71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2211
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Attorney General Hardy
Myers for Department of Justice)
CHAPTER ................
AN ACT
Relating to motor vehicle leases; creating new provisions; and
amending ORS 83.510, 83.520, 83.540, 83.560, 83.565, 83.580,
83.620, 83.650, 83.670, 83.811, 83.813, 83.820, 83.850, 83.860
and 83.875.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 83.510 is amended to read:
83.510. As used in ORS 83.510 to 83.680 except where the
context otherwise requires:
(1) 'Cash sale price' means the price for which the
{ - seller - } { + motor vehicle dealer + } would sell to the
buyer, and the buyer would buy from the { - seller - } { +
motor vehicle dealer + }, the motor vehicle which is covered by
the retail installment contract, if the sale were a sale for cash
instead of a retail installment sale. The cash sale price may
include any taxes, registration, license and other fees and
charges for accessories and their installation and for
delivering, servicing, repairing or improving the motor vehicle.
(2) 'Finance charge' means that part of the time sale price
which exceeds the aggregate of the cash sale price, the amounts,
if any, included in a retail installment sale for insurance and
other benefits, and official fees.
(3) 'Financing agency' means a person engaged, in whole or in
part, in purchasing or otherwise acquiring retail installment
contracts { + or retail lease agreements + } from one or more
{ - retail sellers - } { + motor vehicle dealers or retail
lessors + }. The term includes, but is not limited to, financial
institutions, as defined in ORS 706.008, and consumer credit
companies, if so engaged. The term also includes a { - retail
seller - } { + motor vehicle dealer or retail lessor + }
engaged, in whole or in part, in the business of holding retail
installment contracts { + or retail lease agreements + }
acquired from retail buyers { + or retail lessees + }. The term
does not include the pledgee or other holder of more than one
retail installment contract { + or retail lease agreement + }
pledged or otherwise given by a { - retail seller, - } { +
motor vehicle dealer + } or a transferee from the { - retail
seller, - } { + motor vehicle dealer + } to a lender as
collateral security for a loan made to the { - retail
seller - } { + motor vehicle dealer + } or transferee of the
{ - retail seller - } { + motor vehicle dealer + }.
Enrolled House Bill 2211 (HB 2211-INTRO) Page 1
(4) 'Holder' of a retail installment contract { + or retail
lease agreement + } means the { - retail seller - } { + motor
vehicle dealer or retail lessor + } of the motor vehicle covered
by the contract { + or lease + } or, if the contract { + or
lease + } is purchased or otherwise acquired by a financing
agency or other assignee, the financing agency or other assignee.
(5) 'Mobile home' means a structure, transportable in one or
more sections, which is eight body feet or more in width and 32
body feet or more in length, and which is built on a permanent
chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities.
The term includes the plumbing, heating, air conditioning and
electrical systems contained within the structure.
(6) 'Motor vehicle' or 'vehicle' means:
(a) A self-propelled device used for transportation of person
or property upon a public highway.
(b) A trailer, semitrailer, mobile home or trailer home. The
term does not include tractors, power shovels, road machinery,
agricultural machinery, boat trailers or other machinery not
designed primarily for highway transportation but which may be
used incidentally to transport persons or property on a public
highway, or devices which move upon or are guided by a track or
travel through the air.
{ + (7) 'Motor vehicle dealer' means any person who sells,
trades, leases, displays or offers for sale, trade, lease or
exchange motor vehicles pursuant to a retail installment contract
or retail lease agreement or who offers to negotiate or purchase
motor vehicles on behalf of third parties pursuant to a retail
installment contract or retail lease agreement. + }
{ - (7) - } { + (8) + } 'Official fees' means the filing or
other fees required by law to be paid to a public officer to
perfect the interest or lien, in or on a motor vehicle, retained
or taken by a
{ - seller - } { + motor vehicle dealer + } under a retail
installment contract { + or retail lease agreement + }, and to
file or record a release, satisfaction or discharge of the
contract.
