&nbsp;</span></p> <p><span class="cls0">C. Actions hereunder may be brought by a trustee, beneficiary, or any person affected by the administration of the trust estate. If the action is predicated upon any act or obligation of any beneficiary, the beneficiary shall be a necessary party to the proceedings. The only necessary parties to such actions shall be those persons designated as beneficiaries by name or class in the instrument creating the trust and who have a vested interest in the trust which is the subject of the action, those persons currently serving as trustees of the trust, and any persons who may be actually receiving distributions from the trust estate at the time the action is filed. Contingent beneficiaries designated by name or class shall not be necessary parties.&nbsp;</span></p> <p><span class="cls0">D. The provisions of the statutes governing civil procedure, commencement of action, process, process by publication, appointment of guardians ad litem, supersedeas and appeal, shall govern all actions and proceedings brought under provisions of this act.&nbsp;</span></p> <p><span class="cls0">E. A court of competent jurisdiction may, for cause shown and upon notice to the beneficiaries, relieve a trustee from any or all of the duties and restrictions which would otherwise be placed upon the trustee by this act, or wholly or partly excuse a trustee who has acted honestly and reasonably from liability for violations of the provisions of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 255, &sect; 23. Amended by Laws 1993, c. 345, &sect; 14, eff. Sept. 1, 1993; Laws 1995, c. 351, &sect; 22, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60175.24. Powers of trustees Enumeration Others not excluded Bond of trustee.&nbsp;</span></p> <p><span class="cls0">A. In the absence of contrary or limiting provisions in the trust agreement or a subsequent order or decree of a court of competent jurisdiction, the trustee of an express trust is authorized:&nbsp;</span></p> <p><span class="cls0">1. To exchange, reexchange, subdivide, develop, improve, dedicate to public use, make or vacate public plats, adjust boundaries, or partition real property, and to adjust differences in valuation by giving or receiving money or money's worth. Easements may be dedicated to public use without consideration if deemed by the trustee to be for the best interest of the trust;&nbsp;</span></p> <p><span class="cls0">2. To grant options and to sell real or personal property at public auction or at private sale for cash, or upon credit secured by lien upon the property sold or upon such property or a part thereof or other property;&nbsp;</span></p> <p><span class="cls0">3. To grant or take leases of real property and of all rights and privileges above or below the surface of real property for any term or terms, including exploration for and removal of oil, gas, and other minerals, with or without options of purchase, and with or without covenants as to erection of buildings or as to renewals thereof, though the term of the lease or renewals thereof, or of such options extend beyond the term of the trust;&nbsp;</span></p> <p><span class="cls0">4. To raze existing party walls or buildings or erect new party walls or buildings alone or jointly with owners of adjacent property. To make ordinary repairs and in addition thereto such extraordinary alterations in buildings or other structures which are necessary to make the property productive. To effect and keep in force, fire, rent, title, liability, casualty, or other insurance of any nature, in any form and in any amount;&nbsp;</span></p> <p><span class="cls0">5. To compromise, contest, arbitrate, or settle any and all claims of or against the trust estate or the trustee as such. To abandon property deemed by the trustee burdensome or valueless;&nbsp;</span></p> <p><span class="cls0">6. To pay calls, assessments, and any other sums chargeable or accruing against, or on account of shares of stock or other securities in the hands of the trustee where such payment may be legally enforceable against the trustee or any property of the trust, or the trustee deems payment expedient and for the best interest of the trust. To sell or exercise stock subscription or conversion rights, participate in foreclosures, reorganizations, consolidations, mergers, liquidations, pooling agreements and voting trusts; to assent to corporate sales, leases, and encumbrances, and in general, except as limited by the particular trust agreement, have and exercise all powers of an absolute owner in respect of such securities. In the exercise of the foregoing powers the trustee shall be authorized, where he deems such course expedient, to deposit stocks, bonds, or other securities with any protective or other committee formed by or at the instance of persons holding similar securities, under such terms and conditions respecting the deposit thereof as the trustee may approve. Any stock or other securities obtained by conversion, reorganization, consolidation, merger, liquidation, or the exercise of subscription rights shall be free, unless the trust agreement provides otherwise, from any restrictions on sale or otherwise contained in the trust agreement relative to the securities originally held;&nbsp;</span></p> <p><span class="cls0">7. To make such investment directly or in the form of securities of, or other interests in, any openend or closedend management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C.A. Section 80a-1 et seq.; provided, that the portfolio of such investment company or investment trust is limited to United States Government obligations and to repurchase agreements fully collateralized by such United States Government obligations, and provided further, that any such investment company or investment trust shall take delivery of such collateral, either directly or through an authorized custodian;&nbsp;</span></p> <p><span class="cls0">8. To borrow money or create an indebtedness or obligation including any bond indebtedness or obligation, except as limited by the provisions of the Oklahoma Trust Act; and generally to execute any deed or other instrument and to do all things in relation to such trust necessary or desirable for carrying out any of the above powers or incident to the purposes of such trust; and&nbsp;</span></p> <p><span class="cls0">9. To employ attorneys, accountants, agents, and brokers reasonably necessary in the administration of the trust estate; permit real estate held in trust to be occupied by a surviving spouse or minor child of the trustor and, where reasonably necessary for the maintenance of the surviving wife or minor child, invest trust funds in real property to be used for a home by such beneficiary; make any contracts pertaining to oil, gas, or other natural resources as are customary in the community where the real property held in trust is situated; in the trustee's discretion pay funeral expenses of any beneficiary actually receiving benefits from the trust estate at the time of the death of the beneficiary.&nbsp;</span></p> <p><span class="cls0">B. The following rules of administration shall be applicable to all express trusts but such rules shall not be exclusive of those otherwise imposed by law unless contrary to these rules:&nbsp;</span></p> <p><span class="cls0">1. Where a trustee is authorized to sell or dispose of land, such authority shall include the right to sell or dispose of part thereof, whether the division is horizontal, vertical, or made in any other way, or undivided interests therein;&nbsp;</span></p> <p><span class="cls0">2. Where a trustee is authorized by the trust agreement creating the trust or by law to pay or apply capital money subject to the trust for any purpose or in any manner, the trustee shall have and shall be deemed always to have had power to raise the money required by selling, converting, calling in, or mortgaging or otherwise encumbering all or any part of the trust property for the time being in possession;&nbsp;</span></p> <p><span class="cls0">3. A trustee shall have a lien and may be reimbursed with interest for, or pay or discharge out of the trust property, either principal or income or both, all advances made for the benefit or protection of the trust or its property and all expenses, losses, and liabilities, not resulting from the negligence of the trustee, incurred in or about the execution or protection of the trust or because of the trustee holding or ownership of any property subject thereto; and&nbsp;</span></p> <p><span class="cls0">4. When the happening of any event, including marriage, divorce, attainment of a certain age, performance of educational requirements, death, or any other event, affects distribution of income or principal of trust estates, the trustees shall not be liable for mistakes of fact prior to the actual knowledge or written notice of such fact.&nbsp;</span></p> <p><span class="cls0">C. The powers, duties, and responsibilities stated in the Oklahoma Trust Act or the Oklahoma Uniform Prudent Investor Act shall not be deemed to exclude other implied powers, duties, or responsibilities not inconsistent herewith.&nbsp;</span></p> <p><span class="cls0">D. The trustee shall pay all taxes and assessments levied or assessed against the trust estate or the trustee by governmental taxing or assessing agencies.&nbsp;</span></p> <p><span class="cls0">E. No trustee shall be required to give bond unless the instrument creating the trust, or a court of competent jurisdiction in its discretion upon the application of an interested party requires a bond to be given.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 255, &sect; 24. Amended by Laws 1949, p. 413, &sect; 1; Laws 1986, c. 106, &sect; 2, emerg. eff. April 5, 1986; Laws 1994, c. 306, &sect; 1, eff. Sept. 1, 1994; Laws 1995, c. 351, &sect; 23, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.25. Alienation of interest of beneficiary - Rights and remedies of creditors - Spendthrift trusts - Trustor's interest alienable and subject to claims of creditors.&nbsp;</span></p> <p><span class="cls0">A. Any instrument creating a trust may provide by specific words that the interest of any beneficiary in the income of the trust shall not be subject to voluntary or involuntary alienation by such beneficiary. Subject to the following provisions of this section, a direction to this effect shall be valid and enforceable.&nbsp;</span></p> <p><span class="cls0">B. Notwithstanding a provision in the terms of a trust restraining the alienation of the interest of a beneficiary, such interest shall be entitled to be reached in the satisfaction of claims to the following extent:&nbsp;</span></p> <p><span class="cls0">1. All income due or to accrue in the future to the beneficiary shall be subject to enforceable claims under the laws of this state for:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;support of a husband, wife, or child of the beneficiary,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;necessary services rendered or necessary supplies furnished to the beneficiary, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;a judgment based on any such claim under subparagraph a or b; and&nbsp;</span></p> <p><span class="cls0">2. In all cases not mentioned in paragraph 1 of this subsection, all income due or to accrue in the future to the beneficiary in excess of Twenty-five Thousand Dollars ($25,000.00) per calendar year shall be subject to garnishment by creditors of the beneficiary and shall be fully alienable by the beneficiary.&nbsp;</span></p> <p><span class="cls0">C. Where two or more creditors undertake to reach the interest of any beneficiary of a trust, pursuant to the provisions of this section, they shall be subject to priority of payment in the order of the service of a notice of garnishment on the trustee. The pendency of any attachment or garnishment shall not prevent the filing of a further attachment or garnishment by the same or any other creditor.&nbsp;</span></p> <p><span class="cls0">D. Where the beneficiary of any spendthrift trust is also the beneficiary under any other spendthrift trust created or administered either within or without this state, the aggregate income payable under all such trusts to the beneficiary shall be considered together for the purpose of determining the rights of creditors and assignees under this section.&nbsp;</span></p> <p><span class="cls0">E. The right of any beneficiary of a trust to receive the principal of the trust or any part of it, presently or in the future, shall not be alienable and shall not be subject to the claims of his creditors.&nbsp;</span></p> <p><span class="cls0">F. Where the interest of the beneficiary of a trust is subject to the exercise of discretion by the trustee or by another, the provisions of this act as to the rights of creditors and assignees shall apply with respect to any sums which the trustee or such other person determines shall be paid to or for the beneficiary.&nbsp;</span></p> <p><span class="cls0">G. A trust in which the interest of the beneficiary is subject to restraints on alienation as provided in this act may be called a "spendthrift trust" and a direction in any instrument creating a trust that the interest of any beneficiary shall be held on or subject to a spendthrift trust shall be sufficient to restrain the alienation of such interest to the extent provided in this act.&nbsp;</span></p> <p><span class="cls0">H. Nothing in this act shall authorize a person to create a spendthrift trust or other inalienable interest for his own benefit. The interest of the trustor as a beneficiary of any trust shall be freely alienable and subject to the claims of his creditors.&nbsp;</span></p> <p><span class="cls0">I. The provisions of this section may be enforced only by an action in a court of competent jurisdiction and the obligor beneficiary shall be a party defendant in such action. The trustee shall not be required to recognize any of the obligations provided for in this section or to withhold any income from the beneficiary until said trustee has been served with summons or garnishment summons. Such action shall be governed by the rules of civil procedure under the laws of this state.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 257, &sect; 25. Amended by Laws 1994, c. 306, &sect; 2, eff. Sept. 1, 1994.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.26. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.27. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.28. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.29. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.30. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.31. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.32. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.33. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.34. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.35. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60-175.36. Repealed by Laws 1998, c. 115, &sect; 33, eff. Nov. 1, 1998.&nbsp;</span></p> <p><span class="cls0">&sect;60175.37. Death of trustee Appointment of successor.&nbsp;</span></p> <p><span class="cls0">Upon the death of a sole or surviving trustee of an express trust and in the absence of the trust providing for a practical method of appointment, the power to appoint a trustee shall vest in the court having jurisdiction thereof, and on petition of any person interested such court shall appoint a successor in whom the trust shall vest.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 262, &sect; 37. &nbsp;</span></p> <p><span class="cls0">&sect;60175.38. Resignation of trustee.&nbsp;</span></p> <p><span class="cls0">Upon petition of any trustee of an express trust, a court having jurisdiction may accept his resignation, and discharge him from the trust upon such terms as the rights of the persons interested in the execution of the trust may require.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 38. &nbsp;</span></p> <p><span class="cls0">&sect;60175.39. Removal of trustee Filling vacancies.&nbsp;</span></p> <p><span class="cls0">Trustees having violated or attempted to violate any express trust, or becoming incompetent or insolvent, or of whose solvency or that of their sureties there is reasonable doubt, or for other cause, in the discretion of the court having jurisdiction, may, on petition of any person interested, after hearing, be removed by such court and denied compensation in whole or in part; and any beneficiary, cotrustee, or successor may treat the violation as a breach of trust; and all vacancies in express trusteeships may be filled by such court.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 39. &nbsp;</span></p> <p><span class="cls0">&sect;60175.40. Rights, duties, etc. of trustees appointed by court.&nbsp;</span></p> <p><span class="cls0">Trustees appointed by the district courts of Oklahoma shall be vested with all the rights, powers, trusts, privileges, discretion and title to properties conferred upon the trustee by the trust instrument, and by statute, unless otherwise provided by the court in the order of appointment; and shall be charged with all the duties, responsibilities and liabilities enjoined by said trust instrument and by statute.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 40. &nbsp;</span></p> <p><span class="cls0">&sect;60175.41. Revocation of trust by trustor.&nbsp;</span></p> <p><span class="cls0">Every trust shall be revocable by the trustor, unless expressly made irrevocable by the terms of the instrument creating the same. Provided, that any trust may be revoked by the trustor upon the written consent of all living persons having vested or contingent interest therein. The term "contingent interest," as used in this section, shall include an interest which a beneficiary may take by purchase, and exclude any interest which a beneficiary may take by descent. Provided further that this section shall not apply to a spendthrift trust unless same is created by the trustor for his own benefit.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 41. &nbsp;</span></p> <p><span class="cls0">&sect;60175.42. Designation of person to whom property shall belong on failure or termination of trust Transfer subject to trust.&nbsp;</span></p> <p><span class="cls0">Notwithstanding anything contained in the last section, the trustor of a trust may, in its creation, prescribe to whom the real or personal property to which the trust relates shall belong, in the event of the failure or termination of the trust, and may transfer or devise such property, subject to the execution of the trust.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 42. &nbsp;</span></p> <p><span class="cls0">&sect;60175.43. Legal estate of grantee or devisee of property subject to trust.&nbsp;</span></p> <p><span class="cls0">The grantee or devisee of real or personal property subject to a trust acquires a legal estate in the property, against all persons except the trustees and those lawfully claiming under them.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 43. &nbsp;</span></p> <p><span class="cls0">&sect;60175.44. Estates remaining in trustor.&nbsp;</span></p> <p><span class="cls0">Where an express trust is created in relation to real or personal property, every estate not embraced in the trust, and not otherwise disposed of, is left in the trustor of the trust or his successors.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 44. &nbsp;</span></p> <p><span class="cls0">&sect;60175.45. Grant deemed absolute as to purchasers or encumbrances for value Notice of restrictions Intent of Legislature.&nbsp;</span></p> <p><span class="cls0">(a) Where an express trust is created in relation to real property; any grant, deed, conveyance, lease, easement, encumbrance, assignment, or release by the trustee with respect to such real property or interest therein shall be deemed authorized and binding upon the trust in favor of purchasers or encumbrances for value without either (i) actual notice of restrictions or limitations established by the trust upon the trustee, or (ii) the constructive notice as provided in subsection (b) hereof.&nbsp;</span></p> <p><span class="cls0">(b) If the instrument establishing the trust is recorded in the county where the real property is located, said purchasers or encumbrances for value shall be charged with constructive notice of the restrictions and limitations contained in such instrument.&nbsp;</span></p> <p><span class="cls0">(c) It is the intent of the Legislature that trusts are private instruments and it shall not be necessary to record the instrument establishing a trust unless the trustor desires to put the public on notice of restrictions or limitations upon the powers of the trustee, in which case the same must be recorded.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 263, &sect; 45; Laws 1979, c. 157, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60-175.47. Suspension of absolute power of alienation - Period of suspension.&nbsp;</span></p> <p><span class="cls0">A. Except as otherwise provided by this section, the absolute power of alienation of real and personal property, or either of them, shall not be suspended by any limitations or conditions whatever for a longer period than during the continuance of a life or lives of the beneficiaries in being at the creation of the estate and twenty-one (21) years thereafter.&nbsp;</span></p> <p><span class="cls0">B. The provisions of this section shall not apply when property is given, granted, bequeathed, or devised to:&nbsp;</span></p> <p><span class="cls0">1. A charitable use;&nbsp;</span></p> <p><span class="cls0">2. Literary, educational, scientific, religious, or charitable corporations for their sole use and benefit;&nbsp;</span></p> <p><span class="cls0">3. Any cemetery corporation, society or association;&nbsp;</span></p> <p><span class="cls0">4. The Department of Mental Health and Substance Abuse Services as provided in Section 1 of this act; or&nbsp;</span></p> <p><span class="cls0">5. Gifts absolute, limited, or in trust, for the advancement of medical science to an incorporated state society of physicians and surgeons.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1941, p. 264, &sect; 47. Amended by Laws 2003, c. 217, &sect; 6, eff. Nov. 1, 2003.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60175.48. Compensation or commissions of trustee.&nbsp;</span></p> <p><span class="cls0">A trustee acting in a fiduciary capacity, as herein authorized, is entitled to receive such compensation or commission as provided for in the trust agreement or other contract. If the amount of such compensation or commission is not regulated by or stipulated in the trust agreement, the trustee may charge and deduct a reasonable compensation or commission for the services rendered and the responsibilities assumed. Where the trustee is acting under appointment by a court, such compensation or commission shall be paid, irrespective of the provisions in the trust instrument, as allowed or approved by that court.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 264, &sect; 48. &nbsp;</span></p> <p><span class="cls0">&sect;60175.49. Trust ceases when purpose ceases.&nbsp;</span></p> <p><span class="cls0">When the purpose for which an express trust was created ceases, the estate of the trustee also ceases.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 265, &sect; 49. &nbsp;</span></p> <p><span class="cls0">&sect;60175.50. Repeals as reinstating common law rules.&nbsp;</span></p> <p><span class="cls0">The repeal of any section of the statutory law of this state by this act, which section abrogated or restated the commonlaw rule, shall operate to reinstate and reestablish the commonlaw rule applicable thereto, except as the subject matter thereof may be changed by the provisions of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 265, &sect; 50. &nbsp;</span></p> <p><span class="cls0">&sect;60175.51. Tax statutes to supersede act.&nbsp;</span></p> <p><span class="cls0">For the purposes of assessments and collection of taxes by the State of Oklahoma and its political subdivisions, the statutes of the State of Oklahoma relating to and governing taxation shall supersede the provisions of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 265, &sect; 51. &nbsp;</span></p> <p><span class="cls0">&sect;60175.53. Agreements, wills and trust relations to which statute applicable.&nbsp;</span></p> <p><span class="cls0">The terms of this act shall apply in the construction of, and operation under,&nbsp;</span></p> <p><span class="cls0">A. All agreements containing trust provisions entered into subsequent to the effective date hereof;&nbsp;</span></p> <p><span class="cls0">B. All wills made by testators who shall die subsequent to the effective date hereof; and&nbsp;</span></p> <p><span class="cls0">C. All other wills and trust agreements and trust relations in so far as such terms do not impair the obligation of contract or deprive persons of property without due process of law under the Constitution of the State of Oklahoma or the United States of America.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 265, &sect; 54. &nbsp;</span></p> <p><span class="cls0">&sect;60175.54. Situs in jurisdiction where trustee not qualified to act Powers of trustee.&nbsp;</span></p> <p><span class="cls0">A trustee, whether an individual or a corporation, shall have the power to appoint a natural or corporate trustee to act with respect to the portion of the trust estate that has situs in a jurisdiction in which the trustee is not qualified to act and shall have the power to remove each such appointee at any time with or without cause. Each such appointee shall: (1) have all of the powers granted in this act or under the trust instrument to the trustee with respect to the management of the trust estate, (2) transfer to the trustee as soon as practicable all gross receipts derived from the portion of the trust estate that remains under his control, and (3) be liable to the trustee for any wrongful act or mismanagement of the trust estate in the same manner that the trustee is liable to the beneficiaries.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 201, &sect; 1, eff. Oct. 1, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60-175.55. Investment of trust assets by bank, trust company or affiliate of bank or trust company.&nbsp;</span></p> <p><span class="cls0">A. A bank, trust company, or affiliate of a bank or trust company which serves as a fiduciary, trustee, custodian, managing agent, personal representative, or otherwise may invest and reinvest assets that it maintains in its trust department or trust company in the securities of any open-end or closed-end management investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C., Section 80a-1 through 80a-64, as amended.&nbsp;</span></p> <p><span class="cls0">B. Any investment or reinvestment made pursuant to subsection A of this section shall comply with the provisions of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">&nbsp;&nbsp;C. A bank, trust company or an affiliate of a bank or trust company which is providing services to an investment company or investment trust as investment adviser, sponsor, distributor, custodian, transfer agent, administrator, registrar, or otherwise and who is receiving reasonable remuneration for such services, may make investments and reinvestments pursuant to subsections A and B of this section in said investment company or investment trust.&nbsp;</span></p> <p><span class="cls0">D. Any bank, trust company or affiliate of a bank or trust company which makes investments or reinvestments pursuant to subsection C of this section:&nbsp;</span></p> <p><span class="cls0">1. Shall not be required to reduce or waive its fees or charges for services provided in connection with the investment and management of funds it holds as fiduciary, trustee, custodian, managing agent, personal representative, or otherwise because such funds are invested, reinvested, or retained in an investment company or investment trust so long as the total compensation paid, including any fees or charges payable by the investment company or investment trust in connection with the investment of such funds, is reasonable; and&nbsp;</span></p> <p><span class="cls0">2. May receive fees in accordance with Rule 12b-1 of the Investment Company Act of 1940, or similar fees, from the investment company or investment trust in the same amount that would be paid by such investment company or investment trust to any other party, without reducing or waiving other fees it receives for serving as a fiduciary, trustee, custodian, managing agent, personal representative or otherwise. Any fees received by a bank, trust company, or affiliate of a bank or trust company pursuant to this paragraph shall be disclosed to the customer of such bank, trust company, or affiliate of the bank or trust company.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 260, &sect; 35, operative July 1, 1990. Amended by Laws 1995, c. 351, &sect; 26, eff. Nov. 1, 1995; Laws 1997, c. 58, &sect; 1, eff. Nov. 1, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.56. Death of beneficiary before distribution - Distribution to beneficiary's lineal descendants.&nbsp;</span></p> <p><span class="cls0">When the declaration or agreement of an express trust provides for any of the property held in trust to be distributed to a beneficiary related by blood to the grantor or to a grantor of the trust, and the beneficiary is living at the time the trust is created but dies before the time for distribution of the trust leaving one or more lineal descendants who are living at the time for distribution of the trust, and no provision is made in the trust declaration or agreement for disposition of the property in the event that the beneficiary is not living at the time for distribution of the trust, the beneficiary's lineal descendants take the share of the trust property so given to the beneficiary in the trust declaration or agreement, by right of representation, in the same manner as the beneficiary would have done had he been living at the time for distribution of the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1993, c. 345, &sect; 15, eff. Sept. 1, 1993.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.57. Breach of trust &ndash; Remedies - Liability.&nbsp;</span></p> <p><span class="cls0">A. A violation by a trustee of a duty the trustee owes a beneficiary is a breach of trust.&nbsp;</span></p> <p><span class="cls0">B. To remedy a breach of trust that has occurred or may occur, the court may:&nbsp;</span></p> <p><span class="cls0">1. Compel the trustee to perform the trustee&rsquo;s duties;&nbsp;</span></p> <p><span class="cls0">2. Enjoin the trustee from committing a breach of trust;&nbsp;</span></p> <p><span class="cls0">3. Compel the trustee to redress a breach of trust by payment of money or otherwise;&nbsp;</span></p> <p><span class="cls0">4. Order a trustee to account;&nbsp;</span></p> <p><span class="cls0">5. Appoint a receiver or temporary trustee to take possession of the trust property and administer the trust;&nbsp;</span></p> <p><span class="cls0">6. Suspend or remove the trustee;&nbsp;</span></p> <p><span class="cls0">7. Reduce or deny compensation to the trustee;&nbsp;</span></p> <p><span class="cls0">8. Subject to subsection I of this section, void an act of the trustee, impose an equitable lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or&nbsp;</span></p> <p><span class="cls0">9. Grant any other appropriate remedy.&nbsp;</span></p> <p><span class="cls0">C. A beneficiary may charge a trustee who commits a breach of trust with the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred, or, if greater, the profit that the trustee made by reason of the breach.&nbsp;</span></p> <p><span class="cls0">D. In a judicial proceeding involving a trust, the court may in its discretion, as justice and equity may require, award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust which is the subject of the controversy.&nbsp;</span></p> <p><span class="cls0">E. 1. Unless previously barred by adjudication, consent, or other limitation, a claim against a trustee for breach of trust is barred as to a beneficiary who has received from the trustee a report or other statement adequately disclosing the existence of the claim unless:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;a judicial proceeding to assert the claim is commenced within two (2) years after receipt of the report or statement or, if no report or statement is received, within two (2) years after the termination of the trust relationship between the beneficiary and that particular trustee, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;the report or other statement informs the beneficiary of this time limitation.&nbsp;</span></p> <p><span class="cls0">A report or statement adequately discloses the existence of a claim if it provides sufficient information so that the beneficiary knows of the claim or reasonably should have inquired into its existence. A claim this barred does not include an action to recover for fraud or misrepresentation related to the report or other statement.&nbsp;</span></p> <p><span class="cls0">2. For the purpose of paragraph 1 of this subsection, a beneficiary is deemed to have received a report or other statement:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;in the case of an adult, if it is received by the adult personally, or if the adult lacks capacity, if it is received by the adult&rsquo;s conservator, guardian, or agent with authority, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;in the case of a minor, if it is received by the minor&rsquo;s guardian or conservator or, if the minor does not have a guardian or conservator, if it is received by a parent of the minor who does not have a conflict of interest.&nbsp;</span></p> <p><span class="cls0">3. Except as otherwise provided by the terms of a trust, while the trust is revocable and the settlor has capacity to revoke, the rights of the beneficiaries are held by, and the duties of the trustee are owed exclusively to the settlor; the rights to be held by and owed to the beneficiaries arise only upon the settlor&rsquo;s death or incapacity. The trustee may follow a written direction of the settlor, even if contrary to the terms of the trust. The holder of a presently exercisable power of withdrawal or a testamentary general power of appointment has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.&nbsp;</span></p> <p><span class="cls0">F. 1. A term of the trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;relieves a trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interest of the beneficiaries, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.&nbsp;</span></p> <p><span class="cls0">2. An exculpatory term drafted by or on behalf of the trustee is presumed to have been inserted as a result of an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.&nbsp;</span></p> <p><span class="cls0">G. A beneficiary may not hold a trustee liable for a breach of trust if the beneficiary, while having capacity, consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:&nbsp;</span></p> <p><span class="cls0">1. The beneficiary at the time of the consent, release, or ratification did not know of the beneficiary&rsquo;s rights and of the material facts that the trustee knew, or with the exercise of reasonable inquiry, the beneficiary should have known, and that the trustee did not reasonably believe that the beneficiary knew; or&nbsp;</span></p> <p><span class="cls0">2. The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee.&nbsp;</span></p> <p><span class="cls0">H. 1. Except as otherwise agreed, a trustee is not personally liable on a contract properly entered into in the trustee&rsquo;s fiduciary capacity in the course of administration of the trust if the trustee in the contract discloses the fiduciary capacity.&nbsp;</span></p> <p><span class="cls0">2. A trustee is personally liable for obligations arising from ownership or control of trust property, or for torts committed in the course of administering a trust, only if the trustee is personally at fault, whether negligently or intentionally.&nbsp;</span></p> <p><span class="cls0">3. A trustee who does not join in exercising a power held by three or more trustees is not liable to third persons for the consequences of the exercise of the power. A dissenting trustee who joins in an action at the direction of the majority cotrustees is not liable to third persons for the action if the dissenting trustee expressed the dissent in writing to any other cotrustee at or before the time the action was taken.&nbsp;</span></p> <p><span class="cls0">4. A claim based on a contract entered into by a trustee in the trustee&rsquo;s fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted against the trust in a judicial proceeding against the trustee in the trustee&rsquo;s fiduciary capacity, whether or not the trustee is personally liable on the claim.&nbsp;</span></p> <p><span class="cls0">I. 1. A person who in good faith assists a trustee or who in good faith and for value deals with a trustee without knowledge that the trustee is exceeding or improperly exercising the trustee&rsquo;s powers is protected from liability as if the trustee properly exercised the power.&nbsp;</span></p> <p><span class="cls0">2. Dealing in good faith with another person with knowledge that the other person is a trustee does not place a third person on notice to inquire into the extent of the trustee's powers or the propriety of their exercise.&nbsp;</span></p> <p><span class="cls0">3. A person who in good faith deals with another person with knowledge that the other person is a trustee is not solely on that account placed on notice to inquire into the extent of the trustee&rsquo;s powers or the propriety of their exercise or to see to the proper application of assets of the trust paid or delivered to a trustee.&nbsp;</span></p> <p><span class="cls0">4. A person who in good faith assists a former trustee or who for value and in good faith deals with a former trustee without knowledge that the person is no longer a trustee is protected from liability as if the former trustee were still a trustee.&nbsp;</span></p> <p><span class="cls0">5. The protection provided by this section to persons assisting or dealing with a trustee is secondary to that provided under comparable provisions of other laws relating to commercial transactions or to the transfer of securities by fiduciaries.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 419, &sect; 1, emerg. eff. June 10, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.60. Short title.&nbsp;</span></p> <p><span class="cls0">Short Title.&nbsp;</span></p> <p><span class="cls0">Sections 1 through 13 of this act shall be known and may be cited as the "Oklahoma Uniform Prudent Investor Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 1, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.61. Prudent investor rule.&nbsp;</span></p> <p><span class="cls0">Prudent Investor Rule.&nbsp;</span></p> <p><span class="cls0">A. Except as otherwise provided in subsection B of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">B. The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 2, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.62. Standard of care - Portfolio strategy - Risk and return objectives.&nbsp;</span></p> <p><span class="cls0">Standard of Care; Portfolio Strategy; Risk and Return Objectives.&nbsp;</span></p> <p><span class="cls0">A. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.&nbsp;</span></p> <p><span class="cls0">B. A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.&nbsp;</span></p> <p><span class="cls0">C. Among circumstances that a trustee shall consider in investing and managing trust assets are those of the following as are relevant to the trust or its beneficiaries:&nbsp;</span></p> <p><span class="cls0">1. General economic conditions;&nbsp;</span></p> <p><span class="cls0">2. The possible effect of inflation or deflation;&nbsp;</span></p> <p><span class="cls0">3. The expected tax consequences of investment decisions or strategies;&nbsp;</span></p> <p><span class="cls0">4. The role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;&nbsp;</span></p> <p><span class="cls0">5. The expected total return from income and the appreciation of capital;&nbsp;</span></p> <p><span class="cls0">6. Other resources of the beneficiaries;&nbsp;</span></p> <p><span class="cls0">7. Needs for liquidity, regularity of income, and preservation or appreciation of capital; and&nbsp;</span></p> <p><span class="cls0">8. An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.&nbsp;</span></p> <p><span class="cls0">D. A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.&nbsp;</span></p> <p><span class="cls0">E. A trustee may invest in any kind of property or type of investment consistent with the standards of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">F. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 3, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.63. Diversification.&nbsp;</span></p> <p><span class="cls0">Diversification.&nbsp;</span></p> <p><span class="cls0">A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 4, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.64. Duties at inception of trusteeship.&nbsp;</span></p> <p><span class="cls0">Duties at Inception of Trusteeship.&nbsp;</span></p> <p><span class="cls0">Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust and with the requirements of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 5, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.65. Loyalty.&nbsp;</span></p> <p><span class="cls0">Loyalty.&nbsp;</span></p> <p><span class="cls0">A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351,.&sect; 6, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.66. Impartiality.&nbsp;</span></p> <p><span class="cls0">Impartiality.&nbsp;</span></p> <p><span class="cls0">If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 7, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.67. Investment costs.&nbsp;</span></p> <p><span class="cls0">Investment Costs.&nbsp;</span></p> <p><span class="cls0">In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 8, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.68. Reviewing compliance.&nbsp;</span></p> <p><span class="cls0">Reviewing Compliance.&nbsp;</span></p> <p><span class="cls0">Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 9, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.69. Delegation of investment and management functions.&nbsp;</span></p> <p><span class="cls0">Delegation of Investment and Management Functions.&nbsp;</span></p> <p><span class="cls0">A. A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:&nbsp;</span></p> <p><span class="cls0">1. Selecting an agent;&nbsp;</span></p> <p><span class="cls0">2. Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and&nbsp;</span></p> <p><span class="cls0">3. Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.&nbsp;</span></p> <p><span class="cls0">B. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.&nbsp;</span></p> <p><span class="cls0">C. A trustee who complies with the requirements of subsection A of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.&nbsp;</span></p> <p><span class="cls0">D. By accepting the delegation of a trust function from the trustee of a trust that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 10, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.70. Language invoking standard of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">Language Invoking Standard of the Oklahoma Uniform Prudent Investor Act.&nbsp;</span></p> <p><span class="cls0">The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under the Oklahoma Uniform Prudent Investor Act: "Investments permissible by law for investment of trust funds", "legal investments", "authorized investments", "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital", "prudent man rule", "prudent trustee rule", "prudent person rule", and "prudent investor rule".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 11, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.71. Application to existing trusts.&nbsp;</span></p> <p><span class="cls0">Application to Existing Trusts.&nbsp;</span></p> <p><span class="cls0">The Oklahoma Uniform Prudent Investor Act applies to trusts existing on and created after its effective date. As applied to trusts existing on its effective date, this act governs only decisions or actions occurring after that date.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 12, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.72. Uniformity of application and construction.&nbsp;</span></p> <p><span class="cls0">Uniformity of Application and Construction.&nbsp;</span></p> <p><span class="cls0">The Oklahoma Uniform Prudent Investor Act shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this act among the states enacting it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1995, c. 351, &sect; 13, eff. Nov. 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.81. Oklahoma Discretionary and Special Needs Trust Act.&nbsp;</span></p> <p><span class="cls0">This act shall be known and may be cited as the &ldquo;Oklahoma Discretionary and Special Needs Trust Act&rdquo;.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 1, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.82. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in the Oklahoma Discretionary and Special Needs Trust Act:&nbsp;</span></p> <p><span class="cls0">1. &ldquo;Beneficial interest&rdquo; means a distribution interest or a remainder interest, and excludes a power of appointment or a power reserved by the settlor;&nbsp;</span></p> <p><span class="cls0">2. "Beneficiary" means a person who has a present or future beneficial interest in a trust, vested or contingent. However, the holder of a power of appointment shall not be considered a beneficiary;&nbsp;</span></p> <p><span class="cls0">3. &ldquo;Child&rdquo; means any person for whom an order or judgment for child support has been entered in this state or another state;&nbsp;</span></p> <p><span class="cls0">4. &ldquo;Current distribution interest&rdquo; means a distribution interest where on the date of qualification the beneficiary is an eligible distributee or permissible distributee of trust income or principal;&nbsp;</span></p> <p><span class="cls0">5. &ldquo;Discretionary interest&rdquo; means any interest for which a trustee has discretion to make or withhold a distribution. A discretionary interest includes permissive language such as &ldquo;may make distributions&rdquo; or it may include mandatory language that is inconsistent with the intent of the settlor to create a discretionary trust, such as &ldquo;The trustee shall make distributions in the sole and absolute discretion of the trustee&rdquo;;&nbsp;</span></p> <p><span class="cls0">6. &ldquo;Distribution interest&rdquo; means a beneficiary&rsquo;s equitable interest to enforce the distribution terms of the trust subject to the judicial review standard. A distribution interest is classified as a mandatory interest, a support interest, a discretionary interest, or a combination of any such interests. A distribution interest includes both current distribution interests and future distribution interests;&nbsp;</span></p> <p><span class="cls0">7. &ldquo;Exception creditor&rdquo; means a child of a beneficiary who has a judgment or court order against the beneficiary for support;&nbsp;</span></p> <p><span class="cls0">8. &ldquo;Future distribution interest&rdquo; means all distribution interests other than a current distribution interest;&nbsp;</span></p> <p><span class="cls0">9. &ldquo;Mandatory interest&rdquo; means a distribution interest for which the trustee has no discretion in determining whether the distribution shall be made, or the amount or timing of the distribution;&nbsp;</span></p> <p><span class="cls0">10. &ldquo;Power of appointment&rdquo; means an inter vivos or testamentary power to direct the disposition of trust property, other than a distribution decision by a trustee to a beneficiary. Powers of appointment are held by donees, not the settlor. A power of appointment includes any right or power granted by statute to any person other than the settlor;&nbsp;</span></p> <p><span class="cls0">11. &ldquo;Remainder interest&rdquo; means an interest for which a trust beneficiary will receive the property outright in the future;&nbsp;</span></p> <p><span class="cls0">12. &ldquo;Reserved power&rdquo; means a power held by the settlor; &nbsp;</span></p> <p><span class="cls0">13. &ldquo;Special Needs Trust&rdquo; means a trust created for the partial or exclusive benefit of a disabled or incapacitated person, in order to allow the disabled or incapacitated beneficiary to avoid loss of eligibility for government benefit programs, including, but not limited to, Medicaid, Supplemental Security Income, Social Security Disability Income or other state or federal benefit programs; and&nbsp;</span></p> <p><span class="cls0">14. &ldquo;Support interest&rdquo; means any interest which is not a mandatory interest or a discretionary interest. A support interest shall include mandatory language such as &ldquo;shall make distributions&rdquo; and be coupled with a standard capable of judicial interpretation, such as an &ldquo;ascertainable standard&rdquo; as defined in Internal Revenue Code (IRC) Section 2041.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 2, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.83. Applicable provisions for trusts created or modified after November 1, 2010.&nbsp;</span></p> <p><span class="cls0">The following provisions apply to all trusts created or modified from and after November 1, 2010, regardless of whether a spendthrift provision is included in a trust:&nbsp;</span></p> <p><span class="cls0">1. A distribution interest shall not be judicially sold. A distribution interest in a trust includes, but is not limited to, a current distribution interest, future distribution interest or income interest;&nbsp;</span></p> <p><span class="cls0">2. A remainder interest, power of appointment or a reserved power in a trust shall not be judicially sold;&nbsp;</span></p> <p><span class="cls0">3. Except as to a settlor who is also a trustee of a revocable trust, trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt;&nbsp;</span></p> <p><span class="cls0">4. A beneficiary of a trust has an equitable interest in the trust to bring an action against the trustee to enforce the terms of the trust subject to the judicial review standard set forth in paragraph 4 of Section 9 of this act; and&nbsp;</span></p> <p><span class="cls0">5. Subject to the provisions of the Uniform Fraudulent Transfer Act, the Oklahoma Discretionary and Special Needs Trust Act provides for the sole and exclusive remedies that are available to a creditor or other nonbeneficiary claiming an interest in the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 3, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.84. Applicable provisions for trusts created pursuant to Oklahoma Discretionary and Special Needs Trust Act.&nbsp;</span></p> <p><span class="cls0">The following provisions apply to all trusts created pursuant to the Oklahoma Discretionary and Special Needs Trust Act:&nbsp;</span></p> <p><span class="cls0">1. A creditor shall not attach, exercise, or otherwise reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee. Further, this power is personal to the beneficiary and may not be exercised by the creditors of the beneficiary, nor may a court direct any person to exercise this power;&nbsp;</span></p> <p><span class="cls0">2. A creditor shall not reach an interest of a beneficiary nor otherwise compel a distribution because the beneficiary is then serving as a trustee or a cotrustee;&nbsp;</span></p> <p><span class="cls0">3. If a party challenges a settlor or the influence of a beneficiary over a trust, the following factors, alone or in combination, shall not be considered dominion and control over a trust:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;a beneficiary serving as a trustee or a cotrustee as described in paragraph 2 of this section,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;the settlor or a beneficiary holds an unrestricted power to remove or replace a trustee,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;the settlor or a beneficiary, as provided in the applicable trust instrument, is:&nbsp;</span></p> <p class="cls4"><span class="cls0">(1)&nbsp;&nbsp;a trust administrator,&nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;a trust protector,&nbsp;</span></p> <p class="cls4"><span class="cls0">(3)&nbsp;&nbsp;a special trustee, or&nbsp;</span></p> <p class="cls4"><span class="cls0">(4)&nbsp;&nbsp;a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or any other managerial function of any other type of entity, and part or all of the trust property consists of an interest in said entity,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;a person related by blood or adoption to a settlor or a beneficiary is appointed as trustee, or&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;an accountant of a settlor or a beneficiary, attorney, financial advisor, business associate, or a friend is appointed as trustee; and&nbsp;</span></p> <p><span class="cls0">4. The settlor or any beneficiary shall not be deemed to be the alter ego of a trustee. The following factors, alone or in combination, shall not be sufficient evidence for a court to conclude that the settlor controls a trustee or is the alter ego of a trustee:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;any combination of the factors listed in paragraph 3 of this section,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;occasional occurrences in which the settlor or a beneficiary may have signed checks, made disbursements or executed other documents related to the trust as a trustee, when in fact the settlor or a beneficiary was not a trustee,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;making requests for distributions on behalf of beneficiaries, or&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;making requests to the trustee to hold, purchase, or sell any trust property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 4, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.85. Spendthrift provision.&nbsp;</span></p> <p><span class="cls0">A. A spendthrift provision is valid if it restrains either the voluntary or involuntary transfer of a beneficiary&rsquo;s interest. If the applicable trust instrument so provides, a spendthrift provision may permit the voluntary transfer of an interest of a beneficiary even if the transfer is subject to the approval by the trustee if the trustee is not also the transferring beneficiary. The trustee may honor a transfer even if the transfer violates a spendthrift provision. The trustee shall not be liable to either the beneficiary or the assignee whether or not the trustee honors the transfer.&nbsp;</span></p> <p><span class="cls0">B. If a trust provides that the interest of a beneficiary is held subject to a spendthrift provision, or words of similar import, it shall restrain both the voluntary or involuntary transfer of the interest of the beneficiary.&nbsp;</span></p> <p><span class="cls0">C. Except for an exception creditor of a support interest under paragraph 4 of Section 8 of this act, if a trust contains a spendthrift provision, a creditor or assignee of the beneficiary may not reach an interest in a trust or a distribution by the trustee until such distribution is received by the beneficiary.&nbsp;</span></p> <p><span class="cls0">D. A creditor shall wait until a distribution is received by a beneficiary before attachment; provided, however, an exception creditor may attach current and future distributions at the trust level.&nbsp;</span></p> <p><span class="cls0">E. A spendthrift provision applies to both current distribution interests, future distribution interests, and remainder interests.&nbsp;</span></p> <p><span class="cls0">F. A power of appointment in any trust is personal in nature and cannot be attached or forced to be exercised by a creditor or a court regardless of the presence of a spendthrift provision. A power of appointment is not a property interest.&nbsp;</span></p> <p><span class="cls0">G. A reserved power is not protected by a spendthrift provision. If a reserved power does not constitute a power of withdrawal for the settlor to withdraw income or principal, the holder of a reserved power may exercise the power in the sole and absolute discretion of the holder unencumbered by any court.&nbsp;</span></p> <p><span class="cls0">H. A spendthrift provision is a material provision of a trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 5, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.86. Distribution interest - Mandatory, support, and discretionary interests.&nbsp;</span></p> <p><span class="cls0">A. A distribution interest in a trust shall be classified as a mandatory interest, a support interest or a discretionary interest.&nbsp;</span></p> <p><span class="cls0">B. A beneficiary may concurrently hold a mandatory interest, support interest or discretionary interest. To the extent a trust contains a combination of a discretionary interest, a support interest or a mandatory interest, the trust shall be a mandatory interest only to the extent of the mandatory language and a support interest only to the extent of the support language. The remaining trust property shall be held as a discretionary interest.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 6, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.87. Creditor attachment of mandatory distributions.&nbsp;</span></p> <p><span class="cls0">A. If a trust created on or after November 1, 2010, contains a spendthrift provision, a creditor shall not attach present and future mandatory distributions from the trust. A creditor shall wait until a distribution is received by a beneficiary before attachment. However, an exception creditor may attach present and future mandatory distributions for child support.&nbsp;</span></p> <p><span class="cls0">B. If a trust does not contain a spendthrift provision, a creditor may attach present and future mandatory distributions from the trust at the trust level.&nbsp;</span></p> <p><span class="cls0">C. A beneficiary holding a mandatory distribution interest may enforce the interest. A court may review the distribution discretion of a trustee if the trustee acts beyond the bounds of reasonableness.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 7, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.88. Applicable trust provisions for beneficiaries holding support interests.&nbsp;</span></p> <p><span class="cls0">The following provisions apply only to trusts with one or more beneficiaries holding support interests:&nbsp;</span></p> <p><span class="cls0">1. The fact that a court would have exercised the distribution power under a support interest differently than the trustee is not sufficient reason for interfering with the exercise of the distribution power by the trustee. However, a court may review the distribution discretion of a trustee if the trustee acts beyond the bounds of reasonableness;&nbsp;</span></p> <p><span class="cls0">2. A support interest relies on spendthrift provisions for protection of a beneficial interest as well as the additional protection provided by protective or restrictive distribution language under Section 10 of this act;&nbsp;</span></p> <p><span class="cls0">3. The only exception creditor under the Oklahoma Discretionary and Special Needs Trust Act is a child of a beneficiary who has a judgment or court order against the beneficiary for support;&nbsp;</span></p> <p><span class="cls0">4. As provided by the Oklahoma Discretionary and Special Needs Trust Act, the sole and exclusive remedy of an exception creditor is the attachment of the beneficiary&rsquo;s support interest at the trust level. The court may limit the amount subject to attachment as appropriate under the circumstances to provide for the needs of the beneficiary and the family of the beneficiary; and&nbsp;</span></p> <p><span class="cls0">5. A beneficiary holding a support interest has an enforceable right to a distribution pursuant to a court review. This does not raise the interest of the beneficiary to the level of a property interest.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 8, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.89. Applicable trust provisions for beneficiaries holding discretionary interests.&nbsp;</span></p> <p><span class="cls0">The following provisions apply only to trusts with one or more beneficiaries holding discretionary interests:&nbsp;</span></p> <p><span class="cls0">1. A discretionary interest is neither a property interest nor an enforceable right to a distribution; it is a mere expectancy; provided, however, a beneficiary holding a discretionary interest has an equitable interest to bring an action against the trustee within the judicial review standard of paragraph 4 of this section. No creditor, regardless of whether the Oklahoma Discretionary and Special Needs Trust Act provides for any exception creditors, shall attach, require the trustee to exercise the trustee&rsquo;s discretion to make a distribution, or cause a court to judicially sell a discretionary interest;&nbsp;</span></p> <p><span class="cls0">2. Regardless of whether a beneficiary has any outstanding creditor, a trustee may directly pay any expense on behalf of the beneficiary and may exhaust the income and principal of the trust for the benefit of the beneficiary. A trustee shall not be liable to any creditor or beneficiary for paying the expenses of a beneficiary;&nbsp;</span></p> <p><span class="cls0">3. A creditor, including an exception creditor, of a beneficiary has no greater rights in a discretionary interest than a beneficiary, and shall not compel a distribution that is subject to the discretion of the trustee, nor may a court order a distribution;&nbsp;</span></p> <p><span class="cls0">4. A court may review a distribution discretion of a trustee only if it is proved by clear and convincing evidence that the trustee:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;acts dishonestly,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;acts with an improper motive, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;fails to act.&nbsp;</span></p> <p><span class="cls0">The sole factor not to make a distribution does not constitute a failure to act. There is no standard of reasonableness under the above review standard;&nbsp;</span></p> <p><span class="cls0">5. In addition to any limitations of rights of creditors, if the trust contains a spendthrift provision, a current interest in a discretionary trust also receives the benefits of any spendthrift protection; and&nbsp;</span></p> <p><span class="cls0">6. Absent express language to the contrary, in the event that the distribution language permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the discretion of the trustee.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 9, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.90. Attachment of present or future distributions - Restrictions limiting distribution powers.&nbsp;</span></p> <p><span class="cls0">A. A trustee may only make distributions for the purposes designated by the settlor. A creditor, including an exception creditor, has no greater rights than a beneficiary. In this respect, a creditor, including an exception creditor, cannot attach present or future distributions if the claim of the creditor does not come within the distribution standard.&nbsp;</span></p> <p><span class="cls0">B. A restriction limiting the distribution powers of a trustee as to a trustee, which distribution might result in the loss of a beneficiary&rsquo;s eligibility for participation in a federal or state benefits program, including, but not limited to, Medicaid, Supplemental Security Income, Social Security Disability Income, or other state or federal benefits program is valid, and no creditor, including an exception creditor, may attach present or future distributions from such a trust. All other restrictions curtailing the distribution power of a trustee are void as to exception creditors, if any exception creditors are provided by the Oklahoma Discretionary and Special Needs Trust Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 10, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.91. Validity of trust provisions.&nbsp;</span></p> <p><span class="cls0">A. A provision which provides that a current distribution interest shall either become a discretionary interest or shall terminate upon the attachment by a creditor, including an exception creditor, is valid.&nbsp;</span></p> <p><span class="cls0">B. A provision that provides a remainder interest shall terminate or change into a dynasty interest upon attachment by a creditor, including an exception creditor, is valid.