Chapter 0655

Chapter 655 Oregon Laws 2003

AN ACT

SB 468

Relating to manufactured structures; creating new provisions; amending ORS 59.840, 79.0102, 79.0311, 79.0313, 79.0316, 79.0334, 79.0335, 79.0337, 79.0515, 90.425, 90.675, 90.865, 114.535, 114.545, 184.642, 307.190, 308.425, 308.865, 308.866, 308.875, 308.880, 311.280, 311.370, 311.512, 366.512, 377.650, 390.134, 446.423, 455.010, 455.230, 455.895, 458.005, 468B.085, 479.260, 479.265, 646.400, 646.402, 646.648, 646.877, 696.800, 705.145, 801.020, 801.041, 801.042, 801.285, 801.310, 801.333, 801.397, 801.500, 801.526, 801.560, 801.565, 801.590, 802.110, 802.175, 802.200, 802.240, 803.030, 803.045, 803.090, 803.092, 803.094, 803.097, 803.100, 803.205, 803.210, 803.217, 803.305, 803.315, 803.415, 803.420, 803.430, 803.525, 803.585, 803.590, 803.600, 803.645, 803.660, 810.530, 815.190, 818.100, 820.520, 820.570, 822.005, 822.015, 822.025, 822.027, 822.033, 822.040, 822.042, 822.045, 822.046, 822.050, 822.070, 822.080, 822.105, 822.300, 822.310, 822.700, 822.705 and 826.013; repealing ORS 308.253, 308.890, 801.332, 820.500, 820.510, 820.525, 820.530, 820.540, 820.550, 820.560, 820.580, 820.585, 820.587, 820.589, 820.591, 820.593 and 822.075; appropriating money; limiting expenditures; and declaring an emergency.

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

TRANSFER

SECTION 1. (1) As used in this section, “manufactured structure” has the meaning given that term in section 8 of this 2003 Act.

(2) The duties, functions and powers of the Department of Transportation relating to manufactured structure dealers and dealerships, the titling and registration of manufactured structures and record keeping of manufactured structure interests and locations are imposed upon, transferred to and vested in the Department of Consumer and Business Services. This section does not transfer the authority of the Department of Transportation to regulate the issuance of variance permits under ORS 818.200 or the movement of manufactured structures on public highways.

RECORDS AND PROPERTY

SECTION 2. (1) The Director of Transportation shall deliver to the Department of Consumer and Business Services all records and property within the jurisdiction of the director that relate to the duties, functions and powers transferred by section 1 of this 2003 Act.

(2) Notwithstanding subsection (1) of this section, if records and property of the Department of Transportation relate to a business dealing in both manufactured structures and vehicles, the Department of Transportation may retain the original records and property and deliver copies of the records and property to the Department of Consumer and Business Services.

(3) The Governor shall resolve any dispute between the Department of Transportation and the Department of Consumer and Business Services relating to transfers of records and property under this section, and the Governor’s decision is final.

UNEXPENDED REVENUES

SECTION 3. (1) To the extent permitted by section 3a, Article IX of the Oregon Constitution, the unexpended balances of amounts authorized to be expended by the Department of Transportation for the biennium beginning July 1, 2003, from revenues dedicated, continuously appropriated, appropriated or otherwise made available for the purpose of administering and enforcing the duties, functions and powers transferred by section 1 of this 2003 Act are appropriated and transferred to and are available for expenditure by the Department of Consumer and Business Services for the biennium beginning July 1, 2003, for the purpose of administering and enforcing the duties, functions and powers transferred by section 1 of this 2003 Act.

(2) The expenditure classifications, if any, established by Acts authorizing or limiting expenditures by the Department of Transportation remain applicable to expenditures by the Department of Consumer and Business Services under this section.

ACTION, PROCEEDING, PROSECUTION

SECTION 4. The transfer of duties, functions and powers to the Department of Consumer and Business Services by section 1 of this 2003 Act does not affect any action, proceeding or prosecution involving or with respect to such duties, functions and powers begun before and pending at the time of the transfer, except that the Department of Consumer and Business Services is substituted for the Department of Transportation in the action, proceeding or prosecution.

LIABILITY, DUTY, OBLIGATION

SECTION 5. (1) Nothing in sections 1 to 7 of this 2003 Act relieves a person of a liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred by section 1 of this 2003 Act. The Department of Consumer and Business Services may undertake the collection or enforcement of any such liability, duty or obligation.

(2) The rights and obligations of the Department of Transportation legally incurred under contracts, leases and business transactions executed, entered into or begun before the operative date of section 1 of this 2003 Act accruing under or with respect to the duties, functions and powers transferred by section 1 of this 2003 Act are transferred to the Department of Consumer and Business Services. For the purpose of succession to these rights and obligations, the Department of Consumer and Business Services is a continuation of the Department of Transportation and not a new authority.

RULES

SECTION 6. Notwithstanding the transfer of duties, functions and powers by section 1 of this 2003 Act, the rules of the Department of Transportation with respect to such duties, functions or powers that are in effect on the operative date of section 1 of this 2003 Act continue in effect until superseded or repealed by rules of the Department of Consumer and Business Services. References in such rules of the Department of Transportation to the Department of Transportation or an officer or employee of the Department of Transportation are considered to be references to the Department of Consumer and Business Services or an officer or employee of the Department of Consumer and Business Services.

SECTION 7. Whenever, in any uncodified law or resolution of the Legislative Assembly or in any rule, document, record or proceeding authorized by the Legislative Assembly, in the context of the duties, functions and powers transferred by section 1 of this 2003 Act, reference is made to the Department of Transportation, or an officer or employee of the Department of Transportation, whose duties, functions or powers are transferred by section 1 of this 2003 Act, the reference is considered to be a reference to the Department of Consumer and Business Services or an officer or employee of the Department of Consumer and Business Services who by this 2003 Act is charged with carrying out such duties, functions and powers.

DEFINITION FOR SECTIONS 9 TO 23a

SECTION 8. As used in sections 9 to 23a of this 2003 Act:

(1) Except as provided in subsection (2) of this section, “manufactured structure” means:

(a) A manufactured dwelling. As used in this paragraph, “manufactured dwelling” has the meaning given that term in ORS 446.003 and also includes a structure that would meet the definition in ORS 446.003 except that the structure is being used for other than residential purposes.

(b) A prefabricated structure, as defined in ORS 455.010, that is relocatable and more than eight and one-half feet wide.

(c) A recreational vehicle, as defined in ORS 446.003, that is more than eight and one-half feet wide.

(2) “Manufactured structure” does not include a mobile modular unit as defined in ORS 308.866 or an implement of husbandry as defined in ORS 801.310.

OWNERSHIP DOCUMENT REQUIREMENT

SECTION 9. The following information must be recorded on an ownership document issued by the Department of Consumer and Business Services:

(1) All ownership interests in a manufactured structure sold in this state.

(2) A change in the location of a manufactured structure that has been sited in this state.

(3) The manufactured structure identification number as described by department rule.

(4) Any other information required by department rule.

EXEMPTION FROM

OWNERSHIP DOCUMENT REQUIREMENT

SECTION 10. (1) Notwithstanding sections 9 and 11 of this 2003 Act, the following manufactured structures do not require an ownership document and need not be recorded in county deed records:

(a) Manufactured structures owned by the United States Government.

(b) Manufactured structures held as inventory by the manufacturer or a licensed manufactured structure dealer.

(c) Manufactured structures exempted under section 20 (2) of this 2003 Act.

(2) Notwithstanding sections 9 and 11 of this 2003 Act, an ownership document is not required for a manufactured structure recorded in the county deed records as provided in section 21 of this 2003 Act.

OWNERSHIP DOCUMENTS

SECTION 11. (1)(a) Except as provided in paragraph (b) of this subsection, the owner of a manufactured structure shall apply to the Department of Consumer and Business Services for an ownership document. Upon receipt of an application in appropriate form as described in section 39 (2) of this 2003 Act, the Department of Consumer and Business Services shall issue an ownership document for a manufactured structure. Except as provided in ORS 308.875, a manufactured structure for which an ownership document is issued is subject to assessment and taxation as personal property under the ad valorem tax laws of this state.

(b)(A) For a new manufactured structure, except as provided in subparagraph (C) of this paragraph, the application must be filed on behalf of the owner by the manufactured structure dealer as provided in section 39 of this 2003 Act, by a lender or by an escrow agent as provided in section 14 of this 2003 Act.

(B) For a used manufactured structure, except as provided in subparagraph (C) of this paragraph, the owner must file the application with the county assessor for the county in which the manufactured structure is sited.

(C) If a dealer, lender or escrow agent refuses to file an application as required by subparagraph (A) of this paragraph, or if a county assessor refuses to accept an application in appropriate form as required by subparagraph (B) of this paragraph, the owner may file an application for an ownership document directly with the department.

(2) The department shall maintain ownership records on manufactured structures for which the department has issued ownership documents. The department shall maintain a record of ownership documents or other documents evidencing ownership that have been canceled.

(3) The department shall note all security interests in the manufactured structure on the ownership document and in the records maintained by the department pursuant to subsection (2) of this section. The recording of the security interests in the records maintained by the department is constructive notice of the interests.

(4) The department shall send the ownership document to the holder of the earliest perfected unreleased security interest in the manufactured structure or, if none, to the owner of the structure. The department shall also send a copy of the ownership document to the county assessor for the county in which the manufactured structure is being sited.

(5) If an interest in a manufactured structure other than an ownership interest is satisfied or assigned, the holder of the interest shall notify the department. If the holder of the satisfied interest is in possession of the ownership document for the structure, the holder shall return the ownership document to the department. The department shall adjust the ownership document and send the adjusted ownership document and copy as described in subsection (4) of this section.

SECTION 12. The Department of Consumer and Business Services shall adopt rules to provide for the transference of an ownership document for an abandoned manufactured structure to a landlord pursuant to ORS 90.425 or 90.675 and section 19 (2) of this 2003 Act.

ESCROW AGENT APPLICATION

FOR OWNERSHIP DOCUMENTS

SECTION 13. As used in sections 13 to 17 of this 2003 Act:

(1) “Holder or other person” means the manufactured structure owner or other person having an interest in the structure as indicated in the records of the Department of Consumer and Business Services.

(2) “Last-known address” means:

(a) The address of a holder or other person that is the intended recipient of a notice described in section 14 (4) of this 2003 Act as set forth in an ownership document, financing statement or other documentation;

(b) If the address for the intended recipient of the notice is not shown on a document or statement, the address of the intended recipient’s principal place of business; or

(c) If the address for the intended recipient of the notice is not shown on a document or statement and the intended recipient does not have a principal place of business, the address of the intended recipient’s residence.

SECTION 14. An ownership application, information described in section 39 of this 2003 Act or an ownership document or other document evidencing ownership and any release thereon under section 11, 19 or 23 of this 2003 Act does not need to be submitted to the Department of Consumer and Business Services as a condition for the department recording an ownership interest in a manufactured structure if all of the following conditions are met:

(1) The transaction involves the sale of a manufactured structure or the creation or transfer of a security interest in a manufactured structure and is processed by an escrow agent licensed in this state.

(2) Debt secured by a security interest in the manufactured structure has been or will be paid in full by the escrow agent as part of the agent’s processing of the transaction.

(3) The escrow agent sends the written notice, in the form described in section 15 of this 2003 Act, at least 30 days prior to the application for issuance of a replacement or original ownership document or for changes to an ownership document.

(4) The escrow agent mails a notice described in section 15 of this 2003 Act to the holder or other person that is responsible for furnishing the application information, ownership document, other document evidencing ownership, or release of interest, and mails a copy of the notice to any person who has perfected a security interest under ORS chapter 79 in the inventory of a dealer selling the structure.

(5) The escrow agent provides the Department of Consumer and Business Services with an application as provided by department rule for an ownership document. The application must be signed by the transferee, if any, and contain any information required by the department, including but not limited to the following information:

(a) A description of the manufactured structure, including the identification number as described by department rule.

(b) The name of the transferee, if any.

(c) A recital that the escrow agent did not receive the requested documents and did not receive a written objection from the holder or other person.

SECTION 15. The escrow agent shall send the notice under section 14 (4) of this 2003 Act by certified mail with return receipt requested and by first class mail, both with postage prepaid, to the last-known address of the holder or other person responsible for furnishing the documents and of any person having a perfected security interest. The notice must:

(1) Contain a description of the manufactured structure, including the year of manufacture, the make and the identification number as described by rule of the Department of Consumer and Business Services;

(2)(a) State that the debt or other obligation owed to the holder or other person has been paid and satisfied and specify the date and amount of the final payment; or

(b) State that at or prior to the time that the security interest or other interest of the holder or other person in the manufactured structure is terminated, the escrow agent will fully pay and satisfy the debt or other obligation owed to the holder or other person;

(3) State that, unless the escrow agent receives the appropriate documents within 30 days after the notice is received by the owner or other person responsible for providing or releasing the documents, an application for issuance of a replacement or original ownership document or for changes to an ownership document will be made to the Department of Consumer and Business Services as described in section 14 (5) of this 2003 Act; and

(4) State that, if the escrow agent receives from the holder or other person a written objection to provision or release of the requested documents, the escrow agent will not apply for the issuance or replacement of or changes to the ownership document unless the objection is withdrawn or the escrow agent receives the documents from the holder or other person.

SECTION 16. (1) The Department of Consumer and Business Services shall treat an application described in section 14 (5) of this 2003 Act:

(a) As an application for issuance of a replacement or original ownership document that reflects the sale of the manufactured structure or the creation or transfer of the security interest, or as an application to make other changes to an ownership document consistent with the transaction;

(b) As satisfactory proof that any previously issued ownership document for the manufactured structure is not available; and

(c) As a release of any perfected security interest in the manufactured structure by the holder or other person responsible for providing the application information, ownership document or other document evidencing ownership, or a release thereon.

(2) Upon receipt of an application described in section 14 (5) of this 2003 Act and the payment of appropriate fees, the department may issue a replacement or original ownership document for the manufactured structure, add or delete a security interest or make any other changes consistent with the transaction. The department shall send the ownership document to the holder of the earliest perfected unreleased security interest in the manufactured structure or, if none, to the owner. The department shall also send a copy of the ownership document to the county assessor for the county in which the manufactured structure is sited or being sited.

SECTION 17. (1) An escrow agent may not provide an application to the Department of Consumer and Business Services under section 14 (5) of this 2003 Act if the agent has received a written objection in response to the notice provided under section 15 of this 2003 Act.

(2) An escrow agent may charge the person owning the manufactured structure under the replacement ownership document a reasonable fee for services provided in compliance with sections 14 and 15 of this 2003 Act.

(3) In addition to any other remedy provided by law, a person may bring an action against an escrow agent for damages sustained by the person due to the negligence or willful misconduct of the escrow agent in complying with sections 14 and 15 of this 2003 Act.

PERFECTION OF SECURITY INTEREST

SECTION 18. (1)(a) Except as provided in paragraph (b) of this subsection, the exclusive means for perfecting a security interest in a manufactured structure that has an ownership document is by application for and notation of the security interest in the manufactured structure ownership document records of the Department of Consumer and Business Services. The application to have a security interest noted may be included as part of the application for issuance of an original ownership document. The department shall record the date of receipt of an application to have a security interest noted on the ownership document. The security interest is perfected as provided in ORS 79.0311 upon the department’s entering the security interest in the records maintained by the department under section 11 of this 2003 Act. The department shall note the interest on a new or updated ownership document and send the document as provided in section 11 of this 2003 Act. A security interest perfected under this section continues in effect until released by the holder of the interest.

(b) Paragraph (a) of this subsection does not apply if the debtor who granted the security interest is in the business of selling manufactured structures and the structure constitutes inventory held for sale or lease. The filing provisions of ORS 79.0501 to 79.0528 apply to security interests in manufactured structures described in this paragraph.

(2) The department shall issue or update an ownership document to reflect a security interest described in subsection (1)(a) of this section and note the interest in the manufactured structure ownership document records maintained by the department. The department shall deliver the ownership document to the holder of the earliest perfected unreleased security interest in the manufactured structure or, if none, to the owner of the structure. The department shall also send a copy of the ownership document to the county assessor for the county in which the manufactured structure is being sited.

(3) If the department cancels an ownership document because the manufactured structure is recorded in the deed records of a county, the department shall notify the county assessor of any unreleased security interest recorded in the department’s record for the manufactured structure. The county assessor shall record the security interest information for the structure in the deed records.

(4) If a manufactured structure is recorded in the deed records of a county prior to the recording of a security interest, the recording of a security interest in the county deed records satisfies the requirement in ORS 72A.3095 that the security interest be recorded as a mortgage on real estate and is effective as a financing statement perfecting the security interest in the structure as provided in ORS 79.0502 (3).

(5) If a manufactured structure ceases to be exempt from the ownership document requirement, upon recording the termination of the exemption in the deed records, the county assessor shall notify the department of any unreleased interest shown on the deed record for the manufactured structure. The department shall note the security interest information on the ownership document issued by the department.

RELEASE OF INTEREST

SECTION 19. (1) Except as otherwise provided in subsection (2) or (3) of this section, upon the transfer of any interest in a manufactured structure shown on an ownership document, each person whose interest is released, terminated, assigned or transferred shall acknowledge the release, termination, assignment or transfer of that interest in a manner specified by the Department of Consumer and Business Services by rule. The department shall design the rules adopted for purposes of this subsection to protect the interests of all parties to the transfer of interest.

(2) Notwithstanding subsection (1) of this section:

(a) In the case of a transfer of an interest by operation of law, the personal representative, receiver, trustee, sheriff, landlord or other representative or successor in interest of the person whose interest is transferred shall file the acknowledgment described in subsection (1) of this section. The representative or successor shall also provide the transferee with information satisfactory to the department concerning all facts entitling the representative or successor to transfer the interest. If there is no person to transfer the interest, the person to whom interest is awarded or otherwise transferred is responsible for providing the information concerning the person’s entitlement to the interest.

(b) In the case of a transfer at death of the interest of the owner or security interest holder of the manufactured structure, if the estate is not being probated and ownership is not being transferred under the provisions of ORS 114.545, an interest in the manufactured structure may be assigned through the use of an affidavit. The affidavit must be on a form prescribed by the department and signed by all of the known heirs of the person whose interest is being transferred, and shall state the name of the person to whom the ownership interest has been passed. If any heir has not arrived at the age of majority or is otherwise incapacitated, the parent or guardian of the heir shall sign the affidavit.

(c) In the case of a transfer at death of the interest of the owner or security interest holder where transfer occurs under ORS 114.545, the affiant, as defined in ORS 114.505, is the person required to assign interest.

(d) A security interest holder, without the consent of the owner, may assign interest of the holder in a manufactured structure to a person other than the owner without affecting the interest of the owner or the validity or priority of the interest. A person who is not given notice of the assignment is protected in dealing with the security interest holder as the holder of the interest until the assignee files notice of the interest with the department as provided in section 11 of this 2003 Act. This paragraph does not exempt an assignment of interest from the acknowledgment requirement under subsection (1) of this section.

(e) If an interest in a manufactured structure is transferred pursuant to an application under section 14 (5) of this 2003 Act, the recital by the escrow company that no written objections were received constitutes both a release, termination, assignment or transfer of interest and an acknowledgment by the person whose interest is released, terminated, assigned or transferred.

(3) Subsection (1) of this section does not apply to a transfer of a security interest where the security interest holder is a financial institution, a financial holding company or a bank holding company, as those terms are defined in ORS 706.008, a licensee under ORS chapter 725, or any subsidiary or affiliate of any of the foregoing and the transfer of the interest of the security interest holder:

(a) Results from the merger, conversion, reorganization, consolidation or acquisition of the security interest holder; or

(b) Is to an entity that is a member of the same affiliated group as the security holder.

TITLES AND REGISTRATIONS

SECTION 20. (1) A certificate of title for a manufactured structure issued by the Department of Transportation prior to the operative date of section 11 of this 2003 Act is effective as a document evidencing ownership of the manufactured structure. If the manufactured structure does not have a title pursuant to ORS 308.855 or 308.860 (1969 Replacement Part), a tax record showing that a person has paid the ad valorem tax assessment on the structure since 1972 is a document evidencing the person’s ownership of the structure.

(2) The owner of a manufactured structure described in subsection (1) of this section is not required to obtain an ownership document for the structure unless the structure is moved or sold. Except as provided in subsections (3) and (5) of this section, upon the moving or sale of a manufactured structure described in subsection (1) of this section, the owner shall submit the document evidencing ownership of the structure to the Department of Consumer and Business Services as provided in sections 22 and 23 of this 2003 Act. Upon receipt of the document, the department shall enter the information regarding the manufactured structure in the department’s records and issue an ownership document for the structure.

(3) If the owner of a manufactured structure has misplaced a certificate of title, the Department of Consumer and Business Services may require the person to provide proof sufficient to satisfy the department concerning any questions about the ownership of the manufactured structure or security interests in the structure. The proof required by the department may include, but is not limited to, completion of an affidavit that:

(a) Is in a form required by the department by rule;

(b) Contains any information the department requires by rule as necessary to establish ownership of the manufactured structure or to determine any security interests in the structure; and

(c) Is verified by the person making the affidavit.

(4) The Department of Consumer and Business Services is not liable to any person for issuing an ownership document based on proof provided under subsection (3) of this section.

(5) The movement or sale of a manufactured structure described in subsection (1) of this section does not require the owner to obtain an ownership document if:

(a) The move or sale will qualify the manufactured structure for recording in the deed records of a county under section 21 of this 2003 Act; and

(b) The person who will own the structure after the move or sale files an affidavit with the Department of Consumer and Business Services prior to the move or sale stating that the person will apply within 25 business days after completion of the move or sale to have the manufactured structure recorded in the county deed records.

(6) ORS 803.220 does not apply to a certificate of title for a manufactured structure issued by the Department of Transportation.

MANUFACTURED STRUCTURES

IN COUNTY DEED RECORDS

SECTION 21. (1) The owner of a manufactured structure that qualifies under this subsection may apply to the county assessor to have the structure recorded in the deed records of the county. The application must be on a form approved by the Department of Consumer and Business Services. The application must include a description of the location of the real property on which the manufactured structure is or will be sited. If the structure is being sold by a manufactured structure dealer, the dealer may file the application on behalf of the owner at the time the dealer notifies the county assessor of the sale under ORS 308.253. A manufactured structure qualifies for recording in the deed records if the owner of the structure:

(a) Also owns the land on which the manufactured structure is located; or

(b) Is the holder of a recorded leasehold estate of 20 years or more if the lease specifically permits the manufactured structure owner to record the structure under this section.

(2) If the assessor, as agent for the department, determines that the manufactured structure qualifies for recording in the deed records of the county, the assessor shall cause the structure to be recorded in the deed records. The deed records must contain any unreleased security interest in the manufactured structure. If the department has issued an ownership document for the manufactured structure, the owner must submit the ownership document to the assessor with the application described in subsection (1) of this section. Upon recording the manufactured structure in the deed records, the assessor shall send the ownership document to the department for cancellation. The department shall cancel the ownership document and send confirmation of the cancellation to the assessor and the owner.

(3) The recording of a security interest in the deed records of the county under this section satisfies the requirements for filing a financing statement for a fixture to real property under ORS 79.0502. The recording of a manufactured structure in the deed records of the county is independent of the assessment and taxation of the structure as real property under ORS 308.875. The recording of a manufactured structure in the deed records of the county makes the structure subject to the same provisions of law applicable to any other building, housing or structure on the land. However, the manufactured structure may not be sold separately from the land or leasehold estate unless the owner complies with subsection (4) of this section.

