Health Care Facilities

ORS 441.296
Liability for rent or contracts


A trustee is not required to honor any lease, mortgage, secured transaction or other wholly or partially executory contract entered into by the licensee if in the judgment of the court the terms thereof are unconscionable.


If the trustee is in possession of real estate or goods subject to a lease, mortgage or security interest which the trustee is permitted to avoid under subsection (1) of this section, and if the real estate or goods are necessary for the continued operation of the facility, the trustee may apply to the court to set a reasonable rental. The court shall hold a hearing on the application within 15 days. The trustee shall send notice of the application to any known owners of the property involved at least 10 days prior to the hearing. Payment by the trustee of the amount determined by the court to be reasonable is a defense to any action against the trustee for payment or for possession of the goods or real estate subject to the lease or mortgage involved by any person who received such notice. However, the payment does not relieve the licensee of any liability for the difference between the amount paid by the trustee and the amount due under the original lease or mortgage involved. [1981 c.868 §6; 2009 c.539 §5]
§§ 441.277 to 441.323

Law Review Citations

18 WLR 135 (1982)

Chapter 441

Atty. Gen. Opinions

Licensing and phantom beds, (1970) Vol 40, p 171; a hospital's employing a licensed physical therapist as unauthorized practice, (1975) Vol 37, p 963


Last accessed
Jun. 26, 2021