Bill Text: OR HB4035 | 2012 | Regular Session | Enrolled
Bill Title: Relating to secured transactions in personal property; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2012-03-05 - Chapter 12, (2012 Laws): Effective date March 5, 2012. [HB4035 Detail]
Download: Oregon-2012-HB4035-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session
Enrolled
House Bill 4035
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Business
and Labor for Oregon Law Commission)
CHAPTER ................
AN ACT
Relating to secured transactions in personal property; creating
new provisions; amending ORS 79.0102, 79.0105, 79.0208,
79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335, 79.0406,
79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518, 79.0521,
79.0607, 79.0619, 803.030 and 803.097; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 79.0102 is amended to read:
79.0102. { + UCC 9-102. Definitions and index of definitions.
+ }(1) As used in this chapter:
(a) 'Accession' means goods that are physically united with
other goods in such a manner that the identity of the original
goods is not lost.
(b) 'Account,' except as used in 'account for':
(A) Means a right to payment of a monetary obligation, whether
or not earned by performance:
(i) For property that has been or is to be sold, leased,
licensed, assigned, or otherwise disposed of;
(ii) For services rendered or to be rendered;
(iii) For a policy of insurance issued or to be issued;
(iv) For a secondary obligation incurred or to be incurred;
(v) For energy provided or to be provided;
(vi) For the use or hire of a vessel under a charter or other
contract;
(vii) Arising out of the use of a credit or charge card or
information contained on or for use with the card; or
(viii) As winnings in a lottery or other game of chance
operated or sponsored by a state, governmental unit of a state,
or person licensed or authorized to operate the game by a state
or governmental unit of a state. The term includes
health-care-insurance receivables.
(B) Does not include:
(i) Rights to payment evidenced by chattel paper or an
instrument;
(ii) Commercial tort claims;
(iii) Deposit accounts;
(iv) Investment property;
(v) Letter-of-credit rights or letters of credit; or
Enrolled House Bill 4035 (HB 4035-A) Page 1
(vi) Rights to payment for money or funds advanced or sold,
other than rights arising out of the use of a credit or charge
card or information contained on or for use with the card.
(c)(A) 'Account debtor' means a person obligated on an account,
chattel paper or general intangible.
(B) The term does not include persons obligated to pay a
negotiable instrument, even if the instrument constitutes part of
chattel paper.
(d) 'Accounting,' except as used in 'accounting for, ' means a
record:
(A) Authenticated by a secured party;
(B) Indicating the aggregate unpaid secured obligations as of a
date not more than 35 days earlier or 35 days later than the date
of the record; and
(C) Identifying the components of the obligations in reasonable
detail.
(e) 'Agricultural lien' means an interest, other than a
security interest or a lien created under ORS 87.226, 87.228,
87.700 to 87.736 or 87.750 to 87.777, in farm products:
(A) Which secures payment or performance of an obligation for:
(i) Goods or services furnished in connection with a debtor's
farming operation; or
(ii) Rent on real property leased by a debtor in connection
with its farming operation;
(B) Which is created by statute in favor of a person that:
(i) In the ordinary course of its business furnished goods or
services to a debtor in connection with a debtor's farming
operation; or
(ii) Leased real property to a debtor in connection with the
debtor's farming operation; and
(C) Whose effectiveness does not depend on the person's
possession of the personal property.
(f) 'As-extracted collateral' means:
(A) Oil, gas or other minerals that are subject to a security
interest that:
(i) Is created by a debtor having an interest in the minerals
before extraction; and
(ii) Attaches to the minerals as extracted; or
(B) Accounts arising out of the sale at the wellhead or
minehead of oil, gas or other minerals in which the debtor had an
interest before extraction.
(g) 'Authenticate' means:
(A) To sign; or
(B) { - To execute or otherwise adopt a symbol, or encrypt or
similarly process a record in whole or in part, with the present
intent of the authenticating person to identify the person and
adopt or accept a record. - } { + With present intent to adopt
or accept a record, to attach to or logically associate with the
record an electronic sound, symbol or process. + }
(h) 'Bank' means an organization that is engaged in the
business of banking. The term includes savings banks, savings and
loan associations, credit unions and trust companies.
(i) 'Cash proceeds' means proceeds that are money, checks,
deposit accounts or the like.
(j) 'Certificate of title' means a certificate of title with
respect to which a statute provides for the security interest in
question to be indicated on the certificate as a condition or
result of the security interest's obtaining priority over the
rights of a lien creditor with respect to the collateral. { + '
Certificate of title' includes another record maintained as an
Enrolled House Bill 4035 (HB 4035-A) Page 2
alternative to the certificate of title by the governmental unit
that issues certificates of title if a statute permits the
security interest in question to be indicated on the record as a
condition or result of the security interest's obtaining priority
over the rights of the lien creditor with respect to the
collateral. + }
(k)(A) 'Chattel paper' means a record or records that evidence
both a monetary obligation and a security interest in specific
goods, a security interest in specific goods and software used in
the goods, a security interest in specific goods and license of
software used in the goods, a lease of specific goods, or a lease
of specific goods and license of software used in the goods. In
this paragraph, 'monetary obligation' means a monetary obligation
secured by the goods or owed under a lease of the goods and
includes a monetary obligation with respect to software used in
the goods.
(B) The term does not include:
(i) Charters or other contracts involving the use or hire of a
vessel; or
(ii) Records that evidence a right to payment arising out of
the use of a credit or charge card or information contained on or
for use with the card. If a transaction is evidenced by records
that include an instrument or series of instruments, the group of
records taken together constitutes chattel paper.
(L) 'Collateral' means the property subject to a security
interest or agricultural lien. The term includes:
(A) Proceeds to which a security interest attaches;
(B) Accounts, chattel paper, payment intangibles and promissory
notes that have been sold; and
(C) Goods that are the subject of a consignment.
(m) 'Commercial tort claim' means a claim arising in tort with
respect to which:
(A) The claimant is an organization; or
(B) The claimant is an individual and the claim:
(i) Arose in the course of the claimant's business or
profession; and
(ii) Does not include damages arising out of personal injury to
or the death of an individual.
(n) 'Commodity account' means an account maintained by a
commodity intermediary in which a commodity contract is carried
for a commodity customer.
(o) 'Commodity contract' means a commodity futures contract, an
option on a commodity futures contract, a commodity option or
another contract if the contract or option is:
(A) Traded on or subject to the rules of a board of trade that
has been designated as a contract market for such a contract
pursuant to federal commodities laws; or
(B) Traded on a foreign commodity board of trade, exchange, or
market, and is carried on the books of a commodity intermediary
for a commodity customer.
(p) 'Commodity customer' means a person for which a commodity
intermediary carries a commodity contract on its books.
(q) 'Commodity intermediary' means a person that:
(A) Is registered as a futures commission merchant under
federal commodities law; or
(B) In the ordinary course of its business provides clearance
or settlement services for a board of trade that has been
designated as a contract market pursuant to federal commodities
law.
(r) 'Communicate' means:
Enrolled House Bill 4035 (HB 4035-A) Page 3
(A) To send a written or other tangible record;
(B) To transmit a record by any means agreed upon by the
persons sending and receiving the record; or
(C) In the case of transmission of a record to or by a filing
office, to transmit a record by any means prescribed by
filing-office rule.
(s) 'Consignee' means a merchant to which goods are delivered
in a consignment.
(t) 'Consignment' means a transaction, regardless of its form,
in which a person delivers goods to a merchant for the purpose of
sale and:
(A) The merchant:
(i) Deals in goods of that kind under a name other than the
name of the person making delivery;
(ii) Is not an auctioneer; and
(iii) Is not generally known by its creditors to be
substantially engaged in selling the goods of others;
(B) With respect to each delivery, the aggregate value of the
goods is $1,000 or more at the time of delivery;
(C) The goods are not consumer goods immediately before
delivery; and
(D) The transaction does not create a security interest that
secures an obligation.
(u) 'Consignor' means a person that delivers goods to a
consignee in a consignment.
(v) 'Consumer debtor' means a debtor in a consumer transaction.
(w) 'Consumer goods' means goods that are used or bought for
use primarily for personal, family or household purposes.
(x) 'Consumer-goods transaction' means a consumer transaction
in which:
(A) An individual incurs an obligation primarily for personal,
family or household purposes; and
(B) A security interest in consumer goods secures the
obligation.
(y) 'Consumer obligor' means an obligor who is an individual
and who incurred the obligation as part of a transaction entered
into primarily for personal, family or household purposes.
(z)(A) 'Consumer transaction' means a transaction in which:
(i) An individual incurs an obligation primarily for personal,
family or household purposes;
(ii) A security interest secures the obligation; and
(iii) The collateral is held or acquired primarily for
personal, family or household purposes.
(B) The term includes consumer-goods transactions.
(aa) 'Continuation statement' means an amendment of a financing
statement which:
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates that it is a continuation statement for, or that
it is filed to continue the effectiveness of, the identified
financing statement.
(bb) 'Debtor' means:
(A) A person having an interest, other than a security interest
or other lien, in the collateral, whether or not the person is an
obligor;
(B) A seller of accounts, chattel paper, payment intangibles or
promissory notes; or
(C) A consignee.
(cc)(A) 'Deposit account' means a demand, time, savings,
passbook or similar account maintained with a bank.
Enrolled House Bill 4035 (HB 4035-A) Page 4
(B) The term does not include investment property or accounts
evidenced by an instrument.
(dd) 'Document' means a document of title or a receipt of the
type described in ORS 77.2010 (2).
(ee) 'Electronic chattel paper' means chattel paper evidenced
by a record or records consisting of information stored in an
electronic medium.
(ff) 'Encumbrance' means a right, other than an ownership
interest, in real property. The term includes mortgages and other
liens on real property.
(gg) 'Equipment' means goods other than inventory, farm
products or consumer goods.
(hh) 'Farm products' means goods, other than standing timber,
with respect to which the debtor is engaged in a farming
operation and which are:
(A) Crops grown, growing, or to be grown, including:
(i) Crops produced on trees, vines and bushes; and
(ii) Aquatic goods produced in aquacultural operations;
(B) Livestock, born or unborn, including aquatic goods produced
in aquacultural operations;
(C) Supplies used or produced in a farming operation; or
(D) Products of crops or livestock in their unmanufactured
states.
(ii) 'Farming operation' means raising, cultivating,
propagating, fattening, grazing or any other farming, livestock
or aquacultural operation.
(jj) 'File number' means the number assigned to an initial
financing statement pursuant to ORS 79.0519 (1).
(kk) 'Filing office' means an office designated in ORS 79.0501
as the place to file a financing statement.
(LL) 'Filing-office rule' means a rule adopted pursuant to ORS
79.0526.
(mm) 'Financing statement' means a record or records composed
of an initial financing statement and any filed record relating
to the initial financing statement.
(nn) 'Fixture filing' means the filing of a financing statement
covering goods that are or are to become fixtures and satisfying
ORS 79.0502 (1) and (2). The term includes the filing of a
financing statement covering goods of a transmitting utility
which are or are to become fixtures.
(oo)(A) 'Fixtures' means goods that have become so related to
particular real property that an interest in them arises under
real property law.
(B) The term does not include portable irrigation equipment
including movable pipe, pumps, electrical pump panels, pump
columns, electrical wire, wheel lines, center pivots and
handlines.
(C) The term includes domestic pumps, domestic pump wire,
domestic pump panels, domestic pump columns and buried irrigation
equipment including buried pipe, buried electrical wire and all
buried well casings.
