Or. Admin. R. 274-013-0040 - Loan Conditions
(1) Before
providing a Program loan, the Department may require or perform such further
credit checks and other due diligence as it deems appropriate. The Applicant
and proposed Borrower must cooperate to the Department's satisfaction with
respect to such credit checks and other due diligence.
(2) The Department may require that the
Borrower and others execute, record and deliver such documents, including such
representations, covenants and warranties, as the Department deems appropriate.
The Borrower must cooperate fully with such document requirements.
(3) The Department may require such
Collateral requirements as it deems appropriate. The Borrower and others shall
provide such assurances of Collateral as the Department may require.
(4) The Department may require the payment of
a loan fee of not more than one and one-half percent of the amount of the loan
to recompense the Department for its costs of loan administration.
(5) Notwithstanding any Program loan
commitments by the Department, all Program loans are subject to the
availability of Funds as reasonably determined by the Department.
(6) The initial amount of any Program loan
shall not exceed $20,000. The total amount of Funds loaned to any Applicant or
Borrower shall not exceed $40,000.
(7) The Department may, in its reasonable
discretion, disburse the proceeds of an approved loan in such amounts and at
such times as the Department deems appropriate to ensure that loan proceeds are
used for Project purposes and to preserve the integrity of the Fund. If the
Department determines that the financial condition of the Borrower has
deteriorated, the Department may suspend or terminate further Program loan
disbursements. The Department also may exercise any other remedy available to
it in law, contract or otherwise.
(8) The Borrower must abide by all laws and
regulations applicable to the Project and provide evidence satisfactory to the
Department of its receipt of all applicable federal, state and local permits
and licenses before the Department will make any disbursement of Program loan
Funds. The Borrower also shall fully and timely perform all Program loan
obligations, including as provided in any Program loan documents. The
Department may suspend, terminate or exercise any other remedy with respect to
its Program loan upon a determination by the Department of any default or other
failure of performance by the Borrower, including but not limited to any
failure of timely completion of the Project, misallocation of Program loan
funds or failure to make timely Program loan repayments.
(9) The Department may take such action as it
deems appropriate in the review and enforcement of a Project or of a Program
loan, including but not limited to entry onto Project property, inspection of a
Project and review and copying of any Borrower documents with respect to a
Project. The Borrower shall cooperate fully with the Department in such review
and enforcement efforts and agrees to allow Project inspection and review and
copying of Project documents as the Department deems appropriate.
(10) At the request of the Department, the
Borrower will provide to the Department annual financial statements; copies of
tax returns and other requested documents. The Department may require
additional financial information or more frequent financial
statements.
Notes
Stat. Auth.: 2008 OL Ch. 18 & ORS 406.005
Stats. Implemented: 2008 OL Ch. 18
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