As used in this chapter, unless the context
requires otherwise:
(1) “Authority” means the Oregon Facilities Authority created by
this chapter.
(2) “Bonds” or “revenue bonds” means revenue bonds, notes, bond
anticipation notes and any other evidence of indebtedness of the
authority issued under the provisions of this chapter, including revenue
refunding bonds, notwithstanding that the same may be secured by any
federally guaranteed security, whether acquired by the authority or by a
participating institution, or by mortgage, the full faith and credit or
by any other lawfully pledged security of one or more participating
institutions.
(3) “Cost” means the cost of:
(a) Construction, acquisition, alteration, enlargement,
reconstruction and remodeling of a project, including all lands,
structures, real or personal property, rights, rights of way, air rights,
franchises, easements and interests acquired or used for or in connection
with a project;
(b) Demolishing or removing any buildings or structures on land as
acquired, including the cost of acquiring any lands to which such
buildings or structures may be moved;
(c) All machinery and equipment;
(d) Financing charges, interest prior to, during and for a period
after completion of construction and acquisition, reasonably required
amounts to make the project operational, provisions for reserves for
principal and interest and for extensions, enlargements, additions,
replacements, renovations and improvements;
(e) Architectural, actuarial engineering, financial and legal
services, plans specifications, studies, surveys, estimates of costs and
of revenues, administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the
project; and
(f) Such other expenses as may be necessary or incident to a
project, the financing of such project and the placing of the project in
operation.
(4) “Cultural institution” means a public or nonprofit institution
within this state which engages in the cultural, intellectual,
scientific, environmental, educational or artistic enrichment of the
people of this state. “Cultural institution” includes, without
limitation, aquaria, botanical societies, historical societies, land
conservation organizations, libraries, museums, performing arts
associations or societies, scientific societies, wildlife conservation
organizations and zoological societies. “Cultural institution” does not
mean any school or any institution primarily engaged in religious or
sectarian activities.
(5) “Health care institution” means a public or nonprofit
organization that provides health care and related services, including
but not limited to the provision of inpatient and outpatient care,
diagnostic or therapeutic services, laboratory services, medicinal drugs,
nursing care, assisted living, elderly care and housing, including
retirement communities, and equipment used or useful for the provision of
health care and related services.
(6) “Housing institution” means a public or nonprofit organization
that provides decent, affordable housing to low income persons.
(7) “Institution” means an institution for housing, higher
education or prekindergarten through grade 12 education, a school for the
handicapped, a health care institution or a cultural institution within
this state.
(8) “Institution for higher education” means a public or nonprofit
educational institution within this state authorized by law to provide a
program of education beyond the high school level, including community
colleges and associate degree granting institutions. “Institution for
higher education” does not mean any school or any institution primarily
engaged in religious or sectarian activities.
(9) “Institution for prekindergarten through grade 12 education”
means an Oregon prekindergarten as defined in ORS 329.170, a public
educational institution within this state authorized by law to provide a
program of education for kindergarten through grade 12 or a nonprofit
educational institution within this state registered as a private school
under ORS 345.545 that provides a program of education for
prekindergarten through grade 12. “Institution for prekindergarten
through grade 12 education” does not mean a school or institution
primarily engaged in religious or sectarian activities.
(10) “Nonprofit” means an institution, organization or entity
exempt from taxation under section 501(c)(3) of the Internal Revenue Code
as amended and in effect on the effective date of this chapter.
(11) “Participating institution” means a participating institution
for health care, housing, higher education, a participating school for
the handicapped or a participating cultural institution.
