Oregon Statute § 86.155(1)(b) says:
(b) “Line of credit instrument” means a mortgage or trust deed that secures a consumer or commercial credit agreement and creates a lien on specified real property up to a stated amount, provided that the front page of the mortgage or trust deed, or a memorandum thereof:
(A) Contains the legend “line of credit mortgage,” “line of credit trust deed” or “line of credit instrument” either in capital letters or underscored above the body of the mortgage or trust deed;
The term “credit agreement” is defined in (1)(a) as “any promissory note, loan agreement or other agreement that provides for advances subsequent to the date of recording of the line of credit instrument that secures the note or agreement.”
Since construction agreements provide for advances after recording, this “line of credit” language applies to construction loan security instruments. Consequently, we are updating our Oregon security instruments titles to read “LINE OF CREDIT TRUST DEED” for construction or construction-to-permanent loans. The OR security instruments impacted are:
- OR Deed of Trust (Cx346)
- OR Deed of Trust Second (Cx504)
- FHA OR Deed of Trust (Cx19395)
These changes will be in effect on March 18, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 223443