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The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
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OREGON BUSINESS DEVELOPMENT DEPARTMENT

 

DIVISION 52

BEGINNING AND EXPANDING FARMER LOAN PROGRAM (“AGGIE BONDS”)

123-052-0010

Purpose

(1) The purpose of these rules is to assist Applicants in applying for the benefits available under the Beginning and Expanding Farmer Loan Program (aka “Aggie Bonds Program”) authorized by 2013 Oregon Laws, Chapter 742 and to describe the procedures to be used by the Oregon Business Development Department in administering that Program.

(2) The Program lowers the interest cost on loans made by private parties to Beginning Farmers for the acquisition of Agricultural Land and Agricultural Improvements and Depreciable Agricultural Property. This is accomplished by qualifying loans that Beginning Farmers arrange through Eligible Lenders so that the Eligible Lender may exclude interest from gross income under Section 147(c)(2) of the United States Internal Revenue Code and may exempt interest from Oregon personal income taxes.

(3) Section 147(c)(2) of the United States Internal Revenue Code, its regulations and 2013 Oregon Laws, Chapter 742 impose very substantial restrictions on the Program; these rules outline those restrictions to assist Applicants in determining whether they may qualify for the Program. These rules also describe a simplified Aggie Bond option that reduces the Applicant’s fees for participating in the Program.

(4) The Program does not provide any state or federal money to repay Beginning and Expanding Farmer loans or to guarantee these loans nor to repay any Aggie Bonds that are issued under the Program. Those loans and the related Aggie Bonds are secured only by the resources that eligible Beginning Farmers provide to lenders.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0020

Definitions

For the purposes of these rules, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

(1) “Aggie Bonds” means conduit revenue bonds issued by the State of Oregon pursuant to 2013 Oregon Laws, Chapter 742 and these rules.

(2) “Agricultural Improvements” means any improvements, buildings, structures or fixtures suitable for use in farming that are located on Agricultural Land. “Agricultural Improvements” do not include personal residences.

(3) “Agricultural Land” means land located in the State of Oregon that is:

(a) Suitable for use in farming and that is or will be operated as a farm; and

(b) That will be acquired by a Beginning Farmer.

(4) “Applicant" means any person who submits an Application for Aggie Bond financing.

(5) “Application” means an Application for Aggie Bonds that is submitted to the Department on a form provided by the Department.

(6) “Beginning Farmer” means an individual who meets the requirements of OAR 123-052-0040 and is therefore eligible to be a Borrower under the Program.

(7) “Bond Counsel” means the bond counsel firm(s) under contract with Oregon Business Development Department to represent the State of Oregon as issuer of Aggie Bonds.

(8) “Borrower” means a Beginning Farmer who has received Aggie Bond financing under the Program.

(9) “Code” means the Internal Revenue Code of 1986, as amended, and all rules, regulations, and notices and releases issued under it.

(10) “Department” means the Oregon Business Development Department, or its designee.

(11) “Depreciable Agricultural Property" means personal property suitable for use in farming for which an income tax deduction for depreciation is allowable in computing federal income tax under the Code, including but not limited to farm machinery and trucks but not including feeder livestock, seed, feed, fertilizer and other types of inventory or supplies.

(12) “Eligible Lender” means a lender who meets the requirements of OAR 123-052-0060.

(13) “Eligible Revenue” means the revenue or assets that are provided as security for a loan to a Beginning Farmer participating in the Program.

(14) “Federal Maximum” means the maximum amount of a loan that federal law allows to be financed under the Program. For calendar year 2014 the Federal Maximum is $509,600. This amount may be adjusted for inflation in future calendar years as provided for in Section 147(c)(2)(H) of the Code.

(15) “Financed Property” means property described in OAR 123-052-0050(1)(a) which is financed through the Program.

(16) “Lender Documents” means the loan documents between an Eligible Lender and a Beginning Farmer, including but not limited to any related security documents such as mortgages, deeds of trust and security agreements.

(17) “Permitted Costs” means any costs of property described in OAR 123-052-0005(1)(a).

(18) “Program” means the Beginning and Expanding Farmer Loan Program authorized by 2013 Oregon Laws, Chapter 742 and described in these administrative rules.

(19) “Related Person” means a person other than the Borrower if (A) the relationship between the Borrower and that person would result in a disallowance of losses under section 267 or 707(b) of the Code, or (B) the Borrower and that person are members of the same controlled group of corporations (as defined in section 1563(a), except that “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears therein). For example, a Related Person includes a grandparent, parent, sibling (whether whole or half-blood), child, grandchild, or spouse, as well as certain corporations and partnerships.

