Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 35 - SECURITIES TRANSACTIONS EXEMPT FROM REGISTRATION › Section 441-035-0021 - Disclosure Requirements for Real Estate Paper Transactions Exempt Under ORS 59.035(7)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) All
			 transactions exempt under ORS
			 59.035(7),
			 involving a mortgage banker or mortgage broker must comply with the provisions
			 of OAR 441-870-0050.
(2) All
			 transactions exempt under ORS
			 59.035(7),
			 involving a broker-dealer or person described in
			 59.015(1)(b)
			 must comply with the provisions of this rule. Compliance does not relieve any
			 person of any other duties and liabilities under the Oregon Securities Law,
			 Oregon Administrative Rules, or any other provision of law.
(3) For transactions to be exempt under ORS
			 59.035(7), a
			 broker-dealer or person described in
			 59.015(1)(b)
			 must provide to the purchaser, prior to the time of sale, a written disclosure
			 document containing the following information:
(a) The legal description of the real
			 property underlying the real estate paper being sold;
(b) The priority of the lien created by the
			 real estate paper and the total face amount of any senior liens including
			 outstanding taxes; or a current title report on the real property prepared by a
			 title insurance company;
(c) The
			 terms of any senior lien and of any assignments thereof, or a copy of the
			 instrument creating the senior lien and any assignments thereof;
(d) A statement whether any future advances
			 may have a priority senior to that of the lien created by the real estate paper
			 being sold;
(e) In the case of a
			 sale of junior real estate paper, a statement of the risk of loss on
			 foreclosure of a senior lien;
(f) A
			 prominent statement of any balloon payments, including the dates payable and
			 the amounts due;
(g) A statement of
			 the balance of all taxes owing on the real property underlying the real estate
			 paper, as provided by the county assessor directly or indirectly through a
			 title insurance company;
(h) A
			 statement of the value of the real property underlying the real estate paper,
			 based upon the tax assessed value of the property underlying the real estate
			 paper, as provided by the county assessor directly or indirectly through a
			 title insurance company, and:
(A) If
			 available, a statement of value based upon an appraisal or an opinion of value
			 prepared by an independent licensed appraiser may also be provided;
			 however
(B) Under no circumstances
			 may the statement of value be based upon any source other than the county
			 assessor or an independent licensed appraiser.
(i) If the transaction involves existing real
			 estate paper:
(A) The debtor's payment record
			 for the lesser of two years immediately preceding the sale or for the period of
			 existence of the real estate paper, covering the existing real estate paper
			 being sold; and
(B) If the payment
			 record is less than two years, or the real estate paper being sold is a junior
			 lien, a credit report on the debtor prepared by a credit reporting agency and
			 current within 90 days of the transaction.
(j) If the transaction involves real estate
			 paper to be created:
(A) The debtor's payment
			 record, if any, for the lesser of two years immediately preceding the sale or
			 for the period of existence of the real estate paper, covering:
(i) Any lien senior to the real estate paper
			 being created; and
(ii) Any lien
			 being retired with the proceeds from the subject sale.
(B) A credit report on the debtor prepared by
			 a credit reporting agency and current within 90 days of the transaction; and
(C) A financial statement of the
			 debtor current within 90 days of the transaction.
(k) If the seller of the real estate paper,
			 the seller's agent, or any affiliate is the debtor, a statement disclosing that
			 fact and the amount of cash paid to the debtor in consideration for the
			 issuance of the real estate paper;
(l) A statement of any commissions,
			 collection fees, and other costs chargeable to the purchaser of the real estate
			 paper; and
(m) A statement of
			 whether the purchaser of the real estate paper will be insured against casualty
			 loss.