Or. Admin. Code § 123-300-1100 - Reimbursement of Claims from Loan Loss Reserve Account

(1) The Department shall approve a lender's Claim to reimburse the lender for Loss on an Enrolled Loan in default pursuant to the process and requirements described in OAR 123-300-1000.

(2) The Department shall reject a Claim if the Department determines that the:

(a) Lender has not completed required liquidation of the Borrower's assets, realization of claims against the personal or financial guarantees on the Enrolled Loan, or realization of other sources as applicable; or

(b) Representations and warranties provided by the lender at the time of enrollment of the Qualified Loan, in the liquidation plan, or at the time of a claim for reimbursement were false.

(3) The liability of the State of Oregon and the Department under the Agreement is limited to the amount of moneys awarded and credited to the lender's Loan Loss Reserve Account. All moneys awarded and credited to the lender's Loan Loss Reserve Account, including all interest earnings shall be available to pay approved Loss Claims.

(4) When there are insufficient funds in the Loan Loss Reserve Account to cover the total amount of an approved Loss Claim, the Department shall authorize payment of an amount equal to the balance of the Loan Loss Reserve Account. Such payment of the balance shall fully satisfy the Claim and the lender will have no further rights to receive any other amount with respect to the Claim.

(5) The Department shall review Loss Claims in the order it receives them. If a lender files two or more Loss Claims simultaneously and there are insufficient funds in the Loan Loss Reserve Account to pay them, then the lender may designate the order the Loss Claims are to be processed by the Department.

(6) Loan Loss Reserve Accounts without a balance shall be closed and the lender shall be required to continue reporting in compliance with its Agreement and OAR 123-300-1300.

Notes

Or. Admin. Code § 123-300-1100

OBDD 6-2022, temporary adopt filed 10/12/2022, effective 10/12/2022 through 4/9/2023

Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799

Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008