ORS 280.430
Contractual powers of city
- requirements for project loans and leases
(1)
Make loans from bond proceeds to finance eligible projects or lease or sublease eligible projects to any person, firm or public or private corporation or federal or state governmental subdivision or agency. Such agreement shall provide that:(a)
The borrower or lessee shall operate, repair and maintain the project which is leased or financed with the loan;(b)
Rents to be charged for the use of the projects shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment when due of principal of, and interest on, all bonds issued under ORS 280.410 (Definitions for ORS 280.410 to 280.485) to 280.485 (Effect of ORS 280.410 to 280.485 on powers of city);(c)
The loan or lease shall terminate not earlier than the date on which all bonds and all other obligations incurred by the local agency in connection with the project or projects leased or financed by the loan shall be paid in full, including interest, principal and redemption premiums, if any, or adequate funds for such payment are deposited in trust;(d)
The lessee’s obligation to pay rent shall not be subject to cancellation, termination or abatement by the lessee until payment of the bonds or provision for payments is made;(e)
The lessee shall be required to provide adequate insurance in the project and insurance against all liability for injury to persons or property arising from its operation; and(f)
The lessee shall pay all taxes and special assessments levied upon or with respect to the leased premises and payable during the term of the lease, during which term ad valorem taxes shall be assessed in the same amount and to the same extent as though the lessee were the owner of all real and personal property comprising the project;(2)
Acquire, sell and enter into installment sale contracts for eligible projects and land sale contracts for eligible projects;(3)
Pledge and assign to the holders of such bonds or a trustee therefor all or any part of the revenues of one or more eligible projects owned or to be acquired by the city and define and segregate such revenues or provide for the payment thereof to a trustee;(4)
Mortgage or otherwise encumber eligible projects in favor of the holders of such bonds or a trustee therefor. However, in creating any such mortgages or encumbrances the city can not obligate itself except with respect to the project;(5)
Purchase, service, sell and make commitments to purchase, service and sell mortgage loans originated by private lending institutions for residential housing for owner-occupied dwelling units in the form of condominium or cooperative interests in multiple unit housing projects located within the areas specified in ORS 280.410 (Definitions for ORS 280.410 to 280.485) (1)(b) to persons whose income does not exceed 150 percent of the prevailing median income for families within the city, whether or not the projects are financed in whole or in part pursuant to ORS 280.410 (Definitions for ORS 280.410 to 280.485) to 280.485 (Effect of ORS 280.410 to 280.485 on powers of city). A city shall equitably allocate the origination and servicing of mortgages under this subsection to private lending institutions in accordance with standards adopted by the city;(6)
Make all contracts, execute and deliver all instruments, including any loan agreements or notes, and do all things necessary or convenient in the exercise of the powers granted by this section, or in the performance of its covenants or duties, or in order to secure the payment of its bonds, including a contract entered into prior to the construction, acquisition and installation of the eligible project authorizing the borrower or lessee, subject to such terms and conditions as the city shall find necessary or desirable and proper, to provide for the construction, acquisition and installation of the buildings, improvements and equipment to be included in the project by any means available to the borrower or lessee and in the manner determined by the borrower or lessee, and without advertisement for bids as may be required for the construction, acquisition or installation of other public facilities;(7)
Perform any other duties that the city considers necessary in carrying out ORS 280.410 (Definitions for ORS 280.410 to 280.485) to 280.485 (Effect of ORS 280.410 to 280.485 on powers of city), including but not limited to, efforts to minimize the effects of displacement of residents resulting from projects financed under ORS 280.425 (City powers concerning property) (3);(8)
Enter into and perform such contracts and agreements with political subdivisions and state agencies as the respective governing bodies of the same may consider proper and feasible for or concerning the planning, construction, installation, lease, or other acquisition, and the financing of such facilities, which contracts and agreements may establish a board, commission or such other body as may be deemed proper for the supervision and general management of the facilities of the eligible project; and(9)
Accept from any authorized agency of the federal government loans or grants for the planning, construction, acquisition, leasing, or other provision of any eligible project, and enter into agreements with such agency respecting such loans or grants. [1977 c.772 §4; 1979 c.865 §4; 2003 c.286 §4]
Source:
Section 280.430 — Contractual powers of city; requirements for project loans and leases, https://www.oregonlegislature.gov/bills_laws/ors/ors280.html.
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