Usa Oregon

USA Statutes : oregon
Title : TITLE 09 MORTGAGES AND LIENS
Chapter : Chapter 94 Real Property Development
(1) A city or
county may enter into a development agreement as provided in ORS 94.504
to 94.528 with any person having a legal or equitable interest in real
property for the development of that property.

(2) A development agreement shall specify:

(a) The duration of the agreement;

(b) The permitted uses of the property;

(c) The density or intensity of use;

(d) The maximum height and size of proposed structures;

(e) Provisions for reservation or dedication of land for public
purposes;

(f) A schedule of fees and charges;

(g) A schedule and procedure for compliance review;

(h) Responsibility for providing infrastructure and services;

(i) The effect on the agreement when changes in regional policy or
federal or state law or rules render compliance with the agreement
impossible, unlawful or inconsistent with such laws, rules or policy;

(j) Remedies available to the parties upon a breach of the
agreement;

(k) The extent to which the agreement is assignable; and

(L) The effect on the applicability or implementation of the
agreement when a city annexes all or part of the property subject to a
development agreement.

(3) A development agreement shall set forth all future
discretionary approvals required for the development specified in the
agreement and shall specify the conditions, terms, restrictions and
requirements for those discretionary approvals.

(4) A development agreement shall also provide that construction
shall be commenced within a specified period of time and that the entire
project or any phase of the project be completed by a specified time.

(5) A development agreement shall contain a provision that makes
all city or county obligations to expend moneys under the development
agreement contingent upon future appropriations as part of the local
budget process. The development agreement shall further provide that
nothing in the agreement requires a city or county to appropriate any
such moneys.

(6) A development agreement must state the assumptions underlying
the agreement that relate to the ability of the city or county to serve
the development. The development agreement must also specify the
procedures to be followed when there is a change in circumstances that
affects compliance with the agreement.

(7) A development agreement is binding upon a city or county
pursuant to its terms and for the duration specified in the agreement.

(8) The maximum duration of a development agreement entered into
with:

(a) A city is 15 years; and

(b) A county is seven years. [1993 c.780 §1; 2005 c.315 §1]Note: 94.504 to 94.528 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 94 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1) A
development agreement shall not be approved by the governing body of a
city or county unless the governing body finds that the agreement is
consistent with local regulations then in place for the city or county.

(2) The governing body of a city or county shall approve a
development agreement or amend a development agreement by adoption of an
ordinance declaring approval or setting forth the amendments to the
agreement. Notwithstanding ORS 197.015 (11)(b), the approval or amendment
of a development agreement is a land use decision under ORS chapter 197.
[1993 c.780 §2; 2005 c.22 §74]Note: See note under 94.504. (1) A city or
county may, by ordinance, establish procedures and requirements for the
consideration of development agreements upon application by, or on behalf
of, the owner of property on which development is sought or another
person having a legal or equitable interest in that property.

(2) Approval of a development agreement requires compliance with
local regulations and the approval of the city or county governing body
after notice and hearing. The notice of the hearing shall, in addition to
any other requirements, state the time and place of the public hearing
and contain a brief statement of the major terms of the proposed
development agreement, including a description of the area within the
city or county that will be affected by the proposed development
agreement. [1993 c.780 §3]Note: See note under 94.504.Unless otherwise provided by the development agreement, the
comprehensive plan, zoning ordinances and other rules and policies of the
jurisdiction governing permitted uses of land, density and design
applicable to the development of the property subject to a development
agreement shall be the comprehensive plan and those ordinances, rules and
policies of the jurisdiction in effect at the time of approval of the
development agreement. [1993 c.780 §4]Note: See note under 94.504. (1)
A development agreement may be amended or canceled by mutual consent of
the parties to the agreement or their successors in interest. The
governing body of a city or county shall amend or cancel a development
agreement by adoption of an ordinance declaring cancellation of the
agreement or setting forth the amendments to the agreement.

(2) Until a development agreement is canceled under this section,
the terms of the development agreement are enforceable by any party to
the agreement. [1993 c.780 §5]Note: See note under 94.504. Not later than 10 days after the execution of a
development agreement under ORS 94.504 to 94.528, the governing body of
the city or county shall cause the development agreement to be presented
for recording in the office of the county clerk of the county in which
the property subject to the agreement is situated. In addition to other
provisions required by ORS 94.504 to 94.528, the development agreement
shall contain a legal description of the property subject to the
agreement. [1993 c.780 §6]Note: See note under 94.504.TRANSFERABLE DEVELOPMENT CREDITS(1) The governing body of a city or
county is authorized to recognize a severable development interest in
real property. The governing body of the city or county may establish a
system for the purchase and sale of development interests. The interest
transferred shall be known as a transferable development credit. A
transferable development credit shall include the ability to establish in
a location in the city or county a specified amount of residential or
nonresidential development that is different from development types or
exceeds development limitations provided in the applicable land use
regulations for the location. All development authorized or approved
using transferable development credits shall comply with the land use
planning goals adopted under ORS 197.225 and the acknowledged
comprehensive plan.

(2) The ability to develop land from which credits are transferred
shall be reduced by the amount of the development credits transferred,
and development on the land to which credits are transferred may be
increased in accordance with a transfer system formally adopted by the
governing body of the city or county.

(3) The holder of a recorded mortgage encumbering land from which
credits are transferred shall be given prior written notice of the
proposed conveyance by the record owner of the property and must consent
to the conveyance before any development credits may be transferred from
the property.

(4) A city or county with a transferable development credit system
shall maintain a registry of all lots or parcels from which credits have
been transferred, the lots or parcels to which credits have been
transferred and the allowable development level for each lot or parcel
following transfer.

(5) A city or county, or an elected official, appointed official,
employee or agent of a city or county, shall not be found liable for
damages resulting from any error made in:

(a) Allowing the use of a transferable development credit that
complies with an adopted transferable development credit system and the
acknowledged comprehensive plan; or

(b) Maintaining the registry required under subsection (4) of this
section. [1999 c.573 §1]Note: 94.531 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 94 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.PLANNED COMMUNITIES(General Provisions)

(1) “Assessment” means any charge imposed or levied by a homeowners
association on or against an owner or lot pursuant to the provisions of
the declaration or the bylaws of the planned community or provisions of
ORS 94.550 to 94.783.

(2) “Blanket encumbrance” means a trust deed or mortgage or any
other lien or encumbrance, mechanic’s lien or otherwise, securing or
evidencing the payment of money and affecting more than one lot in a
planned community, or an agreement affecting more than one lot by which
the developer holds such planned community under an option, contract to
sell or trust agreement.

(3) “Class I planned community” means a planned community as
defined in ORS 94.550 that:

(a) Contains at least 13 lots or in which the declarant has
reserved the right to increase the total number of lots beyond 12; and

(b) Has an estimated annual assessment, including an amount
required for reserves under ORS 94.595, exceeding $10,000 for all lots or
$100 per lot, whichever is greater, based on:

(A) For a planned community created on or after January 1, 2002,
the initial estimated annual assessment, including a constructive
assessment based on a subsidy of the association through a contribution
of funds, goods or services by the declarant; or

(B) For a planned community created before January 1, 2002, a
reasonable estimate of the cost of fulfilling existing obligations
imposed by the declaration and bylaws as of January 1, 2002.

(4) “Class II planned community” means a planned community as
defined in ORS 94.550 that:

(a) Is not a Class I planned community;

(b) Contains at least five lots; and

(c) Has an estimated annual assessment exceeding $1,000 for all
lots based on:

(A) For a planned community created on or after January 1, 2002,
the initial estimated annual assessment, including a constructive
assessment based on a subsidy of the association through a contribution
of funds, goods or services by the declarant; or

(B) For a planned community created before January 1, 2002, a
reasonable estimate of the cost of fulfilling existing obligations
imposed by the declaration and bylaws as of January 1, 2002.

(5) “Class III planned community” means a planned community as
defined in ORS 94.550 that is not a Class I or II planned community.

(6) “Common expenses” means expenditures made by or financial
liabilities incurred by the homeowners association and includes any
allocations to the reserve account under ORS 94.595.

(7) “Common property” means any real property or interest in real
property within a planned community which is owned, held or leased by the
homeowners association or owned as tenants in common by the lot owners,
or designated in the declaration for transfer to the association.

(8) “Condominium” means property submitted to the provisions of ORS
chapter 100.

(9) “Declarant” means any person who creates a planned community
under ORS 94.550 to 94.785.

(10) “Declarant control” means any special declarant right relating
to administrative control of a homeowners association, including but not
limited to:

(a) The right of the declarant or person designated by the
declarant to appoint or remove an officer or a member of the board of
directors;

(b) Any weighted vote or special voting right granted to a
declarant or to units owned by the declarant so that the declarant will
hold a majority of the voting rights in the association by virtue of such
weighted vote or special voting right; and

(c) The right of the declarant to exercise powers and
responsibilities otherwise assigned by the declaration or bylaws or by
the provisions of ORS 94.550 to 94.783 to the association, officers of
the association or board of directors of the association.

(11) “Declaration” means the instrument described in ORS 94.580
which establishes a planned community, and any amendments to the
instrument.

(12) “Governing document” means an instrument or plat relating to
common ownership or common maintenance of a portion of a planned
community and that is binding upon lots within the planned community.

(13) “Homeowners association” or “association” means the
organization of owners of lots in a planned community, created under ORS
94.625, required by a governing document or formed under ORS 94.572.

(14) “Majority” or “majority of votes” or “majority of owners”
means more than 50 percent of the votes in the planned community.

(15) “Mortgagee” means any person who is:

(a) A mortgagee under a mortgage;

(b) A beneficiary under a trust deed; or

(c) The vendor under a land sale contract.

(16) “Owner” means the owner of any lot in a planned community,
unless otherwise specified, but does not include a person holding only a
security interest in a lot.

(17) “Percent of owners” or “percentage of owners” means the owners
representing the specified voting rights as determined under ORS 94.658.

(18)(a) “Planned community” means any subdivision under ORS 92.010
to 92.190 that results in a pattern of ownership of real property and all
the buildings, improvements and rights located on or belonging to the
real property, in which the owners collectively are responsible for the
maintenance, operation, insurance or other expenses relating to any
property within the planned community, including common property, if any,
or for the exterior maintenance of any property that is individually
owned.

(b) “Planned community” does not mean:

(A) A condominium under ORS chapter 100;

(B) A planned community that is exclusively commercial or
industrial; or

(C) A timeshare plan under ORS 94.803 to 94.945.

(19) “Purchaser” means any person other than a declarant who, by
means of a voluntary transfer, acquires a legal or equitable interest in
a lot, other than as security for an obligation.

(20) “Purchaser for resale” means any person who purchases from the
declarant more than two lots for the purpose of resale whether or not the
purchaser for resale makes improvements to the lots before reselling them.

(21) “Special declarant rights” means any rights, in addition to
the rights of the declarant as a lot owner, reserved for the benefit of
the declarant under the declaration or ORS 94.550 to 94.783, including
but not limited to:

(a) Constructing or completing construction of improvements in the
planned community which are described in the declaration;

(b) Expanding the planned community or withdrawing property from
the planned community under ORS 94.580 (3) and (4);

(c) Converting lots into common property;

(d) Making the planned community subject to a master association
under ORS 94.695; or

(e) Exercising any right of declarant control reserved under ORS
94.600.

(22) “Successor declarant” means the transferee of any special
declarant right.

(23) “Turn over” means the act of turning over administrative
responsibility pursuant to ORS 94.609 and 94.616.

(24) “Unit” means a building or portion of a building located upon
a lot in a planned community and designated for separate occupancy or
ownership, but does not include any building or portion of a building
located on common property.

(25) “Votes” means the votes allocated to lots in the declaration
under ORS 94.580 (2). [1981 c.782 §3; 1999 c.677 §1; 2001 c.756 §5; 2003
c.569 §3] The Legislative Assembly finds that:

(1) In the State of Oregon there are hundreds of homeowners
associations to which the Oregon Condominium Law (ORS chapter 100) does
not apply.

(2) These homeowners associations have established a pattern of
ownership in which ownership of a single unit makes the owner
automatically a member of a homeowners association with responsibilities
for management and maintenance.

(3) Many of these homeowners associations as associations and their
members as individuals have experienced problems from the lack of
statutory provisions. These problems which have arisen are usually the
result of inexperience with this kind of ownership. This inexperience
often leads to difficulties for the association when it assumes
responsibility for the administration of the planned development because
usually neither the developer who drafted the documents nor the local
jurisdiction which may have reviewed them has realized the long term
management implications of the restrictions imposed by the documents. The
most serious and frequent error is imposing excessive voting requirements
for any changes in the documents, a basic error that makes it and other
errors unnecessarily difficult, if not impossible, to correct. Of almost
equal importance is the lack of disclosure of significant differences
this pattern of ownership imposes on the homeowner and the restrictions
on choice that must be accepted.

(4) Oregon land conservation policies and the increasing cost of
land will result in rapid growth of this kind of homeownership pattern.

(5) It is a matter of statewide concern that the Legislative
Assembly address problems associated with homeowners associations in
order to make this kind of homeownership pattern an acceptable choice and
in order to assure proper maintenance of the projects so that the
investment of the owners and the appearance of Oregon communities are
protected.

(6) It is essential that the Legislative Assembly establish basic
statutory requirements for disclosure to first and subsequent buyers, for
the organization of the homeowners association, and for a process by
which administrative responsibility for the planned community is
transferred from the developer to the association of individual owners.

(7) ORS 94.550 to 94.783 are intended to make developers, their
legal counsel and homeowners in Oregon homeowners associations the
beneficiaries of experience accumulated under Oregon’s condominium law
and gathered from members of existing Oregon homeowners associations and
associations in parts of the country where the record of experience is
longer than that in Oregon. [1981 c.782 §3a](Creation of Planned Community)
exception; conveyance of lot or unit prohibited until declaration
recorded. (1) Except as provided in ORS 94.570, a person may not create a
planned community in this state except as provided in ORS 94.550 to
94.783.

(2) A person may not convey any lot or unit in a planned community
until the planned community is created by the recording of the
declaration for the planned community with the county recording officer
of each county in which the planned community is located. [1981 c.782 §5;
1999 c.677 §2; 2001 c.756 §6](1) ORS 94.550 to
94.783 apply to a planned community created before January 1, 2002, under
ORS 94.550 to 94.783 and to a Class I planned community created on or
after January 1, 2002.

(2) ORS 94.550 to 94.783, except for ORS 94.595 and 94.604, apply
to a Class II planned community created on or after January 1, 2002.

(3) Notwithstanding any other provision of ORS 94.550 to 94.783,
ORS 94.550 to 94.783 apply to a Class III planned community or a planned
community that is exclusively commercial or industrial and that is
created on or after January 1, 2002, if the declaration of the planned
community so provides.

(4) Nothing in ORS 94.550 to 94.783 prohibits the establishment of
a condominium subject to ORS chapter 100 or a timeshare plan subject to
ORS 94.803 to 94.945 within a planned community. [1981 c.782 §6; 1983
c.530 §52; 1985 c.76 §3; 1999 c.677 §3; 2001 c.756 §7; 2003 c.569 §4](1)(a) A Class I or Class II
planned community created before January 1, 2002, that was not created
under ORS 94.550 to 94.783 is subject to this section and ORS 94.550,
94.590, 94.595 (6) to (10), 94.625, 94.630 (1), (3) and (4), 94.640,
94.645, 94.647, 94.650, 94.655, 94.657, 94.658, 94.660, 94.662, 94.665,
94.670, 94.675, 94.680, 94.690, 94.695, 94.704, 94.709, 94.712, 94.716,
94.719, 94.723, 94.728, 94.733, 94.770, 94.775, 94.777 and 94.780 to the
extent that those statutes are consistent with any governing documents.
If the governing documents do not provide for the formation of an
association, the requirements of this subsection are not effective until
the formation of an association in accordance with paragraph (b) of this
subsection. If a provision of the governing documents is inconsistent
with this subsection, the owners may amend the governing documents using
the procedures in this subsection:

(A) In accordance with the procedures for the adoption of
amendments in the governing documents and subject to any limitations in
the governing documents, the owners may amend the inconsistent provisions
of the governing documents to conform to the extent feasible with this
section and ORS 94.550, 94.590, 94.595 (6) to (10), 94.625, 94.630 (1),
(3) and (4), 94.640, 94.645, 94.647, 94.650, 94.655, 94.657, 94.658,
94.660, 94.662, 94.665, 94.670, 94.675, 94.680, 94.690, 94.695, 94.704,
94.709, 94.712, 94.716, 94.719, 94.723, 94.728, 94.733, 94.770, 94.775,
94.777 and 94.780. Nothing in this paragraph requires the owners to amend
a declaration or bylaws to include the information required by ORS 94.580
or 94.635.

(B) If there are no procedures for amendment in the governing
documents:

(i) For an amendment to a recorded governing document other than
bylaws, the owners may amend the inconsistent provisions of the document
to conform to this section and ORS 94.550, 94.590, 94.595 (6) to (10),
94.625, 94.630 (1), (3) and (4), 94.640, 94.645, 94.647, 94.650, 94.655,
94.657, 94.658, 94.660, 94.662, 94.665, 94.670, 94.675, 94.680, 94.690,
94.695, 94.704, 94.709, 94.712, 94.716, 94.719, 94.723, 94.728, 94.733,
94.770, 94.775, 94.777 and 94.780 by a vote of at least 75 percent of the
owners in the planned community.

(ii) For an amendment to the bylaws, the owners may amend the
inconsistent provisions of the bylaws to conform to this section and ORS
94.550, 94.590, 94.595 (6) to (10), 94.625, 94.630 (1), (3) and (4),
94.640, 94.645, 94.647, 94.650, 94.655, 94.657, 94.658, 94.660, 94.662,
94.665, 94.670, 94.675, 94.680, 94.690, 94.695, 94.704, 94.709, 94.712,
94.716, 94.719, 94.723, 94.728, 94.733, 94.770, 94.775, 94.777 and 94.780
by a vote of at least a majority of the owners in the planned community.

(iii) An amendment may be adopted at a meeting held in accordance
with the governing documents or by another procedure permitted by the
governing documents following the procedures prescribed in ORS 94.647,
94.650 or 94.660.

(iv) An amendment to a recorded declaration shall be executed,
certified and recorded as provided in ORS 94.590 (2) and (3) and shall be
subject to ORS 94.590 (5). An amendment to the bylaws and any other
governing document shall be executed and certified as provided in ORS
94.590 (3) and shall be recorded in the office of the recording officer
of every county in which the planned community is located if the bylaws
or other governing document to which the amendment relates were recorded.

(C) An amendment adopted pursuant to this paragraph shall include:

(i) A reference to the recording index numbers and date of
recording of the declaration or other governing document, if recorded, to
which the amendment relates; and

(ii) A statement that the amendment is adopted pursuant to the
applicable subparagraph of this paragraph.

(b)(A) If the governing documents do not provide for the formation
of an association of owners, at least 10 percent of the owners in the
planned community or any governing entity may initiate the formation of
an association as provided in this paragraph. The owners or the governing
entity initiating the association formation shall call an organizational
meeting for the purpose of voting whether to form an association
described in ORS 94.625. The notice of the meeting shall:

(i) Name the initiating owners or governing entity;

(ii) State that the organizational meeting is for the purpose of
voting whether to form an association in accordance with the proposed
articles of incorporation;

(iii) State that if the owners vote to form an association, the
owners may elect the initial board of directors provided for in the
articles of incorporation and may adopt the initial bylaws;

(iv) State that to form an association requires an affirmative vote
of at least a majority of the owners in the planned community, or, if a
larger percentage is specified in the applicable governing document, the
larger percentage;

(v) State that to adopt articles of incorporation, to elect the
initial board of directors pursuant to the articles of incorporation or
to adopt the initial bylaws requires an affirmative vote of at least a
majority of the owners present;

(vi) State that if the initial board of directors is not elected,
an interim board of directors shall be elected pursuant to bylaws adopted
as provided in subparagraph (C) of this paragraph;

(vii) State that a copy of the proposed articles of incorporation
and bylaws will be available at least five business days before the
meeting and state the method of requesting a copy; and

(viii) Be delivered in accordance with the declaration and bylaws.
If there is no governing document or the document does not include
applicable provisions, the owners or governing entity shall follow the
procedures prescribed in ORS 94.650 (3).

(B) At least five business days before the organizational meeting,
the initiating owners or governing entity shall cause articles of
incorporation and bylaws to be drafted. The bylaws shall include, to the
extent applicable, the information required by ORS 94.635.

(C) At the organizational meeting:

(i) Representatives of the initiating owners or governing entity
shall, to the extent not inconsistent with the governing documents,
conduct the meeting according to Robert’s Rules of Order as provided in
ORS 94.657.

(ii) The initiating owners or governing entity shall make available
copies of the proposed articles of incorporation and the proposed bylaws.

(iii) The affirmative vote of at least a majority of the owners of
a planned community, or, if a larger percentage is specified in the
applicable governing document, the larger percentage, is required to form
an association under this paragraph.

(iv) If the owners vote to form an association, the owners shall
adopt articles of incorporation and may elect the initial board of
directors as provided in the articles of incorporation, adopt bylaws and
conduct any other authorized business by an affirmative vote of at least
a majority of the owners present. If the owners do not elect the initial
board of directors, owners shall elect an interim board of directors by
an affirmative vote of at least a majority of the owners present to serve
until the initial board of directors is elected.

(v) An owner may vote by proxy, or by written ballot, if approved,
in the discretion of a majority of the initiating owners or governing
entity.

(D) Not later than 10 business days after the organizational
meeting, the board of directors shall:

(i) Cause the articles of incorporation to be filed with the
Secretary of State under ORS chapter 65;

(ii) Cause the notice of planned community described in subsection
(4) of this section to be prepared, executed and recorded in accordance
with subsection (4) of this section;

(iii) Provide a copy of the notice of planned community to each
owner, together with a copy of the adopted articles of incorporation and
bylaws, if any, or a statement of the procedure and method for adoption
of bylaws described in subparagraph (C) of this paragraph. The copies and
any statement shall be delivered to each lot, mailed to the mailing
address of each lot or mailed to the mailing addresses designated by the
owners in writing; and

(iv) Cause a statement of association information to be prepared,
executed and recorded in accordance with ORS 94.667.

(E) If the owners vote to form an association, all costs incurred
under this paragraph, including but not limited to the preparation and
filing of the articles of incorporation, drafting of bylaws, preparation
of notice of meeting and the drafting, delivery and recording of all
notices and statements shall be a common expense of the owners and shall
be allocated as provided in the appropriate governing document or any
amendment thereto.

(2)(a) The owners of lots in a Class I or Class II planned
community that are subject to the provisions of ORS chapter 94 specified
in subsection (1) of this section may elect to be subject to any other
provisions of ORS 94.550 to 94.783 upon compliance with the procedures
prescribed in subsection (1) of this section.

(b) If the owners of lots in a Class I or Class II planned
community elect to be subject to additional provisions of ORS 94.550 to
94.783, unless the notice of planned community otherwise required or
permitted under subsection (4) of this section includes a statement of
the election pursuant to this paragraph, the board of directors of the
association shall cause the notice of planned community described in
subsection (4) of this section to be prepared, executed and recorded in
accordance with subsection (4) of this section.

(3)(a) The owners of lots in a Class III planned community created
before January 1, 2002, may elect to be subject to provisions of ORS
94.550 to 94.783 upon compliance with the applicable procedures in
subsection (1) of this section.

(b) If the owners of lots in a Class III planned community elect to
be subject to provisions of ORS 94.550 to 94.783, the board of directors
of the association shall cause the notice of planned community described
in subsection (4) of this section to be prepared, executed and recorded
in accordance with subsection (4) of this section.

