Or. Rev. Stat. Ann. § 86.255 requires, in connection with loans in which “a lender does not require a lender’s security protection provision” (e.g. an escrow account), but in which the parties arrange to establish such a provision, that the lender provide the borrower with a written statement disclosing that such an arrangement is not a condition of the loan, whether interest will be paid on the balance of the account (and if so, what the interest rate is), and whether or not the borrower must pay a charge for the account.
We provide Cx2775 for this requirement and its provisions closely match the requirements for lender’s security protection provisions set forth in Chapter 86, Title 9 of Oregon’s Revised Statutes. Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes to this document:
- In order to make the document easier to read, we will be removing phrases such as “I (We)” and “my (our)” throughout the document and add an explanatory sentence at its beginning specifying that references to first person pronouns throughout the document refer to all borrowers.
- The paragraph which defines “Discount Rate” will be updated to match the official definition of such Rate, as provided for in § 86.245(1).
- Other minor textual edits which are being made for grammatical purposes.
We will also be changing the configuration of this document so that it will print when “Occupancy” equals “Primary Residence”, since the type of property the disclosure applies to is “residential property, including multifamily property, that the borrower occupies” (Ibid. § 86.205).
These changes will take effect on October 3, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
September 29, 2014