Oregon Administrative Rules › Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT › Division 300 - Community Lender Loan Loss Account Program › Section 123-300-0401 - Agreement

Current through Register Vol. 63, No. 7, July 1, 2024
An Agreement for a Program award that the Department enters
				into with a lender shall provide:
(1)
			 That the lender's sole remedy against the State of Oregon and the Department
			 under the Agreement is limited to the Program award amount provided under the
			 Agreement, less any payments made under the Loan Loss Reserve Account and less
			 any claims the Department has against lender;
(2) That the terms and conditions of Enrolled
			 Loans are to be determined solely by the lender and Borrower which shall be in
			 compliance with the Act, this divisions of the administrative rules, and the
			 Program proposal from the lender as accepted by the Department;
(3) A required process and form for enrolling
			 Qualified Loans in the Program;
(4)
			 A required collection practice and minimum standards that the lender must
			 utilize for Enrolled Loans;
(5) A
			 Claim process and form for reimbursement of Losses that have been incurred from
			 defaults on Enrolled Loans;
(6) For
			 the creation of a segregated Program Loan Loss Reserve Account by the lender in
			 compliance with the Act and the rules herein during the term of the
			 Agreement;
(7) For payment from the
			 Loan Loss Reserve Account to the lender to reimburse eligible Losses, up to the
			 total amount of the then current balance available in the Loan Loss Reserve
			 Account;
(8) Conditions for
			 Agreement termination by the Department including termination of enrollment of
			 new Qualified Loans under the Program;
(9) For the Department's remedies for
			 lender's termination, withdrawal or default of the Agreement, including
			 recovery of any remaining balance in the Loan Loss Reserve Account and
			 repayment of any amount lender inappropriately expended from the Loan Loss
			 Reserve Account;
(10) For
			 withdrawal by the lender from the Program;
(11) Lender annual reporting requirements to
			 the Department in accordance with ORS
			 285B.794;
(12) For required record maintenance and the
			 Department and Secretary of State's access to records, reports, files, etc.
			 pertaining to the administration, receipt and use of Program funds and
			 necessary to facilitate reviews and audits of the lender's pertinent files
			 related to Enrolled Loans;
(13) For
			 lender to warrant and covenant its ability to implement the Program and execute
			 Qualified Loans as part of its business lending portfolio(s);
(14) Criteria and requirements necessary to
			 release lender from obligations under the Agreement and use remaining balance
			 of the Loan Loss Reserve Account to the lender as detailed in OAR
			 123-300-1901 and ORS
			 285B.797;
(15) Incorporation of the terms of the
			 lender's Program proposal accepted by the Department in response to an RFP;
			 and,
(16) For other terms and
			 conditions as the Department may require.
Statutory/Other Authority: ORS
				  285A.075 & ORS
				  285B.780 - ORS
				  285B.799
Statutes/Other Implemented: ORS
				  285B.780 - ORS
				  285B.799 & ORS
				  279B