Chapter 51 Oregon Laws 2001

AN ACT

HB 2160

Relating to the Forest Resource Trust; amending ORS 526.715, 526.735 and 526.740.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 526.715 is amended to read:

526.715. (1) The State Forester is authorized, on behalf of the Forest Resource Trust, to enter into [agreements] contracts with eligible landowners to carry out the provisions of the stand establishment program. The [agreements] contracts shall include, but are not limited to, the following matters:

(a) Providing up to full financing to the landowner for stand establishment from such moneys as may be available in the Forest Resource Trust Fund[; and].

(b) Setting forth the obligations of the landowner for repayment of moneys advanced for the establishment of the stand including, but not limited to, the following provisions:

(A) Terms for sharing the revenue gained from the sales of timber and forest products, including salvage, from the tree stands established under the program;

(B) Release from the financial obligation for any portion of the stand established under the program and irretrievably lost to insects, disease, fire, storm, flood or other natural destruction through no fault of the landowner;

(C) Assurance that the rights and obligations of the [owner] landowner and the Forest Resource Trust and all of the terms of the [landowner agreement] contract are covenants that run with the land upon sale, lease or transfer of the land benefiting from the program prior to the repayment of moneys advanced [unless otherwise agreed];

(D) Financial terms allowing the [owner] landowner to terminate the [agreement] contract prior to harvesting timber from the stand established under the program;

(E) Agreement that there is no obligation to repay the moneys advanced prior to sale of timber and forest products from the land in the program;

(F) Terms to protect the [contractual agreement] contract from modification unless agreed to by both parties;

(G) Allowance for different prescriptions for stand establishment consistent with the established rate of return; and

(H) Provisions for access to the land by the State Forester.

(2) In addition to the [agreements] contracts provided for in subsection (1) of this section, the State Forester, on behalf of the Forest Resource Trust, may require landowners to execute security agreements in favor of the Forest Resource Trust to secure any repayment or other obligations of the landowner under the stand management program. Any such security interest shall have priority from the date of recording or filing.

(3)(a) The State Forester shall record a contract described in subsection (1) of this section or a memorandum of contract with the recording officer of the county or counties in which the forestland is located.

(b) Upon recording, the rights and obligations of the landowner and the Forest Resource Trust under the contract are covenants that run with the land and are binding upon successors and assigns.

(c) The interest of the Forest Resource Trust created by recording the contract or the memorandum of contract constitutes a purchaser's interest in real property for purposes of ORS 93.640.

(d) If a memorandum of contract is to be recorded, the memorandum of contract must include the following information:

(A) The date of execution of the contract;

(B) The name of each landowner of the forestland identified in the contract;

(C) A legal description that conforms with ORS 93.600 of the forestland subject to the contract; and

(D) An acknowledgment that the contract is secured by a lien as provided in ORS 526.735 to 526.775.

[(3)] (4) For purposes of this section, “eligible landowner” means a landowner who:

(a) Owns land that qualifies as underproducing nonindustrial private forestland as defined by the State Forester.

(b) Has not used ORS 527.760 to avoid reforestation.

(c) Has not begun conversion of acreage prior to entering into [an agreement] a contract with the State Forester.

SECTION 2. ORS 526.735 is amended to read:

526.735. As used in ORS 526.735 to 526.775, unless the context otherwise requires:

(1) “Contract” means the [agreement] contract signed by the forestland owner and the State Forester, acting on behalf of the Forest Resource Trust pursuant to ORS 526.715.

(2) “Forestland owner” means the individual, corporation, limited liability company, partnership, association, joint stock company, trustee, business trust or unincorporated organization holding fee simple ownership of land capable of producing forest products.

(3) “Forest products” includes, but is not limited to, trees, logs, poles, lumber, chips or pulp that flow from investment of the Forest Resource Trust.

SECTION 3. ORS 526.740 is amended to read:

526.740. (1) From and after recording of the notice of lien pursuant to ORS 526.745, the Forest Resource Trust has a lien for the moneys [paid or to be paid to a forestland owner under a contract with the trust] payable to the trust by the forestland owner under the terms of the contract.

(2) The lien created by subsection (1) of this section constitutes a general lien upon all forest products grown or growing on the forestland described in the contract, whether standing on the forestland, severed and remaining on the forestland, severed and transported to another area for sale or processing, or made into forest products on the forestland. If the forest product is severed and delivered to a purchaser or mill, the lien continues against the forest product and the lien also attaches to accounts receivable evidencing indebtedness of the purchaser or mill. The lien attaches to the accounts receivable on the date on which the forestland owner sells the forest products and relates [back] to the date on which notice of lien was filed under ORS 526.745.

Approved by the Governor April 6, 2001

Filed in the office of Secretary of State April 6, 2001

Effective date January 1, 2002

__________