{ - (8) - } { + (9) + } 'Person' means individual,
partnership, corporation, association or other group, however
organized.
{ - (9) - } { + (10) + } 'Retail buyer' or 'buyer' means a
person who buys a motor vehicle from a { - retail seller - }
{ + motor vehicle dealer + } and who executes a retail
installment contract in connection therewith.
{ - (10) - } { + (11) + } 'Retail installment contract' or
'contract ' means an agreement, entered into in this state,
pursuant to which the title to, the property in or a lien upon a
motor vehicle, which is the subject matter of a retail
installment sale, is retained or taken by a { - retail
seller - } { + motor vehicle dealer + } from a retail buyer as
security, in whole or in part, for the buyer's obligation. The
term includes a chattel mortgage, a conditional sales contract
and a contract for the bailment or leasing of a motor vehicle by
which the bailee or lessee contracts to pay as compensation for
its use a sum substantially equivalent to or in excess of its
value and by which it is agreed that the bailee or lessee is
bound to become, or for no other or for a merely nominal
consideration has the option of becoming, the owner of the motor
vehicle upon full compliance with the terms of the contract.
Enrolled House Bill 2211 (HB 2211-INTRO) Page 2
{ - (11) - } { + (12) + } 'Retail installment sale' or
'sale' means a sale of a motor vehicle by a { - retail
seller - } { + motor vehicle dealer + } to a retail buyer for a
time sale price payable in one or more installments, payment of
which is secured by a retail installment contract. The term
includes a bailment or leasing as { - defined - } { +
described + } in subsection { - (10) - } { + (11) + } of this
section. It does not include a sale of a motor vehicle for resale
in the ordinary course of the buyer's business.
{ + (13) 'Retail lease' means a lease of a motor vehicle by a
retail lessor to a retail lessee, payment of which is secured by
a retail lease agreement. 'Retail lease' does not include a lease
that constitutes a retail installment contract.
(14) 'Retail lease agreement' means an agreement entered into
in this state between a retail lessor and a retail lessee for the
lease of a motor vehicle. The agreement shall be in the form of a
bailment or lease for the use of a motor vehicle by an individual
for personal, family or household purposes, whether or not the
retail lessee has the option to purchase or otherwise become the
owner of the motor vehicle at the expiration of the lease.
(15) 'Retail lessee' means a person who leases a motor vehicle
from a retail lessor by entering into a retail lease agreement.
(16) 'Retail lessor' means a motor vehicle dealer who transfers
an interest in or supplies a motor vehicle to a retail lessee,
regardless of whether or not the motor vehicle dealer is
identified as the retail lessor on the retail lease
agreement. + }
{ - (12) 'Retail seller' or 'seller' means a person who sells
a motor vehicle to a retail buyer pursuant to a retail
installment contract. - }
{ - (13) - } { + (17) + } 'Time sale price' means the
aggregate of the cash sale price of the motor vehicle, the
amount, if any, included for insurance and other benefits,
official fees and the finance charge.
SECTION 2. ORS 83.820 is amended to read:
83.820. (1) In any contract for the sale or lease of { + motor
vehicles on any form of credit, or of + } consumer goods or
services on credit { + , + } entered into between a { + motor
vehicle dealer, + } retail seller { + or retail lessor + } and a
retail buyer { + or retail lessee + }, such contract, note or
any instrument or evidence of indebtedness of the buyer { + or
lessee + } shall have printed on the face thereof the words
'consumer paper,' and such contract, note, instrument or evidence
of indebtedness with the words 'consumer paper' printed thereon
shall not be a negotiable instrument within the meaning of ORS
chapter 73. However, this section shall have no force or effect
on the negotiability of any contract, promissory note, instrument
or other evidence of indebtedness owned or guaranteed or insured
by any state or federal governmental agency even though said
contract, note, instrument or other evidence of indebtedness
shall contain the wording required by this subsection.
