Or. Admin. R. 123-021-3200

Current through Register Vol. 63, No. 5, May 1, 2024

Section 123-021-3200 - Evergreen Insurance Program

(1) Under Evergreen Insurance, the Department may insure up to 80 percent of the maximum principal amount of a line of credit in an amount not to exceed the lesser of $1,600,000 or the product of the Authorized Loan Amount multiplied by the insured percentage.

(2) To qualify for the Evergreen Insurance Program, the Qualified Business must be an existing or proposed business with operations in Oregon that:

(a) Lacks an existing revolving line of credit;

(b) Seeks a new revolving line of credit to replace an existing line of credit that is within 120 days of cancellation or expiration by a lender other than the Financial Institution filing the application for Evergreen Insurance; or

(c) Seeks an increase to an existing revolving line of credit.

(3) The maximum term of Evergreen Insurance is one year.

(4) To issue Evergreen Insurance, the Department must determine that the Financial Institution is sufficiently experienced and capable of operating such a lending program effectively. At the minimum, a Financial Institution must:

(a) Have the capacity to service the loan effectively, including monitoring compliance with any audit, advance and control procedures and limits prescribed by the Department or comparable procedures of the Financial Institution approved by the Department;

(b) Have in place and operate a lending program specializing in line of credit loans secured by, or with, advances based upon eligible accounts receivable and inventory or other assets; and

(c) Monitor the line of credit to ensure compliance with eligible advance rates and use of proceeds in accordance with the Financial Institution's approved credit display and the Loan Insurance Authorization.

Or. Admin. R. 123-021-3200

OBDD 28-2023, temporary adopt filed 10/13/2023, effective 10/13/2023 through 4/5/2024; OBDD 2-2024, adopt filed 03/06/2024, effective 3/8/2024

Statutory/Other Authority: ORS 285A.075 & ORS 285B.200 - ORS 285B.218

Statutes/Other Implemented: ORS 285B.200 - ORS 285B.218