2007 Oregon Code - Chapter 83 :: Chapter 83 - Retail Installment Contracts
Chapter 83 Retail
Installment Contracts
2007 EDITION
RETAIL INSTALLMENT CONTRACTS
COMMERCIAL TRANSACTIONS
GOODS AND SERVICES
83.010 Definitions
for ORS 83.010 to 83.190
83.020 Retail
installment contract requirements; exceptions
83.030 Contents
of contract
83.040 Subsequent
purchases under original contract
83.050 Contracts
completed by mail and based on catalog of seller
83.060 Filling
blanks
83.070 Delivery
of copy of contract to buyer
83.080 Informing
buyer of service charge and right to prepay; monthly statement
83.090 Service
charge; other fees
83.095 Service
charge computed by actuarial method
83.100 Extra
charges; miscellaneous provisions of contract
83.110 Insurance
83.120 Receipts;
schedule of payments
83.130 Voluntary
prepayment by buyer; refund
83.140 Consolidation
of purchases with prior contract
83.150 Unenforceable
contract provisions
83.160 Waiver
of ORS 83.010 to 83.190
83.170 Effect
of violation of ORS 83.010 to 83.190 by seller
83.180 Enforcement
of ORS 83.010 to 83.190
83.190 Civil
penalties
MOTOR VEHICLES; MOBILE HOMES
83.510 Definitions
for ORS 83.510 to 83.680
83.520 Form
and contents of retail installment contract
83.530 Filling
blanks
83.540 Delivery
of copy of contract to buyer
83.560 Finance
charge
83.565 Finance
charge computed by actuarial method; requirements; notice
83.580 Insurance
83.590 Delinquency
and collection charges
83.600 Schedule
of payments; receipts
83.610 Delivery
to buyer of instrument indicating full payment; release of security
83.620 Voluntary
prepayment by buyer; refund
83.630 Extension
of scheduled due date; deferment of scheduled payment; refinance charge
83.635 Acceptance
of retail installment contract by lender
83.650 Effect
of negotiation of notes on rights against motor vehicle dealer
83.660 Acceleration
provision
83.670 Unenforceable
contract provisions
83.680 Waiver
of provisions of ORS 83.510 to 83.680
HOME SOLICITATION SALES
83.710 Definitions
for ORS 83.710 to 83.750; application of ORS 83.710 to 83.750
83.715 Telephone
solicitation sale; contract; contents
83.720 Cancellation
of home solicitation sale; notice; exception
83.730 Written
agreement or offer to purchase; contents; notice of buyers right to cancel;
form
83.740 Duties
of seller upon cancellation of sale or revocation of offer to purchase
83.750 Rights
and duties of buyer upon cancellation of sale or revocation of offer to
purchase
MISCELLANEOUS
83.811 Exemption
from certain disclosure requirements for motor vehicle dealer or retail seller
83.813 Exemption
from certain disclosure requirements for assignee of retail installment
contract
83.820 Consumer
paper; negotiability; exception; rights and liabilities of assignees
83.850 Definitions
for ORS 83.850 and 83.860
83.860 Applicability
of claims and defenses of borrower or lessee when loan made or lease funded in
close connection with sale or retail lease
83.875 Definitions
for ORS 83.875, 83.880, 83.890 and 83.895
83.880
83.885
83.890 Notice
required in contract when seller intends to transfer contract
83.895 Effect
of sellers failure to provide notice
PENALTIES
83.990 Penalties
GOODS AND SERVICES
83.010
Definitions for ORS 83.010 to 83.190. As used in ORS 83.010 to 83.190 unless the context requires otherwise:
(1) Cash sale price means the price for
which the seller would have sold or furnished to the buyer, and the buyer would
have bought or obtained from the seller, the goods or services which are the
subject matter of a retail installment transaction, if the sale had been a sale
for cash. The cash sale price may include any taxes, registration and license
fees and charges for transferring vehicle titles, delivery, installation,
servicing, repairs, alterations or improvements.
(2) Goods means all chattels personal,
other than motor vehicles as defined in ORS 83.510, when purchased primarily
for personal, family or household use and not for commercial or business use,
but not including money or, except as provided in the next sentence, things in
action. Goods includes but is not limited to merchandise certificates or
coupons, issued by a retail seller, to be used in their face amount in lieu of
cash in exchange for goods or services sold by such a seller and goods which,
at the time of sale or subsequently, are to be so affixed to real property as
to become a part thereof, whether or not severable therefrom.
(3) Official fees means the amount of
the fees prescribed by law for filing, recording or otherwise perfecting, and
releasing or satisfying, a retained title, lien or other security interest
created by a retail installment transaction.
(4) Principal balance means the cash
sale price of the goods or services which are the subject matter of a retail
installment contract less the amount of the buyers down payment in money or
goods or both, plus the amounts, if any, included therein, if a separate
identified charge is made therefor and stated in the contract, for insurance
and official fees.
(5) Rate means the percentage which,
when multiplied times the outstanding balance for each month or other
installment period, yields the amount of the service charge for such month or
period.
(6) Retail buyer or buyer means a
person who buys or agrees to buy goods or obtains services or agrees to have
services rendered or furnished, from a retail seller.
(7) Retail charge agreement, revolving
charge agreement or charge agreement means an agreement entered into or
performed in this state prescribing the terms of retail installment
transactions which may be made thereunder from time to time and under the terms
of which a service charge is to be computed in relation to the buyers unpaid
balance from time to time.
(8) Retail installment contract or contract
means a contract, other than a retail charge agreement or an instrument
reflecting a sale made pursuant thereto, entered into or performed in this
state for a retail installment transaction. Retail installment contract
includes a chattel mortgage, a conditional sale contract and a contract in the
form of a bailment or a lease if the bailee or lessee contracts to pay as
compensation for their use a sum substantially equivalent to or in excess of
the value of the goods sold and if it is agreed that the bailee or lessee is
bound to become, or for no other or a merely nominal consideration, has the
option of becoming the owner of the goods upon full compliance with the
provisions of the bailment or lease.
(9) Retail installment transaction means
any transaction in which a retail buyer purchases goods or services from a
retail seller pursuant to a retail installment contract or a retail charge
agreement which provides for a service charge and under which the buyer agrees
to pay the unpaid balance in one or more installments.
(10) Retail seller or seller means a
person engaged in the business of selling goods or services to retail buyers.
(11) Service charge however denominated
or expressed, means the amount which is paid or payable for the privilege of
purchasing goods or services to be paid for by the buyer in installments over a
period of time. Service charge does not include the amount, if any, charged
for insurance premiums, delinquency charges, attorney fees, court costs or
official fees.
(12) Services means work, labor or
services of any kind when purchased primarily for personal, family or household
use and not for commercial or business use whether or not furnished in
connection with the delivery, installation, servicing, repair or improvement of
goods and includes repairs, alterations or improvements upon or in connection
with real property, but does not include services for which the price charged
is required by law to be determined or approved by or to be filed, subject to
approval or disapproval, with the United States or any state, or any
department, division, agency, officer or official of either as in the case of
transportation services.
(13) Time balance means the principal
balance plus the service charge. [1963 c.489 §1]
83.020
Retail installment contract requirements; exceptions. (1) Except as provided in subsections (2)
and (3) of this section, every retail installment contract shall be contained
in a single document which shall contain the entire agreement of the parties
including any promissory notes or other evidences of indebtedness between the
parties relating to the transaction, except as provided in ORS 83.040, 83.050
and 83.140.
(2) Where the buyers obligation to pay
the time balance is represented by a promissory note secured by a chattel
mortgage, the promissory note may be a separate instrument if the mortgage
recites the amount and terms of payment of such note and the promissory note
recites that it is secured by a mortgage.
(3) In a transaction involving the repair,
alteration or improvement upon or in connection with real property, the
contract may be secured by a mortgage on the real property contained in a
separate document. Home improvement retail sales transactions which are
financed or insured by the Federal Housing Administration are not subject to
ORS 83.010 to 83.190.
