Or. Admin. R. 123-300-0400

Current through Register Vol. 63, No. 8, August 1, 2024

Section 123-300-0400 - Agreement

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 123-300-1900 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.

Or. Admin. R. 123-300-0400

OBDD 6-2022, temporary adopt filed 10/12/2022, effective 10/12/2022 through 4/9/2023

Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799

Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 279B