(4) The notice of planned community required or permitted by this
section shall be:

(a) Titled “Notice of Planned Community under ORS 94.572”;

(b) Executed by the president and secretary of the association; and

(c) Recorded in the office of the recording officer of every county
in which the property is located.

(5) The notice of planned community shall include:

(a) The name of the planned community and association as identified
in the recorded declaration, conditions, covenants and restrictions or
other governing document and, if different, the current name of the
association;

(b) A list of the properties, described as required for recordation
in ORS 93.600, within the jurisdiction of the association;

(c) Information identifying the recorded declaration, conditions,
covenants and restrictions or other governing documents and a reference
to the recording index numbers and date of recording of the governing
documents;

(d) A statement that the property described in accordance with
paragraph (b) of this subsection is subject to specific provisions of the
Oregon Planned Community Act;

(e) A reference to the specific provisions of the Oregon Planned
Community Act that apply to the subject property and a reference to the
subsection of this section under which the application is made; and

(f) If an association is formed under subsection (1)(b)(A) of this
section, a statement to that effect.

(6) An amended statement shall include a reference to the recording
index numbers and the date of recording of prior statements.

(7) The county clerk may charge a fee for recording a statement
under this section according to the provisions of ORS 205.320 (4).

(8) The board of directors of an association not otherwise required
to cause a notice of planned community described in subsection (4) of
this section to be prepared and recorded under this section may cause a
notice of planned community to be prepared, executed and recorded as
provided in subsection (4) of this section.

(9) Title to a unit, lot or common property in a Class I or Class
II planned community created before January 1, 2002, may not be rendered
unmarketable or otherwise affected by a failure of the planned community
to be in compliance with a requirement of this section.

(10) As used in this section:

(a) “Governing entity” means an incorporated or unincorporated
association, committee, person or any other entity that has authority,
under a governing document, to maintain commonly maintained property,
impose assessments on lots or to act on behalf of lot owners within the
planned community on matters of common concern.

(b) “Recorded declaration” means an instrument recorded with the
county recording officer of the county in which the planned community is
located that contains conditions, covenants and restrictions binding lots
in the planned community or imposes servitudes upon the real property.
[2001 c.756 §3; 2003 c.569 §5; 2005 c.543 §3]ORS 92.010 to 92.170 apply
to a planned community established under ORS 94.550 to 94.783. [1981
c.782 §4] (1) A declarant shall
record, in accordance with ORS 94.565, the declaration for a planned
community in the office of the recording officer of each county in which
the planned community is located.

(2) The declaration shall include:

(a) The name and classification of the planned community;

(b) The name of the association and the type of entity formed in
accordance with ORS 94.625;

(c) A statement that the planned community is subject to ORS 94.550
to 94.783;

(d) A statement that the bylaws adopted under ORS 94.625 must be
recorded;

(e) A legal description, as required under ORS 93.600, of the real
property included in the planned community;

(f) A legal description, as required under ORS 93.600, of any real
property included in the planned community which is or must become a
common property;

(g) A description of any special declarant rights other than the
rights described under subsections (3) and (4) of this section;

(h) A statement of the number of votes allocated to each lot in
accordance with ORS 94.658;

(i) A method of determining the liability of each lot for common
expenses and the right of each lot to any common profits of the
association;

(j) A statement of when the lots, including lots owned by the
declarant, become subject to assessment;

(k) If a Class I planned community, provisions for establishing a
reserve account and for the preparation, review and update of the reserve
study as required by ORS 94.595;

(L) Any restrictions on the alienation of lots. Any such
restriction created by any document other than the declaration may be
incorporated by reference to the official records of the county where the
property is located;

(m) A statement of the use, residential or otherwise, for which
each lot is intended;

(n) A statement as to whether or not the association pursuant to
ORS 94.665 may sell, convey or subject to a security interest any portion
of the common property and any limitation on such authority;

(o) A statement of any restriction on the use, maintenance or
occupancy of lots or units;

(p) The method of amending the declaration and a statement of the
percentage of votes required to approve an amendment of the declaration
in accordance with ORS 94.590;

(q) A description of any contemplated improvements which the
declarant agrees to build, or a statement that the declarant does not
agree to build any improvement or does not choose to limit declarant’s
rights to add improvements not described in the declaration;

(r) A statement of any period of declarant control or other special
declarant rights reserved by the declarant under ORS 94.600;

(s) A statement of the time at which the deed to the common
property is to be delivered, whether by date or upon the occurrence of a
stipulated event; and

(t) Any provisions restricting a right of the association with
respect to the common property, or an individual lot owner with respect
to the lot or improvements on the lot, including but not limited to:

(A) A right to divide the lot or to combine it with other lots;

(B) A right to repair or restore improvements on the lot at the
owner’s discretion in the event of damage or destruction;

(C) The requirement for architectural controls, including but not
limited to fencing, landscaping or choice of exterior colors and
materials of structures to be placed on the common property or on a lot;
and

(D) The requirement of review of any plans of any structure to be
placed on the common property or a lot.

(3) If the declarant reserves the right to expand the planned
community by annexing lots or common property or by creating additional
lots or common property by developing existing property in the planned
community, the declaration shall contain, in addition to the provisions
required under subsections (1) and (2) of this section, a general
description of the plan of development including:

(a) The procedure by which the planned community will be expanded;

(b) The maximum number of lots and units to be included in the
planned community or a statement that there is no limitation on the
number of lots or units which the declarant may create or annex to the
planned community;

(c) A general description of the nature and proposed use of any
common property which the declarant agrees to create or annex to the
planned community or a statement that there is no limitation on the right
of the declarant to create or annex common property;

(d) The method of allocation of votes if additional lots are to be
created or annexed to the planned community; and

(e) The formula to be used for reallocating the common expenses if
additional lots are to be created or annexed to the planned community,
and the manner of reapportioning the common expenses if lots are created
or annexed during the fiscal year.

(4) If the declarant may withdraw property from the planned
community, the declaration shall include in addition to the provisions
required under subsections (1), (2) and (3) of this section:

(a) The procedure by which property will be withdrawn;

(b) A general description of the property which may be withdrawn
from the planned community;

(c) The method of allocation of votes if lots are withdrawn from
the planned community;

(d) The formula to be used for reallocating the common expenses if
the property to be withdrawn has been assessed for common expenses prior
to withdrawal; and

(e) The date after which the right to withdraw property from the
planned community shall expire or a statement that such a right shall not
expire. [1981 c.782 §12; 1999 c.677 §4; 2001 c.756 §8; 2003 c.569 §6]A declarant may amend the declaration or initial
bylaws in order to comply with requirements of the Federal Housing
Administration, the United States Department of Veterans Affairs, the
Farmer’s Home Administration of the United States, the Federal National
Mortgage Association, the Government National Mortgage Association, the
Federal Home Mortgage Loan Corporation, any department, bureau, board,
commission or agency of the United States or the State of Oregon or any
corporation wholly owned, directly or indirectly, by the United States or
the State of Oregon which insures, guarantees or provides financing for a
planned community or lots in a planned community. However, if the need to
amend the declaration or the initial bylaws occurs after the turnover to
the homeowners association has occurred, the amendment must be approved
by the association in accordance with the approval provisions of the
declaration or bylaws. [1981 c.782 §19; 1991 c.67 §18; 1999 c.677 §6] (1)(a) The declaration
may be amended only with the approval of owners representing at least 75
percent of the total votes in the planned community or any larger
percentage specified in the declaration.

(b) An amendment under this section may not:

(A) Limit or diminish any right of a declarant reserved under ORS
94.580 (3) or (4) or any other special declarant right without the
consent of the declarant. A declarant may waive the declarant’s right of
consent.

(B) Change the boundaries of any lot or any uses to which any lot
or unit is restricted as stated in the declaration under ORS 94.580
(2)(L) or change the method of determining liability for common expenses,
the method of determining the right to common profits or the method of
determining voting rights of any lot or unit unless the owners of the
affected lots or units unanimously consent to the amendment.

(c) Any changes to the plat, including required approvals or
consents of owners or others, are governed by the applicable provisions
of ORS 92.010 to 92.190.

(2)(a) Unless otherwise provided in the declaration, an amendment
to the declaration may be proposed by a majority of the board of
directors or by at least 30 percent of the owners in the planned
community.

(b) When the association adopts an amendment to the declaration,
the association shall record the amendment in the office of the recording
officer in each county in which the planned community is located. An
amendment of the declaration is effective only upon recordation.

(3) Notwithstanding a provision in a declaration that requires
amendments to be executed and acknowledged by all owners approving the
amendment, amendments to a declaration under this section shall be
executed and certified on behalf of the association by the president and
secretary as being adopted in accordance with the declaration and the
provisions of this section and acknowledged in the manner provided for
acknowledgment of deeds.

(4) An amendment to a declaration or plat shall be conclusively
presumed to have been regularly adopted in compliance with all applicable
procedures relating to such amendment unless an action is brought within
one year after the date such amendment was recorded or the face of the
recorded amendment indicates that the amendment received the approval of
fewer votes than required for such approval. However, nothing in this
subsection shall prevent the further amendment of an amended declaration
or plat.

(5) During any period of declarant control, voting on an amendment
under subsection (1) of this section shall be without regard to any
weighted vote or special voting right reserved by the declarant except as
otherwise provided under ORS 94.585. Nothing in this subsection is
intended to prohibit a declarant from reserving the right to require the
declarant’s consent to an amendment during the period reserved in the
declaration for declarant control.

(6) The board of directors, upon the adoption of a resolution, may
cause a restated declaration to be prepared and recorded to codify
individual amendments that have been adopted in accordance with this
section or ORS 94.585 without the further approval of owners. A
declaration restated under this subsection must:

(a) Include all previously adopted amendments in effect and may not
include any other changes except to correct scriveners’ errors or to
conform format and style;

(b) Include a statement that the board of directors has adopted a
resolution in accordance with this subsection and is causing the
declaration to be restated and recorded under this subsection;

(c) Include a reference to the recording index numbers and date of
recording of the initial declaration and all previously recorded
amendments in effect being codified;

(d) Include a certification by the president and secretary of the
association that the restated declaration includes all previously adopted
amendments in effect and no other changes except, if applicable, to
correct scriveners’ errors or to conform format and style; and

(e) Be executed and acknowledged by the president and secretary of
the association and recorded in the deed records of each county in which
the planned community is located. [1981 c.782 §21; 1999 c.677 §5; 2001
c.756 §9; 2003 c.569 §7](1) The declarant shall:

(a) Conduct a reserve study described in subsection (3) of this
section; and

(b) Establish a reserve account for replacement of all items of
common property which will normally require replacement, in whole or in
part, in more than three and less than 30 years, for exterior painting if
the common property includes exterior painted surfaces, for other items,
whether or not involving common property, if the association has
responsibility to maintain the items and for other items required by the
declaration or bylaws. The reserve account need not include reserves for
those items:

(A) That could reasonably be funded from operating assessments; or

(B) For which one or more owners are responsible for maintenance
and replacement under the provisions of the declaration or bylaws.

(2)(a) A reserve account established under this section must be
funded by assessments against the individual lots for which the reserves
are established.

(b) Unless the declaration provides otherwise, the assessments
under this subsection begin accruing for all lots from the date the first
lot is conveyed.

(3)(a) The reserve account shall be established in the name of the
homeowners association. The association is responsible for administering
the account and for making periodic payments into the account.

(b) The reserve portion of the initial assessment determined by the
declarant shall be based on:

(A) The reserve study described in paragraph (c) of this
subsection; or

(B) Other sources of reliable information.

(c) The board of directors of the association annually shall
conduct a reserve study or review and update an existing study to
determine the reserve account requirements and may:

(A) Adjust the amount of payments as indicated by the study or
update; and

(B) Provide for other reserve items that the board of directors, in
its discretion, may deem appropriate.

(d) The reserve study shall include:

(A) Identification of all items for which reserves are required to
be established;

(B) The estimated remaining useful life of each item as of the date
of the reserve study;

(C) The estimated cost of maintenance, repair or replacement of
each item at the end of its useful life; and

(D) A 30-year plan for the maintenance, repair and replacement of
common property with regular and adequate contributions, adjusted by
estimated inflation and interest earned on reserves, to meet the
maintenance, repair and replacement schedule.

(4) The 30-year plan under subsection (3) of this section shall:

(a) Be appropriate for the size and complexity of the common
property; and

(b) Address issues that include but are not limited to warranties
and the useful life of the common property.

(5) The board of directors and the declarant shall, within 30 days
after conducting the reserve study, provide to every owner a written
summary of the reserve study and of any revisions to the 30-year plan
adopted by the board of directors or the declarant as a result of the
reserve study.

(6)(a) If the declaration or bylaws require a reserve account, the
reserve study requirements of subsection (3) of this section first apply
to the association of a subdivision that meets the definition of a
planned community under ORS 94.550 and is recorded prior to October 23,
1999, when:

(A) The board of directors adopts a resolution in compliance with
the bylaws that applies the requirements of subsection (3) of this
section to the association; or

(B) A petition signed by a majority of owners is submitted to the
board of directors mandating that the requirements of subsection (3) of
this section apply to the association.

(b) A reserve study shall be completed within one year of adoption
of the resolution or submission of the petition to the board of directors.

(7)(a) Except as provided in paragraph (b) of this subsection, the
reserve account may be used only for the purposes for which reserves have
been established and is to be kept separate from other funds.

(b) After the individual lot owners have assumed responsibility for
administration of the planned community under ORS 94.616, if the board of
directors has adopted a resolution, which may be an annual continuing
resolution, authorizing the borrowing of funds:

(A) The board of directors may borrow funds from the reserve
account to meet high seasonal demands on the regular operating funds or
to meet unexpected increases in expenses.

(B) Not later than the adoption of the budget for the following
year, the board of directors shall adopt by resolution a written payment
plan providing for repayment of the borrowed funds within a reasonable
period.

(8) Nothing in this section prohibits prudent investment of reserve
account funds subject to any constraints imposed by the declaration,
bylaws or rules of the association.

(9) In addition to the authority of the board of directors under
subsection (3)(c) of this section, following the second year after the
association has assumed administrative responsibility for the planned
community under ORS 94.616:

(a) By an affirmative vote of at least 75 percent of the owners of
the planned community, the association may elect to reduce or increase
future assessments for the reserve account; and

(b) The association may, on an annual basis by a unanimous vote,
elect not to fund the reserve account.

(10) Assessments paid into the reserve account are the property of
the association and are not refundable to sellers or owners of lots.
[1981 c.782 §15; 1999 c.677 §7; 2001 c.756 §10; 2003 c.569 §8; 2005 c.543
§1](Declarant Control; Turnover of Administrative Control)(1) Subject to ORS 94.604
to 94.621, a declaration may reserve special declarant rights including,
without limitation, the right to a period of declarant control that may
be of limited or unlimited duration. A formal or written proxy or power
of attorney is not required from an owner to vest the declarant with such
authority.

(2) A declarant may voluntarily relinquish any rights reserved in
the declaration under subsection (1) of this section.

(3) Upon the expiration of any period of declarant control reserved
in the declaration under subsection (1) of this section, the rights
automatically shall pass to the lot owners, including the declarant if
the declarant owns a lot in the planned community.

(4) A declarant may not amend a declaration to increase the scope
of special declarant rights reserved in the declaration after the sale of
the first lot in the planned community unless owners representing 75
percent of the total vote, other than the declarant, agree to the
amendment. [1981 c.782 §11; 1999 c.677 §8] (1) As provided in this
section, the declarant or the owners of a planned community that contains
at least 20 lots in either the initial development or with the annexation
of additional property shall form a transitional advisory committee to
provide for the transition from administrative responsibility by the
declarant of the planned community under ORS 94.600 to administrative
responsibility by the association. The declarant shall call a meeting of
owners for the purpose of selecting a transitional advisory committee not
later than the 60th day after the date the declarant conveys 50 percent
or more of the lots then existing in the planned community to owners
other than a successor declarant.

(2) The transitional advisory committee shall consist of three or
more members. The owners, other than the declarant, shall select two or
more members. The declarant may select no more than one member. The
committee shall have reasonable access to all information and documents
which the declarant is required to turn over to the association under ORS
94.616.

(3) An owner may call a meeting of owners to select the
transitional advisory committee if the declarant fails to do so under
subsection (1) of this section.

(4) Notwithstanding subsection (1) of this section, if the owners
do not select members for the transitional advisory committee under
subsection (2) of this section, the declarant shall have no further
obligation to form the committee.

(5) The requirement for a transitional advisory committee shall not
apply once the turnover meeting called under ORS 94.609 has been held.
[1981 c.782 §64; 1999 c.677 §9; 2003 c.569 §9](1) At the time specified in the declaration, but not
later than 90 days after expiration of any period of declarant control
reserved under ORS 94.600, or 90 days after conveying 10 lots in the
planned community if there is not a period of declarant control, the
declarant shall call a meeting for the purpose of turning over
administrative responsibility for the planned community to the homeowners
association.

(2) The declarant shall give notice of the meeting to each owner as
provided in the bylaws.

(3) If the declarant does not call a meeting under this section
within the required time, the transitional advisory committee formed
under ORS 94.604 or any owner may call a meeting and give notice as
required in this section. [1981 c.782 §65; 1999 c.677 §10] (1) At the
meeting called under ORS 94.609, the declarant shall turn over to the
homeowners association the responsibility for the administration of the
planned community, and the association shall accept the administrative
responsibility from the declarant.

(2) The owners shall elect a board of directors in accordance with
the bylaws of the association.

(3) At the meeting, called under ORS 94.609, the declarant shall
deliver to the association:

(a) The original or a photocopy of the recorded declaration and
copies of the bylaws and the articles of incorporation, if any, of the
planned community and any supplements and amendments to the articles or
bylaws;

(b) A deed to the common property in the planned community, unless
otherwise provided in the declaration;

(c) The minute books, including all minutes, and other books and
records of the association and the board of directors;

(d) All rules and regulations adopted by the declarant;

(e) Resignations of officers and members of the board of directors
who are required to resign because of the expiration of any period of
declarant control reserved pursuant to ORS 94.600;

(f) A financial statement. The financial statement:

(A) Must consist of a balance sheet and an income and expense
statement for the preceding 12-month period or the period following the
recording of the declaration, whichever period is shorter; and

(B) Must be reviewed, in accordance with the Statements on
Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants, by an independent certified
public accountant licensed in the State of Oregon if the annual
assessments of an association exceed $75,000;

(g) All funds of the association and control of the funds,
including all bank records;

(h) All tangible personal property that is property of the
association, and an inventory of the property;

(i) Records of all property tax payments for the common property to
be administered by the association;

(j) Copies of any income tax returns filed by the declarant in the
name of the association, and supporting records for the returns;

(k) All bank signature cards;

(L) The reserve account established in the name of the association
under ORS 94.595;

(m) The reserve study described in ORS 94.595, including all
updates and other sources of information that serve as a basis for
calculating reserves in accordance with ORS 94.595;

(n) An operating budget for the portion of the planned community
turned over to association administration and a budget for replacement
and maintenance of the common property;

(o) A copy of the following, if available:

(A) The as-built architectural, structural, engineering,
mechanical, electrical and plumbing plans;

(B) The original specifications, indicating all subsequent material
changes;

(C) The plans for underground site service, site grading, drainage
and landscaping together with cable television drawings;

(D) Any other plans and information relevant to future repair or
maintenance of the property; and

(E) A list of the general contractor and the electrical, heating
and plumbing subcontractors responsible for construction or installation
of common property;

(p) Insurance policies;

(q) Copies of any occupancy permits issued for the planned
community;

(r) Any other permits issued by governmental bodies applicable to
the planned community in force or issued within one year before the date
on which the owners assume administrative responsibility;

(s) A list of any written warranties on the common property that
are in effect and the names of the contractor, subcontractor or supplier
who made the installation for which the warranty is in effect;

(t) A roster of owners and their addresses and telephone numbers,
if known, as shown on the records of the declarant;

(u) Leases of the common property and any other leases to which the
association is a party;

(v) Employment or service contracts in which the association is one
of the contracting parties or service contracts in which the association
or the owners have an obligation or responsibility, directly or
indirectly, to pay some or all of the fee or charge of the person
performing the service; and

(w) Any other contracts to which the homeowners association is a
party.

(4) In order to facilitate an orderly transition, during the
three-month period following the turnover meeting, the declarant or an
informed representative shall be available to meet with the board of
directors on at least three mutually acceptable dates to review the
documents delivered under subsection (3) of this section.

(5) If the declarant has complied with this section and unless the
declarant has sufficient voting rights as a lot owner to control the
association, the declarant is not responsible for the failure of the
owners to comply with subsection (1) of this section and the declarant is
relieved from further responsibility for the administration of the
association, except as a lot owner. [1981 c.782 §67; 1983 c.206 §3; 1999
c.677 §11; 2001 c.756 §11; 2003 c.803 §19] If a
declarant has not completed development of lots or common property in a
planned community at the time of the meeting called under ORS 94.609, the
declarant may continue to hold the special declarant rights, other than a
right of declarant control, reserved under the declaration. [1981 c.782
§68; 1999 c.677 §12](1) As used in this section, “affiliate” means any
person who controls a transferor or successor declarant, is controlled by
a transferor or successor declarant or is under common control with a
transferor or successor declarant.

(2) A person controls or is controlled by a transferor or successor
declarant if the person:

(a) Is a general partner, officer, director or employee;

(b) Directly or indirectly, or acting in concert with one or more
other persons or through one or more subsidiaries, owns, controls, holds
with power to vote, or holds proxies representing more than 20 percent of
the voting interests of the transferor or successor declarant;

(c) Controls in any manner the election of a majority of the
members of the board of directors; or

(d) Has contributed more than 20 percent of the capital of the
transferor or successor declarant.

(3) Upon the transfer of any special declarant right, the
liabilities and obligations of a transferor are as follows:

(a) A transferor is not relieved of any obligation or liability
arising before the transfer. Lack of privity does not deprive any owner
of standing to bring an action to enforce any obligation of the
transferor.

(b) If a transferor retains any special declarant right, or if a
successor declarant is an affiliate of the transferor, the transferor is
subject to liability for all obligations and liabilities imposed on a
declarant by the provisions of ORS 94.550 to 94.783 or by the declaration
or bylaws arising after the transfer and is jointly and severally liable
with the successor declarant for the liabilities and obligations of the
successor declarant which relate to the subject lot.

(c) A transferor who retains no special declarant right has no
obligation or liability for any act or omission or any breach of a
contractual obligation arising from the exercise of a special declarant
right by a successor declarant who is not an affiliate of the transferor.

(4) Upon transfer of any special declarant right, the liabilities
and obligations of a successor declarant are as follows:

(a) A successor declarant who is an affiliate of the transferor is
subject to all obligations and liabilities imposed on a declarant by the
provisions of this chapter or by the declaration or bylaws.

(b) A successor declarant who is not an affiliate of the transferor
shall not be liable for any misrepresentations or warranties made or
required to be made by the declarant or previous successor declarant or
for any breach of fiduciary obligation by such person. Such a successor
declarant, however, shall comply with any provisions of the declaration
and bylaws which pertain to such successor declarant’s ownership of the
lot or lots and the exercise of any special declarant right. [1999 c.677
§34](1) Except as otherwise provided in subsections
(2) and (3) of this section, a developer, vendor under a land sale
contract, mortgagee of a mortgage or beneficiary of a trust deed
affecting the declarant’s interest in the property shall acquire all
special declarant rights of the transferor upon transfer by the declarant
or prior successor declarant of all of such transferor’s interest in a
lot or lots, unless:

(a) The conveyance evidences an intent not to transfer any special
declarant rights;

(b) An instrument executed by the transferor and the transferee
evidences an intent not to transfer any special declarant rights and is
recorded in the office of the recording officer of every county in which
the property is located; or

(c) The transferee executes an instrument disclaiming any right to
exercise any special declarant rights and such instrument is recorded in
the office of the recording officer of every county in which the property
is located.