(4) The owner of a manufactured structure that is recorded in the deed records of the county may apply to have the structure removed from the deed records and an ownership document issued for the structure. Unless the manufactured structure is subject to section 22 of this 2003 Act, the owner must apply to the county assessor, as agent for the department, for an ownership document as provided in section 11 of this 2003 Act. Upon approval of the application, the assessor shall terminate the recording of the manufactured structure in the deed records.

(5) If a manufactured structure described in paragraph (1)(b) of this section is recorded in the deed records, the owner of the structure has a real property interest in the manufactured structure for purposes of:

(a) Recordation of documents pursuant to ORS 93.600 to 93.800, 93.802, 93.804, 93.806 and 93.808;

(b) Deed forms pursuant to ORS 93.850 to 93.870;

(c) Mortgages, trust deeds and other liens pursuant to ORS 86.010 to 86.996 and ORS chapters 87 and 88; and

(d) Real property tax collection pursuant to ORS chapters 311 and 312. The structure owner is considered the owner of the real property for purposes of assessing the structure under ORS 308.875.

MOVING MANUFACTURED STRUCTURE

SECTION 22. (1) A person may not move a manufactured structure to a different situs unless the Department of Consumer and Business Services approves the move and the county assessor issues a trip permit on behalf of the department. An application to move a manufactured structure must be filed in the manner and form required by department rule and include the following:

(a) The ownership document or, if an ownership document does not exist, another document acceptable to the department evidencing ownership of the structure or, if the structure is recorded in the deed records of the county, the property description for the current and proposed situs for the structure.

(b) The identity of the owner of the proposed situs or, if the proposed situs is a facility as defined in ORS 90.100, the name of the facility.

(c) Any other information required by the department by rule.

(2)(a) Except as provided in paragraph (b) of this subsection, the department may not approve an application to move a manufactured structure to a situs in another county unless all taxes and special assessments for the current year that will become a lien against the structure prior to the move as described in ORS 311.405 and all delinquent taxes and special assessments for past years are paid.

(b) A purchaser or landlord may obtain a trip permit from the county assessor without payment if the county cancels the taxes and assessments as provided in ORS 90.425 or 90.675.

(3) If the assessor cannot compute the exact amount of taxes due, the owner shall pay an amount based on the current assessed value of the manufactured structure or the value that would be used on the next assessment roll, or an amount based on the assessor’s best estimate of the total taxes and assessments. ORS 311.370 applies to taxes and assessments collected under this section.

(4) If the county assessor determines that all due or pending taxes and assessments have been paid, the assessor may issue a trip permit on behalf of the department and shall forward the application information to the department. The department shall update the department’s record for the manufactured structure and issue an updated ownership document for the structure indicating the change in information. If no ownership document exists for the manufactured structure, the department shall record the information for the structure and issue an ownership document.

(5) The department shall deliver an ownership document updated or issued under subsection (4) of this section to the holder of the earliest perfected unreleased security interest in the manufactured structure or, if none, to the owner of the structure. The department shall also send a copy of the ownership document to any other holders of unreleased security interests in the structure and to the county assessor for the county in which the structure is to be sited.

(6) The Department of Consumer and Business Services or a county may charge fees for services provided under this section. The fees charged pursuant to this subsection may not exceed the cost of the services provided.

(7) Subsections (1) to (6) of this section do not apply to the movement of a manufactured structure described under section 10 (1)(a) or (b) or 39 of this 2003 Act.

SECTION 22a. (1) For a new manufactured structure, the manufactured structure dealer must obtain the trip permit on behalf of the owner. If the dealer fails to obtain the trip permit prior to the scheduled moving date, the vehicle transporter must obtain the trip permit on behalf of the owner.

(2) For a used manufactured structure, the owner must obtain a trip permit from the county assessor for the county in which the manufactured structure is sited.

(3) Notwithstanding subsections (1) and (2) of this subsection, if a dealer or vehicle transporter refuses to obtain a trip permit as required by subsection (1) of this section, or if a county assessor refuses to issue a trip permit to an owner who has complied with section 22 of this 2003 Act, the owner may apply directly to the Department of Consumer and Business Services for a trip permit.

(4) The department may issue trip permits in bulk to a manufactured structure dealer or vehicle transporter.

RESALE OF MANUFACTURED STRUCTURE

SECTION 23. (1) If a person sells an ownership interest in a manufactured structure for which there is an ownership document issued under section 18 of this 2003 Act or a structure described in section 20 of this 2003 Act, the seller shall give notice of the sale to the county assessor for the county in which the structure is sited.

(2) The seller’s notice must be on a form approved by the Department of Consumer and Business Services. Information required by the form must include, but need not be limited to:

(a) The identities of the seller and the purchaser;

(b) Any change in the security interest in the structure resulting from the transaction; and

(c) For each holder of an unreleased security interest:

(A) A signed statement recorded on the ownership document for the manufactured structure acknowledging that the interest holder is aware of the sale; or

(B) Documentation satisfactory to the department showing that acknowledgement by the holder was requested but the holder has not responded.

(3) The seller shall submit with the notice the ownership document or other document evidencing ownership of the manufactured structure and a copy of the bill of sale.

(4) The county assessor shall forward the information contained in the notice and the ownership document or other document evidencing ownership to the department. The department shall update the ownership document for the manufactured structure or, if no ownership document exists, enter the information in the department’s records and issue an ownership document for the structure.

(6) A transfer of ownership of a manufactured structure by operation of law is a sale of the manufactured structure for purposes of this section.

(7) Notice given to a county assessor under subsection (1) of this section is not an instrument of conveyance.

(8) If a seller does not give a notice of sale to the county assessor within 30 days after closing of the sale of a manufactured structure, a buyer may submit a notice of sale to the assessor if the notice is accompanied by proof of sale acceptable to the department as provided by rule. Upon receipt of a notice of sale and acceptable proof of sale, the assessor shall forward the information to the department as provided in subsection (4) of this section. Submission of a notice of sale by a buyer does not excuse a seller from civil penalty under ORS 455.895 for a violation of subsection (1) of this section.

SECTION 23a. (1) The Department of Consumer and Business Services may adopt rules necessary for carrying out the duties, functions and powers of the department under sections 9 to 23a of this 2003 Act.

(2) Except as provided in subsection (4) of this section, the department shall adopt appropriate fees to cover the cost of services rendered under sections 9 to 23a of this 2003 Act by the department and by a county as agent for the department. The department may not vary the fee for issuance or renewal of an ownership document, or for removal of a manufactured structure from the ownership document system, based upon the applicant’s status as an owner, dealer or escrow agent.

(3) A county carrying out functions under sections 9 to 23a of this 2003 Act related to manufactured structure ownership documents and trip permits is an agent of the department with regard to those functions.

(4) Unless the department adopts a different fee pursuant to subsection (2) of this section, the fee amount:

(a) For issuance of an ownership document is $55.

(b) For issuance of a trip permit is $5.

DEFINITIONS FOR SECTIONS 25 TO 43

SECTION 24. As used in sections 25 to 43 of this 2003 Act:

(1) “Manufactured dwelling” has the meaning given that term in ORS 446.003; and

(2) “Manufactured structure” has the meaning given that term in section 8 of this 2003 Act.

DEPARTMENT OF

CONSUMER AND BUSINESS SERVICES

RULES/ENFORCEMENT

SECTION 25. The Department of Consumer and Business Services:

(1) Shall adopt reasonable rules for regulating manufactured structure dealers and dealerships and maintaining accurate records of manufactured structure ownership and location. The rules may include, but need not be limited to, rules governing the issuance, renewal, suspension, revocation or cancellation of licenses issued under sections 28 and 29 of this 2003 Act and for temporary or limited manufactured structure dealer licenses issued under section 29a or 29b of this 2003 Act, rules for placement of dealers on probation under section 38 of this 2003 Act, rules establishing standards of practice and conduct for manufactured structure dealers and rules for processing transfers of interests in manufactured structures.

(2) May inspect manufactured structure dealer records and manufactured structures in the possession of a dealer for purposes of administering and enforcing sections 25 to 43 of this 2003 Act and rules of the department.

(3) May examine an application for a manufactured structure dealer license and make an individual investigation relative to statements contained in the application.

(4) May adopt rules regulating manufactured dwelling salespersons, including but not limited to rules governing the ability to engage in the occupation of manufactured dwelling salesperson.

DEALER LICENSE REQUIREMENT

SECTION 26. (1) A person commits the crime of acting as a manufactured structure dealer without a license if the person does not have a valid, current manufactured structure dealer license issued under section 28 or 29 of this 2003 Act or a temporary or limited manufactured structure dealer license issued under section 29a or 29b of this 2003 Act and the person:

(a) Sells, brokers, trades or exchanges a manufactured structure, or offers to sell, trade or exchange a manufactured structure, either outright or by means of any conditional sale, consignment or otherwise;

(b) Displays a new or used manufactured structure for sale; or

(c) Acts as an agent for the owner of a manufactured structure to sell the structure or for a person interested in buying a manufactured structure to buy the structure.

(2) This section does not apply to persons or manufactured structures exempted from this section under section 27 of this 2003 Act.

(3) Acting as a manufactured structure dealer without a license is a Class A misdemeanor.

EXEMPTION FROM LICENSE REQUIREMENT

SECTION 27. Section 26 of this 2003 Act does not apply to the following manufactured structures or persons:

(1) A unit of government or a public or private utility.

(2) The owner of a manufactured structure, as shown by a document evidencing ownership issued by any jurisdiction if the person owned the manufactured structure for personal, family or household purposes. If the person sells, trades, displays or offers for sale, trade or exchange two or more manufactured structures during a calendar year, the person has the burden of proving that the person owned the structures primarily for personal, family or household purposes.

(3) A conservator, receiver, trustee, personal representative or public officer while performing any official duties. The exemption provided by this subsection applies to actions taken for the purposes of winding up the affairs of a manufactured structure dealer or dealership and not to the continuing operation of a dealership.

(4) A real estate licensee representing a buyer or seller in a transaction involving real property under ORS 308.875 or a manufactured structure that is recorded in the deed records of a county.

(5) An escrow agent making an application for an ownership document as described under section 14 (5) of this 2003 Act.

(6) The security interest holder of a manufactured structure as shown by a document evidencing ownership issued by any jurisdiction.

(7) The sale of a manufactured structure by the manufacturer to a manufactured structure dealer. However, a manufacturer must obtain a manufactured structure dealer license under section 28 of this 2003 Act in order to sell manufactured structures to retail customers.

(8) An insurance adjuster authorized to do business under ORS 744.505 or 744.515 who is disposing of a manufactured structure for salvage.

(9) A person who sells or trades or offers to sell or trade a manufactured structure that has been used in the operation of the person’s business unless the person’s business is the buying, selling, brokering, trading or exchanging of manufactured structures, displaying new or used manufactured structures for sale or acting as agent for an owner selling a manufactured structure or for a person interested in buying a manufactured structure.

(10) A person who is licensed as a manufactured structure dealer in another jurisdiction and is participating in a temporary exhibition of manufactured structures, if the exhibition includes at least two other manufactured structure dealers licensed in this state or another jurisdiction, lasts 10 days or less and charges admission to the public. An exemption may be claimed under this subsection for a total of not more than 10 days during a calendar year.

(11) A person who receives no money, goods or services, either directly or indirectly, for displaying a manufactured structure or acting as an agent in the selling or buying of a manufactured structure.

(12) A manufactured dwelling park or mobile home park owner that consigns a manufactured structure for sale by a licensed manufactured structure dealer.

(13) The sale of an abandoned manufactured dwelling by a manufactured dwelling park owner pursuant to ORS 90.675 (10) if the park owner makes a reasonable effort to transfer the title for the manufactured dwelling to the purchaser.

(14) A licensed real estate agent acting in the employ of, on behalf of or under the supervision of a person that is both a licensed real estate broker and a licensed manufactured structure dealer.

(15) A financial institution or trust company acting as attorney in fact under a duly executed power of attorney from the owner or purchaser authorizing the selling, leasing or exchanging of the owner’s or purchaser’s assets. As used in this subsection, “financial institution” and “trust company” have the meanings given those terms in ORS 706.008.

ISSUANCE OF DEALER LICENSE

SECTION 28. The Department of Consumer and Business Services shall issue a manufactured structure dealer license to a person if the person:

(1) Delivers to the department a bond or letter of credit that meets the requirements under section 33 of this 2003 Act;

(2) Pays the fee specified in section 32 of this 2003 Act for issuance of a manufactured structure dealer license; and

(3) Completes the application for a dealer license in a form approved by the department that includes:

(a) The name and residence address of the applicant. If the applicant is a firm or partnership, the application must include the names and residence addresses of the members of the applicant. If the applicant is a corporation, the application must include the names and residence addresses of the principal officers of the applicant and the name of the state in which the applicant is incorporated.

(b) The name under which the business will be conducted.

(c) The street address, including city and county in Oregon, where the business will be conducted.

(d) Whether used manufactured structures are handled.

(e) An affidavit from the applicant showing that the applicant will act as a manufactured structure dealer and will conduct business at the location given on the application.

(f) If the street address where the dealer will conduct the business is in a residential zone, a statement by the dealer that all manufactured structures sold or displayed at that address will meet any architectural and aesthetic standards regulating the placement of manufactured structures in that residential zone.

(g) Any information required by the department to efficiently regulate manufactured structures, manufactured structure dealers and dealerships or other relevant information required by the department.

(h) If the applicant will offer for sale new manufactured structures that are recreational vehicles greater than eight and one-half feet in width, an affidavit from the applicant stating that the applicant will maintain a recreational vehicle service facility for those recreational vehicles at a street address provided in the application.

SECTION 29. A manufactured structure dealer license is valid for three years, but the Department of Consumer and Business Services may adjust the term of an initial license for the purpose of establishing uniform expiration dates. A dealer may renew a license as provided by the department. The department may renew a license only if the dealer:

(1) Delivers to the department a bond or letter of credit that meets the requirements under section 33 of this 2003 Act.

(2) Pays the fee specified in section 32 of this 2003 Act for renewal of a manufactured structure dealer license.

(3) Submits a completed application for renewal in a form approved by the department that includes:

(a) The name and residence address of the dealer. If the dealer is a firm or partnership, the application must include the names and addresses of the members of the dealer. If the dealer is a corporation, the application must include the names and addresses of the principal officers of the dealer and the name of the state in which the dealer is incorporated.

(b) The name under which the business will be conducted.

(c) The street address, including city and county in Oregon, where the business will be conducted.

(d) If the location of the dealership is being changed at the time of renewal:

(A) For a business that will be conducted in a residential zone, a statement by the dealer that all manufactured structures sold or displayed at that address will meet any architectural and aesthetic standards regulating the placement of manufactured structures in that residential zone.

(B) For a business that will offer for sale new manufactured structures that are recreational vehicles greater than eight and one-half feet in width, a certificate from the applicant stating that the applicant will maintain a recreational vehicle service facility for those recreational vehicles at a street address provided in the application.

(e) Any information required by the department to efficiently regulate manufactured structure dealers and dealerships or other relevant information required by the department.

SECTION 29a. (1) If a licensed manufactured structure dealer dies or becomes incapacitated, the Department of Consumer and Business Services may issue a temporary manufactured structure dealer license to the executor, administrator or personal representative of the estate of the dealer or to an agent of the dealer approved by the department. A temporary license issued under this subsection expires after six months, but the department may extend the license for good cause. The department may not extend a temporary license if the license has been suspended or the licensee placed on probation by the department.

(2) A person issued a temporary manufactured structure dealer license must deliver to the department a bond or letter of credit that meets the requirements under section 33 of this 2003 Act. A bond or letter of credit covering a license term of less than one year must be for the sum otherwise required for each year a license is valid and must be renewed if the term is extended. The temporary manufactured structure dealer is responsible for ensuring that, during the term of the temporary license, the dealership and its employees comply with sections 25 to 43 of this 2003 Act and rules adopted thereunder. This subsection does not relieve a manufactured structure dealer licensed under section 28 or 29 of this 2003 Act from liability for a violation arising out of actions or omissions by the dealer.

(3) Notwithstanding section 36 of this 2003 Act:

(a) Issuance of a temporary manufactured structure dealer license does not, by itself, affect the rights or interests of any creditors of the dealer in dealership assets or inventory.

(b) Issuance or expiration of a temporary license is not a transfer of interest for purposes of section 39 of this 2003 Act.

(4) A person obtaining a temporary manufactured structure dealer license must pay the applicable fee specified in section 32 of this 2003 Act for issuance of a temporary manufactured structure dealer license.

LIMITED DEALER LICENSE

SECTION 29b. (1) A person who holds a limited manufactured structure dealer license issued under this section may sell during a calendar year up to 10 manufactured dwellings located at a manufactured dwelling park identified in the license. The manufactured dwellings sold under a limited manufactured structure dealer license must be dwellings that:

(a) Have been abandoned as described in ORS 90.675 at any manufactured dwelling park. If the manufactured dwelling is not subject to sale by the limited manufactured structure dealer under ORS 90.675 (10), the dealer must have the certificate of title or registration for the dwelling transferred to the dealer prior to offering the dwelling for sale; or

(b) Have been purchased by the park owner from a person holding title, and at the time of purchase by the park owner, were sited in the manufactured dwelling park identified in the license.

(2) Notwithstanding ORS 90.525, if a limited manufactured structure dealer sells a manufactured dwelling that was abandoned at a manufactured dwelling park other than the park where the dwelling is being sold, the sale terms for the manufactured dwelling must require that the dwelling is to be sited under a rental agreement at the park where sold for at least 12 months following the sale.

(3) Except as provided in section 38 of this 2003 Act, the Department of Consumer and Business Services shall issue a limited manufactured structure dealer license to a person if the person:

(a) Owns or operates a manufactured dwelling park as defined in ORS 446.003;

(b) Submits a completed application for a limited manufactured structure dealer license in a form approved by the department;

(c) Delivers to the department a bond or letter of credit that meets the requirements under section 33 of this 2003 Act, except that the bond or letter of credit must be in the sum of $15,000 for each year that the license is valid;

(d) Is 18 years of age or older or is legally emancipated; and

(e) Pays the fee specified in section 32 of this 2003 Act for issuance of a limited manufactured structure dealer license.

(4) If the person is a firm or partnership, the application for a limited manufactured structure dealer license must include the names and residence addresses of the members of the firm or partnership. If the person is a corporation, the application must include the names of the principal officers of the corporation and their residence addresses and the name of the state under whose laws the corporation is organized. If the person is the owner of a manufactured dwelling park, the person may submit a joint application on behalf of the person and a named park operator employed by the person. If the person is the operator of a manufactured dwelling park, the application must include the name and signature of the park owner.

(5) A limited manufactured structure dealer license is valid for use at a single manufactured dwelling park. The manufactured dwelling park location must be specified in the license application. A limited manufactured structure dealer may not employ a salesperson.

(6) A limited manufactured structure dealer license is valid for two years, but the department may adjust the term of an initial license for the purpose of establishing uniform expiration dates.

(7) Notwithstanding subsection (6) of this section, the limited manufactured structure dealer license for the person expires immediately if the person ceases to be an operator or owner of the manufactured dwelling park at which the license may be used. The owner of a manufactured dwelling park shall immediately notify the department if a person licensed under this section ceases to be an owner or operator of a manufactured dwelling park at which the license may be used.

(8) Notwithstanding subsections (6) and (7) of this section, if a licensed person ceases to be an operator of the manufactured dwelling park, the park owner may apply to have a corrected license issued to a new operator employed by the owner. A corrected license issued under this subsection is valid for the unexpired portion of the original license term. The department shall charge the fee specified in section 32 of this 2003 Act for issuing a corrected license.

(9) A limited manufactured structure dealer may renew a license as provided by the department. The department shall renew a license only if the dealer:

(a) Submits a completed application for renewal in a form approved by the department;

(b) Delivers to the department a bond or letter of credit that meets the requirements described in subsection (3) of this section; and

(c) Pays the fee specified in section 32 of this 2003 Act for renewal of a limited manufactured structure dealer license.

DEALER EDUCATION AND TESTING

SECTION 29c. (1) In addition to any other requirement for issuance or renewal of a manufactured structure dealer license, the Department of Consumer and Business Services, by rule, may adopt education and testing requirements as a condition for issuance or renewal of a license described in section 28 of this 2003 Act.

(2) A person may satisfy a requirement adopted under subsection (1) of this section by taking an appropriate educational program or test offered by an accredited educational institution, private school, correspondence school or nonprofit organization and approved by the department.

(3) If a dealer is a firm, partnership or corporation, the dealer satisfies a requirement adopted under subsection (1) of this section if a manager or other person exercising significant control over the daily sales activities of the dealership meets the education and testing requirements.

(4) The department may not require education or testing of a manufactured structure dealer if the dealer possesses a license issued under ORS chapter 696. This subsection does not prohibit voluntary participation in education and testing.

SECTION 30. (1) A licensed manufactured structure dealer may open additional places of business under the same business name by obtaining a supplemental license from the Department of Consumer and Business Services. If the dealer will operate the additional place of business under a different business name than that indicated on an existing dealer license, the dealer must apply for a dealer license for the additional place of business instead of for a supplemental license.

(2) A manufactured structure dealer may move a place of business or change a business name by obtaining a corrected dealer license from the department. The department shall prescribe the form for application for a corrected license. For purposes of this subsection, “place of business” includes a recreational vehicle service facility.

(3) The department may refuse to issue a dealer license if a manufactured structure dealer license issued to the dealer by another jurisdiction is in suspended, revoked or probationary status in that jurisdiction. This subsection does not authorize the department to refuse a supplemental license or corrected license.

(4) A dealer obtaining or renewing a dealer license, supplemental license or corrected license must pay the applicable fee specified in section 32 of this 2003 Act.

NOTE: Section 31 was deleted by amendment. Subsequent sections were not renumbered.

LICENSE FEES

SECTION 32. (1) The fee for issuance or renewal of a manufactured structure dealer license under section 28 of this 2003 Act is $542.

(2) The fee for issuance or renewal of a supplemental license under section 30 of this 2003 Act is $90 for each additional place of business.

(3) The fee for issuance or renewal of a corrected dealer license under section 30 of this 2003 Act or corrected limited manufactured structure dealer license under section 29b of this 2003 Act is $30.

(4) The fee for issuance of a temporary manufactured structure dealer license under section 29a of this 2003 Act is $100.

(5) The fee for issuance or renewal of a limited manufactured structure dealer license under section 29b of this 2003 Act is $150.

(6) Fees adopted pursuant to this section are not subject to proration or refund.

(7) Fees collected by the department under this section must be deposited in the Consumer and Business Services Fund. Moneys deposited into the fund pursuant to this section are continuously appropriated to the department for use as provided in ORS 446.423.

DEALER BONDING/LETTER OF CREDIT

SECTION 33. (1) A bond or letter of credit required to qualify for issuance or renewal of a manufactured structure dealer license under section 28 or 29 of this 2003 Act or a temporary manufactured structure dealer license under section 29a of this 2003 Act must comply with the following requirements:

(a) The bond must have a corporate surety licensed to do business within this state. A letter of credit must be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008.