(2) Notwithstanding the absence of such notice on a contract,
note, instrument or evidence of indebtedness arising out of a
consumer credit sale { + , + } { - or - } consumer lease { +
or the sale or lease of a motor vehicle on any form of credit + }
as described in this section, an assignee of the rights of the
{ + motor vehicle dealer, + } seller or lessor is subject to all
claims and defenses of the buyer or lessee against the { + motor
vehicle dealer, + } seller { + + }or lessor arising out of the
sale or lease. Any agreement to the contrary shall be of no force
Enrolled House Bill 2211 (HB 2211-INTRO) Page 3
or effect in limiting the rights of a consumer under this
section. The assignee's liability under this section may not
exceed the amount owing to the assignee at the time the claim or
defense is asserted against the assignee. The restrictions
imposed hereby shall not apply with respect to any promissory
note, contract, instrument or other evidence of indebtedness
owned or guaranteed or insured by any state or federal
governmental agency even though said note, contract, instrument
or other evidence of indebtedness shall contain the words
required by subsection (1) of this section.
(3) An assignee of 'consumer paper' who in good faith enforces
a security interest in property held by the buyer or lessee shall
not be liable to such buyer or lessee for punitive damages in an
action for wrongful repossession. The fact that a { + motor
vehicle dealer, + } seller or lessor has broken the warranties of
the { + motor vehicle dealer, + } seller or lessor with regard
to the property sold or leased shall not, of itself, make an
assignee's repossession wrongful.
(4) Notwithstanding the absence of notice as provided in
subsection (1) of this section, an assignee of the rights of the
{ + motor vehicle dealer, + } seller or lessor who
{ - loans - } { + lends + } money to the buyer or lessee for
the purpose of paying off the amount owing to the assignee under
the contract, note, instrument or evidence of indebtedness is
subject to all claims and defenses of the buyer or lessee against
the { + motor vehicle dealer, + } seller or lessor arising out
of the sale or lease. The assignee's liability under this
subsection may not exceed the amount that would be owing to the
{ + motor vehicle dealer, + } seller or lessor under the
contract, note, instrument or evidence of indebtedness at the
time the claim or defense is asserted had the obligation not been
paid off. Assignee shall include a parent, subsidiary or other
business entity similarly related to the assignee, and the
assignee's liability shall extend to anyone who holds the buyer's
or lessee's new instrument or evidence of indebtedness.
SECTION 3. ORS 83.850 is amended to read:
83.850. As used in ORS 83.850 and 83.860:
{ + (1) 'Financing agency,' 'motor vehicle dealer,' 'retail
lease,' 'retail lessee' and 'retail lessor' have the meanings
given those terms in ORS 83.510. + }
{ - (1) - } { + (2) + } 'Goods' has the meaning for that
term provided in ORS 83.010.
{ - (2) - } { + (3) + } 'Motor vehicle' means a motor
vehicle as defined in ORS 83.510 purchased primarily for
personal, family or household purposes and not primarily for
business or commercial purposes.
{ - (3) - } { + (4) + } A loan is made 'in close connection
with a sale of goods or motor vehicles' if:
(a) The lender directly or indirectly controls, is controlled
by or is under common control with the seller { + or motor
vehicle dealer + }, unless the relationship is remote and is not
a factor in the transaction; { - or - }
(b) The lender gives a commission, rebate or credit in any form
to a seller { + or motor vehicle dealer + } who refers the
borrower to the lender, other than payment of the proceeds of the
loan jointly to the seller { + or motor vehicle dealer + } and
the borrower;
{ - or - }
(c) The lender is related to the seller { + or motor vehicle
dealer + } by blood or marriage; { - or - }
Enrolled House Bill 2211 (HB 2211-INTRO) Page 4
(d) The seller { + or motor vehicle dealer + } directly and
materially assists the buyer in obtaining the loan; { - or - }
(e) The seller { + or motor vehicle dealer + } prepares
documents
{ - which - } { + that + } are given to the lender and used
in connection with the loan; or
(f) The lender supplies documents to the seller { + or motor
vehicle dealer + } used by the consumer in obtaining the loan.
