68th OREGON LEGISLATIVE ASSEMBLY--1995 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 1341

                         Senate Bill 87

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Judiciary for the Oregon Bankers Association)


                             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.

  Subordinates agricultural services lien to security interest in
same chattel.
  Subordinates agricultural services lien to other specified
nonpossessory liens.

                        A BILL FOR AN ACT
Relating to nonpossessory chattel liens; amending ORS 87.146 and
  87.252.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 87.146 is amended to read:
  87.146. (1) Except as provided in subsection (2) of this
section:
  (a) Liens created by ORS 87.152 to 87.162 have priority over
all other liens, security interests and encumbrances on the
chattel subject to the lien, except that taxes and duly perfected
security interests existing before chattels sought to be
subjected to a lien created by ORS 87.162 are brought upon the
leased premises have priority over that lien.
  (b) Liens created by ORS 87.216 { + , 87.222 or + }
 { - to - }  87.232 have equal priority. When a decree is given
foreclosing two or more liens created by ORS 87.216 { + , 87.222
or + }   { - to - }  87.232 upon the same chattel, the debts
secured by those liens shall be satisfied pro rata out of the
proceeds of the sale of the property.
  (c) With regard to the same chattel, a lien created by ORS
87.216 { + , 87.222 or + }   { - to - }  { +   + }87.232 has
priority over a nonpossessory chattel lien created by any other
law.
  (d) With regard to the same chattel, a lien created by ORS
87.216 { +  or 87.226 + } is junior and subordinate to a duly
perfected security interest in existence when the notice of claim
of such lien is filed under ORS 87.242.
  (e) With regard to the same chattel, a lien created by ORS
87.222   { - to - }  { +  or + } 87.232 has priority over a
security interest created under ORS chapter 79.
  (2)(a) A personal property tax lien, a chattel lien claimed by
the State of Oregon, its agencies or any political subdivision
thereof, and a chattel lien claimed by a state officer or
employee during the course of official duty pursuant to law have
priority over a lien created by ORS 87.152 to 87.162 and 87.216
to 87.232.
  (b) A duly perfected security interest of a lessor in any
portion of crops or animals to pay or secure payment of rental of
the premises upon which those crops or animals are grown, not to
exceed 50 percent of those crops or animals, shall not be subject
to the lien created by ORS 87.226.
  SECTION 2. ORS 87.252 is amended to read:
  87.252. (1) When a lien claimant files a notice of claim of
lien as required by ORS 87.242, the lien claimant shall send
forthwith a copy of the notice to the owner of the chattel to be
charged with the lien by registered or certified mail sent to the
owner at the owner's last-known address.
  (2) When a lien claimant files a notice of claim of lien as
required by ORS 87.242, the lien claimant shall send a copy of
the notice to all holders of security interests in the chattel to
be charged with the lien who duly perfected such security
interests by filing notice thereof with the Secretary of State.
The notice shall be mailed to holders of perfected security
interests within 30 days after the date of filing.
  (3) No costs, disbursements or attorney fees otherwise
allowable as provided by ORS 87.336 shall be allowed to any party
failing to comply with subsections (1) and (2) of this section.
    { - (4) If the total amount claimed by the lien claimant
under ORS 87.226 exceeds $20,000, and if the lien claimant fails
to comply with subsection (2) of this section, then, unless the
lien claimant sends a copy of the notice of claim of lien to
affected security interest holders disclosed by a search of the
Secretary of State's lien records under the account name supplied
to the lien claimant by the lien debtor or such other name or
assumed business names previously supplied by the lien debtor in
writing to the lien claimant, that part of the lien claimed under
ORS 87.226 that exceeds $20,000 shall be subordinate to any
security interest in the crops or animals to be charged with the
lien if the security interest was duly perfected before the date
on which the lien claimant filed a notice of claim of lien and if
the holder of the security interest did not receive a notice due
to the lien claimant's failure to comply with subsection (2) of
this section. - }
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