(pp) 'General intangible' means any personal property,
including things in action, other than accounts, chattel paper,
commercial tort claims, deposit accounts, documents, goods,
instruments, investment property, letter-of-credit rights,
letters of credit, money and oil, gas or other minerals before
extraction. The term includes payment intangibles and software.
(qq)(A) 'Goods' means all things that are movable when a
security interest attaches.
(B) The term includes:
Enrolled House Bill 4035 (HB 4035-A) Page 5
(i) Fixtures;
(ii) Standing timber that is to be cut and removed under a
conveyance or contract for sale;
(iii) The unborn young of animals;
(iv) Crops grown, growing or to be grown, even if the crops are
produced on trees, vines or bushes; and
(v) Manufactured structures.
(C) The term also includes a computer program embedded in goods
and any supporting information provided in connection with a
transaction relating to the program if:
(i) The program is associated with the goods in such a manner
that it customarily is considered part of the goods; or
(ii) By becoming the owner of the goods, a person acquires a
right to use the program in connection with the goods.
(D) The term does not include a computer program embedded in
goods that consist solely of the medium in which the program is
embedded. The term also does not include accounts, chattel paper,
commercial tort claims, deposit accounts, documents, general
intangibles, instruments, investment property, letter-of-credit
rights, letters of credit, money or oil, gas or other minerals
before extraction.
(rr) 'Governmental unit' means a subdivision, agency,
department, county, parish, municipality or other unit of the
government of the United States, a state or a foreign country.
The term includes an organization having a separate corporate
existence if the organization is eligible to issue debt on which
interest is exempt from income taxation under the laws of the
United States.
(ss) 'Health-care-insurance receivable' means an interest in or
claim under a policy of insurance which is a right to payment of
a monetary obligation for health-care goods or services provided.
(tt)(A) 'Instrument' means a negotiable instrument or any other
writing that evidences a right to the payment of a monetary
obligation, is not itself a security agreement or lease, and is
of a type that in ordinary course of business is transferred by
delivery with any necessary indorsement or assignment.
(B) The term does not include:
(i) Investment property;
(ii) Letters of credit; or
(iii) Writings that evidence a right to payment arising out of
the use of a credit or charge card or information contained on or
for use with the card.
(uu) 'Inventory' means goods, other than farm products, which:
(A) Are leased by a person as lessor;
(B) Are held by a person for sale or lease or to be furnished
under a contract of service;
(C) Are furnished by a person under a contract of service; or
(D) Consist of raw materials, work in process, or materials
used or consumed in a business.
(vv) 'Investment property' means a security, whether
certificated or uncertificated, security entitlement, securities
account, commodity contract or commodity account.
(ww) 'Jurisdiction of organization,' with respect to a
registered organization, means the jurisdiction under whose law
the organization is organized.
(xx)(A) 'Letter-of-credit right' means a right to payment or
performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand
payment or performance.
Enrolled House Bill 4035 (HB 4035-A) Page 6
(B) The term does not include the right of a beneficiary to
demand payment or performance under a letter of credit.
(yy) 'Lien creditor' means:
(A) A creditor that has acquired a lien on the property
involved by attachment, levy or the like;
(B) An assignee for benefit of creditors from the time of
assignment;
(C) A trustee in bankruptcy from the date of the filing of the
petition; or
(D) A receiver in equity from the time of appointment.
(zz) 'Manufactured structure' has the meaning given that term
in ORS 446.561.
(aaa) 'Manufactured-structure transaction' means a secured
transaction:
(A) That creates a purchase-money security interest in a
manufactured structure, other than a manufactured structure held
as inventory; or
(B) In which a manufactured structure, other than a
manufactured structure held as inventory, is the primary
collateral.
(bbb) 'Mortgage' means a consensual interest in real property,
including fixtures, which secures payment or performance of an
obligation.
(ccc) 'New debtor' means a person that becomes bound as debtor
under ORS 79.0203 (4) by a security agreement previously entered
into by another person.
(ddd)(A) 'New value' means:
(i) Money;
(ii) Money's worth in property, services or new credit; or
(iii) Release by a transferee of an interest in property
previously transferred to the transferee.
(B) The term does not include an obligation substituted for
another obligation.
(eee) 'Noncash proceeds' means proceeds other than cash
proceeds.
(fff)(A) 'Obligor' means a person that, with respect to an
obligation secured by a security interest in or an agricultural
lien on the collateral:
(i) Owes payment or other performance of the obligation;
(ii) Has provided property other than the collateral to secure
payment or other performance of the obligation; or
(iii) Is otherwise accountable in whole or in part for payment
or other performance of the obligation.
(B) The term does not include issuers or nominated persons
under a letter of credit.
(ggg) 'Original debtor,' except as used in ORS 79.0310 (3),
means a person that, as debtor, entered into a security agreement
to which a new debtor has become bound under ORS 79.0203 (4).
(hhh) 'Payment intangible' means a general intangible under
which the account debtor's principal obligation is a monetary
obligation.
(iii) 'Person related to,' with respect to an individual,
means:
(A) The spouse of the individual;
(B) A brother, brother-in-law, sister or sister-in-law of the
individual;
(C) An ancestor or lineal descendant of the individual or the
individual's spouse; or
Enrolled House Bill 4035 (HB 4035-A) Page 7
(D) Any other relative, by blood or marriage, of the individual
or the individual's spouse who shares the same home with the
individual.
(jjj) 'Person related to,' with respect to an organization,
means:
(A) A person directly or indirectly controlling, controlled by,
or under common control with the organization;
(B) An officer or director of, or a person performing similar
functions with respect to, the organization;
(C) An officer or director of, or a person performing similar
functions with respect to, a person described in subparagraph (A)
of this paragraph;
(D) The spouse of an individual described in subparagraph (A),
(B) or (C) of this paragraph; or
(E) An individual who is related by blood or marriage to an
individual described in subparagraph (A), (B), (C) or (D) of this
paragraph and shares the same home with the individual.
(kkk) 'Proceeds,' except as used in ORS 79.0609 (2), means the
following property:
(A) Whatever is acquired upon the sale, lease, license,
exchange or other disposition of collateral;
(B) Whatever is collected on, or distributed on account of,
collateral;
(C) Rights arising out of collateral;
(D) To the extent of the value of collateral, claims arising
out of the loss, nonconformity or interference with the use of,
defects or infringement of rights in, or damage to, the
collateral; or
(E) To the extent of the value of collateral and to the extent
payable to the debtor or the secured party, insurance payable by
reason of the loss or nonconformity of, defects or infringement
of rights in, or damage to, the collateral.
(LLL) 'Promissory note' means an instrument that evidences a
promise to pay a monetary obligation, does not evidence an order
to pay, and does not contain an acknowledgment by a bank that the
bank has received for deposit a sum of money or funds.
(mmm) 'Proposal' means a record authenticated by a secured
party which includes the terms on which the secured party is
willing to accept collateral in full or partial satisfaction of
the obligation it secures pursuant to ORS 79.0620, 79.0621 and
79.0622.
(nnn) 'Public-finance transaction' means a secured transaction
in connection with which:
(A) Debt securities are issued;
(B) All or a portion of the securities issued have an initial
stated maturity of at least 20 years; and
(C) The debtor, obligor, secured party, account debtor or other
person obligated on collateral, assignor or assignee of a secured
obligation, or assignor or assignee of a security interest is a
state or a governmental unit of a state.
{ + (ooo) 'Public organic record' means a record that is
available to the public for inspection and is:
(A) A record consisting of the record initially filed with or
issued by a state or the United States to form or organize an
organization and any record filed with or issued by the state or
the United States that amends or restates the initial record;
(B) An organic record of a business trust consisting of the
record initially filed with a state and any record filed with the
state that amends or restates the initial record, if a statute of
Enrolled House Bill 4035 (HB 4035-A) Page 8
the state governing business trusts requires that the record be
filed with the state; or
(C) A record consisting of legislation enacted by the
legislature of a state or the Congress of the United States that
forms or organizes an organization, any record amending the
legislation and any record filed with or issued by the state or
the United States that amends or restates the name of the
organization. + }
{ - (ooo) - } { + (ppp) + } 'Pursuant to commitment,' with
respect to an advance made or other value given by a secured
party, means pursuant to the secured party's obligation, whether
or not a subsequent event of default or other event not within
the secured party's control has relieved or may relieve the
secured party from its obligation.
{ - (ppp) - } { + (qqq) + } 'Record,' except as used in
'for record, ' ' of record,' 'record or legal title' and 'record
owner, ' means information that is inscribed on a tangible medium
or which is stored in an electronic or other medium and is
retrievable in perceivable form.
{ - (qqq) - } { + (rrr) + } 'Registered organization' means
an organization { + formed or + } organized solely under the law
of a single state or the United States { - and as to which the
state or the United States is required by statute or regulation
to maintain a public record showing the organization to have been
organized. - } { + by the filing of a public organic record
with, the issuance of a public organic record by or the enactment
of legislation by the state or the United States. 'Registered
organization' includes a business trust that is formed or
organized under the law of a single state if a statute of the
state governing business trusts requires that the business
trust's organic record be filed with the state. + }
{ - (rrr) - } { + (sss) + } 'Secondary obligor' means an
obligor to the extent that:
(A) The obligor's obligation is secondary; or
(B) The obligor has a right of recourse with respect to an
obligation secured by collateral against the debtor, another
obligor, or property of either.
{ - (sss) - } { + (ttt) + } 'Secured party' means:
(A) A person in whose favor a security interest is created or
provided for under a security agreement, whether or not any
obligation to be secured is outstanding;
(B) A person that holds an agricultural lien;
(C) A consignor;
(D) A person to which accounts, chattel paper, payment
intangibles or promissory notes have been sold;
(E) A trustee, indenture trustee, agent, collateral agent or
other representative in whose favor a security interest or
agricultural lien is created or provided for; or
(F) A person that holds a security interest arising under ORS
72.4010, 72.5050, 72.7110 (3), 72A.5080 (5), 74.2100 or 75.1180.
{ - (ttt) - } { + (uuu) + } 'Security agreement' means an
agreement that creates or provides for a security interest.
{ - (uuu) - } { + (vvv) + } 'Send,' in connection with a
record or notification, means:
(A) To deposit in the mail, deliver for transmission, or
transmit by any other usual means of communication, with postage
or cost of transmission provided for, addressed to any address
reasonable under the circumstances; or
Enrolled House Bill 4035 (HB 4035-A) Page 9
(B) To cause the record or notification to be received within
the time that it would have been received if properly sent under
subparagraph (A) of this paragraph.
{ - (vvv)(A) - } { + (www)(A) + } 'Software' means a
computer program and any supporting information provided in
connection with a transaction relating to the program.
(B) The term does not include a computer program that is
included in the definition of goods.
{ - (www) - } { + (xxx) + } 'State' means a state of the
United States, the District of Columbia, Puerto Rico, the United
States Virgin Islands or any territory or insular possession
subject to the jurisdiction of the United States.
{ - (xxx) - } { + (yyy) + } 'Supporting obligation' means a
letter-of-credit right or secondary obligation that supports the
payment or performance of an account, chattel paper, a document,
a general intangible, an instrument or investment property.
{ - (yyy) - } { + (zzz) + } 'Tangible chattel paper' means
chattel paper evidenced by a record or records consisting of
information that is inscribed on a tangible medium.
