OAR 575-070-0090: Default

(1) A loan shall be judged to be in default when an installment is due and not paid within 120 days. (2) The holder of a note may exercise the right of offset against any maker or co-maker of defaulted loans under the conditions set forth by the laws of the State of Oregon. The maker or co-maker shall pay any charges for assistance in exercising the right of offset incurred by the holder of the note. (3) The maker or co-maker shall pay all charges incurred should the note(s) be referred to an outside collection agency. (4) The application of offsets to a defaulted loan shall not be credited to future payments nor be a substitute for regular monthly installments. (5) The prepayment of a portion of a defaulted loan shall not be credited to future payments nor be a substitute for regular monthly installments.