75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

                            Enrolled

                        Senate Bill 1013

Sponsored by Senator BONAMICI (Presession filed.)

                     CHAPTER ................

                             AN ACT

Relating to the rights of tenants in foreclosed property;
  creating new provisions; amending ORS 86.745, 86.750 and
  90.300; and declaring an emergency.

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

  SECTION 1. ORS 86.745 is amended to read:
  86.745. The notice of sale shall:
  (1) List the names of the grantor, trustee and beneficiary in
the trust deed, and the mailing address of the trustee.
  (2) Describe the property the trust deed covers.
  (3) Identify the book and page of the mortgage records that
record the trust deed.
  (4) State the default for which the foreclosure is made.
  (5) State the sum owing on the obligation that the trust deed
secures.
  (6) State that the property will be sold to satisfy the
obligation.
  (7) Set forth the date, time and place of the sale.
  (8) State that the right exists under ORS 86.753 to have the
proceeding dismissed and the trust deed reinstated by paying the
entire amount then due, together with costs, trustee's fees and
attorney fees, and by curing any other default complained of in
the notice of default, at any time that is not later than five
days before the date last set for the sale.
  (9)  { + If the property includes one or more dwelling units,
as defined in ORS 90.100, + } include a notice addressed clearly
to any person who occupies the property and who is or might be a
 { +  residential + } tenant. The notice required under this
subsection must:
  (a) Include contact information for the Oregon State Bar and a
person or organization that provides legal help to individuals at
no charge to the individual;
  (b) Include information concerning the right the person has to
notice under ORS 86.755 (5) { + (c) + } and state that the person
may have additional rights under federal law;
  (c) Be set apart from other text in the notice of sale; and
  (d) Be in substantially the following form:
_________________________________________________________________

                       NOTICE TO TENANTS:
  If you are a tenant of this property, foreclosure could affect
your rental agreement. A purchaser who buys this property at a

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 1

foreclosure sale has the right to require you to move out after
giving you notice of the requirement.
  If you do not have a fixed-term lease, the purchaser may
require you to move out after giving you a 30-day notice on or
after the date of the sale.
  If you have a fixed-term lease, you may be entitled to receive
after the date of the sale a 60-day notice of the purchaser's
requirement that you move out.
  To be entitled to either a 30-day or 60-day notice, you must
give the trustee of the property written evidence of your rental
agreement at least 30 days before the date first set for the
sale.  If you have a fixed-term lease, you must give the trustee
a copy of the rental agreement. If you do not have a fixed-term
lease and cannot provide a copy of the rental agreement, you may
give the trustee other written evidence of the existence of the
rental agreement. The date that is 30 days before the date of the
sale is ________. The name of the trustee and the trustee's
mailing address are listed on this notice.
  Federal law may grant you additional rights, including a right
to a longer notice period. Consult a lawyer for more information
about your rights under federal law.
  You have the right to apply your security deposit and any rent
you prepaid toward your current obligation under your rental
agreement. If you want to do so, you must notify your landlord in
writing and in advance that you intend to do so.
  If you believe you need legal assistance with this matter, you
may contact the Oregon State Bar and ask for the lawyer referral
service. Contact information for the Oregon State Bar is included
with this notice. If you have a low income and meet federal
poverty guidelines, you may be eligible for free legal
assistance. Contact information for where you can obtain free
legal assistance is included with this notice.
_________________________________________________________________

  SECTION 2. ORS 86.745, as amended by section 1 of this 2010
Act, is amended to read:
  86.745. The notice of sale shall:
  (1) List the names of the grantor, trustee and beneficiary in
the trust deed, and the mailing address of the trustee.
  (2) Describe the property the trust deed covers.
  (3) Identify the book and page of the mortgage records that
record the trust deed.
  (4) State the default for which the foreclosure is made.
  (5) State the sum owing on the obligation that the trust deed
secures.
  (6) State that the property will be sold to satisfy the
obligation.
  (7) Set forth the date, time and place of the sale.
  (8) State that the right exists under ORS 86.753 to have the
proceeding dismissed and the trust deed reinstated by paying the
entire amount then due, together with costs, trustee's fees and
attorney fees, and by curing any other default complained of in
the notice of default, at any time that is not later than five
days before the date last set for the sale.
  (9) If the property includes one or more dwelling units, as
defined in ORS 90.100, include a notice addressed clearly to any
person who occupies the property and who is or might be a
residential tenant. The notice required under this subsection
must:

