justicedao/ipfs_state_laws huggingface dataset:
123-300-0701 Loan Eligibility (1) A lender may apply to the Department to enroll a Qualified Loan in the Program. The Department, at its sole discretion will determine whether a Loan is eligible and meets all the requirements for enrollment. (2) A Qualified Loan does not mean a loan: (a) With a variable interest rate; (b) With an origination fee that exceeds 1.5%, and with an annual interest rate that exceeds the lesser of 18% or the Prime Rate plus 7%; (c) With an origination fee that is equal to or exceeds 1.5%; (d) With an annual interest rate that exceeds the lesser of 18% or the Bank Short-Term Rate plus 7%; (e) That results in more than $250,000 being enrolled into the Program for any Business, or any affiliates or subsidiaries of a Business; (f) For working capital with a term exceeding seven years; (g) For working capital with an amortization exceeding seven years; (h) For capital assets with a term exceeding the useful life of the assets; (i) For capital assets with amortization exceeding the useful life of the assets; (j) For the purchase of real property that is not used for the business operations of the Borrower; (k) For the purchase of owner-occupied residential housing; (l) For the construction, improvement or purchase of residential housing that is owned, or to be owned, by the Principal or their immediate family members. (m) For the purchase of securities; (n) For the purpose of lobbying activities; (o) For the purpose of repayment of delinquent federal, state, county or other local government taxes; and, (p) That includes, in whole or part: (A) The refinancing of an existing loan made by the lender to the Borrower; (B) The refinancing of an existing loan enrolled in another state or federal credit enhancement or credit insurance program; (C) The refinancing of an existing personal loan not used for business purposes; (D) Reimbursement of funds owed to any owner, including funds to repay any equity injection or injection of capital for the business’ continuance; (3) The Principals of a Qualified Loan may not be: (a) An executive officer, director, or principal shareholder of the lender; (b) A member of the immediate family of an executive officer, director or principal shareholder of the lender; (c) A person with a related interest to any of the persons described in paragraphs (3)(a) or (3)(b) above; or, (d) Delinquent on federal, state or local taxes. A Business that has entered into, and is current on, a repayment agreement with the applicable taxing authority is not considered to be delinquent. (4) The Business and the activities of the Business must be compliant with all federal, state or local laws. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-0801 Procedure for Enrollment of a Qualified Loan (1) A lender may enroll a Qualified Loan in the Program by notifying the Department of the Qualified Loan to be enrolled, in a form prescribed by the Department, no less than five (5) business days prior to the lender disbursing funds to the Borrower or the date the loan documents are to be fully executed and the lender is obligated to disburse proceeds, whichever occurs sooner. (2) The Department, upon receipt of documentation satisfying section (1) of this rule may authorize the enrollment of the Qualified Loan in writing if the Department is satisfied that the loan: (a) Is a Qualified Loan; (b) The loan is with a Qualified Borrower or a Qualified Business; and (c) The loan is otherwise in accordance with the lender’s Program proposal accepted by the Department. (3) The Department shall, to the extent possible, notify the lender of its enrollment decision within 5 business days from receipt of all documentation required by the Department. Failure of the Department to provide written approval of the Enrolled Loan does not constitute an approval of, or enrollment of, a loan into the Program. (4) A lender may approve and fund a loan to a Borrower in advance of the Department’s enrollment of a Qualified Loan in the Program, but such approval and funding is made at the sole risk of the lender as the Department may or may not ultimately enroll the loan in the Program. (5) Notwithstanding section (4), the Department shall not enroll a loan more than 15 days after a lender funds such loan. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1101 Reimbursement of Claims from Loan Loss Reserve Account (1) The Department shall approve a lender’s Claim to reimburse the lender for Loss on an Enrolled Loan in default pursuant to the process and requirements described in OAR 123-300-1001. (2) The Department shall reject a Claim if the Department determines that the: (a) Lender has not completed required liquidation of the Borrower’s assets, realization of claims against the personal or financial guarantees on the Enrolled Loan, or realization of other sources as applicable; or (b) Representations and warranties provided by the lender at the time of enrollment of the Qualified Loan, in the liquidation plan, or at the time of a claim for reimbursement were false. (3) The liability of the State of Oregon and the Department under the Agreement is limited to the amount of moneys awarded and credited to the lender’s Loan Loss Reserve Account. All moneys awarded and credited to the lender’s Loan Loss Reserve Account, including all interest