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

(A) Is a franchised motor vehicle dealership, as defined in ORS 650.120 (5);

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

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

(b) A person, other than a person that is described in paragraph (a)(A), (B) or (C) of this subsection, shall have in effect before making, altering, repairing, transporting, storing, performing services for, supplying materials for or performing labor in connection with a motor vehicle a valid surety bond in an amount not less than $20,000.

(3)(a) As used in this subsection:

(A) "Auction company" means an entity:

(i) That operates throughout the United States;

(ii) That holds a vehicle dealer certificate that the Department of Transportation issued or renewed under ORS 822.020 or 822.040, or a dismantler certificate that the department issued or renewed under ORS 822.110 or 822.125; and

(iii) The primary activity of which, in this state, consists of disposing of totaled motor vehicles.

(B) "Motor vehicle" has the meaning given that term in ORS 801.360.

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

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

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

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

(c) ORS 87.166 and 87.172 to 87.212 do not apply to chattel that is subject to this subsection.

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

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

(B) The owner’s reasonable costs and attorney fees.

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

(A) A judgment that:

(i) Directs the Department of Transportation to restore title to the motor vehicle to the owner and to invalidate the title the person obtained; or

(ii) Extinguishes the person’s interest in the motor vehicle and directs the department to issue title in the name of the plaintiff in the action;

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

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

Note: The amendments to 87.152 by section 2, chapter 56, Oregon Laws 2019, become operative July 1, 2020. See section 4, chapter 56, Oregon Laws 2019. The text that is operative until July 1, 2020, including amendments by section 1, chapter 58, Oregon Laws 2018, section 1, chapter 56, Oregon Laws 2019, and section 1, chapter 344, Oregon Laws 2019, is set forth for the user’s convenience. (1) Except as provided in subsections (2) and (3) of this section, a person that makes, alters, repairs, transports, stores, pastures, cares for, provides services for, supplies materials for or performs labor on a chattel at the request of the owner or lawful possessor of the chattel has a lien on the chattel in the possession of the person for the reasonable or agreed charges for labor, materials or services of the person, and the person may retain possession of the chattel until the charges are paid.

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

(a) Is a franchised motor vehicle dealership, as defined in ORS 650.120 (5);

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

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

(3)(a) As used in this subsection:

(A) "Auction company" means an entity:

(i) That operates throughout the United States;

(ii) That holds a vehicle dealer certificate that the Department of Transportation issued or renewed under ORS 822.020 or 822.040, or a dismantler certificate that the department issued or renewed under ORS 822.110 or 822.125; and

(iii) The primary activity of which, in this state, consists of disposing of totaled motor vehicles.

(B) "Motor vehicle" has the meaning given that term in ORS 801.360.

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

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

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

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

(c) ORS 87.166 and 87.172 to 87.212 do not apply to chattel that is subject to this subsection.

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

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

(B) The owner’s reasonable costs and attorney fees.

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

(A) A judgment that:

(i) Directs the Department of Transportation to restore title to the motor vehicle to the owner and to invalidate the title the person obtained; or

(ii) Extinguishes the person’s interest in the motor vehicle and directs the department to issue title in the name of the plaintiff in the action;

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

(C) Reimbursement for any fees the owner pays to the department to reissue the title.