STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 532	By:	Anderson

AS INTRODUCED

An Act relating to title to livestock; amending 12A O.S. 2011, Section 2-403, which relates to power to transfer; inserting heading; prohibiting transfer of title to livestock under certain circumstances; making language gender neutral; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     12A O.S. 2011, Section 2-403, is amended to read as follows:
Section 2-403.  Power to Transfer; Good Faith Purchase of Goods; "Entrusting".
(1)  A purchaser of goods acquires all title which ~~his~~ the transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased.  A person with voidable title has power to transfer a good title to a good faith purchaser for value.  When goods have been delivered under a transaction of purchase the purchaser has such power even though
(a)	the transferor was deceived as to the identity of the purchaser, or
(b)	the delivery was in exchange for a check which is later dishonored, or
(c)	it was agreed that the transaction was to be a "cash sale", or
(d)	the delivery was procured through fraud punishable as larcenous under the criminal law.
(2)  Any entrusting of possession of goods to a merchant who deals in goods of that kind gives ~~him~~ the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.
(3)  "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be larcenous under the criminal law.
(4)  The rights of other purchasers of goods and of lien creditors are governed by the articles on Secured Transactions (Article 9) and Documents of Title (Article 7).
(5)  Notwithstanding any other provision of this section, when livestock has been delivered under a transaction of purchase and the payment for the consideration of the transaction has not been received by the seller, the purchaser shall not have the power to subsequently transfer good title to the livestock to a third-party good faith purchaser for value until payment for the livestock is received by the seller.
SECTION 2.  This act shall become effective November 1, 2013.

54-1-202	TEK	1/15/2013 7:54:32 PM