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 11, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.92. Existence of a spendthrift provision - Amount the creditor or assignee may reach.&nbsp;</span></p> <p><span class="cls0">Subject to the provisions of the Family Wealth Preservation Trust Act: &nbsp;</span></p> <p><span class="cls0">1. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;during the lifetime of the settlor, the property of a revocable trust is subject to the claims of the creditors of the settlor, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;a spendthrift provision is ineffective with respect to the settlor of a revocable trust while the trust is revocable; and&nbsp;</span></p> <p><span class="cls0">2. A creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the benefit of the settlor. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the interest of the settlor in the portion of the trust attributable to the contribution of that settlor.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 280, &sect; 12, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.101. Short title.&nbsp;</span></p> <p class="cls2"><span class="cls0">SHORT TITLE&nbsp;</span></p> <p><span class="cls0">This act shall be known and may be cited as the "Oklahoma Uniform Principal and Income Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 1, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.102. Definitions.&nbsp;</span></p> <p class="cls2"><span class="cls0">DEFINITIONS&nbsp;</span></p> <p><span class="cls0">As used in this act:&nbsp;</span></p> <p><span class="cls0">1. "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends;&nbsp;</span></p> <p><span class="cls0">2. "Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary;&nbsp;</span></p> <p><span class="cls0">3. "Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function;&nbsp;</span></p> <p><span class="cls0">4. "Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Article 4 of this act;&nbsp;</span></p> <p><span class="cls0">5. "Income beneficiary" means a person to whom net income of a trust is or may be payable;&nbsp;</span></p> <p><span class="cls0">6. "Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion;&nbsp;</span></p> <p><span class="cls0">7. "Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute;&nbsp;</span></p> <p><span class="cls0">8. "Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this act to or from income during the period;&nbsp;</span></p> <p><span class="cls0">9. "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity;&nbsp;</span></p> <p><span class="cls0">10. "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates;&nbsp;</span></p> <p><span class="cls0">11. "Remainder beneficiary" means a person entitled to receive principal when an income interest ends;&nbsp;</span></p> <p><span class="cls0">12. "Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct; and&nbsp;</span></p> <p><span class="cls0">13. "Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 2, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.103. Fiduciary duties - General principles.&nbsp;</span></p> <p class="cls2"><span class="cls0">FIDUCIARY DUTIES; GENERAL PRINCIPLES&nbsp;</span></p> <p><span class="cls0">A. In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Articles 2 and 3 of this act, a fiduciary:&nbsp;</span></p> <p><span class="cls0">1. Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this act;&nbsp;</span></p> <p><span class="cls0">2. May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this act;&nbsp;</span></p> <p><span class="cls0">3. Shall administer a trust or estate in accordance with this act if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and&nbsp;</span></p> <p><span class="cls0">4. Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this act do not provide a rule for allocating the receipt or disbursement to or between principal and income.&nbsp;</span></p> <p><span class="cls0">B. In exercising the power to adjust under subsection A of Section 4 of this act or a discretionary power of administration regarding a matter within the scope of this act, whether granted by the terms of a trust, a will, or this act, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this act is presumed to be fair and reasonable to all of the beneficiaries.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 3, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.104. Trustee's power to adjust.&nbsp;</span></p> <p class="cls2"><span class="cls0">TRUSTEE'S POWER TO ADJUST&nbsp;</span></p> <p><span class="cls0">A. A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income, and the trustee determines, after applying the rules in subsection A of Section 175.103 of Title 60 of the Oklahoma Statutes, that the trustee is unable to comply with subsection B of Section 175.103 of Title 60 of the Oklahoma Statutes.&nbsp;</span></p> <p><span class="cls0">B. In deciding whether and to what extent to exercise the power conferred by subsection A of this section, a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:&nbsp;</span></p> <p><span class="cls0">1. The nature, purpose, and expected duration of the trust;&nbsp;</span></p> <p><span class="cls0">2. The intent of the settlor;&nbsp;</span></p> <p><span class="cls0">3. The identity and circumstances of the beneficiaries;&nbsp;</span></p> <p><span class="cls0">4. The needs for liquidity, regularity of income, and preservation and appreciation of capital;&nbsp;</span></p> <p><span class="cls0">5. The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;&nbsp;</span></p> <p><span class="cls0">6. The net amount allocated to income under the other sections of this act and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;&nbsp;</span></p> <p><span class="cls0">7. Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;&nbsp;</span></p> <p><span class="cls0">8. The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and&nbsp;</span></p> <p><span class="cls0">9. The anticipated tax consequences of an adjustment.&nbsp;</span></p> <p><span class="cls0">C. A trustee may not make an adjustment:&nbsp;</span></p> <p><span class="cls0">1. That diminishes the income interest in a trust that requires all of the income to be paid at least annually to a spouse and for which an estate tax or gift tax marital deduction would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;&nbsp;</span></p> <p><span class="cls0">2. That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;&nbsp;</span></p> <p><span class="cls0">3. That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;&nbsp;</span></p> <p><span class="cls0">4. From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside;&nbsp;</span></p> <p><span class="cls0">5. If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;&nbsp;</span></p> <p><span class="cls0">6. If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;&nbsp;</span></p> <p><span class="cls0">7. If the trustee is a beneficiary of the trust (except where the trustee is a charitable, religious or educational organization recognized as tax exempt under Section 501(c)(3) of the Internal Revenue Code and as a beneficiary will hold the beneficial interest as an institutional endowment fund as that term is defined in the Oklahoma Uniform Management of Institutional Endowment Funds Act solely for the benefit of one or more other charitable, religious or educational organizations recognized as tax exempt under Section 501(c)(3) of the Internal Revenue Code); or&nbsp;</span></p> <p><span class="cls0">8. If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.&nbsp;</span></p> <p><span class="cls0">D. If paragraph 5, 6, 7, or 8 of subsection C of this section applies to a trustee and there is more than one trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.&nbsp;</span></p> <p><span class="cls0">E. A trustee may release the entire power conferred by subsection A of this section or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in paragraphs 1 through 6 or 8 of subsection C of this section or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection C of this section. The release may be permanent or for a specified period, including a period measured by the life of an individual.&nbsp;</span></p> <p><span class="cls0">F. Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection A of this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 4, eff. Nov. 1, 1998. Amended by Laws 1998, c. 422, &sect; 36, eff. Nov. 1, 1998; Laws 1999, c. 91, &sect; 1, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.201. Determination and distribution of net income.&nbsp;</span></p> <p class="cls2"><span class="cls0">DETERMINATION AND DISTRIBUTION OF NET INCOME&nbsp;</span></p> <p><span class="cls0">After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply:&nbsp;</span></p> <p><span class="cls0">1. A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in Articles 3 through 5 of this act which apply to trustees and the rules in paragraph 5 of this section. The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;&nbsp;</span></p> <p><span class="cls0">2. A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in Articles 3 through 5 of this act which apply to trustees and by:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;including in net income all income from property used to discharge liabilities,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes, but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction, and&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law;&nbsp;</span></p> <p><span class="cls0">3. A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under paragraph 2 of this section or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will;&nbsp;</span></p> <p><span class="cls0">4. A fiduciary shall distribute the net income remaining after distributions required by paragraph 3 of this section in the manner described in Section 6 of this act to all other beneficiaries, including a beneficiary who receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust;&nbsp;</span></p> <p><span class="cls0">5. A fiduciary may not reduce principal or income receipts from property described in paragraph 1 of this section because of a payment described in Section 25 or 26 of this act to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 5, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.202. Distribution to residuary and remainder beneficiaries.&nbsp;</span></p> <p class="cls2"><span class="cls0">DISTRIBUTION TO RESIDUARY AND REMAINDER BENEFICIARIES&nbsp;</span></p> <p><span class="cls0">A. Each beneficiary described in paragraph 4 of Section 175.201 of Title 60 of the Oklahoma Statutes is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.&nbsp;</span></p> <p><span class="cls0">B. In determining a beneficiary's share of net income, the following rules apply:&nbsp;</span></p> <p><span class="cls0">1. The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations;&nbsp;</span></p> <p><span class="cls0">2. The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust;&nbsp;</span></p> <p><span class="cls0">3. The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation; and&nbsp;</span></p> <p><span class="cls0">4. The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.&nbsp;</span></p> <p><span class="cls0">C. If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.&nbsp;</span></p> <p><span class="cls0">D. A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 6, eff. Nov. 1, 1998. Amended by Laws 1998, c. 422, &sect; 37, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.301. When right to income begins and ends.&nbsp;</span></p> <p class="cls2"><span class="cls0">WHEN RIGHT TO INCOME BEGINS AND ENDS&nbsp;</span></p> <p><span class="cls0">A. An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.&nbsp;</span></p> <p><span class="cls0">B. An asset becomes subject to a trust:&nbsp;</span></p> <p><span class="cls0">1. On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;&nbsp;</span></p> <p><span class="cls0">2. On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or&nbsp;</span></p> <p><span class="cls0">3. On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.&nbsp;</span></p> <p><span class="cls0">C. An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection D of this section, even if there is an intervening period of administration to wind up the preceding income interest.&nbsp;</span></p> <p><span class="cls0">D. An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 7, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.302. Apportionment of receipts and disbursements when decedent dies or income interest begins.&nbsp;</span></p> <p class="cls2"><span class="cls0">APPORTIONMENT OF RECEIPTS AND DISBURSEMENTS&nbsp;</span></p> <p class="cls2"><span class="cls0">WHEN DECEDENT DIES OR INCOME INTEREST BEGINS&nbsp;</span></p> <p><span class="cls0">A. A trustee shall allocate an income receipt or disbursement other than one to which paragraph 1 of Section 5 of this act applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.&nbsp;</span></p> <p><span class="cls0">B. A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.&nbsp;</span></p> <p><span class="cls0">C. An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this act. Distributions to shareholders or other owners from an entity to which Section 10 of this act applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 8, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.303. Apportionment when income interest ends.&nbsp;</span></p> <p class="cls2"><span class="cls0">APPORTIONMENT WHEN INCOME INTEREST ENDS&nbsp;</span></p> <p><span class="cls0">A. In this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.&nbsp;</span></p> <p><span class="cls0">B. When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent (5%) of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.&nbsp;</span></p> <p><span class="cls0">C. When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 9, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.401. Character of receipts.&nbsp;</span></p> <p class="cls2"><span class="cls0">CHARACTER OF RECEIPTS&nbsp;</span></p> <p><span class="cls0">A. In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which Section 11 of this act applies, a business or activity to which Section 12 of this act applies, or an asset-backed security to which Section 24 of this act applies.&nbsp;</span></p> <p><span class="cls0">B. Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.&nbsp;</span></p> <p><span class="cls0">C. A trustee shall allocate the following receipts from an entity to principal:&nbsp;</span></p> <p><span class="cls0">1. Property other than money;&nbsp;</span></p> <p><span class="cls0">2. Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;&nbsp;</span></p> <p><span class="cls0">3. Money received in total or partial liquidation of the entity; and&nbsp;</span></p> <p><span class="cls0">4. Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.&nbsp;</span></p> <p><span class="cls0">D. Money is received in partial liquidation:&nbsp;</span></p> <p><span class="cls0">1. To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or&nbsp;</span></p> <p><span class="cls0">2. If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.&nbsp;</span></p> <p><span class="cls0">E. Money is not received in partial liquidation, nor may it be taken into account under paragraph 2 of subsection D of this section, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.&nbsp;</span></p> <p><span class="cls0">F. A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 10, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.402. Distribution from trust or estate.&nbsp;</span></p> <p class="cls2"><span class="cls0">DISTRIBUTION FROM TRUST OR ESTATE&nbsp;</span></p> <p><span class="cls0">A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, Section 10 or 24 of this act applies to a receipt from the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 11, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.403. Business and other activities conducted by trustee.&nbsp;</span></p> <p class="cls2"><span class="cls0">BUSINESS AND OTHER ACTIVITIES CONDUCTED BY TRUSTEE&nbsp;</span></p> <p><span class="cls0">A. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.&nbsp;</span></p> <p><span class="cls0">B. A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.&nbsp;</span></p> <p><span class="cls0">C. Activities for which a trustee may maintain separate accounting records include:&nbsp;</span></p> <p><span class="cls0">1. Retail, manufacturing, service, and other traditional business activities;&nbsp;</span></p> <p><span class="cls0">2. Farming;&nbsp;</span></p> <p><span class="cls0">3. Raising and selling livestock and other animals;&nbsp;</span></p> <p><span class="cls0">4. Management of rental properties;&nbsp;</span></p> <p><span class="cls0">5. Extraction of minerals and other natural resources;&nbsp;</span></p> <p><span class="cls0">6. Timber operations; and&nbsp;</span></p> <p><span class="cls0">7. Activities to which Section 23 of this act applies.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 12, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.404. Principal receipts.&nbsp;</span></p> <p class="cls2"><span class="cls0">PRINCIPAL RECEIPTS&nbsp;</span></p> <p><span class="cls0">A trustee shall allocate to principal:&nbsp;</span></p> <p><span class="cls0">1. To the extent not allocated to income under this act, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;&nbsp;</span></p> <p><span class="cls0">2. Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;&nbsp;</span></p> <p><span class="cls0">3. Amounts recovered from third parties to reimburse the trust because of disbursements described in paragraph 7 of subsection A of Section 26 of this act or for other reasons to the extent not based on the loss of income;&nbsp;</span></p> <p><span class="cls0">4. Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;&nbsp;</span></p> <p><span class="cls0">5. Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and&nbsp;</span></p> <p><span class="cls0">6. Other receipts as provided in Part 3 of this article.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 13, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.405. Rental property.&nbsp;</span></p> <p class="cls2"><span class="cls0">RENTAL PROPERTY&nbsp;</span></p> <p><span class="cls0">To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 14, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.406. Obligation to pay money.&nbsp;</span></p> <p class="cls2"><span class="cls0">OBLIGATION TO PAY MONEY&nbsp;</span></p> <p><span class="cls0">A. An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.&nbsp;</span></p> <p><span class="cls0">B. A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation the purchase price or value of which when it is acquired is less than its value at maturity. If the obligation matures within one (1) year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.&nbsp;</span></p> <p><span class="cls0">C. This section does not apply to obligations to which Section 18, 19, 20, 21, 23, or 24 of this act applies.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 15, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.407. Insurance policies and similar contracts.&nbsp;</span></p> <p class="cls2"><span class="cls0">INSURANCE POLICIES AND SIMILAR CONTRACTS&nbsp;</span></p> <p><span class="cls0">A. Except as otherwise provided in subsection B of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.&nbsp;</span></p> <p><span class="cls0">B. A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to Section 12 of this act, loss of profits from a business.&nbsp;</span></p> <p><span class="cls0">C. This section does not apply to a contract to which Section 18 of this act applies.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 16, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.408. Insubstantial allocations not required.&nbsp;</span></p> <p class="cls2"><span class="cls0">INSUBSTANTIAL ALLOCATIONS NOT REQUIRED&nbsp;</span></p> <p><span class="cls0">If a trustee determines that an allocation between principal and income required by Section 18, 19, 20, 21, or 24 of this act is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in subsection C of Section 4 of this act applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in subsection D of Section 4 of this act and may be released for the reasons and in the manner described in subsection E of Section 4 of this act. An allocation is presumed to be insubstantial if:&nbsp;</span></p> <p><span class="cls0">1. The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or&nbsp;</span></p> <p><span class="cls0">2. The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 17, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.409. Deferred compensation, annuities, and similar payments.&nbsp;</span></p> <p class="cls2"><span class="cls0">DEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS&nbsp;</span></p> <p><span class="cls0">A. In this section:&nbsp;</span></p> <p><span class="cls0">1. &ldquo;Payment&rdquo; means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer. For purposes of subsections D, E, F, and G of this section, the term also includes any payment from any separate fund, regardless of the reason for the payment; and&nbsp;</span></p> <p><span class="cls0">2. &ldquo;Separate fund&rdquo; includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.&nbsp;</span></p> <p><span class="cls0">B. To the extent that a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment.&nbsp;</span></p> <p><span class="cls0">C. If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income ten percent (10%) of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection, a payment is not "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal.&nbsp;</span></p> <p><span class="cls0">D. Except as otherwise provided in subsection E of this section, subsections F and G of this section apply, and subsections B and C of this section do not apply in determining the allocation of a payment made from a separate fund to:&nbsp;</span></p> <p><span class="cls0">1. A trust to which an election to qualify for a marital deduction under Section 2056(b)(7) of the Internal Revenue Code of 1986, as amended, has been made; or&nbsp;</span></p> <p><span class="cls0">2. A trust that qualifies for the marital deduction under Section 2056(b)(5) of the Internal Revenue Code of 1986, as amended.&nbsp;</span></p> <p><span class="cls0">E. Subsections D, F, and G of this section do not apply if and to the extent that the series of payments would, without the application of subsection D of this section, qualify for the marital deduction under Section 2056(b)(7)(C) of the Internal Revenue Code of 1986, as amended.&nbsp;</span></p> <p><span class="cls0">F. A trustee shall determine the internal income of each separate fund for the accounting period as if the separate fund were a trust subject to the Oklahoma Uniform Principal and Income Act. Upon request of the surviving spouse, the trustee shall demand that the person administering the separate fund distribute the internal income to the trust. The trustee shall allocate a payment from the separate fund to income to the extent of the internal income of the separate fund and distribute that amount to the surviving spouse. The trustee shall allocate the balance of the payment to principal. Upon request of the surviving spouse, the trustee shall allocate principal to income to the extent the internal income of the separate fund exceeds payments made from the separate fund to the trust during the accounting period.&nbsp;</span></p> <p><span class="cls0">G. If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund shall be an amount of not less than three percent (3%) or more than four percent (4%) of the fund&rsquo;s value, as determined annually by the trustee in a manner that fulfills the trustee's duty of impartiality between the income and remainder beneficiaries, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund&rsquo;s value, the internal income of the fund is deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under Section 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the accounting period for which the computation is made.&nbsp;</span></p> <p><span class="cls0">H. This section does not apply to a payment to which Section 175.410 of this title applies.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 18, eff. Nov. 1, 1998. Amended by Laws 2009, c. 90, &sect; 1, eff. Nov. 1, 2009.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.410. Liquidating asset.&nbsp;</span></p> <p class="cls2"><span class="cls0">LIQUIDATING ASSET&nbsp;</span></p> <p><span class="cls0">A. In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one (1) year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to Section 18 of this act, resources subject to Section 20 of this act, timber subject to Section 21 of this act, an activity subject to Section 23 of this act, an asset subject to Section 24 of this act, or any asset for which the trustee establishes a reserve for depreciation under Section 27 of this act.&nbsp;</span></p> <p><span class="cls0">B. A trustee shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 19, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.411. Minerals, water, and other natural resources.&nbsp;</span></p> <p class="cls2"><span class="cls0">MINERALS, WATER, AND OTHER NATURAL RESOURCES&nbsp;</span></p> <p><span class="cls0">A. To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:&nbsp;</span></p> <p><span class="cls0">1. If received as a bonus, delay rental or annual rent on a lease, a receipt of less than One Thousand Dollars ($1,000.00) must be allocated to income and a receipt of One Thousand Dollars ($1,000.00) or more must be allocated fifteen percent (15%) to principal and eighty-five percent (85%) to income;&nbsp;</span></p> <p><span class="cls0">2. If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal;&nbsp;</span></p> <p><span class="cls0">3. If received as a royalty, shut-in-well payment, or take-or-pay payment, a receipt must be allocated fifteen percent (15%) to principal and eighty-five percent (85%) to income;&nbsp;</span></p> <p><span class="cls0">4. If an amount is received from a working interest or any other interest not provided for in paragraph 1, 2, or 3 of this subsection, a receipt must be allocated fifteen percent (15%) to principal and eighty-five percent (85%) to income.&nbsp;</span></p> <p><span class="cls0">B. An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, ninety percent (90%) of the amount must be allocated to principal and the balance to income.&nbsp;</span></p> <p><span class="cls0">C. This act applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.&nbsp;</span></p> <p><span class="cls0">D. If a trust exists on the effective date of this act, the trustee may allocate receipts from an interest in minerals, water, or other natural resources as provided in this act or in the manner used by the trustee before the effective date of this act. For every trust created after the effective date of this act, the trustee shall allocate receipts from an interest in minerals, water, or other natural resources as provided in this act. If and to the extent that the terms of a trust expressly provide for a different allocation of receipts or grants the trustee discretionary authority to determine the amount of the allocation, this act shall not apply to those receipts.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 20, eff. Nov. 1, 1998. Amended by Laws 1999, c. 419, &sect; 2, emerg. eff. June 10, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.412. Timber.&nbsp;</span></p> <p class="cls2"><span class="cls0">TIMBER&nbsp;</span></p> <p><span class="cls0">A. To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:&nbsp;</span></p> <p><span class="cls0">1. To income to the extent that the amount of timber removed from the land does not exceed the estimated rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;&nbsp;</span></p> <p><span class="cls0">2. To principal to the extent that the amount of timber removed from the land exceeds the estimated rate of growth of the timber or the net receipts are from the sale of standing timber;&nbsp;</span></p> <p><span class="cls0">3. To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs 1 and 2 of this subsection; or&nbsp;</span></p> <p><span class="cls0">4. To principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph 1, 2, or 3 of this subsection.&nbsp;</span></p> <p><span class="cls0">B. In determining net receipts to be allocated pursuant to subsection A of this section, a trustee may deduct and transfer to principal a reasonable amount for depletion.&nbsp;</span></p> <p><span class="cls0">C. This act applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.&nbsp;</span></p> <p><span class="cls0">D. If a trust exists on the effective date of this act, the trustee may allocate receipts from an interest in timber as provided in this act or in the manner used by the trustee before the effective date of this act. For every trust created after the effective date of this act, the trustee shall allocate receipts from an interest in timber as provided in this act. If and to the extent that the terms of a trust expressly provide for a different allocation of receipts or grants the trustee discretionary authority to determine the amount of the allocation, this act shall not apply to those receipts.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 21, eff. Nov. 1, 1998. Amended by Laws 1999, c. 419, &sect; 3, emerg. eff. June 10, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-175.413. Property not productive of income.&nbsp;</span></p> <p class="cls2"><span class="cls0">PROPERTY NOT PRODUCTIVE OF INCOME&nbsp;</span></p> <p><span class="cls0">A. If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under Section 175.104 of Title 60 of the Oklahoma Statutes and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by subsection A of Section 175.104 of Title 60 of the Oklahoma Statutes. The trustee may decide which action or combination of actions to take.&nbsp;</span></p> <p><span class="cls0">B. In cases not governed by subsection A of this section, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 22, eff. Nov. 1, 1998. Amended by Laws 1998, c. 422, &sect; 38, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.414. Derivatives and options.&nbsp;</span></p> <p class="cls2"><span class="cls0">DERIVATIVES AND OPTIONS&nbsp;</span></p> <p><span class="cls0">A. In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.&nbsp;</span></p> <p><span class="cls0">B. To the extent that a trustee accounts for transactions in derivatives pursuant to this section, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.&nbsp;</span></p> <p><span class="cls0">C. If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 23, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.415. Asset-backed securities.&nbsp;</span></p> <p class="cls2"><span class="cls0">ASSET-BACKED SECURITIES&nbsp;</span></p> <p><span class="cls0">A. In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which Section 10 or 18 of this act applies.&nbsp;</span></p> <p><span class="cls0">B. If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.&nbsp;</span></p> <p><span class="cls0">C. If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten percent (10%) of the payment to income and the balance to principal.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 24, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.501. Disbursements from income.&nbsp;</span></p> <p class="cls2"><span class="cls0">DISBURSEMENTS FROM INCOME&nbsp;</span></p> <p><span class="cls0">A trustee shall make the following disbursements from income to the extent that they are not disbursements to which subparagraph b or c of paragraph 2 of Section 5 of this act applies:&nbsp;</span></p> <p><span class="cls0">1. One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;&nbsp;</span></p> <p><span class="cls0">2. One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;&nbsp;</span></p> <p><span class="cls0">3. All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and&nbsp;</span></p> <p><span class="cls0">4. Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 25, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.502. Disbursements from principal.&nbsp;</span></p> <p class="cls2"><span class="cls0">DISBURSEMENTS FROM PRINCIPAL&nbsp;</span></p> <p><span class="cls0">A. A trustee shall make the following disbursements from principal:&nbsp;</span></p> <p><span class="cls0">1. The remaining one-half of the disbursements described in paragraph 1 and 2 of Section 25 of this act;&nbsp;</span></p> <p><span class="cls0">2. All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;&nbsp;</span></p> <p><span class="cls0">3. Payments on the principal of a trust debt;&nbsp;</span></p> <p><span class="cls0">4. Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;&nbsp;</span></p> <p><span class="cls0">5. Premiums paid on a policy of insurance not described in paragraph 4 of Section 25 of this act of which the trust is the owner and beneficiary;&nbsp;</span></p> <p><span class="cls0">6. Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and&nbsp;</span></p> <p><span class="cls0">7. Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.&nbsp;</span></p> <p><span class="cls0">B. If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 26, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.503. Transfers from income to principal for depreciation.&nbsp;</span></p> <p class="cls2"><span class="cls0">TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION&nbsp;</span></p> <p><span class="cls0">A. In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one (1) year.&nbsp;</span></p> <p><span class="cls0">B. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:&nbsp;</span></p> <p><span class="cls0">1. Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;&nbsp;</span></p> <p><span class="cls0">2. During the administration of a decedent's estate; or&nbsp;</span></p> <p><span class="cls0">3. Under this section if the trustee is accounting under Section 12 of this act for the business or activity in which the asset is used.&nbsp;</span></p> <p><span class="cls0">C. An amount transferred to principal need not be held as a separate fund.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 27, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.504. Transfers from income to reimburse principal.&nbsp;</span></p> <p class="cls2"><span class="cls0">TRANSFERS FROM INCOME TO REIMBURSE PRINCIPAL&nbsp;</span></p> <p><span class="cls0">A. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.&nbsp;</span></p> <p><span class="cls0">B. Principal disbursements to which subsection A of this section applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:&nbsp;</span></p> <p><span class="cls0">1. An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;&nbsp;</span></p> <p><span class="cls0">2. A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;&nbsp;</span></p> <p><span class="cls0">3. Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;&nbsp;</span></p> <p><span class="cls0">4. Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and&nbsp;</span></p> <p><span class="cls0">5. Disbursements described in paragraph 7 of subsection A of Section 26 of this act.&nbsp;</span></p> <p><span class="cls0">C. If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection A of this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 28, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.505. Income taxes.&nbsp;</span></p> <p class="cls2"><span class="cls0">INCOME TAXES&nbsp;</span></p> <p><span class="cls0">A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.&nbsp;</span></p> <p><span class="cls0">B. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.&nbsp;</span></p> <p><span class="cls0">C. A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:&nbsp;</span></p> <p><span class="cls0">1. From income to the extent that receipts from the entity are allocated only to income;&nbsp;</span></p> <p><span class="cls0">2. From principal to the extent that receipts from the entity are allocated only to principal;&nbsp;</span></p> <p><span class="cls0">3. Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and&nbsp;</span></p> <p><span class="cls0">4. From principal to the extent that the tax exceeds the total receipts from the entity.&nbsp;</span></p> <p><span class="cls0">D. After applying subsections A through C of this section, the trustee shall adjust income or principal receipts to the extent that the trust&rsquo;s taxes are reduced because the trust receives a deduction for payments made to a beneficiary.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 29, eff. Nov. 1, 1998. Amended by Laws 2009, c. 90, &sect; 2, eff. Nov. 1, 2009.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.506. Adjustments between principal and income because of taxes.&nbsp;</span></p> <p class="cls2"><span class="cls0">ADJUSTMENTS BETWEEN PRINCIPAL AND INCOME BECAUSE OF TAXES&nbsp;</span></p> <p><span class="cls0">A. A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:&nbsp;</span></p> <p><span class="cls0">1. Elections and decisions, other than those described in subsection B of this section, that the fiduciary makes from time to time regarding tax matters;&nbsp;</span></p> <p><span class="cls0">2. An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or&nbsp;</span></p> <p><span class="cls0">3. The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.&nbsp;</span></p> <p><span class="cls0">B. If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 30, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.601. Uniformity of application and construction.&nbsp;</span></p> <p class="cls2"><span class="cls0">UNIFORMITY OF APPLICATION AND CONSTRUCTION&nbsp;</span></p> <p><span class="cls0">In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 31, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.602. Application of act to existing trusts and estates.&nbsp;</span></p> <p class="cls2"><span class="cls0">APPLICATION OF ACT TO EXISTING TRUSTS AND ESTATES&nbsp;</span></p> <p><span class="cls0">This act applies to every trust or decedent's estate existing on the effective date of this act except as otherwise expressly provided in the will or terms of the trust or in this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1998, c. 115, &sect; 32, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-175.603. Application of Section 175.409 of Title 60 to trusts - Particular dates.&nbsp;</span></p> <p class="cls2"><span class="cls0">TRANSITIONAL MATTERS&nbsp;</span></p> <p><span class="cls0">Section 175.409 of Title 60 of the Oklahoma Statutes applies to a trust described in subsection D of Section 175.409 of Title 60 of the Oklahoma Statutes on and after the following dates:&nbsp;</span></p> <p><span class="cls0">1. If the trust is not funded as of November 1, 2009, the date of the decedent&rsquo;s death;&nbsp;</span></p> <p><span class="cls0">2. If the trust is initially funded in the calendar year beginning January 1, 2009, the date of the decedent&rsquo;s death; or&nbsp;</span></p> <p><span class="cls0">3. If the trust is not described in paragraph 1 or 2 of this section, January 1, 2009.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2009, c. 90, &sect; 3, eff. Nov. 1, 2009.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-176. Trusts for benefit of state, county or municipality - Approval - Expenditures - Conveyance of title to real property used for airport - Bylaws - Amendments - Indebtedness - Bonds - Contracts - Eminent domain - Exemptions.&nbsp;</span></p> <p><span class="cls0">A. Express trusts may be created to issue obligations, enter into financing arrangements including, but not limited to, lease-leaseback, sale-leaseback, interest rate swaps and other similar transactions and to provide funds for the furtherance and accomplishment of any authorized and proper public function or purpose of the state or of any county or municipality or any and all combinations thereof, in real or personal property, or either or both, or in any estate or interest in either or both, with the state, or any county or municipality or any and all combinations thereof, as the beneficiary thereof by:&nbsp;</span></p> <p><span class="cls0">1. The express approval of the Legislature and the Governor if the State of Oklahoma is the beneficiary;&nbsp;</span></p> <p><span class="cls0">2. The express approval of two-thirds (2/3) of the membership of the governing body of the beneficiary if a county is a beneficiary;&nbsp;</span></p> <p><span class="cls0">3. The express approval of two-thirds (2/3) of the membership of the governing body of the beneficiary if a municipality is a beneficiary; or&nbsp;</span></p> <p><span class="cls0">4. The express approval of two-thirds (2/3) of the membership of the governing body of each beneficiary in the event a trust has more than one beneficiary; provided, that no funds of a beneficiary derived from sources other than the trust property, or the operation thereof, shall be charged with or expended for the execution of the trust, except by express action of the legislative authority of the beneficiary prior to the charging or expending of the funds. The officers or any other governmental agencies or authorities having the custody, management, or control of any property, real or personal or mixed, of the beneficiary of the trust, or of a proposed trust, which property shall be needful for the execution of the trust purposes, are authorized and empowered to lease the property for those purposes, after the acceptance of the beneficial interest therein by the beneficiary as hereinafter provided.&nbsp;</span></p> <p><span class="cls0">B. A municipality may convey title to real property which is used for an airport to the trustees of an industrial development authority trust whose beneficiary is the municipality. The industrial development authority trust must already have the custody, management, or control of the real property. The conveyance must be approved by a majority of the governing body of the municipality. A conveyance pursuant to this section may be made only for the sole purpose of allowing the authority to sell the property for fair market value when the property is to be used for industrial development purposes. Conveyances made pursuant to this subsection shall be made subject to any existing reversionary interest or other restrictions burdening the property and subject to any reversionary interest or other restriction considered prudent by the municipality.&nbsp;</span></p> <p><span class="cls0">C. The trustees of a public trust having the State of Oklahoma as beneficiary shall make and adopt bylaws for the due and orderly administration and regulation of the affairs of the public trust. All bylaws of a public trust having the State of Oklahoma as beneficiary shall be submitted in writing to the Governor of the State of Oklahoma. The Governor must approve the proposed bylaws before they take effect.&nbsp;</span></p> <p><span class="cls0">D. No public trust in which the State of Oklahoma is the beneficiary may be amended without a two-thirds (2/3) vote of approval of the trustees of the trust; provided, that any amendment is subject to the approval of the Governor of the State of Oklahoma. Any amendments shall be sent to the Governor within fifteen (15) days of their adoption.&nbsp;</span></p> <p><span class="cls0">E. No trust in which a county or municipality is the beneficiary shall hereafter create an indebtedness or obligation until the indebtedness or obligation has been approved by a two-thirds (2/3) vote of the governing body of the beneficiary. In the event a trust has more than one beneficiary, as authorized by this section, the trust shall not incur an indebtedness or obligation until the indebtedness or obligation has been approved by a two-thirds (2/3) vote of the governing body of two-thirds (2/3) of the beneficiaries of the trust.&nbsp;</span></p> <p><span class="cls0">F. All bonds described in subsection E of this section, after December 1, 1976, except bonds sold to the federal government or any agency thereof or to any agency of the State of Oklahoma, shall be awarded to the lowest and best bidder based upon open competitive public offering, advertised at least once a week for two (2) successive weeks in a newspaper of general circulation in the county where the principal office of the trust is located prior to the date on which bids are received and opened; provided, competitive bidding may be waived on bond issues with the approval of three-fourths (3/4) of the trustees, and a three-fourths (3/4) vote of the governing body of the beneficiary, unless the beneficiary is a county in which case a two-thirds (2/3) vote of the members of the governing body shall be required, or three-fourths (3/4) vote of the governing bodies of each of the beneficiaries of the trust, unless one of the beneficiaries is a county in which case a two-thirds (2/3) vote of the members of the governing body of such county shall be required. No bonds shall be sold for less than par value, except upon approval of three-fourths (3/4) of the trustees, unless the beneficiary is a county in which case a two-thirds (2/3) vote of the members of the governing body shall be required. In no event shall bonds be sold for less than sixty-five percent (65%) of par value; provided, however, in no event shall the original purchaser from the issuer of any bonds issued by any public trust for any purpose receive directly or indirectly any fees, compensation, or other remuneration in excess of four percent (4%) of the price paid for the bonds by the purchaser of the bonds from the original purchaser; and further provided, that the average coupon rate thereon shall in no event exceed fourteen percent (14%) per annum. No public trust shall sell bonds for less than ninety-six percent (96%) of par value until the public trust has received from the underwriter or financial advisor or, in the absence of an underwriter or financial advisor, the initial purchaser of the bonds, an estimated alternative financing structure or structures showing the estimated total interest and principal cost of each alternative. At least one alternative financing structure shall include bonds sold to the public at par. Any estimates shall be considered a public record of the public trust. Bonds, notes or other evidences of indebtedness issued by any public trust shall be eligible for purchase by any state banking association or corporation subject to such limitations as to investment quality as may be imposed by regulations, rules or rulings of the State Banking Commissioner.&nbsp;</span></p> <p><span class="cls0">G. Public trusts created pursuant to this section shall file annually, with their respective beneficiaries, copies of financial documents and reports sufficient to demonstrate the fiscal activity of such trust, including, but not limited to, budgets, financial reports, bond indentures, and audits. Amendments to the adopted budget shall be approved by the trustees of the public trust and recorded as such in the official minutes of such trust.&nbsp;</span></p> <p><span class="cls0">H. Contracts for construction, labor, equipment, material or repairs in excess of Fifty Thousand Dollars ($50,000.00) shall be awarded by public trusts to the lowest and best competitive bidder, pursuant to public invitation to bid, which shall be published in the manner provided in the preceding section hereof; the advertisements shall appear in the county where the work, or the major part of it, is to be done, or the equipment or materials are to be delivered, or the services are to be rendered; provided, however, should the trustee or the trustees find that an immediate emergency exists, which findings shall be entered in the journal of the trust proceedings, by reason of which an immediate outlay of trust funds in an amount exceeding Fifty Thousand Dollars ($50,000.00) is necessary in order to avoid loss of life, substantial damage to property, or damage to the public peace or safety, then the contracts may be made and entered into without public notice or competitive bids; provided that the provisions of this subsection shall not apply to contracts of industrial and cultural trusts. Notwithstanding the provisions of this subsection, equipment or materials may be purchased by a public trust directly from any contract duly awarded by this state or any state agency under the Oklahoma Central Purchasing Act, or from any contract duly awarded by a governmental entity which is the beneficiary of the public trust.&nbsp;</span></p> <p><span class="cls0">I. Any public trust created pursuant to the provisions of this section shall have the power to acquire lands by use of eminent domain in the same manner and according to the procedures provided for in Sections 51 through 65 of Title 66 of the Oklahoma Statutes. Any exercise of the power of eminent domain by a public trust pursuant to the provisions of this section shall be limited to the furtherance of public purpose projects involving revenue-producing utility projects of which the public trust retains ownership; provided, for public trusts in which the State of Oklahoma is the beneficiary the exercise of the power of eminent domain may also be used for public purpose projects involving air transportation. Revenue-producing utility projects shall be limited to projects for the transportation, delivery, treatment, or furnishing of water for domestic purposes or for power, including, but not limited to the construction of lakes, pipelines, and water treatment plants or for projects for rail transportation. Any public trust formed pursuant to this section which has a county as its beneficiary shall have the power to acquire, by use of eminent domain, any lands located either inside the county, or contiguous to the county pursuant to the limitations imposed pursuant to this section.&nbsp;</span></p> <p><span class="cls0">J. Provisions of this section shall not apply to entities created under Sections 1324.1 through 1324.26 of Title 82 of the Oklahoma Statutes.&nbsp;</span></p> <p><span class="cls0">K. Any trust created under this act, in whole or in part, to operate, administer or oversee any county jail facility shall consist of not less than five members and include a county commissioner and the county sheriff, or their designee, and one member appointed by each of the county commissioners. The appointed members shall not be elected officials.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1951, p. 166, &sect; 1. Amended by Laws 1953, p. 277, &sect; 1, emerg. eff. May 7, 1953; Laws 1970, c. 319, &sect; 1; Laws 1976, c. 222, &sect; 1, eff. Dec. 1, 1976; Laws 1980, c. 12, &sect; 1, emerg. eff. March 18, 1980; Laws 1987, c. 144, &sect; 1, emerg. eff. June 24, 1987; Laws 1988, c. 111, &sect; 1, emerg. eff. April 4, 1988; Laws 1988, 3rd Ex. Sess., c. 2, &sect; 1, emerg. eff. Sept. 9, 1988; Laws 1990, c. 269, &sect; 1, emerg. eff. May 25, 1990; Laws 1991, 1st Ex. Sess., c. 1, &sect; 3, emerg. eff. Jan. 18, 1991; Laws 1991, c. 124, &sect; 32, eff. July 1, 1991; Laws 1991, c. 335, &sect; 18, emerg. eff. June 15, 1991; Laws 1992, c. 371, &sect; 5, eff. July 1, 1992; Laws 1996, c. 148, &sect; 1; Laws 1996, c. 288, &sect; 4, eff. July 1, 1996; Laws 1998, c. 173, &sect; 1, eff. Nov. 1, 1998; Laws 1999, c. 149, &sect; 1, eff. July 1, 1999; Laws 2002, c. 39, &sect; 1, eff. Nov. 1, 2002; Laws 2003, c. 184, &sect; 5, eff. Nov. 1, 2003; Laws 2004, c. 5, &sect; 48, emerg. eff. March 1, 2004; Laws 2010, c. 98, &sect; 1, eff. Nov. 1, 2010.&nbsp;</span></p> <p><span class="cls0">NOTE: Laws 1991, c. 94, &sect; 1 repealed by Laws 1991, c. 335, &sect; 37, emerg. eff. June 15, 1991. Laws 1996, c. 133, &sect; 1 repealed by Laws 1996, c. 288, &sect; 9, eff. Nov. 1, 1996. Laws 2002, c. 33, &sect; 1 repealed by Laws 2003, c. 3, &sect; 55, emerg. eff. March 19, 2003. Laws 2003, c. 3, &sect; 54 repealed by Laws 2004, c. 5, &sect; 49, emerg. eff. March 1, 2004.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-176.1. Presumptions and conditions - Relationship of trust and beneficiary.&nbsp;</span></p> <p><span class="cls0">A. Except as provided in subsection F of this section and if the conditions set out in subsection B of this section are satisfied in compliance with Section 176 et seq. of this title, a public trust duly created in accordance with the provisions of Section 176 et seq. of this title shall be presumed for all purposes of Oklahoma law to:&nbsp;</span></p> <p><span class="cls0">1. Exist for the public benefit;&nbsp;</span></p> <p><span class="cls0">2. Exist as a legal entity separate and distinct from the settlor and from the governmental entity that is its beneficiary; and&nbsp;</span></p> <p><span class="cls0">3. Act on behalf and in the furtherance of a public function or functions for which it is created even though facilities financed by the public trust or in which the public trust has an ownership interest may be operated by private persons or entities pursuant to contract.&nbsp;</span></p> <p><span class="cls0">B. The conditions to be satisfied as required in subsection A of this section are as follows:&nbsp;</span></p> <p><span class="cls0">1. The trustees of the public trust are appointed by the governing body of the beneficiary or beneficiaries or as otherwise provided by law. This paragraph shall not apply to public trusts in existence as of July 1, 1992;&nbsp;</span></p> <p><span class="cls0">2. The public trust delivers to the governing body of the beneficiaries, or in the case of the state as beneficiary, to the State Auditor and Inspector, annual audits as provided in Section 180.1 of this title;&nbsp;</span></p> <p><span class="cls0">3. With respect to city or county beneficiary public trusts, the function or enterprise in which the public trust is engaged is or could be authorized by state law to be performed by the beneficiary; and&nbsp;</span></p> <p><span class="cls0">4. With respect to city or county beneficiary public trusts, all indebtedness incurred by the public trust is approved by the governing body of the beneficiary as provided in subsection E of Section 176 of this title.&nbsp;</span></p> <p><span class="cls0">C. The existence of a contract for the operation or management of the facility financed by the public trust is hereby declared to be in furtherance of the public purpose of the public trust and shall not affect the validity of such public trust.&nbsp;</span></p> <p><span class="cls0">D. Except where the provisions of the trust indenture or of Section 176 et seq. of this title, or of any other law written specifically to govern the affairs of public trusts, expressly requires otherwise, the affairs of the public trust shall be separate and independent from the affairs of the beneficiary in all matters or activities authorized by the written instrument creating such public trust including, but not limited to, the public trust's budget, expenditures, revenues and general operation and management of its facilities or functions; provided, that either the public trust or the beneficiary may make payment of money to the other unless prohibited by the written instrument creating such public trust or by existing state law.&nbsp;</span></p> <p><span class="cls0">E. For all purposes of Oklahoma law, the existence and validity of any public trust shall be determined and established solely by the provisions of the written instrument creating such public trust, and by the provisions of Section 176 et seq. of this title and of any other law written specifically to create a public trust. Actions taken or omitted by the trustees of a public trust shall not affect the existence or validity of the entity as a public trust but shall be subject to subsequent review or ratification by said trustees or to correction by the district court in a proper proceeding.&nbsp;</span></p> <p><span class="cls0">F. Nothing in this section shall affect coverage of any entity under The Governmental Tort Claims Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1992, c. 371, &sect; 6, eff. July 1, 1992. Amended by Laws 1998, c. 173, &sect; 2, eff. Nov. 1, 1998; Laws 2003, c. 432, &sect; 10, emerg. eff. June 7, 2003.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60177. Reformation of offending instruments.&nbsp;</span></p> <p><span class="cls0">Such trusts may be created by written instruments or by will. In the case of written instruments, the same shall be subscribed by the grantor or grantors and duly acknowledged as conveyances of real estate are acknowledged, and before the same shall become effective the beneficial interest therein shall be accepted by the Governor, if the state is the beneficiary, or by the governing body of any other beneficiary named therein, which power and authority of acceptance hereby is conferred upon the Governor and upon the governing bodies of the counties or municipalities. Provided, every trust made hereunder, if the state is the beneficiary, shall, prior to and as a condition precedent to its entry into force, be submitted to the Attorney General who shall determine whether the trust is in proper form and compatible with the laws of this state. The Attorney General shall approve any trusts submitted to him which he determines to be in proper form and compatible with the laws of this state. If approved, the said instrument or will, together with the written acceptance of the beneficial interest and approval of the Attorney General endorsed thereon, shall be recorded in the office of the county clerk of each county wherein is situated any real estate, or any interest therein, belonging to said trust, as well as in the county wherein is located the trust property or wherein are conducted its principal operations. In the case of any trust of which the State of Oklahoma is the beneficiary, a certified copy of such instrument or will and the instrument of acceptance shall be filed with the Secretary of State. Upon the acceptance of the beneficial interest by the beneficiary and approval by the Attorney General as hereinabove provided, the same shall be and constitute a binding contract between the State of Oklahoma and the grantor or grantors, or the executor of the estate of the testator, for the acceptance of the beneficial interest in the trust property by the designated beneficiary and the application of the proceeds of the trust property and its operation for the purposes, and in accordance with the stipulations of the trust instrument or will. Such trusts shall have duration for the term of duration of the beneficiary, or such shorter length of time as shall be specified in the instrument or will creating said trust.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1951, p. 167, &sect; 2; Laws 1953, p. 278, &sect; 2; Laws 1970, c. 319, &sect; 2; Laws 1973, c. 201, &sect; 1; Laws 1976, c. 222, &sect; 2, eff. Dec. 1, 1976. &nbsp;</span></p> <p><span class="cls0">&sect;60-177.1. Limitation upon engaging in activity other than expressly authorized.&nbsp;</span></p> <p><span class="cls0">That no public trust shall engage in any activity or transaction that is not expressly authorized in the instruments or articles prescribing its creation except by express consent of the governmental agency or governmental entity that created said public trust. However, a public trust with a county as the beneficiary and created for purposes of providing affordable housing may engage in the activity related to the conveyance of real property to nonprofit organizations for the purpose of affordable housing as may be provided by law.&nbsp;</span></p> <p><span class="cls0">Laws 1970, c. 71, &sect; 1, emerg. eff. March 17, 1970. Amended by Laws 2007, c. 343, &sect; 2, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-177.2. Issuance of bonds or other evidence of indebtedness - Oklahoma Commission on School and County Funds Management - Powers and duties.&nbsp;</span></p> <p><span class="cls0">A. No public trust, school district or county shall issue any bonds, notes, certificates of participation, certificates of indebtedness or any other evidence of indebtedness, excluding nonpayable warrants and agreements with a depository bank to honor payment of checks when there are insufficient funds, for the purpose of short-term cash management by any school district or county unless such school district or county shall have been approved for participation by the Oklahoma Commission on School and County Funds Management.&nbsp;</span></p> <p><span class="cls0">As used in this section, "short-term cash management" means any borrowing or any method employed by a school district or county to obtain funds in advance of the receipt of tax revenue, and shall include, but not be limited to, the issuance of certificates of indebtedness, certificates of participation, tax-anticipation notes, bonds, notes, or any other evidence of indebtedness. It shall not include debt issued pursuant to a vote of the electors of the school district or county pursuant to the Constitution.&nbsp;</span></p> <p><span class="cls0">B. The Oklahoma Commission on School and County Funds Management, shall consist of the State Superintendent of Public Instruction, the Director of the Oklahoma Department of Career and Technology Education, and the State Bond Advisor. The Commission shall:&nbsp;</span></p> <p><span class="cls0">1. Receive requests of school districts and counties for authorization to participate in a short-term cash management program where the proceeds will be used to facilitate cash-flow management. The requests must be received by the Commission on or before April 1 in order for the school district or county to be considered for participation during the next fiscal year, unless such date is extended by the Commission;&nbsp;</span></p> <p><span class="cls0">2. Within five (5) business days of receiving a request, forward the request to the appropriate certifying authority. If the request and accompanying material meet the requirements of this act, the certifying authority must return the request and accompanying information to the Commission with a written review and comment within sixty (60) days of receipt of the request from the Commission. The certifying authority for school districts shall be the State Superintendent of Public Instruction and for technology center school districts, shall be the Director of the Oklahoma Department of Career and Technology Education and for counties, shall be the State Board of Equalization;&nbsp;</span></p> <p><span class="cls0">3. Approve or reject each request for participation, and forward notice of the decision of the Commission to the requesting school district or county and to the Office of the Governor. The Commission shall approve or reject a request within thirty (30) days following the date it receives the request and accompanying information with a written review and comment from a certifying authority;&nbsp;</span></p> <p><span class="cls0">4. Certify the need for funds generated by the proposed short-term cash management based on the financial projections of the school district or county, including the projected cash-flow shortfall, estimated income, and anticipated surplus balances on June 30 of the current fiscal year in the general and building funds of the school district or county. Accumulative cash-flow shortfall projections must be determined using the method specified by Section 148 of the Internal Revenue Code;&nbsp;</span></p> <p><span class="cls0">5. Establish reasonable limits for fees, commissions and other compensation paid to any person or firm involved with the proposed short-term cash management program;&nbsp;</span></p> <p><span class="cls0">6. Establish participation limitations for a school district or a county using the method specified in Section 148 of the Internal Revenue Code. No school district or county shall participate in a short-term cash management program in an amount which exceeds the determination of need pursuant to the accumulative cash-flow projections as specified in paragraph 4 of this subsection or forty percent (40%) of the approved annual budget of the school district or county, whichever is less;&nbsp;</span></p> <p><span class="cls0">7. Establish limitations which prohibit school districts and counties which are participating in a short-term cash management program from issuing nonpayable warrants if proceeds are available from the short-term cash management program;&nbsp;</span></p> <p><span class="cls0">8. Submit an annual report, by December 15 of each year, to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the Governor, the State Auditor and Inspector and the Attorney General, detailing the participation of each school district and county for the prior fiscal year in the short-term cash management programs authorized by this act; and&nbsp;</span></p> <p><span class="cls0">9. Prescribe methods and procedures by which school districts or counties may request authorization to participate in short-term cash management programs.