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  5. 744 P.2d 588 (1987)
 

HARSH INV. CORP. v. STATE HOUSING DIV.

A8311-07238; CA A39941.

744 P.2d 588 (1987)

88 Or.App. 151

HARSH INVESTMENT CORP., Harold J. Schnitzer and Arlene Schnitzer, a Partnership Dba Clay Tower Apartments, Respondents, v. STATE of Oregon by and through the State HOUSING Division, Appellant.

Court of Appeals of Oregon.

Decided October 28, 1987.

Reconsideration Denied December 18, 1987.

Attorney(s) appearing for the Case

Michael D. Reynolds, Asst. Atty. Gen., Salem, argued the cause for appellant. With him on the briefs were Dave Frohnmayer, Atty. Gen., and Virginia L. Linder, Sol. Gen., Salem.

Charles F. Adams, Portland, argued the cause for respondents. With him on the brief was Susan M. Hammer, Portland.

Before WARDEN, P.J., and VAN HOOMISSEN and YOUNG, JJ.

WARDEN, Presiding Judge.

The State Housing Division (the Division) appeals from a judgment for plaintiffs in this action for breach of an alleged contract to make a construction loan. It asserts that it was without authority to enter into a contract on the terms that plaintiffs allege that it did and that plaintiffs, therefore, may not seek damages for any breach. We agree and reverse.

The 1977 legislature proposed a constitutional amendment to authorize the...

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