OAR 123-052-1400
Requirements for Property Financed through the Program
(1)
Federal law requires that:(a)
Property financed through the Program consist only of:(A)
Agricultural Land as defined in OAR 123-052-1100 (Definitions)(3).(B)
Agricultural Improvements as defined in OAR 123-052-1100 (Definitions)(2).(C)
Depreciable Agricultural Property, as defined in OAR 123-052-1100 (Definitions)(11), that is used for farming on Agricultural Land.(i)
The total amount of used Depreciable Agricultural Property that is financed through the Program may not exceed the maximum amount permitted by federal law. The Applicant must provide the Department with an appraisal or other method of determining the value of any used Depreciable Agricultural Property that will be financed through the Program. The appraisal or other method of determining the value of any used Depreciable Agricultural Property must be satisfactory to the Department. On the date these rules are adopted, the maximum amount permitted by federal law for this purpose is $62,500; this amount may change periodically.(ii)
The total amount of new and used Depreciable Agricultural Property that is financed through the Program may not exceed the maximum amount permitted by federal law. On the date these rules are adopted, the maximum amount permitted by federal law for this purpose is $250,000; this amount may change periodically(iii)
The limits of subsections (i) and (ii) of this subsection (C) apply to all Depreciable Agricultural Property with respect to which the principal user is or will be the same person or 2 or more Related Persons.(b)
No more than two percent of the borrowed funds are used to pay costs related to obtaining the loan or participating in the Program.(c)
The Code limits the use of Aggie Bond proceeds to acquire property from a Related Person (as defined in OAR 123-052-1100 (Definitions)(21)). Property may be acquired from a Related Person only if:(A)
The acquisition price is the fair market value of the property, as shown in an independent, professional appraisal that is performed to qualify the property for financing with the Program and is acceptable to the Department; and(B)
The Related Person will not have a financial interest in the farming operation in which the Financed Property is used.(2)
The Financed Property is located, or will be used, in the State of Oregon.(3)
The Financed Property will only be used for farming by the Beginning Farmer or by the Beginning Farmer and the Beginning Farmer’s family.
Source:
Rule 123-052-1400 — Requirements for Property Financed through the Program, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-052-1400.