justicedao/ipfs_state_laws huggingface dataset:
441-730-0000 Statutory Authority; Purpose (1) OAR 441-730-0000 to 441-730-0320 is adopted pursuant to the rulemaking authority granted the director by ORS 725.320, and 725.505. (2) The rules are considered necessary to assure the proper conduct of the business regulated, to enforce the Consumer Finance Act and to protect the public. Statutory/Other Authority: ORS 725.320 & 725.505 Statutes/Other Implemented: ORS 725 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 2-2007(Temp), f. 6-29-07, cert. ef. 7-1-07 thru 12-27-07 FCS 5-2006, f. & cert. ef. 12-21-06 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88, Renumbered from 805-075-0005 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0015 Licensee Lending Characteristics and Practices (1) A licensee, making loans under that license, must make a determination of the creditworthiness of a borrower based on the information about the borrower’s financial condition, such as his or her income, assets, debts, and financial obligations, and the nature and value of any collateral used to secure the loan for the majority of loans made under a consumer finance license. (2) A licensee must ensure that the majority of secured or unsecured loans made under a license have: (a) Periodic payments; (b) Terms longer than 60 days; (c) Loan underwriting; and (d) Full amortization. (3) A licensee must not: (a) Disguise any loan as an open-ended loan authorized under ORS 725.345 or 725.347 as a device or subterfuge to evade the requirements and prohibitions of this rule; (b) Retain the title to the vehicle used as security on a loan for more than thirty business days before submitting the application to be recorded as a lien-holder on the title or taking other commercially reasonable steps to be added as a security interest holder of the vehicle; (c) Unreasonably withhold documents on a loan secured by a borrower’s vehicle for more than three business days if the loan is paid by certified or guaranteed funds; or (d) Require a borrower, as a condition of making a loan under its license, to provide a postdated check or debit authorization for one or more future payments. However, if permitted by the licensee and at the discretion of the borrower, one or more postdated checks or debit authorizations may be delivered to a licensee to facilitate timely future payments. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.110, 725.140(1) & 725.330 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 Reverted to Renumbered from 441-730-0005, FCS 5-2006, f. & cert. ef. 12-21-06 FCS 3-2007(Temp), f. & cert. ef. 8-10-07 thru 12-27-07 Renumbered from 441-730-0005, FCS 5-2006, f. & cert. ef. 12-21-06 FCS 2-2000, f. & cert. ef. 2-15-00
441-730-0027 State Criminal Records Check (1) A consumer finance company that makes or offers to make residential mortgage loans must conduct a state criminal records check of an employee prior to the person originating residential mortgage loans. (a) The consumer finance company must search state records of all states where the individual has resided in the past 10 years using the person's full legal name, date of birth, place of birth, and Social Security number. (b) The consumer finance company must use the services of law enforcement agencies or an independent private company that complies with the federal Fair Credit Reporting Act to conduct the state criminal records check. (2) If the state criminal records check discloses a disqualifying conviction under ORS 86A.212, an applicant for a mortgage loan originator license may not be employed and a currently employed mortgage loan originator must cease making residential mortgage loans immediately. (3) The consumer finance company must maintain state criminal records check documents in a secure location and must make these available to the director for examination at any reasonable time or times and may require, without subpoena, the production of such records at the office of the director as often as is reasonably necessary. The consumer finance company must preserve these records for three years after they terminate the employment of the mortgage loan originator. After the retention period, the consumer finance company must destroy these files in a secure manner. (4) This rule applies to employees of consumer finance companies hired or employed on or after August 1, 2010. Statutory/Other Authority: ORS 86A.186 & 86A.242 Statutes/Other Implemented: ORS 86A.186 History: FSR 12-2020, minor correction filed 03/23/2020, effective 03/23/2020 FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10
441-730-0030 Fees, Charges Licensees Pay the Director (1) In addition to any fees required to register with and participate in NMLS, an applicant or licensee shall pay: (a) $600 for an initial application for each location to be licensed; and (b) $600 for renewal for each licensed location, due and payable at the time that the request to renew is submitted through the NMLS. (2) The rate of charge payable by a licensee is $75 an hour per person payable by the licensee for the director and each examiner and other division employee used in an examination conducted under ORS 725.312 and for extra services provided a licensee under 725.185(2). (3) Notwithstanding the rate of charge fixed by section (2) of this rule: (a) If an examiner from the division or the director is required to travel out of state to conduct the examination or provide extra services, the rate of charge payable by the licensee is $75 an hour per person, plus actual cost of travel. Actual travel costs include air fare, lodging, food, car usage out of state, mileage to the Oregon airport and return, and travel time beginning from the departure time and ending at the departure time at the destination city; (b) If the extra services or examination is performed by a consultant hired by contract