Oregon Statutes 87.196 – Notice of foreclosure sale to secured parties; effect of notice; effect of failure to give notice
(1)(a) A lien claimant that forecloses by sale a lien created under ORS § 87.152 to 87.162 shall give notice of the foreclosure sale by first class, registered or certified mail. The following apply:
Terms Used In Oregon Statutes 87.196
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(A) The lien claimant shall give notice to all persons that have filed a financing statement in the office of the Secretary of State, or in the office of the appropriate county officer of the county in which the sale is held, to perfect a security interest in the chattel to be sold.
(B) Notwithstanding subparagraph (A) of this paragraph, if the chattel to be sold at the foreclosure sale is a chattel, other than part of the motor vehicle inventory of a dealer issued a vehicle dealer certificate under ORS § 822.020, for which the Department of Transportation has issued a certificate of title under ORS § 803.045, for which the State Marine Board requires a certificate of title under ORS § 830.810 or for which the Oregon Department of Aviation requires a certificate of registration under ORS § 837.040, the lien claimant needs to give notice only to persons that the certificate of title or certificate of registration indicates have a security interest or lien in the chattel.
(C) The lien claimant shall give notice under this paragraph at least 30 days before the foreclosure sale, but if the lien claimant claims a lien under ORS § 87.152, the lien claimant shall give the notice required by this subsection:
(i) Not later than the 20th day after the date on which the storage charges begin;
(ii) Not later than the 30th day after the date on which the services provided are completed, if no storage charges are imposed; or
(iii) At least 15 days before the foreclosure sale if the lien is for the cost of removing, towing or storing a vehicle that a person who holds a certificate issued under ORS § 819.480 has appraised at a value of $1,000 or less.
(b) A lien claimant that gives notice of a foreclosure sale for chattel described in paragraph (a)(B) of this subsection shall include with the notice a copy of an invoice, work or repair order, authorization for towing, official form that authorizes a law enforcement agency to impound the chattel or any other record or document that is evidence of the basis for the lien.
(2) A person who is entitled to receive notice under subsection (1) of this section may discharge the lien and preserve the person’s security interest in the chattel by paying the lien claimant the amount of the lien claim and reasonable expenses the lien claimant actually incurs in foreclosing the lien claim. If the person does not discharge the lien before the day of the foreclosure sale, the foreclosure sale extinguishes the person’s security interest in the chattel even if the person does not receive notice under subsection (1) of this section.
(3) If a lien claimant does not give notice in accordance with subsection (1) of this section to a person that claims a security interest or lien on the chattel sold at a foreclosure sale, the lien claimant is liable to the person for a sum equal to the fair market value of the chattel sold at the foreclosure sale or the amount due to the person under the security agreement or lien at the time of the foreclosure sale, whichever amount is less. The secured party or other lien claimant may recover the sum and reasonable attorney fees by an action at law. [1975 c.648 § 14; 1981 c.861 § 3; 1983 c.338 § 883; 1993 c.326 § 11; 1995 c.758 § 20; 2005 c.86 § 1; 2005 c.738 § 9; 2014 c.65 § 2; 2017 c.17 § 3]
[Repealed by 1975 c.648 § 72]