&nbsp;</span></p> <p><span class="cls0">C. School districts and counties desiring to participate in a short-term cash management program as provided in subsection A of this section shall file a request with the Commission on such forms as the Commission shall prescribe. Such request shall be accompanied by:&nbsp;</span></p> <p><span class="cls0">1. A resolution adopted by the board of education of the school district or by the county commissioners of a county. Such resolution shall state that the school district or county intends to and has need to participate in a short-term cash management program and that the board of education or county commission has authorized the submission of such request;&nbsp;</span></p> <p><span class="cls0">2. A letter signed by the underwriter of the short-term cash management program that specifies the name and address of all persons and firms receiving compensation, directly or indirectly, involved with the proposed short-term cash management program. All persons and firms designated shall not be paid out of school or county funds. For purposes of this paragraph, school or county funds shall not include the proceeds from certificates of indebtedness or certificates of participation generated from a short-term cash management program;&nbsp;</span></p> <p><span class="cls0">3. A verification from the Administrator of the Oklahoma Department of Securities that all persons receiving compensation, directly or indirectly, for providing advice to the school districts or counties concerning participation in the program or for endorsing participation in the program are appropriately registered with the Oklahoma Department of Securities as investment advisers or investment adviser representatives, as applicable, and that all persons receiving compensation, directly or indirectly, for the placement of the certificates of participation or like securities with investors are registered as broker-dealers or agents, as applicable;&nbsp;</span></p> <p><span class="cls0">4. The estimated income and expenditures of the school district or county for the year for which the school district or county wishes to participate in a short-term cash management program. The appropriate certifying authority shall develop and provide an income and expenditure disclosure form for use by a school district or county which desires to participate in a short-term cash management program which follows the applicable portions of the information return required by Section 148 of the Internal Revenue Code. The information supplied in the disclosure form must reflect the ability of the school district or county to pay off an amount equal to the district's or county's liability on the program from the income from the fiscal year of participation, prior to approval for participation by the Commission. If the Commission determines that a question exists concerning any information submitted pursuant to this subsection, the Commission may request any additional information from the school district or county that it deems necessary;&nbsp;</span></p> <p><span class="cls0">5. A copy of the most recent information return for a short-term cash management program filed with the Internal Revenue Service pursuant to Section 149(e) of the Internal Revenue Code;&nbsp;</span></p> <p><span class="cls0">6. An affidavit by all persons, firms, corporations or business enterprises of any kind which provide services for compensation on any financing to implement a short-term cash management program, which shall be signed under oath on a form approved by the Commission and which shall state that such persons, firms, corporations or business enterprises have not given any money or other thing of value, other than a bona fide campaign contribution, to any public official or to any public employee of a school district or county participating in such a cash management program. Any such person, firm, corporation or business enterprise shall also file a disclosure statement on a form approved by the Commission, which shall disclose all campaign contributions of any kind made to any public official of a school district or county participating in such a short-term cash management program and shall also disclose the identity of any officer, director, agent or employee of such person, firm, corporation or business enterprise who is an officer or employee of a school or county participating in a short-term cash management program, or who is related to such officers or employees within the third degree of affinity or consanguinity;&nbsp;</span></p> <p><span class="cls0">7. A notarized sworn affidavit executed by each member of a board of education of a school district, the superintendent of schools and the treasurer of the school district or by each county commissioner of a county and the county treasurer, which states that the person or any member of the immediate family of the person has no direct or indirect financial interest in the short-term cash management program being requested. The affidavit shall be on a form prescribed by the Commission;&nbsp;</span></p> <p><span class="cls0">8. A summary report detailing all expenses incurred by a school district or county in participating in a short-term cash management program. The report shall be on a form prescribed by the Commission; and&nbsp;</span></p> <p><span class="cls0">9. Any application and other materials including any other necessary financial information, as may be required by the Commission.&nbsp;</span></p> <p><span class="cls0">D. If the information required to be submitted pursuant to this section meets all requirements established by the Commission and the Commission has approved such information and participation, and the participation is otherwise in accordance with law, the Oklahoma Commission on School and County Funds Management shall authorize the participation of the school district or county in the short-term cash management program. The Commission shall notify the school district or county in writing, whether the requirements of this section have been satisfied and approved.&nbsp;</span></p> <p><span class="cls0">E. School districts and counties participating in a short-term cash management program authorized by this section shall report to the Commission the probable income and expenses of anticipated investment income. The report shall not include probable income or expenses related to participation in a short-term cash management program.&nbsp;</span></p> <p><span class="cls0">F. The ability of a school district or county to issue general obligation bonds shall not be modified by this act.&nbsp;</span></p> <p><span class="cls0">G. The Office of the Attorney General shall provide legal assistance to the Oklahoma Commission on School and County Funds Management.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1985, c. 322, &sect; 44, emerg. eff. July 30, 1985. Amended by Laws 1986, c. 259, &sect; 46, operative July 1, 1986; Laws 1987, c. 204, &sect; 122, operative July 1, 1987; Laws 1987, c. 236, &sect; 111, emerg. eff. July 20, 1987; Laws 1989, c. 374, &sect; 1, emerg. eff. June 6, 1989; Laws 1991, c. 212, &sect; 1, eff. Aug. 1, 1991; Laws 2000, c. 266, &sect; 1, eff. Sept. 1, 2000; Laws 2001, c. 33, &sect; 50, eff. July 1, 2001; Laws 2004, c. 361, &sect; 1, eff. July 1, 2004.&nbsp;</span></p> <p><span class="cls0">&sect;60-177.3. Authorization of participation in short-term cash management program without Commission approval - Receipt of payment or compensation for endorsement of short-term cash management program by person not properly designated or registered - Violations and penalties.&nbsp;</span></p> <p><span class="cls0">A. Any officer of a school district or county who authorizes the participation of the school district or county to participate in a short-term cash management program without the approval of the Oklahoma Commission on School and County Funds Management or who fraudulently submits any false or misleading information to the Commission pursuant to Section 177.2 of Title 60 of the Oklahoma Statutes, shall be deemed guilty of a misdemeanor and upon conviction, shall be punished by a fine of not less than One Thousand Dollars ($1,000.00) or imprisoned in the county jail for not to exceed one (1) year, or by both such fine and imprisonment, and shall forfeit and be removed from office pursuant to Section 1181 et seq. of Title 22 of the Oklahoma Statutes or Section 91 et seq. of Title 51 of the Oklahoma Statutes. In addition, any professional license issued to an officer by a state agency or instrumentality who has been convicted of a misdemeanor pursuant to this section shall be revoked.&nbsp;</span></p> <p><span class="cls0">B. Any person who receives any payment or compensation, indirectly or directly, for the endorsement of any short-term cash management program and who has not been properly designated or registered, if registration is required, pursuant to subsection C of Section 177.2 of Title 60 of the Oklahoma Statutes, shall be guilty of a misdemeanor and upon conviction, shall be punished according to the penalties prescribed in subsection A of this section.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">Added by Laws 1991, c. 212, &sect; 2, eff. Aug. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-177.4. Endorsement of short-term cash management program by corporation, partnership and other entity deriving income from public funds - Revocation or forfeiture of certificate.&nbsp;</span></p> <p><span class="cls0">Corporations, partnerships and other entities which derive income from public funds shall be prohibited from endorsing any short-term cash management program, as defined by Section 177.2 of Title 60 of the Oklahoma Statutes, and receiving any compensation for the endorsement thereof. Any corporation or partnership which violates the provisions of this section may have the certificate of incorporation or certificate of partnership of the entity revoked or forfeited pursuant to law. The provisions of this section shall not prohibit a corporation, partnership or other entity which renders professional services to a school district or county pursuant to a short-term cash management program from receiving compensation for the services.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 212, &sect; 3, eff. Aug. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-177.5. Rebate of reserve funds resulting from any advance funding or cash management program.&nbsp;</span></p> <p><span class="cls0">All reserve funds currently or hereafter held by any public trust or entity, which funds result from any advance funding or cash management program, must be rebated, with all accrued interest thereon, on a pro rata basis of actual participation to the program participants of the advance funding or cash management program from which the reserve was created unless, within three (3) years of the date of the reserve fund's initial creation, such reserve funds are used by the public trust or entity to fund a similar advance funding or cash management program.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 341, &sect; 1, eff. July 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-178. Trustees - Appointment of succession, powers, duties, term, removal and compensation - Applicability to public trusts created and existing prior to July 1, 1988.&nbsp;</span></p> <p><span class="cls0">A. The instrument or will creating such trust may provide for the appointment, succession, powers, duties, term, manner of removal and compensation of the trustee or trustees subject to the provisions of subsections C and E of this section, and in all such respects the terms of said instrument or will shall be controlling. Trustees, who are public officers, shall serve without compensation, but may be reimbursed for actual expenses incurred in the performance of their duties as trustees. If the said instrument or will makes no provisions in regard to any of the foregoing, then the general laws of the state shall control as to such omission or omissions. Every person hereafter becoming a trustee of a public trust first shall take the oath of office required of an elected public officer and every officer and employee who handles funds of a public trust shall furnish a good and sufficient fidelity bond in an amount and with surety as may be specified and approved by the persons constituting a majority of each of the governing bodies of the beneficiaries of the trust, such bond to be in a surety company authorized to transact surety business in the State of Oklahoma but in no event shall any bond be required of a trustee. The cost of said bond shall be paid from funds of the trust authority. The oaths of office shall be administered by any person authorized to administer oaths in the State of Oklahoma, and shall be filed with the Secretary of State in trusts wherein the State of Oklahoma is the beneficiary; in the office of the county clerk in a trust wherein any county is beneficiary; and in the office of the clerk of the municipality in a trust wherein any municipality is the beneficiary.&nbsp;</span></p> <p><span class="cls0">B. Unless otherwise specified in another state law authorizing the creation of a state-beneficiary public trust, any public trust that hereafter names the State of Oklahoma as the beneficiary shall have five (5) trustees appointed by the Governor of the State of Oklahoma with the advice and consent of the Senate. The terms of the trustees shall be as follows: of the trustees first appointed, one member shall be appointed for a term of one (1) year; one member shall be appointed for a term of two (2) years; one member shall be appointed for a term of three (3) years; one member shall be appointed for a term of four (4) years; and one member shall be appointed for a term of five (5) years. At the expiration of the term of each member and of each succeeding member, the Governor shall appoint a successor who shall serve for a term of five (5) years. Whenever a vacancy on such trust shall occur by death, resignation or otherwise, the Governor shall fill the same by appointment and the appointee shall hold office during the unexpired term. Each member shall hold office until his successor has been appointed and qualified.&nbsp;</span></p> <p><span class="cls0">C. Any instrument or will creating a trust which is not within the scope of subsection B of this section shall provide for the appointment of a minimum of three trustees, their succession, powers, duties, term, manner of removal and compensation subject to the provisions of subsection E of this section, and in all such respects the terms of said instrument or will shall be controlling. If the instrument or will makes no provision in regard to any of the foregoing, then the general laws of the state shall control as to the omissions.&nbsp;</span></p> <p><span class="cls0">D. Meetings of trustees of all public trusts shall be open to the public to the same extent as is required by law for other public boards and commissions. Such meetings shall also be open to the press and any such equipment deemed necessary by the press to record or report the activities of the meetings. In such trusts wherein the State of Oklahoma is the beneficiary, a written notice of trustees' meetings shall be filed with the office of the Secretary of State at least three (3) days prior to the meeting date. Records of the trust and minutes of the trust meetings of any public trust shall be written and kept in a place, the location of which shall be recorded in the office of the county clerk of each county, wherein the trust instrument shall be recorded. Such records and minutes shall be available for inspection by any person during regular business hours. Every trust created under Sections 176 et seq. of this title shall file a monthly report of all expenditures of bond proceeds with the governing body of each beneficiary and with the Governor, the Speaker of the House of Representatives and the President Pro Tempore of the Senate in the case of a public trust having the State of Oklahoma as beneficiary.&nbsp;</span></p> <p><span class="cls0">E. Trustees of any public trust may be removed from office for cause, including incompetency, neglect of duty, or malfeasance in office, by a district court having jurisdiction. In the case of persons appointed by the Governor, such persons shall be appointed for terms not in excess of five (5) years, and shall be subject to removal for cause. In the event of removal of a trustee under this subsection, a successor trustee shall be appointed as provided in the trust instrument. Provided, however, in the event a trustee is so removed who is also a member of the governing board of a municipal beneficiary, the successor trustee shall be appointed by the judge of the court wherein the removal occurred; said successor trustee shall serve only until the removed trustee ceases to serve as a member of the governing board of the municipal beneficiary and his successor on said board has qualified.&nbsp;</span></p> <p><span class="cls0">F. The provisions of this section shall be inapplicable to any public trust created and existing prior to July 1, 1988, if the instrument or will creating such public trust shall have been held to be a valid and binding agreement in an opinion of the Supreme Court of the State of Oklahoma; and nothing in this section shall impair or be deemed to impair the trust indenture or existing or future obligations of such public trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1951, p. 167, &sect; 3. Amended by Laws 1970, c. 319, &sect; 3; Laws 1976, c. 222, &sect; 3, eff. Dec. 1, 1976; Laws 1981, c. 272, &sect; 12, eff. July 1, 1981; Laws 1988, c. 319, &sect; 6, eff. Nov. 1, 1988; Laws 1998, c. 173, &sect; 3, eff. Nov. 1, 1998; Laws 2010, c. 388, &sect; 3, emerg. eff. June 7, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60178.2. Official statement, prospectus or offering document Filing Penalty.&nbsp;</span></p> <p><span class="cls0">At least five (5) business days prior to the delivery of and payment for bonds, notes or other evidences of indebtedness by any public trust, except as hereafter excluded, there shall be filed with the Secretary of State a preliminary copy of the official statement, prospectus or other offering document pertaining to the issuance; prior to the expiration of fifteen (15) business days following said delivery of and payment therefor, there shall be filed with the Secretary of State and the Oklahoma Securities Commission a copy, in final form, of said official statement, prospectus or other offering document. Any person responsible for the preparation of the official statement, prospectus or other offering document in preliminary and/or final form who violates this section shall, upon conviction, be deemed guilty of a misdemeanor and shall be subject to a fine of not less than Five Thousand Dollars ($5,000.00) nor more than Ten Thousand Dollars ($10,000.00), or a jail sentence not less than six (6) months nor more than one (1) year, or both.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1976, c. 222, &sect; 5, eff. Dec. 1, 1976. &nbsp;</span></p> <p><span class="cls0">&sect;60178.3. Validity of outstanding indebtedness.&nbsp;</span></p> <p><span class="cls0">Nothing in this act shall affect the validity of outstanding indebtedness of any public trust heretofore created nor shall the validity of any document pertaining to such outstanding indebtedness or written instrument creating such public trust be affected.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1976, c. 222, &sect; 6, eff. Dec. 1, 1976. &nbsp;</span></p> <p><span class="cls0">&sect;60-178.4. Trust purpose - Exceptions.&nbsp;</span></p> <p><span class="cls0">A. Trusts created under the provisions of Sections 176 through 180.55 of this title or any amendments or extensions thereof shall not include any trust purpose, function nor activity in the distribution centers for intoxicating beverages and low-point beer as defined in Title 37 of the Oklahoma Statutes; nor shall it include a residential enterprise or function except as provided in Section 178.6 of this title.&nbsp;</span></p> <p><span class="cls0">B. Nothing in this section shall preclude the financing, construction, ownership or leasing of a warehouse as a permissible trust purpose, function or activity, so long as such warehouse is not used directly or indirectly for housing, storage or distribution of intoxicating beverages or low-point beer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1976, c. 222, &sect; 11, eff. Dec. 1, 1976. Amended by Laws 1985, c. 10, &sect; 1, emerg. eff. March 28, 1985; Laws 1990, c. 72, &sect; 1, emerg. eff. April 16, 1990; Laws 1995, c. 274, &sect; 50, eff. Nov. 1, 1995; Laws 2003, c. 386, &sect; 4, eff. July 1, 2003; Laws 2010, c. 195, &sect; 1, emerg. eff. May 4, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60178.5. Ad valorem taxation.&nbsp;</span></p> <p><span class="cls0">Those assets of any trust, now being used or engaged in any activity or function prohibited by Sections 9, 10 and 11 of this act, and which would be subject to ad valorem taxation if not held by public trust, shall be subject to ad valorem assessment and taxation, and no trust created hereafter shall circumvent the prohibition herein.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1976, c. 222, &sect; 12, eff. Dec. 1, 1976. &nbsp;</span></p> <p><span class="cls0">&sect;60-178.6. Public trusts - Exemption from provisions - Housing finance.&nbsp;</span></p> <p><span class="cls0">The provisions of Sections 652 and 653 of Title 62 of the Oklahoma Statutes and Sections 178.4 and 178.5 of this title shall not affect: public trusts operating, financing or refinancing facilities for the aged or disabled persons by nonprofit, religious or benevolent organizations; public trusts operating, financing or refinancing county, municipal or nonprofit hospitals; public trusts operating college or educational dormitories or student housing facilities; trusts formed for the purpose of constructing buildings for local units of the Department of Human Services under the provisions of Section 189a of Title 56 of the Oklahoma Statutes; public trusts carrying out redevelopment, rehabilitation and conservation activities in accordance with an approved urban renewal plan, provided property owned by said trust shall not be exempt from ad valorem taxation for a period exceeding five (5) years; trusts created under the provisions of Sections 15-141 through 15-147 of Title 2 of the Oklahoma Statutes or other trusts created for the same purpose. Section 176 et seq. of this title shall not prevent public trusts from administering or financing a housing program pursuant to a contract with an agency of the United States Government or the State of Oklahoma, or prevent public trusts from financing or refinancing housing projects, provided said projects:&nbsp;</span></p> <p><span class="cls0">1. Involve only property that is subject to ad valorem taxation; or&nbsp;</span></p> <p><span class="cls0">2. Involve financing or refinancing the construction, acquisition and/or improvement and rehabilitation of existing housing projects not subject to ad valorem taxation immediately before any such financing or refinancing,&nbsp;</span></p> <p><span class="cls0">and in either case are located within the geographic boundaries of the beneficiary or beneficiaries of the public trust. Notwithstanding the provisions of subdivision (b) of division (2) of subparagraph a of paragraph 8 of Section 2887 of Title 68 of the Oklahoma Statutes, housing projects which were exempt from ad valorem taxation immediately before such financing or refinancing shall not become subject to ad valorem taxation because they are financed or refinanced by a public trust under this provision.&nbsp;</span></p> <p><span class="cls0">A public trust with a city or cities, a county or counties, or the state as the beneficiary or beneficiaries thereof may issue its evidences of indebtedness for the purpose of financing housing projects or housing programs within the geographic boundaries of its beneficiary or beneficiaries as same represent an authorized and proper public function for public trusts.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1976, c. 222, &sect; 13, eff. Dec. 1, 1976. Amended by Laws 1980, c. 12, &sect; 2, emerg. eff. March 18, 1980; Laws 2000, c. 361, &sect; 1, emerg. eff. June 6, 2000; Laws 2002, c. 33, &sect; 2, emerg. eff. April 10, 2002; Laws 2002, c. 476, &sect; 1, emerg. eff. June 6, 2002; Laws 2010, c. 304, &sect; 1, eff. Nov. 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-178.7. Payments in lieu of taxes to be made by lessees of certain public trust property.&nbsp;</span></p> <p><span class="cls0">All public trusts hereafter issuing revenue bonds, notes or other evidences of indebtedness for industrial development purposes, including but not limited to rail transportation projects, shall require the lessee of each industrial project owned by the public trust, excluding nonprofit health care facilities, to pay an annual sum in lieu of ad valorem taxes for each year following the tenth anniversary date of the issuance of such revenue bonds, notes or other evidences of indebtedness. The lease or other agreement between the public trust and the lessee shall provide that the amount of the annual in lieu of payments shall be equal to the amount which such lessee would be obligated to pay were it the title owner of such industrial project during such annual period according to the assessment and valuation methods and procedures then provided by law. Prior to the tenth anniversary date of the issuance of such revenue bonds, notes or other evidences of indebtedness, the public trust shall elect, pursuant to a written notice of election filed with the county assessor and the county treasurer of the county in which the project property is located, either (a) to cause said annual in lieu of payments to be paid directly to said county and collected and distributed by said county treasurer in the manner then provided by law for ad valorem tax payments, or (b) to cause said annual in lieu of payments to be paid to said public trust and distributed as received by it to the local units of government in the impact area of the project supplying services and facilities to the industrial project and its employees in the proportions that the public trust shall determine to be equitable under the circumstances, with total distribution to all impacted school districts of not less than the percentage that would have been received in ad valorem taxes, by the school districts in the county where the facility is located, if imposed, and with said distribution based upon enrollment figures provided annually, in writing, within thirty (30) days after enrollment, to the trust. If said enrollment figures are not submitted in writing within said time period, then said school district is permanently barred after said thirty (30) days from receiving in lieu of payments for that annual distribution period. The term "industrial project" as used in this section shall include an expansion of an existing industrial facility; provided, however, no such arrangement shall operate to remove any property from the tax rolls except unimproved land then owned by the lessee to be acquired by the trust or additional unimproved land to be acquired by the trust to provide such improvements. The term "lessee" as used in this section shall include any individual, association, partnership, corporation or other entity engaged in any trade or business for profit and not otherwise exempt from ad valorem taxation under the laws of the state and shall include any purchaser or obligor under an installment sale agreement or other underlying financing agreement. The provisions of this section shall not apply to any project financed, or formally committed to be financed, by any public trust prior to the effective date hereof. Provided, further, that nothing contained in this section shall prevent any public trust from requiring in lieu of payments to be made by a lessee to the trust for public use, prior to the tenth anniversary date of the issuance of bonds, notes or other evidences of indebtedness hereafter issued for industrial development purposes.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1977, c. 235, &sect; 1, eff. Dec. 1, 1977. Amended by Laws 1998, c. 173, &sect; 4, eff. Nov. 1, 1998.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60178.8. Conflict of interest Transactions exempt Applicability to public trusts created and existing prior to July 1, 1988.&nbsp;</span></p> <p><span class="cls0">A. Except with regard to residents of a facility for aged persons operated by a public trust, who are trustees of the public trust operating the facility and who comprise less than a majority of the trustees, a conflict of interest shall be deemed to exist in any contractual relationship in which a trustee of a public trust, or any forprofit firm or corporation in which such trustee or any member of his or her immediate family is an officer, partner, principal stockholder, shall directly or indirectly buy or sell goods or services to, or otherwise contract with such trust. Upon a showing thereof, such trustee shall be subject to removal and such contract shall be deemed unenforceable as against such trust unless the records of such trust shall reflect that such trustee fully and publicly disclosed all such interest or interests, and unless such contractual relationship shall have been secured by competitive bidding following a public invitation to bid.&nbsp;</span></p> <p><span class="cls0">The following types of transactions are exempt from the aforementioned provisions of this section:&nbsp;</span></p> <p><span class="cls0">1. The making of any loan or advance of any funds to, or the purchase of any obligations issued by such public trust, in connection with the performance of any of its authorized purposes;&nbsp;</span></p> <p><span class="cls0">2. Any legal advertising required by law or indenture or determined necessary by the trustees of such public trust;&nbsp;</span></p> <p><span class="cls0">3. The performance by any bank, trust company or similar entity or any services as a depository; or&nbsp;</span></p> <p><span class="cls0">4. The sale of any public utility services to such public trust, in which the price of said services is regulated by law.&nbsp;</span></p> <p><span class="cls0">It shall be the duty of each public trust to compile a list of all conflicts of interest for which its trustees have made disclosure. It shall also be the duty of each trust to compile a list of all dealings between its trustees and the trust which involve the exempted transactions listed above. Such lists shall be compiled semiannually for periods ending June 30 and December 31 of each year. Such lists shall be compiled on forms prescribed by the Oklahoma Tax Commission and shall be matters of public record. Copies of such lists shall be filed with the Secretary of State by September 1 and March 1 of each year.&nbsp;</span></p> <p><span class="cls0">B. The provisions of this section shall be inapplicable to any public trust created and existing prior to July 1, 1988, if all bonds issued by such public trust are required to be issued under and pursuant to a single bond indenture by amendment or supplement thereto and if the instrument or will creating such public trust and the bond indenture under which such trust must issue all bonds shall have been held to be valid and binding agreements in an opinion of the Supreme Court of the State of Oklahoma; and nothing in this section shall impair or be deemed to impair the trust indenture, the bond indenture, or existing or future obligations of such public trust.&nbsp;</span></p> <p><span class="cls0">Laws 1977, c. 235, &sect; 2, eff. Dec. 1, 1977; Laws 1988, c. 319, &sect; 7, eff. Nov. 1, 1988; Laws 1992, c. 371, &sect; 7, eff. July 1, 1992.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60178.9. Real and/or personal property Acquiring and holding in public trust Conveyance, assignment or other transfer.&nbsp;</span></p> <p><span class="cls0">Any estate in real and/or personal property may be acquired and held in the name of a public trust. Where so acquired, any conveyance, assignment or other transfer shall be made in the name of such trust by the president or chairman of said trust, whichever the case may be, notwithstanding the number of trustees of such trust, attested by the secretary or assistant secretary of such trust, with the seal of the trust affixed thereto.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1981, c. 30, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60178.10. Conveyance, assignment or other transfer as evidence of trust existence.&nbsp;</span></p> <p><span class="cls0">Any conveyance, assignment or other transfer executed in the name of such trust pursuant to Section 1 of this act and bearing a signature which purports to be the signature of the president or chairman of said trust, shall be deemed prima facie evidence that such trust exists and the conveyance, assignment or other transfer is the act of the trust and the trustees thereof, that it was duly executed and signed by the president or chairman of said trust who were trustees of the trust and that such instrument conforms in all respects to the requirements of the instrument creating such trust; and such conveyance, assignment or other transfer shall be admissible in evidence without further proof of execution.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1981, c. 30, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60-178.11. Acknowledgment of conveyance, assignment or other transfer.&nbsp;</span></p> <p><span class="cls0">Every conveyance, assignment, or other transfer of any estate in real property, executed by a trust, must be acknowledged by the president or chair of the trust subscribing the name of the trust thereto, which acknowledgment shall be in substantially a form as provided for in the Uniform Law on Notarial Acts or in substantially the following form:&nbsp;</span></p> <p><span class="cls0">STATE OF OKLAHOMA )&nbsp;</span></p> <p><span class="cls0"> ) SS:&nbsp;</span></p> <p><span class="cls0">________COUNTY )&nbsp;</span></p> <p><span class="cls0">The foregoing instrument was acknowledged before me this (Date) by (Name), President or Chair of (Name of Trust), a public trust, on behalf of the trust.&nbsp;</span></p> <p><span class="cls0">(Signature of person taking acknowledgment)&nbsp;</span></p> <p><span class="cls0">(Title or Rank)&nbsp;</span></p> <p><span class="cls0">(Serial number, if any)&nbsp;</span></p> <p><span class="cls0">Laws 1981, c. 30, &sect; 3. Amended by Laws 1999, c. 104, &sect; 4, emerg. eff. April 19, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-178.13. Trusts for benefit of hospitals - Exemptions from beneficiary approval requirements.&nbsp;</span></p> <p><span class="cls0">Any indebtedness issued by a public trust having as its principal purpose, and which is primarily engaged in, the ownership and operation of a hospital or related institution, as defined in Section 1-701 of Title 63 of the Oklahoma Statutes, and the beneficiary of which is a county or municipality shall not be subject to the beneficiary approval requirements of Section 176 of Title 60 of the Oklahoma Statutes, if the indebtedness does not exceed five percent (5%) of the greater of:&nbsp;</span></p> <p><span class="cls0">1. The then existing total indebtedness of such trust; or&nbsp;</span></p> <p><span class="cls0">2. The value of all assets of such trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 306, &sect; 3, eff. Sept. 1, 1994.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60179. Status of trustee Liability for acts.&nbsp;</span></p> <p><span class="cls0">The trustee, or trustees, under such an instrument or will shall be an agency of the state and the regularly constituted authority of the beneficiary for the performance of the functions for which the trust shall have been created. No trustee or beneficiary shall be charged personally with any liability whatsoever by reason of any act or omission committed or suffered in the performance of such trust or in the operation of the trust property; but any act, liability for any omission or obligation of a trustee or trustees, in the execution of such trust, or in the operation of the trust property, shall extend to the whole of the trust estate, or so much thereof as may be necessary to discharge such liability or obligation, and not otherwise.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1951, p. 167, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60180. Termination of trust Contracts not impaired.&nbsp;</span></p> <p><span class="cls0">(a) Any such trust may be terminated by agreement of the trustee, or, if there be more than one, then all of the trustees and the governing body of the beneficiary, with the approval of the Governor of the State of Oklahoma; provided, that such trust shall not be terminated while there exists outstanding any contractual obligations chargeable against the trust property, which, by reason of such termination, might become an obligation of the beneficiary of such trust.&nbsp;</span></p> <p><span class="cls0">(b) Nothing in this act shall operate to impair existing obligations of contracts or existing trust indentures of any trust created prior to the effective date of this amendment; but to the extent that such existing obligations of contracts are not impaired by the provisions hereof, all of said provisions shall be applicable; provided further, that nothing in this act shall operate to impair or alter the trust indenture of the Oklahoma Ordinance Works Authority or contracts executed prior to the effective date of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1951, p. 167, &sect; 5; Laws 1970, c. 319, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60-180.1. Annual audits.&nbsp;</span></p> <p><span class="cls0">A. The trustees of every trust created for the benefit and furtherance of any public function with the State of Oklahoma or any county or municipality as the beneficiary or beneficiaries thereof must cause an audit to be made of the financial statements of the trust, such audit to be ordered within thirty (30) days of the close of each fiscal year of the trust. The audit shall be filed in accordance with the requirements set forth for financial statement audits in Section 212A of Title 74 of the Oklahoma Statutes.&nbsp;</span></p> <p><span class="cls0">B. The trustees of a trust which has more than Fifty Thousand Dollars ($50,000.00) in revenues or assets, and for whom an annual financial statement audit is not required by another law, regulation, or contract, shall cause to be conducted, by an independent licensed public accountant or a certified public accountant, an annual audit of the trust&rsquo;s financial statements in accordance with auditing standards generally accepted in the United States and Government Auditing Standards as issued by the Comptroller General of the United States or an agreed-upon-procedures engagement over certain financial information and compliance requirements to be performed in accordance with the applicable attestation standards of The American Institute of Certified Public Accountants, and the fieldwork and reporting standards in Government Auditing Standards. The specific procedures to be performed are:&nbsp;</span></p> <p><span class="cls0">1. Prepare a schedule of revenues, expenditures/expenses and changes in fund balances/net assets for each fund and determine compliance with any applicable trust or other prohibitions for creating fund balance deficits;&nbsp;</span></p> <p><span class="cls0">2. Agree material bank account balances to bank statements, and trace significant reconciling items to subsequent clearance;&nbsp;</span></p> <p><span class="cls0">3. Compare uninsured deposits to fair value of pledged collateral;&nbsp;</span></p> <p><span class="cls0">4. Compare use of material-restricted revenues and resources to their restrictions;&nbsp;</span></p> <p><span class="cls0">5. Determine compliance with requirements for separate funds; and&nbsp;</span></p> <p><span class="cls0">6. Determine compliance with reserve account and debt service coverage requirements of bond indentures.&nbsp;</span></p> <p><span class="cls0">Such engagement shall be ordered within thirty (30) days of the close of each fiscal year of the trust. Copies of the annual audit or agreed-upon-procedures report shall be filed with the State Auditor and Inspector within six (6) months after the close of the fiscal year and with the trustees and governing body of the beneficiaries.&nbsp;</span></p> <p><span class="cls0">C. Public trusts which have less than Fifty Thousand Dollars ($50,000.00) in revenue and less than Fifty Thousand Dollars ($50,000.00) in assets, and for whom an annual financial statement audit is not required by another law, regulation, or contract and any public trust which did not have financial activity exceeding Fifty Thousand Dollars ($50,000.00) since its last audit may apply to the State Auditor and Inspector for a waiver of the requirements of subsections A and B of this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1963, c. 76, &sect; 1, emerg. eff. May 21, 1963. Amended by Laws 1976, c. 222, &sect; 7, eff. Dec. 1, 1976; Laws 1996, c. 290, &sect; 5, eff. July 1, 1996; Laws 2005, c. 459, &sect; 6, eff. July 1, 2005; Laws 2006, c. 325, &sect; 2, eff. Nov. 1, 2006; Laws 2007, c. 1, &sect; 45, emerg. eff. Feb. 22, 2007.&nbsp;</span></p> <p><span class="cls0">NOTE: Laws 2006, c. 314, &sect; 6 repealed by Laws 2007, c. 1, &sect; 46, emerg. eff. Feb. 22, 2007.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-180.2. Filing of copies of audit or agreed-upon-procedures report - Failure to file &ndash; Filing of copy of instrument or will creating public trust.&nbsp;</span></p> <p><span class="cls0">(a) The audits herein required shall include the opinion of a certified public accountant or a licensed public accountant notwithstanding any lesser requirement by any instrument under which the trust may have covenanted for an audit to be made or furnished. One copy of the annual audit or agreed-upon-procedures report shall be filed with the State Auditor and Inspector, and, in the case of a trust wherein the state is the beneficiary, one copy with the Governor of the State of Oklahoma and one copy with each beneficiary of the trust, not later than six (6) months following the close of each fiscal year of the trust.&nbsp;</span></p> <p><span class="cls0">(b) Within thirty (30) days after the effective date hereof, each trust mentioned in Section 180.1 of this title shall certify to the State Auditor and Inspector the date of the close of its fiscal year.&nbsp;</span></p> <p><span class="cls0">(c) In the event that copy of such audit or agreed-upon-procedures report as herein required shall not be filed with the State Auditor and Inspector within the time herein provided, the State Auditor and Inspector hereby is authorized to employ, at the cost and expense of the trust, a certified public accountant or licensed public accountant to make the audit or perform the agreed-upon-procedures report herein required.&nbsp;</span></p> <p><span class="cls0">(d) Prior to the delivery of and payment for any bonds, notes or other evidences of indebtedness by a public trust, there shall be filed with the Secretary of State an executed original or certified copy of the written instrument or will creating such public trust and a notice of said filing with the Secretary of State shall be delivered to the State Auditor and Inspector and, in the case of a trust wherein the state is the beneficiary, to the Attorney General.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1963, c. 76, &sect; 2, emerg. eff. May 21, 1963. Amended by Laws 1970, c. 240, &sect; 1, emerg. eff. April 22, 1970; Laws 1976, c. 222, &sect; 8, eff. Dec. 1, 1976; Laws 1979, c. 30, &sect; 94, emerg. eff. April 6, 1979; Laws 1987, c. 110, &sect; 2, eff. Nov. 1, 1987; Laws 2005, c. 459, &sect; 7, eff. July 1, 2005.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-180.3. Expense of audits and agreed-upon-procedures engagements.&nbsp;</span></p> <p><span class="cls0">The necessary expense of the audits and agreed-upon-procedures engagements, including the cost of typing, printing, and binding, shall be paid from funds of the trust.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1963, c. 76, &sect; 3, emerg. eff. May 21, 1963. Amended by Laws 2005, c. 459, &sect; 8, eff. July 1, 2005.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60180.4. Regulation of certain public trusts operating a water supply system.&nbsp;</span></p> <p><span class="cls0">A. The Corporation Commission shall have general supervision over trusts created for the benefit and furtherance of a public function pursuant to Title 60 of the Oklahoma Statutes, Sections 176 et seq., where:&nbsp;</span></p> <p><span class="cls0">1. The trust has multiple beneficiaries; and&nbsp;</span></p> <p><span class="cls0">2. A water supply system is operated by the trust or a person or entity to which such function has been delegated; and&nbsp;</span></p> <p><span class="cls0">3. The water supply system is operated in a county having a population in excess of five hundred thousand (500,000) persons according to the most recent Federal Decennial Census; and&nbsp;</span></p> <p><span class="cls0">4. The beneficiaries do not regulate the rates, charges and practices of the water supply system.&nbsp;</span></p> <p><span class="cls0">B. The Corporation Commission shall also have general supervision over any person or entity to whom the function of operating a water supply system has been delegated by such a trust.&nbsp;</span></p> <p><span class="cls0">C. The Corporation Commission shall have the power to fix and establish rates and to prescribe rules, requirements and regulations affecting their services, operation, and the management and conduct of the business of persons and entities subject to this section and shall inquire into the management of the business thereof, and the method in which same is conducted. It shall have full visitorial and inquisitorial power to examine such operations, and keep informed as to their general conditions, their capitalization, rates, plants, equipment, apparatus, and other property owned, leased, controlled or operated, the value of same, the management, conduct, operation, practices and services, not only with respect to the adequacy, security and accommodation afforded by their service, but also with respect to their compliance with the Constitution and laws of this state, and with the orders of the Commission.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1972, c. 63, &sect; 1, emerg. eff. March 27, 1972. &nbsp;</span></p> <p><span class="cls0">&sect;60-180.51. Repealed by Laws 2013, c. 227, &sect; 13, eff. Nov. 1, 2013.&nbsp;</span></p> <p><span class="cls0">&sect;60-180.52. Repealed by Laws 2013, c. 227, &sect; 13, eff. Nov. 1, 2013.&nbsp;</span></p> <p><span class="cls0">&sect;60-180.53. Repealed by Laws 2013, c. 227, &sect; 13, eff. Nov. 1, 2013.&nbsp;</span></p> <p><span class="cls0">&sect;60-180.54. Repealed by Laws 2013, c. 227, &sect; 13, eff. Nov. 1, 2013.&nbsp;</span></p> <p><span class="cls0">&sect;60-180.55. Repealed by Laws 2013, c. 227, &sect; 13, eff. Nov. 1, 2013.&nbsp;</span></p> <p><span class="cls0">&sect;60180.56. Parimutuel horse racing facility terms and condition for participation by public trust.&nbsp;</span></p> <p><span class="cls0">A. No public trust as authorized by Section 176 of Title 60 of the Oklahoma Statutes shall be a party to any agreement for land, financing or operation of a parimutuel horse racing facility in the State of Oklahoma unless such agreement includes the following terms and conditions:&nbsp;</span></p> <p><span class="cls0">1. Said agreement shall indemnify and hold harmless the public trust from any financial obligation related to land, financing or operation by organizational license;&nbsp;</span></p> <p><span class="cls0">2. Said agreement shall include provisions for the payment of ad valorem property taxes on any improvements and structures on trust land which would otherwise be subject to ad valorem property taxation if constructed on privately owned land;&nbsp;</span></p> <p><span class="cls0">3. Such agreement shall prohibit the use of public trust financing for construction of any facilities on all land in the agreement; and&nbsp;</span></p> <p><span class="cls0">4. Said agreement shall require that title to any improvements must revert to said public trust at the termination of such lease or agreement.&nbsp;</span></p> <p><span class="cls0">B. Nothing in this section shall prohibit horse racing at county fairs as provided by law.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1985, c. 196, &sect; 12, operative July 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60-181. Unlimited marital deduction - Construction of trust.&nbsp;</span></p> <p><span class="cls0">Any trust of a trustor dying after December 31, 1981, which contains a marital deduction formula expressly providing that the spouse of the trustor is to receive the maximum amount of property qualifying for the marital deduction allowable by federal law shall be construed as referring to the unlimited marital deduction provided by the Economic Recovery Tax Act of 1981, Public Law 97-34. This provision shall apply retrospectively to trusts of trustors dying after December 31, 1981.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1982, c. 368, &sect; 2, emerg. eff. July 14, 1982. Amended by Laws 1983, c. 123, &sect; 1, emerg. eff. May 17, 1983.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-199. Validity of a trust for the care of domestic or pet animals.&nbsp;</span></p> <p><span class="cls0">A. A trust for the care of designated domestic or pet animals is valid. Unless the trust instrument provides for an earlier termination, the trust terminates when no living animal is covered by the trust.&nbsp;</span></p> <p><span class="cls0">B. The instrument creating the trust shall be liberally construed to bring the transfer within the scope of trusts governed by this section, to presume against the mere precatory or honorary nature of the disposition, and to carry out the general intent of the transferor. Extrinsic evidence is admissible in determining the intent of the transferor.&nbsp;</span></p> <p><span class="cls0">C. If a trustee is not designated or no designated or successor trustee is willing or able to serve, a court shall name a trustee. Unless otherwise permitted by the trust, the trustee and the enforcer as provided in subsection D of this section shall not be the same person. The trustee shall be entitled to reasonable trustee fees and expenses for the administration, unless otherwise provided in the trust instrument. The trustee of a trust created in accordance with this section shall ensure that care is provided for the benefit of the animal in accordance with the terms of the trust or, in absence of any terms, shall ensure that care is provided that is reasonable under the circumstances. The trustee may employ agents or contractors to provide any care and pay for the care from the assets of the trust. The trustee shall also ensure that the property of a trust authorized by this section is applied only to its intended use.&nbsp;</span></p> <p><span class="cls0">D. A trust authorized by this section may be enforced by a person appointed in the trust instrument, the caretaker of the designated animal or animals, and the remainder beneficiary, or, if none, by an individual appointed by a court upon application to it by an individual.&nbsp;</span></p> <p><span class="cls0">E. Accountings otherwise required by law shall be provided to those persons qualified as an enforcer as provided for in subsection D of this section. However, if the value of the assets in the trust does not exceed Twenty Thousand Dollars ($20,000.00), no filing, report, registration, periodic accounting, separate maintenance of funds, appointment, or fee shall be required by reason of the existence of the fiduciary relationship of the trustee, unless ordered by the court or required by the trust instrument. &nbsp;</span></p> <p><span class="cls0">F. Each trust created pursuant to this section shall identify a remainder beneficiary. If none is named, the trustee shall transfer any unexpended trust property upon termination of the trust to the transferor, if then living, or if not living, to the transferor&rsquo;s successors in interest.&nbsp;</span></p> <p><span class="cls0">G. For purposes of Section 175.47 of Title 60 of the Oklahoma Statutes, the beneficiary or beneficiaries in being at the creation of the trust shall include the caretaker of the designated animal or animals and the remainder beneficiaries.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 224, &sect; 1.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60299.1. Common law.&nbsp;</span></p> <p><span class="cls0">The common law of powers is hereby declared to be the law in this state, except as modified by statute.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60299.2. Creation.&nbsp;</span></p> <p><span class="cls0">A donor may create a power of appointment only by an instrument executed with the same formalities as one which would pass title to the property covered by the power.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60299.3. Donees Exercising power of appointment.&nbsp;</span></p> <p><span class="cls0">A donee may exercise a power of appointment only by an instrument executed with sufficient formalities to pass title to the property covered by the power. When a power of appointment is exercisable only by will, a donee may not exercise it by deed. When a power of appointment is exercisable by deed, a donee may exercise it by will.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 3. &nbsp;</span></p> <p><span class="cls0">&sect;60299.4. Insufficient instruments Additional formalities.&nbsp;</span></p> <p><span class="cls0">A power of appointment authorized to be exercised by an instrument which would not be sufficient to transfer title to the property covered by the power shall not be void, but its execution shall conform to the provisions of this act. When the power of appointment directs that formalities in addition to those prescribed in this act be observed in the execution of the power, the direction may be disregarded.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60299.5. Persons who may exercise.&nbsp;</span></p> <p><span class="cls0">Any donee, except a minor, who would be capable of conveying the property covered by the power may exercise a power of appointment.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 5. &nbsp;</span></p> <p><span class="cls0">&sect;60299.6. Two or more persons vested with a power of appointment.&nbsp;</span></p> <p><span class="cls0">When a power of appointment is vested in two or more persons, all such persons shall unite in its exercise. However, if one or more of such persons die, become legally incapable of exercising the power or renounce such power, the power may be exercised by the others.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 6. &nbsp;</span></p> <p><span class="cls0">&sect;60299.7. Consent of donor Writing Recording.&nbsp;</span></p> <p><span class="cls0">When the consent of the donor, or of any other person, is required by the donor for the exercise of a power of appointment, this consent shall be in writing. To entitle the instrument exercising the power to be recorded, the signature of any person consenting shall be acknowledged. If the consent is given in a separate instrument, that instrument shall be attached to the instrument exercising the power. If any person whose consent is required dies or becomes legally incapable of consenting, the donee may exercise the power with the consent of the other person whose consent is required. If there is no such person, the donee may exercise the power in the manner provided by Section 3 of this act, unless the donor has manifested a contrary intent in the instrument creating the power.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 7. &nbsp;</span></p> <p><span class="cls0">&sect;60299.8. Appointment of all the property to one or more of the objects to the exclusion of the others.&nbsp;</span></p> <p><span class="cls0">Unless a contrary intent is manifested in the instrument creating the power, the donee may appoint all of the property to one or more of the objects to the exclusion of the others. A direction to appoint "to", "among" or "between" two or more objects shall not be a sufficient manifestation of a contrary intent. However, when the donee is prevented from excluding any object by the instrument creating the power, each object shall receive an equal share, unless the instrument creating the power manifests an intent that some other division may be made.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 8. &nbsp;</span></p> <p><span class="cls0">&sect;60299.9. Donee authorized to appoint himself Creditors Claims Fraudulent conveyances.&nbsp;</span></p> <p><span class="cls0">When a donee is authorized to appoint to himself all or part of the property covered by any power of appointment, a creditor of the donee may subject to his claim all property which the donee could then appoint to himself only to the extent that other property available for the payment of his claim is insufficient for such payment. When a donee has exercised such a general power by deed, the law relating to fraudulent conveyances shall apply as if the property transferred to the appointee had been owned by the donee. When a donee has exercised such a power by will in favor of either a taker without value or a creditor, a creditor of the donee or of his estate may subject such property to the payment of his claim only to the extent that other property available for the payment of the claim is insufficient for such payment.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 9. &nbsp;</span></p> <p><span class="cls0">&sect;60299.10. Transfer by deed or will Property conveyed.&nbsp;</span></p> <p><span class="cls0">When the donee of a power of appointment makes a deed or a will purporting to transfer all of his property, the property covered by the power shall be included in such transfer unless it is shown that the donee did not so intend.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 10. &nbsp;</span></p> <p><span class="cls0">&sect;60299.11. Conveyances and devises.&nbsp;</span></p> <p><span class="cls0">A deed either creating or exercising a power of appointment over real property is a conveyance. A will appointing real property is a devise.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 11. &nbsp;</span></p> <p><span class="cls0">&sect;60299.12. Suspension of right of alienation Computation of time.&nbsp;</span></p> <p><span class="cls0">The period during which the absolute right of alienation may be suspended by any instrument in execution of a power shall be computed from the time of the creation of the power and not from the date of the instrument. However, in the case of a general power presently exercisable, the period shall be computed from the date of the instrument.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 12. &nbsp;</span></p> <p><span class="cls0">&sect;60299.13. Advancements to descendents.&nbsp;</span></p> <p><span class="cls0">Every estate or interest given to a descendent of the donee by the exercise of a power is an advancement to such descendent to the same extent that a gift of property owned by the donee would be an advancement.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 13. &nbsp;</span></p> <p><span class="cls0">&sect;60299.14. Assignment for the benefit of creditors.&nbsp;</span></p> <p><span class="cls0">Under a general assignment for the benefit of creditors, a power of appointment in the assignor by which he is authorized to appoint the property to himself passes to the assignee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 14. &nbsp;</span></p> <p><span class="cls0">&sect;60299.15. Power of revocation Reservation Effect.&nbsp;</span></p> <p><span class="cls0">When the grantor in a conveyance reserves to himself, for his own benefit, an absolute power of revocation, the grantor shall still be the absolute owner of the estate conveyed, so far as the rights of creditors and purchasers are concerned.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 15. &nbsp;</span></p> <p><span class="cls0">&sect;60299.16. Absolute power of disposition in grantee or beneficiary.&nbsp;</span></p> <p><span class="cls0">When an absolute power of disposition is given to a grantee or a beneficiary under a will of real or personal property and no reversion, remainder or gift in default of the property undisposed of by the grantee or a beneficiary under a will is expressed in the instrument creating the power, the grantee or a beneficiary under a will shall be the absolute owner of the property.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1977, c. 210, &sect; 16. &nbsp;</span></p> <p><span class="cls0">&sect;60-300.1. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.2. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.3. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.4. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.5. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.6. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.7. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.8. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.9. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.10. Repealed by Laws 2007, c. 91, &sect; 14, eff. Nov. 1, 2007.&nbsp;</span></p> <p><span class="cls0">&sect;60-300.11. Short title.&nbsp;</span></p> <p><span class="cls0">SHORT TITLE. Sections 1 through 10 of this act shall be known and may be cited as the &ldquo;Uniform Prudent Management of Institutional Funds Act.&rdquo;&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 1, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.12. Definitions.&nbsp;</span></p> <p><span class="cls0">DEFINITIONS. In the Uniform Prudent Management of Institutional Funds Act:&nbsp;</span></p> <p><span class="cls0">(1) &ldquo;Charitable purpose&rdquo; means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose the achievement of which is beneficial to the community.&nbsp;</span></p> <p><span class="cls0">(2) &ldquo;Endowment fund&rdquo; means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The term does not include assets that an institution designates as an endowment fund for its own use.&nbsp;</span></p> <p><span class="cls0">(3) &ldquo;Gift instrument&rdquo; means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.&nbsp;</span></p> <p><span class="cls0">(4) &ldquo;Institution&rdquo; means:&nbsp;</span></p> <p class="cls3"><span class="cls0">(A)&nbsp;&nbsp;a person, other than an individual, organized and operated exclusively for charitable purposes;&nbsp;</span></p> <p class="cls3"><span class="cls0">(B)&nbsp;&nbsp;a government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; or&nbsp;</span></p> <p class="cls3"><span class="cls0">(C)&nbsp;&nbsp;a trust that has both charitable and noncharitable interests, after all noncharitable interests have terminated.&nbsp;</span></p> <p><span class="cls0">(5) &ldquo;Institutional fund&rdquo; means a fund held by an institution exclusively for charitable purposes. The term does not include:&nbsp;</span></p> <p class="cls3"><span class="cls0">(A)&nbsp;&nbsp;program-related assets; &nbsp;</span></p> <p class="cls3"><span class="cls0">(B)&nbsp;&nbsp;a fund held for an institution by a trustee that is not an institution; or&nbsp;</span></p> <p class="cls3"><span class="cls0">(C)&nbsp;&nbsp;a fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.&nbsp;</span></p> <p><span class="cls0">(6) &ldquo;Person&rdquo; means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.&nbsp;</span></p> <p><span class="cls0">(7) &ldquo;Program-related asset&rdquo; means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.&nbsp;</span></p> <p><span class="cls0">(8) &ldquo;Record&rdquo; means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 2, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.13. Standard of conduct in managing and investing institutional fund.&nbsp;</span></p> <p><span class="cls0">STANDARD OF CONDUCT IN MANAGING AND INVESTING INSTITUTIONAL FUND.&nbsp;</span></p> <p><span class="cls0">(a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.&nbsp;</span></p> <p><span class="cls0">(b) In addition to complying with the duty of loyalty imposed by law other than the Uniform Prudent Management of Institutional Funds Act, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.&nbsp;</span></p> <p><span class="cls0">(c) In managing and investing an institutional fund, an institution:&nbsp;</span></p> <p><span class="cls0">(1) may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and &nbsp;</span></p> <p><span class="cls0">(2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.