Or. Admin. Code § 123-021-2300 - Definitions
For the purposes of these rules, additional definitions may be found in OAR chapter 123, division 1. The following terms shall have the following definitions, unless the context clearly indicates otherwise:
(1) "Authorized loan amount" means the amount
of a loan authorized by the Department to be under the CEF Program pursuant to
a loan insurance authorization issued by the Department to the financial
institution making the loan.
(2)
"CEF Program" means the Credit Enhancement Fund Insurance Program established
under ORS 285B.200 to 285B.218.
(3)
The "Deficiency" of a loan means the amount of principal outstanding upon
default, accrued interest and the financial institution's reasonable costs of
collection, exclusive of costs attributable to environmental problems,
remaining unpaid after liquidation of collateral and collection of
guarantees.
(4) "Financial
institution" has the meaning set forth in ORS 706.008.
(5) "Fund" means the Credit Enhancement Fund
created by ORS 285B.215.
(6) "Loan
Insurance Authorization" means a letter from the director or deputy director or
designee to a financial institution agreeing to insure a loan to a borrower on
the terms and conditions and subject to the requirements stated
therein.
(7) "Lender Agreement"
means the agreement between the financial institution and the Department
required by OAR 123-021-3500.
(8)
"Material Adverse Change" or "MAC" means the deterioration of the Borrower's
credit quality resulting in the violation of a covenant or condition as defined
in the Financial Institution's loan agreement or binding commitment letter with
the Borrower.
(9) "Principal" in
regards to a borrower is defined as:
(a) If a
sole proprietorship, the proprietor;
(b) If a partnership, each managing partner
and each partner who is a natural person and holds a twenty percent (20%) or
more ownership interest in the partnership; and,
(c) If a corporation, limited liability
company, association or a development company, each director, each of the five
most highly compensated executives or officers of the entity, and each natural
person who is a direct or indirect holder of twenty percent (20%) or more of
the ownership stock or stock equivalent of the entity.
(10) "Qualified Business" or "Borrower" means
and must be:
(a) An existing or proposed
business with operations in Oregon, which is engaged, directly or through an
affiliated business, in the economic production of goods or services;
(b) Current with its federal, state and local
tax obligations or have, and be current with, a repayment plan with the
respective taxing authority and/or authorities;
(c) Compliant with all local, state and
federal laws and regulations; and
(d) If the Qualified Business is a real
estate holding company, all tenants of the Qualified Business must be and
remain compliant with all local, state and federal laws and
regulations.
(11) "Soft
Cost" means an architecture, design, permitting, insurance, project management,
tax or other intangible cost of construction that is not a direct or "hard"
cost of construction such as land acquisition, labor or materials.
(12) "Substantial Benefit" may include, but
is not limited to:
(a) Job creation or
retention.
(b) Increased sales or
profits.
(c) Access to new markets
for the Borrower's product or service.
(d) Diversification of the local or regional
economy.
(e) Revitalization of a
neighborhood or community.
(13) "SSBCI Program" means the State Small
Business Credit Initiative Program administered by the United States Department
of the Treasury. Links to the SSBCI Capital Program Policy Guidelines and
Frequently Asked Questions are published by the United States Department of the
Treasury.
(14) "Working Capital
Loan" means any loan, the proceeds of which are to be used for operating,
maintenance and costs and expenses unrelated to acquiring real property,
production equipment, or other capital assets.
Notes
Statutory/Other Authority: ORS 285A.075
Statutes/Other Implemented: ORS 285B.200 - 285B.218
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