Oregon Administrative Rules › Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT › Division 300 - Community Lender Loan Loss Account Program › Section 123-300-0101 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
Terms used throughout this OAR Chapter 123, Division 300, are
				as defined in the Act, as provided in the Department's Procedural Rules in OAR
				Chapter 123, Division 001, and herein. As used in this division of
				administrative rules, the following definitions apply, unless the context
				requires otherwise:
(1) "Act" means
			 ORS 285B.780 to ORS
			 285B.799.
(2) "Agreement" means a contract between a
			 lender and the Department authorizing the lender to participate in the Program
			 and providing for the deposit of moneys awarded by the Department out of which
			 the lender may be reimbursed for Principal Losses incurred due to defaults on
			 Enrolled Loans.
(3) "Bank
			 Short-Term Rate" means the interest rate set by the market and which is
			 published by the Wall Street Journal.
(4) "Business" or "Borrower" means a
			 corporation, partnership, limited liability company, joint venture, sole
			 proprietorship, cooperative, or non-profit corporation.
(5) "Claim" means a lender's written request
			 to the Department to authorize the withdrawal of funds from the lender's Loan
			 Loss Reserve Account to offset a Principal Loss resulting from the default of
			 an Enrolled Loan.
(6) "Community
			 Development Financial Institution" or "CDFI" means a lender certified as such
			 by the Community Development Financial Institutions Fund at the United States
			 Department of the Treasury, that is not a financial institution as defined by
			 ORS 706.008 and that maintains an
			 office in this state.
(7)
			 "Community Lender" means a Qualified Lender that is not eligible to participate
			 in the Department's Capital Access Program established by ORS
			 285B.109 to
			 285B.119 or Credit Enhancement
			 Fund program established by ORS
			 285B.200 to ORS
			 285B.218 because the lender is
			 not a financial institution as that term is defined by ORS
			 706.008.
(8) "Department" means the Oregon Business
			 Development Department as established by ORS
			 285A.070.
(9) "Director", "executive officer",
			 "immediate family", "principal shareholder" and "related interest" have the
			 meanings given those terms in 12 C.F.R part 215.2 (2021).
(10) "Enrolled Loan" means a Qualified Loan
			 accepted by the Department for enrollment in the Program.
(11) "Fund" means funds appropriated to the
			 Department for making Program awards to eligible lenders.
(12) "Loan Loss Reserve Account" means an
			 account established by a lender and the Department, in accordance with
			 department policy for the benefit of the lender, for the deposit of moneys
			 awarded from the Fund for use as provided by the Program
			 requirements.
(13) "Prime Rate" has
			 the meaning given that term in ORS
			 285B.784(2).
(14) "Principal", when used in regard to a
			 Business seeking funding from a Community Lender, is defined as:
(a) The proprietor if the Business is a sole
			 proprietorship.
(b) Each managing
			 partner and each partner who is a natural person and holds a 20% or more
			 ownership interest in the partnership if the Business is a
			 partnership.
(c) Each director,
			 each of the five most highly compensated executives or officers of the entity,
			 and each natural person who is a direct or indirect holder of 20% or more
			 ownership stock or stock equivalent of the entity, if the Business is a
			 corporation, limited liability company, association, cooperative or a
			 development company.