Or. Admin. Code § 731-030-0110 - Approval Procedures

(1) The Department will evaluate the application for conformity with all applicable laws, rules, and regulations; as well as the established criteria under OAR 731-030-0100(1), and appropriate technical, engineering, and planning criteria. While an Application is pending or under review, the Department may require the Applicant to provide additional information with respect to, or clarification of, any matter pertaining to the Application, the Applicant, the proposed Transportation Project, or the financing thereof as the Department determines in its sole discretion to be reasonably necessary or appropriate.

(2) To either approve an Application under Section 3(a) of this Rule or recommend approval of an Application to the Commission under Section 3(b) of this Rule, the Department must find all of the following:

(a) The Applicant and the Transportation Project qualify for assistance from the Infrastructure Fund according to the criteria established under OAR 731-030-0100(1).

(b) The proposed Transportation Project is feasible and a reasonable risk from practical and economic standpoints, and the proposed Infrastructure Loan has a reasonable prospect of repayment according to its terms.

(c) The Applicant's financial resources and management capability appear to be adequate to assure the successful completion and operation of the Transportation Project.

(d) As reflected by the Applicant's credit history and capacity to repay the Infrastructure Loan, the Applicant is creditworthy.

(e) The Applicant can provide good and sufficient Collateral when necessary to mitigate risk to the Infrastructure Fund.

(3) After review, and subject to the availability of moneys in the Infrastructure Fund, the Department may:

(a) For an Application for an Infrastructure Loan or Infrastructure Assistance for an amount less than or equal to $5 million:

(A) Approve the request;

(B) Deny the request; or

(C) Forward a recommendation for action to the Commission.

(b) For any Application greater than $5 million:

(A) Deny the request; or

(B) Forward a recommendation for action to the Commission.

(4) The Commission will consider the recommendation by the Department on any Application forwarded to it for action and may:

(a) Approve the request; or

(b) Deny the request.

(5) Upon approval of an Application, the Department will present the Applicant with a commitment letter detailing:

(a) The amount and type of financing to award.

(b) The interest rate (if applicable). In determining the interest rate for an Infrastructure Loan, the Department may set the rate to reflect the evaluation of the Transportation Project, the effect of the rate upon the Applicant's ability to finance the Transportation Project, the term of the Infrastructure Loan, creditworthiness of the Applicant, the financial need of the Applicant, and the special circumstances of the Transportation Project.

(6) Upon receipt of the commitment letter, the Applicant may:

(a) Accept the terms of the commitment letter;

(b) Request that the Department engage in negotiations to reach terms different than those proposed in the commitment letter; or

(c) Reject the terms of the commitment letter, and cancel the Application.

(7) If the Applicant requests that the Department engage in negotiations under Section 6(b), and the parties fail to agree to terms within 30 days of the Applicant's request, the Department may in its sole discretion terminate the negotiations and the Application.

(8) The Department may suspend or alter any requirements under this rule for Applications to refinance existing debt by an Applicant the Department has deemed creditworthy as part of the Applicant's original financing award.

Notes

Or. Admin. Code § 731-030-0110

DOT 1-1997, f. & cert. ef. 1-17-97; DOT 7-2004, f. & cert. ef. 11-17-04; DOT 3-2012, f. & cert. ef. 6-27-12; DOT 9-2022, amend filed 09/22/2022, effective 9/22/2022

Statutory/Other Authority: ORS 184.619, 367.015 & 367.020

Statutes/Other Implemented: ORS 367.010 - 367.060 & US Code, PL 104-59 & Sect. 350