Or. Admin. Code § 123-052-1100 - Definitions

For the purposes of these rules, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

(1) "Aggie Bonds" means conduit revenue bonds issued by the State of Oregon pursuant to ORS 285A.420 to 285A.435 and these rules.

(2) "Agricultural Improvements" means any improvements, buildings, structures or fixtures suitable for use in farming that are located on Agricultural Land. "Agricultural Improvements" do not include personal residences.

(3) "Agricultural Land" means land located in the State of Oregon that is:

(a) Suitable for use in farming and that is or will be operated as a farm; and

(b) That will be acquired by a Beginning Farmer.

(4) "Applicant" means any person who submits an Application for Aggie Bond financing.

(5) "Application" means an Application for Aggie Bonds that is submitted to the Department on a form provided by the Department.

(6) "Beginning Farmer" means an individual who meets the requirements of OAR 123-052-1300 and is therefore eligible to be a Borrower under the Program.

(7) "Bond Counsel" means the bond counsel firm(s) under contract with Oregon Business Development Department to represent the State of Oregon as issuer of Aggie Bonds.

(8) "Borrower" means a Beginning Farmer who has received Aggie Bond financing under the Program.

(9) "Code" means the United States Internal Revenue Code of 1986, as amended, and all rules, regulations, and notices and releases issued under it.

(10) "Department" means the Oregon Business Development Department, or its designee.

(11) "Depreciable Agricultural Property" means property of a character subject to the allowance for depreciation in computing federal income tax under the Code, that is to be used in trade or business of farming. "Depreciable Agricultural Property" includes but is not limited to farm machinery and trucks, but does not include feeder livestock, seed, feed, fertilizer and other types of inventory or supplies.

(12) "Eligible Lender" means a lender who meets the requirements of OAR 123-052-1500.

(13) "Eligible Revenue" means the revenue or assets that are provided as security for a loan to a Beginning Farmer participating in the Program.

(14) "Federal Maximum" means the maximum amount of a loan that federal law allows to be financed under the Program. For calendar year 2016 the Federal Maximum is $520,000. This amount may be adjusted for inflation in future calendar years as provided for in Section 147(c)(2)(H) of the Code.

(15) "Financed Property" means property described in OAR 123-052-1400(1)(a) which is financed through the Program.

(16) "Financing Agreement" means an agreement between the Department and the Eligible Lender, in substantially the form and with the substance acceptable to the Department, which describes the requirements for an Aggie Bond to be issued to an Eligible Lender.

(17) "Lender Documents" means the Financing Agreement and the Loan Agreement and related documents between an Eligible Lender and a Beginning Farmer, including but not limited to any related security documents such as mortgages, deeds of trust and security agreements.

(18) "Participating Lender" means an Eligible Lender with substantial experience making agricultural loans, that has familiarized itself with these administrative rules and Oregon's Aggie Bond Program, and has entered into, or will enter into prior to bond closing, a master financing agreement with the Department.

(19) "Permitted Costs" means any costs of property described in OAR 123-052-1400(1)(a).

(20) "Program" means the Beginning and Expanding Farmer Loan Program authorized by ORS 285A.420 to 285A.435 and described in these rules.

(21) "Related Person" means a person other than the Borrower if:

(a) The relationship between the Borrower and that person would result in a disallowance of losses under section 267 or 707(b) of the Code, or

(b) The Borrower and that person are members of the same controlled group of corporations (as defined in section 1563(a), except that "more than 50 percent" shall be substituted for "at least 80 percent" each place it appears therein). For example, a Related Person includes a grandparent, parent, sibling (whether whole or half-blood), child, grandchild, or spouse, as well as certain corporations and partnerships.

(22) "State" means the State of Oregon, any department, agency, or political subdivision of the State of Oregon, or any designee thereof.

(23) "Standard Lender" means an Eligible Lender that is not a Participating Lender.

(24) "Substantial Farmland" means any parcel of land unless the parcel is smaller than 30 percent of the median size of a farm in the county where the agricultural project is located. However, Substantial Farmland does not include farmland which was previously owned by the individual seeking to qualify as a Beginning Farmer if the farmland was disposed of while the individual was insolvent and Code section 108 applied to indebtedness with respect to that farmland.

(25) "Tax-exempt" means excludable from gross income under the Code, and exempt from Oregon personal income taxation.

(26) "State Treasurer" means the Treasurer of the State of Oregon or the Treasurer's designee.

Notes

Or. Admin. Code § 123-052-1100

OBDD 3-2015, f. & cert. ef. 2/24/2015; OBDD 3-2016(Temp), f. & cert. ef. 2-9-16 thru 8-5-16; OBDD 8-2016, f. & cert. ef. 8/3/2016

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013

Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013