Or. Admin. Code § 410-141-5110 - ASSET VALUATION AND PERMITTED INVESTMENTS: Investment in Mortgage Loans
(1) Funds of a
CCO may be invested in:
(a) Loans secured by
first liens upon improved, unencumbered real property (other than leaseholds)
in the manner and subject to the same terms and conditions set forth in OAR
410-141-5105, except that the
property may be located within the boundaries of any sovereign; for loans
described in OAR 410-141-5105
(1)(b)(B), the maximum permitted ratio of the
loan to the appraised value shall be 80 rather than 66-2/3 percent, and the
maximum term of the loan shall be 30 rather than 25 years.
(b) Loans secured by first liens upon a
leasehold of improved, unencumbered real property located within the boundaries
of any sovereign if:
(A) The leasehold has a
period of not less than 20 years to run from the date of the loan, inclusive of
the term which may be provided by an enforceable option of renewal, the loan
does not exceed 70 percent of the fair market value of the leasehold together
with any improvements located thereon which are subject to the lien, the terms
of the loan provide for amortization payments to be made by the borrower on the
principal thereof at least once in each year in amounts sufficient to
completely amortize the loan within a period of four-fifths of the term of the
leasehold, and the CCO is entitled to be subrogated to all rights of the lessee
under the leasehold; or
(B) The
investment is insured or guaranteed in the manner provided in OAR
410-141-5105
(1)(b)(C).
(2) A loan upon the security of real property
or a leasehold interest therein which is a participation in or a part of a
series or issue shall not be made unless the CCO holds a senior participation
or similar security interest in the mortgage or deed of trust giving it
substantially the rights of a first mortgagee.
(3) Nothing in OAR
410-141-5085 to
410-141-5165 shall prohibit a
CCO from renewing or extending a proper loan secured by a first lien upon real
property or a leasehold interest therein made pursuant to this section or to
OAR 410-141-5105 for the original or
a lesser amount even though such amount is a greater percentage of the current
fair market value of the real property or leasehold than would otherwise be
permitted under such sections.
(4)
On loans secured by liens upon real property or leasehold interests therein,
the buildings and other improvements located on the premises shall be kept
insured against loss or damage from fire in an amount not less than the unpaid
balance of the obligation or the insurable value of the property, whichever is
the lesser. The fire insurance policy or policies shall be payable to the CCO,
or a trustee for its benefit, and continued in force until the loan is repaid
or satisfied. Such policy or policies shall be held by the CCO or the trustee,
unless the Authority has determined that a different method of protecting the
CCOs against loss is satisfactory and has given prior approval of such method
to the CCO.
Notes
Statutory/Other Authority: ORS 413.042, 414.572, 414.591 & 414.605
Statutes/Other Implemented: ORS 414.570-414.686 & 415.001-415.430
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