OAR 690-093-0190: Standards for Security of Loans

Loans shall not be approved unless: (1) The applicant demonstrates and the Department finds that the loan will comply with all requirements of the Department and any applicable federal and state requirements. (2) The Director determines that the applicant meets the following standards: (a) Demonstrated revenues or other resources available to: (A) Repay the loan in accordance with its terms; and (B) Provide for the continued operation and maintenance of the project. (b) The applicant is qualified, credit-worthy and responsible as demonstrated by a satisfactory credit history or rating from a rating agency; or (c) A first lien or other good and sufficient collateral is available to secure and provide repayment of the loan; and (d) The project plan assures timely completion and includes schedules with measurable performance benchmarks. (3) The application requirements and qualifications are met. (4) The proposed water development project is feasible and a reasonable risk from practical and economic standpoints.