(4) The contract shall be dated, signed by
the retail buyer and completed as to all essential provisions, except as
otherwise provided in ORS 83.050 and 83.060. The printed or typed portion of
the contract, other than instructions for completion, shall be in a size equal
to at least 8-point type. [1963 c.489 §2]
83.030
Contents of contract. The
retail installment contract shall contain the names of the seller and the
buyer, the place of business of the seller, the residence or other address of
the buyer as specified by the buyer and a description or identification of the
goods sold or to be sold, or services furnished or rendered or to be furnished
or rendered. The contract also shall contain the following items, which shall
be set forth in the sequence appearing below; however, additional items may be
included to explain the calculations involved in determining the balance to be
paid by the buyer:
(1) The cash sale price of each item of
goods or services;
(2) The amount of the buyers down
payment, identifying the amounts paid in money and allowed for goods traded in;
(3) The difference between subsections (1)
and (2) of this section;
(4) The aggregate amount, if any, included
for insurance, specifying the type or types of insurance and the terms of
coverage;
(5) The aggregate amount of official fees;
(6) The principal balance, which is the
sum of subsections (3), (4) and (5) of this section;
(7) The dollar amount or rate of the
service charge;
(8) The amount of the time balance owed by
the buyer to the seller, which is the sum of subsections (6) and (7) of this section,
if subsection (7) is stated in a dollar amount; and
(9) The maximum number of installment
payments required, the amount of each installment and the due date of each
payment necessary to pay such balance. However, if installment payments other
than the final payment are stated as a series of equal scheduled amounts and if
the amount of the final installment payment does not substantially exceed the
scheduled amount of each preceding installment payment, the maximum number of
payments and the amount and due date of each payment need not be separately
stated and the amount of the scheduled final installment payment may be stated
as the remaining unpaid balance. The due date of the first installment payment
may be fixed by a day or date or may be fixed by reference to the date of the
contract or to the time of delivery or installation. [1963 c.489 §4]
83.040
Subsequent purchases under original contract. A retail installment contract may be contained in more than one
document, provided that one such document shall be an original document signed
by the retail buyer, stated to be applicable to purchases of goods or services
to be made by the retail buyer from time to time. In such case such document,
together with the sales slip, account book or other written statement relating
to each purchase, shall set forth all of the information required by ORS 83.030
and shall constitute the retail installment contract for each purchase. On each
succeeding purchase pursuant to such original document, the sales slip, account
book or other written statement may at the option of the seller constitute the
memorandum required by ORS 83.140. [1963 c.489 §5]
83.050
Contracts completed by mail and based on catalog of seller. (1) Retail installment contracts negotiated
and entered into by mail without personal solicitation by salesmen or other
representatives of the seller and based upon a catalog of the seller, or other
printed solicitation of business, if such catalog or other printed solicitation
clearly sets forth the cash sale prices and other terms of sales to be made
through such medium, may be made as provided in this section. The provisions of
ORS 83.010 to 83.190 with respect to retail installment contracts shall be
applicable to such sales, except that the retail installment contract, when
completed by the buyer need not contain the items required by ORS 83.030.
(2) When the contract is received from the
retail buyer, the seller shall prepare a written memorandum containing all of
the information required by ORS 83.030 to be included in a retail installment
contract. In lieu of delivering a copy of the contract to the retail buyer as
provided in ORS 83.070, the seller shall deliver to the buyer a copy of such
memorandum prior to the due date of the first installment payable under the
contract. However, if the catalog or other printed solicitation does not set
forth all of the other terms of sales in addition to the cash sale prices, such
memorandum shall be delivered to the buyer prior to or at the time of delivery of
the goods or services. [1963 c.489 §6]
83.060
Filling blanks. The seller
shall not obtain the signature of the buyer to any contract when it contains
blank spaces of items which are essential provisions of the transaction except
as provided in ORS 83.050. However, if delivery of the goods is not made at the
time of the execution of the contract, the identifying numbers or marks of the
goods or similar information and the due date of the first installment may be
inserted by the seller in the sellers counterpart of the contract after it has
been signed by the buyer. [1963 c.489 §7]
83.070
Delivery of copy of contract to buyer. The retail seller shall deliver to the retail buyer, or mail to the
retail buyer at the address shown on the retail installment contract, a copy of
the contract as accepted by the seller. Until the seller does so, the buyer
shall be obligated to pay only the cash sale price. Any acknowledgment by the
buyer of delivery of a copy of the contract shall be in a size equal to at
least 10-point bold type and, if contained in the contract, shall appear
directly above the buyers signature. [1963 c.489 §3]
83.080
Informing buyer of service charge and right to prepay; monthly statement. (1) At or prior to the time a retail charge
agreement is made the seller shall advise the buyer in writing, on the
application form or otherwise, or orally, that a service charge will be
computed on the outstanding balance for each month (which need not be a
calendar month) or other regular period agreed upon, the schedule or rate by
which the service charge will be computed, and that the buyer may at any time
pay the total unpaid balance. If this information is given orally, the seller
shall, upon approval of the buyers credit, deliver to the buyer or mail to the
buyer at the address of the buyer, a memorandum setting forth this information.
(2) The seller or holder of a retail
charge agreement shall promptly supply the buyer with a statement as of the end
of each monthly period (which need not be a calendar month) or other regular
period agreed upon, in which there is any unpaid balance thereunder, which
statement shall set forth the following:
(a) The unpaid balance under the retail
charge agreement at the beginning and at the end of the period;
(b) Unless otherwise furnished by the
seller to the buyer by sales slip, memorandum, or otherwise, a description or
identification of the goods or services purchased during the period, the cash
sale price and the date of each purchase;
(c) The payments made by the buyer to the
seller and any other credits to the buyer during the period;
(d) The amount, if any, of any service
charge for such period; and
(e) A legend to the effect that the buyer
may at any time pay the total unpaid balance. [1963 c.489 §12]
83.090
Service charge; other fees.
The service charge shall be inclusive of all charges incident to investigating
and making the retail installment contract or charge agreement and for the
privilege of making the installment payments thereunder and no other fee,
expense or charge whatsoever shall be taken, received, reserved or contracted
therefor. [1963 c.489 §13]
83.095
Service charge computed by actuarial method. (1) Notwithstanding any other provision of ORS 83.010 to 83.190 and
83.820 to 83.895, a retail seller in a retail installment contract may contract
for and charge, receive and collect a service charge computed by the actuarial
method.
(2) When a retail installment contract
provides for a service charge computed by the actuarial method:
(a) The retail installment contract may
provide for any other charge, cost or fee allowed under ORS 83.010 to 83.190
and 83.820 to 83.895, in addition to the service charge.
(b) The amount to be disclosed as the
service charge and used as the service charge component of the other amounts
disclosed pursuant to ORS 83.010 to 83.190 and 83.820 to 83.895 shall be the
amount of the service charge to be paid assuming all payments are made exactly
as agreed.
(c) The refund credit provisions of ORS
83.130 shall not apply. [1983 c.432 §4]
83.100
Extra charges; miscellaneous provisions of contract. (1) Except as provided in ORS 20.082, the
holder of any retail installment contract or retail charge agreement may not
collect any delinquency or collection charges, including any attorneys fee and
court costs and disbursements, unless the contract or charge agreement so
provides. In such cases, the charges shall be reasonable, and no attorneys fee
may be recovered unless the contract or charge agreement is referred for
collection to an attorney not a salaried employee of the holder.
(2) The contract or charge agreement may
contain other provisions not inconsistent with the purposes of ORS 83.010 to
83.190, including but not limited to provisions relating to refinancing,
transfer of the buyers equity, construction permits and title reports. [1963
c.489 §9; 2001 c.542 §7]
83.110
Insurance. (1) If the cost
of any insurance is included in the retail installment contract or retail
charge agreement:
(a) The contract or agreement shall state
the nature, purpose, term and amount of such insurance.
(b) The contract or agreement shall state
whether the insurance is to be procured by the buyer or the seller.
(c) The amount included for such insurance
shall not exceed the premiums chargeable in accordance with the rate fixed for
such insurance by the insurer, except where the amount is less than $1.
(2) Except as provided in ORS 743.377, if
the insurance is to be procured by the seller or holder, the seller or holder
shall, within 45 days after delivery of the goods or furnishing of the services
under the contract, deliver, mail or cause to be mailed to the buyer, at the
address as specified in the contract, a notice thereof or a copy of the policy
or policies of insurance or a certificate or certificates of the insurance so
procured. [1963 c.489 §14; 1967 c.359 §676]
83.120
Receipts; schedule of payments.
A buyer shall be given a written receipt for any payment when made in cash.
