72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 193
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for the Office of the Governor)
CHAPTER ................
AN ACT
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
Enrolled Senate Bill 193 (SB 193-INTRO) Page 1
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. + }
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Passed by Senate February 5, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House March 19, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 193 (SB 193-INTRO) Page 2
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 193 (SB 193-INTRO) Page 3