Chapter 87 — Statutory
Liens
2011 EDITION
STATUTORY LIENS
MORTGAGES AND LIENS
CONSTRUCTION LIENS
87.001 Short
title
87.005 Definitions
for ORS 87.001 to 87.060 and 87.075 to 87.093
87.007 Protection
from construction liens perfected after sale of residential property completed;
requirements; seller options; rules; delivery of form to purchaser; penalty;
damages; defenses
87.010 Construction
liens; who is entitled to lien
87.015 Land
and interests therein subject to lien; leaseholds
87.018 Delivery
of notices
87.021 Notice
to owners; notice from owner to original contractor; effect of failure to give
notice
87.023 Notice
of right to lien; form of notice
87.025 Priority
of perfected liens; right to sell improvements separately from land; notice to
mortgagee; list of materials or supplies
87.027 Right
of owner to demand list of services, materials, equipment and labor; penalty
for failure to provide list
87.030 Effect
of owner’s knowledge of improvement; notice of nonresponsibility
87.035 Perfecting
lien; filing claim of lien; contents of claim
87.036 Subcontractor’s
perfection of claim of lien; notice; fee; rules
87.037 Prohibition
against claim of lien
87.039 Notice
of filing claim of lien; effect of failure to give notice
87.045 Completion
date of improvement; notice of completion, abandonment or nonabandonment;
contents of notice
87.050 Recording
87.055 Duration
of lien; when suit to enforce lien commences
87.057 Notice
of intent to foreclose; list of materials furnished and statement of prices;
effect of failure to give notice
87.059 Stay
in proceedings to enforce lien; requirements; procedure; dissolution of stay
87.060 Foreclosure;
right to jury trial; distribution of proceeds of foreclosure sale
87.070 Amount
of recovery by contractor; respective rights of contractor and owner
87.075 Exemption
of building materials from attachment by third persons
87.076 Bond
or deposit of money; amount; demand for release of lien; effect
87.078 Notice
of filing bond or depositing money; contents of notice; effect of failure to
give notice
87.081 Filing
affidavit with county officer
87.083 Foreclosure
after filing of bond or deposit of money; effect of filing or deposit;
disposition of bond or money
87.086 Determination
of adequacy of bond
87.088 Release
of lien or return of money
87.089 Limitations
on actions
87.093 Information
Notice to Owner; rules; contents; when notice must be delivered; effect of
failure to deliver notice; penalty
LIENS GENERALLY
87.142 Definitions
for ORS 87.142 to 87.490 and 87.910
87.146 Priorities
of liens
POSSESSORY CHATTEL LIENS
87.152 Possessory
lien for labor or material expended on chattel
87.156 Innkeeper’s
lien
87.159 Lien
for care of animal
87.162 Landlord’s
lien
87.166 Attachment
of liens
87.172 Time
period before foreclosure allowed
87.176 Fees
for storage of chattel; notice to lien debtor; effect of failure to comply
87.177 Bond
or deposit of money for lien for storage of chattel; amount; notice to lien
claimant; filing affidavit with county officer
87.178 Foreclosure
after filing of bond or deposit of money; effect of filing or deposit;
disposition of bond or money
87.179 Determination
of adequacy of bond
87.181 Release
of lien or return of money
87.182 Effect
of prior security interest on method of foreclosure
87.186 Location
of foreclosure sale
87.192 Notice
of foreclosure sale to lien debtor; public notice
87.196 Notice
of foreclosure sale to secured parties; effect of notice; effect of failure to
give notice
87.202 Statement
of account of foreclosure sale
87.206 Disposition
of proceeds of foreclosure sale
87.212 Liability
for improper sale of fungible chattels
87.214 Disposal
of property left with launderer or dry cleaner
NONPOSSESSORY CHATTEL LIENS
87.216 Nonpossessory lien for labor or material expended on
chattel
87.222 Logger’s,
woodworker’s and timberland owner’s lien
87.226 Agricultural
services lien
87.228 Effect
on agricultural services lien when payment for produce is made prior to filing
of lien claim
87.232 Fishing
lien and fish worker’s lien
87.236 Attachment
of liens; attachment to proceeds
87.242 Filing
notice of claim of lien; filing deadline; contents of notice; effect of failure
to file notice
87.246 Recording;
fees
87.252 Notice
to owner and holders of security interests; effect of failure to comply
87.256 Limitation
on extent of liens
87.262 Foreclosure
87.266 Duration
of liens
87.272 Petition
for foreclosure without suit
87.276 Evidence
admissible; issuance of show cause order
87.282 Waiver
of right to hearing before filing of petition
87.288 Show
cause order; contents; service
87.296 Waiver
of right to hearing after issuance of show cause order
87.302 Authority
of court on sustaining validity of lien claim
87.306 Foreclosure
by sale without suit; notice of sale to secured parties; public notice of sale
by sheriff
87.312 Effect
of notice of foreclosure sale to secured parties; failure to give notice
87.316 Disposition
of proceeds of foreclosure sale
87.322 Effect
of prior security interest on foreclosure of nonpossessory
lien for labor or material expended on chattel
87.326 Protection
from theft and damage of chattel subject to lien
87.332 Injury
or removal of chattel subject to lien
87.336 Costs
and attorney fees in foreclosure by suit
87.342 Bond,
letter of credit or deposit of money to discharge lien on chattel; amount;
recording; notice to lien claimant
87.346 Filing
certificate of lien satisfaction upon payment of claim; liability for failure
to discharge lien; notice of discharge
LIENS ON REAL PROPERTY
87.352 Mining
labor and material lien
87.356 Lien
for preparing land for irrigation or cultivation
87.358 Nurseryman’s
lien
87.362 Irrigation
power lien
87.364 Attachment
of liens
87.366 Filing
notice of claim of lien; contents of notice; effect of failure to file notice
87.372 Recording
87.376 Duration
of liens
87.382 Foreclosure
87.386 Costs
and attorney fees in foreclosure
87.392 Priorities
of liens
ATTORNEY’S LIEN
87.430 Attorney’s
possessory lien
87.435 Bond,
letter of credit or deposit of money to discharge attorney’s possessory lien;
recording; notice to attorney
87.440 Determination
of adequacy of bond or letter of credit
87.445 Attorney’s
lien upon actions and judgments
87.450 Filing
notice of claim of lien on judgment for sum of money
87.455 Filing
notice of claim of lien on judgment for possession of personal property;
recording; foreclosure
87.460 Filing
of notice of claim of lien on judgment for possession of real property;
recording; foreclosure
87.465 Effect
of failure to file notice of claim of lien; effect of failure to foreclose
87.470 Contents
of notice of claim of lien
87.475 Effect
of settlement on attorney’s lien; satisfaction of judgment
87.480 Attorney’s
right and power over actions and judgments
87.485 Attorney
fees
87.490 Priority
of attorney’s lien upon actions and judgments
LIEN FOR LONG TERM CARE
87.501 Definitions
for ORS 87.501 to 87.542
87.503 Lien
for long term care; statement concerning lien to be given to care recipient
87.507 Perfecting
lien; notice of lien; serving notice of lien; time to perfect lien
87.512 Contents
of notice of lien
87.517 Recording
notice of lien
87.522 Foreclosure
of lien; attorney fees
87.527 Limitations
on property subject to lien
87.533 Assets
and income that are exempt from lien
87.537 Duration
of lien
87.539 Discharge
or release of lien claim; recordation; penalty for failure to discharge or
release lien claim
87.542 Priority
of lien
MEDICAL SERVICES LIEN
87.555 Hospital
and physician lien
87.560 Limitations
on extent of lien
87.565 Notice
of lien required
87.570 Form
of notice
87.575 Hospital
and physician lien docket
87.581 Liability
of person or insurer to hospital and physician; conditions; deadline for filing
claim
87.585 Foreclosure
AMBULANCE SERVICES LIEN
87.603 Definitions
for ORS 87.603 to 87.633
87.607 Ambulance
services lien
87.613 Notice
of lien required
87.617 Form
of notice; contents
87.623 Notices
recorded in hospital lien docket
87.627 Payment
after notice of lien; liability to provider of services; exception
87.633 Foreclosure
SELF-SERVICE STORAGE FACILITY LIEN
87.685 Definitions
for ORS 87.685 to 87.693
87.686 Rental
agreement; statement of insurance held by owner
87.687 Self-service
storage facility owner’s possessory lien; attachment of lien; priority of lien
87.689 Notice
of foreclosure and sale
87.691 Sale
of property subject to lien; advertisement of sale; satisfaction of lien before
sale; use of sale proceeds
87.693 ORS
87.687 as exclusive law for creating lien; exception
87.695 Short
title
AGRICULTURAL PRODUCE LIEN
87.700 Definitions
for ORS 87.228 and 87.700 to 87.736
87.705 Agricultural
produce lien; date lien attaches
87.710 Filing
notice of lien; duration of lien; contents of notice; notice to secured
parties; effect of failure to give notice to secured parties
87.715 Priority
87.725 Foreclosure;
costs allowable to prevailing plaintiff
87.730 Expiration
of lien for failure to bring timely foreclosure suit
87.735 Filing
certificate of lien satisfaction upon payment for produce; liability of
producer for failure to discharge lien
87.736 Form
of notices filed under ORS 87.710 and certificates filed under ORS 87.735; fees
for filing and for furnishing copies
GRAIN PRODUCER’S LIEN
87.750 Definitions
for ORS 87.750 to 87.777
87.755 Grain
producer’s lien; date lien attaches; priority
87.762 Filing
notice of lien; duration of lien; contents of notice; notice to secured
parties; effect of failure to give notice to secured parties
87.767 Form
of notice; public record; fee
87.772 Expiration
of lien for failure to bring timely foreclosure action; manner of foreclosure
87.777 Filing
certificate of lien satisfaction upon payment for grain; liability of producer
for failure to discharge lien
UNIFORM FEDERAL TAX LIEN REGISTRATION
ACT
87.806 Filing
of federal tax liens
87.811 Certification
of tax lien notices
87.816 Keeping
of index and files with respect to tax liens; certification by filing officer;
fee; rules
87.821 Filing
and indexing fee; rules
87.826 Construction
87.831 Short
title
LIEN FOR CONTRIBUTIONS TO EMPLOYEE
BENEFIT PLAN
87.855 Lien
for contributions to employee benefit plan; priority
87.860 Filing
of claim of lien
87.865 Foreclosure;
joinder or consolidation; costs; limitation
MOLDER’S LIEN
87.870 Definitions
for ORS 87.870 to 87.876
87.872 Lien
for mold created or work performed with mold
87.876 Sale
of mold
MISCELLANEOUS PROVISIONS
87.910 Cost
of preparing lien notice
87.920 Recording
of document not to create lien, affect title or constitute notice except as
authorized by law
87.930 Secretary
of State to furnish list of persons who have filed financing statement
CONSTRUCTION LIENS
87.001 Short title.
ORS 87.001 to 87.060 and 87.075 to 87.093 shall be known and may be cited as
the Construction Lien Law. [1975 c.466 §1]
87.005 Definitions for ORS 87.001 to
87.060 and 87.075 to 87.093. As used in
ORS 87.001 to 87.060 and 87.075 to 87.093:
(1)
“Commencement of the improvement” means the first actual preparation or construction
upon the site or the first delivery to the site of materials of such
substantial character as to notify interested persons that preparation or
construction upon the site has begun or is about to begin.
(2)
“Construction” means creating or making an improvement or performing an
alteration, partial construction or repair in and upon an improvement.
(3)
“Construction agent” means a contractor, architect, builder or other person
having charge of construction or preparation.
(4)
“Contractor” means a person that contracts on predetermined terms to be
responsible for performing all or part of a job of preparation or construction
in accordance with established specifications or plans, retaining control of
the means, method and manner of accomplishing the desired result, and that
provides:
(a)
Labor at the site; or
(b)
Materials, supplies and labor at the site.
(5)
“Improvement” means a building, wharf, bridge, ditch, flume, reservoir, well,
tunnel, fence, street, sidewalk, machinery, aqueduct or other structure or
superstructure.
(6)
“Mortgagee” means a person:
(a)(A)
Whose name and address appear as mortgagee or beneficiary in a mortgage of
record or a trust deed of record that is recorded under ORS 205.234 with the
county clerk of the county within which the property or improvement is located;
and
(B)
That has a valid subsisting mortgage of record or trust deed of record that
secures a loan upon land or upon an improvement; or
(b)(A)
Whose name and address appear as the assignee of the mortgagee or beneficiary
in an assignment of mortgage of record or a trust deed of record that is
recorded under ORS 205.234 with the county clerk of the county within which the
property or improvement is located; and
(B)
That has a valid subsisting mortgage of record or trust deed of record that
secures a loan upon land or upon an improvement.
(7)
“Original contractor” means a contractor that has a contractual relationship
with the owner.
(8)
“Owner” means:
(a)
A person that is or claims to be the owner in fee or a lesser estate of the
land on which preparation or construction is performed;
(b)
A person that entered into a contract to purchase an interest in the land or
improvement sought to be charged with a lien created under ORS 87.010; or
(c)
A person that has a valid lease on land or an improvement and that possesses an
interest in the land or improvement by reason of the lease.
(9)
“Preparation” means excavating, surveying, landscaping, demolishing or
detaching existing structures or leveling, filling in or otherwise making land
ready for construction.
(10)
“Site” means the land on which construction or preparation is performed.
(11)
“Subcontractor” means a contractor that has no direct contractual relationship
with the owner. [Amended by 1957 c.651 §1; 1973 c.671 §1; 1975 c.466 §2; 1977
c.596 §1; 2005 c.22 §52; 2011 c.505 §1]
87.007 Protection from construction liens
perfected after sale of residential property completed; requirements; seller
options; rules; delivery of form to purchaser; penalty; damages; defenses.
