74th OREGON LEGISLATIVE ASSEMBLY--2007 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 93
 
                         House Bill 2389
 
Sponsored by Representative ESQUIVEL (Presession filed.)
 
 
                             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 lender and seller imposing prepayment penalty in terms
and conditions of real estate loan agreement or land sale
contract to ensure that instrument identifying terms and
conditions of penalty is recorded in deed or mortgage records in
county in which real property is located. Specifies instruments
that may satisfy requirement.
 
                        A BILL FOR AN ACT
Relating to real estate transactions; creating new provisions;
  and amending ORS 205.246.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) In a transaction relating to real property,
a lender and seller shall ensure that an instrument identifying
the terms and conditions of a prepayment penalty provision, if
any, is recorded in the deed or mortgage records of the county
when:
  (a) The terms and conditions of a loan secured by a mortgage or
trust deed on real property located in this state include
provisions authorizing the lender or seller to impose a
prepayment penalty.
  (b) The terms and conditions of a land sale contract include
provisions authorizing the lender or seller to impose a
prepayment penalty.
  (2) The lender and seller may satisfy the requirements of
subsection (1) of this section by causing the county clerk to
record one of the following instruments that contains a complete
and accurate representation of the terms and conditions of the
prepayment penalty provisions applicable to the loan or sale:
  (a) The promissory note;
  (b) A prepayment rider;
  (c) A mortgage or a trust deed;
  (d) A land sale contract; or
  (e) Another instrument prepared specifically for recording.
  (3) In order to be recorded by a county clerk, an instrument
described in subsection (2) of this section must either:
  (a) Satisfy the legal requirements for instruments to be
recorded; or
  (b) Be attached to an instrument that satisfies the legal
requirements for instruments to be recorded. + }
  SECTION 2. ORS 205.246 is amended to read:
 
  205.246. (1) The county clerk shall record the following
instruments required or permitted by law to be recorded and
entered in the office of the county clerk:
  (a) Financing statements recorded in the office of the county
clerk under ORS 79.0501 (1)(a);
  (b) Hospital and physician liens recorded under ORS 87.565;
  (c) Federal tax liens and certificates and notices affecting
federal tax liens recorded under ORS 87.806;
  (d) Cooperative contracts recorded under ORS 62.360;
  (e) Special district assessments attaching to real property;
  (f) Lien foreclosure statements recorded under ORS 87.202;
  (g) A certified copy of the judgment or a lien record abstract
or other liens affecting the title to real property;
  (h) Building code exemptions required under ORS 455.320 and
455.345;
  (i) Construction liens recorded under ORS 87.050;
  (j) Liens upon chattels recorded under ORS 87.246;
  (k) Liens on real property recorded under ORS 87.372;
  (L) Employee benefit plan liens recorded under ORS 87.860;
  (m) Attorney liens recorded under ORS 87.455 and 87.460;
  (n) Long term care liens recorded under ORS 87.517;
  (o) Ambulance services liens recorded under ORS 87.623;
  (p) Community property records recorded under ORS 108.530;
  (q) Sheriff transfer of records recorded under ORS 206.100;
  (r) Corrected instruments required under ORS 205.244;
  (s) Mineral and mining records required under ORS 517.030,
517.052, 517.160, 517.180, 517.210, 517.220, 517.280, 517.310 and
517.320;
  (t) Copies of records certified by a county clerk or court
clerk;
  (u) Subdivision and partition plats recorded under ORS 92.140;
  (v) Condominiums recorded under ORS chapter 100;
  (w) Requests for notice of transfer or encumbrance or
terminations of requests for notice of transfer or encumbrance
presented for recordation under ORS 411.694;
  (x) Bankruptcy documents presented for recordation under ORS
93.770;   { - and - }
  (y) A written warranty agreement under ORS 701.605 { + ; and
  (z) An instrument containing the terms and conditions of a
prepayment penalty provision, if any, applicable to a loan
agreement or a land sale contract as provided in section 1 of
this 2007 Act + }.
  (2) The county clerk shall charge and collect fees specified in
ORS 205.320, 205.327 and 205.350 for recording an instrument
required to be recorded under subsection (1) of this section.
  (3) Indexes may be maintained for instruments recorded under
subsection (1) of this section in the same manner as provided in
ORS 205.160.
  SECTION 3.  { + Section 1 of this 2007 Act and the amendments
to ORS 205.246 by section 2 of this 2007 Act apply to real estate
loan agreements and land sale contracts entered into on or after
the effective date of this 2007 Act. + }
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