OAR 441-505-3070: Combining Loans to Separate Borrowers

(1) For purposes of ORS 708A.295, the phrase “obligations in the name of one person for the benefit of another person” shall include the following situations: (a) When proceeds of an obligation of a borrower are to be used for the direct benefit of the other person, as defined by OAR 441-505-3075, to the extent of the proceeds so used; or (b) When a common enterprise exists between the borrower and the other person, as defined by OAR 441-505-3080. (2) For the purposes of calculating if the loans and other obligations of a person to an Oregon commercial bank outstanding at any time exceed 15 percent of the Oregon commercial bank’s capital, the Oregon commercial bank shall include or aggregate obligations meeting the requirements under OAR 441-505-3075 or 441-505-3080 with obligations made to a borrower in the borrower’s individual capacity. (3) Obligations that are outstanding prior to the effective date of this rule may be renewed or extended as long as no additional funds, other than those funds the Oregon commercial bank agreed to lend prior to the effective date of this rule, are granted to either person in violation of OAR 441-505-3070 to 441-505-3080.