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 2651
Senate Bill 587
Sponsored by COMMITTEE ON TRANSPORTATION AND ECONOMIC DEVELOPMENT
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.
Removes requirement that certificate of title to vehicle be
given to security interest holder. Makes related changes.
A BILL FOR AN ACT
Relating to title to motor vehicles; creating new provisions; and
amending ORS 803.015, 803.050, 803.055, 803.105 and 803.220.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 803.015 is amended to read:
803.015. The Department of Transportation shall design a
certificate of title for vehicles for situations in which the
department determines that certificates will be issued. A
certificate of title issued by the department shall conform to
all of the following:
(1) The certificate shall be numbered in a manner prescribed by
the department.
(2) The certificate shall contain a description of the vehicle.
(3) The certificate shall contain evidence of identification of
the vehicle the department deems proper.
(4) The certificate shall contain the name of the owner of the
vehicle.
(5) The certificate shall identify any security interest
holders in the order of their priority { + and shall contain the
loan number of the loan that gave rise to the security
interest + }. This subsection does not apply to the security
interests where the debtor who granted the security interest is
in the business of selling vehicles and the vehicle constitutes
inventory held for sale or lease.
(6) The certificate shall identify any lessor of the vehicle.
(7) The certificate shall be authenticated by a seal of the
State of Oregon printed on the certificate.
(8) The certificate shall have space to fill in information
required by the department upon the transfer of a vehicle under
ORS 803.094 and space for the odometer disclosure required on
transfer of an interest under ORS 803.102.
(9) If the vehicle is a reconstructed vehicle, the certificate
shall:
(a) Show the original year model and make of the vehicle.
(b) Indicate that the vehicle is reconstructed. A certificate
of title shall not indicate that a vehicle is reconstructed as
otherwise required by this paragraph if the reconstructed vehicle
is an antique vehicle.
(10) If the vehicle is an assembled vehicle, the certificate
shall:
(a) Show the make of the vehicle as 'assembled. '
(b) Show the year the building of the vehicle is completed as
the year model of the vehicle.
(11) The certificate shall show the mileage of the vehicle as
reported to the department at the time the most recent title
transfer was reported to the department, or the mileage reported
to the department at the time the vehicle was initially titled in
Oregon, whichever occurred last. The information required by this
subsection shall be shown as reported to the department on
odometer disclosure reports required by law to be submitted to
the department.
(12) If the vehicle is a replica, the certificate shall
indicate that the vehicle is a replica.
(13) If the vehicle has been reported to the department as a
totaled vehicle under the provisions of ORS 819.012 or 819.014,
the certificate shall contain the word 'totaled' unless the
reason for the report was theft and the vehicle has been
recovered.
(14) The certificate shall contain any other information
required by the department, including but not limited to brands
or other notations the department requires.
(15) The certificate shall be produced by a secure process that
meets or exceeds the requirements of federal law.
SECTION 2. ORS 803.050 is amended to read:
803.050. (1) An application for title required under ORS
803.045 shall be in a form specified by the Department of
Transportation and shall contain all the following:
(a) A full description of the vehicle, including, but not
necessarily limited to, the vehicle identification number.
(b) The name of the owner of the vehicle or other person whose
name is to be shown on the title.
(c) The identity of any security interests in order of
priority { + and the loan number of the loan that gave rise to
the security interest + }.
(d) The identity of the interest of any lessor.
(e) A disclosure of whether the vehicle is a replica or is
specially constructed, reconstructed or assembled. If the title
and registration records of the department already indicate that
a vehicle is a replica or is specially constructed, reconstructed
or assembled, disclosure under this subsection is not required
unless the vehicle has been changed since title for the vehicle
was last transferred.
(f) If the title application shows a leasehold interest, the
lessor shall designate whether the lessor or the lessee is to be
shown on the title as the owner of the vehicle.
(g) Any other information required by the department.
(2) Notwithstanding subsection (1) of this section, the
department may accept an application that does not contain
everything required by this section if the department is
satisfied as to the ownership of the vehicle.
SECTION 3. ORS 803.055 is amended to read:
803.055. (1) When a certificate of title is issued by this
state, the Department of Transportation shall deliver the
certificate as follows unless otherwise provided by law:
{ - (a) To the security interest holder with the highest
priority. - }
{ - (b) - } { + (a) + } { - If there are no security
interest holders, - } To the lessor.
{ - (c) - } { + (b) + } If there { - are - } { + is + }
no { - security interest holders or lessors - } { +
lessor + }, to the owner of the vehicle.
(2) When a salvage title certificate is issued by this state,
the department shall deliver the certificate to the owner of the
vehicle.
(3) The department may determine by rule whether, when, how and
to whom titles issued in a form other than a certificate shall be
delivered.
SECTION 4. ORS 803.105 is amended to read:
803.105. (1) Except as provided in ORS 803.092, a person
commits the offense of failure to deliver vehicle documents on
transfer of a vehicle for which the Department of Transportation
has issued a certificate of title if the person does not comply
with any of the following:
(a) Upon transfer of title or any interest in a vehicle, the
transferee shall present the certificate of title to the
department within 30 days after the transfer. This paragraph does
not apply to a vehicle dealer. If the transfer arises from the
sale of a vehicle, a transferee who presents the certificate more
than 30 days after the transfer shall pay the fee for late
presentation of certificate of title established in ORS 803.090.
However, the fee for late presentation does not apply if the
transferee proves to the satisfaction of the department that:
(A) The transferee made a good faith effort to obtain title; or
(B) Failure to comply was for a reason beyond the control of
the transferee.
