ORS 94.890
Lien payment trust

  • payments
  • delinquencies

(1)

A lien payment trust may be established with a trust company as defined in ORS 706.008 (Additional definitions for Bank Act) that is authorized to transact trust business in this state, for the conveyance of timeshare property to the trustee under ORS 94.876 (Requirements for closing escrow) if the trust instrument provides for at least the following:

(a)

Title to the timeshare property must be transferred to the trustee before the purchaser’s funds, negotiable instruments, purchase money agreements or credit card authorizations or proceeds are disbursed by the escrow agent.

(b)

The trustee shall not convey or transfer all or any portion of the timeshare property except for an accommodation in which no owner has any further right of occupancy or as permitted at termination of the trust.

(c)

The trustee shall not encumber the timeshare property without the consent of the Real Estate Commissioner.

(d)

The association, if any, and all timeshare owners are made third party beneficiaries of the trust.

(e)

Notice of the trustee’s intention to resign must be given to the commissioner at least 90 days before the resignation takes effect.

(f)

The trust instrument may not be amended to adversely affect the interests or rights of a timeshare owner without the written approval of the association or, if no association, a majority of the timeshare owners.

(g)

Require the deposit into trust of a lien payment deposit, as required by subsection (3) of this section, before the closing of the first timeshare sale.

(h)

Require the deposit into trust before closing the first timeshare sale, and the intention to maintain for the duration of the trust, an installment payment reserve consisting of funds in an amount sufficient at all times:

(A)

To pay the total of three successive monthly installments of debt service on each blanket encumbrance or, if installments of debt services are not payable monthly or in equal installments, such funds as the commissioner determines reasonably necessary to assure that the trustee will have sufficient cash to make any payment under the blanket encumbrances when due; and

(B)

To create a sinking fund to extinguish the debt at its maturity if the blanket encumbrance against the trust property is an interest only loan, contains a balloon payment provision or is otherwise not fully amortized under the terms for repayment.
(i)
Authorize the trustee to sell, transfer, hypothecate, encumber, or otherwise dispose of the purchase money agreement or any other asset composing the lien payment deposit or any portion thereof if, in the trustee’s judgment, such action is necessary to enable the trustee to make all payments required under the blanket encumbrances to prevent foreclosure of the blanket encumbrance.

(j)

Require the developer to replenish the funds and assets in the trust whenever the lien payment deposit or the funds in the installment payment reserve fail to meet the requirements set forth in this subsection.

(k)

Provide that the trustee periodically shall disburse funds in the trust as follows: First, to pay real property taxes, governmental assessments, and lease rent, if any; second, to pay current payments due on the blanket encumbrances, in their order of priority; third, to any sinking fund established for the payment of blanket encumbrances, including any prepayment penalties and release prices; fourth, to pay any service charge and cost payable to the trustee and its collection agent, if any, under the trust instrument; and fifth, to the developer or as directed by the developer.

(L)

Contain any other provisions required by the commissioner under rules adopted under ORS 94.915 (Inspection of records) (2) and (3).

(2)

Every purchase money agreement delivered to the trustee of a lien payment trust must contain a notice to the holder that the trustee may make demand of the holder to deliver to the trustee all payments made by the owner after the trustee mails notice that the funds and other assets in the trust are inadequate to meet the lien payment deposit requirements. Following such demand, the holder must immediately deliver all subsequent payments of the owner to the trustee and continue to deliver the payments until the lien payment deposit is replenished.

(3)

Intentionally left blank —Ed.

(a)

The lien payment deposit shall consist of either nondelinquent purchase money agreements from timeshare owners in the timeshare plan or other assets deposited into the trust by the developer and approved by the commissioner. The purchase money agreements must have an aggregate remaining principal balance of not less than, and any other assets deposited must have a liquidated value of not less than, 110 percent of the difference between the aggregate remaining balance owing under blanket encumbrances against the timeshare property, including any prepayment penalties, release prices or similar charges, and the amount of money or its equivalent in the trust and available at any time to be applied to the reduction of the principal balance of the blanket encumbrance. The developer shall have the burden of establishing the liquidated value of assets other than purchase money agreements from timeshare owners in the timeshare plan.