Upon written request of the buyer, the holder of a retail installment contract
shall give or forward to the buyer a written statement of the dates and amounts
of payments and the total amount unpaid under the contract. Such a statement
shall be given the buyer once without charge. If any additional statement is
requested by the buyer, it shall be supplied by the holder at a charge not in
excess of $1 for each additional statement so supplied. [1963 c.489 §10]
83.130
Voluntary prepayment by buyer; refund. (1) Notwithstanding the provisions of any retail installment contract
to the contrary, and if the rights of the purchaser have not been terminated or
forfeited under the terms of the contract, any buyer may prepay in full the
unpaid time balance thereof at any time before its final due date. If the buyer
does so, and if the contract is not in default more than two months under any
term or condition of the contract, the buyer shall receive a refund credit of
the unearned portion of the service charge for the prepayment. The amount of
the refund credit shall be not less than the total service charge contracted
for to maturity, less the greater of:
(a) Ten percent of the amount financed or
$75, whichever is less; or
(b) Either of the following, at the
discretion of the seller or holder:
(A) The service charge earned to the date
of prepayment, computed by applying the effective rate on the contract to the
actual principal balances outstanding, for the periods of time the balances
were actually outstanding. In determining the effective rate, the holder may
apply to the scheduled payments the actuarial method by which each scheduled
payment is applied first to the accrued and unpaid service charges and any
amount remaining is applied to the reduction of the principal balance.
(B) The service charge earned to the installment
due date nearest the date of prepayment, computed by applying the effective
rate on the contract to the actual principal balances outstanding, for the
periods of time the balances were actually outstanding. For purposes of rebate
computations under this subparagraph, the installment due date preceding the
date of prepayment shall be considered to be nearest if prepayment occurs 15
days or less after that installment date. If prepayment occurs more than 15
days after the preceding installment due date, the next succeeding installment
due date shall be considered to be nearest to the date of prepayment. In
determining the effective rate, the seller may apply to the scheduled payments
the actuarial method, by which each scheduled payment is applied first to the
accrued and unpaid service charges and any amount remaining is applied to
reduction of the principal balance.
(2) When the amount of the refund credit
is less than $2, no refund need be made. [1963 c.489 §8; 1981 c.910 §1; 1983
c.432 §1]
83.140
Consolidation of purchases with prior contract. (1) If, in a retail installment transaction,
a retail buyer makes any subsequent purchases of goods or services from a
retail seller from whom the buyer has previously purchased goods or services
under one or more retail installment contracts, and the amounts under such
previous contract or contracts have not been fully paid, the subsequent
purchases may, at the sellers option, be included in and consolidated with one
or more of the previous contracts. All the provisions of ORS 83.010 to 83.190
with respect to retail installment contracts shall be applicable to such
subsequent purchases except as otherwise provided in this subsection. In the
event of such consolidation, in lieu of the buyers executing a retail
installment contract respecting each subsequent purchase, as provided in this
section, it shall be sufficient if the seller shall prepare a written
memorandum of each such subsequent purchase, in which case the provisions of
ORS 83.020, 83.030 and 83.070 shall not be applicable. Unless previously
furnished in writing to the buyer by the seller, by sales slip, memorandum or
otherwise, such memorandum shall set forth, with respect to each subsequent
purchase, items required in ORS 83.030 (1) to (7), and in addition, the amount
of the time balance owed by the buyer to the seller for the subsequent
purchase, the outstanding balance of the previous contract or contracts, the
consolidated time balance, and the revised installments applicable to the
consolidated time balance, if any, in accordance with ORS 83.030. The seller
shall deliver to the buyer a copy of such memorandum prior to the due date of
the first installment of such consolidated contract.
(2) When such subsequent purchases are
made, if the seller has retained title or taken a lien or other security
interest in any of the goods purchased under any one of the contracts included
in the consolidation:
(a) The entire amount of all payments made
prior to such subsequent purchases shall be deemed to have been applied on the
previous purchases; and
(b) The amount of any down payment on the
subsequent purchase shall be allocated in its entirety to such subsequent
purchase.
(3) The provisions of subsection (2) of
this section shall not apply to cases where such previous and subsequent
purchases involve equipment, parts or other goods attached or affixed to goods
previously purchased and not fully paid, or to services in connection therewith
rendered by the seller at the buyers request. [1963 c.489 §11]
83.150
Unenforceable contract provisions. No provision of a retail installment contract or retail charge
agreement shall be valid:
(1) By which the buyer agrees not to
assert against the seller or against an assignee a claim or defense arising out
of the sale.
(2) That provides for a wage assignment. [1963
c.489 §15; 1971 c.232 §1]
83.160
Waiver of ORS 83.010 to 83.190.
No act or agreement of the retail buyer before or at the time of the making of
a retail installment contract, retail charge agreement or purchases thereunder
shall constitute a valid waiver of any of the provisions of ORS 83.010 to
83.190 or of any remedies granted to the buyer by law. [1963 c.489 §16]
83.170
Effect of violation of ORS 83.010 to 83.190 by seller. Any seller who enters into any contract or
agreement which does not comply with the provisions of ORS 83.010 to 83.190 or
who violates any provision of ORS 83.010 to 83.190 except as a result of an
accidental or bona fide error shall be barred from the recovery of any service
charge, official fees or any delinquency or collection charge under or in
connection with the related retail installment contract or purchases under a
retail charge agreement; but the seller may nevertheless recover from the buyer
an amount equal to the cash price of the goods or services and the cost to the
seller of any insurance included in the transaction. [1963 c.489 §18]
83.180
Enforcement of ORS 83.010 to 83.190. The Attorney General of the State of
83.190
Civil penalties. Any person
who violates any order or injunction issued pursuant to ORS 83.010 to 83.190 shall
forfeit and pay a civil penalty of not more than $1,000. For the purpose of
this section the circuit court issuing any injunction shall retain
jurisdiction, and the cause shall be continued, and in such cases the Attorney
General acting in the name of the state may petition for the recovery of civil
penalties. [1963 c.489 §21]
MOTOR
VEHICLES; MOBILE HOMES
83.510
Definitions for ORS 83.510 to 83.680. As used in ORS 83.510 to 83.680 except where the context otherwise
requires:
(1) Cash sale price means the price for
which the motor vehicle dealer would sell to the buyer, and the buyer would buy
from the motor vehicle dealer, the motor vehicle that is covered by the retail
installment contract, if the sale were a sale for cash instead of a retail installment
sale. The cash sale price may include any taxes, registration, license and
other fees and charges for accessories and their installation and for
delivering, servicing, repairing or improving the motor vehicle.
(2) Finance charge means that part of
the time sale price that exceeds the aggregate of the cash sale price, the
amounts, if any, included in a retail installment sale for insurance and other
benefits, and official fees.
(3)(a) Financing agency means a person
engaged, in whole or in part, in purchasing or otherwise acquiring retail
installment contracts or retail lease agreements from one or more motor vehicle
dealers or retail lessors. Financing agency includes, but is not limited to,
financial institutions, as defined in ORS 706.008, and consumer credit
companies, if so engaged. Financing agency also includes a motor vehicle
dealer or retail lessor engaged, in whole or in part, in the business of
holding retail installment contracts or retail lease agreements acquired from
retail buyers or retail lessees.
(b) Financing agency does not include
the pledgee or other holder of more than one retail installment contract or
retail lease agreement pledged or otherwise given by a motor vehicle dealer or
a transferee from the motor vehicle dealer to a lender as collateral security
for a loan made to the motor vehicle dealer or transferee of the motor vehicle
dealer.
(4) Holder of a retail installment
contract or retail lease agreement means the motor vehicle dealer or retail
lessor of the motor vehicle covered by the contract or lease or, if the
contract or lease is purchased or otherwise acquired by a financing agency or
other assignee, the financing agency or other assignee.
(5) Mobile home means a structure,
transportable in one or more sections, that is eight body feet or more in width
and 32 body feet or more in length, and that is built on a permanent chassis
and designed to be used as a dwelling with or without a permanent foundation
when connected to the required utilities. Mobile home includes the plumbing,
heating, air conditioning and electrical systems contained within the
structure.
(6)(a) Motor vehicle or vehicle means:
(A) A self-propelled device used for
transportation of person or property upon a public highway.
(B) A trailer, semitrailer, mobile home or
trailer home.
(b) Motor vehicle or vehicle does not
include tractors, power shovels, road machinery, agricultural machinery, boat
trailers or other machinery not designed primarily for highway transportation,
which may be used incidentally to transport persons or property on a public
highway, or devices that move upon or are guided by a track or travel through
the air.
(7) Motor vehicle dealer means any
person who sells, trades, leases, displays or offers for sale, trade, lease or
exchange motor vehicles pursuant to a retail installment contract or retail
lease agreement or who offers to negotiate or purchase motor vehicles on behalf
of third parties pursuant to a retail installment contract or retail lease
agreement.
(8) Official fees means the filing or
other fees required by law to be paid to a public officer to perfect the
interest or lien, in or on a motor vehicle, retained or taken by a motor
vehicle dealer under a retail installment contract or retail lease agreement,
and to file or record a release, satisfaction or discharge of the contract.
(9) Person means individual,
partnership, corporation, association or other group, however organized.
(10) Retail buyer or buyer means a
person who buys a motor vehicle from a motor vehicle dealer and who executes a
retail installment contract in connection therewith.
