OAR 340-082-0040
Loan or Obligation Purchase Agreement
(1)
Following review and approval of the application documents and final construction plans and specifications by the Department and legal authorization by the governing body of the agency or its electorate, if necessary, to enter into a loan agreement with the state or an agreement to sell its general obligation bonds or other obligations to the state, the Department may enter into such loan or purchase agreement in a principal amount up to 100 percent of the eligible project cost including the construction bid accepted, estimated engineering and inspection costs, eligible legal and fiscal costs and a contingency allowance to be established by the Department. Combinations of funds granted and loaned by whatever means shall not total more than 100 percent of the eligible project costs.(2)
The loan or purchase agreement shall identify sources and amounts of revenue, to be dedicated to loan or obligation retirement sufficient to demonstrate that the facilities to be constructed will be self-supporting and self-liquidating. The agency will be required to furnish an annual audit report to the Department to show that adequate and acceptable revenues continue to be available for loan obligation retirement.(3)
When the state is requested to purchase local obligations and a bond purchase agreement is entered into, the local obligations will be purchased at par to an even multiple of $5,000, except that when the amount of local obligations to be purchased by the state is less than $100,000 they may be purchased at par to a multiple of $1,000.(4)
The loan or obligation interest rate to be paid by the agency shall be equal to the interest rate on the state bonds from which the project is funded, except as provided in sections (5) and (6) of this rule.(5)
The Department shall add to the rate of interest otherwise to be charged on loans or obligations a surcharge not to exceed an annual rate of one-tenth of one percent to be applied to the outstanding principal balances in order to offset the Department’s expenses of administering the Bond Fund program.(6)
The loan or obligation retirement schedule of the agency must retire its debt obligation to the state at least as rapidly as the state bonds from which the loan funds are derived are scheduled to be retired except that when a debt retirement schedule longer than the state’s bond repayment schedule is legally required, special debt service requirements on the agency’s loan or obligation purchase will be established by the Department.(7)
Loan or obligation interest and principal payments shall be due at least 30 days prior to the interest and principal payment dates established for the state bonds from which the loan or obligation purchase is advanced.
Source:
Rule 340-082-0040 — Loan or Obligation Purchase Agreement, https://secure.sos.state.or.us/oard/view.action?ruleNumber=340-082-0040.