The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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OREGON BUSINESS DEVELOPMENT DEPARTMENT

 






















DIVISION 52
BEGINNING AND EXPANDING FARMER
LOAN PROGRAM (“AGGIE BONDS”)
123-052-1000
Purpose
(1) The purpose of these rules is to
assist Applicants in applying for the benefits available under the Beginning and
Expanding Farmer Loan Program (aka “Aggie Bonds Program”) authorized
by ORS 285A.420 to 285A.435 and to describe the procedures to be used by the Oregon
Business Development Department in administering that Program.
(2) The Program lowers the
interest cost on loans made by private parties to Beginning Farmers for the acquisition
of Agricultural Land and Agricultural Improvements and Depreciable Agricultural
Property. This is accomplished by Beginning Farmers arranging loans through Eligible
Lenders in compliance with the rules in this Division, so that the Eligible Lender
may exclude interest from gross income under Section 147(c)(2) of the United States
Internal Revenue Code and may exempt interest from Oregon personal income taxes.
(3) Section 147(c)(2) of
the United States Internal Revenue Code, its regulations and ORS 285A.420 to 285A.435
impose very substantial restrictions on the Program; the administrative rules in
this Division outline those restrictions to assist Applicants in determining whether
they may qualify for the Program. The administrative rules in this Division also
describe a simplified Aggie Bond option that reduces the Applicant’s non-Department
related costs for participating in the Program.
(4) The Program does not
provide any state or federal money to repay Beginning and Expanding Farmer loans,
to guarantee these loans, or to repay any Aggie Bonds that are issued under the
Program. Those loans and the related Aggie Bonds are secured only by the resources
that eligible Beginning Farmers provide to lenders.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1100
Definitions
For the purposes of these rules, the
following terms shall have the following meanings, unless the context clearly indicates
otherwise:
(1) “Aggie Bonds”
means conduit revenue bonds issued by the State of Oregon pursuant to ORS 285A.420
to 285A.435 and these rules.
(2) “Agricultural Improvements”
means any improvements, buildings, structures or fixtures suitable for use in farming
that are located on Agricultural Land. “Agricultural Improvements” do
not include personal residences.
(3) “Agricultural Land”
means land located in the State of Oregon that is:
(a) Suitable for use in farming
and that is or will be operated as a farm; and
(b) That will be acquired
by a Beginning Farmer.
(4) “Applicant" means
any person who submits an Application for Aggie Bond financing.
(5) “Application”
means an Application for Aggie Bonds that is submitted to the Department on a form
provided by the Department.
(6) “Beginning Farmer”
means an individual who meets the requirements of OAR 123-052-1300 and is therefore
eligible to be a Borrower under the Program.
(7) “Bond Counsel”
means the bond counsel firm(s) under contract with Oregon Business Development Department
to represent the State of Oregon as issuer of Aggie Bonds.
(8) “Borrower”
means a Beginning Farmer who has received Aggie Bond financing under the Program.
(9) “Code” means
the United States Internal Revenue Code of 1986, as amended, and all rules, regulations,
and notices and releases issued under it.
(10) “Department”
means the Oregon Business Development Department, or its designee.
(11) “Depreciable Agricultural
Property" means personal property suitable for use in farming for which an income
tax deduction for depreciation is allowable in computing federal income tax under
the Code, including but not limited to farm machinery and trucks but not including
feeder livestock, seed, feed, fertilizer and other types of inventory or supplies.
(12) “Depreciable Farm
Property” means property of a character subject to the allowance for depreciation
in computing federal income tax under the Code which is to be used in a trade or
business of farming.
(13) “Eligible Lender”
means a lender who meets the requirements of OAR 123-052-1500.
(14) “Eligible Revenue”
means the revenue or assets that are provided as security for a loan to a Beginning
Farmer participating in the Program.
(15) “Federal Maximum”
means the maximum amount of a loan that federal law allows to be financed under
the Program. For calendar year 2015 the Federal Maximum is $517,700. This amount
may be adjusted for inflation in future calendar years as provided for in Section
147(c)(2)(H) of the Code.
(16) “Financed Property”
means property described in OAR 123-052-1400(1)(a) which is financed through the
Program.
