Oregon § 86.255 Arrangements where security protection provisions not required; information to borrower

Oregon Statutes

§ 86.255 — Arrangements where security protection provisions not required; information to borrower

Oregon § 86.255

Vol.2

Title 9Mortgages and Liens

Ch. 86Mortgages; Trust Deeds

This text of Oregon § 86.255 (Arrangements where security protection provisions not required; information to borrower) is published on Counsel Stack Legal Research, covering Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Or. Rev. Stat. § 86.255 (2026).

Text

In any real estate loan agreement with respect to which a lender does not require a lender’s security protection provision, the parties may mutually agree to any arrangement whereby the borrower prepays, pledges or otherwise commits assets in advance of due dates for payment of property taxes, insurance premiums and similar charges relating to the real property in order to assist the borrower in making timely payments of the charges. Prior to entering any such arrangement, the lender shall furnish the borrower a statement in writing, which may be set forth in the loan application:

(1)That the arrangement is not a condition to the real estate loan agreement;

(2)If it is an escrow account, whether or not the lender will pay interest and if interest is to be paid, the rate of interest; and

Free access — add to your briefcase to read the full text and ask questions with AI

In any real estate loan agreement with respect to which a lender does not require a lender’s security protection provision, the parties may mutually agree to any arrangement whereby the borrower prepays, pledges or otherwise commits assets in advance of due dates for payment of property taxes, insurance premiums and similar charges relating to the real property in order to assist the borrower in making timely payments of the charges. Prior to entering any such arrangement, the lender shall furnish the borrower a statement in writing, which may be set forth in the loan application:
(1) That the arrangement is not a condition to the real estate loan agreement;
(2) If it is an escrow account, whether or not the lender will pay interest and if interest is to be paid, the rate of interest; and
(3) Whether or not the borrower must pay the lender a charge for the service. If a charge is agreed to, the charge shall not exceed the amount of interest income earned under subsection (2) of this section.