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Law states that you have to be 21 to purchase a handgun. 18 to posses/own one.. so If you read it how its written, yes, its illegal. not much of a grey area if ya ask me.
This is the best thread I've seen on the issue...
http://www.northwestfirearms.com/forum/showthread.php?t=11086
The general consensus is that yes, private sale to an 18-20yr old is legal.
166.470 Limitations and conditions for sales of firearms. (1) Unless relief has been granted under ORS 166.274, 18 U.S.C. 925(c) or the expunction laws of this state or an equivalent law of another jurisdiction, a person may not intentionally sell, deliver or otherwise transfer any firearm when the transferor knows or reasonably should know that the recipient:
(a) Is under 18 years of age;
(b) Has been convicted of a felony or found guilty, except for insanity under ORS 161.295, of a felony;
(c) Has any outstanding felony warrants for arrest;
(d) Is free on any form of pretrial release for a felony;
(e) Was committed to the Department of Human Services under ORS 426.130;
(f) After January 1, 1990, was found to be mentally ill and subject to an order under ORS 426.130 that the person be prohibited from purchasing or possessing a firearm as a result of that mental illness; or
(g) Has been convicted of a misdemeanor involving violence or found guilty, except for insanity under ORS 161.295, of a misdemeanor involving violence within the previous four years. As used in this paragraph, "misdemeanor involving violence" means a misdemeanor described in ORS 163.160, 163.187, 163.190, 163.195 or 166.155 (1)(b).
(2) A person may not sell, deliver or otherwise transfer any firearm that the person knows or reasonably should know is stolen.
(3) Subsection (1)(a) of this section does not prohibit:
(a) The parent or guardian, or another person with the consent of the parent or guardian, of a minor from transferring to the minor a firearm, other than a handgun; or
(b) The temporary transfer of any firearm to a minor for hunting, target practice or any other lawful purpose.
(4) Violation of this section is a Class A misdemeanor. [Amended by 1989 c.839 §3; 1991 c.67 §40; 1993 c.735 §11; 2001 c.828 §2; 2003 c.577 §7]
VII. SELL, DELIVER OR TRANSFER TO JUVENILE
18 U.S.C. § 922(b)(1) prohibits a Federal firearms licensee from selling or
delivering a firearm or ammunition to a person under 18, and prohibits selling
or delivering a firearm other than a shotgun or rifle, or ammunition other than
for a shotgun or rifle, to any person under 21. Punishable by up to 5 years.
18 U.S.C. § 922(x) makes it unlawful, with exceptions, to sell, deliver or
transfer a handgun, or ammunition suitable for handguns only, to a juvenile
(person less than 18 years of age). Punishable by up to 1 year imprisonment.
Exactly. 18 is the MINIMUM age to own a handgun.