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 2

  (a) Include contact information for the Oregon State Bar and a
person or organization that provides legal help to individuals at
no charge to the individual;
  (b) Include information concerning the right the person has to
notice under ORS 86.755 (5)(c) and state that the person may have
additional rights under federal law;
  (c) Be set apart from other text in the notice of sale; and
  (d) Be in substantially the following form:
_________________________________________________________________

                               { -
NOTICE TO TENANTS: - }
    { - If you are a tenant of this property, foreclosure could
affect your rental agreement. A purchaser who buys this property
at a foreclosure sale has the right to require you to move out
after giving you notice of the requirement. - }
    { - If you do not have a fixed-term lease, the purchaser may
require you to move out after giving you a 30-day notice on or
after the date of the sale. - }
    { - If you have a fixed-term lease, you may be entitled to
receive after the date of the sale a 60-day notice of the
purchaser's requirement that you move out. - }
    { - To be entitled to either a 30-day or 60-day notice, you
must give the trustee of the property written evidence of your
rental agreement at least 30 days before the date first set for
the sale.  If you have a fixed-term lease, you must give the
trustee a copy of the rental agreement. If you do not have a
fixed-term lease and cannot provide a copy of the rental
agreement, you may give the trustee other written evidence of the
existence of the rental agreement. The date that is 30 days
before the date of the sale is ________. The name of the trustee
and the trustee's mailing address are listed on this notice. - }
    { - Federal law may grant you additional rights, including a
right to a longer notice period. Consult a lawyer for more
information about your rights under federal law. - }
    { - You have the right to apply your security deposit and any
rent you prepaid toward your current obligation under your rental
agreement. If you want to do so, you must notify your landlord in
writing and in advance that you intend to do so. - }
    { - If you believe you need legal assistance with this
matter, you may contact the Oregon State Bar and ask for the
lawyer referral service. Contact information for the Oregon State
Bar is included with this notice. If you have a low income and
meet federal poverty guidelines, you may be eligible for free
legal assistance. Contact information for where you can obtain
free legal assistance is included with this notice. - }
                               { +
NOTICE TO RESIDENTIAL TENANTS + }
   { +  The property in which you are living is in foreclosure. A
foreclosure sale is scheduled for ________. Unless the lender who
is foreclosing on this property is paid, the foreclosure will go
through and someone new will own this property.
  The following information applies to you only if you occupy and
rent this property as a residential dwelling under a legitimate
rental agreement. The information does not apply to you if you
own this property or if you are not a residential tenant.
  If the foreclosure goes through, the business or individual who
buys this property at the foreclosure sale has the right to
require you to move out. The buyer must first give you an
eviction notice in writing that specifies the date by which you

