ORS 87.152
Possessory lien for labor or material expended on chattel

  • requirement for surety bond

(1)

Except as provided in subsections (2) and (3) of this section, a person that makes, alters, repairs, transports, stores, pastures, cares for, provides services for, supplies materials for or performs labor on a chattel at the request of the owner or lawful possessor of the chattel has a lien on the chattel in the possession of the person for the reasonable or agreed charges for labor, materials or services of the person, and the person may retain possession of the chattel until the charges are paid.

(2)

Intentionally left blank —Ed.

(a)

Except as provided in subsection (3) of this section, a person may not create, attach, assert or claim a possessory lien on a motor vehicle, as defined in ORS 801.360 (“Motor vehicle.”), unless the person performs a service that complies with ORS 646A.480 (Definitions for ORS 646A.480 to 646A.495) to 646A.495 (Owner designee) and that involves making, altering, repairing, transporting, storing, providing services for, supplying material for or performing labor in connection with the motor vehicle and the person:

(A)

Is a franchised motor vehicle dealership, as defined in ORS 650.120 (Definitions for ORS 650.120 to 650.170) (5), or a manufacturer, as defined in ORS 650.120 (Definitions for ORS 650.120 to 650.170), of the motor vehicle;

(B)

Holds a towing business certificate that the Department of Transportation issued under ORS 822.205 (Certificate), provided that the person creates, attaches, asserts or claims a possessory lien only for transporting or storing the motor vehicle; or

(C)

Creates, attaches, asserts or claims the lien against an abandoned motor vehicle.

(b)

A person, other than a person that is described in paragraph (a)(A), (B) or (C) of this subsection, shall have in effect a surety bond or irrevocable letter of credit in the amount of $20,000 before, and shall maintain the surety bond or irrevocable letter of credit during, any period in which the person creates, attaches, asserts or claims a possessory lien on a motor vehicle after making, altering, repairing, transporting, storing, performing services for, supplying materials for or performing labor in connection with the motor vehicle.

(c)

Intentionally left blank —Ed.

(A)

The surety bond and the irrevocable letter of credit described in paragraph (b) of this subsection must be issued, respectively, by a corporate surety that is authorized to transact business in this state and by a financial institution, as defined in ORS 706.008 (Additional definitions for Bank Act). The corporate surety or the financial institution, as appropriate, shall notify the Department of Transportation of any cancellation of the surety bond or irrevocable letter of credit. The corporate surety remains liable under the surety bond and the financial institution remains obligated under the irrevocable letter of credit until the department receives the notice or until the date of cancellation specified in the notice, whichever is later.

(B)

A surety bond or irrevocable letter of credit described in paragraph (b) of this subsection must be:
(i)
Executed to the State of Oregon;
(ii)
Approved by the Attorney General as to form;
(iii)
Filed with and held by the department; and
(iv)
Conditioned such as to compensate parties damaged as a result of a use of a possessory lien in connection with a misrepresentation, a fraud or a violation of a duty set forth in ORS 646A.480 (Definitions for ORS 646A.480 to 646A.495) to 646A.495 (Owner designee).

(C)

The person described in paragraph (b) of this subsection as subject to the requirement to have in effect a surety bond or irrevocable letter of credit must certify in writing to the department each year that the surety bond or irrevocable letter of credit remains in effect. If another person obtains a recovery against the surety bond or irrevocable letter of credit, the person shall file with the department not later than three business days after the date of the recovery a new surety bond or irrevocable letter of credit in the amount specified in paragraph (b) of this subsection.

(3)

Intentionally left blank —Ed.

(a)

As used in this subsection:

(A)

“Auction company” means an entity:
(i)
That operates throughout the United States;
(ii)
That holds a vehicle dealer certificate that the Department of Transportation issued or renewed under ORS 822.020 (Issuance of certificate) or 822.040 (Privileges granted by certificate), or a dismantler certificate that the department issued or renewed under ORS 822.110 (Dismantler certificate) or 822.125 (Privileges granted by certificate); and
(iii)
The primary activity of which, in this state, consists of disposing of totaled motor vehicles.

(B)

“Motor vehicle” has the meaning given that term in ORS 801.360 (“Motor vehicle.”).

(b)

An auction company has a lien on a motor vehicle that the auction company possesses and stored on premises the auction company owns or controls. The auction company may title the motor vehicle in the name of:

(A)

The auction company, if the motor vehicle has remained unclaimed on the auction company’s premises for more than 30 days;

(B)

The insurance company that directed the auction company to take possession of the motor vehicle; or

(C)

An organization with an exemption from taxation under section 501(c)(3) of the Internal Revenue Code that directed the auction company to take possession of the motor vehicle.