{ - (zzz) - } { + (aaaa) + } 'Termination statement' means
an amendment of a financing statement which:
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates either that it is a termination statement or that
the identified financing statement is no longer effective.
{ - (aaaa) - } { + (bbbb) + } 'Transmitting utility' means
an organization primarily engaged in the business of:
(A) Operating a railroad, subway, street railway or trolley
bus;
(B) Transmitting communications electrically,
electromagnetically or by light;
(C) Transmitting goods by pipeline or sewer; or
(D) Transmitting or producing and transmitting electricity,
steam, gas or water.
(2) 'Control' as provided in ORS 77.1060 and the following
definitions in other sections apply to this chapter:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
'
Applicant'
ORS 75.1020
'
Beneficiary'
ORS 75.1020
'
Broker'
ORS 78.1020
'
Certificated security'
ORS 78.1020
'
Check'
ORS 73.0104
Enrolled House Bill 4035 (HB 4035-A) Page 10
'
Clearing corporation'
ORS 78.1020
'
Contract for sale'
ORS 72.1060
'
Customer'
ORS 74.1040
'
Entitlement holder'
ORS 78.1020
'
Financial asset'
ORS 78.1020
'
Holder in due course'
ORS 73.0302
'
Issuer'
(with respect
to a letter of credit or
letter-of-credit right)ORS 75.1020
'
Issuer'
(with respect
to a security) ORS 78.2010
'
Issuer'
(with respect
to documents of title)ORS 77.1020
'
Lease'
ORS 72A.1030
'
Lease agreement'
ORS 72A.1030
'
Lease contract'
ORS 72A.1030
'
Leasehold interest'
ORS 72A.1030
'
Lessee'
ORS 72A.1030
'
Lessee in ordinary course
of business'
ORS 72A.1030
'
Lessor'
ORS 72A.1030
'
Lessor's residual
interest'
ORS 72A.1030
'
Letter of credit'
ORS 75.1020
Enrolled House Bill 4035 (HB 4035-A) Page 11
'
Merchant'
ORS 72.1040
'
Negotiable instrument'
ORS 73.0104
'
Nominated person'
ORS 75.1020
'
Note'
ORS 73.0104
'
Proceeds of a letter
of credit'
ORS 75.1140
'
Prove'
ORS 73.0103
'
Sale'
ORS 72.1060
'
Securities account'
ORS 78.5010
'
Securities intermediary'
ORS 78.1020
'
Security'
ORS 78.1020
'
Security certificate'
ORS 78.1020
'
Security entitlement'
ORS 78.1020
'
Uncertificated security'
ORS 78.1020
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(3) ORS chapter 71 contains general definitions and principles
of construction and interpretation applicable throughout this
chapter.
SECTION 2. ORS 79.0105 is amended to read:
79.0105. { + UCC 9-105. Control of electronic chattel
paper. + } { - A secured party has control of electronic
chattel paper if the record or records comprising the chattel
paper are created, stored and assigned in such a manner that: - }
{ + (1) A secured party has control of electronic chattel
paper if a system employed for evidencing the transfer of
interests in the chattel paper reliably establishes the secured
party as the person to which the chattel paper was assigned.
(2) A system satisfies the provisions of subsection (1) of this
section if the record or records comprising the chattel paper are
created, stored and assigned in such a manner that: + }
Enrolled House Bill 4035 (HB 4035-A) Page 12
{ - (1) - } { + (a) + } A single authoritative copy of the
record or records exists which is unique, identifiable and,
except as otherwise provided in { - subsections (4), (5) and
(6) of this section - } { + paragraphs (d), (e) and (f) of this
subsection + }, unalterable;
{ - (2) - } { + (b) + } The authoritative copy identifies
the secured party as the assignee of the record or records;
{ - (3) - } { + (c) + } The authoritative copy is
communicated to and maintained by the secured party or its
designated custodian;
{ - (4) - } { + (d) + } Copies or { - revisions - } { +
amendments + } that add or change an identified assignee of the
authoritative copy can be made only with the
{ - participation - } { + consent + } of the secured party;
{ - (5) - } { + (e) + } Each copy of the authoritative copy
and any copy of a copy is readily identifiable as a copy that is
not the authoritative copy; and
{ - (6) - } { + (f) + } Any { - revision - } { +
amendment + } of the authoritative copy is readily identifiable
as { - an - } authorized or unauthorized
{ - revision - } .
SECTION 3. ORS 79.0208 is amended to read:
79.0208. { + UCC 9-208. Additional duties of secured party
having control of collateral. + } (1) This section applies to
cases in which there is no outstanding secured obligation and the
secured party is not committed to make advances, incur
obligations or otherwise give value.
(2) Within 10 days after receiving an authenticated demand by
the debtor:
(a) A secured party having control of a deposit account under
ORS 79.0104 (1)(b) shall send to the bank with which the deposit
account is maintained an authenticated statement that releases
the bank from any further obligation to comply with instructions
originated by the secured party;
(b) A secured party having control of a deposit account under
ORS 79.0104 (1)(c) shall:
(A) Pay the debtor the balance on deposit in the deposit
account; or
(B) Transfer the balance on deposit into a deposit account in
the debtor's name;
(c) A secured party, other than a buyer, having control of
electronic chattel paper under ORS 79.0105 shall:
(A) Communicate the authoritative copy of the electronic
chattel paper to the debtor or its designated custodian;
(B) If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic
chattel paper is maintained for the secured party, communicate to
the custodian an authenticated record releasing the designated
custodian from any further obligation to comply with instructions
originated by the secured party and instructing the custodian to
comply with instructions originated by the debtor; and
(C) Take appropriate action to enable the debtor or its
designated custodian to make copies of or { - revisions - }
{ + amendments + } to the authoritative copy which add or change
an identified assignee of the authoritative copy without the
consent of the secured party;
(d) A secured party having control of investment property under
ORS 78.1060 (4)(b) or 79.0106 (2) shall send to the securities
intermediary or commodity intermediary with which the security
entitlement or commodity contract is maintained an authenticated
Enrolled House Bill 4035 (HB 4035-A) Page 13
record that releases the securities intermediary or commodity
intermediary from any further obligation to comply with
entitlement orders or directions originated by the secured party;
(e) A secured party having control of a letter-of-credit right
under ORS 79.0107 shall send to each person having an unfulfilled
obligation to pay or deliver proceeds of the letter of credit to
the secured party an authenticated release from any further
obligation to pay or deliver proceeds of the letter of credit to
the secured party; and
(f) A secured party having control of an electronic document
shall:
(A) Give control of the electronic document to the debtor or a
designated custodian;
(B) If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic
document is maintained for the secured party, communicate to the
custodian an authenticated record releasing the designated
custodian from any further obligation to comply with instructions
originated by the secured party and instructing the custodian to
comply with instructions originated by the debtor; and
(C) Take appropriate action to enable the debtor or its
designated custodian to make copies of or { - revisions - }
{ + amendments + } to the authoritative copy that add or change
an identified assignee of the authoritative copy without the
consent of the secured party.
SECTION 4. ORS 79.0307 is amended to read:
79.0307. { + UCC 9-307. Location of debtor. + } (1) As used in
this section, 'place of business' means a place where a debtor
conducts its affairs.
(2) Except as otherwise provided in this section, the following
rules determine a debtor's location:
(a) A debtor who is an individual is located at the
individual's principal residence.
(b) A debtor that is an organization and has only one place of
business is located at its place of business.
(c) A debtor that is an organization and has more than one
place of business is located at its chief executive office.
(3) Subsection (2) of this section applies only if a debtor's
residence, place of business or chief executive office, as
applicable, is located in a jurisdiction whose law generally
requires information concerning the existence of a nonpossessory
security interest to be made generally available in a filing,
recording or registration system as a condition or result of the
security interest's obtaining priority over the rights of a lien
creditor with respect to the collateral. If subsection (2) of
this section does not apply, the debtor is located in the
District of Columbia.
(4) A person that ceases to exist, have a residence or have a
place of business continues to be located in the jurisdiction
specified by subsections (2) and (3) of this section.
(5) A registered organization that is organized under the law
of a state is located in that state.
(6) Except as otherwise provided in subsection (9) of this
section, a registered organization that is organized under the
law of the United States and a branch or agency of a bank that is
not organized under the law of the United States or a state are
located:
(a) In the state that the law of the United States designates,
if the law designates a state of location;
Enrolled House Bill 4035 (HB 4035-A) Page 14
(b) In the state that the registered organization, branch or
agency designates, if the law of the United States authorizes the
registered organization, branch or agency to designate its state
of location { + , including by designating its main office, home
office or other comparable office + }; or
(c) In the District of Columbia, if neither paragraph (a) nor
paragraph (b) of this subsection applies.
(7) A registered organization continues to be located in the
jurisdiction specified by subsection (5) or (6) of this section
notwithstanding:
(a) The suspension, revocation, forfeiture or lapse of the
registered organization's status as such in its jurisdiction of
organization; or
(b) The dissolution, winding up or cancellation of the
existence of the registered organization.
(8) The United States is located in the District of Columbia.
(9) A branch or agency of a bank that is not organized under
the law of the United States or a state is located in the state
in which the branch or agency is licensed, if all branches and
agencies of the bank are licensed in only one state.
(10) A foreign air carrier under the Federal Aviation Act of
1958, as amended, is located at the designated office of the
agent upon which service of process may be made on behalf of the
carrier.
(11) This section applies only for purposes of ORS 79.0301 to
79.0342.
SECTION 5. ORS 79.0311 is amended to read:
79.0311. { + UCC 9-311. Perfection of security interests in
property subject to certain statutes, regulations and
treaties. + } (1) Except as otherwise provided in subsection (4)
of this section, the filing of a financing statement is not
necessary or effective to perfect a security interest in property
subject to:
(a) A statute, regulation or treaty of the United States whose
requirements for a security interest's obtaining priority over
the rights of a lien creditor with respect to the property
preempt ORS 79.0310 (1);
(b) ORS chapter 830 and the Oregon Vehicle Code;
(c) A { - certificate-of-title - } statute of another
jurisdiction
{ - which - } { + that + } provides for a security interest
to be indicated on
{ - the - } { + a + } certificate { + of title + } as a
condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the property;
or
(d) ORS 446.611 (1).
(2) Compliance with the requirements of a statute, regulation
or treaty described in subsection (1) of this section for
obtaining priority over the rights of a lien creditor is
equivalent to the filing of a financing statement under this
chapter. Except as otherwise provided in subsection (4) of this
section and ORS 79.0313, 79.0316 (4) and (5) and 79.0334 for
goods covered by a certificate of title or for a manufactured
structure, a security interest in property subject to a statute,
regulation or treaty described in subsection (1) of this section
may be perfected only by compliance with those requirements, and
a security interest so perfected remains perfected
notwithstanding a change in the use or transfer of possession of
the collateral.
Enrolled House Bill 4035 (HB 4035-A) Page 15
(3) Except as otherwise provided in subsection (4) of this
section and ORS 79.0316 (4) and (5), duration and renewal of
perfection of a security interest perfected by compliance with
the requirements prescribed by a statute, regulation or treaty
described in subsection (1) of this section are governed by the
statute, regulation or treaty. In other respects, the security
interest is subject to this chapter.
(4) During any period in which collateral subject to a statute
specified in subsection (1)(b) or (d) of this section is
inventory held for sale or lease by a person or leased by that
person as lessor and that person is in the business of selling
goods of that kind, this section does not apply to a security
interest in that collateral created by that person.
