Oregon – Semi-Annual Escrow Rate Adjustment

ORS 86.245 requires that Oregon State lenders who require security protection in connection with a real estate loan to pay interest on funds in an escrow account of at least the discount rate.  The rate is adjusted semiannually, and calculated on May 15 and November 15, and covers the following six-month period.  The discount rate is calculated by the most recent auction of 91-day Treasury bills minus 100 basis points.

Since the discount rate is less than zero, payment of interest is not required on escrow accounts from July 1, 2016 through December 31, 2016.  There is no restriction on paying interest if the credit union wishes.  Any payment, or non-payment, of interest or dividends also must match any agreement the credit union has with its borrower.

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