Oregon Administrative Code

441-730-0050 Notes and Agreements (1) All forms of notes and agreements pertaining to loans and security for loans used by a licensee must be so worded that they comply with all provisions of ORS Chapter 725 and these rules. (2) Any forms or agreements required or authorized by f…

441-730-0060 Loans Not to Be Payable on Demand; Exception (1) Except as provided by section (2) of this rule, a loan shall not be made payable on demand. (2) A loan may provide that, if there is a default under the note or collateral security agreement, the loan may become due an…

441-730-0070 Advertising Regulations (1) A licensee, or other person acting on the licensee's behalf, shall not include in any advertisement, that is oral or written for any purpose, any reference to the state’s supervision of the licensee, except the phrase "licensed under the O…

441-730-0080 Qualifications of Person in Charge of Licensed Office (1) A loan licensee must not place any person in charge of a licensed office unless the person has a thorough understanding of ORS chapter 725 and these rules. (2) A licensee must place the experienced person as d…

441-730-0100 Licensee Officers and Directors (1)(a) A licensee may add a new executive officer, owner, director, or managing partner at any time after the licensee has been granted a license if after the addition at least one-half of the executive officers, owners, directors, or …

441-730-0110 Accounting Records of Licensee (1) The accounting records of a licensee must reflect a complete segregation of the loan transactions from any other business in which the licensee may be engaged. (2) The licensee must maintain separate control accounts or other accept…

441-730-0120 Account Record to Be Maintained for Each Loan (1) The licensee must maintain a separate individual account record for each loan made to any borrower showing: (a) The loan number; (b) The date of the loan; (c) The name and address of the borrower; (d) A brief descript…

441-730-0125 Residential Borrower Files for Mortgage Loans (1) In addition to any records required to be kept under OAR 441-730-0110 and 441-730-0120, a consumer finance company that makes or offers to make a residential mortgage loan must ensure that the following are prepared a…

441-730-0130 Maintaining Index of Obligors A licensee must maintain in each of its licensed offices an alphabetical index or other index system approved by the director, of every person obligated, directly or contingently, on a loan serviced at that office. Statutory/Other Author…

441-730-0140 Records and Files Required to Be Kept at Servicing Office; Copies of Loans Transferred; Centralized Accounting Office Exception (1) A licensee must maintain the accounting records and loan files for active loans at the licensed office where the loans are serviced. (2…

441-730-0150 Consolidating Sales Financing into Direct Loans (1) A licensee shall not make a direct loan to pay off a retail installment contract owned by or assigned to the licensee if the loan bears a higher APR than that borne by the contract unless the loan is of substantial …

441-730-0160 Daily-Interest Computation (1) When interest on a loan is computed on a daily basis using a 360-day factor, the maximum charge for each day must be 1/30 of the monthly rate. In determining the elapsed time to compute interest on any such loan, each calendar month sha…

441-730-0170 Precomputed Interest (1) When a loan contract is repayable in substantially equal and consecutive monthly installments of principal and interest combined, interest may be precomputed and added to the principal. Interest may be precomputed even though the first instal…

441-730-0180 Deferred Payment on Precomputed Loan (1) When unpaid installments are deferred as provided by ORS 725.340(2)(b), the licensee must give the borrower written evidence of the agreed deferral showing: (a) The amount of the deferral charge; (b) The new due date of the fi…

441-730-0200 Action on Precomputed Loan; Rebate Required (1) When a licensee brings an action against a borrower on a precomputed loan, if the action comes to judgment prior to the due date of the final installment, the licensee must tender a rebate to the borrower of interest un…

441-730-0205 Limitation on Charging a Prepayment Penalty by Consumer Finance Licensees A licensee may not charge a penalty for prepayment of all or part of the unpaid balance of a loan where: (1) A licensee refinances a loan they own. (2) The licensee has repossessed any collater…

441-730-0210 Recomputation of Interest on Delinquent Precomputed Loan If two or more installments of a precomputed loan are delinquent, the licensee may elect to recompute interest and other charges. A recomputation shall be made at the agreed interest rate, or at the APR, from t…

