Oregon Statutes - Chapter 358 - Museums; Historical Societies; Preservation of Historical and Archaeological Properties and Objects; Oregon Historic Families Database - Section 358.670 - Loan contract terms and requirements.

(1) If a loan application is approved by the State Historic Preservation Officer under ORS 358.668, the borrower (and the owner of historic property if the owner is a person other than the borrower) must enter into a written loan contract with the State Historic Preservation Officer. Under the terms of the loan contract, the borrower (and the owner of historic property if the owner is a person other than the borrower) must agree to:

(a) Maintain the historic property as restored, rehabilitated or repaired for a period of at least 15 years.

(b) Maintain complete and proper financial records regarding the historic property and allow the State Historic Preservation Officer to review those records upon request.

(c) Complete the proposed rehabilitation of the historic property within two years after the date of entering into the loan contract under this section.

(d) Complete the proposed rehabilitation in conformance with the standards and guidelines for the rehabilitation of historic property.

(e) Provide a collateral security interest in the historic property to this state that meets the standards set forth in rules adopted by the State Historic Preservation Officer for securing loans from the Historic Preservation Revolving Loan Fund.

(f) Use the loan proceeds only to fund eligible costs of the rehabilitation.

(2) The loan contract must state the duration of the loan, which may not exceed five years. The loan contract must state the interest payable on the unpaid balance of the loan, which shall be the interest rate set forth in the loan recommendation of the Historic Preservation Revolving Loan Fund Review Committee but may not exceed five percent per year, compounded daily. The loan contract must provide that the loan is to be repaid in equal installments made at least annually.

(3) The loan contract entered into pursuant to this section must include the following additional provisions:

(a) A loan repayment schedule;

(b) The manner of determining when loan payments are delinquent;

(c) Extensions of time in making repayment if the delinquency is caused by emergency, act of God or economic hardship beyond the control of the borrower and the security for the loan will not be impaired thereby;

(d) Rescission of the loan upon default of the loan, upon failure to complete the proposed rehabilitation in conformance with the standards and guidelines for the rehabilitation of historic property or upon failure to maintain the property as historic property; and

(e) Any other provision the State Historic Preservation Officer considers necessary to ensure expenditure of the moneys loaned for eligible costs and to ensure repayment of the borrowed moneys.

(4) After a loan contract in compliance with this section is entered into by the borrower and the State Historic Preservation Officer (and the owner of historic property if the owner is a person other than the borrower), the State Historic Preservation Officer shall transfer the borrowed moneys from the Historic Preservation Revolving Loan Fund to the borrower in accordance with the terms of the loan contract. [2001 c.540 §33]

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Last modified: August 7, 2008