Oregon Statutes 399.240 – Limitation on rate of interest incurred by state service members during period of active service
(1) As used in this section:
Terms Used In Oregon Statutes 399.240
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(a) ‘Interest’ includes service charges, renewal fees or other charges or fees associated with an obligation or liability.
(b) ‘Service member’ means:
(A) A member of the organized militia who is called into active service of the state for 30 or more consecutive days.
(B) A member of the Oregon National Guard who is called into active service under Title 10 of the United States Code.
(C) A member of the Oregon National Guard who is called into active service under Title 32 of the United States Code to perform under an authority other than the Governor for 30 or more consecutive days.
(2) Notwithstanding ORS § 82.010, 83.095, 708A.255, 723.502, 723.730 and 725.340, an obligation or liability bearing interest at a rate in excess of six percent per year incurred by a service member before being called into active service may not, during any part of the period of active service, bear interest in excess of six percent per year except by court order.
(3) The service member shall provide written notice to the creditor requesting that the rate of interest be reduced to six percent per year and shall include proof of the official orders showing that the service member is being called into active service.
(4) A creditor that receives a request under subsection (3) of this section to reduce a rate of interest may apply to the court for a determination that the ability of a service member to pay interest on an obligation or liability at a rate in excess of six percent per year is not materially affected because of the active service of the member. If a court determines that the ability of a service member to pay interest on an obligation or liability at a rate in excess of six percent per year is not materially affected because of the active service of the member, the court may order an interest rate that is just.
(5) A creditor must recompute the payment schedule to amortize the balance of the obligation or liability over the remainder of the obligation or liability at a rate of interest determined under subsection (2) or (4) of this section. [2003 c.387 § 4; 2005 c.79 § 2; 2009 c.541 § 20; 2023 c.122 § 6]