71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
SA to SB 120
LC 580/SB 120-2
SENATE AMENDMENTS TO
SENATE BILL 120
By COMMITTEE ON JUDICIARY
February 28
On page 1 of the printed bill, line 4, after 'against ' insert
'certain' and delete 'trust' and insert 'trusts'.
In line 5, after 'trust' insert 'described in subsection (2) of
this section'.
After line 7, insert:
' (2) Sections 1 to 12 of this 2001 Act apply only if:
' (a) A claim is made against assets of a trust, as defined in
ORS 128.005;
' (b) The trust came into existence during the grantor's
lifetime and was revocable by the grantor at any time after the
trust was created and before the death of the grantor;
' (c) The claim is based on the debts or liabilities of the
grantor; and
' (d) The claim is made against the assets of the trust after
the death of the grantor.'.
In line 8, delete '(2)' and insert '(3)' and after ' trust'
insert 'described in subsection (2) of this section'.
In line 10, delete '(1)'.
In line 11, delete 'settlor' and insert 'grantor' and after
'trust' insert 'described in section 1 (2) of this 2001 Act'.
In line 13, delete 'Except as provided in subsection (2) of
this'.
In line 14, delete 'section,'.
In line 16, delete '(a)' and insert '(1)'.
In line 18, delete '(b)' and insert '(2)'.
Delete lines 21 through 30.
On page 2, delete line 1.
In line 5, delete 'decedent settlor' and insert ' grantor'.
In line 6, delete 'decedent settlor' and insert ' grantor'.
In line 14, delete 'decedent' and insert 'grantor'.
Delete lines 17 and 18 and insert 'or mailed a notice
containing the information required in subsection (2) of this
section to each person known by the trustee to have or to assert
a claim against the estate and to the Estate Administration Unit
of the Senior and Disabled Services Division of the Department of
Human Services. Notice under'.
In line 22, delete 'of the decedent settlor' and insert ' and
Social Security number of the grantor'.
Delete lines 28 and 29.
In line 38, after 'Act' insert 'and account for any written
evidence supporting a claim that is not produced'.
In line 42, delete 'decedent' and insert 'grantor'.
On page 3, line 1, delete 'decedent's' and insert ' grantor's'.
In line 3, delete 'trustor's' and insert 'grantor's'.
After line 13, insert:
' { + SECTION 7a. + } { + Claim on secured debt that is due.
(1) A claim on a debt due for which the creditor holds security
may be presented under sections 1 to 12 of this 2001 Act as a
claim on an unsecured debt due, or the creditor may elect to rely
entirely on the security without presentation of the claim.
' (2) If the claim is presented under this section, the claim
shall describe the security. If the security is an encumbrance
that is recorded, the encumbrance may be described by reference
to the book, page, date and place of recording.
' (3) If a claim is presented and allowed under this section,
payment shall be on the basis of the amount of the debt remaining
unpaid on the date that the claim is allowed.
' (4) If the creditor surrenders the security for a claim
presented and allowed under this section, payment shall be on the
basis of the amount allowed.
' (5)(a) If the creditor does not surrender the security for a
claim presented and allowed under this section, and the creditor
exhausts the security before receiving payment on the claim,
payment shall be on the basis of the amount allowed less the
amount realized on exhausting the security unless otherwise
provided by law.
' (b) If the creditor does not surrender the security for a
claim presented and allowed under this section, and the creditor
does not exhaust the security before receiving payment or does
not have the right to exhaust the security, payment shall be on
the basis of the amount allowed less the value of the security
determined by agreement or as the court may order.
' (6) The trustee may convey the secured property to the
creditor in consideration of the satisfaction or partial
satisfaction of the claim. + } ' .
In line 26, after the period delete the rest of the line and
line 27 and insert 'Distribution of trust assets may not be
delayed under this paragraph for more than two years after
distribution would otherwise be required by the terms of the
trust.'.
In line 34, before 'estate' insert 'trust'.
In line 45, before 'brings' insert 'requests a summary
determination or'.