earnings shall be available to pay approved Loss Claims. (4) When there are insufficient funds in the Loan Loss Reserve Account to cover the total amount of an approved Loss Claim, the Department shall authorize payment of an amount equal to the balance of the Loan Loss Reserve Account. Such payment of the balance shall fully satisfy the Claim and the lender will have no further rights to receive any other amount with respect to the Claim. (5) The Department shall review Loss Claims in the order it receives them. If a lender files two or more Loss Claims simultaneously and there are insufficient funds in the Loan Loss Reserve Account to pay them, then the lender may designate the order the Loss Claims are to be processed by the Department. (6) Loan Loss Reserve Accounts without a balance shall be closed and the lender shall be required to continue reporting in compliance with its Agreement and OAR 123-300-1301. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1201 Recovery on Loan Subsequent to Payment of Claims (1) If, subsequent to the Department’s approval of the payment of a Claim from the Loan Loss Reserve Account, the lender recovers from the Borrower, or its Principal(s), through liquidation of collateral or from any other source, amounts for which the lender was reimbursed from the Loan Loss Reserve Account, the lender shall provide written notice to the Department within 10 business days of the recovery and shall promptly repay into the lender’s Loan Loss Reserve Account the amount received up to the amount of the reimbursement. (2) The lender must provide the Department documentation of the repayment and deposit into the Loan Loss Reserve Account within 30 days of the recovery. (3) Failure of the lender to provide notice as required by section (1) above or to repay the Loan Loss Reserve Account as required by section (2) above shall be a breach of the Agreement. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1301 Assignment of Enrolled Loan to Department (1) As provided in OAR 123-300-1001(9), the Department, at its sole discretion, may take assignment of a defaulted Enrolled Loan and pursue collection efforts. (2) Lender shall assign the Enrolled Loan to the Department upon the Department’s request. The Department shall not approve a Claim and the lender shall not recover any amount from the Loan Loss Reserve Account for the Loss while the Department is engaged in such collection efforts. (3) The Department may take assignment if the Department believes that it would be able to take effective and proper action to more completely realize a return on the remaining available collateral or other sources of security for the defaulted Enrolled Loan, compared to the lender, regardless of whether the lender has indicated its inability or unwillingness to take such action. (4) In response an assignment request, the Lender shall promptly assign its rights to the Department, providing the Department with originals of all applicable documents, accompanied by enforceable assignments and conveyances to the Department. (5) All recoveries of the Department will be applied in the following order, until all expenses and the corresponding Loss are satisfied, to: (a) Department’s legal and administrative costs associated with the enforcement of remedies to recover Losses, including costs incurred in the liquidation of assets, costs incurred in realization of personal or other financial guarantees, or other costs incurred related to the defaulted Enrolled Loan; (b) The lender’s Loss not to exceed the principal balance of the Enrolled Loan; then, (c) The lender’s unpaid accrued interest, fees, legal expenses, costs incurred in the liquidation of assets, costs incurred in realization of personal or other financial guarantees, or other costs incurred by the lender related to the defaulted Enrolled Loan. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1601 Disposition of Funds Withdrawn from Loan Loss Reserve Accounts All funds returned to the Department from lenders, or not disbursed as Program Awards by the Department by June 30, 2023, will be remitted to the State General Fund. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1701 Inspection of Files and Record Retention (1) Program lenders shall permit the Department and any party designated by the Department, including the Secretary of State at any reasonable time, to inspect and make copies of any accounts, books and records, including, without limitation, Program lender’s files relating to Enrolled Loans. The lender shall supply such materials and information as the Department may reasonably require in person or in an electronic format reasonably prescribed by the Department. (2) Program lenders shall retain and keep accessible for a minimum of 5 years from repayment of an Enrolled Loan in full, or payment of a Claim against the Loan Loss Reserve Account, the following: (a) All documentation provided by the Borrower when making its application; (b) Materials created by the lender when underwriting the loan including, but not limited to, the credit approval memo, collateral examinations, appraisals, and credit analysis documentation; (c) Enrolled Loan documentation including, but not limited to, loan agreements, personal and business guarantees, deeds of trust, UCC filings, subordination agreements, and other common commercial lending documentation; (d) All documentation provided by the Borrower at or near the time of default prior to the liquidation of assets; (e) The lender’s liquidation plan; and (f) All documentation related to the liquidation of assets and realization from personal and business guarantees. (g) All other documentation related to the Agreement. (3) If there are unresolved issues or disputes at the end of the records retention period required by section (2) above, a lender shall retain the books, documents, papers and records until the issues are resolved. