Current through Register Vol. 60, No. 12, December 1, 2021
As used in OAR 410-141-5085 to 410-141-5165:
"Amply secured obligation" means an
obligation which is not in default and as to which no default is imminent, and
which satisfies the requirements of one or more of the following subsections:
(a) An obligation of a sovereign or political
subdivision thereof, if it is issued, assumed or guaranteed by the governmental
unit involved and is payable either from:
(b) Taxes levied or which may be levied by
such governmental unit; or
Adequate special revenues pledged or otherwise appropriated or required by law
to be used for the purpose of such payment, provided the law authorizing the
issuance of the obligation requires that adequate rates be fixed, maintained
and collected at all times so as to produce sufficient revenue or earnings to
pay all operating expenses, maintenance charges, and the principal, interest
and dividends on the obligation. An obligation payable solely out of special
assessments on real property benefited by local improvements shall not be
considered amply secured unless the total amount so payable is less than 50
percent of the market value of the real property (including any improvements
thereon) and constitutes a lien on such property.
(d) An obligation issued, assumed or
guaranteed by a corporation, if the corporation is solvent, has not been in
default on any of its obligations during the preceding three years, and if the
obligation is secured by the pledge of property the market value of which
exceeds the amount of the obligation by 25 percent or more. Obligations which
are the subject of OAR 410-141-5105 and OAR 410-141-5110 are not included
within the provisions of this subsection.
(e) An obligation otherwise found to be amply
secured by the Authority. In making such determinations, the Authority shall
give consideration to model laws, model regulations and other statutory
accounting guidance pertaining to amply secured obligations issued from time to
time by the NAIC, and shall consider the financial condition of the issuing,
assuming or guaranteeing corporation as well as the existence or absence of any
pledge of property as security.
(2) "Corporation" means a corporation, joint
stock association or business trust organized and existing under the laws of a
(a) Farmland used for
tillage, crop or pasture;
estate on which permanent improvements, or improvements under construction or
in process of construction, suitable for residence, institutional, commercial
or industrial use, are situated; and
(c) Real estate to be developed for the use
or uses set forth in subsection (2) of this section on which improvements, or
improvements under construction or in process of construction, such as streets,
sidewalks, sewers and utilities which will become an integral part of such
development, are situated.
(4) "Obligation" means a bond, debenture,
note, warrant, certificate or other evidence of indebtedness.
(5) "Political subdivision" means an
incorporated county, city, town, village, municipality, or subdivision thereof,
or a public corporation, district, agency, commission, authority or
instrumentality, or subdivision thereof.
(6) "Sovereign" means the United States, or a
state, or Canada or a province thereof.
"Unencumbered" means the nonexistence of
any lien, burden or charge having priority over the lien securing the CCO's
investment. The following shall not be considered encumbrances on real property
or leasehold interests therein:
Reservations of mineral, oil or timber rights, easements, rights of way, sewer
rights or rights of walls.
Liens for taxes or assessments not delinquent.
(c) Building restrictions or other
restrictive covenants common to the community.
(d) Where the loan is secured by a lien upon
real property, a lease under which rents or profits are reserved to the owner,
if in any event the security for the loan would be a first lien upon the real
property except for such lease.
Where the loan is secured by a lien on a leasehold, a prior lien on the real
property, provided the security for the loan is a first lien upon the leasehold
and there exists no provision preventing the CCO from continuing the lease in
force for the duration of the lease or no condition or rights of reentry or
forfeiture under which such lien can be cut off, subordinated or otherwise
disturbed so long as the lessee's obligations under the lease are