Chapter 766
AN ACT
HB 2155
Relating to amortization of veterans’ loans;
creating new provisions; and amending ORS 407.275.
Be It Enacted by the People of
the State of
SECTION 1. ORS 407.275 is amended to read:
407.275. (1) Loans may
be made bearing interest at the rate per annum prescribed as provided by ORS
407.325. Loans may be amortized over a period of not more than [30] 40 years for homes other than
mobile homes [and not more than 40 years
for farms]. Loans for mobile homes may be amortized over a period not
exceeding the expected life of the mobile home, as determined by the Department
of Veterans’ Affairs. The limitations contained in this subsection [shall] do not preclude the
department from later extending the amortization period.
(2) If the ownership of
the secured property is transferred by deed or otherwise to anyone other than [the original borrower] a veteran
eligible for a loan under this chapter and Article XI-A of the Oregon
Constitution, the veteran’s surviving spouse[,] or unremarried former spouse, the veteran’s
surviving child or stepchild [of the
original borrower], another veteran eligible for a loan under this
chapter and Article XI-A of the Oregon Constitution who assumes the previous
loan for the property as described in ORS 407.305 or a governmental entity
when the secured property is transferred for public use [or a veteran eligible for a loan under this chapter and Article XI-A of
the Oregon Constitution, who assumes the previous loan for the property as
described in ORS 407.305], the interest from the date of transfer shall be
at the rate per annum then fixed as provided by ORS 407.335. However, the
department, during the term of the loan, may periodically prescribe the
interest rates to be paid by the transferee.
(3) Ownership of
property that constitutes security for a loan made to a veteran under
this chapter and Article XI-A of the Oregon Constitution may not be transferred
by deed or otherwise to anyone other than the veteran’s surviving spouse,
unremarried former spouse, surviving child or stepchild [of the original borrower, or a] or another veteran eligible
for a loan under this chapter and Article XI-A of the Oregon Constitution[,] who assumes the previous loan for
the property as described in ORS 407.305, unless the property is used
primarily as the principal residence of the transferee for at least two years
after the transfer or such shorter period of time as the department for good
cause may allow.
(4) Mortgages,
trust deeds or security agreements on property given to secure any loan made
under ORS 407.125 or statutes supplementary thereof may provide that the taxes
and insurance premiums may be paid by the department from the Oregon War
Veterans’ Bond Sinking Account. The amount so paid may be added to and become
part of the principal of the loan and be repaid as prescribed by the
department. The department may prescribe any method or period for repayment of
the amount so paid that is not in conflict with the mortgage, trust deed or security
agreement. The department may prescribe any method or period for repayment of
interest on the amount so paid that is not in conflict with the mortgage, trust
deed, security agreement or a separate agreement with the borrower.
SECTION 2. The amendments to ORS 407.275 by section 1
of this 2007 Act apply to loans or transfers of ownership made on or after the
effective date of this 2007 Act.
Approved by the Governor July 16, 2007
Filed in the office of Secretary of State July 17, 2007
Effective date January 1, 2008
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