If the Oregon Economic and Community Development Commission approves the business development project, the commission, on behalf of the state, and the applicant may enter into a loan contract of not more than $1 million, secured by good and sufficient collateral, which shall set forth, among other matters:
(1) A plan for repayment by the applicant to the Oregon Business Development Fund of moneys borrowed from the fund used for the business development project with interest charged on those moneys at the rate of not less than one percentage point more than the prevailing interest rate on United States Treasury bills, notes or bonds of a comparable term, as determined by the commission. The repayment plan, among other matters:
(a) Shall provide for commencement of repayment by the applicant of moneys used for the business development project and interest thereon no later than one year after the date of the loan contract or at such other time as the commission may provide.
(b) May provide for reasonable extension of the time for making any repayment in emergency or hardship circumstances if approved by the commission.
(c) Shall provide for such evidence of debt assurance of, and security for, repayment by the applicant as is considered necessary by the commission.
(d) Shall set forth a schedule of payments and the period of loan which shall not exceed the usable life of the contracted project or 25 years from the date of the contract, whichever is less, and shall also set forth the manner of determining when loan payments are delinquent. The payment schedule shall include repayment of interest which accrues during any period of delay in repayment authorized by paragraph (a) of this subsection, and the payment schedule may require payments of varying amounts for collection of accrued interest.
(e) Shall set forth a procedure for formal declaration of default of payment by the commission, including formal notification of all relevant federal, state and local agencies; and further, a procedure for notification of all relevant federal, state and local agencies that declaration of default has been rescinded when appropriate.
(f) Shall allow for other forms of payment than principal and interest payments on loans, to be outlined in administrative rules.
(2) Provisions satisfactory to the commission for field engineering and inspection, the commission to be the final judge of completion of the contract.
(3) That the liability of the state under the contract is contingent upon the availability of moneys in the fund for use in the business development project.
(4) Such further provisions as the commission considers necessary to insure expenditure of the funds for the purposes set forth in the approved application. [Formerly 285.415; 2003 c.167 §3; 2007 c.804 §44]
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