Oregon Statutes 725A.056 – Loan disclosure requirements; receipt; procedure after full loan repayment
A licensee shall:
Terms Used In Oregon Statutes 725A.056
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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.
- Personal property: All property that is not real property.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(1) Deliver to the borrower at the time the licensee makes a loan a statement in the English language that shows in clear and distinct terms:
(a) The borrower’s and the licensee’s names and addresses.
(b) The amount of the loan, the date on which the licensee made the loan and the maturity of or payment terms for the loan.
(c) The interest rate to which the licensee and borrower agreed and the consideration the licensee will charge for the loan.
(d) The nature of the security for the loan, if the licensee has taken a lien on personal property by chattel mortgage, bill of sale, collateral agreement or otherwise.
(2) Make available to the borrower upon request a plain and complete receipt for all payments the borrower made on a loan at the time the licensee receives the payments. The receipt must:
(a) Specify the amount, if any, that the licensee applied toward interest;
(b) Identify the date to which the interest is paid;
(c) Specify the amount, if any, the licensee applied toward principal; and
(d) State the unpaid principal balance for the loan, if a principal balance remains.
(3) Permit a borrower at any time to pay any amount in advance on any loan.
(4) Mark the word ‘Paid’ or ‘Renewed’ indelibly on the note, or on other evidence of the debt or obligation that bears the borrower’s signature, whenever the borrower pays the loan in full or renews the loan. If the borrower repays the loan in full, the licensee shall also:
(a) Release a mortgage or security agreement that no longer secures the loan and restore any security or collateral, to the extent and in the manner required by law.
(b) Release a Uniform Commercial Code filing that no longer secures the loan, to the extent and in the manner required under ORS § 79.0513.
(c) Return any assignment the borrower gave.
(d) Return to the borrower the canceled note or other evidence of the loan or, alternatively, acknowledge to the borrower in writing that the borrower has repaid the loan. [2010 c.23 § 17]