{ + (5) A lease is made or funded 'in close connection with a
retail lease of a motor vehicle' if:
(a) The retail lessor or financing agency directly or
indirectly controls, is controlled by or is under common control
of the motor vehicle dealer supplying the vehicle to the retail
lessee, unless the relationship is remote and is not a factor in
the transaction;
(b) The retail lessor or financing agency gives a commission,
rebate, financing reserve or credit in any form to a motor
vehicle dealer who refers the retail lessee to the retail lessor
or financing agency, other than payment of the proceeds of the
lease;
(c) The retail lessor or financing agency is related to the
motor vehicle dealer by blood or marriage;
(d) The motor vehicle dealer directly or materially assists the
retail lessee in obtaining the lease;
(e) The motor vehicle dealer prepares documents that are given
to the retail lessor or financing agency and used in connection
with the lease; or
(f) The retail lessor or financing agency supplies documents to
the motor vehicle dealer used by the retail lessee in obtaining
the lease. + }
{ - (4) - } { + (6) + } Credit extended pursuant to a
credit card issued by a lender is not a loan 'in close connection
with a sale of goods or motor vehicles' { + or a loan 'in close
connection with a retail lease of a motor vehicle' + } unless the
credit card is issued contemporaneously with the extension of the
credit.
SECTION 4. ORS 83.860 is amended to read:
83.860. (1) If a lender makes a loan in close connection with
the sale of goods or motor vehicles, the lender is subject to all
claims and defenses of the borrower that the borrower as buyer
has against the seller { + or motor vehicle dealer + } arising
out of the sale, notwithstanding any agreement to the contrary.
However, the lender's liability to the borrower shall not exceed
the amount owing to the lender, exclusive of unearned interest,
at the time the claim or defense is asserted.
(2) If a lender who makes a loan in close connection with a
sale of goods or motor vehicles negotiates { + or assigns + }
any note or other instrument taken as evidence of the obligation
of the borrower, the holder of the note or other instrument shall
be subject to the claims or defenses of the borrowers set forth
in subsection (1) of this section. However, the liability of the
holder of the note or other instrument to the borrower shall not
exceed the amount owing to the lender exclusive of unearned
interest at the time the claim or defense is asserted.
{ + (3) If a financing agency makes or funds a lease in close
connection with a retail lease of a motor vehicle, the financing
agency is subject to all claims and defenses that the retail
lessee has against the retail lessor arising out of the retail
lease, notwithstanding any agreement to the contrary. However,
the financing agency's liability to the retail lessee shall not
Enrolled House Bill 2211 (HB 2211-INTRO) Page 5
exceed the amount owing to the financing agency, exclusive of
unearned interest, at the time the claim or defense is asserted.
(4) If a financing agency that makes or funds a loan in close
connection with a retail lease of a motor vehicle negotiates or
assigns any note or other instrument taken as evidence of the
obligation of the retail lessee, the holder of the note or other
instrument shall be subject to the claims or defenses of a retail
lessee set forth in subsection (3) of this section. However, the
liability of the holder of the note or other instrument to a
retail lessee shall not exceed the amount owing to the financing
agency exclusive of unearned interest at the time the claim or
defense is asserted. + }
SECTION 5. ORS 83.520 is amended to read:
83.520. (1) A retail installment contract shall be in writing,
shall contain all the agreements of the parties, shall contain
the names of the { - seller - } { + motor vehicle dealer + }
and the buyer, the place of business of the { - seller - }
{ + motor vehicle dealer + }, the residence or place of
business of the buyer as specified by the buyer and a description
of the motor vehicle including its make, year model, model and
identification numbers or marks, and shall be signed by the buyer
and the { - seller - } { + motor vehicle dealer + }.
