Chapter 46 Oregon Laws 1999

Session Law

AN ACT

SB 169

Relating to veterans' loans; amending ORS 407.385.

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

SECTION 1. ORS 407.385 is amended to read:

407.385. (1) Money received as a loan under this chapter shall be used only for the acquisition of a home or farm.

(2) Except as provided in this section, use of all or any part of a loan received under this chapter for investment or any purpose other than the acquisition of a home or farm constitutes an act of default and results in immediate acceleration of the unpaid balance of the loan.

(3) When the Director of Veterans' Affairs determines that a borrower is using loan moneys in violation of this section, the director shall immediately commence any action or proceeding necessary to recover for the state those moneys or any property obtained therewith.

(4) A failure by a borrower to move into the home or farm securing the borrower's loan and to use it as the borrower's principal residence within 60 days after the loan or assumption is made, or within such extension as may be granted in writing by the director, shall be conclusively presumed to constitute a violation of this section. A request for an extension for good cause shall be made in writing within the 60-day period. The applicant may file a written request for a hearing within 30 days after a denial of the request for extension.

(5) The director shall not approve any rental or lease of a home or farm that affects the tax exempt status of bonds issued under Article XI-A of the Oregon Constitution. When the rental or lease does not affect the tax exempt status of such bonds, the director may approve in writing the rental or lease of a home or farm after the home or farm is used as the principal residence of the borrower. The director [shall impose conditions for such approval based on the following criteria:] may establish factors to consider when determining whether to approve the rental of a home or farm.

[(a) A significant change in the economy of this state;]

[(b) A significant change in the borrower's occupation;]

[(c) The dissolution or annulment of the borrower's marriage; or]

[(d) A significant geographical relocation by the borrower.]

[(6) Approval by the director of the rental or lease of a home or farm under subsection (5) of this section shall not be granted for any period longer than 12 months.]

Approved by the Governor April 19, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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