(1) This section applies to a sale of the following residential property:
(a)
A new single family residence or a single family residence where the sales
price is $50,000 or more for original construction or the contract price is
$50,000 or more for improvements to the residence completed within three months
before the date the property is sold.
(b)
A new condominium unit or a condominium unit where the sales price is $50,000
or more for original construction or the contract price is $50,000 or more for
improvements to the condominium unit completed within three months before the
date the property is sold. As used in this paragraph, “condominium unit” has
the meaning given that term in ORS 100.005.
(c)
A new residential building or a residential building where the sales price is
$50,000 or more for original construction or the contract price is $50,000 or
more for improvements to the residential building completed within three months
before the date the property is sold. As used in this paragraph, “residential
building” means a building or structure that contains not more than four
dwelling units capable of use as residences or homes.
(2)
An owner of record at the time the owner of record sells residential property
to a purchaser shall protect the purchaser from claims of lien that arise
before the date on which the sale is complete but that may become perfected
under ORS 87.035 after the date on which the sale is complete by one of the
following methods:
(a)
Purchase or otherwise provide title insurance on the purchaser’s behalf by
means of a policy issued:
(A)
Without exception for filed and unfiled claims of
construction lien that exist at the closing date of the purchase; and
(B)
On forms and at rates filed with, but not disapproved by, the Director of the
Department of Consumer and Business Services.
(b)
Retain in escrow, as defined in ORS 696.505, an amount of funds that is not
less than 25 percent of the sale price of the residential property. The funds
must be maintained in or released from escrow in accordance with written
instructions to the escrow agent from the purchaser and the owner that sold the
property. The written instructions shall require the escrow agent to pay upon
the purchaser’s demand a claim of lien that is perfected after the date of the
sale of the property and that the owner that sold the property has not paid.
The escrow agent shall make the payment from the amount maintained in escrow.
The escrow agent shall release the unused funds from escrow to the owner that
sold the property if the escrow agent receives a request from the owner that
sold the property and the owner that sold the property provides documentation
from a title company that:
(A)
A claim of lien has not been perfected against the property and 90 days have
passed since the date that construction was completed; or
(B)
A claim of lien has been perfected against the property, that 135 days have
passed since the date that each such claim of lien was filed and that all
perfected claims of lien have been released or waived.
(c)
Maintain a bond or letter of credit in an amount that is not less than 25
percent of the sale price of the property. The Construction Contractors Board
shall prescribe by rule the amount, terms and conditions of the bond or letter
of credit to be maintained under this paragraph.
(d)
Obtain written waivers from every person that claims or perfects a lien or
liens under ORS 87.010 or 87.035 that, in an aggregate amount, exceed $5,000
with respect to the property and provide copies of the waivers to the purchaser
not later than the date the sale of the property is completed.
(e)
Complete the sale of the residential property after the deadline for perfecting
a claim of lien under ORS 87.035 with respect to the property.
(3)
Not later than the date on which the sale of the residential property is
completed, the owner who sold the property shall complete, sign and deliver to
the purchaser a form that specifies the method that the owner has selected to
comply with the requirements of subsection (2) of this section or that states
that subsection (2) of this section does not apply to the sale of the property.
The notice must be in a form the Construction Contractors Board designates by
rule under ORS 701.235.
(4)
A real estate licensee, as defined in ORS 696.010, acting in the professional
capacity of a licensee is not liable in a criminal, civil or administrative
proceeding that arises out of the failure of an owner of record to comply with
subsection (2) or (3) of this section.
(5)
Violation of subsection (3) of this section is a Class A violation.
(6)
In addition to any other remedy or penalty provided by law, a purchaser may
bring an action to recover up to twice the amount of actual damages caused by a
violation of subsection (2) of this section. The court may award to the
prevailing party, in addition to costs and disbursements, reasonable attorney
fees. Any action brought under this subsection must be commenced not later than
two years after the date on which the sale of the property is completed.
(7)
For purposes of subsections (5) and (6) of this section and ORS 646.608:
(a)
It is a defense to a violation of subsection (2) or (3) of this section that no
enforcement or attempt to enforce a claim of lien against the property that is
the subject of the sale occurred before the date the sale of the property was
completed; and
(b)
As to a claim of lien, it is a defense to a violation of subsection (2) or (3)
of this section if the owner that sold the property:
(A)
Proves that the claim of lien against the property that is the subject of the
sale is invalid; or
(B)
Satisfies the claim of lien or obtains a release from the claim of lien on the
property that is the subject of the sale.
(8)
A violation of subsection (2) or (3) of this section does not occur with
respect to a lien described in ORS 87.010 during the period that the validity
of the lien is disputed in a judicial proceeding or a proceeding described in
ORS chapter 701.
(9)
Nothing in this section requires the payment of a lien that is not otherwise
valid. This section does not apply to claims of lien perfected by persons that
furnish materials, equipment, services or labor at the request of the purchaser
of the residential property. [2003 c.778 §2; 2010 c.77 §1]
87.010 Construction liens; who is entitled
to lien. (1) Any person performing labor upon,
transporting or furnishing any material to be used in, or renting equipment
used in the construction of any improvement shall have a lien upon the
improvement for the labor, transportation or material furnished or equipment
rented at the instance of the owner of the improvement or the construction
agent of the owner.
(2)
Any person who engages in or rents equipment for the preparation of a lot or
parcel of land, or improves or rents equipment for the improvement of a street
or road adjoining a lot or parcel of land at the request of the owner of the
lot or parcel, shall have a lien upon the land for work done, materials
furnished or equipment rented.
(3)
A lien for rented equipment under subsection (1) or (2) of this section shall
be limited to the reasonable rental value of the equipment notwithstanding the
terms of the underlying rental agreement.
(4)
Trustees of an employee benefit plan shall have a lien upon the improvement for
the amount of contributions, due to labor performed on that improvement,
required to be paid by agreement or otherwise into a fund of the employee
benefit plan.
(5)
An architect, landscape architect, land surveyor or registered engineer who, at
the request of the owner or an agent of the owner, prepares plans, drawings or
specifications that are intended for use in or to facilitate the construction
of an improvement or who supervises the construction shall have a lien upon the
land and structures necessary for the use of the plans, drawings or
specifications so provided or supervision performed.
(6)
A landscape architect, land surveyor or other person who prepares plans,
drawings, surveys or specifications that are used for the landscaping or
preparation of a lot or parcel of land or who supervises the landscaping or
preparation shall have a lien upon the land for the plans, drawings, surveys or
specifications used or supervision performed. [Amended by 1957 c.651 §2; 1973
c.671 §2; 1975 c.466 §3; 1977 c.596 §2; 1981 c.757 §1]
87.015 Land and interests therein subject
to lien; leaseholds. (1) The site together with the
land that may be required for the convenient use and occupation of the
improvement constructed on the site, to be determined by the court at the time
of the foreclosure of the lien, shall also be subject to the liens created
under ORS 87.010 (1), (4) and (5) if, at the time of the commencement of the
improvement, the person who caused the improvement to be constructed was the
owner of that site and land. If the person owned less than a fee-simple estate
in the site and land, then only the interest of the person therein shall be
subject to the lien.
(2)
If a lien created under ORS 87.010 (1), (4) and (5) is claimed against a unit
as defined in ORS 100.005 to 100.910, the Oregon Condominium Act, the common
elements appertaining to that unit are also subject to the lien.
(3)
When the interest of the person who caused the improvement to be constructed is
a leasehold interest, and that person has forfeited the rights of the person
thereto, the purchaser of the improvement and leasehold term at any sale under
the provisions of ORS 87.001 to 87.060 and 87.075 to 87.093, is deemed to be
the assignee of the leasehold term, and may pay the lessor
all arrears of rent or other money and costs due under the lease. If the lessor regains possession of the property, or obtains
judgment for the possession thereof prior to the commencement of construction
of the improvement, the purchaser may remove the improvement within 30 days
after the purchaser purchases it, and the owner of the land shall receive the
rent due the owner, payable out of the proceeds of the sale, according to the
terms of the lease, down to the time of removal. [Amended by 1975 c.466 §4]
87.018 Delivery of notices.
(1) Except as provided in ORS 87.093, all notices required under ORS 87.001 to
87.060 and 87.075 to 87.093 must be in writing and be delivered in person or by
registered or certified mail.
(2)
A notice that must be given under ORS 87.001 to 87.060 or 87.075 to 87.093 to a
mortgagee must be delivered to the mortgagee only if the name and address of
the mortgagee appear in a mortgage of record or a trust deed of record as
required under ORS 205.234 (1)(b) or in the instrument that assigns a mortgage
or trust deed as required under ORS 205.234 (1)(g). [1975 c.466 §5; 1981 c.757 §2;
2007 c.648 §15; 2011 c.505 §2]
87.020
[Amended by 1965 c.446 §1; 1967 c.600 §1; 1967 c.602 §1; repealed by 1975 c.466
§6 (87.021 enacted in lieu of 87.020)]
87.021 Notice to owners; notice from owner
to original contractor; effect of failure to give notice.
(1) Except when material, equipment, services or labor described in ORS 87.010
(1) to (3), (5) and (6) is furnished at the request of the owner, a person
furnishing any materials, equipment, services or labor described in ORS 87.010
(1) to (3), (5) and (6) for which a lien may be perfected under ORS 87.035
shall give a notice of right to a lien to the owner of the site. The notice of
right to a lien may be given at any time during the progress of the
improvement, but the notice only protects the right to perfect a lien for
materials, equipment and labor or services provided after a date which is eight
days, not including Saturdays, Sundays and other holidays as defined in ORS
187.010, before the notice is delivered or mailed. However, no lien is created
under ORS 87.010 (5) or (6) for any services provided for an owner-occupied
residence at the request of an agent of the owner.
(2)
The notice required by subsection (1) of this section shall be substantially in
the form set forth in ORS 87.023.
(3)(a)
Except as provided in paragraph (b) of this subsection, a lien created under
ORS 87.010 (1) to (3), (5) or (6) may be perfected under ORS 87.035 only to the
extent that the notice required by subsection (1) of this section is given.
(b)
A person who performs labor upon a commercial improvement or provides labor and
material for a commercial improvement or who rents equipment used in the
construction of a commercial improvement need not give the notice required by
subsection (1) of this section in order to perfect a lien created under ORS
87.010. As used in this paragraph:
(A)
“Commercial improvement” means any structure or building not used or intended
to be used as a residential building, or other improvements to a site on which
such a structure or building is to be located.
(B)
“Residential building” means a building or structure that is or will be
occupied by the owner as a residence and that contains not more than four units
capable of being used as residences or homes.
(4)
Unless otherwise agreed or the lien claimant who is required to give the notice
under subsection (1) of this section is in privity
with the original contractor, when a provision in an agreement for the
construction of a commercial improvement requires the original contractor to
hold an owner harmless or to indemnify an owner for a lien created under ORS
87.010 and perfected under ORS 87.035, that provision is not enforceable as to
any lien which requires that a notice under this section be given to the owner
unless a copy of the notice is delivered pursuant to ORS 87.018 to the original
contractor not later than 10 days after its receipt by the owner. [1975 c.466 §7
(enacted in lieu of 87.020); 1981 c.757 §3; 1983 c.674 §1; 1983 c.757 §1; 1987
c.662 §1; 2001 c.311 §1; 2002 s.s.1 c.6 §§1,4; 2003 c.778 §10]
87.023 Notice of right to lien; form of
notice. The notice of right to a lien required
under ORS 87.021 shall include, but not be limited to, the following
information and shall be substantially in the following form:
______________________________________________________________________________
NOTICE OF
RIGHT TO A LIEN. WARNING:
READ THIS
NOTICE. PROTECT YOURSELF FROM PAYING ANY CONTRACTOR OR SUPPLIER TWICE FOR THE
SAME SERVICE.
To: ______________________ Date of mailing: _____
Owner
______________________
Owner’s address
This is to inform you that ____________
has begun to provide ____________ (description of materials, equipment,
labor or services) ordered by ____________ for improvements to property you
own. The property is located at__________________.
A lien may be claimed for all materials,
equipment, labor and services furnished after a date that is eight days, not
including Saturdays, Sundays and other holidays, as defined in ORS 187.010,
before this notice was mailed to you.
Even if you or your mortgage lender have
made full payment to the contractor who ordered these materials or services,
your property may still be subject to a lien unless the supplier providing this
notice is paid.
THIS IS NOT A LIEN. It is a notice sent to
you for your protection in compliance with the construction lien laws of the
State of Oregon.
This notice has been sent to you by:
NAME:
_________
ADDRESS:
________
TELEPHONE:
______
IF YOU HAVE ANY QUESTIONS ABOUT THIS
NOTICE, FEEL FREE TO CALL US.
IMPORTANT
INFORMATION ON REVERSE SIDE
______________________________________________________________________________
______________________________________________________________________________
IMPORTANT INFORMATION FOR YOUR
PROTECTION
Under Oregon’s laws, those who work on
your property or provide labor, equipment, services or materials and are not
paid have a right to enforce their claim for payment against your property.
This claim is known as a construction lien.
If your contractor fails to pay
subcontractors, material suppliers, rental equipment suppliers, service
providers or laborers or neglects to make other legally required payments, the
people who are owed money can look to your property for payment, even if you
have paid your contractor in full.
The law states that all people hired by a
contractor to provide you with materials, equipment, labor or services must
give you a notice of right to a lien to let you know what they have provided.
WAYS TO PROTECT YOURSELF ARE:
-
RECOGNIZE that this notice of right to a lien may result in a lien against your
property unless all those supplying a notice of right to a lien have been paid.
-
LEARN more about the lien laws and the meaning of this notice by contacting the
Construction Contractors Board, an attorney or the firm sending this notice.
-
ASK for a statement of the labor, equipment, services or materials provided to
your property from each party that sends you a notice of right to a lien.
