Effect of notice of foreclosure sale to secured parties
- failure to give notice
(1)A person who claims a lien or has a security interest in a chattel to be sold at a foreclosure sale and who is notified under ORS 87.306 (Foreclosure by sale without suit) (2) may discharge the foreclosing lien claimant’s lien and preserve the security interest or lien claim of the person by paying the foreclosing lien claimant the amount of the lien claim and the expenses actually incurred in foreclosing it. If the person does not so discharge the lien before the day of the foreclosure sale, the security interest or lien claim of the person is extinguished.
(2)If the chattel to be sold at a foreclosure sale is a chattel for which a certificate of title is required by the laws of this state and if the lien claimant does not notify a person whom the certificate of title indicates has a security interest or lien in the chattel as required by ORS 87.306 (Foreclosure by sale without suit) (2), the chattel remains subject to that security interest or lien and the buyer of the chattel at a foreclosure sale held under ORS 9.370 (Compelling delivery when attorney claims lien), 87.142 (Definitions for ORS 87.142 to 87.490 and 87.910) to 87.490 (Priority of attorney’s lien upon actions and judgments), 87.705 (Agricultural produce lien), 87.710 (Filing notice of lien), 87.910 (Cost of preparing lien notice) and 90.120 (Applicability of other statutory lien, tenancy and rent provisions) takes the chattel subject to the security interest or lien.
(3)If a lien claimant does not notify a person, other than a person indicated on a certificate of title as a secured party or lienholder, who claims a security interest or lien on the chattel sold at a foreclosure sale as required by ORS 87.306 (Foreclosure by sale without suit) (2), the lien claimant is liable to that person for a sum equal to the fair market value of the chattel sold at the foreclosure sale or the amount due that person under the security agreement or lien at the time of the foreclosure sale, whichever amount is less. The secured party or other lien claimant shall recover that sum by an action at law. [1975 c.648 §34]
Section 87.312 — Effect of notice of foreclosure sale to secured parties; failure to give notice,