As used in this chapter, unless the context
requires otherwise:
(1) “Bonds” means general obligation bonds.
(2) “Municipality” means this state’s political subdivisions and
municipal, quasi-municipal and public corporations authorized by law to
issue bonds. [1983 c.347 §7]
BORROWING AND BONDS OF COUNTIES, CITIES AND DISTRICTS GENERALLY(1) Notwithstanding any other provision
of law, including the city charter, a city with a population of 85,000 or
more according to the most recent federal decennial census may:
(a) Issue authorized obligations, the interest on which is taxable
under the income tax laws of the United States, if such obligations are
nonqualified private purpose obligations as defined by the federal
Internal Revenue Code of 1986 or if the governing body of the city
expressly authorizes issuance on a taxable basis of obligations which are
not nonqualified private purpose obligations.
(b) Issue and sell authorized taxable obligations in foreign
markets, provided that such obligations shall not be payable in whole or
in part in any foreign currency unless the issuer has made prior
provision, through forward contracts or otherwise, to establish a
complete hedge against foreign currency risk with respect to payment of
principal, interest and redemption premium, if any, on such obligations.
(c) Enter into agreements to pay authorized obligations at any
place outside the United States through any agent selected by the city,
to pay authorized obligations in United States currency and to otherwise
conform the terms of any authorized obligation to any established foreign
market in which the authorized obligations will be traded.
(d) Enter into agreements to pay authorized obligations at any
place within the United States through any agent selected by the city and
to conform the terms of any authorized obligation to any established
domestic market in which the authorized obligations will be traded.
(e) Negotiate the sale of authorized obligations described in
paragraph (a) of this subsection and authorized obligations that are sold
in foreign markets or are payable outside the United States.
(f) Enter into any contracts or agreements necessary or desirable
to implement the powers granted by this section.
(2) For purposes of this section, “authorized obligations” means
any bonds, notes, warrants or other obligations which a city is
authorized to issue under any provision of law other than this section.
[1987 c.827 §2; 1989 c.335 §1] (1)
Unless the city charter expressly provides to the contrary, the governing
body of any city may, without a charter amendment, issue bonds upon
approval of the electors of the city by a majority of those voting upon
the question of issuance. Nothing in this section shall be deemed to
require such approval if not required by the charter of the city or if
not required by statute.
(2) Unless a lesser limitation upon the issuance of bonds has
otherwise been provided by law or charter, no city shall issue or have
outstanding at any one time bonds in excess of three percent of the real
market value of all taxable property within its boundaries, computed in
accordance with ORS 308.207, after deducting from outstanding bonds such
cash funds and sinking funds as are applicable to the payment of the
principal thereof.
(3) Where a lesser limitation upon the issuance of bonds is
provided by law or charter, that limitation applies.
(4) The limitations on amounts of this section do not apply to
bonds issued for water, sanitary or storm sewers, sewage disposal plants,
hospitals, infirmaries, gas, power or lighting purposes, or the
acquisition, establishment, construction or reconstruction of any
off-street motor vehicle parking facility, nor to bonds issued pursuant
to applications to pay assessments for improvements in installments under
statutory or charter authority.
(5) This section does not affect the right of any city to issue
bonds heretofore legally voted and authorized nor the right to refund
bonds now outstanding to the extent that sinking funds shall not be
available at maturity to retire such bonds. [Amended by 1959 c.653 §11;
1963 c.9 §13; 1965 c.282 §1; 1973 c.65 §1; 1991 c.459 §373](1) Each municipality shall annually cause to be levied
upon the taxable property within its boundaries a sum sufficient, with
such other revenues as are available, to pay the maturing interest and
principal of all general obligation bonds and to provide a sinking or
debt service fund to pay the interest and principal of all other bonds
issued after June 3, 1929, by the municipality at or before the maturity
date or dates thereof. If any such other bonds are not callable or
subject to retirement by purchase or otherwise before the ultimate
maturity dates specified in such bonds, the surplus of the sinking or
debt service fund over and above current requirements to pay interest and
principal shall be invested in the classes of securities specified in ORS
294.035 and 294.040.
(2) The earnings of the sinking or debt service fund shall be added
to and become a part thereof for the purpose of paying interest and
principal of the bonds for which the fund was created.
(3) A municipality may not use or divert the fund for any other
purpose if principal, interest and premium, if any, remain outstanding on
the bonds. However, if a surplus remains after all principal, interest
and premium, if any, of a given issue have been paid, the governing body
of the municipality may transfer the surplus to another fund designated
by the governing body of the municipality. However, funds of municipal
utilities may not be diverted or transferred to other funds.
(4) Annual sinking or debt service fund installments to pay the
principal of municipal utility bonds issued after June 3, 1929, to defray
costs of construction, extension and betterments may be deferred, if
necessary, for a period not to exceed five years from the issuing date or
dates of such bonds.
(5) This section does not apply to or affect bonds issued pursuant
to applications to pay assessments for improvements in installments under
statutory or charter authority. [Amended by 1983 c.347 §8; 2003 c.195 §12]Notwithstanding any other law, the governing body
of each city, county and district shall ascertain and levy annually, in
addition to all other taxes, a direct ad valorem tax on all the taxable
property within the city, county or district in an amount that, when
added to other amounts available for such purpose and after taking into
account expected discounts and delinquencies in the payment of such tax,
will be sufficient to pay when due the principal of and interest on all
outstanding general obligation bonds issued by such city, county or
district. [1999 c.632 §27]Note: 287.007 was added to and made a part of ORS chapter 287 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. All bonds issued by
municipalities shall be issued in accordance with the provisions of ORS
288.515 to 288.560. [Amended by 1967 c.408 §1; 1969 c.25 §2; 1971 c.325
§2; 1975 c.642 §17; 1981 c.526 §1; 1983 c.347 §9] (1) Notwithstanding
any other provision of law, when bonds, obligations or other evidence of
indebtedness issued by any district, authority or public corporation
after August 9, 1961, are sold, the proceeds may be used to pay attorney,
consultant, paying agent, trustee or other professional fees and other
expenses incurred to authorize, issue, carry and repay the bonds,
obligations or other evidence of indebtedness.
