ORS Chapter 407
Chapter 407 — VeteransLoans
2009 EDITION
VETERANSLOANS
BENEFITSOF VETERANS AND SERVICE PERSONNEL
GENERALPROVISIONS
407.075 Purpose;legislative intent
407.085 Definitions
407.095 Policyagainst foreclosure; rules
407.115 Administrationof loan program; rules
407.125 Loansto qualified person
407.131 Discountof principal; rules
407.135 Authorityof department; disposition of certain moneys
407.145 Purchaseand control of property; disbursements to protect security
407.155 Executionand custody of documents
407.165 Authorityto hold certain funds received from borrower
407.169 Escrowaccounts; standards; interest; rules
407.177 Loanprocessing and servicing contracts with lending institutions; terms; procedures
407.179 Additionalpowers delegated to lending institution; authority retained by department
407.181 Authorityof lending institution
407.185 Cashflow projection; annual review; report
407.195 Loansnot being amortized; identification; notice to borrowers
407.201 Requireddisclosure of credit information and loan terms
LOANPROCEDURES AND CONDITIONS
407.205 Applicationfor loan; amount of loan; limit on number of loans; exception
407.215 Loantransferred by annulment or dissolution judgment excluded in determiningmaximum allowable
407.225 Investigationand processing of loan application; security; maximum amounts of loans
407.265 Loansfor home or farm improvements; terms and conditions
407.275 Termsof loan to veteran and transferee
407.285 Rateof interest payable by certain transferees
407.295 Transferto spouse; notice to department; notice of delinquent payment
407.305 Assumptionof previous loan by eligible veteran; additional funds
407.315 Interestrate for veteran’s assumption; variable rate; effect of rate on cash flow;rules
407.325 Rateof interest on loans
407.327 Departmentto prescribe fixed or variable interest rates
407.335 Rateof interest payable by transferee; limit on transfers; rules
407.349 Latecharges authorized for periodic payments
407.375 Saleof foreclosed properties; improvement in lieu of down payment; interest rate;redemption of property; rules
407.377 Saleor management of foreclosed property under personal services contract
407.385 Prohibitionagainst using loan for purpose other than farm or home acquisition; prompt useof farm or home as principal residence; extension; exception; penalty
GENERALOBLIGATION BONDS
407.415 Issuanceof bonds
407.425 Factorsconsidered before requesting bond issuance
407.435 Issuanceof bonds for tax payment; conditions; term
LIFEAND MORTGAGE INSURANCE
407.465 Loancancellation life insurance
407.475 Personsinsurable under ORS 407.465
407.480 Definitionsfor ORS 407.480 to 407.490
407.485 Agreementsfor mortgage insurance; terms; amount; required coverage
407.490 Mortgageinsurance claims; liability of department
FINANCES
407.495 OregonWar Veterans’ Fund; sources; uses
407.505 Loanmoneys to be reserved for borrower prior to loan commitment
407.515 OregonWar Veterans’ Bond Sinking Account; sources; use
407.525 Transferof sinking account moneys to veterans’ fund; retransfer
407.555 Auditingand payment of claims
407.565 Revolvingaccount
VETERANS’SMALL BUSINESS REPAIR LOAN PROGRAM
407.582 Establishmentof program; eligibility; rules
407.585 Veterans’Small Business Repair Loan Fund
MISCELLANEOUS
407.595 Loansnot subject to execution or assignment
407.010 [Amended by1975 c.219 §1; 1977 c.383 §6; subsection (3) enacted as 1977 c.383 §9; 1979c.176 §1; 1981 c.661 §1; 1982 s.s. 1 c.11 §10; 1983 c.445 §1; renumbered407.085]
407.020 [Amended by1967 c.245 §1; 1971 c.221 §2; renumbered 407.115]
407.030 [Amended by1977 c.383 §8; renumbered 407.125]
407.035 [1981 c.659 §7;renumbered 407.505]
407.040 [Amended by1953 c.97 §2; 1957 c.125 §1; 1963 c.163 §1; 1965 c.269 §1; 1967 c.112 §1; 1969c.615 §1; 1971 c.221 §3; 1973 c.574 §1; 1975 c.6 §1; 1975 c.263 §1; 1977 c.676 §3;1979 c.177 §1; 1981 c.604 §1; 1982 s.s.1 c.11 §12; 1983 c.387 §1; renumbered407.205]
407.042 [1981 c.366 §2;renumbered 407.385]
407.043 [1977 c.676 §2;renumbered 407.397]
407.045 [1969 c.523 §1;renumbered 407.215]
407.048 [1977 c.315 §2;1981 c.628 §1; 1982 s.s.1 c.11 §13; 1983 c.445 §4; renumbered 407.255]
407.050 [Amended by1957 c.125 §2; 1971 c.221 §4; 1973 c.574 §2; 1975 c.219 §2; renumbered 407.225]
407.055 [1977 c.383 §1;1981 c.565 §3; 1983 c.445 §5; renumbered 407.175]
407.058 [1977 c.383 §3;1983 c.445 §6; renumbered 407.235]
407.060 [Repealed by1971 c.743 §432]
407.061 [1977 c.383 §4;1983 c.445 §7; renumbered 407.245]
407.063 [1981 c.387 §1;1982 s.s.1 c.11 §14; renumbered 407.305]
407.065 [1979 c.176 §3;renumbered 407.265]
407.070 [Amended by1955 c.151 §1; 1957 c.125 §3; 1969 c.615 §5; 1971 c.221 §5; 1975 c.219 §3; 1977c.676 §4; 1981 c.387 §2; 1982 s.s.1 c.11 §17; renumbered 407.275]
407.072 [1969 c.615 §3;1971 c.221 §6; 1975 c.219 §4; 1977 c.645 §1; 1981 c.659 §5; renumbered 407.325]
407.073 [1969 c.615 §4;1971 c.221 §7; 1977 c.676 §5; 1983 c.420 §3; renumbered 407.335]
407.074 [1955 c.102 §§2,3,7;1975 c.219 §5; 1979 c.238 §1; renumbered 407.465]
GENERALPROVISIONS
407.075Purpose; legislative intent. (1) The provisions of this chapter areintended to carry out the purposes of Article XI-A of the Oregon Constitution.The Legislative Assembly recognizes that its authority to define the scope andpurpose of this chapter is limited by the purposes expressed in Article XI-A.
