A licensee may not charge a penalty for prepayment of all or part of the unpaid balance of a loan where:

1. (1) A licensee refinances a loan they own.
2. (2) The licensee has repossessed any collateral offered for the loan, sold the collateral and applied the proceeds of the sale towards the unpaid balance of the loan.
3. (3) The licensee forecloses on property and applies any proceeds realized from the foreclosure toward the unpaid balance of the loan.
4. (4) The licensee exercises an option contained in the loan agreement to require immediate repayment of all or part of the unpaid balance of the loan.
5. (5) All or part of the loan balance is repaid with insurance benefits resulting from the death of the borrower.
6. (6) The licensee demands repayment of all or part of the unpaid balance of the loan.
7. (7) The loan is a home equity line of credit or an unsecured line of credit.

Statutory/Other Authority

ORS 725.320 & 725.505

Statutes/Other Implemented

ORS 725.360

History

FCS 6-2010, f. & cert. ef. 6-4-10
FCS 3-2009, f. & cert. ef. 6-2-09
FCS 2-2001, f. 1-22-01, cert. ef. 3-22-01
FCS 2-2000, f. & cert. ef. 2-15-00