(c)

ORS 87.166 (Attachment of liens) and 87.172 (Time period before foreclosure allowed) to 87.212 (Liability for improper sale of fungible chattels) do not apply to chattel that is subject to this subsection.

(4)

Intentionally left blank —Ed.

(a)

The owner of a motor vehicle may bring an action to recover from a person that refuses, at the owner’s demand and without a valid possessory lien created and attached as provided in subsection (2) or (3) of this section, to release the owner’s motor vehicle or restore to the owner title to the owner’s motor vehicle if the person changed the title:

(A)

The greater of $2,000 or an amount equivalent to twice the value of the motor vehicle, up to a maximum amount of $20,000; and

(B)

The owner’s reasonable costs and attorney fees.

(b)

In addition to the recovery described in paragraph (a) of this subsection, the owner may obtain:

(A)

A judgment that:
(i)
Directs the Department of Transportation to restore title to the motor vehicle to the owner and to invalidate the title the person obtained; or
(ii)
Extinguishes the person’s interest in the motor vehicle and directs the department to issue title in the name of the plaintiff in the action;

(B)

A judgment that declares that the person’s lien is invalid if the person obtained title to the motor vehicle without complying with this section; and

(C)

Reimbursement for any fees the owner pays to the department to reissue the title. [1975 c.648 §3; 2018 c.58 §1; 2019 c.56 §§1,2; 2019 c.344 §1; 2021 c.218 §1]

Source: Section 87.152 — Possessory lien for labor or material expended on chattel; requirement for surety bond, https://www.­oregonlegislature.­gov/bills_laws/ors/ors087.­html.

Notes of Decisions

Where materials and labor involved in installation of oil cooler assembly were not provided at request of owner, repair shop did not establish right to possessory lien under this section. United Engine Parts v. Ried, 283 Or 421, 584 P2d 275 (1978)

