Oregon Administrative Rules
Chapter 340 - DEPARTMENT OF ENVIRONMENTAL QUALITY
Division 176 - UNDERGROUND STORAGE TANK LOAN GUARANTEE
Section 340-176-0070 - Loan Guarantee
Current through Register Vol. 63, No. 3, March 1, 2024
(1) The Department shall issue a loan guarantee confirmation letter of 80 percent of the loan principal, not to exceed $80,000, to a commercial lending institution for a loan to provide UST project work where:
NOTE:To assure that funds are available from the UST Compliance and Corrective Action Fund (USTCCA Fund) to pay loan guarantees during the life of the loan, it is necessary for most loans to have equal payments over the term of the loan. The Department, however, recognizes that the lending policies may differ between commercial lending institutions and may differ between individual loans, particularly during construction. The Department expects that equal loan payments will start after construction is complete. The Department is willing to consider other loan arrangements and other loan repayment schedules subsequent to the initial loan, such as multiple loans and loan refinancing where USTCCAF monies are available to pay loan guarantees, upon default, in full. Each new loan arrangement may be approved by the Department on a case by case basis. The final maturity date of the loan may not exceed 20 years from the initial note date.
(2) The loan guarantee shall terminate on the first to occur of:
NOTE:For example, if the initial note has a five year maturity date, it's maturity date may be extended beyond five years, but not past 20 years. The loan guarantee will terminate 30 days after the new maturity date. All of the above rules apply to any extension of the maturity date.
(3) The commercial lending institution shall notify the Department promptly when a loan guaranteed by the Department is paid in full or if the guarantee is replaced with a SBA loan guarantee for the same purpose.
NOTE:Because SBA loans provide a more complete guarantee (SBA guarantees can include costs outside of UST project work and a 90 percent guarantee), the Department encourages transfer of loan guarantees to the SBA. It is expected that the SBA will agree to provide their loan guarantee (takeout the loan) after corrective action and UST construction work is complete, approximately six months after the Department issues the original loan guarantee.
(4) The payment of the loan guarantee is subject to monies being allocated and being available from the Underground Storage Tank Compliance and Corrective Action Fund throughout the term of the loan.
Stat. Auth.:ORS 466.706 -ORS 466.895 &ORS 466.995
Stats. Implemented: OL 1989, Ch. 1071