(20) “State” means the State of Oregon, any department, agency, or political subdivision of the State of Oregon, or any designee thereof.

(21) “Substantial Farmland” means any parcel of land unless the parcel is smaller than 30 percent of the median size of a farm in the county where the agricultural project is located. However, Substantial Farmland does not include farmland which was previously owned by the individual seeking to qualify as a Beginning Farmer if the farmland was disposed of while the individual was insolvent and Code section 108 applied to indebtedness with respect to that farmland.

(22) “Tax-exempt” means excludable from gross income under the United States Internal Revenue Code of 1986, as amended, and exempt from Oregon personal income taxation.

(23) “State Treasurer" means the Treasurer of the State of Oregon or the Treasurer's designee.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0030

Application

(1) An Applicant must apply for qualification to the Program on a form provided by the Department.

(2) Each Application shall:

(a) Contain a representation that the Applicant is an individual who has reviewed the Program rules and determined that the Applicant qualifies as a Beginning Farmer as described in OAR 123-052-0040.

(b) Contain a description of the costs to be financed through the Program, together with a representation that those costs are Permitted Costs as described in OAR 123-052-0050.

(c) Contain a statement of whether the Applicant desires the simplified Aggie Bond option described in OAR 123-052-0090.

(d) Be accompanied by a commitment, letter of interest or similar document, signed by the proposed lender that:

(A) Outlines the terms of the proposed loan;

(B) Expresses the lender’s interest in making that loan through the Program;

(C) States that the lender is either:

(i) An insured institution as described in OAR 123-052-0060(1); or

(ii) A lender who qualifies under OAR 123-052-0060

(e) Be accompanied by a signed preliminary tax questionnaire, on a form provided by the Department;

(f) Be accompanied by an application fee of $250. This fee is not refundable; and

(g) Contain any other information or documents specified in the Application form provided by the Department.

(3) The Department shall review each completed Application and notify the Applicant within five business days indicating whether the Applicant, the proposed project and the proposed lender appear eligible for the Program.

(4) If the Department determines that the Applicant, the proposed project and the proposed lender appear eligible for the Program, the Department shall sign a reimbursement declaration that complies with the requirements of Section 1.150-2 of the Code. Execution of the reimbursement declaration by the Department permits the Borrower to use the Program to finance certain expenditures made no earlier than sixty days before such reimbursement declaration is signed, but does not assure the Applicant that any Aggie Bond will be issued. The Department shall notify the Applicant promptly upon execution of the reimbursement declaration.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0040

Requirements for Beginning Farmers

(1) As required by federal law, a Beginning Farmer must:

(a) Be a “first-time farmer” within the meaning of Section 147(c)(2) of the Code. That section of the Code generally provides that a first-time farmer is an individual who has not at any time had any direct or indirect ownership interest in Substantial Farmland in the operation of which the individual has materially participated. However, in certain cases land that was disposed of while the individual was insolvent may be disregarded for this purpose. Dispositions of land while the individual was insolvent should be listed in the Application for Program financing.

(b) Be the principal user of the Financed Property.

(c) Materially and substantially participate in the operation of the farm of which the Financed Property is a part.

(d) Not have received Tax-exempt financing under Section 147(c)(2) of the Code in an aggregate amount that, when added to the amount financed through the Program, exceeds the Federal Maximum.

(2) A Beginning Farmer must be a resident of the State of Oregon.

(3) Any property owned by an individual’s spouse or minor children will be treated as owned by the individual. Any material participation in the operation of a farm by an individual’s spouse or minor children will be treated as operation of that farm by the individual. Any receipt of Tax-exempt financing by an individual’s spouse or minor children will be treated as receipt by the individual.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0050

Requirements for Property Financed through the Program

(1) Federal law requires that:

(a) Property financed through the Program consist only of:

(A) Agricultural Land as defined in OAR 123-052-0020(3)

(B) Agricultural Improvements as defined in OAR 123-052-0020(2)

(C) New Depreciable Agricultural Property, as defined in OAR 123-052-0020(11), that is used for farming on Agricultural Land, and

(D) No more than $62,500 of used Depreciable Agricultural Property, as defined in OAR 123-052-0020(11), that is used for farming on Agricultural Land, including for purposes of compliance with the $62,500 limit, financing received by an individual’s spouse or minor children. The Applicant must provide the Department with an appraisal or other method of determining the value of any used Depreciable Agricultural Property that will be financed through the Program. The appraisal or other method of determining the value of any used Depreciable Agricultural Property must be satisfactory to the Department.

