90.367 Application
of security deposit or prepaid rent after notice of foreclosure; termination of
fixed term tenancy after notice.
(1) A tenant who receives actual notice that the property that is the subject
of the tenant’s rental agreement with a landlord is in foreclosure may apply
the tenant’s security deposit or prepaid rent to the tenant’s obligation to the
landlord. The tenant must notify the landlord in writing that the tenant
intends to do so. The giving of the notice provided by this subsection by the tenant
does not constitute a termination of the tenancy.
(2) A landlord
may not terminate the tenancy of a tenant:
(a) Because the
tenant has applied the security deposit or prepaid rent as allowed under
subsection (1) of this section.
(b) For
nonpayment of rent during the month in which the tenant applies the security
deposit or prepaid rent pursuant to subsection (1) of this section unless an
unpaid balance remains due after applying all payments, including the security
deposit or prepaid rent, to the rent.
(3) If the tenant
has not provided the written notice applying the security deposit or prepaid
rent as required under subsection (1) of this section before the landlord gives
a termination notice for nonpayment of rent, the tenant must provide the written
notice within the notice period provided by ORS 90.392 or 90.394. If the tenant
does not provide the written notice, the landlord may terminate the tenancy
based upon ORS 90.392 or 90.394.
(4) Application
of the security deposit or prepaid rent pursuant to subsection (1) of this
section to an obligation owed to the landlord does not constitute a partial
payment under ORS 90.417.