(12)(a) “Project” means the financing or refinancing, including
without limitation, acquisition, construction, enlargement, remodeling,
renovation, improvement, furnishing or equipping, of the following:
(A) In the case of a participating institution that is an
institution for higher education, an institution for prekindergarten
through grade 12 education or a school for the handicapped, a structure
or structures suitable for use as a dormitory or other multiunit housing
facility for students, faculty, officers or employees, or a dining hall,
student union, administration building, academic building, library,
laboratory, research facility, classroom, athletic facility, health care
facility, maintenance, storage or utility facility and other structures
or facilities related to any of the structures required or used for the
instruction of students, the conducting of research or the operation of
an institution for higher education, an institution for prekindergarten
through grade 12 education or a school for the handicapped. It shall also
include landscaping, site preparation, furniture, equipment and machinery
and other similar items necessary or convenient for the operation of a
particular facility or structure in the manner for which its use is
intended and shall further include any furnishings, equipment, machinery
and other similar items necessary or convenient for the operation of an
institution of higher education, an institution for prekindergarten
through grade 12 education or a school for the handicapped, whether or
not such items are related to a particular facility or structure financed
under this chapter;
(B) In the case of a participating institution that is a housing
institution, a structure or structures suitable for use as housing,
including residences or multiunit housing facilities, administration
buildings, maintenance, storage or utility facilities and other
structures or facilities related to any of the structures required or
used for the operation of the housing, including parking and other
facilities or structures essential or convenient for the orderly
provision of such housing. It shall also include landscaping, site
preparation, furniture, equipment and machinery and other similar items
necessary or convenient for the particular housing facility or structure
in the manner for which its use is intended and shall further include any
furnishings, equipment, machinery and other similar items necessary or
convenient for the provision of housing, whether or not such items are
related to a particular facility or structure financed under this chapter;
(C) In the case of a participating institution that is a cultural
institution, a structure or structures suitable for its purposes, whether
or not to be used to provide educational services, or research resources,
including use as or in connection with an administrative facility,
aquarium, assembly hall, auditorium, botanical garden, exhibition hall,
gallery, greenhouse, library, museum, scientific laboratory, theater or
zoological facility. It shall also include supporting facilities,
landscaping, site preparation, furniture, equipment, machinery and other
similar items necessary or convenient for the operation of a cultural
institution, whether or not such items are related to a particular
facility or structure financed under this chapter, including books, works
of art or other items for display or exhibition; and
(D) In the case of a participating institution that is a health
care institution, a structure or structures suitable for its purposes,
including hospital facilities, inpatient and outpatient clinics, doctors’
offices, administration buildings, parking, maintenance, storage or
utility facilities, nursing care or assisted living facilities, elderly
care and housing facilities, including retirement communities, and other
structures or facilities related to any of the structures required or
used for the operation of the health care institution, including other
facilities or structures essential or convenient for the orderly
provision of such health care. It shall also include landscaping, site
preparation, furniture, equipment and machinery and other similar items
necessary or convenient for the particular health care facility or
structure in the manner for which its use is intended and shall further
include any working capital, furnishings, equipment, machinery and other
similar items necessary or convenient for the provision of health care,
whether or not such items are related to a particular facility or
structure financed under this chapter, including borrowings needed to
alleviate interim cash flow deficits of a health care institution.
(b) “Project” also includes any combination of one or more of the
projects undertaken jointly by one or more participating institutions
with each other or with other parties.
(c) “Project” does not include any facility used or to be used for
sectarian instruction or as a place of religious worship or any facility
which is used or to be used primarily in connection with any part of the
program of a school or department of divinity for any religious
denomination.
(13) “School for the handicapped” means a public or nonprofit
primary, secondary or post-secondary school within this state which
serves students at least 70 percent of whom are handicapped as determined
by one or more appropriate education, rehabilitation, medical or mental
health authorities; is accredited by a recognized accrediting body; and
is determined by the authority to be a major resource of benefit to the
handicapped. “School for the handicapped” does not mean any school or any
institution primarily engaged in religious or sectarian activities. [1989
c.820 §2; 1991 c.408 §1; 2001 c.270 §1] (1) The Legislative Assembly finds that
by use of the powers and procedures described in this chapter for the
assembling and financing of lands for housing, educational and cultural
uses and for the construction and financing of facilities for such uses,
financed through the issuance of revenue bonds secured solely by the
properties and rentals thus made available, the state may be able to
effect substantially the provisions of decent, affordable housing, the
achievement of higher levels of learning and development of the
intellectual capacities of citizens and expansion of the authorized
services and resources for the intellectual and artistic enrichment of
citizens.