(b) No more than two percent of the borrowed funds are used to pay costs related to obtaining the loan or participating in the Program.

(c) Except as provided in 123-052-0050(1)(d), below, the Borrower cannot use Aggie Bond proceeds to acquire property from a Related Person, within the meaning of OAR 123-052-0020(19).

(d) Property may be acquired from a Related Person only if:

(A) The acquisition price is the fair market value of the property, as shown in an independent, professional appraisal that is performed to qualify the property for financing with the Program and is acceptable to the Department; and

(B) The Related Person will not have a financial interest in the farming operation in which the Financed Property is used.

(2) The Financed Property is located, or will be used, in the State of Oregon.

(3) The Financed Property will only be used for farming by the Beginning Farmer or by the Beginning Farmer and the Beginning Farmer’s family.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0060

Requirements for Lenders

(1) A lender must either be:

(a) An insured institution, as defined by ORS 706.008, that is authorized to do business in Oregon and that regularly 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; or

(d) A "Sophisticated Investor" (SI) as the term is defined in Rule 501 Regulation D under the Securities Act and 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.

(2) If a lender is an AI, QIB or SI, they must agree in writing that the securities are being acquired for investment and are intended to be held for their own account and not with a view to, or for resale in connection with, the distribution or transfer of the bonds.

(3) Under no circumstances can AI, QIB or SI lenders be substantial users of the Financed Property nor related to a substantial user of that property. For this purpose “related” means a Related Person within the meaning of OAR 123-052-0020(19) 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).

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0070

Additional Requirements for Aggie Bonds

(1) The expenditures financed under the Program cannot exceed the Federal Maximum, reduced by the total amount of Tax-exempt financing under Section 147(c)(2) of the Code that the Borrower, the Borrower’s spouse or minor children have received.

(2) The Department must obtain an allocation of private activity bond volume cap for each Aggie Bond from the Department’s legislative allocation or the private activity bond committee. If an adequate allocation is not available for any reason, the Aggie Bond will not be issued until such allocation is made to the Program.

(3) The Department must hold a “TEFRA hearing” and the State Treasurer must approve the issuance of each Aggie Bond.

(4) The Loan Documents must provide that loan proceeds may only be spent on costs of property described in OAR 123-052-0050.

(5) The Lender Documents must not secure the loan with any stock, other equity securities, any debt securities or any other “investment property” (within the meaning of Treasury Regulation section 1.148 1(b), or require that the Borrower maintain continuing balances of specified amounts in accounts in financial institutions.

(6) To obtain the approving opinion of the Program’s Bond Counsel:

(a) The Borrower must complete a tax and arbitrage certificate, in form and substance satisfactory to the Department and its bond counsel, certifying the accuracy of facts that are necessary for Program Bond Counsel to issue its approving opinion.

(b) The lender must certify that it has not and does not intend to reoffer the Aggie Bond.

(c) The State, the Borrower and the lender must execute any other documents required by Program Bond Counsel in order to deliver its approving tax and legal opinions.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0080

Procedure after Preliminary Eligibility Determination

(1) If the Department notifies the Applicant pursuant to OAR 123-052-0030(3) that the Applicant, the proposed project and the proposed lender appear eligible for the Program, the Borrower may file a request for a final eligibility determination with the Department. This request shall be accompanied by a nonrefundable processing fee of 1.5% of the total Aggie Bonds to be issued for the project, with a minimum of $2,000. The request for final eligibility determination shall be filed on a form provided by the Department, and shall contain:

(a) A detailed description of the costs to be financed;

(b) A statement, signed by the Borrower and in substantially the form provided by the Department:

(A) That the Borrower is a Beginning Farmer who meets the requirements of OAR 123-052-0050, that the Aggie Bond proceeds will be spent only on costs described in 123-052-0050, and that the requested loan complies with 123-052-0080; and

(B) Whether the Borrower is electing the simplified Aggie Bond option under OAR 123-052-0090.

(c) A statement, signed by the lender and in substantially the form provided by the Department:

(A) Attaching drafts of the Lender Documents, in substantially final form;

(2) Describing the principal amount of the requested Aggie Bonds, the interest rate and other material loan terms, including but not limited to all fees and points being charged by the lender (if not stated in the Lender Documents).

