(1) The board may
notify the surety company of claims pending.
The board shall notify the surety company
or deposit holder of claims ready for payment. This notice shall constitute
notice that payment is due on the claim. Claims are ready for payment when all
of the following have occurred:
arbitration award has been issued and is ready for payment under OAR
after 30 days have elapsed to allow the respondent time to pay the
award or file exceptions with the circuit court or a final order has been
issued in a contested case and 30 days have elapsed to allow the respondent
time to pay the order;
board has received no evidence that the respondent has complied with the final
order or award;
(c) The board has
not granted a stay of enforcement of the final order pending judicial review by
the Court of Appeals; and
other claims filed against the licensee under ORS
671.710 within the same or prior
90-day period under ORS
671.710 have either been
resolved, been closed or have reached the same state of processing as the
Claims related to jobs that are satisfied from a surety bond, irrevocable
letter of credit or deposit shall be paid as follows:
(a) If a surety bond, irrevocable letter of
credit or deposit was in effect when the work period began, payment shall be
made from that surety bond or deposit.
(b) If no surety bond, irrevocable letter of
credit or deposit was in effect when the work period began, but a surety bond,
irrevocable letter of credit or deposit subsequently became effective during
the work period of the contract, payment must be made from the first surety
bond, irrevocable letter of credit or deposit to become effective after the
beginning of the work period.
(4) If during a landscape job the job charges
increase to an amount that requires an increase in the bonding amount for a
landscape contracting business, any claims filed on that specific landscape job
and any other landscape jobs contracted for by this business after the
effective date of the increased bond amount will have access to the higher bond
amount. Landscape jobs that were contracted for before the effective date of a
bond increase will only have access to the bond amount in effect at the time of
entering into the contract for that job unless the job charges on that
contracted job increase to an amount requiring an equal to or greater bond
amount for the landscape contracting business.
(5) The full penal sum of the bond,
irrevocable letter of credit or deposit shall be available to pay claims under
this rule, notwithstanding that the penal sum may exceed the bond amount
required under ORS 671.690.
(6) Unless the order provides otherwise, if
an award or a final order provides that two or more respondents are jointly and
severally liable for an amount due to a claimant and payment is due from the
surety bonds, irrevocable letters of credit or deposits of the respondents,
payment shall be made in equal amounts from each bond, irrevocable letter of
credit or deposit subject to payment. If one or more of the bonds, irrevocable
letters of credit or deposits is or becomes exhausted, payment shall be made
from the remaining bond, irrevocable letter of credit or deposit or in equal
amounts from the remaining bond, irrevocable letter of credit s or deposits. If
one of the respondents liable on the claim makes payment on the claim, that
payment shall reduce the payments required from that respondent's bond,
irrevocable letter of credit or deposit under this section by an amount equal
to the payment made by the respondent.
(7) A surety company may not condition
payment of a claim on the execution of a release by claimant.
(8) An expired or terminated status of the
license of the respondent does not excuse payment by a surety company required
under this rule.
Or. Admin. R.
LCB 1-1988, f. 1-26-88,
cert. ef. 2-1-88;LCB 3-1999, f. & cert. ef. 11-17-99, Renumbered from
808-004-0060; LCB 4-2002, f. & cert. ef. 12-4-02; LCB 5-2003, f. &
cert. ef. 8-1-03; LCB 6-2005, f. 12-30-05, cert. ef. 1-1-06; LCB 3-2006, f.
& cert. ef. 8-2-06; LCB 4-2007, f. 12-19-07, cert. ef.
Stat. Auth.: ORS 183,
Stats. Implemented: ORS