(2) It is the purpose of this chapter to authorize the exercise of
powers granted by this chapter by this state in addition to and not in
lieu of any other powers it may possess. [1989 c.820 §1]OREGON FACILITIES AUTHORITY
(1) There is created a body politic and corporate to be known as the
Oregon Facilities Authority. The authority is constituted a public
instrumentality, and the exercise by the authority of the powers
conferred by this chapter shall be considered and held to be the
performance of an essential public function.
(2) The authority shall consist of five members who shall be
residents of this state, not more than three of whom shall be members of
the same political party. The State Treasurer shall appoint the members.
At least one of the members shall be a person knowledgeable in the field
of state and municipal finance. At least one of the members shall be a
person knowledgeable in the building construction field.
(3) Upon the expiration of the term of any member, a successor
shall be appointed for a term of four years. The State Treasurer shall
fill any vacancy for the remainder of the unexpired term. [1989 c.820 §3;
1991 c.408 §2; 2001 c.261 §1] The undertaking of
any eligible project must be requested by official action of the
participating institution taken at a regular or duly called special
meeting thereof by the affirmative vote of a majority of the members of
the institution’s board of directors. [1989 c.820 §5] In addition to
any other powers granted by law, in relation to an eligible project, the
state, acting through the State Treasurer or a designee thereof, may:
(1) Enter into agreements to finance the costs of an eligible
project by lending the proceeds of bonds authorized by this chapter to
any participating institution under such terms and with such security as
the state may approve.
(2) Lease and sublease eligible projects to any participating
institution in such manner that rents to be charged for the use of such
projects shall be established, and revised from time to time as
necessary, so as to produce income and revenue sufficient to provide for
the prompt payment of principal of and interest on all bonds issued under
this section when due, and the lease shall also provide that the lessee
shall be required to pay all expenses of the operation and maintenance of
the project including, but without limitation, adequate insurance thereon
and insurance against all liability for injury to persons or property
arising from the operation thereof, and all taxes and special assessments
levied upon or with respect to the leased premises and payable during the
term of the lease, during which term ad valorem taxes in the same amount
and to the same extent as though the lessee were the owner of all real
and personal property comprising the project.
(3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible projects
owned or to be acquired by the state, and define and segregate such
revenues or provide for the payment thereof to a trustee.
(4) Mortgage or otherwise encumber eligible projects in favor of
the holders of such bonds or a trustee therefor. However, in creating any
such mortgages or encumbrances, the state cannot obligate itself except
with respect to the project.
(5) Make all contracts, execute all instruments, and do all things
necessary or convenient in the exercise of the powers granted by this
section, or in the performance of its covenants or duties, or in order to
secure the payment of its bonds, including a contract entered into prior
to the construction, acquisition and installation of the eligible project
authorizing the lessee, subject to such terms and conditions as the state
shall find necessary or desirable and proper, to provide for the
construction, acquisition and installation of the buildings, improvements
and equipment to be included in the project by any means available to the
lessee and in the manner determined by the lessee.
(6) Enter into and perform such contracts and agreements with
participating institutions as the respective boards of directors may
consider proper and feasible for or concerning the planning,
construction, installation, lease, or other acquisition, and the
financing of such facilities, which contracts and agreements may
establish a body as may be considered proper for the supervision and
general management of the facilities of the eligible project.
