Title Examination Standards
Chapter 1, App.
Chapter 24. Mortgages and Other Liens
§24.2. Release of Mortgage to Multiple Mortgagees.

1. A. If a mortgage is payable to two or more mortgagees alternatively, one mortgagee acting alone can release the mortgage. For example, if a mortgage is payable to "A or B", a release from either A or B is sufficient.
2. B. If a mortgage executed on or after January 1, 1963, is payable to two or more mortgagees jointly and severally, all mortgagees must join in the release of the mortgage. For example, if a mortgage is payable to "A and B", both A and B must execute releases to discharge the mortgage. This is a reversal of prior law: If the mortgage to "A and B" is executed before January 1, 1963, and on its face appears to secure a single debt, a release from either A or B executed before January 1, 1963, is sufficient.

3. C. If the mortgage is ambiguous as to whether it is payable to the mortgagees alternatively, the examiner should presume that it is payable to the persons alternatively. For example, if the mortgage is payable to "A and/or B", a release from either A or B is sufficient.

   Authority: 12A O.S. § 3-110(d); Gill Equipment Co. v. Freedman, 339 Mass. 303, 158 N.E.2d 863 (1959); Jens-Marie Oil Co. v. Rixse, 72 Okla. 93, 178 P. 658 (1918); Wright v. Ware, 58 Ga. 150 (1877); R.G. & C.G. Patton, Patton on Titles § 567 (2d ed. 1957); G. Thompson, Real Property § 4692 (Supp. 1958); L.A. Jones, Mortgages § 1224 (8th ed. 1928). Comment: This standard, as originally adopted in 1953, was based upon the common-law rule on joint mortgages incorporated in Negotiable Instrument Law of Oklahoma, 1909 Okla. Sess. Laws, ch. 24, art. II, § 8 and art. III, § 41, This rule was repealed effective January 1, 1963, when the Uniform Commercial Code was adopted in Oklahoma, and was replaced by a new rule codified as 12A O.S. § 3-116, 1991 Okla. Sess. Laws, ch. 177, § 35, effective January 1, 1992, moved the current rule to 12A O.S. § 3-110(d) and added the presumption that a mortgage with ambiguous payee language should be construed as payable to the mortgagees alternatively.

History: Adopted as 30., December 6, 1952, 24 O.B.A.J. 74 (1953). The 1962 Real Property Committee recommended the change indicated in the Comment, see Recommendation (7) 33 O.B.A.J. 2157-58 (1962) and Exhibit E, id. at 2179. The recommendation was approved by the Real Property Section and the House of Delegates, id. at 2470, November 29, 1962. Second paragraph of standard amended, December 1964. The amended version printed as Proposal No. 9 of the 1964 Real Property Committee, 35 O.B.A.J. 2045 (1964) and see Exhibit F, id. at 2051. The Amendment approved, upon recommendation of the Real Property Section, by the House of Delegates, 36 O.B.A.J. 179, 182 (1965). Gill Equipment case, supra , added to "Authority", December 1964, as per Proposal No. 8 of 1964 Real Property Committee, 35 O.B.A.J. 2045 (1964) and approval, upon recommendation of Real Property Section, by House of Delegates, 36 O.B.A.J. 179, 182 (1965).

The 1993 Report of the Title Examination Standards Committee proposed revising this standard to indicate the amendment of 12A O.S. § 3-116, effective Jan. 1, 1992, which renumbered to 12A O.S. § 3-110(d) the part of the former § 3-116 to which this standard pertains. The Committee also proposed a third paragraph to add that a mortgage with ambiguous payee language-i.e., language that is unclear as to whether the debt secured by the mortgage is payable to mortgagees jointly or in the alternative-should be presumed to be payable to the mortgagees alternatively, 64 O.B.J. 3245, 3249-50 (10/30/93). The Real Property Section approved the Committee's recommendation on November 4, 1993, and the House of Delegates adopted the amended standard on November 5, 1993, 64 O.B.J. 3409 (11/13/93).