(2) When bonds are sold, the proceeds received in excess of the
principal shall be placed with the principal in the improvement fund for
which the bonds were issued or in a debt service fund to repay the bond.
[1961 c.70 §1; 1971 c.515 §1; 2003 c.195 §13] As used in ORS
287.014 to 287.029, unless the context requires otherwise:
(1) “Bond” means a general obligation bond or a limited tax bond,
as defined in ORS 288.150.
(2) “Issuer” includes the state, cities, counties, common and union
high school districts, community college districts, community college
service districts, special districts, authorities, and other municipal
corporations authorized by law to issue general obligation bonds. [1975
c.642 §9 (enacted in lieu of 287.002); 1991 c.902 §90; 1997 c.271 §9] Bonds of any issuer shall be issued in
the manner provided in ORS 287.014 to 287.022. [1975 c.642 §10 (enacted
in lieu of 287.002)](1) For general obligation bonds offered for public
sale, the issuer shall prepare and make available, for use in connection
with the initial offering and sale, a preliminary official statement that
discloses the material information that the issuer determines is relevant
to a potential investor in the bonds.
(2) The preliminary official statement required by this section of
state agencies must be submitted to the State Treasurer for approval. If
not approved, the State Treasurer shall note the revision required. The
issuer shall make the noted revisions. [1975 c.642 §11 (enacted in lieu
of 287.002); 1977 c.266 §6; 1981 c.660 §12; 1983 c.347 §10; 1991 c.902
§91; 1995 c.333 §3; 1997 c.171 §9; 2005 c.443 §4](1) The issuer may request the Oregon Municipal Debt Advisory
Commission to prepare the preliminary official statement described in ORS
287.018 and shall provide the commission with the information required by
ORS 287.018.
(2) The issuer may request the Oregon Municipal Debt Advisory
Commission to prepare the notice of bond sale required by ORS 287.022.
However, the responsibility for publication, advertising and distribution
of the notice of bond sale shall remain with the issuer.
(3) The commission may charge the issuer a fee commensurate with
expenses incurred in the preparation, publication and distribution of a
preliminary official statement or notice of bond sale prepared pursuant
to subsection (1) or (2) of this section. [1975 c.642 §12 (enacted in
lieu of 287.002); 1977 c.266 §7; 1999 c.44 §16]
For bonds that are sold at public competitive bid sale, the issuer shall
prepare and disseminate a notice of bond sale and provide for the
submission and award of bids in the manner prescribed for revenue bonds
in ORS 288.805 to 288.945. [1975 c.642 §13 (enacted in lieu of 287.002);
1981 c.94 §18; 1991 c.902 §92; 1995 c.333 §4; 1999 c.44 §17](1) As used in this section:
(a) “Agreement for exchange of interest rates” or “agreement” means
a contract, or an option or forward commitment to enter into a contract,
for the exchange of interest rates that provides for:
(A) Payments based on levels of or changes in interest rates; or
(B) Provisions to hedge payment, rate, spread or similar exposure
including, but not limited to, an interest rate floor or cap or an
option, put or call.
(b) “Borrowing” means a bond, note, bond anticipation note,
commercial paper, certificate of participation or other agreement made in
exercise of the borrowing power of the issuer.
(c) “Counterparty” means the entity with which an issuer enters
into an agreement for exchange of interest rates.
(d) “Issuer” means a public body as defined in ORS 288.605 or
Oregon Health and Science University.
(e) “Related borrowing” means a borrowing for which the issuer, or
the State Treasurer on behalf of a state issuer, enters into an agreement
for exchange of interest rates.
(f) “Termination payment” means the amount payable under an
agreement for exchange of interest rates by one party to another party as
a result of termination, in whole or in part, of the agreement prior to
the expiration of the stated term.
(2) If the issuer is a state issuer, including the State of Oregon
or an agency, department, board or commission of the State of Oregon, the
State Treasurer may exercise the authority granted by this section on
behalf of the state issuer or the state issuer, with the approval of the
State Treasurer, may exercise that authority directly.
(3) Subject to subsection (2) of this section, an issuer, or the
State Treasurer on behalf of a state issuer, may enter into an agreement
for exchange of interest rates for one or more related borrowings that:
(a) Exist when the agreement for exchange of interest rates is
executed;
(b) Are reasonably expected to be executed when regularly scheduled
payments are due from the issuer under the agreement; or
(c) Are identified after the agreement for exchange of interest
rates is executed and substituted for a borrowing described in paragraph
(a) or (b) of this subsection as a result of prepayment, refunding,
conversion, ratings changes, redemption, defeasance or other similar
event related to one or more of the borrowings described in paragraph (a)
or (b) of this subsection. An agreement may be made to manage payment,
interest rate, spread or similar exposure undertaken in connection with a
related borrowing upon a finding by the issuer, or the State Treasurer on
behalf of a state issuer, that the agreement benefits the issuer.
(4) The issuer, or the State Treasurer on behalf of a state issuer,
shall include in an agreement for exchange of interest rates provisions
related to payment, term, security, collateralization, termination,
default and remedy that the issuer, or the State Treasurer on behalf of a
state issuer, determines necessary or appropriate upon consideration of
the covenants applicable to the related borrowing and the
creditworthiness of the parties.
