Chapter 261 Oregon Laws 2005

AN ACT

HB 2017

Relating to liens on motor vehicles; amending ORS 803.100 and 803.136; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 803.100, as amended by section 105, chapter 655, Oregon Laws 2003, is amended to read:

803.100. (1) Except as provided in subsection (2) of this section, the rights and remedies of all persons in vehicles subject to security interests established under ORS 803.097 are determined by the provisions of the Uniform Commercial Code.

(2)(a) If perfection of a security interest in a vehicle occurs on or before [20] 30 days after attachment of the security interest, the secured party takes priority over the rights of a transferee in bulk or a lien creditor that arise between the time the secured party’s interest attaches and the time of perfection of the security interest.

(b) This subsection applies to any security interest in a vehicle that is not a purchase money security interest.

SECTION 2. ORS 803.136 is amended to read:

803.136. The Department of Transportation shall reject, return or subsequently invalidate a transitional ownership record if:

(1) More than [20] 30 days have elapsed between the date of sale or if no sale is involved, the date the contract or security interest being perfected was signed and the date the transitional ownership record is received by the department;

(2) The transitional ownership record does not contain all of the information specified in ORS 801.562;

(3) It is determined that persons named on the transitional ownership record as having a security interest did not have a security interest on the date the transitional ownership record was received;

(4) It is determined the person who submitted the transitional ownership record made false statements in completing the transitional ownership record;

(5) The department does not receive the primary ownership record within 90 days from the date of sale or if no sale is involved, from the date the security agreement or contract was signed;

(6) The security interest holder or person submitting the transitional ownership record elects to retain it, requests it be returned or requests that the transitional ownership record be withdrawn; or

(7) The information on or in the transitional ownership record has been changed or altered in a manner that is not acceptable to the department.

SECTION 3. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect October 17, 2005.

Approved by the Governor June 20, 2005

Filed in the office of Secretary of State June 21, 2005

Effective date October 17, 2005

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