Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 49 - SAFE DRINKING WATER REVOLVING LOAN FUND PROGRAM
Section 123-049-0050 - Private Ownership and Regulation of Subsidies for Public Benefit

(1) For a privately owned water system awarded subsidy by the Fund, the amount of subsidy shall not be treated as equity, but rather in all cases as a contingent liability on the balance sheet of the public water system receiving the financing and on the balance sheet of any entity that acquires that system or the assets financed by the Fund.

(2) If a privately owned water system is sold that was awarded subsidy by the Fund, the value of the subsidy shall be effectively excluded from the purchase price, consistent with section (1) of this rule, such that the benefit of the principal forgiveness continues to accrue to the ratepayers or users of the system rather than to the seller. (This section also applies to the sale or lease of system assets financed by the loan, and it pertains but is not limited to the privatization of a publicly owned system)

(3) If section (1) or (2) of this rule is violated, then the water system shall repay the full amount of the subsidy into the Fund. The Authority shall determine the schedule of such repayment, as it deems appropriate under the circumstances.