for the particular service or examination, the charge payable by the licensee is the actual cost to the division of the contract consultant. (4) As used in this rule, "extra services" means any attention other than an examination given under ORS 725.310. (5) In addition to the charges fixed by sections (2) and (3) of this rule, the director will collect from a licensee any additional costs directly attributable to extra services given the licensee under ORS 725.185 or a special examination given the licensee under ORS 725.310. (6) The director may by order reduce the fees assessed for any specific year. Statutory/Other Authority: ORS 725.185 Statutes/Other Implemented: ORS 725.185 History: FCS 3-2014, f. & cert. ef. 8-25-14 FCS 7-2013(Temp), f. 12-31-13, cert. ef. 1-1-14 thru 6-30-14 FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 2-2009, f. & cert. ef. 2-3-09 FCS 1-2008, f. & cert. ef. 1-28-08 FCS 3-2005, f. & cert. ef. 9-6-05 FCS 4-2004, f. 11-1-04, cert. ef. 1-1-05 FCS 4-2003, f. 12-30-03, cert. ef. 1-1-04 FCS 1-2001, f. 1-22-01, cert. ef. 2-1-01 FCS 1-1989, f. 1-18-89, cert. ef. 2-1-89 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88 FCS 2-1988, f. 1-29-88, cert. ef. 2-1-88, Renumbered from 805-075-0015 FID 8-1985, f. & cert. ef. 12-31-85
441-730-0050 Notes and Agreements (1) All forms of notes and agreements pertaining to loans and security for loans used by a licensee must be so worded that they comply with all provisions of ORS Chapter 725 and these rules. (2) Any forms or agreements required or authorized by federal statute or regulations and in compliance with those statutes or regulations are considered in compliance with and authorized by ORS Chapter 725. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.120 & 725.320 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 5-2006, f. & cert. ef. 12-21-06 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82, Renumbered from 805-075-0030 BB 3-1978, f. 5-16-78, cert. ef. 7-1-78 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0060 Loans Not to Be Payable on Demand; Exception (1) Except as provided by section (2) of this rule, a loan shall not be made payable on demand. (2) A loan may provide that, if there is a default under the note or collateral security agreement, the loan may become due and payable immediately or on demand. Statutory/Other Authority: ORS 725 Statutes/Other Implemented: ORS 725.050 History: BB 3-1978, f. 5-16-78, ef. 7-1-78, Renumbered from 805-075-0040 BB 14-1976, f. & ef. 11-15-76
441-730-0070 Advertising Regulations (1) A licensee, or other person acting on the licensee's behalf, shall not include in any advertisement, that is oral or written for any purpose, any reference to the state’s supervision of the licensee, except the phrase "licensed under the Oregon Consumer Finance Act" or "subject to state regulation" or both. (2) A licensee, or other person acting on the licensee's behalf, shall only use the name under which the license is issued in any oral or written advertisement. (3) A licensee must retain a copy of all advertising for the period beginning with the date of the last examination in a designated licensed office, or at another location with the prior approval of the director, until an examiner has reviewed the material. (4) Notwithstanding the provisions of sections (1) and (2) of this rule: A licensee must prominently post their license in a manner conspicuous to the public at their licensed location and prominently display their Nationwide Multistate Licensing System (NMLS) number on their website. (5) The posted license must state that the business is licensed and regulated by the Department of Consumer and Business Services, and will include the department’s toll-free telephone number for public inquiries or complaints. (6) For licenses issued or renewed through NMLS for periods on or after January 1, 2020, licensees can meet the requirements of ORS 725.160 by posting a form provided by the department completed with current and valid NMLS licensing information. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.060 & ORS 725.160 History: FSR 16-2019, amend filed 12/16/2019, effective 01/01/2020 FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 2-2001, f. 1-22-01, cert. ef. 3-22-01 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82, Renumbered from 805-075-0045 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0080 Qualifications of Person in Charge of Licensed Office (1) A loan licensee must not place any person in charge of a licensed office unless the person has a thorough understanding of ORS chapter 725 and these rules. (2) A licensee must place the experienced person as described in OAR 441-730-0025(2) in its licensed office. (3) Notwithstanding section (2) of this rule, if the licensee holds a license for more than one location or if the experienced person described in OAR 441-730-0025(2) is employed outside of Oregon, the licensee may place a qualified person with no less than one year's traditional lending experience in charge of each licensed office provided the experienced person described in 441-730-0025(2) supervises the lending operations of each location. (4) At the request of the applicant and in the sole discretion of the director, education, extensive training or other business experience may be substituted for the one year of relevant lending experience required in section (3) of this rule. (5) Unless a licensee requires all loan underwriting decisions be forwarded to an experienced person at another location or uses a formalized grading system, a licensee must employ or place a qualified person as described in this rule at each licensed office to be in charge of and oversee the lending operations of the office. A licensee must provide the director with a current resume for any new manager employed or placed at a licensed office within 30 days of the date of their employment. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.140, 725.310 & 725.330 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 5-2006, f. & cert. ef. 12-21-06 FCS 2-2004, f. & cert. ef. 8-5-04 FCS 13-2001, f. & cert. ef. 12-27-01 BB 14-1976, f. & cert. ef. 11-15-76, Renumbered from 805-075-0050
