74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2159
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Veterans' Affairs)
CHAPTER ................
AN ACT
Relating to veterans' loans; amending ORS 407.205.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 407.205 is amended to read:
407.205. (1) Applications for loans for acquisition of a home
or farm under this chapter shall be made to the Department of
Veterans' Affairs. Loans exclusive of funds disbursed under ORS
407.145 (2) and 407.275 (4) { - shall - } { + may + } not
exceed the maximum original principal balance permitted on a
single-family first mortgage loan by the Federal National
Mortgage Association, as published in its announcements and
subsequently included in its Selling Guide, { - for a home or
$185,000 for a farm - } at a rate of interest provided by ORS
407.325. Except as provided in subsection (2) of this section, an
eligible individual { - shall - } { + may + } not receive or,
under ORS 407.305, assume more than two loans under this chapter.
{ - No - } { + An + }applicant { - is entitled to - }
{ + may not + } borrow more than the maximum amount allowed
under this section, except that when a loan is made on property
{ - which - } { + that + } is destroyed by fire or other
natural hazard, taken through condemnation or lost or disposed of
for a compelling reason devoid of fault on the part of the
applicant and when the loan is repaid or the property is
transferred by deed or otherwise, the loan may be excluded from
consideration in computing the maximum loan allowable. However,
the loan right provided in this section may be restored not more
than once while an unrepaid balance remains on a previous loan
granted to the applicant.
(2) The department may allow an eligible individual to receive
or, under ORS 407.305, assume more than two loans under this
chapter when:
(a) The loan received or assumed is an additional loan made for
the improvement of the farm or home acquired with an initial loan
for the acquisition of that property; or
(b) The last official certification of record by the United
States Department of Veterans Affairs or any branch of the Armed
Forces of the United States shows the eligible individual to be
at least 50 percent disabled. However, a loan may be made to an
eligible disabled veteran under this paragraph only if the
veteran must acquire a different principal residence for
compelling medical reasons or because the veteran is transferred
Enrolled House Bill 2159 (HB 2159-INTRO) Page 1
by an employer for employment purposes or because the veteran's
spouse is transferred by an employer for employment purposes and
the spouse provides more than 50 percent of the household income.
(3) For the purposes of this section, an applicant owns a home
when the applicant has fee simple title to the home or is the
purchaser of the home under a contract of sale or other
instrument of sale. Earnest money or preliminary sales
agreements, options or rights of first refusal are not contracts
or instruments of sale under this subsection.
(4) As used in this section, 'home' includes mobile homes and
houseboats.
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Passed by House February 8, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 28, 2007
...........................................................
President of Senate
Enrolled House Bill 2159 (HB 2159-INTRO) Page 2
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2159 (HB 2159-INTRO) Page 3