OAR 813-038-0025
Program Loan Terms
(1)
The minimum Loan is $40,000 and the maximum Loan is $1,500,000, unless otherwise specified in writing by the Department.(2)
Loans between $40,000 and $500,000 may have a term of up to two (2) years and Loans above $500,000 may have a term of up to six (6) months; unless otherwise specified in writing by the Department.(3)
The interest rate applicable to Program Loans will be established from time to time by the Department as it determines appropriate in consideration of factors it may determine to be relevant, potentially including, but not necessarily limited to current market rates, the availability of Funds, the credit-worthiness of the Borrower, the size and term of the Loan, any determination by the Department with respect to the need for the Project, the quality of Collateral, or market conditions in general. Unless otherwise established by the Department, interest will accrue as simple interest due and payable under the terms of the Commitment Letter and Loan Documents.(4)
Loans shall be repaid with the sooner of the first available funding sources and otherwise in accordance with the Application, the proposed repayment plans, and within the specified term of the loan.(5)
Due to the limited amount of Funds available, the Department discourages any Loan term extensions. The Department may extend the term of a Loan at its sole discretion and subject to such additional conditions and charges as it determines to be appropriate.(6)
The Loan shall be secured by a fully executed trust deed note and other appropriate Loan Documents satisfactory to the Department. Loan Program commitments by the Borrower with respect to the Project shall be memorialized in an agreement or instrument satisfactory to the Department and executed and recorded by the Borrower at their own expense as required by the Department.(7)
If the Loan is secured by real property, the trust deed shall be recorded in an acceptable lien position, as determined by the Department.(8)
The Borrower shall demonstrate control over the Collateral satisfactory to the Department.(9)
All conditions contained in the Commitment and Loan Documents shall be timely fulfilled by the Borrower to the satisfaction of the Department.(10)
The Borrower shall repay the Loan within the terms of the Commitment Letter and applicable Loan Documents.(11)
The Loan shall not be transferred to another party or assumed by another party unless approved in writing by the Department prior to the change.(12)
During the term of the Loan, the Eligible Borrower shall not take any action that directly or indirectly affects the value of the Collateral used as security without prior written approval of the Department.
Source:
Rule 813-038-0025 — Program Loan Terms, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-038-0025.