SECTION 6. ORS 79.0316 is amended to read:
79.0316. { + UCC 9-316. Effect of change in governing law. + }
(1) A security interest perfected pursuant to the law of the
jurisdiction designated in ORS 79.0301 (1) or 79.0305 (3) remains
perfected until the earliest of:
(a) The time perfection would have ceased under the law of that
jurisdiction;
(b) The expiration of four months after a change of the
debtor's location to another jurisdiction; or
(c) The expiration of one year after a transfer of collateral
to a person that thereby becomes a debtor and is located in
another jurisdiction.
(2) If a security interest described in subsection (1) of this
section becomes perfected under the law of the other jurisdiction
before the earliest time or event described in that subsection,
it remains perfected thereafter. If the security interest does
not become perfected under the law of the other jurisdiction
before the earliest time or event, it becomes unperfected and is
deemed never to have been perfected as against a purchaser of the
collateral for value.
(3) A possessory security interest in collateral, other than
goods covered by a certificate of title, a manufactured structure
or as-extracted collateral consisting of goods, remains
continuously perfected if:
(a) The collateral is located in one jurisdiction and subject
to a security interest perfected under the law of that
jurisdiction;
(b) Thereafter the collateral is brought into another
jurisdiction; and
(c) Upon entry into the other jurisdiction, the security
interest is perfected under the law of the other jurisdiction.
(4) Except as otherwise provided in subsection (5) of this
section, a security interest in goods covered by a certificate of
title or in a manufactured structure that is perfected by any
method under the law of another jurisdiction when the goods
become covered by a certificate of title or a manufactured
structure ownership document or deed record in this state remains
perfected until the security interest would have become
unperfected under the law of the other jurisdiction had the goods
not become so covered.
(5) A security interest described in subsection (4) of this
section becomes unperfected as against a purchaser of the goods
for value and is deemed never to have been perfected as against a
purchaser of the goods for value if the applicable requirements
for perfection under ORS 79.0311 (2) or 79.0313 are not satisfied
before the earlier of:
Enrolled House Bill 4035 (HB 4035-A) Page 16
(a) The time the security interest would have become
unperfected under the law of the other jurisdiction had the goods
not become covered by a certificate of title or a manufactured
structure ownership document or deed record in this state; or
(b) The expiration of four months after the goods had become so
covered.
(6) A security interest in deposit accounts, letter-of-credit
rights or investment property which is perfected under the law of
the bank's jurisdiction, the issuer's jurisdiction, a nominated
person's jurisdiction, the securities intermediary's jurisdiction
or the commodity intermediary's jurisdiction, as applicable,
remains perfected until the earlier of:
(a) The time the security interest would have become
unperfected under the law of that jurisdiction; or
(b) The expiration of four months after a change of the
applicable jurisdiction to another jurisdiction.
(7) If a security interest described in subsection (6) of this
section becomes perfected under the law of the other jurisdiction
before the earlier of the time or the end of the period described
in subsection (6) of this section, it remains perfected
thereafter. If the security interest does not become perfected
under the law of the other jurisdiction before the earlier of
that time or the end of that period, it becomes unperfected and
is deemed never to have been perfected as against a purchaser of
the collateral for value.
{ + (8) The following rules apply to collateral to which a
security interest attaches within four months after the debtor
changes the debtor's location to another jurisdiction:
(a) A financing statement filed before the change pursuant to
the law of the jurisdiction designated in ORS 79.0301 (1) or
79.0305 (3) is effective to perfect a security interest in the
collateral if the financing statement would have been effective
to perfect a security interest in the collateral had the debtor
not changed the debtor's location.
(b) If a security interest perfected by a financing statement
that is effective under paragraph (a) of this subsection becomes
perfected under the law of the other jurisdiction before the
earlier of the time the financing statement would have become
ineffective under the law of the jurisdiction designated in ORS
79.0301 (1) or 79.0305 (3), or the expiration of the four-month
period, it remains perfected thereafter. If the security interest
does not become perfected under the law of the other jurisdiction
before the earlier time or event, it becomes unperfected and is
deemed never to have been perfected as against a purchaser of the
collateral for value.
(9) If a financing statement naming an original debtor is filed
pursuant to the law of the jurisdiction designated in ORS 79.0301
(1) or 79.0305 (3) and the new debtor in another jurisdiction,
the following rules apply:
(a) The financing statement is effective to perfect a security
interest in collateral acquired by the new debtor before, and
within four months after, the new debtor becomes bound under ORS
79.0203 (4) if the financing statement would have been effective
to perfect a security interest in the collateral had the
collateral been acquired by the original debtor.
(b) A security interest perfected by the financing statement
and that becomes perfected under the law of the other
jurisdiction before the earlier of the time the financing
statement would have become ineffective under the law of the
jurisdiction designated in ORS 79.0301 (1) or 79.0305 (3), or the
Enrolled House Bill 4035 (HB 4035-A) Page 17
expiration of the four-month period, remains perfected
thereafter. A security interest that is perfected by the
financing statement but that does not become perfected under the
law of the other jurisdiction before the earlier time or event
becomes unperfected and is deemed never to have been perfected as
against a purchaser of the collateral for value. + }
SECTION 7. ORS 79.0317 is amended to read:
79.0317. { + UCC 9-317. Interests that take priority over or
take free of security interest or agricultural lien. + } (1) A
security interest or agricultural lien is subordinate to the
rights of:
(a) A person entitled to priority under ORS 79.0322; and
(b) Except as otherwise provided in subsection (5) of this
section, a person that becomes a lien creditor before the earlier
of the time:
(A) The security interest or agricultural lien is perfected; or
(B) One of the conditions specified in ORS 79.0203 (2)(c) is
met and a financing statement covering the collateral is filed.
(2) Except as otherwise provided in subsection (5) of this
section, a buyer, other than a secured party, of tangible chattel
paper, tangible documents, goods, instruments or a { +
certificated + } security { - certificate - } takes free of a
security interest or agricultural lien if the buyer gives value
and receives delivery of the collateral without knowledge of the
security interest or agricultural lien and before it is
perfected.
(3) Except as otherwise provided in subsection (5) of this
section, a lessee of goods takes free of a security interest or
agricultural lien if the lessee gives value and receives delivery
of the collateral without knowledge of the security interest or
agricultural lien and before it is perfected.
(4) A licensee of a general intangible or a buyer, other than a
secured party, of { - accounts, electronic chattel paper,
electronic documents, general intangibles or investment
property - } { + collateral + } other than { + tangible
chattel paper, tangible documents, goods, instruments or + } a
certificated security takes free of a security interest if the
licensee or buyer gives value without knowledge of the security
interest and before it is perfected.
(5) Except as otherwise provided in ORS 79.0320 and 79.0321, if
a person files a financing statement with respect to a
purchase-money security interest before or within 20 days after
the debtor receives delivery of the collateral, the security
interest takes priority over the rights of a buyer, lessee or
lien creditor which arise between the time the security interest
attaches and the time of filing.
SECTION 8. ORS 79.0326 is amended to read:
79.0326. { + UCC 9-326. Priority of security interests created
by new debtor. + } (1) Subject to subsection (2) of this section,
a security interest { + that is + } created by a new debtor
{ - which is - } { + in collateral in which the new debtor has
or acquires rights and is + } perfected { + solely + } by a
filed financing statement that { - is effective solely under
ORS 79.0508 in collateral in which a new debtor has or acquires
rights - } { + would be ineffective to perfect the security
interest but for the application of ORS 79.0316 (9)(a) or
79.0508 + } is subordinate to a security interest in the same
collateral which is perfected other than by { + such + } a filed
financing statement { - that is effective solely under ORS
79.0508 - } .
Enrolled House Bill 4035 (HB 4035-A) Page 18
(2) The other provisions of ORS 79.0301 to 79.0342 determine
the priority among conflicting security interests in the same
collateral perfected by filed financing statements { - that are
effective solely under ORS 79.0508 - } { + described in
subsection (1) of this section + }. However, if the security
agreements to which a new debtor became bound as debtor were not
entered into by the same original debtor, the conflicting
security interests rank according to priority in time of the new
debtor's having become bound.
SECTION 9. ORS 79.0335 is amended to read:
79.0335. { + UCC 9-335. Accessions. + } (1) A security
interest may be created in an accession and continues in
collateral that becomes an accession.
(2) If a security interest is perfected when the collateral
becomes an accession, the security interest remains perfected in
the collateral.
(3) Except as otherwise provided in subsections (4) and (7) of
this section, the other provisions of ORS 79.0301 to 79.0342
determine the priority of a security interest in an accession.
(4) Except as otherwise provided in subsection (7) of this
section, a security interest in an accession is subordinate to a
security interest in the whole which is perfected by compliance
with { - the requirements of a certificate-of-title statute
under - } ORS 79.0311 (2) { + , + } { - or with ORS - }
446.611 or 446.626.
(5) After default, subject to ORS 79.0601 to 79.0628, a secured
party may remove an accession from other goods if the security
interest in the accession has priority over the claims of every
person having an interest in the whole.
(6) A secured party that removes an accession from other goods
under subsection (5) of this section shall promptly reimburse any
holder of a security interest or other lien on, or owner of, the
whole or of the other goods, other than the debtor, for the cost
of repair of any physical injury to the whole or the other goods.
The secured party need not reimburse the holder or owner for any
diminution in value of the whole or the other goods caused by the
absence of the accession removed or by any necessity for
replacing it. A person entitled to reimbursement may refuse
permission to remove until the secured party gives adequate
assurance for the performance of the obligation to reimburse.
(7) A security interest in an accession has priority over a
security interest in the whole which is perfected by compliance
with the requirements of { - a certificate-of-title statute
under - } ORS 79.0311 (2) or with ORS 446.611 or 446.626 if the
security interest in the accession is a purchase money security
interest that is perfected when the debtor receives possession of
the accession or within 20 days thereafter.
SECTION 10. ORS 79.0406 is amended to read:
79.0406. { + UCC 9-406. Discharge of account debtor;
notification of assignment; identification and proof of
assignment; restrictions on assignment of accounts, chattel
paper, payment intangibles and promissory notes ineffective. + }
(1) Subject to subsections (2) to (9) of this section, an account
debtor on an account, chattel paper or a payment intangible may
discharge its obligation by paying the assignor until, but not
after, the account debtor receives a notification, authenticated
by the assignor or the assignee, that the amount due or to become
due has been assigned and that payment is to be made to the
assignee. After receipt of the notification, the account debtor
Enrolled House Bill 4035 (HB 4035-A) Page 19
may discharge its obligation by paying the assignee and may not
discharge the obligation by paying the assignor.
(2) Subject to subsection (8) of this section, notification is
ineffective under subsection (1) of this section:
(a) If it does not reasonably identify the rights assigned;
(b) To the extent that an agreement between an account debtor
and a seller of a payment intangible limits the account debtor's
duty to pay a person other than the seller and the limitation is
effective under law other than this chapter; or
(c) At the option of an account debtor, if the notification
notifies the account debtor to make less than the full amount of
any installment or other periodic payment to the assignee, even
if:
(A) Only a portion of the account, chattel paper or payment
intangible has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that
assignee is limited.
(3) Subject to subsection (8) of this section, if requested by
the account debtor, an assignee shall seasonably furnish
reasonable proof that the assignment has been made. Unless the
assignee complies, the account debtor may discharge its
obligation by paying the assignor, even if the account debtor has
received a notification under subsection (1) of this section.