-
WHEN PAYING your contractor for materials, equipment, labor or services, you
may make checks payable jointly to the contractor and the firm
furnishing materials, equipment, labor or services for which you have received
a notice of right to a lien.
-
OR use one of the methods suggested by the “Information Notice to Owners.” If
you have not received such a notice, contact the Construction Contractors
Board.
-
GET EVIDENCE that all firms from whom you have received a notice of right to a
lien have been paid or have waived the right to claim a lien against
your property.
-
CONSULT an attorney, a professional escrow company or your mortgage lender.
______________________________________________________________________________
[1981 c.757 §5; 1983 c.757 §2; 1987 c.662 §2]
87.025
Priority of perfected liens; right to sell improvements separately from land;
notice to mortgagee; list of materials or supplies.
(1) A lien created under ORS 87.010 (2) or (6) and perfected under ORS 87.035
upon any lot or parcel of land shall be preferred to any lien, mortgage or
other encumbrance which attached to the land after or was unrecorded at the
time of commencement of the improvement.
(2) Except as provided in subsections (3)
and (6) of this section, a lien created under ORS 87.010 (1), (4) or (5) and
perfected under ORS 87.035 upon any improvement shall be preferred to all prior
liens, mortgages or other encumbrances upon the land upon which the improvement
was constructed. To enforce such lien the improvement may be sold separately
from the land; and the purchaser may remove the improvement within a reasonable
time thereafter, not to exceed 30 days, upon the payment to the owner of the
land of a reasonable rent for its use from the date of its purchase to the time
of removal. If such removal is prevented by legal proceedings, the 30 days
shall not begin to run until the final determination of such proceedings in the
court of first resort or the appellate court if appeal is taken.
(3) No lien for materials or supplies
shall have priority over any recorded mortgage or trust deed on either the land
or improvement unless the person furnishing the material or supplies, not later
than eight days, not including Saturdays, Sundays and other holidays as defined
in ORS 187.010, after the date of delivery of material or supplies for which a
lien may be claimed delivers to the mortgagee either a copy of the notice given
to the owner under ORS 87.021 to protect the right to claim a lien on the
material or supplies or a notice in any form that provides substantially the
same information as the form set forth in ORS 87.023.
(4) A mortgagee who has received notice of
delivery of materials or supplies in accordance with the provisions of subsection
(3) of this section, may demand a list of those materials or supplies including
a statement of the amount due by reason of delivery thereof. The list of
materials or supplies shall be delivered to the mortgagee within 15 days, not
including Saturdays, Sundays and other holidays as defined in ORS 187.010, of
receipt of demand, as evidenced by a receipt or a receipt of delivery of a
registered or certified letter containing the demand. Failure to furnish the
list or the amount due by the person giving notice of delivery of the materials
or supplies shall constitute a waiver of the preference provided in subsections
(1) and (2) of this section.
(5) Upon payment and acceptance of the
amount due to the supplier of materials or supplies, and upon demand of the
person making payment, the supplier shall execute a waiver of all lien rights
as to materials or supplies for which payment has been made.
(6) Unless the mortgage or trust deed is
given to secure a loan made to finance the alteration or repair, a lien created
under ORS 87.010 and perfected under ORS 87.035 for the alteration and repair
of an improvement commenced and made subsequent to the date of record of a duly
executed and recorded mortgage or trust deed on that improvement or on the site
shall not take precedence over the mortgage or trust deed.
(7) The perfection of a lien under ORS
87.035 relates to the date of commencement of the improvement as defined in ORS
87.005. Except as provided in subsection (3) of this section, the date of
creation of the lien under ORS 87.010 and the date of perfection of the lien
under ORS 87.035 do not affect the priorities under this section, the equal
priority of perfected lien claimants, or the distribution of proceeds to
perfected lien claimants under ORS 87.060 (6). [Amended by 1965 c.446 §2; 1967
c.602 §2; 1975 c.466 §8; 1981 c.757 §6; 1983 c.513 §1; 1983 c.674 §3; 1985
c.513 §1; 1987 c.662 §3]
87.027
Right of owner to demand list of services, materials, equipment and labor;
penalty for failure to provide list. An owner who
receives a notice of right to a lien in accordance with the provisions of ORS
87.021 may demand, in writing, from the person providing materials, equipment,
services or labor a list of materials or equipment or description of labor or services
supplied or a statement of the contractual basis for supplying the materials,
equipment, services or labor, including the percentage of the contract
completed, and the charge therefor to the date of the
demand. The supplier’s statement shall be delivered to the owner within 15
days, not including Saturdays, Sundays and other holidays as defined in ORS
187.010, of receipt of the owner’s written demand, as evidenced by a receipt or
a receipt of delivery of a certified or registered letter containing the
demand. Failure of the supplier to furnish the information requested
constitutes a loss of attorney fees and costs otherwise allowable in a suit to
foreclose a lien. [1981 c.757 §8; 1985 c.513 §2; 1987 c.662 §4]
87.030
Effect of owner’s knowledge of improvement; notice of nonresponsibility.
(1) Every improvement except an improvement made by a person other than the
landowner in drilling or boring for oil or gas, constructed upon lands with the
knowledge of the owner shall be deemed constructed at the instance of the
owner, and the interest owned shall be subject to any lien perfected pursuant
to the provisions of ORS 87.001 to 87.060 and 87.075 to 87.093, unless the
owner shall, within three days after the owner obtains knowledge of the
construction, give notice that the owner will not be responsible for the same
by posting a notice in writing to that effect in some conspicuous place upon
the land or the improvement situated thereon.
(2) Subsection (1) of this section does
not apply to a lien prohibited under ORS 87.037. [Amended by 1975 c.466 §9;
1987 c.662 §5; 2007 c.648 §9]
87.035
Perfecting lien; filing claim of lien; contents of claim.
(1) Every person claiming a lien created under ORS 87.010 (1) or (2) shall
perfect the lien not later than 75 days after the person has ceased to provide
labor, rent equipment or furnish materials or 75 days after completion of
construction, whichever is earlier. Every other person claiming a lien created
under ORS 87.010 shall perfect the lien not later than 75 days after the
completion of construction. All liens claimed shall be perfected as provided by
subsections (2) to (4) of this section.
(2) A lien created under ORS 87.010 shall
be perfected by filing a claim of lien with the recording officer of the county
or counties in which the improvement, or some part thereof, is situated.
(3) A claim of lien shall contain:
(a) A true statement of demand, after
deducting all just credits and offsets;
(b) The name of the owner, or reputed
owner, if known;
(c) The name of the person by whom the
claimant was employed or to whom the claimant furnished the materials or rented
the equipment or by whom contributions are owed; and
(d) A description of the property to be
charged with the lien sufficient for identification, including the address if
known.
(4) The claim of lien shall be verified by
the oath of the person filing or of some other person having knowledge of the
facts, subject to the criminal penalties for false swearing provided under ORS
162.075. [Amended by 1961 c.609 §1; 1973 c.671 §3; 1975 c.466 §10; 1983 c.517 §1;
1985 c.596 §1; 1987 c.662 §6]
87.036
Subcontractor’s perfection of claim of lien; notice; fee; rules.
(1) A subcontractor or a person that provides labor, materials or equipment for
a project to renovate, remodel, repair or otherwise alter an existing
owner-occupied residence may not perfect a claim of lien against the owner’s
property under ORS 87.035 if the subcontractor or the person provided or
contracted to provide services, labor, materials or equipment to a contractor
that was unlicensed at the earlier of the following times:
(a) The time the subcontractor or the
person first contracted with the contractor for the project; or
(b) The time the person first delivered
labor, materials or equipment to the project site.
(2) Subsection (1) of this section does
not apply if the services, labor, materials or equipment is purchased with cash
or consumer credit.
(3) The Construction Contractors Board may
notify a person at the person’s request of the status of a contractor’s license
using any means the board uses to notify a contractor of the contractor’s
license status. The board may charge the person a fee in an amount the board
specifies by rule for the cost of providing the notice to the person. [2010
c.77 §3]
Note:
87.036 was added to and made a part of the Construction Lien Law by legislative
action but was not added to any smaller series therein. See Preface to Oregon
Revised Statutes for further explanation.
87.037
Prohibition against claim of lien. An original
contractor may not claim a lien arising from the improvement of real property
if a written contract for the work is required by ORS 701.305 and the
contractor does not have a written contract. [2007 c.648 §5]
Note:
87.037 was added to and made a part of 87.001 to 87.060 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
87.039
Notice of filing claim of lien; effect of failure to give notice.
(1) A person filing a claim of lien pursuant to ORS 87.035 shall mail to the
owner and to the mortgagee a notice in writing that the claim has been filed. A
copy of the claim of lien shall be attached to the notice. The notice shall be
mailed not later than 20 days after the date of filing. Notice mailed to the
owner who received the notice of right to a lien as provided by ORS 87.021
shall be deemed in compliance with the requirement of this subsection, unless
the person giving notice has actual knowledge of changed ownership. Notice
mailed by any person to the mortgagee who received the notice required under
ORS 87.025 shall be deemed in compliance with this subsection unless the person
giving the notice has actual knowledge of a change of mortgagee.
(2) No costs, disbursements or attorney
fees otherwise allowable as provided by ORS 87.060 shall be allowed to any
party failing to comply with subsection (1) of this section. [1975 c.466 §14;
1983 c.674 §4; 1985 c.513 §3; 1987 c.662 §7]
87.040
[Repealed by 1975 c.466 §25]
87.045
Completion date of improvement; notice of completion, abandonment or nonabandonment; contents of notice.
(1) The completion of construction of an improvement shall occur when:
(a) The improvement is substantially
complete;
(b) A completion notice is posted and
recorded as provided by subsections (2) and (3) of this section; or
(c) The improvement is abandoned as
provided by subsection (5) of this section.
(2) When all original contractors employed
on the construction of an improvement have substantially performed their
contracts, any original contractor, the owner or mortgagee, or an agent of any
of them may post and record a completion notice. The completion notice shall
state in substance the following:
______________________________________________________________________________
Notice hereby is given that the building,
structure or other improvement on the following described premises, (insert the
legal description of the property including the street address, if known) has
been completed.
All persons claiming a lien upon the same
under the Construction Lien Law hereby are notified to file a claim of lien as
required by ORS 87.035.
Dated______, 2__
______________________
Original Contractor, Owner or Mortgagee
P. O. Address: ______________________
______________________________________________________________________________
(3) Any notice provided for in this
section shall be posted on the date it bears in some conspicuous place upon the
land or upon the improvement situated thereon. Within five days from the date
of posting the notice, the party posting it or the agent of the party shall
record with the recording officer of the county in which the property, or some
part thereof, is situated, a copy of the notice, together with an affidavit
indorsed thereon or attached thereto, made by the person posting the notice,
stating the date, place and manner of posting the notice. The recording officer
shall indorse upon the notice the date of the filing thereof and record and
index the notice in the statutory lien record as required by ORS 87.050.
(4) Anyone claiming a lien created under
ORS 87.010 on the premises described in a completion or abandonment notice for
labor or services performed and materials or equipment used prior to the date
of the notice shall perfect the lien pursuant to ORS 87.035.
(5) Except as provided in subsection (6)
of this section, an improvement is abandoned:
(a) On the 75th day after work on the
construction of the improvement ceases; or
(b) When the owner or mortgagee of the
improvement or an agent of either posts and records an abandonment notice in
writing signed by either the owner or the mortgagee.
(6) When work on the construction of an
improvement ceases, if the owner or mortgagee of the improvement intends to
resume construction and does not want abandonment to occur, the owner or
mortgagee or an agent of either shall post and record a nonabandonment
notice in writing signed by either the owner or mortgagee. The notice of nonabandonment shall be posted and recorded not later than
the 74th day after work on the construction ceases. The notice of nonabandonment may be renewed at intervals of 150 days by
rerecording the notice.
(7) The notices of abandonment or nonabandonment described in subsections (5) and (6) of this
section shall state in substance:
(a) That the improvement is either
abandoned or not abandoned.
(b) The legal description of the property,
including the street address if known, on which the improvement is located.
(c) In the case of an abandonment notice,
that all persons claiming a lien on the improvement should file a claim of lien
pursuant to ORS 87.035.
(d) In the case of a nonabandonment
notice, the reasons for the delay in construction.
(e) The date of the notice.
(f) The address of the person who signs
the notice. [Amended by 1975 c.466 §11; 1985 c.596 §2; 1987 c.662 §8; 2001
c.577 §6; 2005 c.22 §53]
87.050
Recording. The recording officer of each county
shall record all notices and claims of lien required to be filed by the
provisions of ORS 87.001 to 87.060 and 87.075 to 87.093 in the statutory lien
record. The notices and claims recorded in the statutory lien record shall be
indexed as deeds and other conveyances are required by law to be indexed and
shall constitute a public record of the county. [Amended by 1975 c.466 §12;
1987 c.662 §9; 2001 c.577 §2]
87.055
Duration of lien; when suit to enforce lien commences.
No lien created under ORS 87.010 shall bind any improvement for a longer period
than 120 days after the claim of lien is filed unless suit is brought in a
proper court within that time to enforce the lien, or if extended payment is
provided and the terms thereof are stated in the claim of lien, then 120 days
after the expiration of such extended payment, but no lien shall be continued
in force for a longer time than two years from the time the claim of lien is
filed under ORS 87.035 by any agreement to extend payment. For purposes of this
section:
(1) Subject to subsection (2) of this
section, a suit to enforce the lien shall be deemed commenced as provided in
ORS 12.020.
