(2) Except as provided in subsections (5) and (7) of this section, any lender who requires a lender’s security protection provision in connection with a real estate loan agreement shall pay interest to the borrower on funds deposited in the account at a rate not less than the discount rate. The discount rate shall be determined with reference to the most recent auction date before May 15 and November 15 each year.
(3) The rate of interest payable on the account shall be adjusted semiannually to reflect changes in the discount rate. These adjustments shall be calculated on May 15 and November 15 each year. Adjustments calculated on May 15 shall take effect on the following July 1, and adjustments calculated on November 15 shall take effect on the following January 1.
(4) Interest shall be computed on the average monthly balance in the account and shall be paid not less than quarterly to the borrower by crediting to the escrow account the amount of the interest due.
(5) Except as provided in subsection (6) of this section, this section does not apply to real estate loan agreements entered into prior to September 1, 1975, or on which the payment of interest on a lender’s security protection provision violates any state or federal law or regulation.
(6) If federal law or regulation does not prohibit the payment of interest on a lender’s security protection provision by federally chartered or organized lenders, this section applies to the federally chartered or organized lenders and the state chartered or organized lenders that are similar to the federally chartered or organized lenders with respect to a lender’s security protection provision executed in connection with real estate loan agreement entered into prior to and in existence on September 1, 1975.
(7) This section does not apply to real estate loan agreements made by, held for sale to or sold to the State of Oregon. [1975 c.337 §8; 1979 c.327 §29; 1983 c.492 §1; 1987 c.577 §2; 1995 c.182 §2; 1997 c.68 §1; 2005 c.3 §1]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Chapter 086 - Mortgages; Trust Deeds
Section 86.095 - Acts not affecting priority of lien of credit instrument.
Section 86.150 - Loan agreements and promissory notes to state maximum prepayment privilege penalty.
Section 86.160 - Definitions for ORS 86.160 to 86.185.
Section 86.205 - Definitions for ORS 86.205 to 86.275.
Section 86.245 - Interest on security protection deposits; exception.
Section 86.265 - Effect of lender violation of ORS 86.205 to 86.275.
Section 86.705 - Definitions for ORS 86.705 to 86.815.
Section 86.736 - Certificate of compliance; expiration.
Section 86.741 - Attorney General duties and powers; payments; rules.
Section 86.744 - Foreclosure Avoidance Fund.
Section 86.752 - Foreclosure by advertisement and sale.
Section 86.756 - Notice to grantor; requirements; additional forms; rules.
Section 86.761 - Failure to give notice to grantor; remedy.
Section 86.764 - Notice of sale for certain persons.
Section 86.771 - Contents of notice of sale; additional notices; contents and requirements.
Section 86.774 - Service and publication of notice; recording proof of compliance.
Section 86.778 - Discontinuance of foreclosure proceedings after cure of default.
Section 86.786 - Request for information from trustee.
Section 86.789 - Information provided by trustee.
Section 86.794 - Disposition of proceeds of sale.
Section 86.797 - Effect of sale; actions for deficiency; restrictions.
Section 86.812 - Impermissible conditions for approving short sale or sale of note; exceptions.
Section 86.815 - Time within which foreclosure must be commenced.