123-021-2900 Loan and Insurance Terms and Conditions (1) Interest rate. The rate of interest on the insured loan and the term of the loan shall be agreed between the Financial Institution and a Borrower. The maximum interest rate may not exceed the rate allowed by SSBCI Program guidelines. (2) Collateral. Repayment of an insured loan shall be secured by such collateral as the Department deems prudent. With the exception of the Collateral Support Insurance, all other loans and lines of credit must be fully secured as determined by the Department. (a) Loans eligible for Collateral Support Insurance are those secured by collateral for which the liquidation value is less than the principal amount of the loan. The Department will issue Collateral Support Insurance only if it determines that the Borrower, its Principals, and the guarantors, if any, exhibit strong credit histories and the ability to service the proposed and existing debt; (b) Where real estate or machinery or equipment affixed to real estate constitute a significant portion of collateral for an insured loan, the real estate or affixed machinery and equipment must be located within Oregon. Moveable machinery or equipment, including rolling stock and vessels, constituting a significant portion of collateral for repayment of an insured loan shall be registered with and taxed by Oregon or municipal authorities within Oregon, if Oregon or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in Oregon when not in use. (c) The Department may, at its sole discretion, require an independent collateral valuation, appraisal or environmental assessment of the real property or other assets securing the loan. (3) Covenants. The covenants and requirements of the loan shall be established by the Financial Institution in accordance with prudent lending practices and SSBCI Program requirements. The Department may condition application approval upon such additional covenants and requirements as may be necessary, prudent or desirable. (4) The maximum Fund liability for any one Qualified Business, including any affiliates, is $6 million in the aggregate, regardless of the number of Loan Insurance Authorizations entered into with the associated Financial Institution(s) or the single-transaction limits established in this rule. Statutory/Other Authority: ORS 285A.075 & 285B.200 - 285B.218 Statutes/Other Implemented: ORS 285B.200 - 285B.218 History: OBDD 2-2024, amend filed 03/06/2024, effective 03/08/2024 OBDD 28-2023, temporary amend filed 10/13/2023, effective 10/13/2023 through 04/05/2024 OBDD 27-2023, renumbered from 123-021-0800, filed 10/06/2023, effective 10/06/2023 OBDD 4-2023, temporary amend filed 01/25/2023, effective 01/25/2023 through 07/23/2023 OBDD 3-2023, renumbered from 123-021-0080, filed 01/18/2023, effective 01/18/2023 OBDD 7-2016, f. & cert. ef. 6-3-16 OBDD 6-2016(Temp), f. & cert. ef. 4-11-16 thru 10-7-16 OBDD 3-2013, f. & cert. ef. 5-23-13 Reverted to OBDD 7-2012, f. & cert. ef. 6-1-12 OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13 OBDD 7-2012, f. & cert. ef. 6-1-12 OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12 EDD 17-2009, f. 10-30-09, cert. ef. 11-1-09 EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08 EDD 11-1994, f. & cert. ef. 7-29-94 EDD 5-1994(Temp), f. & cert. ef. 3-3-94