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 3

must move out. The buyer may not give you this notice until after
the foreclosure sale happens. If you do not leave before the
move-out date, the buyer can have the sheriff remove you from the
property after a court hearing. You will receive notice of the
court hearing. + }
                               { +
FEDERAL LAW REQUIRES YOU TO BE NOTIFIED + }
   { +  IF YOU ARE OCCUPYING AND RENTING THIS PROPERTY AS A
RESIDENTIAL DWELLING UNDER A LEGITIMATE RENTAL AGREEMENT, FEDERAL
LAW REQUIRES THE BUYER TO GIVE YOU NOTICE IN WRITING A CERTAIN
NUMBER OF DAYS BEFORE THE BUYER CAN REQUIRE YOU TO MOVE OUT. THE
FEDERAL LAW THAT REQUIRES THE BUYER TO GIVE YOU THIS NOTICE IS
EFFECTIVE UNTIL DECEMBER 31, 2012. Under federal law, the buyer
must give you at least 90 days' notice in writing before
requiring you to move out. If you are renting this property under
a fixed-term lease (for example, a six-month or one-year lease),
you may stay until the end of your lease term. If the buyer wants
to move in and use this property as the buyer's primary
residence, the buyer can give you written notice and require you
to move out after 90 days, even if you have a fixed-term lease
with more than 90 days left. + }
                               { +
STATE LAW NOTIFICATION REQUIREMENTS + }
   { +  IF THE FEDERAL LAW DOES NOT APPLY, STATE LAW STILL
REQUIRES THE BUYER TO GIVE YOU NOTICE IN WRITING BEFORE REQUIRING
YOU TO MOVE OUT IF YOU ARE OCCUPYING AND RENTING THE PROPERTY AS
A TENANT IN GOOD FAITH. EVEN IF THE FEDERAL LAW REQUIREMENT IS NO
LONGER EFFECTIVE AFTER DECEMBER 31, 2012, THE REQUIREMENT UNDER
STATE LAW STILL APPLIES TO YOUR SITUATION. Under state law, if
you have a fixed-term lease (for example, a six-month or one-year
lease), the buyer must give you at least 60 days' notice in
writing before requiring you to move out. If the buyer wants to
move in and use this property as the buyer's primary residence,
the buyer can give you written notice and require you to move out
after 30 days, even if you have a fixed-term lease with more than
30 days left.
  If you are renting under a month-to-month or week-to-week
rental agreement, the buyer must give you at least 30 days'
notice in writing before requiring you to move out.
  IMPORTANT: For the buyer to be required to give you notice
under state law, you must prove to the business or individual who
is handling the foreclosure sale that you are occupying and
renting this property as a residential dwelling under a
legitimate rental agreement. The name and address of the business
or individual who is handling the foreclosure sale is shown on
this notice under the heading 'TRUSTEE.' You must mail or deliver
your proof not later than ________ (30 days before the date first
set for the foreclosure sale). Your proof must be in writing and
should be a copy of your rental agreement or lease. If you do not
have a written rental agreement or lease, you can provide other
proof, such as receipts for rent you paid. + }
                               { +
ABOUT YOUR SECURITY DEPOSIT + }
   { +  Under state law, you may apply your security deposit and
any rent you paid in advance against the current rent you owe
your landlord. To do this, you must notify your landlord in
writing that you want to subtract the amount of your security
deposit or prepaid rent from your rent payment. You may do this
only for the rent you owe your current landlord. If you do this,
you must do so before the foreclosure sale. The business or

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 4

individual who buys this property at the foreclosure sale is not
responsible to you for any deposit or prepaid rent you paid to
your landlord. + }
                               { +
ABOUT YOUR TENANCY AFTER THE FORECLOSURE SALE + }
   { +  The business or individual who buys this property at the
foreclosure sale may be willing to allow you to stay as a tenant
instead of requiring you to move out. You should contact the
buyer to discuss that possibility if you would like to stay.
Under state law, if the buyer accepts rent from you, signs a new
residential rental agreement with you or does not notify you in
writing within 30 days after the date of the foreclosure sale
that you must move out, the buyer becomes your new landlord and
must maintain the property. Otherwise, the buyer is not your
landlord and is not responsible for maintaining the property on
your behalf and you must move out by the date the buyer specifies
in a notice to you.
  YOU SHOULD CONTINUE TO PAY RENT TO YOUR LANDLORD UNTIL THE
PROPERTY IS SOLD TO ANOTHER BUSINESS OR INDIVIDUAL OR UNTIL A
COURT OR A LENDER TELLS YOU OTHERWISE. IF YOU DO NOT PAY RENT,
YOU CAN BE EVICTED. AS EXPLAINED ABOVE, YOU MAY BE ABLE TO APPLY
A DEPOSIT YOU MADE OR PREPAID RENT YOU PAID AGAINST YOUR CURRENT
RENT OBLIGATION. BE SURE TO KEEP PROOF OF ANY PAYMENTS YOU MAKE
AND OF ANY NOTICE YOU GIVE OR RECEIVE CONCERNING THE APPLICATION
OF YOUR DEPOSIT OR YOUR PREPAID RENT.
  IT IS UNLAWFUL FOR ANY PERSON TO TRY TO FORCE YOU TO LEAVE YOUR
HOME WITHOUT FIRST GOING TO COURT TO EVICT YOU. FOR MORE
INFORMATION ABOUT YOUR RIGHTS, YOU MAY WISH TO CONSULT A LAWYER.
If you believe you need legal assistance, contact the Oregon
State Bar and ask for the lawyer referral service. Contact
information for the Oregon State Bar is included with this
notice. If you do not have enough money to pay a lawyer and are
otherwise eligible, you may be able to receive legal assistance
for free. Information about whom to contact for free legal
assistance is included with this notice. + }
_________________________________________________________________