(4) Except as otherwise provided in subsection (5) of this
section and ORS 72A.3030 and 79.0407, and subject to subsection
(8) of this section, a term in an agreement between an account
debtor and an assignor or in a promissory note is ineffective to
the extent that it:
(a) Prohibits, restricts or requires the consent of the account
debtor or person obligated on the promissory note to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the account,
chattel paper, payment intangible or promissory note; or
(b) Provides that the assignment or transfer or the creation,
attachment, perfection or enforcement of the security interest
may give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination or remedy under the
account, chattel paper, payment intangible or promissory note.
(5) Subsection (4) of this section does not apply to the sale
of a payment intangible or promissory note { + , other than a
sale pursuant to a disposition under ORS 79.0610 or an acceptance
of collateral under ORS 79.0620 + }.
(6) Except as otherwise provided in ORS 72A.3030 and 79.0407
and subject to subsections (8) and (9) of this section, a rule of
law, statute or regulation that prohibits, restricts or requires
the consent of a government, governmental body or official, or
account debtor to the assignment or transfer of, or creation of a
security interest in, an account or chattel paper is ineffective
to the extent that the rule of law, statute or regulation:
(a) Prohibits, restricts or requires the consent of the
government, governmental body or official, or account debtor to
the assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in the account
or chattel paper; or
(b) Provides that the assignment or transfer or the creation,
attachment, perfection or enforcement of the security interest
may give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination or remedy under the
account or chattel paper.
Enrolled House Bill 4035 (HB 4035-A) Page 20
(7) Subject to subsection (8) of this section, an account
debtor may not waive or vary its option under subsection (2)(c)
of this section.
(8) This section is subject to law other than this chapter
which establishes a different rule for an account debtor who is
an individual and who incurred the obligation primarily for
personal, family or household purposes.
(9)(a) This section does not apply to the assignment of a
health-care-insurance receivable.
(b) Subsections (4) and (6) of this section do not apply to the
assignment or transfer of, or the creation of a security interest
in, a claim or right to receive compensation for injuries or
sickness as described in 26 U.S.C. 104(a)(2), provided that such
transaction constitutes a sale of such claim or right. The
limitation in this paragraph is intended to leave to the court
the determination of the proper rules in such cases. The court
may not infer from that limitation the nature of the proper rule
in such cases and may continue to apply established approaches.
(c) Subsections (4) and (6) of this section do not apply to the
following:
(A) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive compensation
for injuries or sickness as described in 26 U.S.C. 104(a)(1);
(B) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive benefits under
a special needs trust as described in 42 U.S.C. 1396p(d)(4); or
(C) The assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the
benefits, rights, privileges or options accruing under an annuity
policy, to the extent that the annuity policy provides for such a
restriction and the restriction is permitted under ORS 743.049.
(d) Subsection (6) of this section does not apply to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, a right when
the transfer of the right is prohibited or restricted by ORS
147.325, 461.250 (8) or 656.234, to the extent that ORS 147.325,
461.250 (8) or 656.234 is inconsistent with subsection (6) of
this section.
(10) Except to the extent otherwise provided in subsection (9)
of this section, this section prevails over any inconsistent
provision of an existing or future statute unless the provision
refers expressly to this section and states that the provision
prevails over this section.
SECTION 11. ORS 79.0408 is amended to read:
79.0408. { + UCC 9-408. Restrictions on assignment of
promissory notes, health care insurance receivables and certain
general intangibles ineffective. + } (1) Except as otherwise
provided in subsection (2) of this section, a term in a
promissory note or in an agreement between an account debtor and
a debtor which relates to a health-care-insurance receivable or a
general intangible, including a contract, permit, license or
franchise, and which term prohibits, restricts or requires the
consent of the person obligated on the promissory note or the
account debtor to, the assignment or transfer of, or creation,
attachment or perfection of a security interest in, the
promissory note, health-care-insurance receivable or general
intangible, is ineffective to the extent that the term:
(a) Would impair the creation, attachment or perfection of a
security interest; or
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(b) Provides that the assignment or transfer or the creation,
attachment or perfection of the security interest may give rise
to a default, breach, right of recoupment, claim, defense,
termination, right of termination or remedy under the promissory
note, health-care-insurance receivable or general intangible.
(2) Subsection (1) of this section applies to a security
interest in a payment intangible or promissory note only if the
security interest arises out of a sale of the payment intangible
or promissory note { + , other than a sale pursuant to a
disposition under ORS 79.0610 or an acceptance of collateral
under ORS 79.0620 + }.
(3) A rule of law, statute or regulation that prohibits,
restricts or requires the consent of a government, governmental
body or official, person obligated on a promissory note or
account debtor to the assignment or transfer of, or creation of a
security interest in, a promissory note, health-care-insurance
receivable or general intangible, including a contract, permit,
license or franchise between an account debtor and a debtor, is
ineffective to the extent that the rule of law, statute or
regulation:
(a) Would impair the creation, attachment or perfection of a
security interest; or
(b) Provides that the assignment or transfer or the creation,
attachment or perfection of the security interest may give rise
to a default, breach, right of recoupment, claim, defense,
termination, right of termination or remedy under the promissory
note, health-care-insurance receivable or general intangible.
(4) To the extent that a term in a promissory note or in an
agreement between an account debtor and a debtor which relates to
a health-care-insurance receivable or general intangible or a
rule of law, statute or regulation described in subsection (3) of
this section would be effective under law other than this chapter
but is ineffective under subsection (1) or (3) of this section,
the creation, attachment or perfection of a security interest in
the promissory note, health-care-insurance receivable or general
intangible:
(a) Is not enforceable against the person obligated on the
promissory note or the account debtor;
(b) Does not impose a duty or obligation on the person
obligated on the promissory note or the account debtor;
(c) Does not require the person obligated on the promissory
note or the account debtor to recognize the security interest,
pay or render performance to the secured party, or accept payment
or performance from the secured party;
(d) Does not entitle the secured party to use or assign the
debtor's rights under the promissory note, health-care-insurance
receivable or general intangible, including any related
information or materials furnished to the debtor in the
transaction giving rise to the promissory note,
health-care-insurance receivable or general intangible;
(e) Does not entitle the secured party to use, assign, possess
or have access to any trade secrets or confidential information
of the person obligated on the promissory note or the account
debtor; and
(f) Does not entitle the secured party to enforce the security
interest in the promissory note, health-care-insurance receivable
or general intangible.
(5)(a) Subsections (1) and (3) of this section do not apply to
the assignment or transfer of, or the creation of a security
interest in, a claim or right to receive compensation for
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injuries or sickness as described in 26 U.S.C. 104(a)(2),
provided that such transaction constitutes a sale of such claim
or right. The limitation in this paragraph is intended to leave
to the court the determination of the proper rules in such cases.
The court may not infer from that limitation the nature of the
proper rule in such cases and may continue to apply established
approaches.
(b) Subsections (1) and (3) of this section do not apply to the
following:
(A) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive compensation
for injuries or sickness as described in 26 U.S.C. 104(a)(1);
(B) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive benefits under
a special needs trust as described in 42 U.S.C. 1396p(d)(4); or
(C) The assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the
benefits, rights, privileges or options accruing under an annuity
policy, to the extent that the annuity policy provides for such a
restriction and the restriction is permitted under ORS 743.049.
(c) Subsection (3) of this section does not apply to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, a right when
the transfer of the right is prohibited or restricted by ORS
147.325, 461.250 (8) or 656.234, to the extent that ORS 147.325,
461.250 (8) or 656.234 is inconsistent with subsection (3) of
this section.
(6) Except to the extent otherwise provided in subsection (5)
of this section, this section prevails over any inconsistent
provision of an existing or future statute unless the provision
refers expressly to this section and states that the provision
prevails over this section.
SECTION 12. ORS 79.0503 is amended to read:
79.0503. { + UCC 9-503. Name of debtor and secured party. + }
(1) A financing statement sufficiently provides the name of the
debtor:
(a) { + Except as otherwise provided in paragraph (c) of this
subsection, + }if the debtor is a registered organization { +
or the collateral is held in a trust that is a registered
organization + }, only if the financing statement provides the
name { - of the debtor indicated - } { + that is stated to be
the registered organization's name + } on the public { +
organic + } record { - of - } { + most recently filed with or
issued or enacted by + } the { - debtor's - } { + registered
organization's + } jurisdiction of organization { - which shows
the debtor to have been organized - } { + that purports to
state, amend or restate the registered organization's name + };
(b) { + Subject to subsection (6) of this section, + } if the
{ - debtor is a decedent's estate - } { + collateral is being
administered by the personal representative of a decedent + },
only if the financing statement provides { + , as the name of the
debtor, + } the name of the decedent and { + , in a separate part
of the financing statement, + } indicates that the { - debtor
is an estate - } { + collateral is being administered by a
personal representative + };
(c) If the { - debtor is a trust or a trustee acting with
respect to property held in trust, only if the financing
statement - } { + collateral is held in a trust that is not a
registered organization, only if the financing statement + }:
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{ - (A) Provides the name specified for the trust in its
organic documents or, if no name is specified, provides the name
of the settlor and additional information sufficient to
distinguish the debtor from other trusts having one or more of
the same settlors; and - }
{ - (B) Indicates, in the debtor's name or otherwise, that
the debtor is a trust or is a trustee acting with respect to
property held in trust; and - }
{ + (A) Provides, as the name of the debtor:
(i) If the organic record of the trust specifies a name for the
trust, the name specified; or
(ii) If the organic record of the trust does not specify a name
for the trust, the name of the settlor or testator; and
(B) In a separate part of the financing statement:
(i) If the name is provided in accordance with subparagraph
(A)(i) of this paragraph, indicates that the collateral is held
in trust; or
(ii) If the name is provided in accordance with subparagraph
(A)(ii) of this paragraph, provides additional information
sufficient to distinguish the trust from other trusts having one
or more of the same settlors or the same testator and indicates
that the collateral is held in a trust, unless the additional
information so indicates;
(d) If the debtor is an individual, only if the financing
statement:
(A) Provides the individual name of the debtor;
(B) Provides the surname and first personal name of the debtor;
or
(C) Subject to subsection (7) of this section, provides the
name of the individual that is indicated on a driver license or
identification card that this state has issued to the individual
and that has not expired; and + }
{ - (d) - } { + (e) + } In other cases:
(A) If the debtor has a name, only if { - it - } { + the
financing statement + } provides the { - individual or - }
organizational name of the debtor; and
(B) If the debtor does not have a name, only if { - it - }
{ + the financing statement + } provides the names of the
partners, members, associates or other persons comprising the
debtor { + in a manner that each name provided would be
sufficient if the person named were the debtor + }.
(2) A financing statement that provides the name of the debtor
in accordance with subsection (1) of this section is not rendered
ineffective by the absence of:
(a) A trade name or other name of the debtor; or
(b) Unless required under subsection { - (1)(d)(B) - } { +
(1)(e)(B) + } of this section, names of partners, members,
associates or other persons comprising the debtor.
(3) A financing statement that provides only the debtor's trade
name does not sufficiently provide the name of the debtor.
(4) Failure to indicate the representative capacity of a
secured party or representative of a secured party does not
affect the sufficiency of a financing statement.
(5) A financing statement may provide the name of more than one
debtor and the name of more than one secured party.
