Oregon Business Development Department
Chapter 123
Division 52
BEGINNING AND EXPANDING FARMER LOAN
PROGRAM (“AGGIE BONDS”)
123-052-1500
Requirements for Standard Lenders
(1) A Standard Lender must either be:
(a) An insured institution, as defined by ORS 706.008, that is authorized to do business in Oregon and that makes loans to persons engaging in farming or similar operations;
(b) An "Accredited Investor" (AI) as defined under Section 3(a)(2) of the Securities Act of 1933;
(c) A "Qualified Institutional Buyer" (QIB) as defined under Rule 144A of the Securities Act of 1933;
(d) A "Sophisticated Investor" (SI) as defined in Rule 501 of Regulation D under the Securities Act of 1933 and as further described in 17 CFR 230.506(b)(2)(ii) as one who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.; or
(e) An institution organized and existing under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.)
(2) The Standard Lender must represent in writing that it is an insured institution, AI, QIB, SI, or an institution organized and existing under the Farm Credit Act of 1971, pursuant to 123-052-1500(1), that the aggie bonds are being acquired for investment, and that the lender intends to hold the aggie bonds for the lender’s own account and not with a view to, or for resale.
(3) Under no circumstances can a Standard Lender be a substantial user of the Financed Property or related to a substantial user of that property. For this purpose “related” means a Related Person within the meaning of OAR 123-052-1100(21) but shall also include a partnership and any of its partners (and their spouses and minor children), and an S corporation and each of its shareholders (and their spouses and minor children).
(4) The Standard Lender must execute a Financing Agreement in substantially the form and with the substance of the form of Financing Agreement provided by the Department, or must use a form that is specifically approved in advance and in writing by the Department. The Standard Lender must make loans under Loan Agreements that are substantially in the form and with the substance of the form of Loan Agreement provided by the Department, or must use a form that is specifically approved in advance and in writing by the Department.
(5) Seller financing is allowed, subject to the provisions of the Code, State Treasurer, OAR 123-052, including the Securities Act of 1933.
Statutory/Other Authority: ORS 285A.420 - 285A.435 & ch. 742 OL 2013
Statutes/Other Implemented: ORS 285A.420.420 - 285A.435 & ch. 742 OL 2013
History:
OBDD 8-2016, f. & cert. ef. 8-3-16
OBDD 7-2015, f. & cert. ef. 9-1-15
OBDD 4-2015(Temp), f. & cert. ef. 7-13-15 thru 1-8-16
OBDD 3-2015, f. & cert. ef. 2-24-15