68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2851
Senate Bill 990
Sponsored by Senators BUNN, WALDEN; Senators BAKER, BRADBURY,
BRYANT, DUKES, LIM, SHANNON, SPRINGER, TIMMS, Representatives
BEYER, CARTER, EIGHMEY, FAHEY, FEDERICI, JOSI, LEHMAN,
LUNDQUIST, MINNIS, MONTGOMERY, NORRIS, SHIELDS, STROBECK,
TARNO, THOMPSON, WATT, WYLIE (at the request of Oregon Public
Ports Association)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Increases amounts that ports may borrow from Oregon Port
Revolving Fund.
Makes permanent authority for transfer of specified percentage
of earned income of Oregon Port Revolving Fund to Port Planning
and Marketing Fund for grant program.
Repeals sunset date otherwise applicable to such authority.
Declares emergency, effective July 1, 1995.
A BILL FOR AN ACT
Relating to the Oregon Port Revolving Fund; creating new
provisions; amending ORS 285.883, 285.885 and 285.910;
repealing section 20, chapter 607, Oregon Laws 1987; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285.883 is amended to read:
285.883. The { + Oregon Economic Development + } Commission
may approve a port development project proposed in an application
filed as provided in ORS 285.873, if, after investigation, the
commission finds that:
(1) The proposed port development project is feasible and a
reasonable risk from practical and economic standpoints, and the
loan has reasonable prospect of repayment.
(2) Moneys in the Oregon Port Revolving Fund are or will be
available for the proposed port development project.
(3) There is a need for the proposed port development project,
and the applicant's financial resources are adequate to provide
the working capital needed to assure success of the project.
(4) The applicant has received all necessary permits required
by federal, state or local agencies.
(5) The applicant has not received or entered into a contract
or contracts exceeding { - $1 million - } { + $1.4
million + } with the commission, under authority of ORS 285.870
to 285.943, for the previous 365 days, and provided that no
applicant may have more than { - $1.5 million - } { + $2
million + } in outstanding loans at any one time.
(6) The standards under ORS 285.025 have been met.
SECTION 2. ORS 285.885 is amended to read:
285.885. If the Oregon Economic Development Commission approves
the project, the commission, on behalf of the state, and the
applicant may enter into a loan contract of not more than
{ - $500,000 - } { + $700,000 + }, secured by good and
sufficient collateral, which shall set forth, among other
matters:
(1) A plan for repayment by the applicant to the Oregon Port
Revolving Fund moneys borrowed from the fund used for the port
{ + development project + }, flexible manufacturing space
project or business development project and interest on such
moneys used at a rate of interest for port development projects
and flexible manufacturing space projects of not less than five
percent or for business development projects of not less than one
percent less than the prevailing interest rate on United States
Treasury bills of comparable term, as determined by the
commission. The repayment plan, among other matters:
(a) Shall provide for commencement of repayment by the port
district of moneys used for the project and interest thereon no
later than one year after the date of the loan contract or at
such other time as the commission may provide. However, upon
approval by the commission, a repayment plan for a flexible
manufacturing space project may provide that no interest shall
accrue until the building is at least 25 percent occupied or
until three years after the date of the loan contract, whichever
is earlier.
(b) May provide for reasonable extension of the time for making
any repayment in emergency or hardship circumstances if approved
by the commission.
(c) Shall provide for such evidence of debt assurance of, and
security for, repayment by the applicant as are considered
necessary by the commission.
(d) Shall set forth a schedule of payments and the period of
loan which shall not exceed the usable life of the contracted
project or 20 years from the date of the contract, whichever is
less, and shall also set forth the manner of determining when
loan payments are delinquent. The payment schedule shall include
repayment of interest which accrues during any period of delay in
repayment authorized by paragraph (a) of this subsection, and the
payment schedule may require payments of varying amounts for
collection of such accrued interest.
(e) Shall set forth a procedure for formal declaration of
default of payment by the commission, including formal
notification of all relevant federal, state and local agencies;
and further, a procedure for notification of all relevant
federal, state and local agencies that declaration of default has
been rescinded when appropriate.
(f) Shall provide for partial or complete repayment, in excess
of scheduled payments, of any outstanding principal loan amount
without penalty. If any prepayment is made, that amount shall not
be included in any computation for the purposes of ORS 285.883
(5).
(2) Provisions satisfactory to the commission for field
engineering and inspection, the commission to be the final judge
of completion of the contract.
(3) That the liability of the state under the contract is
contingent upon the availability of moneys in the Oregon Port
Revolving Fund for use in the project.
(4) Such further provisions as the commission considers
necessary to insure expenditure of the funds for the purposes set
forth in the approved application.
(5) That the commission may institute appropriate action or
suit to prevent use of the facilities of a project financed by
the Oregon Port Revolving Fund if the port is delinquent in the
repayment of any moneys due the Oregon Port Revolving Fund.
SECTION 3. ORS 285.910 is amended to read:
285.910. (1) The Oregon Economic Development Commission may
authorize funds from the Oregon Port Revolving Fund to be used in
appropriate joint governmental participation projects or as match
money with any port, state or federally funded port development
project authorized within a port district, subject to the
stipulations of ORS 285.870 to 285.943.
(2) Any application for a loan under this section shall be in
such form as the commission prescribes and shall furnish such
proof of federal, state or local approval as appropriate for
funding of the port development project.
(3) The total amount of moneys loaned from the fund for
federal, state or local joint port development project purposes
shall not exceed { - $500,000 - } { + $700,000 + } per
project.
SECTION 4. { + Section 20, chapter 607, Oregon Laws 1987, as
amended by section 3, chapter 539, Oregon Laws 1991, is
repealed. + }
SECTION 5. { + If this Act does not become effective until
after July 1, 1995, the repeal of section 20, chapter 607, Oregon
Laws 1987, by section 4 of this Act revives section 19, chapter
607, Oregon Laws 1987. If this Act does not become effective
until after July 1, 1995, this Act shall be operative
retroactively to that date, and the operation and effect of
section 19, chapter 607, Oregon Laws 1987, shall continue
unaffected from July 1, 1995, to the effective date of this Act
and thereafter. Any otherwise lawful action taken or otherwise
lawful obligation incurred under the authority of section 19,
chapter 607, Oregon Laws 1987, after July 1, 1995, and before the
effective date of this Act, is ratified and approved. + }
SECTION 6. { + Section 19, chapter 607, Oregon Laws 1987, as
amended by section 2, chapter 539, Oregon Laws 1991, is added to
and made a part of ORS 285.870 to 285.943. + }
SECTION 7. { + This Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this Act takes effect July 1, 1995. + }
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