OAR 340-176-0070
Loan Guarantee
(1)
The Department shall issue a loan guarantee confirmation letter of 80 percent of the loan principal, not to exceed $80,000, to a commercial lending institution for a loan to provide UST project work where:(a)
A loan guarantee certificate has been issued to the loan applicant;(b)
The loan guarantee does not provide a guarantee for work other than UST project work;(c)
The interest rate is fixed and the loan is amortized with equal payments over the term of the loan.(d)
The maturity date of the loan does not exceed 20 years from the initial loan closing date;(e)
The commercial lending institution has approved the loan, subject to receiving the loan guarantee confirmation letter from the Department; and(f)
The loan applicant or the commercial lending institution has provided the terms of the loan to the Department. The terms of the loan shall include but are not limited to:(A)
Amount of loan principal;(B)
Amount and period of payment;(C)
Fixed interest rate; and(D)
The term of the loan from the initial note date.(2)
The loan guarantee shall terminate on the first to occur of:(a)
Thirty days after loan maturity date, including all extensions or renewals by the lender or extensions caused by the Department.(b)
Upon payment of the loan guarantee to the commercial lending institution; or(c)
When the loan guarantee provided by the Department is replaced by a loan guarantee provided by the U.S. Small Business Administration (SBA).(3)
The commercial lending institution shall notify the Department promptly when a loan guaranteed by the Department is paid in full or if the guarantee is replaced with a SBA loan guarantee for the same purpose.(4)
The payment of the loan guarantee is subject to monies being allocated and being available from the Underground Storage Tank Compliance and Corrective Action Fund throughout the term of the loan.
Source:
Rule 340-176-0070 — Loan Guarantee, https://secure.sos.state.or.us/oard/view.action?ruleNumber=340-176-0070
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