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 440
 
                         Senate Bill 26
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Joint Interim Committee on
  Judiciary for Oregon State Bar Consumer Law Committee)
 
 
                             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.
 
  Limits buyer and borrower liability on deficiency after default
in retail installment contract, retail charge agreement or loan
repayment if deficiency is less than $1,250.
 
                        A BILL FOR AN ACT
Relating to deficiency judgments.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 83. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Goods' has the meaning given that term in ORS 83.010.
  (b) 'Lender' includes the assignee of the lender.
  (c) 'Motor vehicles' means a motor vehicle as defined in ORS
83.510 purchased primarily for personal, family or household
purposes and not primarily for business or commercial purposes.
  (d) 'Seller' includes the assignee of the seller.
  (e) 'Unpaid time balance or time sale price' means the amount
that the buyer would have been required to pay if the buyer's
obligation had been paid in full at the time of default.
  (2)(a) Notwithstanding any other provision of law, a borrower
who defaults in the repayment of a loan that was made for the
purchase of goods or motor vehicles shall not be personally
liable to the lender for any deficiency between the amount of the
borrower's unpaid loan obligation and the amount realized by the
lender on resale or other disposition of the goods or motor
vehicles if:
  (A) The lender repossesses or voluntarily accepts surrender of
the goods or motor vehicles; and
  (B) The unpaid balance of the loan obligation at the time of
default is less than $1,250.
  (b) Notwithstanding any other provision of law, a buyer who
defaults in the performance of a retail installment contract or
retail charge agreement for the sale of goods or motor vehicles
subject to ORS 83.010 to 83.190 or 83.510 to 83.680 shall not be
personally liable to the seller for any deficiency between the
amount of the buyer's unpaid obligation and the amount realized
 
by the seller on resale or other disposition of the goods or
motor vehicles if:
  (A) The seller repossesses or voluntarily accepts surrender of
the goods or motor vehicles; and
  (B) The unpaid time balance or time sale price is less than
$1,250.
  (3) Notwithstanding subsection (2) of this section, the
borrower or buyer is liable for damages to the lender or seller
for any repossessed or surrendered goods or motor vehicles that
have been wrongfully damaged. + }
  SECTION 3.  { + Section 2 of this 2003 Act applies to defaults
in the repayment of a loan or in the performance of a retail
installment contract or retail charge agreement that occur on or
after the effective date of this 2003 Act. + }
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