Or. Admin. R. 123-300-1301

Current through Register Vol. 63, No. 8, August 1, 2024

Section 123-300-1301 - Assignment of Enrolled Loan to Department

(1) As provided in OAR 123-300-1001(9), the Department, at its sole discretion, may take assignment of a defaulted Enrolled Loan and pursue collection efforts.

(2) Lender shall assign the Enrolled Loan to the Department upon the Department's request. The Department shall not approve a Claim and the lender shall not recover any amount from the Loan Loss Reserve Account for the Loss while the Department is engaged in such collection efforts.

(3) The Department may take assignment if the Department believes that it would be able to take effective and proper action to more completely realize a return on the remaining available collateral or other sources of security for the defaulted Enrolled Loan, compared to the lender, regardless of whether the lender has indicated its inability or unwillingness to take such action.

(4) In response an assignment request, the Lender shall promptly assign its rights to the Department, providing the Department with originals of all applicable documents, accompanied by enforceable assignments and conveyances to the Department.

(5) All recoveries of the Department will be applied in the following order, until all expenses and the corresponding Loss are satisfied, to:

(a) Department's legal and administrative costs associated with the enforcement of remedies to recover Losses, including costs incurred in the liquidation of assets, costs incurred in realization of personal or other financial guarantees, or other costs incurred related to the defaulted Enrolled Loan;

(b) The lender's Loss not to exceed the principal balance of the Enrolled Loan; then,

(c) The lender's unpaid accrued interest, fees, legal expenses, costs incurred in the liquidation of assets, costs incurred in realization of personal or other financial guarantees, or other costs incurred by the lender related to the defaulted Enrolled Loan.

Or. Admin. R. 123-300-1301

OBDD 9-2023, adopt filed 06/13/2023, effective 6/13/2023

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

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