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 706.008 & ORS 285B.780 - ORS 285B.799 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-300-1901 Release of Lender from Agreement and Use of Balance in Account (1) A lender shall be released from any obligation under an Agreement and may use for any purpose the remaining balance in the lender’s Loan Loss Reserve Account, including accrued interest, if the lender has: (a) Performed under the terms and conditions of an Agreement entered into with the Department for a period of 10 years; (b) Attained during the 10-year period of the Agreement, a ratio of four-to-one (4 : 1) of total principal amount of Enrolled Loans made by the lender to the amount of moneys awarded to the lender under the Program; and, (c) Complied with the annual and final reporting requirements of the Program provided under OAR 123-300-1401. (2) Upon receipt of the lender’s final report, required annual reports and request for release, the Department shall calculate the ratio of total principal amount of Enrolled Loans made by the lender to the amount of moneys awarded to the lender under the Program to determine if lender has met the requirement of (1)(b) of this section. (3) Failure of the lender to meet the requirement in (1)(b) of this section, shall require the lender to return a portion of the balance of the lender’s Loan Loss Reserve Account to the Department in an amount necessary to achieve the leverage ratio requirement of the provision. (4) Any balance due under section (3) shall be remitted to the Department in full prior to release of the lender’s obligations or termination of the Agreement. (5) A release under this section does not absolve a lender of any contractual obligations owed to a Borrower under a loan agreement. (6) Upon release of lender from an Agreement, the Loan Loss Reserve Account shall be closed and any outstanding fees or balance due shall be paid in full by the lender. Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799 Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008 History: OBDD 9-2023, adopt filed 06/13/2023, effective 06/13/2023
123-400-0000 Purpose and Scope (1) The 82nd Oregon Legislative Assembly, 2023 Regular Session, passed chapter 25, Oregon Laws 2023 (Enrolled Senate Bill 4) which established the Oregon CHIPS Fund (“Fund”) and a new program to support private investment in the semiconductor and advanced manufacturing industry through financial awards of grants and loans to businesses that are covered entities (“Oregon CHIPS”). The awards are intended to serve as covered incentives and thereby assist businesses for purposes of federal semiconductor financial assistance from the U.S. Department of Commerce, pursuant to the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act of 2022 (Pub. L. 117–167), Chapter 72A, Title 15, United States Code (U.S.C.). The Fund received legislative appropriations and the Department received expenditure authority for the appropriations from sections 8 and 8b, chapter 25, Oregon Laws 2023 and sections 245 to 247, chapter 114, Oregon Laws 2024. In addition to usage for Oregon CHIPS, pursuant to chapter 81, Oregon Laws 2024, money in the Fund may be transferred to the CHIPS Child Care Fund for the purposes of providing financial support and child care subsidies for construction workforce. Pursuant to Chapter 89, Oregon Laws 2024, moneys in the Fund may also be used for National Semiconductor Technology Center projects under the federal program established pursuant to 15 U.S.C. 4656(c). (2) These administrative rules specify elements of the program developed by the Department pursuant to sections 1 to 6, chapter 25, Oregon Laws 2023 (Enrolled Senate Bill 4), in order for the state to make financial awards of grants and loans from the Fund. The permanent administrative rules for the program are effective November 29, 2023 and the amended permanent rules shall apply to all program applicants and awardee businesses. (3) In administering this program, the Governor and the Department will emphasize investments that assist communities, businesses or industries in promoting the creation, expansion, and preservation of semiconductor and advanced manufacturing in Oregon, and that encourage diversification and preservation of regional economies. Statutory/Other Authority: ORS 285A.075, OR Laws 2023 ch. 25 §§1–8 & OR Laws 2023 ch. 25 §8b Statutes/Other Implemented: OR Laws 2023 ch. 25 §§1–8 & OR Laws 2023 ch. 25 §8b History: OBDD 1-2025, amend filed 01/16/2025, effective 01/16/2025 OBDD 11-2024, temporary amend filed 05/30/2024, effective 05/30/2024 through 11/25/2024 OBDD 32-2023, adopt filed 11/27/2023, effective 11/29/2023