(2) With regard to other parties who are
construction lien claimants under ORS 87.035, a suit to enforce the lien shall
be deemed to commence when the complaint is filed, whether or not summons or
service with regard to such parties is completed within the time required by
ORS 12.020. [Amended by 1975 c.466 §13; 1985 c.341 §1; 1985 c.513 §4; 1987
c.662 §10]
87.057
Notice of intent to foreclose; list of materials furnished and statement of
prices; effect of failure to give notice. (1) A
person intending to foreclose a lien shall deliver to the owner of the property
upon which the lien is claimed and to the mortgagee a notice in writing not
later than 10 days prior to commencement of the suit stating that such person,
or others, intends to commence suit to foreclose the lien. Notice delivered to
the mortgagee who received the notice required by ORS 87.025 shall be deemed in
compliance with this subsection, unless the person giving notice has actual
knowledge of a change of mortgagee.
(2) Where a notice of intent to foreclose
a lien has been given as provided by subsection (1) of this section, the sender
of the notice upon demand of the owner shall furnish to the owner within five
days after the demand a list of the materials and supplies with the charge therefor, or a statement of a contractual basis for the
owner’s obligation, for which a claim will be made in the suit to foreclose.
(3) A plaintiff or cross-complainant
seeking to foreclose a lien in a suit to foreclose shall plead and prove
compliance with subsections (1) and (2) of this section. No costs,
disbursements or attorney fees otherwise allowable as provided by ORS 87.060
shall be allowed to any party failing to comply with the provisions of this
section. [1975 c.466 §15; 1987 c.662 §11]
87.058
[1981 c.618 §16; 1987 c.662 §12; 1991 c.181 §15; 2001 c.197 §8; 2007 c.793 §2;
repealed by 2011 c.630 §53]
Note:
Section 54 (3), chapter 630, Oregon Laws 2011, provides:
Sec.
54. (3) The repeal of ORS 87.058 by section
53 of this 2011 Act does not affect any stay of proceedings issued by a court
prior to July 1, 2011, under ORS 87.058. Notwithstanding the repeal of ORS
87.058 by section 53 of this 2011 Act, an owner of a structure subject to a
lien perfected under ORS 87.035 who files a complaint with the board prior to
July 1, 2011, may obtain on or after July 1, 2011, a stay of proceedings as
described on the suit to foreclose the lien as described in ORS 87.058 as
amended and in effect immediately prior to July 1, 2011. [2011 c.630 §54(3)]
87.059
Stay in proceedings to enforce lien; requirements; procedure; dissolution of
stay. (1) As used in this section:
(a) Notwithstanding ORS 87.005, “contractor”
has the meaning given that term in ORS 701.005.
(b) “Board” means the Construction
Contractors Board established in ORS 701.205.
(2) If a person files a suit to enforce a
lien perfected under ORS 87.035 and the owner of the structure subject to that
lien files a complaint that is being processed by the board under ORS 701.145
against a contractor who performed work on the structure, the owner may obtain
a stay of proceedings on the suit to enforce the lien if:
(a) The owner already has paid the
contractor for that contractor’s work that is subject to this chapter on the
structure;
(b) The person suing to enforce the lien
perfected under ORS 87.035:
(A) Performed work that is subject to ORS
chapter 701 on the structure for the contractor who has been paid by the owner;
(B) Furnished labor, services or materials
or rented or supplied equipment used on the structure to the contractor who has
been paid by the owner; or
(C) Otherwise acquired the lien as a
result of a contribution toward completion of the structure for which the
contractor has been paid by the owner; and
(c) The continued existence of the lien on
which the suit is pending is attributable to the failure of the contractor who
has been paid by the owner to pay the person suing for that person’s
contribution toward completion of the structure.
(3) The owner may petition for the stay of
proceedings described in subsection (2) of this section by filing the following
papers in the circuit court in which the suit on the lien is pending:
(a) A certified copy of the complaint
filed for processing by the board under ORS 701.145; and
(b) An affidavit signed by the owner that
contains:
(A) A description of the structure;
(B) The street address of the structure;
(C) A statement that the structure is the
structure upon which the suit to enforce the lien is pending; and
(D) A statement that the petitioner is the
owner of the structure.
(4) Upon receipt of a complete petition
described in subsection (3) of this section, the circuit court shall stay
proceedings on the suit to enforce the lien.
(5) After the board order on the complaint
becomes final and the board issues any required notice for payment against the
contractor’s bond or deposit, the circuit court shall dissolve the stay ordered
under subsection (4) of this section. [2011 c.630 §56]
Note:
87.059 becomes operative July 1, 2017, and applies to complaints filed on or
after July 1, 2017. See section 73, chapter 630, Oregon Laws 2011.
Note:
87.059 was added to and made a part of 87.001 to 87.060 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
87.060
Foreclosure; right to jury trial; distribution of proceeds of foreclosure sale.
(1) A suit to enforce a lien perfected under ORS 87.035 shall be brought in
circuit court, and the pleadings, process, practice and other proceedings shall
be the same as in other cases.
(2) In a suit to enforce a lien perfected
under ORS 87.035, evidence of the actual costs of the labor, equipment,
services and material provided by the lien claimant establishes a rebuttable
presumption that those costs are the reasonable value of that labor, equipment,
services and material.
(3) In a suit to enforce a lien perfected
under ORS 87.035, the court shall allow or disallow the lien. If the lien is
allowed, the court shall proceed with the foreclosure of the lien and resolve
all other pleaded issues. If the lien is disallowed, and a party has made a
demand for a jury trial as provided for in subsection (4) of this section, the
court shall impanel a jury to decide any issues triable
of right by a jury. All other issues in the suit shall be tried by the court.
(4) A party may demand a trial by jury of
any issue triable of right by a jury after the lien
is disallowed, if that party serves a demand therefor
in writing upon the other parties at any time prior to commencement of the
trial to foreclose the lien. The demand shall be filed with the court. The
failure of a party to serve a demand as required by this subsection shall constitute
a waiver by the party of trial by jury. A demand for trial by jury made as
provided in this subsection may not be withdrawn without the consent of the
parties.
(5) When notice of intent to foreclose the
lien has been given, pleaded and proven as provided for in ORS 87.057, the
court, upon entering judgment for the lien claimant, shall allow as part of the
costs all moneys paid for the filing or recording of the lien and all moneys
paid for title reports required for preparing and foreclosing the lien. In a
suit to enforce a lien perfected under ORS 87.035 the court shall allow a
reasonable amount as attorney fees at trial and on appeal to the party who
prevails on the issues of the validity and foreclosure of the lien.
(6) In case the proceeds of any sale under
ORS 87.001 to 87.060 and 87.075 to 87.093 are insufficient to pay all lienholders claiming under such statutes, the liens of all
persons shall be paid pro rata. Each claimant is entitled to execution for any
balance due the claimant after the distribution of the proceeds, and that
execution shall be issued by the clerk of the court, upon demand, after the
return of the sheriff or other officer making the sale showing the balance due.
(7) All suits to enforce any lien
perfected under ORS 87.035 shall have preference on the calendar of the court
over every civil suit, except suits to which the state is a party, and shall be
tried by the court without unnecessary delay. In such a suit, all persons
personally liable, and all lienholders whose claims
have been filed for record pursuant to ORS 87.035, shall, and all other persons
interested in the matter in controversy, or in the property sought to be
charged with the lien, may be made parties; but persons not made parties are
not bound by the proceedings. The proceedings upon the foreclosure of the liens
perfected under ORS 87.035 shall, as nearly as possible, conform to the
proceedings of a foreclosure of a mortgage lien upon real property. [Amended by
1975 c.466 §16; 1981 c.897 §20; 1981 c.898 §44; 1983 c.517 §2; 1987 c.662 §13]
87.065
[Amended by 1961 c.609 §2; repealed by 1975 c.466 §25]
87.070
Amount of recovery by contractor; respective rights of contractor and owner.
Any contractor may recover, upon a lien perfected by the contractor, only the
amount due to the contractor according to the terms of the contract, after
deducting all claims of other parties for work done and materials furnished for
which a lien is perfected under ORS 87.035. Where a claim of lien is filed
pursuant to ORS 87.035 for work done or material or equipment furnished to any
contractor, the contractor shall defend any action brought thereupon at the
expense of the contractor, and during the pendency of such action the owner may
withhold from the contractor the amount of money for which such claim of lien
is filed. In case of judgment against the owner or the property of the owner
upon the lien, the owner may deduct from any amount due or to become due by the
owner to the contractor the amount of such judgment and costs; and if the
amount of the judgment and costs exceeds the amount due by the owner to the
contractor, or if the owner has settled with the contractors in full, the owner
may recover back from the contractor any amount so paid in excess of the
contract price, and for which the contractor was originally the party liable. [Amended
by 1987 c.662 §14]
87.075
Exemption of building materials from attachment by third persons.
When a person furnishes or procures materials for use in the construction of an
improvement, those materials are not subject to attachment, execution or other
legal process to enforce any debt due by the purchaser of the materials, except
a debt due for the purchase money thereof, so long as in good faith the
materials are about to be applied to the construction of the improvement. [Amended
by 1975 c.466 §23]
87.076
Bond or deposit of money; amount; demand for release of lien; effect.
(1) The owner of an improvement or land against which a lien perfected under
ORS 87.035 is claimed, or an interested person, may file with the recording
officer of the county in whose office the claim of lien is filed a bond
executed by a corporation authorized to issue surety bonds in the State of
Oregon to the effect that the principal or principals on the bond shall pay the
amount of the claim and all costs and attorney fees that are awarded against
the improvement or land on account of the lien. The bond shall be in an amount
not less than 150 percent of the amount claimed under the lien, or in the
amount of $1,000, whichever is greater.
(2)(a) In lieu of the surety bond provided
for in subsection (1) of this section, the owner of an improvement or land
against which a lien perfected under ORS 87.035 is claimed, or an interested
person, may deposit with the treasurer of the county in which the claim of lien
is filed a sum of money or the equivalent of money equal in value to 150
percent of the amount claimed under the lien, or in the amount of $1,000,
whichever is greater.
(b) A person who makes a deposit under
paragraph (a) of this subsection is entitled to any investment income. The
treasurer shall pay the investment income to the person who makes the deposit
at the time the treasurer, in accordance with ORS 87.083, distributes the money
deposited under this subsection. The person who makes the deposit bears the
risk for a loss that results from an investment of the money deposited.
(3) A person may file a bond or deposit
money under subsection (1) or (2) of this section at any time after the claim
of lien is filed under ORS 87.035.
(4)(a) A person entitled to post a bond
under subsection (1) of this section or a cash deposit under subsection (2) of
this section may deliver pursuant to ORS 87.018 a written demand to the lien
claimant that a lien perfected under ORS 87.035 be released and a notice that
if the lien is not released the person may recover the actual costs the person
incurred in complying with this section and ORS 87.078 and 87.081 or the sum of
$500, whichever is greater. If the lien is not released within 10 days after
the demand and notice is delivered and the lien claimant or an assignor of the
lien claimant does not bring a suit to foreclose the lien within the time
provided in ORS 87.055, and if the person who made the demand has complied with
this section and ORS 87.078 and 87.081, then the lien claimant or assignor of
the lien claimant who fails to release or foreclose the lien is liable to the
person for the actual costs the person incurred in complying with this section
and ORS 87.078 and 87.081 or the sum of $500, whichever is greater, in addition
to any other remedy provided by law or equity.
(b) In an action to recover damages under
this subsection in which the plaintiff prevails, the court, at trial and on
appeal, shall allow and fix a reasonable amount for attorney fees for
prosecution of the action, if the court finds that a written demand for payment
of the claim was made on the defendant not less than 20 days before
commencement of the action. However, the court may not allow attorney fees to
the plaintiff, but shall allow attorney fees to the defendant, if the court
finds that the defendant tendered to the plaintiff prior to commencement of the
action an amount not less than the damages awarded to the plaintiff.
(c) If a lien claimant or an assignor of
the lien claimant is served with a demand under paragraph (a) of this
subsection and is a prevailing party in the suit to foreclose the lien, then in
addition to other costs and attorney fees to which the lien claimant or the
assignor of the lien claimant is entitled, the court shall allow the actual
costs incurred in addressing the demand or the sum of $500, whichever is
greater. [1975 c.466 §17; 1983 c.513 §3; 1987 c.662 §15; 1999 c.845 §1; 2009
c.513 §1]
87.078
Notice of filing bond or depositing money; contents of notice; effect of
failure to give notice. (1) A person who files a bond or
deposits money under ORS 87.076 shall cause to be served upon the lien claimant
a notice of the filing or deposit and, if a bond, a copy thereof, not later
than 20 days after the filing or deposit. The notice shall state the location
and time of the filing or deposit.
(2) If a person does not notify the lien
claimant as required by subsection (1) of this section, the filing of the bond
or the deposit of money is of no effect and the provisions of ORS 87.083 shall
not apply in a suit to foreclose the lien for which the filing or deposit is
made. [1975 c.466 §18]
87.080
[Amended by 1967 c.407 §3; repealed by 1975 c.648 §72]
87.081
Filing affidavit with county officer. (1) When a
person files a bond with the recording officer of the county under ORS 87.076
and serves notice of the filing upon the lien claimant, the person shall file
with the same recording officer an affidavit stating that such notice was
served.
(2) When a person deposits money with the
treasurer of a county under ORS 87.076 and serves notice of the deposit upon
the lien claimant, the person shall file with the recording officer of the same
county an affidavit stating that the deposit was made and notice was served. [1975
c.466 §19; 2005 c.22 §54]
87.082
[1967 c.407 §§1,2; repealed by 1975 c.648 §72]
87.083
Foreclosure after filing of bond or deposit of money; effect of filing or
deposit; disposition of bond or money. (1) A suit to
foreclose a lien pursuant to ORS 87.060 that is commenced or pending after a
bond is filed or money deposited under ORS 87.076 shall proceed as if no filing
or deposit was made except that the lien shall attach to the bond or money upon
the filing or deposit and the service of notice thereof upon the lien claimant.
The property described in the claim of lien is thereafter entirely free of the
lien and is not involved in subsequent proceedings.
(2) The county or an officer or employee
of the county may not be named or otherwise made a party to a suit described in
subsection (1) of this section.