On page 4, delete lines 1 through 5 and insert:
' (4) If a trustee disallows a claim submitted under sections 1
to 12 of this 2001 Act in whole or in part, the claimant, within
30 days after the date of mailing or delivery of the notice of
disallowance, may:
' (a) File a request for summary determination of the claim in
the probate court, with proof of service of a copy of the request
upon the trustee or the attorney of the trustee; or
' (b) Commence a separate action against the trustee on the
claim in the circuit court.
' (5) If the claimant fails either to request a summary
determination or commence a separate action as provided in
subsection (4) of this section, the claim is barred to the extent
the claim has been disallowed by the trustee.
' (6) If a claimant prevails in a proceeding or action under
subsection (4) of this section, the claim shall be allowed or
judgment entered in the full amount determined to be due to the
claimant. The claim or judgment shall be paid from the assets of
the trust estate only to the extent that funds are available
after payment of other claims with higher priority under section
10 of this 2001 Act.
' (7) If the claimant files a request for summary determination
of a claim under subsection (4) of this section, the trustee may
notify the claimant in writing that the claimant must commence a
separate action against the trustee on the claim within 60 days
after the claimant receives the notice. Notice under this
subsection must be given by the trustee within 30 days after the
request for summary determination is served on the trustee or the
attorney of the trustee. If the claimant fails to commence a
separate action within the time allowed, the claim is barred to
the extent the claim has been disallowed by the trustee.
' (8) In a proceeding for summary determination under this
section:
' (a) The trustee shall make response to the claim as though
the claim were a complaint filed in an action.
' (b) The court shall hear the matter without a jury, after
notice to the claimant and trustee. The court shall determine the
claim in a summary manner, and shall make an order allowing or
disallowing the claim in whole or in part.
' (c) No appeal may be taken from the order of the court made
in a proceeding for summary determination under this section.'.
In line 6, delete '(5)' and insert '(9)'.
After line 8, insert:
' { + SECTION 9a. + } { + Creditor may obtain order for
payment. + } { + A creditor whose claim has been allowed or
established by summary determination or separate action, and who
has not received payment within six months after the date of the
first publication of notice to interested persons, may apply to
the court for an order directing the trustee to pay the claim.
The trustee may recover amounts owing under the claim from any
beneficiary who received a distribution from the trust estate.
The right of recovery is limited to the extent the beneficiary's
distribution would have been reduced by timely payment of all
allowed or established claims. + }
' { + SECTION 9b. + } { + Evidence required to allow court
approval of claim disallowed by trustee. A claim that has been
disallowed by a trustee under sections 1 to 12 of this 2001 Act
may not be allowed by any court except upon some competent,
satisfactory evidence other than the testimony of the
claimant. + }
' { + SECTION 9c. + } { + Waiver of statute of limitations.
A claim subject to sections 1 to 12 of this 2001 Act that is
barred by a statute of limitations may not be allowed by the
trustee or by any court except upon the written direction or
consent of those interested persons who would be adversely
affected by allowance of the claim. + }
' { + SECTION 9d. + } { + Tolling of statute of limitations
on claim. If a claim is not barred by the statute of limitations
on the date of death of the grantor, the claim is not barred by
any statute of limitations until at least one year after the date
of death. + } ' .
Delete line 11.
In line 12, delete '(b)' and insert '(a)'.
In line 13, delete '(c)' and insert '(b)' and delete '
decedent' and insert 'grantor.'.
Delete line 14.
In line 15, delete '(d)' and insert '(c)'.
In line 16, delete '(e)' and insert '(d)'.
Delete line 17 and insert 'grantor, including compensation of
persons attending the grantor.'.
In line 18, delete '(f)' and insert '(e)'.
In line 19, delete 'decedent' and insert 'grantor'.
In line 20, delete '(g)' and insert '(f)' and delete ' decedent
settlor' and insert 'grantor'.
In line 21, delete 'decedent' and insert 'grantor'.
After line 21, insert '(g) Child support arrearages.'.
In line 23, delete 'decedent' and insert 'grantor'.
In line 25, delete 'decedent' and insert 'grantor'.
In line 36, delete 'decedent' and insert 'grantor'.
In line 43, delete 'decedent' and insert 'grantor' in both
places.
On page 5, delete line 2 and insert 'nontestamentary trusts
that are subject to the provisions of sections 1 to 12 of this
2001 Act.'.
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