Or. Admin. R. 123-300-1900

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

Section 123-300-1900 - Release of Lender from Agreement and Use of Balance in Account

(1) A lender shall be released from any obligation under an Agreement and may use for any purpose the remaining balance in the lender's Loan Loss Reserve Account, including accrued interest, if the lender has:

(a) Performed under the terms and conditions of an Agreement entered into with the Department for a period of 10 years;

(b) Attained during the 10-year period of the Agreement, a ratio of four-to-one (4:1) of total principal amount of Enrolled Loans made by the lender to the amount of moneys awarded to the lender under the Program; and,

(c) Complied with the annual and final reporting requirements of the Program provided under OAR 123-300-1400.

(2) Upon receipt of the lender's final report, required annual reports and request for release, the Department shall calculate the ratio of total principal amount of Enrolled Loans made by the lender to the amount of moneys awarded to the lender under the Program to determine if lender has met the requirement of (1)(b) of this section.

(3) Failure of the lender to meet the requirement in (1)(b) of this section, shall require the lender to return a portion of the balance of the lender's Loan Loss Reserve Account to the Department in an amount necessary to achieve the leverage ratio requirement of the provision.

(4) Any balance due under section (3) shall be remitted to the Department in full prior to release of the lender's obligations or termination of the Agreement.

(5) A release under this section does not absolve a lender of any contractual obligations owed to a Borrower under a loan agreement.

(6) Upon release of lender from an Agreement, the Loan Loss Reserve Account shall be closed and any outstanding fees or balance due shall be paid in full by the lender.

Or. Admin. R. 123-300-1900

OBDD 6-2022, temporary adopt filed 10/12/2022, effective 10/12/2022 through 4/9/2023

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

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