(11) Retail installment contract or contract
means an agreement, entered into in this state, pursuant to which the title to,
the property in or a lien upon a motor vehicle, which is the subject matter of
a retail installment sale, is retained or taken by a motor vehicle dealer from
a retail buyer as security, in whole or in part, for the buyers obligation. Retail
installment contract or contract includes a chattel mortgage, a conditional
sales contract and a contract for the bailment or leasing of a motor vehicle by
which the bailee or lessee contracts to pay as compensation for its use a sum
substantially equivalent to or in excess of its value and by which it is agreed
that the bailee or lessee is bound to become, or for no other or for a merely
nominal consideration has the option of becoming, the owner of the motor
vehicle upon full compliance with the terms of the contract.
(12)(a) Retail installment sale or sale
means a sale of a motor vehicle by a motor vehicle dealer to a retail buyer for
a time sale price payable in one or more installments, payment of which is
secured by a retail installment contract. Retail installment sale or sale
includes a bailment or leasing as described in subsection (11) of this section.
(b) Retail installment sale or sale
does not include a sale of a motor vehicle for resale in the ordinary course of
the buyers business.
(13) Retail lease means a lease of a
motor vehicle by a retail lessor to a retail lessee, payment of which is
secured by a retail lease agreement. Retail lease does not include a lease
that constitutes a retail installment contract.
(14) Retail lease agreement means an
agreement entered into in this state between a retail lessor and a retail
lessee for the lease of a motor vehicle. The agreement shall be in the form of
a bailment or lease for the use of a motor vehicle by an individual for
personal, family or household purposes, whether or not the retail lessee has
the option to purchase or otherwise become the owner of the motor vehicle at
the expiration of the lease.
(15) Retail lessee means a person who
leases a motor vehicle from a retail lessor by entering into a retail lease
agreement.
(16) Retail lessor means a motor vehicle
dealer who transfers an interest in or supplies a motor vehicle to a retail
lessee, regardless of whether or not the motor vehicle dealer is identified as
the retail lessor on the retail lease agreement.
(17) Time sale price means the aggregate
of the cash sale price of the motor vehicle, the amount, if any, included for
insurance and other benefits, official fees and the finance charge. [1957 c.625
§1; 1979 c.304 §1; 1979 c.816 §1a; 1987 c.674 §1; 1997 c.631 §383; 2001 c.104 §25;
2001 c.117 §1]
83.520
Form and contents of retail installment contract. (1) A retail installment contract shall be
in writing, shall contain all the agreements of the parties, shall contain the
names of the motor vehicle dealer and the buyer, the place of business of the
motor vehicle dealer, the residence or place of business of the buyer as
specified by the buyer and a description of the motor vehicle including its
make, year model, model and identification numbers or marks, and shall be
signed by the buyer and the motor vehicle dealer.
(2) The printed portion of the contract
shall be in at least 8-point type. The contract shall contain in printing or
writing of a size equal to at least 10-point bold type, the following:
(a) Both at the top of the contract and
directly above the space reserved for the signature of the buyer, the words RETAIL
INSTALLMENT CONTRACT;
(b) A specific statement that liability
insurance coverage for bodily injury and property damage caused to others is
not included, if that is the case; and
(c) The following notice:
______________________________________________________________________________
NOTICE TO THE BUYER
Do not sign this contract before you read
it or if it contains any blank space, except that:
(1) If delivery of the motor vehicle or
mobile home is to be made to you after this contract is signed, the serial
number or other identifying information and the due date of the first
installment may be filled in at the time of delivery; and
(2) If the name of the financing agency is
not known at the time the contract is executed, the name of the financing
agency may be inserted in the contract on or about the date the name of the
financing agency is known.
You are entitled to a copy of this
contract.
You have the right to pay off in advance
the full amount due and to obtain a partial refund of the finance charge.
______________________________________________________________________________
(3) The contract shall contain the
following items:
(a) The cash sale price of the motor
vehicle which is the subject matter of the retail installment sale.
(b) The amount of the buyers down
payment, itemizing the amounts, if any, paid or credited in money or in goods
and containing a brief description of the goods traded in.
(c) The difference between the items set
forth in paragraphs (a) and (b) of this subsection.
(d) The amount, if any, included for
insurance and other benefits, specifying the coverages and benefits. For purposes
of this paragraph, other benefits includes any amounts actually paid or to be
paid by the motor vehicle dealer pursuant to an agreement with the buyer to
discharge a security interest, lien or lease interest on property traded in.
(e) The amount, if any, of official fees.
(f) The principal balance, which is the
sum of the items set forth in paragraphs (c), (d) and (e) of this subsection.
(g) The amount of the finance charge.
(h) The time balance, which is the sum of
the items set forth in paragraphs (f) and (g) of this subsection.
(i) The time sale price.
(j) A plain and concise statement of the
amount in dollars of each installment or future payment to be made by the
buyer, the number of installments required, and the date or dates at which, or
period or periods in which, the installments are due.
(4) The contract may contain additional
items to explain the calculations involved in determining the stated time
balance to be paid by the buyer. [1957 c.625 §§2, 3, 5; 1979 c.816 §2; 1995
c.519 §3; 1999 c.525 §1; 2001 c.117 §5]
83.530
Filling blanks. (1) Except
as provided in subsection (2) of this section, a retail installment contract
shall not be signed by any party to the contract when the contract contains
blank spaces to be filled in after the contract is executed.
(2) A retail installment contract may be
signed by any party to the contract when the contract contains blank spaces to
be filled in after the contract is executed under the following conditions:
(a) If delivery of the motor vehicle is
not made at the time of execution, the identifying numbers or marks of the
motor vehicle or similar information and the due date of the first installment
may be inserted in the contract on or about the date of delivery.
(b) If the name of the financing agency is
not known at the time the contract is executed, the name of the financing
agency may be inserted in the contract on or about the date the name of the
financing agency is known. [1957 c.625 §8; 1995 c.519 §4]
83.540
Delivery of copy of contract to buyer. The motor vehicle dealer shall deliver to the buyer, or mail to the
buyer at the address shown on the contract, a copy of the contract signed by
the motor vehicle dealer. Until the motor vehicle dealer does so, a buyer who
has not received delivery of the motor vehicle shall have an unconditional
right to cancel the contract and to receive immediate refund of any amount paid
and redelivery of all goods delivered or traded in to the motor vehicle dealer
on account of or in contemplation of the contract. An acknowledgment by the
buyer of delivery of a copy of the contract shall be printed or written in a
size equal to at least 10-point bold type and, if contained in the contract,
shall also appear directly above the legend required above the buyers
signature by ORS 83.520 (2)(a). [1957 c.625 §4; 2001 c.117 §6]
83.550 [1957 c.625 §8; repealed by 1961 c.458 §1]
83.560
Finance charge. A motor
vehicle dealer may, in a retail installment contract, contract for and charge,
receive and collect a finance charge agreed upon by the motor vehicle dealer
and buyer. [1957 c.625 §§19,20,21; 1979 c.816 §3; 1981 c.412 §2; 2001 c.117 §7]
83.565
Finance charge computed by actuarial method; requirements; notice. (1) Notwithstanding any other provision of
ORS 83.510 to 83.680 and 83.820 to 83.895, a motor vehicle dealer, in a retail
installment contract, may contract for and charge, receive and collect a
finance charge computed by the actuarial method.
(2) When a retail installment contract
provides for a finance charge computed by the actuarial method:
(a) The retail installment contract may
provide for any other charge, cost or fee allowed under ORS 83.510 to 83.680
and 83.820 to 83.895, in addition to the finance charge.
(b) The amount to be disclosed as the
finance charge and used as the finance charge component of the other amounts
disclosed pursuant to ORS 83.510 to 83.680 and 83.820 to 83.895 shall be the
amount of the finance charge to be paid assuming all payments are made exactly
as agreed.
(c) The retail installment contract for
the sale of a mobile home may provide that the holder may refuse to accept
prepayments of less than the entire amount owed under the retail installment
contract if the prepayments:
(A) Are tendered on dates other than a specified
date each month; and
(B) Are not in amounts equal to the
principal portion of one or more of the earliest unmatured monthly
installments.
(d) The contract shall contain the
following notice in printing or writing of a size equal to at least 10-point
bold type, in lieu of the notice required by ORS 83.520 (2)(c):
______________________________________________________________________________
NOTICE TO THE BUYER
Do not sign this contract before you read
it or if it contains any blank space, except that:
(1) If delivery of the motor vehicle or
mobile home is to be made to you after this contract is signed, the serial
number or other identifying information and the due date of the first
installment may be filled in at the time of delivery; and
(2) If the name of the financing agency is
not known at the time the contract is executed, the name of the financing
agency may be inserted in the contract on or about the date the name of the
financing agency is known.