  SECTION 3. ORS 86.750 is amended to read:
  86.750. (1)(a) Except as provided in paragraph (b) of this
subsection, the notice prescribed in ORS 86.745   { - shall - }
 { +  must + } be served upon an occupant of the property
described in the trust deed in the manner in which a summons is
served pursuant to ORCP 7 D(2) and 7 D(3) at least 120 days
before the day the trustee conducts the sale.
  (b)(A) If service cannot be effected on an occupant as provided
in paragraph (a) of this subsection on the first attempt, the
person   { - attempting - }  { +  that attempts to effect + }
service shall post a copy of the notice in a conspicuous place on
the property on the date of the first attempt. The person
 { - attempting - }  { +  that attempts to effect + } service
shall make a second attempt to effect service on a day that is at
least two days after the first attempt.
  (B) If service cannot be effected on an occupant as provided in
paragraph (a) of this subsection on the second attempt, the
person   { - attempting - }  { +  that attempts to effect + }
service shall post a copy of the notice in a conspicuous place on
the property on the date of the second attempt. The person
 { - attempting - }  { +  that attempts to effect + } service
shall make a third attempt to effect service on a day that is at
least two days after the second attempt.

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 5

  (C) If service cannot be effected on an occupant as provided in
paragraph (a) of this subsection on the third attempt, the person
 { - attempting - }  { +  that attempts to effect + } service
shall send a copy of the notice, bearing the word 'occupant' as
the addressee, to the property address by first class mail with
postage prepaid.
  (c) Service on an occupant is   { - deemed - }  effected on the
earlier of the date that notice is served as provided in
paragraph (a) of this subsection or the first date on which
notice is posted as described in paragraph (b)(A) of this
subsection.
  (2) { + (a) Except as provided in paragraph (b) of this
subsection, + } a copy of the notice of sale   { - shall - }
 { +  must + } be published in a newspaper of general circulation
in each of the counties in which the property is situated once a
week for four successive weeks. The last publication
 { - shall - }  { +  must + } be made more than 20 days prior to
the date the trustee conducts the sale.
   { +  (b) The copy of the notice of sale required to be
published under paragraph (a) of this subsection does not need to
include the notice to tenants required under ORS 86.745 (9). + }
  (3) On or before the date the trustee conducts the sale, the
trustee shall file for recording in the official record of the
county or counties in which the property described in the deed is
situated the following affidavits with respect to the notice of
sale:
  (a) An affidavit of mailing, if any;
  (b) An affidavit of service, if any;
  (c) An affidavit of service attempts and posting, if any; and
  (d) An affidavit of publication.
  (4) On or before the date the trustee conducts the sale, the
trustee shall file for recording in the official record of the
county or counties in which the property described in the deed is
situated an affidavit of mailing with respect to the notice to
the grantor required under ORS 86.737.
  (5) On or before the date the trustee conducts the sale, the
trustee shall file for recording in the official record of the
county or counties in which the property is located an affidavit
from the beneficiary or the beneficiary's agent that states how
the beneficiary or the beneficiary's agent has complied with the
provisions of section 3 (1) and (2), chapter 864, Oregon Laws
2009.
  SECTION 4. ORS 86.750, as amended by section 6, chapter 864,
Oregon Laws 2009, is amended to read:
  86.750. (1)(a) Except as provided in paragraph (b) of this
subsection, the notice prescribed in ORS 86.745   { - shall - }
 { +  must + } be served upon an occupant of the property
described in the trust deed in the manner in which a summons is
served pursuant to ORCP 7 D(2) and 7 D(3) at least 120 days
before the day the trustee conducts the sale.
  (b)(A) If service cannot be effected on an occupant as provided
in paragraph (a) of this subsection on the first attempt, the
person   { - attempting - }  { +  that attempts to effect + }
service shall post a copy of the notice in a conspicuous place on
the property on the date of the first attempt. The person
 { - attempting - }  { +  that attempts to effect + } service
shall make a second attempt to effect service on a day that is at
least two days after the first attempt.
  (B) If service cannot be effected on an occupant as provided in
paragraph (a) of this subsection on the second attempt, the

