Oregon Statutes 131A.075 – Liens and security interests of financial institutions
(1) Seizure of property for forfeiture and other proceedings under this chapter does not prevent, abate or delay the initiation or prosecution of a suit or action by a financial institution for the possession of seized property in which the financial institution claims a lien or security interest, or initiation or prosecution of a suit or action by a financial institution for the foreclosure of a lien or security interest claimed by the financial institution. A financial institution may proceed with any suit or action involving property in which the institution claims a lien or security interest even though a seizure has occurred and a forfeiture action has been commenced or will be commenced. The financial institution’s suit or action may be consolidated with the forfeiture action for the purpose of trial. If seized property is sold before the conclusion of the forfeiture action, the sheriff, trustee or other person who is conducting the sale and who has actual notice of the forfeiture action shall distribute the sale proceeds as follows:
Terms Used In Oregon Statutes 131A.075
- Financial institution: means any person lawfully conducting business as:
(a) A financial institution or trust company, as those terms are defined in ORS § 706. See Oregon Statutes 131A.005
- 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
- Forfeiting agency: means a public body that is seeking forfeiture of property under this chapter. See Oregon Statutes 131A.005
- Lien: A claim against real or personal property in satisfaction of a debt.
- Motor vehicle with a hidden compartment: means a motor vehicle as defined in ORS § 801. See Oregon Statutes 131A.005
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Property: means any interest in anything of value, including the whole of any lot or tract of land and tangible and intangible personal property, including currency, instruments or securities or any other kind of privilege, interest, claim or right whether due or to become due. See Oregon Statutes 131A.005
- Seizing agency: means a law enforcement agency that has seized property for forfeiture. See Oregon Statutes 131A.005
- Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
- Trustee: A person or institution holding and administering property in trust.
(a) To the payment of the expenses of the sale.
(b) If the property is a motor vehicle with a hidden compartment, after making the payment required by paragraph (a) of this subsection, to reimburse the seizing agency for the cost of disabling the hidden compartment.
(c) After payment of the expenses of the sale and making any reimbursement under paragraphs (a) and (b) of this subsection, to the payment of the obligations owed to the foreclosing financial institution that are secured by the property, and to the payment of the obligations owed to any other person that has a lien or security interest in the property that has been foreclosed in the suit or action. Payment under this paragraph shall be made in the order determined by the court.
(d) If there is any remaining amount after the payments required under paragraphs (a) to (c) of this subsection, to the seizing or forfeiting agency, or to the court in which the forfeiture action is pending.
(2) A sheriff, trustee or other person who distributes sale proceeds as provided in subsection (1) of this section is not liable to any person who has or asserts an interest in the property. [2009 c.78 § 12; 2009 c.874 § 9]
(Care and Custody of Property)