(5) The issuer, or the State Treasurer on behalf of a state issuer,
may enter into an agreement for exchange of interest rates only if:
(a) The credit ratings for obligations of the counterparty that are
similar to the termination payment obligations of the counterparty, or
the credit ratings for at least one of the guarantors of the
counterparty, are in one of the top three rating categories without
gradation by at least two nationally recognized rating agencies and
satisfy any other requirements that may be imposed by the Oregon
Municipal Debt Advisory Commission or the State Treasurer, as applicable,
pursuant to subsection (13) of this section; or
(b) The termination payment obligations of the counterparty, or at
least one of the guarantors of the counterparty, with whom the issuer, or
the State Treasurer on behalf of a state issuer, enters the agreement are
collateralized by cash or obligations:
(A) That are rated in one of the top three rating categories
without gradation by at least two nationally recognized rating agencies
as determined by the Oregon Municipal Debt Advisory Commission or the
State Treasurer, as applicable, pursuant to subsection (13) of this
section;
(B) That are deposited with the issuer, or the State Treasurer on
behalf of a state issuer, or with an agent of the issuer;
(C) That have a market value sufficient to collateralize that
portion of the termination payment obligations of the party under the
agreement as determined at the discretion of the issuer, or the State
Treasurer on behalf of a state issuer; and
(D) That are revalued at least quarterly.
(6) An issuer, or the State Treasurer on behalf of a state issuer,
may agree, based on the issuer’s reasonable expectations when the
agreement is executed:
(a) If the borrowing bears interest at one or more variable rates,
to pay sums equal to interest at one or more fixed rates or one or more
different variable rates determined under a formula set forth in the
agreement for exchange of interest rates on an amount not to exceed the
outstanding principal amount of the borrowing when the agreement is
entered into or, if the borrowing has not been issued, the principal
amount of the borrowing reasonably anticipated to be outstanding when
payments are required to commence under the agreement in exchange for an
agreement for the issuer, or the State Treasurer on behalf of a state
issuer, to be paid sums calculated based on the same principal amount at
a variable rate determined under a formula set forth in the agreement.
(b) If the borrowing bears interest at one or more fixed rates, to
pay sums calculated based on one or more variable rates or one or more
different fixed rates determined under a formula set forth in the
agreement for exchange of interest rates on an amount not to exceed the
outstanding principal amount of the borrowing when the agreement is
entered into or, if the borrowing has not been issued, the principal
amount of the borrowing reasonably anticipated to be outstanding when
payments are required to commence under the agreement in exchange for an
agreement for the issuer, or the State Treasurer on behalf of a state
issuer, to be paid sums calculated based on the same principal amount at
a fixed rate or rates set forth in the agreement.
(7) The issuer, or the State Treasurer on behalf of a state issuer,
may not enter into an agreement under this section that:
(a) Has a term that exceeds the original term of the related
borrowing for which the agreement for exchange of interest rates is made
or, in the case of an option or a forward commitment, has a term that
exceeds the reasonably expected term of the related borrowing for which
the agreement is made; or
(b) Is for a purpose other than to manage payment, interest rate,
spread or similar exposure in connection with the related borrowing of
the issuer.
(8) The limitation on interest on an obligation in ORS 286.036, or
any other similar limitation, does not apply to an amount paid under an
agreement for exchange of interest rates entered into under this section.
(9) Upon entering into an agreement for exchange of interest rates
under this section and continuing until the agreement is satisfied,
terminated or otherwise no longer in effect, as long as no payment
default has occurred, the issuer, or the State Treasurer on behalf of a
state issuer, shall treat the amount or rate of interest on the related
borrowing as the amount or rate of interest payable after giving effect
to the agreement for the purpose of calculating:
(a) Tax levies, if any, to pay bond debt service; or
(b) Other amounts that are based upon the rate of interest of the
borrowing.
(10) Subject to covenants applicable to a related borrowing and the
limitation described in subsection (12) of this section, payments
required under the agreement by the issuer, or the State Treasurer on
behalf of a state issuer, may:
(a) Be treated as interest payments on the related borrowing;
(b) Be made from revenues or other moneys committed to or legally
available to pay the related borrowing; and
(c) Rank in an order of priority of payment relative to the payment
of the related borrowing as the issuer, or the State Treasurer on behalf
of a state issuer, determines. In connection with entering into an
agreement, the issuer, or the State Treasurer on behalf of a state
issuer, may enter into an agreement that enhances or supports the credit
of the issuer in the agreement or enhances or supports the liquidity of
the agreement.
(11) An agreement entered into under this section:
(a) Is not a debt or other obligation of the issuer for purposes of
any limitation upon the indebtedness of the issuer.
(b) Is subject only to the limitations of this section and is not
subject to other limitations applicable to the related borrowing.
(12) A termination payment required to be paid by an issuer under
an agreement for exchange of interest rates may not be paid from taxes
that the issuer may levy that are exempt from the limitations of sections
11 and 11b, Article XI of the Oregon Constitution.
(13)(a) The Oregon Municipal Debt Advisory Commission shall
promulgate administrative rules establishing required terms, conditions,
annual or periodic reporting requirements and other requirements for an
agreement for exchange of interest rates entered into by an issuer other
than a state issuer and may impose additional requirements for agreements
for exchange of interest rates that are executed by issuers other than a
state issuer, if the commission determines those requirements are
desirable to protect the interests of those issuers or citizens of the
State of Oregon.
(b) The State Treasurer may promulgate administrative rules:
(A) Establishing required terms, conditions, annual or periodic
reporting requirements and other requirements for an agreement for
exchange of interest rates entered into by a state issuer acting with the
approval of the State Treasurer under subsection (2) of this section;
(B) Requiring a party to an agreement, the party’s guarantor or the
collateral securing the obligation of a party or the party’s guarantor to
meet specific credit rating standards or other conditions; or
(C) If the State Treasurer determines that conditions and
restrictions are necessary or appropriate to protect the interests of
issuers, requiring the agreement to contain terms and conditions that are
more restrictive than the terms and conditions established in subsection
(5) of this section.
(14)(a) Before an agreement for exchange of interest rates may be
entered into under this section, the issuer, or the State Treasurer on
behalf of a state issuer, shall determine whether:
(A) The agreement for exchange of interest rates is being executed
for a permitted purpose and benefits the issuer; and
(B) The requirements of this section have been met.