(3) When a bond is filed or money is
deposited, if, in a suit to enforce the lien for which the filing or deposit is
made, the court allows the lien, the lien must be satisfied out of the bond or
money. The court shall include as part of the court’s judgment an order that
specifies the amount the treasurer must release to the judgment creditor and
the amount of the remaining balance that the treasurer must release to the
person who deposited the money.
(4) When a bond is filed or money is
deposited, if, in a suit to enforce the lien for which the filing or deposit is
made, the court disallows the lien, the court shall include as part of the
court’s judgment an order to return the bond or money to the person who filed
the bond or deposited the money.
(5) Notwithstanding an order from the
court under subsection (3) or (4) of this section or an order or notice under
ORS 87.088, if the county treasurer is not certain about how to distribute
money deposited under ORS 87.076, the treasurer shall notify the lien claimant
and the person who deposited the money of how the treasurer intends to
distribute the money. If within 10 days after the date of the treasurer’s
notice a party to the suit to foreclose the lien objects to the notice, the
treasurer may:
(a) Hold the money until the court or a
stipulation of the parties provides further direction; or
(b) Commence an interpleader
proceeding under ORCP 31. [1975 c.466 §20; 1987 c.662 §16; 2005 c.22 §55; 2009
c.513 §2]
87.085
[Repealed by 1975 c.648 §72]
87.086
Determination of adequacy of bond. If a lien
claimant considers the bond filed with a recording officer of a county
inadequate to protect the claim of the lien claimant for some reason other than
the amount of the bond, the lien claimant shall, within 10 days of receipt of
the notice of filing, petition the court in which the suit to foreclose the
lien may be brought for a determination of the adequacy of the bond. The lien
claimant shall state in detail the reasons for the inadequacy. Not later than
two days after the filing of the petition with the court, the lien claimant
shall send a notice of the filing and a copy of the petition by registered or
certified mail to the person who filed the bond. After a hearing, if the court
determines that the bond is inadequate for one or more of the reasons stated by
the lien claimant, the court shall order such action as shall make the bond
adequate to protect the claim of lien. [1975 c.466 §21; 1987 c.662 §17]
87.088
Release of lien or return of money. The county
recording officer shall record a written release of the lien or the county
treasurer in whose office money is deposited under ORS 87.076 shall return the
money to the person who made the deposit if:
(1) The person who filed the bond or
deposited the money under ORS 87.076 notifies the lien claimant and the
treasurer in writing and by certified mail that a suit to foreclose the lien
was not commenced within the time specified by ORS 87.055. The notice shall
provide that the lien claimant has 15 calendar days in which to object to the
release of the lien and the return of the money and to provide documentation
that demonstrates that a suit was timely commenced or that the time for
commencement has not expired. If the treasurer receives an objection, the
treasurer may decide how to distribute the money or may commence an interpleader proceeding under ORCP 31.
(2) The person who filed the bond or
deposited the money presents a certified copy of a court’s order for the
release of the bond or all or some of the money to the person.
(3) The person who filed the bond or
deposited the money presents a written release of lien signed by the lien
claimant. [1975 c.466 §22; 1999 c.654 §5; 2009 c.513 §3]
87.089
Limitations on actions. The provisions of ORS 87.076,
87.083 and 87.088 do not create a cause of action and may not be asserted as a
basis for a per se negligence action. [2009 c.513 §5]
87.090
[Repealed by 1975 c.648 §72]
87.091
[2003 c.778 §9; repealed by 2010 c.77 §9]
87.093
Information Notice to Owner; rules; contents; when notice must be delivered;
effect of failure to deliver notice; penalty. (1)
The Construction Contractors Board shall adopt by rule a form entitled “Information
Notice to Owner” which shall describe, in nontechnical language and in a clear
and coherent manner using words in their common and everyday meanings, the
pertinent provisions of the Construction Lien Law of this state and the rights
and responsibilities of an owner of property and an original contractor under
that law. The “Information Notice to Owner” shall include signature lines for
the contractor and the property owner. The rights and responsibilities
described in the form shall include, but not be limited to:
(a) Methods by which an owner may avoid
multiple payments for the same materials and labor;
(b) The right to file a complaint against
a licensed contractor with the board and, if appropriate, to be reimbursed from
the contractor’s bond filed under ORS chapter 701; and
(c) The right to receive, upon written
request therefor, a statement of the reasonable value
of materials, equipment, services or labor provided from the persons providing
the materials, equipment, services or labor at the request of an original
contractor and who have also provided notices of right to a lien.
(2) Each original contractor shall deliver
a copy of the “Information Notice to Owner” adopted by the board under this
section to:
(a) The first purchaser of residential
property constructed by the contractor and sold before or within the 75-day
period immediately following the completion of construction; and
(b) The owner or an agent of the owner,
other than an original contractor, at the time of signing a residential
construction or improvement contract with the owner.
(3) The contractor shall deliver the “Information
Notice to Owner” personally, by registered or certified mail or by first class
mail with certificate of mailing.
(4) This section applies only to a
residential construction or improvement contract for which the aggregate
contract price exceeds $2,000. If the price of a residential construction or
improvement contract was initially less than $2,000, but during the course of
the performance of the contract exceeds that amount, the original contractor
shall mail or otherwise deliver the “Information Notice to Owner” not later
than five days after the contractor knows or should reasonably know that the
contract price will exceed $2,000.
(5) Notwithstanding subsections (2) and
(4) of this section, the original contractor need not send the owner an “Information
Notice to Owner” if the owner is a contractor licensed with the board under ORS
chapter 701.
(6) Notwithstanding ORS 87.010 and 87.030,
if an original contractor does not deliver an owner or agent with an “Information
Notice to Owner” as required under subsections (2) to (4) of this section, the
original contractor may not claim any lien created under ORS 87.010 upon any
improvement, lot or parcel of land of the owner for labor, services or
materials supplied under the residential construction or improvement contract
for which the original contractor failed to deliver the required “Information
Notice to Owner”.
(7) If an original contractor does not
deliver an “Information Notice to Owner” to an owner or agent as required under
subsection (2) of this section, the board may suspend the license of the
original contractor for any period of time that the board considers appropriate
or impose a civil penalty of not more than $5,000 upon the original contractor
as provided in ORS 701.992.
(8) As used in this section:
(a) “Residential construction or
improvement” means the original construction of residential property and the
repair, replacement, remodeling, alteration or improvement of residential
property.
(b) “Residential construction or
improvement contract” means a written agreement between an original contractor
and an owner for the performance of a residential construction or improvement
and all labor, services and materials furnished and performed under the
agreement.
(c) “Residential property” includes, but
is not limited to, a residential dwelling and the driveways, swimming pools,
terraces, patios, fences, porches, garages, basements, other structures and
land that are adjacent or appurtenant to a residential dwelling. [1981 c.757 §9;
1983 c.757 §3; 1985 c.596 §3; 1987 c.662 §18; 1991 c.67 §14; 1995 c.771 §7;
1999 c.402 §1; 2007 c.648 §16; 2007 c.793 §3; 2009 c.408 §1]
87.095
[Repealed by 1975 c.648 §72]
87.100
[Amended by 1973 c.54 §1; repealed by 1975 c.648 §72]
87.105
[Repealed by 1975 c.648 §72]
87.110
[Repealed by 1975 c.648 §72]
87.115
[Repealed by 1975 c.648 §72]
87.120
[Repealed by 1975 c.648 §72]
87.122
[1955 c.438 §§1,2; repealed by 1975 c.648 §72]
87.125
[Amended by 1967 c.327 §1; 1973 c.307 §1; repealed by 1975 c.648 §72]
87.130
[Amended by 1961 c.519 §1; repealed by 1975 c.648 §72]
87.135
[Repealed by 1975 c.648 §72]
87.140
[Repealed by 1975 c.648 §72]
LIENS
GENERALLY
87.142
Definitions for ORS 87.142 to 87.490 and 87.910.
As used in ORS 87.142 to 87.490 and 87.910, unless the context otherwise
requires:
(1) “Animal” means any mammal, bird, fish,
reptile, amphibian or insect.
(2) “Chattel” includes movable objects
that are capable of being owned, but does not include personal rights not
reduced to possession but recoverable by an action at law or suit in equity,
money, evidence of debt and negotiable instruments.
(3) “Electric cooperative” means a cooperative
corporation organized under ORS chapter 62 the principal business of which is
the construction, maintenance and operation of an electric transmission and
distribution system for the benefit of the members of that cooperative
corporation and which has no other principal business or purpose.
(4) “Electric utility” means a corporation
engaged in distributing electricity, directly or indirectly, to or for the
public and regulated by the Public Utility Commission under ORS chapter 757.
(5) “Excavation” means a shaft, tunnel,
incline, adit, drift or other excavation designed for
the use, working or draining of a mine.
(6) “Fair market value” means, with
respect to a chattel sold at a foreclosure sale under this chapter, the price
of chattels of the same kind and condition prevailing in the county of sale at
the time of sale.
(7) “Fungible chattels” means chattels of
which any unit is the equivalent of any other unit.
(8) “Improvement” means a road, tramway,
trail, flume, ditch, pipeline, building, structure, superstructure or
boardinghouse used for or in connection with the working or development of a
mine.
(9) “Irrigation” includes the use of
canals, ditches, pipes, pumps, spraying apparatus and other mechanical devices
to water land artificially.
(10) “Mine” means a mine, lode, mining
claim or deposit that contains or may contain coal, metal or mineral of any
kind.
(11) “Mortgagee” means a person who has a
valid subsisting mortgage of record or trust deed of record securing a loan
upon any real property to be charged with a lien under ORS 87.352 to 87.362.
(12) “Nursery stock” means fruit trees,
fruit-tree stock, nut trees, grapevines, fruit bushes, rose bushes, rose stock,
forest and ornamental trees, and shrubs both deciduous and evergreen, florists’
stock and cuttings, scions and seedlings of fruit or ornamental trees and
shrubs, and all other fruit-bearing plants and parts thereof and plant products
for propagation or planting.
(13) “Owner” includes:
(a) A person who has title to a chattel or
real property;
(b) A person who is in possession of a
chattel or real property under an agreement for the purchase thereof, whether
the title thereto is in the person or the vendor of the person; or
(c) A person who is in lawful possession
of a chattel or real property.
(14) “Person” includes individuals,
corporations, associations, firms, partnerships and joint stock companies.
(15) “Security interest” means an interest
in a chattel reserved or created by an agreement that secures payment or
performance of an obligation as more particularly defined by ORS 71.2010
(2)(ii).
(16) “Timbers” means sawlogs,
spars, piles, felled logs and other wood growth that has been cut or separated
from land.
(17) “Wood products” includes lumber, slabwood, plywood and other wood products produced from
timbers. The term does not include paper or products made from paper. [1975
c.648 §1; 1999 c.940 §1; 2001 c.301 §5; 2009 c.181 §104]
87.145
[Repealed by 1975 c.648 §72]
87.146
Priorities of liens. (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 to 87.232
have equal priority. When a judgment is given foreclosing two or more liens
created by ORS 87.216 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 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 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 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. [1975 c.648 §2; 2003 c.576 §335]
87.150
[Repealed by 1975 c.648 §72]
POSSESSORY
CHATTEL LIENS
87.152
Possessory lien for labor or material expended on chattel.
A person who makes, alters, repairs, transports, stores, pastures, cares for,
provides services for, supplies materials for or performs labor on a chattel at
the request of the owner or lawful possessor of the chattel has a lien on that
chattel in the possession of the person for the reasonable or agreed charges
for labor, materials or services of the person, and the person may retain
possession of the chattel until those charges are paid. [1975 c.648 §3]
87.155
[Repealed by 1975 c.648 §72]
87.156
Innkeeper’s lien. (1) Except as provided in
subsection (2) of this section, the keeper of an inn, hotel or motel has a lien
on the chattels brought into the inn, hotel or motel belonging to or under the
control of a guest or boarder for the reasonable or agreed charges due the
keeper from the guest or boarder for accommodation, board and lodging, services,
money, labor and materials furnished at the request of the guest or boarder by
the keeper. The keeper may retain possession of the chattels until those
charges are paid.
(2)(a) The keeper may not retain
prescription or nonprescription medications, medical equipment or apparatus,
food or children’s clothing or accessories after the guest or boarder requests
return of the property.
(b) If the keeper retains property in
violation of this subsection, the keeper waives any claim to unpaid charges
against the guest or boarder.
(c) In any action brought by the guest or
boarder to compel the return of the property or to recover damages based on its
retention, the prevailing party may recover attorney fees. [1975 c.648 §4; 1989
c.590 §2; 2009 c.599 §16]
87.159
Lien for care of animal. A person who, or governmental
agency that, transports, pastures, feeds, cares for or provides treatment to an
animal that has been impounded under ORS 167.345 has a lien on the animal in
the possession of the person or governmental agency for the reasonable charges
for transportation, pasturage, feed, care or treatment provided by the person
or governmental agency, and the person or governmental agency may retain
possession of the animal until those charges are paid. [1989 c.349 §2]
87.160
[Repealed by 1975 c.648 §72]
87.162
Landlord’s lien. Except as provided in ORS 87.156
and 90.120, a landlord has a lien on all chattels, except wearing apparel as
defined in ORS 18.345 (1), owned by a tenant or occupant legally responsible for
rent, brought upon the leased premises, to secure the payment of rent and such
advances as are made on behalf of the tenant. The landlord may retain the
chattels until the amount of rent and advances is paid. [1975 c.648 §5; 1981
c.258 §1; 1997 c.374 §8]
87.165
[Repealed by 1975 c.648 §72]
87.166
Attachment of liens. (1) Except as provided in
subsection (2) of this section, the liens created by ORS 87.152 to 87.162
attach to the chattels described in those sections when:
(a) The services or labor are performed or
the materials or money are furnished by the lien claimant to the lien debtor;
and
(b) The charges for the services or labor
performed and materials or money furnished are due and the lien debtor either
knows or should reasonably know that the charges are due.
