Oregon Administrative Rules › Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT › Division 18 - CAPITAL ACCESS PROGRAM › Section 123-018-0040 - Agreement

Current through Register Vol. 63, No. 7, July 1, 2024
All Agreements entered into between a Participating Financial
				Institution and the Department shall provide:
(1) For the creation of a Loss Reserve
			 Account by the Department, owned by the Department for the benefit of the
			 Participating Financial Institution in accordance with ORS
			 285B.115;
(2) That the liability of the State of Oregon
			 and the Department to the Participating Financial Institution under the
			 Agreement is limited to the outstanding balance in the Loss Reserve Account for
			 that Participating Financial Institution, less the portion of the interest that
			 is available for withdrawal by the Department for administrative costs as
			 described in OAR 123-018-0060;
(3) That the terms and conditions of
			 Qualified Loans are to be determined solely by the Participating Financial
			 Institution and Borrower;
(4) The
			 method for enrolling Qualified Loans in the Program;
(5) That the Borrowers, the Participating
			 Financial Institution, and (subject to the availability of money in the Fund)
			 the Department will deposit moneys into the Participating Financial
			 Institution's Loss Reserve Account when the Participating Financial Institution
			 makes a Qualified Loan to a Borrower;
(6) A claims process for reimbursement of
			 Losses that have been incurred from defaults on Enrolled Loans;
(7) For payment by the Department from the
			 Loss Reserve Account to the Participating Financial Institution to reimburse it
			 for such Losses, up to the total amount of the then current balance available
			 in the Loss Reserve Account, less the portion of the earned interest that
			 belongs to the department for administrative costs.
(8) For disposition of any recoveries from a
			 Borrower made by the Participating Financial Institution subsequent to being
			 reimbursed for any Loss by the Department;
(9) Conditions for subrogation of the
			 Department, at the Department's request, to the rights of the Participating
			 Financial Institution in collateral, personal guarantees or other forms of
			 security for the Qualified Loan;
(10) Conditions for withdrawal by the
			 Department of excess balances or of certain interest earnings (see OAR
			 123-018-0150) in the Loss
			 Reserve Account;
(11) Conditions
			 for termination by the Department of the obligation to enroll Qualified Loans
			 under the Program;
(12) Conditions
			 for termination of the Agreement, and disposition by the Department of any
			 remaining balance in the Loss Reserve Account;
(13) For withdrawal by the Participating
			 Financial Institution from the Program and disposition by the Department of any
			 remaining balance in the Loss Reserve Account;
(14) For the Participating Financial
			 Institution to periodically report to the Department any information the
			 Department requires, including financial information that is identifiable with,
			 or identifiable from, the financial records of a Borrower;
(15) For inspection by the Department of the
			 Participating Financial Institution's pertinent files relating to Enrolled
			 Loans;
(16) That the Department may
			 require from the Participating Financial Institution information relating to
			 the Participating Financial Institution's status and performance, as developed
			 by or for applicable state or federal regulatory bodies, and relevant to the
			 Participating Financial Institution's participation in the Program or the
			 financial health of institution, or that the Department may obtain public
			 information from state or federal regulatory bodies such as the Oregon State
			 Department of Consumer and Business Services, Division of Finance and Corporate
			 Securities; and
(17) For other
			 terms and conditions as the Department may require.
Stat. Auth.: ORS
				  285A.075 &
				  285B.115(3)
Stats. Implemented: ORS
				  285B.113,
				  285B.115,
				  285B.117 &
				  285B.118