You are entitled to a copy of this contract.
You have the right to pay in advance the
full amount due and if you do so you may save a portion of the finance charge.
______________________________________________________________________________
(e) The refund credit provisions of ORS
83.620 shall not apply. [1981 c.910 §4; 1995 c.519 §5; 2001 c.117 §8]
83.570 [1957 c.625 §22; repealed by 1981 c.412 §24]
83.580
Insurance. (1) The amount,
if any, included for automobile insurance, shall not exceed the premiums
chargeable in accordance with rate filings made by the insurer with the
Director of the Department of Consumer and Business Services for such
insurance.
(2) The amount, if any, included for life,
health and accident or other insurance, other than automobile insurance, shall
not exceed the premiums charged by the insurer.
(3) Except as provided in ORS 743.377, the
motor vehicle dealer or financing agency, if an amount for automobile or other
insurance on the motor vehicle is included in a retail installment contract,
shall within 30 days after execution of the retail installment contract send or
cause to be sent to the buyer a policy or policies or certificate of insurance,
written by an insurance company authorized to do business in this state,
clearly setting forth the amount of the premium, the kind or kinds of insurance
and the scope of the coverage and all the terms, exceptions, limitations,
restrictions and conditions of the contract or contracts of insurance. The
buyer of a motor vehicle under a retail installment contract shall have the
privilege of purchasing such insurance from an insurance producer of the
selection of the buyer and of selecting an insurance company acceptable to the
motor vehicle dealer; provided, however, that the inclusion of the insurance
premium in the retail installment contract when the buyer selects the insurance
producer or company, shall be optional with the motor vehicle dealer and in
such case the motor vehicle dealer or financing agency shall have no obligation
to send, or cause to be sent, to the buyer the policy or certificate of
insurance.
(4) If an insurance policy or certificate
that was obtained for an amount included in the retail installment contract is
canceled, the unearned insurance premium refund received by the holder of the
contract shall be credited to the last maturing installments of the retail
installment contract except to the extent applied toward payment for similar
insurance protecting the interests of the buyer or of the buyer and the holder
of the contract. [1957 c.625 §6; 1967 c.359 §677; 2001 c.117 §9; 2003 c.364 §48]
83.590
Delinquency and collection charges. The holder of a retail installment contract, if the contract so
provides, may collect a delinquency charge on each installment in default for a
period of 10 days or longer. The delinquency charge for any installment shall
not exceed five percent of the delinquent installment. In addition to the
delinquency charge, the retail installment contract may provide for the payment
of reasonable collection costs. The collection costs may include the payment of
reasonable attorney fees, if the contract is referred to an attorney not a
salaried employee of the holder of the contract for collection, plus the court
costs and disbursements. [1957 c.625 §7; 1981 c.552 §1]
83.600
Schedule of payments; receipts.
Upon written request from the buyer, the holder of a retail installment
contract shall give or forward to the buyer a written statement of the dates
and amounts of payments made and the total amount unpaid on the contract. A
buyer shall be given a written receipt for any payment when made in cash. [1957
c.625 §12]
83.610
Delivery to buyer of instrument indicating full payment; release of security. After the payment of all sums for which the
buyer is obligated under a retail installment contract or other security
agreement, as defined in ORS 79.0102, and upon written demand made by the
buyer, the holder of such contract or agreement shall mail to the buyer at the
buyers last-known address, good and sufficient instruments to indicate payment
in full and to release all security in the motor vehicle. This section is
supplementary to and is not restrictive of ORS 86.440, 86.460 and 803.097 or of
ORS chapter 79. [1957 c.625 §23; 1961 c.726 §400; 1983 c.338 §880; 1989 c.148 §5;
2001 c.445 §161]
83.620
Voluntary prepayment by buyer; refund. (1) Notwithstanding the provisions of a retail installment contract to
the contrary, the buyer may pay in full at any time before maturity the
obligation contained in the retail installment contract. Upon the premature
payment, the buyer shall receive a refund credit. The amount of the refund
credit shall not be less than the total finance charge to maturity provided for
in the contract, less the greater of:
(a) Ten percent of the amount financed or
$75, whichever is less; or
(b) Either of the following, at the
discretion of the motor vehicle dealer or holder:
(A) The finance charge earned to the date
of prepayment, computed by applying the effective rate on the contract to the
actual principal balances outstanding, for the periods of time such balances
were actually outstanding. In determining the effective rate, the holder may
apply to the scheduled payments the actuarial method by which each scheduled
payment is applied first to the accrued and unpaid finance charges and any
amount remaining is applied to the reduction of the principal balance.
(B) The finance charge earned to the
installment due date nearest the date of prepayment, computed by applying the
effective rate on the contract to the actual principal balances outstanding,
for the periods of time the balances were actually outstanding. For purposes of
rebate computations under this subparagraph, the installment due date preceding
the date of prepayment shall be considered to be nearest if prepayment occurs
15 days or less after that installment date. If prepayment occurs more than 15
days after the preceding installment due date, the next succeeding installment
due date shall be considered to be nearest to the date of prepayment. In determining
the effective rate, the holder may apply to the scheduled payments the
actuarial method, by which each scheduled payment is applied first to the
accrued and unpaid finance charges and any amount remaining is applied to
reduction of the principal balance.
(2) When the amount of the credit for
premature payment is less than $2, no refund need be made.
(3) This section does not prohibit the
holder of a retail installment contract from collecting any charge, cost or fee
under ORS 83.590. [1957 c.625 §24; 1977 c.692 §1; 1981 c.910 §2; 1983 c.432 §2;
2001 c.117 §10]
83.630
Extension of scheduled due date; deferment of scheduled payment; refinance
charge. The holder of a
retail installment contract, upon agreement with the buyer, may extend the
scheduled due date or defer the scheduled payment of all or part of any
installment or installments. In any such case, the holder may restate the
amount of the installments and the time schedule therefor, and collect as a
refinance charge for the extension or deferment, a flat service fee not to
exceed $15 and a total additional charge on the balance being extended not
exceeding an amount equal to one-twelfth of the annual percentage rate
originally charged on the agreement for each month the payments on the agreement
are being extended or deferred. [1957 c.625 §25; 1981 c.552 §2; 1995 c.519 §6]
83.635
Acceptance of retail installment contract by lender. If a retail installment contract for the
purchase of a motor vehicle meets the requirements of ORS 83.510 to 83.680 and
contains information required by federal law to be disclosed in a retail
installment contract for the purchase of a motor vehicle, the retail
installment contract shall be accepted for consideration by any lender, except
for lenders licensed and regulated under the provisions of ORS chapter 725, to
whom application for credit relating to the retail installment contract is
made. [1995 c.519 §2]
83.640 [1957 c.625 §§10, 11; repealed by 1961 c.726
§427]
83.650
Effect of negotiation of notes on rights against motor vehicle dealer. (1) No retail installment contract shall
require or entail the execution, by the buyer, of any note or series of notes,
which when separately negotiated will cut off as against third parties any
right of action or defense which the buyer may have against the motor vehicle
dealer.
(2) The rights of a holder in due course
of any negotiable instrument executed contrary to subsection (1) of this
section are not impaired by reason of the violation of subsection (1) of this
section, but the buyer may bring an action against the motor vehicle dealer for
the recovery of any loss or expense incurred by reason of the violation of
subsection (1) of this section. The buyers action may be joined with any other
right of action the buyer has against the motor vehicle dealer arising out of
the installment sale. The court may award reasonable attorney fees to the
prevailing party in an action under this section. [1957 c.625 §9; 1995 c.618 §47;
2001 c.117 §11]
83.660
Acceleration provision. No
provision in a retail installment contract by which, in the absence of the
buyers default, the holder may, arbitrarily and without reasonable cause,
accelerate the maturity of any part or all of the time balance is enforceable.
This section does not prohibit provisions in a retail installment contract
accelerating any part or all of the time balance in the event of sale or
transfer, or removal outside the state of the motor vehicle covered by the
contract. [1957 c.625 §13]
83.670
Unenforceable contract provisions. (1) No provision in a retail installment contract for confession of
judgment, power of attorney therefor, or wage assignment is enforceable.
(2) No provision in a retail installment
contract that authorizes a motor vehicle dealer or holder of the contract or
other person acting on the behalf of the motor vehicle dealer or holder to
enter upon the buyers premises unlawfully, or to commit any breach of the
peace in the repossession of a motor vehicle is enforceable.
