OAR 813-060-0020
Form of Loan Assistance
(1)
The Department shall make loans to Borrowers under the terms of written Commitments.(2)
Loans shall be made directly with proceeds from the issuance of Bonds or other available funds obtained by the Department. The Department shall establish charges and interest rates based upon:(a)
The cost of borrowing through Bond issuance;(b)
The funds required to carry out the Disabled Housing Program; and(c)
Such other factors as the Department considers appropriate or necessary.(3)
Interest on a loan shall not exceed the rate stated in the Commitment. If the Department is able to charge an interest rate lower than that specified in the Commitment, the Department may provide for reduction of the interest rate on the loan. The Department may require a reduction in the Project rents.(4)
The Department shall not execute a Commitment to a Eligible Borrower for a loan amount that exceeds allowable total Project costs or 85 percent of the appraised value, whichever is less, of the Project.(5)
Each loan shall have a final maturity of not more than 42 years from the date of its making and shall be secured by a first lien deed of trust granted by the Borrower on the property securing the loan.(6)
Loan Documents shall be on forms approved by the Department.(7)
Each loan shall provide for the monthly collection of Escrow Payments to the extent permitted by law together with the monthly installment of principal and interest. All such payments shall be:(a)
Held for the benefit of the Department in an account with an Approved Servicer; or(b)
Held by the State of Oregon as provided or required by law.(8)
If the Department receives loan applications in an amount greater than the amount of funds available, the Department shall select those applications which, in the judgment of the Department, best achieve the purposes of the Program rules and the Act.(9)
The Department shall establish prepayment penalties applicable to loans. In setting such penalties, the Department shall take into account the need to protect the ability of the state to provide for the payment of the Bonds. Any prepayment penalties shall be set forth in the trust deed note.
Source:
Rule 813-060-0020 — Form of Loan Assistance, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-060-0020.