(2) The lien created by ORS 87.162
attaches to the chattels described in that section on the 20th day after rents
or advances occur or attaches when the occupant or tenant attempts to remove
the chattels from the premises while there are unpaid rents or advances. A
person claiming a lien under ORS 87.162 may take the chattels subject to that
lien into the possession of the person when the lien attaches or at any time
thereafter. [1975 c.648 §6]
87.170
[Repealed by 1975 c.648 §72]
87.172
Time period before foreclosure allowed. (1) Except as
otherwise provided in this section, a person claiming a lien under ORS 87.152
to 87.162 must retain the chattel that is subject to the lien for at least 60
days after the lien attaches to the chattel before foreclosing the lien.
(2) Except as otherwise provided in this
subsection, a person claiming a lien under ORS 87.152 for cost of care,
materials and services bestowed on an animal must retain the animal for at
least 30 days after the lien attaches to the animal before foreclosing the
lien. If the lien is for veterinary services to a domestic animal, the person
must retain the animal for at least five days after the lien attaches to the
animal before foreclosing the lien. As used in this subsection, “domestic
animal” means an animal that is not livestock as defined in ORS 72.1030 and for
which the veterinary services were requested by an owner or other person with
apparent authority regarding care of the animal.
(3) A person claiming a lien under ORS
87.152 for the cost of removing, towing or storage of a vehicle that is
appraised by a person who holds a certificate issued under ORS 819.480 to have
a value of:
(a) $1,000 or less but more than $500,
must retain the vehicle at least 30 days after the lien attaches to the vehicle
before foreclosing the lien.
(b) $500 or less, must retain the vehicle
at least 15 days after the lien attaches to the vehicle before foreclosing the
lien. [1975 c.648 §7; 1979 c.401 §1; 1981 c.861 §1; 1983 c.338 §881; 1993 c.326
§9; 1995 c.758 §18; 2005 c.738 §7; 2011 c.399 §2]
87.175
[Repealed by 1975 c.648 §72]
87.176
Fees for storage of chattel; notice to lien debtor; effect of failure to
comply. (1) When the lien claimed under ORS
87.152 to 87.162 is for other than the storage of a chattel, if the lien
claimant incurs expenses in storing the chattel prior to foreclosure, the lien
claimant may charge reasonable fees for the storage of the chattel for a period
not exceeding six months from the date that the lien attaches to the chattel. A
lien claimant seeking to recover storage fees for storage expenses incurred
prior to foreclosure shall send a written notice, within 20 days from the date
that the storage fees began to accrue, to the lien debtor and every other person
that requires notification under ORS 87.196. The claimant shall transmit the
notice by certified mail. A person notified under ORS 87.196 need not receive
the notice within the 20-day period, but within a reasonable time. If the lien
claimant fails to comply with the notice requirements of this subsection, the
lien claimant is limited to recovering reasonable fees for the storage of the
chattel prior to foreclosure for a period of time not exceeding 20 days from
the date that the lien attached to the chattel.
(2) When the lien claimed under ORS 87.152
to 87.162 is for the storage of a chattel, the lien claimant shall send a
written notice stating that storage fees are accruing, within 20 days after the
chattel has been placed in storage, to the lien debtor and every other person
that requires notification under ORS 87.196. The claimant shall transmit the
notice by certified mail. A person notified under ORS 87.196 need not receive
the notice within the 20-day period, but within a reasonable time. If the claimant
fails to comply with the notice requirements of this subsection, the amount of
the claimant’s lien shall be limited to a sum equal to the reasonable storage
expenses incurred within the 20-day period. [1975 c.648 §8; 1993 c.385 §1]
87.177
Bond or deposit of money for lien for storage of chattel; amount; notice to
lien claimant; filing affidavit with county officer.
(1) When a lien claimed under ORS 87.152 to 87.162 is for the storage of a
chattel and the amount of the lien claimed is $750 or more, the lien debtor, or
any other interested person, may file with the recording officer of the county
in which the lien claimant obtained possession of the chattel subject to the
lien from the lien debtor a bond executed by a corporation authorized to issue
surety bonds in the State of Oregon to the effect that the principal or
principals on the bond shall pay the amount of the claim and all costs and
attorney fees that are awarded against the chattel on account of the lien. The
bond shall be in an amount not less than 200 percent of the amount claimed
under the lien for the storage of the chattel.
(2)(a) In lieu of the surety bond provided
for in subsection (1) of this section, when a lien claimed under ORS 87.152 to
87.162 is for the storage of a chattel and the amount of the lien claimed is
$750 or more, the lien debtor, or any other interested person, may deposit with
the treasurer of the county in which the lien claimant obtained possession of
the chattel subject to the lien from the lien debtor a sum of money or its
equivalent equal in value to 200 percent of the amount claimed under the lien
for the storage of the chattel.
(b) The court in which any proceeding to
foreclose the lien for the storage of the chattel may be brought may, upon
notice and upon motion by a person who makes a deposit under paragraph (a) of
this subsection, order the money invested in such manner as the court may
direct. A person who makes a deposit under paragraph (a) of this subsection
shall be entitled to any income from the investments and the treasurer of the
county shall pay the income when received to the depositor without order.
(3) A bond or money may be filed or
deposited under subsection (1) or (2) of this section at any time after a lien
for the storage of a chattel is claimed under ORS 87.152 to 87.162 and the
amount of the lien claimed is $750 or more.
(4) A person who files a bond or deposits
money under subsections (1) to (3) of this section shall cause to be served
upon the lien claimant a notice of the filing or deposit. If the person files a
bond, the notice shall include a copy of the bond. The notice shall be filed
not later than 20 days after the filing or deposit and shall state the location
and time of the filing or deposit.
(5) If a person does not notify the lien
claimant as required by subsection (4) of this section, the filing of the bond
or the deposit of money is of no effect and the provisions of subsections (1)
to (3) of this section do not apply in a suit to foreclose the lien for which
the filing or deposit is made.
(6) When a person files a bond with the
recording officer of a county under subsections (1) to (3) of this section and
serves notice of the filing upon the lien claimant under subsections (4) and
(5) of this section, the person shall file with the same recording officer an
affidavit stating that the notice was served.
(7) When a person deposits money with the
treasurer of a county under subsections (1) to (3) of this section and serves
notice of the deposit upon the lien claimant under subsections (4) and (5) of
this section, the person shall file with the recording officer of the same
county an affidavit stating that the deposit was made and notice was served. [2003
c.193 §§2,3,4]
Note:
87.177 to 87.181 were added to and made a part of 87.152 to 87.212 by
legislative action but were not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.
87.178
Foreclosure after filing of bond or deposit of money; effect of filing or
deposit; disposition of bond or money. (1) When a
lien claimed under ORS 87.152 to 87.162 is for the storage of a chattel and the
amount of the lien claimed is $750 or more, any suit to foreclose the lien that
is commenced or pending after the filing of a bond or deposit of money under
ORS 87.177 (1) to (3) shall proceed as if no filing or deposit had been made
except that the lien shall attach to the bond or money upon the filing or
deposit and the service of notice of the filing or deposit upon the lien
claimant. The chattel described in the claim of lien shall thereafter be
entirely free of the lien and shall in no way be involved in subsequent
proceedings.
(2) When a bond is filed or money is
deposited and, in a suit to enforce the lien for which the filing or deposit is
made, the court allows the lien, the lien shall be satisfied out of the bond or
money. The court shall include as part of its judgment an order for the return
to the person who deposited the money of any amount remaining after the lien
for the storage of the chattel is satisfied.
(3) When a bond is filed or money is
deposited and, in a suit to enforce the lien for which the filing or deposit is
made, the court disallows the lien, the court shall include as part of its
judgment an order for the return of the bond or money to the person who filed
the bond or deposited the money. [2003 c.193 §5]
Note:
See note under 87.177.
87.179
Determination of adequacy of bond. (1) If a lien
claimant considers the bond filed with a recording officer of a county under
ORS 87.177 (1) to (3) inadequate to protect the claim of the lien claimant for
some reason other than the amount of the bond, the lien claimant may petition
the court in which the suit to foreclose the lien for the storage of the
chattel may be brought for a determination of the adequacy of the bond. The
petition must be filed within 10 days of receipt of the notice of the filing of
the bond under ORS 87.177 (4) and (5). The petition must describe in detail the
reasons for the inadequacy.
(2) Not later than two days after the
filing of the petition with the court, the lien claimant shall send a notice of
the filing and a copy of the petition by registered or certified mail to the
person who filed the bond. After a hearing, if the court determines that the
bond is inadequate for one or more of the reasons described by the lien
claimant, the court shall order such action as shall make the bond adequate to
protect the claim of lien. [2003 c.193 §6]
Note:
See note under 87.177.
87.180
[Repealed by 1975 c.648 §72]
87.181
Release of lien or return of money. The county
recording officer shall record a written release of the lien for the storage of
the chattel or the county treasurer in whose office money is deposited under
ORS 87.177 (1) to (3) shall return the money to the person who made the deposit
when:
(1) The person who filed the bond or
deposited the money presents a certified copy of a court’s order for the
release of the bond or all or some of the money to that person; or
(2) The person who filed the bond or
deposited the money presents a written release of lien signed by the lien
claimant. [2003 c.193 §7]
Note:
See note under 87.177.
87.182
Effect of prior security interest on method of foreclosure.
(1) When a lien created by ORS 87.162 is subordinate to a prior duly perfected
security interest in a chattel as provided in ORS 87.146, the lien created by
ORS 87.162 shall be foreclosed by suit as provided in ORS chapter 88.
(2) Except as provided in subsection (1)
of this section, liens created by ORS 87.152 to 87.162 may be foreclosed by
suit as provided in ORS chapter 88, or by sale of the chattel subject to the
lien at public auction to the highest bidder for cash. [1975 c.648 §9]
87.185
[Repealed by 1975 c.648 §72]
87.186
Location of foreclosure sale. Foreclosure
of liens created by ORS 87.152 to 87.162 by public sale shall occur in the
county in which the lien claimant obtained possession of the chattel subject to
the lien from the lien debtor. [1975 c.648 §11]
87.190
[Repealed by 1975 c.648 §72]
87.192
Notice of foreclosure sale to lien debtor; public notice.
(1) Before a lien claimant forecloses a lien created by ORS 87.152 to 87.162 by
sale, the lien claimant shall give notice of the foreclosure sale to the lien
debtor by first class mail with certificate of mailing, registered mail or
certified mail sent to the lien debtor at the lien debtor’s last-known address.
The lien claimant shall give notice of the foreclosure sale to the lien debtor:
(a) Except as otherwise provided in this
subsection, at least 30 days before the foreclosure sale.
(b) If the lien is for the cost of
removing, towing or storage of a vehicle that is appraised at a value of $500
or less by a person who holds a certificate issued under ORS 819.480, at least
15 days before the foreclosure sale.
(c) If the lien is for the cost of
removing, towing or storage of a vehicle that is appraised at a value of $1,000
or less but more than $500 by a person who holds a certificate issued under ORS
819.480, at least 15 days before the foreclosure sale.
(d) If the lien is for the cost of
removing, towing or storage of a vehicle that is appraised at a value of more
than $1,000 by a person who holds a certificate issued under ORS 819.480, at
least 30 days before the foreclosure sale.
(2) The lien claimant shall give public
notice of the foreclosure sale by posting notice of it in a public place at or
near the front door of the county courthouse of the county in which the sale is
to be held and, except as provided in paragraph (b) of this subsection, in a
public place at the location where the lien claimant obtained possession of the
chattel to be sold from the lien debtor. The following apply to notice under
this subsection:
(a) Notice under this subsection must be
given no later than the time required for notice to a lien debtor under
subsection (1) of this section.
(b) This subsection does not require
posting of notice at the location where the chattel was obtained if the chattel
is a vehicle required to obtain a certificate of title issued under ORS chapter
803.
(3) If the chattel to be sold at a
foreclosure sale is something other than an abandoned vehicle and has a fair
market value of $1,000 or more, or if the chattel to be sold is an abandoned
vehicle and has a fair market value of $2,500 or more, the lien claimant, in
addition to the notice required by subsection (2) of this section, shall have a
notice of foreclosure sale printed once a week for two successive weeks in a
daily or weekly newspaper, as defined in ORS 193.010, published in the county
in which the sale is held or, if there is none, in a daily or weekly newspaper,
as defined in ORS 193.010, generally circulated in the county in which the sale
is held.
(4) The notice of foreclosure sale
required under this section shall contain a particular description of the
property to be sold, the name of the owner or reputed owner thereof, the amount
due on the lien, the time and the place of the sale and the name of the person
foreclosing the lien. [1975 c.648 §10; 1981 c.861 §2; 1983 c.436 §1; 1983 c.338
§882; 1993 c.326 §10; 1995 c.758 §19; 2005 c.738 §8]
87.195
[Repealed by 1975 c.648 §72]
87.196
Notice of foreclosure sale to secured parties; effect of notice; effect of
failure to give notice. (1) A lien claimant who forecloses
a lien created by ORS 87.152 to 87.162 by sale shall give notice of the
foreclosure sale by first class, registered or certified mail. The following
apply:
(a) Notice shall be given to all persons
with a security interest in the chattel to be sold who have filed a financing
statement perfecting that security interest in the office of the Secretary of
State or in the office of the appropriate county officer of the county in which
the sale is held.
(b) Notwithstanding paragraph (a) of this
subsection if the chattel to be sold at the foreclosure sale is a chattel,
other than part of the motor vehicle inventory of a dealer issued a vehicle
dealer certificate under ORS 822.020, for which a certificate of title is
required by the laws of this state, notice need only be given to persons who
the certificate of title indicates have a security interest or lien in the
chattel.