(3) That the lender is eligible to purchase Aggie Bonds under OAR 123-052-0070, and providing facts supporting this statement.

(4) That the lender has completed its credit review and is prepared to make the loan under the Lenders Documents provided to the Department, and that no significant contingencies remain.

(5) A signed, completed final tax questionnaire on a form provided by the Department.

(6) Any other information specified in the form of request for final eligibility determination provided by the Department.

(7) The Department review the request for final eligibility determination when the completed request has been filed with the Department and make a final eligibility determination. The final eligibility determination may be favorable or unfavorable.

(a) The Department shall notify the Applicant of a favorable final eligibility determination no later than five business days after Program Bond Counsel notifies the Department that it expects to be able to issue an approving opinion. The notice of a favorable final eligibility determination shall state that that financing described in the Application and request for final eligibility determination is eligible for Aggie Bond financing, and that the Applicant is authorized to proceed to closing, subject to any conditions imposed by the Department in the final eligibility determination.

(b) The Department shall notify the Applicant of a unfavorable final eligibility determination no later than five business days after the first to occur of the following: the Department determines that the financing does not qualify under Oregon law or these rules for Aggie Bond financing, or Program Bond Counsel notifies the Department that it does not expect to be able to issue an approving opinion. The notice of an unfavorable final eligibility determination shall state that that financing described in the Application and request for final eligibility determination is not eligible for Aggie Bond financing, and shall state that the Applicant is entitled to appeal that determination to the Finance Committee of the Oregon Business Development Commission by filing a notice of appeal with the Department no later than ten business days after the Department notifies the Applicant of the unfavorable final eligibility determination. Unless it is appealed, an unfavorable final eligibility determination shall become final on the eleventh day after the Department notifies the Applicant of that determination. Any decision by the Finance Committee of the Oregon Business Development Commission on an appeal is final when it is made.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0090

Simplified Aggie Bond Option

(1) The Code has many complex requirements for Tax-exempt loans. The cost to the Borrower of participating in the Program may be reduced if the facts associated with the Applicant’s financing do not raise complex tax issues.

(2) An Applicant may elect the simplified Aggie Bond option if:

(a) All Depreciable Agricultural Property financed under the Program is new property that has a cost of no more than 25% of the amount financed, and that has a useful life of at least ten years.

(3) The Borrower is acquiring all the Financed Property from people or entities that are not Related Persons as defined in OAR 123-052-0020(19).

(4) The lender is an insured institution described in OAR 123-052-0060.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0100

Bond Counsel Opinion

(1) The state requires the Applicant and its lender obtain a traditional approving opinion from the Program’s Bond Counsel concluding that the Aggie Bond issued for the Applicant is a valid and binding obligation of the State, and that interest on the Aggie Bond is exempt from Federal and personal State taxation.

(2) If the Department determines that the financing described in the Application and request for final eligibility determination, filed by the Applicant pursuant to OAR 123-052-0060, is eligible for participation in the Program, the Department shall forward the request for final eligibility determination to the Program’s Bond Counsel. Program Bond Counsel shall:

(a) Conduct tax due diligence and provide forms of tax and arbitrage certificates, and other necessary documents, for the Borrower and lender to execute;

(b) Draft the bond documents and send them to the Borrower and lender for review;

(c) Determine whether Bond Counsel will be able to issue approving opinions on the proposed Aggie Bonds, and notify the Department of that determination.

(3) If Bond Counsel determines it will be able to issue approving opinions on a proposed Aggie Bond, the Department will forward the Aggie Bond documents to the Treasurer with a request that the Treasurer approve the issuance of the Aggie Bonds. The Treasurer, an independent, elected official of the State of Oregon, has no legal obligation to approve any Aggie Bond issue. If the Treasurer approves issuance of an Aggie Bond, the Department will coordinate the closing with the Borrower, the lender, the State Treasurer, and Bond Counsel.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0110

Fees and Costs

(1) The Applicant shall pay the Department the nonrefundable $250 application fee. The Applicant shall pay the Department the nonrefundable processing fee of 1.5% of the total Aggie Bonds to be issued for the project, with a minimum of $2,000.

(2) At closing, the Borrower shall pay the Department or appropriate party the following costs or fees:

(a) Out of pocket costs or fees of the State, including but not limited to any indirect costs charged to the Department or Treasurer by Oregon Department of Justice for complex transactions.

