Oregon Administrative Rules › Chapter 340 - DEPARTMENT OF ENVIRONMENTAL QUALITY › Division 82 - STATE FINANCIAL ASSISTANCE TO PUBLIC AGENCIES FOR POLLUTION CONTROL FACILITIES FOR THE DISPOSAL OF SOLID WASTE › Section 340-082-0040 - Loan or Obligation Purchase Agreement

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Following review and approval of the
			 application documents and final construction plans and specifications by the
			 Department and legal authorization by the governing body of the agency or its
			 electorate, if necessary, to enter into a loan agreement with the state or an
			 agreement to sell its general obligation bonds or other obligations to the
			 state, the Department may enter into such loan or purchase agreement in a
			 principal amount up to 100 percent of the eligible project cost including the
			 construction bid accepted, estimated engineering and inspection costs, eligible
			 legal and fiscal costs and a contingency allowance to be established by the
			 Department. Combinations of funds granted and loaned by whatever means shall
			 not total more than 100 percent of the eligible project costs.
(2) The loan or purchase agreement shall
			 identify sources and amounts of revenue, to be dedicated to loan or obligation
			 retirement sufficient to demonstrate that the facilities to be constructed will
			 be self-supporting and self-liquidating. The agency will be required to furnish
			 an annual audit report to the Department to show that adequate and acceptable
			 revenues continue to be available for loan obligation retirement.
(3) When the state is requested to purchase
			 local obligations and a bond purchase agreement is entered into, the local
			 obligations will be purchased at par to an even multiple of $5,000, except that
			 when the amount of local obligations to be purchased by the state is less than
			 $100,000 they may be purchased at par to a multiple of $1,000.
(4) The loan or obligation interest rate to
			 be paid by the agency shall be equal to the interest rate on the state bonds
			 from which the project is funded, except as provided in sections (5) and (6) of
			 this rule.
(5) The Department shall
			 add to the rate of interest otherwise to be charged on loans or obligations a
			 surcharge not to exceed an annual rate of one-tenth of one percent to be
			 applied to the outstanding principal balances in order to offset the
			 Department's expenses of administering the Bond Fund program.
(6) The loan or obligation retirement
			 schedule of the agency must retire its debt obligation to the state at least as
			 rapidly as the state bonds from which the loan funds are derived are scheduled
			 to be retired except that when a debt retirement schedule longer than the
			 state's bond repayment schedule is legally required, special debt service
			 requirements on the agency's loan or obligation purchase will be established by
			 the Department.
(7) Loan or
			 obligation interest and principal payments shall be due at least 30 days prior
			 to the interest and principal payment dates established for the state bonds
			 from which the loan or obligation purchase is advanced.
Stat. Auth.:ORS 468
Stats. Implemented:ORS 468.195 -ORS
				  468.272