OAR 738-015-0010
Commercial Aeronautical Lease Applicant’s Financial Responsibility and Experience

(1)

All persons applying for a lease for commercial aeronautical activity at a State-owned airport must demonstrate the financial capability and responsibility to:

(a)

Initiate proposed commercial aeronautical activities;

(b)

Construct proposed improvements; and

(c)

Provide working capital to perform proposed activities for the lease term.

(2)

The demonstration of financial capability shall include:

(a)

Projected cash flow and profit-and-loss calculations for the first five (5) years of the proposed operation;

(b)

A three-year historical profit-and-loss statement (if applicable); and

(c)

A current (within 90 days) balance sheet.

(3)

A prospective Lessee who will be constructing lease property improvements shall provide the Department evidence of financial capacity in one of the following forms:

(a)

A performance bond in the amount equal to the cost for constructing the proposed improvements, which may be supplied by a contractor;

(b)

An irrevocable letter of credit guaranteeing funds to complete the project;

(c)

An escrow agreement administered by a title and escrow company; or

(d)

A trust administered by a commercial bank.

(4)

The prospective Lessee shall furnish the Department with a statement of its past experience in providing the specified commercial aeronautical service for which the application is being made, including:

(a)

Résumés of management individuals who will be directly responsible for the proposed commercial operation; and

(b)

Business, financial and managerial references.

Source: Rule 738-015-0010 — Commercial Aeronautical Lease Applicant's Financial Responsibility and Experience, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=738-015-0010.

Last Updated

Jun. 8, 2021

Rule 738-015-0010’s source at or​.us