Bill Text: OR HB2569 | 2013 | Regular Session | Enrolled
Bill Title: Relating to conditions for certain trustee's signatures on trust deed documents.
Sponsorship: Committee Bill
Status: (Passed) 2013-05-16 - Chapter 125, (2013 Laws): Effective date January 1, 2014. [HB2569 Detail]
Download: Oregon-2013-HB2569-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2569
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Judiciary
for Oregon State Bar Debtor-Creditor Section)
CHAPTER ................
AN ACT
Relating to conditions for certain trustee's signatures on trust
deed documents; amending ORS 86.705 and 86.790.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 86.705, as amended by section 5, chapter 112,
Oregon Laws 2012, is amended to read:
86.705. As used in ORS 86.705 to 86.795:
(1) 'Affordable housing covenant' has the meaning given that
term in ORS 456.270.
(2) 'Beneficiary' means a person named or otherwise designated
in a trust deed as the person for whose benefit a trust deed is
given, or the person's successor in interest, and who is not the
trustee unless the beneficiary is qualified to be a trustee under
ORS 86.790 (1)(d).
(3) 'Eligible covenant holder' has the meaning given that term
in ORS 456.270.
(4) 'Grantor' means the person that conveys an interest in real
property by a trust deed as security for the performance of an
obligation.
{ + (5) 'Law practice' means a professional corporation,
partnership, limited liability partnership, limited liability
company or sole proprietorship that is engaged in the practice of
law in this state. + }
{ - (5) - } { + (6) + } 'Residential trust deed' means a
trust deed on property upon which are situated four or fewer
residential units, one of which the grantor, the grantor's spouse
or the grantor's minor or dependent child occupies as a principal
residence at the time a default that results in an action to
foreclose the obligation secured by the trust deed first occurs.
{ - (6) - } { + (7) + } 'Residential unit' means an
improvement designed for residential use.
{ - (7) - } { + (8) + } 'Trust deed' means a deed executed
in conformity with ORS 86.705 to 86.795 that conveys an interest
in real property to a trustee in trust to secure the performance
of an obligation the grantor or other person named in the deed
owes to a beneficiary.
{ - (8) - } { + (9) + } 'Trustee' means a person, other
than the beneficiary, to whom a trust deed conveys an interest in
real property, or the person's successor in interest, or an
employee of the beneficiary, if the employee is qualified to be a
trustee under ORS 86.790.
Enrolled House Bill 2569 (HB 2569-A) Page 1
SECTION 2. ORS 86.790 is amended to read:
86.790. (1) The trustee of a trust deed under ORS 86.705 to
86.795 { - shall not be - } { + is not + } required to comply
with the provisions of ORS chapters 707 and 709 and
{ - shall - } { + must + } be:
(a) { - Any - } { + An + } attorney who is an active member
of the Oregon State Bar { + or a law practice that includes an
attorney who is an active member of the Oregon State Bar + };
(b) A financial institution or trust company, as defined in ORS
706.008, that is authorized to do business under the laws of
Oregon or the United States;
(c) A title insurance company authorized to insure title to
real property in this state { - , its - } { + and the + }
subsidiaries, affiliates, insurance producers or branches { + of
the title insurance company + };
(d) The United States or any agency { - thereof - } { + of
the United States + }; or
(e) { - Escrow agents - } { + An escrow agent that is + }
licensed under ORS 696.505 to 696.590.
(2) { + A law practice that, or + } an attorney who { + , + }
is a trustee under subsection (1)(a) of this section may
represent the beneficiary in addition to performing the duties of
trustee.
(3) At any time after { - the - } { + a + } trust deed is
executed, the beneficiary may appoint in writing another
qualified trustee. If the appointment of the successor trustee is
recorded in the mortgage records of the county or counties in
which the trust deed is recorded, the successor trustee
{ - shall be - } { + is + } vested with all the powers of the
original trustee.
(4) A trustee or successor trustee is a necessary and proper
party to any proceeding to determine the validity of { + a trust
deed, + } or { + to + } enjoin any private or judicial
proceeding to foreclose a trust deed, but a trustee or successor
trustee is { - neither - } { + not + } a necessary { - nor
a - } { + or + } proper party to any proceeding to determine
title to the property subject to the trust deed, or to any
proceeding to impose, enforce or foreclose any other lien on the
subject property.
(5) Nothing in ORS 86.705 to 86.795 imposes a duty on the
trustee or successor trustee to notify any person of any
proceeding with respect to { - such - } { + the + } person,
except a proceeding
{ - initiated by - } { + that + } the trustee or successor
trustee { + initiates + }.
(6) A trustee or the attorney for the trustee or any agent
{ - designated by - } the trustee or the attorney { +
designates + } may announce and accept a bid from the beneficiary
whether or not the beneficiary is present at the sale.
(7) The trustee or successor trustee { - shall have - } { +
has + } no fiduciary duty or fiduciary obligation to the grantor
or other persons { - having - } { + that have + } an interest
in the property subject to the trust deed. The trustee or
successor trustee { - shall - } { + may + } not be relieved
of the duty to reconvey the property { + that is + } subject to
the trust deed to the grantor upon { + the beneficiary's + }
request for reconveyance { - by the beneficiary - } .
{ + (8) If a law practice is the trustee under subsection
(1)(a) of this section, an attorney who is an active member of
the Oregon State Bar and is a shareholder, partner, member or
Enrolled House Bill 2569 (HB 2569-A) Page 2
employee of the law practice shall sign on the trustee's behalf
any document that is permitted or required to be signed under ORS
86.705 to 86.795. The attorney who signs the document shall make
evident in the document the attorney's name and Oregon State Bar
number and shall state in the document that the trustee has
authorized the attorney to sign the document on the trustee's
behalf.
(9) If an attorney is the trustee under subsection (1)(a) of
this section, another attorney who is an active member of the
Oregon State Bar and is a shareholder, partner, member or
employee of the law practice in which the attorney practices law
may sign on the trustee's behalf any document that is permitted
or required to be signed under ORS 86.705 to 86.795. The attorney
who signs the document shall make evident in the document the
attorney's name and Oregon State Bar number and shall state in
the document that the trustee has authorized the attorney to sign
the document on the trustee's behalf. + }
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Passed by House March 20, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate May 9, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2569 (HB 2569-A) Page 3
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2569 (HB 2569-A) Page 4