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 6

person   { - attempting - }  { +  that attempts to effect + }
service shall post a copy of the notice in a conspicuous place on
the property on the date of the second attempt. The person
 { - attempting - }  { +  that attempts to effect + } service
shall make a third attempt to effect service on a day that is at
least two days after the second attempt.
  (C) If service cannot be effected on an occupant as provided in
paragraph (a) of this subsection on the third attempt, the person
 { - attempting - }  { +  that attempts to effect + } service
shall send a copy of the notice, bearing the word 'occupant' as
the addressee, to the property address by first class mail with
postage prepaid.
  (c) Service on an occupant is   { - deemed - }  effected on the
earlier of the date that notice is served as provided in
paragraph (a) of this subsection or the first date on which
notice is posted as described in paragraph (b)(A) of this
subsection.
  (2) { + (a) Except as provided in paragraph (b) of this
subsection, + } a copy of the notice of sale   { - shall - }
 { +  must + } be published in a newspaper of general circulation
in each of the counties in which the property is situated once a
week for four successive weeks. The last publication
 { - shall - }  { +  must + } be made more than 20 days prior to
the date the trustee conducts the sale.
   { +  (b) The copy of the notice of sale required to be
published under paragraph (a) of this subsection does not need to
include the notice to tenants required under ORS 86.745 (9). + }
  (3) On or before the date the trustee conducts the sale, the
trustee shall file for recording in the official record of the
county or counties in which the property described in the deed is
situated the following affidavits with respect to the notice of
sale:
  (a) An affidavit of mailing, if any;
  (b) An affidavit of service, if any;
  (c) An affidavit of service attempts and posting, if any; and
  (d) An affidavit of publication.
  (4) On or before the date the trustee conducts the sale, the
trustee shall file for recording in the official record of the
county or counties in which the property described in the deed is
situated an affidavit of mailing with respect to the notice to
the grantor required under ORS 86.737.
  SECTION 5. ORS 90.300 is amended to read:
  90.300. (1) As used in this section, 'security deposit '
includes any last month's rent deposit.
  (2) { + (a) + } Except as otherwise provided in this section, a
landlord may require   { - the payment of - }  { +  a tenant to
pay + } a security deposit. The landlord shall provide
 { - a - }   { + the + } tenant with a receipt for any security
deposit   { - paid by - }  the tenant { +  pays + }.  { + The
landlord shall hold  + }a security deposit or prepaid rent
 { - shall be held by the landlord - }  for the tenant who is a
party to the rental agreement.   { - The claim of a tenant - }
 { +  A tenant's claim + } to the security deposit or prepaid
rent   { - shall be - }  { +  is + } prior to the claim of
 { - any - }  { +  a + } creditor of the landlord, including a
trustee in bankruptcy.
   { +  (b) Except as provided in ORS 86.755 (8), + } the holder
of the landlord's interest in the premises at the time   { - of
termination of - }  the tenancy { +  terminates + } is