441-730-0220 Insurance Premium Charges; Refunds If a loan contract is prepaid in full by cash, renewal, refinancing, or a new loan, one month or more before the final installment due date, the licensee shall refund to the borrower that proportion of the credit life and credit hea…

441-730-0230 Insurance Benefits Paid to Licensee (1) When a death claim settlement is made on a borrower’s account and the credit life insurance premium charged was based on the total of installments contracted, including both principal and anticipated interest, the licensee shal…

441-730-0240 Statement of Loan (1) In addition to the statement required by ORS 725.360(1), the licensee shall, at the time each loan is made, deliver to the borrower: (a) A written statement that payment in any amount may be made in advance at any time and, if the loan contains …

441-730-0246 Contents of Foreclosure Notices The sender of a notice form required by ORS 86.737 must enter in the form and format adopted by this rule: (1) The statewide telephone contact number for handling consumer queries as 800-SAFENET (800-723-3638); (2) The telephone number…

441-730-0250 Receipt to Be Furnished to Borrower Upon Request (1) When the borrower requests a receipt for a payment on a loan for which interest is to be computed on a daily basis, the receipt shall specify: (a) The amount applied to interest, if any; (b) The date to which the i…

441-730-0255 Payoff Information to be Furnished to Borrower Upon Request (1) When a borrower requests the payoff information on a loan and specifies a payoff date, the licensee must promptly, but in no case later than three business days, provide the requested information. (2) Wh…

441-730-0260 Advances to Perform Covenants (1) Within a reasonable time after advancing any sum pursuant to ORS 725.340(3), the licensee must furnish the borrower a written statement showing: (a) The amount of the sums advanced and, any charges with respect to such sums advanced;…

441-730-0280 Prohibited Provisions in Loan Contract Provisions A licensee may not use a contract evidencing a loan that contains any of the following provisions: (1) A hold harmless clause; (2) A confession of judgment or other waiver of the right to notice and the opportunity to…

441-730-0320 Licensee Reporting (1) Licensees are required to file their annual report by March 31 of each year. Licensees must also provide known information on any felony conviction, or any conviction involving theft or fraud, of any executive officer, director, managing partne…

441-735-0000 Statutory Authority; Purpose OAR 441-735-0000 to 441-735-0320 are adopted pursuant to the rulemaking authority granted the director by ORS 725A.092. These rules are considered necessary to assure the proper conduct of the business regulated and to protect the public.…

441-735-0010 Definitions (1) "Annual percentage rate” or “APR” means the annual percentage rate that every licensee is required to disclose to any credit customer in accordance with the Truth In Lending Act, 15 U.S.C. 1601 et seq., and Regulation Z, 12 C.F.R. Part 1026. (2) "Borr…

441-735-0015 Title Loan Licensee Lending Practices A title loan licensee may not: (1) Retain the title to the vehicle used as security on a loan for more than thirty business days before submitting the application to be recorded as a lien-holder on the title or taking other comme…

441-735-0025 License Applications (1) For purposes of the investigation described in ORS 725A.024 an applicant for a license must submit the application form prescribed by the director, signed by an authorized owner or officer of the applicant. (2) An applicant, including a perso…

441-735-0030 Fees, Charges Licensees Pay the Director (1) The license fees under ORS 725A.028 are: (a) $750 for an initial application for each location to be licensed; and (b) $750 for renewal of each licensed location, due and payable on January 1 of each calendar year. (2) The…

441-735-0050 Notes and Agreements (1) All forms of notes and agreements pertaining to loans and security for loans used by a licensee must be so worded that they comply with all provisions of ORS 725A.010 through 725A.990 and these rules. (2) Any forms or agreements required or a…

441-735-0060 Loans Not to Be Payable on Demand; Exception (1) Except as provided by section (2) of this rule, a loan must not be made payable on demand. (2) A loan may provide that, if there is a default under the note or collateral security agreement, the loan may become due and…

