Oregon Administrative Rules › Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT › Division 38 - PREDEVELOPMENT LOAN PROGRAM › Section 813-038-0025 - Program Loan Terms

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 minimum Loan is $40,000 and the maximum Loan is $1,500,000, unless otherwise
			 specified in writing by the Department.
(2) Loans between $40,000 and $500,000 may
			 have a term of up to two (2) years and Loans above $500,000 may have a term of
			 up to six (6) months; unless otherwise specified in writing by the
			 Department.
(3) The interest rate
			 applicable to Program Loans will be established from time to time by the
			 Department as it determines appropriate in consideration of factors it may
			 determine to be relevant, potentially including, but not necessarily limited to
			 current market rates, the availability of Funds, the credit-worthiness of the
			 Borrower, the size and term of the Loan, any determination by the Department
			 with respect to the need for the Project, the quality of Collateral, or market
			 conditions in general. Unless otherwise established by the Department, interest
			 will accrue as simple interest due and payable under the terms of the
			 Commitment Letter and Loan Documents.
(4) Loans shall be repaid with the sooner of
			 the first available funding sources and otherwise in accordance with the
			 Application, the proposed repayment plans, and within the specified term of the
			 loan.
(5) Due to the limited amount
			 of Funds available, the Department discourages any Loan term extensions. The
			 Department may extend the term of a Loan at its sole discretion and subject to
			 such additional conditions and charges as it determines to be
			 appropriate.
(6) The Loan shall be
			 secured by a fully executed trust deed note and other appropriate Loan
			 Documents satisfactory to the Department. Loan Program commitments by the
			 Borrower with respect to the Project shall be memorialized in an agreement or
			 instrument satisfactory to the Department and executed and recorded by the
			 Borrower at their own expense as required by the Department.
(7) If the Loan is secured by real property,
			 the trust deed shall be recorded in an acceptable lien position, as determined
			 by the Department.
(8) The Borrower
			 shall demonstrate control over the Collateral satisfactory to the
			 Department.
(9) All conditions
			 contained in the Commitment and Loan Documents shall be timely fulfilled by the
			 Borrower to the satisfaction of the Department.
(10) The Borrower shall repay the Loan within
			 the terms of the Commitment Letter and applicable Loan Documents.
(11) The Loan shall not be transferred to
			 another party or assumed by another party unless approved in writing by the
			 Department prior to the change.
(12) During the term of the Loan, the
			 Eligible Borrower shall not take any action that directly or indirectly affects
			 the value of the Collateral used as security without prior written approval of
			 the Department.
Stat. Auth.: ORS Ch. 183,
				  456.555(2),
				  456.625(12)
Stats. Implemented: ORS
				  456.561;
				  456.574;
				  456.620;
				  456.625