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| Home > Statutes > Usa Oregon |
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USA Statutes : oregon
Title : TITLE 08 COMMERCIAL TRANSACTIONS
Chapter : Chapter 82 Interest; Repayment Restrictions
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(1) The rate of
interest for the following transactions, if the parties have not
otherwise agreed to a rate of interest, is nine percent per annum and is
payable on:
(a) All moneys after they become due; but open accounts bear
interest from the date of the last item thereof.
(b) Money received to the use of another and retained beyond a
reasonable time without the owner’s express or implied consent.
(c) Money due or to become due where there is a contract to pay
interest and no rate specified.
(2) Except as provided in this subsection, the rate of interest on
judgments for the payment of money is nine percent per annum. The
following apply as described:
(a) Interest on a judgment under this subsection accrues from the
date of the entry of the judgment unless the judgment specifies another
date.
(b) Interest on a judgment under this subsection is simple
interest, unless otherwise provided by contract.
(c) Interest accruing from the date of the entry of a judgment
shall also accrue on interest that accrued before the date of entry of a
judgment.
(d) Interest under this subsection shall also accrue on attorney
fees and costs entered as part of the judgment.
(e) A judgment on a contract bearing more than nine percent
interest shall bear interest at the same rate provided in the contract as
of the date of entry of the judgment.
(f) The rate of interest on a judgment rendered in favor of a
plaintiff in a civil action to recover damages for injuries resulting
from the professional negligence of a person licensed by the Board of
Medical Examiners under ORS chapter 677 or the Oregon State Board of
Nursing under ORS 678.010 to 678.410 is the lesser of five percent per
annum or three percent in excess of the discount rate in effect at the
Federal Reserve Bank in the Federal Reserve district where the injuries
occurred.
(3) Except as provided in ORS 82.025, no person shall:
(a) Make a business or agricultural loan of $50,000 or less at an
annual rate of interest exceeding the greater of 12 percent, or five
percent in excess of the discount rate, including any surcharge on the
discount rate, on 90-day commercial paper in effect at the Federal
Reserve Bank in the Federal Reserve district where the person making the
loan is located, on the date the loan or the initial advance of funds
under the loan is made; or
(b) Make a loan of $50,000 or less, except a loan made under
paragraph (a) of this subsection, at an annual rate of interest exceeding
the greater of 12 percent, or five percent in excess of the discount rate
on 90-day commercial paper in effect at the Federal Reserve Bank in the
Federal Reserve district where the person making the loan is located, on
the date the loan or the initial advance of funds under the loan is made.
(4) Any person who violates subsection (3) of this section shall
forfeit the right to collect or receive any interest upon any loan for
which a greater rate of interest or consideration than is permitted by
subsection (3) of this section has been charged, contracted for or
received. The borrower upon such loan shall be required to repay only the
principal amount borrowed. [Amended by 1959 c.365 §a; 1973 c.198 §1; 1975
c.61 §1; 1977 c.791 §1; 1979 c.655 §1; 1979 c.794 §1; 1981 c.412 §1; 1987
c.215 §18; 1987 c.873 §26; 2003 c.774 §1] (1) If,
pursuant to any arrangement, understanding or agreement, with the
knowledge of the lender, either as a part of the contract of borrowing or
collateral thereto, regardless of when made and whether it is made as a
special arrangement or in conformity to a regular rule, regulation or
practice, there is paid by or at the expense of the borrower to the
lender, or the lender’s broker, officer, director or agent, with respect
to or in connection with any loan to which ORS 82.010 applies, any
commission, bonus, fee, premium, penalty or other charge, compensation or
gratuity, whether in money, credit or other thing of value, as a
consideration, compensation or inducement for obtaining any such loan, or
any renewal, extension of forbearance thereof, the same shall be deemed a
part of the interest charged on such loan.
(2) In computing interest for the purposes of ORS 82.010, any bona
fide commission paid or sustained by the borrower shall be computed for
the contract term and not for any accelerated period or prepayment.