(c) Notice under this subsection shall be
given at least 30 days prior to the foreclosure sale. However, if the lien is
claimed under ORS 87.152, the lien claimant shall give the notice required by
this subsection:
(A) Not later than the 20th day after the
date on which the storage charges begin;
(B) If no storage charges are imposed, not
later than the 30th day after the date on which the services provided are
completed;
(C) At least 15 days prior to the
foreclosure sale if the lien is for the cost of removing, towing or storage of
a vehicle that is appraised at a value of $1,000 or less but more than $500 by
a person who holds a certificate issued under ORS 819.480; and
(D) At least 15 days prior to the
foreclosure sale if the lien is for the cost of removing, towing or storage of
a vehicle that is appraised at a value of $500 or less by a person who holds a
certificate issued under ORS 819.480.
(2) A person notified under subsection (1)
of this section may discharge the lien and preserve the person’s security
interest in the chattel by paying the lien claimant the amount of the lien
claim and reasonable expenses actually incurred in foreclosing the lien claim.
If the person does not so discharge the lien before the day of the foreclosure
sale, the person’s security interest in the chattel is extinguished on the day
the foreclosure sale is completed.
(3) If the chattel to be sold at a foreclosure
sale is a chattel for which a certificate of title is required by the laws of
this state and if the lien claimant does not notify a person as required by
this section, the chattel remains subject to that security interest or lien and
the buyer of the chattel at a foreclosure sale held under ORS 87.142 to 87.490
or 87.700 to 87.736 takes the chattel subject to the security interest or lien.
(4) If a lien claimant does not notify a
person, other than a person indicated on a certificate of title as a secured
party or lienholder, who claims a security interest
or lien on the chattel sold at a foreclosure sale as required by subsection (1)
of this section, the lien claimant is liable to that person for a sum equal to
the fair market value of the chattel sold at the foreclosure sale or the amount
due that person under the security agreement or lien at the time of the
foreclosure sale, whichever amount is less. The secured party or other lien
claimant may recover that sum by an action at law. [1975 c.648 §14; 1981 c.861 §3;
1983 c.338 §883; 1993 c.326 §11; 1995 c.758 §20; 2005 c.86 §1; 2005 c.738 §9]
87.200
[Repealed by 1975 c.648 §72]
87.202
Statement of account of foreclosure sale. (1) A
person who forecloses a lien created by ORS 87.152 to 87.162 by sale shall file
a statement of account verified by the oath of the person with the recording
officer of the county in which the sale took place when:
(a) The chattel sold at the foreclosure
sale has a fair market value of $250 or more; or
(b) The chattel sold at the foreclosure
sale is an animal bearing a brand or other mark recorded with the State
Department of Agriculture under ORS chapter 604.
(2) The statement of account required
under subsection (1) of this section must contain:
(a) The amount of the lien claim and the
cost of foreclosing the lien;
(b) A copy of the published or posted
notice of foreclosure sale;
(c) The amount received for the chattel
sold at the sale; and
(d) The name of each person who received
proceeds from the foreclosure sale as described in ORS 87.206 and the amount
each person received.
(3) A person filing a statement of account
under this section shall send a copy of the statement by registered or
certified mail to the owner of the chattel sold at the foreclosure sale. The
person filing the statement of account shall send the copy to the last-known
address of the owner. If the chattel sold at a foreclosure sale is an animal
bearing a brand or other mark recorded with the State Department of Agriculture
under ORS chapter 604, a person filing a statement of account under this
section shall send a copy of the statement to the State Department of
Agriculture. [1975 c.648 §13; 2005 c.86 §2]
87.205
[Repealed by 1975 c.648 §72]
87.206
Disposition of proceeds of foreclosure sale. (1)
The proceeds of a sale to foreclose a lien created by ORS 87.152 to 87.162
shall be applied in the following order:
(a) To the payment of the reasonable and
necessary expenses of the sale;
(b) To satisfy the indebtedness secured by
the lien under which the sale is made;
(c) Subject to subsection (2) of this
section, to satisfy the indebtedness secured by any subordinate lien or
security interest, in order of priority, in the chattel; and
(d) To the treasurer of the county in
which the foreclosure sale is made. The payment to the treasurer must be
accompanied by a copy of the statement of account described in ORS 87.202.
(2) Proceeds may be applied under
subsection (1)(c) of this section if the person who forecloses a lien created
by ORS 87.152 to 87.162 by sale receives a written request for proceeds from
the holder of any subordinate lien or security interest before the day of the
foreclosure sale. The person foreclosing the lien may require the holder of the
subordinate lien or security interest to furnish reasonable proof of the
existence of the security interest or lien. If the person foreclosing the lien
does not receive proof of the existence of the subordinate security interest or
lien, the person is not required to apply proceeds of the sale to satisfy the
indebtedness secured by the subordinate security interest or lien.
(3) If a county treasurer receives
proceeds under subsection (1) of this section, the county treasurer shall
credit the proceeds to the general revenue fund of the county, subject to the
right of the lien debtor or the representative of the lien debtor, to reclaim
the proceeds at any time within three years of the date of deposit with the
treasurer. If the proceeds are not demanded and claimed within the three-year
period, the proceeds become the property of the county. [1975 c.648 §12; 2005
c.86 §3]
87.210
[Repealed by 1975 c.648 §72]
87.212
Liability for improper sale of fungible chattels.
A person claiming a lien under ORS 87.152 to 87.162 for the storage of fungible
chattels shall not sell more of those chattels than is necessary to pay charges
due that person for the storage. If a person unnecessarily sells fungible
chattels without the consent of the owner thereof, the person shall, for each
offense, forfeit to the owner of the chattels a sum equal to the fair market
value of the chattels unnecessarily sold and 50 percent of the fair market
value in addition as a penalty. The owner shall recover such value and penalty
by an action at law. [1975 c.648 §15]
87.214
Disposal of property left with launderer or dry cleaner.
Notwithstanding any provision of ORS 87.172 to 87.212:
(1) If a garment or article left with a
retail launderer or retail dry cleaner for laundering, dry cleaning or other
service is not redeemed by the customer within 180 days, the launderer or dry
cleaner may, without any liability or responsibility for the article or
garment, dispose of the article or garment in any manner suitable to the
launderer or dry cleaner.
(2) A retail launderer or retail dry
cleaner subject to this section shall post a notice describing the provisions
of this section in a conspicuous place on the premises of the launderer or dry
cleaner. The notice shall contain a citation to this section and shall be
substantially the same as the following language: ______________________________________________________________________________
As specified in ORS 87.214, any garment,
article, clothing, wearing apparel, leather garment, fur coat or garment,
curtain, drapery, rug, carpet or household furnishing delivered to a launderer
or dry cleaner for dry cleaning, dyeing, pressing, laundering, altering or
other service, that is not picked up within 180 days after the date it was
delivered, may be disposed of in any manner suitable to the launderer or dry
cleaner.
______________________________________________________________________________
[1991 c.591 §1]
Note:
87.214 was enacted into law by the Legislative Assembly but was not added to or
made a part of ORS chapter 87 or any series therein by legislative action. See
Preface to Oregon Revised Statutes for further explanation.
87.215
[Repealed by 1975 c.648 §72]
NONPOSSESSORY
CHATTEL LIENS
87.216
Nonpossessory lien for labor or material expended on
chattel. A person who makes, alters, repairs,
transports, stores, provides services for or performs labor on a chattel at the
request of the owner of the chattel has a lien on that chattel for the
reasonable or agreed charges for the labor or services the person performs and
for the materials the person furnishes in connection therewith. [1975 c.648 §16]
87.220
[Repealed by 1975 c.648 §72]
87.222
Logger’s, woodworker’s and timberland owner’s lien.
(1) A person who performs labor on or assists in obtaining, handling,
manufacturing or transporting timbers or wood products has a lien upon those
timbers and those wood products for the reasonable or agreed value for this
labor or services, when the labor is performed or services provided at the
request of the owner of the timbers or wood products or an agent of the owner.
(2) A person who permits another to go on
the land of the person and obtain timbers, has a lien upon the timbers, cut for
the reasonable or agreed charge for that permission and stumpage.
(3) Subject to the limitation in
subsection (4) of this section, if a person cuts or hires another to cut
timbers on the land of the person and delivers or hires another to deliver the
timbers to a purchaser, the person has a lien upon the timbers for the lesser
of:
(a) The reasonable or agreed value of the
timbers; or
(b) $125,000.
(4) A person described in subsection (3)
of this section may not have outstanding at any one time more than one lien
arising under subsection (3) of this section. [1975 c.648 §17; 1985 c.444 §1;
1999 c.940 §2]
87.225
[Repealed by 1975 c.648 §72]
87.226
Agricultural services lien. (1) A person who performs labor,
supplies materials or provides services on farmland, range, ranch, orchard or
in that person’s place of business to aid the growing or harvesting of crops or
the raising of animals has a lien upon the crops or animals for the reasonable
or agreed charges for labor, materials or services. The lien upon crops or
animals created by this section also attaches to the proceeds of the crops or
animals and to the unborn progeny of the animals that are in utero on the date a notice of claim of lien is filed.
(2) If the lien claimed under subsection
(1) of this section is for stud or artificial insemination services, the lien
attaches only to the female animal to which the male animal is let or which is
artificially inseminated, and the offspring.
(3) The lien on crops and the proceeds
thereof attaches on the date a person performs labor, delivers materials or
provides services to aid the growing or harvesting of crops. The lien on
animals and the proceeds thereof attaches on the date a person performs labor,
delivers materials or provides services to aid the raising of animals, or in
the case of unborn progeny, attaches on the date the claim of lien is filed.
(4) As used in this section:
(a) “Growing and harvesting” includes
tilling, sowing, planting, cultivating, irrigating, pruning, thinning,
fertilizing, spraying, dusting, cutting, harvesting, reaping, threshing,
gathering, transporting, securing or otherwise performing or furnishing labor,
service or materials to aid the production of any agricultural crop.
(b) “Materials” includes seed, fertilizer,
pesticide, petroleum products and other products used in agricultural practice
to aid the growing or harvesting of crops, and any mixtures or preparation for
feeding animals, any of the constituent nutrients of an animal ration and any
other food for animals.
(c) “Performs labor or provides services”
includes personal labor and the use of machinery, equipment or animals rendered
by the lien claimant or by the agent of the lien claimant, employee or
subcontractor.
(d) “Raising animals” includes feeding,
herding, pasturing, shoeing, artificially inseminating, providing male animals
for the breeding of female animals, caring for and managing animals kept or
raised for use or profit. [1975 c.648 §18; 1985 c.469 §2; 2001 c.301 §6]
87.228
Effect on agricultural services lien when payment for produce is made prior to
filing of lien claim. A lien created by ORS 87.226
ceases to attach to a crop that is agricultural produce as defined in ORS
87.700 and is in the possession of a purchaser, or to the proceeds of the sale
of the crop to a third party, if the purchaser pays the agricultural producer
in full for the crop and the claim for the lien is not filed under ORS 87.242
prior to the date of that payment. [Formerly 87.740]
Note:
87.228 was made a part of 87.700 to 87.736 by legislative action but was not
added to or made a part of any other series in ORS chapter 87. See Preface to
Oregon Revised Statutes for further explanation.
87.230
[Repealed by 1975 c.648 §72]
87.232
Fishing lien and fish worker’s lien. (1) A person
who performs labor in the operation of the chattel used for the purpose of
catching fish from, holding them upon or transporting them within the waters of
this state has a lien on the fish taken using the chattel during the period for
which the lien is claimed for the reasonable or agreed charge for the labor of
the person.
(2) A person who performs labor in the
catching or transporting of fish in this state has a lien on the fish for the
reasonable or agreed charges for the labor of the person. [1975 c.648 §19]
87.235
[Repealed by 1975 c.648 §72]
87.236
Attachment of liens; attachment to proceeds. (1)
The liens created by ORS 87.216 to 87.232 attach to the chattels described in
those sections.
(2) The liens created by ORS 87.222 and
87.232 shall also attach to the proceeds of the sale of the chattels subject to
those liens if:
(a) Prior to the filing of the notice of
claim of lien, the chattels or any part thereof are sold or delivered to an
agent, broker, cooperative agency or other person to be sold or otherwise
disposed of; and
(b) At the time the purchaser, agent,
broker, cooperative agency or other person is notified of the filing of the
claim of lien by delivery of a true copy thereof, the proceeds that were
received or will be received from the sale or other disposal of the chattels
have not been delivered to the owner of the chattels.
(3) When a lien created by ORS 87.222 to
87.232 attaches to the proceeds of the sale of chattels under subsection (2) of
this section, a purchaser, agent, broker, cooperative agency or other person
shall not deliver the proceeds or that portion of the proceeds equal to the
amount of the lien claim to the owner until:
(a) The time specified by ORS 87.266
during which a suit to foreclose the lien must be commenced elapses;
(b) A court orders the delivery of the
proceeds; or
(c) A certificate is recorded under ORS
87.346 declaring that the claim of lien is discharged. [1975 c.648 §20; 1981
c.674 §1; 1985 c.469 §3]
87.240
[Repealed by 1975 c.648 §72]
87.242
Filing notice of claim of lien; filing deadline; contents of notice; effect of
failure to file notice. (1) A person claiming a lien
created by ORS 87.216, 87.222 or 87.232 shall file a written notice of claim of
lien with the recording officer of the county in which the lien debtor resides,
or, if the lien debtor is a business, the county in which the lien debtor has
its principal place of business, not later than 60 days after the close of the
furnishing of the labor, services or materials. A person claiming a lien
created by ORS 87.226 shall file a written notice of claim of lien with the
Secretary of State not later than 75 days after the close of the furnishing of
the labor, services or materials. A person claiming a lien created by ORS
87.705 shall file a written notice of claim of lien with the Secretary of State
not later than 45 days after the close of the furnishing of the labor, services
or materials. A person claiming a lien created by ORS 87.755 shall file a
written notice of claim of lien with the Secretary of State not later than 180
days after the close of the furnishing of the labor, services or materials. The
Secretary of State shall include a notice of claim of lien that is filed with
the secretary under this subsection in the index maintained by the secretary
for filing financing statements pursuant to ORS chapter 79.