(17) “Financing Agreement”
means an agreement, in substantially the form and with the substance acceptable
to the Department, which describes the requirements for an Eligible Lender making
a loan to a Beginning Farmer that is eligible for financing under the Program.
(18) “Lender Documents”
means the Financing Agreement between the Department and the Eligible Lender and
the Loan Agreement and related documents between an Eligible Lender and a Beginning
Farmer, including but not limited to any related security documents such as mortgages,
deeds of trust and security agreements.
(19) “Permitted Costs”
means any costs of property described in OAR 123-052-1400(1)(a).
(20) “Program”
means the Beginning and Expanding Farmer Loan Program authorized by ORS 285A.420
to 285A.435 and described in these rules.
(21) “Related Person”
means a person other than the Borrower if:
(a) The relationship between
the Borrower and that person would result in a disallowance of losses under section
267 or 707(b) of the Code, or
(b) The Borrower and that
person are members of the same controlled group of corporations (as defined in section
1563(a), except that “more than 50 percent” shall be substituted for
“at least 80 percent” each place it appears therein). For example, a
Related Person includes a grandparent, parent, sibling (whether whole or half-blood),
child, grandchild, or spouse, as well as certain corporations and partnerships.
(22) “State”
means the State of Oregon, any department, agency, or political subdivision of the
State of Oregon, or any designee thereof.
(23) “Substantial Farmland”
means any parcel of land unless the parcel is smaller than 30 percent of the median
size of a farm in the county where the agricultural project is located. However,
Substantial Farmland does not include farmland which was previously owned by the
individual seeking to qualify as a Beginning Farmer if the farmland was disposed
of while the individual was insolvent and Code section 108 applied to indebtedness
with respect to that farmland.
(24) “Tax-exempt”
means excludable from gross income under the Code, and exempt from Oregon personal
income taxation.
(25) “State Treasurer"
means the Treasurer of the State of Oregon or the Treasurer's designee.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1200
Application
(1) An Applicant must apply for qualification
to the Program on a form provided by the Department.
(2) Each Application shall:
(a) Contain a representation
that the Applicant is an individual who has reviewed the Program rules and determined
that the Applicant qualifies as a Beginning Farmer as described in OAR 123-052-1300.
(b) Contain a description
of the costs to be financed through the Program, together with a representation
that those costs are Permitted Costs as described in OAR 123-052-1400.
(c) Contain a statement of
whether the Applicant desires the simplified Aggie Bond option described in OAR
123-052-1800.
(d) Be accompanied by a commitment,
letter of interest or similar document satisfactory to the department, from the
proposed lender that:
(A) Outlines the terms of
the proposed loan;
(B) Expresses the lender’s
interest in making that loan through the Program;
(C) States that the lender
is qualified to make an aggie bond loan under OAR 123-052-1500, and identifies the
lender as:
(i) An insured institution
as described in OAR 123-052-1500(1)(a);
(ii) An "Accredited Investor"
as described in OAR 123-052-1500(1)(b);
(iii) A "Qualified Institutional
Buyer" as described in OAR 123-052-1500(1)(c); or,
(iv) A "Sophisticated Investor"
(SI) as described in OAR 123-052-1500(1)(d).
(D) States whether the Lender
will require that the Applicant receive training in farm management.
(E) States that the Lender
has reviewed, and is willing to execute, a Financing Agreement in substantially
the form provided by the Department, and is willing to make the proposed loan under
a Loan Agreement substantially in the form and with the substance of the form of
Loan Agreement provided by the Department.
(e) States that the Applicant
has reviewed the form of Loan Agreement provided by the Department and is willing
and able to make the certifications and promises, including the federal tax certifications,
provided in that form.
(f) Be accompanied by an
application fee of $250. This fee is not refundable.
(g) Unless the Financed Property
will consist exclusively of new Depreciable Agricultural Property, be accompanied
by an appraisal that is satisfactory to the Department. The Lender should contact
the Department to determine the Department’s requirements for appraisals before
the Lender orders an appraisal.
(h) Contain any other information
or documents specified in the Application form provided by the Department.
(3) The Department shall
review each completed Application and notify the Applicant within Thirty days indicating
whether the Applicant, the proposed project and the proposed lender appear eligible
for the Program.
