ORS 652.570¹
Priority of wage claims over transfers in payment of preexisting obligations
  • payment and subrogation of transferee

(1) Every sale or transfer of any property in payment of any preexisting debt, or obligation, and every mortgage or lien created or executed to secure the payment of a preexisting debt, shall be void as against laborers or employees of such vendor, mortgagor, or other lien debtor, to the extent of their claims for wages, in the amount of $2,000, or 30 days of wages, whichever amount is the greater, to each of said laborers which may be owing for work or labor performed within 90 days next preceding such sale and transfer or the execution of such lien or mortgage, if the laborer or employee claiming the benefit of this section:

(a) Within 10 days after the actual delivery of the property or within 30 days after the recording of any such deed, transfer, mortgage or lien, gives such owner or holder of such lien or such vendee notice of the claim of the laborer or employee substantially in the form and verified as provided in ORS 652.520 (Form of statement of wage claim), which notice shall be served by delivering it or a copy thereof to such owner or holder of such lien or such vendee in person or, in case the owner, holder or vendee cannot be found within the county in which such lien or deed may be of record after diligent inquiry, by delivering the notice or a copy thereof to the clerk of the county court for such owner or holder of such lien or such vendee; and

(b) Within 30 days after the notice of claim is served commences court action to pursue the claim.

(2) The vendee or mortgage or lienholder, or an assignee, may pay such claim and thereby be subrogated to the rights and lien of such laborer or employee, as against the vendor, principal debtor or mortgagor, and as against subsequent mortgagees or other subsequent lien creditors.

(3) This section does not apply to any mortgage or lien given in renewal of a preexisting mortgage or lien. [Amended by 1977 c.288 §2; 1989 c.651 §1]

Notes of Decisions

This sec­tion does not apply to sale or transfer that forecloses security interest created before 90-day period. State ex rel Roberts v. Far West Federal Bank, 100 Or App 231, 785 P2d 798 (1990), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 652—Hours; Wages; Wage Claims; Records, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors652.­html (2019) (last ac­cessed May 16, 2020).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 652, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano652.­html (2019) (last ac­cessed May 16, 2020).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information