(b) In addition to the determinations required under paragraph (a)
of this subsection, an issuer other than a state issuer shall also
determine whether the issuer has complied with the requirements of the
administrative rules promulgated by the Oregon Municipal Debt Advisory
Commission under subsection (13) of this section.
(15) An issuer other than a state issuer shall notify the State
Treasurer of the execution by the issuer of an agreement for exchange of
interest rates under this section. [2003 c.195 §2; 2005 c.443 §5]Note: 287.025 was added to and made a part of 287.014 to 287.029 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. Notwithstanding any other
provision of law, a municipality may negotiate the sale of its bonds, or
may sell its bonds at public competitive bid sale. When bonds are sold by
negotiated sale, the issuer may engage an expert advisor who shall
deliver to the issuer a report evaluating the terms of the proposed
negotiated sale, prior to sale of the bonds. [1975 c.642 §16; 1983 c.347
§31; 1991 c.902 §95; 2001 c.537 §2] (1)
Notwithstanding any other provision of law, whenever an issuer is
authorized to issue and sell bonds, it may issue and sell all or any
portion of the bonds in denominations of less than $5,000. The bonds may
be sold directly to members of the public at preestablished interest
rates.
(2) Bonds issued and sold directly to members of the public are to
be referred to as citizens bonds and may only be issued and sold in
compliance with rules adopted by the Oregon Municipal Debt Advisory
Commission. These rules shall reserve to the State Treasurer the right to
review and approve any or all issues of citizens bonds and may impose
requirements, as the commission considers necessary, to protect
adequately both the issuer and the purchasers of the bonds.
(3) Proceeds from the sale of citizens bonds may be used to finance
any capital project that is not in conflict with the issuer’s
comprehensive plan.
(4) Prior to selling an issue of citizens bonds, the issuer shall
make available to interested investors:
(a) A preliminary official statement meeting the requirements of
ORS 287.018, a legal opinion from a recognized bond counsel and a
comparison to taxable yields at various income levels.
(b) Application forms for the purchase of citizens bonds which
shall specify, as a minimum:
(A) The time, date and place where applications will be received,
the manner in which applications will be processed and conditions under
which the sale may be canceled if the issue is not fully subscribed
during the application period.
(B) The issue date, maturity dates and the dates on which interest
will be earned and paid.
(C) The denominations of the bonds.
(D) The approximate yield on the bonds if held to maturity and the
manner in which interest rates have been calculated.
(E) The provision made for the transfer of ownership of outstanding
bonds.
(c) Any other information which the State Treasurer may require or
the Oregon Municipal Debt Advisory Commission may by rule prescribe.
[1981 c.434 §§2,3; 1991 c.902 §96]Note: 287.029 (4) was enacted into law by the Legislative Assembly
but was not added to or made a part of ORS chapter 287 or any series
therein by legislative action. See Preface to Oregon Revised Statutes for
further explanation.(1) There is created the Oregon Municipal Debt Advisory
Commission consisting of seven members, selected as follows:
(a) The State Treasurer or designate.
(b) Three local government finance officers, appointed by the
Governor, one each among persons recommended by the Association of Oregon
Counties, the League of Oregon Cities, the Oregon School Boards
Association and one representative of special districts appointed by the
Governor.
(c) Two public members not represented in the other categories of
appointment, appointed by the Governor.
(2) The term of office of an appointed member is four years, but
appointed members serve at the pleasure of the Governor. Before the
expiration of the term of an appointed member, the Governor shall appoint
a successor to assume the duties of the member on July 1, next following.
A member is eligible for reappointment for not to exceed one additional
term. In case of a vacancy for any cause, the Governor shall make an
appointment to become effective immediately for the unexpired term.
(3) The Governor shall designate one of the appointed members as
chairperson to serve a term of one year, subject to reappointment.
(4) Appointed members of the commission shall be entitled to
compensation and expenses as provided in ORS 292.495. [1975 c.740 §1;
1979 c.195 §2] (1) The Oregon Municipal Debt
Advisory Commission shall meet:
(a) At the call of the chairperson; or
(b) At the request of:
(A) A majority of the members;
(B) The State Treasurer; or
(C) The Governor.
(2) A majority of all members of the advisory commission
constitutes a quorum for the transaction of business.
(3) All administrative and clerical assistance required by the
advisory commission shall be furnished by the office of the State
Treasurer. [1975 c.740 §§6,7; 1977 c.266 §8; 2005 c.22 §204] As used in ORS
287.034 and 287.038, “bonds” and “bonded obligations” include revenue and
general obligation bonds, special assessment bonds, tax increment bonds,
limited tax obligations, notes and certificates of participation. [1977
c.266 §4; 1991 c.194 §1] The Oregon Municipal Debt
Advisory Commission may:
(1) Provide assistance and consultation, upon request of the state
or of local government units, to assist them in the planning,
preparation, marketing and sale of new bond issues to reduce the cost of
the issuance to the issuer and to assist in protecting the issuer’s
credit.
(2) Collect, maintain and provide financial, economic and social
data on local government units pertinent to their ability to assume and
service bonded obligations.
(3) Collect, maintain and provide information on bonds sold and
outstanding and serve as a clearinghouse for all local bond issues.
(4) Maintain contact with municipal bond underwriters, credit
rating agencies, investors and others to improve the market for local
government bond issues.
(5) Prepare, advertise and distribute, upon request of issuers,
preliminary official statements required by ORS 287.018 and notices of
bond sales required by ORS 287.022.
(6) Undertake or commission studies on methods to reduce the costs
of state and local issues.
(7) Recommend changes in state law and local practices to improve
the sale and servicing of local bonds.
(8) Perform any other function required or authorized by law.
