ORS 526.705
Loan program

  • financial assistance terms and conditions
  • rules

(1)

To carry out the duties, functions and powers of the Forest Resource Trust, there is created a voluntary loan program to finance establishment of stands of trees and the improved management of qualified private and local government forestlands.

(2)

In advancing moneys and providing other assistance for stand establishment, the State Board of Forestry shall:

(a)

Give priority to lands zoned for forest uses under county comprehensive plans and to other lands with moderate to high probability of success for long-term stand establishment and improved forest management activities; and

(b)

Assist landowners in securing payments for ecosystem services.

(3)

The State Board of Forestry may, by rule, establish financial agreements for the repayment of moneys advanced consistent with subsection (2) of this section and including but not limited to the following, singly or in combination:

(a)

A revenue-sharing proposal that guarantees the landowner a percentage of the receipts upon harvest after payment of harvest and severance taxes;

(b)

Financial agreements; and

(c)

Repayment in full with interest if a landowner fails to get the stand free to grow as that term is defined in the Oregon Forest Practices Act, unless said failure is through no fault of the landowner.

(4)

The terms of repayment shall be based on considerations that represent the best use and investment of funds including:

(a)

Rates of return, as established by the State Board of Forestry, that provide a reasonable payback to the Forest Resource Trust of project costs;

(b)

Measurable anticipated public benefits such as job creation, tax revenue, increased timber supply and environmental improvement; and

(c)

The extent to which landowner contributions of money, labor or other resources reduce the risk to the Forest Resource Trust.

(5)

Participating landowners shall not be required to comply with forest practices beyond those required by state and federal law with the exception that planting standards for stand establishment may be more than the required minimum.

(6)

The State Forester is authorized, on behalf of the Forest Resource Trust, to enter into contracts with eligible landowners to carry out the provisions of the voluntary loan program. The contracts may include, but are not limited to:

(a)

Partial to full financing to the landowner, as specified in rules of the State Board of Forestry, from such moneys as may be available in the Forest Resource Trust Fund.

(b)

Any obligations of the landowner for repayment of moneys advanced including, but not limited to:

(A)

Terms for sharing the revenue gained from the sales of timber and forest products, including salvage, from the lands enrolled under the voluntary loan program;

(B)

Acknowledgment that the rights and obligations of the landowner and the Forest Resource Trust and all of the terms of the contract are covenants that run with the land upon sale, lease or transfer of the land benefiting from the voluntary loan program until all future obligations of the contract are met;

(C)

Financial terms allowing the landowner to terminate the contract;

(D)

Agreement that there is no obligation to repay the moneys advanced prior to sale of timber and forest products from the land;

(E)

Terms to protect the contract from modification unless both parties consent to modification;

(F)

Allowance for different prescriptions for stand management; and

(G)

Repayment in full with interest if the landowner fails to meet any terms of the contract.

(c)

Acknowledgment by the landowner that the State Forester may require a statutory lien on the forest products.

(7)

In addition to the contracts provided for in subsection (6) of this section, the State Forester, on behalf of the Forest Resource Trust, may require landowners to execute security agreements in favor of the trust to secure any repayment or other obligations of the landowner. Any security interest required shall have priority from the date of recording or filing.

(8)

Intentionally left blank —Ed.

(a)

The State Forester shall record a contract described in subsection (6) of this section with the recording officer of the county or counties in which the forestland is located.

(b)

Upon recording, the rights and obligations of the landowner and the Forest Resource Trust under the contract shall become covenants that run with the land and shall be binding upon successors and assigns.

(c)

The interest of the Forest Resource Trust created by recording the contract constitutes a purchaser’s interest in real property for purposes of ORS 93.640 (Unrecorded instrument affecting title or unrecorded assignment of sheriff’s certificate of sale void as to subsequent purchaser).

(d)

A memorandum of contract must include, but is not limited to:

(A)

The date of execution of the contract;

(B)

The name of each landowner of the forestland identified in the contract;

(C)

A legal description of the forestland subject to the contract that conforms with ORS 93.600 (Description of real property for purposes of recordation); and

(D)

If the contract is secured by a lien as provided in ORS 526.695 (Definitions for ORS 526.695 to 526.775) and 526.740 (Lien for moneys payable to trust by forestland owner) to 526.775 (Execution of judgment against other property when forest products and accounts not subject to lien), a statement from each landowner acknowledging the lien.

(9)

As used in this section, “eligible landowner” means a qualified private or local government forestland owner who:

(a)

Owns land that qualifies as forestland, as defined by the State Board of Forestry.

(b)

Has not received an exemption from reforestation requirements pursuant to rules adopted by the board under ORS 527.760 (Reforestation exemptions for land use changes). [1993 c.765 §58; 2007 c.201 §3]

Source: Section 526.705 — Loan program; financial assistance terms and conditions; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors526.­html.

