ORS 407.275
Terms of loan to veteran and transferee
(1)
A loan may be made bearing interest at the rate per annum prescribed as provided by ORS 407.325 (Rate of interest on loans). A loan may be amortized over a period of not more than 40 years for a home other than a manufactured home. A loan for a manufactured home may be amortized over a period not exceeding the expected life of the manufactured home, as determined by the Department of Veterans’ Affairs. The limitations contained in this subsection do not preclude the department from later extending the amortization period.(2)
If the ownership of the secured property is transferred by deed or otherwise to anyone other than a veteran eligible for a loan under this chapter and Article XI-A of the Oregon Constitution, the veteran’s surviving spouse or unremarried former spouse, the veteran’s surviving child or stepchild, another veteran eligible for a loan under this chapter and Article XI-A of the Oregon Constitution who assumes the previous loan for the property as described in ORS 407.305 (Assumption of previous loan by eligible veteran) or a governmental entity when the secured property is transferred for public use, the interest from the date of transfer shall be at the rate per annum then fixed as provided by ORS 407.335 (Rate of interest payable by transferee). However, the department, during the term of the loan, may periodically prescribe the interest rates to be paid by the transferee.(3)
Ownership of property that constitutes security for a loan made to a veteran under this chapter and Article XI-A of the Oregon Constitution may not be transferred by deed or otherwise to anyone other than the veteran’s surviving spouse, unremarried former spouse, surviving child or stepchild or another veteran eligible for a loan under this chapter and Article XI-A of the Oregon Constitution who assumes the previous loan for the property as described in ORS 407.305 (Assumption of previous loan by eligible veteran), unless the property is used primarily as the principal residence of the transferee for at least two years after the transfer or such shorter period of time as the department for good cause may allow.(4)
A mortgage or trust deed on property given to secure any loan made under ORS 407.125 (Loans to qualified person) or statutes supplementary thereof may provide that the taxes and insurance premiums may be paid by the department from the Oregon War Veterans’ Bond Sinking Account. The amount so paid may be added to and become part of the principal of the loan and be repaid as prescribed by the department. The department may prescribe any method or period for repayment of the amount so paid that is not in conflict with the mortgage, the trust deed or a separate agreement. The department may prescribe any method or period for repayment of interest on the amount so paid that is not in conflict with the mortgage, the trust deed or a separate agreement with the borrower. [Formerly 407.070; 1987 c.221 §2; 1987 c.652 §6; 1987 c.767 §1; 1995 c.238 §1; 2005 c.625 §32; 2007 c.766 §1; 2019 c.223 §13]
Source:
Section 407.275 — Terms of loan to veteran and transferee, https://www.oregonlegislature.gov/bills_laws/ors/ors407.html.
See annotations under ORS 407.070 in permanent edition.
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