(9) Pursuant to ORS chapter 183 adopt rules necessary to carry out
its duties. [1975 c.740 §2; 1977 c.266 §9; 1999 c.44 §18; 2005 c.22 §205] In providing services to local government units under
ORS 287.034 (5), the Oregon Municipal Debt Advisory Commission may charge
fees commensurate with its direct expenses incurred in providing the
service. Amounts received under this section shall be deposited in the
General Fund for the State Treasurer, and such moneys are continuously
appropriated for payment of expenses incurred by the office of the State
Treasurer in providing such services. [1975 c.740 §4; 1981 c.582 §3; 2005
c.22 §206] The Oregon Municipal Debt
Advisory Commission shall publish:
(1) A regular newsletter describing proposed new bond issues, new
bond sales, refundings, credit rating changes and other pertinent
information to issuers, underwriters, investors and the public as such
information relates to municipal bonds.
(2) An annual report describing and evaluating the operations of
the advisory commission during the preceding year. [1975 c.740 §5; 1977
c.266 §10; 2005 c.22 §207] (1) The Oregon
Municipal Debt Advisory Commission shall require prior notice of proposed
issuance of new bonds by a public body to be made to the advisory
commission in such form and at such times as the advisory commission
specifies.
(2) As used in this section:
(a) “Bonds” means general obligation, revenue or tax increment
bonds, certificates of participation, special assessment bonds, limited
tax obligations or notes of a public body.
(b) “Public body” means the governing body or authorized board,
commission or person representing any political subdivision or municipal,
quasi-municipal or public corporation in this state authorized by law to
issue bonds. [1977 c.266 §2; 1981 c.94 §19; 1981 c.661 §8; 1991 c.194 §2]To assist the Oregon Municipal Debt Advisory Commission in
carrying out its duties, the finance officer of each local government
unit authorized by law to issue bonds at least once every biennium, at
dates established by the commission, shall verify with the commission the
commission’s information on the unit’s bonded obligations. [1977 c.266
§3; 1981 c.526 §2]In preparing a preliminary official statement
under ORS 287.018, the Oregon Municipal Debt Advisory Commission shall
use the most recent and accurate information that has been compiled and
is available to it. In no event shall a preliminary official statement
prepared by the commission be construed as a contract or agreement
between this state and the purchasers or holders of the bonds issued with
it. Neither this state nor the commission or its staff may be held
liable, in the absence of actual fraud, for damages in any civil action
or suit concerning the preparation and release of a preliminary official
statement under ORS 287.018 and this section. [1977 c.266 §5; 2005 c.22
§208](1) Notwithstanding any other provision of law,
including any debt limitation contained in a statute or city charter, a
city with a population of 85,000 or more according to the most recent
federal decennial census may:
(a) Enter into credit agreements in amounts not greater than the
maximum estimated insurable liabilities or incurred losses of the city
during the period of time the credit agreement is outstanding.
(b) After it has sustained incurred losses, issue limited tax
bonds, as defined in ORS 288.150, in amounts not greater than incurred
losses plus costs of issuing the bonds.
(2) A city meeting the requirements of subsection (1) of this
section, through its governing body and after public hearings held after
due notice, shall adopt a policy setting forth the conditions for the use
of the credit agreement and the limited tax bonds, prior to using these
financial instruments as set forth in this section. The conditions set
forth in the policy shall include, but are not limited to, an analysis
and annual review of the city’s exposure to catastrophic loss, its
ability to fund large losses, and the availability, pricing and coverage
of commercial insurance.
(3) For purposes of this section:
(a) “Credit agreement” means a letter of credit, line of credit or
similar agreement in which a financial institution agrees to pay all or a
portion of the incurred losses or insurable liabilities of a city, and
the city agrees to repay the amounts paid by the financial institution
over time, with or without interest.
(b) “Incurred loss” means an operational loss after the event has
occurred.
(c) “Insurable liabilities” means any claim or judgment against the
city for personal injury, property damage or tortious conduct.
(d) “Operational loss” means an unforeseen act or event which
causes personal injury or property damage. [1987 c.434 §2; 1995 c.333 §28]COUNTY BONDS As used in ORS
287.052 to 287.074:
(1) “Governing body” means the county court or other legislative
body of a county.
(2) “Bonds” means general obligation bonds issued pursuant to ORS
287.052 to 287.074. [1957 c.721 §1; 1983 c.347 §12]
(1) Except when a charter provides a lower limit upon the issuance of
limited tax bonded indebtedness, a county may not have at any one time
outstanding limited tax bonded indebtedness in a principal amount that
exceeds one percent of the real market value of all taxable property
within the county, computed in accordance with ORS 308.207, after
deducting from the outstanding principal amount of the indebtedness the
total amount of cash funds and sinking funds that are available for
payment of the principal.
(2) The limitation on outstanding limited tax bonded indebtedness
in this section does not apply to limited tax bonds issued under ORS
238.692 to 238.698.
(3) As used in this section:
(a)(A) “Bonded indebtedness” means any formally executed written
agreement representing a promise by a county to pay to another a
specified sum of money at a specified date or dates at least one year in
the future. “Bonded indebtedness” includes any lease, lease purchase
agreement, contract or financing agreement authorized by ORS 271.390.
(B) “Bonded indebtedness” does not include a general obligation
bond, as defined in ORS 288.150, or any obligation for which the holder’s
payment recourse in any eventuality is only to a specified fund from
which payment of principal, premium, if any, and interest on the
obligation must be paid.
(b) “Limited tax bonded indebtedness” means a bond or other
obligation for which the issuer pledges its full faith and credit and
taxing power, as described in ORS 288.162, and that is payable from any
taxes that the issuer may levy within the limitations of section 11b,
Article XI of the Oregon Constitution, and either within or outside the
limitations of section 11, Article XI of the Oregon Constitution.
“Limited tax bonded indebtedness” includes any bonded indebtedness
incurred by a county that, by the express terms of such bonded
indebtedness:
(A) Requires the county to budget and appropriate in each fiscal
year moneys sufficient to pay the principal, premium, if any, and
interest on the bonded indebtedness due during the fiscal year.
