OAR 813-012-0110. Program Loans

(1) To be eligible to receive a program loan for financing, an eligible borrower shall comply with the terms contained in the firm commitment issued by the Department and those conditions of eligibility set forth in these rules. (2) Loan documents shall be on forms approved by the Department. (3) The Department shall not disburse funds for a program loan until: (a) The project has been completed to the satisfaction of the Department; (b) The eligible borrower executes loan documents and other program documentation in form and substance satisfactory to the Department; (c) A regulatory agreement specifying affordability covenants and other restrictions, in such form as required by the Department, has been executed by the eligible borrower and recorded. (4) The borrower shall establish one or more escrow accounts at a financial institution designated by or acceptable to the Department for the collection and disbursement of Project funds. (a) The borrower shall deposit into the escrow account on a monthly basis such amounts necessary to ensure the account will contain sufficient funds to pay real estate taxes, insurance premiums, monthly installments of principal and interest on the program loan or program contribution, and other related costs as they come due. (b) If required by the Department, an escrow account shall be established for the collection and disbursement of reserve account funds. (c) Escrow accounts shall be held, managed and secured in accordance with the Department’s requirements and applicable state.