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 semi-annually, 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 the 91-day Treasury bills minus 100 basis points.
The discount rate for the 91-Day/13 Week Treasury Bill was 0.885 percent. Because the discount rate is less than 1 percent and subtracting 100 basis points would result in less than zero, interest is not required on escrow accounts from July 1, 2017 through December 31, 2017. 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 the borrower.