(B) Allows the holders of the bonded indebtedness, in addition to
any other available remedies, to bring suit to compel the county to
appropriate funds to pay the principal, premium, if any, and interest on
the bonded indebtedness due during a fiscal year when the county
governing body fails or refuses to appropriate moneys for such purpose in
the fiscal year. [1999 c.559 §9; 2005 c.443 §6]Note: 287.053 was added to and made a part of ORS chapter 287 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) For the purpose of carrying into effect all or
any of the powers granted by law to counties, the governing body of a
county, when authorized by the electors at any general election or
special election called for that purpose pursuant to ORS 287.052 to
287.074 and within the limitations set forth in ORS 287.052 to 287.074,
may borrow money and issue and sell general obligation bonds of the
county.
(2) The aggregate amount of general obligation bonded indebtedness
of counties shall not at any time exceed two percent of the real market
value of all taxable property in the county, computed in accordance with
ORS 308.207. [1957 c.721 §2; 1963 c.9 §14; 1983 c.347 §13; 1991 c.459
§374] (1) When the governing body of a county
decides to submit the question of issuing bonds to the electors at an
election, it shall conduct a public hearing on the proposed bond issue.
The hearing shall be held after a notice to the public published once
each week for two successive weeks in at least one newspaper published in
the county and of general circulation throughout the county. If there is
no such newspaper, the notice shall be published in the newspaper or
newspapers which in the judgment of the governing body will afford the
best notice. The governing body shall designate the newspaper or
newspapers in which the notice will be published.
(2) The notice shall set forth the date, hour and place of the
hearing and the information required by ORS 287.056 (1). The notice shall
state that all interested persons may attend and shall be given a
reasonable opportunity to be heard. [1971 c.111 §2; 1981 c.173 §42; 1983
c.350 §134] (1) After the public
hearing required by ORS 287.055, if the governing body decides to proceed
with the proposal it shall submit the question of issuing and selling
bonds at an election on a date specified in ORS 203.085. The order
calling the election shall set forth:
(a) The use to which the proceeds of the bonds are to be put.
(b) That the bonds shall be general obligation bonds of the county.
(c) The amount of bonds proposed to be issued.
(d) The length of time, not to exceed 30 years, during which the
bonds shall mature.
(2) The governing body shall file with the county clerk a notice of
an election called under this section not later than the 61st day before
the election.
(3) The statement summarizing the measure and its major effect in
the ballot title shall include the information required in subsection (1)
of this section. [1957 c.721 §3; 1971 c.111 §3; 1981 c.94 §20; 1981 c.173
§43; 1983 c.347 §14; 1983 c.350 §135; 1987 c.707 §22; 1989 c.923 §19;
1991 c.71 §11; 1993 c.713 §60; 1995 c.79 §101; 1995 c.534 §14a] At any bond election
under ORS 287.052 to 287.074, the governing body may submit to the
electors as separate questions, the issuance of bonds for two or more
purposes. [1957 c.721 §4] ORS chapters 246 to 260 govern the
conduct of all elections called under ORS 287.052 to 287.074. [1957 c.721
§7; 1981 c.173 §45; 1983 c.350 §136] If at a general
election or a special election called for that purpose a majority of the
electors of the county voting upon the question vote in favor of issuing
the bonds, the governing body shall enter an order in its journal
declaring that fact. This order shall be conclusive as to the regularity
of all proceedings in reference to the election. [1957 c.721 §8] All bonds issued under the authority of
ORS 287.052 to 287.074 shall be issued in accordance with the provisions
of ORS 288.515 to 288.560. [1957 c.721 §9; 1967 c.197 §1; 1983 c.347 §16] All legally authorized and issued general
obligation bonds or revenue bonds shall be advertised and sold in the
manner prescribed in ORS 287.014 to 287.022. [1975 c.642 §19 (enacted in
lieu of 287.068)] The proceeds of the
sale of the bonds shall be paid to the county treasurer and shall be
placed in a special fund which shall be used only for the particular
purpose or purposes for which the bond proceeds are to be used as
specified in the order calling for an election upon the question of
issuance of the bonds and for no other purpose. However, the proceeds
from the sale of the bonds may be used for the payment of principal and
interest of such bonds or for the redemption or purchase of these bonds.
[1957 c.721 §11; 1983 c.347 §17] The
governing body shall ascertain and levy annually, in addition to all
other taxes, a direct annual ad valorem tax on all the taxable property
in the county sufficient to pay the interest accruing and the principal
maturing on the bonds promptly when and as they become due. [1957 c.721
§12] The governing body may, without
authorization from the electors and pursuant to the provisions of ORS
287.202 to 287.220, issue refunding bonds for the purpose of refunding
outstanding bonds issued under ORS 287.052 to 287.074. [1957 c.721 §13] For limited
tax bonded indebtedness issued under ORS 287.052 to 287.074 prior to
August 9, 2001, to finance pension liabilities, the limited tax bonded
indebtedness:
(1) Is subject to the limitation on indebtedness in ORS 238.694.
(2) Is not subject to the limitation on indebtedness in ORS
287.054. [2005 c.443 §33]Note: 287.075 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 287 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.REFINANCING OF OBLIGATIONS OF LOCAL GOVERNMENTSUpon the request
of any civil subdivision, the State Treasurer, in the discretion thereof,
may cooperate with the subdivision in refinancing or refunding the
indebtedness of the subdivision. The State Treasurer may make
recommendations to such subdivisions as to investments of their sinking
funds and as to the refunding of their indebtedness for the purpose of
enabling them to liquidate their obligations over a period of time and of
reducing their tax levies. [Amended by 1989 c.182 §4](1) The State Treasurer may:
(a) Accept deposits of defaulted bonds of municipal corporations in
Oregon.
(b) Exchange for such bonds with the respective bondholders,
refunding bonds of such municipal corporations to be delivered pursuant
to agreements made with the respective bondholders.
(2) All postage, insurance, safekeeping and clerical expense
incurred by the State Treasurer in the exchange of such bonds shall be
borne by the holders of such bonds and by the municipal corporation whose
bonds are to be exchanged. [Amended by 1989 c.182 §5]The State Treasurer may:
(1) Act as intermediary between the municipal corporations referred
to in ORS 287.142 and the holders of their bonds.