{ + (6) The name of the decedent indicated on the order
appointing the personal representative of the decedent issued by
the court having jurisdiction over the collateral is sufficient
as the name of the decedent under subsection (1)(b) of this
section.
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(7) If this state has issued to an individual more than one
driver license or identification card of a kind described in
subsection (1)(d)(C) of this section, the one that was issued
most recently is the one to which subsection (1)(d)(C) of this
section refers.
(8) As used in this section, 'name of the settlor or testator'
means:
(a) If the settlor is a registered organization, the name that
is stated to be the settlor's name on the public organic record
most recently filed with or issued or enacted by the settlor's
jurisdiction of organization that purports to state, amend or
restate the settlor's name; or
(b) In other cases, the name of the settlor or testator
indicated in the trust's organic record. + }
SECTION 13. ORS 79.0507 is amended to read:
79.0507. { + UCC 9-507. Effect of certain events on
effectiveness of financing statement. + } (1) A filed financing
statement remains effective with respect to collateral that is
sold, exchanged, leased, licensed or otherwise disposed of and in
which a security interest or agricultural lien continues, even if
the secured party knows of or consents to the disposition.
(2) Except as otherwise provided in subsection (3) of this
section and ORS 79.0506 (4) and 79.0508, a financing statement is
not rendered ineffective if, after the financing statement is
filed, the information provided in the financing statement
becomes seriously misleading under ORS 79.0506.
(3) If { - a debtor so changes its - } { + the + } name
that a filed financing statement { + provides for a debtor + }
becomes { + insufficient as the name of the debtor under ORS
79.0503 (1) so that the financing statement becomes + } seriously
misleading under ORS 79.0506:
(a) The financing statement is effective to perfect a security
interest in collateral acquired by the debtor before, or within
four months after, the { - change - } { + filed financing
statement becomes seriously misleading + }; and
(b) The financing statement is not effective to perfect a
security interest in collateral acquired by the debtor more than
four months after the { - change - } { + filed financing
statement becomes seriously misleading + }, unless an amendment
to the financing statement which renders the financing statement
not seriously misleading is filed within four months after the
{ - change - } { + financing statement becomes seriously
misleading + }.
SECTION 14. ORS 79.0515 is amended to read:
79.0515. { + UCC 9-515. Duration and effectiveness of
financing statement; effect of lapsed financing statement;
renewal notice; rules. + } (1) Except as otherwise provided in
subsections (2), (5), (6) and (7) of this section, a filed
financing statement is effective for a period of five years after
the date of filing.
(2) Except as otherwise provided in subsections (5), (6) and
(7) of this section, an initial financing statement filed in
connection with a public-finance transaction is effective for a
period of 30 years after the date of filing if it indicates that
it is filed in connection with a public-finance transaction.
(3) The effectiveness of a filed financing statement lapses on
the expiration of the period of its effectiveness unless before
the lapse a continuation statement is filed pursuant to
subsection (4) of this section. Upon lapse, a financing statement
ceases to be effective and any security interest or agricultural
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lien that was perfected by the financing statement becomes
unperfected, unless the security interest is perfected otherwise.
If the security interest or agricultural lien becomes unperfected
upon lapse, it is deemed never to have been perfected as against
a purchaser of the collateral for value.
(4) A continuation statement may be filed only within six
months before the expiration of the five-year period specified in
subsection (1) of this section or the 30-year period specified in
subsection (2) of this section, whichever is applicable.
(5) Except as otherwise provided in ORS 79.0510, upon timely
filing of a continuation statement, the effectiveness of the
initial financing statement continues for a period of five years
commencing on the day on which the financing statement would have
become ineffective in the absence of the filing. Upon the
expiration of the five-year period, the financing statement
lapses in the same manner as provided in subsection (3) of this
section, unless, before the lapse, another continuation statement
is filed pursuant to subsection (4) of this section. Succeeding
continuation statements may be filed in the same manner to
continue the effectiveness of the initial financing statement.
(6) If a debtor is a transmitting utility and a filed
{ + initial + } financing statement so indicates, the financing
statement is effective until a termination statement is filed.
(7) A record of a mortgage that is effective as a financing
statement filed as a fixture filing under ORS 79.0502 (3) remains
effective as a financing statement filed as a fixture filing
until the mortgage is released or satisfied of record or its
effectiveness otherwise terminates as to the real property.
(8) The Secretary of State upon request shall provide a renewal
notice report to a secured party by electronic mail or other
electronic means. The renewal notice report must include:
(a) The file number and expiration date for each financing
statement or effective financing statement, as defined in ORS
80.100, or a continuation of the financing statement or effective
financing statement, that:
(A) Lists the secured party; and
(B) Will expire within a period that begins 90 days after the
date of the notice and ends one year after the date of the
notice;
(b) The name of the debtor;
(c) A statement that to continue the financing statement or
effective financing statement, the secured party may file a
continuation statement or an initial financing statement under
section 191 or 192, chapter 445, Oregon Laws 2001; and
(d) Other information that the Secretary of State specifies by
rule.
SECTION 15. ORS 79.0516 is amended to read:
79.0516. { + UCC 9-516. What constitutes filing; effectiveness
of filing. + } (1) Except as otherwise provided in subsection (2)
of this section, communication of a record to and receipt by a
filing office and tender of the filing fee or acceptance of the
record by the filing office constitutes filing.
(2) Filing does not occur with respect to a record that a
filing office refuses to accept because:
(a) The record is not communicated by a method or medium of
communication authorized by the filing office;
(b) An amount equal to or greater than the applicable filing
fee is not tendered;
(c) The filing office is unable to index the record because:
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(A) In the case of an initial financing statement, the record
does not provide a name for the debtor;
(B) In the case of an amendment or { - correction - } { +
information + } statement, the record:
(i) Does not identify the initial financing statement as
required by ORS 79.0512 or 79.0518, as applicable; or
(ii) Identifies an initial financing statement whose
effectiveness has lapsed under ORS 79.0515, and the filing office
is that described in ORS 79.0501 (1)(b);
(C) In the case of an initial financing statement that provides
the name of a debtor identified as an individual or an amendment
that provides a name of a debtor identified as an individual
which was not previously provided in the financing statement to
which the record relates, the record does not identify the
debtor's { - last name - } { + surname + }; or
(D) In the case of a record filed or recorded in the filing
office described in ORS 79.0501 (1)(a), the record does not
provide a sufficient description of the real property to which it
relates;
(d) In the case of an initial financing statement or an
amendment that adds a secured party of record, the record does
not provide a name and mailing address for the secured party of
record;
(e) In the case of an initial financing statement or an
amendment that provides a name of a debtor which was not
previously provided in the financing statement to which the
amendment relates, the record does not:
(A) Provide a mailing address for the debtor, unless the
initial financing statement or amendment is included in a
mortgage and the filing office is that described in ORS 79.0501
(1)(a); { + or + }
(B) Indicate whether the { + name provided as the name of
the + } debtor is { + the name of + } an individual or an
organization, unless the initial financing statement or amendment
is included in a mortgage and the filing office is that described
in ORS 79.0501 (1)(a);
{ - or - }
{ - (C) If the filing office is that described in ORS 79.0501
(1)(b) and the financing statement indicates that the debtor is
an organization, provide: - }
{ - (i) A type of organization for the debtor; - }
{ - (ii) A jurisdiction of organization for the debtor or, as
an alternative when the debtor is not a registered organization,
an indication that the debtor is not a registered organization;
or - }
{ - (iii) An organizational identification number for the
debtor or indicate that the debtor has none; - }
(f) In the case of an assignment reflected in an initial
financing statement under ORS 79.0514 (1) or an amendment filed
under ORS 79.0514 (2), the record does not provide a name and
mailing address for the assignee;
(g) In the case of a continuation statement, the record is not
filed within the six-month period prescribed by ORS 79.0515 (4)
and the filing office is that described in ORS 79.0501 (1)(b); or
(h) In the case of a record presented for filing at the filing
office described in ORS 79.0501 (1)(b), the record on its face
reveals, based on factors such as whether the debtor and the
secured party are the same person or whether the collateral
described is within the scope of this chapter, that the record is
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being filed for a purpose other than a transaction that is within
the scope of this chapter.
(3) For purposes of subsection (2) of this section:
(a) A record does not provide information if the filing office
is unable to read or decipher the information; and
(b) A record that does not indicate that it is an amendment or
identify an initial financing statement to which it relates, as
required by ORS 79.0512, 79.0514 or 79.0518, is an initial
financing statement.
(4) A record that is communicated to and received by the filing
office with tender of the filing fee under subsection (1) of this
section, but which the filing office refuses to accept for a
reason other than one set forth in subsection (2) of this
section, is effective as a filed record except as against a
purchaser of the collateral which gives value in reasonable
reliance upon the absence of the record from the files.
SECTION 16. ORS 79.0518 is amended to read:
79.0518. { + UCC 9-518. Claim concerning inaccurate or wrongly
filed record. + } (1) A person may file in the filing office
{ - a correction - } { + an information + } statement with
respect to a record indexed there under the person's name if the
person believes that the record is inaccurate or was wrongfully
filed.
(2) { - A correction - } { + An information + }
statement { + under subsection (1) of this section + } must:
(a) Identify the record to which it relates by the file number
assigned to the initial financing statement to which the record
relates;
(b) Indicate that it is { - a correction - } { + an
information + } statement;
(c) Provide the basis for the person's belief that the record
is inaccurate and indicate the manner in which the person
believes the record should be amended to cure any inaccuracy or
provide the basis for the person's belief that the record was
wrongfully filed; and
(d) Indicate the name of the debtor and the secured party.
{ + (3) A person may file in the filing office an information
statement with respect to a record filed there if the person is a
secured party of record with respect to the filing statement to
which the record relates and believes that the person that filed
the record was not entitled to do so under ORS 79.0509 (4).
(4) An information statement under subsection (3) of this
section must:
(a) Identify the record to which it relates by the file number
assigned to the initial financing statement to which the record
relates;
(b) Indicate that it is an information statement; and
(c) Provide the basis for the person's belief that the person
that filed the record was not entitled to do so under ORS 79.0509
(4). + }
{ - (3) - } { + (5) + } The filing of { - a
correction - } { + an information + } statement does not affect
the effectiveness of an initial financing statement or other
filed record.
SECTION 17. ORS 79.0521 is amended to read:
79.0521. { + UCC 9-521. Uniform form of written financing
statement and amendment. + } { - (1) - } A filing office that
accepts written records may not refuse to accept a written
initial financing statement { + , addendum or amendment + } in
the form and format set forth in the final official text of the
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{ - 1999 - } { + 2010 + } revisions to Article 9 of the
Uniform Commercial Code promulgated by The American Law Institute
and the { - National Conference of Commissioners on Uniform
State Laws - } { + Uniform Law Commission + }, except for a
reason set forth in ORS 79.0516 (2).