(2) The notice of claim of lien required
under subsection (1) of this section shall be a statement in writing verified
by the attestation under penalty of perjury of the lien claimant and must
contain:
(a) A true statement of the lien claimant’s
demand after deducting all credits and offsets;
(b) The name of the owner of the chattel
to be charged with the lien;
(c) A description of the labor, services
or materials provided by the lien claimant for the benefit of the owner of the
chattel to be charged with the lien;
(d) A description of the chattel to be
charged with the lien sufficient for identification;
(e) A statement that the amount claimed is
a true and bona fide existing debt as of the date of the filing of notice of
claim of lien;
(f) The date on which payment was due to
the lien claimant for labor, services or materials;
(g) The terms of extended payment; and
(h) Such other information as the
Secretary of State may require for the written notice of claim of lien created
by ORS 87.226.
(3) If the person entitled to a lien under
ORS 87.216 to 87.232 does not properly file a notice of claim of lien within
the time required by subsection (1) of this section, the person waives the
right to the lien. [1975 c.648 §21; 1985 c.469 §4; 1987 c.297 §1; 2001 c.301 §7;
2007 c.71 §19; 2011 c.359 §1]
87.245
[Repealed by 1975 c.648 §72]
87.246
Recording; fees. (1) Except for a notice of a
claim for a lien created by ORS 87.226, the recording officer of a county shall
record the notices filed under ORS 87.242 in a book kept for that purpose and
called “index of liens upon chattels.”
(2) Notices filed with the Secretary of
State under ORS 87.242 shall:
(a) Be in a form prescribed by the
Secretary of State; and
(b) Be maintained as public records for a
period of time established by the Secretary of State.
(3) Fees for filing notices and requests
for copies of such notices shall be established by the Secretary of State under
ORS 177.130. Fees described in this subsection shall be nonrefundable. [1975
c.648 §22; 1987 c.297 §2; 1999 c.464 §3]
87.250
[Repealed by 1975 c.648 §72]
87.252
Notice to owner and holders of security interests; effect of failure to comply.
(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 of a lien under
ORS 87.226 exceeds $20,000, that part of the lien exceeding $20,000 is
subordinate to any security interest in the crops, animals or proceeds to be
charged with the lien, if:
(a) The holder of the security interest
does not receive notice because of the lien claimant’s failure to comply with
subsection (2) of this section; and
(b) The holder of the security interest
duly perfects the interest before the date on which the lien claimant files a
notice of claim of lien. [1975 c.648 §23; 1985 c.469 §5; 1993 c.352 §1; 2001
c.301 §8]
87.255
[Repealed by 1975 c.648 §72]
87.256
Limitation on extent of liens. Persons
claiming liens created by ORS 87.216 to 87.232 are only entitled to liens for
labor, services or materials performed or furnished during the six months
immediately preceding the filing of the notice of claim under ORS 87.242. [1975
c.648 §24]
87.260
[Repealed by 1975 c.648 §72]
87.262
Foreclosure. Except as provided in ORS 87.322, a
lien created by ORS 87.216 to 87.232 may be foreclosed by a suit in the circuit
court under ORS chapter 88 and other laws regulating the proceedings for the
foreclosure of liens generally or may be foreclosed as provided in ORS 87.272
to 87.306. If the lien has attached to proceeds under ORS 87.236, the lien must
be foreclosed by suit. [1975 c.648 §25]
87.265
[Repealed by 1975 c.648 §72]
87.266
Duration of liens. (1) Except as provided in
subsection (2) of this section, if either a suit to foreclose or a proceeding
under ORS 87.272 to 87.306 to foreclose a lien created by ORS 87.216 to 87.232
is not commenced in an appropriate court within six months after the notice of
claim of lien is filed under ORS 87.242, or if extended payment is provided and
the terms thereof are stated in the notice of claim of lien, then within six
months after the expiration of the extended payment, the lien shall cease to
exist. A lien shall not be continued in force for a longer time than two years
from the time the claim for lien is filed under ORS 87.242 by an agreement to
extend payment.
(2) If either a suit to foreclose or a
proceeding under ORS 87.272 to 87.306 to foreclose a lien created by ORS 87.226
is not commenced in an appropriate court within 18 months after the notice of claim
of lien is filed under ORS 87.242 or, if extended payment is provided and the
terms thereof are stated in the notice of claim of lien, within six months
after the expiration of the extended payment, the lien shall cease to exist. A
lien shall not be continued in force for a longer time than two years from the
time the claim of lien is filed under ORS 87.242 by an agreement to extend
payment. [1975 c.648 §26; 1985 c.469 §6]
87.270
[Repealed by 1975 c.648 §72]
87.272
Petition for foreclosure without suit. A person
claiming a lien created by ORS 87.216 to 87.232 may obtain an order for the
foreclosure of the lien by advertisement and sale by filing with the clerk of
the court of the county in which the chattel is then located and from which
that order is sought a sworn petition requesting an order for foreclosure of
the lien by advertisement and sale and showing, to the best knowledge,
information and belief of the lien claimant:
(1) The name and residence or place of
business of the lien debtor;
(2) The name and residence or place of
business of the person in possession of the chattel subject to the lien;
(3) The description of the chattel subject
to the lien in particularity sufficient to make possible its identification,
and the lien claimant’s estimate of the value and location of the chattel;
(4) A copy or verbatim recital of the
notice of claim of lien filed by the lien claimant under ORS 87.242;
(5) That there is no reasonable
probability that the lien debtor can establish a successful defense to the
underlying claim of the lien; and
(6) That the person filing the petition
under this section has fully complied with the notice and filing requirements
of ORS 9.370, 87.142 to 87.490, 87.705, 87.710, 87.910 and 90.120. [1975 c.648 §27]
87.275
[Repealed by 1975 c.648 §72]
87.276
Evidence admissible; issuance of show cause order.
(1) The court shall consider the petition filed under ORS 87.272 and may
consider other evidence, including, but not limited to, an affidavit,
deposition, exhibit or oral testimony.
(2) If from the petition or other
evidence, if any, the court finds that a notice of claim of lien has been filed
and that there is probable cause for sustaining the validity of the lien claim,
the court shall issue a show cause order as provided in ORS 87.288. The finding
under this subsection is subject to dissolution upon hearing. [1975 c.648 §28]
87.280
[Repealed by 1975 c.648 §72]
87.282
Waiver of right to hearing before filing of petition.
The court shall order that the lien claimant’s lien be foreclosed by
advertisement and sale if the court finds:
(1) That the lien debtor, by conspicuous
words in a writing executed by or on behalf of the lien debtor before filing of
the petition under ORS 87.272 or by handwriting of the lien debtor or the lien
debtor’s agent executed before filing of the petition under ORS 87.272, has
declared substantially that the lien debtor is aware of the right to notice and
hearing on the question of the probable validity of the underlying lien claim
before the lien debtor can be deprived of the property in the possession or
control of the lien debtor or in the possession or control of another and that
the lien debtor waives that right and agrees that the lien claimant, or one
acting on behalf of the lien claimant, may take possession or control of the
chattel subject to the lien without first giving notice and opportunity for
hearing on the probable validity of the underlying lien claim;
(2) That there is no reason to believe
that the waiver or agreement is invalid; and
(3) That the lien debtor has voluntarily,
intelligently and knowingly waived that right. [1975 c.648 §29]
87.285
[Repealed by 1975 c.648 §72]
87.286
[Repealed by 1975 c.648 §72]
87.288
Show cause order; contents; service. (1) The court
shall issue an order directed to the lien debtor and each person having
possession or control of the chattel subject to the lien requiring the debtor
and each other person to appear for hearing at a time and place fixed by the
court to show cause why an order for the foreclosure of the lien claimant’s
lien by advertisement and sale should not issue.
(2) The show cause order issued under
subsection (1) of this section shall be served in the same manner as a summons
is served on the lien debtor and on each other person to whom the order is
directed.
(3) The order shall:
(a) State that the lien debtor may file
affidavits with the court and may present testimony at the hearing; and
(b) State that if the lien debtor fails to
appear at the hearing the court may order foreclosure of the lien claimant’s
lien by advertisement and sale. [1975 c.648 §30]
87.290
[Repealed by 1969 c.330 §9]
87.292
[1969 c.330 §1; 1973 c.472 §1; repealed by 1975 c.648 §72]
87.294
[1969 c.330 §2; 1973 c.472 §2; 1973 c.647 §11; repealed by 1975 c.648 §72]
87.295
[Amended by 1969 c.330 §3; 1973 c.472 §3; repealed by 1975 c.648 §72]
87.296
Waiver of right to hearing after issuance of show cause order.
If, after service of the order issued under ORS 87.288 (1), the lien debtor by
a writing executed by or on behalf of the lien debtor after service of the
order expressly declares that the lien debtor is aware that the lien debtor has
the right to be heard, that the lien debtor does not want to be heard, that the
lien debtor expressly waives the right to be heard, that the lien debtor
understands that upon the signing by the lien debtor of the writing the court
will order the foreclosure of the lien claimant’s lien so that the possession
or control of the claimed property will be taken from the lien debtor or
another person, the court, without hearing, shall issue the order of
foreclosure by advertisement and sale. [1975 c.648 §31]
87.300
[Amended by 1969 c.330 §4; 1973 c.472 §4; repealed by 1975 c.648 §72]
87.302
Authority of court on sustaining validity of lien claim.
If the court on hearing on a show cause order issued under ORS 87.288 (1),
finds that there is probable cause for sustaining the validity of the
underlying claim of lien, the court may order foreclosure of the lien by advertisement
and sale. [1975 c.648 §32]
87.305
[Repealed by 1975 c.648 §72]
87.306
Foreclosure by sale without suit; notice of sale to secured parties; public notice
of sale by sheriff. (1) A lien claimant desiring to
foreclose the lien by advertisement and sale shall deliver to the sheriff of
the county in which the chattel is then located a certified copy of a court’s
order issued under ORS 87.282, 87.296 or 87.302 and a copy of the notice of
claim of lien, certified by the recording officer of the county where it was
filed.
(2) When the lien claimant delivers a
certified copy of a court’s order and a certified copy of the notice of claim
of lien to a sheriff under subsection (1) of this section, the lien claimant,
not later than the 30th day before the foreclosure sale, shall also send a copy
of that order and notice by registered or certified mail to each person with a
lien on the chattel to be sold recorded in the county of sale or with a
security interest in the chattel to be sold who has filed a financing statement
perfecting that security interest in the office of the Secretary of State or in
the office of the appropriate county officer of the county in which the sale is
held. If the chattel to be sold at the foreclosure sale is a chattel for which
a certificate of title is required by the laws of this state, the lien claimant
shall also so notify those persons whom the certificate of title indicates have
a security interest or lien in the chattel.
(3) The sheriff shall promptly take the
chattel described in the notice of claim of lien into the possession of the
sheriff and shall hold it until the foreclosure sale.
(4) After taking possession of a chattel
under subsection (3) of this section, a sheriff shall have a notice of
foreclosure sale printed once a week for two successive weeks in a daily or
weekly newspaper, as defined in ORS 193.010, published in the county in which
the sale is held or, if there is none, in a daily or weekly newspaper, as
defined in ORS 193.010, generally circulated in the county in which the sale is
held. The notice of foreclosure must contain a particular description of the
chattel to be sold, the name of the owner or reputed owner of the chattel, the
amount due on the lien, the time and place of the sale and the name of the
person foreclosing the lien. After that advertisement but not sooner than the
30th day after the sheriff received a certified copy of the court’s order and
the certified copy of the notice of claim of lien under subsection (1) of this
section, the sheriff shall sell the chattel, or such part thereof as may be
necessary, at public auction to the highest bidder for cash. The sheriff shall
deliver the chattel to the highest bidder and shall give the highest bidder a
bill of sale containing an acknowledgment of payment for the chattel. [1975
c.648 §33]
87.310
[Amended by 1969 c.330 §5; repealed by 1975 c.648 §72]
87.312
Effect of notice of foreclosure sale to secured parties; failure to give
notice. (1) A person who claims a lien or has a
security interest in a chattel to be sold at a foreclosure sale and who is
notified under ORS 87.306 (2) may discharge the foreclosing lien claimant’s
lien and preserve the security interest or lien claim of the person by paying
the foreclosing lien claimant the amount of the lien claim and the expenses
actually incurred in foreclosing it. If the person does not so discharge the
lien before the day of the foreclosure sale, the security interest or lien
claim of the person is extinguished.
(2) If the chattel to be sold at a
foreclosure sale is a chattel for which a certificate of title is required by
the laws of this state and if the lien claimant does not notify a person whom
the certificate of title indicates has a security interest or lien in the
chattel as required by ORS 87.306 (2), the chattel remains subject to that
security interest or lien and the buyer of the chattel at a foreclosure sale
held under ORS 9.370, 87.142 to 87.490, 87.705, 87.710, 87.910 and 90.120 takes
the chattel subject to the security interest or lien.
(3) If a lien claimant does not notify a
person, other than a person indicated on a certificate of title as a secured
party or lienholder, who claims a security interest
or lien on the chattel sold at a foreclosure sale as required by ORS 87.306 (2),
the lien claimant is liable to that person for a sum equal to the fair market
value of the chattel sold at the foreclosure sale or the amount due that person
under the security agreement or lien at the time of the foreclosure sale,
whichever amount is less. The secured party or other lien claimant shall
recover that sum by an action at law. [1975 c.648 §34]
87.315 [Amended by 1969 c.330 §6; repealed by 1975 c.648 §72]