(2) Effect compromises or adjustments between such corporations and
the holders of their bonds.
(3) Assist such municipal corporations in the funding or refunding
of their matured bonded obligations.The omission from the Oregon Revised Statutes of O.C.L.A. 97-201 to
97-207 is not intended as a repeal of the omitted statutes in so far as
they apply to funding and refunding bonds issued pursuant thereto.COUNTY REFUNDING BONDS As used in ORS
287.202 to 287.220, “court or board” means the county court or the board
of county commissioners.The court or board in any county may issue and sell or exchange
county refunding bonds for the purpose of paying, redeeming or retiring
any or all outstanding lawfully issued bonds of such county when:
(1) The bonds have matured but have not been paid and canceled;
(2) The bonds are about to mature and become payable;
(3) The bonds are redeemable at the option of the county; or
(4) The holders of all or any part of any issue of the bonds of the
county are willing to surrender such bonds in exchange for refunding
bonds, whether or not the bonds to be surrendered have matured or are
about to mature or become payable. [Amended by 2005 c.22 §209] Notice of intended
redemption of callable or optional bonds prior to the redeeming and the
refunding thereof under authority of ORS 287.204 shall be given in the
manner specified in the bonds, as provided in ORS 288.520. Newspaper
publication of notice of redemption is not required for bonds that are in
registered form. [Amended by 1997 c.171 §10] Refunding bonds
issued under authority of ORS 287.204 shall not exceed in the aggregate
the par amount of the bonds to be paid, redeemed or replaced thereby,
after deducting sinking funds or other funds applicable to the payment of
the principal thereof. If the deduction of the sinking fund produces an
uneven sum which, if offset exactly by refunding bonds, would necessitate
the issuance of odd bonds in denominations of less than $100, the total
issue of the refunding bonds shall be in such next larger sum as will
permit issuance of bonds in denominations of $100 each or multiples
thereof exactly and the balance thereupon remaining in the sinking fund
shall be transferred to the sinking fund for the refunding issue.The bonds issued under authority of ORS 287.204 shall be
designated refunding bonds and shall be of the same class and character
as the bonds refunded thereby and shall constitute a charge upon the same
kinds of revenues or funds as were applicable to the payment of the
principal of and the interest on the bonds so refunded.The court or board shall levy an annual tax or provide for
setting aside annually other funds with which to pay the interest and to
meet the serial installments of the principal of the refunding bonds as
they become due and payable. The court or
board may call refunding bonds issued with optional dates under the
authority of ORS 287.218 either for the purpose of retiring the bonds or
of redeeming them with new serial refunding bonds of the class and
character authorized by ORS 287.202 to 287.220, which refunding bonds
shall bear interest at a rate not to exceed the rate paid on the bonds to
be refunded. The refunding bonds
issued pursuant to ORS 287.202 to 287.220 shall not be considered to be
within any limitation of bonded indebtedness imposed by law or by the
Constitution of this state until:
(1) The refunding bonds have been exchanged for the bonds they were
issued to refund; or
(2) The proceeds of sale of the refunding bonds have been applied
in payment of the refunded bonds.(1) All refunding bonds issued by a county pursuant
to ORS 287.202 to 287.220 shall be in serial form with definite maturity
dates and shall mature in annual or semiannual installments, but may be
issued with the option to call or redeem the bonds in numerical order on
a prior date or dates, pursuant to publication of notice in one issue of
a newspaper printed and published in such county.
(2) The refunding bonds shall bear interest at a rate determined by
the governing body of the county, payable semiannually. The first
installment of principal of each issue of the bonds shall become due and
payable not later than two years, and the last installment thereof not
later than 20 years, from the date of issue of the bonds. The
installments or principal of the bonds shall either be equal or
substantially equal in amount, or the combined installments of principal
and interest due in any year shall be, as nearly as practicable, in such
sums as will permit of a substantially uniform annual tax levy for the
retirement of the principal of and the payment of the interest on the
bonds as they respectively become due. [Amended by 1981 c.94 §21] (1) The bonds issued under ORS
287.202 to 287.220 shall be advertised and sold in the manner prescribed
in ORS 287.014 to 287.022.
(2) If no bids for the bonds are received or the bids therefor are
unsatisfactory, the court or board may exchange the refunding bonds for
the outstanding bonds, pursuant to agreements entered into by the court
or board and the holders of the outstanding bonds. The refunding bonds
shall bear interest at a rate determined by the court or board and mature
serially, as provided in ORS 287.218, on such dates as shall be agreed
upon between the court or board and the holders of the bonds to be
refunded. [Amended by 1975 c.642 §20; 1981 c.94 §22]
CITY REFUNDING BONDS(1) The governing body of
any incorporated city may issue and sell or exchange refunding bonds for
the purpose of paying, redeeming or retiring any or all outstanding
lawfully issued bonds of such city, including bonds issued pursuant to
applications to pay assessments in installments, when:
(a) The bonds have matured but have not been paid or canceled; or
(b) The bonds are about to mature and become payable; or
(c) The bonds are redeemable at the option of the city; or
(d) The holders of all or any part of any issue of bonds of the
city are willing to surrender such bonds, whether or not the bonds to be
surrendered have matured or are about to mature or become payable.
(2) Refunding bonds issued under authority of subsection (1) of
this section shall not exceed in the aggregate the par amount of the
bonds to be called, paid, redeemed or replaced, less the amount in the
sinking fund, if any, applicable thereto.
(3) Refunding bonds shall not be exchanged for outstanding bonds
under authority of subsection (1) of this section until bids for the
refunding bonds have been solicited in the manner prescribed by ORS
287.014 to 287.022. Notice of intended
redemption of callable or optional bonds prior to the redeeming and the
refunding thereof under authority of ORS 287.252 shall be given in the
manner specified in the bonds, as provided in ORS 288.520. Newspaper
publication of notice of redemption is not required for bonds that are in
registered form. [Amended by 1997 c.171 §11](1) Subject to
subsections (4) and (5) of this section, each issue of refunding bonds
issued under authority of ORS 287.252 shall be in serial form with
definite maturities and shall mature in annual or semiannual
installments, but may be issued with the option to call or redeem the
bonds in numerical order on a prior date or dates indicated therein,
pursuant to notice given in the manner specified in the bonds.