(b) The bond or letter of credit must:

(A) Be executed to the State of Oregon;

(B) Be in the sum of $35,000 for each year the license is valid;

(C) Be in a form approved by the Attorney General;

(D) Be conditioned that the dealer will conduct the manufactured structure dealership without fraud or fraudulent representation and without violating any statute or rule relating to manufactured structure dealers, manufactured structure dealerships, transfers of interests in manufactured structures, alteration of manufactured structures or moving manufactured structures;

(E) Be separate from any bond or letter of credit covering business activities other than dealing in manufactured structures; and

(F) Be filed and held in the office of the Department of Consumer and Business Services.

(2) The surety or institution shall notify the department if the bond or letter of credit is canceled for any reason. The surety or institution continues to be liable under the bond or letter of credit until the department receives the notice required by this subsection, or until the cancellation date specified in the notice, whichever is later.

(3) If the license of a manufactured structure dealer is not renewed or is voluntarily or involuntarily canceled, the surety on the bond and the issuer of the letter of credit are relieved from liability that accrues after the department cancels the license.

(4) The manufactured structure dealer shall purchase a bond or letter of credit under this section annually on or before each anniversary of the issuance of the dealer’s license.

(5) A person has a right of action against a manufactured structure dealer, against the surety on the dealer’s bond and the issuer of a letter of credit if the person suffers any loss or damage by reason of the manufactured structure dealer’s fraud, fraudulent representations or violations of statutes relating to:

(a) Transfer of interests in manufactured structures;

(b) Moving manufactured structures;

(c) The alteration of manufactured structures; or

(d) The regulation of manufactured structure dealers and manufactured structure dealerships.

(6) Notwithstanding subsection (5) of this section, the maximum amount available under a bond or letter of credit described in this section for the payment of claims by persons other than retail customers of the dealer is $20,000.

SECTION 34. Section 33 of this 2003 Act is amended to read:

Sec. 33. (1) A bond or letter of credit required to qualify for issuance or renewal of a manufactured structure dealer license under section 28 or 29 of this 2003 Act or a temporary manufactured structure dealer license under section 29a of this 2003 Act must comply with the following requirements:

(b) The bond or letter of credit must:

(A) Be executed to the State of Oregon;

(B) Be in the sum of [$35,000] $40,000 for each year the license is valid;

(E) Be separate from any bond or letter of credit covering business activities other than dealing in manufactured structures; and

(F) Be filed and held in the office of the Department of Consumer and Business Services.

(4) The manufactured structure dealer shall purchase a bond or letter of credit under this section annually on or before each anniversary of the issuance of the dealer’s license.

(a) Transfer of interests in manufactured structures;

(b) Moving manufactured structures;

(d) The regulation of manufactured structure dealers and manufactured structure dealerships.

SECTION 35. The amendments to section 33 of this 2003 Act by section 34 of this 2003 Act become operative on October 1, 2004.

EFFECT OF DEALER LICENSE

SECTION 36. A person who has a current, valid manufactured structure dealer license issued under section 28 or 29 of this 2003 Act or a temporary manufactured structure dealer license under section 29a of this 2003 Act:

(1) Is considered the owner of manufactured structures manufactured or dealt in by the dealer before sale and delivery of the manufactured structures, and the owner of all manufactured structures in the dealer’s possession.

(2) Is not subject to the recreational vehicle dealer requirements in ORS chapter 822 when dealing in manufactured structures that are recreational vehicles greater than eight and one-half feet in width.

DEALER CRIMINAL OFFENSES

SECTION 37. (1) A manufactured structure dealer improperly operates a manufactured structure dealership and is subject to the penalties under this section if the dealer commits any of the following crimes:

(a) A manufactured structure dealer commits the crime of failure to obtain a supplemental license if the dealer has a manufactured structure dealer license and opens any additional place of business using the same business name without first obtaining a supplemental license under section 30 of this 2003 Act.

(b) A manufactured structure dealer commits the crime of failure to obtain a corrected dealer license if the dealer moves a place of business or changes the business name without first obtaining a corrected dealer license under section 30 of this 2003 Act.

(c) A manufactured structure dealer commits the crime of failure to maintain proper manufactured structure dealer records if the dealer does not keep records or books with all of the following information concerning a used manufactured structure the dealer handles:

(A) A record of the purchase, sale or exchange or of the dealer’s receipt for purpose of sale.

(B) A description of the manufactured structure.

(C) The name and address of the seller, the purchaser and the alleged owner or other person from whom the manufactured structure was purchased or received or to whom it was sold or delivered.

(D) A duly assigned ownership document or other document evidencing ownership or a bill of sale from the registered owner of the manufactured structure from the time of delivery to the dealer until the dealer disposes of the manufactured structure.

(d) A manufactured structure dealer commits the crime of failure to allow administrative inspection if the dealer refuses to allow the Department of Consumer and Business Services to inspect the dealer’s records and manufactured structures in the possession of the dealer at any time during normal business hours.

(e) A manufactured structure dealer commits the crime of failure to allow police inspection if the dealer refuses to allow a police officer to conduct an inspection of the dealer’s records and manufactured structures in the possession of the dealer at any time during normal business hours.

(f) A manufactured structure dealer commits the crime of failure to exhibit the manufactured structure dealer license if the dealer fails to exhibit the license at the place of business of the dealer at all times while the license is in force. This paragraph does not apply to dealer activity at a temporary exhibition of manufactured structures.

(g) A manufactured structure dealer commits the crime of failure to satisfy an interest in a manufactured structure if, within 15 days after transfer of any interest in a manufactured structure to the dealer by a person other than another manufactured structure dealer, or within 15 days after receiving the ownership document for a manufactured structure obtained from another manufactured structure dealer, the dealer fails to satisfy:

(A) The interest of any person from whom the dealer purchased or obtained the manufactured structure;

(B) The interest of any person from whom the person described in subparagraph (A) of this paragraph leased the manufactured structure; and

(C) All security interests in the manufactured structure entered into prior to the time of transfer.

(h) Except as provided in subsection (2) of this section, a manufactured structure dealer commits the crime of failure to report an interest transfer for a manufactured structure if, 90 calendar days after a transfer of interest that is subject to section 39 of this 2003 Act, the dealer has failed to submit:

(A) An application to the Department of Consumer and Business Services for an ownership document; or

(B) Sufficient information to a lender to allow the lender to make an application to the department for an ownership document.

(i) A person commits the crime of acting as a manufactured structure dealer while under suspension, revocation or cancellation if the person conducts business as a manufactured structure dealer in this state and the person’s manufactured structure dealer license is revoked, canceled or suspended, regardless of whether the person is licensed as a manufactured structure dealer in another jurisdiction.

(j) A manufactured structure dealer commits the crime of failure to maintain bond or letter of credit coverage if the dealer permits a bond or letter of credit to lapse during the period that the bond or letter of credit is required under section 28, 29 or 29a of this 2003 Act or if the dealer fails to purchase a bond or letter of credit that complies with section 33 of this 2003 Act.

(2) A dealer is not considered to have committed the crime described in subsection (1)(h) of this section if the dealer demonstrates that:

(a) The dealer has made a good faith effort to comply; and

(b) The dealer’s failure to make an application or provide information is due to circumstances beyond the dealer’s control.

(3) The crimes described in this section are subject to the following penalties:

(a) The crime described in subsection (1)(a) of this section, failure to obtain a supplemental license, is a Class A misdemeanor.

(b) The crime described in subsection (1)(b) of this section, failure to obtain a corrected dealer license, is a Class A misdemeanor.

(c) The crime described in subsection (1)(c) of this section, failure to maintain proper manufactured structure dealer records, is a Class A misdemeanor.

(d) The crime described in subsection (1)(d) of this section, failure to allow administrative inspection, is a Class A misdemeanor.

(e) The crime described in subsection (1)(e) of this section, failure to allow police inspection, is a Class A misdemeanor.

(f) The crime described in subsection (1)(f) of this section, failure to exhibit the manufactured structure dealer license, is a Class A misdemeanor.

(g) The crime described in subsection (1)(g) of this section, failure to satisfy an interest in a manufactured structure, is a Class A misdemeanor.

(h) The crime described in subsection (1)(h) of this section, failure to report an interest transfer for a manufactured structure, is a Class A misdemeanor.

(i) The crime described in subsection (1)(i) of this section, acting as a manufactured structure dealer while under suspension, revocation or cancellation, is a Class A misdemeanor.

(j) The crime described in subsection (1)(j) of this section, failure to maintain bond or letter of credit coverage, is a Class A misdemeanor.

DISCIPLINE OF LICENSEES;

LICENSE CANCELLATION

SECTION 38. (1) The Department of Consumer and Business Services may revoke or suspend a manufactured structure dealer license, or place a dealer on probation, if the dealer does any of the following:

(a) Violates any grounds for suspension, revocation or probation adopted by the department by rule.

(b) Fails to comply with the requirements for notices or reports of the transfer of interest in manufactured structures.

(c) Moves a manufactured structure or causes a manufactured structure to be moved without complying with the requirements for variance permits under ORS 818.200 and trip permits under section 22 of this 2003 Act.

(d) Knowingly provides false information on an application for a dealer license, supplemental license or corrected dealer license.

(e) Deals in a manufactured structure that both before and after the sale is assessed as real property under ORS 308.875 or is recorded in the deed records of a county. This paragraph does not apply if an ownership document is issued for the manufactured structure prior to sale.

(f) Employs a person in an administrative or managerial capacity while the person is disqualified under subsection (5) of this section.

(2) The department shall cancel a manufactured structure dealer license immediately upon receipt of legal notice that the bond described under section 33 of this 2003 Act is canceled.

(3) Upon suspension, revocation or cancellation of a manufactured structure dealer license under this section, the department shall demand the return of the license.

(4) The department shall cancel a dealer license or supplemental license immediately upon receipt of notice that zoning approval for a place of business has been revoked.

(5) If the department revokes a manufactured structure dealer license pursuant to subsection (1) of this section, the department shall disqualify the person whose license is revoked from obtaining any type of license as a manufactured structure dealer and from working in an administrative or managerial capacity for any type of manufactured structure dealer, for a period of not more than five years after the date the revocation becomes effective. If the person applies for licensing as a manufactured structure dealer following a period of disqualification under this subsection, the person must meet the requirements for issuance of an initial manufactured structure dealer license.

DEALER REPORTING OF

INTEREST TRANSFER

SECTION 39. (1) Except as provided in subsection (7) of this section, a manufactured structure dealer who transfers an interest in a manufactured structure shall:

(a) Submit to the Department of Consumer and Business Services an application for an ownership document on behalf of the purchaser; or

(b) If the purchase is being financed, submit sufficient information to a lender to allow the lender to make an application to the department for an ownership document.

(2) An application under subsection (1) of this section must be on a form approved by the department and include:

(a) The year, make, style and identification number for the manufactured structure.

(b) Any existing ownership document for the structure or, if none, the manufacturer’s certificate of origin or other document evidencing ownership of the manufactured structure.

(c) The legal description or street address for the proposed situs for the manufactured structure.

(d) The identity of the owner of record for the location where the manufactured structure is being sited or, if the structure is being sited in a facility as defined in ORS 90.100, the name of the facility.

(e) The name and mailing address of each person acquiring an ownership interest in the manufactured structure.

(f) The name and mailing address of each person acquiring a security interest in the manufactured structure.

(g) Any other information required by the department by rule for processing an application.

(3) If a manufactured structure dealer is unable to comply with subsection (1) of this section, within 25 business days of the transfer the dealer shall provide a notice of delay to the security interest holder next named, if any, and the purchaser. The notice must contain:

(a) The reason for the delay;

(b) The anticipated extent of the delay; and

(c) A statement of the rights and remedies available to the purchaser if the delay becomes unreasonably extended.

(4) A manufactured structure dealer that fails to comply with this section is subject to revocation or suspension of the dealer’s license or being placed on probation by the Department of Consumer and Business Services pursuant to section 38 of this 2003 Act. A dealer that fails to comply with subsection (1) of this section within 90 days is subject to criminal penalties under section 37 (1)(h) of this 2003 Act.

(5) Notwithstanding subsections (1) and (4) of this section, if a purchaser is not in compliance with the payment terms of a purchase agreement on the 20th calendar day after the transfer, the dealer is not required to perform under subsection (1) of this section until 25 calendar days after the purchaser is in compliance with the payment terms of the purchase agreement. This subsection does not excuse the duty of the dealer under subsection (3) of this section.

(6) This section does not apply to a transfer of interest in a manufactured structure that is subject to an escrow transaction.

(7) This section does not apply to a manufactured structure for which an application is filed under section 21 of this 2003 Act within 25 business days of the transfer.

CONSIGNMENT SALES

SECTION 40. (1) A manufactured structure dealer commits the crime of engaging in illegal consignment practices if the dealer does any of the following:

(a) Takes a manufactured structure on consignment from a person who is not a licensed dealer and does not have proof that the consignor is the owner of, or a security interest holder in, the structure.

(b) Takes a manufactured structure on consignment from a security interest holder without the security interest holder first completing a repossession action prior to consigning the structure and providing the dealer with proper documentary proof of the repossession action.

(c) Takes a manufactured structure on consignment and does not have the terms of the consignment agreement in writing and provide a copy of the agreement to the consignor, unless the consignor is a security interest holder described in paragraph (b) of this subsection. The agreement must include a provision stating that, if the terms of the agreement are not met, the consignor may file a complaint in writing with the Department of Consumer and Business Services, Salem, Oregon.

(d) Sells a manufactured structure that the dealer has on consignment and does not pay the consignor within 10 days after the sale.

(e) Refuses to allow the department or any duly authorized representative to inspect and audit any records of any separate accounts into which the dealer deposits any funds received or handled by the dealer in the course of business as a dealer from consignment sales of manufactured structures at such times as the department may direct.

(f) Takes any money paid to the dealer in connection with any consignment transaction as part or all of the dealer’s commission or fee until the transaction has been completed or terminated.

(g) Does not make arrangement with the seller for the disposition of money from a consignment transaction at the time of establishing a consignment agreement.

(h) Sells a manufactured structure that the dealer has taken on consignment without first giving the purchaser the following disclosure in writing:

____________________________________________________________________________

DISCLOSURE REGARDING

CONSIGNMENT SALE

___________ (Name of Dealer) is selling the following described manufactured structure: ________ (Year) ________ (Make) ________ (Model) ________ (Identification Number) on consignment. Ownership of this manufactured structure is in the name of: ___________ (Owner(s) as shown on the ownership document) and the following are listed on the ownership document as security interest holders:

____________________________________________________________________________

YOU SHOULD TAKE ACTION TO ENSURE THAT ANY SECURITY INTERESTS ARE RELEASED AND THAT THE OWNERSHIP DOCUMENT FOR THE MANUFACTURED STRUCTURE IS TRANSFERRED TO YOU. OTHERWISE, YOU MAY TAKE OWNERSHIP SUBJECT TO ANY UNSATISFIED SECURITY INTERESTS.

____________________________________________________________________________

(2) Engaging in illegal consignment practices is a Class A misdemeanor.

SECTION 41. (1) A person commits the crime of violation of a consigned manufactured structure transfer if the person consigns a manufactured structure to a manufactured structure dealer and the person fails or refuses to deliver the ownership document for the structure to the dealer or purchaser upon sale of the structure under consignment.

(2) Violation of a consigned manufactured structure transfer is a Class A misdemeanor.

CIVIL ACTION AGAINST

UNLICENSED DEALER

SECTION 42. The Department of Consumer and Business Services may petition a circuit court for an injunction or other relief against a person dealing in manufactured structures in violation of section 26 of this 2003 Act. If the court grants the petition, the court shall award reasonable costs and disbursements and attorney and enforcement fees.

NOTICE OF PROCEEDINGS AGAINST

ALLEGED UNLICENSED DEALER

SECTION 43. (1) If the Department of Consumer and Business Services proceeds under ORS 455.895 or section 42 of this 2003 Act, the department may post a notice on any manufactured structure held in inventory by a person alleged to be acting as a manufactured structure dealer without a license. The notice must state that the person offering the manufactured structure for sale is currently the subject of a proceeding to determine whether the person has a manufactured structure dealer license and that it may be unlawful for the person to sell the manufactured structure to a retail customer.

(2) A person may remove a notice posted in accordance with subsection (1) of this section only upon authorization by the department. The department shall authorize removal within 10 days after any one of the following occurs:

(a) The dismissal or termination of the proceeding instituted under ORS 455.895 or section 42 of this 2003 Act;

(b) Full payment of any lawfully owing civil penalty and compliance with sections 25 to 43 of this 2003 Act; or

(c) A finding by the department or a court that the manufactured structure is being offered for sale by a licensed manufactured structure dealer or a person who is exempt from the licensing requirement under section 27 of this 2003 Act.

NOTE: Sections 44 through 46 were deleted by amendment. Subsequent sections were not renumbered.

CERTIFICATE CONTINUATION

SECTION 47. (1) Notwithstanding section 26 of this 2003 Act, a manufactured structure dealer who holds a certificate issued by the Department of Transportation pursuant to ORS 822.020 or 822.040 prior to the operative date of section 1 of this 2003 Act may continue to conduct business under authority of that certificate until the certificate expires or January 1, 2006, whichever occurs first. A dealer described in this section is subject to regulation by the Department of Consumer and Business Services in the same manner as a dealer conducting business under a license issued under section 28 or 29 of this 2003 Act.

(2) Except as otherwise provided in this subsection, a dealer holding a certificate described in subsection (1) of this section may obtain a manufactured structure dealer license from the Department of Consumer and Business Services by complying with the requirements of section 29 of this 2003 Act for renewal of a license.

DEFINITION FOR PURPOSES

OF CERTAIN TAX LAWS

SECTION 47a. As used in ORS 305.288, “manufactured structure” has the meaning given that term in section 8 of this 2003 Act.

SECTION 47b. As used in ORS chapters 306, 308, 310 and 311, “manufactured structure” has the meaning given that term in section 8 of this 2003 Act.

CIVIL PENALTIES

SECTION 47c. (1) The Department of Consumer and Business Services may impose a civil penalty as provided in ORS 455.895 for each violation, against a licensed manufactured structure dealer or against a person required by a rule adopted pursuant to section 25 of this 2003 Act to be licensed, if the dealer or person violates a provision of sections 25 to 43 of this 2003 Act or a rule adopted by the department relating to the sale of manufactured structures. If the dealer authorizes a person licensed pursuant to section 25 of this 2003 Act to commit a violation, the dealer and person are both subject to civil penalty. Notwithstanding subsection (2) of this section, if a dealer expressly or by implication authorizes an act by a real estate agent described in section 27 (14) of this 2003 Act that is a violation, the dealer is subject to the civil penalty for the violation.

(2) The department may impose a civil penalty, in an amount not to exceed $5,000 for each manufactured structure improperly sold, brokered or exchanged, or offered or displayed for sale, against a person that:

(a) Violates a provision of sections 25 to 43 of this 2003 Act or a rule adopted by the department relating to the sale of manufactured structures if the person does not possess a license required by section 26 of this 2003 Act or by rule pursuant to section 25 of this 2003 Act; or

(b) Violates a rule adopted by the department relating to the sale of manufactured structures if the person is exempt from licensing under section 27 of this 2003 Act.

AMENDMENTS TO

OREGON REVISED STATUTES

SECTION 48. ORS 59.840 is amended to read:

59.840. As used in ORS 59.840 to 59.980:

(1) “Director” means the Director of the Department of Consumer and Business Services.

(2) “Fraud,” “deceit” and “defraud” are not limited to common-law deceit.

(3) “License” means a license issued to a mortgage banker or mortgage broker under ORS 59.840 to 59.980.

(4)(a) “Loan originator” means an individual employed by or purporting to act as an agent or independent contractor for a mortgage banker or mortgage broker that is required to be licensed under ORS 59.840 to 59.980, with the expectation by the individual of compensation or gain that is determined by the amount borrowed or the terms and conditions agreed to by the mortgage loan borrower, and having primary job responsibilities that include negotiating with a borrower or potential borrower for the purpose of establishing the terms and conditions of a mortgage loan.

(b) “Loan originator” includes a person employed at a location outside this state whose primary job responsibilities include contacting or attempting to contact a borrower or potential borrower within this state through any medium or mode of communication for purposes of providing a mortgage loan within this state.

(c) “Loan originator” does not include an individual whose responsibilities are clerical or administrative functions, including but not limited to gathering information, requesting information, word processing, soliciting general interest in mortgage loans, sending correspondence and assembling files.

(d) “Loan originator” does not include an employee of a mortgage banker that is rated as good or better under the federal rating system in effect on May 1, 2001, for seller-servicers of Federal Housing Administration, Federal Home Loan Mortgage Corporation or Federal National Mortgage Association loans and that has an office within this state at which the mortgage banker maintains complete and current copies of all employment records and other records as required by the Director of the Department of Consumer and Business Services by order or rule, in a format acceptable to the director.

(e) “Loan originator” does not include an insurance agent or insurance consultant licensed under ORS 744.002.

(f) “Loan originator” does not include a person or group of persons exempted by rule or order of the director.

(5) “Mortgage banker”:

(a) Means any person who for compensation or in the expectation of compensation:

(A) Either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan; and

(B) Services or sells a mortgage banking loan.

(b) Does not include:

(A) A financial institution, as defined in ORS 706.008.

(B) A financial holding company or a bank holding company, as defined in ORS 706.008, holding an institution described in subparagraph (A) of this paragraph; a savings and loan holding company as defined in section 408 of the National Housing Act, 12 U.S.C. 1730a (1982), holding an association described in subparagraph (A) of this paragraph; the subsidiaries and affiliates of the financial holding company, bank holding company or savings and loan holding company; or subsidiaries and affiliates of institutions described in subparagraph (A) of this paragraph, provided that the appropriate statutory regulatory authority is exercising control over or is regulating or supervising the persons listed in this subparagraph in their mortgage banking activities in accordance with the purposes of ORS 59.840 to 59.980.

(C) A person who makes a loan secured by an interest in real estate with the person’s own moneys, for the person’s own investment and who is not engaged in the business of making loans secured by an interest in real estate.

(D) An attorney licensed in this state who negotiates mortgage banking loans or mortgage loans in the ordinary course of business, unless the business of negotiating mortgage banking loans or mortgage loans constitutes substantially all of the attorney’s professional activity.

(E) A person who, as seller of real property, receives one or more mortgages or deeds of trust as security for a separate money obligation.

(F) An agency of any state or of the United States.

(G) A person who receives a mortgage or deed of trust on real property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in the improvement of that real property or any lien created without the consent of the owner of the real property.

(H) A person who funds a mortgage banking loan or mortgage loan which has been originated and processed by a licensee or by an exempt person and who does not maintain a place of business in this state in connection with funding mortgage banking loans or mortgage loans, does not directly or indirectly solicit borrowers in this state for the purpose of making mortgage banking loans or mortgage loans and does not participate in the negotiation of mortgage banking loans or mortgage loans. For the purpose of this subparagraph, “negotiation of mortgage banking loans or mortgage loans” does not include setting the terms under which a person may buy or fund a mortgage banking loan or a mortgage loan originated by a licensee or exempt person.

(I) A nonprofit federally tax exempt corporation certified by the United States Small Business Administration and organized to promote economic development within this state whose primary activity consists of providing financing for business expansion.

(J) A licensee licensed under ORS chapter 725 or a mortgage broker.

(K) A retirement or pension fund.

(L) An insurer as defined in ORS 731.106.

(M) A court appointed fiduciary.

(N) Any other person designated by rule or order of the director.