(2) A transferee under subsection (1) of this section shall acquire
less than all special declarant rights if:

(a) The conveyance from the transferor or an instrument executed by
the transferor and the transferee evidences an intent to transfer less
than all special declarant rights and states the specific rights being
transferred, and such instrument is recorded in the office of the
recording officer of every county in which the property is located; or

(b) The transferee executes an instrument disclaiming specific
special declarant rights and the instrument is recorded in the office of
the recording officer of every county in which the property is located.

(3) When a transferee acquires all of the declarant’s interest in a
lot or lots in which the declarant has reserved the right to expand the
planned community under ORS 94.580, the transferee shall not acquire the
right to annex property unless the transferee simultaneously acquires
from the declarant property adjacent to the lot or lots which are
entitled to be annexed to the lot or lots, or unless the conveyance
evidences an intent to transfer such right to the transferee.

(4) A declarant or a successor declarant may transfer all or less
than all of the transferor’s special declarant rights to a transferee,
whether or not any interest in real property is conveyed, by an
instrument executed by the declarant or successor declarant and the
transferee evidencing an intent to transfer all or specific special
declarant rights, which instrument shall be recorded in the office of the
recording officer of every county in which the property is located. If
the transfer is not subject to subsection (1) of this section, it shall
also bear the written consent of any holder of a blanket encumbrance on
the lot.

(5) An instrument disclaiming or transferring special declarant
rights shall be properly acknowledged as provided by law. [1999 c.677 §35](Homeowners Association; Management of Planned Community)(1) Not later than the date on which the
first lot in the planned community is conveyed, the declarant shall:

(a) Organize the homeowners association as a nonprofit corporation
under ORS chapter 65;

(b) Adopt, on behalf of the association, the initial bylaws
required under ORS 94.635 to govern the administration of the planned
community; and

(c) Record the bylaws in the office of the recording officer of
each county in which the planned community is located.

(2)(a) The board of directors of an association of a planned
community created under ORS 94.550 to 94.783 before January 1, 2002, or a
planned community described in ORS 94.572 shall cause the bylaws of the
association and amendments to the bylaws in effect but not codified in
the bylaws to be certified as provided in this subsection and recorded in
the office of the recording officer of each county in which the planned
community is located within 180 days of receipt of a written request from
an owner that the bylaws be recorded.

(b) The president and secretary of the association shall certify
and acknowledge, in the manner provided for acknowledgment of deeds, that:

(A) The bylaws are the duly adopted bylaws of the association; and

(B) Each amendment to the bylaws was duly adopted in accordance
with the bylaws of the association.

(c) The 180-day period specified in paragraph (a) of this
subsection may be extended as necessary if the board of directors is
unable to record the bylaws for justifiable reasons.

(d) Failure to record the bylaws or amendments to the bylaws in
accordance with this subsection does not render the bylaws or amendments
to the bylaws ineffective.

(3) Unless otherwise provided in the bylaws, amendments to the
bylaws may be proposed by a majority of the board of directors or by at
least 30 percent of the owners of the planned community.

(4) Subject to subsection (5) of this section, an amendment is not
effective unless the amendment is:

(a) Approved, unless otherwise provided in the bylaws, by a
majority of the votes in a planned community present, in person or by
proxy, at a duly constituted meeting, by written ballot in lieu of a
meeting under ORS 94.647 or other procedure permitted under the
declaration or bylaws;

(b) Certified by the president and secretary of the association as
having been adopted in accordance with the bylaws and this section and
acknowledged in the manner provided for acknowledgment of deeds if the
amendment is required to be recorded under paragraph (c) of this
subsection; and

(c) Recorded in the office of the recording officer if the bylaws
to which the amendment relates were recorded.

(5) If a provision required to be in the declaration under ORS
94.580 is included in the bylaws, the voting requirements for amending
the declaration shall also govern the amendment of the provision in the
bylaws.

(6) Notwithstanding a provision in the bylaws, including bylaws
adopted prior to July 14, 2003, that requires an amendment to be
executed, or executed and acknowledged, by all owners approving the
amendment, amendments to the bylaws under this section become effective
after approval by the owners if executed and certified on behalf of the
association by the president and secretary in accordance with subsection
(4)(b) of this section.

(7) An amendment to the bylaws is conclusively presumed to have
been regularly adopted in compliance with all applicable procedures
relating to the amendment unless an action is brought within one year
after the effective date of the amendment or the face of the amendment
indicates that the amendment received the approval of fewer votes than
required for approval. Nothing in this subsection prevents the further
amendment of an amended bylaw.

(8) Failure to comply with subsection (1) of this section does not
invalidate a conveyance from the declarant to an owner.

(9) The board of directors, by resolution and without the further
approval of the owners, may cause restated bylaws to be prepared and
recorded to codify individual amendments that have been adopted in
accordance with subsection (4) of this section. Bylaws restated under
this subsection must:

(a) Include all previously adopted amendments that are in effect
and may not include any other changes except to correct scriveners’
errors or to conform format and style;

(b) Include a statement that the board of directors has adopted a
resolution in accordance with this subsection and is causing the bylaws
to be restated and recorded under this subsection;

(c) Include a reference to the recording index numbers and date of
recording of the initial bylaws, if recorded, and all previously recorded
amendments that are in effect and are being codified;

(d) Include a certification by the president and secretary of the
association that the restated bylaws include all previously adopted
amendments that are in effect and no other changes except, if applicable,
to correct scriveners’ errors or to conform form and style; and

(e) Be executed and acknowledged by the president and secretary of
the association and recorded in the deed records of each county in which
the planned community is located. [1981 c.782 §35; 2001 c.756 §12; 2003
c.569 §10] (1) Subject to subsection (2) of this
section and except as otherwise provided in its declaration or bylaws, a
homeowners association may:

(a) Adopt and amend bylaws, rules and regulations for the planned
community;

(b) Adopt and amend budgets for revenues, expenditures and
reserves, and collect assessments from owners for common expenses and the
reserve account established under ORS 94.595;

(c) Hire and terminate managing agents and other employees, agents
and independent contractors;

(d) Defend against any claims, proceedings or actions brought
against it;

(e) Subject to subsection (4) of this section, initiate or
intervene in litigation or administrative proceedings in its own name and
without joining the individual owners in the following:

(A) Matters relating to the collection of assessments and the
enforcement of governing documents;

(B) Matters arising out of contracts to which the association is a
party;

(C) Actions seeking equitable or other nonmonetary relief regarding
matters that affect the common interests of the owners, including but not
limited to the abatement of nuisance;

(D) Matters relating to or affecting common property, including but
not limited to actions for damage, destruction, impairment or loss of use
of any common property;

(E) Matters relating to or affecting the lots or interests of the
owners including but not limited to damage, destruction, impairment or
loss of use of a lot or portion thereof, if:

(i) Resulting from a nuisance or a defect in or damage to common
property; or

(ii) Required to facilitate repair to any common property; and

(F) Any other matter to which the association has standing under
law or pursuant to the declaration or bylaws;

(f) Make contracts and incur liabilities;

(g) Regulate the use, maintenance, repair, replacement and
modification of common property;

(h) Cause additional improvements to be made as a part of the
common property;

(i) Acquire, hold, encumber and convey in its own name any right,
title or interest to real or personal property, except that common
property may be conveyed or subjected to a security interest only
pursuant to ORS 94.665;

(j) Grant easements, leases, licenses and concessions through or
over the common property;

(k) Modify, close, remove, eliminate or discontinue the use of
common property, including any improvement or landscaping, regardless of
whether the common property is mentioned in the declaration, provided
that:

(A) Nothing in this paragraph is intended to limit the authority of
the association to seek approval of the modification, closure, removal,
elimination or discontinuance by the owners; and

(B) Modification, closure, removal, elimination or discontinuance
other than on a temporary basis of any swimming pool, spa or recreation
or community building must be approved by at least a majority of owners
voting on the matter at a meeting or by written ballot held in accordance
with the declaration, bylaws or ORS 94.647;

(L) Impose and receive any payments, fees or charges for the use,
rental or operation of the common property and services provided to
owners;

(m) Adopt rules regarding the termination of utility services paid
for out of assessments of the association and access to and use of
recreational and service facilities available to owners and, after giving
written notice and an opportunity to be heard, terminate the rights of
any owners to receive such benefits or services until the correction of
any violation covered by such rule has occurred;

(n) Impose charges for late payment of assessments and attorney
fees related to the collection of assessments and, after giving written
notice and an opportunity to be heard, levy reasonable fines for
violations of the declaration, bylaws, rules and regulations of the
association, provided that the charge imposed or the fine levied by the
association is based:

(A) On a schedule contained in the declaration or bylaws, or an
amendment to either that is delivered to each lot, mailed to the mailing
address of each lot or mailed to the mailing addresses designated in
writing by the owners; or

(B) On a resolution of the association or its board of directors
that is delivered to each lot, mailed to the mailing address of each lot
or mailed to the mailing addresses designated in writing by the owners;

(o) Impose reasonable charges for the preparation and recordation
of amendments to the declaration;

(p) Provide for the indemnification of its officers and the board
of directors and maintain liability insurance for directors and officers;

(q) Assign its right to future income, including the right to
receive common expense assessments; and

(r) Exercise any other powers necessary and proper for the
administration and operation of the association.

(2) Notwithstanding subsection (1) of this section, a declaration
may not impose any limitation on the ability of the association to deal
with a declarant that is more restrictive than the limitations imposed on
the ability of the association to deal with any other person, except
during the period of declarant control under ORS 94.600.

(3) A permit or authorization, or an amendment, modification,
termination or other instrument affecting a permit or authorization,
issued by the board of directors that is authorized by law, the
declaration or bylaws may be recorded in the deed records of the county
in which the planned community is located. A permit or authorization, or
an amendment, modification, termination or other instrument affecting a
permit or authorization, recorded under this subsection shall:

(a) Be executed by the president and secretary of the association
and acknowledged in the manner provided for acknowledgment of instruments
by the officers;

(b) Include the name of the planned community and a reference to
where the declaration and any applicable supplemental declarations are
recorded;

(c) Identify, by the designations stated or referenced in the
declaration or applicable supplemental declaration, all affected lots and
common property; and

(d) Include other information and signatures if required by law,
the declaration, bylaws or the board of directors.

(4)(a) Subject to paragraph (f) of this subsection, before
initiating litigation or an administrative proceeding in which the
association and an owner have an adversarial relationship, the party that
intends to initiate litigation or an administrative proceeding shall
offer to use any dispute resolution program available within the county
in which the planned community is located that is in substantial
compliance with the standards and guidelines adopted under ORS 36.175.
The written offer must be hand-delivered or mailed by certified mail,
return receipt requested, to the address, contained in the records of the
association, for the other party.

(b) If the party receiving the offer does not accept the offer
within 10 days after receipt by written notice hand-delivered or mailed
by certified mail, return receipt requested, to the address, contained in
the records of the association, for the other party, the initiating party
may commence the litigation or the administrative proceeding. The notice
of acceptance of the offer to participate in the program must contain the
name, address and telephone number of the body administering the dispute
resolution program.

(c) If a qualified dispute resolution program exists within the
county in which the planned community is located and an offer to use the
program is not made as required under paragraph (a) of this subsection,
litigation or an administrative proceeding may be stayed for 30 days upon
a motion of the noninitiating party. If the litigation or administrative
action is stayed under this paragraph, both parties shall participate in
the dispute resolution process.

(d) Unless a stay has been granted under paragraph (c) of this
subsection, if the dispute resolution process is not completed within 30
days after receipt of the initial offer, the initiating party may
commence litigation or an administrative proceeding without regard to
whether the dispute resolution is completed.

(e) Once made, the decision of the court or administrative body
arising from litigation or an administrative proceeding may not be set
aside on the grounds that an offer to use a dispute resolution program
was not made.

(f) The requirements of this subsection do not apply to
circumstances in which irreparable harm to a party will occur due to
delay or to litigation or an administrative proceeding initiated to
collect assessments, other than assessments attributable to fines. [1981
c.782 §36; 1999 c.677 §13; 2001 c.756 §13; 2003 c.569 §11] The bylaws of an association adopted
under ORS 94.625, or amended or adopted under ORS 94.630, shall provide
for the following:

(1) The organization of the association of owners in accordance
with ORS 94.625 and 94.630, including when the initial meeting shall be
held and the method of calling that meeting.

(2) If a Class I planned community, the formation of a transitional
advisory committee in accordance with ORS 94.604.

(3) The turnover meeting required under ORS 94.609, including the
time by which the meeting shall be called, the method of calling the
meeting, the right of an owner under ORS 94.609 (3) to call the meeting
and a statement of the purpose of the meeting.

(4)(a) The method of calling the annual meeting and all other
meetings of the owners in accordance with ORS 94.650; and

(b) The percentage of votes that shall constitute a quorum.

(5)(a) The election of a board of directors from among the unit
owners and the number of persons constituting the board;

(b) The powers and duties of the board;

(c) Any compensation of the directors; and

(d) The method of removing directors from office in accordance with
ORS 94.640 (6).

(6) The terms of office of directors.

(7) The method of calling meetings of the board of directors in
accordance with ORS 94.640 (8) and a statement that all meetings of the
board of directors shall be open to owners.

(8) The offices of president, secretary and treasurer and any other
offices of the association, and the method of selecting and removing
officers and filling vacancies in the offices.

(9) The preparation and adoption of a budget in accordance with ORS
94.645.

(10)(a) The program for maintenance, upkeep, repair and replacement
of the common property;

(b) The method of payment for the expense of the program and other
expenses of the planned community; and

(c) The method of approving payment vouchers.

(11) The employment of personnel necessary for the administration
of the planned community and maintenance, upkeep and repair of the common
property.

(12) The manner of collecting assessments from the owners.

(13) Insurance coverage in accordance with ORS 94.675 and 94.685.

(14) The preparation and distribution of the annual financial
statement required under ORS 94.670.

(15) The method of adopting administrative rules and regulations
governing the details for the operation of the planned community and use
of the common property.

(16) The method of amending the bylaws in accordance with ORS
94.630. The bylaws may require no greater than an affirmative majority of
votes to amend any provision of the bylaws.

(17) If additional property is proposed to be annexed pursuant to
ORS 94.580 (3), the method of apportioning common expenses if new lots
are added during the fiscal year.

(18) Any other details regarding the planned community that the
declarant or the association consider desirable. However, if a provision
required to be in the declaration under ORS 94.580 is included in the
bylaws, the voting requirements for amending the declaration shall govern
the amendment of that provision of the bylaws. [1981 c.782 §37; 1999
c.677 §14; 2001 c.756 §14](1) The board of directors of an
association may act on behalf of the association except as limited by the
declaration and the bylaws. In the performance of their duties, officers
and members of the board of directors are governed by this section and
the applicable provisions of ORS 65.357, 65.361, 65.367, 65.369 and
65.377, whether or not the association is incorporated under ORS chapter
65.

(2) Unless otherwise provided in the bylaws, the board of directors
may fill vacancies in its membership for the unexpired portion of any
term.

(3) At least annually, the board of directors of an association
shall review the insurance coverage of the association.

(4) The board of directors of the association annually shall cause
to be filed the necessary income tax returns for the association.

(5) The board of directors of the association may record a
statement of association information as provided in ORS 94.667.

(6) Unless otherwise provided in the declaration or bylaws:

(a) The owners may remove any member of the board of directors,
other than members appointed by the declarant or persons who are ex
officio directors, with or without cause, by a majority vote of all
owners present and entitled to vote at any meeting of the owners at which
a quorum is present.

(b) Removal of a director is not effective unless the matter of
removal is an item on the agenda and stated in the notice for the meeting
required under ORS 94.650.

(7)(a) All meetings of the board of directors of the association
shall be open to owners, except that at the discretion of the board the
following matters may be considered in executive session:

(A) Consultation with legal counsel concerning the rights and
duties of the association regarding existing or potential litigation, or
criminal matters;

(B) Personnel matters, including salary negotiations and employee
discipline;

(C) Negotiation of contracts with third parties; and

(D) Collection of unpaid assessments.

(b) Except in the case of an emergency, the board of directors of
an association shall vote in an open meeting whether to meet in executive
session. If the board of directors votes to meet in executive session,
the presiding officer of the board of directors shall state the general
nature of the action to be considered and, as precisely as possible, when
and under what circumstances the deliberations can be disclosed to
owners. The statement, motion or decision to meet in executive session
must be included in the minutes of the meeting.

(c) A contract or an action considered in executive session does
not become effective unless the board of directors, following the
executive session, reconvenes in open meeting and votes on the contract
or an action, which must be reasonably identified in the open meeting and
included in the minutes.

(d) The meeting and notice requirements in this section may not be
circumvented by chance or social meetings or by any other means.

(8) In a planned community in which the majority of the lots are
the principal residences of the occupants, meetings of the board of
directors must comply with the following:

(a) For other than emergency meetings, notice of board of
directors’ meetings shall be posted at a place or places on the property
at least three days prior to the meeting or notice shall be provided by a
method otherwise reasonably calculated to inform lot owners of such
meetings;

(b) Emergency meetings may be held without notice, if the reason
for the emergency is stated in the minutes of the meeting; and

(c) Only emergency meetings of the board of directors may be
conducted by telephonic communication or by the use of a means of
communication that allows all members of the board of directors
participating to hear each other simultaneously or otherwise to be able
to communicate during the meeting. A member of the board of directors
participating in a meeting by this means is deemed to be present in
person at the meeting.

(9) The board of directors, in the name of the association, shall
maintain a current mailing address of the association.

(10) The board of directors shall cause the information required to
enable the association to comply with ORS 94.670 (7) to be maintained and
kept current.

(11) As used in this section, “meeting” means a convening of a
quorum of members of the board of directors where matters relating to
association business are discussed, except a convening of a quorum of
members of the board of directors for the purpose of participating in
litigation, mediation or arbitration proceedings. [1981 c.782 §38; 1983
c.206 §4; 1999 c.677 §15; 2001 c.756 §15; 2003 c.569 §12] Unless otherwise provided in the
bylaws, the board of directors at least annually shall adopt a budget for
the planned community. Within 30 days after adopting the annual budget
for the planned community, the board of directors shall provide a summary
of the budget to all owners. If the board fails to adopt a budget, the
last adopted annual budget shall continue in effect. [1981 c.782 §39;
1999 c.677 §16](1)
Unless prohibited or limited by the declaration or bylaws, any action
that may be taken at any annual, regular or special meeting of the
homeowners association may be taken without a meeting if the association
delivers a written ballot to every association member that is entitled to
vote on the matter. Action by written ballot may not substitute for the
following meetings:

(a) A turnover meeting required under ORS 94.616.

(b) An annual meeting of an association if more than a majority of
the lots are the principal residences of the occupants.

(2)(a) A written ballot shall set forth each proposed action and
provide an opportunity to vote for or against each proposed action.

(b) The board of directors must provide owners with at least 10
days’ notice before written ballots are mailed or otherwise delivered.
If, at least three days before written ballots are scheduled to be mailed
or otherwise distributed, at least 10 percent of the owners petition the
board of directors requesting secrecy procedures, a written ballot must
be accompanied by:

(A) A secrecy envelope;

(B) A return identification envelope to be signed by the owner; and

(C) Instructions for marking and returning the ballot.

(c) The notice required under paragraph (b) of this subsection
shall state:

(A) The general subject matter of the vote by written ballot;

(B) The right of owners to request secrecy procedures specified in
paragraph (b) of this subsection;

(C) The date after which ballots may be distributed;

(D) The date and time by which any petition must be received by the
board requesting secrecy procedures; and

(E) The address where any petition must be delivered.

(d) Notwithstanding the applicable provisions of subsection (3) or
(4) of this section, written ballots that are returned in secrecy
envelopes may not be examined or counted before the deadline for
returning ballots has passed.

(3) Matters that may be voted on by written ballot shall be deemed
approved or rejected as follows:

(a) If approval of a proposed action otherwise would require a
meeting at which a certain quorum must be present and at which a certain
percentage of total votes cast is required to authorize the action, the
proposal shall be deemed to be approved when the date for the return of
ballots has passed, a quorum of owners has voted and the required
percentage of approving votes has been received. Otherwise, the proposal
shall be deemed to be rejected; or

(b) If approval of a proposed action otherwise would require a
meeting at which a specified percentage of owners must authorize the
action, the proposal shall be deemed to be approved when the percentage
of total votes cast in favor of the proposal equals or exceeds such
required percentage. The proposal shall be deemed to be rejected when the
number of votes cast in opposition renders approval impossible or when
both the date for return of ballots has passed and such required
percentage has not been met. Unless otherwise prohibited by the
declaration or bylaws, the votes may be counted from time to time before
the final return date to determine whether the proposal has passed or
failed by the votes already cast on the date they are counted.

(4) All solicitations for votes by written ballot shall state the
following:

(a) If approval of a proposal by written ballot requires that the
total number of votes cast equal or exceed a certain quorum requirement,
the number of responses needed to meet such quorum requirement; and

(b) If approval of a proposal by written ballot requires that a
certain percentage of total votes cast approve the proposal, the required
percentage of total votes needed for approval.

(5) All solicitations for votes by written ballot shall specify the
period during which the association shall accept written ballots for
counting, which period shall end on the earliest of the following dates:

(a) If approval of a proposed action by written ballot requires
that a certain percentage of the owners approve the proposal, the date on
which the association has received a sufficient number of approving
ballots;

(b) If approval of a proposed action by written ballot requires
that a certain percentage of the owners approve the proposal, the date on
which the association has received a sufficient number of disapproving
ballots to render approval impossible; or

(c) In all cases, the date certain on which all ballots must be
returned to be counted.

(6) Except as otherwise provided in the declaration or bylaws, a
written ballot may not be revoked. [1999 c.677 §31; 2001 c.756 §16; 2003
c.569 §13] (1) The homeowners
association shall hold at least one meeting of the owners each calendar
year.

(2)(a) Special meetings of the association may be called by the
president of the board of directors, a majority of the board of directors
or a percentage of owners specified in the bylaws of the association.
However, the bylaws may not require a percentage greater than 50 percent
or less than 10 percent of the votes of the planned community for the
purpose of calling a meeting.

(b) If the bylaws do not specify a percentage of owners that may
call a special meeting, 30 percent or more of the owners may call a
special meeting, notice of which shall be given as specified in this
section.

(c) Business transacted at a special meeting shall be confined to
the purposes stated in the notice.

(3) Not less than 10 or more than 50 days before any meeting called
under this section, the secretary or other officer specified in the
bylaws shall cause notice to be hand delivered or mailed to the mailing
address of each lot or to the mailing address designated in writing by
the owner, and to all mortgagees that have requested such notice.
Mortgagees may designate a representative to attend a meeting called
under this section.

(4) The notice of a meeting shall state the time and place of the
meeting and the items on the agenda, including the general nature of any
proposed amendment to the declaration or bylaws, any budget changes or
any proposal to remove a director or officer. [1981 c.782 §40; 1999 c.677
§17; 2001 c.756 §17] Unless the bylaws of a
homeowners association provide otherwise, a quorum for any meeting of the
association shall consist of the number of persons who are entitled to
cast 20 percent of the votes and who are present in person or by proxy at
the beginning of the meeting. [1981 c.782 §41; 1999 c.677 §18] Unless other rules of order are required by
the declaration or bylaws or by a resolution of the association or its
board of directors:

(1) Meetings of the association and the board of directors shall be
conducted according to the latest edition of Robert’s Rules of Order
published by the Robert’s Rules Association.