(2) The refunding bonds interest rate shall be determined by the
governing body of the city, payable semiannually.
(3) Subject to subsection (5) of this section, the first
installment of principal shall become due and payable not later than five
years, and the last installment thereof not later than 20 years, from the
date of issue of the bonds. The installments of principal shall either be
equal or substantially equal in amount, or the combined installments of
principal and interest due in any year shall be as nearly as practicable
in such sums as will permit of an equal annual tax levy for retirement of
the principal of and payment of the interest on the bonds.
(4) The governing body of any incorporated city having a population
in excess of 100,000 may, at its election, issue the refunding bonds with
definite or straight maturities, not exceeding 20 years, but callable on
or after three years from the date of the issuance thereof, if the
governing body so elects.
(5) With written approval of the State Treasurer, cities in default
in payment of either principal of or interest on their bonds, or both,
and cities having bonded and warrant indebtedness exceeding 6-1/4 percent
of the real market value of their taxable property, may issue long-term
refunding bonds with maturities, either serial or straight, not exceeding
40 years, without deduction of sinking funds applicable to the bonds to
be refunded, if the holders thereof so agree. The refunding bonds, the
issuance of which is so approved, may contain optional dates of
redemption if the governing body of the city so elects.
(6) The debt limitations imposed by law or charter shall not affect
the right of any city to issue refunding bonds pursuant to ORS 287.252.
[Amended by 1967 c.293 §30; 1981 c.94 §23; 1991 c.459 §377; 1997 c.171
§12] Refunding
bonds issued under authority of ORS 287.252 shall be of the same class
and character as the bonds refunded thereby and shall constitute a charge
upon the same character of revenues, assessments, liens or other assets
that were applicable to the payment of the bonds so refunded.All bonds issued by any city under authority
of ORS 287.252 shall be issued pursuant to an ordinance duly adopted by
the governing body of the city. The ordinance shall be adopted and take
effect in the same manner as other ordinances of the city take effect.
The ordinance shall set forth the date, purpose of issue, interest rate,
maturity date or dates, and the amount of the bonds to be refunded after
application of such sinking or other funds to the payment thereof as
appertain thereto. The ordinance shall also set forth the date, interest
rate, and the maturity dates of the refunding issue, and shall provide
for an annual tax levy or other revenues with which to pay the interest
on and the principal of the refunding bonds as they become due and
payable. The word
“bonds” as used in ORS 287.252 to 287.264 includes utility certificates.
Such certificates may be refunded in the like manner as bonds are
refunded under authority of ORS 287.252, except that the ordinance
providing for refunding utility certificates need not provide for an
annual tax levy to pay the interest on and the principal of such
certificates.The power granted by ORS 287.252 to 287.264 is
self-operating in each incorporated city without the further necessity of
enacting charter provisions incorporating the terms of ORS 287.252 to
287.264 or of submitting the question of refunding at an election of the
electors of the city. Each incorporated city shall have authority, by and
through its council, to provide by ordinance such rules and regulations
as may be needed for carrying out the terms of ORS 287.252 to 287.264.WARRANTS AND CHECKS; INTEREST; UNCLAIMED WARRANTS AND CHECKS; MASTER
WARRANTS
All warrants for payment of money issued by cities and other
municipalities that are not paid upon presentation and so indorsed shall
draw interest at the legal rate after such indorsements but
municipalities may by proper resolution fix the rate at less than the
legal rate and may make such interest payable semiannually.(1) The county fiscal officer shall
prepare a report of all warrants and checks issued more than two years
prior to July 1 of that year which have not been paid, pursuant to ORS
98.352.
(2) The lawful owner of any warrant or check included in any list
referred to in subsection (1) of this section, not presented to the
county treasurer for payment and not paid, thereafter may file a claim
with the Department of State Lands in the manner provided by ORS 98.392
and 98.396. [Amended by 1959 c.438 §1; 1993 c.694 §29] As used in ORS
287.482 to 287.488:
(1) “County fiscal officer” means:
(a) The county accountant in counties where such office is
established by law.
(b) The county clerk in counties not having a county accountant.
(2) “Master warrant” means a warrant or order issued and drawn
pursuant to ORS 287.486. [1955 c.321 §1; 1983 c.310 §16]Whenever the county fiscal officer audits and approves a claim
and issues a warrant therefor and at the same time or subsequently
ascertains that the county treasurer has not sufficient moneys in the
particular fund of the county from which the claim so approved and
allowed is payable and that the warrant as issued against that fund for
the payment of the claim would be indorsed “Not Paid for Want of Funds,”
the county fiscal officer may, with approval by resolution of the county
court or the board of county commissioners, issue a master warrant to any
person for the purpose of obtaining money to pay such claim. The money
shall be obtained only in the manner provided in ORS 287.486. [1955 c.321
§2] (1) The county fiscal officer shall draw a
master warrant in the amount of one or more claims referred to in ORS
287.484, payable to any person who is willing to accept the master
warrant, and such person shall, upon delivery of the master warrant duly
indorsed “Not Paid for Want of Funds,” pay to the county treasurer the
full amount for which the master warrant is drawn.
(2) The amount paid under subsection (1) of this section shall
constitute a special fund to be used toward the payment of warrants
issued under ORS 287.484 by the county fiscal officer in payment of
claims audited and approved and included in the amount of any master
warrant issued to the person advancing such moneys. [1955 c.321 §3]No master warrant shall be issued under ORS 287.482 to
287.488 unless taxes have been levied for the payment of all claims
included in the master warrant and such taxes are in the process of being
collected at the time of the issuance of the master warrant. [1955 c.321
§4]
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