(2) The department shall periodically, during the term of a home or farm loan with a variable interest rate, prescribe the interest rate to be paid by an applicant, taking into consideration the current value of the money, the solvency of the loan program and the effect of the rate on veteran applicants.
(3) Except as provided in subsection (4) of this section:
(a) The rate of interest on a loan granted on or after May 27, 1971, and originally set at five and nine-tenths percent per annum may not be increased to more than seven and nine-tenths percent per annum.
(b) The rate of interest on a loan granted on or after January 1, 1981, and originally set at seven and two-tenths percent per annum may not be increased to more than nine and two-tenths percent per annum.
(4) The department may prescribe the interest rate to be paid by an applicant at a rate greater than the rates described in subsection (3) of this section, but only if the department determines, at the sole discretion of the department, that such action is necessary to avoid invoking the provisions of Article XI-A, section 4, of the Oregon Constitution.
(5) When, during two consecutive fiscal years, the cash flow projection and the review of the projection performed under ORS 407.185 indicate that the Oregon War Veterans’ Bond Sinking Account will maintain a balance throughout the term of the projections that exceeds the succeeding years’ debt service and operating expenses for the loan program, the department shall prepare a program for reducing the interest rates charged under this section in such a manner as to ensure the future solvency and self-supporting nature of the loan program. However, no reduction in interest rates shall occur if the variable rate debt, if converted to a fixed rate, requires retention of the amounts in order to meet projections.
(6) Notwithstanding the rate prescribed for acquisition of a home as provided in subsections (1) to (5) of this section, the department may periodically establish separate and distinct interest rates for home improvement loans granted before January 1, 2020. [Formerly 407.072; 1985 c.296 §6; 1987 c.221 §7; 1989 c.171 §48; 1989 c.728 §4; 1997 c.214 §4; 2005 c.625 §36; 2019 c.223 §14]
Structure 2021 Oregon Revised Statutes
Volume : 10 - Highways, Military
Section 407.075 - Purpose; legislative intent.
Section 407.085 - Definitions.
Section 407.087 - Definition of "veteran."
Section 407.095 - Policy against foreclosure; rules.
Section 407.145 - Purchase and control of property; disbursements to protect security.
Section 407.169 - Escrow accounts; standards; interest; rules.
Section 407.195 - Loans not being amortized; identification; notice to borrowers.
Section 407.201 - Required disclosure of credit information and loan terms.
Section 407.205 - Application for loan; amount of loan; limit on number of loans.
Section 407.225 - Processing of loan application; security.
Section 407.275 - Terms of loan to veteran and transferee.
Section 407.285 - Rate of interest payable by certain transferees.
Section 407.325 - Rate of interest on loans; rules.
Section 407.327 - Department to prescribe fixed or variable interest rates.
Section 407.335 - Rate of interest payable by transferee; limit on transfers; rules.
Section 407.465 - Loan cancellation life insurance.
Section 407.480 - Definitions for ORS 407.480 to 407.490.
Section 407.485 - Agreements for mortgage insurance; terms; amount; required coverage.
Section 407.495 - Oregon War Veterans’ Fund; sources; uses.
Section 407.505 - Loan moneys to be reserved for borrower prior to loan commitment.
Section 407.515 - Oregon War Veterans’ Bond Sinking Account; sources; use.