441-730-0100 Licensee Officers and Directors (1)(a) A licensee may add a new executive officer, owner, director, or managing partner at any time after the licensee has been granted a license if after the addition at least one-half of the executive officers, owners, directors, or managing partners can demonstrate verifiable recent lending experience in banking, consumer finance, or mortgage lending as required by OAR 441-730-0025. (b) If a licensee adds a new executive officer, director, partial owner, or managing partner under this section, the licensee must provide a current resume for such new persons demonstrating verifiable recent lending experience in banking, consumer finance, or mortgage lending to the director within 30 days of their appointment or selection. (2) If an existing or new executive officer, director, partial owner, or managing partner of the licensee gains a controlling interest in the company after the license has been granted, the licensee must notify the director within 30 days. (3) An officer or director of a licensee addressed in an order issued by the director under ORS 725.315 or 725.317 may, within 30 days after the date the order is issued and served, request a hearing on the order as provided for contested cases by 183.310 to 183.500, and the rules of the director adopted pursuant thereto. (4) A person who is suspended or removed under ORS 725.315 or 725.317 must not conduct any of the business of the licensee or have access to the books, records, or assets of the licensee either as an officer, director, partner, stockholder, or employee without receiving permission from the director: (a) During the period of the suspension; or (b) After the effective date of the removal. (5) A licensee subject to an order of suspension under the provisions of ORS 725.230(2) may, within 90 days after the date the order is issued or served, request a hearing on the order as provided for contested cases by 183.310 to 183.500 and the rules of the director adopted pursuant thereto. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.315 & 725.317 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 2-2004, f. & cert. ef. 8-5-04 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88 BB 3-1978, f. 5-16-78, cert. ef. 7-1-78, Renumbered from 805-075-0057
441-730-0120 Account Record to Be Maintained for Each Loan (1) The licensee must maintain a separate individual account record for each loan made to any borrower showing: (a) The loan number; (b) The date of the loan; (c) The name and address of the borrower; (d) A brief description of the security, if any; (e) The agreed interest rate or rates and the amount of each charge, if any; (f) The terms of repayment, including the expiration date of the loan, and any modifications of the terms. (g) The amount of each payment made on the loan and in accordance with sections (2) and (3) of this rule, how the payment is allotted to principal, interest and charges; (h) The date of the final entry when the loan is paid in full or otherwise finally settled or closed; and (i) A clear, brief explanation of any other entries that result in the reduction or addition to the principal balance or interest. (2) The account record for a daily interest loan must show, for each loan payment received: (a) The amount, if any, applied to interest; (b) The date to which the interest is paid; (c) If payment is insufficient to pay interest to date, the dollar amount short; (d) The amount applied to principal, if any; and (e) The unpaid principal balance of the loan, if any. (3) The account record for a precomputed-interest loan may comply with section (2) of this rule or it must show, for each loan payment received: (a) The amount of the payment applied to installments, identifying which installments; (b) The amount applied to any default charges; and (c) The unpaid balance of the loan and charges, if any. (4) When a licensee makes advances to perform covenants, the account record must specify: (a) The amount of the advance which is added to the principal of the loan. (b) A brief description of what the advance is paying; and (c) When the advance is to purchase insurance coverage, the type and extent of coverage. (5) All entries to the account record made by the licensee must be accurate and posted by close of business on the day the transaction occurred. If the licensee is unable to post a transaction as required by this section, the posting when made must reflect the actual date of the transaction. Statutory/Other Authority: ORS 725.320 & 725.505 Statutes/Other Implemented: ORS 725.330 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 3-2009, f. & cert. ef. 6-2-09 FCS 5-2006, f. & cert. ef. 12-21-06 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 2-2001, f. 1-22-01, cert. ef. 3-22-01 FCS 2-2000, f. & cert. ef. 2-15-00 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82, Renumbered from 805-075-0065 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0125 Residential Borrower Files for Mortgage Loans (1) In addition to any records required to be kept under OAR 441-730-0110 and 441-730-0120, a consumer finance company that makes or offers to make a residential mortgage loan must ensure that the following are prepared and maintained in the loan file: (a) A summary of the key terms of the approval of the loan; (b) A copy of each residential mortgage loan application with the signature and the unique identifier of the mortgage loan originator who took or received the application, who offered to negotiate or negotiated the loan, or