Chapter 135 Oregon Laws 1999

Session Law

AN ACT

HB 2315

Relating to execution on judgments; creating new provisions; and amending ORS 23.164 and 23.240.

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

SECTION 1. ORS 23.240 is amended to read:

23.240. (1) A homestead shall be exempt from sale on execution, from the lien of every judgment and from liability in any form for the debts of the owner to the amount in value of $25,000, except as otherwise provided by law. The exemption shall be effective without the necessity of a claim thereof by the judgment debtor. When two or more members of a household are debtors whose interests in the homestead are subject to sale on execution, the lien of a judgment or liability in any form, their combined exemptions under this section shall not exceed $33,000. The homestead must be the actual abode of and occupied by the owner, or the owner's spouse, parent or child, but the exemption shall not be impaired by:

(a) Temporary removal or temporary absence with the intention to reoccupy the same as a homestead;

(b) Removal or absence from the property; or

(c) The sale of the property.

(2) The exemption shall extend to the proceeds derived from such sale to an amount not exceeding $25,000 or $33,000, whichever amount is applicable under subsection (1) of this section, if the proceeds are held for a period not exceeding one year and held with the intention to procure another homestead therewith.

(3) The exemption period under subsection (1)(b) and (c) of this section shall be one year from the removal, absence or sale, whichever occurs first.

(4) When the owner of a homestead has been granted a discharge in bankruptcy or has conveyed the homestead property, the value thereof, for the purpose of determining a leviable interest in excess of the homestead exemption, shall be the value on the date of the petition in bankruptcy, whether the value is determined in the bankruptcy proceedings or not, or on the date the conveyance becomes effective, whichever shall first occur. However, with respect to judgments not discharged in the bankruptcy, or entered against the owner after discharge, the value on the effective date of conveyance shall be controlling.

(5) No homestead that is the actual abode of and occupied by the [owner] judgment debtor, or [the owner's] that is the actual abode of and occupied by a spouse, dependent parent or dependent child of the judgment debtor, shall be sold on execution to satisfy a judgment that at the time of entry does not exceed $3,000. However, such judgment shall remain a lien upon the real property, and the property may be sold on execution:

(a) At any time after the sale of the property by the judgment debtor; and

(b) At any time after the property is no longer the actual abode of and occupied by the judgment debtor or the spouse, dependent parent or dependent child of the judgment debtor.

(6) The limitation [provided by this subsection shall not be] on execution sales imposed by subsection (5) of this section is not impaired by temporary removal or temporary absence with the intention to reoccupy the property as a homestead.

[(6)] (7) Upon the issuance of an order authorizing sale as provided in ORS 23.445, and in conformance with subsection (5) of this section, the levying officer may proceed to advertise and sell the property. If the homestead exemption applies, the levying officer shall pay the homestead owner out of the proceeds the sum of $25,000 or $33,000, whichever is applicable, and apply the balance of the proceeds on the execution. However, no sale shall be made where the homestead exemption applies unless the sum bid for the homestead is in excess of the sum of the costs of sale and $25,000 or $33,000, whichever is applicable. If no such bid is received, the expense of the advertising and preparation for sale shall be borne by the petitioner.

SECTION 2. ORS 23.164 is amended to read:

23.164. (1) A mobile home, and the property upon which the mobile home is situated, that is the actual abode of and occupied by the owner, or the owner's spouse, parent or child, when that mobile home is occupied as a sole residence and no other homestead exemption exists, shall be exempt from execution and from liability in any form for the debts of the owner to the value of $23,000, except as otherwise provided by law. When two or more members of a household are debtors whose interests in the homestead are subject to sale on execution, the lien of a judgment or liability in any form, their combined exemptions under this section shall not exceed $30,000. The exemption shall be effective without the necessity of a claim thereof by the judgment debtor.

(2) The exemption provided for in subsection (1) of this section shall not be impaired by temporary removal or absence with the intention to reoccupy the mobile property as a home, nor by the sale thereof, but shall extend to the proceeds derived from such sale up to $23,000 or $30,000, whichever amount is applicable under subsection (1) of this section, while the proceeds are held for a period not exceeding one year and with the intention to procure another mobile or other homestead therewith.

(3) Upon the issuance of an order authorizing sale as provided in ORS 23.445, the levying officer may proceed to advertise and sell the premises and, if the homestead exemption applies, out of the proceeds pay the mobile home owner the sum of $23,000 or $30,000, whichever amount is applicable under subsection (1) of this section, and apply the balance of the proceeds on the execution. However, no sale shall be made where the homestead exemption applies unless the sum bid for the property is in excess of the sum of the costs of sale and $23,000 or $30,000, whichever amount is applicable. If no such bid is received, the expense of the advertising and preparation for sale shall be borne by the petitioner.

(4)(a) The provisions of subsections (1), (2), (3) and (7) of this section do not apply to construction liens for work, labor or material done or furnished exclusively for the improvement of the mobile home, or to purchase money liens and to mortgages lawfully executed, or to executions issued on a judgment recovered for the purchase price.

(b) The provisions of subsections (3) and (7) of this section do not apply to the sale on execution of a judgment of restitution under ORS 105.154 of a mobile home removed from premises by the levying officer pursuant to the execution.

(5) If a debtor owns a mobile home but not the property upon which the mobile home is situated, subsections (1), (2), (3) and (4) of this section shall apply, but the value of the debtor's interest exempt from execution and liability shall not exceed $20,000 for an individual debtor, or $27,000 when two or more members of a household are debtors whose interests in the homestead are subject to execution or liability in any form.

(6) When the owner of a homestead under this section has been granted a discharge in bankruptcy or has conveyed the property, the value thereof, for the purpose of determining a leviable interest in excess of the homestead exemption, shall be the value on the date of the petition in bankruptcy, whether the value is determined in the bankruptcy proceedings or not, or on the date the conveyance becomes effective, whichever shall first occur.

(7) No mobile home, or property upon which the mobile home is situated, that is the actual abode of and occupied by the [owner] judgment debtor, or [the owner's] that is the actual abode of and occupied by a spouse, dependent parent or dependent child of the judgment debtor, shall be sold on execution to satisfy a judgment that at the time of entry does not exceed $3,000. [However, such] The judgment shall remain a lien upon the real property owned by the judgment debtor and upon which the mobile home is situated, and the mobile home and real property upon which it is situated may be sold on execution:

(a) At any time after the sale of the mobile home or real property by the judgment debtor; and

(b) At any time after the mobile home or real property is no longer the actual abode of and occupied by the judgment debtor or the spouse, dependent parent or dependent child of the judgment debtor.

(8) The limitation [provided by this subsection shall not be] on execution sales imposed by subsection (7) of this section is not impaired by temporary removal or absence with the intention to reoccupy the mobile home and property as a home.

[(8)] (9) As used in this section, unless the context requires otherwise, "mobile home" includes, but is not limited to, a houseboat.

SECTION 3. The amendments to ORS 23.240 and 23.164 by sections 1 and 2 of this 1999 Act apply only to judgments entered in the register of a court on or after the effective date of this 1999 Act.

Approved by the Governor April 26, 1999

Filed in the office of Secretary of State April 26, 1999

Effective date October 23, 1999

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