(3) Notwithstanding ORS 86.245 (Interest on security protection deposits) (5) and (7), the Department of Veterans’ Affairs shall pay interest to a borrower or contract purchaser on funds deposited in the escrow account for the borrower or contract purchaser in the manner and at the rate of interest described in ORS 86.245 (Interest on Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or STATE REGULATION OF MORTGAGE ESCROW ACCOUNTS Page 5 of 11 Rev. 03/25/08 5 State Origination Requirements Interest on Escrow Servicing Requirements does not prohibit charging tax service fee. *Borrowers eligible for escrow account discontinuance must be notified within 60 days after fifth anniversary of date of mortgage

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