(6) “Mortgage banking loan” means a loan, extension of credit or a retail sales contract that is funded exclusively from the mortgage banker’s own resources, which is directly or indirectly secured by a mortgage or deed of trust or any lien interest on real estate and which is created with the consent of the owner of the real property. For purposes of this subsection, “own resources” means any of the following:

(a) Cash, corporate capital, warehouse credit lines at financial institutions defined in ORS 706.008 or other sources that are liability items of the mortgage banker’s financial statements for which its assets are pledged;

(b) Correspondent contracts between the mortgage banker and a bank, savings bank, trust company, savings and loan association, credit union, profit sharing or pension trust, a licensee under ORS chapter 725 or an insurance company; or

(c) The mortgage banker’s affiliates’ cash, corporate capital, warehouse credit lines at financial institutions defined in ORS 706.008 or other sources that are liability items on the affiliates’ financial statements for which the affiliates’ assets are pledged. As used in this paragraph, “affiliates” means entities that, directly or indirectly, through one or more intermediaries controls, are controlled by or are under common control with the entity specified.

(7) “Mortgage broker”:

(a) Means a person who:

(A) Engages all or part of the time, for the account of others or for the person’s own account, in the business of selling real estate paper whether as issuer, agent or principal to persons other than persons enumerated in ORS 59.035 (4);

(B) Engages all or part of the time, for the account of others or for the person’s own account, in the business of accepting funds from one or more persons other than persons enumerated in ORS 59.035 (4) for investment in real estate paper; or

(C) For compensation, or in the expectation of compensation, either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan.

(b) Does not include:

(A) A financial institution, as defined in ORS 706.008.

(B) A financial holding company or a bank holding company, as defined in ORS 706.008, holding an institution described in subparagraph (A) of this paragraph; a savings and loan holding company as defined in section 408 of the National Housing Act, 12 U.S.C. 1730a (1982), holding an association described in subparagraph (A) of this paragraph; the subsidiaries and affiliates of the financial holding company, bank holding company or savings and loan holding company; or subsidiaries and affiliates of institutions described in subparagraph (A) of this paragraph, provided that the appropriate statutory regulatory authority is exercising control over or is regulating or supervising the persons listed in this subparagraph in their mortgage brokering activities in accordance with the purposes of ORS 59.840 to 59.980.

(C) A person who purchases real property and issues an obligation to finance the transaction to the seller incidentally to the sale.

(D) A real estate licensee as defined in ORS 696.010 who performs services solely incidental to the practice of professional real estate activity as defined in ORS 696.010, unless the real estate licensee performs the functions of a mortgage banker or a mortgage broker as defined in this section.

(E) A person licensed under the provisions of ORS chapter 725 or a mortgage banker.

(F) A person who makes a loan secured by an interest in real estate with the person’s own moneys, for the person’s own investment and who is not engaged in the business of making loans secured by an interest in real estate.

(G) An attorney licensed in this state who negotiates mortgage loans in the ordinary course of business, unless the business of negotiating mortgage loans constitutes substantially all of the attorney’s professional activity.

(H) A person who, as seller of real property, receives one or more mortgages or deeds of trust as security for a separate money obligation.

(I) An agency of any state or of the United States.

(J) A person who receives a mortgage or deed of trust on real property as security for an obligation payable on an installment or deferred payment basis and arising out of materials furnished or services rendered in the improvement of that real property or any lien created without the consent of the owner of the real property.

(K) A person who funds a mortgage loan which has been originated and processed by a licensee or by an exempt person and who does not maintain a place of business in this state in connection with funding mortgage loans, does not directly or indirectly solicit borrowers in this state for the purpose of making mortgage loans and does not participate in the negotiation of mortgage loans. For the purpose of this subparagraph, “negotiation of mortgage loans” does not include setting the terms under which a person may buy or fund a mortgage loan originated by a licensee or exempt person.

(L) A nonprofit federally tax exempt corporation certified by the United States Small Business Administration and organized to promote economic development within this state whose primary activity consists of providing financing for business expansion.

(M) A person licensed under [ORS 822.020] section 28 or 29 of this 2003 Act or a temporary manufactured structure dealer licensee under section 29a of this 2003 Act who provides services customarily associated with the retail sales of manufactured dwellings, including communication of generally available information regarding mortgage loans, unless:

(i) The person receives from a purchaser a fee or commission as a mortgage broker or mortgage banker that is disclosed in the sales contract, purchase agreement or applicable federal documents;

(ii) For the benefit of a potential purchaser, the person completes a loan application form or other document that is part of a mortgage banking loan and completes a good faith estimate under the federal Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.);

(iii) The person solicits or receives credit information from a prospective purchaser for the purpose of making credit decisions; or

(iv) The person negotiates with a potential purchaser the terms of a mortgage loan including but not limited to points, interest rates, length of loan or other loan conditions.

(N) Any other person designated by rule or order of the director.

(8) “Mortgage loan” means a loan, extension of credit or retail sales contract, other than a mortgage banking loan, secured by a mortgage or deed of trust or any lien interest on real estate that is created with the consent of the owner of the real estate.

(9) “Residential mortgage transaction” means a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained in property upon which four or fewer residential dwelling units are planned or situated, including but not limited to individual units or condominiums and cooperatives. As used in this subsection, “residential dwelling unit” means an improvement designed for residential occupancy.

SECTION 49. ORS 79.0102 is amended to read:

79.0102. (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,” 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. The term 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 (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) “Account debtor” means a person obligated on an account, chattel paper or general intangible. 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

(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

(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.

(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.

(k) “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. 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

(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:

(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;

(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) “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. 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

(cc) “Deposit account” means a demand, time, savings, passbook or similar account maintained with a bank. 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;

(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) “Fixtures” means goods that have become so related to particular real property that an interest in them arises under real property law. 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. 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) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.

(rr) “Goods” means all things that are movable when a security interest attaches. The term includes (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 [homes] structures. 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. 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.

(ss) “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.

(tt) “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.

(uu) “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. 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.

(vv) “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;

(D) Consist of raw materials, work in process, or materials used or consumed in a business.

(ww) “Investment property” means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account.

(xx) “Jurisdiction of organization,” with respect to a registered organization, means the jurisdiction under whose law the organization is organized.

(yy) “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. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.

(zz) “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;

(D) A receiver in equity from the time of appointment.

[(aaa) “Manufactured home” means a structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning and electrical systems contained therein. The term includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.]

(aaa) “Manufactured structure” has the meaning given that term in section 8 of this 2003 Act.

(bbb) “[Manufactured-home] Manufactured-structure transaction” means a secured transaction:

(A) That creates a purchase-money security interest in a manufactured [home] structure, other than a manufactured [home] structure held as inventory; or

(B) In which a manufactured [home] structure, other than a manufactured [home] structure held as inventory, is the primary collateral.

(ccc) “Mortgage” means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.

(ddd) “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.

(eee) “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. The term does not include an obligation substituted for another obligation.

(fff) “Noncash proceeds” means proceeds other than cash proceeds.

(ggg) “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. The term does not include issuers or nominated persons under a letter of credit.

(hhh) “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).

(iii) “Payment intangible” means a general intangible under which the account debtor’s principal obligation is a monetary obligation.

(jjj) “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;

(D) Any other relative, by blood or marriage, of the individual or the individual’s spouse who shares the same home with the individual.

(kkk) “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.

(LLL) “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;

(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.

(mmm) “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.

(nnn) “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.

(ooo) “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.

(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.

(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.

(rrr) “Registered organization” means an organization 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.

(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.

(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;

(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.

(uuu) “Security agreement” means an agreement that creates or provides for a security interest.

(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

(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.

(www) “Software” means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.

(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.

(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.

(zzz) “Tangible chattel paper” means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.

(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.

(bbbb) “Transmitting utility” means a person primarily engaged in the business of:

(A) Operating a railroad, subway, street railway or trolley bus;

(B) Transmitting communications electrically, electromagnetically or by light;

(D) Transmitting or producing and transmitting electricity, steam, gas or water.

(2) The following definitions in other sections apply to this chapter:

“Applicant” ORS 75.1020

“Beneficiary” ORS 75.1020

“Broker” ORS 78.1020

“Certificated security” ORS 78.1020

“Check” ORS 73.0104

“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

“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

“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 intermediary” ORS 78.1020

“Security” ORS 78.1020

“Security certificate” ORS 78.1020

“Security entitlement” ORS 78.1020

“Uncertificated security” ORS 78.1020

(3) ORS chapter 71 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

SECTION 50. ORS 79.0311 is amended to read:

79.0311. (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; [or]

(c) A certificate-of-title statute of another jurisdiction which provides for a security interest 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 property; or

(d) Section 18 (1) of this 2003 Act.

(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, [and] 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.

(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 51. ORS 79.0313 is amended to read:

79.0313. (1) Except as otherwise provided in subsection (2) of this section, a secured party may perfect a security interest in negotiable documents, goods, instruments, money or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under ORS 78.3010.

(2) With respect to goods that are covered by a certificate of title issued by this state or that are manufactured structures, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in ORS 79.0316 (5).

(3) With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business, when:

(a) The person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured party’s benefit; or

(b) The person takes possession of the collateral after having authenticated a record acknowledging that it will hold possession of collateral for the secured party’s benefit.

(4) If perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs no earlier than the time the secured party takes possession and continues only while the secured party retains possession.

(5) A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under ORS 78.3010 and remains perfected by delivery until the debtor obtains possession of the security certificate.

(6) A person in possession of collateral is not required to acknowledge that it holds possession for a secured party’s benefit.

(7) If a person acknowledges that it holds possession for the secured party’s benefit:

(a) The acknowledgment is effective under subsection (3) of this section or ORS 78.3010 (1), even if the acknowledgment violates the rights of a debtor; and

(b) Unless the person otherwise agrees or law other than this chapter otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.

(8) A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business if the person was instructed before the delivery or is instructed contemporaneously with the delivery:

(a) To hold possession of the collateral for the secured party’s benefit; or

(b) To redeliver the collateral to the secured party.

(9) A secured party does not relinquish possession, even if a delivery under subsection (8) of this section violates the rights of a debtor. A person to which collateral is delivered under subsection (8) of this section does not owe any duty to the secured party and is not required to confirm the delivery to another person unless the person otherwise agrees or law other than this chapter otherwise provides.

SECTION 52. ORS 79.0316 is amended to read:

79.0316. (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, [and] 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

(4) Except as otherwise provided in subsection (5) of this section, a security interest in goods covered by a certificate of title [which] 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 [from] 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:

(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 [from] 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.

SECTION 53. ORS 79.0334 is amended to read:

79.0334. (1) A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land.

(2) This chapter does not prevent creation of an encumbrance upon fixtures under real property law.

(3) In cases not governed by subsections (4) to (8) of this section, a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.

(4) Except as otherwise provided in subsection (8) of this section, a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:

(a) The security interest is a purchase-money security interest;

(b) The interest of the encumbrancer or owner arises before the goods become fixtures; and

(c) The security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.

(5) A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(a) The debtor has an interest of record in the real property or is in possession of the real property and the security interest:

(A) Is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and

(B) Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;

(b) Before the goods become fixtures, the security interest is perfected by any method permitted by this chapter and the fixtures are readily removable:

(A) Factory or office machines;

(B) Equipment that is not primarily used or leased for use in the operation of the real property; or

(c) The conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this chapter; or

(d) The security interest is:

(A) Created in a manufactured [home] structure in a [manufactured-home] manufactured-structure transaction; and

(B) Perfected pursuant to [a statute described in ORS 79.0311 (1)(b)] section 18 of this 2003 Act or by recording in a county deed record as provided in section 21 of this 2003 Act.

(6) A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(a) The encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or

(b) The debtor has a right to remove the goods as against the encumbrancer or owner.

(7) The priority of the security interest under subsection (6)(b) of this section continues for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer or owner terminates.

(8) A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (5) and (6) of this section, a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.

(9) A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.

SECTION 54. ORS 79.0335 is amended to read:

79.0335. (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 section 18 or 21 of this 2003 Act.

(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 section 18 or 21 of this 2003 Act 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 55. ORS 79.0337 is amended to read:

79.0337. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title [that] or manufactured structure ownership document or records a manufactured structure in a county deed record and the certificate, document or record does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate, document or record:

(1) A buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate of title or manufactured structure ownership document or recording in the deed record and without knowledge of the security interest; and

(2) The security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under ORS 79.0311 (2) or section 18 or 21 of this 2003 Act, after issuance of the certificate of title or manufactured structure ownership document or recording in the deed record and without the conflicting secured party’s knowledge of the security interest.

SECTION 56. ORS 79.0515 is amended to read:

79.0515. (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 [or manufactured-home 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 [or manufactured-home 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 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 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) Not less than three months or more than six months before the expiration of any financing statement, effective financing statement as defined in ORS 80.100 or continuation thereof, the Secretary of State shall mail a renewal notice to the secured party or assignee of record, if any, at the address indicated on the financing statement, effective financing statement, assignment thereof or amendment thereto. The renewal notice shall include:

(a) The file number and expiration date of the financing statement or effective financing statement;

(b) The name of the debtor; and

(c) A statement that the financing statement or effective financing statement may be continued by filing a continuation statement or initial financing statement under section 191 or 192, chapter 445, Oregon Laws 2001.

SECTION 57. ORS 90.425 is amended to read:

90.425. (1) As used in this section:

(a) “Current market value” means the amount in cash, as determined by the county assessor, that could reasonably be expected to be paid for a manufactured dwelling or floating home by an informed buyer to an informed seller, each acting without compulsion in an arm’s length transaction occurring on the assessment date for the tax year or on the date of a subsequent reappraisal by the county assessor.

(b) “Dispose of the personal property” means that, if reasonably appropriate, the landlord may throw away the property or may give it without consideration to a nonprofit organization or to a person unrelated to the landlord. The landlord may not retain the property for personal use or benefit.

(c) “Goods” includes those goods left inside a recreational vehicle, manufactured dwelling or floating home or left upon the rental space outside a recreational vehicle, manufactured dwelling or floating home, whether the recreational vehicle, dwelling or home is located inside or outside of a facility.

(d) “Lienholder” means any lienholder of an abandoned recreational vehicle, manufactured dwelling or floating home, if the lien is of record or the lienholder is actually known to the landlord.

(e) “Of record” means:

(A) For a [manufactured dwelling or] recreational vehicle that is not a manufactured structure as defined in section 8 of this 2003 Act, that a security interest has been properly recorded with the Department of Transportation pursuant to ORS 802.200 (1)(a)(A) and 803.097 [for a dwelling or vehicle registered and titled by the department pursuant to ORS 820.500].

(B) For a manufactured dwelling or recreational vehicle that is a manufactured structure as defined in section 8 of this 2003 Act, that a security interest has been properly recorded for the manufactured dwelling or recreational vehicle in the records of the Department of Consumer and Business Services pursuant to section 18 of this 2003 Act or on a certificate of title issued by the Department of Transportation prior to July 1, 2004.

[(B)] (C) For a floating home, that a security interest has been properly recorded with the State Marine Board pursuant to ORS 830.740 to 830.755 for a home registered and titled with the board pursuant to ORS 830.715.

(f) “Owner” means any owner of an abandoned recreational vehicle, manufactured dwelling or floating home, if different from the tenant and either of record or actually known to the landlord.

(g) “Personal property” means goods, vehicles and recreational vehicles and includes manufactured dwellings and floating homes not located in a facility. “Personal property” does not include manufactured dwellings and floating homes located in a facility and therefore subject to being stored, sold or disposed of as provided under ORS 90.675.

(2) A landlord may not store, sell or dispose of abandoned personal property except as provided by this section. This section governs the rights and obligations of landlords, tenants and any lienholders or owners in any personal property abandoned or left upon the premises by the tenant or any lienholder or owner in the following circumstances:

(a) The tenancy has ended by termination or expiration of a rental agreement or by relinquishment or abandonment of the premises and the landlord reasonably believes under all the circumstances that the tenant has left the personal property upon the premises with no intention of asserting any further claim to the premises or to the personal property;

(b) The tenant has been absent from the premises continuously for seven days after termination of a tenancy by a court order that has not been executed; or

(3) Prior to selling or disposing of the tenant’s personal property under this section, the landlord must give a written notice to the tenant that [shall] must be:

(a) Personally delivered to the tenant; or

(b) Sent by first class mail addressed and mailed to the tenant at:

(A) The premises;

(B) Any post-office box held by the tenant and actually known to the landlord; and

(4)(a) In addition to the notice required by subsection (3) of this section, in the case of an abandoned recreational vehicle, manufactured dwelling or floating home, a landlord shall also give a copy of the notice described in subsection (3) of this section to:

(A) Any lienholder of the recreational vehicle, manufactured dwelling or floating home;

(B) Any owner of the recreational vehicle, manufactured dwelling or floating home;

(D) The assessor of the county where the manufactured dwelling or floating home is located.

(b) The landlord shall give the notice copy required by this subsection by personal delivery or first class mail, except that for any lienholder, mail service [shall] must be both by first class mail and by certified mail with return receipt requested.

(A) Actually known to the landlord;

(B) Of record; and

(C) Provided to the landlord by the lienholder in a written notice that identifies the personal property subject to the lien and that was sent to the landlord by certified mail with return receipt requested within the preceding five years. The notice must identify the personal property by describing the physical address of the property.

(5) The notice required under subsection (3) of this section [shall] must state that:

(a) The personal property left upon the premises is considered abandoned;

(b) The tenant or any lienholder or owner must contact the landlord by a specified date, as provided in subsection (6) of this section, to arrange for the removal of the abandoned personal property;

(c) The personal property is stored at a place of safekeeping, except that if the property includes a manufactured dwelling or floating home, the dwelling or home [shall] must be stored on the rented space;

(d) The tenant or any lienholder or owner, except as provided by subsection (17) of this section, may arrange for removal of the personal property by contacting the landlord at a described telephone number or address on or before the specified date;

(e) The landlord shall make the personal property available for removal by the tenant or any lienholder or owner, except as provided by subsection (17) of this section, by appointment at reasonable times;

(f) If the personal property is considered to be abandoned pursuant to subsection (2)(a) or (b) of this section, the landlord may require payment of removal and storage charges, as provided by subsection (7)(d) of this section, prior to releasing the personal property to the tenant or any lienholder or owner;

(g) If the personal property is considered to be abandoned pursuant to subsection (2)(c) of this section, the landlord may not require payment of storage charges prior to releasing the personal property;

(h) If the tenant or any lienholder or owner fails to contact the landlord by the specified date, or after that contact, fails to remove the personal property within 30 days for recreational vehicles, manufactured dwellings and floating homes or 15 days for all other personal property, the landlord may sell or dispose of the personal property. If the landlord reasonably believes that the personal property will be eligible for disposal pursuant to subsection (10)(b) of this section and the landlord intends to dispose of the property if [it] the property is not claimed, the notice shall state that belief and intent; and

(i) If the personal property includes a recreational vehicle, manufactured dwelling or floating home and if applicable, there is a lienholder or owner that has a right to claim the recreational vehicle, dwelling or home, except as provided by subsection (17) of this section.

(6) For purposes of subsection (5) of this section, the specified date by which a tenant, lienholder or owner must contact a landlord to arrange for the disposition of abandoned personal property [shall be] is:

(a) For abandoned recreational vehicles, manufactured dwellings or floating homes, not less than 45 days after personal delivery or mailing of the notice; or

(b) For all other abandoned personal property, not less than five days after personal delivery or eight days after mailing of the notice.

(7) After notifying the tenant as required by subsection (3) of this section, the landlord:

(a) Shall store any abandoned manufactured dwelling or floating home on the rented space and shall exercise reasonable care for the dwelling or home;

(b) Shall store all other abandoned personal property of the tenant, including goods left inside a recreational vehicle, manufactured dwelling or floating home or left upon the rented space outside a recreational vehicle, dwelling or home, in a place of safekeeping and shall exercise reasonable care for the personal property, except that the landlord may:

(A) Promptly dispose of rotting food; and

(B) Allow an animal control agency to remove any abandoned pets or livestock. If an animal control agency will not remove the abandoned pets or livestock, the landlord shall exercise reasonable care for the animals given all the circumstances, including the type and condition of the animals, and may give the animals to an agency that is willing and able to care for the animals, such as a humane society or similar organization;

(c) Except for manufactured dwellings and floating homes, may store the abandoned personal property at the dwelling unit, move and store it elsewhere on the premises or move and store it at a commercial storage company or other place of safekeeping; and

(d) Is entitled to reasonable or actual storage charges and costs incidental to storage or disposal, including any cost of removal to a place of storage. In the case of an abandoned manufactured dwelling or floating home, the storage charge [shall] may be no greater than the monthly space rent last payable by the tenant.

(8) If a tenant, lienholder or owner, upon the receipt of the notice provided by subsection (3) or (4) of this section or otherwise, responds by actual notice to the landlord on or before the specified date in the landlord’s notice that the tenant, lienholder or owner intends to remove the personal property from the premises or from the place of safekeeping, the landlord must make that personal property available for removal by the tenant, lienholder or owner by appointment at reasonable times during the next 15 days or, in the case of a recreational vehicle, manufactured dwelling or floating home, 30 days, subject to subsection (17) of this section. If the personal property is considered to be abandoned pursuant to subsection (2)(a) or (b) of this section, but not pursuant to subsection (2)(c) of this section, the landlord may require payment of removal and storage charges, as provided in subsection (7)(d) of this section, prior to allowing the tenant, lienholder or owner to remove the personal property. Acceptance by a landlord of such payment does not operate to create or reinstate a tenancy or create a waiver pursuant to ORS 90.415.

(9) Except as provided in subsections (17) to (19) of this section, if the tenant, lienholder or owner of a recreational vehicle, manufactured dwelling or floating home does not respond within the time provided by the landlord’s notice, or the tenant, lienholder or owner does not remove the personal property within the time required by subsection (8) of this section or by any date agreed to with the landlord, whichever is later, the tenant’s, lienholder’s or owner’s personal property is conclusively presumed to be abandoned. The tenant and any lienholder or owner that have been given notice pursuant to subsection (3) or (4) of this section shall, except with regard to the distribution of sale proceeds pursuant to subsection (12) of this section, have no further right, title or interest to the personal property and may not claim or sell the property.

(10) If the personal property is presumed to be abandoned under subsection (9) of this section, the landlord then may:

(a) Sell the personal property at a public or private sale, provided that prior to the sale of a recreational vehicle, manufactured dwelling or floating home:

(A) The landlord may seek to transfer [the certificate of title and registration to] ownership of record of the personal property by complying with the requirements of the appropriate state agency; and

(B) The landlord shall:

(i) Place a notice in a newspaper of general circulation in the county in which the recreational vehicle, manufactured dwelling or floating home is located. The notice shall state:

(I) That the recreational vehicle, manufactured dwelling or floating home is abandoned;

(II) The tenant’s and owner’s name, if of record or actually known to the landlord;

(III) The address and any space number where the recreational vehicle, manufactured dwelling or floating home is located, and [if actually known to the landlord, the] any plate, registration or other identification number [as] for a recreational vehicle or floating home noted on the certificate of title, if actually known to the landlord;

(IV) Whether the sale is by private bidding or public auction;

(V) Whether the landlord is accepting sealed bids and, if so, the last date on which bids will be accepted; and

(VI) The name and telephone number of the person to contact to inspect the recreational vehicle, manufactured dwelling or floating home;

(ii) At a reasonable time prior to the sale, give a copy of the notice required by sub-subparagraph (i) of this subparagraph to the tenant and to any lienholder and owner, by personal delivery or first class mail, except that for any lienholder, mail service [shall] must be by first class mail with certificate of mailing;

(iii) Obtain an affidavit of publication from the newspaper to show that the notice required under sub-subparagraph (i) of this subparagraph ran in the newspaper at least one day in each of two consecutive weeks prior to the date scheduled for the sale or the last date bids will be accepted; and

(iv) Obtain written proof from the county that all property taxes and assessments on the manufactured dwelling or floating home have been paid or, if not paid, that the county has authorized the sale, with the sale proceeds to be distributed pursuant to subsection (12) of this section;

(b) Destroy or otherwise dispose of the personal property if the landlord determines that:

(A) For a manufactured dwelling or floating home, the current market value of the property is $8,000 or less as determined by the county assessor; or

(B) For all other personal property, the reasonable current fair market value is $500 or less or so low that the cost of storage and conducting a public sale probably exceeds the amount that would be realized from the sale; or

(c) Consistent with paragraphs (a) and (b) of this subsection, sell certain items and destroy or otherwise dispose of the remaining personal property.

