Trustee accounting; deficiencies; lien.

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(2)(a) If the funds collected by the trustee under ORS 441.289 and 441.293 exceed the reasonable expenses of the trust, the court shall order payment of the surplus to the licensee after reimbursement to the department of amounts contributed from the Facility Fund established under ORS 441.303.

(b) If the funds are insufficient to cover the reasonable expenses of the trust, the department may move the court for an order requiring the licensee to pay the deficiency to the department. The motion shall contain the following statement in bold:

______________________________________________________________________________

Notice to _________

The Department of Human Services has filed this motion to recover from you costs incurred as a result of the operation of a facility under ORS 441.277 to 441.323. The court may enter a money judgment against you if you fail to respond to this motion within 20 days of service of this motion upon you.

______________________________________________________________________________

(c) The department shall serve the motion personally or by first class mail at the last-known address of the licensee. If the licensee fails to file a response to the motion within 20 days of service, the court shall enter an order and judgment accordingly. If the licensee files a timely response, the court shall set a date for a hearing at which the court shall determine whether the expenses incurred by the trust are reasonable.

(d) The licensee is not liable for expenses in excess of what the court finds to be reasonable. The court shall enter a money judgment against the licensee in an amount that does not exceed the reasonable expenses. Payment recovered from the licensee shall be credited to reimburse the Facility Fund established under ORS 441.303.

(3) The department shall have a lien for any deficiency established under subsection (2) of this section upon any real property and other beneficial interest, direct or indirect, of any licensee, any fixtures, equipment or goods used in the operation of the facility and the proceeds from a conveyance of any such property or interest made by the licensee within the 12 months prior to the filing of the petition for appointment of a trustee.

(4) The lien provided in subsection (3) of this section is prior to any lien or other interest that originates subsequent to the filing of a petition for appointment of a trustee under ORS 441.281, except for a construction lien arising out of work performed with the express consent of the trustee.

(5) The lien established under subsection (3) of this section may be recorded in the County Clerk Lien Record described in ORS 205.130. [1981 c.868 §12; 1987 c.428 §23; 2009 c.539 §10]


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