Or. Admin. Code § 123-052-1400 - Requirements for Property Financed through the Program
(1) Federal law requires that:
(a) Property financed through the Program
consist only of:
(A) Agricultural Land as
defined in OAR 123-052-1100(3).
(B)
Agricultural Improvements as defined in OAR 123-052-1100(2).
(C) Depreciable Agricultural Property, as
defined in OAR 123-052-1100(11), that is used for farming on Agricultural Land.
(i) The total amount of used Depreciable
Agricultural Property that is financed through the Program may not exceed the
maximum amount permitted by federal law. The Applicant must provide the
Department with an appraisal or other method of determining the value of any
used Depreciable Agricultural Property that will be financed through the
Program. The appraisal or other method of determining the value of any used
Depreciable Agricultural Property must be satisfactory to the Department. On
the date these rules are adopted, the maximum amount permitted by federal law
for this purpose is $62,500; this amount may change periodically.
(ii) The total amount of new and used
Depreciable Agricultural Property that is financed through the Program may not
exceed the maximum amount permitted by federal law. On the date these rules are
adopted, the maximum amount permitted by federal law for this purpose is
$250,000; this amount may change periodically
(iii) The limits of subsections (i) and (ii)
of this subsection (C) apply to all Depreciable Agricultural Property with
respect to which the principal user is or will be the same person or 2 or more
Related Persons.
(b) No more than two percent of the borrowed
funds are used to pay costs related to obtaining the loan or participating in
the Program.
(c) The Code limits
the use of Aggie Bond proceeds to acquire property from a Related Person (as
defined in OAR 123-052-1100(21)). Property may be acquired from a Related
Person only if:
(A) The acquisition price is
the fair market value of the property, as shown in an independent, professional
appraisal that is performed to qualify the property for financing with the
Program and is acceptable to the Department; and
(B) The Related Person will not have a
financial interest in the farming operation in which the Financed Property is
used.
(2) The
Financed Property is located, or will be used, in the State of
Oregon.
(3) The Financed Property
will only be used for farming by the Beginning Farmer or by the Beginning
Farmer and the Beginning Farmer's family.
Notes
Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
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