(11)(a) A public or private sale authorized by this section [shall] must:

(A) For a recreational vehicle, manufactured dwelling or floating home, be conducted consistent with the terms listed in subsection (10)(a)(B)(i) of this section. Every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable; or

(B) For all other personal property, be conducted under the provisions of ORS 79.0610.

(b) If there is no buyer at a sale of a manufactured dwelling or floating home, the personal property is considered to be worth $8,000 or less, regardless of current market value, and the landlord shall destroy or otherwise dispose of the personal property.

(12)(a) The landlord may deduct from the proceeds of the sale:

(A) The reasonable or actual cost of notice, storage and sale; and

(B) Unpaid rent.

(b) If the sale was of a manufactured dwelling or floating home, after deducting the amounts listed in paragraph (a) of this subsection, the landlord shall remit the remaining proceeds, if any, to the county tax collector to the extent of any unpaid property taxes and assessments owed on the dwelling or home.

(c) If the sale was of a recreational vehicle, manufactured dwelling or floating home, after deducting the amounts listed in paragraphs (a) and (b) of this subsection, if applicable, the landlord shall remit the remaining proceeds, if any, to any lienholder to the extent of any unpaid balance owed on the lien on the recreational vehicle, dwelling or home.

(d) After deducting the amounts listed in paragraphs (a), (b) and (c) of this subsection, if applicable, the landlord shall remit to the tenant or owner the remaining proceeds, if any, together with an itemized accounting.

(e) If the tenant or owner cannot after due diligence be found, the landlord shall deposit the remaining proceeds [shall be deposited] with the county treasurer of the county in which the sale occurred.[, and] If not claimed within three years [shall], the deposited proceeds revert to the general fund of the county and are available for general purposes.

(13) The county tax collector shall cancel all unpaid property taxes and assessments owed on a manufactured dwelling or floating home, as provided under ORS 311.790, only under one of the following circumstances [described in paragraph (a), (b), (c) or (d) of this subsection]:

(a) The landlord disposes of the manufactured dwelling or floating home after a determination described in subsection (10)(b) of this section.

(b) There is no buyer of the manufactured dwelling or floating home at a sale described under subsection (11) of this section.

(c)(A) There is a buyer of the manufactured dwelling or floating home at a sale described under subsection (11) of this section;

(B) The current market value of the manufactured dwelling or floating home is $8,000 or less; and

(C) The proceeds of the sale are insufficient to satisfy the unpaid property taxes and assessments owed on the dwelling or home after distribution of the proceeds pursuant to subsection (12) of this section.

(d)(A) The landlord buys the manufactured dwelling or floating home at a sale described under subsection (11) of this section;

(B) The current market value of the manufactured dwelling or floating home is more than $8,000;

(C) The proceeds of the sale are insufficient to satisfy the unpaid property taxes and assessments owed on the manufactured dwelling or floating home after distribution of the proceeds pursuant to subsection (12) of this section; and

(D) The landlord disposes of the manufactured dwelling or floating home.

(14) The landlord is not responsible for any loss to the tenant, lienholder or owner resulting from storage of personal property in compliance with this section unless the loss was caused by the landlord’s deliberate or negligent act. In the event of a deliberate and malicious violation, the landlord is liable for twice the actual damages sustained by the tenant, lienholder or owner.

(15) Complete compliance in good faith with this section shall constitute a complete defense in any action brought by a tenant, lienholder or owner against a landlord for loss or damage to such personal property disposed of pursuant to this section.

(16) If a landlord does not comply with this section:

(a) The tenant is relieved of any liability for damage to the premises caused by conduct that was not deliberate, intentional or grossly negligent and for unpaid rent and may recover from the landlord up to twice the actual damages sustained by the tenant;

(b) A lienholder or owner aggrieved by the noncompliance may recover from the landlord the actual damages sustained by the lienholder or owner. ORS 90.255 does not authorize an award of attorney fees to the prevailing party in any action arising under this paragraph; and

(c) A county tax collector aggrieved by the noncompliance may recover from the landlord the actual damages sustained by the tax collector, if the noncompliance is part of an effort by the landlord to defraud the tax collector. ORS 90.255 does not authorize an award of attorney fees to the prevailing party in any action arising under this paragraph.

(17) In the case of an abandoned recreational vehicle, manufactured dwelling or floating home, the provisions of this section regarding the rights and responsibilities of a tenant to the abandoned vehicle, dwelling or home [shall] also apply to any lienholder except that the lienholder may not sell or remove the vehicle, dwelling or home unless:

(a) The lienholder has foreclosed its lien on the recreational vehicle, manufactured dwelling or floating home;

(b) The tenant or a personal representative or designated person described in subsection (19) of this section has waived all rights under this section pursuant to subsection (23) of this section; or

(18)(a) In the case of an abandoned manufactured dwelling or floating home but not including a dwelling or home abandoned following a termination pursuant to ORS 90.429 and except as provided by subsection (19)(d) and (e) of this section, if a lienholder makes a timely response to a notice of abandoned personal property pursuant to subsections (6) and (8) of this section and so requests, a landlord shall enter into a written storage agreement with the lienholder providing that the dwelling or home may not be sold or disposed of by the landlord for up to 12 months. A storage agreement entitles the lienholder to store the personal property on the previously rented space during the term of the agreement, but does not entitle anyone to occupy the personal property.

(b) The lienholder’s right to a storage agreement arises upon the failure of the tenant, owner or, in the case of a deceased tenant, the personal representative, designated person, heir or devisee to remove or sell the dwelling or home within the allotted time.

(c) To exercise the right to a storage agreement under this subsection, in addition to contacting the landlord with a timely response as described in paragraph (a) of this subsection, the lienholder must enter into the proposed storage agreement within 60 days after the landlord gives a copy of the agreement to the lienholder. The landlord shall give a copy of the proposed storage agreement to the lienholder in the same manner as provided by subsection (4)(b) of this section. The landlord may include a copy of the proposed storage agreement with the notice of abandoned property required by subsection (4) of this section. A lienholder enters into a storage agreement by signing a copy of the agreement provided by the landlord and personally delivering or mailing the signed copy to the landlord within the 60-day period.

(d) The storage agreement may require, in addition to other provisions agreed to by the landlord and the lienholder, that:

(A) The lienholder make timely periodic payment of all storage charges, as described in subsection (7)(d) of this section, accruing from the commencement of the 45-day period described in subsection (6) of this section. A storage charge may include a utility or service charge, as described in ORS 90.510 (8), if limited to charges for electricity, water, sewer service and natural gas and if incidental to the storage of personal property. A storage charge may not be due more frequently than monthly;

(B) The lienholder pay a late charge or fee for failure to pay a storage charge by the date required in the agreement, if the amount of the late charge is no greater than for late charges described in the rental agreement between the landlord and the tenant; and

(C) The lienholder maintain the personal property and the space on which the personal property is stored in a manner consistent with the rights and obligations described in the rental agreement between the landlord and the tenant.

(e) During the term of an agreement described under this subsection, the lienholder [shall have] has the right to remove or sell the property, subject to the provisions of [its] the lien. Selling the property includes a sale to a purchaser who wishes to leave the dwelling or home on the rented space and become a tenant, subject to any conditions previously agreed to by the landlord and tenant regarding the landlord’s approval of a purchaser or, if there was no such agreement, any reasonable conditions by the landlord regarding approval of any purchaser who wishes to leave the dwelling or home on the rented space and become a tenant. The landlord also may condition approval for occupancy of any purchaser of the property upon payment of all unpaid storage charges and maintenance costs.

(f)(A) If the lienholder violates the storage agreement, the landlord may terminate the agreement by giving at least 90 days’ written notice to the lienholder stating facts sufficient to notify the lienholder of the reason for the termination. Unless the lienholder corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the dwelling or home without further notice to the lienholder.

(B) After a landlord gives a termination notice pursuant to subparagraph (A) of this paragraph for failure of the lienholder to pay a storage charge and the lienholder corrects the violation, if the lienholder again violates the storage agreement by failing to pay a subsequent storage charge, the landlord may terminate the agreement by giving at least 30 days’ written notice to the lienholder stating facts sufficient to notify the lienholder of the reason for termination. Unless the lienholder corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the lienholder.

(C) A lienholder may terminate a storage agreement at any time upon at least 14 days’ written notice to the landlord and may remove the property from the rented space if the lienholder has paid all storage charges and other charges as provided in the agreement.

(g) Upon the failure of a lienholder to enter into a storage agreement as provided by this subsection or upon termination of an agreement, unless the parties otherwise agree or the lienholder has sold or removed the manufactured dwelling or floating home, the landlord may sell or dispose of the property pursuant to this section without further notice to the lienholder.

(19) If the personal property consists of an abandoned manufactured dwelling or floating home and is considered abandoned as a result of the death of a tenant who was the only tenant and who owned the dwelling or home, this section applies, except as follows:

(a) Any personal representative named in a will or appointed by a court to act for the deceased tenant or any person designated in writing by the tenant to be contacted by the landlord in the event of the tenant’s death has the same rights and responsibilities regarding the abandoned dwelling or home as a tenant.

(b) The notice required by subsection (3) of this section [shall] must be:

(A) Sent by first class mail to the deceased tenant at the premises; and

(B) Personally delivered or sent by first class mail to any personal representative or designated person if actually known to the landlord.

(c) The notice described in subsection (5) of this section [shall] must refer to any personal representative or designated person, instead of the deceased tenant, and [shall] must incorporate the provisions of this subsection.

(d) If a personal representative, designated person or other person entitled to possession of the property, such as an heir or devisee, responds by actual notice to a landlord within the 45-day period provided by subsection (6) of this section and so requests, the landlord shall enter into a written storage agreement with the representative or person providing that the dwelling or home may not be sold or disposed of by the landlord for up to 90 days or until conclusion of any probate proceedings, whichever is later. A storage agreement entitles the representative or person to store the personal property on the previously rented space during the term of the agreement, but does not entitle anyone to occupy the personal property. If such an agreement is entered, the landlord may not enter a similar agreement with a lienholder pursuant to subsection (18) of this section until the agreement with the personal representative or designated person ends.

(e) If a personal representative or other person requests that a landlord enter into a storage agreement, subsection (18)(c), (d) and (f)(C) of this section apply, with the representative or person having the rights and responsibilities of a lienholder with regard to the storage agreement.

(f) During the term of an agreement described under paragraph (d) of this subsection, the representative or person [shall have] has the right to remove or sell the dwelling or home, including a sale to a purchaser or a transfer to an heir or devisee where the purchaser, heir or devisee wishes to leave the dwelling or home on the rented space and become a tenant, subject to any conditions previously agreed to by the landlord and tenant regarding the landlord’s approval for occupancy of a purchaser, heir or devisee or, if there was no such agreement, any reasonable conditions by the landlord regarding approval for occupancy of any purchaser, heir or devisee who wishes to leave the dwelling or home on the rented space and become a tenant. The landlord also may condition approval for occupancy of any purchaser, heir or devisee of the dwelling or home upon payment of all unpaid storage charges and maintenance costs.

(g) If the representative or person violates the storage agreement, the landlord may terminate the agreement by giving at least 30 days’ written notice to the representative or person stating facts sufficient to notify the representative or person of the reason for the termination. Unless the representative or person corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the dwelling or home without further notice to the representative or person.

(h) Upon the failure of a representative or person to enter into a storage agreement as provided by this subsection or upon termination of an agreement, unless the parties otherwise agree or the representative or person has sold or removed the manufactured dwelling or floating home, the landlord may sell or dispose of the property pursuant to this section without further notice to the representative or person.

(20) If a governmental agency determines that the condition of a manufactured dwelling, floating home or recreational vehicle abandoned under this section constitutes an extreme health or safety hazard under state or local law and the agency determines that the hazard endangers others in the facility and requires quick removal of the property, the landlord may sell or dispose of the property pursuant to this subsection. The landlord shall comply with all provisions of this section, except as follows:

(a) The date provided in subsection (6) of this section by which a tenant, lienholder, owner, personal representative or designated person must contact a landlord to arrange for the disposition of the property [shall] must be not less than 15 days after personal delivery or mailing of the notice required by subsection (3) of this section.

(b) The date provided in subsections (8) and (9) of this section by which a tenant, lienholder, owner, personal representative or designated person must remove the property [shall] must be not less than seven days after the tenant, lienholder, owner, personal representative or designated person contacts the landlord.

(c) The notice required by subsection (3) of this section [shall] must be as provided in subsection (5) of this section, except that:

(A) The dates and deadlines in the notice for contacting the landlord and removing the property [shall] must be consistent with this subsection;

(B) The notice [shall] must state that a governmental agency has determined that the property constitutes an extreme health or safety hazard and must be removed quickly; and

(d) If the tenant, a lienholder, owner, personal representative or designated person does not remove the property within the time allowed, the landlord or a buyer at a sale by the landlord under subsection (11) of this section shall promptly remove the property from the facility.

(e) A landlord is not required to enter into a storage agreement with a lienholder, owner, personal representative or designated person pursuant to subsection (18) of this section.

(21) In the case of an abandoned recreational vehicle, manufactured dwelling or floating home that is owned by someone other than the tenant, the provisions of this section regarding the rights and responsibilities of a tenant to the abandoned vehicle, dwelling or home [shall] also apply to that owner, with regard only to the vehicle, dwelling or home, and not to any goods left inside or outside the vehicle, dwelling or home.

(22) In the case of an abandoned motor vehicle, the procedure authorized by ORS 98.830 and 98.835 for removal of abandoned motor vehicles from private property may be used by a landlord as an alternative to the procedures required in this section.

(23)(a) A landlord may sell or dispose of a tenant’s abandoned personal property without complying with the provisions of this section if, after termination of the tenancy or no more than seven days prior to the termination of the tenancy, the following parties so agree in a writing entered into in good faith:

(A) The landlord;

(B) The tenant, or for an abandonment as the result of the death of a tenant who was the only tenant, the personal representative, designated person or other person entitled to possession of the personal property, such as an heir or devisee, as described in subsection (19) of this section; and

(b) A landlord may not, as part of a rental agreement, require a tenant, a personal representative, a designated person or any lienholder or owner to waive any right provided by this section.

(24) Until personal property is conclusively presumed to be abandoned under subsection (9) of this section, a landlord does not have a lien pursuant to ORS 87.152 for storing the personal property.

SECTION 58. ORS 90.675 is amended to read:

90.675. (1) As used in this section:

(a) “Current market value” means the amount in cash, as determined by the county assessor, that could reasonably be expected to be paid for personal property by an informed buyer to an informed seller, each acting without compulsion in an arms-length transaction occurring on the assessment date for the tax year or on the date of a subsequent reappraisal by the county assessor.

(c) “Lienholder” means any lienholder of abandoned personal property, if the lien is of record or the lienholder is actually known to the landlord.

(d) “Of record” means:

[(A) For a manufactured dwelling, that a security interest has been properly recorded with the Department of Transportation pursuant to ORS 802.200 (1)(a)(A) and 803.097 for a dwelling registered and titled by the department pursuant to ORS 820.500.]

(A) For a manufactured dwelling, that a security interest has been properly recorded in the records of the Department of Consumer and Business Services pursuant to section 18 of this 2003 Act or on a certificate of title issued by the Department of Transportation prior to July 1, 2004.

(B) For a floating home, that a security interest has been properly recorded with the State Marine Board pursuant to ORS 830.740 to 830.755 for a home registered and titled with the board pursuant to ORS 830.715.

(e) “Personal property” means only a manufactured dwelling or floating home located in a facility and subject to ORS 90.505 to 90.840. “Personal property” does not include goods left inside a manufactured dwelling or floating home or left upon a rented space and subject to disposition under ORS 90.425.

(2) A landlord may not store, sell or dispose of abandoned personal property except as provided by this section. This section governs the rights and obligations of landlords, tenants and any lienholders in any personal property abandoned or left upon the premises by the tenant or any lienholder in the following circumstances:

(b) The tenant has been absent from the premises continuously for seven days after termination of a tenancy by a court order that has not been executed; or

(3) Prior to selling or disposing of the tenant’s personal property under this section, the landlord must give a written notice to the tenant that [shall] must be:

(a) Personally delivered to the tenant; or

(b) Sent by first class mail addressed and mailed to the tenant at:

(A) The premises;

(B) Any post-office box held by the tenant and actually known to the landlord; and

(4)(a) A landlord shall also give a copy of the notice described in subsection (3) of this section to:

(A) Any lienholder of the personal property;

(B) The tax collector of the county where the personal property is located; and

(A) Actually known to the landlord;

(B) Of record; and

(5) The notice required under subsection (3) of this section [shall] must state that:

(a) The personal property left upon the premises is considered abandoned;

(b) The tenant or any lienholder must contact the landlord by a specified date, as provided in subsection (6) of this section, to arrange for the removal of the abandoned personal property;

(d) The tenant or any lienholder, except as provided by subsection (17) of this section, may arrange for removal of the personal property by contacting the landlord at a described telephone number or address on or before the specified date;

(e) The landlord shall make the personal property available for removal by the tenant or any lienholder, except as provided by subsection (17) of this section, by appointment at reasonable times;

(f) If the personal property is considered to be abandoned pursuant to subsection (2)(a) or (b) of this section, the landlord may require payment of storage charges, as provided by subsection (7)(b) of this section, prior to releasing the personal property to the tenant or any lienholder;

(h) If the tenant or any lienholder fails to contact the landlord by the specified date or fails to remove the personal property within 30 days after that contact, the landlord may sell or dispose of the personal property. If the landlord reasonably believes the county assessor will determine that the current market value of the personal property is $8,000 or less, and the landlord intends to dispose of the property if [it] the property is not claimed, the notice shall state that belief and intent; and

(i) If applicable, there is a lienholder that has a right to claim the personal property, except as provided by subsection (17) of this section.

(6) For purposes of subsection (5) of this section, the specified date by which a tenant or lienholder must contact a landlord to arrange for the disposition of abandoned personal property [shall] must be not less than 45 days after personal delivery or mailing of the notice.

(7) After notifying the tenant as required by subsection (3) of this section, the landlord:

(a) Shall store the abandoned personal property of the tenant on the rented space and shall exercise reasonable care for the personal property; and

(b) Is entitled to reasonable or actual storage charges and costs incidental to storage or disposal. The storage charge [shall] may be no greater than the monthly space rent last payable by the tenant.

(8) If a tenant or lienholder, upon the receipt of the notice provided by subsection (3) or (4) of this section or otherwise, responds by actual notice to the landlord on or before the specified date in the landlord’s notice that the tenant or lienholder intends to remove the personal property from the premises, the landlord must make that personal property available for removal by the tenant or lienholder by appointment at reasonable times during the next 30 days, subject to subsection (17) of this section. If the personal property is considered to be abandoned pursuant to subsection (2)(a) or (b) of this section, but not pursuant to subsection (2)(c) of this section, the landlord may require payment of storage charges, as provided in subsection (7)(b) of this section, prior to allowing the tenant or lienholder to remove the personal property. Acceptance by a landlord of such payment does not operate to create or reinstate a tenancy or create a waiver pursuant to ORS 90.415.

(9) Except as provided in subsections (17) to (19) of this section, if the tenant or lienholder does not respond within the time provided by the landlord’s notice, or the tenant or lienholder does not remove the personal property within 30 days after responding to the landlord or by any date agreed to with the landlord, whichever is later, the personal property is conclusively presumed to be abandoned. The tenant and any lienholder that have been given notice pursuant to subsection (3) or (4) of this section shall, except with regard to the distribution of sale proceeds pursuant to subsection (12) of this section, have no further right, title or interest to the personal property and may not claim or sell the property.

(10) If the personal property is presumed to be abandoned under subsection (9) of this section, the landlord then may:

(a) Sell the personal property at a public or private sale, provided that prior to the sale:

(B) The landlord shall:

(i) Place a notice in a newspaper of general circulation in the county in which the personal property is located. The notice shall state:

(I) That the personal property is abandoned;

(II) The tenant’s name;

(III) The address and any space number where the personal property is located, and [if actually known to the landlord, the] any plate, registration or other identification number [as] for a floating home noted on the title, if actually known to the landlord;

(IV) Whether the sale is by private bidding or public auction;

(V) Whether the landlord is accepting sealed bids and, if so, the last date on which bids will be accepted; and

(VI) The name and telephone number of the person to contact to inspect the personal property;

(ii) At a reasonable time prior to the sale, give a copy of the notice required by sub-subparagraph (i) of this subparagraph to the tenant and to any lienholder, by personal delivery or first class mail, except that for any lienholder, mail service [shall] must be by first class mail with certificate of mailing;

(iv) Obtain written proof from the county that all property taxes and assessments on the personal property have been paid or, if not paid, that the county has authorized the sale, with the sale proceeds to be distributed pursuant to subsection (12) of this section; or

(b) Destroy or otherwise dispose of the personal property if the landlord determines from the county assessor that the current market value of the property is $8,000 or less.

(11)(a) A public or private sale authorized by this section [shall] must be conducted consistent with the terms listed in subsection (10)(a)(B)(i) of this section. Every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable.

(b) If there is no buyer at a sale described under paragraph (a) of this subsection, the personal property is considered to be worth $8,000 or less, regardless of current market value, and the landlord shall destroy or otherwise dispose of the personal property.

(12)(a) The landlord may deduct from the proceeds of the sale:

(A) The reasonable or actual cost of notice, storage and sale; and

(B) Unpaid rent.

(b) After deducting the amounts listed in paragraph (a) of this subsection, the landlord shall remit the remaining proceeds, if any, to the county tax collector to the extent of any unpaid property taxes and assessments owed on the dwelling or home.

(c) After deducting the amounts listed in paragraphs (a) and (b) of this subsection, if applicable, the landlord shall remit the remaining proceeds, if any, to any lienholder to the extent of any unpaid balance owed on the lien on the personal property.

(d) After deducting the amounts listed in paragraphs (a), (b) and (c) of this subsection, if applicable, the landlord shall remit to the tenant the remaining proceeds, if any, together with an itemized accounting.

(e) If the tenant cannot after due diligence be found, the landlord shall deposit the remaining proceeds [shall be deposited] with the county treasurer of the county in which the sale occurred[, and]. If not claimed within three years, [shall] the deposited proceeds revert to the general fund of the county and are available for general purposes.

(13) The county tax collector shall cancel all unpaid property taxes and assessments as provided under ORS 311.790 only under one of the following circumstances [described in paragraph (a), (b), (c) or (d) of this subsection]:

(a) The landlord disposes of the personal property after a determination described in subsection (10)(b) of this section.

(b) There is no buyer of the personal property at a sale described under subsection (11) of this section.