&nbsp;</span></p> <p><span class="cls0">(d) An institution may pool two or more institutional funds for purposes of management and investment.&nbsp;</span></p> <p><span class="cls0">(e) Except as otherwise provided by a gift instrument, the following rules apply:&nbsp;</span></p> <p><span class="cls0">(1) In managing and investing an institutional fund, the following factors, if relevant, must be considered:&nbsp;</span></p> <p class="cls3"><span class="cls0">(A)&nbsp;&nbsp;general economic conditions;&nbsp;</span></p> <p class="cls3"><span class="cls0">(B)&nbsp;&nbsp;the possible effect of inflation or deflation;&nbsp;</span></p> <p class="cls3"><span class="cls0">(C)&nbsp;&nbsp;the expected tax consequences, if any, of investment decisions or strategies;&nbsp;</span></p> <p class="cls3"><span class="cls0">(D)&nbsp;&nbsp;the role that each investment or course of action plays within the overall investment portfolio of the fund;&nbsp;</span></p> <p class="cls3"><span class="cls0">(E)&nbsp;&nbsp;the expected total return from income and the appreciation of investments;&nbsp;</span></p> <p class="cls3"><span class="cls0">(F)&nbsp;&nbsp;other resources of the institution;&nbsp;</span></p> <p class="cls3"><span class="cls0">(G)&nbsp;&nbsp;the needs of the institution and the fund to make distributions and to preserve capital; and&nbsp;</span></p> <p class="cls3"><span class="cls0">(H)&nbsp;&nbsp;an asset&rsquo;s special relationship or special value, if any, to the charitable purposes of the institution.&nbsp;</span></p> <p><span class="cls0">(2) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund&rsquo;s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.&nbsp;</span></p> <p><span class="cls0">(3) Except as otherwise provided by law other than the Uniform Prudent Management of Institutional Funds Act, an institution may invest in any kind of property or type of investment consistent with this section.&nbsp;</span></p> <p><span class="cls0">(4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.&nbsp;</span></p> <p><span class="cls0">(5) Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of the Uniform Prudent Management of Institutional Funds Act.&nbsp;</span></p> <p><span class="cls0">(6) A person that has special skills or expertise, or is selected in reliance upon the person&rsquo;s representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 3, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.14. Appropriation for expenditure or accumulation of endowment fund &ndash; Rules of construction.&nbsp;</span></p> <p><span class="cls0">APPROPRIATION FOR EXPENDITURE OR ACCUMULATION OF ENDOWMENT FUND; RULES OF CONSTRUCTION.&nbsp;</span></p> <p><span class="cls0">(a) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:&nbsp;</span></p> <p><span class="cls0">(1) the duration and preservation of the endowment fund;&nbsp;</span></p> <p><span class="cls0">(2) the purposes of the institution and the endowment fund;&nbsp;</span></p> <p><span class="cls0">(3) general economic conditions;&nbsp;</span></p> <p><span class="cls0">(4) the possible effect of inflation or deflation;&nbsp;</span></p> <p><span class="cls0">(5) the expected total return from income and the appreciation of investments;&nbsp;</span></p> <p><span class="cls0">(6) other resources of the institution; and&nbsp;</span></p> <p><span class="cls0">(7) the investment policy of the institution.&nbsp;</span></p> <p><span class="cls0">(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation.&nbsp;</span></p> <p><span class="cls0">(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only &ldquo;income&rdquo;, &ldquo;interest&rdquo;, &ldquo;dividends&rdquo;, or &ldquo;rents, issues, or profits&rdquo;, or &ldquo;to preserve the principal intact&rdquo;, or words of similar import:&nbsp;</span></p> <p><span class="cls0">(1) create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and&nbsp;</span></p> <p><span class="cls0">(2) do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 4, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.15. Delegation of management and investment functions.&nbsp;</span></p> <p><span class="cls0">DELEGATION OF MANAGEMENT AND INVESTMENT FUNCTIONS.&nbsp;</span></p> <p><span class="cls0">(a) Subject to any specific limitation set forth in a gift instrument or in law other than the Uniform Prudent Management of Institutional Funds Act, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:&nbsp;</span></p> <p><span class="cls0">(1) Selecting an agent;&nbsp;</span></p> <p><span class="cls0">(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and&nbsp;</span></p> <p><span class="cls0">(3) Periodically reviewing the agent&rsquo;s actions in order to monitor the agent&rsquo;s performance and compliance with the scope and terms of the delegation.&nbsp;</span></p> <p><span class="cls0">(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.&nbsp;</span></p> <p><span class="cls0">(c) An institution that complies with subsection (a) of this section is not liable for the decisions or actions of an agent to which the function was delegated.&nbsp;</span></p> <p><span class="cls0">(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.&nbsp;</span></p> <p><span class="cls0">(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than the Uniform Prudent Management of Institutional Funds Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 5, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.16. Release or modification of restrictions on management, investment, or purpose.&nbsp;</span></p> <p><span class="cls0">RELEASE OR MODIFICATION OF RESTRICTIONS ON MANAGEMENT, INVESTMENT, OR PURPOSE.&nbsp;</span></p> <p><span class="cls0">(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.&nbsp;</span></p> <p><span class="cls0">(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the Attorney General of the application, and the Attorney General must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor&rsquo;s probable intention.&nbsp;</span></p> <p><span class="cls0">(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the Attorney General of the application, and the Attorney General must be given an opportunity to be heard.&nbsp;</span></p> <p><span class="cls0">(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, sixty (60) days after notification to the Attorney General, may release or modify the restriction, in whole or part, if:&nbsp;</span></p> <p><span class="cls0">(1) The institutional fund subject to the restriction has a total value of less than Twenty-five Thousand Dollars ($25,000.00);&nbsp;</span></p> <p><span class="cls0">(2) More than twenty (20) years have elapsed since the fund was established; and&nbsp;</span></p> <p><span class="cls0">(3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 6, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.17. Reviewing compliance.&nbsp;</span></p> <p><span class="cls0">REVIEWING COMPLIANCE. Compliance with the Uniform Prudent Management of Institutional Funds Act is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 7, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.18. Application to existing institutional funds.&nbsp;</span></p> <p><span class="cls0">APPLICATION TO EXISTING INSTITUTIONAL FUNDS. The Uniform Prudent Management of Institutional Funds Act applies to institutional funds existing on or established after November 1, 2007. As applied to institutional funds existing on November 1, 2007, the Uniform Prudent Management of Institutional Funds Act governs only decisions made or actions taken on or after that date.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 8, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.19. Relation to Electronic Signatures in Global and National Commerce Act.&nbsp;</span></p> <p><span class="cls0">RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT. The Uniform Prudent Management of Institutional Funds Act modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101 of that act, 15 U.S.C. Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of that act, 15 U.S.C. Section 7003(b).&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 9, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-300.20. Uniformity of application and construction.&nbsp;</span></p> <p><span class="cls0">UNIFORMITY OF APPLICATION AND CONSTRUCTION. In applying and construing the Uniform Prudent Management of Institutional Funds Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2007, c. 91, &sect; 10, eff. Nov. 1, 2007.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-301.1. Short title.&nbsp;</span></p> <p><span class="cls0">This act shall be known and may be cited as the "Oklahoma Charitable Fiduciary Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 2, emerg. eff. April 15, 1997.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-301.2. Legislative findings and purpose.&nbsp;</span></p> <p><span class="cls0">A. The Legislature finds that:&nbsp;</span></p> <p><span class="cls0">1. Charitable, religious, and educational and eleemosynary organizations perform essential and needed services in the state;&nbsp;</span></p> <p><span class="cls0">2. Clarification is needed regarding the capability of charitable, religious, educational, and eleemosynary organizations to act as a fiduciary in obtaining and administering present and future gifts benefitting the charitable, religious, educational, and eleemosynary purposes of such organizations and their affiliates; and&nbsp;</span></p> <p><span class="cls0">3. Clarification is needed regarding the fiduciary powers of charitable, religious, educational, and eleemosynary organizations in the administration of trusts which provide for present or future gifts benefitting the charitable, religious, educational, and eleemosynary purposes of such organizations.&nbsp;</span></p> <p><span class="cls0">B. The purpose of this act is to authorize charitable, religious, educational, and eleemosynary organizations to act as a fiduciary and to clarify the powers of such organizations when acting in a permitted fiduciary capacity.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 3, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.3. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in the Oklahoma Charitable Fiduciary Act:&nbsp;</span></p> <p><span class="cls0">1. "Charitable organization" means an incorporated or unincorporated organization:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;domiciled in the State of Oklahoma,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;recognized under Section 501(c)(3) of the Internal Revenue Code as being organized and operated exclusively for charitable, religious, educational, or other eleemosynary purposes,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;which has been in existence for at least five (5) years if the organization administers charitable trusts which benefit private individuals,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;having a governing board of which a majority of its members are persons who are qualified by education or experience to provide direction of the charitable organization in the administration of its charitable trusts,&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;having a governing board of which at least forty percent (40%) of its members are residents of the State of Oklahoma, provided that upon proper application the Attorney General may waive this requirement, and&nbsp;</span></p> <p class="cls3"><span class="cls0">f.&nbsp;&nbsp;which has filed the comprehensive annual audit required by Section 301.9 of this title;&nbsp;</span></p> <p><span class="cls0">2. "Charitable trust" means:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;a trust which qualifies as a charitable remainder unitrust under the Internal Revenue Code,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;a trust which qualifies as a charitable remainder annuity trust under the Internal Revenue Code,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;a trust which is described as a charitable lead trust in the Internal Revenue Code,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;a fund which qualifies as a pooled income fund under the Internal Revenue Code,&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;an endowment fund as that term is defined in the Uniform Prudent Management of Institutional Funds Act,&nbsp;</span></p> <p class="cls3"><span class="cls0">f.&nbsp;&nbsp;a trust providing for the welfare, maintenance, support, and education of minor issue of a decedent who has made a gift in the document creating the trust for the benefit of the minor issue to the charitable organization administering the trust or one or more of its affiliated charitable organizations at the decedent's death and the total of all gifts made to the charitable organization administering the trust or one or more of its affiliated charitable organizations at the decedent's death is as large as the largest distribution made to another person who is not a charitable organization, but in no event shall the total of all gifts made to the charitable organization administering the trust or one or more of its affiliated charitable organizations be less than twenty-five percent (25%) of the property which is available for distribution, or&nbsp;</span></p> <p class="cls3"><span class="cls0">g.&nbsp;&nbsp;any other irrevocable or revocable trust in which:&nbsp;</span></p> <p class="cls4"><span class="cls0">(1)&nbsp;&nbsp;one or more gifts of either trust income or principal, whether outright or in trust, are irrevocably made to or for the benefit of a charitable organization,&nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;if the irrevocable gift is of income or principal which is distributed before the termination of the trust, the total of all such irrevocable gifts of income or principal made to the charitable organization administering the trust or one or more of its affiliated charitable organizations is as large as the largest distribution to another beneficiary entitled to receive distributions of income or principal from the trust before the termination of the trust who is not the charitable organization administering the trust or an affiliated charitable organization, but in no event shall the total of all such irrevocable gifts of income or principal made to the charitable organization administering the trust or one or more of its affiliated charitable organizations before the termination of the trust be less than twenty-five percent (25%) of the income or principal available for distribution from the trust,&nbsp;</span></p> <p class="cls4"><span class="cls0">(3)&nbsp;&nbsp;if the irrevocable gift is of the remainder of the trust which is distributed upon the termination of the trust, the total of all irrevocable gifts of the remainder of the trust made to the charitable organization administering the trust or one or more of its affiliated charitable organizations is as large as the largest distribution made to another remainderman who is not the charitable organization administering the trust or an affiliated charitable organization, but in no event shall the total of all irrevocable gifts of the remainder of the trust made to the charitable organization administering the trust or one or more of its affiliated charitable organizations be less than twenty-five percent (25%) of the remainder of the trust which is available for distribution at the termination of the trust, and&nbsp;</span></p> <p class="cls4"><span class="cls0">(4)&nbsp;&nbsp;if distributions of income from the trust are made to beneficiaries who are not charitable organizations, such distributions are in an amount specified by the donor in the governing instrument, or, if not in an amount specified by the donor in the governing instrument, are in an amount not less than five percent (5%) of the value of the principal of the trust determined annually, reduced by distributions of current income from the trust to charitable organizations, if any; and&nbsp;</span></p> <p><span class="cls0">3. "Affiliated charitable organization" means another charitable organization which directly or indirectly controls or is under direct or indirect common control with the charitable organization acting in a fiduciary capacity.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 4, emerg. eff. April 15, 1997. Amended by Laws 2007, c. 91, &sect; 11, eff. Nov 1, 2007.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.4. Fiduciary capacities.&nbsp;</span></p> <p><span class="cls0">Charitable organizations shall be permitted to act in the following fiduciary capacities within this state:&nbsp;</span></p> <p><span class="cls0">1. To act as trustee under charitable trusts created by will, inter vivos declaration of trust or trust agreement, corporate resolution, or order, judgment or decree of any of the courts of record of this state or of any state or of the United States;&nbsp;</span></p> <p><span class="cls0">2. To accept and execute all charitable trusts and perform such duties of every description as may be committed to them under such trust by any person or persons, any corporation, or any order, judgment or decree of any of the courts of record of this state or of any state or of the United States provided that such duties are not inconsistent with the charitable, religious, educational, or other eleemosynary purposes of the charitable organization;&nbsp;</span></p> <p><span class="cls0">3. To take, accept and hold by gift, grant, assignment, transfer, devise or bequest of any person or persons, any corporation, or any order, judgment or decree of any of the courts of record of this state or of any state or of the United States any real or personal property as a charitable trust;&nbsp;</span></p> <p><span class="cls0">4. To execute and perform any and all charitable trusts upon the terms, conditions, limitations and restrictions which may be declared, imposed, established or agreed upon in and by the person or persons, corporation, or order, judgment, decree, gift, grant, assignment, transfer, devise or bequest establishing such trust;&nbsp;</span></p> <p><span class="cls0">5. To act as attorney-in-fact for any person establishing a charitable trust; and&nbsp;</span></p> <p><span class="cls0">6. To act as personal representative in the probate of the will of any decedent, whether such decedent was a resident of this state or not, and whether the probate of the will of such decedent is by original or ancillary proceeding, where the will makes a present or future gift to or confers a present or future benefit on the charitable organization serving as personal representative or one or more of its affiliated charitable organizations and the total of all gifts made to the charitable organization serving as personal representative or one or more of its affiliated charitable organizations in the will is as large as the largest distribution made to another person who is not a charitable organization, but in no event shall the total of all gifts made to the charitable organization serving as personal representative or one or more of its affiliated charitable organizations in the will be less than twenty-five percent (25%) of the estate which is available for distribution.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 5, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.5. Charitable organizations authorized to exercise certain powers as trustees.&nbsp;</span></p> <p><span class="cls0">In addition to the powers conferred on fiduciaries by the Oklahoma Trust Act, the Uniform Prudent Management of Institutional Funds Act, and the Oklahoma Uniform Prudent Investor Act, all charitable organizations acting as trustees of charitable trusts shall expressly be permitted to exercise the following powers:&nbsp;</span></p> <p><span class="cls0">1. To limit the investment of property received in trust to investments in real or personal property; securities including bonds, stocks, all kinds of negotiable and nonnegotiable paper; and other investment instruments, which are consistent with the charitable, religious, educational, or other eleemosynary purposes of the charitable organization;&nbsp;</span></p> <p><span class="cls0">2. To make distributions from an institutional endowment fund as that term is defined in the Uniform Prudent Management of Institutional Funds Act in a manner that will provide a consistent source of funds to charitable organizations benefited by such charitable trusts;&nbsp;</span></p> <p><span class="cls0">3. For assets held in an institutional endowment fund as that term is defined in the Uniform Prudent Management of Institutional Funds Act, to invest in loans of money upon adequate collateral security to affiliated charitable organizations provided that the charitable organization serving in a fiduciary capacity conforms to the standard for care set forth in the document creating the trust or, in the absence of a standard of care in the document creating the trust, to the standard of care for fiduciaries as set forth in the Oklahoma Trust Code, the Uniform Prudent Management of Institutional Funds Act, and the Oklahoma Uniform Prudent Investor Act, and provided further that the loan furthers the charitable, religious, educational and other eleemosynary purposes of the affiliated charitable organization;&nbsp;</span></p> <p><span class="cls0">4. To recover costs and expenses to include a reasonable charge for administrative overhead incurred in administering charitable trusts to include costs incurred for investment counselors, advisors and agents; and&nbsp;</span></p> <p><span class="cls0">5. To delegate the investment of assets of charitable trusts and the administration of charitable trusts to state banks in Oklahoma having trust powers, national banking associations having trust powers, and trust companies having trust powers.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 6, emerg. eff. April 15, 1997. Amended by Laws 2007, c. 91, &sect; 12, eff. Nov. 1, 2007.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.6. Fidelity bonds.&nbsp;</span></p> <p><span class="cls0">A. Governing board must require fidelity bonds. The governing board of a charitable organization serving as trustee of a charitable trust shall require good and sufficient fidelity bonds on all officers and employees who are involved in the funding and administration of a charitable trust, whether or not they are paid a salary or other compensation. The fidelity bonds shall indemnify the charitable trusts administered by a charitable organization for loss sustained to a charitable trust as the result of dishonest, fraudulent, or criminal conduct by the officers and employees of the charitable organization, whether acting independently or in collusion with any person or persons.&nbsp;</span></p> <p><span class="cls0">B. Form and premiums of fidelity bonds. The governing board of a charitable organization serving as trustee of a charitable trust shall determine the amount and form of its fidelity bonds. The premiums for its fidelity bonds shall be paid by the charitable organization and the cost of premiums may be included in the administrative overhead of the charitable organization.&nbsp;</span></p> <p><span class="cls0">C. Annual review of fidelity bonds. At least once each calendar year the governing board of a charitable organization serving as trustee of a charitable trust shall evaluate all known elements and factors constituting its risk of loss due to dishonest, fraudulent, or criminal conduct by its officers and employees and determine if the amount and form of its fidelity bonds are sufficient. The governing board shall then require fidelity bonds in such amounts and form as are sufficient to protect its charitable trusts from such risk or hazard. The action of the governing board in determining the amount and form of its fidelity bonds shall be recorded in the minutes of the governing board.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 7, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.7. Powers of charitable organizations acting as trustees of charitable trusts - Common charitable trust funds investments - Reporting - Recovery of costs - Accounting to court.&nbsp;</span></p> <p><span class="cls0">A. Definitions. For purposes of this section:&nbsp;</span></p> <p><span class="cls0">1. "Common charitable trust fund" means a fund composed of assets from two or more charitable trusts and other charitable assets which are pooled for investment;&nbsp;</span></p> <p><span class="cls0">2. "Other charitable assets" means assets owned by an affiliated charitable organization or assets contributed to the charitable organization administering the common charitable trust fund in exchange for the issuance of charitable gift annuity contracts; and&nbsp;</span></p> <p><span class="cls0">3. "Affiliated charitable organization" means another charitable organization which directly or indirectly controls or is under direct or indirect common control with the charitable organization administering a common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">B. Powers. Any charitable organization acting as a trustee of charitable trusts in this state may:&nbsp;</span></p> <p><span class="cls0">1. Establish one or more common charitable trust funds for the exclusive purpose of furnishing investments to itself as fiduciary, to itself and others as cofiduciaries, or to affiliated charitable organizations;&nbsp;</span></p> <p><span class="cls0">2. Invest funds which it holds for investment in such common charitable trust funds, unless:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;the investment is prohibited by the instrument, judgment, decree, or order creating the fiduciary relationship,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;consent to investment in the common charitable trust fund is intentionally withheld in writing by a cofiduciary, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;a cofiduciary that is not a charitable organization has the right to direct the management of the common charitable trust fund; and&nbsp;</span></p> <p><span class="cls0">3. Employ and delegate to investment advisors, investment counselors, state banks in Oklahoma having trust powers, national banking associations having trust powers, and trust companies having trust powers the discretion to make specific investment decisions provided that the charitable organization shall at all times maintain ultimate control of the management of the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">C. Common charitable trust fund investments.&nbsp;</span></p> <p><span class="cls0">1. A charitable organization administering a common charitable trust fund shall not commingle its administrative and operating funds with its common charitable trust funds but may place its endowment and funds its governing board has designated as endowment in its common charitable trust funds.&nbsp;</span></p> <p><span class="cls0">2. Each charitable trust and each other charitable asset shall be deemed to own a proportionate share of each asset of the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">3. In determining whether the investment in the common charitable trust fund by the charitable trust is a proper investment for assets held by a fiduciary, the charitable organization acting as fiduciary may consider the common charitable trust fund as a whole and shall not be prohibited from making the investment if any one or more of the assets of the common charitable trust fund are nonincome producing or might not otherwise be considered proper investments for a fiduciary account.&nbsp;</span></p> <p><span class="cls0">4. The charitable organization administering a common charitable trust fund may limit investments in its common charitable trust funds to investments which are compatible with or further the charitable, religious, educational, or other eleemosynary purposes of the charitable organization administering the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">5. The charitable organization administering a common charitable trust fund consisting solely of assets held in an endowment fund, as that term is defined in the Uniform Prudent Management of Institutional Funds Act, may invest such assets in loans upon adequate collateral security to an affiliated charitable organization provided that the charitable organization administering the common charitable trust fund conforms to the standard for care set forth in the documents creating the trusts or, in the absence of a standard of care in the documents creating the trusts, to the standard of care for fiduciaries as set forth in the Oklahoma Trust Code, the Uniform Prudent Management of Institutional Funds Act, and the Oklahoma Uniform Prudent Investor Act, and provided further that the loan furthers the charitable, religious, educational and other eleemosynary purposes of the affiliated charitable organization.&nbsp;</span></p> <p><span class="cls0">6. In selecting investments and when making investment decisions pursuant to this subsection, the charitable organization shall be bound by the provisions of the Oklahoma Charitable Fiduciary Act, the Oklahoma Trust Act, the Uniform Prudent Management of Institutional Funds Act, and the Oklahoma Uniform Prudent Investor Act, unless otherwise provided by law.&nbsp;</span></p> <p><span class="cls0">7. Nothing in this subsection shall diminish the standard of care of a fiduciary of charitable trust funds or institutional endowment funds.&nbsp;</span></p> <p><span class="cls0">D. Reporting.&nbsp;</span></p> <p><span class="cls0">1. The charitable organization administering a common charitable trust fund shall keep records which shall at all times show all necessary and proper matters related to the administration of the common charitable trust fund to include the proportionate interest in the common charitable trust fund of each trust or investment account of an affiliated charitable organization.&nbsp;</span></p> <p><span class="cls0">2. Within one hundred twenty (120) days following the end of the common charitable trust fund's fiscal year, the charitable organization administering a common charitable trust fund shall make a report of the condition of the common charitable trust fund. This report shall include, as of the date of the report, a list of the investments comprising the common charitable trust fund and the value placed on each investment on such list by the charitable organization. The report shall also include a statement of income and disbursements since the last report and appropriate comments as to any investment in default as to payment of principal or interest. The reasonable expenses of preparing the report may be charged to the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">3. The charitable organization shall send a copy of the latest report required by this subsection annually to each person to whom a regular periodic accounting of the trusts or other charitable assets participating in the common charitable trust fund ordinarily would be rendered, or shall advise each such person annually that the report is available and that a copy will be furnished without charge upon request.&nbsp;</span></p> <p><span class="cls0">E. Recovery of costs. The charitable organization administering a common charitable trust fund may recover its costs of administration of the common charitable trust fund to include a reasonable charge for administrative overhead and the fees and costs of investment advisors, counselors and agents.&nbsp;</span></p> <p><span class="cls0">F. Accounting to court. Unless ordered by a court of competent jurisdiction, the charitable organization administering common charitable trust funds is not required to render an accounting to the court with regard to such funds. The charitable organization administering a common charitable trust fund may, by application to the district court, secure approval of such an accounting after such notice, and on such conditions as the court may establish.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 8, emerg. eff. April 15, 1997. Amended by Laws 2007, c. 91, &sect; 13, eff. Nov. 1, 2007.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.8. Private inurement prohibited.&nbsp;</span></p> <p><span class="cls0">No private inurement.&nbsp;</span></p> <p><span class="cls0">1. Employees, officers, and members of the governing board of the charitable organization administering a charitable trust or the common charitable trust fund shall not receive commissions, bonuses, or other remuneration based on the solicitation of charitable trusts or investment of assets in the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">2. Employees, officers, and members of the governing board of the charitable organization administering a charitable trust or the common charitable trust fund shall not receive loans, gifts, or other pecuniary benefits from a charitable trust or the common charitable trust fund except that employees and officers of the charitable organization may receive reasonable compensation for their employment as a part of the administrative overhead of the charitable organization administering a charitable trust or the common charitable trust fund.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 9, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.9. Annual audit.&nbsp;</span></p> <p><span class="cls0">Each year a charitable organization administering charitable trusts shall have prepared a comprehensive annual audit conforming to generally accepted accounting principles which is certified by an independent certified public accounting firm. A copy of this annual audit shall be delivered to the Oklahoma Banking Department within ninety (90) days of receipt of the final audit report by the charitable organization. The Oklahoma Banking Department shall serve only as a depository of the annual audits received by it but the audit reports shall be made available for inspection by the public. Nothing in this provision shall be construed either to authorize the Oklahoma Banking Department to exercise regulatory authority over charitable organizations exercising the powers and rights granted by this act or to create any duty on the Oklahoma Banking Department to enforce any provision of this act, including the obligation of a charitable organization to submit an annual audit.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 10, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.10. Inapplicability of Oklahoma Open Records Act and Oklahoma Open Meeting Act.&nbsp;</span></p> <p><span class="cls0">Nothing herein shall be construed to subject a charitable organization to the Oklahoma Open Records Act or the Oklahoma Open Meeting Act, provided however that the annual audit reports which are in the possession of the Oklahoma Banking Department because of having been delivered by charitable organizations pursuant to Section 10 of this act shall be deemed a "record" as defined in the Oklahoma Open Records Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 11, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.11. Applicability of act.&nbsp;</span></p> <p><span class="cls0">Subject to Section 14 of this act, the provisions of this act shall apply to charitable trusts and fiduciary relationships of charitable organizations in existence at the time this act takes effect or thereafter established and to resolve the uncertainties surrounding the administration of charitable trusts by charitable organizations and the exercise of the fiduciary powers set forth in this act. Nothing in this act shall govern, control, or restrict the activities of a charitable organization when acting in a nonfiduciary capacity on behalf of any third party.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 12, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.12. Applicability of other laws.&nbsp;</span></p> <p><span class="cls0">The provisions of Section 161 of Title 60 of the Oklahoma Statutes and of the Oklahoma Trust Act, Sections 175.1 to 175.56, inclusive, of Title 60 of the Oklahoma Statutes which are in conflict with this act are not applicable to charitable trusts. Provided however, with the exception of such provisions that are in conflict, charitable organizations shall be subject to all other provisions of law, now existing and hereafter adopted or adjudicated, which affect fiduciary responsibilities.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 13, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-301.13. Charitable organizations administering trusts that are not charitable trusts.&nbsp;</span></p> <p><span class="cls0">Charitable organizations administering trusts that are not charitable trusts as defined in this act as of ninety (90) days after the effective date of this act or September 1, 1997, whichever date is the first to occur, shall be permitted to continue administering those trusts until these trusts terminate.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1997, c. 99, &sect; 14, emerg. eff. April 15, 1997.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60311. Law governing personalty.&nbsp;</span></p> <p><span class="cls0">If there is no law to the contrary in the place where personal property is situated, it is deemed to follow the person of its owner, and is governed by the law of his domicile.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6738. &nbsp;</span></p> <p><span class="cls0">&sect;60312. Thing in action.&nbsp;</span></p> <p><span class="cls0">A thing in action is a right to recover money or other personal property, by judicial proceedings.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6739. &nbsp;</span></p> <p><span class="cls0">&sect;60313. Thing in action may be transferred.&nbsp;</span></p> <p><span class="cls0">A thing in action, arising out of the violation of a right of property, or out of an obligation, may be transferred by the owner. Upon the death of the owner, it passes to his personal representatives, except where, in the case provided by law, it passes to his devisees or successors in office.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6740. &nbsp;</span></p> <p><span class="cls0">&sect;60314. Trademarks.&nbsp;</span></p> <p><span class="cls0">One who produces or deals in a particular thing or conducts a particular business, may appropriate to his exclusive use, as a trademark, any form, symbol or name which has not been so appropriated by another, to designate the origin or ownership thereof; but he cannot exclusively appropriate any designation, or part of a designation, which relates only to the name, quality, or the description of the thing or business, or the place where the thing is produced, or the business is carried on.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60315. Goodwill.&nbsp;</span></p> <p><span class="cls0">The goodwill of a business is the expectation of continued public patronage, but it does not include a right to use the name of any person from whom it was acquired.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6742. &nbsp;</span></p> <p><span class="cls0">&sect;60316. Goodwill as property.&nbsp;</span></p> <p><span class="cls0">The goodwill of a business is property, transferable like any other.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6743. &nbsp;</span></p> <p><span class="cls0">&sect;60317. Title deeds.&nbsp;</span></p> <p><span class="cls0">Instruments essential to the title of real property, and which are not kept in a public office as a record pursuant to law, belong to the person in whom, for the time being, such title may be vested, and pass with the title.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6744. &nbsp;</span></p> <p><span class="cls0">&sect;60319. Oil and gas well equipment Lease, loan or option to purchase Filing instrument in county clerk's office.&nbsp;</span></p> <p><span class="cls0">Any instrument in writing leasing or lending or giving option to purchase any personal property, used in the digging, drilling, completing or equipping of an oil and gas well shall be void as against innocent purchasers or creditors of the lessee or bailee, unless the original instrument, or a true copy thereof, shall have been filed prior to the time the rights of any innocent purchaser or the creditors of the lessee or bailee accrue or come into being, in the office of the county clerk of the county in which the lessee or bailee keeps or uses such personal property.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 265, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60320. Filing and indexing.&nbsp;</span></p> <p><span class="cls0">The said instrument shall be filed and indexed by the county clerk in the same manner in which chattel mortgages are now filed and indexed.&nbsp;</span></p> <p><span class="cls0">Laws 1941 P. 266, Sec. 2.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60321. Verbal lease or loan void as against innocent purchasers or creditors.&nbsp;</span></p> <p><span class="cls0">Any verbal leasing or lending of personal property used in the digging, drilling, completing or equipping an oil and gas well shall be void as against innocent purchasers or creditors of the lessee or bailee.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1941, p. 266, &sect; 3. &nbsp;</span></p> <p><span class="cls0">&sect;60326. Perpetuities and restraints on alienation.&nbsp;</span></p> <p><span class="cls0">No retirement, pension or profit sharing plan, qualified for tax exemption purposes under present or future Acts of Congress, or any trusts, insurance and annuity contracts constituting a part thereof, shall be construed as violating the rule or law against perpetuities, or any rule or law against restraints on alienation; provided the power of alienation or the vesting of the interest of any person in such plan, trust or contract shall not be suspended for a longer period than the duration of the lives of the designated beneficiaries of such particular interest, in being at the time of designation, plus twentyone (21) years.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 344, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60327. Provisions against alienation or encumbrance.&nbsp;</span></p> <p><span class="cls0">Any such plan, trust or contract may provide against the alienation or encumbrance of the interest of any person therein and further provide that no interest therein shall be subject to garnishment, attachment, execution or the claims of creditors of the persons having an interest therein.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60328. Power to alienate or encumber Exemption from process and claims.&nbsp;</span></p> <p><span class="cls0">Any person having an interest in any such plan, trust or contract, or in any property or any right subject to any such plan, trust or contract, containing the provisions set forth in the next preceding section of this act, or provisions of substantially the same force and effect, shall have no right to alienate or encumber such right or interest in any manner contrary thereto, and the interest of any such person in any such plan, trust or contract, or in any property or any right subject to any such plan, trust or contract, shall be exempt from garnishment, attachment, execution or the claims of creditors.&nbsp;</span></p> <p><span class="cls0">Laws 1953 P. 344, Sec. 3.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60331. Property acquired, how.&nbsp;</span></p> <p><span class="cls0">Property is acquired by:&nbsp;</span></p> <p><span class="cls0">1. Occupancy.&nbsp;</span></p> <p><span class="cls0">2. Accession.&nbsp;</span></p> <p><span class="cls0">3. Transfer.&nbsp;</span></p> <p><span class="cls0">4. Will; or,&nbsp;</span></p> <p><span class="cls0">5. Succession.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6746. &nbsp;</span></p> <p><span class="cls0">&sect;60332. Title by occupancy.&nbsp;</span></p> <p><span class="cls0">Occupancy for any period confers a title sufficient against all except the state, and those who have title by prescription, accession, transfer, will or succession.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">R.L.1910, &sect; 6747. &nbsp;</span></p> <p><span class="cls0">&sect;60333. Prescription, title by.&nbsp;</span></p> <p><span class="cls0">Occupancy for the period prescribed by civil procedure, or any law of this state as sufficient to bar an action for the recovery of the property, confers a title thereto, denominated a title by prescription, which is sufficient against all.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6748. &nbsp;</span></p> <p><span class="cls0">&sect;60334. Fixture may not be moved Exceptions.&nbsp;</span></p> <p><span class="cls0">When a person affixes his property to the land of another without an agreement permitting him to remove it, the thing affixed belongs to the owner of the land, unless he chooses to require or permit the former to remove it: Provided, that a tenant may remove from the demised premises at any time during the continuance of his term any thing affixed thereto for purpose of trade, manufacture, ornament or domestic use, if the removal can be effected without injury to the premises, unless the thing has, by the manner in which it is affixed, become an integral part of the premises.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60335. Riparian accretions.&nbsp;</span></p> <p><span class="cls0">Where from natural causes land forms by imperceptible degrees upon the bank of a river or stream, navigable or not navigable, either by accumulation of material or by the recession of the stream, such land belongs to the owner of the bank, subject to any existing right of way over the bank.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6750. &nbsp;</span></p> <p><span class="cls0">&sect;60336. Removals in mass may be reclaimed.&nbsp;</span></p> <p><span class="cls0">If a river or stream carries away, by sudden violence, a considerable and distinguishable part of a bank, and bears it to the opposite bank, or to another part of the same bank, the owner of the part carried away may reclaim it within a year after the owner of the land to which it has been united takes possession thereof.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6751. &nbsp;</span></p> <p><span class="cls0">&sect;60337. Islands in navigable streams.&nbsp;</span></p> <p><span class="cls0">Islands and accumulations of land formed in the beds of streams which are navigable, belong to the State, if there is no title or prescription to the contrary.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6752. &nbsp;</span></p> <p><span class="cls0">&sect;60338. Islands in other streams.&nbsp;</span></p> <p><span class="cls0">An island or accumulation of land, formed in a stream which is not navigable, belongs to the owner of the shore on that side where the island or accumulation is formed, or if not formed on one side only, to the owners of the shore on the two sides, divided by an imaginary line drawn through the middle of the river. R.L. 1910 Sec. 6753.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6753. &nbsp;</span></p> <p><span class="cls0">&sect;60339. Island formed by a new channel.&nbsp;</span></p> <p><span class="cls0">If a stream, in forming itself a new arm, divides itself and surrounds land belonging to the owner of the shore, and thereby forms an island, the island belongs to such owner.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6754. &nbsp;</span></p> <p><span class="cls0">&sect;60340. Ownership of ancient bed.&nbsp;</span></p> <p><span class="cls0">If a stream forms a new course, abandoning its ancient bed, the owners of the land newly occupied take, by way of indemnity, the ancient bed abandoned, each in proportion to the land of which he has been deprived.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6755. &nbsp;</span></p> <p><span class="cls0">&sect;60341. Things inseparably united.&nbsp;</span></p> <p><span class="cls0">When things belonging to different owners have been united so as to form a single thing, and cannot be separated without injury, the whole belongs to the owner of the thing which forms the principal part, who must, however, reimburse the value of the residue to the other owner, or surrender the whole to him.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6756. &nbsp;</span></p> <p><span class="cls0">&sect;60342. Principal part defined.&nbsp;</span></p> <p><span class="cls0">That part is to be deemed the principal to which the other has been united only for the use, ornament or completion of the former, unless the latter is the more valuable and has been united without the knowledge of its owner, who may in the latter case require it to be separated and returned to him, although some injury should result to the thing to which it has been united.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6757. &nbsp;</span></p> <p><span class="cls0">&sect;60343. Principal part, how determined.&nbsp;</span></p> <p><span class="cls0">If neither part can be considered the principal, within the rules prescribed by the last section, the more valuable, or if the values are nearly equal, the more considerable in bulk, is to be deemed the principal part.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6758. &nbsp;</span></p> <p><span class="cls0">&sect;60344. Work and material combined.&nbsp;</span></p> <p><span class="cls0">If one makes a thing from materials belonging to another, the latter may claim the thing on reimbursing the value of the workmanship, unless the value of the workmanship exceeds the value of the materials, in which case the thing belongs to the maker, on reimbursing the value of the materials.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6759. &nbsp;</span></p> <p><span class="cls0">&sect;60345. Blended materials.&nbsp;</span></p> <p><span class="cls0">Where one has made use of materials which in part belong to him and in part to another, in order to form a thing of a new description, without having destroyed any of the materials, but in such a way that they cannot be separated without inconvenience, the thing formed is common to both proprietors in proportion, as respects the one, of the materials belonging to him, and as respects the other, of the materials belonging to him and the price of his workmanship.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6760. &nbsp;</span></p> <p><span class="cls0">&sect;60346. Admixtures of materials of different owners.&nbsp;</span></p> <p><span class="cls0">When a thing has been formed by the admixture of several materials of different owners, and neither can be considered the principal substance, an owner, without whose consent the admixture was made, may require a separation, if the materials can be separated without inconvenience. If they cannot be thus separated, the owners acquire the thing in common, in proportion to the quantity, quality and value of their materials; but if the materials of one were far superior to those of the others, both in quantity and value, he may claim the thing on reimbursing to the others the value of their materials.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6761. &nbsp;</span></p> <p><span class="cls0">&sect;60347. Use without owner's consent.&nbsp;</span></p> <p><span class="cls0">The foregoing sections of this article are not applicable to cases in which one willfully uses the materials of another without his consent; but, in such cases, the product belongs to the owner of the material, if its identity can be traced.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6762. &nbsp;</span></p> <p><span class="cls0">&sect;60348. Right of owner.&nbsp;</span></p> <p><span class="cls0">In all cases where one, whose material has been used without his knowledge, in order to form a product of a different description, can claim an interest in such product, he has an option to demand either restitution of his material in kind, in the same quantity, weight, measure and quality or the value thereof; or where he is entitled to the product, the value thereof in place of the product.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6763. &nbsp;</span></p> <p><span class="cls0">&sect;60349. Damages.&nbsp;</span></p> <p><span class="cls0">One who wrongfully employs materials belonging to another is liable to him in damages, as well as under the foregoing provisions of this article.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">R.L.1910, &sect; 6764. &nbsp;</span></p> <p><span class="cls0">&sect;60-350. Definitions - Legislative findings - Recorded transfer fees.&nbsp;</span></p> <p><span class="cls0">A. As used in this section:&nbsp;</span></p> <p><span class="cls0">1. &ldquo;Association&rdquo; means a nonprofit mandatory membership organization comprised of owners of homes, condominiums, cooperatives, manufactured homes, or any interest in real property, created pursuant to a declaration, covenant, or other applicable law;&nbsp;</span></p> <p><span class="cls0">2. &ldquo;Transfer&rdquo; means the sale, gift, grant, conveyance, assignment, inheritance, or other transfer of an interest in real property located in this state;&nbsp;</span></p> <p><span class="cls0">3. &ldquo;Transfer fee&rdquo; means a fee or charge imposed by a transfer fee covenant, but shall not include any tax, assessment, fee or charge imposed by a governmental authority pursuant to applicable laws, ordinances, or regulations; and&nbsp;</span></p> <p><span class="cls0">4. &ldquo;Transfer fee covenant&rdquo; means a provision in a document, whether recorded or not and however denominated, which purports to run with the land or bind current owners, purchasers or successors in title to specified real property located in this state, and which obligates a transferee or transferor of all or part of the property or any interest thereon to pay a fee or charge to a third person or entity upon transfer of an interest in all or part of the property, or in consideration for permitting any such transfer. The term &ldquo;transfer fee covenant&rdquo; shall not include:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;any provision of a purchase contract, option, mortgage, security agreement, real property listing agreement, or other agreement that obligates one party to the agreement to pay the other party as full or partial consideration for the agreement or for a waiver of rights under the agreement if the amount to be paid is:&nbsp;</span></p> <p class="cls4"><span class="cls0">(1)&nbsp;&nbsp;a loan assumption fee or similar fee charged by a lender that holds a mortgage on the property, and &nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;a fee or commission paid to a licensed real estate broker for brokerage services rendered in connection with the transfer of the property for which the fee or commission is paid,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;any provision in a deed, memorandum or other document recorded for the purpose of providing record notice of an agreement prescribed in subparagraph a of paragraph 4 of subsection A of this section,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;any rent, reimbursement, charge, fee or other amount payable by a lessee to a lessor under a lease, including any fee payable to the lessor for consenting to an assignment, sublease, encumbrance or transfer of the lease,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;any consideration payable to the holder of an option to purchase an interest in the real property or to the holder of a right of first refusal or first offer to purchase an interest in real property and paid for waiving, releasing or not exercising the option or right on transfer of the property to another person, provided that the payment is on a one-time basis upon the next transfer, and once paid shall not bind successors in title to the property,&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;any fee, charge, assessment, dues, contribution or other amount relating to the purchase or transfer of a club membership related to the real property owner by the transferor,&nbsp;</span></p> <p class="cls3"><span class="cls0">f.&nbsp;&nbsp;any provision of a document requiring payment of a fee or charge to an association comprised of owners of properties described therein to be used exclusively for purposes authorized in the document, as long as no portion of the fee is required to be passed through to a third party or entity designated or identifiable by description in the document or another document referenced therein, and&nbsp;</span></p> <p class="cls3"><span class="cls0">g.&nbsp;&nbsp;any fee that is charged as a typical real estate closing cost, including but not limited to escrow fees, settlement fees, abstracting fees, legal fees or title insurance premiums.&nbsp;</span></p> <p><span class="cls0">B. The Legislature makes the following findings:&nbsp;</span></p> <p><span class="cls0">1. The public policy of this state favors the transferability of interest in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and&nbsp;</span></p> <p><span class="cls0">2. A transfer fee covenant violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the covenant or the amount of the transfer fee set forth in the covenant.&nbsp;</span></p> <p><span class="cls0">C. A transfer fee recorded, filed or entered into in this state on or after the effective date of this section does not run with the title to real property and is not binding on or enforceable at law or in equity against any owner, subsequent owner, purchaser or mortgagee of any interest in real property as an equitable servitude, personal obligation or otherwise. Any private transfer fee obligation that is recorded, filed or entered into in this state on or after the effective date of this section is void and unenforceable.&nbsp;</span></p> <p><span class="cls0">D. Nothing in this section shall imply that a transfer fee covenant recorded prior to the effective date of this section is valid or enforceable.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2011, c. 282, &sect; 1.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60361. Absentees, who are Authority to appoint conservator Notice of hearing Production of official statement.&nbsp;</span></p> <p><span class="cls0">A person hereinafter referred to as an "absentee" is one missing from his usual place of residence and his address is unknown by his family or those who, in the ordinary course of events, would be expected to know his whereabouts and has been continuously absent and unheard of for a period of six (6) months or longer, and is presumed missing and incapable or unable to manage his affairs or property or by permission, assignment or direction of any department or official of the United States in connection with any activity pertaining to or connected with the prosecution of any war in which the United States is then engaged, who has been reported or listed for a period not less than three (3) months by the Department of Defense or other department of the United States as missing, or missing in action, or interned in a neutral country, or beleaguered, besieged, or captured by an enemy. The judge of the district court of the county of such absentee's lastknown legal domicile upon petition alleging the foregoing facts and showing the necessity for providing care of the property of such absentee made, verified and filed by any person who would be entitled to administer upon the absentee's estate if he were dead, after causing notice to be given as hereinafter provided, may, upon good cause being shown, after finding the facts to be as aforesaid, appoint a conservator to take charge of the absentee's estate under the supervision and subject to the further orders of the court, provided, however, that before any such conservator may be appointed notice of the hearing upon the petition shall be given as is provided by law for hearings upon petition for appointment of administrators, and in addition thereto, notice thereof shall be given to said absentee by publication for two (2) consecutive weeks in a legal newspaper in the county where said proceedings are pending, the last publication of said notice to be at least fifteen (15) days before the hearing on said petition. Provided, further, when the status of absentee is given by the Department of Defense or other department of the United States a conservator may be appointed only if there is produced at the hearing an official statement signed by a proper official of the United States Government that there has been no change in the status of the absentee from the date of the first report, which statement shall be dated not more than fifteen (15) days before said hearing or any date to which the same may be continued by order of the court.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 189, &sect; 1; Laws 1945, p. 214, &sect; 1; Laws 1971, c. 233, &sect; 1, eff. Oct. 1, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60362. Discretion of court Bond of appointee.&nbsp;</span></p> <p><span class="cls0">The court shall have full discretionary authority to appoint any suitable person as such conservator and may require such conservator to execute a surety bond to the State of Oklahoma, to be approved by the judge of said court, and in such sum as he shall order, conditioned that the conservator will faithfully execute the duties of his trust according to law.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 189, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60363. Powers and authority of conservator.&nbsp;</span></p> <p><span class="cls0">The conservator shall have the same powers and authority as the guardian of the property of an infant or incompetent person as now provided by the laws of this state, except that said conservator shall have no power to sell or petition to sell any portion of the absentee's real property until after the lapse of six (6) months from the time of the original appointment of a conservator for such estate, but nothing herein contained shall prevent the conservator from letting or leasing the absentee's real estate in the same manner that a guardian could lease land of his ward.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 189, &sect; 3; Laws 1945, p. 214, &sect; 2. &nbsp;</span></p> <p><span class="cls0">&sect;60364. Oath of office.&nbsp;</span></p> <p><span class="cls0">Before entering upon the duties of his office the conservator shall take and subscribe an oath, before some officer authorized to administer oaths, that he will perform, according to law, the duties of conservator which oath shall be attached to and filed with the order appointing him.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 189, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60365. Reports and accounts Fees for services.&nbsp;</span></p> <p><span class="cls0">The conservator shall make and file reports and accounts as often as may be required by the judge of said court and said court may allow fees for services rendered by such conservator in the manner and on the basis as provided by the laws of this state for the allowance of fees to guardians of minors and incompetents.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 190, &sect; 5. &nbsp;</span></p> <p><span class="cls0">&sect;60366. Removal of conservator.&nbsp;</span></p> <p><span class="cls0">When a conservator appointed by the court becomes insane or otherwise incapable of discharging his trust, or unsuitable therefor, or has wasted or mismanaged the estate, or failed for thirty (30) days to render an account or report, the court may upon such notice to the conservator as the court may require, remove him and compel him to surrender the estate to the person found to be lawfully entitled thereto.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 190, &sect; 6. &nbsp;</span></p> <p><span class="cls0">&sect;60367. Termination of conservatorship.&nbsp;</span></p> <p><span class="cls0">At any time upon petition signed by the absentee, or on petition of an attorneyinfact acting under an adequate power of attorney granted by the absentee, the court shall direct the termination of the conservatorship and the transfer of all property held thereunder to the absentee or to the designated attorneyinfact. Likewise, if at any time subsequent to the appointment of a conservator it shall appear that the absentee has died and an executor or administrator has been appointed for his estate, the court shall direct the termination of the conservatorship and the transfer of all property of the deceased absentee held thereunder to such executor or administrator.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1945, p. 190, &sect; 7. &nbsp;</span></p> <p><span class="cls0">&sect;60381. Capacity to take property by gift.&nbsp;</span></p> <p><span class="cls0">The legal capacity of the State of Oklahoma, and of each county, city, town and school district in the state, to take title or any interest therein including, but not limited to, right-of-way or right-of-way easements in the case of a county, legal, equitable, or both, to any property, real, personal or mixed, by gift, testamentary or otherwise, as well as by purchase, is hereby specifically approved and affirmed.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 288, &sect; 1, emerg. eff. March 30, 1953. Amended by Laws 2001, c. 231, &sect; 4, eff. Nov. 1, 2001.