Chapter 863 Oregon Laws 2001

AN ACT

HB 4001

Relating to liens for molders; creating new provisions; and amending ORS 98.485.

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

SECTION 1. Sections 2 to 4 of this 2001 Act are added to and made a part of ORS chapter 87.

SECTION 2. For purposes of sections 2 to 4 of this 2001 Act, “customer,” “mold” and “molder” have the meanings given those terms in ORS 98.470.

SECTION 3. (1) If a molder does not retain title to a mold that the molder fabricated, molded, cast or made for a customer or if a molder performs manufacturing, assembly or fabrication work using a mold furnished by a customer, the molder shall have a lien on a mold that is retained by the molder. The amount of the lien shall be equal to the balance due to the molder from the customer for any manufacturing, assembly or fabrication work, including the value of materials. The molder may retain possession of the mold until the amount is paid.

(2) The molder shall serve notice of the lien to the customer by registered mail with return receipt requested to the last known address of the customer or by personal service. The notice of the lien shall:

(a) State that a lien is claimed for the amount described in subsection (1) of this section for manufacturing, assembly or fabrication work performed for the customer; and

(b) Demand payment of the amount within 60 days after service.

(3) If the molder is not paid the amount due within 60 days after receipt of the notice of lien by the customer and the molder complies with section 4 of this 2001 Act, the molder may sell the mold at a public sale.

SECTION 4. (1) Before a molder may sell a mold pursuant to section 3 of this 2001 Act, the molder shall notify the customer of the sale by registered mail with return receipt requested. The notice shall include:

(a) The molder’s intention to sell the mold 30 days after the customer receives the notice;

(b) A description of the mold to be sold;

(c) The time and place of the sale; and

(d) An itemized statement for the amount due.

(2) If the notice is returned to sender as undeliverable, the molder shall publish the notice in a newspaper of general circulation in the area of the last known place of business of the customer.

(3) If the mold is sold for a sum greater than the amount of the lien, the excess shall be paid to any prior recorded lienholder and any remainder to the customer, if the customer’s address is known to the molder at the time of the sale, or to the General Fund, if the customer’s address is unknown.

(4) The molder may not sell the mold if it would be in violation of any right of the customer under federal law.

SECTION 5. ORS 98.485 is amended to read:

98.485. If a molder does not choose to exercise the rights provided under ORS 98.475 or sections 2 to 4 of this 2001 Act, the molder shall render the mold unusable as a mold and destroy or otherwise dispose of the mold.

Approved by the Governor July 27, 2001

Filed in the office of Secretary of State July 27, 2001

Effective date January 1, 2002

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