(c)(A) There is a buyer of the personal property at a sale described under subsection (11) of this section;

(B) The current market value of the personal property is $8,000 or less; and

(C) The proceeds of the sale are insufficient to satisfy the unpaid property taxes and assessments owed on the personal property after distribution of the proceeds pursuant to subsection (12) of this section.

(d)(A) The landlord buys the personal property at a sale described under subsection (11) of this section;

(B) The current market value of the personal property is more than $8,000;

(D) The landlord disposes of the personal property.

(14) The landlord is not responsible for any loss to the tenant or lienholder resulting from storage of personal property in compliance with this section unless the loss was caused by the landlord’s deliberate or negligent act. In the event of a deliberate and malicious violation, the landlord is liable for twice the actual damages sustained by the tenant or lienholder.

(15) Complete compliance in good faith with this section shall constitute a complete defense in any action brought by a tenant or lienholder against a landlord for loss or damage to such personal property disposed of pursuant to this section.

(16) If a landlord does not comply with this section:

(b) A lienholder aggrieved by the noncompliance may recover from the landlord the actual damages sustained by the lienholder. ORS 90.255 does not authorize an award of attorney fees to the prevailing party in any action arising under this paragraph; and

(17) The provisions of this section regarding the rights and responsibilities of a tenant to the abandoned personal property [shall] also apply to any lienholder, except that the lienholder may not sell or remove the dwelling or home unless:

(a) The lienholder has foreclosed [its] the lien on the manufactured dwelling or floating home;

(b) The tenant or a personal representative or designated person described in subsection (19) of this section has waived all rights under this section pursuant to subsection (21) of this section; or

(18)(a) Except as provided by subsection (19)(d) and (e) of this section, if a lienholder makes a timely response to a notice of abandoned personal property pursuant to subsections (6) and (8) of this section and so requests, a landlord shall enter into a written storage agreement with the lienholder providing that the personal property may not be sold or disposed of by the landlord for up to 12 months. A storage agreement entitles the lienholder to store the personal property on the previously rented space during the term of the agreement, but does not entitle anyone to occupy the personal property.

(b) The lienholder’s right to a storage agreement arises upon the failure of the tenant or, in the case of a deceased tenant, the personal representative, designated person, heir or devisee to remove or sell the dwelling or home within the allotted time.

(d) The storage agreement may require, in addition to other provisions agreed to by the landlord and the lienholder, that:

(A) The lienholder make timely periodic payment of all storage charges, as described in subsection (7)(b) of this section, accruing from the commencement of the 45-day period described in subsection (6) of this section. A storage charge may include a utility or service charge, as described in ORS 90.510 (8), if limited to charges for electricity, water, sewer service and natural gas and if incidental to the storage of personal property. A storage charge may not be due more frequently than monthly;

(D) The lienholder repair any defects in the physical condition of the personal property that existed prior to the lienholder entering into the storage agreement, if the defects and necessary repairs are reasonably described in the storage agreement and, for homes that were first placed on the space within the previous 24 months, the repairs are reasonably consistent with facility standards in effect at the time of placement. The lienholder shall have 90 days after entering into the storage agreement to make the repairs. Failure to make the repairs within the allotted time constitutes a violation of the storage agreement and the landlord may terminate the agreement by giving at least 14 days’ written notice to the lienholder stating facts sufficient to notify the lienholder of the reason for termination. Unless the lienholder corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the lienholder.

(e) Notwithstanding subsection (7)(b) of this section, a landlord may increase the storage charge if the increase is part of a facility-wide rent increase for all facility tenants, the increase is no greater than the increase for other tenants and the landlord gives the lienholder written notice consistent with the requirements of ORS 90.600 (1).

(f) During the term of an agreement described under this subsection, the lienholder [shall have] has the right to remove or sell the property, subject to the provisions of [its] the lien. Selling the property includes a sale to a purchaser who wishes to leave the property on the rented space and become a tenant, subject to the provisions of ORS 90.680. The landlord may condition approval for occupancy of any purchaser of the property upon payment of all unpaid storage charges and maintenance costs.

(g)(A) Except as provided in paragraph (d)(D) of this subsection, if the lienholder violates the storage agreement, the landlord may terminate the agreement by giving at least 90 days’ written notice to the lienholder stating facts sufficient to notify the lienholder of the reason for the termination. Unless the lienholder corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the lienholder.

(C) A lienholder may terminate a storage agreement at any time upon at least 14 days’ written notice to the landlord and may remove the property from the facility if the lienholder has paid all storage charges and other charges as provided in the agreement.

(h) Upon the failure of a lienholder to enter into a storage agreement as provided by this subsection or upon termination of an agreement, unless the parties otherwise agree or the lienholder has sold or removed the property, the landlord may sell or dispose of the property pursuant to this section without further notice to the lienholder.

(19) If the personal property is considered abandoned as a result of the death of a tenant who was the only tenant, this section applies, except as follows:

(a) The provisions of this section regarding the rights and responsibilities of a tenant to the abandoned personal property shall apply to any personal representative named in a will or appointed by a court to act for the deceased tenant or any person designated in writing by the tenant to be contacted by the landlord in the event of the tenant’s death.

(b) The notice required by subsection (3) of this section [shall] must be:

(A) Sent by first class mail to the deceased tenant at the premises; and

(B) Personally delivered or sent by first class mail to any personal representative or designated person if actually known to the landlord.

(d) If a personal representative, designated person or other person entitled to possession of the property, such as an heir or devisee, responds by actual notice to a landlord within the 45-day period provided by subsection (6) of this section and so requests, the landlord shall enter into a written storage agreement with the representative or person providing that the personal property may not be sold or disposed of by the landlord for up to 90 days or until conclusion of any probate proceedings, whichever is later. A storage agreement entitles the representative or person to store the personal property on the previously rented space during the term of the agreement, but does not entitle anyone to occupy the personal property. If such an agreement is entered, the landlord may not enter a similar agreement with a lienholder pursuant to subsection (18) of this section until the agreement with the personal representative or designated person ends.

(e) If a personal representative or other person requests that a landlord enter into a storage agreement, subsection (18)(c) to (e) and (g)(C) of this section apply, with the representative or person having the rights and responsibilities of a lienholder with regard to the storage agreement.

(f) During the term of an agreement described under paragraph (d) of this subsection, the representative or person [shall have] has the right to remove or sell the property, including a sale to a purchaser or a transfer to an heir or devisee where the purchaser, heir or devisee wishes to leave the property on the rented space and become a tenant, subject to the provisions of ORS 90.680. The landlord also may condition approval for occupancy of any purchaser, heir or devisee of the property upon payment of all unpaid storage charges and maintenance costs.

(g) If the representative or person violates the storage agreement, the landlord may terminate the agreement by giving at least 30 days’ written notice to the representative or person stating facts sufficient to notify the representative or person of the reason for the termination. Unless the representative or person corrects the violation within the notice period, the agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the representative or person.

(h) Upon the failure of a representative or person to enter into a storage agreement as provided by this subsection or upon termination of an agreement, unless the parties otherwise agree or the representative or person has sold or removed the property, the landlord may sell or dispose of the property pursuant to this section without further notice to the representative or person.

(20) If a governmental agency determines that the condition of personal property abandoned under this section constitutes an extreme health or safety hazard under state or local law and the agency determines that the hazard endangers others in the facility and requires quick removal of the property, the landlord may sell or dispose of the property pursuant to this subsection. The landlord shall comply with all provisions of this section, except as follows:

(a) The date provided in subsection (6) of this section by which a tenant, lienholder, personal representative or designated person must contact a landlord to arrange for the disposition of the property [shall] must be not less than 15 days after personal delivery or mailing of the notice required by subsection (3) of this section.

(b) The date provided in subsections (8) and (9) of this section by which a tenant, lienholder, personal representative or designated person must remove the property [shall] must be not less than seven days after the tenant, lienholder, personal representative or designated person contacts the landlord.

(c) The notice required by subsection (3) of this section [shall] must be as provided in subsection (5) of this section, except that:

(A) The dates and deadlines in the notice for contacting the landlord and removing the property [shall] must be consistent with this subsection;

(B) The notice [shall] must state that a governmental agency has determined that the property constitutes an extreme health or safety hazard and must be removed quickly; and

(d) If the tenant, a lienholder or a personal representative or designated person does not remove the property within the time allowed, the landlord or a buyer at a sale by the landlord under subsection (11) of this section shall promptly remove the property from the facility.

(e) A landlord is not required to enter into a storage agreement with a lienholder, personal representative or designated person pursuant to subsection (18) of this section.

(21)(a) A landlord may sell or dispose of a tenant’s abandoned personal property without complying with the provisions of this section if, after termination of the tenancy or no more than seven days prior to the termination of the tenancy, the following parties so agree in a writing entered into in good faith:

(A) The landlord;

(b) A landlord may not, as part of a rental agreement, as a condition to approving a sale of property on rented space under ORS 90.680 or in any other manner, require a tenant, a personal representative, a designated person or any lienholder to waive any right provided by this section.

(22) Until personal property is conclusively presumed to be abandoned under subsection (9) of this section, a landlord does not have a lien pursuant to ORS 87.152 for storing the personal property.

SECTION 59. ORS 90.865 is amended to read:

90.865. A seller of a manufactured dwelling [acting as a vehicle dealer under ORS chapter 822] who is subject to sections 25 to 43 of this 2003 Act must provide notice under ORS 90.870 if the manufactured dwelling is to be placed in a facility and the seller:

(1) Pays a portion of the rent for the dwelling; or

(2) Provides financing or assists the buyer in arranging financing that results in a party taking a purchase money security interest in the dwelling and the seller knows that a portion of the proceeds from the financing is to be used to pay a portion of the rent for the dwelling.

SECTION 60. ORS 114.535 is amended to read:

114.535. (1) Any person indebted to the decedent or having possession of personal property belonging to the estate, to whom a certified copy of the affidavit filed under ORS 114.515 is delivered by the affiant on or after the 10th day following the filing of the affidavit, shall pay, transfer or deliver the personal property to the affiant. Any person who has received property of the decedent under ORS 722.262[,] or 803.094 or section 19 of this 2003 Act, or any similar statute providing for the transfer of property of an estate which is not being probated shall pay, transfer or deliver the property to the affiant if the person would be required to pay, transfer or deliver the property to a personal representative of the estate. The transferor is discharged and released from any liability or responsibility for the transfer in the same manner and with the same effect as if the property had been transferred, delivered or paid to a personal representative of the estate of the decedent.

(2) A transfer agent of any corporate security registered in the name of the decedent shall change the registered ownership on the books of the corporation to the person entitled thereto on presentation of a certified copy of the affidavit filed under ORS 114.515.

(3) If a person to whom an affidavit is delivered refuses to pay, deliver or transfer any personal property to the affiant or the person entitled to the property as disclosed in the affidavit filed under ORS 114.515, the property may be recovered or its payment, delivery or transfer compelled upon proof of the transferee’s entitlement in a proceeding brought for the purpose by or on behalf of the transferee.

SECTION 61. ORS 114.545 is amended to read:

114.545. (1) The affiant:

(a) Shall take control of the property of the estate coming into the possession of the affiant.

(b) Within 30 days after filing the affidavit shall mail, deliver or cause to be recorded each instrument which the affidavit states will be mailed, delivered or recorded.

(A) Expenses described in ORS 115.125 (1)(b) and (c) and listed in the affidavit;

(B) Claims listed in the affidavit as undisputed;

(D) Claims which the probate court directs the affiant to pay.

(d) Shall pay claims and expenses under paragraph (c) of this subsection in the order of priority prescribed by ORS 115.125.

(e) May transfer or sell any vehicle that is part of the estate before the completion of the period established under ORS 114.555 if the affiant complies with the requirements established by the Department of Transportation for such purposes under ORS 803.094.

(f) May convey any real or personal property that is part of the estate before the completion of the period established under ORS 114.555, provided that each heir or devisee succeeding to the interest conveyed joins in the conveyance and that any proceeds of sale, net of the reasonable expenses of sale and any debt secured as of the date of the decedent’s death by a duly perfected lien on the property, shall become a part of the estate subject to ORS 114.505 to 114.560. If the property is a manufactured structure as defined in section 8 of this 2003 Act, the affiant must assign interest in the structure as provided in section 19 of this 2003 Act. Any conveyance to a purchaser in good faith and for a valuable consideration made by the affiant and the heir or devisee succeeding to the interest conveyed, or made by the heir or devisee succeeding to the interest conveyed after completion of the period established under ORS 114.555, conveys the interest stated in the conveyance free of any interest of the claiming successors, and the purchaser has no duty with respect to application of the consideration paid for the conveyance.

(2) Any claiming successor to whom payment, delivery or transfer is made under ORS 114.505 to 114.560 as a person entitled thereto as disclosed in the affidavit is personally answerable and accountable:

(a) To the extent of the value of the property received, to creditors of the estate to the extent such creditors are entitled to payment under subsection (1) of this section; and

(b) To any personal representative of the estate of the decedent thereafter appointed.

(3) The affiant shall cause to be recorded in the deed records of any county in which real property belonging to the decedent is situated an affiant or claiming successor’s deed executed in the manner required by ORS chapter 93.

(4) For a manufactured structure as defined in section 8 of this 2003 Act belonging to a decedent and assessed as personal property, the affiant shall file with the Department of Consumer and Business Services the necessary information for recording the successor’s interest in the manufactured structure on an ownership document.

SECTION 62. ORS 184.642 is amended to read:

184.642. (1) The Department of Transportation Operating Fund is established in the State Treasury separate and distinct from the General Fund and separate and distinct from the State Highway Fund. Moneys in the Department of Transportation Operating Fund are continuously appropriated to the Department of Transportation to pay expenses of the department that are incurred in the performance of functions the department is statutorily required or authorized to perform and that may not constitutionally be paid from revenues described in section 3a, Article IX of the Oregon Constitution.

(2) The operating fund shall consist of the following:

(a) Taxes paid on motor vehicle fuels or on the use of fuel in a motor vehicle for which a person is entitled to a refund under a provision described in this paragraph but for which no refund is claimed, in amounts determined under ORS 184.643. This paragraph applies to refund entitlements described in ORS 319.280 (1)(a) and (e), 319.320 (1)(a) and 319.831 (1)(b).

(b) Fees collected under ORS 822.700 for issuance or renewal of:

(A) Wrecker certificates;

(B) Vehicle dealer certificates;

(D) Commercial driver training school certificates; and

(E) Appraiser certificates.

(d) Moneys from civil penalties imposed under ORS 822.009 [or 822.075].

(e) Fees collected under ORS 807.410 for identification cards.

(f) Fees collected by the department for issuance of permits to engage in activities described in ORS 374.305 to 374.330 that are not directly connected to the construction, reconstruction, improvement, repair, maintenance, operation and use of a public highway, road, street or roadside rest area.

(g) Interest and other earnings on moneys in the operating fund.

(3) Moneys in the Department of Transportation Operating Fund established by subsections (1) and (2) of this section may be spent only as follows:

(a) Taxes described in subsection (2)(a) of this section may be used only for payment of expenses of the Department of Transportation that:

(A) May not constitutionally be paid from revenues described in section 3a, Article IX of the Oregon Constitution;

(B) Are incurred in the performance of functions the department is statutorily required or authorized to perform; and

(b) Fees collected under subsection (2)(b) of this section may be used only to carry out the regulatory functions of the department relating to the businesses that generate the fees.

(d) Moneys collected from civil penalties imposed under ORS 822.009 [or 822.075] may be used only for regulation of vehicle dealers.

(e) Moneys collected under ORS 807.410 from fees for identification cards may be used only for performing the functions of the department relating to identification cards.

(f) Moneys from the permits described in subsection (2)(f) of this section may be used for costs of issuing the permits and monitoring the activities that generate the fees.

(g) Moneys from interest and other earnings on moneys in the operating fund may be used for any purpose for which other moneys in the fund may be used.

SECTION 63. ORS 307.190 is amended to read:

307.190. (1) All items of tangible personal property held by the owner, or for delivery by a vendor to the owner, for personal use, benefit or enjoyment, are exempt from taxation.

(2) The exemption provided in subsection (1) of this section does not apply to:

(a) Any tangible personal property held by the owner, wholly or partially for use or sale in the ordinary course of a trade or business, for the production of income, or solely for investment.

(b) Any tangible personal property required to be licensed or registered under the laws of this state.

(d) Manufactured structures as defined in section 8 of this 2003 Act.

SECTION 64. ORS 308.425 is amended to read:

308.425. (1) If, during any tax year, any real or personal property is destroyed or damaged by fire or act of God, the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property, may apply to the tax collector for proration of the taxes imposed on the property for the tax year.

(2) Application for proration of taxes under subsection (1) of this section shall be made not later than the end of the tax year or 30 days after the date the property was destroyed or damaged, whichever is later.

(3)(a) For property that is totally destroyed, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that the property was in existence during the tax year. The tax collector shall cancel the remainder of the taxes imposed on the property for the tax year.

(b) For property that is damaged, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that preceded the month during which the property was damaged. For the month in which the property was damaged, and for each month of the tax year thereafter in which the property remains damaged, the tax collector shall collect that percentage of one-twelfth of the taxes imposed on the property that the real market value or the assessed value of the property after the damage (whichever is less) bears to the assessed value of the property before the damage. The assessor shall advise the tax collector of the value percentage required under this paragraph. The tax collector shall cancel any taxes not to be collected due to this paragraph.

[(4) If the damaged property to which this section applies is a manufactured structure that is moved to another county after being damaged, the owner shall advise the tax collector of the new location of the manufactured structure.]

[(5)] (4) That portion of the property that is damaged property and that is subsequently repaired shall be considered to be new property or new improvements to property under ORS 308.153 for the assessment year in which the repairs or replacements are first taken into account.

SECTION 65. ORS 308.865 is amended to read:

308.865. (1) A person [shall] may not move a [manufactured structure] mobile modular unit to a new situs within the same county or outside the county until the person has:

(a) Given notice of the move to the [county assessor,] county tax collector; and [the Department of Transportation; and]

(b) Paid all property taxes and special assessments for the current tax year and all outstanding delinquent property taxes and special assessments for all past tax years.

[(2) Notwithstanding subsection (1) of this section, a person may move a manufactured structure without paying all outstanding delinquent property taxes and special assessments if the move is pursuant to ORS 90.425 or 90.675.]

(2) Upon receiving notice of a move, the county tax collector shall send copies of the notice to the county assessor and the Department of Transportation.

[(3) The Department of Transportation shall not issue a trip permit under ORS 820.560, until the owner furnishes a statement from the county tax collector that all taxes have been paid as required by subsection (1) of this section. The Department of Transportation shall accept a receipt issued under ORS 308.866 (3) as sufficient statement of payment of taxes from a person who applies for a trip permit to move a mobile modular unit.]

[(4)] (3) In computing taxes and special assessments on a mobile modular unit that will become due [for purposes of an application for a trip permit under ORS 820.560], the following apply:

(a) If the assessor can compute the exact amount of taxes, special assessments, fees and charges, the assessor is authorized to levy and the tax collector is authorized to collect such amount.

(b) If the assessor is unable to compute such amount at such time, the owner shall either pay an amount computed using the value then on the assessment roll for [such manufactured structure] the mobile modular unit or that value which next would be used on an assessment roll and the assessor’s best estimate of taxes, special assessments, fees and other charges.

[(5) The tax collector of the county of the old situs may charge the owner of a manufactured structure a fee of no more than $10 for preparing the statement required by subsection (3) of this section.]

[(6) As used in this section and ORS 305.288 and ORS chapters 306, 308, 310 and 311, “manufactured structure” has the meaning given in ORS 801.333.]

SECTION 66. ORS 308.866 is amended to read:

308.866. (1) As used in ORS 308.865[, 820.560] and this section, “mobile modular unit” means a prefabricated structure that is more than eight and one-half feet wide, is used for commercial or business purposes and is capable of being moved on the highway.

(2) The owner as of January 1 of each year of a mobile modular unit that is taxed as personal property shall submit no later than the following March 1 a statement of the value of the unit and of its location. The owner shall submit the statement [shall be submitted] to the county assessor of the county in which the unit is located on January 1 of the year for which the statement is submitted. An owner who fails to provide the statement [shall be] is subject to the late filing penalty as provided in ORS 308.295. The Department of Revenue shall prescribe the form of statement.

(3) When taxes on a mobile modular unit have been paid in accordance with the provisions of ORS 308.865, the tax collector shall issue the owner of the unit a receipt indicating that the taxes have been paid. [The receipt shall be proof that property taxes in that county have been paid for the tax year and shall be accepted by the Department of Transportation when the owner of the unit applies for a trip permit under ORS 820.560.]

(4) Notwithstanding any other provision of law, the county tax collector shall accept a cashier’s check or money order in payment of taxes on a mobile modular unit.

SECTION 67. ORS 308.875 is amended to read:

308.875. If the manufactured structure and the land upon which the manufactured structure is situated are owned by the same person, the assessor shall assess the manufactured structure as real property. If the manufactured structure is owned separately and apart from the land upon which it is located, [it shall be assessed and taxed] the assessor shall assess and tax the manufactured structure as personal property. [Subject to ORS 820.510,] A change in the property classification of a manufactured structure [as real property] for ad valorem tax purposes [shall] does not change the property classification of [such] the structure [as personal property] with respect to any transactions between the owner and security interest holders or other persons. Manufactured structures classified as personal property need not be returned under ORS 308.290.

SECTION 68. ORS 308.880 is amended to read:

308.880. (1) The owner of any travel trailer described in ORS 801.565 which is being used either as a permanent home or for other than recreational purposes may apply to the assessor in the county in which it has situs to have the travel trailer assessed for ad valorem taxation. If the assessor determines that [the] a travel trailer is being used either as a permanent home or for other than recreational uses, the assessor shall place the travel trailer on the assessment and tax rolls the same as if it were a manufactured structure. The assessor shall accept the travel trailer plate for the vehicle and return the plate to the Department of Transportation, and shall, as appropriate, record the travel trailer in the county deed records or assist in obtaining [a permanent registration plate] an ownership document for the travel trailer under [ORS 820.500] section 11 of this 2003 Act. Any travel trailer placed on the assessment and tax rolls under this section [shall be] is considered [as] a manufactured structure for all purposes.

(2) The owner of any special use trailer described in ORS 801.500 that is eight and one-half feet or less in width may apply to the assessor of the county in which it has situs to have the special use trailer assessed for ad valorem taxation. If the assessor determines that the special use trailer is eight and one-half feet or less in width and is permanently situated in one place, the assessor shall place the special use trailer on the assessment and tax rolls in the same way as if it were a manufactured structure. The assessor shall accept any special use trailer plate for the vehicle and return the plate to the Department of Transportation, and shall, as appropriate, record the special use trailer in the county deed records or assist in obtaining [a permanent registration plate] an ownership document for the special use trailer under [ORS 820.500] section 11 of this 2003 Act. Any special use trailer placed on the assessment and tax rolls under this section [shall be] is considered [as] a manufactured structure for all purposes.

SECTION 69. ORS 311.280 is amended to read:

311.280. (1) Any person desiring to pay taxes on any part of any real estate assessed as one parcel or tract may do so by applying to the county assessor or deputy county assessor. The county assessor shall determine the relative or proportionate value such part bears to the value of the whole tract assessed, and shall file a statement thereof with the tax collector, on which basis the assessment shall be divided and taxes shall be collected accordingly.