(2) A decision of the association or the board of directors may not
be challenged because the appropriate rules of order were not used unless
a person entitled to be heard was denied the right to be heard and raised
an objection at the meeting in which the right to be heard was denied.

(3) A decision of the association and the board of directors is
deemed valid without regard to procedural errors related to the rules of
order one year after the decision is made unless the error appears on the
face of a written instrument memorializing the decision. [2001 c.756 §4] (1) Unless the declaration provides
otherwise, each lot shall be entitled to one vote.

(2) Unless the declaration or bylaws provide otherwise:

(a) An executor, administrator, guardian or trustee may vote, in
person or by proxy, at a meeting of the association with respect to a lot
owned or held in a fiduciary capacity if the fiduciary satisfies the
secretary of the board of directors that the person is the executor,
administrator, guardian or trustee holding the lot.

(b) When a lot is owned by two or more persons jointly, according
to the records of the association:

(A) Except as provided in this paragraph, the vote or proxy of the
lot may be exercised by a co-owner in the absence of protest by another
co-owner. If the co-owners cannot agree upon the vote, the vote of the
lot shall be disregarded completely in determining the proportion of
votes given with respect to such matter.

(B) A valid court order may establish the right of co-owners’
authority to vote. [2001 c.756 §2] (1) Unless the bylaws
provide otherwise, the vote or votes of a lot may be cast by absentee
ballot or pursuant to a proxy executed by the owner.

(2) An owner may not revoke a proxy given pursuant to this section
except by actual notice of revocation to the person presiding over a
meeting of the association or to the board of directors if a vote is
being conducted by written ballot in lieu of a meeting pursuant to ORS
94.647.

(3) A proxy is not valid if it is undated or purports to be
revocable without notice. A proxy shall terminate one year after its date
unless the proxy specifies a shorter term. [1981 c.782 §42; 1999 c.677
§19; 2003 c.569 §14](1) At least 10 days prior to instituting any
litigation or administrative proceeding to recover damages under ORS
94.630 (1)(e)(E), the homeowners association shall provide written notice
to each affected owner of the association’s intent to seek damages on
behalf of the owner. The notice shall, at a minimum:

(a) Be mailed to the mailing address of each lot or to the mailing
address designated in writing to the association by the owner;

(b) Inform each owner of the general nature of the litigation or
proceeding;

(c) Describe the specific nature of the damages to be sought on the
owner’s behalf;

(d) Set forth the terms under which the association is willing to
seek damages on the owner’s behalf, including any mechanism proposed for
the determination and distribution of any damages recovered;

(e) Inform each owner of the owner’s right not to have the damages
sought on the owner’s behalf and specify the procedure for exercising the
right; and

(f) Inform the owner that exercising the owner’s right not to have
damages sought on the owner’s behalf:

(A) Relieves the association of its duty to reimburse or indemnify
the owner for the damages;

(B) Does not relieve the owner from the owner’s obligation to pay
dues or assessments relating to the litigation or proceeding;

(C) Does not impair any easement owned or possessed by the
association; and

(D) Does not interfere with the association’s right to make repairs
to common areas.

(2) Within 10 days of mailing the notice described in this section,
any owner may request in writing that the association not seek damages on
the owner’s behalf. If an owner makes such a request, the association
shall not make or continue any claim or action for damages with regard to
the objecting owner’s lot and shall be relieved of any duty to reimburse
or indemnify the owner for damages under the litigation or proceeding.
[1999 c.677 §37; 2001 c.756 §18](1) Except as otherwise provided in the declaration, a
homeowners association may sell, convey or subject to a security interest
any portion of the common property if 80 percent or more of the votes in
the homeowners association, including 80 percent of the votes of lots not
owned by a declarant at the time of the vote, are cast in favor of that
action. The association shall treat proceeds of any sale under this
section as an asset of the association.

(2) A sale, transfer or encumbrance of the common property or any
portion of the common property made pursuant to a right reserved in the
declaration under this section may provide that the common property be
released from any restriction imposed on the common property by the
declaration. However, a sale, transfer or encumbrance may not deprive any
lot of its right of access to or support for the lot without the consent
of the owner of the lot. [1981 c.782 §47; 1987 c.447 §112; 1999 c.677 §20] (1) As
used in this section, “association” means an association formed under ORS
94.625, 94.846 or 100.405, or any other association in which a person
holds membership by virtue of owning or possessing a real estate interest
subject to assessment and lien authority pursuant to a recorded
instrument.

(2) The board of directors or managing agent of an association may
record with the county clerk for the county where the subject property is
located a statement of association information. Subject to subsection (3)
of this section, the statement shall contain at least the following
information:

(a) The name of the association as identified in the recorded
declaration, conditions, covenants and restrictions or other governing
instrument, and the current name of the association, if different;

(b) The name, address and daytime telephone number of a managing
agent or treasurer of the association or other person authorized to
receive:

(A) Assessments and fees imposed by the association; or

(B) Notice of a transfer of property;

(c) A list of the properties, as described for recordation in ORS
93.600, subject to assessment by the association;

(d) Information identifying the recorded declaration, conditions,
covenants and restrictions or other governing instrument, and a reference
to where the instruments are recorded; and

(e) If an amended statement is being recorded, information
identifying prior recorded statements.

(3) The statement may not include information for a purpose that is
not related to the identification of the person specified in subsection
(2)(b) of this section.

(4) The county clerk may charge a fee for recording a statement
under this section according to the provisions of ORS 205.320 (4). [1999
c.447 §1; 2001 c.756 §19]Note: 94.667 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 94 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) A homeowners association
shall retain within this state the documents, information and records
delivered to the association under ORS 94.616 and all other records of
the association for not less than the period specified for the record in
ORS 65.771 or any other applicable law except that:

(a) The documents specified in ORS 94.616 (3)(o), if received, must
be retained as permanent records of the association.

(b) Proxies and ballots must be retained for one year from the date
of determination of the vote.

(2) All assessments, including declarant subsidies, shall be
deposited in a separate bank account, located within this state, in the
name of the association. All expenses of the association shall be paid
from the association bank account.

(3) The association shall keep financial records sufficiently
detailed for proper accounting purposes. Within 90 days after the end of
the fiscal year, the board of directors shall:

(a) Prepare or cause to be prepared an annual financial statement
consisting of a balance sheet and income and expenses statement for the
preceding fiscal year; and

(b) Distribute to each owner and, upon written request, any
mortgagee of a lot, a copy of the annual financial statement.

(4) Subject to section 24, chapter 803, Oregon Laws 2003, the
association of a planned community that has annual assessments exceeding
$75,000 shall cause the financial statement required under subsection (3)
of this section to be reviewed within 180 days after the end of the
fiscal year by an independent certified public accountant licensed in the
State of Oregon in accordance with the Statements on Standards for
Accounting and Review Services issued by the American Institute of
Certified Public Accountants.

(5) The association of a planned community created on or after
January 1, 2004, or the association of a planned community described in
ORS 94.572 that has annual assessments of $75,000 or less shall cause the
most recent financial statement required by subsection (3) of this
section to be reviewed in the manner described in subsection (4) of this
section within 180 days after the association receives a petition
requesting review signed by at least a majority of the owners.

(6) An association subject to the requirements of subsection (4) of
this section may elect, on an annual basis, not to comply with the
requirements of subsection (4) of this section by an affirmative vote of
at least 60 percent of the owners, not including the votes of the
declarant with respect to lots owned by the declarant.

(7)(a) The association shall provide, within 10 business days of
receipt of a written request from an owner, a written statement that
provides:

(A) The amount of assessments due from the owner and unpaid at the
time the request was received, including:

(i) Regular and special assessments;

(ii) Fines and other charges;

(iii) Accrued interest; and

(iv) Late payment charges.

(B) The percentage rate at which interest accrues on assessments
that are not paid when due.

(C) The percentage rate used to calculate the charges for late
payment or the amount of a fixed charge for late payment.

(b) The association is not required to comply with paragraph (a) of
this subsection if the association has commenced litigation by filing a
complaint against the owner and the litigation is pending when the
statement would otherwise be due.

(8) The association shall make the documents, information and
records described in subsections (1) and (3) of this section and all
other records of the association reasonably available for examination
and, upon written request, available for duplication by an owner and any
mortgagee of a lot that makes the request in good faith for a proper
purpose, except that records kept by or on behalf of the association may
be withheld from examination and duplication to the extent the records
concern:

(a) Personnel matters relating to a specific identified person or a
person’s medical records.

(b) Contracts, leases and other business transactions that are
currently under negotiation to purchase or provide goods or services.

(c) Communications with legal counsel that relate to matters
specified in paragraphs (a) and (b) of this subsection.

(d) Disclosure of information in violation of law.

(e) Documents, correspondence or management or board reports
compiled for or on behalf of the association or the board of directors by
its agents or committees for consideration by the board of directors in
executive session held in accordance with ORS 94.640 (7).

(f) Documents, correspondence or other matters considered by the
board of directors in executive session held in accordance with ORS
94.640 (7).

(g) Files of individual owners, other than those of a requesting
owner or requesting mortgagee of an individual owner, including any
individual owner’s file kept by or on behalf of the association.

(9) The association shall maintain a copy, suitable for the purpose
of duplication, of the following:

(a) The declaration and bylaws, including amendments or supplements
in effect, the recorded plat, if feasible, and the association rules and
regulations currently in effect.

(b) The most recent financial statement prepared pursuant to
subsection (3) of this section.

(c) The current operating budget of the association.

(d) The reserve study, if any, described in ORS 94.595.

(e) Architectural standards and guidelines, if any.

(10) The association, within 10 business days after receipt of a
written request by an owner, shall furnish the requested information
required to be maintained under subsection (9) of this section.

(11) The board of directors, by resolution, may adopt reasonable
rules governing the frequency, time, location, notice and manner of
examination and duplication of association records and the imposition of
a reasonable fee for furnishing copies of any documents, information or
records described in this section. The fee may include reasonable
personnel costs for furnishing the documents, information or records.
[1981 c.782 §48; 1999 c.677 §21; 2001 c.756 §20; 2003 c.569 §15; 2003
c.803 §20a]Note: Section 24, chapter 803, Oregon Laws 2003, provides:

Sec. 24. The requirements of ORS 94.670 (4) first apply:

(1) Commencing with the fiscal year following the turnover meeting
required by ORS 94.616 for the association of a planned community created
under ORS 94.550 to 94.783 prior to January 1, 2004, if the turnover
meeting has not yet occurred on January 1, 2004.

(2) Commencing with the fiscal year beginning in calendar year 2004
for the association of a planned community created under ORS 94.550 to
94.783 if the turnover meeting required by ORS 94.616 has occurred on or
before January 1, 2004.

(3) Commencing with the fiscal year following the turnover meeting
required by ORS 94.616 for the association of a planned community created
under ORS 94.550 to 94.783 on or after January 1, 2004.

(4) Commencing with the fiscal year following the year in which
owners assume responsibility for administration of a planned community
described in ORS 94.572 if the owners have not assumed responsibility for
administration of the planned community on January 1, 2004.

(5) Commencing with the fiscal year beginning in calendar year 2004
for the association of a planned community described in ORS 94.572 if the
owners have assumed responsibility for administration of the planned
community on or before January 1, 2004. [2003 c.803 §24](1) The homeowners association of a subdivision that
received preliminary plat approval before July 1, 1982, shall comply with
the provisions of ORS 94.640 (1), (3), (4), (7), (8) and (9) and 94.670
if:

(a) An owner submits a written request to the homeowners
association to comply with the provisions;

(b) The subdivision otherwise conforms to the description of a
planned community under ORS 94.550; and

(c) The subdivision is not otherwise exempted under ORS 94.570.

(2) A homeowners association board of directors is not subject to
ORS 94.780 unless the association fails to comply with subsection (1) of
this section after receiving a written request from an owner. [1983 c.206
§6; 2001 c.756 §59] (1) The board of directors of
an association shall obtain:

(a) Insurance for all insurable improvements in the common property
against loss or damage by fire or other hazards, including extended
coverage, vandalism and malicious mischief. The insurance shall cover the
full replacement costs of any repair or reconstruction in the event of
damage or destruction from any such hazard if the insurance is available
at reasonable cost; and

(b) A public liability policy covering all common property and all
damage or injury caused by the negligence of the association.

(2) Premiums for insurance obtained under this section shall be a
common expense of the association. The policy may contain a reasonable
deductible and the amount thereof shall be added to the face amount of
the policy in determining whether the insurance equals at least the full
replacement cost. [1981 c.782 §51] Unless
contrary to the covenants, conditions or restrictions of a recorded
declaration or other similar instrument, or the bylaws of the association
adopted in accordance with documents governing the association, the
homeowners association board of directors of a subdivision described in
ORS 94.673 (1) may elect to be governed by ORS 94.645, 94.655 and 94.675,
without further action by the association. [1983 c.206 §7] (1) If a declaration provides
that the homeowners association has the sole authority to decide whether
to repair or reconstruct a unit that has suffered damage or whether a
unit must be repaired or reconstructed, the board of directors shall
obtain blanket all-risk insurance for the full replacement cost of all
structures in the planned community. Cost of the coverage shall be a
common expense to the association.

(2) If the declaration contains a provision described in subsection
(1) of this section, the declaration also shall provide:

(a) Requirements of or limitations on repairing or reconstructing
damaged or destroyed property;

(b) The time within which the repair or reconstruction must begin;
and

(c) The actions the board of directors must take if:

(A) Damage or destruction is not repaired or replaced; or

(B) Insurance proceeds exceed or fall short of the costs of repair
or reconstruction. [1981 c.782 §52; 1999 c.677 §22] Unless
provided in the declaration, the bylaws shall specify:

(1) The insurance an owner must obtain, if any;

(2) The insurance, if any, an individual owner is precluded from
obtaining; and

(3) Whether or not the insurance coverage obtained and maintained
by the board of directors may be brought into contribution with insurance
bought by owners or their mortgagees. [1981 c.782 §54; 1999 c.677 §23] The board of directors
of a homeowners association shall obtain, if reasonably available, terms
in insurance policies under ORS 94.680 which provide a waiver of
subrogation by the insurer as to any claims against the board of
directors of the association, any owner or any guest of an owner. [1981
c.782 §56; 1999 c.677 §24]A declaration for a planned community may delegate any of
the powers of the homeowners association under ORS 94.630 to a master
association or provide that the master association may exercise any such
power. [1981 c.782 §62](1) If entered into prior to the
meeting called under ORS 94.609, no management agreement, service
contract or employment contract which is directly made by or on behalf of
the association, the board of directors or the owners as a group shall be
in excess of three years.

(2) Any contract or agreement subject to subsection (1) of this
section and entered into after July 1, 1982, may terminate without
penalty to the declarant, the association or the board of directors
elected under ORS 94.616 if the board of directors gives not less than 30
days written notice of termination to the other party not later than 60
days after the meeting called under ORS 94.609. [1981 c.782 §69](Assessments and Liens Against Lots; Easements) (1) Subject to
subsection (2) of this section, the declarant of a planned community
shall pay all common expenses of the planned community until the
individual lots subject to assessment are assessed for common expenses as
specified in the declaration pursuant to ORS 94.580 (2).

(2) If the declaration expressly authorizes deferment, the
declarant may defer payment of accrued assessments for reserves required
under ORS 94.595 for a lot subject to assessment until the date the lot
is conveyed. However, the declarant may not defer payment of accrued
assessments for reserves:

(a) Beyond the date of the turnover meeting provided for in the
bylaws in accordance with ORS 94.635 (3); or

(b) If a turnover meeting is not held, the date the owners assume
administrative control of the association.

(3) Failure of the declarant to deposit the balance due within 30
days after the due date constitutes a violation of ORS 94.777.

(4) The books and records of the association shall reflect the
amount the declarant owes for all reserve account assessments.

(5)(a) Except for assessments under subsections (6), (7) and (8) of
this section, the board of directors shall assess all common expenses
against all the lots that are subject to assessment according to the
allocations stated in the declaration.

(b) Any assessment or any installment of the assessment past due
shall bear interest at the rate established by resolution of the board of
directors.

(c) Nothing in this section prohibits the board from making
compromises on overdue assessments if the compromise benefits the
association.

(6) Unless otherwise provided in the declaration or bylaws, any
common expense or any part of a common expense benefiting fewer than all
of the lots may be assessed exclusively against the lots or units
benefited.

(7) Unless otherwise provided in the declaration or bylaws,
assessments to pay a judgment against the association may be made only
against the lots in proportion to their common expense liabilities.

(8) If the board of directors determines that any common expense is
the fault of any owner, the homeowners association may assess the expense
exclusively against the lot of the owner.

(9) If the homeowners association reallocates common expense
liabilities, any common expense assessment and any installment of the
assessment not yet due shall be recalculated according to the reallocated
common expense liabilities.

(10)(a) A lot owner may not claim exemption from liability for
contribution toward the common expenses by waiving the use or enjoyment
of any of the common property or by abandoning the owner’s lot.

(b) An owner may not claim to offset an assessment for failure of
the association to perform the association’s obligations.

(11)(a) During any period of declarant control, any special
assessment for capital improvements or additions must be approved by not
less than 50 percent of the voting rights, or such greater percentage as
may be specified in the declaration, without regard to any weighted right
or special voting right in favor of the declarant.

(b) Nothing in this subsection is intended to prohibit a declarant
from reserving a special declarant right to approve any such assessment.
[1981 c.782 §43; 1999 c.677 §25; 2001 c.756 §21; 2003 c.569 §16](1) Whenever a
homeowners association levies any assessment against a lot, the
association shall have a lien upon the individual lot for any unpaid
assessments. The lien includes interest, late charges, attorney fees,
costs or other amounts imposed under the declaration or bylaws or other
recorded governing document. The lien is prior to a homestead exemption
and all other liens or encumbrances upon the lot except:

(a) Tax and assessment liens; and

(b) A first mortgage or trust deed of record.

(2) Recording of the declaration constitutes record notice and
perfection of the lien for assessments. No further recording of a claim
of lien for assessments or notice of a claim of lien under this section
is required to perfect the association’s lien. The association shall
record a notice of claim of lien for assessments under this section in
the deed records of the county in which a lot is located before any suit
to foreclose may proceed under subsection (4) of this section. The notice
shall contain:

(a) A true statement of the amount due for the unpaid assessments
after deducting all just credits and offsets;

(b) The name of the owner of the lot, or reputed owner, if known;

(c) The name of the association;

(d) The description of the lot as provided in ORS 93.600; and

(e) A statement that if the owner of the lot thereafter fails to
pay any assessments when due, as long as the original or any subsequent
unpaid assessment remains unpaid, the unpaid amount of assessments
automatically continue to accumulate with interest without the necessity
of further recording.

(3) The notice shall be verified by the oath of some person having
knowledge of the facts and shall be recorded by the county recording
officer. The record shall be indexed as other liens are required by law
to be indexed.

(4)(a) The proceedings to foreclose liens created by this section
shall conform as nearly as possible to the proceedings to foreclose liens
created by ORS 87.010 except, notwithstanding ORS 87.055, a lien may be
continued in force for a period of time not to exceed six years from the
date the assessment is due. For the purpose of determining the date the
assessment is due in those cases when subsequent unpaid assessments have
accumulated under a notice recorded as provided in subsection (2) of this
section, the assessment and claim regarding each unpaid assessment shall
be deemed to have been levied at the time the unpaid assessment became
due.

(b) The lien may be enforced by the board of directors acting on
behalf of the association.

(c) An action to recover a money judgment for unpaid assessments
may be maintained without foreclosing or waiving the lien securing the
claim for unpaid assessments.

(5) Unless the declaration or bylaws provide otherwise, fees, late
charges, fines and interest imposed pursuant to ORS 94.630 (1)(L), (n)
and (o) are enforceable as assessments under this section.

(6) This section does not prohibit an association from pursuing an
action to recover sums for which subsection (1) of this section creates a
lien or from taking a deed in lieu of foreclosure in satisfaction of the
lien.

(7) An action to recover a money judgment for unpaid assessments
may be maintained without foreclosing or waiving the lien for unpaid
assessments. However, recovery on the action operates to satisfy the
lien, or the portion thereof, for which recovery is made. [1981 c.782
§44; 1999 c.677 §26; 2003 c.569 §17](1) An owner
shall be personally liable for all assessments imposed on the owner or
assessed against the owner’s lot by the homeowners association.

(2)(a) Subject to paragraph (b) of this subsection, in a voluntary
conveyance of a lot, the grantee shall be jointly and severally liable
with the grantor for all unpaid assessments against the grantor of the
lot to the time of the grant or conveyance, without prejudice to the
grantee’s right to recover from the grantor the amounts paid by the
grantee therefor.

(b) Upon request of an owner or owner’s agent, for the benefit of a
prospective purchaser, the board of directors shall make and deliver a
written statement of the unpaid assessments against the prospective
grantor or the lot effective through a date specified in the statement,
and the grantee in that case shall not be liable for any unpaid
assessments against the grantor not included in the written statement.

(3) An escrow agent or a title insurance company providing escrow
services or issuing title insurance in conjunction with the conveyance:

(a) May rely on a written statement of unpaid assessments delivered
pursuant to this section; and

(b) Is not liable for a failure to pay the association at closing
any amount in excess of the amount set forth in the written statement.
[1999 c.677 §32; 2003 c.569 §18] If a lien against
two or more lots of the planned community becomes due, whether the lien
is perfected before or after establishment of the planned community, the
owner of an affected lot may pay the lienholder the portion of the lien
attributable to the lot. Upon receipt of payment, the lienholder promptly
shall deliver to the owner a release of the lien as to that lot. The
amount of the payment shall be proportionate to the ratio which that
owner’s common expense liability bears to the common expense liabilities
of all owners whose lots are subject to the lien. After payment, the
association may not assess or have a lien against that owner’s lot for
any portion of the common expense liability representing the lien. This
section applies to all liens except a mortgage. [1981 c.782 §45]Unless otherwise provided in the
declaration or bylaws, in any suit or action brought by a homeowners
association to foreclose its lien or to collect delinquent assessments or
in any suit or action brought by the declarant, the association or any
owner or class of owners to enforce compliance with the terms and
provisions of ORS 94.550 to 94.783, the declaration or bylaws, including
all amendments and supplements thereto or any rules or regulations
adopted by the association, the prevailing party shall be entitled to
recover reasonable attorney fees therein and in any appeal therefrom.
[1999 c.677 §33; 2001 c.756 §23] If a first
mortgagee acquires a lot in a planned community by foreclosure or deed in
lieu of foreclosure, the mortgagee and subsequent purchaser shall not be
liable for any of the common expenses chargeable to the lot which became
due before the mortgagee or purchaser acquired title to the lot. The
unpaid expenses shall become a common expense of all lot owners including
the mortgagee or purchaser. [1981 c.782 §46; 1999 c.677 §27] (1) Each lot in a
planned community constitutes for all purposes a separate parcel of real
estate and shall be separately taxed and assessed.

(2) No separate tax or assessment may be levied against any common
property which a declarant has reserved no right to develop into
additional lots.

(3) The declarant alone is liable for payment of taxes or
assessments on any portion of the common property of a planned community
in which the declarant has reserved the right to develop the property
into additional lots, until the right terminates or expires, or is
exercised, abandoned or relinquished.

(4) If the right described under subsection (3) of this section
terminates or expires or is abandoned or relinquished before July 1 of
any year, no tax or assessment shall be imposed against the portion of
the common property so affected for the next tax year beginning on July
1. [1981 c.782 §34] (1) Subject
to ORS 94.665, each owner of a lot has an easement through the common
property:

(a) For access to the owner’s lot; and

(b) For use of the common property consistent with the declaration
and the bylaws.