(b) Treasury costs or fees related to the review, approval and processing of each Aggie Bond issuance request and issuance.

(c) Any State Private Activity Bond Committee costs or fees.

(d) Bond Counsel costs or fees

(3) Applicants or beneficiaries of Aggie Bond financing shall pay the Department or appropriate party any costs or fees related to issuance, refunding, modifications, or restructuring of Aggie Bonds including but not limited to Bond Counsel’s legal fees and direct expenses.

(4) If the Department issues an unfavorable final eligibility determination, or the Department’s Bond Counsel determines it is not able to issue an approving opinion, or the Treasurer does not approve issuance of Aggie Bonds, or the requested Aggie Bonds are not issued for any other reason, the Applicant’s Application will terminate and the Borrower shall not be entitled to the return of any fees it has paid, or entitled to recover any costs it may have incurred in the preparation and submission of the Application or any damages it may have suffered as a result of the failure of such Application.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0120

Security for Aggie Bonds

(1) Each Aggie Bond will be a special, limited obligation of the State of Oregon that is payable solely from the Eligible Revenue paid to the lender as provided in the Lender Documents

(2) As required by 2013 Oregon Laws, Chapter 742, the Aggie Bonds are not:

(a) Secured by, payable from or chargeable to moneys other than the Eligible Revenue that is committed to pay the Aggie Bonds;

(b) A liability of the State of Oregon. No lender or other owner of an Aggie Bond may: compel an exercise of the taxing power of the state to pay any Aggie Bonds or the interest on any Aggie Bonds or enforce payment of any Aggie Bonds against any property of the state except the Eligible Revenue that is committed to pay the Aggie Bond.

(c) A charge lien or encumbrance, legal or equitable, upon any property of the state, except the Eligible Revenue that is committed to pay an Aggie Bond.

(3) No Aggie Bond shall be a general obligation of the Department, the state of Oregon, or any department, agency, or political subdivision of the State of Oregon.

(4) The full faith and credit of the Department or the State of Oregon or any department, agency, or political subdivision of the State of Oregon shall not be pledged for the payment of any Aggie Bond.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0130

Waiver

The Department may, in its discretion, waive any of the requirements of these administrative rules to the extent such requirements are not otherwise imposed by law.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0140

Authority to Manage the Program

The Program shall be managed by the Department, and is not a Program of the Business Development Commission.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

123-052-0150

Confidential Records

(1) Upon written request and within a reasonable time, the Director or his designee shall provide program records, for inspection in accordance with ORS Chapter 192.

(2) The person requesting records will be charged for preparing and mailing such records. Costs may include but not be limited to costs incurred in locating records, separating exempt and nonexempt records, having a custodian present during the inspection, preparing lists of data, making photocopies and telefaxing materials. Fees to be collected shall be set forth in the Department's schedule of fees and may be amended from time to time as the Department may determine.

(3) Except as otherwise provided in ORS 192.410-192.595, records exempt from disclosure include but are not limited to:

(a) Reports and analyses of reports which bear on the Applicant's character, finances, management ability and reliability, and which were obtained in confidence from persons or firms not required by law to submit them and the Department has obliged itself in good faith not to disclose the information;

(b) Financial statements, tax returns, business records, employment history and other personal data submitted by or for Applicants, or analysis of such data;

(c) Intra-departmental advisory memoranda preliminary to a decision;

(d) Formulas, plans, designs and related information that constitute trade secrets under ORS 192;

(e) Personal financial statement;

(f) Financial statements of Applicants;

(g) Customer lists;

(h) Information of an Applicant pertaining to litigation to which the Applicant is a party if the complaint has been filed, or if the complaint has not been filed, if the Applicant shows that such litigation is reasonably likely to occur. This exemption does not apply to conclude litigation and nothing in this section shall limit any right or opportunity granted by law to a party involved in litigation;

(i) Production, sales or cost data; and

(j) Marketing strategy information that relates to an Applicant's plan to address specific markets and Applicant's strategy regarding specific competitors.

Stat. Auth.: ORS 285A.420 - 285A.435, ch. 742 OL 2013
Stats. Implemented: ORS 285A.420.420 - 285A.435, ch. 742 OL 2013
Hist.: OBDD 5-2014(Temp), f. & cert. ef. 4-1-14 thru 9-27-14

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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