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Can you summarize ORAR 441-730-0205?
CONSUMER FINANCE > Limitation on Charging a Prepayment Penalty by Consumer Finance Licensees
Short Summary
This document governs the limitation on charging a prepayment penalty by consumer finance licensees in Oregon. It applies specifically to consumer finance licensees. The document outlines situations where a licensee may not charge a penalty for prepayment of all or part of the unpaid balance of a loan. These situations include when the licensee refinances a loan they own, repossesses collateral and applies the proceeds towards the unpaid balance, forecloses on property and applies proceeds from the foreclosure, exercises an option in the loan agreement for immediate repayment, repays the loan balance with insurance benefits resulting from the borrower’s death, or demands repayment of the unpaid balance. The document also specifies that the limitation does not apply to home equity lines of credit or unsecured lines of credit. The statutory authority for this limitation is ORS 725.320 & 725.505.
Whom does it apply to?
Consumer finance licensees
What does it govern?
Limitation on Charging a Prepayment Penalty by Consumer Finance Licensees
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Oregon