72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 442
B-Engrossed
House Bill 2059
Ordered by the Senate May 6
Including House Amendments dated April 7 and Senate Amendments
dated May 6
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Judiciary for Oregon State Bar Debtor/Creditor Section)
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.
Sets procedure for filing bond or depositing money when
possessory chattel lien is claimed for storage of chattel and
amount of lien claimed is $750 or more. Specifies that action to
foreclose lien attaches to bond or deposited money and that
chattel described in claim of lien is free of lien. Increases
amount of bond or money to be deposited.
A BILL FOR AN ACT
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. + }
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