ORS 599.251 Procedure on licensee’s default as to condition of bond

Upon default of a licensee as to any condition of the bond required by ORS 599.245, the State Department of Agriculture shall:

Give reasonable notice to persons to file claims with the department.

Fix a reasonable time within which such filing shall be done.

Investigate each claim so filed and reasonably verify the circumstances under which the claims accrued and the good faith of the claimants.

With the approval of the claimants who filed claims, the department may settle such claims with the surety, without filing legal action. Such settlement unless appealed to the circuit court within 30 days as provided by law, is final between the surety and all claimants covered by the bond.

If any claimant, or the surety, does not agree with the findings of the department, the department shall file a declaratory judgment action without right to jury trial in the circuit court in the name of the State of Oregon for the benefit of the claimants as authorized by ORS chapter 28. Unless appealed as prescribed by law, the order of the court shall be final between the surety and all claimants covered by the bond.