(2) The printed portion of the contract shall be in at least
8-point type. The contract shall contain in printing or writing
of a size equal to at least 10-point bold type, the following:
(a) Both at the top of the contract and directly above the
space reserved for the signature of the buyer, the words 'RETAIL
INSTALLMENT CONTRACT';
(b) A specific statement that liability insurance coverage for
bodily injury and property damage caused to others is not
included, if that is the case; and
(c) The following notice:
_________________________________________________________________
NOTICE TO THE BUYER
Do not sign this contract before you read it or if it contains
any blank space, except that:
(1) If delivery of the motor vehicle or mobile home is to be
made to you after this contract is signed, the serial number or
other identifying information and the due date of the first
installment may be filled in at the time of delivery; and
(2) If the name of the financing agency is not known at the
time the contract is executed, the name of the financing agency
may be inserted in the contract on or about the date the name of
the financing agency is known.
You are entitled to a copy of this contract.
You have the right to pay off in advance the full amount due
and to obtain a partial refund of the finance charge.
_________________________________________________________________
(3) The contract shall contain the following items:
(a) The cash sale price of the motor vehicle which is the
subject matter of the retail installment sale.
(b) The amount of the buyer's down payment, itemizing the
amounts, if any, paid or credited in money or in goods and
containing a brief description of the goods traded in.
(c) The difference between the items set forth in paragraphs
(a) and (b) of this subsection.
(d) The amount, if any, included for insurance and other
benefits, specifying the coverages and benefits. For purposes of
this paragraph, 'other benefits' includes any amounts actually
paid or to be paid by the { - seller - } { + motor vehicle
Enrolled House Bill 2211 (HB 2211-INTRO) Page 6
dealer + } pursuant to an agreement with the buyer to discharge a
security interest, lien or lease interest on property traded in.
(e) The amount, if any, of official fees { - , as defined in
ORS 83.510 (7) - } .
(f) The principal balance, which is the sum of the items set
forth in paragraphs (c), (d) and (e) of this subsection.
(g) The amount of the finance charge.
(h) The time balance, which is the sum of the items set forth
in paragraphs (f) and (g) of this subsection.
(i) The time sale price.
(j) A plain and concise statement of the amount in dollars of
each installment or future payment to be made by the buyer, the
number of installments required, and the date or dates at which,
or period or periods in which, the installments are due.
(4) The contract may contain additional items to explain the
calculations involved in determining the stated time balance to
be paid by the buyer.
SECTION 6. ORS 83.540 is amended to read:
83.540. The { - seller - } { + motor vehicle dealer + }
shall deliver to the buyer, or mail to the buyer at the address
shown on the contract, a copy of the contract signed by the
{ - seller - } { + motor vehicle dealer + }. Until the
{ - seller - } { + motor vehicle dealer + } does so, a buyer
who has not received delivery of the motor vehicle shall have an
unconditional right to cancel the contract and to receive
immediate refund of any amount paid and redelivery of all goods
delivered or traded in to the { - seller - } { + motor
vehicle dealer + } on account of or in contemplation of the
contract. An acknowledgment by the buyer of delivery of a copy of
the contract shall be printed or written in a size equal to at
least 10-point bold type and, if contained in the contract, shall
also appear directly above the legend required above the buyer's
signature by ORS 83.520 (2)(a).
SECTION 7. ORS 83.560 is amended to read:
83.560. A { - retail seller - } { + motor vehicle
dealer + } may, in a retail installment contract, contract for
and charge, receive and collect a finance charge agreed upon by
the { - seller - } { + motor vehicle dealer + } and buyer.
SECTION 8. ORS 83.565 is amended to read:
83.565. (1) Notwithstanding any other provision of ORS 83.510
to 83.680 and 83.820 to 83.895, a { - retail seller - } { +
motor vehicle dealer + }, in a retail installment contract, may
contract for and charge, receive and collect a finance charge
computed by the actuarial method.