(7) Accept from any authorized agency of the federal government
loans or grants for the planning, construction, acquisition, leasing, or
other provision of any eligible project, and enter into agreements with
such agency respecting such loans or grants. [1989 c.820 §6; 2005 c.22
§212] In carrying out its duties under this chapter,
the Oregon Facilities Authority, acting for and in behalf of the state as
its duly authorized agency, may:
(1) Acquire, construct and hold in whole or in part any lands,
buildings, easements, water and air rights, improvements to lands and
buildings and capital equipment to be located permanently or used
exclusively on such lands or in such buildings, which are considered
necessary in connection with an eligible project to be situated within
this state, and construct, reconstruct, improve, better and extend such
projects, and enter into contracts therefor; and
(2) Sell and convey all properties acquired in connection with
eligible projects, including without limitation the sale and conveyance
thereof subject to any mortgage and the sale and conveyance thereof under
an option granted to the lessee of the eligible project, for such price,
and at such time as the state may determine. However, no sale or
conveyance of such properties shall ever be made in such manner as to
impair the rights of interests of the holder, or holders, or any bonds
issued under the authority of this chapter. [1989 c.820 §7; 1991 c.408 §3]Except as provided in ORS 289.115 (2), the state shall not have
power to operate any eligible project as a business or in any manner
whatsoever. Nothing in this chapter authorizes the state to expend any
funds on any eligible project, other than the revenues of such projects,
or the proceeds of revenue bonds issued under this chapter, or other
funds granted to the state for the purposes of an eligible project. [1989
c.820 §8] (1) The Oregon Facilities Authority shall
adopt by rule standards by which to determine the eligibility of projects
for bond financing pursuant to this chapter. In determining such
standards, the authority shall consider all relevant data. The standards
of the authority shall provide that projects are approved in accordance
with criteria reflecting the benefits to the state. Such criteria shall
include, but need not be limited to, the following:
(a) Supporting projects that increase the number of decent,
affordable housing units in this state.
(b) Expanding the educational resources in this state.
(c) Expanding the cultural resources in this state.
(2) Upon determining a project as eligible, the authority shall
forward the application to the State Treasurer, who shall determine
whether to issue the revenue bonds.
(3) The authority may treat as a single eligible project for
bonding purposes any number of projects determined to be eligible
projects.
(4) The authority shall collect the fees set forth in subsection
(5) of this section from an applicant that seeks to have a project
declared eligible for financing. The fee may be collected even though the
project has not been determined to be eligible for financing. Moneys
collected under this subsection are continuously appropriated to the
authority for the purpose of administration or funding of any program it
is authorized to operate.
(5) The fees described in subsection (4) of this section are as
follows:
(a) $250 for an application of not to exceed $500,000.
(b) $500 for an application of more than $500,000.
(c) A closing fee of not to exceed one-half of one percent of the
total bond issue for the project, as determined by the authority.
(6) The fees received under subsection (5) of this section shall be
credited to and deposited in the Oregon Facilities Authority Account
established under ORS 289.130. [1989 c.820 §4; 1991 c.408 §4] The Oregon Facilities
Authority Account is created separate and distinct from the General Fund.
The account is an investment account for purposes of ORS 293.701 to
293.820. Interest on the account shall be credited to and deposited in
the account. The account is continuously appropriated to the Oregon
Facilities Authority and may be used to meet administrative expenses of
the authority. [1989 c.820 §4a; 1991 c.408 §5; 2001 c.261 §2]BONDS (1) If
the State Treasurer determines that revenue bonds should be issued:
(a) The State Treasurer may authorize and issue in the name of the
State of Oregon revenue bonds secured by revenues from eligible projects
to finance or refinance in whole or part the cost of acquisition,
purchase, construction, reconstruction, installations improvement,
betterment or extension of projects. The bonds shall be identified by
project and issued in the manner prescribed by ORS 286.010, 286.020 and
286.105 to 286.135, and refunding bonds may be issued to refinance such
revenue bonds.
(b) The State Treasurer shall designate the underwriter, trustee
and bond counsel, if any, and enter into appropriate agreements with each
to carry out the provisions of this chapter. An agreement with bond
counsel designated by the State Treasurer under this section is subject
to the provisions related to services provided by bond counsel under ORS
288.523, and the appointment must be approved by the Attorney General as
required by ORS 288.523.