(3) No provision in a retail installment
contract by which the buyer waives any right of action against the motor
vehicle dealer or holder of the contract, or other person acting on the behalf
of the motor vehicle dealer or holder, for any illegal act committed in the
collection of payments under the contract or in the repossession of the motor
vehicle is enforceable.
(4) No provision in a retail installment
contract by which the buyer executes a power of attorney appointing the motor
vehicle dealer or holder of the contract, or other person acting on the behalf
of the motor vehicle dealer or holder, as the buyers agent in collection of
payments under the contract or in the repossession of the motor vehicle, is
enforceable.
(5) No provision in a retail installment
contract relieving the motor vehicle dealer from liability for any legal
remedies that the buyer may have had against the motor vehicle dealer under the
contract, or any separate instrument executed in connection therewith, is
enforceable. [1957 c.625 §§14,15,16,17,18; 2001 c.117 §12]
83.680
Waiver of provisions of ORS 83.510 to 83.680. Any waiver of the provisions of ORS 83.510 to 83.680 shall be
unenforceable and void. [1957 c.625 §28]
HOME
SOLICITATION SALES
83.710
Definitions for ORS 83.710 to 83.750; application of ORS 83.710 to 83.750. (1) As used in ORS 83.710 to 83.750:
(a) A transaction is a home solicitation
sale if:
(A) It is a sale, lease or rental of goods
or services, as defined in ORS 83.010;
(B) The seller or the sellers
representative personally solicits the sale, lease or rental, including a sale,
lease or rental in response to or following an invitation by the buyer; and
(C) The buyers written agreement or offer
to purchase is made at a place other than the place of business of the seller.
As used in this subparagraph, a place other than the place of business of the
seller means a place that is not the sellers main or permanent branch office
or permanent local address and includes but is not limited to the residence or
workplace of the buyer and facilities rented by the seller on a temporary or
short-term basis, such as a hotel or motel room, restaurant or dormitory
lounge.
(b) A transaction is a telephone
solicitation sale if:
(A) The seller or person acting for the
seller engages in a solicitation conducted by telephone to a residence;
(B) The transaction is initiated by the
seller or person acting for the seller and is in no way solicited by the buyer;
(C) The buyers agreement or offer to
purchase is given over the telephone to the seller or person acting for the
seller; and
(D) There is no personal contact between
the buyer and the seller or person acting for the seller prior to delivery of
goods or performance of services.
(c) Business day does not include a
Saturday, Sunday or legal holiday.
(2) The provisions of ORS 83.710 to 83.750
relating to home solicitation sales do not apply to:
(a) A sale made pursuant to a preexisting
revolving charge account unless the sale is made at the residence of the buyer;
(b) The activities of a financial
institution as defined in 15 U.S.C. 6827;
(c) A contract in writing for the sale or
lease of a house or business property or the construction of a new house or
business property;
(d) A sale made pursuant to prior business
negotiations relevant to the sale between the parties at a business
establishment at a fixed location where goods or services are offered or
exhibited for sale;
(e) A sale for cash or check in the amount
of less than $25;
(f) A sale of insurance, farm equipment or
motor vehicles;
(g) A sale of arts and crafts at a fair;
(h) A sale made at an event conducted
under and governed by ORS chapter 565; or
(i) Except as provided in subsection (3)
of this section, a transaction in which the buyer initiated the contact and
specifically requested that the seller come to the buyers home for the purpose
of repairing or performing maintenance on the buyers personal property.
(3) The provisions of ORS 83.710 to 83.750
apply to a sale under subsection (2)(i) of this section if the seller, while at
the home of the buyer to repair or perform maintenance on the buyers personal
property at the request of the buyer, sells the buyer the right to receive
additional goods or services other than replacement parts necessary to perform
the maintenance or to make the repairs on the buyers personal property.
(4) The provisions of ORS 83.710 to 83.750
relating to telephone solicitation sales apply only to a sale of periodicals,
magazines or any other reading material with or without illustrations that the
buyer is to receive at fixed intervals and do not apply to sales of newspaper
subscriptions or advertising and sales in which the buyer is offered reasonable
opportunity to preview and return reading material without contractual
obligation. [1971 c.744 §21 (1); 1977 c.170 §1; 1979 c.503 §1; 2005 c.223 §1]
83.715
Telephone solicitation sale; contract; contents. (1) Except as provided in this section, no
enforceable agreement may be formed by a telephone solicitation sale.
(2) To form a binding agreement by
telephone solicitation sale, the seller must receive from the buyer a signed,
written contract that contains all of the terms of the agreement between the
seller and the buyer. The seller must provide a copy of the completed contract
to the buyer.
(3) Any term or agreement between a buyer
and seller in a telephone solicitation sale is void and unenforceable unless it
is contained in the contract required by subsection (2) of this section.
(4) A contract required by subsection (2)
of this section shall contain the following notice on a separate sheet that
contains no other provision:
______________________________________________________________________________
This contract is a contract made pursuant
to a telephone solicitation sale regulated by Oregon Revised Statutes 83.710 to
83.750. The person offering to buy goods or services under this contract
understands that:
(1) No discussions or agreements between
the buyer and the person offering to sell goods or services formed a binding
agreement except as provided by this contract;
(2) There is no binding agreement between
the buyer and seller until the seller receives a copy of this contract signed
by the buyer; and
(3) All of the terms of the agreement
between the buyer and the seller are contained, in writing, in this contract.
______________________________________________________________________________
[1979 c.503 §3]
83.720
Cancellation of home solicitation sale; notice; exception. (1) Except as provided in subsection (5) of
this section, in addition to any other right to revoke an offer or rescind a
transaction that the buyer may have, the buyer has the right to cancel a home
solicitation sale until 12 midnight of the third business day after the day on
which the buyer signs an agreement or offer to purchase that complies with ORS
83.710 to 83.750 or pays by cash or check.
(2) Cancellation occurs when the buyer
gives written notice of cancellation to the seller at the address stated in the
agreement or offer to purchase.
(3) Notice of cancellation, if given by
mail, is given when it is deposited in a mailbox properly addressed and postage
prepaid.
(4) Notice of cancellation given by the
buyer need not take a particular form and is sufficient if it indicates by a
form of written expression the intention of the buyer not to be bound by the
home solicitation sale.
(5) The buyer may not cancel a home
solicitation sale if the buyer initiates the contact with the seller and the
buyer, in a separate signed writing not furnished by the seller, requests that
the seller provide goods or services without delay because of an emergency,
describes the emergency and expressly acknowledges and waives the right to
cancel the sale within three business days, and:
(a) The seller in good faith makes a substantial
beginning of performance of the contract before the buyer gives notice of
cancellation; and
(b) In case of goods, the goods cannot be
returned to the seller in substantially as good condition as when received by
the buyer. [1971 c.744 §21(2); 2005 c.223 §2]
83.730
Written agreement or offer to purchase; contents; notice of buyers right to
cancel; form. (1) A home
solicitation sale must be evidenced by a written agreement or offer to purchase
signed by the buyer. At the time a buyer executes the written agreement or
offer to purchase:
(a) The seller must furnish the buyer with
a fully completed copy of the written agreement or offer to purchase.
(b) The written agreement or offer to
purchase must:
(A) Designate as the date of the
transaction the date on which the buyer actually signs;
(B) Contain the name of the seller and
address of the sellers place of business;
(C) Be in the same language as the
language that is principally used in the sales presentation; and
(D) Contain, in immediate proximity to a
space reserved for the signature of the buyer, in at least 10-point boldfaced
type, a statement in substantially the following form:
______________________________________________________________________________
You, the buyer, may cancel this
transaction at any time prior to midnight of the third business day after the
date of this transaction. See the attached notice of buyers right to cancel
for an explanation of the right to cancel.
______________________________________________________________________________
(c) The seller must provide the buyer, by
a method chosen by the seller, with a duplicate copy of the notice of the buyers
right to cancel described in subsection (2) of this section so that, if the
buyer cancels the transaction, the buyer can retain a complete copy of the
written agreement or offer to purchase. If both copies of the notice are not
attached to the written agreement or offer to purchase, the seller shall change
the last sentence in the statement required under paragraph (b)(D) of this
subsection to conform to the actual location of the copies of the notice. Both
copies of the notice must contain:
(A) The name of the seller;
(B) The address of the sellers place of
business;
(C) The date of the transaction; and
(D) The date, not earlier than the third
business day following the date of the transaction, by which the buyer may give
notice of cancellation.
(d) The seller must orally inform the
buyer of the buyers right to cancel.
