Collateral Protection– This will essentially be an expansion of the homestead exemption, which currently protects up to $40,000 of property in the case of a bankruptcy.1 In order to better protect debtors, the exemption will be expanded to the equivalent of the portion of the property that the debtor has not paid, the principal. When the collateral is liquidated the portion that debtor owes to the lender will be repaid while the debtor will retain what is left. Normal real estate fees will also be taken out of the debtor’s portion of the sale. During the time the house goes unsold monthly interest payments and principal will still be owed to the lender by the debtor, this can be taken out of the debtor’s portion of the sale . The normal foreclosure period will stay in effect requiring debtors to vacate the house after 4 months. Sale of the property will be controlled by the debtor. The reason for this is that the lender may try to underprice the property knowing their portion is guaranteed in order to make a quick sale. Lenders may also potentially withhold sale as they may find it profitable to collect payments from the debtor. These laws can be applied to home mortgages, commercial mortgages, and potentially car loans and other types of business loans if there is collateral.
CD Regulation - CDs will be regulated in order to make them easier for customers to use. CDs will be regulated so they have settings that customers can adjust online. Customers will be able to set whether they want the CD to automatically renew or automatically be deposited in a bank account. Customers will be able to adjust the term length that they want the cd to be renewed at. CDs will always be automatically renewed at the highest rate offered for that term length. Customers will be able to adjust these settings as much as they want up until the time of maturity.
1 NOLO. Oregon Bankruptcy Homestead Exemption. Retrieved from https://www.nolo.com/legal-encyclopedia/oregon-bankruptcy-homestead-exemption.html