OAR 123-042-0026: Loan Information

(1) The Authority will not Award loans that exceed $10,000,000 plus applicable fees. (2) Development Projects that receive a loan are subject to the following requirements: (a) The initial loan term may not exceed the usable life of the Project or 30 years from Project completion, whichever is less. The term of a renegotiated loan may not exceed the remaining usable life of the Project or 30 years, whichever is less. (b) The loan must be secured the Municipality’s pledge of its full faith and credit and taxing power within the limitations of Article XI, sections 11 and 11 b, of the Oregon Constitution to pay the amounts due under the loan. The Authority will also require the Municipality to secure the loan with any other pledge of revenue or other collateral that the Authority determines is necessary and reasonable to secure the loan. (3) Emergency Project Loans; (a) An Emergency Project with committed Federal Disaster Relief assistance funds may receive a principal-only, zero percent (0%) interest rate loan of up to $1,000,000 or 50 percent (50%) of the total Project amount, whichever is less; and (b) The maximum Award amount for an Emergency Project cannot exceed the required local match for the Federal Disaster Relief assistance committed to the Project. (4) Planning Loans; (a) The interest rate for a Planning Project loan will be half percent of the 10 year rate set by the Authority for direct loans in effect at the time of the Award and not lower than one percent; and (b) The loan term shall not exceed ten years.