OAR 274-020-0343: Interest Rates on Loans Secured by Property Transferred to Non-Veterans

(1) Effective February 3, 1982, the interest rate on all loans secured by property transferred before February 3, 1982 will not change on the first transfer on or after February 3, 1982, but on any subsequent transfer the interest rate will be as provided by this rule and will be variable, with the limitation that the rate will not decrease and will not increase more than an additional one percent, except as provided under ORS 407.335(4). (2) Subject to the conditions and limitations of section (1) of this rule, the interest rate on real property loans, when the property securing the loan is transferred to someone other than those entitled to the veteran’s interest rate, shall be: (a) Through August 21, 1969, 5 percent; (b) Effective August 22, 1969, 6.2 percent; (c) Effective September 4, 1969, 7.9 percent; (d) Effective December 10, 1969, 8.1 percent; (e) Effective April 8, 1970, 7.8 percent; (f) Effective August 19, 1970, 7.4 percent; (g) Effective January 6, 1971, 6.4 percent; (h) Effective May 27, 1971, 7 percent; (i) Effective June 1, 1977, 8 percent; (j) Effective December 1, 1977, 8.8 percent; (k) Effective December 1, 1978, 9.8 percent; (l) Effective December 1, 1979, 11 percent; (m) Effective December 1, 1980, 13 percent; (n) Effective December 1, 1981, 17 percent; (o) Effective February 3, 1982, 12 percent; (p) Effective October 15, 1982, 11.5 percent; (q) Effective January 1, 1985, 11.52 percent; (r) Effective January 1, 1986, 9.86 percent, or one percent higher than the rate on the original note, whichever is higher. “The rate on the original note” shall be the rate stated as such on the note; (s) Effective January 1, 1987, 8.59 percent, or one percent higher than the rate on the original note, whichever is higher; (t) Effective September 1, 1987, 10.75 percent, or the rate existing on the loan immediately prior to the transfer, whichever is higher. (3) Subject to the conditions and limitations of section (1) of this rule, the interest rate on personal property loans, when the property securing the loan is transferred to someone other than those entitled to the veteran’s interest rate, shall be: (a) Effective May 30, 1975, 9 percent. Personal property included leaseholds until leaseholds were defined as real property on October 4, 1977. On or after October 4, 1977, the interest rate on leaseholds is the real property interest rate; (b) Effective December 1, 1977, 9.8 percent; (c) Effective December 1, 1978, 10.8 percent; (d) Effective December 1, 1979, 12 percent; (e) Effective December 1, 1980, 14 percent; (f) Effective December 1, 1981, 18 percent; (g) Effective February 3, 1982, 12 percent; (h) Effective December 1, 1982, 12.5 percent; (i) Effective January 1, 1985, 11.52 percent; (j) Effective January 1, 1986, 9.86 percent, or one percent higher than the rate on the original note, whichever is higher. “The rate on the original note” shall be the rate stated as such on the note; (k) Effective January 1, 1987, 8.59 percent, or one percent higher than the rate on the original note, whichever is higher; (l) Effective September 1, 1987, 10.75 percent, or the rate existing on the loan immediately prior to the transfer, whichever is higher. (4) This rule does not apply to transfers to the surviving spouse, unremarried former spouse, surviving child, or stepchild of the original borrower, who are entitled to the veteran’s interest rate.