OAR 123-092-0070
Loan Agreement

(1) If the Finance Committee approves a loan, the Department and the borrower may enter into a loan contract that, among other matters:
(a) shall set forth a plan for repayment by the borrower to the Oregon Royalty Fund moneys borrowed from the Fund, along with royalties calculated as a percentage of the borrower’s sales or revenue, interest charged on moneys loaned, principal and interest payments, and/or other forms of payment as a means of effecting an adequate rate of return on the monies loaned, as determined at the sole discretion of the Finance Committee, and:
(A) based on loan pricing and total repayment costs, ORF financing for the project does not directly compete with traditional commercial lending sources,
(B) is commensurate with the level of risk taken when making the loan, and
(C) are anticipated to cover operational expenses and losses incurred by the ORF.
(b) Shall set forth a schedule of or conditions triggering payments and the period of the loan, which shall not exceed 61 months from the date of the loan contract.
(c) Shall provide that the liability of the state under the contract is contingent upon the availability of moneys in the Oregon Royalty Fund for use in the business development project.
(d) Shall require that the borrower is responsible for payment of, separate and above any other amounts owed on the loan:
(A) Insurance premiums as needed to maintain in full force life insurance and other types of insurance in an amount and coverage that is acceptable to the Finance Committee.
(B) Out-of-pocket costs associated with the loan closing which may include but are not limited to filing fees, recording fees, title insurance, appraisals, and attorney fees.
(e) That the borrower will provide to the Department on a periodic basis, such financial statements as the Department may require.
(f) Shall provide that the applicant, borrower, guarantors, and principal owners are in compliance with and agrees to abide by all federal, state, and local laws and regulations.
(g) Shall specify any additional payment from the borrower as the Finance Committee may require for other circumstances, such as if the borrower elects to repay the loan before the originally approved term, if the borrower is acquired or experiences a significant change in ownership, or to achieve a specified repayment amount or rate of return.
(2) The Department, at its sole discretion, may require the execution of a Commitment Letter and receipt of a non-refundable Commitment Fee to secure resources necessary to fund the loan. The Commitment Fee will be applied at closing to the Loan Fee. If the loan does not close, the Commitment Fee will not be refunded.

Source: Rule 123-092-0070 — Loan Agreement, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-092-0070.

Last Updated

Jun. 8, 2021

Rule 123-092-0070’s source at or​.us