(2) Except as provided in the declaration, a declarant has an
easement through the common property as may be necessary for discharging
the declarant’s obligations or exercising any special declarant right.

(3) If an encroachment results from construction, reconstruction,
repair, shifting, settlement or movement of any portion of the planned
community, an easement for the encroachment exists to the extent that any
lot or common property encroaches on any other lot or common property. An
easement continues for maintaining the encroachment so long as the
encroachment exists. Nothing in this section relieves an owner of
liability in case of the owner’s willful misconduct or relieves a
declarant or any other person of liability for failure to adhere to the
plat of the planned community. [1981 c.782 §33](Miscellaneous) If a
declarant makes no commitment in the declaration to build an improvement
or specifically states in the declaration that the declarant makes no
commitment either to build or not to build the improvement, no person may
display or deliver promotional material to prospective purchasers which
describes or portrays the improvement unless the description or portrayal
is conspicuously labeled “POSSIBLE Improvement.” [1981 c.782 §79](1) The rule against perpetuities may
not be applied to defeat any provision of the declaration, or any bylaws
or rules adopted under ORS 94.630.

(2) In the event of a conflict between the declaration and the
bylaws of a planned community or between the declaration and the articles
of incorporation, the declaration shall prevail except to the extent the
declaration is inconsistent with ORS 94.550 to 94.783.

(3) Title to a unit, lot and common property shall not be rendered
unmarketable or otherwise affected by reason of a failure of the
declarant or the declaration to comply with ORS 94.550 to 94.783.

(4) If the provisions of ORS 94.550 to 94.783 and the provisions of
ORS chapter 65 apply to an association and the provisions conflict, the
provisions of ORS 94.550 to 94.783 control. [1981 c.782 §86; 1999 c.677
§69; 2003 c.569 §19] (1) Unless the declaration
expressly allows the division of lots in a planned community, judicial
partition by division of a lot in a planned community is not allowed
under ORS 105.205. The lot may be partitioned by sale and division of the
proceeds under ORS 105.245.

(2) The restriction specified in subsection (1) of this section
does not apply if the homeowners association has removed the property
from the provisions of the declaration. [1981 c.782 §87; 2003 c.569 §20]Each owner and the declarant shall comply with
the bylaws, and with the administrative rules and regulations adopted
pursuant thereto, and with the covenants, conditions and restrictions in
the declaration or in the deed to the lot. Failure to comply therewith
shall be grounds for an action maintainable by the homeowners association
or by an aggrieved owner. [1999 c.677 §36] (1) Failure of the declarant, association, any
association member or any other person subject to ORS 94.550 to 94.783 to
comply with applicable sections of ORS 94.550 to 94.785 shall be cause
for suit or action to remedy the violation or to recover actual damages.
The prevailing party is entitled to reasonable attorney fees and court
costs.

(2) Failure of an association to accept administrative
responsibility under ORS 94.616 shall be a defense for the declarant
against an action brought under this section.

(3) A suit or action arising under this section must be commenced
within one year after the discovery or identification of the alleged
violation. [1981 c.782 §83; 1999 c.677 §67] If a
subdivision received preliminary plat approval before July 1, 1982, but
the subdivision plat or the plat of the first phase is not filed under
ORS 92.120 before January 1, 1984, the provisions of ORS 94.595, 94.604,
94.609, 94.616, 94.700, 94.760 and 94.780 shall apply to the planned
community. [1983 c.206 §8; 1999 c.677 §68]ORS 94.550 to 94.783 may be cited as the Oregon
Planned Community Act. [1981 c.782 §1]TIMESHARE ESTATES(General Provisions) As used in
this section and ORS 94.807 to 94.945:

(1) “Agency” means the Real Estate Agency.

(2) “Accommodation” means an apartment, condominium unit, cabin,
house, lodge, hotel or motel room or other private or commercial
structure situated on real property and designed for residential
occupancy.

(3) “Assessment” means the pro rata share assessed from time to
time against each owner of a timeshare by the managing entity to pay for
common expenses.

(4) “Blanket encumbrance” means a trust deed or mortgage or any
other lien or encumbrance, mechanic’s lien or otherwise, securing or
evidencing the payment of money and affecting more than one timeshare, or
an agreement affecting more than one timeshare by which the developer
holds the timeshare property under an option, leasehold, contract to sell
or trust agreement.

(5) “Commissioner” means the Real Estate Commissioner.

(6) “Common expenses” means:

(a) Expenses of administration, maintenance, repair or replacement
of the accommodations and facilities of the timeshare plan;

(b) Expenses agreed upon as common by all the timeshare owners in
the timeshare plan; and

(c) Expenses declared common by the timeshare instrument or bylaws
of the timeshare plan.

(7) “Developer” means a person creating a timeshare plan and a
seller of a timeshare plan.

(8) “Exchange program” means any opportunity for a purchaser to
exchange timeshare periods among purchasers in the same or other
timeshare plans.

(9) “Facility” means a structure, service, improvement or real
property available for the owner’s use.

(10) “Fractional interest” means any undivided fractional ownership
of real property which gives each and every fractional owner full rights
to unlimited use and possession of the real property subject only to such
limitation as the fractional owners may agree to among themselves.

(11) “Managing entity” means the person designated in the timeshare
instrument or selected by the owners’ association board or by the owners
to manage all or a portion of the timeshare plan.

(12) “Negotiate” means any activity preliminary to the execution of
a binding agreement for the sale of a timeshare, including but not
limited to advertising, solicitation and promotion of the sale of the
timeshare.

(13) “Offering” means any advertisement, inducement, solicitation
or attempt to encourage a person to acquire a timeshare, other than as a
security for an obligation. An advertisement in a newspaper or other
periodical of general circulation, or in any broadcast medium to the
general public, of a timeshare in property located outside this state is
not an offering if the advertisement states that the offering is valid
only if made in compliance with the law of the jurisdiction in which the
offer is disseminated.

(14) “Owner” means a person, other than the developer, to whom a
timeshare has been conveyed other than as security for an obligation.

(15) “Project” means real property subject to a timeshare
instrument. A project may include accommodations that are not timeshare
accommodations.

(16) “Purchaser” means any person, other than a developer, who by
voluntary transfer acquires an interest in a timeshare other than as
security for an obligation.

(17) “Sale” means a transaction that conveys a timeshare other than
as security for an obligation, including, but not limited to a lease or
assignment.

(18) “Seller” means a person who offers a timeshare for sale to the
public. “Seller” does not include a person who acquired a timeshare for
the person’s own use and later offers it for resale.

(19) “Timeshare” means a timeshare estate or a timeshare license.

(20) “Timeshare agreement” means an agreement conferring the rights
and obligations of the timeshare plan on a purchaser including but not
limited to a deed, lease and vacation license.

(21) “Timeshare estate” means a right to occupy an accommodation
during five or more separated timeshare periods over a period of at least
five years, including renewal options, coupled with a freehold estate or
an estate for years in the timeshare property.

(22) “Timeshare instrument” means a document creating or regulating
timeshares.

(23) “Timeshare license” means a right to occupy an accommodation
during five or more separated timeshare periods over a period of more
than three years, including renewal options, not coupled with a freehold
estate or an estate for years.

(24) “Timeshare period” means the period of time when an owner is
entitled to possess and occupy accommodations or facilities of a
timeshare plan.

(25) “Timeshare plan” means an arrangement, whether by membership,
agreement, tenancy in common, sale, lease, deed, rental agreement,
license, right to use agreement or otherwise, in which an owner receives
a timeshare estate or a timeshare license and the right to use
accommodations and facilities that are part of the timeshare property. A
timeshare plan does not include an exchange program.

(26) “Timeshare property” means one or more accommodations subject
to the same timeshare instrument and any other real estate or rights
appurtenant to those accommodations. [1983 c.530 §2; 1987 c.414 §144b;
1991 c.64 §1] The Legislative Assembly finds and
declares that there is a need to:

(1) Protect timeshare purchasers by requiring full and adequate
disclosure of all pertinent facts about the timeshare plan; and

(2) Provide reasonable regulation of the timeshare industry while
encouraging the growth and development of the industry in Oregon. [1983
c.530 §1]ORS 94.803, 94.806, 94.811 to 94.863 and 94.869
to 94.945 do not apply to:

(1) Any timeshare plan for which the developer has complied with
the requirements of ORS 92.305 to 92.495 or 100.005 to 100.910 before
July 28, 1983.

(2) Any timeshare plan for which the developer has complied with
all applicable local regulations and has submitted a completed filing
under ORS 92.305 to 92.495 or 100.005 to 100.910 before July 28, 1983.

(3) Any subsequent phase or stage of a timeshare plan described in
subsection (1) or (2) of this section that has complied with the
applicable requirements of ORS chapter 92 and this chapter in effect
prior to July 28, 1983. However, the developer of the phase or stage must
comply with the cancellation provisions of ORS 94.836 and 94.839.

(4) Subdivided land as defined by ORS 92.305, a planned community
as defined by ORS 94.550 and a condominium subject to ORS 100.005 to
100.910 that does not involve a timeshare plan.

(5) Subdivided land as defined by ORS 92.305, a planned community
as defined by ORS 94.550 and a condominium subject to ORS 100.005 to
100.910, that involves a timeshare plan to the extent of the nontimeshare
aspects of the development. The developer of such a development must
comply with the applicable requirements of ORS chapter 92 and this
chapter in addition to ORS 94.803, 94.806 and 94.811 to 94.945.

(6) Any transaction normal and customary in the hotel and motel
business involving the acceptance of advance reservations which are not
entered into for the purpose of evading the provisions of ORS 92.325,
94.570, 94.803 to 94.945, 100.005, 100.105, 100.200, 100.450 and 696.490.

(7) The offering, sale or transfer of a fractional interest or a
timeshare in a timeshare plan comprised of 12 timeshares or less unless
the Real Estate Commissioner determines that the developer is attempting
by a common scheme or course of development to evade the provisions of
ORS 92.325, 94.570, 94.803 to 94.945, 100.005, 100.105, 100.200, 100.450
and 696.490.

(8) The transfer of a timeshare by reason of a foreclosure action,
by deed in lieu of foreclosure, by gift or by devise, descent or
distribution or transfer to an inter vivos trust that is not made to
evade ORS 94.803 and 94.807 to 94.945.

(9) The offering, sale or transfer of a membership or interest in a
recreational vehicle park or campground that provides no right to use or
occupy a residential dwelling structure in the project overnight.

(10) The offering, sale or transfer of a membership or interest
entitling the purchaser to a timeshare in personal property, including
but not limited to an airplane, boat or recreational vehicle.

(11) The offering, sale or transfer of a membership or interest
entitling the purchaser to use real property and facilities without
overnight use for dwelling purposes, including but not limited to
commercial office, retail or similar space and golf, tennis or athletic
clubs. [1983 c.530 §3; 1985 c.565 §9; 1991 c.64 §2; 1993 c.744 §245; 1999
c.677 §28] (1) For the purposes of ad
valorem taxation, the managing entity responsible for managing the
timeshare plan shall be considered the taxpayer, as agent for the owners
of the timeshare property.

(2) All of the timeshare property within each timeshare plan shall
be listed on the assessment roll by code area and account number as a
single entry stating as one value the real market value and assessed
value of the land and improvements, except that recreational facilities
shall be separately valued and taxed to the owner thereof, as provided in
subsection (1) of this section.

(3) All rights and privileges afforded property owners by Oregon
law as to appealing assessments shall apply only to the managing entity,
as agent for the owners of the timeshare property.

(4) The managing entity, as agent of the timeshare owners, shall
remit the taxes assessed on the timeshare property. [1987 c.424 §2; 1991
c.459 §337] (1)
The real market value of timeshare property shall not include any nonreal
property components of timeshares, which nonreal property components
include, without limitation, tangible personal property, exchange rights,
club memberships, vacation convenience services such as hotel-type
services and the management structure of the timeshare plan, and that
portion of the legal, accounting, promotion and marketing costs in
developing and selling the timeshares allocable to the nonreal property
components. The real market value of timeshare property shall not be
based upon the aggregate sales prices of timeshares, if such sales prices
include nonreal property components.

(2) The real market value of timeshare property, other than the
recreational facilities, shall be determined by taking the value of each
individual living unit as if such living unit were owned by a single
taxpayer, without having been timeshared, and adjusting such value by an
amount necessary to reflect any increase or decrease in such value
attributable to the fact that such timeshare property is marketed in
increments of time. There shall be a rebuttable presumption that the
value of such timeshare property is increased by 20 percent of its value
under single ownership by virtue of being marketed in increments of time.
If the managing entity or assessor contends that the adjustment due to
such ability to market in increments of time is less than or greater than
an increase of 20 percent of the single ownership value, then the burden
of establishing such adjustment shall be upon the party so contending.
[1987 c.424 §3; 1991 c.459 §338](1) The unit owners in a condominium subject
to the Oregon Condominium Act and the owners in a planned community
subject to the Oregon Planned Community Act may amend the declaration for
the condominium or planned community to prohibit the creation of a
timeshare plan involving any portion of the property of the condominium
or planned community. Any amendment to a condominium declaration must
comply with ORS 100.135 and any amendment to a planned community
declaration must comply with ORS 94.590.

(2) The owners of land in a subdivision may amend the recorded
declaration, bylaws or other governing document for the subdivision to
prohibit the creation of a timeshare plan involving any portion of the
property within the subdivision. The amendment must be approved by not
less than 75 percent of the owners or by any larger percentage specified
for the amendment in the recorded declaration, bylaws or other governing
document for the subdivision. As used in this subsection, “subdivision”
means a subdivision as defined by ORS 92.010, that:

(a) Was approved and for which a plat was recorded under ORS 92.120
before July 28, 1983;

(b) At the time of the subdivision’s creation, would have met the
definition of a planned community under ORS 94.550; and

(c) Is not, because of the time of its creation, a planned
community subject to the Oregon Planned Community Act.

(3) The declaration for a condominium subject to the Oregon
Condominium Act and created after July 28, 1983, and the declaration for
a planned community, subject to the Oregon Planned Community Act and
created after July 28, 1983, may include a provision prohibiting the
creation of a timeshare plan involving any portion of the property of the
condominium or planned community. [1983 c.530 §4; 1999 c.677 §29](Creation of Timeshare Estates) (1) Except as expressly
modified by ORS 92.325, 92.425, 94.570, 94.803 to 94.945, 100.005,
100.105, 100.200, 100.450 and 696.490, a timeshare estate is an estate in
real property and has the character and incidents of an estate in fee
simple at common law or estate for years if a leasehold. A timeshare
license is an estate for years having the character and incidents of such
an estate at common law.

(2) A document transferring or encumbering a timeshare may not be
rejected for recordation because of the nature or duration of the
interest.

(3) Neither a timeshare plan nor a timeshare, subject to regulation
under ORS 94.803 and 94.807 to 94.945 is a “security,” as defined in ORS
59.015. [1983 c.530 §§4a,5; 1985 c.349 §29; 1987 c.603 §25] (1) Except as otherwise
provided in this section, no judicial action for partition of a timeshare
property may be undertaken as long as the property remains subject to a
timeshare plan.

(2) If any timeshare is owned by two or more persons as tenants in
common, as tenants by the entirety or as tenants with rights of
survivorship, nothing in this section shall prohibit the judicial sale of
the timeshare in lieu of partition as between the cotenants.

(3) A court of competent jurisdiction, on petition of the developer
of a timeshare plan or the developer’s successor in interest, may grant a
waiver of the prohibition against partition under subsection (1) of this
section, if the court is satisfied that:

(a) The developer retains at least 50 percent of the timeshares
created in the timeshare plan;

(b) The timeshare plan has failed and the continuation of the use
of timeshare property by timeshare owners is no longer possible in the
manner prescribed by the timeshare instruments;

(c) It is in the best interest of timeshare owners to terminate the
timeshare plan and that no reasonable alternative to partition of the
timeshare property exists;

(d) The petition has not been brought by the developer to avoid the
developer’s responsibilities under the timeshare instrument without good
cause; and

(e) The holder of each blanket encumbrance consents to the
proceeding under this section.

(4) Except as otherwise provided in subsection (5) of this section,
upon a court declaration of timeshare plan failure under subsection (3)
of this section, the court shall proceed to partition the timeshare
property as otherwise provided by law.

(5) In the event of a court-ordered sale in connection with
partition, proceeds of the sale shall be applied in the following order:

(a) Costs described in ORS 105.285 (1) and (2);

(b) Repayment to owners except the developer of down payments and
payments of principal and interest paid by such owners for their
timeshares less the value, as determined by the court, of the owners’ use
of their timeshares;

(c) Payments to satisfy and discharge the remaining timeshare
purchase money obligations of all owners except the developer. If the
developer or an entity closely related to the developer holds the
beneficial interest in any of such purchase money obligations, funds
shall first be applied to discharge the purchase money obligations held
by other holders, and then to the credit of the developer and its related
entity for purchase money obligations held by the developer or such
entity. Funds paid to the developer or the related entity’s credit shall
be held by the court as proceeds available to lienholders and other
claimants in such partition. If there are insufficient funds to fully
discharge purchase money obligations of all owners except the developer,
the balance of unsatisfied purchase money obligations of all owners
except the developer shall be discharged by judgment of the court; and

(d) As otherwise provided by law. [1983 c.530 §6; 2003 c.576 §356] (1) To
submit property located within this state to the provisions of ORS 94.803
and 94.807 to 94.945, the developer shall record a timeshare instrument
in the office of the recording officer of every county in which the
timeshare property is located. To submit property located outside this
state to the provisions of ORS 94.803 and 94.807 to 94.945, the developer
shall satisfy the requirements of ORS 94.885 for the recording of a
notice of timeshare plan. The timeshare instrument shall comply with ORS
94.821 and shall be executed in accordance with subsection (2) of this
section and acknowledged in the manner provided for acknowledgment of a
deed.

(2) If the developer is not the fee owner of the property, the fee
owner and the vendor under any contract of sale and the lessor under any
lease shall also execute the timeshare instrument for the purpose of
consenting to the property being submitted to the provisions of ORS
94.803 and 94.807 to 94.945.

(3) No timeshare instrument shall be recorded unless all taxes,
penalties, special assessments, fees and charges that would be required
to be paid for subdivisions or partitions under ORS 92.095 have been paid
in the same manner as provided in ORS 92.095. [1983 c.530 §7; 1993 c.19
§2] A timeshare instrument
shall include:

(1) A legal description of the timeshare property;

(2) The name or other identification of the project;

(3) Identification of timeshare periods by letter, name, number or
a combination of letters, names and numbers and a description of the
timeshare;

(4) Identification of the accommodations;

(5) The method for determining the owner’s liability for common
expenses and real property taxes;

(6) The method for notice and appeal of property tax values;

(7) If additional accommodations may become part of the timeshare
property or existing accommodations may be deleted from the timeshare
property, the method for adding them to or deleting them from the
property and the formula for allocation and reallocation of the
liabilities for common expenses and of voting rights;

(8) Any restrictions on the use, occupancy or alteration of a
timeshare accommodation and any specified procedure or method for
amending existing rules or adopting additional rules and regulations;

(9) Any restriction on the alienation of a timeshare;

(10) The ownership interest of the owner in personal property and
provisions for care and replacement of personal property;

(11) If the instrument creates timeshare licenses, the period the
accommodations affected are committed to timeshare licenses and
provisions for disposition of those accommodations at the end of the
period, if the period is not infinite;

(12) Any requirement for or restriction on amending the timeshare
instrument;

(13) The nature and duration of the owner’s rights in the timeshare
plan, the circumstances under which the timeshare plan could be
terminated and the procedure for terminating the timeshare plan;

(14) A description of the form of conveyance or other instrument
used by the developer to transfer a timeshare to a purchaser;

(15) The identity of any person that has the power to grant an
easement in the timeshare property or otherwise affect the title to the
timeshare property;

(16) How and by whom the timeshare plan will be managed, including
but not limited to provisions for selecting a replacement or successor
managing entity and provisions for continuity of management throughout
the duration of the timeshare plan;

(17) A description of the voting rights of a timeshare owner and
the developer and other participation rights, if any, of a timeshare
owner and the method for determining and allocating the voting rights; and

(18) Provisions for notifying a timeshare owner of any authorized
change in the owner’s voting or participation rights. [1983 c.530 §8;
1987 c.424 §4]A developer shall submit a notice to the Real Estate Commissioner
informing the commissioner of the developer’s intent to sell timeshares
in Oregon. The form and content of the notice shall be established by
rule by the commissioner, but shall include at least:

(1) The name and business and residence addresses of:

(a) The developer;

(b) The developer’s agent;

(c) The designated managing entity; and

(d) Any person selling the timeshare plan within Oregon.

(2) An explanation of the timeshare form of ownership to be offered
under the timeshare plan.

(3) A general description of the timeshare plan, including the
number of timeshares to be offered under the timeshare plan and the
number and description of the accommodations and facilities.

(4) A complete description, including a copy of all necessary
implementing documents, of the methods to be used by the developer to
comply with the requirements of ORS 92.325, 92.425, 94.570, 94.803 to
94.945, 100.005, 100.105, 100.200, 100.450 and 696.490.

(5) A title report for the real property underlying the timeshare
plan, acceptable to the commissioner and including a statement of any
lien, defect, judgment or other encumbrance affecting title to the
property.

(6) A copy of any judgment against the developer or managing
entity, the status of any pending suit that is material to the timeshare
plan to which the developer or managing entity is a party and the status
of any other suit that is material to the timeshare plan of which the
developer has actual knowledge.

(7) A description of any insurance coverage provided for the
benefit of a purchaser or a statement that no insurance coverage is
provided.

(8) The name and address of the accommodations and facilities and
the schedule for completing any improvements not complete at the time of
filing.

(9) The financial obligation of a purchaser, excluding the initial
purchase price and including:

(a) Additional charges and common expenses to which the purchaser
may be subject, whether or not in the form of an assessment; and

(b) An estimated operating budget and schedule of estimated common
expenses.

(10) A copy of the timeshare instrument or notice of timeshare plan
as required under ORS 94.818.

(11) A copy of any contract, lease or timeshare agreement to be
signed by the purchaser.

(12) A copy of the rules, limitations or conditions on the use of
accommodations or facilities available to purchasers.

(13) Any restriction on the transfer of any timeshare.

(14) If any portion of the timeshare property is located outside
the state, proof that the developer has recorded the notice of timeshare
plan as required under ORS 94.833 (1).

(15) Any other information the commissioner may determine is
necessary. [1983 c.530 §19; 2003 c.14 §37] (1) A seller
offering an exchange program to a purchaser in conjunction with a
timeshare plan shall provide written information to the purchaser about
the exchange program.

(2) The exchange program information to be provided to the
purchaser shall be established by rule by the Real Estate Commissioner
and shall include at least:

(a) The name and address of the exchange company;

(b) Whether or not the purchaser’s participation in the exchange
program is dependent upon the timeshare plan’s continued affiliation with
the exchange program;

(c) Whether or not the purchaser’s participation in the exchange
program is voluntary;

(d) A complete and accurate description of the terms and conditions
of the purchaser’s contractual relationship with the exchange program,
and the procedure for modifying the exchange program contract;

(e) The procedure to qualify for and effectuate an exchange;

(f) A description of any limitation, restriction or priority system
employed in the operation of the exchange program;

(g) The circumstances under which a purchaser may lose the use and
occupancy of the purchaser’s accommodation in any properly applied for
exchange through the exchange program;

(h) Any fee for participation in the exchange program; and

(i) Any other information material to the exchange program which,
by omission, tends to make the information otherwise disclosed misleading.

