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.
Notes
Or. Admin. Code §
123-021-3500
EDD
5-1994(Temp), f. & cert. ef. 3-3-94; EDD 11-1994, f. & cert. ef.
7-29-94; EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-30-09,
cert. ef. 11-1-09;
OBDD
3-2023, renumbered from 123-021-0100, filed 01/18/2023, effective
1/18/2023;
OBDD
4-2023, temporary amend filed 01/25/2023, effective
1/25/2023 through 7/23/2023;
OBDD
27-2023, renumbered from 123-021-1400, filed 10/06/2023, effective
10/6/2023;
OBDD
28-2023, temporary amend filed 10/13/2023, effective
10/13/2023 through
4/5/2024;
OBDD
2-2024, amend filed 03/06/2024, effective
3/8/2024
Statutory/Other Authority: ORS 285A.075 & 285B.200 -
285B.218
Statutes/Other Implemented: ORS 285B.200 -
285B.218
