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ASSOCIATED OREGON VETERANS v. DVA

CC 85-2710; CA A38080; SC S32379.

712 P.2d 103 (1985)

300 Or. 441

ASSOCIATED OREGON VETERANS, an Unincorporated Association, David Munz and Terry L. and Debra S. Harrison, Husband and Wife, On Behalf of Themselves and All Other Persons Similarly Situated, Respondents, v. DEPARTMENT OF VETERANS' AFFAIRS, Appellant.

Supreme Court of Oregon.

Decided December 27, 1985.

Attorney(s) appearing for the Case

William F. Gary, Deputy Atty. Gen., Salem, argued the cause for appellant. With him on the brief were Dave Frohnmayer, Atty. Gen., James E. Mountain, Jr., Sol. Gen., Michael D. Reynolds, Asst. Atty. Gen., and Kendall M. Barnes, Asst. Atty. Gen., Salem.

James M. Brown, Salem, argued the cause for respondents. With him on the brief were Joseph C. Guimond and Enfield, Guimond & Brown, Salem.

Before CAMPBELL, P.J., and CARSON and JONES, JJ., and WARREN and ROSSMAN, JJ. pro tempore.

PER CURIAM.

The issue in this case is whether the Department of Veterans' Affairs (DVA) may unilaterally modify its lending agreements with veterans to increase monthly payments when it raises interest rates. Plaintiff borrowers1 claim that the DVA must allow them to choose between higher monthly payments or extended amortization periods. The Marion County Circuit Court ruled for the plaintiffs. This case comes to us on certification from...

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