{ - (2) A filing office that accepts written records may not
refuse to accept a written record in the form and format set
forth in the final official text of the 1999 revisions to Article
9 of the Uniform Commercial Code promulgated by The American Law
Institute and the National Conference of Commissioners on Uniform
State Laws, except for a reason set forth in ORS 79.0516 (2). - }
SECTION 18. ORS 79.0607 is amended to read:
79.0607. { + UCC 9-607. Collection and enforcement by secured
party. + } (1) If so agreed, and in any event after default, a
secured party:
(a) May notify an account debtor or other person obligated on
collateral to make payment or otherwise render performance to or
for the benefit of the secured party;
(b) May take any proceeds to which the secured party is
entitled under ORS 79.0315;
(c) May enforce the obligations of an account debtor or other
person obligated on collateral and exercise the rights of the
debtor with respect to the obligation of the account debtor or
other person obligated on collateral to make payment or otherwise
render performance to the debtor, and with respect to any
property that secures the obligations of the account debtor or
other person obligated on the collateral;
(d) If it holds a security interest in a deposit account
perfected by control under ORS 79.0104 (1)(a), may apply the
balance of the deposit account to the obligation secured by the
deposit account; and
(e) If it holds a security interest in a deposit account
perfected by control under ORS 79.0104 (1)(b) or (c), may
instruct the bank to pay the balance of the deposit account to or
for the benefit of the secured party.
(2) If necessary to enable a secured party to exercise under
subsection (1)(c) of this section the right of a debtor to
enforce a mortgage nonjudicially, the secured party may record in
the office in which a record of the mortgage is recorded the
secured party's sworn affidavit, with a copy of the security
agreement attached thereto. The affidavit shall be in recordable
form and state that:
(a) A default has occurred { + with respect to the obligation
secured by the mortgage + }; and
(b) The secured party is entitled to enforce the mortgage
nonjudicially.
(3) A secured party shall proceed in a commercially reasonable
manner if the secured party:
(a) Undertakes to collect from or enforce an obligation of an
account debtor or other person obligated on collateral; and
(b) Is entitled to charge back uncollected collateral or
otherwise to full or limited recourse against the debtor or a
secondary obligor.
(4) A secured party may deduct from the collections made
pursuant to subsection (3) of this section reasonable expenses of
collection and enforcement, including reasonable attorney fees
and legal expenses incurred by the secured party.
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(5) This section does not determine whether an account debtor,
bank or other person obligated on collateral owes a duty to a
secured party.
SECTION 19. ORS 79.0619 is amended to read:
79.0619. { + UCC 9-619. Transfer of record or legal title. + }
(1) As used in this section, 'transfer statement' means a record
authenticated by a secured party stating:
(a) That the debtor has defaulted in connection with an
obligation secured by specified collateral;
(b) That the secured party has exercised its post-default
remedies with respect to the collateral;
(c) That, by reason of the exercise, a transferee has acquired
the rights of the debtor in the collateral; and
(d) The name and mailing address of the secured party, debtor
and transferee.
(2) A transfer statement entitles the transferee to the
transfer of record of all rights of the debtor in the collateral
specified in the statement in any official { + system for + }
filing, recording { - , registration or certificate-of-title
system - } { + or registration + }covering the collateral { +
or in accordance with the provisions of ORS 79.0311 (2), 446.611
or 446.626 + }. If a transfer statement is presented with the
applicable fee and request form to the official or office
responsible for maintaining the system, the official or office
shall:
(a) Accept the transfer statement;
(b) Promptly amend its records to reflect the transfer; and
(c) If applicable, issue a new appropriate certificate of title
in the name of the transferee.
(3) A transfer of the record or legal title to collateral to a
secured party under subsection (2) of this section or otherwise
is not of itself a disposition of collateral under this chapter
and does not of itself relieve the secured party of its duties
under this chapter.
SECTION 20. { + Section 21 of this 2012 Act is added to and
made a part of the Oregon Vehicle Code. + }
SECTION 21. { + ' Special mobile equipment' means a vehicle
that is not designed primarily to transport persons or property,
that is operated on a highway only incidentally and that is used
primarily on a farm, for timber production and harvest, for
construction work or for lawn and grounds care. + }
SECTION 22. ORS 803.030 is amended to read:
803.030. This section establishes exemptions from the
requirements under ORS 803.025 to obtain title issued by this
state. The exemptions are subject to ORS 803.040. The exemptions
are in addition to any exemptions under ORS 801.026. Vehicles
exempted by this section from the requirements to be titled by
this state are not prohibited from being titled by this state if
titling is permitted under ORS 803.035. The exemptions are
partial or complete as provided in the following:
(1) Title from this state is not required for a vehicle unless
the vehicle is operated on a highway in this state.
(2) Title from this state is not required unless a vehicle is
operated under a registration number of this state.
(3) Snowmobiles and Class I, Class III and Class IV all-terrain
vehicles are not subject to the requirements under ORS 803.025.
The requirements and procedures for titling snowmobiles are as
provided under ORS 821.060 and 821.070.
(4) Road rollers, farm tractors and traction engines are exempt
from the requirements for title.
Enrolled House Bill 4035 (HB 4035-A) Page 30
(5) Trolleys are exempt from the requirements for title.
(6) Bicycles are exempt from the requirements for title.
(7) United States Government owned and operated motor vehicles
and trailers are exempt from the requirements for title.
(8) Implements of husbandry, well drilling machinery, emergency
fire apparatus providing public fire protection and wheelchairs
are exempt from the requirements for title.
(9) Except as provided in subsection (23) of this section,
fixed load vehicles are exempt from the requirements for title
while operated within the immediate construction project, as
described in the governmental agency contract, in the
construction or reconstruction of state or county roads, highways
or city streets.
(10) Motor vehicles designed to operate at a loaded weight over
8,000 pounds, trailers and equipment are exempt from requirements
for title while:
(a) Owned, leased, contracted or requisitioned by the State
Forester, State Board of Forestry, their contractors under ORS
chapter 477, or the federal government; and
(b) Being used for the purposes of forest protection and fire
suppression under ORS chapter 477 or a similar federal statute,
including movement of the vehicles to and from the work area.
(11) Farm trailers are exempt from requirements for title when
the operation or movement of the vehicle upon the highways is
incidental to its use in an agricultural operation.
(12) Golf carts operated under an ordinance adopted under ORS
810.070 are exempt from requirements for title.
(13) Golf carts or similar vehicles are exempt from
requirements for title when:
(a) They have not less than three wheels in contact with the
ground;
(b) They have an unloaded weight of less than 1,300 pounds;
(c) They are designed to be and are operated at not more than
15 miles per hour; and
(d) They are operated by persons with disabilities.
(14) The nonresident owners of vehicles currently registered
and titled in any other country, state or territory may operate
such vehicles over the highways of this state without complying
with the titling requirements under ORS 803.025. All of the
following apply to this subsection:
(a) This subsection only provides an exemption so long as the
owner satisfactorily shows that the owner is not a resident of
this state or has been a resident of this state for less than 30
days. For the purpose of this paragraph, a person is a resident
of this state if the person meets the residency requirements
described in ORS 803.200.
(b) The exemption under this subsection applies to vehicles
granted exemptions under ORS 802.500, 802.520 or 826.005, unless
otherwise provided under paragraph (c) of this subsection.
(c) Except as otherwise provided in this paragraph, a vehicle
operated over the highways of this state for compensation or
profit must comply with the titling requirements under ORS
803.025 in the same manner as required of nontitled vehicles. The
following vehicles are not subject to this paragraph:
(A) Vehicles operated under reciprocal registration exemptions
established under ORS 802.500 or 826.005.
(B) Vehicles operated under an exemption established under ORS
802.520.
Enrolled House Bill 4035 (HB 4035-A) Page 31
(C) Vehicles that are proportionally registered under an
agreement established under ORS 826.007, and according to the
procedures established under ORS 826.009 or 826.011.
(D) Any vehicle if duly registered and titled under the laws of
the state or country of which the owner is a bona fide resident
to the extent that in the foreign country, state, territory or
federal district where the owner resides like exemptions and
privileges are granted vehicles duly registered and titled under
the laws of this state and owned by residents of this state.
(d) If no exemptions from titling requirements are in effect
under ORS 802.500, 802.520, 826.005 or 826.007 with respect to
another jurisdiction, any vehicle properly registered and titled
in such other jurisdiction and for which evidence of compliance
is supplied shall receive, when operated in this state, the same
exemptions, benefits and privileges granted by such other
jurisdictions to vehicles properly registered and titled in this
state. Reciprocity extended under this paragraph shall apply to
commercial vehicles only when engaged exclusively in interstate
commerce.
(e) Any vehicle operated under dealer registration plates
issued by another state, country, province, territory or the
District of Columbia is subject to this subsection.
(15) Vehicle dealers issued certificates under ORS 822.020 may
use and operate untitled vehicles as provided under ORS 822.040.
(16) Towing businesses issued certificates under ORS 822.205
may tow untitled vehicles as provided under ORS 822.210.
(17) Vehicle transporters issued certificates under ORS 822.310
may transport untitled vehicles as provided in ORS 822.310.
(18) Untitled vehicles may be operated under trip permits
described under ORS 803.600 or under permits described under ORS
803.610 to 803.625.
(19) Vehicles that are registered by the United States
Department of State and that are owned or operated by foreign
nationals with diplomatic immunity are exempt from the
requirements for title.
(20)(a) Vehicles that are registered under the proportional
registration provisions of ORS chapter 826 and are titled in a
jurisdiction other than Oregon are exempt from the requirements
for title.
(b) A trailer that is registered under the proportional
registration provisions of ORS chapter 826 and titled in a
jurisdiction other than Oregon shall remain exempt from the
requirements for title in Oregon if the trailer is registered
when the other jurisdiction removes its exception to proportional
registration requirements for the trailer.
(21) Converter dollies and tow dollies are exempt from the
requirements for title.
(22) Electric personal assistive mobility devices are exempt
from the requirements for title.
(23) Road machinery that is operated at the direction of a road
authority is exempt from the requirements for title. The
exemption under this subsection also applies when the operation
of road machinery upon a highway or an alley is incidental to its
use in a highway maintenance operation.
{ + (24) Special mobile equipment is exempt from the
requirements for title. + }
SECTION 23. ORS 803.097 is amended to read:
803.097. (1) Except as provided in subsection (5) of this
section, the exclusive means for perfecting a security interest
in a vehicle is by application for notation of the security
Enrolled House Bill 4035 (HB 4035-A) Page 32
interest on the title in accordance with this section. The
application may accompany the application for a title or may be
made separately at any time prior to issuance of title and must
be accompanied by evidence of ownership as defined by the
Department of Transportation by rule unless the department is in
possession of evidence of ownership when it receives the
application. If title to the vehicle has been issued in a form
other than a certificate, and the title reflects a security
interest, the application for perfection shall include
authorization from the previous security interest holder for the
new security interest to be recorded on the title. Authorization
under this subsection is not required if:
(a) A release of interest is submitted by the prior security
interest holder or the department is otherwise satisfied that the
prior holder no longer holds an interest or is otherwise not
entitled to title to the vehicle;
(b) The security interest is being added to the title in
conjunction with the cancellation of previous title or other
action the department takes to correct ownership information
reflected on a title; or
(c) Title is being transferred by operation of law.
(2) When the department processes an application for a security
interest the department shall mark on the application or
otherwise indicate on the record the date the application was
first received by the department. The department shall determine
by rule what constitutes receipt of an application for purposes
of this subsection.
(3) If the department has the evidence required by subsection
(1) of this section and if the application contains the name of
each owner of the vehicle, the name and address of the secured
party and the vehicle identification number of the collateral,
the security interest is perfected as of the date marked on the
application or indicated in the record by the department. If the
application does not contain the information required by this
subsection, or if the department does not have the required
evidence, the department shall indicate on the application or on
the record that the date placed on the application or the record
pursuant to subsection (2) of this section is not the date of
perfection of the security interest.
(4) The security interest remains effective until released or
terminated by the secured party.
