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 2215
 
                         Senate Bill 600
 
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND ECONOMIC
  DEVELOPMENT (at the request of Oregon Automobile Dealers
  Association)
 
 
                             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.
 
  Reduces time in which security interest holder in vehicle must
deliver title or release upon satisfaction of security interest.
Punishes failure to make timely delivery with maximum fine of
$5,000, maximum term of imprisonment of one year, or both.
 
                        A BILL FOR AN ACT
Relating to security interests in vehicles; amending ORS 803.105.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 803.105 is amended to read:
  803.105. (1) Except as provided in ORS 803.092, a person
commits the offense of failure to deliver vehicle documents on
transfer of a vehicle for which the Department of Transportation
has issued a certificate of title if the person does not comply
with any of the following:
  (a) Upon transfer of title or any interest in a vehicle, the
transferee shall present the certificate of title to the
department within 30 days after the transfer. This paragraph does
not apply to a vehicle dealer. If the transfer arises from the
sale of a vehicle, a transferee who presents the certificate more
than 30 days after the transfer shall pay the fee for late
presentation of certificate of title established in ORS 803.090.
However, the fee for late presentation does not apply if the
transferee proves to the satisfaction of the department that:
  (A) The transferee made a good faith effort to obtain title; or
  (B) Failure to comply was for a reason beyond the control of
the transferee.
  (b) Upon transfer of title or any interest in a vehicle to a
vehicle dealer, the vehicle dealer shall immediately notify the
department that the vehicle has been transferred to the dealer.
  (c) Upon creation of a leasehold interest in a vehicle, the
lessor or holder shall present the certificate of title to the
department within 30 days of the transfer. This paragraph does
not apply to the creation of leasehold interests in vehicles that
are proportionally registered under ORS 826.009 or 826.011.
  (d) Upon termination of a leasehold interest, the lessor shall
cause the certificate of title to be delivered to the department
within 30 days of the termination. This paragraph does not apply
to the termination of leasehold interests in commercial vehicles
that are proportionally registered under ORS 826.009 or 826.011.
  (e) Upon creation of a leasehold interest in vehicles that are
proportionally registered under ORS 826.009 or 826.011, the
lessee shall furnish the department with satisfactory proof of
the lease.
  (f) Upon the creation of a security interest in a vehicle where
the owner or lessor is in possession of a certificate of title,
the owner or lessor, if there is a lease, shall deliver the
certificate to the person in whom the security interest was
created. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale.
  (g) Upon the creation of a security interest in a vehicle where
a prior security interest holder is in possession of the
certificate of title, the owner or lessor, if there is a lease,
shall either provide for the delivery of the certificate of title
to the person in whom the security was created or arrange for
direct delivery by the prior security interest holder to the
department. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale.
  (h) Notwithstanding paragraph (a) of this subsection, upon
creation of a security interest in a vehicle, a person in whom a
security interest was created and who receives a certificate of
title showing the interest from the person granting the security
interest shall present the certificate of title to the department
within 30 days after receiving the certificate of title.
  (i) Within   { - 15 - }  { +  five + } calendar days of
satisfaction of a security interest in a vehicle, the security
interest holder affected:
  (A) If in possession of the certificate of title, shall deliver
the certificate of title and the release contained thereon to the
security interest holder next named, if any, otherwise to the
lessor or, if none, to the owner.
  (B) If not in possession of the certificate of title, shall
deliver a release to the person entitled thereto.
  (j) Upon receipt of a release of a security interest in a
vehicle by a person who is not in possession of the certificate
of title, the person shall promptly deliver the release to the
holder of the certificate of title. This paragraph does not apply
to release of a security interest in vehicles where the debtor
who granted the security interest is in the business of selling
vehicles and the vehicle constitutes inventory held for sale.
  (k) Notwithstanding paragraph (a) of this subsection, upon
satisfaction of a security interest in a vehicle, the holder of
the certificate of title and the release shall present both to
the department within 30 days after the date of the release. This
paragraph does not apply upon release of a security interest in
vehicles where the debtor who granted the security interest is in
the business of selling vehicles and the vehicle constitutes
inventory held for sale.
  (2) The offense described in this section, failure to deliver
vehicle documents on transfer of interest in a vehicle, is a
Class D traffic violation { + , except that failure to comply
with subsection (1)(i) of this section is a Class A
misdemeanor + }.
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