(2) The notice of the buyers right to
cancel must be in conspicuous type, 10-point or larger, and must read as
follows:
______________________________________________________________________________
NOTICE OF BUYERS RIGHT TO CANCEL
(1) (Date) You, the buyer, may cancel this
agreement without any penalty, cancellation fee or other financial obligation
by mailing or delivering a notice to the seller within THREE BUSINESS DAYS from
the above date.
(2) If you cancel:
(a) Any property you traded in, any
payments you made under the sales contract and any checks or notes you signed
will be returned within 10 business days following receipt by the seller of
your notice of cancellation. Any security interest that arises from the
transaction will be canceled.
(b) You may either make available to the
seller at your residence, in substantially as good condition as when received,
any goods delivered to you under the sales contract or you may comply with the
sellers instructions regarding the return shipment of the goods at the sellers
expense and risk.
(c) If you make the goods available to the
seller at your residence and the seller does not pick up the goods within 20
days of the date of your notice of cancellation, you may keep or discard the
goods without further obligation.
(d) If you do not make the goods available
to the seller, or if you agree to return the goods to the seller and you do not
return the goods, you must perform all of your obligations under the sales
contract.
(3) To cancel this transaction, mail or
deliver a signed and dated copy of this notice or other written expression of
your intention to cancel, or send a telegram, to (name of seller) at (address
of sellers place of business) not later than 12 midnight on (date), the third
business day after you signed the written agreement or offer to purchase.
I HEREBY CANCEL THIS TRANSACTION.
__________________ _____
(Signature of buyer) (Date)
______________________________________________________________________________
(3) In a home solicitation sale subject to
federal rules under 16 C.F.R. part 429, the seller may provide the notice
required by the federal rules in lieu of the notice required under subsection
(2) of this section if the notice required under federal rules contains the
information specified in subsection (1)(c) of this section.
(4) Until the seller has complied with
this section the buyer may cancel the home solicitation sale by notifying the
seller in any manner and by any means of an intention to cancel. [1971 c.744 §21
(3); 1977 c.170 §2; 2005 c.223 §3]
83.740
Duties of seller upon cancellation of sale or revocation of offer to purchase. (1) The seller must tender to the buyer any
payments made by the buyer and any note or other evidence of indebtedness
within 10 days after a home solicitation sale has been canceled or an offer to
purchase has been revoked.
(2) If the down payment includes goods
traded in, the goods must be tendered in substantially as good condition as
when received by the seller. If the seller fails to tender the goods as
provided by this section, the buyer may elect to recover an amount equal to the
trade-in allowance stated in the agreement.
(3) The buyer may retain possession of
goods delivered to the buyer by the seller, and has a lien on the goods in the
possession or control of the buyer for any recovery to which the buyer is
entitled, until the seller has complied with the obligations imposed by this
section. [1971 c.744 §21 (4); 1977 c.170 §3]
83.750
Rights and duties of buyer upon cancellation of sale or revocation of offer to
purchase. (1) Except as
provided by ORS 83.740 (3), within a reasonable time after a home solicitation
sale has been canceled or an offer to purchase revoked, the buyer must tender
to the seller upon demand any goods delivered by the seller pursuant to the
sale, but the buyer is not obliged to tender at any place other than the
residence of the buyer. If the seller fails to demand possession of goods
within a reasonable time after cancellation or revocation, the goods become the
property of the buyer without obligation to pay for them. For the purpose of
this subsection, 20 days is presumed to be a reasonable time.
(2) The buyer has a duty to take
reasonable care of the goods in the possession of the buyer before cancellation
or revocation and for a reasonable time thereafter, during which time the goods
are otherwise at the sellers risk.
(3) If the seller has performed any
services pursuant to a home solicitation sale prior to its cancellation, the
seller is entitled to no compensation. [1971 c.744 §21 (5); 1977 c.170 §4]
83.810 [1969 c.392 §2; 1977 c.274 §7; repealed by
1991 c.296 §4]
MISCELLANEOUS
83.811
Exemption from certain disclosure requirements for motor vehicle dealer or
retail seller. (1) The
disclosure provisions of ORS 83.010 to 83.680 and 83.990 shall not apply to any
motor vehicle dealer or retail seller entering into a retail installment
transaction when:
(a) The motor vehicle dealer or retail
seller regularly enters into retail installment transactions; and
(b) The terms of the retail installment
transaction provide for payment of a service charge or finance charge or for
payment by written agreement in more than four installments.
(2) A motor vehicle dealer or retail
seller regularly enters into retail installment transactions only if the motor
vehicle dealer or retail seller entered into retail installment transactions
more than 25 times in the preceding calendar year, or more than five times in
the preceding calendar year for retail installment transactions secured by a
dwelling. If a motor vehicle dealer or retail seller does not meet these
numerical standards in the preceding calendar year, the numerical standards
shall be applied to the current calendar year. [1991 c.296 §1; 1999 c.240 §2;
2001 c.117 §13]
Note: 83.811 and 83.813 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter 83
or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
83.813
Exemption from certain disclosure requirements for assignee of retail
installment contract. (1)
The disclosure provisions of ORS 83.010 to 83.680 and 83.990 shall not apply to
the assignee of any retail installment contract when:
(a) The assignor is a motor vehicle dealer
or retail seller;
(b) The assignee regularly extends credit
to natural persons primarily for personal, family or household purposes;
(c) The credit is subject to a service
charge or finance charge or is payable by a written agreement in more than four
installments; and
(d) The retail installment contract is in
the form regularly used by the assignee in similar transactions.
(2) The assignee of a motor vehicle dealer
or retail seller regularly extends credit to natural persons primarily for
personal, family or household purposes only if the assignee extended credit
more than 25 times in the preceding calendar year or more than five times in
the preceding calendar year for transactions secured by a dwelling. If the
assignee does not meet these numerical standards in the preceding calendar
year, the numerical standards shall be applied to the current calendar year. [1991
c.296 §2; 1999 c.240 §3; 2001 c.117 §14]
Note: See note under 83.811.
83.820
Consumer paper; negotiability; exception; rights and liabilities of assignees. (1) In any contract for the sale or lease of
motor vehicles on any form of credit, or of consumer goods or services on
credit, entered into between a motor vehicle dealer, retail seller or retail
lessor and a retail buyer or retail lessee, such contract, note or any
instrument or evidence of indebtedness of the buyer or lessee shall have
printed on the face thereof the words consumer paper, and such contract,
note, instrument or evidence of indebtedness with the words consumer paper
printed thereon shall not be a negotiable instrument within the meaning of ORS
chapter 73. However, this section shall have no force or effect on the
negotiability of any contract, promissory note, instrument or other evidence of
indebtedness owned or guaranteed or insured by any state or federal
governmental agency even though said contract, note, instrument or other
evidence of indebtedness shall contain the wording required by this subsection.
(2) Notwithstanding the absence of such
notice on a contract, note, instrument or evidence of indebtedness arising out
of a consumer credit sale, consumer lease or the sale or lease of a motor
vehicle on any form of credit as described in this section, an assignee of the
rights of the motor vehicle dealer, seller or lessor is subject to all claims
and defenses of the buyer or lessee against the motor vehicle dealer, seller or
lessor arising out of the sale or lease. Any agreement to the contrary shall be
of no force or effect in limiting the rights of a consumer under this section.
The assignees liability under this section may not exceed the amount owing to
the assignee at the time the claim or defense is asserted against the assignee.
The restrictions imposed hereby shall not apply with respect to any promissory
note, contract, instrument or other evidence of indebtedness owned or
guaranteed or insured by any state or federal governmental agency even though
said note, contract, instrument or other evidence of indebtedness shall contain
the words required by subsection (1) of this section.
(3) An assignee of consumer paper who in
good faith enforces a security interest in property held by the buyer or lessee
shall not be liable to such buyer or lessee for punitive damages in an action
for wrongful repossession. The fact that a motor vehicle dealer, seller or
lessor has broken the warranties of the motor vehicle dealer, seller or lessor
with regard to the property sold or leased shall not, of itself, make an
assignees repossession wrongful.
