OAR 813-012-0150. Transfer of Ownership

(1) A Borrower or Eligible Borrower who has received a Program Loan or Commitment from the Department shall not transfer ownership, lease or otherwise encumber any property which serves or will serve as security for a Program Loan without prior written approval from the Department. Approval will not be unreasonably withheld. (2) A transfer of ownership means a sale, conveyance or other transfer of: (a) Any interest of a general partner; (b) Any interest in a joint venture; (c) More than 25 percent of the limited partner’s interest; (d) More than 10 percent of a corporate owner’s interest; or (e) Any individual interest when the ownership is not a limited partnership, general partnership, joint venture or corporation. (3) The Department may require a transfer application charge from owners of Projects that receive loans through the Department, who request the Department’s approval of a change in Project ownership. The Department may require a transfer review charge to Project owners and transferees who effect a change in project ownership without prior written approval from the Department. (4) A 100 percent transfer of ownership means a sale, conveyance or other transfer of: (a) All interest of a general partnership; (b) All interest of a joint venture; (c) All interest of a corporation; (d) All general partners’ interest in a limited partnership; or (e) All individual interest of an ownership entity when the ownership entity is not a limited partnership, general partnership, joint venture or corporation.