(2) Any trustee designated by the State Treasurer to carry out all
or part of the powers specified in ORS 289.110 must agree to furnish
financial statements and audit reports for each bond issue.
(3) The State Treasurer shall be the applicable elected
representative for purposes of approving the issuance of revenue bonds
under this chapter as to the extent such approval is required under
section 147(f) of the Internal Revenue Code of 1986, as amended, or any
successor provision thereto.
(4) The State Treasurer shall collect data from the Oregon
Facilities Authority regarding the amount and nature of bonded
indebtedness in Oregon health care institutions financed through the
authority. [1989 c.820 §9; 1991 c.408 §6; 1995 c.727 §14; 2001 c.536 §8] (1) In determining whether to
issue revenue bonds under this chapter, the State Treasurer shall
consider:
(a) The bond market for the types of bonds proposed for issuance.
(b) The terms and conditions of the proposed issue.
(c) Such other relevant factors as the State Treasurer considers
necessary to protect the financial integrity of the state.
(2) Bonds authorized under this chapter shall be issued in
accordance with the provisions of ORS 288.515 to 288.550.
(3) Reasonable administrative expenses of the State Treasurer shall
be charged against bond proceeds or project revenues. [1989 c.820 §10] The State Treasurer shall have the power,
whenever the treasurer considers refunding expedient, to refund any bonds
by the issuance of new bonds, whether the bonds to be refunded have or
have not matured. The refunding bonds may be exchanged for bonds to be
refunded and the proceeds applied to the purchase, redemption or payment
of such bonds. [1989 c.820 §11]The validity of bonds issued under this chapter shall not be
dependent on nor be affected by the validity or regularity of any
proceeding relating to the acquisition, purchase, construction,
reconstruction, installation, improvement, betterment or extension of the
project for which the bonds are issued. The official action authorizing
such bonds may provide that the bonds shall contain a recital that they
are issued pursuant to this chapter and such recital shall be conclusive
evidence of their validity and of the regularity of their issuance. [1989
c.820 §12] The official action
authorizing the issuance of bonds under this chapter to finance or
refinance in whole or in part, the acquisition, purchase, construction,
reconstruction, installation, improvement, betterment or extension of any
project may contain covenants, notwithstanding that such covenants may
limit the exercises of powers conferred by this chapter in the following
respects and in such other respects as the state, acting through the
State Treasurer, or the designee of the treasurer may decide:
(1) The rents to be charged for the use of properties acquired,
purchased, constructed, reconstructed, installed, improved, bettered or
extended under the authority of this chapter;
(2) The use and disposition of the revenues of such projects;
(3) The creation and maintenance of sinking funds and the
regulation, use and disposition thereof;
(4) The creation and maintenance of funds to provide for
maintaining the eligible project and replacement of properties
depreciated, damaged, destroyed or condemned;
(5) The purpose or purposes to which the proceeds of sale of bonds
may be applied and the use and disposition of such proceeds;
(6) The nature of mortgages or other encumbrances on the eligible
project made in favor of the holder or holders of such bonds or a trustee
therefor;
(7) The events of default and the rights and liabilities arising
thereon and the terms and conditions upon which the holders of any bonds
may bring any suit or action on such bonds or on any coupons appurtenant
thereto;
(8) The issuance of other or additional bonds or instruments
payable from or constituting a charge against the revenue of the eligible
project;
(9) The insurance to be carried upon the eligible project and the
use and disposition of insurance moneys;
(10) The keeping of books of account and the inspection and audit
thereof;
(11) The terms and conditions upon which any or all of the bonds
shall become or may be declared due before maturity and the terms and
conditions upon which such declaration and its consequences may be waived;
(12) The rights, liabilities, powers and duties arising upon the
breach by the municipality or redevelopment agency of any covenants,
conditions or obligations;
(13) The appointing of and vesting in a trustee or trustees of the
right to enforce any covenants made to secure or to pay the bonds, the
powers and duties of such trustee or trustees and the limitation of their
liabilities;
(14) The terms and conditions upon which the holder or holders of
