68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 755
A-Engrossed
House Bill 2178
Ordered by the Senate May 5
Including Senate Amendments dated May 5
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Fiscal Policy Analysis
Division, Department of Administrative Services)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Repeals - } { + Extends + } 'sunset' provision for farm
credit mediation program. Authorizes use of program for other
agriculture disputes. { + Provides exemption for specified
banks. + }
Declares emergency, effective { - July 1, 1995 - } { + on
passage + }.
A BILL FOR AN ACT
Relating to agricultural mediation; creating new provisions;
amending sections 5, 17 and 18, chapter 967, Oregon Laws 1989;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 17, chapter 967, Oregon Laws 1989, is
amended to read:
{ + Sec. 17. + } Sections 13 and 14 { + , chapter 967, Oregon
Laws 1989, + }
{ - of this Act - } become operative on { - June 30,
1995 - } { + January 1, 2000 + }.
SECTION 2. Section 18, chapter 967, Oregon Laws 1989, is
amended to read:
{ + Sec. 18. + } Sections 2 to 10 { + , chapter 967, Oregon
Laws 1989, + } { - of this Act - } are repealed { - June 30,
1995 - } { + January 1, 2000 + }.
SECTION 3. { + (1) If this Act does not become effective until
after June 30, 1995, the amendment of section 18, chapter 967,
Oregon Laws 1989, by section 2 of this Act revives sections 2 to
10, chapter 967, Oregon Laws 1989. If this Act does not become
effective until after June 30, 1995, this Act shall be operative
retroactively to that date, and the operation and effect of
sections 2 to 10, chapter 967, Oregon Laws 1989, shall continue
unaffected from June 30, 1995, to the effective date of this Act
and thereafter. Any otherwise lawful action taken or otherwise
lawful obligation incurred under the authority of sections 2 to
10, chapter 967, Oregon Laws 1989, after June 30, 1995, and
before the effective date of this Act, is ratified and approved.
(2) If this Act does not become effective until after June 30,
1995, the amendment of section 17, chapter 967, Oregon Laws 1989,
by section 1 of this Act shall be operative retroactively to that
date. + }
SECTION 4. { + Section 5 of this Act is added to and made a
part of sections 2 to 10, chapter 967, Oregon Laws 1989. + }
SECTION 5. { + (1) In addition to other mediation activities
authorized by law, the Director of Agriculture and the State
Department of Agriculture may utilize the mediation program to
facilitate resolution of other disputes directly related to
department activities and agricultural issues under the
jurisdiction of the department.
(2) Participation in mediation referred to in subsection (1) of
this section by parties to a dispute is voluntary, and a party
may withdraw from the proceedings at any time.
(3) Notwithstanding the limitation on fees prescribed by
section 3 (2), chapter 967, Oregon Laws 1989, the director shall
recover from the parties to a mediation referred to in subsection
(1) of this section the actual cost of the mediation
proceedings. + }
SECTION 6. Section 5, chapter 967, Oregon Laws 1989, is amended
to read:
{ + Sec. 5. + } (1) { + Except as provided in subsection
(11) of this section, + } an agricultural producer who is in
danger of foreclosure on agricultural property under ORS 86.010
to 86.990, 87.001 to 87.920 or 88.710 to 88.740 or a creditor,
before or after beginning foreclosure proceedings, may request
mediation of the agricultural producer's indebtedness by filing a
request with the mediation service on a form provided by the
service. However, an agricultural producer or creditor may not
request mediation under this section unless, at the time the
request is made, the agricultural producer owes more than
$100,000 to one or more creditors, and the debt is either:
(a) Secured by one or more mortgages or trust deeds on the
agricultural producer's agricultural property;
(b) Evidenced by a real estate contract covering the
agricultural producer's agricultural property; or
(c) The subject of one or more statutory liens that have
attached to the agricultural producer's agricultural property.
(2) In filing a mediation request, the agricultural producer
shall provide:
(a) The name and address of each creditor;
(b) The amount claimed by each creditor;
(c) The amount of the periodic installment payments made to
each creditor;
(d) Any financial statements and projected cash flow
statements, including those related to any nonagricultural
activities;
(e) The name of the person authorized to enter into a binding
mediation agreement; and
(f) Any additional information the mediation service may
require.
(3) In filing a mediation request, a creditor shall provide:
(a) Statements regarding the status of the agricultural
producer's loan performance;
(b) The name and title of the representative of the creditor
authorized to enter into a binding mediation agreement; and
(c) Any additional information the mediation service may
require.
(4) Nothing in sections 2 to 10 of this Act shall be construed
to require an agricultural producer or creditor to engage or
continue in the mediation of any dispute or controversy.
Mediation under sections 2 to 10 of this Act shall be entirely
voluntary for all persons who are parties to the dispute or
controversy, and if such persons agree to engage in mediation,
any one of the persons may at any time withdraw from mediation.
(5) If an agricultural producer or a creditor files a mediation
request with the mediation service, the service shall within 10
days after receipt of the request give written notice of the
request to any other person who is identified in the request for
mediation as parties to the dispute or controversy. The notice
shall:
(a) Be accompanied by a copy of the request for mediation;
(b) Generally describe the mediation program created by
sections 2 to 10 of this Act;
(c) Explain that participation in mediation is voluntary and
that the recipient of the notice is not required to engage in
mediation or to continue to mediate if mediation is initiated;
(d) Request that the recipient of the notice advise the
mediation service in writing and by certified mail within 10 days
as to whether the recipient wishes to engage in mediation; and
(e) Explain that if the written advice required under paragraph
(d) of this subsection is not received by the mediation service
within the 10-day period, the mediation request will be
considered denied.
(6) If the person who receives the notice of request for
mediation under subsection (5) of this section wishes to engage
in mediation, the person shall advise the mediation service in
writing within the 10-day period specified in subsection (5) of
this section. The response shall include the appropriate
information that the responding person would have been required
to include in a request for mediation under subsection (2) or (3)
of this section.
(7) If the person who receives notice of request for mediation
under subsection (5) of this section does not wish to engage in
mediation, the person may but shall not be required to so advise
the mediation service.
(8) If the person who receives the notice of request for
mediation under subsection (5) of this section does not advise
the mediation service in writing within the 10-day period
specified in the notice described in subsection (5) of this
section that the person desires to mediate, the request for
mediation shall be considered denied.
(9) The submission of a request for mediation by an
agricultural producer or a creditor shall not operate to stay,
impede or delay in any manner whatsoever the commencement,
prosecution or defense of any action or proceeding by any person.
(10) If requested by the agricultural producer, the coordinator
shall provide the services of a financial analyst to assist the
agricultural producer in preparation of financial data for the
first mediation session.
{ + (11) Sections 2 to 10, chapter 967, Oregon Laws 1989, are
not applicable to obligations or foreclosure proceedings with
respect to which the creditor is a banking institution or a
national bank, as defined in ORS 706.005. + }
SECTION 7. { + This Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this Act takes effect on its
passage. + }
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