Or. Admin. Code § 123-052-1700

Current through Register Vol. 63, No. 11, November 1, 2024

Section 123-052-1700 - Procedure after Preliminary Eligibility Determination for Aggie Bonds to be Purchased by Standard Lenders

(1) If the Department notifies the Applicant that the Applicant, the proposed project and the proposed lender appear eligible for the Program, the Borrower may file a request for a final eligibility determination with the Department. The request for final eligibility determination shall be filed on a form provided by the Department, and shall contain:

(a) A detailed description of the costs to be financed;

(b) A statement, signed by the Borrower and in substantially the form provided by the Department that the Borrower is a Beginning Farmer who meets the requirements of OAR 123-052-1300, and that the Aggie Bond proceeds will be spent in compliance with these administrative rules.

(c) A statement, signed by the lender and in substantially the form provided by the Department:

(A) Attaching drafts of the Financing Agreement and other Lender Documents, in substantially final form;

(B) Describing the principal amount of the requested Aggie Bonds, whether lender's loan is a line of credit, and the interest rate and other material loan terms, including but not limited to all fees and points being charged by the lender (if not stated in the Lender Documents).

(C) That the lender is eligible to purchase Aggie Bonds under OAR 123-052-1500, and providing facts supporting this statement.

(D) That the lender has completed its credit review and is prepared to make the loan under the Lenders Documents provided to the Department, and that no significant contingencies remain.

(d) A signed, completed final tax questionnaire on a form provided by the Department.

(e) Any other information specified in the form of request for final eligibility determination provided by the Department.

(2) The Department shall review the request for final eligibility determination when the completed request has been filed with the Department and make a final eligibility determination. The final eligibility determination may be favorable or unfavorable.

(a) The Department shall notify the Applicant of a favorable final eligibility determination no later than five business days after Program Bond Counsel notifies the Department that it expects to be able to issue an approving opinion. The notice of a favorable final eligibility determination shall state that that financing described in the Application and request for final eligibility determination is eligible for Aggie Bond financing, and that the Applicant is authorized to proceed to closing, subject to any conditions imposed by the Department in the final eligibility determination.

(b) The Department shall notify the Applicant of an unfavorable final eligibility determination no later than five business days after either one of the following occurs first:

(A) The Department determines that the financing does not qualify under Oregon law or these rules for Aggie Bond financing; or

(B) Program Bond Counsel notifies the Department that it does not expect to be able to issue an approving opinion.

(c) The notice of an unfavorable final eligibility determination shall state that that financing described in the Application and request for final eligibility determination is not eligible for Aggie Bond financing. Unless appealed, an unfavorable final eligibility determination shall become final on the eleventh day after the Department notifies the Applicant of that determination.

(d) The Applicant is entitled to appeal the unfavorable final eligibility determination to the Finance Committee of the Oregon Business Development Commission by filing a notice of appeal with the Department no later than ten business days after the Department notifies the Applicant of the unfavorable final eligibility determination. Any decision by the Finance Committee of the Oregon Business Development Commission on an appeal is final when it is made.

Or. Admin. Code § 123-052-1700

OBDD 3-2015, f. & cert. ef. 2/24/2015; OBDD 8-2016, f. & cert. ef. 8/3/2016

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013

Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013