OAR 340-082-0050
Advancement of Loan or Obligation Purchase Funds
(1)
Upon receipt of three copies of the executed construction contract and the loan or obligation purchase agreement, the Department will approve the final loan amount and authorize the Treasury Department to advance the full amount of the loan or obligation purchase price to the agency.(2)
If the funds are advanced under the terms of a previously executed obligation purchase agreement, the agreement will specify a period of time, not to exceed six months, following the advancement of funds by the state during which the agency agrees to offer its obligations for public sale. The terms and conditions of the Department’s bid offer for the agency’s obligations will be made available to other prospective bidders when the notice of sale of the agency’s obligations is published. If the state is the successful bidder for the agency’s obligations, the state will receive the obligation and the obligations will be retired under the terms of the obligation purchase agreement. If a private purchaser is the successful bidder, the state will receive reimbursement of the loan or obligation purchase funds previously advanced plus interest at the interest rate on the state bonds from which the project would have been funded if the state had been the successful bidder.(3)
Any excess loan or obligation purchase funds held by the agency following completion of the project must be used for the payment of loan or obligation principal and interest.
Source:
Rule 340-082-0050 — Advancement of Loan or Obligation Purchase Funds, https://secure.sos.state.or.us/oard/view.action?ruleNumber=340-082-0050.