123-400-0010 Federal Terms (1) For purposes of this division administrative rules, the following terms are defined based on the federal CHIPS for America Act with the applicable federal statute cited with each term: (a) The term "covered entity" means a nonprofit entity, a private entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities with a demonstrated ability to substantially finance, construct, expand, or modernize a facility. (15 U.S.C. 4651(2)). (b) The term "covered incentive": (A) means an incentive offered by a governmental entity to a covered entity for the purposes of constructing a facility within the jurisdiction of the governmental entity, or expanding or modernizing an existing facility within that jurisdiction; and (B) a workforce-related incentive (including a grant agreement relating to workforce training or vocational education), any concession with respect to real property, funding for research and development with respect to semiconductors, and any other incentive determined appropriate by the U.S. Secretary of Commerce, in consultation with the U.S. Secretary of State. (15 U.S.C. 4651(3)). (c) The term “Facility” means a facility relating to fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors; facility relating to materials used to manufacture semiconductors; or facility relating to semiconductor manufacturing equipment. (15 U.S.C. 4651(2)). (2) Both existing state incentives and programs and new incentives and programs from Oregon CHIPS Act are intended to qualify as covered incentives for the purposes of the federal CHIPS for America Act. Additional incentives and programs are pending with 82nd Oregon Legislative Assembly. The following are intended to qualify as covered incentives for purposes of the federal CHIPS for America Act: (a) State financial awards of grants and loans to covered entities, pursuant to sections 1 to 6, chapter 25, Oregon Laws 2023 and as further defined by this division of rules; (b) Lands designated by an executive order and brought within an existing urban growth boundary for the purposes of making designated lands available for industrial use as a site for facility by one or more covered entities pursuant to section 10, chapter 25, Oregon Laws 2023 are intended to serve as concessions with respect to real property, and therefore qualify; (c) Enterprise zone (standard, long-term rural, tribal, and electronic commerce enterprise zone) property tax abatements provided to covered entities; and (d) Strategic Investment Program (SIP) property tax exemptions to covered entities. (e) Semiconductor Industrial Lands Loans Program awards. Statutory/Other Authority: ORS 285A.075, OR Laws 2023 Ch. 25 §1 & OR Laws 2023 Ch. 25 §10 Statutes/Other Implemented: OR Laws 2023 Ch. 25 §1 & OR Laws 2023 Ch. 25 §10 History: OBDD 1-2025, amend filed 01/16/2025, effective 01/16/2025 OBDD 11-2024, temporary amend filed 05/30/2024, effective 05/30/2024 through 11/25/2024 OBDD 32-2023, adopt filed 11/27/2023, effective 11/29/2023
123-400-0030 Application Review and Approval (1) In coordination and consultation with the Governor, the Department shall review all timely and complete applications for program grants and loans. The review shall include: (a) Review of proposed projects for determination of compliance with eligible uses of program grant and loan proceeds as provided by section 1(3)(a), chapter 25, Oregon Laws 2023, and as further defined by this division of rules; (b) Review for completion of the application, including satisfaction of requirements provided under section 2(1)(b), chapter 25, Oregon Laws 2023; (c) Applying the preferences provided under section 3(2), chapter 25, Oregon Laws 2023; and (d) Applying other criteria set forth with the Request for Applications. (2) When the Governor intends to approve program grant or loan amounts that exceed $50 million in total for a single business, the Governor with the Department’s assistance, shall provide formal notice of the amount of the program grant or loan the Governor intends to approve to the Speaker of the Oregon House of Representatives, State Senate President, and the co-chairs of committees involved in the passage of Senate Bill 4 (2023). (3) Within 90 days of receiving an application (but not less than 30 days after any notice in section (2) of this rule), the Department in consultation with the Governor shall approve or reject: (a) The requested program grant or loan in the application; and (b) Any accompanying request for an application assistance grant. (A) Successful applicants will receive a notice of intent to award, and unsuccessful applicants will receive a letter of explanation. (B) The notice of intent to award letter provided for approved applications shall contain an offer of an amount for the program grant or loan, an amount for an application assistance grant or both, including but not limited to an offer that is less than what was requested by the business applicant. (4) Any Business approved for a program grant or loan shall provide the Department evidence of federal CHIPS for America Act application acceptance by the U.S. government. Statutory/Other Authority: ORS 285A.075 & OR Laws 2023 Ch. 25 §§1-3 Statutes/Other Implemented: OR Laws 2023 Ch. 25 §§1-3 History: OBDD 1-2025, amend filed 01/16/2025, effective 01/16/2025 OBDD 11-2024, temporary amend filed 05/30/2024, effective 05/30/2024 through 11/25/2024 OBDD 32-2023, adopt filed 11/27/2023, effective 11/29/2023