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60382. Tax exemption.&nbsp;</span></p> <p><span class="cls0">No gift, testamentary or otherwise, of any property, real or personal or both, or any interest therein including, but not limited to, right-of-way or right-of-way easements in the case of a county, to the State of Oklahoma, or to any county, city, town, or school district in the state, or to any combination thereof, if accepted upon behalf of the state, county, city, town, or school district, by the officer, proper governing board or commission thereof, nor the transfer of title thereto in accordance with such gift, or the will or other instrument by which such gift is made, nor the privilege of making or receiving such a gift, nor any income or profits derived by such state, county, city, town or school district from any such property or its use or disposition thereof, shall be subject to any form of tax.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 289, &sect; 2, emerg. eff. March 30, 1953. Amended by Laws 2001, c. 231, &sect; 5, eff. Nov. 1, 2001.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-383. Authority to accept gift to state - Delivery of property and muniments of title.&nbsp;</span></p> <p><span class="cls0">A. Except to the extent that such authority is otherwise specifically vested in some other state officer, board, commission, or agency and except as provided in subsections B and C of this section, the Governor of the State of Oklahoma is hereby authorized to accept, upon behalf of this state, any gift, testamentary or otherwise, of any property presented to this state or to any state institution, department, or agency.&nbsp;</span></p> <p><span class="cls0">B. The President Pro Tempore of the Senate and the Speaker of the House of Representatives are hereby authorized to accept, upon behalf of this state, any gift, testamentary or otherwise, of any property presented to the Legislature or either house thereof.&nbsp;</span></p> <p><span class="cls0">C. The Chief Justice of the Supreme Court is hereby authorized to accept, upon behalf of this state, any gift, testamentary or otherwise, of any property presented to the judiciary of this state.&nbsp;</span></p> <p><span class="cls0">D. Except as otherwise provided in Sections 391 through 396 of this title, and except for gifts of cash or the equivalent of cash, delivery of such property, possession thereof, and any muniments of title thereto shall be made to and receipted for by the Director of the Office of Management and Enterprise Services. Gifts of cash or the equivalent of cash shall be made to and receipted for by the Director of the Office of Management and Enterprise Services.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 289, &sect; 3, emerg. eff. March 30, 1953. Amended by Laws 1983, c. 304, &sect; 35, eff. July 1, 1983; Laws 1984, c. 166, &sect; 1, operative July 1, 1984; Laws 2012, c. 304, &sect; 296; Laws 2013, c. 307, &sect; 1, eff. Nov. 1, 2013.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-384. Allotment of property to state institution, department or agency.&nbsp;</span></p> <p><span class="cls0">Any property involved in a gift, testamentary or otherwise, given to the State of Oklahoma or some state officer, board, commission, or agency for the use or benefit of a specified state institution, department, or agency, whether one or more, when accepted by the Governor, President Pro Tempore of the Senate, Speaker of the House of Representatives or Chief Justice of the Supreme Court, and delivered to the Office of Management and Enterprise Services as provided for in Section 383 of this title, shall be allotted by the Office of Management and Enterprise Services to such state institution, department, or agency, in accordance, as nearly as possible, with the terms of the gift.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 289, &sect; 4, emerg. eff. March 30, 1953. Amended by Laws 1983, c. 304, &sect; 36, eff. July 1, 1983; Laws 1984, c. 166, &sect; 2, operative July 1, 1984; Laws 2012, c. 304, &sect; 297; Laws 2013, c. 307, &sect; 2, eff. Nov. 1, 2013.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-385. Allotment of property - Gift for particular purpose.&nbsp;</span></p> <p><span class="cls0">Any property involved in any gift, testamentary or otherwise, given to the State of Oklahoma for a particular purpose or purposes, as distinguished from public purposes generally, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, shall be allotted by said Office of Management and Enterprise Services to the state institution, department, or agency, or the state institutions, departments, or agencies, if any, which, under the applicable statutes, are charged with the performance of the specific purpose or purposes to which such gift is limited or dedicated.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 289, &sect; 5, emerg. eff. March 30, 1953. Amended by Laws 1983, c. 304, &sect; 37, eff. July 1, 1983; Laws 2012, c. 304, &sect; 298.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-386. Allotment of property given without designation of particular purpose - New allotment.&nbsp;</span></p> <p><span class="cls0">Except as may be otherwise provided in Sections 391 through 396 of this title, any real property involved in any gift, testamentary or otherwise, given to this state for public purposes generally or without designation of any particular purpose to which the same is to be devoted, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, and which may be occupied and used advantageously, as determined by the Office of Management and Enterprise Services, by a particular state institution, department, or agency in performing its assigned duties or functions, and any tangible personal property involved in any gift, testamentary or otherwise, given to this state for public purposes generally or without designation of any particular purpose to which the same is to be devoted, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, which is determined to be, by the Office of Management and Enterprise Services, especially suited to the special needs of a particular state institution, department, or agency, or may be used advantageously by a particular state institution, department, or agency in performing its assigned duties or functions, shall be allotted by the Office of Management and Enterprise Services to such state institution, department, or agency. Any such real property which is not occupied and used, or the occupancy and use of which is terminated by the state institution, department, or agency to which it has been so allotted and which may be occupied and used advantageously, as determined by the Office of Management and Enterprise Services, by some other particular state institution, department, or agency in performing its assigned duties or functions, and any such tangible personal property which is not used, or the use of which is terminated, by the state institution, department, or agency to which it has been so allotted and which is determined to be, by the Office of Management and Enterprise Services, especially suited to the special needs of a particular state institution, department, or agency, or may be used advantageously by some other particular state institution, department, or agency in performing its assigned duties or functions, shall be allotted by the Office of Management and Enterprise Services to such other state institution, department, or agency.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 289, &sect; 6, emerg. eff. March 30, 1963. Amended by Laws 1983, c. 304, &sect; 38, eff. July 1, 1983; Laws 2012, c. 304, &sect; 299.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-387. Sale of real property not suitable for particular institutions - Personal property - Lease until sale.&nbsp;</span></p> <p><span class="cls0">Except as may be otherwise provided in Sections 391 through 396 of this title, any real property involved in any gift, testamentary or otherwise, given to this state for public purposes generally or without designation of any particular purpose to which the same shall be devoted, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, which may not be occupied and used advantageously, as determined by the Office of Management and Enterprise Services, by any particular state institution, department, or agency as contemplated by Section 386 of this title, and any tangible personal property involved in any gift, testamentary or otherwise, given to this state for public purposes generally or without designation of any particular purpose to which the same shall be devoted, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, which is determined to be, by the Office of Management and Enterprise Services, not especially suited to the special needs of any particular state institution, department, or agency, or may not be used advantageously by any particular state institution, department, or agency in performing its assigned duties or functions, as contemplated by Section 386 of this title, shall be sold by the Office of Management and Enterprise Services as required by law. If, in the judgment of the Office of Management and Enterprise Services, any such real property which is or becomes subject to sale may not be sold immediately to advantage, it may be leased or otherwise rented, until such time as, in the opinion of said Office, it may be sold to advantage.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 290, &sect; 7, emerg. eff. March 30, 1953. Amended by Laws 1983, c. 304, &sect; 39, eff. July 1, 1983; Laws 1997, c. 292, &sect; 4, eff. July 1, 1997; Laws 2012, c. 304, &sect; 300.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60388. Sale of stocks, bonds, choses in action and intangible personal property.&nbsp;</span></p> <p><span class="cls0">Except as may be otherwise provided in Sections 391 through 396 of this title, any stocks, bonds, choses in action, or other intangible personal property, except cash or the equivalent thereof, involved in a gift, testamentary or otherwise, given to this state for public purposes generally and without designation of any particular purpose to which the same shall be devoted, when accepted by the Governor and delivered to the Office of Public Affairs, as provided for in Section 383 of this title, shall be converted, by the Office of Public Affairs, into cash as soon as may be practicable.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1983, c. 304, &sect; 40, eff. July 1, 1983. &nbsp;</span></p> <p><span class="cls0">&sect;60-389. Money included in gift - Income and proceeds of sales - Deposit to credit of General Revenue Fund.&nbsp;</span></p> <p><span class="cls0">Except as may be otherwise provided in Sections 391 through 396 of this title, any cash or the equivalent thereof involved in any gift, testamentary or otherwise, given to this state for public purposes generally or without designation to any particular purpose to which the same shall be devoted, when accepted by the Governor and delivered to the Office of Management and Enterprise Services, as provided for in Section 383 of this title, together with all income, interest, rentals, or otherwise, from any property delivered to the Office of Management and Enterprise Services pursuant to the provisions of Section 383 and Sections 386 through 388 of this title, and all cash derived from sales, or other conversions into cash, of such other property as provided for in Sections 386 through 388 of this title, shall be deposited in the State Treasury to the credit of the General Revenue Fund for the fiscal year in which it is received.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1953, p. 290, &sect; 9, emerg. eff. March 30, 1953. Amended by Laws 1983, c. 304, &sect; 41, eff. July 1, 1983; Laws 1984, c. 166, &sect; 3, operative July 1, 1984; Laws 2012, c. 304, &sect; 301.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60390. Acceptance by counties, cities, towns and school districts Delivery Receipts.&nbsp;</span></p> <p><span class="cls0">The board of county commissioners of each county of the state, as to such county, and the governing board of each city, town and school district of the state, as to each such governmental subdivision, is hereby authorized in its discretion to accept, upon behalf of such county, city, town or school district, any gift, testamentary or otherwise, whether unconditional or conditional, of any property, whether real or personal or both, to such county, city, town, or school district, or any institution, department or agency thereof; and, in such instances, the property, or, in the case of real property or intangible personal property, the muniments of title thereto, shall be delivered to, and any necessary receipts therefor shall be executed by, such board.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 291, &sect; 10. &nbsp;</span></p> <p><span class="cls0">&sect;60391. Gift to state, county and city or town Tenancy in common.&nbsp;</span></p> <p><span class="cls0">Any gift, testamentary or otherwise, of any property whatsoever to the State of Oklahoma and a county within such state and a city or town within such county (all of which, including the state, are hereinafter referred to as "governmental units"), shall be construed as a gift of such property to the named governmental units as tenants in common; and, unless other proportions are distinctly specified in the instrument by which such gift is made, shall be construed as conveying an undivided onethird (1/3) interest to each of such governmental units.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 291, &sect; 11. &nbsp;</span></p> <p><span class="cls0">&sect;60392. Gift to state, county and city or town deemed to be intended for public improvements.&nbsp;</span></p> <p><span class="cls0">Any unconditional gift, testamentary or otherwise, of any property whatsoever to the State of Oklahoma and a county therein and a city or town within such county, without designation of any particular purpose or purposes to which such property is to be devoted, shall be construed as being intended for public improvements within such town or city and county, including but not limited to the construction of public improvements, the purchase of lands upon which to construct public improvements (or, in the case of public highways, the purchase of necessary rightsofway therefor), and repairs and additions to existing public improvements, within such town or city and county. The use of such property for such public improvement purposes, as hereinafter provided for, is hereby declared to be a coordinate and joint public purpose of such governmental units.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 291, &sect; 12. &nbsp;</span></p> <p><span class="cls0">&sect;60393. Delivery directly to trustees.&nbsp;</span></p> <p><span class="cls0">Any property involved in any unconditional gift, testamentary or otherwise, to the State of Oklahoma and a county therein and a city or town within such county, without designation of any particular purpose or purposes to which such property is to be devoted, when accepted upon behalf of the State of Oklahoma by the Governor, as provided for in Section 3 hereof, and, upon behalf of the county by the board of county commissioners of such county, as provided for in Section 10 hereof, and, upon behalf of such city or town by the governing board thereof, as provided for in Section 10 hereof; or, in the case of real property or intangible personal property, the muniments of title thereto, shall be delivered directly to the trustees hereinafter provided for.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 291, &sect; 13. &nbsp;</span></p> <p><span class="cls0">&sect;60394. Trustees, who are Bond Designation of trust estate Trust fund Approval of sales Reports.&nbsp;</span></p> <p><span class="cls0">When any unconditional gift, testamentary or otherwise, of any property to the State of Oklahoma and a county therein and a city or town within such county shall have been accepted, upon behalf of all such governmental units, as provided for in Sections 3, 10 and 13 hereof, the Attorney General of the State of Oklahoma, and the county treasurer of such county, and the presiding officer of the governing board of such city or town, at the time of the first distribution under such gift, if testamentary, or at the time of such acceptance of such gift, if other than a testamentary gift, shall be cotrustees and the official representatives and agents of their respective governmental units for all property or monies involved in, and derived from, such gift, for the use and benefit of such governmental units, for the purposes specified in Section 12 hereof; and as such, shall be authorized to execute and deliver any receipts required in connection therewith.&nbsp;</span></p> <p><span class="cls0">They shall continue as such trustees until the trust estate, resulting hereunder, shall have been fully administered, irrespective of their continuance in such public offices; provided, that in event of the death, resignation, disqualification or incapacity of any trustee before such trust estate shall have been fully administered, the person then holding the public office corresponding to that held by such deceased or resigned trustee at the time he became trustee hereunder, or, in event such death, disqualification, resignation or incapacity occurs while such trustee still holds such public office, the person elected or appointed to fill the vacancy in such public office, or the temporary or other successor thereto shall become and be his successor as such trustee.&nbsp;</span></p> <p><span class="cls0">Each such trustee shall furnish a bond in a sum equal to the value of such trust estate at the time he becomes such trustee, but not to exceed Fifty Thousand Dollars ($50,000.00), with some surety company authorized to do business within the State of Oklahoma, as surety thereon, conditioned upon the faithful performance of his duties as such trustee and truly accounting for all monies and property coming into the custody and control of such cotrustees. Such bond shall run in the name of the State of Oklahoma and such county and city or town, and shall be filed in the office of the Secretary of State of the State of Oklahoma, and the premiums thereon shall be payable from such trust estate. The trust estate shall be designated as "The (name of donor here) Public Improvements Trust Estate".&nbsp;</span></p> <p><span class="cls0">All cash, or the equivalent thereof, belonging to such trust estate and received by the trustees shall, upon receipt, be deposited in a special depository account in the State Treasury to be designated as "The (name of donor here) Public Improvements Trust Fund", and shall be subject to withdrawal or disbursement therefrom upon, but only upon, check or voucher signed by all three of the cotrustees, for the purposes provided for herein, and each such check or voucher shall state thereon the specific purpose for which the withdrawal or disbursement is made.&nbsp;</span></p> <p><span class="cls0">Before selling, exchanging, or making any other disposition of any tangible property or intangible property (other than cash or the equivalent thereof) belonging to such a trust estate, and before investing any cash or the equivalent thereof belonging to such a trust estate in securities or other property (as distinguished from expending the same for public improvement purposes as authorized herein), the cotrustees shall, by written application, obtain the written approval of the district judge of the county involved as one of the donees of the gift in question. Such cotrustees shall also file with the district judge of such county verified annual reports, containing a detailed statement of all assets and liabilities of the trust estate, and a report of the acts and doings of the trustees during the period covered by such reports. No notice shall be required in connection with any such application or report, and no fees shall be charged for the filing of any such application, report, or order of approval, or in connection with the entry, recording, or certification of any such order of approval.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 291, &sect; 14. &nbsp;</span></p> <p><span class="cls0">&sect;60395. Powers of cotrustees.&nbsp;</span></p> <p><span class="cls0">The cotrustees of a trust estate resulting hereunder are hereby authorized and empowered to manage such trust estate and all money and property belonging thereto; to rent or to lease any of the real property for the purpose of exploring for and extracting any minerals, including oil and gas, as well as for other purposes; and to sell or otherwise convert any of the property into cash; in such manner, for such price, and upon such terms and conditions as they deem to be for the best interest of the trust estate; and, for such purposes, to execute and deliver such written instruments as may be required.&nbsp;</span></p> <p><span class="cls0">Such cotrustees are also authorized and empowered to use any money and property of the trust estate for the construction of public improvements in the town or city, or in the county, designated in such gift, for the purpose of sites and rightsofway for public improvements in such town or city, or in such county, and for repairs and additions to existing public improvements within such city or town, or within such county; and, where necessary to the use of funds from other sources for the construction of public improvements upon any real property in such county belonging to such trust estate, may, in their discretion, convey the title to such real property to any one of the governmental units having a beneficial interest in such trust estate, for such public improvement purposes, without further consideration.&nbsp;</span></p> <p><span class="cls0">Such cotrustees shall be the exclusive judges of the public improvements to be made or aided from such trust estate. They are also authorized to enter into any contracts, including construction contracts, which they deem to be proper in the performance of their duties hereunder, and to employ and fix the compensation for such help and assistance, professional or otherwise, as they deem necessary to carry out the policies determined by them hereunder, and to pay the same from the trust fund account provided for herein. Such cotrustees may be sued, and, in their discretion, may sue, in any matters relating to such trust estate or growing out of the administration thereof, and may employ attorneys in connection with any such matters, but shall not personally be civilly liable for damages or attorneys' fees except upon criminal or culpable misconduct. Any official act or action by such cotrustees shall require the joinder of all three trustees.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 292, &sect; 15. &nbsp;</span></p> <p><span class="cls0">&sect;60396. Duties additional to other duties Compensation.&nbsp;</span></p> <p><span class="cls0">The duties hereby imposed upon any such trustees shall be in addition to the duties otherwise imposed by law upon each of them as a public officer, and, in all instances where the value of the property involved in such a gift shall equal or exceed Five Hundred Thousand Dollars ($500,000.00), each of such trustees shall be entitled to receive from such trust estate the sum of Two Hundred Dollars ($200.00) per month while acting as such trustee, including the time he remains as such public official.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1953, p. 293, &sect; 16. &nbsp;</span></p> <p><span class="cls0">&sect;60501. Citation.&nbsp;</span></p> <p><span class="cls0">This act shall be known as the "Unit Ownership Estate Act."&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 1. &nbsp;</span></p> <p><span class="cls0">&sect;60-502. Creation of unit ownership estate - Recording.&nbsp;</span></p> <p><span class="cls0">A unit ownership estate may be created by an owner or the co-owners of a building by an express declaration of their intention to submit such property to the provisions of the act, which declaration shall be recorded in the office of the county clerk of the county in which the property is situated.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1963, c. 288, &sect; 2. Amended by Laws 1973, c. 8, &sect; 1, emerg. eff. March 12, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60503. Definitions.&nbsp;</span></p> <p><span class="cls0">Unless it is plainly evident from the context that a different meaning is intended, as used herein:&nbsp;</span></p> <p><span class="cls0">(a) "Declaration" means the instrument, duly recorded, by which the property is submitted to the provisions of this act, as hereinafter provided, and such declaration as may be amended from time to time;&nbsp;</span></p> <p><span class="cls0">(b) "Unit" means an enclosed space consisting of one or more rooms occupying all or part of a floor or floors in a building of one or more floors or stories regardless of whether it be designed for residence, for office, for the operation of any industry or business, or for any other type of independent use, provided it has a direct exit to a thoroughfare or to a given common space leading to a thoroughfare; if so provided in the declaration, a unit may include some portion of the land constituting a part of the condominium property and improvements thereon not a part of the common elements. A unit may include a series of buildings, not connected or part of same structure if such is the intent of the owners of the unit estate. This act, and any deed, declaration or plan for a condominium project shall be liberally construed to facilitate the establishment and operation of the project and provisions of any of the same shall be presumed to be independent and severable;&nbsp;</span></p> <p><span class="cls0">(c) "Unit designation" means the number, letter or combination thereof designating the unit in the declaration;&nbsp;</span></p> <p><span class="cls0">(d) "Building" means one or more buildings or structures comprising a part of the property;&nbsp;</span></p> <p><span class="cls0">(e) "Unit owner" means a person owning a unit within the building;&nbsp;</span></p> <p><span class="cls0">(f) "Person" means an individual, corporation, partnership, association, trust or other legal entity, or any combination thereof;&nbsp;</span></p> <p><span class="cls0">(g) "Unit ownership estate" means the ownership of single units in a multiunit building together with an undivided interest in the common elements;&nbsp;</span></p> <p><span class="cls0">(h) "Common elements" means and includes the general common elements and limited common elements. The term common elements does not include unconstructed units unless otherwise specified in the declaration or by the consent of the owners pursuant to the Unit Ownership Estate Act;&nbsp;</span></p> <p><span class="cls0">(i) Unless otherwise provided in the declaration or by consent of all the unit owners, "general common elements" means and includes:&nbsp;</span></p> <p><span class="cls0">(1) The land, whether leased or in fee simple, on which the building stands and such other land and improvements thereon as may be specifically included in the declaration, except any portion thereof included in a unit;&nbsp;</span></p> <p><span class="cls0">(2) The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, and entrances and exits of the building;&nbsp;</span></p> <p><span class="cls0">(3) The basements, yards, gardens, parking areas and storage spaces;&nbsp;</span></p> <p><span class="cls0">(4) The premises for the lodging of janitors or persons in charge of the property as hereinafter defined;&nbsp;</span></p> <p><span class="cls0">(5) Installations of central services such as power, light, gas, hot and cold water, heating refrigeration, air conditioning and incinerating;&nbsp;</span></p> <p><span class="cls0">(6) The elevators, tanks, pumps, motors, fans, compressors, ducts and in general, all apparatus and installations existing for common use;&nbsp;</span></p> <p><span class="cls0">(7) Such community and commercial facilities as may be provided for in the declaration; and&nbsp;</span></p> <p><span class="cls0">(8) All other elements of the property necessary or convenient to its existence, maintenance and safety, or normally in common use;&nbsp;</span></p> <p><span class="cls0">(j) "Limited common elements" means and includes those common elements which are agreed upon by all the unit owners to be reserved for the use of a certain number of units to the exclusion of the other units, such as special corridors, stairways and elevators, sanitary services common to the units of a particular floor, and the like;&nbsp;</span></p> <p><span class="cls0">(k) "Common expenses" means and includes:&nbsp;</span></p> <p><span class="cls0">(1) Expenses of administration, maintenance, repair or replacement of the common elements;&nbsp;</span></p> <p><span class="cls0">(2) Expenses agreed upon as common by all the unit owners;&nbsp;</span></p> <p><span class="cls0">(3) Expenses declared common by provisions of the act, or by the declaration or the bylaws;&nbsp;</span></p> <p><span class="cls0">(4) Expenses incident to limited common elements which shall be borne as provided by the declaration or the bylaws;&nbsp;</span></p> <p><span class="cls0">(l) "Common profits" means the balance of all income, rents, profits and revenues from the common elements and facilities remaining after the deduction of the common expenses;&nbsp;</span></p> <p><span class="cls0">(m) "Council of unit owners" means all the unit owners;&nbsp;</span></p> <p><span class="cls0">(n) "Majority of unit owners," means the owners of more than fifty percent (50%) of the aggregate interest in the general common elements as established by the declaration. Any specified percentage of unit owners means such percentage in the aggregate of such undivided ownership;&nbsp;</span></p> <p><span class="cls0">(o) "Recordation" means to file of record in the office of the county clerk in the county where the land is situated, in the manner provided by law for recordation of instruments affecting real estate;&nbsp;</span></p> <p><span class="cls0">(p) "Property" means and includes the land, whether leasehold or in fee simple, the building, all improvements and structures thereon, and all easements, rights and appurtenances belonging thereto;&nbsp;</span></p> <p><span class="cls0">(q) "Declarant" means the owner or coowners referred to in Section 502 of this title who originally submitted the property to the provisions of the Unit Ownership Estate Act by the filing of a declaration as provided in Section 502 of this title, and their successors who have been granted and have assumed the duties, obligations and privileges and rights reserved to the original declarant under the terms of the declaration;&nbsp;</span></p> <p><span class="cls0">(r) "Unconstructed unit" or "unconstructed building" means a unit or building as the case may be, which is owned by the declarant and shown on the plan attached to the declaration pursuant to Section 516 of this title, the construction of which has not been completed by the declarant at the time of recordation of the declaration. For purposes of this chapter a building is completed upon the completion of any unit in the building and a unit is completed when its construction is finished to the point that it is ready for occupancy.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 1, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60504. Status and title created.&nbsp;</span></p> <p><span class="cls0">A unit ownership estate as created and defined in this act shall vest in the holder, exclusive ownership and possession; shall constitute an estate in real property which may be conveyed, encumbered, inherited, devised, or otherwise dealt with consistent with the laws of this state; and shall, for all purposes, be deemed in law to be an estate entirely independent of the other unit ownership estates in the building of which it forms a part. The individual title and interest of such estate shall be recorded in the manner provided by law for recording instruments affecting title to real property. Such estate may be held and owned by more than one person, as defined herein, in any manner recognized under the laws of this state.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 4. &nbsp;</span></p> <p><span class="cls0">&sect;60505. Undivided interest in common elements Ratio.&nbsp;</span></p> <p><span class="cls0">A. Each unit owner shall be entitled to an undivided interest in the common elements in the ratio expressed in the declaration. Such ratio shall be in the approximate relation that the estimated fair value upon completion of the unit determined at the date of the declaration bears to the aggregate estimated fair value upon completion of all the units having an interest in such common elements.&nbsp;</span></p> <p><span class="cls0">B. The ratio of the undivided interest of each unit owner in the common elements as expressed in the declaration shall have a permanent character and shall not be altered except as specifically provided in the declaration pursuant to paragraph (i) of Section 514 of this title, or with the unanimous consent of all unit owners having an interest, expressed in an amended declaration duly recorded.&nbsp;</span></p> <p><span class="cls0">C. The undivided interest in the common elements and limited common elements set aside to the unit, shall not be separated from the unit to which same appertains and shall be deemed conveyed or encumbered with the unit even though such interest is not expressly mentioned or described in the conveyance or other instrument. The common elements and limited common elements shall not be conveyed separately from the unit.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 2, eff. Nov. 1, 1985; Laws 1989, c. 273, &sect; 2, eff. Nov. 1, 1989. &nbsp;</span></p> <p><span class="cls0">&sect;60-506. Common elements to remain undivided - Partition actions prohibited.&nbsp;</span></p> <p><span class="cls0">The common elements, both general and limited, shall remain undivided and no unit owner shall bring any action for partition or division of any part thereof, except as specifically permitted in this Act. Any covenant to the contrary shall be null and void.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 6.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60507. Use of common elements.&nbsp;</span></p> <p><span class="cls0">Each unit owner may use the common elements in accordance with the purpose for which they are intended, without hindering or encroaching upon the lawful rights of the other unit owners.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 7. &nbsp;</span></p> <p><span class="cls0">&sect;60508. Strict compliance with rules and bylaws by unit owners.&nbsp;</span></p> <p><span class="cls0">Each unit owner shall comply strictly with the bylaws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions and restrictions set forth in the declaration or in the deed to his unit. Failure to comply with any of the same shall be grounds for an action to recover sums due, for damages or injunctive relief or both, maintainable by the manager or board of managers on behalf of the council of unit owners or, in a proper case, by an aggrieved unit owner.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 8. &nbsp;</span></p> <p><span class="cls0">&sect;60509. Maintenance and repair of common elements Additions or improvements.&nbsp;</span></p> <p><span class="cls0">The necessary work of maintenance and repair of the common elements and the making of any additions or improvements thereto, shall be carried out only as provided in the bylaws.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 9. &nbsp;</span></p> <p><span class="cls0">&sect;60-510. Work jeopardizing soundness or safety of property prohibited without unanimous consent.&nbsp;</span></p> <p><span class="cls0">No unit owner shall do any work which would jeopardize the soundness or safety of the property or impair any easement or hereditament without in every such case the unanimous consent of all the other unit owners affected being first obtained.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 10.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60511. Liens against unit estates Discharge.&nbsp;</span></p> <p><span class="cls0">(a) While the property remains subject to this act, no lien shall arise or be effective against the property as a whole, but only against each unit ownership estate and such lien shall attach in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership; provided, however, that no labor performed or materials furnished with the consent or at the request of a unit owner or his agent, his contractor, or subcontractor, shall constitute the basis for a mechanic's or materialmen's lien against the unit ownership estate or any other property of any other unit owner who has not expressly consented to or requested the same, except that for the purposes of this act such express consent shall be presumed to have been given by the unit owner in case of emergency repairs thereto. Labor performed or materials furnished for the common elements, if duly authorized by the council of unit owners or its duly authorized agent in accordance with this act, the declaration or bylaws shall be deemed to be performed or furnished with the express consent of each unit owner and shall constitute the basis for a mechanic's or materialmen's lien as now provided by law against each of the unit ownership estates in the property but shall be subject to the provisions of subparagraph (b) hereunder.&nbsp;</span></p> <p><span class="cls0">(b) When a lien against two or more unit owners is asserted, each unit owner may discharge his unit ownership estate from such lien by payment to the lienor of the fractional or proportional amount which is attributable to his unit ownership estate. Such individual obligation shall be computed by reference to the percentage of interest set forth in the declaration. Upon such payment or satisfaction of the lien claim, the unit ownership estate shall be free and clear of the lien claim but such release of the unit owner shall not prevent the lienor from proceeding to establish and enforce his rights against any other unit owner who has not so discharged his obligation to the lienor.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 11. &nbsp;</span></p> <p><span class="cls0">&sect;60512. Expense of administration and repair of common elements Pro rata share Exemptions.&nbsp;</span></p> <p><span class="cls0">(a) Except as provided in subsection (b) of this section the unit owners are bound to contribute pro rata, in the percentages computed according to Section 505 of this title, toward the expenses of administration and of maintenance and repair of the general commom elements and, in proper cases, of the limited common elements, of the building and toward any other expense lawfully agreed upon.&nbsp;</span></p> <p><span class="cls0">(b) A declarant, by specific reservation, in the declaration as permitted by paragraph (j) of Section 514 of this title may:&nbsp;</span></p> <p><span class="cls0">1. Exempt unconstructed units within unconstructed buildings owned by declarant from payment of its pro rata share of the expenses described in subsection (a) of this section; and&nbsp;</span></p> <p><span class="cls0">2. Reserve the right to contribute less than its pro rata share of such expenses for unconstructed units within a completed building. Such expenses shall not be less than twenty percent (20%) of such pro rata share. The cost of administration and of maintenance, repair and insurance of any such unconstructed building and any such unconstructed unit shall be borne solely by the declarant until such time as such unconstructed unit and/or building has been completed. Upon such completion of a unit or building, the declarant's obligation for payment of the expenses described in this section shall be governed by subsection (a) of this section.&nbsp;</span></p> <p><span class="cls0">(c) Except as provided in subsection (b) of this section, no unit owner may exempt himself from contributing toward such expense by waiver of the use or enjoyment of the common elements or by abandonment of the unit belonging to him.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 3, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60-513. Common profits - Distribution.&nbsp;</span></p> <p><span class="cls0">The common profits of the property shall be distributed among the unit owners in the percentages computed according to Section 5 of this Act.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 13.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60514. Declaration creating estate Contents.&nbsp;</span></p> <p><span class="cls0">The declaration creating and establishing unit ownership estates as provided in Section ;2 502 of this ;act title, shall be recorded and shall contain the following particulars:&nbsp;</span></p> <p><span class="cls0">(a) Description of the land,&nbsp;</span></p> <p><span class="cls0">(b) Description of the building, stating the number of stories and basements, the number of units, and the principal materials of which it is constructed,&nbsp;</span></p> <p><span class="cls0">(c) The unit designation of each unit, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification,&nbsp;</span></p> <p><span class="cls0">(d) Description of the general common elements and the proportionate interest of each unit owner therein,&nbsp;</span></p> <p><span class="cls0">(e) Description of the limited common elements, if any, stating which units shall share the same and in what proportion,&nbsp;</span></p> <p><span class="cls0">(f) The name of a person to receive service of process in the cases hereinafter provided together with the residence or place of business of such person which shall be within the county in which the property is located,&nbsp;</span></p> <p><span class="cls0">(g) The method which the declaration may be amended, consistent with the provisions of this act,&nbsp;</span></p> <p><span class="cls0">(h) Any other details or restrictions in connection with the property which the person executing the declaration may deem desirable to set forth;.,&nbsp;</span></p> <p><span class="cls0">(i) The declarant by a specific provision in the declaration may reserve the right to annex additional property to the property which was submitted to the Unit Ownership Estate Act under the original declaration. If such right is reserved, the declaration shall also include:&nbsp;</span></p> <p><span class="cls0">(1) The legal description of the property capable of being annexed, and the total number of units that may be added by one or more such annexations;&nbsp;</span></p> <p><span class="cls0">(2) The time limit within which the annexation shall take place from the recordation date of the original declaration;&nbsp;</span></p> <p><span class="cls0">(3) A requirement that all improvements intended for the property of each annexation shall be substantially complete prior to each such annexation;&nbsp;</span></p> <p><span class="cls0">(4) The formula for determining the undivided interest of each unit owner in the total common elements after each such annexation, which formula may not be changed without the unanimous consent of all the unit owners, and which formula shall be reasonably expected to result in a ratio of the approximate relation of the value of each unit after each annexation as it bears to the aggregate fair value of all units after each such annexation;&nbsp;</span></p> <p><span class="cls0">(5) A description of the annexation document to be executed and recorded by the declarant which shall not require the consent of the unit owners. The annexation document shall state the undivided interest of each unit owner in the common elements for each unit which is a part of the total property after such annexation. However, such undivided interest may be later changed in accordance with the act by a later annexation;&nbsp;</span></p> <p><span class="cls0">(6) A requirement that the improvements on the property to be annexed will be consistent with the improvements of the property originally submitted to the declaration in terms of quality and construction; and (j) The specific formula for determining the amount of contribution to be made by the declarant for unconstructed units and/or unconstructed buildings if such contribution is less than the pro rata contribution of the expenses described in subsection (a) of Section 512 of this title.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 4, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60515. Deeds conveying estates Recording Contents.&nbsp;</span></p> <p><span class="cls0">A. Deeds conveying unit ownership estates shall be recorded and shall contain the following particulars:&nbsp;</span></p> <p><span class="cls0">1. The unit designation, whether contained in the original declaration, or in an amended, restated or supplementary declaration, which shall be identified by date, book and page of recording; and&nbsp;</span></p> <p><span class="cls0">2. Any further details which grantor and grantee may deem desirable.&nbsp;</span></p> <p><span class="cls0">B. Deeds executed in compliance with this section shall be sufficient to identify the interest conveyed or encumbered and shall be entitled to be recorded in the office of the county clerk, in the same manner as other documents relating to real property are recorded.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 15. &nbsp;</span></p> <p><span class="cls0">&sect;60515.1. Instruments and liens Effectiveness.&nbsp;</span></p> <p><span class="cls0">Any deed, mortgage or other instrument purporting to convey, mortgage or encumber a unit ownership estate, or an interest in a unit ownership estate, is effective only as to any unit in the unit ownership estate in which the maker of such instrument owns an interest of record at the time such conveyance or encumbrance is received for filing by the county clerk, provided, a purchase money mortgage shall be deemed to create a valid lien upon such of the units described in the mortgage as are also described in the concurrent conveyances to the mortgagor. Such instrument shall not impair or otherwise encumber title to any interest in the unit ownership estate not owned of record by the maker thereof at the time of such conveyance or encumbrance.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-516. Plans attached to declarations.&nbsp;</span></p> <p><span class="cls0">There shall be attached to the declaration, at the time it is filed for record, a full and exact copy of the plans of the building, which copy of plans shall be entered of record along with the declaration. Said plans shall show graphically all particulars of the building, including but not limited to, the dimensions, area and location of each unit therein and the dimensions, area and location of common elements affording access to each unit. Other common elements, both limited and general, shall be shown graphically insofar as possible and shall be described in detail in words and figures. Said plans shall be certified to by an engineer or architect, whichever is appropriate to the project, who is authorized and licensed to practice his profession in this State.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 16.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60517. Removal of property from provisions of act.&nbsp;</span></p> <p><span class="cls0">The unit owners, by unanimous action, may remove a property from the provisions of this act by an instrument to that effect, duly recorded, provided that the holders of all liens affecting any of the units consent thereto or agree, in either case by instruments duly recorded, that their liens be transferred to an undivided interest in the property.&nbsp;</span></p> <p><span class="cls0">Upon removal of the property from the provisions of this act, the property shall be deemed to be owned in common by the unit owners. The undivided interest in the property owned in common which shall appertain to each unit owner shall be the percentage of undivided interest previously owned by such owner in the common elements and facilities.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 17. &nbsp;</span></p> <p><span class="cls0">&sect;60518. Resubmission of property to provisions of act.&nbsp;</span></p> <p><span class="cls0">The removal provided for in the preceding section shall in no way bar the subsequent resubmission of the property to the provisions of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 18. &nbsp;</span></p> <p><span class="cls0">&sect;60519. Administration of property to be governed by bylaws.&nbsp;</span></p> <p><span class="cls0">A. The administration of every property shall be governed by bylaws, a true copy of which shall be annexed to the declaration and to the first deed of each unit. The bylaws may be detached from the deed prior to recording if the bylaws are filed of record and described on said deed by reference to book and page, or if the grantee shall certify on the first deed that the bylaws were so annexed and detached prior to recording.&nbsp;</span></p> <p><span class="cls0">B. Any first deed to a unit prior to the effective date of this act without a copy of the bylaws attached, shall be deemed to have complied with the provisions of this section.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 19. &nbsp;</span></p> <p><span class="cls0">&sect;60520. Necessary contents of bylaws.&nbsp;</span></p> <p><span class="cls0">The bylaws must necessarily provide for at least the following:&nbsp;&nbsp;(a) Form of administration, indicating whether in charge of an administrator or a board of administration, or otherwise, and specifying the powers, manner of removal and, where proper, the compensation therefor.&nbsp;</span></p> <p><span class="cls0">(b) Method calling or summoning the unit owners to assemble; that a majority of unit owners, as defined in Section 3(n) of this act, is required to adopt decisions; who is to preside over the meeting and who will keep the minute book wherein the resolutions shall be recorded,&nbsp;</span></p> <p><span class="cls0">(c) Care, upkeep and surveillance of the building and its general or limited common elements and services.&nbsp;</span></p> <p><span class="cls0">(d) Manner of collecting from the unit owners for the payment of the common expenses,&nbsp;</span></p> <p><span class="cls0">(e) Designation and dismissal of the personnel necessary for the maintenance, upkeep and repair of the common elements,&nbsp;</span></p> <p><span class="cls0">(f) Such restrictions on and requirements respecting the use and maintenance of the units and the use of the common elements, not set forth in or appended to the declaration, as are designed to prevent unreasonable interference with the use of their respective units and of the common elements by the several unit owners,&nbsp;</span></p> <p><span class="cls0">(g) That seventyfive percent (75%) of the unit owners, computed on the basis set forth in Section 3(n) of this act, may at any time modify or amend the bylaws, but each one of the particulars set forth in this Section shall always be embodied in the bylaws. Such modification or amendment shall not become operative unless set forth in an amended declaration and duly recorded.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 20. &nbsp;</span></p> <p><span class="cls0">&sect;60521. Maintenance and examination of books and receipts of expenditures.&nbsp;</span></p> <p><span class="cls0">The administrator, or the board of administration, or other form of administration specified in the bylaws, shall keep a book with a detailed account, in chronological order, of the receipts and expenditures affecting the common elements specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred. Both said book and the vouchers accrediting the entries made thereupon shall be available for examination by all the unit owners at convenient hours on working days that shall be set and announced for general knowledge.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 21. &nbsp;</span></p> <p><span class="cls0">&sect;60522. Homestead exemptions applicable.&nbsp;</span></p> <p><span class="cls0">The laws relating to homestead exemption from taxes by a political subdivision of this state and the laws relative to homestead exemption from attachment, execution, or other forced sale shall be applicable to a unit ownership estate with the same force and effect as they are now or shall hereafter be applicable to other estate in real property; and the benefit of homestead exemption shall extend to the holder of a unit ownership estate in all those cases where the owner of a single family dwelling would qualify therefor. The title holder in a unit ownership estate shall be entitled, if otherwise qualified, to a homestead exemption from ad valorem tax, if the land upon which the building is located is held in fee simple.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 22. &nbsp;</span></p> <p><span class="cls0">&sect;60-523. Assessment of taxes, special assessments and other charges - Liability.&nbsp;</span></p> <p><span class="cls0">Each unit, together with its proportionate interest in the common elements, shall constitute a separate and distinct unit for the purpose of assessment of taxes, special assessments, and other charges which may be lawfully assessed against owners of real property, and each holder of a unit ownership estate shall be liable solely for the amount of taxes against his individual estate and shall not be affected by the consequences resulting from the tax delinquency of other unit holders.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 23.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60524. Liens for unpaid share of common expenses Priorities Enforcement.&nbsp;</span></p> <p><span class="cls0">(a) All sums assessed by the council of unit owners for the share of the common expenses chargeable to any unit which sums remain unpaid shall constitute a lien on such unit prior to all other liens except the following:&nbsp;</span></p> <p><span class="cls0">1. Assessments, liens, and charges for taxes past due and unpaid on the unit,&nbsp;</span></p> <p><span class="cls0">2. Judgments entered in a court of record prior to the date of common expense assessment,&nbsp;</span></p> <p><span class="cls0">3. Mortgage instruments of encumbrance duly recorded prior to the date of such assessment,&nbsp;</span></p> <p><span class="cls0">4. Mechanic's and materialmen's liens arising from labor performed or materials furnished upon a unit prior to the date of such assessment, and&nbsp;</span></p> <p><span class="cls0">5. Mechanic's and materialmen's liens for labor performed or material furnished upon the common elements to the extent (sic) of the proportionate part chargeable to the unit owners which constitute a part of an assessable charge for common expenses satisfaction of which shall discharge the assessment to the extent of the payment made.&nbsp;</span></p> <p><span class="cls0">(b) The assessment lien may be foreclosed by suit instituted by the council of unit owners or a duly authorized agent thereof in like manner as an action for foreclosure of a mortgage upon real property. In any such foreclosure proceedings, the unit owner shall be required to pay a reasonable rental for the use of his unit, if so provided in the bylaws and the plaintiff in such foreclosure shall be entitled to the appointment of a receiver to collect the same. The council of unit owners, or their authorized agent, shall have power, unless prohibited by the declaration, to bid in at the foreclosure sale and to acquire and hold, lease, mortgage and convey the unit ownership estate acquired at the foreclosure sale. Suit to recover money judgment for unpaid common expenses shall be maintainable without foreclosing or waiving the lien securing the same.&nbsp;</span></p> <p><span class="cls0">(c) Upon sale or conveyance of a unit encumbered by an assessment lien, such lien shall be paid first, out of the sale proceeds or by the grantee, subject only as aforesaid.&nbsp;</span></p> <p><span class="cls0">(d) Where the holder of a first mortgage of record or other purchaser obtains title to the unit ownership estate as a result of foreclosure of the first mortgage, such acquirer of title shall not be liable for the share of the common expenses or assessments by the council of unit owners chargeable to such unit which became due prior to acquisition of title to such unit by such acquirer. Such unpaid share of common expenses or assessments shall be deemed to be common expenses collectible from all the unit owners, including such acquirer.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 24. &nbsp;</span></p> <p><span class="cls0">&sect;60-525. Joint and several liability of grantor and grantee for unpaid common expenses.&nbsp;</span></p> <p><span class="cls0">The grantee of a unit shall be jointly and severally liable with the grantor for all unpaid assessments against the latter for his proportionate share of the common expenses up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor therefor. However, any such grantee shall be entitled to a statement from the manager or Board of managers, as the case may be, setting forth the amount of the unpaid assessments against the grantor and such grantee shall not be liable for, nor shall the unit conveyed be subject to a lien for any unpaid assessments in excess of the amount therein set forth.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 25.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60526. Insurance.&nbsp;</span></p> <p><span class="cls0">The unit owners may, upon resolution of a majority, insure the property against risks, without prejudice to the right of each unit owner to insure his unit on his own account and for his own benefit. The premiums for such insurance on the property shall be deemed common expenses except with respect to the units exempted by the declarant pursuant to subsection (b) of Section 512 of this title in which event the insurance premiums on such units shall be paid by the declarant as provided in subsection (b) of Section 512 of this title. The declarant and the council of unit owners may agree by separate contract to insure the unconstructed buildings and/or units under the same master policy of insurance as the council of unit owners may have obtained for the property, as their respective interests may appear, in which event the portion of the premiums charged for insuring said unconstructed buildings and/or unconstructed units shall be borne by the declarant.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 5, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60527. Damage or destruction of building Repair or restoration Deficiency assessments Distribution of funds.&nbsp;</span></p> <p><span class="cls0">Except as hereinafter provided, damage to or destruction of the building shall be promptly repaired and restored by the manager or board of managers, using the proceeds of insurance, if any, on the building for that purpose, and the unit owners shall be liable for assessment for any deficiency except in the case of an unconstructed building which may be insured under a master policy of insurance as described in Section 526 of this title, in which event the declarant shall be liable for any deficiency relating to such unconstructed building. If there is substantially total destruction of the property, or if seventyfive percent (75%) of the unit owners computed on the basis set forth in Section 503 of this title duly resolve not to proceed with repair or restoration, then and in that event the property or so much thereof as shall remain, shall be subject to partition at the suit of any unit owner, in which event the net proceeds of sale, together with the net proceeds of insurance policies, if any, shall be considered as one fund except for the declarant in respect to uncompleted units on which declarant is not making the pro rata contribution described in subsection (a) of Section 512 of this title, said fund shall be divided among all the unit owners in proportion to their respective undivided ownership of the common elements, after first paying off, out of the respective shares of unit owners, to the extent sufficient for that purpose, all liens on the unit of each unit owner. With respect to uncompleted units or uncompleted buildings for which the declarant is not making pro rata contributions pursuant to subsection (b) of Section 512 of this title, the declarant shall not receive its portion of said fund according to its respective undivided ownership in the common elements but shall receive net proceeds of sale according to the formula described in paragraph (j) of Section 514 of this title and such proceeds of insurance, if any, attributable to said uncompleted buildings and/or uncompleted units under a master policy of insurance as permitted in Section 526 of this title. The manager, or board of managers, as the case may be, and their agents and employees shall have an easement to enter units to make repairs to common elements or when the repairs reasonably appear to be necessary for public safety or to prevent damage to property other than the unit.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 6, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60528. Obsolete property.&nbsp;</span></p> <p><span class="cls0">Ninety percent (90%) of the unit owners computed on the basis set forth in Section 503 of this title may agree that the property is obsolete in whole or in part and whether or not the same shall be renewed and restored or the property sold and the proceeds of sale distributed. If such percent of the unit owners agree to renew and restore the property, then the expense thereof shall be payable by all the unit owners as common expenses. If, however, such percent of the unit owners agree that the property be sold, then the property shall be subject to partition at the suit of any unit owner, in which event the net proceeds of sale shall be divided among all the unit owners in proportion to their respective undivided ownership of the common elements, after first paying off out of the respective shares of the unit owners, all liens on the unit of each unit owner except a declarant not making pro rata contributions pursuant to subsection (b) of Section 512 of this title shall receive a reduced share of the proceeds in accordance with the same formula described in paragraph (j) of Section 514 of this title.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1985, c. 137, &sect; 7, eff. Nov. 1, 1985. &nbsp;</span></p> <p><span class="cls0">&sect;60-529. Actions relating to common elements.&nbsp;</span></p> <p><span class="cls0">Actions may be brought on behalf of two or more of the unit owners, as their respective interests may appear, by the manager or board of managers, with respect to any cause of action relating to the common elements or more than one unit. Service of process on two or more unit owners in any action relating to the common elements or more than one unit may be made on the person designated in the declaration to receive service of process.&nbsp;</span></p> <p><span class="cls0">Laws 1963, c. 288, &sect; 29.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60530. Persons subject to act.&nbsp;</span></p> <p><span class="cls0">(a) All unit owners, tenants of such owners, employees of owners and tenants, or any other persons that may in any manner use property or any part thereof submitted to the provisions of this act, shall be subject to this act and to the declaration and bylaws of the council of unit owners adopted pursuant to the provisions of this act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1963, c. 288, &sect; 30. &nbsp;</span></p> <p><span class="cls0">&sect;60-601. "Charity" defined.&nbsp;</span></p> <p><span class="cls0">As used in this act, the term "charity" means any gift, to be applied consistently with law, for the benefit of an indefinite number of persons, through the provision of facilities or aid in any way to education or educational activities or the advancement and diffusion of science and learning, to religion or religious activities, to the relief or comfort of the poor, the sick, or the afflicted, to the public welfare in any form, to the support or aid of the government or of any program or activity of the government, state, local, or national, or to any other form of activity directed toward the improvement and happiness of man or society.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1965, c. 87, &sect; 1, emerg. eff. May 5, 1965.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-602. Cy pres doctrine.