(3) Notwithstanding subsection (1) of this section, the following
charges shall not be deemed a part of the interest charged on a loan:
(a) Reasonable amounts actually applied in payment of the expense
of inspecting any security offered in connection with the loan,
investigating the responsibility of the applicant or procuring or
extending any abstract of title or certificate of title insurance
covering such security;
(b) The amount actually paid for the examination of any such
abstract of title or certificate of insurance; or
(c) The cost of the preparation, execution and recording of any
papers necessary in consummating such loan. [1987 c.215 §20]
(1) Any financial institution or trust company, as those terms are
defined in ORS 706.008, any consumer finance licensee under ORS chapter
725, or any pawnbroker licensed under ORS chapter 726.
(2) Any lender approved by the Secretary of Housing and Urban
Development of the United States for participation in any mortgage
insurance program under the National Housing Act (12 U.S.C. 1701 et seq.).
(3) Any loan secured by a first lien on real property or made to
finance the acquisition of real property and secured by any lien on that
property.
(4) Any loan which is secured by real property, which is scheduled
under the loan agreement to be repaid in substantially equal payments and
which is made by a lender described in this subsection. A lender under
this subsection is one who makes, invests in or arranges real property
loans, including loans secured by first liens on residential manufactured
homes, aggregating more than $1 million per year. Under this subsection,
payments shall be “substantially equal” if, under the terms of the loan
agreement, no single scheduled payment is more than twice the amount of
any other scheduled payment.
(5) Any loan wholly or partially secured or covered by guarantees
or insurance by the Federal Housing Administration, the United States
Department of Veterans Affairs or the Farmers Home Administration of the
United States, any department, bureau, board, commission or agency of the
United States, or any corporation wholly owned, directly or indirectly by
the United States.
(6) Any loan permitted under applicable federal law and regulations
from a tax qualified retirement plan to a person then a participant under
the plan.
(7) Any bona fide sale or resale of securities or commercial paper.
(8) Any interest charge by broker-dealers registered under the
Securities Exchange Act of 1934 for carrying a debit balance in an
account for a customer if the debit balance is payable on demand and
secured by stocks or bonds. [1987 c.215 §21; 1991 c.67 §13; 1997 c.631
§382]REPAYMENT RESTRICTIONS
(1) “Loan” means a loan of money that is primarily for personal,
family or household use made by a person who is regularly engaged in the
business of lending money.
(2) “Loan agreement” means the written document issued in
connection with a loan that sets forth the terms upon which the loan is
made. [1973 c.611 §3; 1987 c.716 §1](1) If a loan agreement provides for a
penalty to be charged for repaying the loan prior to the date provided
for repayment in the loan agreement, the loan agreement shall contain in
printing or writing of a size equal to at least 10-point bold or
underlined type substantially the following notice:
___________________________________________________________________________
___NOTICE TO THE BORROWER
Do not sign this loan agreement before you read it. This loan
agreement provides for the payment of a penalty if you wish to repay the
loan prior to the date provided for repayment in the loan agreement.
___________________________________________________________________________
___ (2) If a loan agreement does not contain a notice as required by
subsection (1) of this section, a lender shall not collect from the
borrower a penalty for payment of the loan prior to the date provided for
repayment. [1973 c.611 §1; 1985 c.359 §1](1) If a loan
agreement authorizes the lender to refuse to accept repayment of the loan
prior to the date provided for repayment in the loan agreement, the loan
agreement shall contain in printing or writing of a size equal to at
least 10-point bold or underlined type substantially the following notice:
___________________________________________________________________________
___NOTICE TO THE BORROWER
Do not sign this loan agreement before you read it. This loan
agreement authorizes the lender to refuse to accept repayment of the loan
prior to the date provided for repayment in the loan agreement.
___________________________________________________________________________
___ (2) If a loan agreement does not contain a notice as required by
subsection (1) of this section, a lender shall not refuse to accept
repayment of the loan by the borrower prior to the date provided for
repayment. [1973 c.611 §2; 1985 c.359 §2]
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