(b)

If the blanket encumbrance payment deposit consists of purchase money agreements, the payments required to be made by owners under the agreements shall:

(A)

Be due on or before the date payments become due on the blanket encumbrances;

(B)

If paid when due as provided in subsection (4) of this section, be equal to at least 110 percent of the amount required to be paid on the blanket encumbrances on such date; and

(C)

Be sufficient to pay, in full, during the term of the purchase money agreements all amounts secured by the blanket encumbrances, including prepayment penalties and release prices, if any, and all service charges payable to the trustee, any collection agent, and any other servicing agent under the trust agreement.

(c)

If the developer proposes to deposit into trust assets other than purchase money agreements, the assets must be sufficient to pay debt service installments on the blanket encumbrance as they become due and to create a sinking fund or other arrangement adequate to extinguish the debt secured by the blanket encumbrance at its maturity.

(4)

For the purposes of this section, “purchase money agreement” means and includes a purchase money mortgage, a purchase money trust deed and a purchase contract.

(5)

For the purpose of this section, a purchase money agreement is considered delinquent when an installment payment is more than 59 days past due. [1983 c.530 §32; 1997 c.631 §394]

Source: Section 94.890 — Lien payment trust; payments; delinquencies, https://www.­oregonlegislature.­gov/bills_laws/ors/ors094.­html.