(4) Expenditures made by
the Borrower more than sixty days before the Aggie Bonds are issued generally are
not eligible for financing with Aggie Bonds unless the Department has signed a Reimbursement
Declaration. If the Department signs a reimbursement declaration, expenditures made
more than sixty days before the reimbursement declaration is signed are generally
not eligible for financing with Aggie Bonds. If the Department determines that the
Applicant, the proposed project and the proposed lender appear eligible for the
Program, the Department shall sign a reimbursement declaration that complies with
the requirements of Section 1.150-2 of the Code. Execution of the reimbursement
declaration by the Department permits the Borrower to use the Program to finance
certain expenditures made no earlier than sixty days before such reimbursement declaration
is signed, but does not assure the Applicant that any Aggie Bond will be issued.
The Department shall notify the Applicant promptly upon execution of the reimbursement
declaration.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1300
Requirements for Beginning Farmers
(1) As required by federal law, a Beginning
Farmer must:
(a) Be a “first-time
farmer” within the meaning of Section 147(c)(2) of the Code. That section
of the Code generally provides that a first-time farmer is an individual who has
not at any time had any direct or indirect ownership interest in Substantial Farmland
in the operation of which the individual has materially participated. However, in
certain cases land that was disposed of while the individual was insolvent may be
disregarded for this purpose. Dispositions of land while the individual was insolvent
should be listed in the Application for Program financing.
(b) Be the principal user
of the Financed Property.
(c) Materially and substantially
participate in the operation of the farm of which the Financed Property is a part.
(d) Not have received Tax-exempt
financing under Section 147(c)(2) of the Code in an aggregate amount that, when
added to the amount financed through the Program, exceeds the Federal Maximum.
(2) A Beginning Farmer must
be a resident of the State of Oregon.
(3) Any property owned by
an individual’s spouse or minor children will be treated as owned by the individual.
Any material participation in the operation of a farm by an individual’s spouse
or minor children will be treated as operation of that farm by the individual. Any
receipt of Tax-exempt financing by an individual’s spouse or minor children
will be treated as receipt by the individual.
(4) A Beginning Farmer and
Applicant’s spouse must have total combined personal net worth of no more
than $750,000, as evidenced by a signed, dated personal financial statement on a
form satisfactory to the Department.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1400
Requirements for Property Financed
through the Program
(1) Federal law requires that:
(a) Property financed through
the Program consist only of:
(A) Agricultural Land as
defined in OAR 123-052-1100(3).
(B) Agricultural Improvements
as defined in OAR 123-052-1100(2).
(C) New Depreciable Agricultural
Property, as defined in OAR 123-052-1100(11), that is used for farming on Agricultural
Land.
(D) Used Depreciable Agricultural
Property may not exceed the maximum amount permitted by federal law, as defined
in OAR 123-052-1100(11), that is used for farming on Agricultural Land, including
for purposes of compliance with the $62,500 limit, financing received by an individual’s
spouse or minor children. The Applicant must provide the Department with an appraisal
or other method of determining the value of any used Depreciable Agricultural Property
that will be financed through the Program. The appraisal or other method of determining
the value of any used Depreciable Agricultural Property must be satisfactory to
the Department. On the date these rules are adopted, the maximum amount permitted
by federal law for this purpose is $62,500.
(E) No more than the maximum
amount permitted by federal law of Depreciable Farm Property, as defined in OAR
123-052-1100(12), including for purposes of compliance with this $250,000 limit,
Depreciable Farm Property with respect to which the principal user is or will be
the same person or 2 or more Related Persons as defined in 123-052-1100(20). On
the date these rules are adopted, the maximum amount permitted by federal law for
this purpose is $250,000.
(b) No more than two percent
of the borrowed funds are used to pay costs related to obtaining the loan or participating
in the Program.
(c) Except as provided in
123-052-1400(1)(d), below, the Borrower cannot use Aggie Bond proceeds to acquire
property from a Related Person, within the meaning of OAR 123-052-1100(20).
