73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 1579
House Bill 2421
Sponsored by Representative KRUMMEL
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 security interest holder in vehicle to pay title
replacement fee if certificate of title is lost, mutilated or
destroyed while in holder's possession. Requires security
interest holder to deliver statement attesting to loss,
mutilation or destruction of certificate of title if loss,
mutilation or destruction occurs while title is in holder's
possession.
A BILL FOR AN ACT
Relating to certificates of title; creating new provisions; and
amending ORS 803.094 and 803.105.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 803.094 is amended to read:
803.094. (1) Except as otherwise provided in this section, upon
the transfer of any interest shown on an Oregon title any person
whose interest is released, terminated, assigned or transferred,
shall release or assign that interest in a manner specified by
the Department of Transportation by rule. Rules adopted for
purposes of this subsection shall be designed, as much as
possible, to protect the interests of all parties to the
transfer. If required under ORS 803.102, the person shall also
complete an odometer disclosure statement.
(2) Notwithstanding subsection (1) of this section:
(a) In the case of a transfer by operation of law of any
interest shown on an Oregon title, the personal representative,
receiver, trustee, sheriff or other representative or successor
in interest of the person whose interest is transferred shall
release or assign interest and if required by the department by
rule, as provided under ORS 803.102, complete an odometer
disclosure statement and shall provide the certificate, if any,
and disclosure statement if required to the transferee. The
representative or successor shall also provide the transferee
with information satisfactory to the department concerning all
facts entitling such representative or successor to transfer
title. If there is no person to assign interest, the person to
whom interest is awarded or otherwise transferred shall be
responsible for the requirements of this paragraph.
(b) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder if the estate is not
being probated and title is not being transferred under the
provisions of ORS 114.545, interest may be assigned through the
use of an affidavit. The affidavit shall be on a form prescribed
by the department and signed by all of the known heirs of the
person whose interest is being transferred stating the name of
the person to whom the ownership interest has been passed. If any
heir has not arrived at the age of majority or is otherwise
incapacitated, the parent or guardian of the heir shall sign the
affidavit. In the case of a transfer under this paragraph, one of
the heirs or any other person designated by the department by
rule shall complete any odometer disclosure statement required
under ORS 803.102.
(c) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder where transfer occurs
under the provisions of ORS 114.545, the 'affiant' as defined in
ORS 114.505 is the person required to assign interest. The
department may designate by rule the affiant or any other person
to complete any odometer disclosure statement required under ORS
803.102.
(d) Upon the termination of a lease, in lieu of the lessee
releasing interest, the lessor may provide information
satisfactory to the department that the lease has been
terminated. The lessor shall provide an odometer disclosure
statement if required under ORS 803.102. If the lessor does not
take possession of the vehicle upon termination of the lease, the
information in the odometer disclosure given by the lessor may be
taken from an odometer disclosure given by the lessee to the
lessor under ORS 803.102 unless the lessor has reason to believe
that the disclosure by the lessee does not reflect the actual
mileage of the vehicle.
(e) A security interest holder or lessor, without the consent
of the owner, may assign interest of the holder or lessor in a
vehicle to a person other than the owner without affecting the
interest of the owner or the validity or priority of the
interest. A person not given notice of such assignment is
protected in dealing with the security interest holder or lessor
as the holder of the interest until the assignee files in
accordance with ORS chapter 79. This paragraph does not exempt
such assignments from title transfer requirements.
(f) If an interest in a manufactured structure is transferred
pursuant to an application under ORS 820.587 (5), the recital by
the escrow company that no written objections were received
constitutes the release or transfer of interest by the person
whose interest is released, terminated, assigned or transferred.
(3) Nothing in this section requires the release or assignment
of title upon the creation or termination of a leasehold interest
for a vehicle that is proportionally registered under ORS 826.009
or 826.011 if the department is furnished with satisfactory proof
of the lease for such vehicle.
(4) The department by rule may allow odometer disclosure
statements to be on a form other than the certificate of title.
(5) { - Persons - } { + A person + } subject to the
provisions of this section shall provide { + all of the
following + } to the transferee { + :
(a)(A) + } A title certificate, if one has been issued and is
in
{ - their - } { + the + } possession { - , - } { + of the
person; or
(B) A statement attesting to the loss, mutilation or
destruction of the title certificate and payment of the fee as
required to issue a replacement title certificate under ORS
803.065, if the title certificate has been issued and is lost,
mutilated or destroyed while in the possession of a security
interest holder.
(b) + } The release or assignment of interest { - , and - }
{ + .
(c) + } Any required odometer disclosure statement. If an
odometer disclosure statement is required, the transferee shall
provide a signed disclosure to the transferor in a form
determined by the department by rule.
