Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 99 - Industrial Lands Loan Fund
Section 123-099-0050 - Forgivable Loan Agreement Conditions

(1) If a Project Sponsor completes a planning project funded by a program forgivable loan by the project completion deadline in accordance with the terms of the Agreement, and provided that no event of default has occurred, the Department shall, 90 days after the project completion date, forgive repayment of the forgivable loan amount and any interest accrued thereon and cancel the forgivable loan.

(2) If a Project Sponsor completes a development project funded by a program forgivable loan by the project completion deadline in accordance with the terms of the Agreement, and fulfills requirements related to the ownership and operation of the project, as determined by the Department, and provided that no event of default has occurred, the Department shall forgive repayment of the forgivable loan amount and any interest accrued thereon and cancel the forgivable loan.

(3) If a Project Sponsor fails to meet the Agreement's covenant of a term of years for the completed project (not including planning projects) to be directly owned or operated by the Project Sponsor or the subject of a management contract or an operating agreement to which the Project Sponsor is a party, the forgivable loan amount disbursed shall be due and payable in full by the Project Sponsor within 30 days of the applicable change in ownership, operation, management contract or operating agreement by the Project Sponsor.

(4) Noncompliance with performance, including failure to complete the project by the project completion deadline or other conditions set forth in the Agreement shall trigger a forgivable condition default requiring a forgivable loan to be repaid.

(5) The Department may in its discretion allow Project Sponsors to cure noncompliance with performance or other conditions set forth in the Agreement.