ORS Chapter 82
Chapter 82 — Interest;Repayment Restrictions
2009 EDITION
INTEREST;REPAYMENT RESTRICTIONS
COMMERCIALTRANSACTIONS
INTEREST
82.010 Legalrate of interest; effect of violation
82.020 Computationof interest; charges not included
82.025 Exemptionsfrom application of ORS 82.010 (3) and (4) and 82.020
REPAYMENTRESTRICTIONS
82.150 Definitionsfor ORS 82.160 and 82.170
82.160 Noticeto borrower of penalty for repayment prior to date for repayment in loanagreement
82.170 Noticeto borrower of lender authority to refuse to accept repayment prior to date forrepayment in loan agreement
82.005 [1979 c.655 §2;repealed by 1981 c.412 §24]
INTEREST
82.010Legal rate of interest; effect of violation. (1) The rate of interest for thefollowing transactions, if the parties have not otherwise agreed to a rate ofinterest, is nine percent per annum and is payable on:
(a)All moneys after they become due; but open accounts bear interest from the dateof the last item thereof.
(b)Money received to the use of another and retained beyond a reasonable timewithout the owner’s express or implied consent.
(c)Money due or to become due where there is a contract to pay interest and norate specified.
(2)Except as provided in this subsection, the rate of interest on judgments forthe payment of money is nine percent per annum. The following apply asdescribed:
(a)Interest on a judgment under this subsection accrues from the date of the entryof the judgment unless the judgment specifies another date.
(b)Interest on a judgment under this subsection is simple interest, unlessotherwise provided by contract.
(c)Interest accruing from the date of the entry of a judgment shall also accrue oninterest that accrued before the date of entry of a judgment.
(d)Interest under this subsection shall also accrue on attorney fees and costsentered as part of the judgment.
(e)A judgment on a contract bearing more than nine percent interest shall bearinterest at the same rate provided in the contract as of the date of entry ofthe judgment.
(f)The rate of interest on a judgment rendered in favor of a plaintiff in a civilaction to recover damages for injuries resulting from the professionalnegligence of a person licensed by the Oregon Medical Board under ORS chapter 677or the Oregon State Board of Nursing under ORS 678.010 to 678.410 is the lesserof five percent per annum or three percent in excess of the discount rate ineffect at the Federal Reserve Bank in the Federal Reserve district where theinjuries occurred.
(3)Except as provided in ORS 82.025, no person shall:
(a)Make a business or agricultural loan of $50,000 or less at an annual rate ofinterest exceeding the greater of 12 percent, or five percent in excess of thediscount rate, including any surcharge on the discount rate, on 90-daycommercial paper in effect at the Federal Reserve Bank in the Federal Reservedistrict where the person making the loan is located, on the date the loan orthe initial advance of funds under the loan is made; or
(b)Make a loan of $50,000 or less, except a loan made under paragraph (a) of thissubsection, at an annual rate of interest exceeding the greater of 12 percent,or five percent in excess of the discount rate on 90-day commercial paper ineffect at the Federal Reserve Bank in the Federal Reserve district where theperson making the loan is located, on the date the loan or the initial advanceof funds under the loan is made.
(4)Any person who violates subsection (3) of this section shall forfeit the rightto collect or receive any interest upon any loan for which a greater rate ofinterest or consideration than is permitted by subsection (3) of this sectionhas been charged, contracted for or received. The borrower upon such loan shallbe required to repay only the principal amount borrowed. [Amended by 1959 c.365§a; 1973 c.198 §1; 1975 c.61 §1; 1977 c.791 §1; 1979 c.655 §1; 1979 c.794 §1;1981 c.412 §1; 1987 c.215 §18; 1987 c.873 §26; 2003 c.774 §1]
82.020Computation of interest; charges not included. (1) If, pursuantto any arrangement, understanding or agreement, with the knowledge of thelender, either as a part of the contract of borrowing or collateral thereto,regardless of when made and whether it is made as a special arrangement or inconformity to a regular rule, regulation or practice, there is paid by or atthe expense of the borrower to the lender, or the lender’s broker, officer,director or agent, with respect to or in connection with any loan to which ORS82.010 applies, any commission, bonus, fee, premium, penalty or other charge,compensation or gratuity, whether in money, credit or other thing of value, asa consideration, compensation or inducement for obtaining any such loan, or anyrenewal, extension of forbearance thereof, the same shall be deemed a part ofthe interest charged on such loan.
(2)In computing interest for the purposes of ORS 82.010, any bona fide commissionpaid or sustained by the borrower shall be computed for the contract term andnot for any accelerated period or prepayment.