(d) Property may be acquired
from a Related Person only if:
(A) The acquisition price
is the fair market value of the property, as shown in an independent, professional
appraisal that is performed to qualify the property for financing with the Program
and is acceptable to the Department; and
(B) The Related Person will
not have a financial interest in the farming operation in which the Financed Property
is used.
(2) The Financed Property
is located, or will be used, in the State of Oregon.
(3) The Financed Property
will only be used for farming by the Beginning Farmer or by the Beginning Farmer
and the Beginning Farmer’s family.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1500
Requirements for Lenders
(1) A lender must either be:
(a) An insured institution,
as defined by ORS 706.008, that is authorized to do business in Oregon and that
makes loans to persons engaging in farming or similar operations;
(b) An "Accredited Investor"
(AI) as defined under Section 3(a)(2) of the Securities Act of 1933;
(c) A "Qualified Institutional
Buyer" (QIB) as defined under Rule 144A of the Securities Act of 1933;
(d) A "Sophisticated Investor"
(SI) as defined in Rule 501 of Regulation D under the Securities Act of 1933 and
as further described in 17 CFR 230.506(b)(2)(ii) as one who has such knowledge and
experience in financial and business matters that he is capable of evaluating the
merits and risks of the prospective investment.; or
(e) An institution organized
and existing under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.)
(2) The lender must represent
in writing that it is an insured institution, AI, QIB, SI, or an institution organized
and existing under the Farm Credit Act of 1971, pursuant to 123-052-1500(1), that
the aggie bonds are being acquired for investment, and that the lender intends to
hold the aggie bonds for the lender’s own account and not with a view to,
or for resale.
(3) Under no circumstances
can a lender be a substantial user of the Financed Property or related to a substantial
user of that property. For this purpose “related” means a Related Person
within the meaning of OAR 123-052-1100(22) but shall also include a partnership
and any of its partners (and their spouses and minor children), and an S corporation
and each of its shareholders (and their spouses and minor children).
(4) The Lender must execute
a Financing Agreement in substantially the form and with the substance of the form
of Financing Agreement provided by the Department, or must use a form that is specifically
approved in advance and in writing by the Department. The Lender must make loans
under Loan Agreements that are substantially in the form and with the substance
of the form of Loan Agreement provided by the Department, or must use a form that
is specifically approved in advance and in writing by the Department.
(5) Seller financing is allowed,
subject to the provisions of the Code, State Treasurer, OAR 123-052, including the
Securities Act of 1933.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15; OBDD 4-2015(Temp), f. & cert. ef. 7-13-15 thru 1-8-16; OBDD
7-2015, f. & cert. ef. 9-1-15
123-052-1600
Additional Requirements for Aggie
Bonds
(1) The expenditures financed under
the Program cannot exceed the Federal Maximum, reduced by the total amount of Tax-exempt
financing under Section 147(c)(2) of the Code that the Borrower, the Borrower’s
spouse or minor children have received.
(2) The Department must obtain
an allocation of private activity bond volume cap for each Aggie Bond from the Department’s
legislative allocation or the private activity bond committee. If an adequate allocation
is not available for any reason, the Aggie Bond will not be issued until such allocation
is made to the Program.
(3) The Department must hold
a “TEFRA hearing” and the State Treasurer must approve the issuance
of each Aggie Bond.
(4) The Loan Documents must
provide that loan proceeds may only be spent on costs of property described in OAR
123-052-1400.
(5) The Lender Documents
must not secure the loan with any stock, other equity securities, any debt securities
or any other “investment property” (within the meaning of Treasury Regulation
section 1.148 1(b), or require that the Borrower maintain continuing balances of
specified amounts in accounts in financial institutions.
(6) To obtain the approving
opinion of the Program’s Bond Counsel:
(a) The Borrower must complete
a tax and arbitrage certificate, in form and substance satisfactory to the Department
and the Program’s bond counsel, certifying the accuracy of facts that are
necessary for Program Bond Counsel to issue its approving opinion and stating that
the Borrower shall be solely responsible for compliance with Federal arbitrage restrictions.
(b) The lender must represent
that it complies with sections (2) and (3) of OAR 123-052-1500.
(c) The State, the Borrower
and the lender must execute any other documents required by the Program’s
Bond Counsel in order to deliver its approving tax and legal opinions.
