Interest rate laws in the state of Oregon are found in Title 8, Chapter 82 of Oregon Revised Statutes. According to Section 82.010, the legal rate would be nine percent (9 %) per annum unless the parties have agreed to a different rate of interest in a contract. Under this Section, any person who violates the lawful rate provided under this Section will forfeit the right to collect or receive any interest upon any loan contracted for or received.
The rate of interest on judgments for the payment of money is nine percent (9 %) per annum according to Section 82.010. Moreover, a judgment on a contract bearing more than nine percent interest will bear interest at the same rate provided in the contract as of the date of entry of the judgment.
Certain types of transactions and entities are exempt from the state law on usury and interest rates. The exceptions are:
- Any financial institution or trust company, any consumer finance licensee or any pawnbroker licensed are exempted from usury limits;
- Any lender approved by the Secretary of Housing and Urban Development of the United States for participation in any mortgage insurance program under the National Housing Act;
- Secured loans are exempted from usury limits;
- Any interest charge by broker-dealers registered under the Securities Exchange Act of 1934 is exempted from usury limits;
- Any bona fide sale or resale of securities or commercial paper is exempted from usury limits;
- Any loan permitted under applicable federal law and regulations from a tax qualified retirement plan to a person then a participant under the plan is exempted form usury limits.
ORS § 82.010
Legal rate of interest; effect of violation.
(1) The rate of interest for the following transactions, if the parties have not otherwise agreed to a rate of interest, is nine percent per annum and is payable on:
(a) All moneys after they become due; but open accounts bear interest from the date of the last item thereof.
(b) Money received to the use of another and retained beyond a reasonable time without the owner’s express or implied consent.
(c) Money due or to become due where there is a contract to pay interest and no rate specified.
ORS § 82.025
Exemptions from application of ORS 82.010 (3) and (4) and 82.020.
ORS 82.010 (3) and (4) and 82.020 do not apply to:
(1) Any financial institution or trust company, as those terms are defined in ORS 706.008, any consumer finance licensee under ORS chapter 725 or any pawnbroker licensed under ORS chapter 726.
(2) Any lender approved by the Secretary of Housing and Urban Development of the United States for participation in any mortgage insurance program under the National Housing Act (12 U.S.C. 1701 et seq.).
(3) Any loan secured by a first lien on real property or made to finance the acquisition of real property and secured by any lien on that property.
(4) Any loan that is secured by real property, scheduled under the loan agreement to be repaid in substantially equal payments and made by a lender described in this subsection. A lender under this subsection is one who makes, invests in or arranges real property loans, including loans secured by first liens on residential manufactured homes, aggregating more than $ 1 million per year. Under this subsection, payments shall be substantially equal if, under the terms of the loan agreement, no single scheduled payment is more than twice the amount of any other scheduled payment.
(5) Any loan wholly or partially secured or covered by guarantees or insurance by the Federal Housing Administration, the United States Department of Veterans Affairs or Rural Development or the Farm Service Agency of the United States Department of Agriculture, any department, bureau, board, commission or agency of the United States, or any corporation wholly owned, directly or indirectly by the United States.
(6) Any loan permitted under applicable federal law and regulations from a tax qualified retirement plan to a person then a participant under the plan.
(7) Any bona fide sale or resale of securities or commercial paper.
(8) Any interest charge by broker-dealers registered under the Securities Exchange Act of 1934 for carrying a debit balance in an account for a customer if the debit balance is payable on demand and secured by stocks or bonds.