&nbsp;</span></p> <p><span class="cls0">If a trust for charity is or becomes illegal or impossible or impracticable of fulfillment, or if a devise or bequest for charity, at the time it was intended to become effective, is illegal or impossible or impracticable of fulfillment and if the settlor or the testator manifested a general intention to devote the property to charity, any court of this state possessing general equitable jurisdiction, on the application of any trustee or of any interested party or of the Attorney General, may order an administration of the trust, devise, or bequest as nearly as possible to fulfill the general charitable intention of the settlor or testator.&nbsp;</span></p> <p><span class="cls0">Laws 1965, c. 87, &sect; 2, emerg. eff. May 5, 1965.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-651. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in the Uniform Unclaimed Property Act, unless the context otherwise requires:&nbsp;</span></p> <p><span class="cls0">1. "Apparent owner" means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder;&nbsp;</span></p> <p><span class="cls0">2. "Attorney General" means the chief legal officer of this state;&nbsp;</span></p> <p><span class="cls0">3. "Banking organization" means any bank, trust company, savings bank, safe deposit company, private banker, or any organization defined by other law as a bank or banking organization;&nbsp;</span></p> <p><span class="cls0">4. "Business association" means a non-public corporation, joint-stock company, investment company, business trust, partnership, or association for business purposes of two or more individuals whether or not for profit, including a banking organization, financial organization, insurance company, or utility;&nbsp;</span></p> <p><span class="cls0">5. "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person;&nbsp;</span></p> <p><span class="cls0">6. "Financial organization" means a savings and loan association, building and loan association, or credit union;&nbsp;</span></p> <p><span class="cls0">7. "Holder" means a person, wherever organized or domiciled, who is:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;in possession of property belonging to another,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;a trustee, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;indebted to another on an obligation;&nbsp;</span></p> <p><span class="cls0">8. "Insurance company" means an association, corporation, fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including accidental, burial, casualty, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life (including endowments and annuities), malpractice, marine, mortgage, surety, and wage protection insurance;&nbsp;</span></p> <p><span class="cls0">9. "Intangible property" includes:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;money, checks, drafts, deposits, interest, dividends, and income,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;credit balances, customer overpayments, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, and unidentified remittances,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;stocks and other intangible ownership interests in business associations,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;monies deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions,&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;amounts due and payable under the terms of insurance policies, and&nbsp;</span></p> <p class="cls3"><span class="cls0">f.&nbsp;&nbsp;amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, education or similar benefits;&nbsp;</span></p> <p><span class="cls0">10. "Last-known address" means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail;&nbsp;</span></p> <p><span class="cls0">11. "Memorandum" shall include a mark, symbol or statement indicating knowledge of or interest in funds on deposit;&nbsp;</span></p> <p><span class="cls0">12. "Mineral proceeds" includes:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;all obligations to pay mineral proceeds resulting from the production and sale of minerals, including net revenue interest, royalties, overriding royalties, production payments, and payments under joint operating agreements, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;all obligations for the acquisition and retention of a mineral lease, including bonuses, delay rentals, shut-in royalties, and minimum royalties;&nbsp;</span></p> <p><span class="cls0">13. "Museum" means an institution which is located in this state and operated by a nonprofit corporation or a public agency primarily for educational, scientific, historic preservation or aesthetic purposes, and which owns, borrows, cares for, exhibits, studies archives or catalogues property. "Museum" includes, but is not limited to, historical societies, historical sites or landmarks, parks, monuments and libraries;&nbsp;</span></p> <p><span class="cls0">14. "Owner" means a depositor in the case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in the case of other intangible property, or a person having a legal or equitable interest in property subject to the Uniform Unclaimed Property Act or the person's legal representative. Where more than one person is an owner, the property shall not be presumed abandoned unless it has remained unclaimed by all of its owners for the periods hereinafter prescribed;&nbsp;</span></p> <p><span class="cls0">15. "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity;&nbsp;</span></p> <p><span class="cls0">16. "State" means any state, district, commonwealth, territory, insular possession, or other area subject to the legislative authority of the United States;&nbsp;</span></p> <p><span class="cls0">17. "State Treasurer" or "Treasurer" means the duly elected and acting State Treasurer of Oklahoma;&nbsp;</span></p> <p><span class="cls0">18. "Tax Commission" or "Commission" means the Oklahoma Tax Commission; and&nbsp;</span></p> <p><span class="cls0">19. "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 1, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 1, eff. Sept. 1, 1991; Laws 1992, c. 404, &sect; 1, emerg. eff. June 11, 1992; Laws 1999, c. 10, &sect; 2, eff. July 1, 1999; Laws 2012, c. 131, &sect; 1, eff. Nov. 1, 2012.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-651.1. Sum payable on traveler's check, money order or other similar written instrument - Presumption of abandonment.&nbsp;</span></p> <p><span class="cls0">(a) Subject to subsection (d) of this section and except as hereinafter provided, any sum payable on a travelers check that has been outstanding for more than fifteen (15) years after its issuance is presumed abandoned unless the owner, within fifteen (15) years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer. No travelers check shall be presumed to be abandoned if the holder has sent a statement or other business communication concerning the travelers check to the owner by first-class mail and the statement or other business communication has not been returned for inability to make delivery to the addressee. The fifteen-year abandonment period shall begin to run when any statement or other business communication to the owner has been returned as undeliverable, or on the last date that the owner has communicated with the holder in any of the ways specified in this subsection, whichever is later. For purposes of this section, the issuer shall be the entity responsible for the payment of the travelers check.&nbsp;</span></p> <p><span class="cls0">(b) Subject to subsection (d) of this section, any sum payable on a money order or similar written instrument, other than a third-party bank check, that has been outstanding for more than seven (7) years after its issuance is presumed abandoned unless the owner, within seven (7) years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer.&nbsp;</span></p> <p><span class="cls0">(c) A holder may not deduct from the amount of a travelers check or money order any charge imposed by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the issuer and the owner of the instrument pursuant to which the issuer may impose a charge and the issuer regularly imposes such charges and does not regularly reverse or otherwise cancel them.&nbsp;</span></p> <p><span class="cls0">(d) No sum payable on a travelers check, money order, or similar written instrument, other than a third-party check, described in subsections (a) and (b) of this section may be subjected to the custody of this state as unclaimed property unless:&nbsp;</span></p> <p class="cls3"><span class="cls0">(1)&nbsp;&nbsp;the records of the issuer show that the travelers check, money order, or similar written instrument was purchased in this state;&nbsp;</span></p> <p class="cls3"><span class="cls0">(2)&nbsp;&nbsp;the issuer has its principal place of business in this state and the records of the issuer do not show the state in which the travelers check, money order, or similar written instrument was purchased; or&nbsp;</span></p> <p class="cls3"><span class="cls0">(3)&nbsp;&nbsp;the issuer has its principal place of business in this state, the records of the issuer show the state in which the travelers check, money order, or similar written instrument was purchased and the laws of the state of purchase either do not provide for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property.&nbsp;</span></p> <p><span class="cls0">(e) Notwithstanding any other provisions of this act, subsection (d) of this section applies to sums payable on travelers checks, money orders, and similar written instruments presumed abandoned on or after February 1, 1965, except to the extent that those sums have been paid over to a state prior to January 1, 1974.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 2, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-651.2. Sum payable on check, certified check, cashier's check, draft, or similar instrument - Presumption of abandonment - Burden of proof - Affirmative defenses.&nbsp;</span></p> <p><span class="cls0">A. Any sum payable on a check, certified check, cashier's check, draft, or similar instrument, except those subject to Section 651.1 of this title, on which a banking or financial organization is directly liable, which has been outstanding for more than five (5) years after it was payable or after its issuance if payable on demand, is presumed abandoned, unless the owner, within five (5) years, has communicated in writing with the banking or financial organization concerning it or otherwise indicated an interest as evidenced by a memorandum or other record, on file, prepared by an employee thereof.&nbsp;</span></p> <p><span class="cls0">B. A record of the issuance of a check, draft, or similar instrument shall be prima facie evidence of an obligation.&nbsp;</span></p> <p><span class="cls0">C. The burden of proof upon the State Treasurer in claiming property from a holder, who is also the issuer, shall be satisfied by demonstrating the issuance of the instrument and the passage of the requisite period of abandonment as provided in subsection A of this section.&nbsp;</span></p> <p><span class="cls0">D. The holder may assert affirmative defenses of:&nbsp;</span></p> <p><span class="cls0">1. Payment;&nbsp;</span></p> <p><span class="cls0">2. Satisfaction;&nbsp;</span></p> <p><span class="cls0">3. Discharge; and&nbsp;</span></p> <p><span class="cls0">4. Want of consideration. &nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 3, eff. Sept. 1, 1991. Amended by Laws 2010, c. 241, &sect; 1, emerg. eff. May 10, 2010.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-652. Property held by banking or financial organizations.&nbsp;</span></p> <p><span class="cls0">A. Any demand, savings, or matured time deposit with a banking or financial organization, and any funds paid toward the purchase of a share, funds paid toward a mutual investment certificate, or funds paid toward any other interest in a banking or financial organization is presumed abandoned, unless the owner, within five (5) years has:&nbsp;</span></p> <p><span class="cls0">1. In the case of a deposit, increased or decreased its amount or presented the passbook or other similar evidence of the deposit for the crediting of interest;&nbsp;</span></p> <p><span class="cls0">2. Communicated in writing with the banking or financial organization concerning the property;&nbsp;</span></p> <p><span class="cls0">3. Otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization;&nbsp;</span></p> <p><span class="cls0">4. Owned other property to which the provisions of paragraph 1, 2 or 3 of this subsection apply and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this subsection at the address to which communications regarding the other property are regularly sent; or&nbsp;</span></p> <p><span class="cls0">5. Had another relationship with the banking or financial organization concerning which the owner has:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;communicated in writing with the banking or financial organization, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be abandoned under this subsection at the address to which communications regarding the other relationship regularly are sent.&nbsp;</span></p> <p><span class="cls0">If a banking or financial organization has sent a statement or other business communication concerning such property to the owner by first-class mail and the statement or other business communication has not been returned for inability to make delivery to the addressee, the property shall not be presumed to be abandoned. The five-year abandonment period shall begin to run when any statement or other business communication to the owner has been returned as undeliverable, or on the last date that the owner has communicated with the banking or financial organization in any of the ways specified in paragraphs 1 through 5 of this subsection, whichever is the later.&nbsp;</span></p> <p><span class="cls0">B. For purposes of subsection A of this section, &ldquo;property&rdquo; includes interest and dividends.&nbsp;</span></p> <p><span class="cls0">C. A holder may not impose with respect to property described in subsection A of this section any charge due to dormancy or inactivity or cease payment of interest unless:&nbsp;</span></p> <p><span class="cls0">1. Reasonable notice that the holder may impose the charge or cease payment of interest is given to the owner of the property, either:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;at the time the account is opened,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;through a schedule of charges sent to the owner of the property, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;through a statement in the rules, regulations, or bylaws of the holder that the holder may impose the charge or cease payment of interest; and&nbsp;</span></p> <p><span class="cls0">2. The holder regularly imposes such charges or ceases payment of interest. If the holder regularly reverses or otherwise cancels such charges or retroactively credits interest for a reason other than an error or omission by the holder, then in proportion to the extent that it does so with respect to other deposits, the holder shall likewise reverse or otherwise cancel charges or retroactively credit interest with respect to property that is reported to the State Treasurer as unclaimed under the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">D. Automatically renewable time deposits shall be subject to this section, except that automatically renewable time deposits shall be presumed abandoned fifteen (15) years following the expiration of the initial time period of the time deposit unless, during that period the owner has:&nbsp;</span></p> <p><span class="cls0">1. Increased or decreased the amount of the deposit;&nbsp;</span></p> <p><span class="cls0">2. Communicated in writing with the banking or financial organization concerning the property;&nbsp;</span></p> <p><span class="cls0">3. Otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization; or&nbsp;</span></p> <p><span class="cls0">4. Had another relationship with the banking or financial organization concerning which the owner has:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;communicated in writing with the banking or financial organization, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this section at the address to which communications regarding the other relationship are regularly sent.&nbsp;</span></p> <p><span class="cls0">Upon presumed abandonment of the automatically renewable time deposit, the holder shall report the presumed abandonment to the State Treasurer and may, at the holder's option, either retain the property or pay or deliver it to the State Treasurer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 2, emerg. eff. April 24, 1967. Amended by Laws 1980, c. 304, &sect; 1, eff. Oct. 1, 1980; Laws 1982, c. 278, &sect; 1, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 4, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 3, eff. July 1, 1999; Laws 2008, c. 108, &sect; 1, emerg. eff. May 2, 2008.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-653. Funds held or owing under life or endowment insurance policy or annuity contract.&nbsp;</span></p> <p><span class="cls0">(a) Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than five (5) years after the funds became due and payable as established from the records of the insurance company holding or owing the funds, but property described in paragraph (2) of subsection (c) of this section is presumed abandoned if unclaimed for more than two (2) years.&nbsp;</span></p> <p><span class="cls0">(b) If a person other than the insured or annuitant is entitled to the funds and an address of the person is not known to the company or it is not definite and certain from the records who is entitled to the funds, it is presumed that the lastknown address of the person entitled to the funds is the same as the lastknown address of the insured or annuitant according to the records of the company.&nbsp;</span></p> <p><span class="cls0">(c) For purposes of this act, a life or endowment insurance policy or annuity contract not matured by actual proof of death of the insured according to the records of the company is matured and the proceeds due and payable if:&nbsp;</span></p> <p class="cls3"><span class="cls0">(1)&nbsp;&nbsp;the company knows that the insured or annuitant has died; or&nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;(A)&nbsp;&nbsp;the insured has attained, or would have attained if he were living, the limiting age under the mortality table on which the reserve is based;&nbsp;</span></p> <p class="cls4"><span class="cls0">(B)&nbsp;&nbsp;the policy was in force at the time the insured attained, or would have attained, the limiting age specified in subparagraph (A) of this paragraph; and&nbsp;</span></p> <p class="cls4"><span class="cls0">(C)&nbsp;&nbsp;neither the insured nor any person appearing to have an interest in the policy within the preceding two (2) years, according to the records of the company, has assigned, readjusted, or paid premiums on the policy, subjected the policy to loan, or corresponded in writing with the company concerning the policy, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the company.&nbsp;</span></p> <p><span class="cls0">(d) For purposes of this act, the application of an automatic premium loan provision or other nonforfeiture provisions contained in an insurance policy does not prevent a policy from being matured or terminated under subsection (a) of this section if the insured has died or the insured or the beneficiary of the policy otherwise has become entitled to the proceeds thereof before the depletion of the cash surrender value of a policy by the application of those provisions.&nbsp;</span></p> <p><span class="cls0">(e) If the laws of this state or the terms of the life insurance policy require the company to give notice to the insured or the owner that an automatic premium loan provision or other nonforfeiture provision has been exercised and the notice, given to an insured or owner whose last-known address according to the records of the company is in this state, is undeliverable, the company shall make a reasonable search to ascertain the policyholder's correct address to which the notice must be mailed.&nbsp;</span></p> <p><span class="cls0">(f) Notwithstanding any other provision of law, if the company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four (4) months after the death, the company shall take reasonable steps to pay the proceeds to the beneficiary.&nbsp;</span></p> <p><span class="cls0">(g) Every change of beneficiary form issued by an insurance company under any life or endowment insurance policy or annuity contract to an insured or owner who is a resident of the state shall include, but not be limited to:&nbsp;</span></p> <p class="cls3"><span class="cls0">(1)&nbsp;&nbsp;the name of each beneficiary, or if a class of beneficiaries is named, the name of each current beneficiary in the class;&nbsp;</span></p> <p class="cls3"><span class="cls0">(2)&nbsp;&nbsp;the address of each beneficiary;&nbsp;</span></p> <p class="cls3"><span class="cls0">(3)&nbsp;&nbsp;the relationship of each beneficiary to the insured; &nbsp;</span></p> <p><span class="cls0">(h) With respect to any funds held or owing under any life or endowment insurance policy or annuity contract presumed abandoned pursuant to this section or property distributable in the course of a demutualization or reorganization of an insurance company pursuant to Section 653.1 of this title, the insurance company holding or owing such funds shall provide any information reasonably requested by the State Treasurer, if such information is reasonably available, to assist the State Treasurer in its consideration of a claim pursuant to Section 675 of this title.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 3. Amended by Laws 1982, c. 278, &sect; 2, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 5, eff. Sept. 1, 1991; Laws 2006, c. 233, &sect; 1, eff. Nov. 1, 2006.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-653.1. Abandoned property - Demutualization or related reorganization of insurance company.&nbsp;</span></p> <p><span class="cls0">Property distributable in the course of a demutualization or related reorganization of an insurance company shall be deemed abandoned as follows:&nbsp;</span></p> <p><span class="cls0">1. Any funds, two (2) years after the date of the demutualization or reorganization, if there is no memorandum or other record on file with the holder or its agent evidencing the owner&rsquo;s communication with the holder or its agent within two (2) years following the date of the demutualization or reorganization, and:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;a check is mailed to the last-known address of the owner by the holder or its agent and the funds remain unclaimed by the owner,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;a check is mailed to the last-known address of the owner by the holder or its agent and returned by the post office as undeliverable, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;a check is not mailed to the owner because the last-known address on the books and records of the holder is known to be invalid;&nbsp;</span></p> <p><span class="cls0">2. Any stock or equity interest, two (2) years after the date of the demutualization or reorganization, if there is no memorandum or other record on file with the holder or its agent evidencing the owner&rsquo;s communication with the holder or its agent within two (2) years following the date of the demutualization or reorganization, and instruments or statements reflecting the distribution are:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;mailed to the last-known address of the owner by the holder or its agent and returned by the post office as undeliverable, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;not mailed to the owner because the last-known address on the books and records of the holder is known to be invalid;&nbsp;</span></p> <p><span class="cls0">3. Property distributable in the course of demutualization or related reorganization not subject to paragraphs 1 or 2 of this section within two (2) years of the distribution shall remain reportable under other sections of this chapter;&nbsp;</span></p> <p><span class="cls0">4. A report of property presumed abandoned pursuant to this section must be filed in accordance with Section 661 of Title 60 of the Oklahoma Statutes. The initial report for property distributable in the course of demutualization, rehabilitation, or related reorganization of an insurance company shall be filed on or before November 1, 2004, with respect to conditions in effect on December 31, 2003, and all property shall be determined to be reportable under this section as if this section were in effect on the date of the demutualization, rehabilitation, or related reorganization of an insurance company.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2004, c. 318, &sect; 1, eff. July 1, 2004.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60654. Deposit held by utility.&nbsp;</span></p> <p><span class="cls0">A deposit, including any interest thereon, made by a subscriber with a utility to secure payment or any sum paid in advance for utility services to be furnished, less any lawful deductions, that remains unclaimed by the owner for more than one (1) year after termination of the services for which the deposit or advance payment was made is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 4. Amended by Laws 1982, c. 278, &sect; 3, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 6, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-654.1. Sum business association ordered to refund by court or administrative agency.&nbsp;</span></p> <p><span class="cls0">Except to the extent otherwise ordered by the court or administrative agency, any sum that a business association has been ordered to refund by a court or administrative agency which has remained unclaimed by the owner for more than one (1) year after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it, is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 7, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-655. Stock or other equity interest in business association - Unmatured or matured debt.&nbsp;</span></p> <p><span class="cls0">A. 1. Stock or other equity interest in a business association is presumed unclaimed three (3) years after the earliest of:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;The date of the most recent dividend, stock split, or other distribution unclaimed by the apparent owner, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;The date a statement of account or other notification or communication was returned as undeliverable.&nbsp;</span></p> <p><span class="cls0">This subsection applies to both the underlying stock, share, or other intangible ownership interest of an owner, and to the stock, share, or other intangible ownership interest in dividend and nondividend paying business associations whether or not the interest is represented by a certificate.&nbsp;</span></p> <p><span class="cls0">2. Except as otherwise provided in Section 657 of this title, unmatured or unredeemed debt, other than a bearer bond or an original issue discount bond, is presumed unclaimed three (3) years after the date of the most recent interest payment unclaimed by the owner.&nbsp;</span></p> <p><span class="cls0">3. Except as otherwise provided in Section 657 of this title, matured or redeemed debt is presumed unclaimed three (3) years after the date of maturity or redemption.&nbsp;</span></p> <p><span class="cls0">4. At the time property is presumed unclaimed under paragraph 1 or 2 of this subsection, any other property right accrued or accruing to the owner as a result of the property interest and not previously presumed unclaimed is also presumed unclaimed.&nbsp;</span></p> <p><span class="cls0">5. A stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the interest shall not be presumed to be abandoned if the holder has sent a statement or other business communication concerning such property to the owner by first-class mail and the statement or other business communication has not been returned for inability to make delivery to the addressee.&nbsp;</span></p> <p><span class="cls0">B. 1. The running of any three-year period pursuant to subsection A of this section ceases if the person:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;communicates in writing with the association or its agent regarding the interest or a dividend, distribution, or other sum payable as a result of the interest,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;otherwise communicates with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association or its agent, or&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;presents an instrument issued to pay interest or a dividend or other cash distribution. If any future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by the owner, a new period in which the property is presumed unclaimed commences and relates back only to the time a subsequent dividend, distribution, or other sum became due and payable.&nbsp;</span></p> <p><span class="cls0">C. Any dividend, profit, distribution, interest, redemption, payment on principal, or other sum held or owing by a business association for or to its shareholder, certificate holder, member, bondholder, or other security holder, who has not claimed it, or corresponded in writing with the business association concerning it, within three (3) years after the date prescribed for payment or delivery, is presumed unclaimed.&nbsp;</span></p> <p><span class="cls0">D. The Uniform Unclaimed Property Act shall not apply to patronage dividends, capital credits, customer deposits or non-negotiated payment checks held or owing by cooperative electric power or telephone associations organized under the Rural Electric Cooperative Act and the Telephone Cooperative Corporations Act, rural water, sewer, gas and solid waste management districts organized under the Rural Water, Sewer, Gas and Solid Waste Management Districts Act, or agricultural cooperative marketing or supply associations organized under the Cooperative Marketing Association Act; when such associations are domiciled in Oklahoma.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 5, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 4, eff. Jan. 1, 1983; Laws 1985, c. 146, &sect; 1, emerg. eff. June 10, 1985; Laws 1990, c. 102, &sect; 3, operative July 1, 1990; Laws 1991, c. 331, &sect; 8, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 4, eff. July 1, 1999; Laws 2005, c. 124, &sect; 1, eff. Nov. 1, 2005.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-655.1. Intangible property distributable in course of dissolution of business corporation.&nbsp;</span></p> <p><span class="cls0">Intangible property distributable in the course of a dissolution of a business association which remains unclaimed by the owner for more than one (1) year after the date specified for final distribution is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 9, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-656. Property or funds held by fiduciary.&nbsp;</span></p> <p><span class="cls0">A. Intangible property and any income or increment derived therefrom held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within seven (7) years after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary.&nbsp;</span></p> <p><span class="cls0">B. Holders of presumed abandoned intangible property shall annually report and remit all proceeds accrued to date, including the current balance held by the holder. When and if any part of the proceeds has been held for the statutory abandonment period or longer, the holder must report and remit all interest, additions, and increments accrued to the account of the owner. Any additional amounts accruing to an owner of the same intangible property presumed abandoned previously reported will be reported and remitted on an annual basis, including the additional amounts from the &ldquo;as of date&rdquo; of the previous report year through the &ldquo;as of date&rdquo; of the current report year.&nbsp;</span></p> <p><span class="cls0">In no event shall mineral interest proceeds be required to be reported or remitted sooner than six (6) months after the date of first sale from the applicable well.&nbsp;</span></p> <p><span class="cls0">C. Funds in an individual retirement account or a retirement plan for self-employed individuals or similar account or plan established under the Internal Revenue laws of the United States are not payable or distributable within the meaning of subsection A of this section unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory.&nbsp;</span></p> <p><span class="cls0">D. For the purpose of this section, a person who holds property as an agent for a business association is deemed to hold the property in a fiduciary capacity for that business association alone, unless the agreement between the person and the business association provides otherwise.&nbsp;</span></p> <p><span class="cls0">E. For the purposes of this act, a person who is deemed to hold property in a fiduciary capacity for a business association alone is the holder of the property only insofar as the interest of the business association in the property is concerned, and the business association is the holder of the property insofar as the interest of any other person in the property is concerned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 6, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 5, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 10, eff. Sept. 1, 1991; Laws 2003, c. 224, &sect; 4, eff. July 1, 2003; Laws 2004, c. 318, &sect; 2, eff. July 1, 2004.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60657. Property held by courts, public officers and agencies.&nbsp;</span></p> <p><span class="cls0">Intangible property held for the owner by a court, state or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than one (1) year after becoming payable or distributable is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Laws 1967, c. 107, &sect; 7, emerg. eff. April 24, 1967; Laws 1991, c. 331, &sect; 11, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-657.1. Credit memo issued in ordinary course of business.&nbsp;</span></p> <p><span class="cls0">(a) A credit memo issued in the ordinary course of an issuer's business which has a value of more than Fifty Dollars ($50.00) and remains unclaimed by the owner for more than five (5) years after becoming payable or distributable is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">(b) With regard to a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo. In applying the Fifty Dollar ($50.00) limitation, individual credit memos to the same owner shall not be aggregated.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 12, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-657.2. Unpaid wages owing in ordinary course of business.&nbsp;</span></p> <p><span class="cls0">Unpaid wages, including wages represented by unpresented payroll checks, owing in the ordinary course of the holder's business which remain unclaimed by the owner for more than one (1) year after becoming payable are presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 13, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-657.3. Personal property held in safe deposit box or other safekeeping repository.&nbsp;</span></p> <p><span class="cls0">All tangible and intangible personal property held in a safe deposit box or other safekeeping repository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by other law, which remain unclaimed by the owner for more than five (5) years after the lease or rental period on the box or other repository has expired, are presumed abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 14, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-657.4. Intangible property - Presumption of abandonment.&nbsp;</span></p> <p><span class="cls0">A. All intangible property, including but not limited to securities, principal, interest, dividends or other earnings thereon, less any lawful charges, held by a business association, federal, state or local government or governmental subdivision, agency or entity, or any other person or entity, regardless of where the holder may be found, if the owner has not claimed such property or corresponded in writing with the holder concerning the property within three (3) years after the date prescribed for payment or delivery by the issuer, unless the holder is a state that has taken custody pursuant to its own unclaimed property laws, in which case no additional period of holding beyond that of such state is necessary hereunder, is presumed abandoned and subject to the custody of this state as unclaimed property if:&nbsp;</span></p> <p><span class="cls0">1. The last-known address of the owner is unknown; and&nbsp;</span></p> <p><span class="cls0">2. The person or entity originating or issuing the intangible property is in this state or any political subdivision of this state, or is incorporated, organized, created or otherwise located in this state.&nbsp;</span></p> <p><span class="cls0">B. The provisions of subsection A of this section shall not apply to property which is or may be presumed abandoned and subject to the custody of this state pursuant to any other provision of law containing a dormancy period different than that prescribed in subsection A of this section.&nbsp;</span></p> <p><span class="cls0">C. The provisions of subsection A of this section shall apply to all property held at the time of the effective date of this act, or at any time thereafter, regardless of when such property became or becomes presumptively abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1992, c. 295, &sect; 27, eff. July 1, 1992. Amended by Laws 2000, c. 136, &sect; 4, eff. July 1, 2000.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-658. Miscellaneous personal property held for another.&nbsp;</span></p> <p><span class="cls0">A. Except as otherwise provided in the Uniform Unclaimed Property Act, all intangible personal property, including income or increment derived from the property, less any lawful charges, that is held, issued, or owing in the ordinary course of a holder&rsquo;s business and has remained unclaimed by the owner for more than five (5) years after becoming payable or distributable is presumed abandoned.&nbsp;</span></p> <p><span class="cls0">B. Holders of presumed abandoned intangible property shall report annually and remit all proceeds accrued to date, including the current balance held by the holder. When and if any part of the proceeds has been held for the statutory abandonment period or longer, the holder must report and remit all interest, additions, and increments accrued to the account of the owner. Any additional amounts accruing to an owner of the same intangible property presumed abandoned previously reported will be reported and remitted on an annual basis, including additional amounts from the &ldquo;as of date&rdquo; of the previous report year through the &ldquo;as of date&rdquo; of the current report year.&nbsp;</span></p> <p><span class="cls0">C. In no event shall mineral interest proceeds be required to be reported or remitted sooner than six (6) months after the date of first sale from the applicable well.&nbsp;</span></p> <p><span class="cls0">D. Property is payable or distributable for the purposes of this act notwithstanding the owner&rsquo;s failure to demand the property or to present an instrument or document required to receive payment of the property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 8, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 6, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 15, eff. Sept. 1, 1991; Laws 2003, c. 224, &sect; 5, eff. July 1, 2003; Laws 2004, c. 318, &sect; 3, eff. July 1, 2004.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-658.1. Mineral interests in land.&nbsp;</span></p> <p><span class="cls0">Any mineral interest in land in Oklahoma shall be subject to sale under the provisions of Sections 271.1 through 277 of Title 84 of the Oklahoma Statutes if it generates an intangible property interest which is presumed abandoned for a period of fifteen (15) years under the Uniform Unclaimed Property Act or under similar laws of another state.&nbsp;</span></p> <p><span class="cls0">All holders of intangible property interests generated by a mineral interest in land in Oklahoma shall report to the State Treasurer, in addition to the reporting otherwise required by law, the names and the lastknown addresses of owners of record of the unclaimed mineral interest, the legal description of the land affected, and the extent of the property rights in the mineral interest. Only one report with respect to each owner and mineral interest is necessary; subsequent reports must include complete information with respect to all new owners and new unclaimed mineral interests.&nbsp;</span></p> <p><span class="cls0">The State Treasurer shall send a copy of the report required by this section to the Attorney General and the district attorney of the county in which the land is located. Except to a claimant of the unclaimed mineral interest, or as necessary to effectuate a judicial sale as set forth in Section 271.1 of Title 84 of the Oklahoma Statutes, the legal description of the mineral interest and the extent of the property rights in the mineral interest shall be deemed confidential and not released to the general public by the State Treasurer, Attorney General or district attorney. The State Treasurer shall send a report reflecting only the names and lastknown addresses of owners of record of the unclaimed mineral interest to the county clerk of the county in which the land is located, and the clerk shall maintain the list for public viewing. The clerk shall also report to the board of county commissioners that the report has been received, and note the receipt in the minutes of the meeting, so the public can be informed.&nbsp;</span></p> <p><span class="cls0">The State Treasurer is authorized to develop procedures for the implementation of the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1978, c. 229, &sect; 1, eff. Jan. 1, 1979. Amended by Laws 1988, c. 146, &sect; 2, operative July 1, 1988; Laws 1991, c. 331, &sect; 16, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 5, eff. July 1, 1999; Laws 2005, c. 421, &sect; 1, emerg. eff. June 6, 2005.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-658.1A. Mineral interests generating intangible personal property.&nbsp;</span></p> <p><span class="cls0">Mineral interests which have generated intangible personal property may be presumed by the district court to be abandoned and subject to the provisions that apply to mineral interests covered by Section 658.1 of this title and Sections 271 through 277 of Title 84 of the Oklahoma Statutes if the court determines that the mineral interests should have been reported to the State Treasurer but were not so reported as required by the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1985, c. 85, &sect; 1, eff. Nov. 1, 1985. Amended by Laws 1991, c. 331, &sect; 17, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 6, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-658.2. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.3. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.4. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.5. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.6. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.7. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-658.8. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-659. Additional conditions leading to presumption of abandonment.&nbsp;</span></p> <p><span class="cls0">Unless otherwise provided in the Uniform Unclaimed Property Act or by other statute of this state, intangible personal property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under Sections 651.1 and 651.2 through 658.1A of this title are satisfied, and:&nbsp;</span></p> <p><span class="cls0">1. The last-known address, as shown on the records of the holder, of the apparent owner is in this state;&nbsp;</span></p> <p><span class="cls0">2. The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last-known address of the person entitled to the property is in this state;&nbsp;</span></p> <p><span class="cls0">3. The records of the holder do not reflect the last-known address of the apparent owner, and it is established that:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;the last-known address of the person entitled to the property is in this state, or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;the holder is a domiciliary or a government or governmental subdivision or agency of this state and has not previously paid or delivered the property to the state of the last-known address of the apparent owner or other person entitled to the property;&nbsp;</span></p> <p><span class="cls0">4. The last-known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property, and the holder is a domiciliary, government, or governmental subdivision or agency, including a municipality, of this state;&nbsp;</span></p> <p><span class="cls0">5. The last-known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary or a government or governmental subdivision or agency of this state; or&nbsp;</span></p> <p><span class="cls0">6. The transaction out of which the property arose occurred in this state, and&nbsp;</span></p> <p class="cls4"><span class="cls0">a.&nbsp;&nbsp;(1)&nbsp;&nbsp;the last-known address of the apparent owner or other person entitled to the property is unknown, or&nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;the last-known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;the holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 9, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 18, eff. Sept. 1, 1991; Laws 2000, c. 136, &sect; 5, eff. July 1, 2000.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">&sect;60-659.1. Repealed by Laws 2001, c. 133, &sect; 13, emerg. eff. April 24, 2001.&nbsp;</span></p> <p><span class="cls0">&sect;60-660. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-661. Report of abandoned property.&nbsp;</span></p> <p><span class="cls0">A. A person holding property, tangible or intangible, presumed abandoned and subject to custody as unclaimed property under the Uniform Unclaimed Property Act shall report to the State Treasurer concerning the property as provided in this section.&nbsp;</span></p> <p><span class="cls0">B. The report must be verified and must include:&nbsp;</span></p> <p><span class="cls0">1. The name, if known, and last-known address, if any, of each person appearing from the records of the holder to be the owner of property of the value of Fifty Dollars ($50.00) or more presumed abandoned under the Uniform Unclaimed Property Act and items of value under Fifty Dollars ($50.00), reported in the aggregate, except property which is one of a recurring number of continuous payments, including, but not limited to, royalties, annuities, dividends, distributions and other sums presumed abandoned pursuant to subsection D of Section 655 of this title, which shall be reported in the same manner as property with a value of Fifty Dollars ($50.00) or more;&nbsp;</span></p> <p><span class="cls0">2. In the case of unclaimed funds of Fifty Dollars ($50.00) or more held or owing under any life or endowment insurance policy or annuity contract, the full name and last-known address of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds;&nbsp;</span></p> <p><span class="cls0">3. In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible personal property, a description of the property and the place where it is held, which may be inspected by the State Treasurer, and any amounts, including offsets for drilling costs and rent, owing to the holder;&nbsp;</span></p> <p><span class="cls0">4. The description of the property, including type and identifying number if any, and the amount appearing from the records to be due;&nbsp;</span></p> <p><span class="cls0">5. The date when the property became payable, demandable or returnable, and the date of the last transaction with the owner with respect to the property;&nbsp;</span></p> <p><span class="cls0">6. In the case of a cashier's check, if known, the names and last-known addresses of the payee(s), the payor(s) and the purchaser(s); and&nbsp;</span></p> <p><span class="cls0">7. Any other information reasonably required by the Treasurer.&nbsp;</span></p> <p><span class="cls0">C. If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or if the name of the holder has changed while holding the property, the holder shall file with the report all known names and addresses of each previous holder of the property.&nbsp;</span></p> <p><span class="cls0">D. The report must be filed before November 1 of each year for property reportable as of the preceding July 1, but the report of any life insurance company must be filed before May 1 of each year for property reportable as of the preceding March 1. The State Treasurer may postpone the reporting date upon written request by any person required to file a report.&nbsp;</span></p> <p><span class="cls0">E. Not more than one hundred twenty (120) days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under the Uniform Unclaimed Property Act shall send written notice to the apparent owner at the owner's last-known address informing the owner that the holder is in possession of property subject to the Uniform Unclaimed Property Act if:&nbsp;</span></p> <p><span class="cls0">1. The holder has in the records of the holder an address for the apparent owner which the holder's records do not disclose to be inaccurate;&nbsp;</span></p> <p><span class="cls0">2. The claim of the apparent owner is not barred by the statute of limitations; and&nbsp;</span></p> <p><span class="cls0">3. The property has a value of Fifty Dollars ($50.00) or more, or the property has a value of less than Fifty Dollars ($50.00) and is one of a recurring number of continuous payments, including, but not limited to, royalties, annuities, dividends, distributions and other recurring sums presumed abandoned pursuant to subsection D of Section 655 of this title. The holder is not required to send written notice to the owner if the holder has previously attempted to communicate with the owner, or otherwise exercised due diligence to ascertain the whereabouts of the owner. The mailing of notice by first-class mail to the last-known address of the owner by the holder shall constitute compliance with this subsection and, if done, no further act on the part of the holder shall be necessary.&nbsp;</span></p> <p><span class="cls0">F. Reports filed by a holder shall remain confidential except for that information required to be subject to public inspection pursuant to the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">G. The Treasurer may require a holder reporting fifteen or more items of property pursuant to this section to file the report online. The Treasurer shall promulgate rules necessary to carry out provisions for online filing.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 11, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 7, eff. Jan. 1, 1983; Laws 1988, c. 281, &sect; 9, operative July 1, 1988; Laws 1991, c. 331, &sect; 20, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 7, eff. July 1, 1999; Laws 2001, c. 133, &sect; 7, emerg. eff. April 24, 2001; Laws 2003, c. 224, &sect; 6, eff. July 1, 2003; Laws 2006, c. 233, &sect; 2, eff. Nov. 1, 2006; Laws 2008, c. 108, &sect; 2, emerg. eff. May 2, 2008; Laws 2009, c. 433, &sect; 1, eff. Nov. 1, 2009; Laws 2010, c. 241, &sect; 2, emerg. eff. May 10, 2010; Laws 2013, c. 307, &sect; 4, eff. Nov. 1, 2013.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-662. Notice and publication of lists of abandoned property.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer shall cause at least two notices to be published during the year following the report required by Section 661 of this title in a legal newspaper of general circulation in the county in this state in which is located the lastknown address of any person to be named in the notice. Different legal newspapers of general circulation may be used for each notice. If no address is listed or if the address is outside this state, the notice must be published in the county within this state which is the principal place of business of the holder of the abandoned property, or in an Oklahoma newspaper which the State Treasurer believes most likely to be seen by the owner of the property or by heirs of the owner.&nbsp;</span></p> <p><span class="cls0">B. The published notice must be entitled "Notice of Names of Persons Appearing to be Owners of Abandoned Property", and contain:&nbsp;</span></p> <p><span class="cls0">1. The names in alphabetical order and lastknown address, if any, of persons listed in the report and entitled to notice within the county as specified in subsection A of this section;&nbsp;</span></p> <p><span class="cls0">2. A statement that information concerning the property and the name and last-known address of the holder may be obtained by any person possessing an interest in the property by addressing an inquiry to the State Treasurer; and&nbsp;</span></p> <p><span class="cls0">3. A statement that the property is in the custody of the State Treasurer and all claims must be directed to the State Treasurer.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer is not required to publish in the notice any items of less than Fifty Dollars ($50.00) unless the State Treasurer considers their publication to be in the public interest.&nbsp;</span></p> <p><span class="cls0">D. The State Treasurer shall provide electronic access to the new names and last-known addresses of all persons reported to the State Treasurer as owners of unclaimed property on an Internet web site. The State Treasurer shall take reasonable steps to publicize the existence of this web site and shall publish an advertisement no less than once each calendar quarter in a legal newspaper of general circulation in each county of this state.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 12, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 8, eff. Jan. 1, 1983; Laws 1991, c. 331, &sect; 21, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 8, eff. July 1, 1999; Laws 2003, c. 224, &sect; 7, eff. July 1, 2003; Laws 2005, c. 124, &sect; 2, eff. Nov. 1, 2005; Laws 2008, c. 108, &sect; 3, emerg. eff. May 2, 2008; Laws 2009, c. 433, &sect; 2, eff. Nov. 1, 2009.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-663. Payment or delivery of abandoned property.&nbsp;</span></p> <p><span class="cls0">A. A person who is required to file a report under Section 661 of this title shall at the same time pay or deliver to the State Treasurer all abandoned property required to be reported after first deducting therefrom expenses incurred in the mailing of notices required by subsection E of Section 661 of this title and any offsets as provided by law. Any funds or property subject to aggregate reporting shall be delivered at the same time as the report.&nbsp;</span></p> <p><span class="cls0">B. A holder may file a written explanation of an error in the presumption of abandonment of any previously reported and paid or delivered property. If the property has not been claimed by the owner and the State Treasurer is satisfied an error has been made, a refund of the payment or delivery of the property shall be made to the holder.&nbsp;</span></p> <p><span class="cls0">C. The holder of an ownership interest under Section 655 of this title shall deliver a duplicate certificate or other evidence of ownership if the holder does not issue certificates of ownership to the State Treasurer. Upon delivery of a duplicate certificate to the State Treasurer, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate is relieved of liability as provided in Section 664 of this title to every person, including any person acquiring the original certificate or the duplicate of the certificate issued to the State Treasurer, for losses or damages resulting to any person by the issuance and delivery to the State Treasurer of the duplicate certificate.&nbsp;</span></p> <p><span class="cls0">D. Property removed from a safe deposit box or other safekeeping depository is received by the State Treasurer subject to the right of the holder to be reimbursed for the cost of the opening and to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The State Treasurer shall reimburse the holder out of the proceeds remaining after deducting the expenses incurred by the State Treasurer in selling the property. The liability of the State Treasurer for this reimbursement to the holder shall be limited to the proceeds of the sale remaining after deducting the expenses incurred by the State Treasurer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 13, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 22, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 9, eff. July 1, 1999; Laws 2003, c. 224, &sect; 8, eff. July 1, 2003; Laws 2004, c. 318, &sect; 4, eff. July 1, 2004; Laws 2005, c. 124, &sect; 3, eff. Nov. 1, 2005; Laws 2008, c. 108, &sect; 4, emerg. eff. May 2, 2008.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-664. Relief from liability by payment or delivery.&nbsp;</span></p> <p><span class="cls0">A. Upon the payment or delivery of abandoned property to the State Treasurer, the state assumes custody and responsibility for the safekeeping of the property. A person who pays or delivers property to the State Treasurer in good faith is relieved of all liability to the extent of the value of the property paid or delivered for any claim then existing or which thereafter may arise or be made in respect to the property.&nbsp;</span></p> <p><span class="cls0">B. A holder who has paid money to the State Treasurer pursuant to the Uniform Unclaimed Property Act may make payment to any person appearing to the holder to be entitled to payment; and upon filing proof of such payment and proof that the payee was entitled thereto, the State Treasurer shall promptly reimburse the holder for the payment without imposing a fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a travelers check or money order, the holder shall be reimbursed under this subsection upon filing proof that the instrument was presented and that payment was made to a person who appeared to the holder to be entitled to payment. The holder shall be reimbursed for payment made under this subsection even if the holder paid a person whose claim was barred under subsection A of Section 666 of this title.&nbsp;</span></p> <p><span class="cls0">C. A holder who has delivered property, including, but not limited to, a certificate of an ownership interest in a business association, other than money to the State Treasurer pursuant to the Uniform Unclaimed Property Act may reclaim the property if still in the possession of the Treasurer, without paying any fee or other charge, upon filing proof that the owner has claimed the property from the holder.&nbsp;</span></p> <p><span class="cls0">D. The State Treasurer may accept the holder's affidavit as sufficient proof of the facts that entitle the holder to recover money and property under this section.&nbsp;</span></p> <p><span class="cls0">E. If the holder pays or delivers property to the State Treasurer in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the State Treasurer, upon written notice of the claim, shall defend the holder against the claim and, to the extent of the property's value, shall indemnify the holder against liability on the claim. Neither the holder nor the State Treasurer shall be liable for more than the value of the property, determined as of the time of its payment or delivery to the State Treasurer, if the holder paid or delivered the property to the State Treasurer in good faith.&nbsp;</span></p> <p><span class="cls0">F. For the purposes of this section, "good faith" means that:&nbsp;</span></p> <p><span class="cls0">1. Payment or delivery was made in a reasonable attempt to comply with the Uniform Unclaimed Property Act;&nbsp;</span></p> <p><span class="cls0">2. The person delivering the property was not a fiduciary then in breach of trust in respect to the property and had a reasonable basis for believing, based on the facts then known, that the property was abandoned for the purposes of the Uniform Unclaimed Property Act; &nbsp;</span></p> <p><span class="cls0">3. There is no showing that the records under which the delivery was made did not meet reasonable commercial standards of practice in the industry; and&nbsp;</span></p> <p><span class="cls0">4. The reporting and delivery of property was made in compliance with Sections 661 and 663 of this title and any applicable administrative rules.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 14, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 23, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 10, eff. July 1, 1999; Laws 2010, c. 241, &sect; 3, emerg. eff. May 10, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-665. Dividends, interest, or other increments realized or accruing after payment or delivery.&nbsp;</span></p> <p><span class="cls0">Whenever property other than money is paid or delivered to the State Treasurer under the Uniform Unclaimed Property Act, the owner is entitled to receive from the State Treasurer dividends, interest, or other increments realized or accruing on the property at or before liquidation or conversion thereof into money.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 15, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 24, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 11, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60666. Periods of limitation - Effect - Application.&nbsp;</span></p> <p><span class="cls0">A. The expiration after September 1, 1991, of any period of time specified by contract, statute, or court order, during which a claim for money or property can be made or during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or to recover property, does not prevent the money or property from being presumed abandoned property or affect any duty to file a report or to pay or deliver abandoned property to the State Treasurer as required by the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">B. No action or proceeding may be commenced by the State Treasurer with respect to any duty of a holder under the Uniform Unclaimed Property Act more than four (4) years after the holder files the report pursuant to Section 661 of this title or ten (10) years after the duty arose, whichever is earlier.&nbsp;</span></p> <p><span class="cls0">C. Notwithstanding the provisions of subsection B of this section or any other provision of law, the expiration of any period of time specified by law during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property shall not serve as a defense in any action or proceeding brought by or on behalf of the State Treasurer against any federal, state or local government or governmental subdivision, agency, entity, officer or appointee thereof, for the payment or delivery of any abandoned property to the State Treasurer pursuant to the Uniform Unclaimed Property Act or to enforce or collect any penalty provided by the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">D. The provisions of subsection C of this section shall apply to all abandoned property held by any federal, state or local government or governmental subdivision, agency, entity, officer or appointee thereof, at the time of enactment, or at any time thereafter, regardless of when such property became or becomes presumptively abandoned.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 16, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 25, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 12, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-667. Sale of abandoned property from safe deposit boxes - Securities.&nbsp;</span></p> <p><span class="cls0">A. Except as provided in subsections B and C of this section, when the State Treasurer determines it to be economically feasible, the Treasurer shall sell abandoned property from safe deposit boxes to the highest bidder at public sale in whatever city in the state affords in the judgment of the State Treasurer the most favorable market for the property involved. The State Treasurer may decline the highest bid and reoffer the property for sale if in the judgment of the State Treasurer the bid is insufficient. If in the judgment of the State Treasurer the probable cost of sale exceeds the value of the property, it need not be offered for sale. Any sale held under this section must be preceded by a single publication of notice, at least three (3) weeks in advance of sale in a legal newspaper of general circulation in the county where the property is to be sold, the county of residence of the holder and the county of the last-known address of the owner.