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 7

responsible to the tenant for any security deposit or prepaid
rent and is bound by this section.
  (3) A landlord may not charge a tenant a pet security deposit
for keeping a service animal or companion animal that a tenant
with a disability requires as a reasonable accommodation under
fair housing laws.
  (4)(a) Except as otherwise provided in this subsection, a
landlord may not change the rental agreement to require the
 { + tenant to pay + }   { - payment of - }  a new or increased
security deposit during the first year after the tenancy has
begun. Subject to subsection (3) of this section,  { + the
landlord may require  + }an additional deposit
  { - may be required - }  if the landlord and tenant agree to
modify the terms and conditions of the rental agreement to permit
a pet or for other cause and the additional deposit relates to
 { - that - }  { +  the + } modification. This paragraph does not
prevent  { + a landlord from collecting  + }  { - the collection
of - }  a security deposit that   { - was provided for under - }
an initial rental agreement { +  provided for + } but  { +
that + } remained unpaid at the time the tenancy began.
  (b) If a landlord requires a new or increased security deposit
after the first year of the tenancy, the landlord shall allow the
tenant at least three months to pay   { - that - }  { +  the new
or increased + } deposit.
  (5) The landlord may claim all or part of the security deposit
only if the { +  landlord required the + } security deposit
 { - was made - }  for any or all of the purposes   { - provided
by - }  { +  specified in + } subsection (6) of this section.
  (6)(a) The landlord may claim from the security deposit only
the amount reasonably necessary:
  (A) To remedy the tenant's defaults in the performance of the
rental agreement including, but not limited to, unpaid rent; and
  (B) To repair damages to the premises caused by the tenant, not
including ordinary wear and tear.
  (b) A landlord is not required to repair damage caused by the
tenant in order { +  for the landlord + } to claim against the
deposit for the cost to make the repair. Any labor costs { +  the
landlord assesses + }
  { - assessed - }  under this subsection for cleaning or repairs
must be based on a reasonable hourly rate. The landlord may
charge a reasonable hourly rate for the { +  landlord's own + }
performance of cleaning or repair work   { - by the landlord - }
.
  (c) Defaults and damages for which a landlord may recover under
this subsection include, but are not limited to:
  (A) Carpet cleaning, other than the use of a common vacuum
cleaner, if:
  (i) The cleaning is performed by use of a machine specifically
designed for cleaning or shampooing carpets;
  (ii) The carpet was cleaned immediately   { - prior to - }
 { +  before + } the tenant   { - taking - }  { +  took + }
possession; and
  (iii) The written rental agreement provides that the landlord
may deduct the cost of carpet cleaning regardless of whether the
tenant cleans the carpet before   { - delivery of - }  { +  the
tenant delivers + } possession as described in ORS 90.147.
  (B) Loss of use of the dwelling unit during the performance of
necessary cleaning or repairs, if the cleaning or repairs are
performed in a timely manner.

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 8

  (7) A landlord may not require   { - that - }  a { +  tenant to
pay or to forfeit a + } security deposit or prepaid rent   { - be
required or forfeited - }  to the landlord   { - upon - }  { +
for + } the { +  tenant's + } failure   { - of the tenant - }  to
maintain a tenancy for a minimum number of months in a
month-to-month tenancy.
  (8)  { + The landlord must apply  + }any last month's rent
deposit
  { - must be applied - }  to the rent due for the last month of
the tenancy:
  (a)   { - Upon - }  { +  When + } either the landlord or { +
the + } tenant   { - giving - }  { +  gives + } to the other a
notice of termination, pursuant to this chapter, other than a
notice of termination under ORS 90.394;
  (b)   { - Upon agreement by - }  { +  When + } the landlord and
tenant { +  agree + } to terminate the tenancy; or
  (c)   { - Upon termination pursuant to - }  { +  When the
tenancy terminates in accordance with + } the provisions of a
written rental agreement for a term tenancy.
  (9)  { + A landlord shall account for and refund as provided in
subsections (11) to (13) of this section  + }any portion of a
last month's rent deposit   { - not applied - }  { +  the
landlord does not apply + } as provided under subsection (8) of
this section   { - shall be accounted for and refunded as
provided under subsections (11) to (13) of this section - } .
Unless the tenant and landlord agree otherwise, { +  the tenant
may not require the landlord to apply + } a last month's rent
deposit   { - shall not be applied - }  to rent due for any
period other than the last month of the tenancy. A last month's
rent deposit
  { - shall not operate to - }  { +  does not  + }limit the
amount of rent charged unless a written rental agreement provides
otherwise.
  (10)   { - Upon termination of the tenancy - }  { +  When the
tenancy terminates + }, a landlord shall account for and refund
to the tenant { + , + }  { +  in the same manner this section
requires for security deposits, + } the unused balance of any
prepaid rent { +  the landlord has + } not previously refunded to
the tenant   { - as required by - }  { +  under + } ORS 90.380
and 105.120 (5)(b) or any other provision of this chapter  { - ,
in the same manner as required for security deposits by this
section - } . The landlord may claim from the remaining prepaid
rent only the amount reasonably necessary to pay the tenant's
unpaid rent.
  (11) In order to claim all or part of any prepaid rent or
security deposit, within 31 days after the   { - termination of
the - } tenancy { +  terminates + } and   { - delivery of - }
 { +  the tenant delivers + } possession the landlord shall give
to the tenant a written accounting that states specifically the
basis or bases of the claim. The landlord shall give a separate
accounting for security deposits and for prepaid rent.
  (12) The { +  landlord shall return to the tenant the + }
security deposit or prepaid rent or { +  the + } portion
 { - thereof - }  { +  of the security deposit or prepaid rent
that the landlord does + } not   { - claimed - }  { +  claim + }
in the manner provided by subsections (10) and (11) of this
section   { - shall be returned to the tenant - }  not later than
31 days after   { - the termination of - }  the tenancy { +
terminates + } and   { - delivery of - }  { +  the tenant
delivers + } possession to the landlord.

