Conventional Insurance Program

Under Conventional Insurance, the Department insures: (1) Up to 80 percent of the original principal amount of a loan in an amount not to exceed the lesser of $6,000,000 or the product of the Authorized Loan Amount multiplied by the insured percentage. (2) A maximum term that is the lesser of: (a) The useful life of the assets being financed; (b) The useful life of the assets used to secure the loan, if different than those financed by the loan; or (c) Ten years, except that the term for Working Capital Loans shall not exceed seven years. (3) Unless otherwise specified by rule, Conventional Insurance is available for all types of non-revolving loans with regular periodic payments of principal and interest, no less than annually, including Working Capital Loans that are secured by fixed assets or other collateral determined to be sufficient by the Department. Unless otherwise approved in writing by the Department, regular periodic payments of principal and interest must commence within 180 days of the loan closing date. (4) At the discretion of the Department, Conventional Insurance may be provided to a term loan made to refinance existing revolving debt held by t he Financial Institution applying for insurance on the proposed loan. Statutory/Other Authority: ORS 285A.075 & 285B.200 - 285B.218 Statutes/Other Implemented: ORS 285B.200 - 285B.218 History: OBDD 4-2026, amend filed 02/20/2026, effective 02/20/2026 OBDD 2-2024, amend filed 03/06/2024, effective 03/08/2024 OBDD 28-2023, temporary amend filed 10/13/2023, effective 10/13/2023 through 04/05/2024 OBDD 27-2023, renumbered from 123-021-0900, filed 10/06/2023, effective 10/06/2023 OBDD 4-2023, temporary amend filed 01/25/2023, effective 01/25/2023 through 07/23/2023 OBDD 3-2023, renumbered from 123-021-0090, filed 01/18/2023, effective 01/18/2023 OBDD 7-2016, f. & cert. ef. 6-3-16 OBDD 6-2016(Temp), f. & cert. ef. 4-11-16 thru 10-7-16 OBDD 5-2015, f. & cert. ef. 8-3-15 Reverted to OBDD 3-2013, f. & cert. ef. 5-23-13 OBDD 1-2015(Temp), f. & cert. ef. 1-26-15 thru 7-24-15 OBDD 3-2013, f. & cert. ef. 5-23-13 Reverted to OBDD 7-2012, f. & cert. ef. 6-1-12 OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13 OBDD 7-2012, f. & cert. ef. 6-1-12 OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12 EDD 17-2009, f. 10-30-09, cert. ef. 11-1-09 EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08 EDD 5-2008(Temp), f. & cert. ef. 2-26-08 thru 8-1-08 EDD 1-2006, f. & cert. ef. 2-10-06 Reverted to EDD 11-1994, f. & cert. ef. 7-29-94 EDD 6-2005(Temp), f. & cert. ef. 8-5-05 thru 1-31-06 Reverted to EDD 11-1994, f. & cert. ef. 7-29-94 EDD 13-2002(Temp), f. & cert. ef. 6-18-02 thru 12-13-02 EDD 11-1994, f. & cert. ef. 7-29-94 EDD 5-1994(Temp), f. & cert. ef. 3-3-94