Or. Admin. R. 123-300-0501

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

Section 123-300-0501 - Establishing a Loan Loss Reserve Account; State Transfer of Award funds to Account

(1) Within 30 days after the Department and lender execute an Agreement, lender and Department shall establish a Loan Loss Reserve Account in accordance with the Department's policies for the benefit of ("FBO") the lender to receive the Program Award. The Loan Loss Reserve Account shall be a segregated account established and maintained with a financial institution, as defined in ORS 706.008. The Department requires use of an interest-earning demand deposit account and only Program Award funds and earnings on the Award may be held in the account unless otherwise agreed to by the lender and the Department.

(2) Lender shall confirm in writing to the Department the establishment of the Loan Loss Reserve Account as required in section (1) of this rule and provide information necessary to facilitate the transfer of award funds to the Account within 30 days after the Department and lender execute an Agreement.

(3) The Department shall transfer from the Fund to the Loan Loss Reserve Account of a lender the amount the Department awards to the lender for the Program and that lender accepts. Such transfer shall occur within 15 days after the lender provided notice as required in section (2) of this rule.

Or. Admin. R. 123-300-0501

OBDD 9-2023, adopt filed 06/13/2023, effective 6/13/2023

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

Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799 & ORS 706.008