OAR 340-180-0070
Loan Guarantee
(1)
The Department shall issue a loan guarantee, not to exceed the lesser of 80 percent of the loan principal or $64,000, to a commercial lending institution for a loan to provide soil remediation, UST upgrading, and replacement of USTs at a facility containing motor fuel 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 approved work authorized in OAR 340-180-0050 (Information Required on the UST Loan Guarantee Certificate Application);(c)
The loan is amortized with equal payments over the term of the loan where the interest rate is fixed, or with equal principal payments over the term of the loan where the interest rate is variable.(d)
The loan maturity date of the loan does not exceed ten years from the initial closing date;(e)
The commercial lending institution has approved the loan, subject to receiving the loan guarantee 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 include but are not limited to:(A)
Amount of loan;(B)
Down payment;(C)
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 or extensions caused by the Department under OAR 340-180-0080 (Notice of Default on a Guaranteed Loan)(2)(b).(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 replaced with a S.B.A. loan guarantee.(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.
Source:
Rule 340-180-0070 — Loan Guarantee, https://secure.sos.state.or.us/oard/view.action?ruleNumber=340-180-0070
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