Bill > HB4075

This bill allows the State Treasurer to guarantee loans for eligible rural hospitals that are governed by a publicly elected board and receive Medicare reimbursement based on diagnostic related groups, with the purpose of addressing cash shortages or refinancing existing debt, not for expansion or capital improvements. These loans must be fully amortized, have a maturity of no more than 20 years, be secured by a first lien on the hospital's assets, and require the hospital and lender to exhaust all reasonable efforts to repay before the state guarantee is accessed. The guarantee terminates upon loan maturity, replacement, or full repayment, and the hospital must provide annual financial reports. Importantly, the guarantee is payable from the Unclaimed Property and Estates Fund, up to $44 million, and does not create a debt for the State of Oregon, with the provision for using this fund to fulfill guarantee obligations set to expire in 2048, and the entire act is declared an emergency measure to take effect immediately upon passage.