(3) The exchange program information shall be in addition to the
information found in the public report required under ORS 94.828 (1), (2)
and (4) and must be provided to the purchaser before a contract may be
executed between the purchaser and the company offering the exchange
program.

(4) An exchange company offering an exchange program to purchasers
in Oregon shall file the information required in subsection (2) of this
section annually with the commissioner.

(5) Only a timeshare owner and a developer other than a seller may
participate in an exchange program. [1983 c.530 §21] (1) After the Real Estate
Commissioner receives a completed notice under ORS 94.823 the
commissioner shall prepare a public report on the timeshare plan. In lieu
of preparing a report, the commissioner may accept a report prepared by
the developer and issue the report with any changes the commissioner
considers necessary.

(2) Whether or not the commissioner issues a public report on a
timeshare plan the developer shall report to the commissioner any
material change in the timeshare plan or in the marketing program for the
timeshare plan within 10 days after the change occurs.

(3) The commissioner may examine a timeshare plan subject to ORS
94.803 and 94.807 to 94.945 to be offered for sale and make a public
report of the findings. If a timeshare plan is located within this state
and no report is made within 45 days after the commissioner receives a
completed timeshare filing, the report shall be considered waived.

(4) As used in this section, “material change” includes, but is not
limited to:

(a) The addition or deletion of a timeshare accommodation or
facility.

(b) A change in the method of marketing or conveyancing the
timeshare plan.

(c) A change in the purchase money handling procedure previously
approved by the commissioner, including but not limited to:

(A) A change in the escrow depository; or

(B) A change in or creation of an encumbrance affecting more than
one timeshare.

(d) A change in the developer or, if the developer is an entity, a
change in the name, form of organization or status of the developer.

(e) A revision of the timeshare plan’s annual budget that will
require a regular annual assessment against the owners that is more than
25 percent greater than the regular annual assessment indicated in the
current public report for the timeshare plan.

(f) Any legal or physical condition rendering a timeshare
accommodation or facility unusable by an owner. [1983 c.530 §§20,39](1) No developer or agent of the
developer shall sell a timeshare in a timeshare plan before the issuance
of a public report for the timeshare plan, unless the public report has
been waived under ORS 94.828 (3).

(2) A copy of the public report, when issued, shall be given to the
prospective purchaser of a timeshare by the developer or agent of the
developer prior to the execution of a binding contract or agreement for
the sale of the timeshare. The developer or the developer’s agent shall
take a receipt from the prospective purchaser upon delivery of a copy of
the Real Estate Commissioner’s public report. Each such receipt shall be
kept on file by the developer within this state subject to inspection by
the commissioner or the commissioner’s authorized representative for a
period of three years from the date the receipt is taken.

(3) The commissioner’s public report shall not be used for
advertising purposes unless the report is used in its entirety. No
portion of the public report shall be underscored, italicized or printed
in larger or heavier type than the balance of the public report unless
the true copy of the report emphasizes the portion.

(4) The commissioner may furnish, at cost, copies of a public
report for the use of a developer.

(5) The requirements of this section extend to timeshares sold by
the developer after repossession.

(6) Remedies and sanctions available for violation of ORS 646.605
to 646.656 are available for violation of this section, in addition to
any other remedies or sanctions provided by law. [1985 c.76 §2](1) The notice required under ORS 94.823 shall be accompanied by
a filing fee as follows:

(a) For a timeshare plan developed in a single phase, $500 plus $10
for each timeshare but in no case shall the fee exceed $3,000.

(b) For a timeshare plan developed in two or more phases, $500 plus
$10 for each timeshare in the first phase, and $5 for each additional
timeshare developed in a subsequent phase of the same development, but in
no case shall the fee exceed $3,000 for each phase.

(2) For a material change notice submitted under ORS 94.828 (1),
(2) and (4), the Real Estate Commissioner may charge a fee not to exceed
$100 for each page of the public report that must be revised, but in no
case shall the fee for a material change exceed $500.

(3) When an examination is to be made of timeshare property located
in the State of Oregon, or timeshare property located outside Oregon that
will be offered for sale to persons within Oregon, the commissioner, in
addition to the filing fee provided in subsections (1) and (2) of this
section, may require the developer to advance payment of an amount
estimated by the commissioner to be the expense incurred in going to and
returning from the timeshare property, and an amount estimated to be
necessary to cover the additional expense of the examination not to
exceed $200 a day for each day consumed in the examination of the
timeshare property. The amounts estimated by the commissioner under this
subsection shall be based upon any applicable limits established and
regulated by the Oregon Department of Administrative Services under ORS
292.220.

(4) The moneys received under subsections (1) to (3) of this
section shall be paid into the State Treasury and placed in the General
Fund to the credit of the Real Estate Account established under ORS
696.490. [1983 c.530 §§22,23,24] (1) Before
negotiating within this state for the sale of a timeshare in a timeshare
plan composed wholly or partially of timeshare property located outside
this state, the developer of the timeshare plan must:

(a) Comply with ORS 94.803 and 94.807 to 94.945; and

(b) Record, in the real property records of each county or other
appropriate jurisdiction of each state in which the timeshare property is
located for use of a timeshare owner, the notice of timeshare plan, as
defined in ORS 94.885 for the timeshare plan. This recording requirement
does not apply to timeshare property located in foreign countries.

(2) Before the sale of a timeshare in a timeshare plan composed
wholly of timeshare property located within this state, the developer of
the timeshare plan must comply with the applicable provisions of ORS
94.803 and 94.807 to 94.945. [1983 c.530 §18](Purchaser’s Rights) (1) A purchaser
from a developer may cancel, for any reason, any contract, agreement or
other evidence of indebtedness associated with the sale of the timeshare
within five calendar days from the date the purchaser signs the first
written offer or contract to purchase.

(2) Cancellation, under subsection (1) of this section, occurs when
the purchaser gives written notice to the developer at the developer’s
address. The cancellation period in subsection (1) of this section does
not begin until the developer provides the purchaser with developer’s
address for cancellation purposes.

(3) A notice of cancellation given by a purchaser need not take a
particular form and is sufficient if it indicates in writing the
purchaser’s intent not to be bound by the contract or evidence of
indebtedness.

(4) Notice of cancellation, if given by mail, shall be given by
certified mail, return receipt requested, and is effective on the date
that the notice is deposited with the United States Postal Service,
properly addressed and postage prepaid.

(5) Upon receipt of a timely notice of cancellation, the developer
shall immediately return any payment received from the purchaser. If the
payment was made by check, the developer shall not be required to return
the payment to the purchaser until the check is finally paid as provided
in ORS 74.2130. Upon return of all payments the purchaser shall
immediately transfer any rights the purchaser may have acquired in the
timeshare to the developer, not subject to any encumbrance created or
suffered by the purchaser. In the case of cancellation by a purchaser of
any evidence of indebtedness, the purchaser shall return the purchaser’s
copy of the executed evidence of indebtedness to the developer, and the
developer shall cancel the evidence of indebtedness. Any encumbrance
against the purchaser’s interest in the timeshare arising by operation of
law from an obligation of the purchaser existing before transfer of the
interest to the purchaser shall be extinguished by the reconveyance.

(6) No act of a purchaser shall be effective to waive the right of
cancellation granted by subsection (1) of this section. After the
expiration of the five-day cancellation period, a developer may require a
purchaser to execute and deliver to the developer a signed statement
disclaiming any notice of cancellation timely and properly made by the
purchaser before the five-day cancellation period expired under
subsection (1) of this section, that has not been received by the
developer. A disclaimer statement executed by the purchaser shall rescind
the notice of cancellation. [1983 c.530 §26] (1) The first written
agreement for the sale of a timeshare to a purchaser signed by the
purchaser shall contain, either upon the first page of the agreement or
on a separate sheet attached to the first page, the following notice in
at least 8-point type:

___________________________________________________________________________
___

                                          NOTICE TO PURCHASER

BY SIGNING THIS AGREEMENT YOU ARE INCURRING A CONTRACTUAL
OBLIGATION TO PURCHASE A TIMESHARE. HOWEVER, YOU HAVE FIVE CALENDAR DAYS
AFTER SIGNING THIS AGREEMENT TO CANCEL THE AGREEMENT BY WRITTEN NOTICE TO
THE DEVELOPER OR THE DEVELOPER’S AGENT AT THE FOLLOWING ADDRESS:

___________________________________________________________________________
___

___________________________________________________________________________
___

___________________________________________________________________________
___

___________________________________________________________________________
___

___________________________________________________________________________
___

BEFORE EXECUTING THIS AGREEMENT, OR BEFORE THE FIVE-DAY
CANCELLATION PERIOD ENDS, YOU SHOULD CAREFULLY EXAMINE THE PUBLIC REPORT
ON THE TIMESHARE PLAN AND ANY ACCOMPANYING INFORMATION DELIVERED BY THE
DEVELOPER.
___________________________________________________________________________
___

(2) A copy of the notice set forth in subsection (1) of this
section shall be given to each purchaser under an agreement described in
subsection (1) of this section at the time or immediately after the
purchaser signs the agreement. [1983 c.530 §27] Any condition, stipulation or
provision in a sales agreement, lease or other legal document, that binds
a purchaser to waive legal rights granted to the purchaser under ORS
94.803 and 94.807 to 94.945 against the developer shall be considered to
be contrary to public policy and void. [1983 c.530 §28] (1) A developer may
not transfer the developer’s interest in accommodations or facilities of
a timeshare plan unless the transferee, as to each owner whose interest
is involved in the transfer, agrees to:

(a) Honor the right of each owner to occupy and use the
accommodations and facilities;

(b) Honor the right of a purchaser to cancel a contract and receive
an appropriate refund, as provided in ORS 94.836;

(c) Comply with ORS 94.803 and 94.807 to 94.945 as long as the
transferee continues to sell the timeshare plan, or as long as the owner
is entitled to occupy the accommodations or use the facilities; and

(d) Assume all of the developer’s obligations to the owners under
the timeshare instrument.

(2) Within 30 days after the transfer of the developer’s interest,
notice of the transfer shall be mailed to each owner.

(3) A person holding a blanket encumbrance on the property
constituting timeshare property is not a transferee for purposes of this
section, if the person has executed and recorded a nondisturbance
agreement in accordance with ORS 94.885. [1983 c.530 §17](Association of Owners; Management)
(1) Before the closing of the first timeshare sale the developer shall
designate a managing entity, which may be the developer, the owners’
association, a trust, a management firm or an individual.

(2) The managing entity shall act as a fiduciary to each timeshare
owner.

(3) The managing entity shall be responsible for:

(a) Managing and maintaining all accommodations and facilities of
the timeshare plan.

(b) Collecting any assessment for common expenses.

(c) Providing each owner with an itemized annual budget including
all receipts and expenditures.

(d) Maintaining all books and records concerning the timeshare plan
on the timeshare property and making the books and records available for
inspection by an owner.

(e) Making the books and records of the timeshare plan available
for inspection by the Real Estate Agency.

(f) Scheduling occupancy of accommodations if each owner does not
acquire a specific timeshare period so that each owner receives the use
of the timeshare plan’s accommodations and facilities to which the owner
is entitled.

(g) Performing all other duties necessary to maintain the
accommodations or facilities as provided in any management contract or
other agreement.

(h) Acting as agent for the owners for purposes of real property
taxation, including collection and payment of real property taxes.

(i) Hiring and supervising an employee or agent to perform a
function described in paragraphs (a) to (h) of this subsection.

(4) After giving the managing entity reasonable notice, a timeshare
owner may require the managing entity to provide the names and addresses
of all other timeshare owners in the timeshare plan. The managing entity
may require the payment of a reasonable fee for reproduction costs.

(5) Unless expressly prohibited by the timeshare instrument, the
managing entity shall have the authority to execute, acknowledge, deliver
and record on behalf of the timeshare owners, an easement, right of way,
license and any other similar interest affecting the timeshare property
if the interest is beneficial and not materially detrimental to the
timeshare plan.

(6) The instrument granting an interest under subsection (5) of
this section shall be executed by the managing entity and acknowledged in
the manner provided for acknowledgment of deeds under ORS 93.410.

(7) For the purpose of transferring or otherwise disposing of all
or any portion of the accommodations and facilities in the timeshare plan
upon termination of the plan, the managing entity shall be the
attorney-in-fact for each owner. Any transfer or disposition will be
effective if the managing entity executes and acknowledges the written
transfer instrument. [1983 c.530 §9; 1987 c.424 §5; 2003 c.14 §38] A timeshare
instrument that provides for the developer or an agent selected by the
developer to manage the timeshare property until an owners’ association,
a trust or the owners assume the role of managing entity shall include
provisions for:

(1) Termination of developer management or developer selected
management by the association, trust or owners;

(2) Termination of contracts for goods and services for the
timeshare property entered into during the period the developer served as
the managing entity;

(3) A regular accounting at least annually by the developer to the
association, trust or owners as to all matters affecting the timeshare
property; and

(4) Immediate termination of the developer as managing entity by
the association, trust or owners and assumption of management functions
by an association or trust in the case of abandonment or substantial
breakdown of management services for the timeshare plan. [1983 c.530 §10] (1) Until the closing of the
first timeshare sale the developer shall pay all common expenses.

(2) After the closing of the first timeshare sale, the managing
entity shall charge an annual assessment for the payment of common
expenses based on the projected annual budget. The assessment shall be
against:

(a) Each owner in the proportion specified in the timeshare
instrument and the developer for the share allocated to all timeshare
periods still owned by the developer at the time the assessment is made;

(b) As provided in paragraph (a) of this subsection, except that
the developer shall also pay that portion of the total assessment not
paid by any owner, if the developer guarantees payment of all common
expenses of the timeshare plan under the provisions of the timeshare
instrument; or

(c) The developer for the total assessment if the developer agrees
to pay all common expenses of the timeshare plan under the provisions of
the timeshare instrument.

(3) Unless otherwise specified in the timeshare instrument, past
due assessments shall bear interest at the legal rate. [1983 c.530 §11;
2003 c.14 §39](1) Whenever a managing entity
levies an assessment for common expenses against a timeshare estate, the
managing entity, upon complying with subsection (2) of this section,
shall have a lien upon the timeshare estate for the reasonable value of
the expenses, for any unpaid assessment and interest as provided in
subsection (2)(b) of this section and for any late charges, fines and
costs of collection, including but not limited to attorney fees and court
costs. The lien shall be prior to any other lien or encumbrance upon the
timeshare estate except:

(a) Blanket encumbrances of record;

(b) Tax and assessment liens; and

(c) A purchase money mortgage of record, a purchase money trust
deed of record or a purchase agreement of record.

(2)(a) A managing entity claiming a lien under subsection (1) of
this section shall record in the county in which the timeshare estate or
some part thereof is located a claim containing:

(A) A true statement of the account due for common expenses after
deducting all just credits and offsets;

(B) The name of the owner of the timeshare estate, or reputed
owner, if known; and

(C) The designation of the timeshare estate, sufficient for
identification.

(b) If a claim is filed and recorded under this section and the
owner of the timeshare estate subject to the claim thereafter fails to
pay any assessment chargeable to the timeshare estate, then so long as
the original or any subsequent unpaid assessment remains unpaid the claim
shall automatically accumulate the subsequent unpaid assessment and
interest thereon without the necessity of further filings under this
section.

(3) The claim shall be verified by the oath of a person having
knowledge of the facts and shall be filed with and recorded by the
recording officer in the book kept for the purpose of recording liens
filed under ORS 87.035. The record shall be indexed in the same manner
that a deed or other conveyance is required by ORS 93.630 to be indexed.

(4) The proceeding to foreclose a lien created by this section
shall conform as nearly as possible to the proceeding to foreclose a lien
created by ORS 87.010, except that notwithstanding ORS 87.055, a lien may
be continued in force for a period of time not to exceed six years from
the date the claim is filed under subsection (3) of this section. For the
purpose of determining the date the claim is filed in those cases where
subsequent unpaid assessments have accumulated under the claim as
provided in subsection (2)(b) of this section, the claim regarding each
unpaid assessment shall be considered to have been filed at the time the
unpaid assessment became due. The lien may be enforced by the managing
entity. An action to recover a money judgment for unpaid common expenses
may be maintained without foreclosing or waiving the lien securing the
claim for common expenses.

(5) Unless the timeshare instrument provides otherwise, a fee, late
charge, fine and interest imposed under ORS 94.858 (4)(i) is enforceable
as an assessment under this section.

(6) In addition to seeking a money judgment for the unpaid
assessment if the timeshare plan conveys only a timeshare license, the
managing entity may bring an action for breach of contract.

(7) A construction lien under ORS 87.001 to 87.093 for labor
performed or materials furnished to timeshare property, if properly
incurred by the association or managing entity for the benefit of all
timeshare owners with interests in the timeshare property shall, if
effective, attach to each timeshare with interests in the timeshare
property. The owner of a timeshare subject to the lien shall have the
right to have the timeshare released from the lien by payment of the
amount of the lien attributable to the timeshare. The amount of the lien
attributable to the timeshare and the payment required to satisfy the
lien, in the absence of agreement, shall be determined by application of
the allocation of common expenses established in the timeshare instrument.

(8) Except as provided in subsection (7) of this section, a
construction lien under ORS 87.001 to 87.093 for labor performed or
materials furnished to a unit shall not be filed against the timeshare of
any timeshare owner who did not expressly consent to or request the labor
or materials. Consent shall be considered given under this subsection by
the owner of a timeshare in the case of emergency repairs to the
timeshare property done with the consent or at the request of the
managing entity. [1983 c.530 §12] (1) The timeshare
instrument may provide that an association of timeshare owners be
organized to serve as a means through which the timeshare owners may take
action with regard to the administration, management and operation of the
timeshare plan and the timeshare property. The association shall be
organized as a corporation for profit or nonprofit corporation. The name
of the association shall include the complete name of the timeshare plan.

(2) Membership in the association shall be limited to timeshare
owners.

(3) The affairs of the association shall be governed by a board of
directors or other governing body as provided for in the bylaws adopted
under the applicable incorporation requirements.

(4) Subject to the provisions of the timeshare instrument and
bylaws, the association may:

(a) Assume the role of managing entity;

(b) Adopt and amend bylaws, rules and regulations;

(c) Adopt and amend budgets for revenues, expenditures and reserves
and levy and collect assessments for common expenses from timeshare
owners;

(d) Hire and terminate a managing agent, other employees, agents
and independent contractors;

(e) Institute, defend or intervene in litigation or an
administrative proceeding in the association’s own name on behalf of the
association or on behalf of two or more timeshare owners on any matter
affecting the timeshare property;

(f) Make contracts and incur liabilities;

(g) Regulate the use, maintenance, repair, replacement and
modification of timeshare property;

(h) Acquire by purchase, lease, devise, gift or voluntary grant
real property or any interest therein and take, hold, possess and dispose
of real property or any interest therein;

(i) Impose a charge for the late payment of an assessment and,
after giving notice and an opportunity to be heard, levy a reasonable
fine for violation of the timeshare instrument, bylaws and rules and
regulations of the association;

(j) Provide for the indemnification of the association’s officers
and governing board and maintain adequate liability insurance for the
association’s officers and governing board;

(k) Exercise any other power conferred by a timeshare instrument or
bylaws; and

(L) Exercise any other power determined by the association to be
necessary and proper for the governance and operation of the association.

(5) If an association of timeshare owners is formed under this
section, the public report issued for the timeshare plan under ORS 94.828
(1), (2) and (4) shall include a disclosure of the powers of the
association and the manner in which the association will be governed.
[1983 c.530 §13] The developer shall
deliver to the designated managing entity before the closing of the first
timeshare sale, the following:

(1) The original or a photocopy of the recorded timeshare
instrument for the timeshare plan and any supplements and amendments
thereto.

(2) A copy of any other document creating the managing entity.

(3) Any rules and regulations that have been promulgated.

(4) A report of the present financial condition of the timeshare
plan. The report shall consist of a balance sheet and an income and
expense statement for the preceding 12-month period or the period
following the recording of the timeshare instrument whichever period is
less.

(5) All funds of the timeshare plan, or control thereof, including,
but not limited to, any bank signature card.

(6) All tangible personal property that is the property of the
timeshare plan and an inventory of such property.

(7) A copy of the following, if available:

(a) The as-built architectural, structural, engineering,
mechanical, electrical and plumbing plans.

(b) The original specifications indicating all material changes.

(c) The plans for any underground site service, site grading,
drainage and landscaping.

(d) Any other plans and information relevant to future repair or
maintenance of the timeshare property.

(8) Insurance policies.

(9) A roster of timeshare owners and their addresses and telephone
numbers, if known, as shown on the developer’s records.

(10) Leases of the timeshare facilities and accommodations and any
other leases to which the managing entity is a party.

(11) Any employment or service contract to which the managing
entity is a party and any service contract under which the managing
entity has an obligation or responsibility, directly or indirectly, to
pay some or all of the fee or charge of the person performing the service.

(12) Any other contract to which the managing entity is a party.
[1983 c.530 §14] (1) A court
of competent jurisdiction, upon petition by timeshare owners constituting
at least 10 percent of the total number of timeshare owners in a
timeshare plan, may declare a failure in the management of the timeshare
plan and timeshare property and appoint a trustee to assume the duties of
a managing entity for the timeshare plan, if the court finds that:

(a) The management of the timeshare plan and timeshare property has
failed to carry out the duties of a managing entity under the timeshare
instrument and ORS 94.846 to 94.858;

(b) The rights of the timeshare owners under the timeshare
instrument will be substantially impaired if a trustee is not appointed;
and

(c) No reasonable alternative exists to appointment of a trustee to
perform the functions of a managing entity.

(2) The court may attach such conditions and terms to its
appointment of a trustee under subsection (1) of this section as the
court considers necessary to protect the rights of timeshare owners under
the timeshare instrument.

(3) The trustee shall send a copy of the court’s decision to the
Real Estate Commissioner. [1983 c.530 §15; 1991 c.64 §3] (1) If the managing entity has the sole
authority to decide whether to repair or reconstruct an accommodation or
facility that has suffered damage or that an accommodation or facility
must be repaired or reconstructed, the managing entity shall obtain and
maintain at all times and shall pay for out of the funds for payment of
common expenses, insurance covering the accommodations and facilities
which may include reasonable deductible amounts reflecting self-insurance
by the owners as a common expense and which shall include:

(a) Insurance for all insurable improvements in the timeshare
property against loss or damage by fire or other hazards, including
extended coverage, vandalism and malicious mischief. The insurance shall
cover the full replacement costs of any repair or reconstruction in the
event of damage or destruction from any such hazard if the insurance is
available at reasonable cost; and

(b) Insurance covering the legal liability of the association, the
timeshare owners individually and the managing entity including, but not
limited to, the board of directors, to the public and to the timeshare
owners and their invitees or tenants, incident to ownership, supervision,
control or use of the property. There may be excluded from the policy
required under this paragraph, coverage of a timeshare owner, other than
coverage as a member of an association or board of directors, for
liability arising out of acts or omissions of that owner and liability
incident to the ownership or use of the part of the property as to which
that owner has the exclusive use or occupancy. Liability insurance
required under this paragraph shall be issued on a comprehensive
liability basis.

