2011 ORS § 86A.227¹
Corporate surety bond required
- • right of action
- • rules
(1) A person that employs a mortgage loan originator shall file with the Director of the Department of Consumer and Business Services a corporate surety bond that runs to the State of Oregon and that covers each mortgage loan originator the person employs. The corporate surety bond must be issued by a corporate surety or an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act), that is authorized to transact business in this state.
(2) The director by rule shall:
(a) Prescribe the form of the corporate surety bond;
(b) Require the person to maintain the corporate surety bond in an amount that reflects the dollar amount of the loans the person originated or in a minimum amount the director specifies; and
(c) Prescribe other requirements for the corporate surety bond as are necessary to accomplish the purposes of ORS 86A.200 (Definitions) to 86A.239 (Display of license and unique identifier).
(3) A right of action against the corporate surety bond required under this section exists to the same extent that a right of action exists under ORS 86A.151 (Liability of person that employs mortgage loan originator).
(4) The director may require the person to file a new corporate surety bond if an action is commenced against the corporate surety bond on file with the director. The person shall file a new corporate surety bond immediately if a recovery is obtained against the bond. [2009 c.863 §9]