(2) When a retail installment contract provides for a finance
charge computed by the actuarial method:
(a) The retail installment contract may provide for any other
charge, cost or fee allowed under ORS 83.510 to 83.680 and 83.820
to 83.895, in addition to the finance charge.
(b) The amount to be disclosed as the finance charge and used
as the finance charge component of the other amounts disclosed
pursuant to ORS 83.510 to 83.680 and 83.820 to 83.895 shall be
the amount of the finance charge to be paid assuming all payments
are made exactly as agreed.
(c) The retail installment contract for the sale of a mobile
home may provide that the holder may refuse to accept prepayments
of less than the entire amount owed under the retail installment
contract if the prepayments:
(A) Are tendered on dates other than a specified date each
month; and
Enrolled House Bill 2211 (HB 2211-INTRO) Page 7
(B) Are not in amounts equal to the principal portion of one or
more of the earliest unmatured monthly installments.
(d) The contract shall contain the following notice in printing
or writing of a size equal to at least 10-point bold type, in
lieu of the notice required by ORS 83.520 (2)(c):
_________________________________________________________________
NOTICE TO THE BUYER
Do not sign this contract before you read it or if it contains
any blank space, except that:
(1) If delivery of the motor vehicle or mobile home is to be
made to you after this contract is signed, the serial number or
other identifying information and the due date of the first
installment may be filled in at the time of delivery; and
(2) If the name of the financing agency is not known at the
time the contract is executed, the name of the financing agency
may be inserted in the contract on or about the date the name of
the financing agency is known.
You are entitled to a copy of this contract.
You have the right to pay in advance the full amount due and if
you do so you may save a portion of the finance charge.
_________________________________________________________________
(e) The refund credit provisions of ORS 83.620 shall not apply.
SECTION 9. ORS 83.580 is amended to read:
83.580. (1) The amount, if any, included for automobile
insurance, shall not exceed the premiums chargeable in accordance
with rate filings made by the insurer with the Director of the
Department of Consumer and Business Services for such insurance.
(2) The amount, if any, included for life, health and accident
or other insurance, other than automobile insurance, shall not
exceed the premiums charged by the insurer.
(3) Except as provided in ORS 743.377, the { - seller - }
{ + motor vehicle dealer + } or financing agency, if an amount
for automobile or other insurance on the motor vehicle is
included in a retail installment contract, shall within 30 days
after execution of the retail installment contract send or cause
to be sent to the buyer a policy or policies or certificate of
insurance, written by an insurance company authorized to do
business in this state, clearly setting forth the amount of the
premium, the kind or kinds of insurance and the scope of the
coverage and all the terms, exceptions, limitations, restrictions
and conditions of the contract or contracts of insurance. The
buyer of a motor vehicle under a retail installment contract
shall have the privilege of purchasing such insurance from an
agent of the selection of the buyer and of selecting an insurance
company acceptable to the
{ - seller - } { + motor vehicle dealer + }; provided,
however, that the inclusion of the insurance premium in the
retail installment contract when the buyer selects the agent or
company, shall be optional with the { - seller - } { + motor
vehicle dealer + } and in such case the { - seller - } { +
motor vehicle dealer + } or financing agency shall have no
obligation to send, or cause to be sent, to the buyer the policy
or certificate of insurance.
(4) If an insurance policy or certificate that was obtained for
an amount included in the retail installment contract is
canceled, the unearned insurance premium refund received by the
holder of the contract shall be credited to the last maturing
installments of the retail installment contract except to the
extent applied toward payment for similar insurance protecting
Enrolled House Bill 2211 (HB 2211-INTRO) Page 8
the interests of the buyer or of the buyer and the holder of the
contract.