(5) A security interest in a vehicle may not be perfected as
described under this section but is subject to the perfection
provisions under ORS chapter 79 if { + :
(a) + } The debtor who granted the security interest is in the
business of selling vehicles and the vehicle constitutes
inventory held for sale or lease { - . - } { + ; or
(b) The vehicle is exempt from titling requirements under ORS
803.030. + }
SECTION 24. { + (1) Except as otherwise provided in sections
21 and 24 to 31 of this 2012 Act, the amendments to statutes by
sections 1 to 19, 22 and 23 of this 2012 Act apply to a
transaction or lien within the scope of ORS 79.0102, 79.0105,
79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335,
79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518,
79.0521, 79.0607, 79.0619, 803.030 and 803.097, as amended by
sections 1 to 19, 22 and 23 of this 2012 Act, even if the
transaction or lien was entered into or created before the
operative date specified in section 32 of this 2012 Act.
Enrolled House Bill 4035 (HB 4035-A) Page 33
(2) The amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act do not affect an action, case or proceeding
commenced before the operative date specified in section 32 of
this 2012 Act. + }
SECTION 25. { + (1) A security interest that is a perfected
security interest immediately before the operative date specified
in section 32 of this 2012 Act is a perfected security interest
under section 21 of this 2012 Act and under ORS 79.0102, 79.0105,
79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335,
79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518,
79.0521, 79.0607, 79.0619, 803.030 and 803.097, as amended by
sections 1 to 19, 22 and 23 of this 2012 Act, if after the
operative date specified in section 32 of this 2012 Act the
applicable requirements for attachment and perfection under the
amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act are satisfied without further action.
(2) Except as otherwise provided in section 27 of this 2012
Act, if immediately before the operative date specified in
section 32 of this 2012 Act a security interest is a perfected
security interest but the applicable requirements for perfection
under the amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act are not satisfied on or before the operative
date specified in section 32 of this 2012 Act, the security
interest remains perfected thereafter only if the applicable
requirements for perfection under the amendments to statutes by
sections 1 to 19, 22 and 23 of this 2012 Act are satisfied within
one year after the operative date specified in section 32 of this
2012 Act. + }
SECTION 26. { + A security interest that is an unperfected
security interest immediately before the operative date specified
in section 32 of this 2012 Act becomes a perfected security
interest:
(1) Without further action on or after the operative date
specified in section 32 of this 2012 Act if the applicable
requirements for perfection under the amendments to statutes by
sections 1 to 19, 22 and 23 of this 2012 Act are satisfied before
or at that time; or
(2) When the applicable requirements for perfection are
satisfied if the requirements are satisfied after that time. + }
SECTION 27. { + (1) The filing of a financing statement before
the operative date specified in section 32 of this 2012 Act is
effective to perfect a security interest to the extent that the
filing would satisfy the applicable requirements for perfection
under the amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act.
(2) The amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act do not render ineffective an effective financing
statement that, before the operative date specified in section 32
of this 2012 Act, is filed and satisfies the applicable
requirements for perfection under the law of jurisdiction
governing perfection as provided in ORS 79.0102, 79.0105,
79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335,
79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518,
79.0521, 79.0607, 79.0619, 803.030 and 803.097 as those statutes
existed before the operative date specified in section 32 of this
2012 Act. However, except as otherwise provided in subsections
(3) and (4) of this section and in section 28 of this 2012 Act,
the financing statement ceases to be effective:
(a) If the financing statement is filed in this state, at the
time the financing statement would have ceased to be effective
Enrolled House Bill 4035 (HB 4035-A) Page 34
had section 21 of this 2012 Act and the amendments to ORS
79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316, 79.0317,
79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507, 79.0515,
79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and 803.097
by sections 1 to 19, 22 and 23 of this 2012 Act not become
operative; or
(b) If the financing statement is filed in another
jurisdiction, at the earlier of:
(A) The time the financing statement would have ceased to be
effective under the law of the other jurisdiction; or
(B) June 30, 2018.
(3) The filing of a continuation statement after the operative
date specified in section 32 of this 2012 Act does not continue
the effectiveness of a financing statement filed before the
operative date specified in section 32 of this 2012 Act.
However, upon the timely filing of a continuation statement after
the operative date specified in section 32 of this 2012 Act and
in accordance with the law of the jurisdiction governing
perfection as provided in the amendments to statutes by sections
1 to 19, 22 and 23 of this 2012 Act, the effectiveness of a
financing statement filed in the same office in the jurisdiction
before the operative date specified in section 32 of this 2012
Act continues for the period provided by the law of the
jurisdiction.
(4) Subsection (2)(b)(B) of this section applies to a financing
statement that, before the operative date specified in section 32
of this 2012 Act, is filed against a transmitting utility and
satisfies the applicable requirements for perfection under the
law of the jurisdiction governing perfection as provided in ORS
79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316, 79.0317,
79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507, 79.0515,
79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and 803.097,
as those statutes existed before the operative date specified in
section 32 of this 2012 Act, only to the extent that the
amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act provide that the law of a jurisdiction other than the
jurisdiction in which the financing statement is filed governs
perfection of a security interest in collateral covered by the
financing statement.
(5) A financing statement that includes a financing statement
filed before the operative date specified in section 32 of this
2012 Act and a continuation statement filed before the operative
date specified in section 32 of this 2012 Act is effective only
to the extent that the financing statement satisfies the
requirements of ORS 79.0503, 79.0515, 79.0516, 79.0518 and
79.0521, as amended by sections 12, 14, 15, 16 and 17 of this
2012 Act, for an initial filing statement. A financing statement
that indicates that the debtor is a decedent's estate indicates
that the collateral is being administered by a personal
representative within the meaning of ORS 79.0503 (1)(b), as
amended by section 12 of this 2012 Act. A financing statement
that indicates that the debtor is a trust or is a trustee acting
with respect to property held in trust indicates that the
collateral is held in a trust within the meaning of ORS 79.0503
(1)(c), as amended by section 12 of this 2012 Act. + }
SECTION 28. { + (1) The filing of an initial filing statement
in the office specified in ORS 79.0501 continues the
effectiveness of a financing statement filed before the operative
date specified in section 32 of this 2012 Act if:
Enrolled House Bill 4035 (HB 4035-A) Page 35
(a) The filing of an initial financing statement in the office
would be effective to perfect a security interest under the
amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act;
(b) The financing statement filed before the operative date
specified in section 32 of this 2012 Act was filed in an office
in another state; and
(c) The initial financing statement satisfies the provisions of
subsection (3) of this section.
(2) The filing of an initial financing statement under
subsection (1) of this section continues the effectiveness of the
financing statement filed before the operative date specified in
section 32 of this 2012 Act:
(a) If the initial financing statement is filed before the
operative date specified in section 32 of this 2012 Act, for the
period provided in ORS 79.0515, as that statute existed before
the operative date specified in section 32 of this 2012 Act, with
respect to an initial financing statement; and
(b) If the initial financing statement is filed after the
operative date specified in section 32 of this 2012 Act, for the
period provided in ORS 79.0515, as amended by section 14 of this
2012 Act, with respect to an initial financing statement.
(3) To be effective for purposes of subsection (1) of this
section, an initial financing statement must:
(a) Satisfy the requirements of ORS 79.0501 to 79.0528 for an
initial financing statement;
(b) Identify the financing statement that was filed before the
operative date specified in section 32 of this 2012 Act by
indicating the office in which the financing statement was filed
and providing the dates of filing and file numbers, if any, of
the financing statement and of the most recent continuation
statement filed with respect to the financing statement; and
(c) Indicate that the financing statement filed before the
operative date specified in section 32 of this 2012 Act remains
effective. + }
SECTION 29. { + (1) After the operative date specified in
section 32 of this 2012 Act, a person may add or delete
collateral covered by, continue or terminate the effectiveness
of, or otherwise amend the information provided in a financing
statement filed before the operative date specified in section 32
of this 2012 Act only in accordance with the law of the
jurisdiction governing perfection as provided in the amendments
to statutes by sections 1 to 19, 22 and 23 of this 2012 Act.
However, the effectiveness of a financing statement filed before
the operative date specified in section 32 of this 2012 Act may
also be terminated in accordance with the law of the jurisdiction
in which the financing statement is filed.
(2) Except as otherwise provided in subsection (3) of this
section, if the law of this state governs perfection of a
security interest, the information in a financing statement filed
before the operative date specified in section 32 of this 2012
Act may be amended after the operative date specified in section
32 of this 2012 Act only if:
(a) The financing statement filed before the operative date
specified in section 32 of this 2012 Act and an amendment are
filed in the office specified in ORS 79.0501;
(b) An amendment is filed in the office specified in ORS
79.0501 concurrently with or after the filing in the office of an
initial financing statement that satisfies section 28 (3) of this
2012 Act; or
Enrolled House Bill 4035 (HB 4035-A) Page 36
(c) An initial financing statement that provides the
information as amended and satisfies section 28 (3) of this 2012
Act is filed in the office specified in ORS 79.0501.
(3) If the law of this state governs perfection of a security
interest, the effectiveness of a financing statement filed before
the operative date specified in section 32 of this 2012 Act may
be continued only under section 27 (3) and (5) or 28 of this 2012
Act.
(4) Whether or not the law of this state governs perfection of
a security interest, the effectiveness of a financing statement
filed in this state before the operative date specified in
section 32 of this 2012 Act may be terminated after the operative
date specified in section 32 of this 2012 Act by filing a
termination statement in an office in which the financing
statement filed before the operative date specified in section 32
of this 2012 Act is filed unless an initial financing statement
that satisfies section 28 (3) of this 2012 Act has been filed in
the office specified as the office in which to file a financing
statement by the law of the jurisdiction governing perfection as
provided in the amendments to statutes by sections 1 to 19, 22
and 23 of this 2012 Act. + }
SECTION 30. { + A person may file an initial financing
statement or a continuation statement under sections 24 to 31 of
this 2012 Act if:
(1) The secured party of record authorizes the filing; and
(2) The filing is necessary under sections 24 to 31 of this
2012 Act:
(a) To continue the effectiveness of a financing statement
filed before the operative date specified in section 32 of this
2012 Act; or
(b) To perfect or continue the perfection of a security
interest. + }
SECTION 31. { + Section 21 of this 2012 Act and the amendments
to ORS 79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316,
79.0317, 79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507,
79.0515, 79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and
803.097 by sections 1 to 19, 22 and 23 of this 2012 Act determine
the priority of conflicting claims to collateral. However, if the
relative priorities of the claims were established before the
operative date specified in section 32 of this 2012 Act, ORS
79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316, 79.0317,
79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507, 79.0515,
79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and 803.097,
as those statutes existed before the operative date specified in
section 32 of this 2012 Act, determine priority. + }
SECTION 32. { + Section 21 of this 2012 Act and the amendments
to ORS 79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316,
79.0317, 79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507,
79.0515, 79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and
803.097 by sections 1 to 19, 22 and 23 of this 2012 Act become
operative July 1, 2013. + }
SECTION 33. { + The section captions used in this 2012 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2012 Act. + }
SECTION 34. { + This 2012 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2012 Act takes effect on
its passage. + }
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Enrolled House Bill 4035 (HB 4035-A) Page 37
Passed by House February 13, 2012
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate February 23, 2012
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 4035 (HB 4035-A) Page 38
Received by Governor:
......M.,............., 2012
Approved:
......M.,............., 2012
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2012
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 4035 (HB 4035-A) Page 39