Enrolled Senate Bill 1013 (SB 1013-A)                      Page 9

  (13) The landlord shall give the written accounting
 { - as - } required   { - by - }  { +  under + } subsection (11)
of this section or shall return the security deposit or prepaid
rent as required by subsection (12) of this section by personal
delivery or by first class mail.
  (14) If a security deposit or prepaid rent secures a tenancy
for a space for a   { - tenant owned and occupied - }
manufactured dwelling or floating home { +  the tenant owns and
occupies + }, whether or not in a facility, and the dwelling or
home is abandoned as described in ORS 90.425 (2) or 90.675 (2),
the 31-day period described in subsections (11) and (12) of this
section commences on the earliest of:
  (a) Waiver of the abandoned property process under ORS 90.425
(26) or 90.675 (22);
  (b) Removal of the manufactured dwelling or floating home from
the rented space;
  (c) Destruction or other disposition of the manufactured
dwelling or floating home under ORS 90.425 (10)(b) or 90.675
(10)(b); or
  (d) Sale of the manufactured dwelling or floating home pursuant
to ORS 90.425 (10)(a) or 90.675 (10)(a).
  (15) If the landlord fails to comply with subsection (12) of
this section or if the landlord in bad faith fails to return all
or any portion of any prepaid rent or security deposit due to the
tenant under this chapter or the rental agreement, the tenant may
recover the money due in an amount equal to twice the amount:
  (a) Withheld without a written accounting under subsection (11)
of this section; or
  (b) Withheld in bad faith.
  (16)(a) A security deposit or prepaid rent in the possession of
the landlord is not garnishable property, as provided in ORS
18.618.
  (b) If a { +  landlord delivers a + } security deposit or
prepaid rent
  { - is delivered - }  to a garnishor in violation of ORS 18.618
(1)(b), the landlord that delivered the security deposit or
prepaid rent to the garnishor shall allow the tenant at least 30
days after a copy of the garnishee response required by ORS
18.680 is delivered to the tenant under ORS 18.690 to restore the
security deposit or prepaid rent. If the tenant fails to restore
a security deposit or prepaid rent under the provisions of this
paragraph before the tenancy terminates, and the landlord retains
no security deposit or prepaid rent from the tenant after the
garnishment, the landlord is not required to refund or account
for the security deposit or prepaid rent under subsection (10) of
this section.
  (17) This section does not preclude the landlord or tenant from
recovering other damages under this chapter.
  SECTION 6.  { + (1) The amendments to ORS 86.745 by section 1
of this 2010 Act apply to notices given under ORS 86.740 on or
after the effective date of this 2010 Act.
  (2) The amendments to ORS 90.300 by section 5 of this 2010 Act
apply to tenancies that are terminated on or after the effective
date of this 2010 Act. + }
  SECTION 7.  { + (1) The amendments to ORS 86.745 by section 2
of this 2010 Act become operative June 30, 2010.
  (2) Before the operative date specified in subsection (1) of
this section, a trustee may meet the trustee's obligations under
ORS 86.745 by using either the form for the notice to tenants
described in ORS 86.745 (9), as amended by section 1 of this 2010

Enrolled Senate Bill 1013 (SB 1013-A)                     Page 10

Act, or the form for the notice to residential tenants described
in ORS 86.745 (9), as amended by section 2 of this 2010 Act. + }
  SECTION 8.  { + This 2010 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2010 Act takes effect on its
passage. + }
                         ----------

Passed by Senate February 10, 2010

      ...........................................................
                                              Secretary of Senate

      ...........................................................
                                              President of Senate

Passed by House February 19, 2010

      ...........................................................
                                                 Speaker of House

Enrolled Senate Bill 1013 (SB 1013-A)                     Page 11

Received by Governor:

......M.,............., 2010

Approved:

......M.,............., 2010

      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 2010

      ...........................................................
                                               Secretary of State

Enrolled Senate Bill 1013 (SB 1013-A)                     Page 12