Oregon Business Development Department
Chapter 123
Division 21
OPERATION OF OREGON CREDIT ENHANCEMENT FUND
123-021-3500
Lender Agreement
No Loan Insurance Authorization shall be effective unless the Financial Institution and the Department have executed a Lender Agreement in a form acceptable to the Department setting forth the relative rights and responsibilities of the Financial Institution and the Department for all insured loans. The Lender Agreement shall include the following:
(1) Provisions incorporating the requirements of this division of the rules and ORS 285.466 to 285.481.
(2) Provisions setting forth the responsibilities of the Financial Institution to prudently underwrite and service insured loans in such a manner as would be the normal and customary practice of a prudent lender making or servicing a loan without relying on loan insurance.
(3) A requirement that the Financial Institution notify the Department in writing within 5 business days after a Borrower's payment is 30 business days late and within 30 business days of any other default or other event or condition indicating that the loan may not be repaid in full. Upon default, the Financial Institution shall provide the Department a liquidation plan detailing such action as may be prudent, including without limitation foreclosing on and liquidating collateral. After obtaining the Department’s approval of the liquidation plan, the Financial Institution shall take such action to foreclose on and liquidation the assets and pursue remedies against the guarantees securing the loan.
(4) A description of the Department’s insurance Programs and the method for paying insurance claims.
(5) The Department shall be entitled at its discretion to cancel or reduce its insurance obligation if the Financial Institution breaches its responsibilities under the Lender Agreement or the Department-approved liquidation plan.
(6) Such other terms and conditions as the Department deems appropriate.
Statutory/Other Authority: ORS 285A.075 & 285B.200 - 285B.218
Statutes/Other Implemented: ORS 285B.200 - 285B.218
History:
OBDD 2-2024, amend filed 03/06/2024, effective 03/08/2024
OBDD 28-2023, temporary amend filed 10/13/2023, effective 10/13/2023 through 04/05/2024
OBDD 27-2023, renumbered from 123-021-1400, filed 10/06/2023, effective 10/06/2023
OBDD 4-2023, temporary amend filed 01/25/2023, effective 01/25/2023 through 07/23/2023
OBDD 3-2023, renumbered from 123-021-0100, filed 01/18/2023, effective 01/18/2023
EDD 17-2009, f. 10-30-09, cert. ef. 11-1-09
EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08
EDD 11-1994, f. & cert. ef. 7-29-94
EDD 5-1994(Temp), f. & cert. ef. 3-3-94