ORS 285B.797 Release of lender and use of balance in account; repayment of balance

A lender shall be released from any obligation under a written agreement entered into under ORS 285B.791, and may use for any purpose whatever any balance in the lender’s loan loss reserve account, if the lender has:

Performed under the written agreement entered into with the Oregon Business Development Department for at least 10 years;

Attained during the 10-year period, as required under ORS 285B.791 (3), a ratio of four-to-one of total principal amount of qualified loans made by the lender to the amount of moneys awarded to the lender under ORS 285B.787; and

Complied with the annual reporting requirements under ORS 285B.794.

A release under this section does not absolve a lender of any contractual obligations owed to a qualified borrower under a qualified loan agreement.

A lender shall repay to the department for deposit in the General Fund the balance of moneys awarded to the lender under ORS 285B.787 in the lender’s loan loss reserve account if the department determines that:

The lender has not made a qualified loan for 24 consecutive months;

The lender has become insolvent or has ceased lending operations in Oregon;

The lender has failed to perform in any material way under the written agreement entered into with the department pursuant to ORS 285B.791;

The lender made material misrepresentations in the RFP submitted under ORS 285B.787 or in an annual report required under ORS 285B.794; or

The lender or the lender’s loan loss reserve account portfolio has been sold, transferred or assigned, in whole or part.