(2) The assessor or tax collector shall not divide an assessment under this section unless the person calling for the division of assessment owns, or holds a mortgage or other lien on that part only of such area on which the person desires to pay the taxes, and has filed with the assessor a true copy of the deed, contract of sale, mortgage or other instrument evidencing the interest in the part; provided that whenever such instrument is otherwise recorded in the county records, such filing shall not be required.

(3) The assessor or tax collector shall not divide an assessment under this section unless all ad valorem taxes, fees and other charges required to be placed upon the tax roll that have been certified for collection under ORS 311.105 and 311.110 and become a lien upon the entire parcel of property have been paid. However, if the applicant for the division is a public body, only the portion of such taxes, fees and other charges apportionable to the part of the real estate owned by the public body, or on which the public body holds a mortgage or other lien, need be paid. As used in this subsection, “public body” means the United States, its agencies and instrumentalities, the state, a county, city, school district, irrigation or drainage district, a port, a water district and all other public or municipal corporations in the state exempt from tax under ORS 307.040 or 307.090.

(4) In the case of a parcel or tract of real estate which is being assessed under one of the special assessment laws listed in ORS 308A.733 (2) or under ORS 358.480 to 358.545, the assessor or tax collector shall not divide the assessment unless the portion of any additional taxes or penalty apportionable to the part of the property disqualified from special assessment is paid.

(5) In the case of property within the jurisdiction of a city or county which has adopted minor land partition regulations pursuant to ORS 92.046, the assessor shall not divide an assessment unless the person calling for the division of assessment has filed with the assessor evidence that the division has been approved as required by such regulations.

(6) Whenever a manufactured structure is assessed as real property under ORS 308.875 [or 820.510], and the security interest holder of the manufactured structure is a person different from the owner of the parcel of land upon which it is situated, the security interest holder may apply to the assessor for a division of the value of the entire parcel between the value of the manufactured structure and the value of the remainder of the parcel. Using this value division, the tax collector shall allocate the taxes between the [manufacture] manufactured structure and the remainder of the parcel, and the security interest holder of the manufactured structure may pay the taxes on the value attributable to the manufactured structure and thereby free the manufactured structure from the lien of those taxes. If a division is made and taxes and special assessments are paid on the value attributable to the manufactured structure, the county may reclassify the manufactured structure as personal property, forward the ownership document application information to the Department of Consumer and Business Services and allow the structure to be moved as provided in section 22 of this 2003 Act without payment of the taxes[, the lien of the tax on the manufactured structure is on both the manufactured structure and the parcel from which it was removed; however, payment of taxes on the manufactured structure will reduce, in the amount of taxes paid, the taxes against the remainder of the parcel, and payment of the taxes assessed against the entire parcel will remove the lien of taxes against the manufactured structure.] and special assessments attributable to the remainder of the parcel.

(7) If protest is filed to the division, the matter shall be heard by the county commissioners or the county court (as defined in ORS 306.005) at its next regular session for transaction of county business, who shall make a final division of the assessment, and the tax collector shall collect and receipt for the taxes as so determined and ordered.

(8) No person shall apply in any year under this section for a division of the assessment of a subdivision made on the assessment roll prepared as of January 1 of the year in which the subdivision is finally approved.

SECTION 70. ORS 311.370 is amended to read:

311.370. (1)(a) For all taxes, penalties and other charges collected by the tax collector under, including, but not limited to, ORS 92.095, 100.110, 308.260, 308.865, 308A.119, 308A.324, 308A.700 to 308A.733, 311.165, 311.206, 311.229, 311.405 (4) or (5), 311.415, 311.465, 354.690, 358.525 and 454.225 and section 22 of this 2003 Act, the tax collector shall issue receipts similar in form to the receipts issued on payment of taxes regularly charged on the tax roll.

(b) The assessor shall enter all assessments of property to which paragraph (a) of this subsection applies in the assessment roll and shall make proper entries showing the extension of the taxes in the usual manner and as though no payment to the tax collector had been made.

(2) Upon receipt thereof, the tax collector shall deposit with the county treasurer all money collected by the tax collector under subsection (1) of this section. The county treasurer shall issue to the tax collector duplicate receipts for the money and shall hold it in a special account in the name of the tax collector.

(3) Upon delivery of the assessment roll pursuant to ORS 311.115, the tax collector shall post the payments evidenced by the receipts, and the amount of any underpayment or overpayment. The tax collector shall then make a statement to the county treasurer which shall specify the amount to be retained in the special account to make the refunds required under subsection (4) of this section. The tax collector shall direct the county treasurer to transfer the balance in the special account to the unsegregated tax collections account described in ORS 311.385.

(4) Any sum collected by the tax collector that exceeds the amount extended on the tax roll as provided in subsection (1)(b) of this section by $5 or more shall be refunded to the taxpayer by the county treasurer upon receiving instructions for doing so from the tax collector. If an amount remains that cannot be refunded by June 30 of the next calendar year, the tax collector shall instruct the treasurer to transfer the amount to the unsegregated tax collections account described in ORS 311.385.

(5) If a sum less than the tax charged on the tax roll has been collected, the deficiency shall be canceled by the tax collector if such sum is $5 or less, and the tax collector shall note upon the tax roll opposite the appropriate account, “Tax deficiency canceled pursuant to ORS 311.370.” Otherwise, the deficiency shall be collected as provided by law.

(6) If an appeal that is perfected under ORS 311.467 for taxes collected under ORS 311.465 results in a refund under ORS 311.806, the reimbursement for the refund to the unsegregated tax collections account shall be made from the account provided for in subsection (2) of this section.

SECTION 71. ORS 311.512 is amended to read:

311.512. [Subject to ORS 820.510:]

(1) Taxes on manufactured structures assessed as real property shall become due, become delinquent, and [shall] be collected at the same time and in the same manner as taxes on other real property[; provided, however, that such taxes shall also be a debt due and owing from the owner of the manufactured structure, and, in the discretion of the county, shall be subject to the provisions of law for the collection of personal property taxes]. Taxes on manufactured structures assessed as personal property [shall be] are subject to all the provisions of law relating to the assessment, taxation and collection of personal property taxes.

(2) The seizure and sale for tax delinquency of a manufactured structure [for tax delinquency shall] assessed as personal property must be conducted and carried out in the same manner as provided by law for the seizure and sale of other personal property for the collection of taxes due thereon, except as follows:

(a) If the records of the Department of [Transportation] Consumer and Business Services indicate that the person to whom the seized manufactured structure is assessed is not the security interest holder, the tax collector, before selling the manufactured structure, shall give notice of the sale to any security interest holder [or lessor] by registered or certified mail, addressed to the security interest holder [or lessor] at the last-known address of the holder [or lessor] as shown by the records of the Department of [Transportation] Consumer and Business Services, mailed not later than the 10th day before the sale.

(b) At any time before the sale, the person assessed[,] or security interest holder [or lessor] of the manufactured structure to be sold may pay the tax collector the full amount of the delinquent taxes, plus any penalties and interest thereon, and costs incurred by the tax collector in seizing the manufactured structure and arranging its sale. If this is done, the tax collector may not hold the sale [shall not be held] and [the tax collector] shall return the manufactured structure to the person entitled to [its] possession of the structure.

(c) If the amount realized on the sale is in excess of the amount of taxes, interest, penalties and costs due on the manufactured structure, the tax collector first shall pay to the security interest holder, [then to the lessor of the manufactured structure,] according to the records of the Department of [Transportation] Consumer and Business Services, the amount of their interest to the extent there are sufficient moneys to do so, and shall pay any amount thereafter remaining to the owner of the manufactured structure.

SECTION 72. ORS 366.512 is amended to read:

366.512. (1) The Department of Transportation shall collect all registration fees for campers, [manufactured structures,] motor homes and travel trailers. Such fees shall be paid into the State Parks and Recreation Department Fund.

(2) As used in this section and in ORS 390.134 (1) to (6), the words “camper,” [“manufactured structure,”] “motor home” and “travel trailer” have the meanings given in ORS chapter 801.

SECTION 73. ORS 377.650 is amended to read:

377.650. Any personal property not coming within the definition of junk, except a vehicle as defined in ORS 801.590[, which] or a manufactured structure as defined in section 8 of this 2003 Act, that is deposited, left or displayed on a state highway is hereby found and declared to be a public nuisance. The Director of Transportation may do any of the following with respect to personal property declared to be a nuisance by this section:

(1) Ten days after written notice is mailed to the person owning the personal property, the director may institute on behalf of the Department of Transportation any legal proceedings the director considers necessary to prevent the violation of this section.

(2) Ten days after written notice, the director may remove the personal property and store it. After 30 days of storage, unless claimed sooner by the owner, the director may sell or otherwise dispose of the personal property. Where removal is performed by the director, the director shall not be liable for any conversion of personal property and may collect the cost for removal, storage and sale or disposal of the personal property from the person owning it.

(3) If the property is a sign, as defined under ORS 377.710, that is portable or if the property has been repeatedly deposited, left or displayed in violation of this section, the director may follow the procedures under ORS 377.655. This subsection applies notwithstanding any other provision of this section.

SECTION 74. ORS 390.134, as amended by section 166, chapter 14, Oregon Laws 2003 (Enrolled Senate Bill 81), is amended to read:

390.134. (1) As used in this section:

(a) The terms “camper,” [“manufactured structure,”] “motor home” and “travel trailer” have the meanings given those terms in ORS chapter 801.

(b) “County” includes a metropolitan service district organized under ORS chapter 268, but only to the extent that the district has acquired, through title transfer, and is operating a park or recreation site of a county pursuant to an intergovernmental agreement.

(2) The State Parks and Recreation Department Fund is established separate and distinct from the General Fund. The fund shall consist of the following:

(a) All moneys placed in the fund as provided by law. Any interest or other income derived from the depositing or other investing of the fund [shall] must be credited to the fund.

(b) All registration fees received by the Department of Transportation for campers, [manufactured structures,] motor homes and travel trailers [which] that are transferred to the fund under ORS 366.512. [Such] The funds [shall] must be deposited in a separate subaccount established under subsection (3) of this section.

(3) Any moneys placed in the fund for a particular purpose may be placed in a separate subaccount within the fund. Each separate subaccount established under this subsection [shall] must be separately accounted for. Moneys placed in a subaccount [shall] must be used for the purposes for which they are deposited.

(4) All of the moneys in the fund except those moneys described in subsection (3), (5), (6) or (7) of this section [shall] must be deposited in a separate subaccount within the fund and [shall be] used by the State Parks and Recreation Department for the acquisition, development, maintenance, care and use of park and recreation sites. The moneys in the subaccount under this subsection [shall] must be accounted for separately and [shall be] stated separately in the State Parks and Recreation Department’s biennial budget.

(5) Thirty percent of the amount transferred to the State Parks and Recreation Department under ORS 366.512 from the registration of travel trailers, campers and motor homes and under ORS 803.601 from recreational vehicle trip permits [shall] must be deposited in a separate subaccount within the fund and is appropriated for the maintenance, care and use of county park and recreation sites. The moneys in the subaccount under this subsection [shall] must be accounted for separately. The following apply to the distribution of moneys under this subsection:

(a) The appropriation [shall] must be distributed among the several counties for the purposes described in this subsection. The distribution shall be made at times determined by the State Parks and Recreation Department but [shall] must be made not less than once a year.

(b) The sums designated under this subsection [shall] must be remitted to the county treasurers of the several counties by warrant.

(c) The department shall establish an advisory committee to advise the department in the performance of its duties under this subsection. The composition of the advisory committee under this subsection [shall be] is as determined by the department by rule. In determining the composition of the advisory committee, the department shall attempt to provide reasonable representation for county officials or employees with responsibilities relating to county parks and recreation sites.

(d) The department, by rule, shall establish a program to provide moneys to counties for the acquisition, development, maintenance, care and use of county park and recreation areas. The rules under this paragraph shall provide for distribution of moneys based on use and need and, as the department determines necessary, on the need for the development and maintenance of facilities to provide camping sites for campers, motor homes and travel trailers.

(6) The department shall create a separate City and County Subaccount within the fund to be used to reimburse cities and counties as provided in ORS 390.290.

(7) The department shall create a separate rural Fire Protection District Subaccount to be used to provide funds for the fire protection districts as provided in ORS 390.290.

(8) On or before January 15 of each odd-numbered year, the State Parks and Recreation Director shall report to the Joint Legislative Committee on Ways and Means created by ORS 171.555 on the use of moneys deposited pursuant to ORS 805.256 in the fund. The director shall make the report in a form and manner as the committee may prescribe.

SECTION 74a. ORS 446.423 is amended to read:

446.423. All moneys deposited to the Consumer and Business Services Fund that are derived pursuant to ORS 446.003 to 446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) and sections 9 to 23a and 25 to 43 of this 2003 Act are continuously appropriated to the Department of Consumer and Business Services for carrying out any of the duties, functions and powers of the department under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420 and sections 9 to 23a and 25 to 43 of this 2003 Act, and rules adopted thereunder[, without regard to the source of the moneys].

SECTION 75. ORS 455.010 is amended to read:

455.010. As used in this chapter, unless the context requires otherwise:

(1)(a) “Advisory board” means the board with responsibility for assisting in the adoption, amendment or administration of a specialty code, specifically:

(A) The Building Codes Structures Board established under ORS 455.132;

(B) The Electrical and Elevator Board established under ORS 455.138;

(D) The Manufactured Structures and Parks Advisory Board established under ORS 446.280; or

(E) The Board of Boiler Rules established under ORS 480.535.

(b) “Appropriate advisory board” means the advisory board that has jurisdiction over a particular code, standard, license, certification or matter.

(2) “Department” means the Department of Consumer and Business Services.

(3) “Director” means the Director of the Department of Consumer and Business Services.

(4) “Municipality” means a city, county or other unit of local government otherwise authorized by law to administer a building code.

(5) “One and Two Family Dwelling Code” means the adopted specialty code prescribing standards for the construction of one and two family dwellings.

(6) “Prefabricated structure” means a building or subassembly [which] that has been in whole or substantial part manufactured or assembled using closed construction at an off-site location to be wholly or partially assembled on-site[; but]. “Prefabricated structure” does not include a manufactured [structure] dwelling, recreational structure or recreational vehicle, as those terms are defined in ORS 446.003.

(7) “Specialty code” means a code of regulations adopted under ORS 446.062, 446.185, 447.020 (2), 455.020 (2), 455.610, 455.680, 460.085, 460.360, 479.730 (1) or 480.545; but does not include regulations adopted by the State Fire Marshal pursuant to ORS chapter 476 or ORS 479.010 to 479.200 and 479.210 to 479.220.

(8) “State building code” means the combined specialty codes.

(9) “Structural code” means the specialty code prescribing structural standards for building construction.

(10) “Unsafe condition” means a condition caused by earthquake which is determined by the department or any representative of the department to be dangerous to life and property. “Unsafe condition” includes but is not limited to:

(a) Any portion, member or appurtenance of a building that has become detached or dislodged or appears likely to fail or collapse and thereby injure persons or damage property; or

(b) Any portion, of a building or structure that has been damaged by earthquake, or by fire or explosion resulting from an earthquake, to the extent that the structural strength or stability of the building is substantially less than it was prior to the earthquake.

SECTION 75a. ORS 455.230 is amended to read:

455.230. (1) Except as otherwise provided by law, all moneys appropriated or credited to the Consumer and Business Services Fund and received under this chapter, ORS 447.010 to 447.156, 447.992, 460.005 to 460.175, 460.310 to 460.370, 479.510 to 479.945, 479.995, 480.510 to 480.670 and ORS chapter 693 hereby are appropriated continuously for and shall be used by the director for the purpose of carrying out the duties and responsibilities imposed upon the department under this chapter, ORS 447.010 to 447.156, 447.992, 460.005 to 460.175, 460.310 to 460.370, 479.510 to 479.945, 479.995, 480.510 to 480.670 and ORS chapter 693 and sections 9 to 23a and 25 to 43 of this 2003 Act.

(2) Except as otherwise provided by law, all moneys appropriated or credited to the Consumer and Business Services Fund and received under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) and sections 9 to 23a and 25 to 43 of this 2003 Act hereby are appropriated continuously for and shall be used by the director for the purpose of carrying out the duties and responsibilities imposed upon the department under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420[,] and sections 9 to 23a and 25 to 43 of this 2003 Act, and education and training programs pertaining thereto[, and rules adopted thereunder, without regard to the source of the moneys].

SECTION 76. ORS 455.895 is amended to read:

455.895. (1)(a) The State Plumbing Board may impose a civil penalty against a person as provided under ORS 447.992 and 693.992. Amounts recovered under this paragraph are subject to ORS 693.165.

(b) The Electrical and Elevator Board may impose a civil penalty against a person as provided under ORS 479.995. Amounts recovered under this paragraph are subject to ORS 479.850.

(c) The Board of Boiler Rules may impose a civil penalty against a person as provided under ORS 480.670. Amounts recovered under this paragraph shall be deposited to the General Fund.

(2) The Director of the Department of Consumer and Business Services, in consultation with the appropriate board, if any, may impose a civil penalty against any person who violates any provision of ORS 446.003 to 446.200, 446.225 to 446.285, 446.395 to 446.420, 479.510 to 479.945, 479.950, 479.995 and 480.510 to 480.670 and this chapter and ORS chapters 447, 460 and 693 and sections 9 to 23a and 25 to 39 of this 2003 Act, or any rule adopted or order issued for the administration and enforcement of those provisions. Except as provided in subsections (3) and (8) of this section or section 47c of this 2003 Act, a civil penalty imposed under this section must be in an amount determined by the appropriate board or the director of not more than $5,000 for each offense or, in the case of a continuing offense, not more than $1,000 for each day of the offense.

(3) Each violation of ORS 446.003 to 446.200 or 446.225 to 446.285, or any rule or order issued thereunder, constitutes a separate violation with respect to each manufactured structure or with respect to each failure or refusal to allow or perform an act required thereby, except that the maximum civil penalty may not exceed $1 million for any related series of violations occurring within one year from the date of the first violation.

(4) The maximum penalty established by this section for a violation may be imposed only upon a finding that the person has engaged in a pattern of violations. The Department of Consumer and Business Services, by rule, shall define what constitutes a pattern of violations. Except as provided in [subsection (1)] subsections (1) and (9) of this section, moneys received from any civil penalty under this section are appropriated continuously for and shall be used by the director for enforcement and administration of provisions and rules described in subsection (2) of this section.

(5) Civil penalties under this section shall be imposed as provided in ORS 183.090.

(6) A civil penalty imposed under this section may be remitted or reduced upon such terms and conditions as the director or the appropriate board considers proper and consistent with the public health and safety. In any judicial review of a civil penalty imposed under this section, the court may, in its discretion, reduce the penalty.

(7) Any officer, director, shareholder or agent of a corporation, or member or agent of a partnership or association, who personally participates in or is an accessory to any violation by the partnership, association or corporation of a provision or rule described in subsection (2) of this section is subject to the penalties prescribed in this section.

(8) In addition to the civil penalty set forth in subsection (1) or (2) of this section, any person who violates a provision or rule described in subsection (2) of this section may be required by the director or the appropriate board to forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director or board that shall not exceed five times the amount by which such person profited in any transaction that violates a provision or rule described in subsection (2) of this section.

(9) If a civil penalty is imposed for a violation of a provision of sections 9 to 23a of this 2003 Act and the violation relates to a filing or failure to file with a county assessor functioning as agent of the department, the department, after deducting an amount equal to the department’s procedural, collection and other related costs and expenses, shall forward one-half of the remaining civil penalty amount to the county in which the manufactured structure is located at the time of the violation.

SECTION 76a. ORS 458.005 is amended to read:

458.005. As used in ORS 458.005 and 458.015 to 458.065, unless the context requires otherwise:

(1) “Distressed area” means a primarily residential area of a city designated by a city under ORS 458.015 which, by reason of deterioration, inadequate or improper facilities, the existence of unsafe or abandoned structures, including but not limited to a significant number of vacant or abandoned single or multifamily residential units, or any combination of these or similar factors, is detrimental to the safety, health and welfare of the community. Each city that adopts, by resolution or ordinance, ORS 308.450 to 308.481, shall adopt rules specifying the process for determining the boundaries of a distressed area and for distressed area boundary changes. At no time shall the cumulative land area within the boundaries of distressed areas within a city, determined for purposes of ORS 458.005 and 458.015 to 458.065, exceed 20 percent of the total land area of the city.

(2) “Governing body” means the city legislative body having jurisdiction over the property for which an exemption may be applied for under ORS 458.005 and 458.015 to 458.065.

(3) “Single-unit housing unit” means a newly constructed structure having only one dwelling unit that:

(a) Is, or will be, at the time that construction is completed, in conformance with all local plans and planning regulations, including special or district-wide plans developed and adopted pursuant to ORS chapters 195, 196, 197 and 227.

(b) Is constructed on or after January 1, 1990, and is completed within two years after application for exemption is approved under ORS 458.040 or before July 1, 2003, whichever is earlier.

(d) Upon completion, has a market value (land and improvements) of no more than 120 percent, or a lesser percent as adopted by the governing body by resolution, of the median sales price of single family homes located within the city. Prior to January 1 of each year, the governing body shall adopt by resolution the median sales price to be used for purposes of this paragraph during the next calendar year. In determining median sales price the governing body, assisted by the county assessor, shall use the sales data collected under ORS 309.200 in the county in which the greater portion of the taxable assessed value of the city is located for the period ending the prior November 30 relative to single family homes. In addition, the governing body may use data made available by the real estate and construction or other appropriate industry.

(e)(A) Is not a manufactured structure as defined in [ORS 801.333] section 8 of this 2003 Act, or a floating home, as defined in ORS 830.700.

(B) Notwithstanding subparagraph (A) of this paragraph, a “single-unit housing unit” includes a “manufactured home” as described under ORS 197.307 (5)(a) to (f).

(4) “Structure” does not include the land, nor any site development to the land, as both are defined under ORS 307.010.

SECTION 77. ORS 468B.085 is amended to read:

468B.085. Subject to ORS 468B.083, [no] a person, including a person in the possession or control of [any] land, [shall] may not deposit, discard or place [any] the chassis, body or shell of a motor vehicle as defined by ORS 801.360, [or of any] a vehicle as defined by ORS 801.590, a manufactured structure as defined in section 8 of this 2003 Act or parts and accessories thereof, including tires, into the waters of the state for any purpose, or deposit, discard or place such materials in a location where [they may be] the materials are likely to escape or be carried into the waters of the state by any means.

SECTION 78. ORS 479.260 is amended to read:

479.260. (1) [No] A person [shall] may not convey fee title to any real property that includes a dwelling unit or lodging house, or transfer possession of any dwelling unit or lodging house pursuant to a land sale contract, unless there is installed in the dwelling unit or lodging house a smoke detector or the required number of approved smoke alarms, installed in accordance with the state building code and rules of the State Fire Marshal adopted under ORS 479.295. The smoke alarms required by this subsection [shall] must meet the requirements of ORS 479.297.

(2)(a) [No] A person [shall] may not convey [title] ownership or transfer possession of any manufactured dwelling, as defined in ORS 446.003, unless there is installed in the manufactured dwelling the required number of approved smoke alarms or smoke detectors, installed in accordance with the state building code or with the federal manufactured dwelling construction and safety standards adopted under ORS 446.155.

(b) A smoke alarm installed in a manufactured dwelling that is resold by a person other than the manufacturer or authorized dealer [shall] must meet the requirements of ORS 479.297.