441-735-0070 Advertising Regulations (1) A licensee, or other person acting on the licensee's behalf, shall not include in any advertisement, that is oral or written for any purpose, any reference to the state’s supervision of the licensee, except the phrase "subject to state reg…

441-735-0080 Qualifications of Person in Charge of Licensed Office A licensee must not place any person in charge of a licensed office unless the person has a thorough understanding of ORS 725A.010 – 725A.990 and these rules. Statutory/Other Authority: ORS 725A.092 Statutes/Other…

441-735-0100 Licensee Officers and Directors (1)(a) A licensee may add a new executive officer, owner, director, or managing partner at any time after the licensee has been granted a license if after the addition at least one-half of the executive officers, owners, directors, or …

441-735-0110 Accounting Records of Licensee (1) The accounting records of a licensee must reflect a complete segregation of the loan transactions from any other business in which the licensee may be engaged. (2) The licensee must maintain separate control accounts or other accept…

441-735-0120 Account Record to Be Maintained for Each Loan (1) The licensee must maintain a separate individual account record for each loan made to any borrower showing: (a) The loan number; (b) The date of the loan; (c) The name and address of the borrower; (d) A brief descript…

441-735-0130 Index of Obligors to Be Maintained A licensee must maintain an alphabetical index, or other system approved by the director, of every person obligated, directly or contingently, on a loan that is serviced at that office in each of its licensed offices. Statutory/Othe…

441-735-0140 Records and Files Required to Be Kept at Servicing Office; Copies of Loans Transferred; Centralized Accounting Office Exception (1) A licensee must maintain the accounting records and loan files for active loans at the licensed office where the loans are serviced. (2…

441-735-0160 Daily-Interest Computation Interest on a loan may be computed on a daily basis using a 365-day factor. In determining the elapsed time to compute interest or a refund of interest, on such a loan, the maximum charge for each day must be 1/365th of the annual rate. Sta…

441-735-0165 Unfair or Deceptive Practices A licensee must not disguise the terms or provisions of any loan as a device or subterfuge to evade the requirements and fees and interest authorized by ORS 725A.010 through 725A.990. Such conduct will be deemed a violation of 725A.010, …

441-735-0205 Limitation on Charging a Prepayment Penalty A licensee may not charge a penalty for prepayment of all or part of the unpaid balance of a loan where: (1) The licensee has repossessed any collateral offered for the loan, sold the collateral and applied the proceeds of …

441-735-0240 Statement of Loan (1) In addition to the statement required by ORS 725A.056, the licensee must deliver the following to the borrower at the time a loan is made: (a) A written statement that payment in any amount may be made in advance at any time and, if the loan con…

441-735-0250 Receipt to Be Furnished to Borrower Upon Request (1) When the borrower requests a receipt for a payment on a loan for which interest is to be computed on a daily basis, the receipt must specify: (a) The amount applied to interest, if any; (b) The date to which the in…

441-735-0255 Payoff Information to be Furnished to Borrower Upon Request (1) When a borrower requests the payoff information on a loan and specifies a payoff date, the licensee must promptly, but in no case later than three business days, provide the requested information. (2) Wh…

441-735-0271 Requirements for Payday Loans and Title Loans A license must comply with the following when making payday loans or title loans: (1) Interest may not be compounded. (2) The loan agreement must have the following information displayed prominently in bold print on the f…

441-735-0272 Requirements for Licensees (1) A licensee: (a) Must calculate daily interest based upon a 365-day year. (b) Must comply with the Equal Credit Opportunity Act, 15 USC § 1691 et seq., and must provide the applicant with a written notice of the reason for declining a lo…

441-735-0275 Conditions Applicable to Loans Made by Title Loan Licensees (1) Title loan contracts may not provide for the continuation of interest or other charges after repossession. (2) For title loans in default, licensees must send a written notice by first class mail, in a f…

441-735-0280 Prohibited Provisions in Loan Contract Provisions A licensee may not use a contract evidencing a loan that contains any of the following provisions: (1) A hold harmless clause; (2) A confession of judgment or other waiver of the right to notice and the opportunity to…