Oregon Statutes 87.435 – Bond, letter of credit or deposit of money to discharge possessory lien; recording; notice
(1) The owner of papers or personal property subject to a lien created by ORS § 87.430, or any other interested person, may file with the recording officer of the county in which the attorney or other member of the Oregon State Bar licensed to practice law has the attorney’s or member’s principal office a bond executed by a corporation authorized to issue surety bonds in the State of Oregon to the effect that the owner of the papers and personal property against which the lien is claimed shall pay the amount of the claim and all costs which are awarded against the papers and personal property on account of the lien. The bond shall be in an amount not less than 150 percent of the amount claimed under the lien, and must be filed prior to the commencement of a foreclosure proceeding by the attorney or member.
Terms Used In Oregon Statutes 87.435
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- Personal property: All property that is not real property.
(2)(a) In lieu of the surety bond provided for in subsection (1) of this section, a person may deposit with the treasurer of the county in which the attorney or member has the attorney’s or member’s principal office an irrevocable letter of credit issued by an insured institution, as defined in ORS § 706.008, or a sum of money or its equivalent equal in value to 150 percent of the amount claimed under the lien.
(b) When a person deposits money or an irrevocable letter of credit with the treasurer of a county under this subsection, the person shall file with the recording officer of the same county an affidavit stating that the deposit was made.
(3) When a bond is filed under subsection (1) of this section or money or an irrevocable letter of credit deposited and an affidavit filed under subsection (2) of this section, the recording officer shall issue to the owner or other person a certificate stating that the bond, irrevocable letter of credit or money is substituted for the chattel and that the lien on the chattel is discharged.
(4) When a bond is filed under subsection (1) of this section, or money or an irrevocable letter of credit is deposited under subsection (2) of this section, the owner or other person filing the bond or depositing the money shall promptly send a copy of the certificate received from the recording officer under subsection (3) of this section to the attorney or member by registered or certified mail.
(5) If the attorney or member establishes the validity of the lien claim by a suit to enforce it under ORS Chapter 88, the attorney or member is entitled to judgment against the sureties upon the bond, against the irrevocable letter of credit issuer or against the deposited money. [1975 c.648 § 57 (enacted in lieu of 87.495); 1991 c.331 § 18; 1997 c.631 § 390; 2003 c.576 § 337; 2023 c.72 § 38]