526.005
Definitions
526.008
State Forestry Department
526.009
State Board of Forestry
526.016
General duties
526.031
State Forester
526.036
Fidelity bonds
526.041
General duties of State Forester
526.046
State Forester to cooperate with other agencies and persons
526.052
Credits for former forest protective association employees
526.054
Authority of department to require fingerprints
526.060
State Forestry Department Account
526.065
Authority to accept gifts and other donations for management of state forests and forest legacy programs
526.090
Acceptance and use of moneys under Agricultural Act of 1956 (soil bank and reforestation provisions)
526.095
Clarke-McNary Act accepted
526.105
Disposition of receipts under ORS 526.090 and 526.095
526.111
State Forestry Department Revolving Account
526.121
Reimbursement of revolving account
526.125
Tillamook Forest Interpretive Center Fund
526.131
Purchase or acceptance of federal surplus property
526.135
Leasing departmental equipment to federal agency
526.142
Definition for ORS 526.142 to 526.152
526.144
Equipment pool
526.146
Charges
526.148
Leasing communication equipment
526.152
Disposition of equipment
526.156
Forest Trust Land Advisory Committee
526.162
Taking title in fee simple
526.164
Exchange of property
526.166
Acquisition of real property by purchase, agreement or donation
526.168
Acquisition of real property by eminent domain
526.178
Going upon private property
526.192
Attorney General to conduct proceedings
526.194
Disposition or leasing of property
526.215
Oregon State University research and experimentation programs
526.225
Forest Research Laboratory
526.231
Findings
526.233
Application of antitrust laws
526.235
State forest nursery
526.237
Acquisition of forest tree seedlings
526.255
Long range management, marketing and harvest report
526.265
Hearings to publish report and receive testimony
526.271
Findings
526.273
Cooperation with federal agencies
526.274
Authority to participate in federal forest management
526.275
Policy regarding Good Neighbor Authority Agreement projects
526.276
Reporting on Good Neighbor Authority Agreement projects
526.277
Findings
526.280
Responsibilities of State Forester
526.285
Contracts for providing woody biomass from state-managed forestlands
526.287
Definitions for ORS 526.287 to 526.299 and 526.991
526.289
Legislative findings
526.291
Large commercial event permits
526.294
Large commercial event health and safety standards
526.297
Suspension or revocation of permit
526.299
Organizer responsibility for compliance with permit terms and conditions
526.305
Definitions for ORS 526.305 to 526.370
526.310
Forestland classification committees
526.320
Determination of forestland
526.324
Classification of forestland by committee
526.328
Hearing
526.332
Appeal
526.335
State Board of Forestry rules
526.340
Classification by State Forester
526.350
Policy in administering forest and fire laws
526.360
State Forester to assist in developing forestland for agricultural uses
526.370
Seeding agreements as condition of supervision of burning on forestlands
526.425
Management assistance to nonindustrial private forest landowners
526.450
Short title
526.455
Definitions for ORS 526.450 to 526.475
526.460
Policy to manage forests to maximize benefits
526.465
Purpose of ORS 526.450 to 526.475
526.470
Forest tree seed bank
526.472
Forest tree seed orchard
526.475
Appeal of decisions by State Forester
526.490
Afforestation of certain idle lands
526.500
Definitions for ORS 526.500 to 526.515
526.505
Policy
526.510
Department to provide technical assistance to governmental units
526.515
Gifts, grants and donations
526.600
Definitions for ORS 526.600 to 526.675
526.605
Findings
526.610
Oregon Forest Resources Institute
526.615
Qualifications of voting members
526.620
Terms of voting members
526.625
Effect of failure to maintain qualification
526.630
Expenses of members and staff
526.632
Employees not subject to certain personnel regulation
526.635
Officers
526.640
General authority of institute
526.645
Additional powers
526.650
Expenditure of funds restricted
526.655
Acceptance of grants, donations and gifts
526.660
Application of budget and expenditure control laws
526.665
Exemption from certain financial administration laws
526.670
Books and records
526.675
Oregon Forest Resources Institute Fund
526.695
Definitions for ORS 526.695 to 526.775
526.700
Forest Resource Trust
526.703
Cost share program
526.705
Loan program
526.710
State Forestry Department to assist board
526.720
Forest Resource Trust Fund
526.725
Agreements with private, governmental or other organizations
526.730
Report to legislature
526.740
Lien for moneys payable to trust by forestland owner
526.745
Notice of lien
526.750
Recording of notice
526.755
Foreclosure
526.760
Priority
526.765
Payment of funds advanced
526.770
Notice of forest products harvest
526.775
Execution of judgment against other property when forest products and accounts not subject to lien
526.780
Agreements for forestry carbon offsets
526.783
Development of forestry carbon offset accounting system
526.786
Rules relating to forestry carbon offsets
526.789
Effect of state forestry carbon offset program
526.801
Definitions for ORS 526.801 to 526.831 and 526.992
526.806
Prohibition against export of unprocessed timber
526.811
Exemption from export prohibition
526.816
Certification by bidders for public timber
526.821
Political subdivisions to establish rules
526.826
Barring timber export violators from unprocessed public timber purchases
526.831
Contract cancellation for timber export violation
526.900
Review of state regulations and policies affecting implementation of conservation strategies
526.905
Management plans or policies to reduce risk of loss of forest resources
526.990
Criminal penalty for rule violation
526.991
Criminal penalty for large commercial event offense
526.992
Criminal and civil penalties for timber export violation
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