the bonds, or the holders of any proportion or percentage of them, may
enforce any covenants made under this chapter;
(15) A procedure by which the terms of any official action
authorizing bonds or of any other contract with bondholders, including
but not limited to an indenture of trust or similar instrument, may be
amended or abrogated, and the amount of bonds the holders of which may
consent thereto, and the manner in which such consent may be given; and
(16) The subordination of the security of any bonds issued under
this chapter and the payment of principal and interest thereof, to the
extent considered feasible and desirable by the state, to other bonds or
obligations of the state issued to finance the eligible project or that
may be outstanding when the bonds thus subordinated are issued and
delivered. [1989 c.820 §13]
(1) Revenue bonds issued under this chapter shall not:
(a) Be payable from nor charged upon any funds other than the
revenue pledged to the payment thereof, nor shall the state be subject to
any liability thereon. No holder or holders of such bonds shall ever have
the right to compel any exercise of the taxing power of the state to pay
any such bonds or the interest thereon, nor to enforce payment thereof
against any property of the state except those projects or portions
thereof, mortgaged or otherwise encumbered under the provisions and for
the purposes of this chapter.
(b) Constitute a charge, lien or encumbrance, legal or equitable,
upon any property of the state, except those eligible projects, or
portions thereof, mortgaged or otherwise encumbered, under the provisions
and for the purposes of this chapter.
(2) Each bond issued under this chapter shall recite in substance
that the bond, including interest thereon, is payable solely from the
revenue pledged to the payment thereof. No such bond shall constitute a
debt of the state or a lending of the credit of the state within the
meaning of any constitutional or statutory limitation. However, nothing
in this chapter is intended to impair the rights of holders of bonds to
enforce covenants made for the security thereof as provided in ORS
289.230. [1989 c.820 §14] Subject to any
contractual limitation binding upon the holders of any issue of revenue
bonds, or a trustee therefor, including but not limited to the
restriction of the exercise of any remedy to a specified proportion or
percentage of such holders, any holder of bonds, or any trustee therefor,
for the equal benefit and protection of all bondholders similarly
situated, may:
(1) By action or proceeding for legal or equitable remedies,
enforce their rights against the state and any of its officers, agents
and employees, and may require and compel the state or any such officers,
agents or employees to perform and carry out its and their duties and
obligations under this chapter and its and their covenants and agreements
with bondholders;
(2) By action require the state to account as if it was the trustee
of an express trust;
(3) By action enjoin any acts or things which may be unlawful or in
violation of the right of the bondholders;
(4) Bring action upon the bonds;
(5) Foreclose any mortgage or lien given under the authority of
this chapter and cause the property standing as security to be sold under
any proceedings permitted by law or equity; and
(6) Exercise any right or remedy conferred by this chapter without
exhausting and without regard to any other right or remedy conferred by
this chapter or any other law of this state, none of which rights and
remedies is intended to be exclusive of any other, and each is cumulative
and in addition to every other right and remedy. [1989 c.820 §15]The state, acting through the State
Treasurer and the Oregon Facilities Authority, or either of them, may
lend the proceeds of the bonds authorized by this chapter for eligible
projects without the necessity of the state having any ownership or
leasehold interest in the eligible projects. Loans made pursuant to this
section shall be secured to the extent considered necessary or desirable
by the State Treasurer and the authority to assure repayment of the
bonds. [1989 c.820 §16; 1991 c.408 §7] (1) Within 90 days
following the closing of each fiscal year, the Oregon Facilities
Authority shall report on its operations to the Governor, State Treasurer
and the Legislative Assembly. The report shall include a summary of the
authority’s activities relating to bonds issued under this section.
(2) In accordance with any applicable provision of ORS chapter 183,
the authority may adopt such rules as it considers necessary to carry out
its duties, functions and powers under this chapter. [1989 c.820 §18]
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