who closed the loan; (c) A copy of all documentation relied upon in making the loan decision; (d) A copy of the borrower executed note and executed trust deed; (e) A copy of all correspondence with the borrower in writing or in a format easily converted to writing; (f) A copy of the good faith estimate prepared under Regulation X, 24 C.F.R. Part 3500 and translated as applicable to comply with ORS 86A.198; (g) If required to be prepared for the residential mortgage transaction, a copy of the final credit report, or the report relied upon for the loan decision, if other than the final credit report, received on the borrower including documentation of borrower payment history; (h) If required to be prepared for the Oregon residential mortgage transaction, a copy of any disclosure required by Regulation Z, 12 C.F.R. Part 226 and translated as applicable to comply with ORS 86A.198, including, but not limited to, the Truth in Lending disclosure statement; (i) A copy of the final HUD-1 settlement statement required by 24 C.F.R. Part 3500; and (j) A copy of the statement that notifies the borrower that loan documents associated with the transaction will be in English and that advises the borrower to obtain appropriate assistance, with any necessary translations as required by ORS 86A.195. (2) Records retained under this rule may be kept in a written format or in a format easily converted to writing. Statutory/Other Authority: ORS 86A.242 Statutes/Other Implemented: ORS 725.230 History: FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10
441-730-0130 Maintaining Index of Obligors A licensee must maintain in each of its licensed offices an alphabetical index or other index system approved by the director, of every person obligated, directly or contingently, on a loan serviced at that office. Statutory/Other Authority: ORS 725 Statutes/Other Implemented: ORS 725.330 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 13-2001, f. & cert. ef. 12-27-01 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82, Renumbered from 805-075-0070 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0140 Records and Files Required to Be Kept at Servicing Office; Copies of Loans Transferred; Centralized Accounting Office Exception (1) A licensee must maintain the accounting records and loan files for active loans at the licensed office where the loans are serviced. (2) Whenever an active loan is for any reason transferred to another licensed office in this state, the licensee must retain in the transferring office an exact copy of the individual account record and supporting legal documents. (3) Whenever an active loan is for any reason transferred to another licensed office, the licensee must retain in the transferring office an exact copy of the account record to which has been added the date of transfer and the name and address of the new location of the account. However, if a bulk sale or similar transfer of loans not in the ordinary course of business is made to another licensed office, the licensee may, with the prior approval of the director, make other provisions for the retention of copies of records and files and for the examination of accounts in the receiving office. (4) Whenever a licensee sends an active loan to another licensed location, the licensee must retain the original record or an exact copy of the account record in the originating office. (5) Notwithstanding sections (1) through (4) of this rule, a licensee may, with the prior approval of the director, maintain the accounting records and loan files for active loans at a location other than the servicing office if: (a) The other location is established by the licensee to provide centralized accounting for one or more licensed offices; (b) Off-site maintenance of the records and files will not hinder prompt servicing of the loans by the servicing offices; (c) The director, and any duly appointed examiners or agents of the director, have the right of free access to the records and files of the licensee at the other location; and (d) The other location provides adequate security for the licensee's records and files. Statutory/Other Authority: ORS 725.320 & 725.505 Statutes/Other Implemented: ORS 725.330 History: FCS 6-2010, f. & cert. ef. 6-4-10 FCS 2-2001, f. 1-22-01, cert. ef. 3-22-01 FCS 2-2000, f. & cert. ef. 2-15-00 BB 1-1983, f. 3-29-83, cert. ef. 4-1-83, Renumbered from 805-075-0075 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82 BB 14-1976, f. & cert. ef. 11-15-76
441-730-0150 Consolidating Sales Financing into Direct Loans (1) A licensee shall not make a direct loan to pay off a retail installment contract owned by or assigned to the licensee if the loan bears a higher APR than that borne by the contract unless the loan is of substantial benefit to the borrower. A substantial benefit would exist in circumstances including, but not limited to one or more of the following: (a) The retail installment contract is in default two installments or more; (b) The amount of the individual installments payable on the direct loan will be lower than the amount of the individual installment being paid on the contract; (c) The direct loan pays off one or more obligations in addition to the retail installment contract; (d) The principal amount of the direct loan exceeds the sum of the unpaid installments on the retail installment contract by not less than 20 percent of the sum of the unpaid installments, or by $200, whichever is less. (2) As used in this rule, "retail installment contract" has the meaning given the term by ORS 83.010 and 83.510. Statutory/Other Authority: ORS 725.505 Statutes/Other Implemented: ORS 725.320 History: FCS 3-2009, f. & cert. ef. 6-2-09 FCS 13-2001, f. & cert. ef. 12-27-01 FCS 12-1988, f. 7-20-88, cert. ef. 8-1-88, Renumbered from 805-075-0103 BB 5-1982, f. 9-1-82, cert. ef. 9-15-82 BB 3-1978, f. 5-16-78, cert. ef. 7-1-78