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 866
 
                         Senate Bill 103
 
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 Attorney General Hardy
  Myers for Department of Justice)
 
 
                             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.
 
  Requires seller of motor vehicle to return items of value to
buyer if lender does not agree to finance sales or lease
transaction on exact terms negotiated between seller and buyer
within 14 days of seller's offer.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to motor vehicle financing; creating new provisions;
  amending ORS 646.877; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 646.877 is amended to read:
  646.877. (1) As used in this section:
  (a) 'Buyer' means the purchaser or lessee of a motor vehicle.
  (b) 'Motor vehicle' means a motor vehicle, as defined in ORS
801.360, that is sold  { + or leased + } in this state for
personal, family or household purposes.
  (c) 'Seller' means a holder of a current, valid vehicle dealer
certificate issued under ORS 822.020 or renewed under ORS
822.040. 'Seller' does not include a dealer engaged primarily in
the sale of manufactured homes.
  (2) A seller may make an offer to sell  { + or lease + } a
motor vehicle to a buyer or prospective buyer that is subject to
future acceptance by a lender that may finance the transaction at
the request of the seller.
  (3) In any transaction described in subsection (2) of this
section, if the seller has accepted a trade-in motor vehicle from
the buyer or prospective buyer, the seller shall not sell  { + or
lease + } the buyer's or prospective buyer's trade-in motor
vehicle before the seller has obtained from the lender written
acceptance or approval of the exact terms negotiated between the
seller and the buyer or prospective buyer.
  (4) In any transaction described in subsection (2) of this
section, if   { - no - }   { + a + } lender   { - agrees - }
 { + does not agree + } to finance the transaction on the exact
terms negotiated between the seller and the buyer { +  within 14
days of the seller's offer + }, the seller shall return to the
 
buyer all items of value received from the buyer as part of the
transaction.
  (5) In any transaction described in subsection (2) of this
section, if the buyer has accepted a motor vehicle from the
seller, and   { - no - }   { + a + } lender   { - agrees - }
 { + does not agree + } to finance the transaction on the exact
terms negotiated between the seller and the buyer, the buyer
shall return to the seller all items of value received from the
seller as part of the transaction. The offer or contract to
sell { +  or lease + } the motor vehicle may provide in writing
that the buyer is liable to the seller for:
  (a) The fair market value of damage to, excessive wear and tear
on or loss of the motor vehicle occurring between the date the
buyer takes possession of the motor vehicle and the date the
buyer returns the motor vehicle to the seller's custody; and
  (b) A reasonable charge per mile for the use of the motor
vehicle occurring between the date the buyer takes possession of
the motor vehicle and the date the buyer returns the motor
vehicle to the seller's custody. The charge shall not exceed the
rate per mile allowed under federal law as a deduction for
federal income tax purposes for an ordinary and necessary
business expense.
  SECTION 2.  { + The amendments to ORS 646.877 by section 1 of
this 2003 Act apply to offers made by sellers on or after the
effective date of this 2003 Act. + }
  SECTION 3.  { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
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