&nbsp;</span></p> <p><span class="cls0">B. Securities listed on an established stock exchange must be sold at prices prevailing at the time of sale on the exchange. Other securities may be sold over the counter at prices prevailing at the time of sale or by another method the State Treasurer considers advisable. The liquidation of securities shall be exempt from the procedures set forth in subsection A of this section.&nbsp;</span></p> <p><span class="cls0">C. Unless the State Treasurer considers it to be in the best interest of the state to do otherwise, all securities, other than those presumed abandoned under Section 655 of this title, delivered to the State Treasurer must be held for at least one (1) year before the State Treasurer may sell them.&nbsp;</span></p> <p><span class="cls0">D. The purchaser at any sale conducted by the State Treasurer pursuant to the Uniform Unclaimed Property Act takes the property, free of all claims of the owner or prior holder thereof and of all persons claiming through or under them. The State Treasurer shall execute all documents necessary to complete the transfer of ownership.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 17, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 26, eff. Sept. 1, 1991; Laws 1998, c. 385, &sect; 13, eff. July 1, 1998; Laws 1999, c. 10, &sect; 13, eff. July 1, 1999; Laws 2003, c. 224, &sect; 9, eff. July 1, 2003; Laws 2004, c. 318, &sect; 5, eff. July 1, 2004; Laws 2005, c. 124, &sect; 4, eff. Nov. 1, 2005; Laws 2011, c. 261, &sect; 5, eff. Nov. 1, 2011.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-668. Unclaimed Property Fund - Deposits - Deductions.&nbsp;</span></p> <p><span class="cls0">A. There is hereby created in the State Treasury the &ldquo;Unclaimed Property Fund&rdquo;, the principal of which shall constitute a trust fund for persons claiming any interest in any property delivered to the state under the Uniform Unclaimed Property Act and may be invested as hereinafter provided and shall not be expended except as provided in the Uniform Unclaimed Property Act. All funds received under the Uniform Unclaimed Property Act, including the proceeds from the sale of abandoned property under Section 667 of this title, shall forthwith be deposited by the State Treasurer in the Unclaimed Property Fund, herein created, except that the State Treasurer may before making any deposit to the fund deduct:&nbsp;</span></p> <p><span class="cls0">1. All costs in connection with the sale of abandoned property;&nbsp;</span></p> <p><span class="cls0">2. All costs of mailing and publication in connection with any abandoned property including the cost of custody services for unclaimed securities;&nbsp;</span></p> <p><span class="cls0">3. Reasonable service charges not to exceed four percent (4%) of the monies accruing to the state under the Uniform Unclaimed Property Act, which may be used to defray the administrative costs, including costs necessary to retain legal counsel to ensure compliance with the Uniform Unclaimed Property Act, or to acquire computer hardware and software to be used exclusively to help administer the unclaimed property program; and&nbsp;</span></p> <p><span class="cls0">4. An amount equal to fifteen percent (15%) of the funds accruing to the state pursuant to a contract with the State Treasurer providing information leading to the delivery of unclaimed property held by a holder to the State Treasurer to be deposited in the Unclaimed Property Clearinghouse Fund.&nbsp;</span></p> <p><span class="cls0">B. Before making a deposit to the Unclaimed Property Fund, the State Treasurer shall record the name and lastknown address of each person appearing from the holders&rsquo; reports to be entitled to the abandoned property and of the name and lastknown address of each insured person or annuitant, and with respect to each policy or contract listed in the report of a life insurance corporation, its number, the name of the corporation, and the amount due. The record shall be available for public inspection at all reasonable business hours.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 18, emerg. eff. April 24, 1967. Amended by Laws 1990, c. 102, &sect; 1, operative July 1, 1990; Laws 1999, c. 10, &sect; 14, eff. July 1, 1999; Laws 1999, c. 292, &sect; 1, eff. July 1, 1999; Laws 2002, c. 95, &sect; 1, eff. July 1, 2002; Laws 2003, c. 224, &sect; 10, eff. July 1, 2003; Laws 2004, c. 318, &sect; 6, eff. July 1, 2004; Laws 2009, c. 433, &sect; 3, eff. Nov. 1, 2009.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-668.1. Unclaimed Property Clearinghouse Fund.&nbsp;</span></p> <p><span class="cls0">A. There is hereby created in the State Treasury a revolving fund for the State Treasurer to be designated the &ldquo;Unclaimed Property Clearinghouse Fund&rdquo;. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of monies deposited to the fund pursuant to Section 668 of this title. All monies accruing to the credit of the fund are appropriated to the State Treasurer. The State Treasurer may budget and expend monies from the fund for the purpose of making payment for the mailing, publication and sale costs associated with abandoned property, and to persons, firms, or corporations who are regularly engaged in the business of notifying states about property which may be subject to the provisions of unclaimed property statutes of those states. The State Treasurer may enter into contracts with these persons, firms or corporations performing these services, which services may include the examination of any party subject to examination under the Uniform Unclaimed Property Act. The State Treasurer may delegate all necessary authority to act in the State Treasurer&rsquo;s behalf to such persons, firms or corporations to enforce the provisions of the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">B. The State Treasurer shall be authorized to expend monies from the Unclaimed Property Clearinghouse Fund in payment of a reasonable fee not to exceed fifteen percent (15%) of the delivered funds to a person, firm, or corporation contracting with the State Treasurer providing information leading to the delivery of unclaimed property held by a holder to the State Treasurer. Such payment shall not be made until the funds have been deposited with the State Treasurer.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer is authorized to purchase services, including legal services, in order to locate and effect the delivery of property and related owner information to assist the State Treasurer in the Treasurer&rsquo;s duties related to the administration of the Uniform Unclaimed Property Act. The purchase of such services shall be chosen by a solicitation of proposals on a competitive basis, but shall be exempt from the provisions of The Oklahoma Central Purchasing Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 102, &sect; 2, operative July 1, 1990. Amended by Laws 1999, c. 10, &sect; 15, eff. July 1, 1999; Laws 2001, c. 133, &sect; 8, emerg. eff. April 24, 2001; Laws 2004, c. 318, &sect; 7, eff. July 1, 2004; Laws 2009, c. 433, &sect; 4, eff. Nov. 1, 2009.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-669. Control and management of monies in Unclaimed Property Fund.&nbsp;</span></p> <p><span class="cls0">The State Treasurer is hereby vested with authority and the responsibility for the control and management of all monies in the Unclaimed Property Fund as provided for in the Uniform Unclaimed Property Act. It shall be the duty of the State Treasurer to take such steps as may be necessary to preserve the principal of monies accruing to the Unclaimed Property Fund as a trust for persons claiming any interest in any property delivered to the state pursuant to the provisions of the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 19, emerg. eff. April 24, 1967. Amended by Laws 1984, c. 107, &sect; 1, emerg. eff. April 9, 1984; Laws 1991, c. 331, &sect; 27, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 16, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-670. Determination of amount of reserve - Payment of excesses.&nbsp;</span></p> <p><span class="cls0">The State Treasurer shall determine, from time to time, what amount of unclaimed property in custody should be retained as a reserve in order to ensure that all claims presented by persons legally establishing a right to any unclaimed property shall be paid promptly. In making such determination, the State Treasurer shall take into account the following:&nbsp;</span></p> <p><span class="cls0">1. The actual experience of other states having unclaimed property laws, as to the amount of claims presented and established as compared to the total amount of property taken into state custody;&nbsp;</span></p> <p><span class="cls0">2. Such actuarial or other experience or statistics as may be available to show the frequency of the discovery of missing persons or their unknown heirs;&nbsp;</span></p> <p><span class="cls0">3. Any other discoverable and relevant data having a tendency to establish the amount of reserve necessary for the purpose stated in this section.&nbsp;</span></p> <p><span class="cls0">The State Treasurer, after having found and determined the reserve necessary as stated in this section, shall pay all amounts in custody in excess of the necessary reserve into the State Treasury to the credit of the General Revenue Fund.&nbsp;</span></p> <p><span class="cls0">When monies are deposited to the credit of the General Revenue Fund, all rights of any owner of unclaimed property to resort against the money so paid into the General Revenue Fund shall terminate, but the right of any person legally establishing a claim to any property right which has been taken into the custody of the State Treasurer shall be preserved and the value thereof shall be paid from such reserve.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 20, emerg. eff. April 24, 1967. Amended by Laws 1968, c. 75, &sect; 1, emerg. eff. March 25, 1968; Laws 1984, c. 107, &sect; 2, emerg. eff. April 9, 1984; Laws 1999, c. 10, &sect; 17, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-671. Insufficiency of reserve.&nbsp;</span></p> <p><span class="cls0">If, at any time, the reserve as provided for in the Uniform Unclaimed Property Act is insufficient to pay in full established claims, the State Treasurer immediately shall:&nbsp;</span></p> <p><span class="cls0">1. Redetermine, on the basis of past experience, the percentage necessary to be maintained in the reserve; and&nbsp;</span></p> <p><span class="cls0">2. Cease to make any payments to the General Revenue Fund until:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;all validly established claims as provided for in the Uniform Unclaimed Property Act have been paid, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;there is accumulated in the reserve the sum required to be kept therein under the redetermination, whereupon the State Treasurer shall resume payments to the General Revenue Fund in accordance with the terms of the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 21, emerg. eff. April 24, 1967. Amended by Laws 1984, c. 107, &sect; 3, emerg. eff. April 9, 1984; Laws 1991, c. 331, &sect; 28, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 18, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-672. Investment of reserve fund.&nbsp;</span></p> <p><span class="cls0">The State Treasurer shall have the care, custody, and management of the reserve fund, and may invest it, at the best realizable rate, in accordance with the investment policies of the State Treasurer and the provisions of state law governing the investment of public funds of the State of Oklahoma. The income from such investments shall be paid into the State Treasury to the credit of the General Revenue Fund.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 22, emerg. eff. April 24, 1967. Amended by Laws 1984, c. 107, &sect; 4, emerg. eff. April 9, 1984; Laws 1999, c. 10, &sect; 19, eff. July 1, 1999; Laws 2008, c. 108, &sect; 5, emerg. eff. May 2, 2008.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-673. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-674. Claim for abandoned property.&nbsp;</span></p> <p><span class="cls0">A. A person, excluding another state, claiming an interest in any property delivered to the State Treasurer may file a claim on a form prescribed by the State Treasurer and verified by the claimant. The date of filing of a claim shall be the date it is received by the State Treasurer with all supporting documentation from the claimant. Any information submitted by a claimant which is required to be submitted to the State Treasurer to establish a claim may be kept confidential by the State Treasurer if it contains personal financial information of the claimant, social security numbers, birth certificates or similar documents related to the parentage of an individual, or any other document which is confidential by statute if in the custody of another public agency or person.&nbsp;</span></p> <p><span class="cls0">B. The State Treasurer shall consider each claim within ninety (90) days after it is filed and give written notice to the claimant if the claim is denied in whole or in part. The notice may be given by mailing it to the last address, if any, stated in the claim as the address to which notices are to be sent. If no address for notices is stated in the claim, the notice may be mailed to the last address, if any, of the claimant as stated in the claim. No notice of denial need be given if the claim fails to state either the address to which notices are to be sent or the address of the claimant.&nbsp;</span></p> <p><span class="cls0">C. If a claim is allowed, the State Treasurer shall pay over or deliver to the claimant the property or the amount the State Treasurer actually received or the net proceeds if it has been sold by the State Treasurer, together with any additional amount required by Section 665 of this title, but no person shall have any claim under this section against the state, the holder, any transfer agent, registrar or other person acting for or on behalf of the state or a holder, for any appreciation or depreciation in the value of the property or any earnings that might otherwise accrue, after sale of the property by the State Treasurer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 24, emerg. eff. April 24, 1967. Amended by Laws 1988, c. 281, &sect; 10, operative July 1, 1988; Laws 1991, c. 331, &sect; 29, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 20, eff. July 1, 1999; Laws 2000, c. 136, &sect; 6, eff. July 1, 2000; Laws 2001, c. 133, &sect; 9, emerg. eff. April 24, 2001; Laws 2003, c. 224, &sect; 11, eff. July 1, 2003; Laws 2011, c. 261, &sect; 1, eff. Nov. 1, 2011.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-674.1. Limitation on service fees for recovery of funds or property - Mineral proceeds as payment for services prohibited.&nbsp;</span></p> <p><span class="cls0">A. No person who:&nbsp;</span></p> <p><span class="cls0">1. informs a potential claimant of any unclaimed funds or other property, tangible or intangible, held pursuant to the Uniform Disposition of Unclaimed Property Act that such claimant may be entitled to claim such unclaimed property; or&nbsp;</span></p> <p><span class="cls0">2. files a claim for any funds or other property, tangible or intangible, on behalf of a claimant of such funds or property,&nbsp;</span></p> <p><span class="cls0">shall contract for or receive from the claimant, for services, an amount that exceeds twenty-five percent (25%) of the value of the funds or property recovered.&nbsp;</span></p> <p><span class="cls0">If the funds or property involved are mineral proceeds, the amount for services shall not include a portion of the underlying minerals or any production payment, overriding royalty, or similar payment.&nbsp;</span></p> <p><span class="cls0">B. The provisions of this section shall apply to contracts executed on or after July 1, 1990.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 301, &sect; 1, emerg. eff. May 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-674.2. Property delivered to the State Treasurer.&nbsp;</span></p> <p><span class="cls0">If any person claims an interest in any property delivered to the State Treasurer in which the owner of the property is determined to be deceased, the State Treasurer shall not pay over or deliver to the claimant property as provided in Section 651 et seq. of this title, unless the claimant provides the following items:&nbsp;</span></p> <p><span class="cls0">1. A certified copy of letters of administration or letters testamentary from the probate of the estate of the decedent naming the claimant as the personal representative of the estate of the decedent;&nbsp;</span></p> <p><span class="cls0">2. A certified copy of the decree of distribution from the probate of the estate of the decedent determining the claimant to be entitled to receive such property through the estate of the decedent;&nbsp;</span></p> <p><span class="cls0">3. If the owner of the property executed an inter vivos trust which provided for the disposition of the property of the owner, a properly verified copy of the trust instrument which shows the claimant is the trustee or beneficiary of the trust or otherwise entitled to the property reported;&nbsp;</span></p> <p><span class="cls0">4. If the property is derived from real property located in Oklahoma, a certified copy of a final decree quieting title of the decedent's real property, determining the claimant to be the successor in interest of decedent's ownership interest;&nbsp;</span></p> <p><span class="cls0">5. If the value of the property is Five Thousand Dollars ($5,000.00) or more, a certified copy of the death certificate of the owner of the property;&nbsp;</span></p> <p><span class="cls0">6. If the value of the property is Ten Thousand Dollars ($10,000.00) or less, a signed affidavit executed by the claimant stating that the claimant is entitled to receive such property, the reason the claimant is entitled to receive such property, that there has been no probate of the estate of the deceased owner, that no probate is contemplated and that claimant will indemnify the state for any loss, including attorney fees, should another claimant assert a prior right to the property.&nbsp;</span></p> <p><span class="cls0">The State Treasurer may require other reasonable documentation, in addition to the above items, to determine the validity of the claim.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 304, &sect; 1, eff. Sept. 1, 1994. Amended by Laws 1996, c. 334, &sect; 6, eff. Nov. 1, 1996; Laws 1999, c. 84, &sect; 1, eff. Nov. 1, 1999; Laws 1999, c. 426, &sect; 1, eff. Nov. 1, 1999; Laws 2001, c. 133, &sect; 10, emerg. eff. April 24, 2001; Laws 2003, c. 224, &sect; 12, eff. July 1, 2003; Laws 2010, c. 241, &sect; 4, emerg. eff. May 10, 2010; Laws 2012, c. 131, &sect; 2, eff. Nov. 1, 2012.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: Laws 1999, c. 10, &sect; 21 repealed by Laws 1999, c. 426, &sect; 4, eff. Nov. 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-675. Determination of claims - Payment.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer shall consider any claim filed under the Uniform Unclaimed Property Act and may hold a hearing and receive evidence concerning it. The procedure to be followed hereunder shall be as prescribed by the Administrative Procedures Act. If a hearing is held, the State Treasurer shall prepare a finding and decision in writing on each claim filed, stating the substance of any evidence heard by the State Treasurer and the reasons for the State Treasurer&rsquo;s decision. The decision shall be a public record.&nbsp;</span></p> <p><span class="cls0">B. Upon approval by the State Treasurer, the claim shall be paid forthwith from the Unclaimed Property Fund. The claim shall be paid without deduction for costs of notices or sale or for service charges.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer shall not pay monies to rightful owners, or their heirs, devisees, and assigns, exceeding the reimbursement amount the Treasurer shall receive from the Mineral Owner&rsquo;s Fund attributable to such payments to rightful owners, or their heirs, devisees, and assigns.&nbsp;</span></p> <p><span class="cls0">D. Claims against the Mineral Owner&rsquo;s Fund shall be subject to the same statutory requirements and administrative rules as applicable to claims under the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 25, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 30, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 22, eff. July 1, 1999; Laws 2009, c. 433, &sect; 5, eff. Nov. 1, 2009; Laws 2010, c. 241, &sect; 5, emerg. eff. May 10, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-676. Repealed by Laws 2002, c. 95, &sect; 6, eff. July 1, 2002.&nbsp;</span></p> <p><span class="cls0">&sect;60-677. Declining receipt of property - Delivery of property before presumed abandoned - Sale of securities.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer may decline to receive any property reported under the Uniform Unclaimed Property Act which the State Treasurer considers to have a value less than the expense of giving notice and of sale. The State Treasurer may promulgate rules pursuant to this subsection.&nbsp;</span></p> <p><span class="cls0">B. A holder, with the written consent of the State Treasurer and upon conditions and terms prescribed by the State Treasurer, may report and deliver property before the property is presumed abandoned. If a property holder reports and delivers property to the State Treasurer before it is presumed abandoned under the Uniform Unclaimed Property Act and it is in the best interest of the property owner for the property to be treated as abandoned, the Treasurer shall treat the property as abandoned.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer may decline to accept weapons abandoned in safe deposit boxes which become property subject to the Uniform Unclaimed Property Act. Such property shall be deposited with a local sheriff or municipal police department.&nbsp;</span></p> <p><span class="cls0">D. If a claimant under the Uniform Unclaimed Property Act makes a verifiable and proper claim, but fails to properly transfer securities into the claimant's name within ninety (90) days of claim approval by the State Treasurer, the State Treasurer may, upon notice to claimant, sell and convert such securities to cash for the benefit of the claimant.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 27, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 32, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 24, eff. July 1, 1999; Laws 2004, c. 318, &sect; 8, eff. July 1, 2004; Laws 2005, c. 124, &sect; 5, eff. Nov. 1, 2005; Laws 2012, c. 131, &sect; 3, eff. Nov. 1, 2012.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-677.1. Destruction of property having insubstantial commercial value.&nbsp;</span></p> <p><span class="cls0">If the State Treasurer determines after investigation that any property delivered under the Uniform Unclaimed Property Act has insubstantial commercial value, the State Treasurer may destroy or otherwise dispose of the property at any time. No action or proceeding may be maintained against the state or any officer or against the holder for or on account of any action taken by the State Treasurer pursuant to this section.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 33, eff. Sept. 1, 1991. Amended by Laws 1999, c. 10, &sect; 25, eff. July 1, 1999; Laws 2006, c. 233, &sect; 3, eff. Nov. 1, 2006.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-678. Report may be required - Failure to report property - Examination of records.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer may require any person who has not filed a report to file a verified report stating whether or not the person is holding any unclaimed property reportable or deliverable under the Uniform Unclaimed Property Act. If the State Treasurer has reason to believe that any person has failed to report property in accordance with the Uniform Unclaimed Property Act, the State Treasurer may make a demand by certified mail, return receipt requested, that such report be made and filed with the State Treasurer. The report of abandoned property or any other report required shall be made and filed with the State Treasurer within sixty (60) days after receipt of the demand.&nbsp;</span></p> <p><span class="cls0">B. The State Treasurer may at reasonable times and upon reasonable notice examine the records of any person if the State Treasurer has reason to believe that such person has failed to report property that should have been reported pursuant to the Uniform Unclaimed Property Act. The State Treasurer may contract with any other person or entity to conduct the examination on behalf of the State Treasurer.&nbsp;</span></p> <p><span class="cls0">C. If a person is treated under Section 656 of this title as the holder of the property only insofar as the interest of the business association in the property is concerned, the State Treasurer, pursuant to subsection B of this section, may examine the records of the person if the State Treasurer has given the notice required by subsection B of this section to both the person and the business association at least ninety (90) days before the examination.&nbsp;</span></p> <p><span class="cls0">D. If a holder fails after September 1, 1991, to maintain the records required by Section 679.1 of this title and the records of the holder available for the periods subject to the Uniform Unclaimed Property Act are insufficient to permit the preparation of a report, the State Treasurer may require the holder to report and pay the amount that is reasonably estimated from any available records.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 28, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 34, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 26, eff. July 1, 1999; Laws 2008, c. 108, &sect; 6, emerg. eff. May 2, 2008.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-679. Proceeding to compel delivery - Costs of examinations or investigations.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer may bring an action in a court of appropriate jurisdiction to enforce the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">B. The actual cost of any examination or investigation incurred by the State Treasurer in administering any provision of the Uniform Unclaimed Property Act may be borne by the holder examined or investigated, provided that in no case may the charges exceed the value of the property found to be reportable and deliverable as a result of the examination, and either:&nbsp;</span></p> <p><span class="cls0">1. A written demand for a report shall have been made and not forthcoming in time specified in Section 678 of this title; &nbsp;</span></p> <p><span class="cls0">2. A report has not been received, and the examination or investigation by the State Treasurer establishes that the holder willfully or without reasonable cause has failed to report property reportable under the Uniform Unclaimed Property Act and property reportable thereunder is discovered by such examination or investigation; or&nbsp;</span></p> <p><span class="cls0">3. A report has been received and the examination or investigation by the State Treasurer establishes that the holder willfully or without reasonable cause has failed to report additional property reportable under the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">C. The cost of examination made pursuant to subsection C of Section 678 of this title may be imposed only against the business association.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 29, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 35, eff. Sept. 1, 199; Laws 1999, c. 10, &sect; 27, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-679.1. Records of names and addresses of owners and instruments.&nbsp;</span></p> <p><span class="cls0">A. Every holder required to file a report under Section 661 of this title, as to any property for which it has obtained the last-known address of the owner, shall maintain a record of the name and last-known address of the owner for ten (10) years after the property is reported, except to the extent that a shorter time period is provided in subsection B of this section or by rule of the State Treasurer or the holder's regulatory agency or commission.&nbsp;</span></p> <p><span class="cls0">B. Any business association that sells in this state its travelers checks, money orders, or other similar written instruments, other than third-party bank checks on which the business association is directly liable, or that provides such instruments to others for sale in this state, shall maintain a record of the instruments while they remain outstanding, indicating the state and date of issue for three (3) years after the date the property is reportable.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 36, eff. Sept. 1, 1991. Amended by Laws 1999, c. 10, &sect; 28, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-680. Interest - Penalties - Waiver or remittance.&nbsp;</span></p> <p><span class="cls0">A. A person who fails to pay or deliver property within the time prescribed by the Uniform Unclaimed Property Act may be required to pay interest at the annual rate of ten percent (10%) on the property or value thereof from the date the property should have been paid or delivered.&nbsp;</span></p> <p><span class="cls0">B. In addition to the penalty imposed in subsection A of this section, a person who willfully fails to render any report or deliver property or perform any other duties required under the Uniform Unclaimed Property Act may be required to pay a civil penalty of One Hundred Dollars ($100.00) for each day the report is withheld or the duty is not performed, but not more than Five Thousand Dollars ($5,000.00).&nbsp;</span></p> <p><span class="cls0">C. A person who willfully fails to pay or deliver property to the State Treasurer as required under the Uniform Unclaimed Property Act may be required to pay a civil penalty equal to twenty-five percent (25%) of the value of the property that should have been paid or delivered.&nbsp;</span></p> <p><span class="cls0">D. A person who willfully refuses after written demand by the State Treasurer to pay or deliver property to the State Treasurer as required under the Uniform Unclaimed Property Act is guilty of a misdemeanor and upon conviction may be punished by a fine of not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00), or imprisonment for not more than six (6) months, or both.&nbsp;</span></p> <p><span class="cls0">E. The interest or penalty or any portion thereof, as imposed by subsection A, B or C of this section, may be waived or remitted by the State Treasurer if the person&rsquo;s failure to pay abandoned funds or deliver property is satisfactorily explained to the State Treasurer or if such failure has resulted from a mistake by the person of either the law or the facts subjecting that person to pay abandoned funds or deliver property subject to the Uniform Unclaimed Property Act, or inability to pay such interest or penalty resulting from insolvency. The State Treasurer shall promulgate rules in accordance with the Administrative Procedures Act requiring the identification and recording of those circumstances under which interest or penalty, as imposed by subsection A, B, or C of this section, may be waived. The State Treasurer may also authorize amnesty programs to promote voluntary compliance with the Uniform Unclaimed Property Act, and may participate and cooperate with other state administrators of abandoned or unclaimed property programs in nationwide amnesty programs. For purposes of this section, amnesty programs are programs in which potential holders of unclaimed property are granted waivers of interest and civil penalties if they voluntarily begin to comply with the reporting requirements of the state&rsquo;s unclaimed property laws.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 30, emerg. eff. April 24, 1967. Amended by Laws 1982, c. 278, &sect; 9, eff. Jan. 1, 1983; Laws 1989, c. 244, &sect; 1, eff. Nov. 1, 1989; Laws 1991, c. 331, &sect; 37, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 29, eff. July 1, 1999; Laws 2000, c. 136, &sect; 7, eff. July 1, 2000; Laws 2004, c. 318, &sect; 9, eff. July 1, 2004.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-681. Promulgation of rules &ndash; Continuation of rules in effect.&nbsp;</span></p> <p><span class="cls0">The State Treasurer may promulgate necessary rules to carry out the provisions of the Uniform Unclaimed Property Act. Promulgation of any rules shall be in accordance with the Administrative Procedures Act. Any administrative rules of the Oklahoma Tax Commission which are in effect on the date the responsibilities of the Uniform Unclaimed Property Act are transferred to the State Treasurer pursuant to the provisions of subsection D of Section 1 of this act. All powers and duties of the Oklahoma Tax Commission or references to the Oklahoma Tax Commission within such rules shall be deemed to be powers and duties of the State Treasurer or references to the State Treasurer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 31, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 38, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 30, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60682. Effect of foreign laws.&nbsp;</span></p> <p><span class="cls0">This act does not apply to any property held, due and owing in a foreign country and arising out of a foreign transaction.&nbsp;</span></p> <p><span class="cls0">Laws 1967, c. 107, &sect; 32, emerg. eff. April 24, 1967; Laws 1991, c. 331, &sect; 39, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-683. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-683.1. Exchange of information with other states - Reports &ndash; Continuation of agreements - Joint enforcement of act.&nbsp;</span></p> <p><span class="cls0">A. The State Treasurer may enter into agreements with other states to exchange information needed to enable this or another state to audit or otherwise determine unclaimed personal property that it or another state may be entitled to subject to a claim of custody. The State Treasurer by rule may require the reporting of information needed to enable compliance with agreements made under this section and prescribe the form. Any agreements entered into by the Oklahoma Tax Commission which are in effect on the date the responsibilities of the Uniform Unclaimed Property Act are transferred to the State Treasurer shall be effective agreements of the State Treasurer until such time as the State Treasurer chooses to amend, repeal or modify them. All powers and duties of the Oklahoma Tax Commission or references to the Oklahoma Tax Commission within such rules shall be deemed to be powers and duties of the State Treasurer or references to the State Treasurer.&nbsp;</span></p> <p><span class="cls0">B. To avoid conflicts between the procedures in effect in this state and the procedures in other jurisdictions that enact the Uniform Unclaimed Property Act, the State Treasurer, so far as it is consistent with the purposes, policies, and provisions of the Uniform Unclaimed Property Act, before promulgating, amending, or repealing rules, shall advise and consult with administrators in other jurisdictions that enact substantially the Uniform Unclaimed Property Act and take into consideration the rules of administrators in other jurisdictions that enact the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer may join with other states to seek enforcement of the Uniform Unclaimed Property Act against any person who is or may be holding property reportable under the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">D. At the request of another state, the Attorney General of this state may bring an action in the name of the other state in any court of competent jurisdiction to enforce the unclaimed property laws of the other state against a holder in this state of property subject to escheat or a claim of abandonment by the other state, if the other state has agreed to pay expenses incurred by the Attorney General in bringing the action.&nbsp;</span></p> <p><span class="cls0">E. The State Treasurer may request that the Attorney General of another state or any other person bring an action to enforce the Uniform Unclaimed Property Act in the other state. This state shall pay all expenses including attorney fees in an action under this subsection. The State Treasurer may agree to pay the person bringing the action attorney fees based in whole or in part on a percentage of the value of property recovered in the action. Any expenses paid pursuant to this subsection may not be deducted from the amount that is subject to a claim by the owner under the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 40, eff. Sept. 1, 1991. Amended by Laws 1999, c. 10, &sect; 31, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-683.2. Application and effect of act.&nbsp;</span></p> <p><span class="cls0">(a) This act does not relieve a holder of a duty that arose before the effective date of this act to report, pay, or deliver property. A holder who did not comply with the law in effect before the effective date of this act is subject to the applicable enforcement and penalty provisions that then existed and they are continued in effect for the purpose of this subsection, subject to subsection (b) of Section 666 of this title.&nbsp;</span></p> <p><span class="cls0">(b) The initial report filed under this act for property that was not required to be reported before the effective date of this act but which is subject to this act must include all items of property that would have been presumed abandoned during the ten-year period preceding the effective date of this act as if this act had been in effect during that period.&nbsp;</span></p> <p><span class="cls0">(c) Museums shall not be subject to the provisions of the Uniform Unclaimed Property Act, but a museum may avail itself of the provisions of this act by complying with the requirements of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 41, eff. Sept. 1, 1991. Amended by Laws 1992, c. 404, &sect; 2, emerg. eff. June 11, 1992.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-684. Repealed by Laws 1991, c. 331, &sect; 64, eff. Sept. 1, 1991.&nbsp;</span></p> <p><span class="cls0">&sect;60-684.1. Recovery of property by another state.&nbsp;</span></p> <p><span class="cls0">A. At any time after personal property has been paid or delivered to the State Treasurer under the Uniform Unclaimed Property Act, another state may recover the property if:&nbsp;</span></p> <p><span class="cls0">1. The property was subjected to custody by this state because the records of the holder did not reflect the last-known address of the apparent owner when the property was presumed abandoned under the Uniform Unclaimed Property Act, and the other state establishes that the last-known address of the apparent owner or other person entitled to the property was in that state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;&nbsp;</span></p> <p><span class="cls0">2. The last-known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder, is in the other state and under the laws of that state the property has escheated to or become subject to a claim of abandonment by that state;&nbsp;</span></p> <p><span class="cls0">3. The records of the holder were erroneous in that they did not accurately reflect the actual owner of the property and the last-known address of the actual owner is in the other state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;&nbsp;</span></p> <p><span class="cls0">4. The property was subjected to custody by this state under subsection (f) of Section 659 of this title and under the laws of the state of domicile of the holder the property has escheated to or become subject to a claim of abandonment by that state; or&nbsp;</span></p> <p><span class="cls0">5. The property is the sum payable on a travelers check, money order, or other similar instrument that was subjected to custody by this state under Section 651.2 of this title, and the instrument was purchased in the other state, and under the laws of that state the property escheated to or became subject to a claim of abandonment by that state.&nbsp;</span></p> <p><span class="cls0">B. The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the State Treasurer, which shall decide the claim within ninety (90) days after it is presented. The State Treasurer shall allow the claim if the State Treasurer determines that the other state is entitled to the abandoned property under subsection A of this section.&nbsp;</span></p> <p><span class="cls0">C. The State Treasurer shall require a state, before recovering property under this section, to agree to indemnify this state and its officers and employees against liability on a claim for the property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 42, eff. Sept. 1, 1991. Amended by Laws 1999, c. 10, &sect; 32, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-685.1. Application and construction of act.&nbsp;</span></p> <p><span class="cls0">The Uniform Unclaimed Property Act (1981) shall be applied and construed so as to effectuate its general purpose to make uniform the law with respect to unclaimed property among states enacting it.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1991, c. 331, &sect; 43, eff. Sept. 1, 1991.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-686. Citation.&nbsp;</span></p> <p><span class="cls0">Section 651 et seq. of this title may be cited as the Uniform Unclaimed Property Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1967, c. 107, &sect; 36, emerg. eff. April 24, 1967. Amended by Laws 1991, c. 331, &sect; 44, eff. Sept. 1, 1991; Laws 1999, c. 10, &sect; 33, eff. July 1, 1999.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-688. Duties relating to administration &ndash; Transfer from Tax Commission to State Treasurer &ndash; Transfer of administrative rules.&nbsp;</span></p> <p><span class="cls0">A. Effective July 1, 1999, all duties relating to administration of the Uniform Unclaimed Property Act shall be transferred from the Oklahoma Tax Commission to the State Treasurer. Funds sufficient to administer the Uniform Unclaimed Property Act shall be appropriated to the State Treasurer for fiscal year 2000. All funds related to the Uniform Unclaimed Property Act shall be transferred to the control of the State Treasurer on July 1, 1999. Provided, fiscal year 2000 shall be a transitional year in which the State Treasurer shall gradually assume complete administration and management over the program and staff currently carrying out the administration of the Uniform Unclaimed Property Act. The State Treasurer and the Tax Commission shall enter into a contract whereby funds shall be paid to the Tax Commission by the State Treasurer throughout fiscal year 2000 in exchange for the Tax Commission&rsquo;s agreement to continue to operate the program. During this transition year, the employees assigned to the Unclaimed Property Division shall continue to be employees of the Tax Commission without loss of classified status. Effective July 1, 2000, the Unclaimed Property Division shall be administered by the Office of the State Treasurer. Prior to July 1, 2000, the State Treasurer shall identify initial staffing needs for the Unclaimed Property Division. The State Treasurer shall give due consideration for employment to any employee of the Tax Commission who desires to remain employed in the Unclaimed Property Division after July 1, 2000. The State Treasurer shall have complete discretion in selecting staff to perform those duties effective July 1, 2000. Employees of the Tax Commission who are selected and employed by the State Treasurer to perform duties associated with the Uniform Unclaimed Property Act, or other duties, shall not retain their classified status. The Tax Commission shall make every effort to retain any classified employee in the Unclaimed Property Division in other comparable classified positions at the Tax Commission if the employee is not offered employment with the State Treasurer.&nbsp;</span></p> <p><span class="cls0">B. Notwithstanding the provisions of subsection A of this section, nothing shall preclude the State Treasurer from entering into cooperative arrangements with other state agencies, including the Tax Commission, to provide services relating to the administration of the Uniform Unclaimed Property Act after July 1, 2000.&nbsp;</span></p> <p><span class="cls0">C. The Tax Commission shall not use any information or evidence obtained in the course of examination of records of any person pursuant to the Uniform Unclaimed Property Act for purposes of investigation or enforcement of any state tax law.&nbsp;</span></p> <p><span class="cls0">D. Effective July 1, 1999, all administrative rules promulgated by the Tax Commission pursuant to the Uniform Unclaimed Property Act shall be transferred to and become a part of the administrative rules of the State Treasurer. The Office of Administrative Rules in the Secretary of State&rsquo;s office shall provide adequate notice in the Oklahoma Register of the transfer of rules, and shall place the transferred rules under the Administrative Code section of the State Treasurer. From and after July 1, 1999, any amendment, repeal or addition to the transferred rules shall be under the jurisdiction of the State Treasurer.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c. 10, &sect; 1, eff. July 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60701. Accounts presumed abandoned Escheat.&nbsp;</span></p> <p><span class="cls0">All Postal Savings System accounts created by the deposits of persons whose lastknown addresses are in this state which have not been claimed by the persons entitled thereto before May 1, 1971, are presumed to have been abandoned by their owners and are declared to escheat and become the property of this state.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 1, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60702. Request for account cards.&nbsp;</span></p> <p><span class="cls0">The Attorney General shall request from the Bureau of Accounts of the United States Treasury Department records providing the following information: the names of depositors at the post offices of this state whose accounts are unclaimed, their last addresses as shown by the records of the Post Office Department, and the balance in each account. He shall agree to return to the Bureau of Accounts promptly all account cards showing last addresses in another state.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 2, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60703. Proceedings to escheat accounts.&nbsp;</span></p> <p><span class="cls0">The Attorney General may bring proceedings in the district court of Oklahoma County to escheat unclaimed Postal Savings System accounts held by the United States Treasury Department. A single proceeding may be used to escheat as many accounts as may be available for escheat at one time.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 3, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60704. Notice to depositors.&nbsp;</span></p> <p><span class="cls0">The Attorney General shall notify depositors whose accounts are to be escheated as follows:&nbsp;</span></p> <p><span class="cls0">1. A letter advising that a Postal Savings System account in the name of the addressee is about to be escheated and setting forth the procedure by which a deposit may be claimed shall be mailed by first class mail to the named depositor at the last address shown on the account records for each account to be escheated having an unpaid principal balance of more than Twentyfive Dollars ($25.00).&nbsp;</span></p> <p><span class="cls0">2. A general notice of intention to escheat Postal Savings System accounts shall be published once in each of three (3) successive weeks in a legal newspaper of general circulation in the county in this state in which is located the last address shown on the account records for each account to be escheated having an unpaid principal balance of more than Twentyfive Dollars ($25.00). 3. A special notice of intention to escheat the unclaimed Postal Savings System accounts originally deposited in each post office must be published once in each of three (3) successive weeks in a legal newspaper of general circulation in the county in which the post office is located. This notice must list the names of the owners of each unclaimed account to be escheated having a principal balance of Three Dollars ($3.00) or more.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 4, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60-705. Collection and deposit of funds.&nbsp;</span></p> <p><span class="cls0">The Attorney General shall present a copy of each final judgment of escheat to the United States Treasury Department for payment of the principal due and the interest computed under regulations of the United States Treasury Department. The payment received shall be deposited in the General Revenue Fund in the State Treasury.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1971, c. 41, &sect; 5, emerg. eff. March 25, 1971.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60706. Indemnification.&nbsp;</span></p> <p><span class="cls0">This state shall indemnify the United States for any losses suffered as a result of the escheat of unclaimed Postal Savings System accounts. The burden of the indemnification falls upon the fund into which the proceeds of the escheated accounts have been paid.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 6, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60707. Short title.&nbsp;</span></p> <p><span class="cls0">This act may be cited as the Escheat of Postal Savings System Accounts Act.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1971, c. 41, &sect; 7, emerg. eff. March 25, 1971. &nbsp;</span></p> <p><span class="cls0">&sect;60751. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in this act, unless otherwise clearly required by the context:&nbsp;</span></p> <p><span class="cls0">1. "Beneficiary" means and includes any person entitled, but for his disclaimer, to take an interest, as grantee; as donee; under any assignment or instrument of conveyance or transfer; by succession to a disclaimed interest, other than by will, intestate succession or through the exercise or nonexercise of a testamentary power of appointment; as beneficiary of an inter vivos trust or insurance contract; pursuant to the exercise or nonexercise of a nontestamentary power of appointment; as donee of a power of appointment created by a nontestamentary instrument; or otherwise under any nontestamentary instrument;&nbsp;</span></p> <p><span class="cls0">2. "Interest" means and includes the whole of any property, real or personal, legal or equitable, or any fractional part, share or particular portion or specific assets thereof or any estate in any such property including but not limited to a joint tenancy interest in any such property, or power to appoint, consume, apply or expend property or any other right, power, privilege or immunity relating thereto; and&nbsp;</span></p> <p><span class="cls0">3. "Disclaimer" means a written instrument which declines, refuses, releases or disclaims an interest which would otherwise be succeeded to by a beneficiary, which instrument defines the nature and extent of the interest disclaimed thereby and which must be signed, witnessed and acknowledged by the disclaimant in the manner provided for deeds of real estate.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1988, c. 319, &sect; 8, eff. Nov. 1, 1988. &nbsp;</span></p> <p><span class="cls0">&sect;60-752. Right to file disclaimer - Minor incompetent or deceased beneficiaries.&nbsp;</span></p> <p><span class="cls0">A beneficiary may disclaim any interest in whole or in part, or with reference to specific parts, shares, portions or assets thereof, by filing a disclaimer in the manner hereinafter provided. A guardian, executor, administrator or other personal representative of the estate of a minor, incompetent or deceased beneficiary, if he deems it in the best interests of those interested in the estate of such beneficiary and of those who take the beneficiary's interest by virtue of the disclaimer and not detrimental to the best interests of the beneficiary, with or without an order of the probate court, may execute and file a disclaimer on behalf of the beneficiary within the time and in the manner in which the beneficiary himself could disclaim if he were living, of legal age and competent. A beneficiary likewise may execute and file a disclaimer by agent or attorney so empowered.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 2.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60753. Time for filing disclaimer.&nbsp;</span></p> <p><span class="cls0">Such disclaimer shall be filed at any time after the creation of the interest, but in all events within nine (9) months after the effective date of the nontestamentary instrument creating the interest, or, if the disclaimant is not then finally ascertained as a beneficiary or his interest has not then become indefeasibly fixed both in quality and in quantity, such disclaimer shall be filed not later than nine (9) months after the event which would cause him so to become finally ascertained and his interest to become indefeasibly fixed both in quality and quantity. With respect to a disclaimer, an interest which is a joint tenancy interest in property shall not be considered to be indefeasibly fixed both in quality and quantity until the death of all but one of the persons owning such joint tenancy interest.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1988, c. 319, &sect; 9, eff. Nov. 1, 1988. &nbsp;</span></p> <p><span class="cls0">&sect;60-754. Place of filing disclaimer - Delivery of copies - Interest in real estate.&nbsp;</span></p> <p><span class="cls0">The disclaimer defined in Section 751 of this title shall be effective upon being filed on the miscellaneous docket in the office of the county clerk of any county of the State of Oklahoma in which the district court would have jurisdiction and venue of the matter. A copy of the disclaimer shall be delivered or mailed to the trustee of any trust in which the interest disclaimed exists or to any other person who has legal title to, or possession of, the property in which the interest disclaimed exists, and no such trustee or person shall be liable for any otherwise proper distribution or other disposition made without actual notice of the disclaimer. If an interest in or relating to real estate is disclaimed, the original of the disclaimer, or a copy of the disclaimer certified as true and complete by the custodian wherein the disclaimer has been filed, shall also be filed with the county clerk in the county or counties where the real estate is situated and shall constitute notice to all persons only from and after the time of the filing.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 4. Amended by Laws 2001, c. 67, &sect; 1, eff. Nov. 1, 2001.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60755. Disposition of interest disclaimed.&nbsp;</span></p> <p><span class="cls0">Unless otherwise provided in the nontestamentary instrument creating the interest with reference to the possibility of a disclaimer by the beneficiary, the interest disclaimed shall be distributed or otherwise be disposed of in the same manner as if the disclaimant had died immediately preceding the death or other event which causes him to become finally ascertained as a beneficiary and his interest to become indefeasibly fixed both in quality and quantity and, in any case, the disclaimer shall relate for all purposes to that date, whether filed before or after such death or other event. However, one disclaiming an interest in a nonresiduary gift under a trust instrument or otherwise shall not be excluded, unless his disclaimer so provides, from sharing in a gift of the residue even though, through lapse, such residue includes the assets disclaimed. If the disclaimer pertains to a joint tenancy interest in property, the interest disclaimed shall be distributed or otherwise be disposed of in the same manner as if the disclaimant had died immediately preceding the death of the other person having a joint tenancy interest in the same property whose death most closely preceded the effective date of the disclaimer or, if no person having a joint tenancy interest has died, then as if the disclaimant never owned the joint tenancy interest which was disclaimed.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1988, c. 319, &sect; 10, eff. Nov. 1, 1988. &nbsp;</span></p> <p><span class="cls0">&sect;60-756. Uniform Fraudulent Conveyances Act not abrogated - Bar on right to disclaim in certain cases.&nbsp;</span></p> <p><span class="cls0">Nothing included in this act shall be deemed to amend, repeal or abrogate in any manner Title 24 O. S. 1971, Sections 101 through 111, inclusive. Any voluntary assignment or transfer of, or contract to assign or transfer, an interest in real or personal property, or written waiver of the right to disclaim the succession to an interest in real or personal property, by any beneficiary, or any sale or other disposition of an interest in real or personal property pursuant to judicial process, made before he has disclaimed, as herein provided, bars the right otherwise hereby conferred on such beneficiary to disclaim as to such interest.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 6.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-757. Spendthrift provisions - Binding effect of disclaimer - Spouse of disclaimant.&nbsp;</span></p> <p><span class="cls0">The right to disclaim granted by this act shall exist irrespective of any limitation imposed on the interest of the disclaimant in the nature of an express or implied spendthrift provision or similar restriction. A disclaimer, when filed as provided in this act, or a written waiver of the right to disclaim, shall be binding upon the disclaimant or beneficiary so waiving and all parties thereafter claiming by, through or under him, except that a beneficiary so waiving may thereafter transfer, assign or release his interest if such is not prohibited by an express or implied spendthrift provision. If an interest in real estate is disclaimed and the disclaimer is duly filed in accordance with the provisions of Section 4 of this act, the spouse of the disclaimant, if such spouse has consented to the disclaimer in writing, shall thereupon be automatically debarred from any claim, right or interest in such real estate to which such spouse, except for such disclaimer, would have been entitled.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 7.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-758. Other rights not abridged.&nbsp;</span></p> <p><span class="cls0">This act shall not abridge the right of any person, apart from this act, under any existing or future statute or rule of law, to disclaim any interest or to assign, convey, release, renounce or otherwise dispose of any interest.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 8.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-759. Interests not fixed or finally ascertained - Right to disclaim.&nbsp;</span></p> <p><span class="cls0">Any interest which exists on the effective date of this act but which has not then become indefeasibly fixed both in quality and quantity, or the taker of which has not then become finally ascertained, may be thereafter disclaimed in the manner provided herein.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 159, &sect; 9.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-801. Short title.&nbsp;</span></p> <p><span class="cls0">This act shall be known as the Oklahoma Airspace Act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 1, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-802. Airspace defined - Provisions pertaining to aviation not affected.&nbsp;</span></p> <p><span class="cls0">For purposes of this act, airspace is defined as that space which extends from the surface of the earth upward and which is either occupied or subject to being occupied for the reasonable enjoyment and use of the land surface and any structures thereon by the surface owner or owners, his or their heirs, successors or assigns. The airspace owned by a surface owner or owners is that which lies within the vertical upward extension of his or their surface boundaries. Airspace as defined herein shall in no way be deemed to contravene, supersede, amend, modify or alter the existing powers, requirements, limitations or other provisions of statutory or common law pertaining to aviation, air transportation, air commerce, or air operations.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 2, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-803. Airspace as real property.&nbsp;</span></p> <p><span class="cls0">Airspace as defined herein is real property, and until title thereto or rights, interests or estates therein are separately transferred, airspace is the property of the person or persons holding title to the land surface beneath it, subject to the limitations relating to wind or solar energy agreements provided in Section 1 of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 3, eff. Oct. 1, 1973. Amended by Laws 2010, c. 334, &sect; 2, eff. July 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-804. Airspace subject to same statutes, rules of law and common law as other real property.&nbsp;</span></p> <p><span class="cls0">A. It is the purpose of this act that airspace shall be subject to being acquired, held, enjoyed, possessed, alienated, granted, sold, conveyed, exchanged, transferred, partitioned, assigned, demised, leased, released, charged, mortgaged, encumbered, assessed, devised, condemned, vacated, zoned, platted, divided, subdivided, and otherwise utilized and manipulated in the same manner, upon the same conditions and for the same uses and purposes as other real property; and airspace shall be subject to the same statutes, rules of law, and common law as other real property.&nbsp;</span></p> <p><span class="cls0">B. All of the rights, privileges, immunities, incidents, powers, remedies, burdens, servitudes, duties, liabilities, limitations and restrictions which apply to titles, estates, rights and interests in other real property shall apply to airspace.&nbsp;</span></p> <p><span class="cls0">C. No power set forth herein, however, shall alter, amend, supersede, hinder, contravene, prevent or affect the exercise of the rights, privileges and immunities otherwise granted by statutory or common law to individuals, partnerships, corporations, business associations or governmental bodies engaged in aviation, air transportation, air commerce, air operations, or to public service corporations.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 4, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-805. Titles, estates, rights and interests as pertaining to airspace.&nbsp;</span></p> <p><span class="cls0">Subject to the limitations relating to wind or solar energy agreements provided in Section 1 of this act, all forms of titles, estates, rights and interests which may presently exist or which may hereafter be created by law or equity or under statutes pertaining to real property may be legally created, transferred and conveyed in airspace, whether or not such airspace is contiguous to the surface of the earth; and the same shall constitute titles, estates, rights and interests in real property under and subject to the laws pertaining thereto.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 5, eff. Oct. 1, 1973. Amended by Laws 2010, c. 334, &sect; 3, eff. July 1, 2010.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-806. State, governmental units, individuals, corporations, etc. as possessing same powers and duties with respect to airspace as to other property.&nbsp;</span></p> <p><span class="cls0">A. The state and all of its departments, commissions, agencies, instrumentalities, divisions, subdivisions and authorities, including all counties, municipal corporations and governmental units of any kind, shall have the same powers, rights and duties with respect to airspace as are possessed with respect to other real property.&nbsp;</span></p> <p><span class="cls0">B. All private individuals, partnerships, corporations, foundations, trustees, fiduciaries, and all other private persons whatever their legal status, shall have the same powers, rights and duties with respect to airspace as are possessed with respect to other real property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 6, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-807. Division of airspace.&nbsp;</span></p> <p><span class="cls0">Airspace may be divided or apportioned horizontally and vertically, and in any geometric shape or design, in the exercise of any of the powers, rights or duties by public bodies or private persons under this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 7, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-808. Right, title, and interest to pass at death of owner.