ORS 285A.433 Authority of Oregon Business Development Department; document specifications; prohibited actions

The Oregon Business Development Department may:

Lend the proceeds of revenue bonds authorized by ORS 285A.420 to 285A.435 for approved agricultural projects.

Make contracts, execute instruments and do what is necessary or appropriate to carry out ORS 285A.420 to 285A.435.

The documents associated with revenue bonds or loans authorized by ORS 285A.420 to 285A.435 may specify:

The use and disposition of the revenues of an eligible agricultural project.

The creation and maintenance of sinking funds and the regulation, disposition and use of moneys in the sinking funds.

The creation and maintenance of funds to provide for maintaining the eligible agricultural project and replacement of properties depreciated, damaged, destroyed or condemned.

The disposition and use of the proceeds of revenue bonds.

The nature of mortgages or other encumbrances on the eligible agricultural project made in favor of the holder or owners of revenue bonds or in favor of an escrow agent, vendor, lender, other financing party or trustee.

The events of default, the rights and liabilities and the terms and conditions upon which the holders or owners of revenue bonds issued under ORS 285A.430 may bring an action or proceeding on the revenue bonds.

The conditions under which additional revenue bonds or other obligations may be issued that are payable from eligible revenue of an eligible agricultural project.

The insurance to be carried on an eligible agricultural project and the disposition and use of insurance moneys.

The keeping of books of account and the inspection and audit of the books.

The terms and conditions upon which all or part of the revenue bonds become, or may be declared, due before maturity and the terms and conditions upon which a declaration and the consequences of the declaration may be waived.

The rights, liabilities, powers and duties arising upon the breach by a beginning farmer, a lender or a related party.

The appointing of and vesting in a trustee of the right to enforce covenants made to secure or to pay the revenue bonds, the powers and duties of the trustee and the limitation of the liability of the trustee.

The terms and conditions upon which holders or owners of the revenue bonds may enforce covenants made by beginning farmers, trustees and other parties to the bond documents.

The subordination of the security of revenue bonds authorized by ORS 285A.420 to 285A.435, and the payment of principal and interest on the revenue bonds, to other bonds or obligations of the State of Oregon that:

Are issued to finance the approved agricultural project; or

That are outstanding when the subordinated revenue bonds are issued and delivered.

Other terms approved by the department that are consistent with ORS 285A.420 to 285A.435.

The State of Oregon:

May not acquire an ownership or leasehold interest in an approved agricultural project in connection with the financing of the agricultural project.

May not operate an approved agricultural project as a business or in any manner whatsoever.

May not expend moneys on an eligible agricultural project, other than eligible revenue of the eligible agricultural project, the proceeds of revenue bonds issued under ORS 285A.430 or other moneys received by the state as grants or gifts with which to make payments for an eligible agricultural project.