1. (1) As used in this section:

   1. (a) “Buyer” means a person that purchases a motor vehicle from a seller or leases a motor vehicle from a lessor.
   2. (b) “Final approval of funding” means a lender’s irrevocable agreement to purchase a retail installment contract or lease agreement from a seller according to the exact terms that the seller and buyer have negotiated.
   3. (c) “Lender” means a person that purchases from a seller a retail installment contract or lease agreement for a motor vehicle.
   4. (d) “Motor vehicle” means a motor vehicle, as defined in ORS 801.360, that is sold or leased in this state for personal, family or household purposes.
   5. (e) “Seller” means a person that holds a current, valid vehicle dealer certificate issued under ORS 822.020.
2. (2) A seller may offer to sell or lease a motor vehicle to a buyer or prospective buyer under a retail installment contract or lease agreement that is subject to a lender’s agreement to purchase the retail installment contract or lease agreement into which the buyer enters.

3. (3)

   1. (a) In any transaction described in subsection (2) of this section, a seller shall provide to a buyer before concluding the transaction a conspicuous notice written in the English language, separate from all other documents that the seller provides to the buyer, that reads:

      RETAIL INSTALLMENT CONTRACT

      DISCLOSURE

      Seller Information:

      Name: _________

      Address: _________

      Phone: _________

      Buyer Information:

      Name: _________

      Address: _________

      Phone: _________

      Vehicle Information:

      Make: _________

      Model: _________

      Year: _________

      VIN: _________

      Mileage: _________

      Right to Void:

      You have a right to void this vehicle transaction if a lender does not agree to purchase the Retail Installment Contract on the exact terms that you and the seller negotiated within ten (10) calendar days after you take possession of the motor vehicle.

      Seller’s Failure to Comply:

      If the seller refuses to comply with your right to void the Retail Installment Contract, you may wish to consult with a lawyer. You can contact the Oregon State Bar’s Lawyer Referral Service at: _________.

      You may also contact the Consumer Hotline at the Oregon Department of Justice at: (_____)_________ or file a complaint online at: _________.

      Acknowledgement and Signature:

      By signing below, you acknowledge receiving this disclosure and that you understand the terms and rights outlined above.

      Seller’s signature: _________

      Date: _________

      Buyer’s signature: _________

      Date: _________

      Availability of Disclosure

      in Multiple Languages:

      This disclosure is available in multiple languages upon request. Please ask the seller if you would like to receive this document in a language other than English.

   2. (b) The Attorney General shall provide a model form for the disclosure described in paragraph (a) of this subsection. In providing the model form, the Attorney General shall:

      1. (A) Write an original version of the form in the English language using the text shown in paragraph (a) of this subsection;
      2. (B) Translate the form into Spanish, Vietnamese, Chinese, Russian and Korean and make the English language version and all translated versions of the form available for download on the Attorney General’s website; and
      3. (C) Include at the bottom of each version of the form a statement, written in English and in each of the languages listed in subparagraph (B) of this paragraph, that reads: “This disclosure form is available in multiple languages upon request. Please ask the seller if you would like to receive this document in a language other than English.”
   3. (c) A seller shall make good faith efforts to sell the retail installment contract or lease agreement to a lender on the exact terms that the seller and buyer negotiated.

   4. (d) If, within 10 calendar days after a buyer takes possession of a motor vehicle, a lender does not agree to purchase a retail installment contract or lease agreement on the exact terms that the seller and the buyer negotiate and the seller does not receive final approval of funding from the lender, the seller shall:

      1. (A) Unconditionally accept the retail installment contract or lease agreement after satisfying, removing or waiving any conditions on the seller’s acceptance or performance, including financing, assignment, lease approval and delivery and finance the transaction under the exact terms to which the seller and buyer previously agreed; or
      2. (B) Reject the retail installment contract or the lease agreement and thereby void the transaction.

   5. (e) If the seller chooses to void the transaction as described in paragraph (d)(B) of this subsection, the seller shall:

      1. (A) Send, within two days after the period described in paragraph (d) of this subsection expires, a notice by first class mail and written electronic communication, unless the buyer declines to receive the notice in one of those forms, stating that a lender has not agreed to purchase the retail installment contract or lease agreement and that the seller has chosen to void the transaction; and
      2. (B) Return to the buyer all items of value the seller received from the buyer as part of the transaction.
   6. (f) If the seller neither affirmatively accepts the retail installment contract as provided in paragraph (d)(A) of this subsection nor expressly rejects and voids the transaction as provided in paragraph (d)(B) of this subsection, the seller has chosen to void the retail installment contract as provided in paragraph (d)(B) of this subsection.
   7. (g) If the seller has accepted a trade-in motor vehicle from the buyer, the seller may not sell, lease or pay off an outstanding loan balance that the buyer owes on the buyer’s trade-in motor vehicle before the seller receives final approval of funding from the lender.

   8. (h) If, before receiving final approval of funding from the lender, the seller:

      1. (A) Sells the trade-in motor vehicle, the seller is liable to the buyer for the greater of:
   9. (i) The amount of the payoff balance for the loan on the trade-in motor vehicle;
   10. (ii) The trade-in value of the trade-in motor vehicle; or
   11. (iii) Any payment the seller received from selling the trade-in motor vehicle.
   12. (B) Sells the trade-in motor vehicle and pays off the outstanding loan balance that the buyer owes, the seller is liable to the buyer as provided in subparagraph (A) of this paragraph, less the amount the seller paid on the outstanding loan balance.
   13. (C) Pays off the outstanding loan balance that the buyer owes on the trade-in motor vehicle but does not sell the trade-in motor vehicle, the seller must return the trade-in motor vehicle to the buyer and finance the balance of the outstanding amount that the buyer owed on the trade-in motor vehicle on the same terms and conditions that applied to the loan that the buyer originally had for the trade-in motor vehicle.
4. (4) In any transaction described in subsection (2) of this section or in instances in which the seller voids a transaction as provided in subsection (3)(d)(B) of this section, if the buyer has accepted a motor vehicle from the seller that is subject to a retail installment contract or lease agreement, and a lender does not agree to purchase the retail installment contract or lease agreement on the exact terms the seller and the buyer negotiated, the buyer shall return to the seller all items of value the buyer received from the seller as part of the transaction. The seller may charge the buyer only for the fair market value of damage to, excessive wear and tear on or loss of the motor vehicle that occurs between the date the buyer takes possession of the motor vehicle and the date the buyer returns the motor vehicle to the seller’s custody, and only if the retail installment contract or lease agreement provides for the charge in writing.

5. (5)

   1. (a) Subject to paragraph (b) of this subsection, a seller has an affirmative defense to a claim or charge of violating subsection (3)(d) of this section by showing that the buyer failed to return the motor vehicle after the seller sent the notice described in subsection (3)(e)(A) of this section.
   2. (b) A seller shall retain proof of the date on which the seller sent to the buyer the notice described in subsection (3)(e)(A) of this section.

[Formerly 646.877; 2017 c.241 §1; 2023 c.400 §37; 2025 c.81 §1]