Chapter 818 Oregon Laws 1999

Session Law

AN ACT

HB 2738

Relating to security interests in vehicles; amending ORS 803.100, 803.132 and 803.136.

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

SECTION 1. ORS 803.132 is amended to read:

803.132. A transitional ownership record is acceptable as an ownership record only if the primary ownership record[:]

[(1)] is not in the possession of the selling dealer, new security interest holder or the agent of either at the time the transitional ownership record is submitted to the Department of Transportation.[; and]

[(2) To the best of the knowledge of the selling dealer, security interest holder or agent, will not be available for submission to the department within 20 days of the date of sale or if no sale is involved, within 20 days of the date of a security agreement or contract.]

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 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 [30] 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ownership record elects to retain it, requests it be returned or requests that the transitional ownership record be withdrawn; or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. ORS 803.100 is amended to read:

803.100. (1) Except as provided in subsection (2) of this section, and subject to ORS 820.510, the rights and remedies of all persons in vehicles subject to security interests established under ORS 803.097 shall be determined by the provisions of the Uniform Commercial Code.

(2)(a) If perfection of a security interest in a vehicle, including a manufactured structure or a manufactured dwelling, occurs on or before 20 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.

Approved by the Governor July 20, 1999

Filed in the office of Secretary of State July 20, 1999

Effective date October 23, 1999

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