OAR 123-018-0040
Agreement
(1)
For the creation of a Loss Reserve Account by the Department, owned by the Department for the benefit of the Participating Financial Institution in accordance with ORS 285B.115 (Loss reserve accounts);(2)
That the liability of the State of Oregon and the Department to the Participating Financial Institution under the Agreement is limited to the outstanding balance in the Loss Reserve Account for that Participating Financial Institution, less the portion of the interest that is available for withdrawal by the Department for administrative costs as described in OAR 123-018-0060 (Ownership, Control, Investment of Loss Reserve Account);(3)
That the terms and conditions of Qualified Loans are to be determined solely by the Participating Financial Institution and Borrower;(4)
The method for enrolling Qualified Loans in the Program;(5)
That the Borrowers, the Participating Financial Institution, and (subject to the availability of money in the Fund) the Department will deposit moneys into the Participating Financial Institution’s Loss Reserve Account when the Participating Financial Institution makes a Qualified Loan to a Borrower;(6)
A claims process for reimbursement of Losses that have been incurred from defaults on Enrolled Loans;(7)
For payment by the Department from the Loss Reserve Account to the Participating Financial Institution to reimburse it for such Losses, up to the total amount of the then current balance available in the Loss Reserve Account, less the portion of the earned interest that belongs to the department for administrative costs.(8)
For disposition of any recoveries from a Borrower made by the Participating Financial Institution subsequent to being reimbursed for any Loss by the Department;(9)
Conditions for subrogation of the Department, at the Department’s request, to the rights of the Participating Financial Institution in collateral, personal guarantees or other forms of security for the Qualified Loan;(10)
Conditions for withdrawal by the Department of excess balances or of certain interest earnings (see OAR 123-018-0150 (Withdrawal of Excess Deposits in Loss Reserve Accounts)) in the Loss Reserve Account;(11)
Conditions for termination by the Department of the obligation to enroll Qualified Loans under the Program;(12)
Conditions for termination of the Agreement, and disposition by the Department of any remaining balance in the Loss Reserve Account;(13)
For withdrawal by the Participating Financial Institution from the Program and disposition by the Department of any remaining balance in the Loss Reserve Account;(14)
For the Participating Financial Institution to periodically report to the Department any information the Department requires, including financial information that is identifiable with, or identifiable from, the financial records of a Borrower;(15)
For inspection by the Department of the Participating Financial Institution’s pertinent files relating to Enrolled Loans;(16)
That the Department may require from the Participating Financial Institution information relating to the Participating Financial Institution’s status and performance, as developed by or for applicable state or federal regulatory bodies, and relevant to the Participating Financial Institution’s participation in the Program or the financial health of institution, or that the Department may obtain public information from state or federal regulatory bodies such as the Oregon State Department of Consumer and Business Services, Division of Finance and Corporate Securities; and(17)
For other terms and conditions as the Department may require.
Source:
Rule 123-018-0040 — Agreement, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-018-0040.