Or. Admin. Code § 123-021-3200 - Evergreen Insurance Program
(1)
Under Evergreen Insurance, the Department may insure up to 80 percent of the
maximum principal amount of a line of credit in an amount not to exceed the
lesser of $1,600,000 or the product of the Authorized Loan Amount multiplied by
the insured percentage.
(2) To
qualify for the Evergreen Insurance Program, the Qualified Business must be an
existing or proposed business with operations in Oregon that:
(a) Lacks an existing revolving line of
credit;
(b) Seeks a new revolving
line of credit to replace an existing line of credit that is within 120 days of
cancellation or expiration by a lender other than the Financial Institution
filing the application for Evergreen Insurance; or
(c) Seeks an increase to an existing
revolving line of credit.
(3) The maximum term of Evergreen Insurance
is one year.
(4) To issue Evergreen
Insurance, the Department must determine that the Financial Institution is
sufficiently experienced and capable of operating such a lending program
effectively. At the minimum, a Financial Institution must:
(a) Have the capacity to service the loan
effectively, including monitoring compliance with any audit, advance and
control procedures and limits prescribed by the Department or comparable
procedures of the Financial Institution approved by the Department;
(b) Have in place and operate a lending
program specializing in line of credit loans secured by, or with, advances
based upon eligible accounts receivable and inventory or other assets;
and
(c) Monitor the line of credit
to ensure compliance with eligible advance rates and use of proceeds in
accordance with the Financial Institution's approved credit display and the
Loan Insurance Authorization.
Notes
Statutory/Other Authority: ORS 285A.075 & ORS 285B.200 - ORS 285B.218
Statutes/Other Implemented: ORS 285B.200 - ORS 285B.218
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