OAR 172-005-0020: Consideration of Application by the Authority

(1) At the meeting for which an application has been placed on the agenda, the Authority shall consider whether to approve or disapprove such application; provided that action by the Authority on an application may be deferred to a later meeting upon the vote of a majority of the members of the Authority. With the permission of the chairperson of the Authority and subject to such reasonable regulation as may be imposed from time to time by the Authority or the chairperson of the Authority, representatives of the participating institution filing the application and members of the public shall have the right to address the Authority, orally or in writing, concerning the merits of the proposed project and financing plan. The Authority, at any time while an application is pending, may in its discretion require the participating institution filing such application to provide additional information with respect to, or clarification of, any matter pertaining to the application, the participating institution, the proposed project or the financing thereof as the Authority determines to be reasonably necessary, convenient or appropriate to the Authority's discharge of its functions under ORS Chapter 289 or these rules. (2) In considering whether to approve or disapprove an application, the Authority shall consider the extent to which the proposed project qualifies as a "project" within the meaning of ORS 289.005 in addition to any other factors it deems relevant, which may include any of the following: (a) The extent to which the proposed project and the financing plan conform to the requirements under the Internal Revenue Code for federally tax-exempt financing or are eligible for a federal tax credit or subsidy; (b) The economic viability of the proposed project, including the creditworthiness of the participating institution and credit enhancement provider (if any), the experience of the participating institution in constructing, equipping and operating projects of the type proposed, and the likelihood that all amounts owing on any bonds issued to finance the proposed project will be paid when due; (c) The public benefits expected to be derived from the proposed project, including the extent to which the proposed project furthers the objectives sought to be promoted under ORS 289.005 to 289.240, and the benefits to and impact on the community in which the project is to be located; (d) The ability of the participating institution to provide such information concerning itself and the proposed project as may be necessary or appropriate in order to ensure that any bonds issued are sold on the basis of full and complete disclosure of all material information; and (e) The likelihood that any bonds issued can be successfully marketed at rates of interest which will not jeopardize the economic viability of the proposed project or the participating institution. (3) Approval by the Authority of an application for financing shall be by a resolution in the form recommended by the Authority's bond counsel, but with such additional or different provisions, terms or conditions as the Authority deems necessary or appropriate, which resolution shall require the execution and delivery by the participating institution of a preliminary agreement regarding the requested financing substantially in the form which is attached to the resolution as an exhibit, with such additional or different provisions, terms or conditions as the Authority deems necessary or appropriate. Upon the approval of an application by the Authority, the Executive Director shall promptly request the Treasurer to consider the approval or disapproval of the application. Notwithstanding the approval of an application and regardless of whether the legal requirements and other terms and conditions imposed are met, the approval of an application shall not bind the Authority or the Treasurer to proceed with the requested financing, but shall merely evidence the intent of the Authority and the Treasurer to proceed with the financing subject always to the exercise of their discretion to refuse to proceed. Unless extended by the Authority upon request of the participating institution that filed the application, the financing of a project described in an approved application must be closed within six months of the date upon which such application is approved by the Authority; provided that the foregoing shall not preclude a participating institution from resubmitting an application for the financing of a project which was not closed within such six months period (as the same may have been extended by the Authority), but such resubmitted application shall be filed in the same manner and accompanied by payment of the application fee required by OAR 172-005-0065(2). (4) If an application is not approved by the Authority, the participating institution filing such application may request that such application be placed on the agenda for the Authority's next regular meeting for reconsideration.