(1) A state credit union is authorized to exercise the powers to allow nonmembers to assume real estate mortgages of members conferred on a federally chartered credit union as follows:
- (a) The assumption is in conjunction with the nonmember’s purchase of the member’s principal residence;
- (b) The nonmember assumes only the remaining unpaid balance of the loan;
- (c) The terms of the loan remain unchanged; and
- (d) There is no extension of the original maturity date specified in the loan agreement with the member.
- (2) An assumption is impermissible if the original loan was made with the intent of having a nonmember assume the loan.
Statutory/Other Authority
ORS 723.102
Statutes/Other Implemented
ORS 723.156 & 723.602
History
Renumbered from 441-710-0200, FCS 2-2005, f. & cert. ef. 8-25-05
FID 5-1986, f. & cert. ef. 8-27-86, Renumbered from 805-072-0270