&nbsp;</span></p> <p><span class="cls0">The right, title, interest and estate of a decedent in and to airspace shall pass at his death by testamentary disposition, or in the event of intestacy, shall pass in the same manner as provided by the laws of this state for the descent of other real property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 8, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-809. Taxation.&nbsp;</span></p> <p><span class="cls0">All titles, estates, rights and interests in airspace are subject to taxation to the same extent and in the same manner as other real property is taxed; and for the purpose of taxation, titles, estates, rights and interests in airspace held by persons other than by the owner or owners of the land surface shall be taxed separately from the land surface and from other separately owned airspace, and the owner or owners of the land surface shall not be taxed for airspace which is not owned, nor to the extent that his or their rights therein have been diminished. Nothing contained in this section shall be construed to authorize taxation of unimproved or undeveloped airspace either by adding to the assessed valuation of the surface or by taxation on said unimproved or undeveloped airspace itself. This act shall not apply to aviation, air or space travel.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 9, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-810. Powers of state over highways, streets, bridges, etc. not extended so as to cause violations.&nbsp;</span></p> <p><span class="cls0">The powers granted under this act shall in no way extend the power of state and local authorities having jurisdiction over highways, roads, streets, alleys, bridges or rights-of-way to the point that (a) federal regulations pertaining to federal aid rights-of-way are violated, (b) constitutional limits on the power of such authorities are exceeded, or (c) the right of the public to full and unobstructed use of highways, roads, streets, alleys, bridges and rights-of-way is impaired.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 10, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-811. Joint development use plans.&nbsp;</span></p> <p><span class="cls0">A. The state and any of its political subdivisions, port authorities and turnpike authorities may join, cooperate and contract with other agencies or instrumentalities of federal, state or local governments, or with private persons, corporations, partnerships, business associations, fiduciaries or personal representatives in and for the acquisition, condemnation, purchase, lease, sale, assignment, mortgage or use of title, rights, interests and estates in airspace. This power shall include, but shall not be limited to, the joint development and multiple use of rights-of-way and adjoining property or airspace. In furtherance of such functions, the aforementioned entities and authorities shall have the following powers:&nbsp;</span></p> <p><span class="cls0">1. To do all things necessary to develop and effectuate a joint development and multiple use plan for an area which is to be developed, including the coordination of such plan and cooperation with all other affected agencies of federal, state or local governments; to collect and distribute informational material pertaining thereto; to cooperate and coordinate activities and functions with interested or affected private persons, corporations, partnerships, business associations, fiduciaries, personal representatives or groups; to employ consultants, planners and professional or advisory personnel or services; to contract with federal, state, regional or local authorities or agencies, or with private persons, corporations, partnerships, business associations or other such organizations or associations for the preparation of transportation and land use studies; and to contract for services, labor, supplies, equipment or other items with governmental authorities or private persons, corporations, partnerships, business associations, fiduciaries, personal representatives or other persons as may be necessary to effectuate the joint development and multiple use plan;&nbsp;</span></p> <p><span class="cls0">2. To apply for, accept, receive, spend and account for such funds, grants, loans, gifts and services from federal, state, regional or local governments or their instrumentalities or from private persons or from other sources as may be needed to develop and effectuate the joint development and multiple use plan; and to provide and agree to such reasonable conditions and requirements as may be necessary in connection therewith; and&nbsp;</span></p> <p><span class="cls0">3. To perform such other acts and enter into such contracts or execute such other legal documents as may be necessary or appropriate to develop, effectuate or execute the joint development and multiple use plan.&nbsp;</span></p> <p><span class="cls0">B. The state and any of its political subdivisions, port authorities and turnpike authorities may join with any other federal, state, regional or local governmental authority in the condemnation through exercise of the power of eminent domain of land or airspace in excess of that necessary for the highway, road or street right-of-way, whenever such excess condemnation is necessary and appropriate to effectuate a joint development and multiple use plan.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 11, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-812. Sale of unneeded airspace or real property.&nbsp;</span></p> <p><span class="cls0">Any governmental authority, agency or instrumentality which holds right, title, interest or estate in airspace or in other real property which is not needed for a public purpose or for public use may sell, convey or transfer the right, title, interest or estate owned by it, or any lesser right, title, interest or estate, to such persons as the laws of this state permit at public or private sale for not less than seventy-five percent (75%) of the appraised value thereof, as established by two or more disinterested, qualified appraisers. Along with transfers of unneeded airspace or real property, or right, title, interest or estate therein, the transferor may also grant or transfer easements or other rights and interests in retained airspace and real property which may be required to provide access to or support of structures erected in the transferred airspace or property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 12, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-813. Governmental authority holding only easements for use as rights-of-way.&nbsp;</span></p> <p><span class="cls0">In situations in which a governmental authority or agency holds only an easement for use as a right-of-way over land on which is constructed a highway, street, road, alley or bridge:&nbsp;</span></p> <p><span class="cls0">1. The governmental authority or agency shall possess for and on behalf of the public the right to use such easement for highway, street, road, alley or bridge purposes with full, free and unobstructed passage over such improvement as well as the right to construct, maintain, repair, alter and remove such improvement, subject to all other laws pertaining thereto; and&nbsp;</span></p> <p><span class="cls0">2. In addition thereto, the governmental authority and agency shall possess for and on behalf of the public the right to make full use of the airspace over, under or upon said right-of-way, provided that the residual right, title, interest and estate of the owner or owners of the fee in and to the land on which said improvement exists shall not in any way be encumbered, limited or additionally burdened without just compensation being paid to such owner or owners and with the determination of such just compensation to be made in the manner provided by law for additional takings under the power of eminent domain.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 13, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-814. Right of eminent domain.&nbsp;</span></p> <p><span class="cls0">This act shall not alter, amend, repeal, modify or affect the laws of this state providing for the exercise of the power of eminent domain by public or quasi-public agencies, authorities and instrumentalities or by private persons, except as may be specifically provided herein and except that the power of eminent domain may be exercised to condemn and acquire airspace in the same manner as provided by law for the acquisition of other real property or for rights or interests in same. The procedure and rules provided by law for condemnation of real property by public or quasi-public agencies, authorities and instrumentalities and by private persons shall apply to the condemnation of airspace. Whenever more than one procedure for condemnation is provided by law and whenever there is doubt as to which procedure applies in a particular condemnation proceeding, the condemnation procedure applicable to the State Highway Commission or agency shall be followed.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 14, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-815. Laws pertaining to powers, privileges, immunities, duties and liabilities of agencies not affected.&nbsp;</span></p> <p><span class="cls0">Except as specifically provided herein, this act shall not alter, amend, repeal, modify or affect the laws of this state which pertain to the powers, privileges, immunities, duties and liabilities of authorities, agencies, instrumentalities or other such divisions or departments of state and local governments, or to improvement districts or to private persons.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1973, c. 199, &sect; 15, eff. Oct. 1, 1973.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-820.1. Airspace Severance Restriction Act.&nbsp;</span></p> <p><span class="cls0">A. This act shall be known and may be cited as the &ldquo;Airspace Severance Restriction Act&rdquo;.&nbsp;</span></p> <p><span class="cls0">B. It is the intent of this act to restrict the permanent severing of the airspace over any real property located in this state for the purpose of developing and operating commercial wind or solar energy conversion systems. Leasing arrangements for development of wind or solar energy conversion systems may be made only with the legally authorized owner of the surface estate pursuant to the provisions and restrictions provided by this act or otherwise provided by law. The provisions of this act shall not apply to any property owner utilizing wind or solar energy conversion systems for domestic use only.&nbsp;</span></p> <p><span class="cls0">C. For the purposes of this act a &ldquo;wind or solar energy agreement&rdquo; means a lease agreement, whether or not stated in the form of a restriction, covenant, or condition, in any deed, wind or solar easement, wind or solar option or lease securing land for the study or production of wind or solar-generated energy, or any other instrument executed by or on behalf of any owner of land or airspace for the purpose of allowing another party to study the potential for, or to develop, a wind or solar energy conversion system on the land or in the airspace. A wind or solar energy agreement shall in no way be deemed to contravene, supersede, amend, modify or alter the existing powers, requirements, limitations or other provisions of statutory or common law pertaining to aviation, air transportation, air commerce or air operations.&nbsp;</span></p> <p><span class="cls0">D. A wind or solar energy agreement shall run with the land benefitted and burdened and shall terminate upon the conditions stated in the wind or solar agreement.&nbsp;</span></p> <p><span class="cls0">E. An instrument entered into subsequent to July 1, 2010, that creates a land right or an option to secure a land right in real property or the vertical space above real property for a solar energy system, for a wind or solar energy conversion system, or for wind measurement equipment, shall be created in writing, and the instrument, or related memorandum of easement, or an abstract, shall be filed, duly recorded, and indexed in the office of the county clerk in the county in which the real property subject to the instrument is located. The instrument, but not the related memorandum of easement or abstract, shall include but not be limited to:&nbsp;</span></p> <p><span class="cls0">1. The names of the parties;&nbsp;</span></p> <p><span class="cls0">2. A legal description of the real property involved;&nbsp;</span></p> <p><span class="cls0">3. The nature of the interest created;&nbsp;</span></p> <p><span class="cls0">4. The consideration paid for the transfer;&nbsp;</span></p> <p><span class="cls0">5. A description of the improvements the developer intends to make on the real property, including, but not limited to, roads, transmission lines, substations, wind turbines and meteorological towers;&nbsp;</span></p> <p><span class="cls0">6. A description of any decommissioning security as defined in subsection B of this section, or other requirements related to decommissioning; and&nbsp;</span></p> <p><span class="cls0">7. The terms or conditions, if any, under which the interest may be revised or terminated.&nbsp;</span></p> <p><span class="cls0">F. No interest in any resource located on a tract of land and solely associated with the production or potential production of wind or solar-generated energy on the tract of land may be severed from the surface estate except that such rights may be leased for a definite term pursuant to the provisions of this act.&nbsp;</span></p> <p><span class="cls0">G. The provisions of this act shall not affect any agreements or contracts entered into pursuant to the provisions of the Oklahoma Airspace Act, Section 801 et seq. of this title.&nbsp;</span></p> <p><span class="cls0">Added by Laws 2010, c. 334, &sect; 1, eff. July 1, 2010. Amended by Laws 2011, c. 50, &sect; 1, emerg. eff. April 13, 2011.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60-831. Short title.&nbsp;</span></p> <p><span class="cls0">This act shall be known and may be cited as the "Residential Property Condition Disclosure Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 1, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-832. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in this act:&nbsp;</span></p> <p><span class="cls0">1. "Offer to purchase" means an offer to purchase property made by a purchaser pursuant to a written contract;&nbsp;</span></p> <p><span class="cls0">2. "Seller" means one or more persons who are attempting to transfer a possessory interest in property and who are either:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;represented by a real estate licensee; or&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;not represented by a real estate licensee but receive a written request from the purchaser to deliver or cause to be delivered a disclaimer statement or disclosure statement as such terms are defined in paragraphs 11 and 12 of this section;&nbsp;</span></p> <p><span class="cls0">3. "Purchaser" means one or more persons who are attempting to acquire a possessory interest in property;&nbsp;</span></p> <p><span class="cls0">4. "Real estate licensee" means a person licensed under the Oklahoma Real Estate License Code;&nbsp;</span></p> <p><span class="cls0">5. "Transfer" means a sale or conveyance, exchange or option to purchase by written instrument of a possessory interest in property for consideration;&nbsp;</span></p> <p><span class="cls0">6. "Person" means an individual, corporation, limited liability company, partnership, association, trust or other legal entity or any combination thereof;&nbsp;</span></p> <p><span class="cls0">7. "Contract" means a real estate purchase contract for the sale, conveyance or exchange of property, option to purchase property, or a lease with an option to purchase property;&nbsp;</span></p> <p><span class="cls0">8. "Property" means residential real property improved with not less than one nor more than two dwelling units;&nbsp;</span></p> <p><span class="cls0">9. "Defect" means a condition, malfunction or problem that would have a materially adverse effect on the monetary value of the property, or that would impair the health or safety of future occupants of the property;&nbsp;</span></p> <p><span class="cls0">10. "Disclosure" means a written declaration required by this act based on actual knowledge of the seller regarding certain physical conditions of the property. A disclosure for purposes of this act is not a warranty, implied or express, of any kind;&nbsp;</span></p> <p><span class="cls0">11. "Disclaimer statement" means the statement described in paragraph 1 of subsection A of Section 3 of this act; and&nbsp;</span></p> <p><span class="cls0">12. "Disclosure statement" means the statement described in paragraph 2 of subsection A of Section 3 of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 2, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-833. Disclaimer and disclosure statements.&nbsp;</span></p> <p><span class="cls0">A. A seller of property located in this state shall deliver, or cause to be delivered, to the purchaser of such property one of the following:&nbsp;</span></p> <p><span class="cls0">1. A written property disclaimer statement on a form established by rule by the Oklahoma Real Estate Commission which states that the seller:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;has never occupied the property and makes no disclosures concerning the condition of the property, and&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;has no actual knowledge of any defect; or&nbsp;</span></p> <p><span class="cls0">2. A written property condition disclosure statement on a form established by rule by the Oklahoma Real Estate Commission which shall include the information set forth in subsection B of this section.&nbsp;</span></p> <p><span class="cls0">B. 1. The disclosure statement shall include an identification of items and improvements which are included in the sale of the property and whether such items or improvements are in normal working order. The disclosures required shall also include a statement of whether the seller has actual knowledge of defects or information in relation to the following:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;water and sewer systems, including the source of household water, water treatment systems, sprinkler systems, occurrence of water in the heating and air conditioning ducts, water seepage or leakage, drainage or grading problems and flood zone status,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;structural systems, including the roof, walls, floors, foundation and any basement,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;plumbing, electrical, heating and air conditioning systems,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;infestation or damage of wood-destroying organisms,&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;major fire or tornado damage,&nbsp;</span></p> <p class="cls3"><span class="cls0">f.&nbsp;&nbsp;land use matters,&nbsp;</span></p> <p class="cls3"><span class="cls0">g.&nbsp;&nbsp;existence of hazardous or regulated materials and other conditions having an environmental impact,&nbsp;</span></p> <p class="cls3"><span class="cls0">h.&nbsp;&nbsp;existence of prior manufacturing of methamphetamine,&nbsp;</span></p> <p class="cls3"><span class="cls0">i.&nbsp;&nbsp;any other defects known to the seller, and&nbsp;</span></p> <p class="cls3"><span class="cls0">j.&nbsp;&nbsp;other matters the Oklahoma Real Estate Commission deems appropriate.&nbsp;</span></p> <p><span class="cls0">2. The disclosure statement shall include the following notices to the purchaser in bold and conspicuous type:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;"The information and statements contained in this disclosure statement are declarations and representations of the seller and are not the representations of the real estate licensee.",&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;"The information contained in this disclosure statement is not intended to be a part of any contract between the purchaser and the seller.", and&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;"The declarations and information contained in this disclosure statement are not warranties, express or implied of any kind, and are not a substitute for any inspections or warranties the purchaser may wish to obtain."&nbsp;</span></p> <p><span class="cls0">C. Either the disclaimer statement or the disclosure statement required by this section must be completed, signed and dated by the seller. The date of completion on either statement may not be more than one hundred eighty (180) days prior to the date of receipt of the statement by the purchaser.&nbsp;</span></p> <p><span class="cls0">D. The Oklahoma Real Estate Commission shall develop by rule the forms for the residential property condition disclaimer and the residential property condition disclosure statement. After development of the initial forms, the Oklahoma Real Estate Commission may amend by rule the forms as is necessary and appropriate.&nbsp;</span></p> <p><span class="cls0">Such forms shall be made available upon request irrespective of whether the person requesting a disclaimer or disclosure form is represented by a real estate licensee.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 3, eff. July 1, 1995. Amended by Laws 2003, c. 52, &sect; 1, eff. Nov. 1, 2003.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-834. Delivery of statements.&nbsp;</span></p> <p><span class="cls0">A. A seller should deliver either the disclaimer statement or disclosure statement to the purchaser as soon as practicable, but in any event it shall be delivered before acceptance of an offer to purchase.&nbsp;</span></p> <p><span class="cls0">B. If the disclaimer statement or disclosure statement is delivered to the purchaser after an offer to purchase has been made, the offer to purchase shall be accepted only after the purchaser has acknowledged receipt of the disclaimer statement or disclosure statement and confirmed the offer to purchase.&nbsp;</span></p> <p><span class="cls0">C. If the seller becomes aware of a defect after delivery to the purchaser of either a disclaimer statement or a disclosure statement, then the seller shall promptly deliver to the purchaser either a disclosure statement or an amended disclosure statement which discloses the newly discovered defect. The disclosure statement or any amendment shall be in writing and shall be signed and dated by the seller. However, if the required document is delivered to the purchaser after an offer to purchase has been made, the offer to purchase shall be accepted only after the purchaser has acknowledged receipt of the required document and confirmed the offer to purchase.&nbsp;</span></p> <p><span class="cls0">D. The purchaser shall acknowledge in writing receipt of the disclaimer statement or the disclosure statement and any amendment to the disclosure statement. The purchaser shall sign and date any acknowledgment. Such acknowledgment should accompany the offer to purchase the property. If the purchaser confirms the offer to purchase, such confirmation shall be in writing, shall be signed and dated by the purchaser and shall be promptly delivered to the seller.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 4, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-835. Limitation of seller's liability.&nbsp;</span></p> <p><span class="cls0">A. The seller shall not be liable for a defect or other condition in the property if the existence of the defect or other condition in the property was disclosed in the disclosure statement or any amendment delivered to the purchaser before acceptance of the offer to purchase.&nbsp;</span></p> <p><span class="cls0">B. The seller shall not be liable for any erroneous, inaccurate or omitted information supplied to the purchaser as a disclosure required by this act if:&nbsp;</span></p> <p><span class="cls0">1. The error, inaccuracy or omission results from an approximation of information by the seller, provided:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;accurate information was unknown to the seller at the time the disclosure was made,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;the approximation was clearly identified as such and was reasonable and based on the best information available to the seller, and&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;the approximation was not used to circumvent the disclosure requirements of this act;&nbsp;</span></p> <p><span class="cls0">2. The error, inaccuracy or omission was not within the actual knowledge of the seller; or&nbsp;</span></p> <p><span class="cls0">3. The disclosure was based on information provided by public agencies and the seller reasonably believed the information to be correct.&nbsp;</span></p> <p><span class="cls0">C. The delivery by a public agency of any information required to be disclosed by the seller of the property shall satisfy the requirements of this act as to the disclosures to which the information being furnished is applicable.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 5, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-836. Duties of real estate licensee.&nbsp;</span></p> <p><span class="cls0">A. A real estate licensee representing or assisting a seller has the duty to obtain from the seller a disclaimer statement or a disclosure statement and any amendment required by the Residential Property Condition Disclosure Act and to make such statement available to potential purchasers prior to acceptance of an offer to purchase.&nbsp;</span></p> <p><span class="cls0">B. A real estate licensee representing or assisting a purchaser has the duty to obtain and make available to the purchaser a disclaimer statement or a disclosure statement and any amendment required by the Residential Property Condition Disclosure Act prior to the acceptance of an offer to purchase.&nbsp;</span></p> <p><span class="cls0">C. A real estate licensee has the duty to disclose to the purchaser any defects in the property actually known to the licensee which are not included in the disclosure statement or any amendment.&nbsp;</span></p> <p><span class="cls0">D. A real estate licensee who has complied with the requirements of subsections A, B and C of this section, as applicable, shall have no further duties to the seller or the purchaser regarding any disclosures required under the Residential Property Condition Disclosure Act.&nbsp;</span></p> <p><span class="cls0">A real estate licensee who has not complied with the requirements of subsections A, B and C of this section shall be subject to disciplinary action by the Oklahoma Real Estate Commission as set forth in paragraph 6 of Section 858-208 of Title 59 of the Oklahoma Statutes.&nbsp;</span></p> <p><span class="cls0">E. A real estate licensee has no duty to the seller or the purchaser to conduct an independent inspection of the property and has no duty to independently verify the accuracy or completeness of any statement made by the seller in the disclaimer statement or the disclosure statement and any amendment.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 6, eff. July 1, 1995. Amended by Laws 2007, c. 42, &sect; 6, eff. Jan. 1, 2008.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-837. Remedies.&nbsp;</span></p> <p><span class="cls0">A. The purchaser may recover in a civil action only in the event of any of the following:&nbsp;</span></p> <p><span class="cls0">1. The failure of the seller to provide to the purchaser a disclaimer statement or a disclosure statement and any amendment prior to acceptance of an offer to purchase;&nbsp;</span></p> <p><span class="cls0">2. The failure of the seller to disclose in the disclosure statement or any amendment provided to the purchaser a defect which was actually known to the seller prior to acceptance of an offer to purchase; or&nbsp;</span></p> <p><span class="cls0">3. The failure of the real estate licensee to disclose to the purchaser any defects in the property actually known to the real estate licensee prior to acceptance of an offer to purchase and which were not included in the disclosure statement or any amendment provided to the purchaser.&nbsp;</span></p> <p><span class="cls0">B. The sole and exclusive civil remedy at common law or otherwise for a failure under subsection A of this section by the seller or the real estate licensee shall be an action for actual damages, including the cost of repairing the defect, suffered by the purchaser as a result of a defect existing in the property as of the date of acceptance by the seller of an offer to purchase and shall not include the remedy of exemplary damages.&nbsp;</span></p> <p><span class="cls0">C. Any action brought under this act shall be commenced within two (2) years after the date of transfer of real property subject to this act.&nbsp;</span></p> <p><span class="cls0">D. In any civil action brought under this act, the prevailing party shall be allowed court costs and a reasonable attorney fee to be set by the court and to be collected as costs.&nbsp;</span></p> <p><span class="cls0">E. A transfer of a possessory interest in property subject to this act may not be invalidated solely because of the failure of any person to comply with this act.&nbsp;</span></p> <p><span class="cls0">F. This act applies to, regulates and determines rights, duties, obligations and remedies at common law or otherwise of the seller, the real estate licensee and the purchaser with respect to disclosure of defects in property and supplants and abrogates all common law liability, rights, duties, obligations and remedies therefore.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 7, eff. July 1, 1995. Amended by Laws 2003, c. 52, &sect; 2, eff. Nov. 1, 2003.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-838. Exemptions from application of act.&nbsp;</span></p> <p><span class="cls0">A. This act does not apply to:&nbsp;</span></p> <p><span class="cls0">1. Transfers pursuant to court order, including, but not limited to, transfers pursuant to a writ of execution, transfers by eminent domain and transfers pursuant to an order for partition;&nbsp;</span></p> <p><span class="cls0">2. Transfers to a mortgagee by a mortgagor or successor in interest who is in default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a mortgagee's sale under a power of sale after default in an obligation secured by any instrument containing a power of sale, or transfers by a mortgagee who has acquired the real property at a sale conducted pursuant to a power of sale or a sale pursuant to a decree of foreclosure or has acquired the real property by deed in lieu of foreclosure;&nbsp;</span></p> <p><span class="cls0">3. Transfers by a fiduciary who is not an owner occupant of the subject property in the course of the administration of a decedent's estate, guardianship, conservatorship or trust;&nbsp;</span></p> <p><span class="cls0">4. Transfers from one co-owner to one or more other co-owners;&nbsp;</span></p> <p><span class="cls0">5. Transfers made to a spouse, or to the person or persons in the lineal line of consanguinity of one or more of the owners;&nbsp;</span></p> <p><span class="cls0">6. Transfers between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree;&nbsp;</span></p> <p><span class="cls0">7. Transfers made pursuant to mergers and from a subsidiary to a parent or the reverse;&nbsp;</span></p> <p><span class="cls0">8. Transfers or exchanges to or from any governmental entity; or&nbsp;</span></p> <p><span class="cls0">9. Transfers of a newly constructed, previously unoccupied dwelling.&nbsp;</span></p> <p><span class="cls0">B. Nothing in this act shall be construed to alter or change the requirements of Section 858-513 of Title 59 of the Oklahoma Statutes, regarding psychologically impacted real estate.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 8, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-839. Notices and acknowledgments.&nbsp;</span></p> <p><span class="cls0">Any notices or acknowledgments required under this act need not be sworn to, verified or acknowledged.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1994, c. 198, &sect; 9, eff. July 1, 1995.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-851. Nature of developments.&nbsp;</span></p> <p><span class="cls0">The term "real estate development" shall include developments:&nbsp;</span></p> <p><span class="cls0">1. Which consist or will consist of separately owned lots, parcels or areas with either or both of the following features:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;One or more additional contiguous or noncontiguous lots, parcels or areas owned in common by the owners of the separately owned lots, parcels or areas.&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;Mutual, common or reciprocal interests in or restrictions upon, all or portions of such separately owned lots, parcels or areas, or both.&nbsp;</span></p> <p><span class="cls0">2. The estate in a separately or commonly owned lot, parcel or area may be an estate of inheritance, estate in fee, an estate for life, or an estate for years.&nbsp;</span></p> <p><span class="cls0">Either common ownership of the additional contiguous or noncontiguous lots, parcels or areas referred to in subparagraph a. of paragraph 1. above, or the enjoyment of the mutual, common or reciprocal interests in, or restrictions upon the separately owned lots, parcels or areas pursuant to subparagraph b. of paragraph 1. above, or both, may be through ownership of shares of stock or membership in an owners association or otherwise.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1975, c. 292, &sect; 1, emerg. eff. June 5, 1975.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60852. Owners association.&nbsp;</span></p> <p><span class="cls0">A. An "owners association" may be formed by the owner or owners of real estate development for the purpose of:&nbsp;</span></p> <p><span class="cls0">1. providing management, maintenance, preservation and control of commonly owned areas or any portion of or interest in them, and/or&nbsp;</span></p> <p><span class="cls0">2. enforcing all mutual, common or reciprocal interests in or restrictions upon all or portions of such separately owned lots, parcels, or areas, or both.&nbsp;</span></p> <p><span class="cls0">B. An owners association shall be formed by the execution of an instrument signed and acknowledged by all owners of the real property included. Such instrument shall set forth in detail the nature of the obligations of the members and shall be filed of record in the office of the county clerk of the county wherein the real property is located. The instrument shall include a description of said real property.&nbsp;</span></p> <p><span class="cls0">C. The owners association shall have the power to enforce any obligation in connection with membership in the owners association by means of a levy or assessment which may become a lien upon the separately or commonly owned lots, parcels or areas of defaulting owners or members, which said lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale. In an action brought to enforce any lien authorized pursuant to the provisions of this section, the prevailing party shall be entitled to recover reasonable attorney's fees to be fixed by the court, which shall be taxed as costs in the action. No lien may be placed or mortgage foreclosed unless the homeowner was informed in writing upon joining the owners association of the existence and content of the owners association restrictions and rules, and of the potential for financial liability to the individual owner by joining said owners association.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Amended by Laws 1986, c. 48, &sect; 1, eff. Nov. 1, 1986. &nbsp;</span></p> <p><span class="cls0">&sect;60-853. Taxes and special assessments.&nbsp;</span></p> <p><span class="cls0">Each separately owned lot, parcel or area together with its proportionate interest in the common element, shall constitute a separate and distinct unit; for the purpose of assessment of taxes, special assessments, and other charges which may be lawfully assessed against owners of real property, and each holder of such shall be liable solely for the amount of taxes against his individual estate and shall not be affected by the consequences resulting from the tax delinquency of other unit holders.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1975, c. 292, &sect; 3, emerg. eff. June 5, 1975.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60854. Membership Covenants and restrictions.&nbsp;</span></p> <p><span class="cls0">Membership of said owners association shall consist of recorded owners of separately owned lots in the real estate development. Membership is transferred upon legal transfer of title to the separately owned lots. The owners association may also enforce the covenant and restrictions of the real estate development when specified by the covenants and restrictions.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Laws 1975, c. 292, &sect; 4, emerg. eff. June 5, 1975. &nbsp;</span></p> <p><span class="cls0">&sect;60-855. Application of act.&nbsp;</span></p> <p><span class="cls0">The powers granted the owners association under this act shall apply only to owners associations created subsequent to the effective date of this act.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1975, c. 292, &sect; 5, emerg. eff. June 5, 1975.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">&sect;60856. Enforcement of restrictions and covenants.&nbsp;</span></p> <p><span class="cls0">Any person owning property in a real estate development shall be entitled to bring action against any other person owning property in such development to enforce any of the restrictions or covenants of the real estate development which are specified by the covenants or restrictions. In any action to enforce any restriction or covenant pursuant to the provisions of this section, the prevailing party shall be entitled to recover reasonable attorney's fees to be fixed by the court, which shall be taxed as costs in the action.&nbsp;</span></p> <p>&nbsp;</p> <p class="cls1"><span class="cls0">Added by Laws 1986, c. 48, &sect; 2, eff. Nov. 1, 1986. &nbsp;</span></p> <p><span class="cls0">&sect;60-857. Copies of recorded covenants and restrictions.&nbsp;</span></p> <p><span class="cls0">A copy or a certified copy of all the recorded covenants and restrictions of a real estate development shall be provided by the title company upon the request of any buyer of property in the real estate development as a part of the closing of the real estate sale. The buyer may be charged no more than Ten Dollars ($10.00) for the copy, and the copy shall be mailed no more than thirty (30) days from the date of the closing.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1999, c.384, &sect; 10, eff. Nov. 1, 1999.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-860. Community Residential Living for Persons with Developmental or Physical Disabilities Act.&nbsp;</span></p> <p><span class="cls0">Sections 860 through 867 of this title shall be known and may be cited as the "Community Residential Living for Persons with Developmental or Physical Disabilities Act".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 1, eff. Nov. 1, 1987. Amended by Laws 1996, c. 354, &sect; 41, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-861. Legislative findings - Goal of act.&nbsp;</span></p> <p><span class="cls0">A. The Legislature makes the following findings with regard to the rights of persons with developmental or physical disabilities:&nbsp;</span></p> <p><span class="cls0">1. Persons with developmental or physical disabilities have a right to appropriate treatment, services, and habilitation for such disabilities;&nbsp;</span></p> <p><span class="cls0">2. The treatment, services, and habilitation for a person with developmental or physical disabilities should be designed to maximize the developmental potential of the person and should be provided for in the setting that is least restrictive of the person's personal liberty; and&nbsp;</span></p> <p><span class="cls0">3. All programs for persons with developmental or physical disabilities should meet standards which are designed to ensure:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;the most favorable possible outcome for those served,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;in the case of residential programs for persons with developmental or physical disabilities, that care is appropriate to the needs of the persons being served by such programs,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;that the persons admitted to facilities of such programs are persons whose needs can be met through services provided by such facilities, and&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;that the facilities subject to such programs provide for the humane care of the residents of the facilities and protect their rights.&nbsp;</span></p> <p><span class="cls0">B. The Legislature declares that it is the goal of the Community Residential Living for Persons with Developmental or Physical Disabilities Act to improve the quality of life of all persons with developmental or physical disabilities and to integrate persons with developmental or physical disabilities into the mainstream of society by ensuring them the availability of community residential opportunities in the residential areas of this state. In order to implement this goal, the Community Residential Living for Persons with Developmental or Physical Disabilities Act shall be liberally construed toward that end.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 2, eff. Nov. 1, 1987. Amended by Laws 1996, c. 354, &sect; 42, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-862. Definitions.&nbsp;</span></p> <p><span class="cls0">As used in the Community Residential Living for Persons with Developmental or Physical Disabilities Act:&nbsp;</span></p> <p><span class="cls0">1. "Commission" means the Commission for Human Services;&nbsp;</span></p> <p><span class="cls0">2. "Developmental disability" means a severe, chronic disability of a person which:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;is attributable to a mental or physical impairment or combination of mental and physical impairments,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;is manifested before the person attains twenty-two (22) years of age,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;is likely to continue indefinitely,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;results in substantial functional limitations in three or more of the following areas of major life activity:&nbsp;</span></p> <p class="cls4"><span class="cls0">(1)&nbsp;&nbsp;self-care,&nbsp;</span></p> <p class="cls4"><span class="cls0">(2)&nbsp;&nbsp;receptive and expressive language,&nbsp;</span></p> <p class="cls4"><span class="cls0">(3)&nbsp;&nbsp;learning,&nbsp;</span></p> <p class="cls4"><span class="cls0">(4)&nbsp;&nbsp;mobility,&nbsp;</span></p> <p class="cls4"><span class="cls0">(5)&nbsp;&nbsp;self-direction,&nbsp;</span></p> <p class="cls4"><span class="cls0">(6)&nbsp;&nbsp;capacity for independent living, and&nbsp;</span></p> <p class="cls4"><span class="cls0">(7)&nbsp;&nbsp;economic self-sufficiency, and&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and are individually planned and coordinated;&nbsp;</span></p> <p><span class="cls0">3. "Physical disability" means a condition which causes the restricted use of extremities by an individual or which limits other bodily functions of an individual and which requires the specialized training, habilitation or rehabilitation services provided by a group home;&nbsp;</span></p> <p><span class="cls0">4. "Director" means the Director of the Department of Human Services;&nbsp;</span></p> <p><span class="cls0">5. "Group home" means a community-based residential facility located in a single-family zoning area that admits not more than six persons with developmental or physical disabilities who require specialized living arrangements, and that provides for such persons a home that is subject to the care and supervision of a responsible adult and which is licensed by or which has a contract with the Department of Human Services;&nbsp;</span></p> <p><span class="cls0">6. "Permitted use" means a use by right which is authorized in all residential zoning districts; and&nbsp;</span></p> <p><span class="cls0">7. "Political subdivision" means a municipality or county, whichever holds primary jurisdiction.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 3, eff. Nov. 1, 1987. Amended by Laws 1989, c. 330, &sect; 1, eff. Nov. 1, 1989; Laws 1996, c. 354, &sect; 43, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-863. Establishment of group home - Procedure.&nbsp;</span></p> <p class="cls3"><span class="cls0">A. 1. a.&nbsp;&nbsp;A group home is a residential use of property for the purposes of zoning and shall be treated as a permitted use in all residential zones or districts, including all single-family residential zones or districts of all political subdivisions of this state. No political subdivision may require that a group home, its owner, or operator obtain a conditional use permit, special use permit, special exception, or variance different from those required for other dwellings of similar density in the same zone; provided, however, prior to the establishment of a group home in any residential area within a political subdivision, the owner of such home shall file with the political subdivision an application for the establishment of such group home in such residential area. The political subdivision shall provide for notice to be given to all affected real property owners. The notice shall contain a legal description of the property and the street address or approximate location of the group home.&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;For the purposes of this section, the term "affected real property owners" shall mean all owners of real property which is located within three hundred (300) feet of the exterior boundary of the property on which the group home is to be located. The political subdivision may deny the application if the owner of the group home fails to obtain a license from the Department of Human Services or if the group home fails to comply with the spacing requirements of subsection B of this section.&nbsp;</span></p> <p><span class="cls0">2. After the initial approval process, the political subdivision shall have the right to require a rezoning application, special exception, or variance filing and a public hearing, if such procedures are normally required for any other similar use in the zoning district.&nbsp;</span></p> <p><span class="cls0">B. 1. Any rules promulgated by the State Board of Health for purposes of implementing the Community Residential Living for Persons with Developmental or Physical Disabilities Act shall remain in effect until such rules are superseded by rules promulgated by the Commission for Human Services, pursuant to this section. At such time, rules promulgated by the State Board of Health shall terminate.&nbsp;</span></p> <p><span class="cls0">2. For the purposes of safeguarding the health and safety of persons with developmental or physical disabilities and avoiding an over-concentration of group homes, either along or in conjunction with similar community-based residences, within one hundred eighty (180) days of the effective date of the Community Residential Living for Persons with Developmental or Physical Disabilities Act, the Commission for Human Services shall promulgate rules which shall encompass the following matters:&nbsp;</span></p> <p class="cls3"><span class="cls0">a.&nbsp;&nbsp;limitations on the number of new group homes to be permitted on blocks, block faces, and other appropriate geographic areas, to one thousand two hundred (1,200) feet between group homes, or similar community residential facilities serving persons in drug, alcohol, juvenile, child, parole, and other programs of treatment, care, supervision, or rehabilitation in a community setting; provided, however, this provision shall not apply to group homes located outside of the corporate limits of a municipality,&nbsp;</span></p> <p class="cls3"><span class="cls0">b.&nbsp;&nbsp;assurance that adequate arrangements are made for the residents of group homes to receive such care and habilitation as is necessary and appropriate to their needs and to further their progress towards independent living,&nbsp;</span></p> <p class="cls3"><span class="cls0">c.&nbsp;&nbsp;protection of the health and safety of the residents of group homes. Compliance with these rules shall not relieve the operator of any group home of the obligation to comply with the requirements or standards of a political subdivision pertaining to building, housing, health, fire, safety, and motor vehicle parking space that generally apply to single-family residences in the zoning district. No requirements for business licenses, gross receipt taxes, environmental impact studies, or clearances may be imposed on such homes if such fees, taxes, or clearances are not imposed on all structures in the zoning district housing a like number of persons. A group home shall not be excluded from a single family zone as a result of requirements promulgated by the Commission,&nbsp;</span></p> <p class="cls3"><span class="cls0">d.&nbsp;&nbsp;procedures by which a resident of a residential zoning district or the governing body of a political subdivision in which a group home is, or is to be, located may petition the Department of Human Services to deny an application for a license to operate a group home on the grounds that the operation of such a home would be in violation of the limits established pursuant to the provisions of subparagraph a of paragraph 2 of subsection B of this section, and&nbsp;</span></p> <p class="cls3"><span class="cls0">e.&nbsp;&nbsp;fees for licenses or renewal of licenses required by this section.&nbsp;</span></p> <p><span class="cls0">C. In order to facilitate the implementation of subparagraph a of paragraph 2 of subsection B of this section, the Department shall maintain a list of the location, capacity, and current occupancy of all group homes. The Department shall ensure that this list shall not contain the names or other identifiable information about any residents of such home and that copies of this list shall be available upon request to any resident of this state and any state agency or political subdivision.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 4, eff. Nov. 1, 1987. Amended by Laws 1989, c. 330, &sect; 2, eff. Nov. 1, 1989; Laws 1996, c. 354, &sect; 44, eff. Nov. 1, 1996; Laws 2003, c. 22, &sect; 1, eff. Nov. 1, 2003.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-864. Restrictions, conditions, exceptions or covenants in deeds not to prohibit use as group home.&nbsp;</span></p> <p><span class="cls0">Any restriction, reservation, condition, exception, or covenant in any subdivision plan, deed, plat, or other instrument of or pertaining to the transfer, sale, lease, or use of property shall not specifically prohibit the residential use of such property by a group home, provided the provisions of this section shall not otherwise prohibit any restriction, reservation, condition, exception or covenant in any such instrument effecting the occupancy, structure and use of such property.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 5, eff. Nov. 1, 1987. Amended by Laws 1996, c. 354, &sect; 45, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-865. Group home not to include.&nbsp;</span></p> <p><span class="cls0">As used in the Community Residential Living for Persons with Developmental or Physical Disabilities Act, a group home does not include any of the following:&nbsp;</span></p> <p><span class="cls0">1. A hospital or home for persons with mental illness;&nbsp;</span></p> <p><span class="cls0">2. An establishment commonly described as an alcohol or substance abuse rehabilitation center; or&nbsp;</span></p> <p><span class="cls0">3. A residential facility for persons released from or assigned to correctional institutions.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1987, c. 169, &sect; 6, eff. Nov. 1, 1987. Amended by Laws 1996, c. 354, &sect; 46, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-866. Size limitation - Ordinances.&nbsp;</span></p> <p><span class="cls0">A political subdivision, by ordinance, may provide that a group home may consist of not more than eight persons with developmental or physical disabilities.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1989, c. 330, &sect; 3, eff. Nov. 1, 1989. Amended by Laws 1996, c. 354, &sect; 47, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-867. Size limitation - Exemptions.&nbsp;</span></p> <p><span class="cls0">Group homes which were licensed by the State Department of Health prior to November 1, 1989, shall not be subject to the group home size limitation of six persons and are not required to meet such limitation as a condition of renewal of the license of the group home by the Department of Human Services or as a condition of renewal of the contract with the Department, as long as the group home remains in the same physical facility and otherwise complies with the provisions of the license, and rules pertaining thereto.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1989, c. 330, &sect; 4, eff. Nov. 1, 1989. Amended by Laws 1996, c. 354, &sect; 48, eff. Nov. 1, 1996.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1001. Adoption and description of official system of coordinates.&nbsp;</span></p> <p><span class="cls0">A. The systems of plane coordinates which have been established by the National Ocean Service/National Geodetic Survey, formerly the United States Coast and Geodetic Survey, or its successors for defining and stating the geographic positions or locations of points on the surface of the earth within the State of Oklahoma are hereafter to be known and designated as the Oklahoma Coordinate System of 1927 and the Oklahoma Coordinate System of 1983.&nbsp;</span></p> <p><span class="cls0">For the purpose of the use of these systems, the state is divided into a North Zone and a South Zone.&nbsp;</span></p> <p><span class="cls0">B. 1. The area now included in the following counties shall constitute the North Zone: Adair, Alfalfa, Beaver, Blaine, Canadian, Cherokee, Cimarron, Craig, Creek, Custer, Delaware, Dewey, Ellis, Garfield, Grant, Harper, Kay, Kingfisher, Lincoln, Logan, Major, Mayes, Muskogee, Noble, Nowata, Okfuskee, Oklahoma, Okmulgee, Osage, Ottawa, Pawnee, Payne, Roger Mills, Rogers, Sequoyah, Texas, Tulsa, Wagoner, Washington, Woods and Woodward.&nbsp;</span></p> <p><span class="cls0">2. The area now included in the following counties shall constitute the South Zone: Atoka, Beckham, Bryan, Caddo, Carter, Choctaw, Cleveland, Coal, Comanche, Cotton, Garvin, Grady, Greer, Harmon, Haskell, Hughes, Jackson, Jefferson, Johnston, Kiowa, Latimer, Leflore, Love, McClain, McCurtain, McIntosh, Marshall, Murray, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Seminole, Stephens, Tillman and Washita.&nbsp;</span></p> <p><span class="cls0">C. 1. As established for use in the North Zone, the Oklahoma Coordinate System of 1927 or the Oklahoma Coordinate System of 1983 shall be named; and in any land description in which it is used, it shall be designated the "Oklahoma Coordinate System of 1927 North Zone" or the "Oklahoma Coordinate System of 1983 North Zone".&nbsp;</span></p> <p><span class="cls0">2. As established for use in the South Zone, the Oklahoma Coordinate System of 1927 or the Oklahoma Coordinate System of 1983 shall be named; and in any land description in which it is used, it shall be designated the "Oklahoma Coordinate System of 1927 South Zone" or the "Oklahoma Coordinate System of 1983 South Zone".&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 1, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1002. Plane coordinate values.&nbsp;</span></p> <p><span class="cls0">The plane coordinate values for a point on the earth's surface, used to express the geographic position or location of such point in the appropriate zone of this system, shall consist of two (2) distances expressed in U.S. Survey Feet and decimals of a foot when using the Oklahoma Coordinate System of 1927 and expressed in meters and decimals of a meter when using the Oklahoma Coordinate System of 1983. One of these distances, to be known as the "xcoordinate" (also known as "easting"), shall give the position in an eastandwest direction; the other, to be known as the "ycoordinate" (also known as "northing"), shall give the position in a northandsouth direction. These coordinates shall be made to depend upon and conform to plane rectangular coordinate values for the monumented points of the North American Horizontal Geodetic Control Network as published by the National Ocean Service/National Geodetic Survey, or its successors, and whose plane coordinates have been computed on the systems defined in this act. Any such station may be used for establishing a survey connection to either Oklahoma Coordinate System.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 2, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1003. Plane coordinates as supplement to Oklahoma base lines and meridians.&nbsp;</span></p> <p><span class="cls0">For purposes of describing the location of any survey station or land boundary corner in the State of Oklahoma, a plane coordinate may be used to supplement but not to change the position of a land boundary corner or land description as created by the Oklahoma base lines and meridians.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 3, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1004. Tract of land in more than one coordinate zone.&nbsp;</span></p> <p><span class="cls0">When any tract of land to be defined by a single description extends from one into the other of the above coordinate zones, the positions of all points on its boundaries may be referred to either of the two zones, the zone which is used being specifically named in the description.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 4, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1005. Definitions.&nbsp;</span></p> <p><span class="cls0">A. For purposes of more precisely defining the Oklahoma Coordinate System of 1927, the following definition by the United States Coast and Geodetic Survey (now National Ocean Service/National Geodetic Survey) is adopted:&nbsp;</span></p> <p><span class="cls0">1. The "Oklahoma Coordinate System of 1927 North Zone", is a Lambert conformal conic projection of the Clarke spheroid of 1866, having parallels at north latitudes 35 degrees 34 minutes and 36 degrees 46 minutes along which parallels the scale shall be exact. The origin of coordinates is at the intersection of the meridian 98 degrees 00 minutes west of Greenwich and the parallel 35 degrees 00 minutes north latitude. This origin is given the coordinates: x = 2,000,000 feet and y = 0 feet.&nbsp;</span></p> <p><span class="cls0">2. The "Oklahoma Coordinate System of 1927 South Zone", is a Lambert conformal conic projection of the Clarke spheroid of 1866, having parallels at north latitudes 33 degrees 56 minutes and 35 degrees 14 minutes along which parallels the scale shall be exact. The origin of coordinates is at the intersection of the meridian 98 degrees 00 minutes west of Greenwich and the parallel 33 degrees 20 minutes north latitude. This origin is given the coordinates: x = 2,000,000 feet and y = 0 feet.&nbsp;</span></p> <p><span class="cls0">B. For purposes of more precisely defining the Oklahoma Coordinate System of 1983, the following definition by the National Ocean Service/National Geodetic Survey is adopted:&nbsp;</span></p> <p><span class="cls0">1. The "Oklahoma Coordinate System of 1983 North Zone" is a Lambert conformal conic projection of the North American Datum of 1983, having parallels at north latitudes 35 degrees 34 minutes and 36 degrees 46 minutes along which parallels the scale shall be exact. The origin of coordinates is at the intersection of the meridian 98 degrees 00 minutes west of Greenwich and the parallel 35 degrees 00 minutes north latitude. This origin is given the coordinates: x = 600,000 meters and y = 0 meters.&nbsp;</span></p> <p><span class="cls0">2. The "Oklahoma Coordinate System of 1983 South Zone" is a Lambert conformal conic projection of the North American Datum of 1983, having standard parallels at north latitudes 33 degrees 56 minutes and 35 degrees 14 minutes along which parallels the scale shall be exact. The origin of coordinates is at the intersection of the meridian 98 degrees 00 minutes west of Greenwich and the parallel 33 degrees 20 minutes north latitude. This origin is given the coordinates: x = 600,000 meters and y = 0 meters.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 5, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1006. Limitations on recording coordinates.&nbsp;</span></p> <p><span class="cls0">No coordinates based on either Oklahoma coordinate system, purporting to define the position of a point on a land boundary, shall be presented to be recorded in any public land records or deed records unless such point is within one (1) mile of a monumented horizontal control station established in conformity with the standards of accuracy and specifications of first or secondorder geodetic surveying as prepared and published by the Federal Geodetic Control Committee (FGCC) of the United States Department of Commerce. Standards and specifications of the FGCC or its successor in the force on date of said survey shall apply. Publishing existing control stations, or the acceptance with intent to publish the newly established stations, by the National Ocean Service/National Geodetic Survey will constitute evidence of adherence to the FGCC specifications. Above limitations may be modified by the State Board of Registration for Professional Engineers and Land Surveyors to meet local conditions.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 6, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1007. Conversion of feet to meters.&nbsp;</span></p> <p><span class="cls0">For the Oklahoma Coordinate System, the unit used to convert feet to meters shall be the United States survey foot 39.37/12 feet for each meter.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 7, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1008. Limitations on use of coordinates - Prior recordations - Nonconformity with System.&nbsp;</span></p> <p><span class="cls0">A. The use of the "Oklahoma Coordinate System of 1927 North Zone", or the term "Oklahoma Coordinate System of 1927 South Zone" or "Oklahoma Coordinate System of 1983 North Zone" or "Oklahoma Coordinate System of 1983 South Zone" on any map, report of survey, or other document shall be limited to coordinates based on the Oklahoma Coordinate System as defined in this act.&nbsp;</span></p> <p><span class="cls0">B. Any legal description prepared prior to November 1, 1990, or any continual use of legal descriptions prepared pursuant to the provisions of this act which have been recorded or filed in official records within the State of Oklahoma, shall not be affected by this section.&nbsp;</span></p> <p><span class="cls0">C. Nonconformity with the Oklahoma Coordinate System established by this act shall not invalidate any deed, map, plat, survey, description or other document which is otherwise proper.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 8, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1009. Indian Base and Meridian - Effect of act.&nbsp;</span></p> <p><span class="cls0">Nothing in this act shall invalidate or affect surveys done by the land tie method or surveys referring to the Indian Base and Meridian.&nbsp;</span></p> <p><span class="cls0">Added by Laws 1990, c. 138, &sect; 9, eff. Nov. 1, 1990.&nbsp;</span></p> <p class="cls1">&nbsp;</p> <p><span class="cls0">&sect;60-1101. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1102. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1103. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1104. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1105. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1106. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1107. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1108. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p><span class="cls0">&sect;60-1109. Unconstitutional.&nbsp;</span></p> <p>&nbsp;</p> <p><span class="cls0">NOTE: This section was held unconstitutional by the Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d 143, 2008 OK 102 (2009).&nbsp;</span></p> <p>&nbsp;</p> </body> </html>

Disclaimer: These codes may not be the most recent version. Oklahoma may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.