Disclaimer: This article is for informational purposes only. It does not constitute legal advice.
Detailed Answer
Under
1. Obtain a Written Payoff Statement
Request a payoff statement from the lender. This document specifies the exact payoff amount and payoff date. Verify that the administrator’s payment matches or exceeds the amount stated.
2. Confirm Lien Release Documentation
After you satisfy the loan, the lender must issue a lien release. Under 47 O.S. § 1118 (Oklahoma Title and Registration Law), the lender must endorse the vehicle’s certificate of title or provide a separate release of lien form. Ensure you receive one of these documents.
3. Check UCC Termination Filings
Many auto loans are secured by a UCC-1 financing statement. Under 12A O.S. § 9-513 (Oklahoma Uniform Commercial Code), the lender must file a termination statement with the Oklahoma Secretary of State. Search the online UCC records to confirm that the termination is recorded.
4. Verify Title Status with the Oklahoma Tax Commission
Submit the lien release and the previous title to your county tag agent or the Oklahoma Tax Commission. They will issue a clear title with no lienholder listed. You can also use the OTC’s online title inquiry tool to confirm that no lien remains.
5. Maintain Records
Keep copies of the payoff statement, lien release, UCC termination, and new title in the estate file. These records prove to courts or heirs that the debt is resolved.
By following these steps, the administrator ensures that the vehicle loan is fully satisfied before distributing estate assets under 58 O.S. § 418 (Oklahoma Probate Code).
Helpful Hints
- Order the payoff statement at least 10 days before the payment date to allow for processing delays.
- Use certified funds or a bank check to reduce payment disputes.
- Confirm that the lien release is on original lender letterhead or notarized if separate from the title.
- Search both county records (for title liens) and state UCC filings to catch all security interests.
- Ask the lender for an estimated payoff amount that includes all interest through the anticipated payment date.