Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0010 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Annual
			 percentage rate" or "APR" means the annual percentage rate that every licensee
			 is required by Regulation Z of the Federal Truth in Lending Act (Title I of the
			 Consumer Credit Protection Act) to disclose to each of its credit
			 customers.
(2) "Borrower" means a
			 natural person.
(3) "Charges" means
			 any one or more of the fees, premiums or other charges described by ORS
			 725.340(2)(a), (3) and
			 (4), and other items charged to a borrower's
			 account; but the term does not include interest or deferral charges.
(4) "Deferral charges" means the additional
			 charge assessed by a licensee made for deferring all unpaid installments as
			 provided by ORS 725.340(2)(b).
			 Deferral charges do not apply to loans with a single payment payback
			 feature.
(5) "Director" means the
			 Director of the Department of Consumer and Business Services.
(6) "Finance charge" means the cost of
			 consumer credit as a dollar amount. It includes any charge payable directly or
			 indirectly by the consumer and imposed directly or indirectly by the creditor
			 as an incident to or a condition of the extension of credit. It does not
			 include any charge of a type payable in a comparable cash
			 transaction.
(7) "Formalized
			 grading system" means a formula or computer program that determines the
			 creditworthiness of individual borrowers based on information regarding the
			 borrower's financial condition, such as the borrower's income, assets, debts
			 and financial obligations, and the nature and value of any collateral used to
			 secure the loan.
(8) "Fully
			 amortized" means characterized by periodic payments, that if made as scheduled,
			 result in full repayment of the principal and interest owed on a loan by the
			 end of the loan term.
(9) "License"
			 means a consumer finance license issued under ORS
			 725.140.
(10) "Legally qualified in this state" means
			 a business is qualified to conduct business in this state, having made the
			 appropriate filings with the Secretary of State.
(11) "Licensee" means a person in the
			 business of making loans for periods of more than 60 days that have periodic
			 payments.
(12) "Loan" means a loan
			 that is subject to the Oregon Consumer Finance Act.
(13) "Loan underwriting" means a written or
			 otherwise documented evaluation of the assumption of risk preceding the
			 granting of a loan to a specific borrower, and may be fulfilled through use of
			 a formalized grading system. Loan underwriting may be based on one or more of
			 the following:
(a) Credit information
			 furnished by the borrower, such as employment history, income, and outstanding
			 obligations;
(b) A financial
			 statement that includes income, assets and debts;
(c) Publicly available information concerning
			 the borrower, that may include the borrower's credit report;
(d) The borrower's credit needs and
			 willingness and ability to pay, including the nature and value of any
			 collateral used to secure the loan.