Duties of department; rules; application procedure; agreement contents

(1) The Oregon Business Development Department shall develop a program under which the department, under contracts with financial institutions, shall provide loan guarantees, insurance, coinsurance in conjunction with other providers of loan guarantee programs or other forms of credit guarantees for qualified businesses for eligible project costs. (2) In administering the program created by ORS 285B.200 to 285B.218, the department shall consult and cooperate with financial institutions in this state. The program shall be administered so that administrative procedures and application procedures are as responsive to the needs of qualified businesses and financial institutions as practicable, consistent with prudent investment and lending practices and criteria. (3) The department shall prescribe by rule the loan or credit guarantee application procedure for a financial institution on behalf of a qualified business. (4) When the department approves a loan or credit guarantee, the department shall enter into a loan or credit guarantee agreement with the financial institution. The agreement shall specify: (a) The fee to be charged to the financial institution; (b) The evidence of debt assurance of, and security for, the loan or credit guarantee; (c) A loan guarantee or credit guarantee which does not exceed 15 years; and (d) Such other terms and conditions considered necessary or desirable by the department.