(2)The primary purpose of this chapter is to provide loan funds to qualifyingOregon veterans for the acquisition or improvement of farms and homes. TheLegislative Assembly does not intend, by any past or present enactment, toestablish as a principal purpose of this chapter the providing of subsidizedenergy financing. [1983 c.445 §9]
Note: 407.075 wasenacted into law by the Legislative Assembly but was not added to or made apart of ORS chapter 407 or any series therein by legislative action. SeePreface to Oregon Revised Statutes for further explanation.
407.076 [1955 c.102 §§4,5,6;1969 c.433 §1; 1979 c.35 §1; 1979 c.238 §2; renumbered 407.475]
407.080 [Amended by1975 c.219 §6; renumbered 407.135]
407.085Definitions.(1) As used in Article XI-A, Oregon Constitution, and this chapter, for thepurposes of administration:
(a)“Acquisition” means:
(A)Purchase and improvement of a home or farm.
(B)Payment of the balance of the purchase price and interest on a purchasecontract, and the improvement of property thereby acquired.
(C)Refinance of an existing purchase-money mortgage or mortgage in the naturethereof, and the improvement of property thereby purchased.
(D)Improvement of a home or farm.
(b)“Bonds” includes, but is not limited to, serial bonds, term bonds, notes,obligations, lines of credit, revolving credit agreements, loans, financingagreements or other evidence of indebtedness determined by the Department ofVeterans’ Affairs, with the approval of the State Treasurer, to be necessary ordesirable to provide funds for the purposes expressed in Article XI-A of theOregon Constitution.
(2)As used in this chapter:
(a)“Committee” means the Advisory Committee provided for by ORS 406.210.
(b)“Home” means any residential-type structure, including outbuildings and thereal property in connection with it, if any, including long-term leaseholds,which is established, maintained and used primarily as a principal residence bythe veteran.
(c)“Improvement” means new construction or any necessary or beneficial additions,alterations or changes appurtenant to the home or farm which protect or improvethe basic livability or energy efficiency of the premises.
(d)“Mobile home” means a structure, transportable in one or more sections, whichis 10 feet or more in width, and contains more than 500 square feet of livingspace figured on exterior dimensions of the structure, exclusive of any hitchand is designed to be used as a dwelling by one family, and which remains aspersonal property under the laws of this state. [Formerly 407.010; 2001 c.98 §5;2005 c.625 §15]
Note: Section 1,chapter 527, Oregon Laws 2009, does not become effective unless the amendmentto the Oregon Constitution proposed by House Joint Resolution 7 (2009) isapproved by the people at the regular general election held on November 2,2010. If House Joint Resolution 7 (2009) is approved by the people, section 1,chapter 527, Oregon Laws 2009, becomes effective January 1, 2011. See section2, chapter 527, Oregon Laws 2009. Section 1, chapter 527, Oregon Laws 2009,provides:
Sec.1.As used in section 3, Article XI-A of the Oregon Constitution, “veteran” meansa person who:
(1)Served on active duty with the Armed Forces of the United States:
(a)For a period of more than 90 consecutive days beginning on or before January31, 1955, and was discharged or released from active duty under honorableconditions;
(b)For a period of more than 178 consecutive days beginning after January 31,1955, and was discharged or released from active duty under honorableconditions;
(c)For 178 days or less and was discharged or released from active duty underhonorable conditions because of a service-connected disability;
(d)For 178 days or less and was discharged or released from active duty underhonorable conditions and has a disability rating from the United States Departmentof Veterans Affairs; or
(e)For at least one day in a combat zone and was discharged or released fromactive duty under honorable conditions;
(2)Received a combat, expeditionary or campaign ribbon or medal for service in theArmed Forces of the United States and was discharged or released from activeduty under honorable conditions; or
(3)Is receiving a nonservice-connected pension from the United States Departmentof Veterans Affairs. [2009 c.527 §1]
407.095Policy against foreclosure; rules. (1) It is the policy of the State ofOregon to make every reasonable attempt to keep a veteran in the home purchasedunder the loan program when the veteran is unabl