87.001
Short title
87.005
Definitions for ORS 87.001 to 87.060 and 87.075 to 87.093
87.007
Protection from construction liens perfected after sale of residential property completed
87.010
Construction liens
87.015
Land and interests therein subject to lien
87.018
Delivery of notices
87.021
Notice to owners
87.023
Notice of right to lien
87.025
Priority of perfected liens
87.027
Right of owner to demand list of services, materials, equipment and labor
87.030
Effect of owner’s knowledge of improvement
87.035
Perfecting lien
87.036
Subcontractor’s perfection of claim of lien
87.037
Prohibition against claim of lien
87.039
Notice of filing claim of lien
87.045
Completion date of improvement
87.050
Recording
87.055
Duration of lien
87.057
Notice of intent to foreclose
87.060
Foreclosure
87.070
Amount of recovery by contractor
87.075
Exemption of building materials from attachment by third persons
87.076
Bond or deposit of money
87.078
Notice of filing bond or depositing money
87.081
Filing affidavit with county officer
87.083
Foreclosure after filing of bond or deposit of money
87.086
Determination of adequacy of bond
87.088
Release of lien or return of money
87.089
Limitations on actions
87.093
Information Notice to Owner
87.142
Definitions for ORS 87.142 to 87.490 and 87.910
87.146
Priorities of liens
87.152
Possessory lien for labor or material expended on chattel
87.156
Innkeeper’s lien
87.159
Lien for care of impounded animal
87.162
Landlord’s lien
87.166
Attachment of liens
87.172
Time period before foreclosure allowed
87.176
Fees for storage of chattel
87.177
Bond or deposit of money for lien for storage of chattel
87.178
Foreclosure after filing of bond or deposit of money
87.179
Determination of adequacy of bond
87.181
Release of lien or return of money
87.182
Effect of prior security interest on method of foreclosure
87.186
Location of foreclosure sale
87.192
Notice of foreclosure sale to lien debtor
87.196
Notice of foreclosure sale to secured parties
87.202
Statement of account of foreclosure sale
87.206
Disposition of proceeds of foreclosure sale
87.212
Liability for improper sale of fungible chattels
87.214
Disposal of property left with launderer or dry cleaner
87.216
Nonpossessory lien for labor or material expended on chattel
87.222
Logger’s, woodworker’s and timberland owner’s lien
87.226
Agricultural services lien
87.228
Effect on agricultural services lien when payment for produce is made prior to filing of lien claim
87.232
Fishing lien and fish worker’s lien
87.236
Attachment of liens
87.242
Filing notice of claim of lien
87.246
Recording
87.252
Notice to owner and holders of security interests
87.256
Limitation on extent of liens
87.262
Foreclosure
87.266
Duration of liens
87.272
Petition for foreclosure without suit
87.276
Evidence admissible
87.282
Waiver of right to hearing before filing of petition
87.288
Show cause order
87.296
Waiver of right to hearing after issuance of show cause order
87.302
Authority of court on sustaining validity of lien claim
87.306
Foreclosure by sale without suit
87.312
Effect of notice of foreclosure sale to secured parties
87.316
Disposition of proceeds of foreclosure sale
87.322
Effect of prior security interest on foreclosure of nonpossessory lien for labor or material expended on chattel
87.326
Protection from theft and damage of chattel subject to lien
87.332
Injury or removal of chattel subject to lien
87.336
Costs and attorney fees in foreclosure by suit
87.342
Bond, letter of credit or deposit of money to discharge lien on chattel
87.346
Filing certificate of lien satisfaction upon payment of claim
87.352
Mining labor and material lien
87.356
Lien for preparing land for irrigation or cultivation
87.358
Nurseryman’s lien
87.362
Irrigation power lien
87.364
Attachment of liens
87.366
Filing notice of claim of lien
87.372
Recording
87.376
Duration of liens
87.382
Foreclosure
87.386
Costs and attorney fees in foreclosure
87.392
Priorities of liens
87.430
Attorney’s possessory lien
87.435
Bond, letter of credit or deposit of money to discharge attorney’s possessory lien
87.440
Determination of adequacy of bond or letter of credit
87.445
Attorney’s lien upon actions and judgments
87.450
Filing notice of claim of lien on judgment for sum of money
87.455
Filing notice of claim of lien on judgment for possession of personal property
87.460
Filing of notice of claim of lien on judgment for possession of real property
87.465
Effect of failure to file notice of claim of lien
87.470
Contents of notice of claim of lien
87.475
Effect of settlement on attorney’s lien
87.480
Attorney’s right and power over actions and judgments
87.485
Attorney fees
87.490
Priority of attorney’s lien upon actions and judgments
87.501
Definitions for ORS 87.501 to 87.542
87.503
Lien for long term care
87.507
Perfecting lien
87.512
Contents of notice of lien
87.517
Recording notice of lien
87.522
Foreclosure of lien
87.527
Limitations on property subject to lien
87.533
Assets and income that are exempt from lien
87.537
Duration of lien
87.539
Discharge or release of lien claim
87.542
Priority of lien
87.555
Hospitals, physicians, physician assistants and nurse practitioners as lien claimants
87.560
Limitations on extent of lien
87.565
Notice of lien required
87.570
Form of notice
87.575
Lien docket
87.581
Liability of person or insurer to hospital, physician, physician assistant or nurse practitioner
87.585
Foreclosure
87.603
Definitions for ORS 87.603 to 87.633
87.607
Ambulance services lien
87.613
Notice of lien required
87.617
Form of notice
87.623
Notices recorded in lien docket
87.627
Payment after notice of lien
87.633
Foreclosure
87.685
Definitions for ORS 87.685 to 87.695
87.686
Rental agreement
87.687
Self-service storage facility owner’s possessory lien
87.689
Notice of foreclosure and sale
87.691
Sale of property subject to lien
87.693
ORS 87.687 as exclusive law for creating lien
87.694
Late fee
87.695
Short title
87.700
Definitions for ORS 87.228 and 87.700 to 87.736
87.705
Agricultural produce lien
87.710
Filing notice of lien
87.715
Priority
87.725
Foreclosure
87.730
Expiration of lien for failure to bring timely foreclosure suit
87.735
Filing certificate of lien satisfaction upon payment for produce
87.736
Form of notices filed under ORS 87.710 and certificates filed under ORS 87.735
87.750
Definitions for ORS 87.750 to 87.777
87.755
Grain producer’s lien
87.762
Filing notice of lien
87.767
Form of notice
87.772
Expiration of lien for failure to bring timely foreclosure action
87.777
Filing certificate of lien satisfaction upon payment for grain
87.806
Filing of federal tax liens
87.811
Certification of tax lien notices
87.816
Keeping of index and files with respect to tax liens
87.821
Filing and indexing fee
87.826
Construction
87.831
Short title
87.855
Lien for contributions to employee benefit plan
87.860
Filing of claim of lien
87.865
Foreclosure
87.870
Definitions for ORS 87.870 to 87.876
87.872
Lien for mold created or work performed with mold
87.876
Sale of mold
87.910
Cost of preparing lien notice
87.920
Recording of document not to create lien, affect title or constitute notice except as authorized by law
87.930
Secretary of State to furnish list of persons who have filed financing statement
Green check means up to date. Up to date