ORS 399.240
Limitation on rate of interest incurred by state service members during period of active service
(1)
As used in this section:(a)
“Interest” includes service charges, renewal fees or other charges or fees associated with an obligation or liability.(b)
“Service member” means:(A)
A member of the organized militia who is called into active service of the state by the Governor under ORS 399.065 (Ordering organized militia into active state service) (1) for 30 or more consecutive days.(B)
A member of the Oregon National Guard who is called into active federal service under Title 10 of the United States Code.(2)
Notwithstanding ORS 82.010 (Legal rate of interest), 83.095 (Service charge computed by actuarial method), 708A.255 (Interest rates on loans or uses of money), 723.502 (Purposes), 723.730 (Corporate central credit union) and 725.340 (Interest and other charges), an obligation or liability bearing interest at a rate in excess of six percent per year incurred by a service member before being called into active service may not, during any part of the period of active service, bear interest in excess of six percent per year except by court order.(3)
The service member shall provide written notice to the creditor requesting that the rate of interest be reduced to six percent per year and shall include proof of the official orders showing that the service member is being called into active service of the state by the Governor under ORS 399.065 (Ordering organized militia into active state service) (1) or into active federal service under Title 10 of the United States Code.(4)
A creditor that receives a request under subsection (3) of this section to reduce a rate of interest may apply to the court for a determination that the ability of a service member to pay interest on an obligation or liability at a rate in excess of six percent per year is not materially affected because of the active service of the member. If a court determines that the ability of a service member to pay interest on an obligation or liability at a rate in excess of six percent per year is not materially affected because of the active service of the member, the court may order an interest rate that is just.(5)
A creditor must recompute the payment schedule to amortize the balance of the obligation or liability over the remainder of the obligation or liability at a rate of interest determined under subsection (2) or (4) of this section. [2003 c.387 §4; 2005 c.79 §2; 2009 c.541 §20]
Source:
Section 399.240 — Limitation on rate of interest incurred by state service members during period of active service, https://www.oregonlegislature.gov/bills_laws/ors/ors399.html.
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