Bill Text: OR SB519 | 2011 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to sales of property subject to foreclosure.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2011-08-03 - Effective date, January 1, 2012. [SB519 Detail]

Download: Oregon-2011-SB519-Amended.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

SA to SB 519

LC 1757/SB 519-2

                      SENATE AMENDMENTS TO
                         SENATE BILL 519

                    By COMMITTEE ON JUDICIARY

                            April 18

  On page 1 of the printed bill, line 2, after 'ORS' insert '
86.705,'.
  In line 3, delete '88.060' and insert '130.005'.
  After line 4, insert:
  '  { +  SECTION 1. + } ORS 86.705 is amended to read:
  ' 86.705. As used in ORS 86.705 to 86.795  { - , unless the
context requires otherwise - } :
  '  { +  (1) 'Affordable housing covenant' has the meaning given
that term in ORS 456.270. + }
  '  { - (1) - }  { +  (2) + } 'Beneficiary' means   { - the - }
 { +  a + } person named or otherwise designated in a trust deed
as the person for whose benefit a trust deed is given, or the
person's successor in interest, and who   { - shall not be - }
 { + is not + } the trustee unless the beneficiary is qualified
to be a trustee under ORS 86.790 (1)(d).
  '  { +  (3) 'Eligible covenant holder' has the meaning given
that term in ORS 456.270. + }
  '  { - (2) - }  { +  (4) + } 'Grantor' means the person
 { - conveying - }  { +  that conveys + } an interest in real
property by a trust deed as security for the performance of an
obligation.
  '  { - (3) - }  { +  (5) + } 'Residential trust deed' means a
trust deed on property upon which are situated four or fewer
residential units { + , + }
  { - and - }  one of { +  which + }   { - the residential units
is occupied as the principal residence of - }  the grantor, the
grantor's spouse or the grantor's minor or dependent child { +
occupies as a principal residence + } at the time a trust deed
foreclosure is commenced.
  '  { - (4) - }  { +  (6) + } 'Residential unit' means an
improvement designed for residential use.
  '  { - (5) - }  { +  (7) + } 'Trust deed' means a deed executed
in conformity with ORS 86.705 to 86.795  { - , and conveying - }
 { +  that conveys + } an interest in real property to a trustee
in trust to secure the performance of an obligation   { - owed
by - }  the grantor or other person named in the deed { +
owes + } to a beneficiary.
  '  { - (6) - }  { +  (8) + } 'Trustee' means a person, other
than the beneficiary, to whom   { - an interest in real property
is conveyed by - } a trust deed { +  conveys an interest in real
property + }, or   { - such - }  { +  the + } person's successor
in interest  { - . The term includes a person who is - }  { + ,
or + } an employee of the beneficiary, if the   { - person - }
 { +  employee + } is qualified to be a trustee under ORS
86.790.'.
  In line 5, delete '1.' and insert '2.'.
  In line 20, after the first comma delete the rest of the line
and line 21.
  In line 22, delete 'to the interest that the beneficiary in the
trust deed holds,'.
  In line 23, delete ', as defined in ORS 456.270, or the public
body'.
  On page 3, line 43, delete '2' and insert '3'.
  On page 4, line 42, delete '3' and insert '4'.
  On page 5, line 36, delete '4' and insert '5'.
  On page 6, delete lines 1 through 9 and insert:
  ' (b) If the property subject to the trustee's sale is also
subject to an affordable housing covenant, the trustee shall sell
the property to an eligible covenant holder for a bid of the
lesser of:
  ' (A) The total sum of obligations that is owed and due to a
person and is secured by a trust deed, mortgage or lien on the
property that is superior to the eligible covenant holder's
interest; or
  ' (B) The highest bid received for the property other than a
bid from the eligible covenant holder.'.
  On page 8, delete lines 40 through 45 and insert:
  '  { +  SECTION 6. + } ORS 130.005 is amended to read:
  ' 130.005. (1) Except as provided in subsection (2) of this
section, this chapter applies to express trusts, whether
charitable or noncharitable, and to trusts created pursuant to a
statute or a judgment that requires that the trust be
administered in the manner of an express trust.
  ' (2) This chapter does not apply to:
  ' (a) A trust that is part of an employee benefit arrangement
or an individual retirement account.
  ' (b) A trust account established under a qualified tuition
savings program pursuant to ORS 348.841 to 348.873.
  ' (c) Trust accounts maintained on behalf of clients or
customers by licensed service professionals, including trust
accounts maintained by attorneys pursuant to rules of
professional conduct adopted under ORS 9.490 and by real estate
brokers pursuant to ORS 696.241.
  ' (d) An endowment care fund established by a cemetery
authority pursuant to ORS 97.810.
  ' (e) Funds maintained by { +  a + } public   { - bodies - }
 { +  body, + } as defined
  { - by - }  { +  in + } ORS 174.109 { + , + } or other
governmental entities.
  ' (f) Trust funds held for a single business transaction or an
escrow arrangement.
  ' (g) Trusts created by a depository agreement with a financial
institution.
  ' (h) Trusts created by an account agreement with a regulated
financial services entity.
  ' (i) An account maintained under the Oregon Uniform Transfers
to Minors Act as set forth in ORS 126.805 to 126.886.
  ' (j) A fund maintained pursuant to court order in conjunction
with a bankruptcy proceeding or business liquidation.
  ' (k) A business trust as described in ORS 128.560.
  ' (L) A voting trust as described in ORS 60.254.
  ' (m) Funds maintained to manage proceeds from class actions.
  ' (n) A trust deed as defined in ORS 86.705   { - (5) - }  or
any other trust created solely to secure the performance of an
obligation.
  ' (o) A trust established on behalf of a resident of a
residential facility under ORS 443.880.
  ' (p) A trust managed by a nonprofit association for persons
with disabilities under 42 U.S.C. 1396p(d)(4)(C), as in effect on
January 1, 2006, and under the rules of the Department of Human
Services.
  ' (q) A resulting or constructive trust.
  ' (r) A trust fund established for a purchaser who enters into
a prearrangement sales contract, as defined in ORS 97.923, or a
preconstruction sales contract, as defined in ORS 97.923.'.
  On page 9, delete lines 1 through 21.
  In line 22, delete '6' and insert '7'.
  Delete lines 40 and 41 and insert 'sale under terms set forth
in ORS 86.755.'.
  On page 10, line 39, delete '7' and insert '8' and after ' ORS'
insert '86.705,' and delete '4' and insert '5'.
  Delete lines 42 and 43.
  In line 44, delete '(3)' and insert '(2)' and delete ' 6' and
insert '7'.
  On page 11, line 1, delete '8' and insert '9'.
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