Bill Text: OR SB892 | 2011 | Regular Session | Introduced

Oregon Senate Bill 892 (Prior Session Legislation)

Introduced

Bill Title: Relating to transactions for equipment.

Sponsorship: Committee Bill

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB892 Detail]

Download: Oregon-2011-SB892-Introduced.html



     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3744

                         Senate Bill 892

Sponsored by COMMITTEE ON GENERAL GOVERNMENT, CONSUMER AND SMALL
  BUSINESS PROTECTION

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Provides that person that purchases or leases equipment subject
to contract clause that requires person to make payments
absolutely and unconditionally may in certain circumstances make
payments to attorney trust account or escrow trust account.

                        A BILL FOR AN ACT
Relating to transactions for equipment.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1)(a) A person that purchases or leases
equipment subject to a contract clause that requires the person
to make payments on the sale or lease absolutely and
unconditionally, the effect of which is to waive all or
substantially all of the person's defenses against mistake or
fraud with respect to the performance, suitability, fitness,
operation or condition of the equipment sold or leased, may
withhold payments due under the sale or lease as provided in
paragraph (b) of this subsection until the person resolves a
dispute with the seller or lessor of the equipment.
  (b) A person that withholds a payment due for a sale or lease
made under a contract described in paragraph (a) of this
subsection shall pay the amounts withheld into an attorney trust
account that the person's attorney establishes or an escrow trust
account that a person licensed under ORS 696.511 establishes in
accordance with ORS 696.505 to 696.590.
  (2) If a person makes payments as provided in subsection (1)(b)
of this section, a seller, lessor or assignee of the seller or
lessor may not enforce the contract clause described in
subsection (1) of this section until the seller or lessor
resolves the dispute with the person. Subject to any reduction in
an amount due under the sale or lease as a consequence of a
judgment of a circuit court of this state or the terms of a
settlement between the seller or lessor and the person, the
seller or lessor is entitled to the full amount paid into an
account established under subsection (1)(b) of this section.
  (3) During a period in which an unresolved dispute is pending
between the person and the seller or lessor, and provided that
the person makes payments in accordance with subsection (1)(b) of
this section, the seller or lessor, an assignee of the seller or
lessor or a credit reporting agency may not report the person's
failure to make a payment due for the sale or lease as a default
or as information that may negatively affect the person's credit
rating, credit score or ability to obtain credit.
  (4) This section does not apply to a finance lease as defined
in ORS 72A.1030. + }
  SECTION 2.  { + Section 1 of this 2011 Act applies to a
contract for the purchase or lease of equipment into which a
person enters with a seller or lessor on or after the effective
date of this 2011 Act. + }
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