Chapter 49 Oregon Laws 2003

AN ACT

SB 193

Relating to veterans' home loans; amending ORS 407.225; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 407.225 is amended to read:

407.225. (1) When the Director of Veterans' Affairs receives an application pursuant to ORS 407.205, the director shall immediately investigate and process it as provided by law. The security for the loan shall consist of the property to be acquired by the veteran as a home or a farm. The security shall be secured by a mortgage or security agreement in the full amount of the loan which mortgage or security agreement shall be either a first lien or a lien insured by mortgagee's title insurance against loss from any prior encumbrance. The director may make subsequent loans for improvements to the security if there are no intervening liens between the first lien of the director created under this section and the recorded liens upon the security securing repayment of such subsequent improvement loans. Such consecutive liens, for the purposes of this chapter, shall be deemed collectively as a first lien upon the security. The mortgage or security agreement shall provide that the borrower, or any subsequent owner of the secured property, may pay all or any part of the loan at any time without penalty.

(2) A mobile home shall be secured by a security agreement in the full amount of the loan and the director shall perfect a security interest in favor of the State of Oregon. The security agreement shall provide that the borrower or any subsequent owner of the mobile home, may pay all or any part of the loan at any time without penalty. The security agreement shall provide for immediate acceleration of the unpaid balance of the loan if the mobile home is moved from the original site listed in the security agreement without first obtaining the written consent of the director. The security agreement shall also provide that removal of the mobile home to a site outside of this state shall constitute an act of default and result in immediate acceleration of the unpaid balance of the loan.

(3) Loans shall not exceed: [95] 97 percent of the net appraised value on homes which are real property; 85 percent of the net appraised value on homes which are not real property; and 90 percent of the net appraised value on farms which are real property.

SECTION 2. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor April 2, 2003

Filed in the office of Secretary of State April 2, 2003

Effective date April 2, 2003

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