Oregon Statutes 90.367 – Application of security deposit or prepaid rent after notice of foreclosure; termination of fixed term tenancy after notice
(1) A tenant who receives actual notice that the property that is the subject of the tenant’s rental agreement with a landlord is in foreclosure may apply the tenant’s security deposit or prepaid rent to the tenant’s obligation to the landlord. The tenant must notify the landlord in writing that the tenant intends to do so. The giving of the notice provided by this subsection by the tenant does not constitute a termination of the tenancy.
Terms Used In Oregon Statutes 90.367
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fixed term tenancy: means a tenancy that has a fixed term of existence, continuing to a specific ending date and terminating on that date without requiring further notice to effect the termination. See Oregon Statutes 90.100
- 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
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Landlord: includes a person who is authorized by the owner, lessor or sublessor to manage the premises or to enter into a rental agreement. See Oregon Statutes 90.100
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Prepaid rent: means any payment of money to the landlord for a rent obligation not yet due. See Oregon Statutes 90.100
- Rent: means any payment to be made to the landlord under the rental agreement, periodic or otherwise, in exchange for the right of a tenant and any permitted pet to occupy a dwelling unit to the exclusion of others and to use the premises. See Oregon Statutes 90.100
- Rental agreement: includes a lease. See Oregon Statutes 90.100
- Security deposit: means a refundable payment or deposit of money, however designated, the primary function of which is to secure the performance of a rental agreement or any part of a rental agreement. See Oregon Statutes 90.100
- Trustee: A person or institution holding and administering property in trust.
(2) A landlord may not terminate the tenancy of a tenant:
(a) Because the tenant has applied the security deposit or prepaid rent as allowed under subsection (1) of this section.
(b) For nonpayment of rent during the month in which the tenant applies the security deposit or prepaid rent pursuant to subsection (1) of this section unless an unpaid balance remains due after applying all payments, including the security deposit or prepaid rent, to the rent.
(3) If the tenant has not provided the written notice applying the security deposit or prepaid rent as required under subsection (1) of this section before the landlord gives a termination notice for nonpayment of rent, the tenant must provide the written notice within the notice period provided by ORS § 90.392 or 90.394. If the tenant does not provide the written notice, the landlord may terminate the tenancy based upon ORS § 90.392 or 90.394.
(4) Application of the security deposit or prepaid rent pursuant to subsection (1) of this section to an obligation owed to the landlord does not constitute a partial payment under ORS § 90.417.
(5) If the landlord provides written evidence from a lender or trustee that the property is no longer in foreclosure, the landlord may require the tenant to restore the security deposit or prepaid rent to the amount required prior to the tenant’s application of the security deposit or prepaid rent. The landlord shall allow the tenant at least two months to restore the security deposit or prepaid rent.
(6)(a) A tenant with a fixed term tenancy who receives actual notice that the property that is the subject of the tenant’s rental agreement with a landlord is in foreclosure may terminate the tenancy by delivering a written notice to the landlord specifying that the tenant has received notice that the property is in foreclosure and that the tenancy will terminate upon a designated date that is not less than 60 days after delivery of the notice unless within 30 days the landlord provides the tenant with written evidence from a lender or trustee that the property is no longer in foreclosure or with written evidence that a receiver has been appointed by a court of competent jurisdiction to oversee the operation of the property.
(b) If the landlord does not provide the tenant with written evidence as described in paragraph (a) of this subsection within the 30-day period after delivery of the notice of termination, the tenancy terminates as provided in the notice. [2009 c.510 § 4; 2011 c.42 § 7a; 2013 c.294 § 10]