OAR 735-020-0014: Possessory Lien - Surety Bond or Irrevocable Letter of Credit Required Under ORS 87.152

This rule specifies the process to submit to DMV the required documentation under ORS 87.152 concerning the issuance, continued coverage and cancellation of a surety bond or irrevocable letter of credit. (1) A lien claimant required to submit a surety bond or irrevocable letter of credit in accordance with ORS 87.152(2)(b) must file an acceptable corporate surety bond (DMV form 735-522B) or an irrevocable letter of credit with DMV by : (a) Mailing the completed and signed original Surety Bond form (DMV form 735-522B) or irrevocable letter of credit to DMV Business Regulation, 1905 Lana Ave NE, Salem, OR 97314; or (b) Submitting in person at DMV Headquarters the completed and signed original Surety Bond form (DMV 735-522B) or irrevocable letter of credit. (2) A corporate surety or financial institution, as appropriate, shall notify DMV in writing of any cancellation of the surety bond or irrevocable letter of credit by: (a) Emailing a notice of cancellation to DMV at DMVINSERT@odot.state.or.us ; or (b) Mailing a notice of cancellation to DMV Business Licensing, 1905 Lana Ave NE, Salem, OR 97314; (c) Any other manner with prior approval by DMV. (3) A person described in ORS 87.152(2)(b) must certify in writing to DMV each year that the surety bond or irrevocable letter of credit remains in effect. The person must submit the required certification by: (a) Emailing a written statement to DMV at DMVINSERT@odot.state.or.us ; or (b) Mailing a written statement to DMV Business Licensing, 1905 Lana Ave NE, Salem, OR 97314 prior to the anniversary of the effective date of the surety bond or irrevocable letter of credit. (c) Any other manner with prior approval by DMV. (4) If a person other than the person described in ORS 87.152(2)(b) obtains a recovery against the surety bond or irrevocable letter of credit, the person described in ORS 87.152(2)(b) must file with DMV not later than three business days after the date of recovery a new surety bond (DMV form 735-522B) or irrevocable letter of credit in the amount specified in ORS 87.152(2)(b). The person must submit a new surety bond (DMV form 735-522B) or irrevocable letter of credit by: (a) mailing the new surety bond or irrevocable letter of credit to DMV Business Regulation, 1905 Lana Ave NE, Salem, OR 97314; or (b) Submitting in person at DMV Headquarters the completed and signed original Surety Bond form (DMV 735-522B) or irrevocable letter of credit. (5) DMV will not process an application for vehicle title with a possessory lien foreclosure form received as the vehicle ownership document if the required surety bond or irrevocable letter of credit is not on file with DMV.