Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 52 - BEGINNING AND EXPANDING FARMER LOAN PROGRAM ("AGGIE BONDS")
Section 123-052-1400 - Requirements for Property Financed through the Program
Universal Citation: OR Admin Rules 123-052-1400
Current through Register Vol. 63, No. 9, September 1, 2024
(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) Depreciable Agricultural Property, as
defined in OAR 123-052-1100(11),
that is used for farming on Agricultural Land.
(i) The total amount of used Depreciable
Agricultural Property that is financed through the Program may not exceed the
maximum amount permitted by federal law. 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; this amount may change periodically.
(ii) The total amount of new and used
Depreciable Agricultural Property that is financed through the Program may not
exceed the maximum amount permitted by federal law. On the date these rules are
adopted, the maximum amount permitted by federal law for this purpose is
$250,000; this amount may change periodically
(iii) The limits of subsections (i) and (ii)
of this subsection (C) apply to all Depreciable Agricultural Property with
respect to which the principal user is or will be the same person or 2 or more
Related Persons.
(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) The Code limits
the use of Aggie Bond proceeds to acquire property from a Related Person (as
defined in OAR 123-052-1100(21)).
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
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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