SECTION 10. ORS 83.620 is amended to read:
83.620. (1) Notwithstanding the provisions of a retail
installment contract to the contrary, the buyer may pay in full
at any time before maturity the obligation contained in the
retail installment contract. Upon the premature payment, the
buyer shall receive a refund credit. The amount of the refund
credit shall not be less than the total finance charge to
maturity provided for in the contract, less the greater of:
(a) Ten percent of the amount financed or $75, whichever is
less; or
(b) Either of the following, at the discretion of the
{ - seller - } { + motor vehicle dealer + } or holder:
(A) The finance charge earned to the date of prepayment,
computed by applying the effective rate on the contract to the
actual principal balances outstanding, for the periods of time
such balances were actually outstanding. In determining the
effective rate, the holder may apply to the scheduled payments
the actuarial method by which each scheduled payment is applied
first to the accrued and unpaid finance charges and any amount
remaining is applied to the reduction of the principal balance.
(B) The finance charge earned to the installment due date
nearest the date of prepayment, computed by applying the
effective rate on the contract to the actual principal balances
outstanding, for the periods of time the balances were actually
outstanding. For purposes of rebate computations under this
subparagraph, the installment due date preceding the date of
prepayment shall be considered to be nearest if prepayment occurs
15 days or less after that installment date. If prepayment occurs
more than 15 days after the preceding installment due date, the
next succeeding installment due date shall be considered to be
nearest to the date of prepayment. In determining the effective
rate, the holder may apply to the scheduled payments the
actuarial method, by which each scheduled payment is applied
first to the accrued and unpaid finance charges and any amount
remaining is applied to reduction of the principal balance.
(2) When the amount of the credit for premature payment is less
than $2, no refund need be made.
(3) This section does not prohibit the holder of a retail
installment contract from collecting any charge, cost or fee
under ORS 83.590.
SECTION 11. ORS 83.650 is amended to read:
83.650. (1) No retail installment contract shall require or
entail the execution, by the buyer, of any note or series of
notes, which when separately negotiated will cut off as against
third parties any right of action or defense which the buyer may
have against the { - seller - } { + motor vehicle dealer + }.
(2) The rights of a holder in due course of any negotiable
instrument executed contrary to subsection (1) of this section
are not impaired by reason of the violation of subsection (1) of
this section, but the buyer may bring an action against the
{ - seller - } { + motor vehicle dealer + } for the recovery
of any loss or expense incurred by reason of the violation of
subsection (1) of this section. The buyer's action may be joined
with any other right of action the buyer has against the
{ - seller - } { + motor vehicle dealer + } arising out of the
installment sale. The court may award reasonable attorney fees to
the prevailing party in an action under this section.
SECTION 12. ORS 83.670 is amended to read:
Enrolled House Bill 2211 (HB 2211-INTRO) Page 9
83.670. (1) No provision in a retail installment contract for
confession of judgment, power of attorney therefor, or wage
assignment is enforceable.
(2) No provision in a retail installment contract
{ - which - } { + that + } authorizes a { - seller - }
{ + motor vehicle dealer + } or holder of the contract or other
person acting on the behalf of the { - seller - } { + motor
vehicle dealer + } or holder to enter upon the buyer's premises
unlawfully, or to commit any breach of the peace in the
repossession of a motor vehicle is enforceable.
(3) No provision in a retail installment contract by which the
buyer waives any right of action against the { - seller - }
{ + motor vehicle dealer + } or holder of the contract, or other
person acting on the behalf of the { - seller - } { + motor
vehicle dealer + } or holder, for any illegal act committed in
the collection of payments under the contract or in the
repossession of the motor vehicle is enforceable.
(4) No provision in a retail installment contract by which the
buyer executes a power of attorney appointing the
{ - seller - } { + motor vehicle dealer + } or holder of the
contract, or other person acting on the behalf of the
{ - seller - } { + motor vehicle dealer + } or holder, as the
buyer's agent in collection of payments under the contract or in
the repossession of the motor vehicle, is enforceable.
