Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 21 - OPERATION OF OREGON CREDIT ENHANCEMENT FUND
Section 123-021-3500 - Lender Agreement

(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.