(2) If an individual timeshare owner is required to obtain
insurance for the owner’s individual legal liability, the association or
managing entity shall obtain insurance covering the accommodations and
facilities which may include reasonable deductible amounts reflecting
self-insurance by the owners as a common expense and which shall include:

(a) Insurance for all insurable improvements in the timeshare
property against loss or damage by fire or other hazards, including
extended coverage, vandalism and malicious mischief. The insurance shall
cover the full replacement costs of any repair or reconstruction in the
event of damage or destruction from any such hazard if the insurance is
available at reasonable cost; and

(b) Insurance covering the legal liability of the association and
the managing entity including, but not limited to, the board of
directors, to the public or the timeshare owners and their invitees or
tenants, incident to supervision, control or use of the property. [1983
c.530 §16](Escrow)(1) Unless a lien payment trust is established under ORS
94.890, no timeshare estate shall be sold by a developer by means of a
purchase money agreement as defined in ORS 94.890 unless a collection
escrow is established within this state with a person or firm authorized
to receive escrows under the laws of this state and all of the following
are deposited in the escrow:

(a) A copy of the title report or abstract, as it relates to the
timeshare estate being sold.

(b) The original or an executed copy of the sales document relating
to the purchase of the timeshare estate clearly setting forth the legal
description of the interest being purchased, the principal amount of any
blanket encumbrance outstanding on the date of the sales document and the
terms of the sales document.

(c) A commitment in a form satisfactory to the Real Estate
Commissioner to give a partial release for the interest being sold from
the terms and provisions of any blanket encumbrance on or before full
payment of the purchase price by the purchaser.

(d) A commitment in a form satisfactory to the commissioner to give
a release of any other lien or encumbrance existing against the timeshare
estate being sold.

(e) A warranty or bargain and sale deed in good and sufficient form
conveying to the purchaser merchantable and marketable title to the
timeshare estate.

(2) The developer shall submit written authorization allowing the
commissioner to inspect any escrow deposit established under subsection
(1) of this section.

(3) In lieu of the procedures provided in subsection (1) of this
section, the developer shall conform to an alternative requirement or
method if the commissioner finds that the alternative requirement or
method carries out the intent and provisions of this section. [1983 c.530
§25] (1) All funds, negotiable
instruments, purchase money agreements and credit card authorizations and
proceeds thereof received in this state by a developer from or on behalf
of a purchaser or prospective purchaser in connection with the purchase
or reservation of a timeshare must be placed in an escrow account with an
escrow agent authorized under ORS 94.881 or the trustee of a lien payment
trust established under ORS 94.890.

(2) The establishment of an escrow account under subsection (1) of
this section shall be by written agreement between the developer and the
escrow agent. The escrow agreement must provide for the handling of a
purchaser’s funds, negotiable instruments, purchase money agreements and
credit card authorizations and proceeds as required by ORS 94.873 to
94.905.

(3) A purchaser’s funds, negotiable instruments, purchase money
agreements, credit card authorizations and any proceeds may be released
from escrow without a closing only as follows:

(a) If the purchaser gives a valid notice of cancellation under ORS
94.836, to the purchaser within 15 days after the notice of cancellation
is received.

(b) If the purchaser or developer properly terminates a sales
agreement under its terms or terminates a reservation agreement, to the
purchaser or developer according to the terms of the sales agreement or
reservation agreement.

(c) If the purchaser or developer defaults in performing an
obligation under the sales agreement, to the purchaser or developer
according to the terms of the sales agreement.

(4) After an escrow closing for the sale of a timeshare, a
purchaser’s funds, negotiable instruments, purchase money agreements and
credit card authorizations and proceeds shall be delivered by the escrow
agent:

(a) To the trustee of a lien payment trust established under ORS
94.890 to protect the purchaser from any blanket encumbrance.

(b) As provided by an alternative arrangement approved by the Real
Estate Commissioner under ORS 94.900.

(c) To the seller if the timeshare is conveyed to the purchaser
free and clear of any blanket encumbrance or as provided in ORS 94.876.

(5) Under no circumstances may the escrow agent release a
purchaser’s funds, negotiable instruments, purchase money agreements or
credit card authorizations or proceeds from the escrow account to anyone
except the purchaser until:

(a) The five-day cancellation period under ORS 94.836 expires as to
the purchaser whose funds, instruments, agreements, authorizations or
proceeds are being released;

(b) The escrow agent receives a written statement from the
developer that no valid cancellation notice under ORS 94.836 has been
received from the purchaser involved or from the purchaser that the
purchaser has not given such a notice; and

(c) The escrow agent receives a written statement from the
developer that no other cancellation notice was received during the
five-day cancellation period from the purchaser involved.

(6) The purpose of any escrow established under this section shall
be to protect a purchaser’s right to a refund if the purchaser cancels
the timeshare sales agreement during the five-day cancellation period
under ORS 94.836, or if a prospective purchaser cancels a reservation
agreement for the purchase of a timeshare.

(7) As used in this section “reservation agreement” means an
agreement relating to the future sale of a timeshare that is not binding
on the purchaser which grants the purchaser the right to cancel the
agreement for any reason without penalty and to obtain a refund of any
funds deposited at any time until the purchaser executes a timeshare
sales agreement. [1983 c.530 §29] (1) Subject to the
requirements of ORS 94.871 and 94.873, an escrow for the sale of a
timeshare estate may close only if one of the following alternatives for
protecting the purchaser is satisfied:

(a) The timeshare estate is conveyed to the purchaser free and
clear of any blanket encumbrance;

(b) The timeshare property in which the timeshare estate is granted
is conveyed to a trustee under a lien payment trust established under ORS
94.890 and every person holding an interest in a blanket encumbrance
against the timeshare property executes and records a nondisturbance
agreement;

(c) The timeshare estate is conveyed to the purchaser subject only
to a blanket encumbrance in which every person holding an interest in the
blanket encumbrance executes and records a nondisturbance agreement or
the Real Estate Commissioner accepts a surety bond as an alternative
arrangement under ORS 94.900 in an amount that is sufficient to satisfy
the blanket encumbrance; or

(d) All requirements of an alternative arrangement approved by the
commissioner under ORS 94.900 are satisfied.

(2) Subject to the requirements of ORS 94.873, an escrow for the
sale of a timeshare license may close only if one of the following
alternatives for protecting the purchaser is satisfied:

(a) The timeshare property is conveyed to a trustee free and clear
of any blanket encumbrance;

(b) The timeshare property is conveyed to a trustee under a lien
payment trust established under ORS 94.890 and every person holding an
interest in a blanket encumbrance against the timeshare property executes
and records a nondisturbance agreement;

(c) Every person holding an interest in a blanket encumbrance
against the timeshare property executes and records a nondisturbance
agreement and the commissioner accepts a recorded surety bond in an
amount that is sufficient to satisfy the blanket encumbrance; or

(d) The requirements of an alternative arrangement approved by the
commissioner under ORS 94.900 are satisfied. [1983 c.530 §30] An escrow agent holding funds under
ORS 94.873:

(1) May invest the escrowed funds in securities of the federal
government or any agency thereof or in savings or time deposits in
institutions insured by an agency of the federal government according to
the terms of the agreement between the escrow agent and the developer.

(2) Shall maintain separate books and records for each timeshare
plan in accordance with generally accepted accounting methods. [1983
c.530 §36] (1) Funds placed into escrow
under ORS 94.873 shall be placed into an escrow account established
solely for that purpose with one of the following acting as an escrow
agent:

(a) An attorney who is a member of the Oregon State Bar;

(b) An insured institution, as defined in ORS 706.008, that is
authorized to accept deposits in this state;

(c) A trust company, as defined in ORS 706.008, that is authorized
to transact trust business in this state; or

(d) An escrow agent licensed under ORS 696.505 to 696.590.

(2) In connection with sales of timeshares made outside of this
state for the use of timeshare property located within this state, the
escrow agent required under ORS 94.871 and 94.873 may be located in and
the purchasers’ funds, negotiable instruments, purchase money contracts
and credit card authorizations may be held by the out-of-state escrow
agent, if the law of the state in which the sales are made requires
impoundment in that state and the out-of-state escrow agent is approved
by the Real Estate Commissioner. [1983 c.530 §37; 1997 c.631 §393](Lien Payment) (1) When a nondisturbance agreement
has been executed by the lienholder and recorded, the lienholder, its
successors and anyone who acquires the property through foreclosure, by
deed, assignment or transfer in lieu of foreclosure, shall take the
property subject to the rights of the owners under the timeshare plan.

(2) When a notice of timeshare plan is recorded, any claim by the
developer’s creditors and any claim upon or by a successor to the
interest of the titleholder who executed the notice shall be subordinate
to the interest of the timeshare owners if the sale is closed after the
notice is recorded. The recording of notice shall not affect:

(a) The rights or lien of a lienholder whose lien was recorded
before the notice of timeshare plan;

(b) The rights of a person holding an option in the timeshare
property if the option was recorded before the notice of timeshare plan;
and

(c) The rights or lien of a lienholder having a recorded purchase
money mortgage, recorded purchase money trust deed or recorded purchase
agreement on the timeshare.

(3) As used in ORS 94.873, 94.876 and 94.885 to 94.905:

(a) “Nondisturbance agreement” means an instrument by which the
holder of a blanket encumbrance agrees that the holder’s rights in the
timeshare property shall be subordinate to the rights of any timeshare
owner. Every nondisturbance agreement shall contain a covenant by the
lienholder that the lienholder, its successors, and anyone who acquires
the timeshare property through the blanket lien shall not use, or cause
or permit the property to be used in a manner that prevents a timeshare
owner from using the timeshare property in the manner contemplated by the
timeshare plan. The lienholder’s agreement not to disturb an owner may
require as a continuing condition that the owner perform all obligations
and make all payments due under any purchase money agreement for the
owner’s timeshare and, if the timeshare is held as a leasehold, under the
lease for the owner’s timeshare.

(b) “Notice of timeshare plan” means an instrument executed by the
holder of the legal and equitable title to the fee or long-term leasehold
interest in a timeshare property which provides notice of the existence
of the timeshare plan and of the rights of timeshare owners. The notice
of timeshare plan must identify the timeshare period for each timeshare.
For a timeshare property located wholly within this state, recording of
the timeshare instrument for the property under ORS 94.818 shall be
considered the recording of a notice of timeshare plan for the property.
If the timeshare property is located outside the state, the notice may be
contained in a declaration of covenants, conditions and restrictions that
provides that as a matter of covenant, the notice shall have the effects
described in subsection (2) of this section. The notice must be prepared
to constitute a covenant running with an equitable servitude upon the
timeshare property for the duration of the timeshare plan and to have the
effects described in subsection (2) of this section.

(4) If the developer proposes use of a nondisturbance agreement,
the public report issued for the timeshare plan under ORS 94.828 (1), (2)
and (4) shall include disclosure of the nature and limitations of
nondisturbance agreements, the nature and amount of outstanding blanket
encumbrances and the potential impact upon timeshare purchasers of
failure to pay off the outstanding blanket encumbrances. [1983 c.530 §31] (1) A lien
payment trust may be established with a trust company as defined in ORS
706.008 that is authorized to transact trust business in this state, for
the conveyance of timeshare property to the trustee under ORS 94.876 if
the trust instrument provides for at least the following:

(a) Title to the timeshare property must be transferred to the
trustee before the purchaser’s funds, negotiable instruments, purchase
money agreements or credit card authorizations or proceeds are disbursed
by the escrow agent.

(b) The trustee shall not convey or transfer all or any portion of
the timeshare property except for an accommodation in which no owner has
any further right of occupancy or as permitted at termination of the
trust.

(c) The trustee shall not encumber the timeshare property without
the consent of the Real Estate Commissioner.

(d) The association, if any, and all timeshare owners are made
third party beneficiaries of the trust.

(e) Notice of the trustee’s intention to resign must be given to
the commissioner at least 90 days before the resignation takes effect.

(f) The trust instrument may not be amended to adversely affect the
interests or rights of a timeshare owner without the written approval of
the association or, if no association, a majority of the timeshare owners.

(g) Require the deposit into trust of a lien payment deposit, as
required by subsection (3) of this section, before the closing of the
first timeshare sale.

(h) Require the deposit into trust before closing the first
timeshare sale, and the intention to maintain for the duration of the
trust, an installment payment reserve consisting of funds in an amount
sufficient at all times:

(A) To pay the total of three successive monthly installments of
debt service on each blanket encumbrance or, if installments of debt
services are not payable monthly or in equal installments, such funds as
the commissioner determines reasonably necessary to assure that the
trustee will have sufficient cash to make any payment under the blanket
encumbrances when due; and

(B) To create a sinking fund to extinguish the debt at its maturity
if the blanket encumbrance against the trust property is an interest only
loan, contains a balloon payment provision or is otherwise not fully
amortized under the terms for repayment.

(i) Authorize the trustee to sell, transfer, hypothecate, encumber,
or otherwise dispose of the purchase money agreement or any other asset
composing the lien payment deposit or any portion thereof if, in the
trustee’s judgment, such action is necessary to enable the trustee to
make all payments required under the blanket encumbrances to prevent
foreclosure of the blanket encumbrance.

(j) Require the developer to replenish the funds and assets in the
trust whenever the lien payment deposit or the funds in the installment
payment reserve fail to meet the requirements set forth in this
subsection.

(k) Provide that the trustee periodically shall disburse funds in
the trust as follows: First, to pay real property taxes, governmental
assessments, and lease rent, if any; second, to pay current payments due
on the blanket encumbrances, in their order of priority; third, to any
sinking fund established for the payment of blanket encumbrances,
including any prepayment penalties and release prices; fourth, to pay any
service charge and cost payable to the trustee and its collection agent,
if any, under the trust instrument; and fifth, to the developer or as
directed by the developer.

(L) Contain any other provisions required by the commissioner under
rules adopted under ORS 94.915 (2) and (3).

(2) Every purchase money agreement delivered to the trustee of a
lien payment trust must contain a notice to the holder that the trustee
may make demand of the holder to deliver to the trustee all payments made
by the owner after the trustee mails notice that the funds and other
assets in the trust are inadequate to meet the lien payment deposit
requirements. Following such demand, the holder must immediately deliver
all subsequent payments of the owner to the trustee and continue to
deliver the payments until the lien payment deposit is replenished.

(3)(a) The lien payment deposit shall consist of either
nondelinquent purchase money agreements from timeshare owners in the
timeshare plan or other assets deposited into the trust by the developer
and approved by the commissioner. The purchase money agreements must have
an aggregate remaining principal balance of not less than, and any other
assets deposited must have a liquidated value of not less than, 110
percent of the difference between the aggregate remaining balance owing
under blanket encumbrances against the timeshare property, including any
prepayment penalties, release prices or similar charges, and the amount
of money or its equivalent in the trust and available at any time to be
applied to the reduction of the principal balance of the blanket
encumbrance. The developer shall have the burden of establishing the
liquidated value of assets other than purchase money agreements from
timeshare owners in the timeshare plan.

(b) If the blanket encumbrance payment deposit consists of purchase
money agreements, the payments required to be made by owners under the
agreements shall:

(A) Be due on or before the date payments become due on the blanket
encumbrances;

(B) If paid when due as provided in subsection (4) of this section,
be equal to at least 110 percent of the amount required to be paid on the
blanket encumbrances on such date; and

(C) Be sufficient to pay, in full, during the term of the purchase
money agreements all amounts secured by the blanket encumbrances,
including prepayment penalties and release prices, if any, and all
service charges payable to the trustee, any collection agent, and any
other servicing agent under the trust agreement.

(c) If the developer proposes to deposit into trust assets other
than purchase money agreements, the assets must be sufficient to pay debt
service installments on the blanket encumbrance as they become due and to
create a sinking fund or other arrangement adequate to extinguish the
debt secured by the blanket encumbrance at its maturity.

(4) For the purposes of this section, “purchase money agreement”
means and includes a purchase money mortgage, a purchase money trust deed
and a purchase contract.

(5) For the purpose of this section, a purchase money agreement is
considered delinquent when an installment payment is more than 59 days
past due. [1983 c.530 §32; 1997 c.631 §394] (1)
Except as provided in subsection (2) of this section:

(a) If a trust is established for timeshare property subject to
timeshare licenses, the trust for the timeshare property shall be
irrevocable during the time that any purchaser of a timeshare license has
a right to the use of the timeshare property.

(b) If a trust is established for timeshare property subject to
timeshare estates, the trust for the timeshare property shall be
irrevocable until all blanket encumbrances are extinguished.

(2) The Real Estate Commissioner may approve an alternative
arrangement that permits termination of the trust. [1983 c.530 §33] (1) If it is impossible
or impractical for a developer to satisfy any of the requirements of ORS
94.890 because of factors over which the developer has little or no
control, the Real Estate Commissioner may accept arrangements other than
those prescribed by ORS 94.890 which in the commissioner’s judgment will
give rights and remedies affording equivalent benefits and protection to
timeshare owners and which are at least comparable in scope though not
necessarily in nature to those afforded by ORS 94.890.

(2) If the commissioner is asked to accept alternative arrangements
under this section, the commissioner may contract with an attorney and
with any other private consultant the commissioner considers necessary or
advisable, in connection with the review of the proposed arrangements for
protecting purchasers. The attorney shall thoroughly review the timeshare
plan for the purpose of examining the purchaser protections, including
the documentation used in the timeshare plan and the disclosure thereof
in the developer’s public report. After completing the review the
attorney shall provide a written analysis of the nature and extent of the
protection that the proposal affords a purchaser against blanket
encumbrances. The cost of retaining the attorneys and other consultants
shall be paid by the developer. [1983 c.530 §34] Any surety bond furnished to the Real Estate
Commissioner under ORS 94.890 must be in an amount which is not less than
110 percent of the remaining principal balance of every indebtedness
secured by a blanket encumbrance affecting the timeshare property. The
surety bond must be issued by a surety authorized to do business in
Oregon and having sufficient net worth to be acceptable to the
commissioner. The bond shall provide for payment, up to the limit of the
bond, of all amounts secured by the blanket encumbrance, including costs,
expenses and legal fees of the lienholder, if for any reason the blanket
encumbrance is enforced. The obligee of the surety bond shall be the
commissioner on behalf of the timeshare owners. The bond may be reduced
periodically in proportion to the reduction of the remaining principal
balance of the indebtedness secured by the blanket encumbrances. Upon
being furnished with a surety bond satisfying the foregoing requirements,
the developer shall prepare and the commissioner shall execute and
acknowledge a document in recordable form accepting the surety bond and
identifying the timeshare property to which it applies. [1983 c.530 §35](Enforcement) (1) Records
of the sale of timeshares in a timeshare plan shall be subject to
inspection by the Real Estate Commissioner.

(2) The Real Estate Agency shall adopt rules necessary to carry out
ORS 94.803 and 94.807 to 94.945.

(3) The agency may cooperate with agencies performing similar
functions in other jurisdictions to develop uniform filing procedures,
forms, disclosure standards and administrative practices. [1983 c.530
§§38,40] (1) Every
nonresident developer, at the time of filing the notice required by ORS
94.823, also shall file with the Real Estate Commissioner an irrevocable
consent that if, in any suit or action commenced against the nonresident
developer in this state arising out of a violation of ORS 94.803 and
94.807 to 94.945, personal service of summons or process cannot be made
upon the developer in this state after the exercise of due diligence, a
valid service may be made upon the developer by service on the
commissioner.

(2) The consent required under subsection (1) of this section shall
be in writing executed and verified by an officer of a corporation or
association, a general partner of a partnership or by a developer and
shall set forth:

(a) The name of the developer.

(b) The address to which documents served upon the commissioner are
to be forwarded.

(c) If the developer is a corporation or unincorporated
association, that the officer exercising the consent was authorized by
resolution duly adopted by the board of directors.

(3) The address for forwarding documents served under this section
may be changed by filing a new consent in the form prescribed in
subsection (2) of this section.

(4) Service of process on the commissioner under this section shall
be made by delivering to the commissioner or a clerk on duty in any
office of the commissioner, duplicate copies of the process, with
duplicate copies of any papers required by law to be delivered in
connection with the service.

(5) When the commissioner is served with process under the
provisions of this section, the commissioner shall immediately forward by
registered mail or by certified mail with return receipt one of the
copies with any accompanying papers, to the developer at the address set
forth in the consent.

(6) The commissioner shall keep a record of each process, notice
and demand served under this section, and shall record the time of each
service and the action taken by the commissioner on each service. [1983
c.530 §43; 1991 c.249 §10] (1) In addition to any other penalty provided
by law, the Real Estate Commissioner may impose a civil penalty for
violation of the provisions of ORS 94.803 and 94.807 to 94.945. No civil
penalty shall exceed $1,000 per violation.

(2) Civil penalties under this section shall be imposed as provided
in ORS 183.745. [1983 c.530 §44; 1989 c.706 §8; 1991 c.734 §5] (1) If the Real
Estate Commissioner finds that an owner, developer or other person is
violating any of the provisions of ORS 94.803 and 94.807 to 94.945, the
commissioner may order the person to desist and refrain from violating
the provisions or requirements, or from the further sale of interests in
the timeshare plan.

(2) If the commissioner finds that a developer or other person is
violating, has violated or is about to violate, any of the provisions of
ORS 94.803 and 94.807 to 94.945, the commissioner may bring an action in
the circuit court of the county where the violation or threatened
violation has occurred or is about to occur, or in the county where the
person resides or carries on business, in the name of and on behalf of
the people of the State of Oregon against the person participating in the
violation, to enjoin the person from continuing or engaging in the
violation or doing any act in furtherance of the violation, and to apply
for the appointment of a receiver or conservator of the assets of the
defendant if appropriate. [1983 c.530 §45](Prohibited Practices) No person shall, in connection
with an offering, sale or lease of an interest in a timeshare plan:

(1) Employ any device, scheme or artifice to defraud;

(2) Make any untrue statement of a material fact;

(3) Fail to state a material fact necessary to make a statement
clear;

(4) Issue, circulate or publish any prospectus, circular,
advertisement, printed matter, document, pamphlet, leaflet or other
literature containing an untrue statement of a material fact or that
fails to state a material fact necessary to make the statements made in
the literature not misleading;

(5) Issue, circulate or publish any advertising matter or make any
written representation, unless the name of the person issuing,
circulating or publishing the matter or making the representation is
clearly indicated; or

(6) Make any statement or representation, or issue, circulate or
publish any advertising matter containing any statement that the
timeshare plan has been in any way approved or indorsed by the Real
Estate Commissioner except in conjunction with a public report issued by
the commissioner under ORS 94.828 (1), (2) and (4). [1983 c.530 §41] It shall be unlawful for any
developer or the agent or employee of a developer with intent to sell or
lease a timeshare in a timeshare plan, to authorize, use, direct or aid
in the publication, distribution or circularization of any advertisement,
radio broadcast or telecast concerning a timeshare plan, that contains
any false or misleading statement, pictorial representation or sketch.
Nothing in this section shall be construed to hold the publisher or
employee of any newspaper, any job printer, broadcaster or telecaster
liable for any publication referred to in ORS 94.940 unless the
publisher, employee, printer, broadcaster or telecaster has actual
knowledge that the material is false or has an interest in the timeshare
plan advertised. [1983 c.530 §42]MEMBERSHIP CAMPGROUNDS

(1) “Blanket encumbrance” means any mortgage, deed of trust, option
to purchase, vendor’s lien or interest under a contract or agreement of
sale, or other material financing lien or encumbrance which secures or
evidences the obligation to pay money or to sell or convey on any
campgrounds offered for sale, made available to purchasers by the
membership camping operator or any portion thereof, and which authorizes,
permits or requires the foreclosure or other disposition of the
campground affected.

(2) “Campground” means real property owned or operated by a
membership camping operator which is available for camping by purchasers
of membership camping contracts.

(3) “Camping site” means a space:

(a) Designed and promoted for the purpose of locating a trailer,
tent, tent trailer, recreational vehicle, pickup camper or other similar
device used for camping; and

(b) With no permanent dwelling on it.

(4) “Commissioner” means the Real Estate Commissioner.

(5) “Facilities” means any of the following amenities provided and
located on property owned or operated by a membership camping operator:
Camping sites, rental trailers, swimming pools, sport courts, recreation
buildings and trading posts or grocery stores.

