(2) Before revenue bonds may be issued for the program, an agricultural project must be determined to be eligible for a loan under ORS 285A.420 to 285A.435 and the beginning farmer must be qualified by the lender to receive the loan.
(3) The Oregon Business Development Department shall adopt rules for the operation of the program, to define terms and to establish an application process and requirements, criteria and eligibility standards for beginning farmers and lenders to participate in the program. The department may approve a loan only if all of the following are satisfied:
(a) The lender is approved to participate in the program.
(b) The beginning farmer is a resident of this state.
(c) The agricultural project that is the subject of the loan is located, or will be used, in this state.
(d) The lender acknowledges that the loan to the beginning farmer is secured only by the eligible revenue of an eligible agricultural project and not by revenue or assets of the State of Oregon.
(e) The beginning farmer will materially and substantially participate in the farming for which the loan is sought.
(f) The eligible agricultural project will be used for farming only by the beginning farmer or by the beginning farmer and the beginning farmer’s family.
(g) The beginning farmer and the lender have complied with any other requirement, criterion or standard prescribed by the department by rule.
(4)(a) The department may charge fees to lenders and beginning farmers as necessary:
(A) To administer the program; and
(B) To cover the cost of procurement of bond counsel, State Treasurer fees, department issuance fees and trustee fees.
(b) Lenders may charge fees and points as agreed to by the beginning farmer and the lender and as approved by the department.
(5) The lender and the beginning farmer shall agree to the terms of the loan, including interest rate and length of loan. The lender is responsible for making an independent credit evaluation of the beginning farmer or the farming enterprise for which the loan is sought.
(6) The Oregon Business Development Department may enter into contracts and agreements as necessary and appropriate to implement and manage the program. [2013 c.742 §3]
Note: See note under 285A.420.
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