SB 519-A7

(LC 1757)
5/25/11 (TSB/ps)

PROPOSED AMENDMENTS TO
A-ENGROSSED SENATE BILL 519

1 On page 1 of the printed A-engrossed bill, line 2, after “ORS” delete the
2 rest of the line and line 3 and insert “86.705, 86.735, 86.755, 86.780, 130.005
3 and 456.280; and declaring an emergency.”.
4 In line 9, after the first comma insert “including an agent or nominee for
5 the owner or holder of the obligation secured by the trust deed,”.
6 On page 2, after line 1, insert:
7 “SECTION 2. ORS 86.735 is amended to read:
8 “86.735. [The] A trustee may foreclose a trust deed by advertisement and
9 sale in the manner provided in ORS 86.740 to 86.755 if:
10 “(1) The trust deed[, any assignments of the trust deed by the trustee or the
11 beneficiary] and any appointment of a successor trustee or assignment of
12 the trust deed that is necessary to establish in the mortgage record
13 the identity of the trustee or beneficiary that performs an act required
14 or permitted under ORS 86.705 to 86.795 are recorded in the mortgage re-
15 cords in the counties in which the property described in the deed is situated;
16 [and]
17 “(2) [There is a default by] The grantor or other person, or the grantor’s
18 or person’s successor in interest, [owing] defaults on an obligation[, the
19 performance of which is secured by] for which the trust deed[, or by their
20 successors in interest] secures performance and with respect to [any]
21 which a provision in the deed [which] authorizes sale in the event of default
22 [of such provision]; [and]
 1 “(3) The trustee or beneficiary has filed for [record] recording in the
2 county clerk’s office in each county where the trust property, or some part
3 of [it] the trust property, is situated[,] a notice of default containing the
4 information required by ORS 86.745 and containing the trustee’s or
5 beneficiary’s election to sell the property to satisfy the obligation; and
6 “(4) [No] An action has not been instituted to recover the debt or any
7 part of [it then remaining] the debt that remains secured by the trust deed,
8 or, if [such] an action has been instituted, the action has been dismissed,
9 except that:
10 “(a) Subject to ORS 86.010 and the procedural requirements of ORCP 79
11 and 80, an action may be instituted to appoint a receiver or to obtain a
12 temporary restraining order during foreclosure of a trust deed by advertise-
13 ment and sale, except that a receiver [shall] may not be appointed with re-
14 spect to a single-family residence [which is occupied as the principal residence
15 of] that the grantor, the grantor’s spouse or the grantor’s minor or depend-
16 ent child occupies as a principal residence.
17 “(b) An action may be commenced for the judicial or nonjudicial foreclo-
18 sure of the same trust deed as to any other property covered [thereby] by the
19 trust deed, or any other trust deeds, mortgages, security agreements or
20 other consensual or nonconsensual security interests or liens securing re-
21 payment of the debt.”.
22 Delete lines 2 through 45 and delete pages 3 through 5.
23 On page 6, delete lines 1 through 12.
24 In line 13, delete “5” and insert “3”.
25 Delete lines 23 through 30 and insert:
26 “(b) If the trustee sells property upon which a single residential unit that
27 is subject to an affordable housing covenant is situated, the eligible covenant
28 holder may purchase the property from the trustee at the trustee’s sale for
29 cash or cash equivalent in an amount that is the lesser of:
30 “(A) The sum of the amounts payable under ORS 86.765 (1) and (2); or

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Proposed Amendments to A-Eng. SB 519 Page 2
 1 “(B) The highest bid received for the property other than a bid from the
2 eligible covenant holder.
3 “(c)(A) Except as provided in subparagraph (B) of this paragraph, if an
4 eligible covenant holder purchases the property in accordance with para-
5 graph (b) of this subsection, the sale forecloses and terminates all other in-
6 terests in the property as provided in ORS 86.770 (1).
7 “(B) If an interest in the property exists that is prior to the eligible
8 covenant holder’s interest, other than the interest set forth in the trust deed
9 that was the subject of the foreclosure proceeding under ORS 86.735, not-
10 withstanding the provisions of ORS 86.770 (1) the sale does not foreclose and
11 terminate the prior interest and the eligible covenant holder’s title to the
12 property is subject to the prior interest.”.
13 On page 9, after line 15, insert:
14 “SECTION 4. ORS 86.780 is amended to read:
15 “86.780. (1)(a) [When the] If a trustee’s deed is recorded in the deed re-
16 cords of the county or counties where the property described in the deed is
17 situated, the recitals contained in the deed and in the affidavits required
18 under ORS 86.750 (3) and (4) [shall be] are prima facie evidence in any court
19 of the truth of the matters set forth [therein] in the recitals, but the recitals
20 [shall be] are conclusive in favor of a purchaser for value in good faith [re-
21 lying] that relies upon [them] the recitals.
22 “ (b) A trustee’s deed recorded as provided in paragraph (a) of this
23 subsection is prima facie evidence in any court that all assignments
24 of the trust deed that are required to be recorded under ORS 86.735 are
25 recorded, but the recording is conclusive in favor of a purchaser for
26 value in good faith that relies upon the recording of the trustee’s deed.
27 “(2) A trustee’s sale that forecloses a trust deed in which a nominee
28 is designated and that is completed before the effective date of this
29 2011 Act is not void or voidable by reason of a failure to record an
30 assignment of the trust deed in conjunction with or in relation to

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 1 designating a nominee.
2 “(3) An instrument that a beneficiary executes is prima facie evi-
3 dence in any court that the beneficiary has authorization to execute
4 the instrument from the person that owns or holds the debt or other
5 obligation that the trust deed secures, but the instrument is conclu-
6 sive in favor of a purchaser for value in good faith that relies on the
7 instrument.”.
8 In line 16, delete “6” and insert “5”.
9 On page 10, line 4, delete “7” and insert “6”.
10 Delete lines 21 and 22 and insert:
11 “(d) Purchase real property at a trustee’s sale under terms set forth in
12 ORS 86.755.”.
13 On page 11, delete lines 20 through 28 and insert:
14 “SECTION 7. (1) The amendments to ORS 86.705, 86.735, 86.755 and
15 86.780 by sections 1 to 4 of this 2011 Act apply to:
16 “(a) Trust deeds that are executed before, on or after the effective
17 date of this 2011 Act; and
18 “(b) Trustee’s sales for which a notice was sent on or after January
19 1, 2012.
20 “(2) The amendments to ORS 456.280 by section 6 of this 2011 Act
21 apply to affordable housing covenants that are created on or after
22 January 1, 2012.
23 “SECTION 8. This 2011 Act being necessary for the immediate
24 preservation of the public peace, health and safety, an emergency is
25 declared to exist, and this 2011 Act takes effect on its passage.”.
26

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