OAR 123-110-0004: Use of Leverage and Financial Tools

(1) As authorized by ORS 284.885(8)(b), the Board may use or encourage the use of Leverage, guarantees, or other financial tools to maximize the impact of investments made through the Account and the Fund consistent with the Investment Policy Statement. (2) For investments from the Account, the Board will prioritize commitments to fund managers or Investment Vehicles that raise at least three dollars of third-party capital for every one dollar of capital committed by the Board. Notwithstanding this prioritization, the Board will also consider the following when making awards: market conditions, opportunity, quality, and any other relevant factors the Board deems relevant. (3) No specific Leverage ratio is required for investments from the Fund. The Board may consider the use of Leverage or other financial tools when making awards from the Fund, based on the economic development potential of the investment and the capacity of the recipient to raise matching capital. Examples of financial tools that the Board may consider include loan guarantees, subordinated capital, loan loss reserves, participation agreements, or other mechanisms designed to enhance capital formation or mitigate investment risk.