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 1674
 
                         Senate Bill 537
 
Sponsored by Senator GEORGE
 
 
                             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.
 
  Modifies provisions for release of claim of lien following full
payment of claim.
 
                        A BILL FOR AN ACT
Relating to liens; creating new provisions; and amending ORS
  87.346.
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 87. + }
  SECTION 2.  { + (1) When a person claiming a lien under ORS
87.352 to 87.362 receives full payment of the claim including
costs of making, filing and recording the lien and expenses
incurred in commencing to foreclose it, the person shall file
with the the recording officer of the county in which the claim
of lien is recorded a certificate declaring that full payment has
been received from the lien debtor and that the claim of lien is
discharged.
  (2) Upon receiving the certificate, the recording officer shall
enter it in full length in the index of liens upon real property.
  (3) If any lien claimant fails to discharge the claim of the
lien within 10 days after full payment of the claim, the person
is liable to the owner of the real property formerly subject to
the lien in the sum of $100 damages and for all actual damages
caused by the failure of the lien claimant to discharge the claim
of lien. The owner of the real property shall recover those
damages by an action at law. + }
  SECTION 3. ORS 87.346 is amended to read:
  87.346. (1) When a person claiming a lien under ORS 87.216 to
87.232 receives full payment of the claim including costs of
making, filing and recording the lien and expenses incurred in
commencing to foreclose it, the person shall file with the
Secretary of State or the recording officer of the county in
which the claim of lien is recorded a certificate declaring that
full payment has been received from the lien debtor and that the
claim of lien is discharged.
  (2) Upon receiving the certificate, the Secretary of State or
recording officer shall enter it in full length in the index of
liens upon chattels.
  (3) If any lien claimant  { - , after full payment of the
claim, within 10 days after being requested thereto, - }  fails
to discharge the claim of lien  { + within 10 days after full
payment of the claim + }, the person is liable to the owner of
the chattel formerly subject to the lien in the sum of $100
damages and for all actual damages caused by the failure of the
lien claimant to discharge the claim of lien. The owner of the
chattel shall recover those damages by an action at law.
  (4) Upon the expiration of the 18-month time period allowed by
ORS 87.266 (2) for filing either a suit to foreclose or a
proceeding under ORS 87.272 to 87.306 to foreclose a lien created
by ORS 87.226, the owner of chattels subject to a claim of lien
that has ceased to exist pursuant to ORS 87.266 (2) may file with
the Secretary of State a notarized certificate indicating:
  (a) The date and location where the claim of lien was filed
with the Secretary of State;
  (b) That the lien has expired and is discharged because no suit
to foreclose or proceeding under ORS 87.272 to 87.306 has been
initiated with respect to such lien claim; and
  (c) That the person filing such certificate has personally
contacted the clerk of the circuit court in such county to
determine that no suit to foreclose or proceeding under ORS
87.272 to 87.306 has been filed prior to the expiration of the
time period set forth in ORS 87.266 (2).
  (5) Within 10 days after filing a certificate under subsection
(4) of this section, the person filing the certificate shall mail
or deliver a true copy thereof to all persons having perfected
security interests under ORS chapter 79 in the chattel which is
the subject of the lien to which the certificate applies.
  SECTION 4.  { + Section 2 of this 2003 Act and the amendments
to ORS 87.346 by section 3 of this 2003 Act apply to claims of
liens for which full payment is made on or after the effective
date of this 2003 Act. + }
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