(3)Notwithstanding subsection (1) of this section, the following charges shall notbe deemed a part of the interest charged on a loan:
(a)Reasonable amounts actually applied in payment of the expense of inspecting anysecurity offered in connection with the loan, investigating the responsibilityof the applicant or procuring or extending any abstract of title or certificateof title insurance covering such security;
(b)The amount actually paid for the examination of any such abstract of title orcertificate of insurance; or
(c)The cost of the preparation, execution and recording of any papers necessary inconsummating such loan. [1987 c.215 §20]
82.025Exemptions from application of ORS 82.010 (3) and (4) and 82.020. ORS 82.010 (3)and (4) and 82.020 do not apply to:
(1)Any financial institution or trust company, as those terms are defined in ORS706.008, any consumer finance licensee under ORS chapter 725 or any pawnbrokerlicensed under ORS chapter 726.
(2)Any lender approved by the Secretary of Housing and Urban Development of theUnited States for participation in any mortgage insurance program under theNational Housing Act (12 U.S.C. 1701 et seq.).
(3)Any loan secured by a first lien on real property or made to finance theacquisition of real property and secured by any lien on that property.
(4)Any loan that is secured by real property, scheduled under the loan agreementto be repaid in substantially equal payments and made by a lender described inthis subsection. A lender under this subsection is one who makes, invests in orarranges real property loans, including loans secured by first liens onresidential manufactured homes, aggregating more than $1 million per year.Under this subsection, payments shall be substantially equal if, under theterms of the loan agreement, no single scheduled payment is more than twice theamount of any other scheduled payment.
(5)Any loan wholly or partially secured or covered by guarantees or insurance bythe Federal Housing Administration, the United States Department of VeteransAffairs or Rural Development or the Farm Service Agency of the United StatesDepartment of Agriculture, any department, bureau, board, commission or agencyof the United States, or any corporation wholly owned, directly or indirectlyby the United States.
(6)Any loan permitted under applicable federal law and regulations from a taxqualified retirement plan to a person then a participant under the plan.
(7)Any bona fide sale or resale of securities or commercial paper.
(8)Any interest charge by broker-dealers registered under the Securities ExchangeAct of 1934 for carrying a debit balance in an account for a customer if thedebit balance is payable on demand and secured by stocks or bonds. [1987 c.215 §21;1991 c.67 §13; 1997 c.631 §382; 2007 c.71 §17]
82.110 [Repealed by1981 c.412 §24]
82.115 [1975 c.625 §2;1977 c.791 §2; repealed by 1981 c.412 §24]
82.117 [1979 c.638 §2;repealed by 1981 c.412 §24]
82.120 [Amended by1975 c.321 §1; 1979 c.284 §90; repealed by 1981 c.412 §24]
82.125 [1971 c.214 §2;repealed by 1981 c.412 §24]
82.130 [Repealed by1981 c.412 §24]
82.140 [Repealed by1981 c.412 §24]
REPAYMENTRESTRICTIONS
82.150Definitions for ORS 82.160 and 82.170. As used in ORS 82.160 and 82.170:
(1)“Loan” means a loan of money that is primarily for personal, family orhousehold use made by a person who is regularly engaged in the business oflending money.
(2)“Loan agreement” means the written document issued in connection with a loanthat sets forth the terms upon which the loan is made. [1973 c.611 §3; 1987c.716 §1]
82.160Notice to borrower of penalty for repayment prior to date for repayment in loanagreement.(1) If a loan agreement provides for a penalty to be charged for repaying theloan prior to the date provided for repayment in the loan agreement, the loanagreement shall contain in printing or writing of a size equal to at least10-point bold or underlined type substantially the following notice:
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NOTICETO THE BORROWER
Donot sign this loan agreement before you read it. This loan agreement providesfor the payment of a penalty if you wish to repay the loan prior to the dateprovided for repayment in the loan agreement.
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(2)If a loan agreement does not contain a notice as required by subsection (1) ofthis section, a lender shall not collect from the borrower a penalty for paymentof the loan prior to the date provided for repayment. [1973 c.611 §1; 1985c.359 §1]
82.170Notice to borrower of lender authority to refuse to accept repayment prior todate for repayment in loan agreement. (1) If a loan agreement authorizes thelender to refuse to accept repayment of the loan prior to the date provided forrepayment in the loan agreement, the loan agreement shall contain in printingor writing of a size equal to at least 10-point bold or underlined typesubstantially the following notice:
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NOTICETO THE BORROWER
Donot sign this loan agreement before you read it. This loan agreement authorizesthe lender to refuse to accept repayment of the loan prior to the date providedfor repayment in the loan agreement.
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(2)If a loan agreement does not contain a notice as required by subsection (1) ofthis section, a lender shall not refuse to accept repayment of the loan by theborrower prior to the date provided for repayment. [1973 c.611 §2; 1985 c.359 §2]
82.300 [1989 c.578 §1;repealed by 1997 c.182 §7]
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