Oregon Administrative Rules › Chapter 274 - DEPARTMENT OF VETERANS' AFFAIRS › Division 13 - VETERANS' SMALL BUSINESS REPAIR LOAN PROGRAM › Section 274-013-0040 - Loan Conditions

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Before providing a Program loan, the Department may require or perform such
			 further credit checks and other due diligence as it deems appropriate. The
			 Applicant and proposed Borrower must cooperate to the Department's satisfaction
			 with respect to such credit checks and other due diligence.
(2) The Department may require that the
			 Borrower and others execute, record and deliver such documents, including such
			 representations, covenants and warranties, as the Department deems appropriate.
			 The Borrower must cooperate fully with such document requirements.
(3) The Department may require such
			 Collateral requirements as it deems appropriate. The Borrower and others shall
			 provide such assurances of Collateral as the Department may require.
(4) The Department may require the payment of
			 a loan fee of not more than one and one-half percent of the amount of the loan
			 to recompense the Department for its costs of loan administration.
(5) Notwithstanding any Program loan
			 commitments by the Department, all Program loans are subject to the
			 availability of Funds as reasonably determined by the Department.
(6) The initial amount of any Program loan
			 shall not exceed $20,000. The total amount of Funds loaned to any Applicant or
			 Borrower shall not exceed $40,000.
(7) The Department may, in its reasonable
			 discretion, disburse the proceeds of an approved loan in such amounts and at
			 such times as the Department deems appropriate to ensure that loan proceeds are
			 used for Project purposes and to preserve the integrity of the Fund. If the
			 Department determines that the financial condition of the Borrower has
			 deteriorated, the Department may suspend or terminate further Program loan
			 disbursements. The Department also may exercise any other remedy available to
			 it in law, contract or otherwise.
(8) The Borrower must abide by all laws and
			 regulations applicable to the Project and provide evidence satisfactory to the
			 Department of its receipt of all applicable federal, state and local permits
			 and licenses before the Department will make any disbursement of Program loan
			 Funds. The Borrower also shall fully and timely perform all Program loan
			 obligations, including as provided in any Program loan documents. The
			 Department may suspend, terminate or exercise any other remedy with respect to
			 its Program loan upon a determination by the Department of any default or other
			 failure of performance by the Borrower, including but not limited to any
			 failure of timely completion of the Project, misallocation of Program loan
			 funds or failure to make timely Program loan repayments.
(9) The Department may take such action as it
			 deems appropriate in the review and enforcement of a Project or of a Program
			 loan, including but not limited to entry onto Project property, inspection of a
			 Project and review and copying of any Borrower documents with respect to a
			 Project. The Borrower shall cooperate fully with the Department in such review
			 and enforcement efforts and agrees to allow Project inspection and review and
			 copying of Project documents as the Department deems appropriate.
(10) At the request of the Department, the
			 Borrower will provide to the Department annual financial statements; copies of
			 tax returns and other requested documents. The Department may require
			 additional financial information or more frequent financial
			 statements.
Stat. Auth.: 2008 OL Ch. 18 & ORS
				  406.005
Stats. Implemented: 2008 OL Ch.
				  18