(4) Notwithstanding the absence of notice
as provided in subsection (1) of this section, an assignee of the rights of the
motor vehicle dealer, seller or lessor who lends money to the buyer or lessee
for the purpose of paying off the amount owing to the assignee under the
contract, note, instrument or evidence of indebtedness is subject to all claims
and defenses of the buyer or lessee against the motor vehicle dealer, seller or
lessor arising out of the sale or lease. The assignees liability under this
subsection may not exceed the amount that would be owing to the motor vehicle
dealer, seller or lessor under the contract, note, instrument or evidence of
indebtedness at the time the claim or defense is asserted had the obligation
not been paid off. Assignee shall include a parent, subsidiary or other
business entity similarly related to the assignee, and the assignees liability
shall extend to anyone who holds the buyers or lessees new instrument or
evidence of indebtedness. [1971 c.744 §2; 1977 c.195 §11; 1995 c.79 §31; 2001
c.117 §2]
83.830 [1971 c.744 §3; 1973 c.350 §1; 1981 c.573 §3;
1983 c.739 §1; 1987 c.479 §1; repealed by 1999 c.240 §1]
83.840 [1971 c.744 §4; 1973 c.350 §2; 1981 c.573 §4;
1983 c.739 §2; 1987 c.479 §2; repealed by 1999 c.240 §1]
83.850
Definitions for ORS 83.850 and 83.860. As used in ORS 83.850 and 83.860:
(1) Financing agency, motor vehicle
dealer, retail lease, retail lessee and retail lessor have the meanings
given those terms in ORS 83.510.
(2) Goods has the meaning for that term
provided in ORS 83.010.
(3) Motor vehicle means a motor vehicle
as defined in ORS 83.510 purchased primarily for personal, family or household
purposes and not primarily for business or commercial purposes.
(4) A loan is made in close connection
with a sale of goods or motor vehicles if:
(a) The lender directly or indirectly
controls, is controlled by or is under common control with the seller or motor
vehicle dealer, unless the relationship is remote and is not a factor in the
transaction;
(b) The lender gives a commission, rebate
or credit in any form to a seller or motor vehicle dealer who refers the
borrower to the lender, other than payment of the proceeds of the loan jointly
to the seller or motor vehicle dealer and the borrower;
(c) The lender is related to the seller or
motor vehicle dealer by blood or marriage;
(d) The seller or motor vehicle dealer
directly and materially assists the buyer in obtaining the loan;
(e) The seller or motor vehicle dealer
prepares documents that are given to the lender and used in connection with the
loan; or
(f) The lender supplies documents to the
seller or motor vehicle dealer used by the consumer in obtaining the loan.
(5) A lease is made or funded in close
connection with a retail lease of a motor vehicle if:
(a) The retail lessor or financing agency
directly or indirectly controls, is controlled by or is under common control of
the motor vehicle dealer supplying the vehicle to the retail lessee, unless the
relationship is remote and is not a factor in the transaction;
(b) The retail lessor or financing agency
gives a commission, rebate, financing reserve or credit in any form to a motor
vehicle dealer who refers the retail lessee to the retail lessor or financing
agency, other than payment of the proceeds of the lease;
(c) The retail lessor or financing agency
is related to the motor vehicle dealer by blood or marriage;
(d) The motor vehicle dealer directly or
materially assists the retail lessee in obtaining the lease;
(e) The motor vehicle dealer prepares documents
that are given to the retail lessor or financing agency and used in connection
with the lease; or
(f) The retail lessor or financing agency
supplies documents to the motor vehicle dealer used by the retail lessee in
obtaining the lease.
(6) Credit extended pursuant to a credit
card issued by a lender is not a loan in close connection with a sale of goods
or motor vehicles or a loan in close connection with a retail lease of a
motor vehicle unless the credit card is issued contemporaneously with the
extension of the credit. [1973 c.626 §1; 2001 c.117 §3]
83.860
Applicability of claims and defenses of borrower or lessee when loan made or
lease funded in close connection with sale or retail lease. (1) If a lender makes a loan in close
connection with the sale of goods or motor vehicles, the lender is subject to
all claims and defenses of the borrower that the borrower as buyer has against
the seller or motor vehicle dealer arising out of the sale, notwithstanding any
agreement to the contrary. However, the lenders liability to the borrower
shall not exceed the amount owing to the lender, exclusive of unearned
interest, at the time the claim or defense is asserted.
(2) If a lender who makes a loan in close
connection with a sale of goods or motor vehicles negotiates or assigns any
note or other instrument taken as evidence of the obligation of the borrower,
the holder of the note or other instrument shall be subject to the claims or
defenses of the borrowers set forth in subsection (1) of this section. However,
the liability of the holder of the note or other instrument to the borrower
shall not exceed the amount owing to the lender exclusive of unearned interest
at the time the claim or defense is asserted.
(3) If a financing agency makes or funds a
lease in close connection with a retail lease of a motor vehicle, the financing
agency is subject to all claims and defenses that the retail lessee has against
the retail lessor arising out of the retail lease, notwithstanding any
agreement to the contrary. However, the financing agencys liability to the
retail lessee shall not exceed the amount owing to the financing agency,
exclusive of unearned interest, at the time the claim or defense is asserted.
(4) If a financing agency that makes or
funds a loan in close connection with a retail lease of a motor vehicle
negotiates or assigns any note or other instrument taken as evidence of the
obligation of the retail lessee, the holder of the note or other instrument
shall be subject to the claims or defenses of a retail lessee set forth in
subsection (3) of this section. However, the liability of the holder of the
note or other instrument to a retail lessee shall not exceed the amount owing
to the financing agency exclusive of unearned interest at the time the claim or
defense is asserted. [1973 c.626 §2; 2001 c.117 §4]
83.875
Definitions for ORS 83.875, 83.880, 83.890 and 83.895. As used in ORS 83.875, 83.880, 83.890 and
83.895:
(1) Goods has the meaning for that term
provided in ORS 83.010.
(2) Motor vehicles means a motor vehicle
as defined in ORS 83.510, purchased primarily for personal, family or household
purposes and not primarily for business or commercial purposes.
(3) Retail charge agreement has the
meaning for that term provided by ORS 83.010, and includes a revolving charge
agreement or charge agreement.
(4) Retail installment contract or contract
means a retail installment contract for the sale of motor vehicles, goods or
services.
(5) Seller includes a motor vehicle
dealer as defined in ORS 83.510.
(6) Services has the meaning given that
term in ORS 83.010. [1977 c.274 §5; 1981 c.910 §5; 2001 c.117 §15]
83.880
(1) All or any part of the sellers
contracts are transferred to the holder;
(2) The holder provides contract forms to
the seller and instructions for the use of the forms;
(3) The holder investigates the
creditworthiness of the buyer before or after the sale;
(4) The price the holder pays the seller
for the contract is more than, equal to, or less than that which the retail
buyer has contracted to pay to the seller;
(5) The transfer to the holder takes place
concurrently with or within a short time of the sale;
(6) The transfer is with or without
recourse to the seller; or
(7) The seller purchases services or
borrows money from the holder. [1977 c.274 §2; 1981 c.910 §6; 1987 c.674 §2]
83.885
83.890
Notice required in contract when seller intends to transfer contract. (1) If the seller intends to transfer the
retail installment contract to a holder, who has agreed with the seller to
collect payments directly from the retail buyer, the contract shall contain the
following notice which shall be in at least 8-point type, or elite typewriter
type, and be located on the same side of the page as the customers signature:
______________________________________________________________________________
NOTICE: The seller intends to sell this
contract to (insert name and mailing address of holder) which, if it buys the
contract, will become the owner of the contract and your creditor. After the
sale of this contract, all questions concerning either terms of the contract or
payments should be directed to the buyer of the contract at the address
indicated above.
______________________________________________________________________________
(2) If the contract is transferred to a
holder other than the one identified in the notice, or is retained by the
seller, the seller shall cause notice in writing of the name and address of the
actual holder to be delivered to the retail buyer within 10 days of the
decision. [1977 c.274 §3]
83.895
Effect of sellers failure to provide notice. Any seller who violates ORS 83.890 shall be subject to the provisions
contained in ORS 83.170. [1977 c.274 §4]
PENALTIES
83.990
Penalties. (1) Any person
who violates any provision of ORS 83.510 to 83.680 commits a Class A violation.
(2) A willful violation of ORS 83.520 to
83.600 or 83.650 to 83.670 by any person shall bar recovery of any finance
charge, delinquency or collection charge or refinancing charge on the retail
installment contract involved.
(3) Notwithstanding the provisions of
subsections (1) to (3) of this section, any failure to comply with any
provision of ORS 83.510 to 83.680 may be corrected within 10 days after the
holder is notified thereof in writing by the buyer, and, if so corrected,
neither the seller nor the holder shall be subject to any penalty.
(4) Any person who willfully and
intentionally violates any provision of ORS 83.010 to 83.190 shall, upon
conviction, be punished by a fine of not more than $1,000 or by imprisonment
for not more than six months, or both. Violation of any order or injunction
issued pursuant to ORS 83.010 to 83.190 shall constitute prima facie proof of a
violation of this subsection. [1957 c.625 §27; 1961 c.725 §401; subsection (4)
enacted as 1963 c.489 §17; 1999 c.1051 §148]
_______________
Disclaimer: These codes may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
