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ENGROSSED HOUSE
BILL NO. 4352 By: Wilk, Moore, and Schreiber
of the House
and
Howard of the Senate
An Act relating to mortgages; enacting the Oklahoma
Uniform Mortgage Modification Act; defining terms;
providing scope of act; providing list of laws and
statutes not affected by the act; exempting certain
mortgage modifications from the act; stating the
effect of mortgage modifications; directing courts to
make certain considerations when applying and
construing the act; describing manner by which the
act affects the Electronic Signatures in Global and
National Commerce Act; declaring that the act does
not affect electronic deliveries of certain notices;
providing when provisions of the act are applicable;
providing severability clause; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 401 of Title 46, unless there is
created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Uniform Mortgage Modification Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 402 of Title 46, unless there is
created a duplication in numbering, reads as follows:
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As used in this act:
1. "Electronic" means technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar
capabilities;
2. "Financial covenant" means an undertaking to demonstrate an
obligor's creditworthiness or the adequacy of security provided by
an obligor;
3. "Modification" means a change, amendment, revision,
correction, addition, supplementation, elimination, waiver, or
restatement;
4. "Mortgage":
a. means an agreement that creates a consensual interest
in real property to secure payment or performance of
an obligation, regardless of:
(1) how the agreement is denominated, including a
mortgage, deed of trust, trust deed, security
deed, indenture, and deed to secure debt, and
(2) whether the agreement also creates a security
interest in personal property, and
b. does not include an agreement that creates a
consensual interest to secure a liability owed by a
unit owner to a condominium association, owners'
association, or cooperative housing association for
association dues, fees, or assessments;
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5. "Mortgage modification" means modification of:
a. a mortgage,
b. an agreement that creates an obligation, including a
promissory note, loan agreement, or credit agreement,
or
c. an agreement that creates other security or credit
enhancement for an obligation, including an assignment
of leases or rents or a guaranty;
6. "Obligation" means a debt, duty, or other liability secured
by a mortgage;
7. "Obligor" means a person that:
a. owes payment or performance of an obligation,
b. signs a mortgage, or
c. is otherwise accountable, or whose property serves as
collateral, for payment or performance of an
obligation;
8. "Person" means an individual, estate, business or nonprofit
entity, government or governmental subdivision, agency, or
instrumentality, or other legal entity;
9. "Recognized index" means an index to which changes in the
interest rate may be linked that is:
a. readily available to, and verifiable by, the obligor,
and
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b. beyond the control of the person to whom the
obligation is owed;
10. "Record", used as a noun, means information:
a. inscribed on a tangible medium, or
b. stored in an electronic or other medium and
retrievable in perceivable form; and
11. "Sign" means, with present intent to authenticate or adopt
a record, to:
a. execute or adopt a tangible symbol, or
b. attach to or logically associate with the record an
electronic symbol, sound, or process.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 403 of Title 46, unless there is
created a duplication in numbering, reads as follows:
A. Except as provided in subsection C of this section, this act
applies to a mortgage modification.
B. This act does not affect:
1. Laws governing the required content of a mortgage;
2. A statute of limitations or other law governing the
expiration or termination of a right to enforce an obligation or a
mortgage;
3. A recording statute;
4. A statute governing the priority of a tax lien or other
governmental lien;
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5. A statute of frauds; or
6. Except as provided in paragraph 8 of subsection B of Section
4 of this act, laws governing the priority of a future advance.
C. This act does not apply to any of the following
modifications:
1. A release of, or addition to, property encumbered by a
mortgage;
2. A release of, addition of, or other change in an obligor; or
3. An assignment or other transfer of a mortgage or an
obligation.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 404 of Title 46, unless there is
created a duplication in numbering, reads as follows:
A. For a mortgage modification described in subsection B of
this section:
1. The mortgage continues to secure the obligation as modified;
2. The priority of the mortgage is not affected by the
modification;
3. The mortgage retains its priority regardless of whether a
record of the mortgage modification is recorded in the county
records office in the county where the property is located; and
4. The modification is not a novation.
B. Subsection A of this section applies to one or more of the
following mortgage modifications:
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1. An extension of the maturity date of an obligation;
2. A decrease in the interest rate of an obligation;
3. If the change does not result in an increase in the interest
rate of an obligation as calculated on the date the modification
becomes effective:
a. a change to a different index that is a recognized
index if the previous index to which changes in the
interest rate were linked is no longer available,
b. a change in the differential between the index and the
interest rate,
c. a change from a floating or adjustable rate to a fixed
rate, or
d. a change from a fixed rate to a floating or adjustable
rate based on a recognized index;
4. A capitalization of unpaid interest or other unpaid monetary
obligation;
5. A forgiveness, forbearance, or other reduction of principal,
accrued interest, or other monetary obligation;
6. A modification of a requirement for maintaining an escrow or
reserve account for payment of an obligation, including taxes and
insurance premiums;
7. A modification of a requirement for acquiring or maintaining
insurance;
8. A modification of an existing condition to advance funds;
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9. A modification of a financial covenant; and
10. A modification of the payment amount or schedule resulting
from another modification described in this subsection.
C. The effect of a mortgage modification not described in
subsection B of this section is governed by other law.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 405 of Title 46, unless there is
created a duplication in numbering, reads as follows:
In applying and construing this uniform act, a court shall
consider the promotion of uniformity of the law among jurisdictions
that enact it.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 406 of Title 46, unless there is
created a duplication in numbering, reads as follows:
This act modifies, limits, or 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 15 U.S.C.,
Section 7001(c), or authorize electronic delivery of any of the
notices described in 15 U.S.C., Section 7003(b).
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 407 of Title 46, unless there is
created a duplication in numbering, reads as follows:
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This act applies to a mortgage modification made on or after the
effective date of this act regardless of when the mortgage or the
obligation was created.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 408 of Title 46, unless there is
created a duplication in numbering, reads as follows:
If a provision of this act or its application to a person or
circumstance is held invalid, the invalidity does not affect another
provision or application that can be given effect without the
invalid provision.
SECTION 9. This act shall become effective November 1, 2026.
Passed the House of Representatives the 24th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2026.
Presiding Officer of the Senate