71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 3915
Sponsored by Representative WILLIAMS (at the request of Oregon
Association of County Clerks)
CHAPTER ................
AN ACT
Relating to county clerks; amending ORS 86.110, 87.045, 87.050,
371.635, 371.650 and 656.566.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 86.110 is amended to read:
86.110. (1) Whenever a promissory note secured by mortgage on
real property is transferred by indorsement without a formal
assignment of the mortgage, and the mortgage is recorded, the
mortgage, upon payment of the promissory note, may be discharged
of record by the owner and holder of the promissory note making
and filing with the { + appropriate + } recording officer
{ - in whose custody the record of such mortgage is, - } a
certificate, verified by oath, { + proving the satisfaction of
mortgage and + }declaring, in substance, that the owner and
holder is the owner and holder of the note secured by
{ - said - } { + the + } mortgage by indorsement of the
mortgagee { - , - } and that the note has been fully paid
{ - , - } and proving that fact to the satisfaction of the
recording officer { - , and delivering the original note to such
officer - } .
(2) Upon receiving the certificate { - and original note - }
, the recording officer shall { + record the document and index
the document as a satisfaction of mortgage. + } { - enter them
in full length upon the record book of mortgages, and such
entry - } { + The record + } shall have the same effect as a
deed of release of the mortgagee duly acknowledged and recorded.
SECTION 2. ORS 87.050 is amended to read:
87.050. The recording officer of each county shall record all
notices and claims of lien required to be filed by the provisions
of ORS 87.001 to 87.060 and 87.075 to 87.093 in { + the
statutory lien record. + } { - a book kept for that purpose,
and titled 'Construction Lien Book.' - } The notices and claims
recorded in the
{ - Construction Lien Book - } { + statutory lien record + }
shall be indexed as deeds and other conveyances are required by
law to be indexed and shall constitute a public record of the
county.
SECTION 3. ORS 371.635 is amended to read:
371.635. (1) If the number of objections mentioned in ORS
371.630 is not received, the county court may, by order
describing the land to be assessed, direct the improvement to be
made by contract, or by force account. If by contract, it shall
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be awarded in the same manner as provided for other contracted
county road improvement.
(2) The county court shall record the order for the improvement
with the county clerk. The recorded order is notice that the land
described in the order is subject to a lien of an assessment for
the cost of the improvement, in an amount to be determined later
by an order of the county court. The county clerk shall indorse
upon the order the date of the filing thereof, and shall record
and index the same in { - a lien docket in the office of the
county clerk - } { + the County Clerk Lien Record + }.
(3) If the proposed improvement described in the order of the
county court is not commenced within two years after the order
for the improvement is recorded, the county court may by a new
order vacate its former order for the proposed improvement. The
county court shall record with the county clerk the order
vacating the former order for the proposed improvement. Thereupon
the land described shall be free of such lien and the effect of
the former order. The county clerk shall indorse upon the new
order the date of the filing thereof, and shall record and index
the same in the
{ - lien docket referred to in subsection (2) of this
section - } { + County Clerk Lien Record + }.
SECTION 4. ORS 371.650 is amended to read:
371.650. (1) The county court shall certify a list and
description of the ownership, stating the amount of assessment
against each individual parcel of land, and shall record the
order with the county clerk, who shall indorse thereon the date
of the filing thereof and record and index it in the { - lien
docket referred to in ORS 371.635 (2) - } { + County Clerk Lien
Record + }.
(2) The assessments and interest are a lien upon the land
against which the same are assessed from the date of the filing
with the county clerk of the order of the county court for the
improvement, as provided in ORS 371.635. Each parcel of land is
deemed to be benefited by the improvement to the full amount of
the assessment levied thereon. No transfer, sale or division of
any such parcel, or change in the legal description thereof, in
any way divests the lien from the original parcel and the whole
thereof. Failing to enter the name of the owner or a mistake in
the name of the owner does not in any way render void any
assessment and does not in any way affect the lien on the land
described. The lien has priority over all other liens and
encumbrances whatsoever, except tax liens.
(3) Upon payment of the assessment in full, the county court
shall satisfy the same by { - a notation in the lien docket
referred to in ORS 371.635 (2) - } { + recording the
satisfaction of lien in the County Clerk Lien Record + }, and the
parcel of land charged with such assessment is thereby discharged
from the lien.
SECTION 5. ORS 656.566 is amended to read:
656.566. (1) If any employer liable for the payment of
premiums, fees and assessments to the Industrial Accident Fund is
placed in default as provided by ORS 656.560, the amount due the
fund, including interest and penalty, is a lien in favor of the
State Accident Insurance Fund Corporation upon all property,
whether real or personal, belonging to such employer.
(2) The lien attaches upon the filing of a notice of claim of
lien with the county clerk of the county in which the property is
located. The notice of lien claim shall contain a true statement
of the demand, after deducting all just credits and offsets, and
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the default of such employer. The county clerk shall record the
claim of lien in { - a book kept for that purpose, which record
shall be indexed as deeds and other conveyances are required by
law to be indexed - } { + the County Clerk Lien Record + }
{ - , - } and { - for which the county clerk - } shall
receive { - the same fees as are allowed by law for recording
deeds and other instruments - } { + the fee provided in ORS
205.320 + }.