(5) No provision in a retail installment contract relieving the
{ - seller - } { + motor vehicle dealer + } from liability for
any legal remedies { - which - } { + that + } the buyer may
have had against the { - seller - } { + motor vehicle
dealer + } under the contract, or any separate instrument
executed in connection therewith, is enforceable.
SECTION 13. ORS 83.811 is amended to read:
83.811. (1) The disclosure provisions of ORS 83.010 to 83.680
{ - , 83.820 - } and 83.990 shall not apply to any { + motor
vehicle dealer or + } retail seller entering into a retail
installment transaction when:
(a) The { + motor vehicle dealer or + } retail seller
regularly enters into retail installment transactions; and
(b) The terms of the retail installment transaction provide for
payment of a service charge or finance charge or for payment by
written agreement in more than four installments.
(2) A { + motor vehicle dealer or + } retail seller regularly
enters into retail installment transactions only if the
{ + motor vehicle dealer or + } retail seller entered into
retail installment transactions more than 25 times in the
preceding calendar year, or more than five times in the preceding
calendar year for retail installment transactions secured by a
dwelling. If a { + motor vehicle dealer or + } retail seller
does not meet these numerical standards in the preceding calendar
year, the numerical standards shall be applied to the current
calendar year.
SECTION 14. ORS 83.813 is amended to read:
83.813. (1) The disclosure provisions of ORS 83.010 to 83.680
{ - , 83.820 - } and 83.990 shall not apply to the assignee of
any retail installment contract when:
(a) The assignor is a { + motor vehicle dealer or + } retail
seller;
(b) The assignee regularly extends credit to natural persons
primarily for personal, family or household purposes;
Enrolled House Bill 2211 (HB 2211-INTRO) Page 10
(c) The credit is subject to a service charge or finance charge
or is payable by a written agreement in more than four
installments; and
(d) The retail installment contract is in the form regularly
used by the assignee in similar transactions.
(2) The assignee of a { + motor vehicle dealer or + } retail
seller regularly extends credit to natural persons primarily for
personal, family or household purposes only if the assignee
extended credit more than 25 times in the preceding calendar year
or more than five times in the preceding calendar year for
transactions secured by a dwelling. If the assignee does not meet
these numerical standards in the preceding calendar year, the
numerical standards shall be applied to the current calendar
year.
SECTION 15. ORS 83.875 is amended to read:
83.875. As used in ORS 83.875, 83.880, 83.890 and 83.895:
(1) 'Goods' has the meaning for that term provided in ORS
83.010.
{ - (2) 'Services' has the meaning for that term provided in
ORS 83.010. - }
{ - (3) - } { + (2) + } 'Motor vehicles' means a motor
vehicle as defined in ORS 83.510, purchased primarily for
personal, family or household purposes and not primarily for
business or commercial purposes.
{ - (4) - } { + (3) + } 'Retail charge agreement' has the
meaning for that term provided by ORS 83.010, and includes a
revolving charge agreement or charge agreement.
{ - (5) - } { + (4) + } 'Retail installment contract' or
'contract ' means a retail installment contract for the sale of
motor vehicles, goods or services.
{ + (5) 'Seller' includes a motor vehicle dealer as defined
in ORS 83.510.
(6) 'Services' has the meaning given that term in ORS
83.010. + }
SECTION 16. { + The amendments to ORS 83.510, 83.520, 83.540,
83.560, 83.565, 83.580, 83.620, 83.650, 83.670, 83.811, 83.813,
83.820, 83.850, 83.860 and 83.875 by sections 1 to 15 of this
2001 Act apply to retail lease agreements entered into on or
after the effective date of this 2001 Act. + }
----------
Passed by House February 21, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 28, 2001
...........................................................
President of Senate
Enrolled House Bill 2211 (HB 2211-INTRO) Page 11
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2211 (HB 2211-INTRO) Page 12