SECTION 2. ORS 803.094, as amended by section 103, chapter 655,
Oregon Laws 2003, is amended to read:
803.094. (1) Except as otherwise provided in this section, upon
the transfer of any interest shown on an Oregon title any person
whose interest is released, terminated, assigned or transferred,
shall release or assign that interest in a manner specified by
the Department of Transportation by rule. Rules adopted for
purposes of this subsection shall be designed, as much as
possible, to protect the interests of all parties to the
transfer. If required under ORS 803.102, the person shall also
complete an odometer disclosure statement.
(2) Notwithstanding subsection (1) of this section:
(a) In the case of a transfer by operation of law of any
interest shown on an Oregon title, the personal representative,
receiver, trustee, sheriff or other representative or successor
in interest of the person whose interest is transferred shall
release or assign interest and if required by the department by
rule, as provided under ORS 803.102, complete an odometer
disclosure statement and shall provide the certificate, if any,
and disclosure statement if required to the transferee. The
representative or successor shall also provide the transferee
with information satisfactory to the department concerning all
facts entitling such representative or successor to transfer
title. If there is no person to assign interest, the person to
whom interest is awarded or otherwise transferred shall be
responsible for the requirements of this paragraph.
(b) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder if the estate is not
being probated and title is not being transferred under the
provisions of ORS 114.545, interest may be assigned through the
use of an affidavit. The affidavit shall be on a form prescribed
by the department and signed by all of the known heirs of the
person whose interest is being transferred stating the name of
the person to whom the ownership interest has been passed. If any
heir has not arrived at the age of majority or is otherwise
incapacitated, the parent or guardian of the heir shall sign the
affidavit. In the case of a transfer under this paragraph, one of
the heirs or any other person designated by the department by
rule shall complete any odometer disclosure statement required
under ORS 803.102.
(c) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder where transfer occurs
under the provisions of ORS 114.545, the 'affiant' as defined in
ORS 114.505 is the person required to assign interest. The
department may designate by rule the affiant or any other person
to complete any odometer disclosure statement required under ORS
803.102.
(d) Upon the termination of a lease, in lieu of the lessee
releasing interest, the lessor may provide information
satisfactory to the department that the lease has been
terminated. The lessor shall provide an odometer disclosure
statement if required under ORS 803.102. If the lessor does not
take possession of the vehicle upon termination of the lease, the
information in the odometer disclosure given by the lessor may be
taken from an odometer disclosure given by the lessee to the
lessor under ORS 803.102 unless the lessor has reason to believe
that the disclosure by the lessee does not reflect the actual
mileage of the vehicle.
(e) A security interest holder or lessor, without the consent
of the owner, may assign interest of the holder or lessor in a
vehicle to a person other than the owner without affecting the
interest of the owner or the validity or priority of the
interest. A person not given notice of such assignment is
protected in dealing with the security interest holder or lessor
as the holder of the interest until the assignee files in
accordance with ORS chapter 79. This paragraph does not exempt
such assignments from title transfer requirements.
(3) Nothing in this section requires the release or assignment
of title upon the creation or termination of a leasehold interest
for a vehicle that is proportionally registered under ORS 826.009
or 826.011 if the department is furnished with satisfactory proof
of the lease for such vehicle.
(4) The department by rule may allow odometer disclosure
statements to be on a form other than the certificate of title.
(5) { - Persons - } { + A person + } subject to the
provisions of this section shall provide { + all of the
following + } to the transferee { + :
(a)(A) + } A title certificate, if one has been issued and is
in
{ - their - } { + the + } possession { - , - } { + of the
person; or
(B) A statement attesting to the loss, mutilation or
destruction of the title certificate and payment of the fee as
required to issue a replacement title certificate under ORS
803.065, if the title certificate has been issued and is lost,
mutilated or destroyed while in the possession of a security
interest holder.
(b) + } The release or assignment of interest { - , and - }
{ + .
(c) + } Any required odometer disclosure statement. If an
odometer disclosure statement is required, the transferee shall
provide a signed disclosure to the transferor in a form
determined by the department by rule.
SECTION 3. 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) Within 15 calendar days of satisfaction of a security
interest in a vehicle, the security interest holder affected:
(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 { + :
(i) + } Deliver a release to the person entitled thereto { + ;
and
(ii) If the certificate of title is lost, mutilated or
destroyed while in the possession of the security interest
holder, deliver a statement attesting to the loss, mutilation or
destruction of the certificate of title and payment of the fee as
required to issue a replacement certificate of title under ORS
803.065 + }.
(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) 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 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 4. { + The amendments to ORS 803.094 and 803.105 by
sections 1 to 3 of this 2005 Act apply only to transfers of
interest in vehicles made on or after the effective date of this
2005 Act. + }
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