(7) At closing, the Borrower
shall execute a post-issuance tax compliance agreement satisfactory to the Program’s
Bond Counsel.
(8) The Borrower and lender
shall be responsible for reviewing disbursement requests to confirm eligible uses
of bond proceeds.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1700
Procedure after Preliminary Eligibility
Determination
(1) If the Department notifies the Applicant
pursuant to OAR 123-052-1200(3) 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:
(A) That the Borrower is
a Beginning Farmer who meets the requirements of OAR 123-052-1400, that the Aggie
Bond proceeds will be spent only on costs described in 123-052-1400, and that the
requested loan complies with 123-052-1700; and
(B) Whether the Borrower
is electing the simplified Aggie Bond option under OAR 123-052-1800.
(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 123-052-1600, 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.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1800
Simplified Aggie Bond Option
(1) The Code has many complex requirements
for Tax-exempt loans. The cost to the Borrower of participating in the Program may
be reduced if the facts associated with the Applicant’s financing do not raise
complex tax issues.
(2) An Applicant may elect
the simplified Aggie Bond option if:
(a) All Depreciable Agricultural
Property financed under the Program is new property with a useful life that is at
least equal to the term of the Aggie Bond;
(b) All land financed under
the program is land that will be used exclusively for farming purposes, that has
no houses or other structures of significant value on it, for which the Borrower
has provided the Department with an appraisal of the land, exclusive of the value
of any structures on the land.
(c) The amount of the loan
and the aggie bonds does not exceed the sum of: the cost of new, Depreciable Agricultural
Property described in OAR 123-052-1800(2)(a), plus the lesser of the cost or appraised
value of the land described in OAR 123-052-1800(2)(b).
(d) The Borrower is acquiring
all the Financed Property from people or entities that are not Related Persons as
defined in OAR 123-052-1100(20).
(e) The lender is an insured
institution described in OAR 123-052-1500.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-1900
Bond Counsel Opinion
(1) The state requires the Applicant
and its lender obtain a traditional approving opinion from the Program’s Bond
Counsel concluding that the Aggie Bond issued for the Applicant is a valid and binding
obligation of the State, and that interest on the Aggie Bond is Tax-exempt.
(2) If the Department determines
that the financing described in the Application and request for final eligibility
determination, filed by the Applicant pursuant to OAR 123-052-1500, is eligible
for participation in the Program, the Department shall forward the request for final
eligibility determination to the Program’s Bond Counsel. Program Bond Counsel
shall:
(a) Conduct tax due diligence,
determine whether it will be able to issue approving opinions on the proposed Aggie
Bonds, and notify the Department of that determination.
(b) Assuming Bond Counsel
determines it will be able to issue approving opinions on the proposed Aggie Bonds:
(A) Review the draft Financing
Agreement and Loan Agreement provided by the lender and send required changes to
the Borrower and lender for review;
(B) Provide forms of tax
and arbitrage certificates, and other necessary documents, for the Borrower and
lender to execute
(3) If Bond Counsel determines
it will be able to issue an approving opinion on a proposed Aggie Bond, the Department
will forward the Aggie Bond documents to the Treasurer with a request that the Treasurer
approve the issuance of the Aggie Bond. The Treasurer, an independent, elected official
of the State of Oregon, has no legal obligation to approve any Aggie Bond issue.
If the Treasurer approves issuance of an Aggie Bond, the Department will coordinate
the closing with the Borrower, the lender, the State Treasurer, and Bond Counsel.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-2000
Fees and Costs
(1) The Applicant shall pay the Department
the nonrefundable $250 application fee.
(2) At closing, the Borrower
shall pay the Department or appropriate party the following costs or fees:
(a) A bond closing fee of
1.5% of the total Aggie bonds issued for the project, with a minimum of $1,500,
payable to the Department.
(b) Out of pocket costs or
fees of the State, including but not limited to any indirect costs charged to the
Department or Treasurer by Oregon Department of Justice for complex transactions.
(c) State Treasurer’s
costs or fees related to the review, approval and processing of each Aggie Bond
issuance request and issuance.
(d) Any State Private Activity
Bond Committee costs or fees.