94.504
Development agreements
94.508
Approval by governing body
94.513
Procedures on consideration and approval
94.518
Application of local government law and policies to agreement
94.522
Amendment or cancellation of agreement
94.528
Recording
94.531
Severable development interest in real property
94.534
Policy on transferable development credit systems
94.536
Definitions for ORS 94.536 and 94.538
94.538
Transferable development credit systems
94.550
Definitions for ORS 94.550 to 94.783
94.560
Legislative findings
94.565
Planned community to be created under ORS 94.550 to 94.783
94.570
Applicability of ORS 94.550 to 94.783
94.572
Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities
94.573
Class I or Class II planned community option to amend governing documents to conform to statute
94.574
Procedure for formation of homeowners association by Class I or Class II planned community
94.575
Applicability of subdivision law
94.576
Class I or Class II planned community option to be subject to provisions of ORS 94.550 to 94.783
94.577
Recording amended governing documents
94.580
Declaration
94.585
Authority to amend declaration and initial bylaws to comply with federal or state laws
94.590
Amendment of declaration by owners
94.595
Reserve account for maintaining, repairing and replacing common property
94.600
Declarant control of association
94.604
Transitional advisory committee
94.609
Notice of meeting to turn over administrative responsibility
94.616
Turnover meeting
94.621
Rights of declarant following turnover meeting
94.622
Obligations and liabilities arising from transfer of special declarant rights
94.623
Acquisition of special declarant rights by successor declarant
94.625
Formation of homeowners association
94.626
Corporate dissolution of association
94.630
Powers of association
94.635
Association bylaws
94.639
Criteria for board of directors membership
94.640
Association board of directors
94.641
Assent of director to board action
94.642
Receivership for failure of homeowners association to fill vacancies on board of directors
94.644
Meetings of board of directors
94.645
Adoption of annual budget
94.647
Use of written ballot for approving or rejecting matters subject to meeting of association members
94.650
Meetings of lot owners
94.652
Electronic notice to owner or director
94.655
Quorum for association meetings
94.657
Rules of order
94.658
Voting or granting consent
94.660
Method of voting or consenting
94.661
Electronic ballot
94.662
Notice to lot owners of intent of association to commence judicial or administrative proceeding
94.665
Authority of association to sell, transfer, convey or encumber common property
94.667
Recording association information with county clerk
94.670
Association duty to keep documents and records
94.671
Application of ORS 94.670 (5)
94.673
When compliance with specified provisions of ORS 94.640 and 94.670 required
94.675
Insurance for common property
94.676
Insurance deductible for certain planned communities
94.677
Election to have ORS 94.645, 94.655 and 94.675 apply
94.680
Blanket all-risk insurance
94.685
Specification of insurance for individual lots
94.690
Terms of insurance under ORS 94.680
94.695
Authority to delegate association powers to master association
94.700
Duration and termination of initial management agreements and service and employment contracts
94.704
Assessment and payment of common expenses
94.709
Liens against lots
94.712
Lot owner personally liable for assessment
94.716
Lien against two or more lots
94.719
Lien foreclosure
94.723
Common expenses
94.728
Taxation of lots and common property
94.733
Easements held by owner of lot and by declarant
94.760
Promotional material showing possible improvements
94.761
Legislative findings regarding electric vehicle charging stations
94.762
Electric vehicle charging stations
94.763
Association use of pesticides on lots
94.764
Changes or actions that require approval or consent of mortgagee
94.770
Application of rule against perpetuities
94.775
Judicial partition of lots
94.776
Development and division of lots
94.777
Compliance with bylaws and other restrictions required
94.778
Prohibition against installation of solar panels void and unenforceable
94.779
Unenforceability of certain irrigation requirements and restrictions on family child care
94.780
Remedies
94.783
When certain administrative provisions apply
94.785
Short title
94.803
Definitions for ORS 94.803 and 94.807 to 94.945
94.806
Legislative finding
94.807
Application
94.808
Managing entity as taxpayer
94.809
Valuation of timeshare property
94.811
When owners of planned community, condominium or subdivision may prohibit timeshare plan
94.813
Character of timeshare estates
94.816
Partition prohibited
94.818
Recording of timeshare instrument
94.821
Content of timeshare instrument
94.823
Notice of intent to sell timeshares
94.826
Information on exchange program
94.828
Public report on plan
94.829
Sale not allowed before issuance of public report
94.831
Filing fees
94.833
Sale of timeshare plan located out-of-state
94.836
Cancellation of purchase within five days
94.839
Notice of cancellation right
94.841
Waiver of rights void
94.843
Limits on developer right to transfer
94.846
Designation of managing entity
94.848
How managing entity of developer terminated
94.853
Payment of common expenses
94.856
Assessment of common expenses as lien
94.858
Owners’ association
94.863
Developer’s duty to managing entity
94.867
Judicial declaration of failure in management
94.869
Insurance coverage
94.871
When purchase money agreement prohibited
94.873
Escrow account
94.876
Requirements for closing escrow
94.878
Duties of escrow agent
94.881
Who may serve as escrow agent
94.885
Rights of lienholder
94.890
Lien payment trust
94.895
Trust irrevocable without alternative arrangement
94.900
Alternative to lien payment trust
94.905
Surety bond
94.915
Inspection of records
94.920
Consent to service by out-of-state developer
94.925
Civil penalty
94.930
Commissioner order
94.940
False practices prohibited
94.945
Advertising regulation
94.953
Definitions for ORS 94.953 to 94.989
94.956
Registration required to sell membership camping contract
94.959
Application for registration
94.962
Exemptions from registration
94.965
Effective date of registration
94.968
Denial, suspension and revocation of registration
94.971
Fee for registration or amendment of an offer or sale of membership camping contract
94.974
Written disclosures required
94.975
False practices prohibited
94.976
Advertising regulation
94.977
Registration as salesperson or broker
94.980
Application for registration
94.983
Cancellation of contract by purchaser
94.986
Requirements for sale of membership camping contract
94.987
Judicial declaration of failure in management
94.989
Interpretation of membership camping contracts
Green check means up to date. Up to date