1. (1) Loans shall not be approved unless:

   1. (a) The applicant demonstrates and the department finds that the loan will comply with the

      requirements of Article XI-I(1) of the Oregon Constitution, ORS 541.600 to 541.855, and any

      applicable federal and state requirement.

   2. (b) The director determines that the applicant meets the following standards:

      1. (A) Demonstrated revenues or other resources available to:

         1. (i) Repay the loan in accordance with its terms, and
         2. (ii) Provide for the continued operation and maintenance of the project.
      2. (B) Satisfactory credit history or rating from a rating agency; or
      3. (C) Good and sufficient collateral is available to secure and provide repayment of the loan, and
      4. (D) The project plan assures timely completion and includes schedules with measurable performance benchmarks.
   3. (c) The application requirements and qualifications are met.
   4. (d) The commission finds that all conditions of ORS 541.720 are met.

2. (2) The director, under the authority of the commission, may issue an initial non-binding letter of intent to an applicant, indicating a present intention to approve a loan application in a specified amount but subject to:

   1. (a) Receipt of certain additional and specified information in the letter,
   2. (b) The director’s review and approval of such additional information, or
   3. (c) The applicant’s receipt of any required permits or other regulatory licenses or approvals necessary to construct or operate the project.
3. (3) For application to fund a federal water development project, the director must determine that all required federal approval for funding and construction of the project has been obtained.

Statutory/Other Authority

ORS 536.027 & 541.646

Statutes/Other Implemented

ORS 541-600 - 541.646

History

WRD 2-2010, f. & cert. ef. 12-14-10