(b) Upon transfer of title or any interest in a vehicle to a
vehicle dealer, the vehicle dealer shall immediately notify the
department that the vehicle has been transferred to the dealer.
(c) Upon creation of a leasehold interest in a vehicle, the
lessor or holder shall present the certificate of title to the
department within 30 days of the transfer. This paragraph does
not apply to the creation of leasehold interests in vehicles that
are proportionally registered under ORS 826.009 or 826.011.
(d) Upon termination of a leasehold interest, the lessor shall
cause the certificate of title to be delivered to the department
within 30 days of the termination. This paragraph does not apply
to the termination of leasehold interests in commercial vehicles
that are proportionally registered under ORS 826.009 or 826.011.
(e) Upon creation of a leasehold interest in vehicles that are
proportionally registered under ORS 826.009 or 826.011, the
lessee shall furnish the department with satisfactory proof of
the lease.
{ - (f) Upon the creation of a security interest in a vehicle
where the owner or lessor is in possession of a certificate of
title, the owner or lessor, if there is a lease, shall deliver
the certificate to the person in whom the security interest was
created. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale. - }
{ - (g) Upon the creation of a security interest in a vehicle
where a prior security interest holder is in possession of the
certificate of title, the owner or lessor, if there is a lease,
shall either provide for the delivery of the certificate of title
to the person in whom the security was created or arrange for
direct delivery by the prior security interest holder to the
department. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale. - }
{ - (h) Notwithstanding paragraph (a) of this subsection,
upon creation of a security interest in a vehicle, a person in
whom a security interest was created and who receives a
certificate of title showing the interest from the person
granting the security interest shall present the certificate of
title to the department within 30 days after receiving the
certificate of title. - }
{ - (i) - } { + (f) + } Within 15 calendar days of
satisfaction of a security interest in a vehicle, the security
interest holder affected { + shall deliver a release to the
person entitled thereto. + } { - : - }
{ - (A) If in possession of the certificate of title, shall
deliver the certificate of title and the release contained
thereon to the security interest holder next named, if any,
otherwise to the lessor or, if none, to the owner. - }
{ - (B) If not in possession of the certificate of title,
shall deliver a release to the person entitled thereto. - }
{ - (j) Upon receipt of a release of a security interest in a
vehicle by a person who is not in possession of the certificate
of title, the person shall promptly deliver the release to the
holder of the certificate of title. This paragraph does not apply
to release of a security interest in vehicles where the debtor
who granted the security interest is in the business of selling
vehicles and the vehicle constitutes inventory held for sale. - }
{ - (k) - } { + (g) + } { - Notwithstanding paragraph (a)
of this subsection, upon satisfaction of a security interest in a
vehicle, - } The holder of the certificate of title { - and
the release - } { + who has received a release of a security
interest in the vehicle + } shall present both to the department
within 30 days after the date of the release. This paragraph
does not apply upon release of a security interest in vehicles
where the debtor who granted the security interest is in the
business of selling vehicles and the vehicle constitutes
inventory held for sale.
(2) The offense described in this section, failure to deliver
vehicle documents on transfer of interest in a vehicle, is a
Class D traffic violation.
SECTION 5. ORS 803.220 is amended to read:
803.220. (1) A person commits the offense of unlawful failure
to notify the Department of Transportation of a name and address
change if the person:
(a) Has any interest in a vehicle registered or titled by this
state that is shown on the title;
(b) Changes names, by marriage or otherwise, from that shown on
the title or changes the person's address from that shown on the
registration; and
(c) Does not comply with the requirements under this section.
(2) To comply with the requirements of this section, a person
must { - do all the following: - }
{ - (a) The person must - } notify the department of the
change. Notice of a change of name or address must be given to
the department within 30 days of the change.
{ - (b) If the person changes names, by marriage or
otherwise, from that shown on the title and a certificate of
title is being held by a security interest holder, the person
must notify the security interest holder within 30 days after the
change who, in turn, must notify the department in a timely
manner. - }
{ - (c) - } Any time the name is changed from that on the
title, any certificate of title that has been issued must be
submitted to the department with the notice and the appropriate
fee under ORS 803.090.
(3) A person may obtain a new certificate of title reflecting a
change of name or address by making application therefor and
paying the appropriate fee under ORS 803.090.
(4) If title has been issued in a form other than a
certificate, a person requesting a change in name shall provide
authorization from the primary security interest holder, if any,
to have the title changed. If the authorization is not received,
the department shall continue to reflect the previous name on the
title. Nothing in this subsection precludes the department from
including the new name in records maintained in conjunction with
title whether or not authorization is received.
(5) Upon receipt of notice of a change and any authorization
required under this section, the department shall note the change
in its records. Upon receipt of the notice and the fee required
under ORS 803.090, the department shall issue a new certificate
of title indicating the change.
(6) This section does not apply to a change of name or address
of a security interest holder or lessor that is a financial
institution, a financial holding company or a bank holding
company, as those terms are defined in ORS 706.008, a licensee
under ORS chapter 725, or any subsidiary or affiliate of any of
the foregoing.
(7) The offense described in this section, unlawful failure to
notify the department of a name or address change, is a Class D
traffic violation.
SECTION 6. { + A person who on the effective date of this 2003
Act holds a security interest in a motor vehicle and has
possession of the certificate of title to the vehicle as a result
of that interest shall transfer the certificate of title to the
person entitled to it under ORS 803.055 as amended by section 3
of this 2003 Act. + }
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