SECTION 79. ORS 479.265 is amended to read:

479.265. Any purchaser or transferee of a dwelling unit who is aggrieved by a violation of ORS 479.260 may bring an individual action in an appropriate court to recover actual damages or $50, whichever is greater. In any action brought by a person under this section, the court may award to the prevailing party, in addition to the relief provided in this section, reasonable attorney fees at trial and on appeal and costs. Actions brought under this section [shall] must be commenced within one year of the date of sale or transfer. Notwithstanding the provisions of this section, violation of ORS 479.260 [shall] does not affect the transfer of the title, ownership or possession of the dwelling unit.

SECTION 80. ORS 646.400 is amended to read:

646.400. As used in this section and ORS 646.402:

(1) “Base price” means the total retail cost of the following unless separately disclosed as described in ORS 646.402 (2):

(a) The manufactured dwelling as provided by the manufacturer;

(b) Features added by the dealer, if any;

(d) Delivery and installation as stated in the purchase agreement.

(2) “Buyer” means a person who buys or agrees to buy a manufactured dwelling.

(3) “Improvements” means goods and services not included in the base price that are, in general, needed to prepare a site and complete the setup of a manufactured dwelling. “Improvements” includes, but is not limited to, permits, site preparation, sidewalks, concrete, utility connections, skirting, steps, railings, decks, awnings, carports, garages, sheds, gutters, downspouts, rain drains, heat pumps, air conditioning, basements, plants and landscaping, installation fees and system development charges.

(4) “Manufactured dwelling” has the meaning given that term in ORS 446.003.

(5) “Manufactured dwelling dealer” or “dealer” means a person [selling] who sells a manufactured dwelling [while acting as a dealer regulated under ORS chapter 822] in a manner that makes the person subject to the license requirement of section 26 of this 2003 Act.

(6) “Purchase agreement” means the written contract between the manufactured dwelling dealer and the buyer for the purchase of a manufactured dwelling. “Purchase agreement” does not include documents of a retail installment contract or loan agreement entered into as part of the purchase transaction.

SECTION 81. ORS 646.402 is amended to read:

646.402. (1) A manufactured dwelling dealer who sells a manufactured dwelling shall use a purchase agreement form that complies with this section and rules adopted in accordance with ORS 646.404.

(2) The purchase agreement shall include the base price and a written itemization that clearly and conspicuously discloses the retail prices of the following, if not included in the base price:

(a) Manufactured dwelling options that are ordered by the buyer.

(b) The amount of any refundable or nonrefundable administrative or processing fees paid to or collected by the dealer and the circumstances under which the fees may be returned to the buyer.

(c) The amount of any earnest money paid and the circumstances under which the earnest money may be returned to the buyer.

(d) Improvements provided by the dealer, or by a third party at the request of the dealer, to the extent known to the dealer at the time of sale. The written itemization of improvements under this paragraph excuses the provider making the improvements from compliance with ORS 90.518 (1).

(e) All loan fees and credit report fees paid to or collected by the dealer to obtain financing for the buyer’s purchase of the manufactured dwelling and the circumstances under which the fees may be returned to the buyer.

(f) Alterations and upgrades to the manufactured dwelling made by the dealer or by a third party at the request of the dealer.

(g) Goods and services provided by the dealer, or by a third party at the request of the dealer, that are not otherwise disclosed pursuant to this section.

[(h) Registration and other charges for transferring title to the manufactured dwelling.]

(h) Fees for the issuance or updating of an ownership document.

(i) The extended warranty contract, if any.

(j) Delivery, installation or site access costs that are not otherwise disclosed pursuant to this section, if any.

(3) The purchase agreement form must be accompanied by a list, provided by the Department of Justice, of governmental consumer protection agencies having jurisdiction over manufactured dwelling issues.

(4) Failure of a manufactured dwelling dealer to use a purchase agreement form that complies with this section and rules adopted in accordance with ORS 646.404 is an unlawful practice under ORS 646.608.

(5) Except as provided in ORS 41.740, a purchase agreement is considered to contain all of the terms of the contract between the buyer and the manufactured dwelling dealer. No evidence of the terms of the contract may be presented other than the contents of the purchase agreement. As used in this subsection, “contract” does not include a retail installment contract or loan agreement entered into as part of a purchase transaction.

SECTION 82. ORS 646.648 is amended to read:

646.648. (1) As used in this section:

(a) “Buyer” means a person who buys or agrees to buy a manufactured dwelling from a manufactured dwelling dealer.

(b) “Cash sale price” means the price for which a manufactured dwelling dealer would sell to a buyer, and the buyer would buy from a dealer, a manufactured dwelling that is covered by a purchase agreement, if the sale were a sale for cash instead of a retail installment sale.

(d) “Manufactured dwelling dealer” means a [vehicle dealer issued a certificate under ORS 822.020 who sells a manufactured dwelling] person licensed under section 28 or 29 of this 2003 Act or a temporary manufactured structure dealer licensee under section 29a of this 2003 Act.

(e) “Retail installment sale” has the meaning given that term in ORS 83.510.

(2) A manufactured dwelling dealer engages in an unlawful practice when, in a sale of a manufactured dwelling, the dealer does any of the following:

(a) Misrepresents to a buyer that, as a condition of financing, the buyer must purchase:

(A) Credit life insurance;

(B) Credit disability insurance;

(D) Credit property insurance;

(E) Health insurance;

(F) Life insurance; or

(G) An extended warranty.

(b) In close connection with the sale, misrepresents to a lender:

(A) The cash sale price;

(B) The amount of the buyer’s down payment; or

SECTION 83. ORS 646.877 is amended to read:

646.877. (1) As used in this section:

(a) “Buyer” means the purchaser or lessee of a motor vehicle.

(b) “Motor vehicle” means a motor vehicle, as defined in ORS 801.360, that is sold in this state for personal, family or household purposes.

(c) “Seller” means a holder of a current, valid vehicle dealer certificate issued under ORS 822.020 or renewed under ORS 822.040. [“Seller” does not include a dealer engaged primarily in the sale of manufactured homes.]

(2) A seller may make an offer to sell a motor vehicle to a buyer or prospective buyer that is subject to future acceptance by a lender that may finance the transaction at the request of the seller.

(3) In any transaction described in subsection (2) of this section, if the seller has accepted a trade-in motor vehicle from the buyer or prospective buyer, the seller shall not sell the buyer’s or prospective buyer’s trade-in motor vehicle before the seller has obtained from the lender written acceptance or approval of the exact terms negotiated between the seller and the buyer or prospective buyer.

(4) In any transaction described in subsection (2) of this section, if no lender agrees to finance the transaction on the exact terms negotiated between the seller and the buyer, the seller shall return to the buyer all items of value received from the buyer as part of the transaction.

(5) In any transaction described in subsection (2) of this section, if the buyer has accepted a motor vehicle from the seller, and no lender agrees to finance the transaction on the exact terms negotiated between the seller and the buyer, the buyer shall return to the seller all items of value received from the seller as part of the transaction. The offer or contract to sell the motor vehicle may provide in writing that the buyer is liable to the seller for:

(a) The fair market value of damage to, excessive wear and tear on or loss of the motor vehicle occurring between the date the buyer takes possession of the motor vehicle and the date the buyer returns the motor vehicle to the seller’s custody; and

(b) A reasonable charge per mile for the use of the motor vehicle occurring between the date the buyer takes possession of the motor vehicle and the date the buyer returns the motor vehicle to the seller’s custody. The charge shall not exceed the rate per mile allowed under federal law as a deduction for federal income tax purposes for an ordinary and necessary business expense.

SECTION 84. ORS 696.800 is amended to read:

696.800. As used in ORS 696.392, 696.600 to 696.785, 696.800 to 696.855 and 696.995, unless the context requires otherwise:

(1) “Agent” means:

(a) A real estate broker or principal real estate broker who has entered into:

(A) A listing agreement with a seller;

(B) A service contract with a buyer to represent the buyer; or

(b) A person licensed under ORS 696.022 who has entered into a written contract with a real estate broker or principal real estate broker to act as the broker’s agent in connection with acts requiring a real estate license and to function under the broker’s supervision.

(2) “Buyer” means a potential transferee in a real property transaction, and includes a person who:

(a) Executes an offer to purchase real property from a seller through an agent; or

(b) Enters into an exclusive representation contract or buyer’s service agreement with a real estate broker or principal real estate broker, whether or not a sale or transfer of property results.

(3) “Confidential information” means information communicated to a real estate licensee or the licensee’s agent by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

(a) The buyer instructs the licensee or the licensee’s agent to disclose about the buyer to the seller or the seller instructs the licensee or the licensee’ agent to disclose about the seller to the buyer; and

(b) The licensee or the licensee’s agent knows or should know failure to disclose would constitute fraudulent representation.

(4) “Disclosed limited agency” means a real property transaction in which the representation of a buyer and seller or the representation of two buyers occurs within the same real estate business.

(5) “Listing agreement” means a contract between a seller of real property and a real estate broker or principal real estate broker by which the broker has been authorized to act as an agent of the seller for compensation to offer the real property for sale or to find and obtain a buyer.

(6) “Listing price” means the amount expressed in dollars, specified in the listing agreement, for which the seller is willing to sell the real property through the listing agent.

(7) “Offer” means a written proposal executed by a buyer for the sale or lease of real property.

(8) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.

(9) “Principal” means the person who has permitted or directed an agent to act on the principal’s behalf. In a real property transaction, this generally means the buyer or the seller.

(10) “Real property” means any estate in real property, including a condominium as defined in ORS 100.005, a timeshare property as defined in ORS 94.803 and the granting of an option or right of first refusal. “Real property” also includes a [mobile home or manufactured dwelling] manufactured structure, as defined in section 8 of this 2003 Act, owned by the same person who owns the land upon which the [mobile or manufactured home] manufactured structure is situated. “Real property” does not include a leasehold in real property.

(11) “Real property transaction” means a transaction regarding real property in which an agent is employed by one or more of the principals to act in that transaction and includes but is not limited to listing agreements, buyer’s service agreements, exclusive representation contracts and offers to purchase.

(12) “Sale” or “sold” refers to a transaction for the transfer of real property from the seller to the buyer and includes:

(a) Exchanges of real property between the seller and the buyer and third parties; and

(b) Land sales contracts.

(13) “Seller” means a potential transferor in a real property transaction and includes an owner:

(a) Who enters into a listing agreement with a real estate broker or principal real estate broker, whether or not a transfer results; or

(b) Who receives an offer to purchase real property, of which the seller is the owner, from an agent acting on behalf of a buyer.

SECTION 84a. ORS 705.145 is amended to read:

705.145. (1) There is created in the State Treasury a fund to be known as the Consumer and Business Services Fund, separate from the General Fund. All moneys collected or received by the Department of Consumer and Business Services, except moneys collected pursuant to ORS 735.612 and those moneys required to be paid into the Workers’ Benefit Fund, shall be paid into the State Treasury and credited to the Consumer and Business Services Fund. Moneys in the fund may be invested in the same manner as other state moneys and any interest earned shall be credited to the fund.

(2) The department shall keep a record of all moneys deposited in the Consumer and Business Services Fund that shall indicate, by separate account, the source from which the moneys are derived, the interest earned and the activity or program against which any withdrawal is charged.

(3) Should moneys credited to any one account be withdrawn, transferred or otherwise used for purposes other than the program or activity for which the account is established, interest shall accrue on the amount withdrawn from the date of withdrawal and until such funds are restored.

(4) Moneys in the fund shall provide and are appropriated for the administrative expenses of the department and for its expenses in carrying out its functions and duties under any provision of law.

(5) Except as provided in ORS 705.165, it is the intention of the Legislative Assembly that the performance of the various duties and functions of the department in connection with each of its programs shall be financed by the fees, assessments and charges established and collected in connection with those programs.

(6) There is created by transfer from the Consumer and Business Services Fund a revolving administrative account in the amount of $100,000. The revolving account shall be disbursed by checks or orders issued by the director or the Workers’ Compensation Board and drawn upon the State Treasury, to carry on the duties and functions of the department and the board. All checks or orders paid from the revolving account shall be reimbursed by a warrant drawn in favor of the department charged against the Consumer and Business Services Fund and recorded in the appropriate subsidiary record.

(7) For the purposes of ORS chapter 656, the revolving account created pursuant to subsection (6) of this section may also be used to:

(a) Pay compensation benefits; and

(b) Refund to employers amounts paid to the Consumer and Business Services Fund in excess of the amounts required by ORS chapter 656.

(8) Notwithstanding subsections (2), (3) and (5) of this section, the moneys derived pursuant to ORS 446.003 to 446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) and sections 9 to 23a and 25 to 43 of this 2003 Act and deposited to the fund, interest earned on those moneys and withdrawals of moneys for activities or programs under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420 and sections 9 to 23a and 25 to 43 of this 2003 Act, or education and training programs pertaining thereto, must be assigned to a single account within the fund.

(9) Notwithstanding subsections (2), (3) and (5) of this section, the moneys derived pursuant to ORS 455.240 or 460.370 or from state building code or specialty code program fees for which the amount is established by department rule pursuant to ORS 455.020 (2) and deposited to the fund, interest earned on those moneys and withdrawals of moneys for activities or programs described under ORS 455.240 or 460.310 to 460.370 and sections 9 to 23a and 25 to 43 of this 2003 Act, structural or mechanical specialty code programs or activities for which a fee is collected under ORS 455.020 (2), or programs described under subsection (10) of this section that provide training and education for persons employed in producing, selling, installing, delivering or inspecting manufactured structures or manufactured dwelling parks or recreation parks, must be assigned to a single account within the fund.

(10) Notwithstanding ORS chapter 279, the department may, after consultation with the appropriate specialty code advisory boards established under ORS 446.280, 455.132, 455.138, 480.535 and 693.115, contract for public or private parties to develop or provide training and education programs relating to the state building code and associated licensing or certification programs.

SECTION 84b. ORS 801.020 is amended to read:

801.020. This section contains statements of purpose or intent that are applicable to portions of the vehicle code as described in the following:

(1) The provisions of the vehicle code and other statutory provisions described in this subsection are an exercise of the police powers of this state, and the purpose, object and intent of the sections is to provide a comprehensive system for the regulation of all motor and other vehicles in this state. This subsection is applicable to the following:

[(a) Those portions of ORS 308.865 relating to the duties of the Department of Transportation.]

[(b)] (a) Those provisions of the vehicle code relating to the administration of the department.

[(c)] (b) Those provisions of the vehicle code relating to the registration and titling of vehicles.

[(d)] (c) Those provisions of the vehicle code relating to the regulation of the businesses of vehicle dealers, wreckers, vehicle transporters, driver training schools and instructors and the towing and recovery of vehicles.

[(e)] (d) Those provisions relating to the transfer and alteration of vehicles.

(2) It is the policy of this state to promote and encourage the fullest possible use of its highway system by authorizing the making and execution of motor vehicle reciprocal or proportional registration agreements, arrangements and declarations with other states, provinces, territories and countries with respect to vehicles registered in this and such other states, provinces, territories and countries, thus contributing to the economic and social development and growth of this state.

(3) The provisions described in this subsection shall be applicable and uniform throughout this state and in all political subdivisions and municipalities therein and on the ocean shore which has been or may hereafter be declared a state recreation area. This subsection applies to provisions of the vehicle code relating to abandoned vehicles, vehicle equipment, regulation of vehicle size, weight and load, the manner of operation of vehicles and use of roads by persons, animals and vehicles.

(4) The provisions of the vehicle code applicable to drivers of vehicles upon the highways shall apply to the drivers of all vehicles owned or operated by the United States, this state or any county, city, district or any other political subdivision of this state, subject to such specific exceptions as are set forth in the vehicle code.

(5) Except as provided otherwise by federal law, the provisions of the vehicle code shall be applicable and uniform on federal lands within this state.

(6) Except as provided otherwise by federal law, traffic rules and regulations which are promulgated by a federal authority having jurisdiction over federal lands within this state and which vary from the provisions of the vehicle code shall be the law of the local authority within whose boundaries the federal land is located, and enforceable as such, if:

(a) Local authorities are authorized to vary in the same manner under the provisions of the vehicle code; and

(b) Prior approval for the variance has been obtained by the federal authority from the governing body of the local authority within whose boundaries the federal land is located.

(7) The vehicle code shall govern the construction of and punishment for any vehicle code offense committed after June 27, 1975, the construction and application of any defense to a prosecution for such an offense and any administrative proceedings authorized or affected by the vehicle code.

(8) When all or part of a vehicle code statute is amended or repealed, the statute or part thereof so amended or repealed remains in force for the purpose of authorizing the accusation, prosecution, conviction and punishment of a person who violated the statute or part thereof before the effective date of the amending or repealing Act.

(9) The provisions of the vehicle code described in this subsection relating to the operation of vehicles refer exclusively to operation of vehicles upon highways and the ocean shore which has been or may hereafter be declared to be a state recreation area, except where the vehicle code specifically provides otherwise. This subsection applies to the provisions of the vehicle code relating to abandoned vehicles, vehicle equipment, regulation of vehicle size, weight and load, the manner of operation of vehicles and use of roads by persons, animals and vehicles.

(10) All reciprocity and proportional registration agreements, arrangements and declarations relating to vehicles, in force and effect on August 22, 1969, shall continue in force and effect until specifically amended or revoked as provided by law or by such arrangements or agreements.

(11) It is hereby declared to be the policy of this state:

(a) To provide maximum safety for all persons who travel or otherwise use the public highways of this state;

(b) To deny the privilege of operating motor vehicles on the public highways to persons who by their conduct and record have demonstrated their indifference for the safety and welfare of others and their disrespect for the laws of the state, the orders of its courts and the statutorily required acts of its administrative agencies; and

(c) To discourage repetition of criminal acts by individuals against the peace and dignity of the state and its political subdivisions and to impose increased and added deprivation of the privilege to operate motor vehicles upon habitual offenders who have been convicted repeatedly of violations of traffic laws.

(12) If any of the provisions under ORS 818.200 relating to variance permits are found to contravene section 127 of title 23, United States Code, it shall not serve to render inoperative any remaining of such provisions that may be held not to conflict with that federal law.

SECTION 85. ORS 801.041 is amended to read:

801.041. The following apply to the authority granted to counties by ORS 801.040 to establish registration fees for vehicles:

(1) An ordinance establishing registration fees under this section must be enacted by the county imposing the registration fee and filed with the Department of Transportation. Any ordinance establishing registration fees that is enacted by the governing body of a county must be submitted to the electors of the county for their approval. The governing body of the county imposing the registration fee shall enter into an intergovernmental agreement under ORS 190.010 with the department by which the department shall collect the registration fees, pay them over to the county and, if necessary, allow the credit or credits described in ORS 803.445 (5). The intergovernmental agreement [shall] must state the date on which the department shall begin collecting registration fees for the county.

(2) The authority granted by this section allows the establishment of registration fees in addition to those described in ORS 803.420. There is no authority under this section to affect registration periods, qualifications, cards, plates, requirements or any other provision relating to vehicle registration under the vehicle code.

(3) Except as otherwise provided for in this subsection, when registration fees are imposed under this section, they [shall] must be imposed on all vehicle classes. Registration fees as provided under this section [shall] may not be imposed on the following:

(a) Snowmobiles and Class I all-terrain vehicles.

[(b) Manufactured structures.]

[(c)] (b) Fixed load vehicles.

[(d)] (c) Vehicles registered under ORS 805.100 to disabled veterans.

[(e)] (d) Vehicles registered as antique vehicles under ORS 805.010.

[(f)] (e) Vehicles registered as vehicles of special interest under ORS 805.020.

[(g)] (f) Government-owned or operated vehicles registered under ORS 805.040 or 805.045.

[(h)] (g) School buses or school activity vehicles registered under ORS 805.050.

[(i)] (h) Law enforcement undercover vehicles registered under ORS 805.060.

[(j)] (i) Vehicles registered on a proportional basis for interstate operation.

[(k)] (j) Vehicles with a registration weight of 26,001 pounds or more described in ORS 803.420 (10) or (11).

[(L)] (k) Vehicles registered as farm vehicles under the provisions of ORS 805.300.

[(m)] (L) Travel trailers, campers and motor homes.

(4) Any registration fee imposed by a county [shall] must be a fixed amount not to exceed, with respect to any vehicle class, the registration fee established under ORS 803.420 (1). For vehicles on which a flat fee is imposed under ORS 803.420, the fee [shall] must be a whole dollar amount.

(5) Moneys from registration fees established under this section [shall] must be paid to the county establishing the registration fees as provided in ORS 802.110. The county ordinance shall provide for payment of at least 40 percent of the money to cities within the county unless a different distribution is agreed to between the county and the cities within the jurisdiction of the county. The moneys shall be used for any purpose for which moneys from registration fees may be used.

(6) Two or more counties may act jointly to impose a registration fee under this section. The ordinance of each county acting jointly with another under this subsection [shall] must provide for the distribution of moneys collected through a joint registration fee.

(7) Before the governing body of a county that overlaps a district can impose a registration fee under this section, it must enter into an intergovernmental agreement under ORS 190.010 with the governing bodies of that district and all counties, other districts and cities with populations of over 300,000 that overlap the district. The intergovernmental agreement must state the registration fees and, if necessary, how the revenue from the fees [shall] are to be apportioned among the counties and the districts. Before the governing body of a county can enter into such an intergovernmental agreement, the county shall consult with the cities in its jurisdiction.

SECTION 86. ORS 801.042 is amended to read:

801.042. The following apply to the authority granted to a district by ORS 801.040 to establish registration fees for vehicles:

(1) Before the governing body of a district can impose a registration fee under this section, it must submit the proposal to the electors of the district for their approval and, if the proposal is approved, enter into an intergovernmental agreement under ORS 190.010 with the governing bodies of all counties, other districts and cities with populations of over 300,000 that overlap the district. The intergovernmental agreement must state the registration fees and, if necessary, how the revenue from the fees shall be apportioned among counties and the districts. Before the governing body of a county can enter into such an intergovernmental agreement, the county shall consult with the cities in its jurisdiction.

(2) If a district raises revenues from a registration fee for purposes related to highways, roads, streets and roadside rest areas, the governing body of that district shall establish a Regional Arterial Fund and shall deposit in the Regional Arterial Fund all such registration fees.

(3) Interest received on moneys credited to the Regional Arterial Fund shall accrue to and become a part of the Regional Arterial Fund.

(4) The Regional Arterial Fund [shall] must be administered by the governing body of the district referred to in subsection (2) of this section and such governing body by ordinance may disburse moneys in the Regional Arterial Fund. Moneys within the Regional Arterial Fund may be disbursed only for a program of projects recommended by a joint policy advisory committee on transportation consisting of local officials and state agency representatives designated by the district referred to in subsection (2) of this section. The projects for which the joint policy advisory committee on transportation can recommend funding must concern arterials, collectors or other improvements designated by the joint policy advisory committee on transportation.

(5) Ordinances establishing registration fees under this section must be filed with the Department of Transportation. The governing body of the district imposing the registration fee shall enter into an intergovernmental agreement under ORS 190.010 with the department by which the department shall collect the registration fees, pay them over to the district and, if necessary, allow the credit or credits described in ORS 803.445 (5). The intergovernmental agreement [shall] must state the date on which the department shall begin collecting registration fees for the district.

(6) The authority granted by this section allows the establishment of registration fees in addition to those described in ORS 803.420. There is no authority under this section to affect registration periods, qualifications, cards, plates, requirements or any other provision relating to vehicle registration under the vehicle code.

(7) Except as otherwise provided for in this subsection, when registration fees are imposed under this section, [they shall] the fees must be imposed on all vehicle classes. Registration fees as provided under this section [shall] may not be imposed on the following: