ORS 407.325
Rate of interest on loans

  • rules

(1)

The Department of Veterans’ Affairs shall periodically prescribe the interest rate to be paid by an applicant for a home or farm acquisition loan with a fixed interest rate, taking into consideration the current value of the money, the solvency of the loan program and the effect of the rate on veteran applicants.

(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 (Cash flow projection) 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]

Source: Section 407.325 — Rate of interest on loans; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors407.­html.

See also annotations under ORS 407.072 in permanent edition.

Notes of Decisions

Department of Veteran’s Affairs may enforce increased interest rate for farm and home loans, but may not do so by unilaterally increasing veteran’s monthly mortgage payment. Associated Oregon Veterans v. DVA, 300 Or 441, 712 P2d 103 (1985)

Attorney General Opinions

Periodically fixing variable interest rates on veterans’ home loans still held by original veteran or transferred to nonveteran, (1980) Vol 40, p 503; fixing new interest rate for future veterans home loans without changing current interest rate, (1980) Vol 41, p 228

407.075
Purpose 407.085
Definitions 407.087
Definition of “veteran.” 407.095
Policy against foreclosure 407.125
Loans to qualified person 407.131
Discount of principal 407.135
Authority of department 407.145
Purchase and control of property 407.155
Execution and custody of documents 407.165
Authority to hold certain funds received from borrower 407.169
Escrow accounts 407.177
Loan processing and servicing contracts with lending institutions 407.179
Additional powers delegated to lending institution 407.181
Authority of lending institution 407.185
Cash flow projection 407.195
Loans not being amortized 407.201
Required disclosure of credit information and loan terms 407.205
Application for loan 407.215
Certain loans excludable from maximum loan amount 407.225
Processing of loan application 407.275
Terms of loan to veteran and transferee 407.285
Rate of interest payable by certain transferees 407.295
Transfer to spouse 407.305
Assumption of previous loan by eligible veteran 407.315
Interest rate for veteran’s assumption 407.325
Rate of interest on loans 407.327
Department to prescribe fixed or variable interest rates 407.335
Rate of interest payable by transferee 407.349
Late charges authorized for periodic payments 407.375
Sale of foreclosed properties 407.377
Sale or management of foreclosed property under personal services contract 407.385
Prohibition against using loan for purpose other than farm or home acquisition 407.415
Issuance of bonds 407.425
Factors considered before requesting bond issuance 407.435
Issuance of bonds for tax payment 407.465
Loan cancellation life insurance 407.475
Persons insurable under ORS 407.465 407.480
Definitions for ORS 407.480 to 407.490 407.485
Agreements for mortgage insurance 407.490
Mortgage insurance claims 407.495
Oregon War Veterans’ Fund 407.505
Loan moneys to be reserved for borrower prior to loan commitment 407.515
Oregon War Veterans’ Bond Sinking Account 407.525
Transfer of sinking account moneys to veterans’ fund 407.555
Auditing and payment of claims 407.565
Revolving account 407.595
Loans not subject to execution or assignment
Green check means up to date. Up to date

Current through early 2024

§ 407.325’s source at oregon​.gov