(3) The employer against whose property the lien has been filed
may cause the property to be released by filing with the county
clerk of the county wherein the lien is recorded a bond in a sum
double the amount claimed in the lien, executed by a surety
company licensed to do business in Oregon or by two freeholders
of this state, having the qualifications of bail upon arrest, to
be approved by the circuit judge of the district in which the
lien is filed, or in the event of absence from the county in
which the lien is filed, then by the county judge of said county,
running to the State Accident Insurance Fund Corporation and
conditioned for the payment of all damages, costs, charges and
disbursements that may be recovered by the State Accident
Insurance Fund Corporation against the employer or that may be
found to be a lien upon or against the property of such employer.
The clerk shall { - issue to such employer a certificate
stating - } { + record evidence + } that the bond is
substituted in lieu of the property of the employer and that the
lien on the property is forever released and discharged. { - A
marginal entry of the release and bond shall be made in the lien
docket containing the original record of statement of claim. - }
If the State Accident Insurance Fund Corporation establishes the
validity of its lien by a suit to foreclose the lien, it shall be
entitled to judgment or decree against the sureties upon the
bond.
(4) The lien created by this section may be foreclosed by a
suit in the circuit court in the manner provided by law for the
foreclosure of other liens on real or personal property. Unless a
suit is instituted by the State Accident Insurance Fund
Corporation to foreclose such lien within two years from the date
of filing, the lien shall expire.
(5) The lien created by this section is prior to all liens and
encumbrances recorded subsequent to the filing of notice of claim
of lien, except taxes and labor liens.
SECTION 6. ORS 87.045 is amended to read:
87.045. (1) The completion of construction of an improvement
shall occur when:
(a) The improvement is substantially complete; or
(b) A completion notice is posted and recorded as provided by
subsections (2) and (3) of this section; or
(c) The improvement is abandoned as provided by subsection (5)
of this section.
(2) When all original contractors employed on the construction
of an improvement have substantially performed their contracts,
any original contractor, the owner or mortgagee, or an agent of
any of them may post and record a completion notice. The
completion notice shall state in substance the following:
_________________________________________________________________
Notice hereby is given that the building, structure or other
improvement on the following described premises, (insert the
legal description of the property including the street address,
if known) has been completed.
Enrolled House Bill 3915 (HB 3915-INTRO) Page 3
All persons claiming a lien upon the same under the
Construction Lien Law hereby are notified to file a claim of lien
as required by ORS 87.035.
Dated ____, 2_
________
Original Contractor, Owner or Mortgagee
P. O. Address: ____
_________________________________________________________________
(3) Any notice provided for in this section shall be posted on
the date it bears in some conspicuous place upon the land or upon
the improvement situated thereon. Within five days from the date
of posting the notice, the party posting it or the agent of the
party shall record with the recording officer of the county in
which the property, or some part thereof, is situated, a copy of
the notice, together with an affidavit indorsed thereon or
attached thereto, made by the person posting the notice, stating
the date, place and manner of posting the notice. The recording
officer shall indorse upon the notice the date of the filing
thereof and record and index the notice in the { - Construction
Lien Book - } { + statutory lien record + } as required by ORS
87.050.
(4) Anyone claiming a lien created under ORS 87.010 on the
premises described in a completion or abandonment notice for
labor or services performed and materials or equipment used prior
to the date of the notice shall perfect the lien pursuant to ORS
87.035.
(5) Except as provided in subsection (6) of this section, an
improvement is abandoned:
(a) On the 75th day after work on the construction of the
improvement ceases; or
(b) When the owner or mortgagee of the improvement or an agent
of either posts and records an abandonment notice in writing
signed by either the owner or the mortgagee.
(6) When work on the construction of an improvement ceases, if
the owner or mortgagee of the improvement intends to resume
construction and does not want abandonment to occur, the owner or
mortgagee or an agent of either shall post and record a
nonabandonment notice in writing signed by either the owner or
mortgagee. The notice of nonabandonment shall be posted and
recorded not later than the 74th day after work on the
construction ceases. The notice of nonabandonment may be renewed
at intervals of 150 days by rerecording the notice.
(7) The notices of abandonment or nonabandonment described in
subsections (5) and (6) of this section shall state in substance:
(a) That the improvement is either abandoned or not abandoned.
(b) The legal description of the property, including the street
address if known, on which the improvement is located.
(c) In the case of an abandonment notice, that all persons
claiming a lien on the improvement should file a claim of lien
pursuant to ORS 87.035.
(d) In the case of a nonabandonment notice, the reasons for the
delay in construction.
(e) The date of the notice.
(f) The address of the person who signs the notice.
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Enrolled House Bill 3915 (HB 3915-INTRO) Page 4
Passed by House April 20, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 1, 2001
...........................................................
President of Senate
Enrolled House Bill 3915 (HB 3915-INTRO) Page 5
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 3915 (HB 3915-INTRO) Page 6