71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3466
House Bill 3485
Sponsored by Representatives KRIEGER, T SMITH
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Creates timber producers lien. Requires recording officer of
county in which timber purchaser has primary place of business to
maintain timber producers lien records. Specifies attachment date
for timber producers lien.
A BILL FOR AN ACT
Relating to timber producers liens.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 9 of this 2001 Act are added to
and made a part of ORS chapter 87. + }
SECTION 2. { + As used in sections 2 to 9 of this 2001 Act:
(1) 'Purchaser' includes a wood products processor or
manufacturer and the agent of any purchaser.
(2) 'Timber' has the meaning given that term in ORS
321.005. + }
SECTION 3. { + (1) A timber producer that delivers or
transfers timber for consideration to a purchaser has a lien for
the contract price of the timber, or for the reasonable value of
the timber if there is no contract price. The lien created by
this section attaches to all timber, whether in a raw or
processed condition, delivered or transferred to the purchaser by
a timber producer and to all other inventory, wood products,
proceeds and accounts receivable of the purchaser. The lien on
the timber, inventory, wood products, proceeds or accounts
receivable attaches on the date physical possession of the timber
is delivered or transferred by the timber producer to the
purchaser.
(2) A timber producer that claims a lien under subsection (1)
of this section need not file any notice in order to perfect the
lien. The timber producer must file a notice of lien as provided
in section 4 of this 2001 Act to extend the lien beyond the
normal expiration date.
(3) An agreement by a timber producer purporting to waive the
right to file notice under section 4 of this 2001 Act of a lien
created by this section is void as contrary to public policy. + }
SECTION 4. { + (1) A lien created under section 3 of this 2001
Act expires no later than the end of the 45th day after the date
that the final payment to the timber producer is originally due,
unless the producer extends the lien as provided in subsection
(2) of this section. If the timber producer extends the lien, the
lien expires no later than the 225th day after the date that the
final payment to the producer is originally due.
(2) A timber producer may extend a lien created under section 3
of this 2001 Act by filing a notice of lien with the recording
officer of the county where the purchaser maintains the primary
place of business. The timber producer may file the notice only
during the period after the date that payment for the timber is
originally due and no later than the 45th day after the date that
the final payment for the timber is due. The notice must be
supported by affidavit and contain:
(a) A true statement of the timber producer's demand after
deducting all credits and offsets;
(b) The name of the purchaser that received the timber to be
charged with the lien;
(c) A description of the timber delivered or transferred by the
timber producer including the approximate dimensions and mix of
tree species to facilitate identification of the timber;
(d) A statement that the amount claimed is a true and bona fide
existing debt as of the date of the filing of the notice of lien;
and
(e) The date that the final payment to the producer was
originally due.
(3) If a timber producer files a notice of lien under this
section, the producer shall send notice to all persons that have
filed a financing statement under ORS chapter 79 that perfects a
security interest in all or part of the same timber, inventory,
wood products, proceeds or accounts receivable. The notice to
those persons must provide the same information contained in the
notice of lien required by subsection (2) of this section and be
sent by certified mail, return receipt requested.
(4) The timber producer must send notice to other persons as
required by subsection (3) of this section no later than the 20th
day after filing the notice of lien. If the timber producer does
not send a person notice within the time allowed, the lien
created under section 3 of this 2001 Act becomes subordinate to
that person's perfected security interest in the timber,
inventory, wood products, proceeds or accounts receivable of the
purchaser.
(5) For purposes of this section, final payment to the timber
producer for timber is due:
(a) On the date specified for payment in the contract between
the purchaser and the producer; or
(b) If there is no contract or no date of payment is specified
in the contract, two business days after the purchaser takes
delivery of the timber.
(6) Notwithstanding ORS 174.120, for purposes of this section
and sections 8 and 9 of this 2001 Act, if the last day of the
period for performing an act is a Saturday, or a legal holiday as
specified in ORS 187.010 and 187.020, the period runs until the
end of the next day that is not a Saturday or legal holiday. + }
SECTION 5. { + Except for tax liens, and except as provided in
ORS 87.146 (1)(c) and section 4 (4) of this 2001 Act, the class
of lien created by section 3 of this 2001 Act is prior and
superior to all other classes of lien or any classes of security
interest in timber, inventory, wood products, proceeds or
accounts receivable, without regard to whether those other liens
or security interests attached to the timber, inventory, wood
products, proceeds or accounts receivable before or after the
date on which a lien created by section 3 of this 2001 Act
attaches. Except as provided in section 4 (4) of this 2001 Act,
all liens of the class created under section 3 of this 2001 Act,
regardless of the date of attachment or the date of notice of
lien, are of equal priority and payable pro rata in proportion to
the size of each lien. + }
SECTION 6. { + The recording officer of the county shall
record the notices made under section 4 of this 2001 Act. The
record shall be indexed in the same manner as the record of deeds
and mortgages. The recording officer shall charge and collect, in
advance, for the benefit of the county, the fee established in
ORS 205.320. + }
SECTION 7. { + (1) The lien created by section 3 of this 2001
Act shall be foreclosed in the manner provided by law for the
foreclosure of liens generally.
(2) In all suits under sections 2 to 9 of this 2001 Act, the
court shall, upon entering judgment for the plaintiff, allow as a
part of the costs all moneys paid for the filing and recording of
the lien, and a reasonable amount for attorney fees at trial and
on appeal. + }
SECTION 8. { + A lien created under section 3 of this 2001 Act
expires unless suit to foreclose the lien is brought in an
appropriate court no later than the 45th day after the date final
payment to the timber producer is originally due, or if the
producer extends the lien by filing a notice of lien under
section 4 of this 2001 Act, no later than the 225th day after the
date final payment to the producer is originally due. + }
SECTION 9. { + (1) When a timber producer receives full
payment for timber, if the producer has filed a notice under
section 4 (2) of this 2001 Act to extend a lien or under section
7 of this 2001 Act to foreclose a lien, the producer shall file
with the recording officer of the county in which the notice of
lien is recorded a certificate declaring that full payment has
been received from the purchaser and that the lien is discharged.
(2) Upon receiving the certificate, the recording officer shall
enter the certificate in the book kept to record the lien.
(3) If a timber producer that receives full payment for timber
fails to file a certificate described in this section on or
before the 10th day after receiving a request for filing from a
purchaser, the producer is liable to the purchaser in the sum of
$100 damages and for all actual damages caused by the failure, to
be recovered in an action at law. + }
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