(e) Bond Counsel costs or
fees
(3) Applicants or beneficiaries
of Aggie Bond financing shall pay the Department or appropriate party any costs
or fees related to issuance, refunding, modifications, or restructuring of Aggie
Bonds including but not limited to Bond Counsel’s legal fees and direct expenses.
(4) If the Department issues
an unfavorable final eligibility determination, or the Department’s Bond Counsel
determines it is not able to issue an approving opinion, or the Treasurer does not
approve issuance of Aggie Bonds, or the requested Aggie Bonds are not issued for
any other reason, the Applicant’s Application will terminate and the Borrower
shall not be entitled to the return of the application fee it has paid, or entitled
to recover any costs it may have incurred in the preparation and submission of the
Application or any damages it may have suffered as a result of the failure of such
Application.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-2100
Security for Aggie Bonds
(1) Each Aggie Bond will be a special,
limited obligation of the State of Oregon that is payable solely from the Eligible
Revenue paid to the lender as provided in the Lender Documents
(2) As required by ORS 285A.420
to 285A.435, the Aggie Bonds are not:
(a) Secured by, payable from
or chargeable to moneys other than the Eligible Revenue that is committed to pay
the Aggie Bonds;
(b) A liability of the State
of Oregon. No lender or other owner of an Aggie Bond may: compel an exercise of
the taxing power of the State of Oregon to pay any Aggie Bonds or the interest on
any Aggie Bonds or enforce payment of any Aggie Bonds against any property of the
State of Oregon except the Eligible Revenue that is committed to pay the Aggie Bond.
(c) A charge lien or encumbrance,
legal or equitable, upon any property of the State of Oregon, except the Eligible
Revenue that is committed to pay an Aggie Bond.
(3) No Aggie Bond shall be
a general obligation of the Department, the State of Oregon, or any department,
agency, or political subdivision of the State of Oregon.
(4) The full faith and credit
of the Department or the State of Oregon or any department, agency, or political
subdivision of the State of Oregon shall not be pledged for the payment of any Aggie
Bond.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-2200
Waiver
The Department may, in its discretion,
waive any of the requirements of these administrative rules to the extent such requirements
are not otherwise imposed by law.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-2300
Authority to Manage the Program
The Program shall be managed by the
Department or its designee, and is not a Program of the Business Development Commission.
Stat. Auth.: ORS 285A.420 - 285A.435,
ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420
- 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15
123-052-2400
Confidential Records
(1) Upon written request and within
a reasonable time, the Department shall provide program records for inspection in
accordance with ORS Chapter 192.
(2) The person requesting
records will be charged for preparing and mailing such records. Costs may include
but not be limited to costs incurred in locating records, separating exempt and
nonexempt records, having a custodian present during the inspection, preparing lists
of data, making photocopies and telefaxing materials. Fees to be collected shall
be set forth in the Department's schedule of fees and may be amended from time to
time as the Department may determine.
(3) Except as otherwise provided
in ORS 192.410-192.595, records exempt from disclosure include but are not limited
to:
(a) Reports and analyses
of reports which bear on the Applicant's character, finances, management ability
and reliability, and which were obtained in confidence from persons or firms not
required by law to submit them and the Department has obliged itself in good faith
not to disclose the information;
(b) Financial statements,
tax returns, business records, employment history and other personal data submitted
by or for Applicants, or analysis of such data;
(c) Intra-departmental advisory
memoranda preliminary to a decision;
(d) Formulas, plans, designs
and related information that constitute trade secrets under ORS 192;
(e) Personal financial statement;
(f) Financial statements
of Applicants;
(g) Customer lists;
(h) Information of an Applicant
pertaining to litigation to which the Applicant is a party if the complaint has
been filed, or if the complaint has not been filed, if the Applicant shows that
such litigation is reasonably likely to occur. This exemption does not apply to
conclude litigation and nothing in this section shall limit any right or opportunity
granted by law to a party involved in litigation;
(i) Production, sales or
cost data; and
(j) Marketing strategy information
that relates to an Applicant's plan to address specific markets and Applicant's
strategy regarding specific competitors.
Stat. Auth.: ORS 192.410 – 192.595,
ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 192.410
-192.595, ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 3-2015, f. &
cert. ef. 2-24-15






















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