OAR 813-040-0030
Approval and Closing
(1)
Upon approval by the Council of the prospective Nonprofit Borrower’s or other prospective Borrower’s Proposal for the Seed Money Advance, except for the market study program, the Department shall issue a letter listing the documents that must be provided or executed by the prospective Nonprofit Borrower or other prospective Borrower. Funds shall be reserved for a maximum of one year, during which time the prospective Nonprofit Borrower or other prospective Borrower will provide the Department with copies of the documents listed in section (2) of this rule. If these documents are not received within one year, the prospective Nonprofit Borrower or other prospective Borrower may be required to submit a new Proposal. If a written request for an extension is submitted to and approved by the Department before the expiration date of the approval letter, the prospective Nonprofit Borrower or other prospective Borrower shall not be required to submit a new Proposal.(2)
The Seed Money Advance Approval Letter may be subject to the following documents executed or provided by the prospective Nonprofit Borrower or other prospective Borrower:(a)
Seed Money Advance Agreement;(b)
Note (noninterest-bearing) for the Nonprofit Borrower and interest-bearing for other Borrowers in the amount of the Seed Money Advance; and(c)
Other documents unique to the Proposal or required by the Department.(3)
If the applicant holds title to the Project site, the following additional items shall be required:(a)
If the site is being used as security, a mortgage or trust deed showing the Department as mortgagee or beneficiary;(b)
A title insurance policy in the amount of the Seed Money Advance issued by an approved title company in a form acceptable to the Department and in favor of the Department;(c)
An insurance policy naming the Department as a loss payee, with comprehensive general liability coverage in the amount of $100,000 single injury and $500,000 in the aggregate; and(d)
Other documents unique to the Proposal or required by the Department.(4)
Upon receipt of the documents, the Department may disburse the Seed Money Advance.
Source:
Rule 813-040-0030 — Approval and Closing, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-040-0030.