OAR 123-052-1610
Application When Aggie Bonds are Purchased by a Standard Lender
(1)
An Applicant must apply for qualification to the Program on a form provided by the Department.(2)
Each Application shall:(a)
Contain a representation that the Application is an individual who has reviewed the Program rules and determined that the Applicant qualifies as a Beginning Farmer as described in OAR 123-052-1300 (Requirements for Beginning Farmers).(b)
Contain a description of the costs to be financed through the Program, together with a representation that those costs are Permitted Costs that comply with the requirements of these administrative rules.(c)
Be accompanied by a commitment, letter of interest or similar document satisfactory to the Department, from the proposed Standard Lender that:(A)
Outlines the terms of the proposed loan;(B)
Expresses the lender’s interest in making the loan through the Program;(C)
States that the lender is qualified to make an Aggie Bond loan under OAR 123-052-1500 (Requirements for Standard Lenders), and provides facts supporting this statement.(D)
States whether the Lender will require that the Applicant receive training in farm management.(E)
States that the Lender has reviewed, and is willing to execute, a Financing Agreement in substantially the form provided by the Department, and is willing to make the proposed loan under a Loan Agreement substantially in the form and with the substance of the form of Loan Agreement provided by the Department.(d)
States that the Applicant has reviewed the form of Loan Agreement provided by the Department and is willing and able to make the certifications and promises, including the federal tax certifications, provided in that form.(e)
Be accompanied by an application fee of $250. This fee is not refundable.(f)
Unless the Financed Property will consist exclusively of new Depreciable Agricultural Property, be accompanied by an appraisal that is satisfactory to the Department. The Lender should contact the Department to determine the Department’s requirements for appraisals before the Lender orders an appraisal.(g)
Contain any other information or documents specified in the Application form provided by the Department.(3)
The Department shall review each completed Application and notify the Applicant within thirty days indicating whether the Applicant, the proposed project and the proposed lender appear eligible for the Program.(4)
Expenditures made by the Borrower more than sixty days before the Aggie Bonds are issued generally are not eligible for financing with Aggie Bonds unless the Department has signed a Reimbursement Declaration. If the Department signs a reimbursement declaration, expenditures made more than sixty days before the Reimbursement Declaration is signed are generally not eligible for financing with Aggie Bonds. If the Department determines that the Applicant, the proposed project and the proposed lender appear eligible for the Program, the Department shall sign a Reimbursement Declaration that complies with the requirements of Section 1.150 (Proceedings to be in English)-2 of the Code. Execution of the Reimbursement Declaration by the Department permits the Borrower to use the Program to finance certain expenditures made no earlier than sixty days before such Reimbursement Declaration is signed, but does not assure the Applicant that any Aggie Bond will be issued. The Department shall notify the Applicant promptly upon execution of the Reimbursement Declaration.
Source:
Rule 123-052-1610 — Application When Aggie Bonds are Purchased by a Standard Lender, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-052-1610.