Chapter 193 Oregon Laws 2003

AN ACT

HB 2059

Relating to possessory chattel liens.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Sections 2 to 7 of this 2003 Act are added to and made a part of ORS 87.152 to 87.212.

SECTION 2. (1) When a lien claimed under ORS 87.152 to 87.162 is for the storage of a chattel and the amount of the lien claimed is $750 or more, the lien debtor, or any other interested person, may file with the recording officer of the county in which the lien claimant obtained possession of the chattel subject to the lien from the lien debtor a bond executed by a corporation authorized to issue surety bonds in the State of Oregon to the effect that the principal or principals on the bond shall pay the amount of the claim and all costs and attorney fees that are awarded against the chattel on account of the lien. The bond shall be in an amount not less than 200 percent of the amount claimed under the lien for the storage of the chattel.

(2)(a) In lieu of the surety bond provided for in subsection (1) of this section, when a lien claimed under ORS 87.152 to 87.162 is for the storage of a chattel and the amount of the lien claimed is $750 or more, the lien debtor, or any other interested person, may deposit with the treasurer of the county in which the lien claimant obtained possession of the chattel subject to the lien from the lien debtor a sum of money or its equivalent equal in value to 200 percent of the amount claimed under the lien for the storage of the chattel.

(b) The court in which any proceeding to foreclose the lien for the storage of the chattel may be brought may, upon notice and upon motion by a person who makes a deposit under paragraph (a) of this subsection, order the money invested in such manner as the court may direct. A person who makes a deposit under paragraph (a) of this subsection shall be entitled to any income from the investments and the treasurer of the county shall pay the income when received to the depositor without order.

(3) A bond or money may be filed or deposited under subsection (1) or (2) of this section at any time after a lien for the storage of a chattel is claimed under ORS 87.152 to 87.162 and the amount of the lien claimed is $750 or more.

SECTION 3. (1) A person who files a bond or deposits money under section 2 of this 2003 Act shall cause to be served upon the lien claimant a notice of the filing or deposit. If the person files a bond, the notice shall include a copy of the bond. The notice shall be filed not later than 20 days after the filing or deposit and shall state the location and time of the filing or deposit.

(2) If a person does not notify the lien claimant as required by subsection (1) of this section, the filing of the bond or the deposit of money is of no effect and the provisions of section 2 of this 2003 Act do not apply in a suit to foreclose the lien for which the filing or deposit is made.

SECTION 4. (1) When a person files a bond with the recording officer of a county under section 2 of this 2003 Act and serves notice of the filing upon the lien claimant under section 3 of this 2003 Act, the person shall file with the same recording officer an affidavit stating that the notice was served.

(2) When a person deposits money with the treasurer of a county under section 2 of this 2003 Act and serves notice of the deposit upon the lien claimant under section 3 of this 2003 Act, the person shall file with the recording officer of the same county an affidavit stating that the deposit was made and notice was served.

SECTION 5. (1) When a lien claimed under ORS 87.152 to 87.162 is for the storage of a chattel and the amount of the lien claimed is $750 or more, any suit to foreclose the lien that is commenced or pending after the filing of a bond or deposit of money under section 2 of this 2003 Act shall proceed as if no filing or deposit had been made except that the lien shall attach to the bond or money upon the filing or deposit and the service of notice of the filing or deposit upon the lien claimant.

The chattel described in the claim of lien shall thereafter be entirely free of the lien and shall in no way be involved in subsequent proceedings.

(2) When a bond is filed or money is deposited and, in a suit to enforce the lien for which the filing or deposit is made, the court allows the lien, the lien shall be satisfied out of the bond or money. The court shall include as part of its judgment an order for the return to the person who deposited the money of any amount remaining after the lien for the storage of the chattel is satisfied.

(3) When a bond is filed or money is deposited and, in a suit to enforce the lien for which the filing or deposit is made, the court disallows the lien, the court shall include as part of its judgment an order for the return of the bond or money to the person who filed the bond or deposited the money.

SECTION 6. (1) If a lien claimant considers the bond filed with a recording officer of a county under section 2 of this 2003 Act inadequate to protect the claim of the lien claimant for some reason other than the amount of the bond, the lien claimant may petition the court in which the suit to foreclose the lien for the storage of the chattel may be brought for a determination of the adequacy of the bond. The petition must be filed within 10 days of receipt of the notice of the filing of the bond under section 3 of this 2003 Act. The petition must describe in detail the reasons for the inadequacy.

(2) Not later than two days after the filing of the petition with the court, the lien claimant shall send a notice of the filing and a copy of the petition by registered or certified mail to the person who filed the bond. After a hearing, if the court determines that the bond is inadequate for one or more of the reasons described by the lien claimant, the court shall order such action as shall make the bond adequate to protect the claim of lien.

SECTION 7. The county recording officer shall record a written release of the lien for the storage of the chattel or the county treasurer in whose office money is deposited under section 2 of this 2003 Act shall return the money to the person who made the deposit when:

(1) The person who filed the bond or deposited the money presents a certified copy of a court’s order for the release of the bond or all or some of the money to that person; or

(2) The person who filed the bond or deposited the money presents a written release of lien signed by the lien claimant.

SECTION 8. Sections 2 to 7 of this 2003 Act apply to liens for the storage of a chattel claimed under ORS 87.152 to 87.162 that attach on or after the effective date of this 2003 Act and where the amount of the lien claimed is $750 or more.

Approved by the Governor June 4, 2003

Filed in the office of Secretary of State June 5, 2003

Effective date January 1, 2004

__________