(6) “Membership camping contract” means an agreement offered or
sold within this state granting the purchaser the right or license to use
for more than 30 days the campgrounds and facilities of a membership
camping operator and includes a membership which provides for such use.

(7) “Membership camping contract broker” means a person who resells
a membership camping contract to a new purchaser on behalf of the prior
purchaser, but does not include a membership camping operator or its
agents.

(8) “Membership camping operator” means any person, other than an
entity that is tax exempt under section 501 (c)(3) of the Internal
Revenue Code of 1954, as amended, that solicits membership camping
contracts paid for by a fee or periodic payments and has as one purpose
camping or outdoor recreation, including use of camping sites primarily
by purchasers. “Membership camping operator” does not include:

(a) Mobile home and manufactured dwelling parks or camping or
recreational vehicle parks which are open to the general public and do
not solicit purchases of membership camping contracts, but rather contain
only camping sites rented for per use fee; or

(b) Any person who engages in the business of arranging and selling
reciprocal programs and who does not own campgrounds and facilities.

(9) “Offer” means any solicitation reasonably designed to result in
the entering into of a membership camping contract.

(10) “Purchaser” means a person who enters into a membership
camping contract and obtains the right to use campgrounds and outdoor
facilities of a membership camping operator.

(11) “Sale” or “sell” means entering into, or other disposition of,
a membership camping contract for value; however, the term “value” does
not include a fee to offset the reasonable costs of transfer of a
membership camping contract.

(12) “Salesperson” means any individual, other than a membership
camping operator, who offers to sell or sells membership camping
contracts by making a direct sales presentation to prospective
purchasers, but does not include individuals engaged in the referral of
persons without making any representations about the camping program or a
direct sales presentation to prospective purchasers. “Salesperson” does
not include a campground manager who is authorized in writing to act on
behalf of a membership camping operator in the operation of a campground
and in the supervision of campground employees and salespersons and who
does not offer to sell or sell membership camping contracts by making a
direct sales presentation to prospective purchasers. [1985 c.639 §1; 1991
c.377 §6]
Except as provided in ORS 94.959, and except for transactions pursuant to
ORS 94.962, no person shall offer to sell or sell a membership camping
contract in this state unless the membership camping contract is
registered under ORS 94.953 to 94.989. [1985 c.639 §2] (1) A membership camping
operator wishing to offer to sell or sell a membership camping contract
in this state shall register the contract with the Real Estate
Commissioner. The application for registration shall include all of the
following if it is applicable to the membership camping operator:

(a) Written disclosures, in any format the commissioner is
satisfied accurately and clearly communicates the required information,
which include:

(A) The name and address of the membership camping operator and any
person who, directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with the membership
camping operator;

(B) A brief description of the membership camping operator’s
experience in the camping club business;

(C) A brief description of the nature of the purchaser’s right or
license to use the campground or facilities;

(D) The location and a brief description of the significant
facilities and recreation services then available for use by purchasers
and those which are represented to purchasers as being planned, together
with a brief description of any significant facilities or recreation
services that are or will be available to nonpurchasers and the price to
nonpurchasers therefor;

(E) A brief description of the membership camping operator’s
ownership of or other right to use the campground facilities represented
to be available for use by purchasers, together with a brief description
of the duration of any lease, real estate contract, license franchise or
other agreement entitling the membership camping operator to use the
property, and any material provisions of the agreements which restrict a
purchaser’s use;

(F) A brief description of any material encumbrance, including any
mortgage, deed of trust, option to purchase, vendor’s lien or interest
under a contract or agreement of sale, or other material financing lien
or encumbrance that secures or evidences the obligation to pay money or
to sell or convey, or which authorizes or requires the foreclosure or
other disposition of the campground affected;

(G) A brief description of any reciprocal agreement allowing
purchasers to use camping sites, facilities or other properties owned or
operated by any person other than the membership camping operator with
whom the purchaser has entered into a membership camping contract;

(H) A summary or copy of the articles, bylaws, rules, restrictions
or covenants regulating the purchaser’s use of each campground, the
facilities located on each property, and any recreation services
provided, including a statement of whether and how the articles, bylaws,
rules, restrictions or covenants may be changed;

(I) A brief description of all payments of a purchaser under a
membership camping contract, including initial fees and any further fees,
charges or assessments, together with any provisions for changing the
payments;

(J) A description of any restraints on the transfer of membership
camping contracts;

(K) A brief description of the policies relating to the
availability of camping sites and whether reservations are required;

(L) A brief description of the membership camping operator’s right
to change or withdraw from use all or a portion of the campgrounds or
facilities and the extent to which the membership camping operator is
obliged to replace facilities or campgrounds withdrawn;

(M) A brief description of any grounds for forfeiture of a
purchaser’s membership camping contract; and

(N) A copy of the membership camping contract form;

(b) A statement of the total number of membership camping contracts
then in effect, both within and without this state; and a statement of
the total number of membership camping contracts intended to be sold,
both within and without this state, together with a commitment that the
total number will not be exceeded unless disclosed by amendment to the
registration;

(c) If the campground or campgrounds owned or being purchased by
the membership camping operator at the time of registration are
campgrounds on which the membership camping operator or another
membership camping operator previously registered a membership camping
contract with the State of Oregon and sold memberships under the
registered contract and thereafter went out of business or filed for
bankruptcy, the new membership camping operator shall file with the
commissioner at the time of registration a detailed plan whereunder all
membership purchasers from the prior membership camping operator or
operators for the campground or campgrounds will be offered memberships
by the new membership camping operator despite any rejection or
cancellation of the previous contracts during bankruptcy proceedings of
the prior membership camping operator or operators. Procedures for
written notice to the purchasers and the material terms and conditions of
membership offered by the new campground operator shall be included in
the detailed plan filed with the commissioner. The material terms and
conditions including but not limited to price and terms of payment
offered by the new campground operator or operators shall not be
materially less favorable than the material terms and conditions offered
to new purchasers; and

(d) Any other material information the commissioner may, by rule or
order, require for the protection of the purchasers.

(2) The application shall be signed by the membership camping
operator, an officer or general partner of the membership camping
operator or by another person holding a power of attorney for such
purpose from the membership camping operator. If the application is
signed pursuant to a power of attorney, a copy of the power of attorney
shall be included with the application.

(3) The application shall be submitted with the registration fee.

(4) An application for registration to offer or sell membership
camping contracts shall be amended when a material change from the
information previously filed occurs. Such amendment shall be filed with
the commissioner within 10 days after the membership camping operator
knows of such change.

(5) In place of the disclosures required with the application for
registration, the commissioner may accept a public report or other
disclosure from another state in which the membership camping operator
has registered. [1985 c.639 §3; 1991 c.377 §7] The following transactions are
exempt from registration:

(1) An offer, sale or transfer by any one person of not more than
one membership camping contract for any membership camping operator in
any 12-month period, unless the person receives a commission or similar
payment for the sale or transfer.

(2) An offer or sale by a government, government agency or other
subdivision of a government.

(3) Granting a security interest in a membership camping contract.

(4) An offer, sale or transfer by a membership camping operator of
a membership camping contract previously registered by the operator if
the offer, sale or transfer constitutes a resale to another owner. [1985
c.639 §4] The application for
registration shall automatically become effective upon the expiration of
45 calendar days following filing of a completed application with the
Real Estate Commissioner unless:

(1) The application for registration is denied under ORS 94.968;

(2) The commissioner grants the registration effective as of an
earlier date; or

(3) The applicant consents to a delay of the effective date. [1985
c.639 §5](1) The Real Estate Commissioner may order that a registration
of an offer or sale of membership camping contracts be denied, suspended
or revoked if the commissioner makes findings pursuant to ORS 183.430
that any of the following is true:

(a) The membership camping operator has failed to comply with any
provisions of ORS 94.953 to 94.989 which materially affect the rights of
purchasers or prospective purchasers of membership camping contracts.

(b) The membership camping operator is representing to purchasers
in connection with the offer or sale of a membership camping contract
that any campground or facilities are planned without reasonable grounds
to believe that the campground or facilities will be completed within a
reasonable time.

(c) The membership camping operator’s offering of membership
camping contracts works a fraud on purchasers or owners of membership
camping contracts.

(2) Proceedings for suspending, revoking or denying a registration
shall be governed by ORS chapter 183.

(3) If the commissioner finds that immediate suspension of a
registration is necessary to protect purchasers or owners from fraud, the
commissioner may order any person subject to ORS 94.953 to 94.989 to
desist from such conduct and may suspend the registration immediately.
Affected persons shall be entitled to a hearing as in the case of license
suspension under ORS 183.430.

(4) If the commissioner finds that a membership camping operator or
other person is violating any of the provisions of ORS 94.953 to 94.989,
the commissioner may order the person to desist and refrain from
violating the provisions and from the further offering and sale of
membership camping contracts.

(5) If the commissioner finds that a membership camping operator or
other person is violating, has violated or is about to violate, any of
the provisions of ORS 94.953 to 94.989, the commissioner may bring an
action in the circuit court of the county where the violation or
threatened violation has occurred or is about to occur, or in the county
where the person resides or carries on business, in the name of and on
behalf of the people of the State of Oregon against the person
participating in the violation, to enjoin the person from continuing or
engaging in the violation or doing any act in furtherance of the
violation, and to apply for the appointment of a receiver or conservator
of the assets of the defendant if appropriate. [1985 c.639 §6; 1991 c.377
§8](1) The fee for registration or amendment of
an offer or sale of a membership camping contract shall be an amount
sufficient to recover any administrative expenses in staff review and
action upon the registration or amendment. The fee is subject to the
review of the Oregon Department of Administrative Services. The Real
Estate Commissioner shall set an estimated fee to be paid with the
application. The final fee shall be paid before final registration
becomes effective.

(2) No fee shall be required for an amendment unless additional
work is required by Real Estate Agency staff on disclosures.

(3) The fee for registration or renewal of an existing registration
of a broker or salesperson is $50. [1985 c.639 §7; 1991 c.377 §9; 1993
c.18 §18](1) Except in a transaction exempt under ORS 94.962, any person
who sells a membership camping contract shall provide the prospective
purchaser with those written disclosures required under ORS 94.959.
Disclosures shall be substantially accurate and complete and made to a
prospective purchaser before the prospective purchaser signs a membership
camping contract or gives any consideration for the purchase of such
contract. The person shall take a receipt from the prospective purchaser
upon delivery of the disclosures. Each receipt shall be kept on file by
the membership camping operator within this state subject to inspection
by the Real Estate Commissioner or the commissioner’s authorized
representative for a period of three years from the date the receipt is
taken.

(2) Records of the sale of membership camping contracts shall be
subject to inspection by the commissioner or the commissioner’s
authorized representative. Any list identifying campground members
obtained by the commissioner or the commissioner’s authorized
representative shall be exempt from disclosure, as trade secrets, to any
person, public body or state agency, under ORS 192.501. [1985 c.639 §8;
1991 c.377 §10] No person shall, in connection
with an offering or sale of a membership camping contract:

(1) Employ any device, scheme or artifice to defraud;

(2) Make any untrue statement of a material fact;

(3) Fail to state a material fact necessary to make a statement
clear;

(4) Issue, circulate or publish any prospectus, circular,
advertisement, printed matter, document, pamphlet, leaflet or other
literature containing an untrue statement of a material fact or that
fails to state a material fact necessary to make the statements made in
the literature not misleading;

(5) Issue, circulate or publish any advertising matter or make any
written representation, unless the name of the person issuing,
circulating or publishing the matter or making the representation is
clearly indicated; or

(6) Make any statement or representation, or issue, circulate or
publish any advertising matter containing any statement that the
membership camping contract has been in any way approved or indorsed by
the Real Estate Commissioner. [1991 c.377 §2]Note: 94.975 and 94.976 were added to and made a part of 94.953 to
94.989 by legislative action but were not added to any other series. See
Preface to Oregon Revised Statutes for further explanation. It shall be unlawful for any
membership camping operator or the agent or employee of any membership
camping operator with intent to sell a membership camping contract, to
authorize, use, direct or aid in the publication, distribution or
circularization of any advertisement, radio broadcast or telecast
concerning a membership camping contract, that contains any materially
false or misleading statement, pictorial representation or sketch.
Nothing in this section shall be construed to hold the publisher or
employee of any newspaper, any job printer, broadcaster or telecaster
liable for any publication referred to in this chapter, unless the
publisher, employee, printer, broadcaster or telecaster has actual
knowledge that the material is false or has an interest in the membership
camping contract being advertised. [1991 c.377 §3]Note: See note under 94.975. (1) Unless the
transaction is exempt under ORS 94.962, it is unlawful for any person to
act as a salesperson or membership camping contract broker in this state
without first registering as a salesperson or membership camping contract
broker as provided in ORS 94.980. Persons licensed as real estate brokers
or principal real estate brokers under ORS chapter 696 are exempt from
registration under this section.

(2) A violation of this section is a Class A misdemeanor. [1985
c.639 §9; 2001 c.300 §54] (1) A salesperson or
membership camping contract broker may apply for registration by filing
with the Real Estate Commissioner an application which includes the
following information:

(a) A statement whether or not the applicant has been convicted of
any misdemeanor or felony involving theft, fraud or dishonesty or whether
or not the applicant has been enjoined from, had any civil penalty
assessed for, or been found to have engaged in any violation of any act
designed to protect consumers; and

(b) A statement describing the applicant’s employment history for
the past five years and whether or not any termination of employment
during the last five years was occasioned by any theft, fraud or act of
dishonesty.

(2) Each applicant for initial registration shall submit to
fingerprinting and provide to the commissioner as part of the application
a recent photograph of the applicant. The registration must be
accompanied by a written acceptance of the applicant as a salesperson
signed by the membership camping operator with whom the salesperson will
be associated.

(3) The commissioner may deny, suspend or revoke a salesperson’s or
membership camping contract broker’s application for registration or the
salesperson’s or membership camping contract broker’s registration if the
commissioner finds that the order is necessary for the protection of
purchasers or owners of membership camping contracts and that the
applicant or registrant:

(a) Has been convicted of any misdemeanor or felony or has been
enjoined from, had any civil penalty assessed for, or been found to have
engaged in any violation of any act designed to protect consumers;

(b) Has violated any material provision of ORS 94.925 to 94.983; or

(c) Has engaged in fraudulent or deceitful practices in any
industry involving sales to consumers.

(4) Registration shall be effective for a period of one year.
Registration shall be renewed annually by the filing of a form prescribed
by the commissioner for that purpose. The completed application for
registration or renewal shall automatically become effective upon the
expiration of 30 business days following filing with the commissioner,
unless:

(a) The application has been denied under subsection (3) of this
section;

(b) The commissioner grants the registration effective as of an
earlier date; or

(c) The applicant or registrant consents to delay of the effective
date.

(5) During the effective period of a salesperson’s registration,
the salesperson may transfer to a new membership camping operator by
requesting the operator to return the salesperson’s registration to the
commissioner and filing with the commissioner a written acceptance of the
salesperson’s transfer signed by the membership camping operator with
whom the salesperson will be associated following the transfer. Upon
receipt of the salesperson’s registration and payment to the commissioner
of a $10 transfer fee, the commissioner may issue a registration for the
salesperson to the new membership camping operator. Upon the request of a
salesperson, a membership camping operator shall promptly return the
registration of the salesperson to the commissioner.

(6) A salesperson’s registration granted under this section shall
be issued to a membership camping operator who signed the written
acceptance accompanying the initial registration application or transfer
request. A salesperson’s registration entitles the salesperson to sell
membership camping contracts only for any campground operated by the
membership camping operator under the supervision of the operator. If the
salesperson terminates sales activity for any reason, the membership
camping operator shall return the registration of the salesperson to the
commissioner without delay.

(7) If an applicant for registration has an active real estate
license outstanding, the applicant must place the real estate license on
inactive status before issuance of the registration by the commissioner.
A salesperson or membership camping contract broker may not reactivate an
inactive real estate license during any term of registration as a
salesperson or membership camping contract broker. [1985 c.639 §10; 1991
c.377 §11](1) Any membership camping contract may be canceled at the option
of the purchaser, if:

(a) The purchaser sends notice of the cancellation by certified
mail, return receipt requested, to the membership camping operator; and

(b) The notice is posted not later than midnight of the third
business day following the day on which the membership camping contract
is signed.

(2) In addition to the cancellation right established in subsection
(1) of this section, any purchaser who signs a membership camping
contract without inspecting a campground or facility with camping sites
or proposed camping sites may, after making an inspection, cancel the
membership camping contract by posting a notice by certified mail, return
receipt requested, not later than midnight of the sixth business day
following the day on which the membership camping contract is signed. In
computing the number of business days, the day on which the membership
camping contract was signed, Saturdays, Sundays and legal holidays shall
not be included as a “business day.” The membership camping operator
shall promptly refund any money or other consideration paid by the
purchaser upon receipt of timely notice of cancellation by the purchaser.

(3) Every membership camping contract shall include the following
statement in at least 10-point type immediately before the space for the
purchaser’s signature:

___________________________________________________________________________
___Purchaser’s Right To Cancel: You may cancel this membership camping
contract without any cancellation fee or other penalty by sending notice
of cancellation by certified mail, return receipt requested, to _____
(insert name and mailing address of membership camping operator). The
notice must be postmarked by midnight of the third business day following
the day on which the membership camping contract is signed. In computing
the three business days, the day on which the membership camping contract
is signed shall not be included as a “business day,” nor shall Saturday,
Sunday or legal holidays be included.

___________________________________________________________________________
___ (4) If the purchaser has not inspected a campground or facility at
which camping sites are located or planned, the notice must contain the
following additional language:

___________________________________________________________________________
___If you sign this membership camping contract without having first
inspected the property at which camping sites are located or planned, you
may also cancel this membership camping contract by giving this notice
within six business days following the day on which you signed if you
inspect such a property prior to sending the notice.

___________________________________________________________________________
___ (5) No act of a purchaser shall be effective to waive the right of
cancellation granted by subsection (1) or (2) of this section. [1985
c.639 §11]With respect to any campground offered for
sale in this state and acquired and put into operation by a membership
camping operator after September 1, 1985, the membership camping operator
shall not sell membership camping contracts in this state granting the
right to use such campground until one of the following requirements has
been satisfied:

(1) Each person holding an interest in a blanket encumbrance
executes and delivers to the Real Estate Commissioner a nondisturbance
agreement and records such agreement in the real estate records of the
county in which the campground is located. “Nondisturbance agreement”
means an instrument by which the holder of a blanket encumbrance agrees
that the holder’s rights in the campground shall be subordinate to the
rights of any membership camping contract purchaser. Every nondisturbance
agreement must contain a covenant by the lienholder that the lienholder,
its successors, and anyone who acquires the campground property through
the blanket lien shall not use, or cause or permit the property to be
used in a manner that prevents a membership camping contract purchaser
from using, the campground property in the manner contemplated by the
membership camping contract. The lienholder’s agreement not to disturb a
membership camping contract purchaser may require as a continuing
condition that the purchaser perform all obligations and make all
payments due under any membership camping contract for the purchaser’s
campground interest and, if the membership camping contract is held as a
leasehold, under the lease for the purchaser’s campground interest. The
nondisturbance agreement shall also contain provisions setting forth each
of the following:

(a) The nondisturbance agreement may be enforced by purchasers of
membership camping contracts. If the membership camping operator is not
in default under its obligations to the holder of the blanket
encumbrance, the agreement may be enforced by both the membership camping
operator and the purchasers.

(b) The nondisturbance agreement is effective as between each
purchaser and the holder of the blanket encumbrance despite any rejection
or cancellation of the purchaser’s contract during bankruptcy proceedings
of the membership camping operator.

(c) The agreement is binding upon the successors in interest of
both the membership camping operator and the holder of the blanket
encumbrance.

(d) A holder of the blanket encumbrance who obtains title or
possession, or who causes a change in title or possession in a campground
by foreclosure or otherwise, and who does not continue to operate the
campground upon conditions no less favorable to members than existed
prior to the change of title or possession shall:

(A) Offer the title or possession of the campground to an
association of members to operate the campground; or

(B) Obtain a commitment from another entity that obtains title or
possession to undertake the responsibility for operation of the
campground.

(2) If a financial institution, acting as hypothecation lender and
providing the major hypothecation loan to the membership camping
operator, has a lien on, or security interest in, the membership camping
operator’s interest in the campground, the financial institution shall
execute and deliver to the commissioner a nondisturbance agreement and
record such agreement in the real estate records of the county in which
the campground is located. In addition, each person holding an interest
in any blanket encumbrance superior to the interest held by the financial
institution shall execute, deliver and record an instrument stating that
such person shall give the financial institution notice of, and at least
30 days to cure, any default under the blanket encumbrance before such
person commences any foreclosure action affecting the campground. For the
purposes of this provision, a major hypothecation loan to a membership
camping operator is a loan or line of credit secured by substantially all
of the contracts receivable arising from the membership camping
operator’s sale of membership camping contracts.

(3) There shall have been delivered to and accepted by the
commissioner a surety bond or letter of credit with the commissioner as
obligee for the benefit of purchasers. The bond or letter of credit must
be in an amount which is not less than 105 percent of the remaining
principal balance of every indebtedness secured by the blanket
encumbrance affecting the campground. Any such bond must be issued by a
surety authorized to do business in this state and having sufficient net
worth to satisfy the indebtedness. Any such letter of credit must be
irrevocable and must be drawn upon a bank, savings and loan association
or other financial institution acceptable to the commissioner. The bond
or letter of credit shall provide for payment of all amounts secured by
the blanket encumbrance, including costs, expenses and legal fees of the
lienholder, if for any reason the blanket encumbrance is enforced. The
bond or letter of credit may be reduced periodically in proportion to the
reduction of the amounts secured by the blanket encumbrance.

(4) There have been delivered to and accepted by the commissioner
other financial assurances which the commissioner finds are acceptable to
carry into effect the intent and provisions of this section. [1985 c.639
§11a; 1991 c.377 §5] (1)(a) Upon
petition by the Real Estate Commissioner or a majority of active
purchasers not then in default under their membership camping contracts,
a court of competent jurisdiction may declare a failure of management of
the membership camping operator and appoint a trustee to assume the
membership camping operator’s duties under the membership camping
contracts, if the court finds that:

(A) Irreparable injury to the rights of the purchasers is likely to
occur unless a trustee is appointed; and

(B) There is no reasonable alternative to appointment of a trustee.

(b) For purposes of this subsection, “active purchaser” means a
current, dues-paying member of the membership camping operator.

(2) The court may attach such conditions and terms to its
appointment of a trustee under subsection (1) of this section as the
court considers necessary to protect the rights of the purchasers under
the membership camping contract. The trustee shall provide a copy of the
court’s decision in such a case to the commissioner.

(3) If the court petitioned under subsection (1) of this section
finds that there is a reasonable alternative to the appointment of a
trustee, the court may order the membership camping operator to carry out
the reasonable alternative and may attach to its order such terms and
conditions as it considers necessary to protect the rights of the
purchasers under the membership camping contracts. [1991 c.377 §4](1) Membership camping contracts,
campgrounds and facilities are not subdivisions or series partitions
under ORS chapter 92, are not condominiums under ORS chapter 100, are not
timeshare properties under ORS chapter 94, and are not securities under
ORS 59.005 to 59.451, 59.660 to 59.830, 59.991 and 59.995.

(2) Membership camping contracts covered by ORS 94.925 to 94.983
are retail installment contracts under ORS 83.010 to 83.190.

(3) The Attorney General shall protect the rights of purchasers
through the application of ORS 646.605 to 646.652. [1985 c.639 §12]

_______________

USA Statutes : oregon