Oregon Administrative Rules
Chapter 141 - DEPARTMENT OF STATE LANDS
Division 15 - PROCEDURES GOVERNING DEFAULTS ON COMMON SCHOOL
Section 141-015-0050 - Settlement of Default
Universal Citation: OR Admin Rules 141-015-0050
Current through Register Vol. 63, No. 9, September 1, 2024
(1) In the event of default, the purchaser shall have the following options for settlement of the contract:
(a) Prompt settlement:
(A) A purchaser may settle a default by the
completion date of the contract. Such settlement shall include payment of the
balances owing the state plus any other damages and expense incurred by the
state as a result of the default;
(B) Damages and expense shall include, but
not be limited to, any calculated costs and losses resulting from the resale of
the parcel and any rehabilitation or regeneration delay costs and losses in
areas which have been harvested;
(C) Any delays in this payment after the
termination date of the contract shall be subject to an interest
charge.
(b) Delayed
settlement:
(A) Cash Resale. The original
purchaser shall be responsible for any monies due the state if the balance of
payments owing and other damages and expense incurred as a result of the
default are not offset by the values of the resale on a cash basis. Such
balances shall be due 30 days after the resale and award of the contract. Any
delays in payment after the due date shall be subject to an interest
charge;
(B) Recovery Resale. The
original purchaser shall be responsible for any monies due the state if the
balance of payments owing and other damages and expense incurred in the
original sale are not offset by the values in the new sale on a recovery basis.
The original purchaser shall have the option of settling with the state based
upon the resale bid and the state's estimate of volume and value to be
recovered. If this option is not exercised within 30 days of the award of the
resale, then an interest charge on any monies owing shall accrue from the date
the resale is awarded until the settlement is made;
(C) Without Resale. In the event a defaulted
parcel is not resaleable, the difference between the appraised price of the
parcel and the original bid price plus any damages and expense and interest due
shall become the basis for a negotiated settlement between the purchaser and
the state Forester.
(c)
Default because of the purchaser's injury to or severance of timber not
included in the sale:
(A) The Forester may
take one or more of the following actions:
(i)
Terminate the contract;
(ii) Assess
damages and expenses in the amount of:
(I)
Treble the market value of the severed or injured timber if the purchaser's
action is willful or intentional or;
(II) Double the market value of the severed
or injured timber if the purchaser's action is not willful or
intentional.
(B) Any damages assessed for injury or
severance are in addition to and not in lieu of any other damages to which the
Forester may be entitled under section (1) of this rule.
(2) In either option, the following shall apply:
(a) The interest rates
used shall be those in effect being earned by the excess fund in the state
Treasurer's office at the time interest commences to run;
(b) In the case of a required project which
was completed by the purchaser for the defaulted contract, the purchaser is
entitled to credit for the project in the amount of the appraised value of the
project as shown in the appraisal filed in the Forester's office
minus any compensation the purchaser has received for the
project during the course of the contract;
(c) Initial down payments may be retained by
the state and surety bonds shall be maintained in effect until the State has
been reimbursed for all damages and expense incurred as a result of the
default.
Stat. Auth.: ORS 273.521
Stats. Implemented: ORS 273.521
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
